Labor and Working – Page 58 – The Tarbabys Blog

Federal judge sentencing a Jan. 6 rioter worries Trump could spur another attack

NBC News

Federal judge sentencing a Jan. 6 rioter worries Trump could spur another attack

Ryan J. Reilly – March 21, 2024

WASHINGTON — A federal judge who has overseen numerous criminal cases against Donald Trump supporters who viciously assaulted police officers during the Jan. 6 attack on the Capitol expressed concern during a sentencing hearing Thursday that the former president could trigger another violent attack in the lead-up to or aftermath of the 2024 presidential election.

U.S. District Judge Rudy Contreras voiced those concerns while sentencing Jeffrey Sabol, a Colorado geophysicist, to 63 months, or more than five years, in federal prison. Sabol had told the FBI that he believed there was no question the election was stolen and that Dominion voting machines had been tampered with. Sabol also told the FBI he was filled with “patriotic rage” on Jan. 6, that a “call to battle was announced” and that he “answered the call because he was a patriot warrior.”

Contreras said that Trump and his allies had “spurred” the attack on the Capitol, saying he was worried that Sabol would respond once again if a similar “call” was issued.

“It doesn’t take much imagination to imagine a similar call coming out in the coming months,” Contreras said Thursday.

Sabol, who repeatedly assaulted officers at the lower west tunnel during the Capitol attack, was one of a fraction of the Jan. 6 defendants who had been held pretrial, so he’s already served the majority of his sentence. He was arrested on Jan. 11, 2021, just five days after the attack. Sabol destroyed his laptop in a microwave oven, dropped his cellphone in a body of water and tried to board a flight to Zurich, Switzerland, prior to his arrest, prosecutors said.

Contreras on Thursday also ordered Sabol to pay $32,165.65 in restitution and serve three years of supervised release.

Jeffrey Sabol, center, seen during the Jan. 6 attack on the U.S. Capitol. (U.S. District Court for the District of Columbia)

In the lead-up to the Capitol attack, many Trump supporters saw the former president’s Dec. 19, 2020 “will be wild” tweet encouraging people to come to Washington on Jan. 6 as a “call to arms.” As criminal cases against hundreds of Trump supporters have made their way through federal court, Jan. 6 defendants have said time and time again that they took the actions they did because they believed the former president’s baseless lies about the 2020 election.

Some Jan. 6 defendants have said they were duped and manipulated and expressed retroactive embarrassment about their lack of critical thinking skills, with some defendants even calling themselves idiots.

In the court gallery for Sabol’s sentencing was Micki Witthoeft, the mother of Jan. 6 rioter Ashli Babbit, who was shot and killed by a Capitol Police officer as she jumped through a broken window leading into the House Speaker’s Lobby. Witthoeft attended a vigil for Jan. 6 defendants outside a jail in Washington this week, which was livestreamed, saying that she had spoken with Trump on the phone earlier in the day and that the former president “talked about setting these guys free when he gets in,” a message he asked to be passed along to Jan. 6 defendants.

The former president was supposed to be currently standing trial in connection with his efforts to overturn his election loss. Instead, the Supreme Court will hear oral arguments on Trump’s claims of total presidential immunity from criminal charges next month, and it is unclear if he will face trial before Election Day 2024.

Numerous members of the federal judiciary in Washington have indicated that they believe Trump is responsible for the events of Jan. 6. Contreras said at a prior sentencing against a Jan. 6 rioter that Trump and his allies “bear responsibility for what occurred that day.”

Judge Amy Berman Jackson, at a prior Jan. 6 sentencing, said that the Republican Party was “actively shunning the few who think standing up for principle is more important than power and have stepped forward to educate the public and to speak the truth.” The threat to democracy, Berman Jackson said, did not evaporate or dissipate just because the 2020 election results were certified.

“The lie that the election was stolen or illegitimate is still being propagated. Indeed, it’s being amplified, not only on extremist social media sites, but on mainstream news outlets,” she said. “And worse, it’s become heresy for a member of the former president’s party to say otherwise.”

More recently, Senior U.S. District Judge Royce Lamberth expressed astonishment that Republican politicians had so readily latched onto “preposterous” claims about the events of Jan. 6 itself. He cited claims that criminals convicted in a court of law or ordered held until trial by federal judges because of their danger to the community or risk of flight were “hostages,” a term Trump and his supporters like Rep. Elise Stefanik, R-N.Y., have used.

