It fell immediately after the debt ceiling was raised in early August (purple line). Between July 20 (light green line) and July 29 (dark green line), interest rates on these bills rose nearly 30 basis points. As shown in figure 2, in 2011, interest rates on Treasury bills maturing right after the earliest anticipated X-date, August 2, started to rise only in late July. The premium being charged is significantly larger and rose significantly earlier than during the last-minute debt ceiling negotiations in 20. To give a sense of how consequential an increase of this magnitude is, consider the hypothetical that all interest rates for all maturities rose by this much and the premium was persistent: interest costs to finance the federal debt would increase by $4.10 trillion. For example, between mid-April (blue line) and May 22 (dark green line), interest rates on Treasury bills maturing on June 1 rose from 4.4 percent to 5.7 percent. Already, financial markets are concerned.įor Treasury bills that are scheduled to mature in June, investors are demanding a significant premium of 1.4 percentage points, or about 140 basis points, to shoulder the risk of not being paid on time (figure 1). If a portion of this advantage were lost by allowing the debt limit to bind, the cost to the taxpayer could be significant. government has enjoyed a borrowing rate that is estimated to be lower by roughly ¼ percentage point, meaning interest savings of more than $750 billion over the next decade. At the very least, investors would likely anticipate short-term interruptions in federal payments each time the debt limit nears, a significant escalation from their current expectations for negotiations to run right up to the last minute. Moreover, the negative effects could be persistent even after the debt ceiling is eventually increased. The increase in interest rates represents a cost to taxpayers and a lack of confidence among investors. We find that the relatively large premium being charged now on Treasury securities maturing in June suggests that financial markets are concerned that principal payments will indeed be delayed and more so than in prior debt limit standoffs. For a complete list of INTIME tax types and functionality, visit dor.in.gov and click on the “Access INTIME” button.Senior Research Assistant - Economic Studies, The Hamilton Project INTIME is now available 24/7 for business, corporate, and individual customers to manage their Indiana taxes at .gov. 27,000 address changes through INTIME *new functionality.71,000 electronic Power of Attorney (ePOA) *new functionality.6 million business returns filed through INTIME.Milestones reached through the completion of three of the four Project NextDOR rollouts include: It also solidifies the successful execution of Project NextDOR which we are proud to say will be completed on time and on budget.” “The addition of this final group of taxes to ITS and INTIME further enhances the service benefits for our customers and our DOR team. “Our entire team is excited to wrap up this critical phase of DOR’s modernization journey with this fourth rollout,” said DOR Commissioner Bob Grennes. For the final rollout (Rollout 4), DOR added new and enhanced electronic filing and payment services for customers who file Fuel, Alcohol, Cigarette, Other Tobacco Products, and other special taxes:
#Intime tax series#
Through a series of carefully planned rollouts, the new tax system and portal replaced the agency’s legacy tax systems that had been in production for more than 25 years.Įach annual rollout transitioned a group of designated taxes from the old systems to ITS and added customer functionality on INTIME. The Indiana Tax System (ITS) was officially introduced in September 2019 along with DOR’s new e-services portal, the Indiana Taxpayer Information Management Engine (INTIME). With the support of Governor Holcomb and the Indiana General Assembly, the transformation of DOR’s tax systems and service delivery began in 2017 and has been the agency’s focus for the last five years. Indianapolis, Indiana–The Indiana Department of Revenue (DOR) is nearing the completion of its multi-year tax system modernization effort with today’s launch of the fourth and final rollout of Project NextDOR.
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