IRS raises US tax brackets 3.2% for 2027 and the standard deduction to $16,600, with rates unchanged and prices rising 3.7%

30 stories 39 sources

Signals on this beat

Energy bills climbing High ↑

US economist Mark Zandi counts about $1,100 of energy and transport costs per home from the Iran war. [7]
The Bank of England's forecasts show a typical British bill up 27% in January, to £2,150. [8]
Filling a 1,000-litre oil tank in Sussex can cost more than £970. [9]

Tax limits rising with prices Building ↑

US income tax bands rise an average of 3.2% for 2027. [2]
The US child tax credit rises to $2,300 per child. [2]
The line for estate tax rises to $15.48 million. [10]

Home loans staying dear High ↓

The average 30-year US home loan rate is 7.18%, against 6.22% a year ago. [11]
Signed US home sales are at the lowest on Redfin's records, which go back to 2021. [12]
A record 10% of first-time US buyers paid all cash. [13]

Rules on lenders changing Building →

The US loan watchdog closed about 86% of its open supervisory actions in a year. [14]
Britain's financial regulator got a debt firm to stop demands over old tax-scheme loans. [15]
England's education department says it will review its student loan information. [16]

Jobs at risk Building ↑

Poundland, a UK discount chain with 12,000 staff, is close to collapse. [17]
Block, a US finance technology firm, made its second round of job cuts this year. [18]
Canva, a design firm, is cutting 22% of its staff. [18]

The stories

30 stories on this beat today.

Every story told the same way: what happened, who is involved, why it matters, how it works, the truth and the good news.

01
IRS raises US tax brackets 3.2% for 2027 and the standard deduction to $16,600, with rates unchanged and prices rising 3.7%

3.2%

average rise in the income limits of the US tax bands

US consumer prices rose 3.7% in the year to September [1]

$16,600

taken off a single filer's income before tax in 2027

up $500 from $16,100 in 2026 [2]

86%

of US taxpayers take the flat amount, not a list of costs

the figure is for 2026 [2]

$281

less tax on $100,000 for a single filer

about $12,890 owed for 2027, if nothing else changes [2]
What happened
- The IRS, the US tax agency, set new income tax brackets for 2027 on Thursday. [1] A bracket is a band of income taxed at one rate. [1]
- The income limits of the brackets rise by an average of 3.2% on 1 January. [2]
- The 7 rates stay at 10%, 12%, 22%, 24%, 32%, 35% and 37%. [3]
- The standard deduction, a set amount taken off income before tax, rises to $16,600 for a single filer. [2]
- The change reaches over 160 million US taxpayers. [2] It applies to income earned in 2027, and most will file those returns in early 2028. [2]
- A single filer's 12% band now runs up to $52,025, from $50,400 in 2026. [4]
- A married couple's 12% band runs up to $104,050, from $100,800. [5] That could keep $3,250 more away from a higher rate. [5]
- The top rate of 37% starts above $661,375 for one person and $793,650 for a couple. [1]
- A married couple filing together can take off $33,200, which is $1,000 more than now. [6]
- Nearly 86% of US taxpayers took this flat amount in 2026, rather than listing their costs one by one. [2]
- A single filer earning $100,000 would typically owe about $12,890 for 2027. [2] That is $281 less than for 2026, if nothing else changes. [2]
Who is involved

The rates are set by the US Congress, and the IRS moves the income limits each year. [2]
- US Congress sets the rates
- The IRS the US tax agency; it moves the income limits each year
- The US Congress the US national lawmakers; they set the 7 tax rates
- Over 160 million US taxpayers people who file individual returns; most will keep a little more income at lower rates
How it unfolded

Since 2018 the limits have followed the chained consumer price index, a measure of living costs. [2]
This adjustment is larger than the last 2 years', as inflation heated up. [5] The same release moves almost 70 tax rules. [2]
1. 2018 the bands start to follow the chained price index [2]
2. 2027 the limits rise 3.2%
3. Coming season returns use the 2026 limits
4. Early 2028 most people file their returns on those limits [2]
5. 5 Nov the IRS announces the 2027 limits [4]
6. 1 Jan 2027 the new limits apply to income earned from this date [2]
Why it matters

Without yearly changes, a pay rise that only matches prices could push a worker into a higher band. [3]
With them, most people can shield more of their income from higher rates next year. [2]

How it works

Public finance calls the problem bracket creep: pay follows prices, so a larger share lands in higher-rate bands. [2]
A couple with $104,050 of taxable income stays at 12% or below in 2027. [5] At 2026's limit of $100,800, the rest would pay more. [5]

Seen it before

A ride lets small children in free below a height line. If the line never moves, every child grows past it and starts paying.
The truth
- What is really going on The IRS moved US tax bands up 3.2% so that pay rises matching prices are not taxed at higher rates. [2]
- Why it works on people A change like this can feel like a raise, because the tax bill falls, even though it exists to keep up with prices. [2]
- US consumer prices rose 3.7% in the year to September. [1] The limits rise 3.2%, and they follow a different index, the chained one. [2]
- The $281 saving assumes nothing else changes. [2] Kiplinger, a US personal finance publisher, notes that higher limits do not always mean a lower bill. [3]
- Who gains US couples near the top of the 12% band — Part of their income stays at 12% instead of falling into the next band up. [5]
What comes next

Returns for 2026, filed in the coming tax season, still use the 2026 limits. [3] The new limits first appear on returns filed in early 2028. [2]