“The Court is accustomed to defendants who refuse to accept that they did anything wrong. But in my thirty-seven years on the bench, I cannot recall a time when such meritless justifications of criminal activity have gone mainstream,” Lamberth, who was appointed by former President Ronald Reagan in 1987, said.

“I have been dismayed to see distortions and outright falsehoods seep into the public consciousness,” Lamberth continued. “The Court fears that such destructive, misguided rhetoric could presage further danger to our country.”

Republicans Call for Raising Retirement Age in Clash With Biden

Bloomberg

Republicans Call for Raising Retirement Age in Clash With Biden

Jack Fitzpatrick – March 20, 2024

(Bloomberg Government) — The largest caucus of House Republicans called for an increase in the Social Security retirement age Wednesday, setting up a clash with President Joe Biden over spending on popular entitlement programs.

The Republican Study Committee, which comprises about 80% of House Republicans, called for the Social Security eligibility age to be tied to life expectancy in its fiscal 2025 budget proposal. It also suggests reducing benefits for top earners who aren’t near retirement, including a phase-out of auxiliary benefits for the highest earners.

The proposal sets the stage for an election-year fight with Biden, who accused Republicans of going after popular entitlement programs during his State of the Union address.

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“If anyone here tries to cut Social Security, Medicare, or raise the retirement age, I will stop you,” Biden said in his March 7 address to Congress.

Rep. Kevin Hern (R-Okla.), the caucus’s chairman, said the president’s opposition to Social Security policy changes would lead to automatic benefit cuts when the program’s trust fund is set for insolvency in 2033. A phased-in retirement age change was a standard feature of past negotiations, he said.

“Anytime there’s been any reforms in history – President Clinton, President Reagan – had a slow migration of age changes for people that are 18, 19 years old,” Hern told reporters Wednesday.

Former President Donald Trump, the likely GOP presidential nominee this year, has offered an inconsistent position on entitlements. He said in a March 11 CNBC interview that “there’s a lot you can do in terms of entitlements, in terms of cutting.” He then told Breitbart he “will never do anything that will jeopardize or hurt Social Security or Medicare.”

The caucus’s budget proposal is more aggressive than the recent proposal by House Budget Committee Chairman Jodey Arrington (R-Texas), who advanced a budget resolution earlier this month that called for a bipartisan commission to negotiate Social Security and Medicare solvency but didn’t make specific policy recommendations. The Republican Study Committee, meanwhile, called for policy changes that would reduce spending on Social Security by $1.5 trillion and Medicare by $1.2 trillion over the next decade.

Republicans have said their proposals aren’t truly cuts and wouldn’t affect those at or near retirement. But Biden and congressional Democrats such as Rep. Brendan Boyle (D-Pa.), ranking member of the Budget Committee, have said they won’t support an increase in the age of eligibility.

The caucus’s proposal leaves some details out. It calls “modest changes to the primary insurance amount” for those who aren’t near retirement and “earn more than the wealthiest” benefit level. It also proposes “modest adjustments to the retirement age for future retirees to account for increases in life expectancy.” And it would “limit and phase out auxiliary benefits for high income earners.”

The proposal projects to balance the federal budget by 2031, outlining $16.6 trillion in spending cuts over a decade.

The proposal calls for Medicare spending reductions by implementing a “premium support model” in which private Medicare Advantage plans would compete with the federal Medicare plan. It proposes moving graduate medical education payments, which go to teaching hospitals for their residency programs, into a trust fund separate from Medicare.

Biden’s fiscal 2025 budget proposal, released March 11, called for an increase in the tax rate to support Medicare on those earning more than $400,000 a year, from 3.8% to 5%. It also broadly called for top earners to pay more to support Social Security, but didn’t make specific proposals. White House Office of Management and Budget Director Shalanda Young told reporters the Biden administration doesn’t like the current structure of the payroll tax — which only applies to the first $168,600 of an individual’s income.

The document notes that Biden previously supported increasing the retirement age from 65 to 67 after bipartisan negotiations in 1983.

One of the trust funds that supports Social Security is projected for insolvency in 2033, the program’s board of trustees said their most recent estimate in March 2023.

House’s largest conservative caucus calls for increase in retirement age

The Hill

House’s largest conservative caucus calls for increase in retirement age

Sarah Fortinsky – March 20, 2024

The Republican Study Committee (RSC), which comprises nearly 80 percent of all House Republicans, called for an increase in the retirement age in its budget proposal released Wednesday.

The RSC budget proposes raising that age for those who are not near retirement “to account for increases in life expectancy.” The budget did not provide specifics.

The budget also proposes limiting and phasing out auxiliary benefits for “high income earners.”

Without offering details, the RSC proposes “modest changes” to the primary insurance amount (PIA) benefit formula, which also would not apply to seniors near retirement, nor would it apply to the wealthiest earners.

The RSC repeatedly sounded the alarm in the budget proposal about the prospect of the Social Security fund becoming insolvent and called for a bipartisan approach to solving the issue.

“With insolvency approaching in the 10-year budget window, Congress has a moral and practical obligation to address the problems with Social Security,” the RSC proposal read. “These common-sense, incremental reforms will simply buy Congress time to come together and negotiate policies that can secure Social Security solvency for decades to come.”

The budget proposal, however, devotes significant space to railing against President Biden and his proposed tax policies, including rate hikes for the wealthiest Americans.

In releasing the budget report, the RSC sets up a potential clash with the White House, as President Biden has repeatedly tried to claim Republicans want to slash Social Security benefits.

At his State of the Union address on March 7, Biden said, “If anyone here tries to cut Social Security or Medicare or raise the retirement age, I will stop them.”

“I will protect and strengthen Social Security and make the wealthy pay their fair share,” he said.

The issue has become a sticking point ahead of the 2024 presidential election. The Biden campaign seized on a recent interview on CNBC with former President Trump, where he floated possible cuts.

“There is a lot you can do in terms of entitlements, in terms of cutting and in terms of also the theft and the bad management of entitlements, tremendous bad management of entitlements,” Trump said in the interview. “There’s tremendous amounts of things and numbers of things you can do. So I don’t necessarily agree with the statement.”

Biden responded on social media, writing, “Not on my watch.”

Trump soon walked back his remarks, saying in a subsequent interview with Breitbart, “I will never do anything that will jeopardize or hurt Social Security or Medicare … We’ll have to do it elsewhere. But we’re not going to do anything to hurt them.”

“There’s so many things we can do,” Trump said on Breitbart. “There’s so much cutting and so much waste in so many other areas, but I’ll never do anything to hurt Social Security.”

Leonard Leo, Koch networks pour millions into prep for potential second Trump administration

NBC News

Leonard Leo, Koch networks pour millions into prep for potential second Trump administration

Katherine Doyle – March 21, 2024

WASHINGTON — Huge funding from influential conservative donor networks is flowing into a conservative venture aimed at creating a Republican “government-in-waiting,” including over $55 million from groups linked to conservative activist Leonard Leo and the Koch network, according to an Accountable.US review shared exclusively with NBC News.

Launched by the Heritage Foundation in April 2022, Project 2025 is a two-pronged initiative to develop staunch conservative policy recommendations and grow a roster of thousands of right-wing personnel ready to fill the next Republican administration. With former President Donald Trump now the GOP’s presumptive 2024 nominee, the effort is essentially laying the groundwork for a potential Trump transition if he wins the election in November.

With contributions from former high-level Trump administration appointees and an advisory board that has grown to over 100 conservative organizations, proponents describe Project 2025 as the most sophisticated transition effort that has existed for conservatives. The initiative includes a manifesto devising a policy agenda for every department, numerous agencies and scores of offices throughout the federal government.

In this Nov. 16, 2016 file photo, Federalist Society Executive Vice President Leonard Leo speaks to media at Trump Tower in New York. Leo is advising President Donald Trump on his Supreme Court nominee. (Carolyn Kaster / AP file)

Since 2021, Leo’s network has funneled over $50.7 million to the groups advising the 2025 Presidential Transition Project as part of its “Project 2025 advisory board,” according to tax documents reviewed as part of the analysis by Accountable.US, a progressive advocacy group. That sum includes donations from The 85 Fund, a donor-advised nonprofit group that funnels money from wealthy financiers to other groups, and the Concord Fund, a public-facing organization.

In 2022, the donor-advised fund DonorsTrust, which received more than $181 million from Leo-backed groups from 2019 to 2022, contributed over $21.1 million to 40 organizations advising Project 2025. It contributed nearly $20 million to 36 nonprofit organizations advising Project 2025 in 2021.

Leo, a top conservative megadonor, has worked to shift the American judiciary further to the right, having previously advised Trump on judicial picks while he was in office and helping to build the current conservative Supreme Court majority.

In addition to Leo’s funding to organizations advising Project 2025, the Heritage Foundation’s own donations surged in 2022. It contributed $1,025,000 to nine of the advisory groups, up from a total of $174,000 in grants to other nonprofit groups a year earlier.

The Heritage Foundation did not immediately respond to a request for comment.

The review by Accountable.US also found that oil billionaire Charles Koch’s network directed over $4.4 million in 2022 to organizations on Project 2025’s advisory board via its donor conduit, Stand Together Trust.

Project 2025’s vision for the next conservative administration’s energy agenda would rapidly increase oil and gas leases and production through the Interior Department to focus on energy security, and proposals include reforming offices of the Energy Department to end focus on climate change and green subsidies.

The Environmental Protection Agency would cut its environmental justice and public engagement functions, “eliminating the stand-alone Office of Environmental Justice and External Civil Rights,” according to a proposal drafted by Mandy Gunasekara, a former chief of staff at the EPA under Trump.

The advisory board for Project 2025 includes representatives from conservative groups led by veterans of the Trump administration, such as America First Legal, the Center for Renewing America and the Conservative Partnership Institute, as well as conservative mainstays like the Claremont Institute, the Family Research Council and the Independent Women’s Forum.

Accountable. US executive director Tony Carrk warned that Project 2025’s stark conservative program and its advisory groups are made possible by funding from right-wing donors’ funneling tens of millions of dollars to the effort.

“The ‘MAGA blueprint’ isn’t a one-off project — it’s backed by the same far-right figures who have long dictated the conservative agenda,” Carrk said. “Leo, Koch and others should be held to account for propping up a policy platform that puts special interests over everyday Americans and poses an existential threat to our democracy.”

While the groups advising Project 2025 haven’t been supporting a candidate outright, many of the people leading them or with longtime affiliations have close ties to Trump after having served in his administration. NBC News projects that Trump has now clinched the delegate majority for the Republican nomination, setting up a rematch with President Joe Biden in November.

State Farm to non-renew 72,000 policies in California

KTLA

State Farm to non-renew 72,000 policies in California

Iman Palm – March 21, 2024

State Farm General Insurance Company plans to non-renew about 30,000 property insurance and 42,000 commercial apartment policies in California, the company announced Wednesday.

State Farm, California’s largest insurer as of 2022, said the move would impact 2% of its total policies in the state and was made to ensure “long-term sustainability.”

3D printed fire-resistant home being built in L.A. County

The 42,000 commercial apartment non-renewals represent a complete withdrawal from the commercial apartment market in California. The other 30,000 non-renewals would impact homeowners, rental dwellings, and other property insurance policies, according to State Farm.

The announcement applies to California customers only. The company said those impacted will be notified between July 3 and Aug. 20.

“This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations. State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now,” the company said in a statement.

The company also said it will continue working with the Department of Insurance, Gov. Gavin Newsom and other policymakers as they pursue reforms “to establish an environment in which insurance rates are better aligned with risk.”

Can California lure insurers back to the state?

In February, the state’s insurance department announced proposals to reform California’s insurance regulations. The new proposal would allow insurance companies to switch from using historical data to catastrophe modeling, meaning companies would calculate projections of future risk when raising rates and pass on the cost of reinsurance to consumers.

The new changes are expected to take effect at the end of the year.

Last year, State Farm announced it would stop accepting new insurance applications for all business and personal property in California.

Since then, other companies like Allstate have announced similar moves.

State Farm discontinuing 72,000 home policies in California in latest blow to state insurance market

Associated Press

State Farm discontinuing 72,000 home policies in California in latest blow to state insurance market

Associated Press – March 21, 2024

FILE - Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File) — Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File)

FILE - Residences leveled by a wildfire in Paradise, Calif., are seen on Nov. 15, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File) — Residences leveled by a wildfire in Paradise, Calif., are seen on Nov. 15, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File)

SACRAMENTO, Calif. (AP) — State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state

The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday.

“State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws,” it continued. “It is necessary to take these actions now.”

The move comes as California’s elected insurance commissioner undertakes a yearlong overhaul of home insurance regulations aimed at calming the state’s imploding market by giving insurers more latitude to raise premiums while extracting commitments from them to extend coverage in fire-risk areas, the news group said.

The California Department of Insurance said State Farm will have to answer question from regulators about its decision to discontinue coverage.

“One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds,” Deputy Insurance Commissioner Michael Soller said. “We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.”

It was unclear whether the department would launch an investigation.

Last June, State Farm said it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.”

The company said the newly announced cancellations account for just over 2% of its California policies. It did not say where they are located or what criteria it used to determine that they would not be renewed.

House Republicans Endorse National Abortion Ban

Rolling Stone

House Republicans Endorse National Abortion Ban

Andrew Perez – March 21, 2024

A caucus representing most House Republican lawmakers endorsed a 15-week national abortion ban on Wednesday. The announcement came one day after former President Donald Trump indicated that he could support a 15-week abortion ban.

The Republican Study Committee (RSC), which includes nearly 80 percent of all House Republicans, released its 2025 budget proposal on Wednesday, titled “Fiscal Sanity to Save America.” Despite being billed as a budget plan, it is a highly ideological document.

“The gift of life is precious and should be protected,” the document states, adding that the “RSC celebrates the Dobbs v. Jackson Women’s Health Organization decision.” In that case, the Supreme Court overturned federal protections for abortion rights, using the 6-3 conservative supermajority that Trump helped create.

The RSC document goes further: It endorses a 15-week national abortion ban, as well as legislation that could eliminate access to in vitro fertilization, or IVF. In an email to reporters Wednesday night, the Biden White House tied the document to Trump, saying that the “Trump Republican budget would ban abortion nationwide [and] rip away IVF access.”

The RSC budget “applauds” a series of “measures designed to advance the cause of life,” including the “Protecting Pain-Capable Unborn Children from Late-Term Abortions Act, which would prohibit abortions after 15 weeks.”

The proposal meshes with comments Trump made Tuesday suggesting he could back a 15-week national abortion ban. “The number of weeks, now, people are agreeing on 15, and I’m thinking in terms of that, and it’ll come out to something that’s very reasonable,” he said. “But people are really — even hard-liners are agreeing, seems to be 15 weeks, seems to be a number that people are agreeing at. But I’ll make that announcement at the appropriate time.”

The budget plan from the RSC also applauds the “Life at Conception Act, which would provide 14th amendment protections at all stages of life.” As CNN reported last month, the bill “does not include a carveout for IVF,” and “reproductive rights activists worry the legislation — if ever passed — would have a chilling effect on IVF clinics.”

The RSC’s support for the Life at Conception Act comes in the wake of a controversial Alabama Supreme Court decision finding that embryos created using IVF are people in the eyes of the law and covered under the state’s wrongful death statute.

Conservative House Republicans unveil plan to attack Biden admin policies. Here’s what they would target

USA Today

Conservative House Republicans unveil plan to attack Biden admin policies. Here’s what they would target

Ken Tran, USA TODAY – March 20, 2024

WASHINGTON – The Republican Study Committee, the largest caucus made up of House Republicans, unveiled a course on Wednesday for dismantling many of President Joe Biden’s signature policies – though the proposal’s chances are slim for now.

As part of the RSC’s annual budget, first shared with USA TODAY, the group is pushing to roll back or loosen many of the Biden administration’s major federal rules and regulations.

Republicans in the group are taking aim at a wide range of policies, including initiates to combat climate change, a Defense Department policy reimbursing travel for service members who must cross state lines to receive abortions and Justice Department gun control regulations. In the budget, Republicans call for a return to former President Donald Trump’s approach during his term in office.

Rep. Kevin Hern, R-Okla., speaks to reporters after dropping out of the race for Speaker of the House, and endorsed Rep. Mike Johnson, R-La., as House lawmakers seek to elect a new speaker in Washington.

“The RSC Budget would take bold and necessary action to rein in the Biden Administration’s dangerous regulatory regime, returning to the example set by former President Donald Trump,” the proposal reads, accusing Biden of implementing “a radical” agenda.

The conservative group, led by Rep. Kevin Hern, R-Okla., released their plan after Biden announced a federal budget earlier this month with an eye toward new social programs for housing, health care and child care.

But the budget framework from the GOP group, which comprises almost 80% of the House Republican conference, offers a preview into what policy priorities Republicans are itching to advance should they reclaim the White House, the Senate and hold on to the House.

The budget doesn’t just endorse a slate of GOP-led legislation. It also includes pushes meant to curtail the Biden White House’s executive authority “to restore the appropriate balance of power” between Congress and the presidency.

Included is Rep. Kat Cammack’s Regulations from the Executive in Need of Scrutiny Act, or REINS ACT, that would require Congress to sign off on any rule from a presidential administration that has an economic impact of $100 million or more. The bill passed the House last year on a party-line vote, though it has little chance in the Democratic-controlled Senate.

The proposal also goes after Biden for vetoing a bill passed last year that would have done away with a Labor Department rule for 401(k) plans. The rule allows fund managers to invest the retirement plans in “environmental, social and governance” funds (ESG) if it is in the best interest of the investor.

The funds are typically centered around “socially responsible companies” that focus on addressing environmental and social problems. