News Bulletin: More Than 600,000 Jobs Added

According to the Labor Department’s September jobs report, the U.S economy saw another 661,000 added jobs in September.¹ The unemployment rate dipped from 8.4% in August to 7.9% in September, continuing its downward trend and signaling modest recovery in the labor market. However, the number of Americans who have permanently lost their jobs (as opposed to being temporarily furloughed) has risen to 3.8 million, a total increase of 2.5 million since February.¹

Because less Americans are driving during the pandemic due to working from home or social distancing, several states have seen a shortfall in revenue from taxes on gasoline that are meant to fund road repairs. This decrease in revenue has led some states to increase their fuel tax to offset the shortfalls. For example, New Jersey raised its state fuel tax from 30.9 cents to 40.2 cents for gasoline and from34.9 cents to 44.2 cents for diesel fuel. Meanwhile, the reduced demand for gas due to COVID-19 has lowered the average price of gasoline to $2.18 a gallon according to AAA as of late September.2

As many as 13.9 million taxpayers will receive an additional payment from the IRS this year. The IRS pays interest on tax refunds to taxpayers who timely file their federal income tax returns. Starting on April 15^th every year, interest begins to accrue on your refund until the payment is issued.³ Because Tax Day was postponed to July 15^th this year and the IRS has such a high backlog of returns right now, many eligible taxpayers who waited to file their taxes until later in the year will have accrued much more interest than normal. The IRS pays 5% annual interest, compounded daily from April 15^th through June 30^th. After July 1^st, the rate decreases to the legally prescribed rate for the third quarter of 3%.⁴ The interest amount, averaging $18, will be sent out as a second paper check or direct deposit. While this may be a welcome bit of extra money for many Americans, the interest on tax refunds is taxable, so those who receive it will have to pay taxes on it in the next tax year.

Walmart has announced its “Black Friday Deals for Days” event with plans to spread out Black Friday savings across three events in November. Consumers can shop online or in-store or shop online and pick-up from a store with contact-free curbside delivery. The events will be as follows, according to Walmart’s website:⁵
- - Event 1 begins online Nov. 4 with deals in-store Nov. 7. Walmart will offer deals on toys, electronics, and home products.
  - Event 2 begins online Nov. 11 with deals in-store Nov. 14. Walmart will offer deals on electronics like TVs, computers, and tablets, movies, music, and items in apparel, hardlines, home, and more.
  - Event 3 begins online Nov. 25 with deals in-store Nov. 27. Walmart will offer deals on electronics, toys, and gifts across apparel, home, and seasonal décor.

In the News: More Than 600,000 Jobs Added, Gas Taxes Spiking, IRS Interest Checks to be Sent, and More