02
Iran war's bill nears $2,000 a US home
What happened
- Mark Zandi, chief economist at Moody's Analytics, estimates the Iran war has cost the average US household nearly $2,000. [7]
- About $1,100 of that is higher energy and transport costs. [7] Higher interest rates and a share of military spending make up the rest. [7]
- Across the US that comes to $265 billion, Zandi wrote on 12 October. [7]
Who is involved

Gilbert Metcalf, a former US Treasury official now at MIT, says new strikes make attacks on oil shipping likelier. [7]
- Gilbert Metcalf former US Treasury official
How it unfolded

In June the same economist put the cost at $1,000 for the typical US household. [19]
The war began on 28 February, when the US and Israel struck Iran. [7]

Why it matters

Metcalf says oil will stay high on that risk, just as US homes need oil and gas for winter heating. [7]

How it works

Economists call this cost pass-through: a firm that pays more for fuel raises its own prices. [20]
Diesel carries goods, Zandi says, so dearer diesel reaches the grocery till. [20] Jet fuel reaches air fares the same way. [20]

Seen it before

When a school bus costs more to run, the trip money asked of every family goes up too.
The truth
- The figure is one economist's sum, and he calls it a bit of an accounting exercise. [20] It includes taxpayer-funded military costs, not only prices in shops. [19]
- Nobody knows yet
  Whether the war's cost to US homes keeps climbing.
  
  Zandi's figure counts the cost so far, and Metcalf says new strikes could keep oil high this winter. [7]
03
UK unpaid energy bills may reach £7bn
What happened
- Household energy debt could reach £7bn by the end of the year. [21]
- The UK government plans to spend almost £2.5bn paying down the debts of about 2.4m households. [21]
- Suppliers are expected to find struggling customers early and offer payment plans or debt advice. [21]
- About 40% of unpaid bills are understood to build up when people move home. [21] Landlords would have to give suppliers meter readings and moving dates. [21]
- The Bank of England's forecasts indicate a typical energy bill rising 27% in January, to £2,150 a year. [8]
Who is involved

UK energy minister Polly Billington told the biggest suppliers on Thursday to do more about unpaid bills, the Guardian reports. [21]
- Polly Billington UK energy minister
Why it matters

With bills due to rise in January, Citizens Advice, a UK charity, says the plan must also stop new debts. [21]

How it works

Economists call this a cross-subsidy: what some customers cannot pay is added to everyone else's price. [21]
The average UK household pays about £50 a year for other people's unpaid bills. [21] That share would likely rise if the debt keeps growing. [21]

Seen it before

When a few friends skip paying for a shared meal, the rest split a bigger bill.
The truth
- The saving of about £130 per household over 10 years is the UK government's own belief, and an average. [21]
04
UK's 2020s set to be worst decade
What happened
- The 2020s are set to be the worst decade on record for UK living standards, the Resolution Foundation says. [22]
- The foundation is a UK research group. [22] It expects typical non-pensioner household incomes to fall 3% over the next 2 years, a drop of over £1,000. [22]
- Its measure counts income after housing costs. [22] Those costs rise as homes with mortgages keep moving on to higher rates. [22]
- The UK's official forecaster expects average mortgage rates to climb from about 4% in 2026 to 4.5% in 2028. [22]
Why it matters

Living standards fall right across the income range, the foundation finds. [22] The second-poorest twentieth may lose about 8%, and the richest twentieth lose most. [22]
A fall of that size bites far harder on a family with no savings, the foundation says. [22]

How it works

Statisticians call it mean against median: the mean is an average, and the median is the home in the middle. [22]
On the foundation's reading, almost all growth in the official forecast is not pay. [22] The cash part, interest and dividends, goes disproportionately to richer, older homes. [22]

Seen it before

If one rich pupil joins a class, average pocket money jumps, yet the pupil in the middle gets nothing more.
The truth
- The official measure counts things no family holds as cash, such as the rent homeowners notionally pay themselves. [22]

05
US child tax credit rises to $2,300
What happened
- The US child tax credit rises from $2,200 in 2026 to $2,300 per child for 2027, Money magazine reports. [2]
- A tax credit cuts the tax a person owes. [23] This one has a part that families can get even when they owe no tax. [2]
- That part rises from $1,700 to $1,800 per child. [2]
- The earned income tax credit also rises. [1] To claim it, a person must have earnings and stay under income limits. [24]
- With 3 or more children, its top amount goes from $8,231 to $8,496. [2]
Why it matters

A family owing no tax can get at most $1,800 of the $2,300. [2] Only a family with enough tax to cut gets it all. [2]
How it works

Public finance calls the $1,800 part refundable: it is paid even when the credit is larger than the tax owed. [2]

Seen it before

A voucher that gives no change is worth less to someone buying something small.
Why taking $1,000 off income is not the same as taking $1,000 off the tax bill

Public finance separates the two: a deduction cuts the income that gets taxed, so it saves your top rate, and a credit cuts the bill itself.

The twist

A $1,000 deduction saves a 12% taxpayer $120 and a 35% taxpayer $350. A credit that stops at zero gives nothing to someone who owes no tax.

The picture

Deduction, 12% rate$120
Deduction, 22% rate$220
Deduction, 35% rate$350
Credit, with tax to cut$1,000
What $1,000 off is worth. The $1,000 is made up for the picture; the 3 rates are real US rates.
Step by step
1. A deduction takes money off the income that gets taxed
2. What it saves is that money times your top rate
3. So $1,000 off saves $120 at 12% and $350 at 35%
4. A credit comes off the tax bill itself, so $1,000 saves $1,000
5. A nonrefundable credit stops when the bill reaches zero
6. A refundable credit or a direct deposit pays out anyway
The same force, elsewhere today

Where this chain is also running, in today's other stories.
- US child tax credit rises to $2,300
  
  A family owing no tax can get only the refundable $1,800 per child, because the rest needs a tax bill to cut.
- A US match for low earners' savings
  
  The old credit stopped at zero, so the new one is deposited in the account, and owing no tax no longer blocks it.
- A US tax credit for scholarship gifts
  
  It is nonrefundable, so it reaches only a giver with enough tax to cut.
- Older US couples can deduct $48,600
  
  It is a deduction, so what the couple saves depends on the top rate they pay.
Where you've seen this

Pension tax relief

a saver's money is often freed from tax at the saver's top rate, so each pound saves a higher earner more

Gifts to charity

a deduction for a gift is worth more to a donor paying a high rate than to one paying a low rate

Electric car credits

a credit that stops at zero gives a buyer with a small tax bill less than it gives a buyer with a big one

The catch

A bigger saving per dollar is not the whole story: income limits can shrink a break as income rises, as they do with the US bonus deduction for over-65s.

And the whole of it

A tax law is written once, and each household meets it from its own income. A family owing no tax and a family paying 35% get different money from the same rule, and neither sees the other's bill.

06
US home loan rates fall a third week
What happened
- The average 30-year US home loan rate fell to 7.18% in the week to 5 November, Freddie Mac says. [11]
- Freddie Mac is a big US mortgage firm. [11] Its rate was 7.24% a week earlier, and 6.22% a year ago. [11]
- Traders put the odds of a US central bank rate rise on 8-9 December at more than 80%, NerdWallet reports. [25]
Who is involved

With Democrats running the US Congress and Republicans the White House, big spending bills could stall. [25]
- Democrats run the US Congress
- Republicans hold the presidency
How it unfolded

Rates briefly dipped below 6% in February, before the Iran war began. [13]

Why it matters

Rates above 7% are still keeping many buyers out of the market, Realtor.com says. [11]

How it works

In finance, the return a bond pays a new buyer is its yield. [25] US home loan rates closely track the 10-year government bond's yield. [11]
If a stalled US Congress spends less, the US government may borrow less. [25] Fewer bonds for sale can ease yields, and home loan rates with them. [25]

Seen it before

When only a few stalls sell lemonade, none of them needs to offer extras to win a customer.
The truth
- Jones says it is too early to tell whether the election's result will show up in the housing market. [11]
- Who pays First-time US buyers who must borrow — They bid against cash offers while paying rates above 7%. [13][11]
What comes next

Friday's US jobs report comes next. [11] A strong one could lift rates again, warns Hannah Jones, an economist at Realtor.com. [11]
07
US house hunting at a record low
What happened
- Signed US home sales fell 0.6% in a week, to the lowest in Redfin's records back to 2021. [12] Redfin is a US home listings firm. [12]
- The median sale price was $388,604 in the 4 weeks to 1 November, down 0.4% from a year earlier. [12]
- That is the third week of falls after 3 years of increases. [12]
- The median monthly payment fell to $2,777, from a peak of $2,811 in early October. [12]
- New listings fell 1.5% in a week, to the lowest since January. [12]
Why it matters

The buyers still looking may be able to talk prices down or win other concessions. [12]

How it works

Economists call this excess supply: more homes on offer than buyers at today's prices. [12]
There are 2.1% more homes on the market than a year ago. [12] They are taking a bit longer to sell. [12]

Seen it before

At the end of a school fair, unsold cakes get marked down because few buyers are left.
The truth
- The median payment is still 11.1% higher than a year ago, so a lower price has not made buying cheaper. [12]
Good news
- The median monthly US home loan payment fell to $2,777, a 5-week low, from $2,811 in early October.
08
Democrats promise lower costs in 2027
What happened
- Democrats won both chambers of the US Congress on Tuesday. [26] Schumer named ending the Iran war and stopping tariffs, or import taxes, as 2 ways to cut costs. [26]
- US Senator Bernie Sanders called for a national 5% wealth tax. [26] He says it could fund 7 million affordable homes. [26]
Who is involved

Chuck Schumer, Democratic leader in the US Senate, said on Thursday his party must lower costs to keep its power. [26]
Illinois governor JB Pritzker named medical and student debt as issues for the US government. [26]
- Chuck Schumer Democratic leader in the US Senate
- JB Pritzker governor of Illinois
Why it matters

A $2,000 monthly payment bought a home $33,600 cheaper in October than a year earlier, Realtor.com calculates. [26] Loan rates went from 6.05% in February to 7.33%. [26]

How it works

Political scientists call this a veto point: one place where a single actor can stop a law. [27]
Democrats lack the votes to override a Trump veto. [26] So a major tax bill would need common ground with Republicans. [27]

Seen it before

If one friend can cancel the trip, the plan has to suit that friend too.
The truth
- Nobody knows yet
  What Democrats will actually put into a bill on costs.
  
  So far there are speeches, and House Democrats meet next week to set an agenda. [26]
What comes next

House Democrats meet next week to lay out their agenda, says Hakeem Jeffries, likely the next House speaker. [26]
09
A record 10% of first buyers pay cash
What happened
- A record 10% of first-time US home buyers paid all cash in the year to June, an industry survey says. [13]
- The survey is by the National Association of Realtors, the US estate agents' body. [13] It found 10% used an inheritance, a record. [13]
- All-cash first-time buyers were about 3 times likelier to use one: 28% against 9%. [13]
- The median first-time buyer is 40, level with the record high. [13] Cash buyers are older, at 54. [13]
- First-time buyers rose to 22% of sales, from an all-time low of 21%. [13] That is still about half the old norm of 40%. [13]
Why it matters

Family money is changing who can buy a first home and when, says Jessica Lautz of the association. [13]

How it works

Economists call this an intergenerational transfer: wealth passing from one generation to the next. [13]
People are living longer, so the money reaches children in middle age, Lautz says. [13] That fits cash buyers' median age of 54. [13]

Seen it before

A bike handed down only when an older sister stops riding reaches the younger child late.
The truth
- The vast majority of first-time buyers still borrow, says Hannah Jones of Realtor.com. [13]
- Who gains First-time buyers with family money — Sellers often favour cash offers, because they carry no risk of a loan falling through. [13]
10
English universities showed low loan repayments
What happened
- The BBC found 12 English universities gave student loan examples only on below-average pay. [16] The UK average is £39,039. [16]
- Northumbria University said £75 a month was less than the cost of a daily coffee. [16] It removed that line after the BBC asked. [16]
- Plan 5 loans, taken by students in England now, take 9% of earnings over £25,000. [16] Repayments run for 40 years or until the loan is cleared. [16]
- At £30,000 a graduate repays £37.50 a month. [16] At £100,000 it is £562.50. [16]
Who is involved

Dame Meg Hillier, who chairs the UK Parliament's Treasury Committee, called some of it misleading. [16]
Why it matters

Megan Russon, a new tax accountant on about £29,000, repays about £30 a month. [16] At the £50,000 she expects, it becomes about £187. [16]

How it works

Behavioural economists call it anchoring: the first number a person sees sets what feels normal. [16]
An example at £35,000 makes £75 look like the price. [16] But 9% applies to every extra pound over £25,000, for decades. [16]

Seen it before

A phone deal advertised at its first month's price feels cheap until the later months arrive.
The truth
- Northumbria says £35,000 is about average for full-time work in north-east England. [16] The Open University says its examples match its own students' likely pay. [16]
- Who pays English graduates whose pay grows — They were shown a low monthly figure, and their repayment grows with every pay rise above £25,000. [16]
Good news
- All 4 English universities the BBC found giving wrong student loan facts have corrected their websites.
What comes next

The UK Department for Education says it will review the information it gives. [16]
11
A second job to pay for heating oil
What happened
- She says her oil bill has doubled since the start of 2026. [9]
- Filling a 1,000-litre tank could now cost more than £970. [9]
- Thousands of Sussex homes have no gas mains connection and rely on oil. [9]
- Nigel Wanstall of Sheffield Park says he cannot fill his tank. [9] He uses an open fire and an electric blanket. [9]
- Jon Reardon of Rye Oil, which supplies 15,000 residents, says many customers hold off ordering as long as possible. [9]
- The UK government says it has pledged £53m and removed a 4% tariff on home heating oil. [9]
Who is involved

Sheila Williams of East Sussex, England, has taken a winter waitressing job to pay for heating oil. [9]
- Sheila Williams lives alone in a park home
Why it matters

Reardon says oil has doubled on average since the war began, and that has hit his sales. [9]

How it works

Economists call a good inelastic when people keep buying it as its price rises, because they lack a substitute. [9]
A home with no gas mains cannot easily switch fuel. [9] So Williams added work rather than stop buying oil. [9]

Seen it before

School shoes still get bought when the price goes up, because a child cannot go without.
The truth
- Who pays Homes with no gas mains — They have no cheaper fuel to switch to when oil doubles, so they pay it or go cold. [9]
- Nobody knows yet
  How far £53m goes for UK homes on heating oil.
  
  The UK government gives the total pledged, and the BBC report does not say how many homes it covers. [9]
What comes next

Energy minister Polly Billington told Parliament on Wednesday that UK ministers are working to regulate the sector. [9]
12
A second bidder appears for Poundland
What happened
- Xyra Group, a London firm, has bid for Poundland, the UK discount chain, the BBC reports. [17]
- Business secretary Jonathan Reynolds held talks with the owner, urging it to protect staff. [17] It promised to put offers that protect shops and workers first. [17]
Who is involved

Poundland's owner, the US firm Gordon Brothers, had already rejected a bid from Martin Property Group, an Irish firm. [17]
- Poundland UK discount chain
- Xyra Group London bidder
- Gordon Brothers owner
- Martin Property Group rejected bidder
- Jonathan Reynolds UK business secretary
How it unfolded

Gordon Brothers bought Poundland for £1 last June. [17]

Why it matters

Poundland has 12,000 staff. [17] Founder Steve Smith says up to 30,000 people could be affected in a collapse. [17]

How it works

Finance calls this due diligence: checking a buyer's money and plans before trusting a bid. [17]
Gordon Brothers' tests include whether Xyra has the money and would be a good long-term owner. [17] The BBC says little shows Xyra meets them. [17]

Seen it before

Someone selling a bike online asks to see the money before handing it over.
The truth
- Judith MacKenzie of Downing Fund Managers says there is "hardly any information" publicly available on Xyra. [17]
- The BBC reports an offer to pay half the debts at once. [17] Its sources also say £12.5m of a £30m loan, which is less than half. [17]
- Who pays Poundland's small suppliers — Those who work only for the chain could go under with it. [17]
- Nobody knows yet
  Whether Xyra has the money to buy Poundland.
  
  One fund manager could find no evidence that it does, and the BBC says little shows it meets the owner's tests. [17]
What comes next

It is unclear whether Xyra would keep the chain whole or break it up. [17]
13
A US match for low earners' savings
What happened
- From 2027 the US government will match savings for retirement, up to 50% of the first $2,000, for lower earners. [23]
- So a saver who puts in $2,000 can get up to $1,000 more. [23] The money goes straight into the retirement account. [23]
- A married couple earning up to $41,000 gets the full match. [23] Part matches run up to $70,999. [23]
- A single filer gets the full match on earnings up to $20,500. [23]
- A saver paying in $20 a month, $240 a year, would get $120 on top. [23]
How it unfolded

It replaces the Saver's Credit, a tax credit that gave little or nothing to people owing little tax. [23]
1. Until now Saver's Credit, off the tax bill
2. 2027 Saver's Match, into the account
Why it matters

Workers can hold it on top of an employer's match, since the 2 are separate. [23]

How it works

Public finance calls the old credit nonrefundable: it can cut a tax bill only as far as zero. [23]
The match is deposited whether or not the worker owes any tax. [23]

Seen it before

A money-off coupon is no use to someone who buys nothing, but cash in the hand is.

The old credit stopped at zero, so the new one is deposited in the account, and owing no tax no longer blocks it.
The idea, in story 05: Why taking $1,000 off income is not the same as taking $1,000 off the tax bill →
The truth
- It reaches only people who can save first. [23] The adviser who wrote the article says households struggling with bills or card debt may not manage it. [23]
Good news
- From 2027 the US government will pay up to $1,000 a year straight into the retirement accounts of low and moderate earners who save, including people who owe no federal tax.
14
US health savings limits rise
What happened
- A US health savings account, or HSA, can take $4,500 for one person in 2027, and $9,000 for a family. [28]
- Money goes in before tax, grows untaxed, and comes out tax-free for medical bills. [28]
- An HSA comes with a high-deductible health plan, where the patient pays more before insurance starts. [28]
- For 2027 such a plan needs a deductible of at least $1,750 for one person, or $3,500 for a family. [28]
- Yearly costs beyond premiums cannot pass $8,700 for one person, or $17,400 for a family. [28]
- A Marsh survey found 63% of US employers with at least 50 staff offer such a plan. [28] 37% of covered workers are in one. [28]
Why it matters

Millions of workers are choosing 2027 cover now, weighing lower premiums against bigger bills when they need care. [28]

How it works

Tax advisers say the route the money takes matters too. [28] Paid through payroll, it generally also skips Social Security and Medicare taxes. [28]
Paid in later and deducted on a tax return, it generally does not skip those 2 taxes. [28]
The truth
- The tax break does not pay the deductible. [28] A worker without the cash still faces the bill. [28]
15
Older US couples can deduct $48,600
What happened
- A US couple both aged 65 or older can take up to $48,600 off 2027 income before tax, Kiplinger says. [6]
- People 65 or older, or blind, get an extra $1,700 each, or $2,100 if unmarried. [6]
- A single person in that group can take $18,700 in all. [6]
How it unfolded

On top comes a $6,000 bonus deduction for people 65 or older, from the 2025 Trump tax law. [6]
1. 2025 the Trump tax law adds a $6,000 bonus
2. 2027 it can still be added on top
Why it matters

Those who list their costs one by one can claim the bonus too, so filing style does not matter. [6]

How it works

Each piece is added to the last. [6] A couple starts with $33,200, adds $1,700 for each spouse and $6,000 for each, reaching $48,600. [6]

Seen it before

Stickers on a school chart add up: one for reading, one for sums, and the total is what counts.

It is a deduction, so what the couple saves depends on the top rate they pay.
The idea, in story 05: Why taking $1,000 off income is not the same as taking $1,000 off the tax bill →
The truth
- That top figure is for couples who qualify for the bonus. [6] Kiplinger calls it the highest possible amount. [6]
What comes next

The bonus is temporary, and it shrinks above certain incomes. [6]
16
US tax-free gains band widens
What happened
- The IRS also raised the income limits for tax on long-term investment gains in 2027. [29]
- A capital gain is the profit when an asset is sold, and long-term means owned for more than 1 year. [29]
- A single filer with taxable income up to $51,050 pays 0% on those gains. [29] For a married couple the limit is $102,100. [29]
- Many long-term investors hold profitable assets after years of market growth, despite post-election swings, CNBC reports. [29]
How it unfolded
1. Buy own it for more than 1 year
2. Sell the profit is a long-term gain
Why it matters

Selling or changing a mix of investments can set off this tax, so the limits may shape 2027 plans. [29]

How it works

Long-term gains have their own 3 rates: 0%, 15% and 20%. [29] Which applies depends on taxable income, what is left after the deduction comes off. [29]
So the higher standard deduction and the higher limits work together for 2027. [29]
17
Tax-free estate line rises to $15.48m
What happened
- A person can pass on $15.48 million free of US estate and gift tax in 2027, up from $15 million. [10]
- The yearly limit on gifts to one person, before a gift tax return is needed, rises $1,000 to $20,000. [5]
- State estate and inheritance tax limits can be lower. [10]
How it unfolded

Trump's 2025 tax law raised the line to $15 million. [10] Otherwise it would have dropped back to $5 million plus inflation. [10]
1. Before 2025 $5 million plus inflation
2. 2026 $15 million
Why it matters

About 6,890 estate returns will be filed for 2026, and about 3,900 will owe tax, the Tax Policy Center estimates. [10]

How it works

Public finance calls this an exemption: value below the line is not taxed at all. [10]
An estate of $15.48 million or less owes no federal estate tax in 2027. [5]

Seen it before

An airline charges nothing for a bag under the weight limit, whatever is inside it.
The truth
- Who gains The largest US estates — The higher line lets more of a fortune pass with no federal estate tax. [10]
18
A US tax credit for scholarship gifts
What happened
- The Education Freedom Tax Credit, a new US tax break, begins on 1 January, NerdWallet reports. [5]
- Taxpayers who give to a scholarship group in one of 30 participating US states can claim it. [5]
- The credit runs up to $1,700, or $3,400 for a couple filing together. [5]
- The IRS says it aims to support private giving for scholarships for school pupils. [5]
Why it matters

It is nonrefundable, so it can cut a giver's own tax bill only as far as zero. [5]

How it works

Public finance calls a break like this a tax expenditure: money the state gives up instead of spending itself. [5]
Here the US government forgoes as much as $1,700 of tax when a filer gives to a scholarship group. [5]

It is nonrefundable, so it reaches only a giver with enough tax to cut.
The idea, in story 05: Why taking $1,000 off income is not the same as taking $1,000 off the tax bill →
19
UK firms told to publish pay in adverts
What happened
- UK Prime Minister Andy Burnham told firms to publish salaries in job adverts now, before a law forces them to. [30]
- The UK government says it will bring that law forward as soon as possible. [30] It says 94% of consultation replies backed the move. [30]
- Adzuna, a UK jobs site, says 51% of its September adverts showed pay, and that share has been falling. [30]
- Employers in Europe will have to give starting pay or a range, in an advert or before an interview. [30]
Who is involved

Neil Carberry of the CIPD, a body for human resources managers, says adverts are best left to employers. [30]
- Andy Burnham UK prime minister
- Neil Carberry heads the CIPD
Why it matters

It says the change helps first-time jobseekers, and nearly 1 million young people are out of work and study. [30]

How it works

Economists call this information asymmetry: one side of a deal knows something the other does not. [30]
With pay shown, an applicant knows what a job pays before spending time on it. [30] Workers can also spot unjustified gaps and challenge them. [30]

Seen it before

A menu with no prices leaves you guessing until the bill comes.
The truth
- Publishing is not always clear: the CIPD found some pay ranges wider than £10,000. [30]
What comes next

The UK government says details will come in due course. [30]
20
US loan watchdog closes 86% of cases
What happened
- The Consumer Financial Protection Bureau, the US watchdog for loans and cards, closed 1,327 of its 1,552 open actions. [14]
- That is about 86%, over a year, says the bureau's latest report. [14] It also cut scheduled exams by about 50%. [14]
- It closed about 40% of pending investigations too. [14]
- It cited no fair lending violations in the period, and sent no such cases to the US Justice Department. [14]
- It took about 8.27 million consumer complaints in the year to June. [14] In August it said it would stop publishing the unverified stories in them. [14]
Why it matters

Exams now focus on banks, what it calls actual fraud, and areas within its legal powers. [14] Firms outside that focus get fewer checks. [14]

How it works

Regulators split their work into supervision, which checks firms, and enforcement, which punishes them. [14]
The bureau has cut both: exams by about 50%, and investigations by about 40%. [14]

Seen it before

A teacher who stops marking homework finds the mistakes only at the exam.
The truth
- The bureau says the closures reflect either fixed problems or issues outside its priorities. [14] HousingWire's account gives no split between the 2. [14]
- Who gains Lenders the US bureau no longer examines — With exams cut, fewer outside checks reach them. [14]
- Nobody knows yet
  How many CFPB cases closed because the problem was fixed.
  
  The bureau gives 2 reasons for the closures, and HousingWire's account gives no split. [14]
What comes next

It is reviewing the rule that a home loan must be one the borrower can repay. [14]
21
US states split on taxing top earners
What happened
- Voters in 16 US states faced around 30 tax questions on Tuesday, Kiplinger counts. [27]
- Washington state voters kept a new 9.9% tax on income above $1 million, with about 58% of the vote. [27]
- California voters rejected a one-time 5% tax on billionaires' assets, with about 55% against. [27]
- Nearly 59% of Californians also voted to extend higher income tax on top earners. [27]
- Colorado's plan to replace its flat 4.4% tax led narrowly, at 50.5%, when Kiplinger wrote. [27]
- Arizona capped local grocery taxes at 2%, with more than 61%. [27] Iowa now needs a two-thirds vote of lawmakers to raise income tax. [27]
Who is involved
- Arizona grocery tax capped
- Iowa harder to raise tax
How it unfolded
1. 2028 the tax takes effect
2. 2029 first payments due
Why it matters

Colorado's plan would pay for schools and health care. [27] California's extended tax pays for education. [27]

How it works

Public finance calls a rate that rises with income progressive. [27]
Colorado's plan would run from 3.7% to 8.4%. [27] Tax falls for taxable income below $500,000, and rises above it. [27]

Seen it before

In one class whip-round everyone gives the same. In another, those with more pocket money give more.
The truth
- Nobody knows yet
  Whether Colorado's new tax passes.
  
  It stood at 50.5% when Kiplinger wrote, and the count was not over. [27]
What comes next

Washington's tax takes effect in 2028, with the first payments due in 2029. [27]
22
Florida's tax cut sets a 31 December deadline
What happened
- Florida's Amendment 3 passed with 62%. [31] People must make Florida their main home by 31 December to qualify for its larger break in 2027 and 2028. [31]
- Anyone later waits 5 years, HousingWire reports. [31]
- For homes that are not a main home, the yearly cap on taxed-value rises drops from 10% to 5%. [31]
Who is involved

Jason Haber, a broker at Compass, an estate agency, expects a sugar high in sales to the year's end. [31]
Danielle Blake of Miami Realtors says people are already calling to ask how to qualify. [31]
- Jason Haber Compass broker
How it unfolded
1. 31 Dec main home in Florida by this date
2. 2027 the larger break begins
Why it matters

Brokers say buyers from New York could bring moves forward, though Florida's dear insurance also weighs on them. [31]

How it works

Economists call this bunching: people crowd just before a cut-off that changes a tax. [31]
Moving by 31 December beats waiting 5 years, so moves planned for early next year may come forward. [31]

Seen it before

Shoppers crowd in on the last day of a sale.
The truth
- Property taxes reset when a Florida home sells, Haber says. [31] So a higher price can take back some of the saving. [31]
What comes next

Governor Ron DeSantis has called a special session on how the amendment will work. [31]
23
Los Angeles' new mayor plans to triple building
What happened
- Nithya Raman, elected mayor of Los Angeles this week, wants to triple the city's yearly home building. [32]
- Her plan sets strict time limits on approvals and removes some fees for starter homes. [32]
- She says less than 10% of new homes built there are for sale. [32]
- Realtor.com's September report cards ranked Los Angeles the least affordable big US city. [32]
- A median earner would spend nearly 85% of income on loan payments for a $1.12 million median home. [32] That assumes a 10% deposit and a 6.5% rate. [32]
Who is involved

Most city council members backed her rival Karen Bass, so she must build a majority. [33]
- Nithya Raman mayor-elect
- City council mostly backed Bass
Why it matters

Raman told voters that friends and families kept leaving because they could not afford to stay. [32]

How it works

Urban economists call slow, costly approvals a supply constraint: limits on how many homes can be built. [32]
For-sale projects face higher fees and easier appeals, Raman says, so builders build fewer of them. [32]

Seen it before

A shop that waits a month for each delivery keeps its shelves half empty.
The truth
- Bass also streamlined approval for roughly 50,000 fully affordable homes, and the city still ranked last. [32]
What comes next

One early test is a 398-home plan at Woodland Hills Country Club. [33] California's housing department wants a response by 25 November. [33]
24
Block's second round of layoffs this year
What happened
- Block, a US finance technology firm, told some workers on Wednesday their jobs were going. [18] It is the second round this year. [18]
- US staff get at least 60 days of pay, plus at least 7 weeks' severance pay. [18] That comes from a document Business Insider saw. [18]
- Those who sign a separation agreement get 30 days more, making 90. [18] They also get a one-time $5,000. [18]
How it unfolded

In February the firm cut more than 40% of its staff. [18]
Block's boss then promised 20 weeks of salary, plus a week per year of service. [18] This package is roughly equal to 20 weeks before the extra for years served. [18]

Why it matters

Block's workers are not alone: Canva, the design firm, said this week it would let 22% of its staff go. [18]

How it works

Employment lawyers call this consideration: extra pay offered in return for a signed promise. [18]
Block's benefits depend on signing the agreement and sticking to it. [18]

Seen it before

A shop gives a bigger refund only if you sign a form saying the matter is closed.
The truth
- A Block spokesperson declined to comment, and the scale of the cuts was not clear. [18]
- Who pays Workers laid off at Block — Paid health cover is now 3 months, against 6 months in February's package. [18]
25
UK regulator halts old tax-scheme debt demands
What happened
- The FCA, the UK's financial regulator, says debt firm Ethica Resolve has agreed to restrictions over old loan demands. [15]
- The loans came from disguised remuneration schemes, which paid contractors and agency workers through loans instead of salaries. [15]
- Ethica will make no more demands in the proposed court claim while the legal issues are settled. [15]
- Neither firm will ask a court to rule against someone simply because they did not respond. [15]
Who is involved

Ethica acts for West 28th Street Limited, which bought the loans and is not regulated by the FCA. [15]
- The FCA UK financial regulator
- Ethica Resolve collects debts
- West 28th Street bought the loans
Why it matters

Some people dispute that they owe anything, and if the debts are unenforceable they cannot be forced to pay. [15]

How it works

Lawyers call a debt unenforceable when its holder cannot legally force payment. [15]
If such a debt is unenforceable, nobody can force payment or seize assets without a specific court order. [15]

Seen it before

A note saying you owe a friend money does not let them take your bike.
The truth
- Nobody knows yet
  Whether the old tax-scheme loans can be enforced at all.
  
  The FCA says that has not been decided, and a court may have to decide it. [15]
Good news
- Ethica will write to the people affected, telling them they have no enforceable duty to pay at this stage. [15]
What comes next

The FCA says people should still not ignore formal court papers on this. [15]
26
Texas man admits a $1.5m land fraud
What happened
- Moshe Levi, 61, of Texas, pleaded guilty in Boston on Wednesday to wire fraud and money laundering conspiracy, Realtor.com reports. [34]
- Prosecutors say the fake sales totalled more than $1.5 million. [34]
- The group picked empty land in 4 states, owned by people living out of state. [34]
- They made fake licences, passports and email accounts in owners' names, prosecutors say. [34] They then persuaded estate agents to list the land. [34]
- One couple's lot in Concord, Massachusetts, was allegedly sold in 2024 for roughly $525,000. [34] Builders started until an injunction stopped them. [34]
Who is involved
- Moshe Levi pleaded guilty
How it unfolded
1. Wednesday guilty plea in Boston
2. 11 Feb 2027 sentencing
Why it matters

A September survey found 59% of US title firms reported such a fraud in a year. [34] The 2024 survey found 28%. [34]

How it works

Property law calls the right to land its title, and a deed is the paper that moves it. [34]
Sales can now happen remotely, so a seller may never be met in person. [34] A fake ID can then move a real deed. [34]

Seen it before

A stranger could sell your bike online using your name, if nobody asks to meet you.
The truth
- Charges against 2 other men are pending, and a fourth suspect in Nigeria has not been named. [34]
What comes next

Levi will be sentenced on 11 February 2027. [34] Prosecutors will seek at least $1.34 million in repayment to victims. [34]
27
EU presses UK on university fees
What happened
- At least 6 EU countries want a firm UK promise on university fees before a 20 November summit. [35]
- They want European students on the UK home rate, not international fees about 4 to 6 times higher. [35]
- European Commission negotiators have proposed putting the fees question off by 6 months. [35]
Who is involved

Andy Burnham, the UK prime minister, meets EU leaders Ursula von der Leyen and Antonio Costa at the summit. [35]
- Andy Burnham UK prime minister
- EU leaders von der Leyen and Costa
How it unfolded

That was the rule before Brexit, when the UK left the EU. [35]

Why it matters

Failure could delay a food and drink deal worth billions to the UK economy, the paper reports. [35]

How it works

Economists call one product at 2 prices price discrimination. [35]
The fee depends on where the student comes from. [35] So an EU student can pay about 4 to 6 times more for an undergraduate degree. [35]

Seen it before

A cinema charges students less for the same seat.
The truth
- One EU diplomat says a youth scheme without a fees deal adds very little. [35] The UK government will not comment on leaks. [35]
28
EU loses 59.3bn euros to profit shifting
What happened
- EU countries lose an estimated 59.3bn euros a year in tax as big firms move profits abroad. [36]
- The figure is from the Tax Justice Network, a campaign group. [36] It links about 8bn euros to the UK and its territories. [36]
- France loses most at 13.1bn euros, then Germany at 11.8bn. [36] The figures are for 2022. [36]
- The UK itself loses about £12.8bn a year this way, the network estimates. [36]
- The British Virgin Islands, the Cayman Islands and Bermuda top its ranking of tax havens. [36]
Why it matters

The OECD, a club of rich countries, says such schemes undermine the fairness of tax systems. [36] Most are not illegal, it says. [36]

How it works

Tax economists call it profit shifting. [36] A company records profit in a low-tax place, not where the work is done. [36]
One part of a group pays another part interest or royalties. [36] Those payments cut its taxable profit in the higher-tax country. [36]

Seen it before

A child hands a sibling their sweets just before a parent comes to count them.
The truth
- These are estimates from a campaign group using 2022 data. [36] Euronews says it asked the UK Treasury for comment, and prints no reply. [36]
- Who gains Companies booking profit in low-tax places — They pay less tax where the work is done, and most such schemes are not illegal. [36]
29
Pakistan cuts petrol a fourth time
What happened
- Pakistan cut petrol by 9.41 rupees a litre on Thursday, its fourth fall in a row, Dawn reports. [37]
- Petrol now costs 352.59 rupees a litre, and diesel 382.25. [37] Petrol peaked at 458.41 on 3 April. [37]
- Pakistan's government still takes 114 rupees a litre in taxes and duties on petrol. [37]
- Separately, 15.5 million people have signed up for a fuel subsidy, nearly all of them motorcycle owners. [38]
- Payments reached 28.6 billion rupees by 4 November, the prime minister's office says. [38]
Who is involved
- Shehbaz Sharif Pakistan's prime minister
- Petrol pumps licences at risk
Why it matters

Riders of 2-wheeled and 3-wheeled vehicles get 100 rupees off a litre, on up to 20 litres a month. [38]

How it works

Public finance calls this a targeted subsidy: help for a named group, not a price cut for everyone. [38]
The limit caps the cost: 20 litres for each motorbike, 30 for a small car. [38] People draw it with tokens at the pump. [38]

Seen it before

A school lunch card pays only for the pupils whose names are on it.
The truth
- The figures come from the prime minister's own office, in a statement praising the scheme. [38]
Good news
- Pakistan's petrol price has fallen 4 times in a row, to 352.59 rupees a litre from a peak of 458.41 in April.
What comes next

Prime Minister Shehbaz Sharif ordered licences cancelled for petrol pumps that fail to serve people on the scheme. [38]
30
AI shopping agents bought wrong nearly half the time
What happened
- Visa, the card payments firm, asked 22 AI agents to buy a TV, a laptop and a hair appliance. [39]
- Overall, they succeeded only around 57% of the time. [39]
- Each agent made 15 shopping trips, Fortune reports. [39] Often they bought the wrong product, or failed to suggest a suitable one. [39]
- The best, from Google and Meta, hit 82%. [39] A Claude agent scored 76%, and an OpenAI one 64%. [39]
- The 5 costliest agents succeeded 67% of the time on average, and the 5 cheapest 50%. [39]
Who is involved

Visa's growth chief Rubail Birwadker says the technology and people's trust are not there yet. [39]
- Rubail Birwadker growth chief at Visa
Why it matters

More people are asking these agents to shop for them, so a wrong choice can reach their own money. [39]

How it works

Economists call this a principal-agent problem: someone acting for you may not know what you want. [39]
In the test the shopper gave only some of its needs, like real buyers. [39] An agent had to ask for the rest, and many did not manage it. [39]

Seen it before

A friend picking your birthday present without asking may buy something you already own.
The truth
- Visa ran the test itself, and it is building tools for this kind of shopping. [39]
- Nobody knows yet
  Who pays when an AI shopping agent buys the wrong thing or commits fraud.
  
  Fortune says it is still unclear who bears the liability. [39]

Across the day

What is true of the whole day.

The truth, across the day

Prices rose 3.7% in the year to September, with gas prices driving them, and US economist Mark Zandi puts the Iran war's cost at nearly $2,000 a home. [2][7]

IRS raises US tax brackets 3.2% for 2027 and the standard deduction to $16,600, with rates unchanged and prices rising 3.7%

30 stories on this beat today.

Why taking $1,000 off income is not the same as taking $1,000 off the tax bill

What is true of the whole day.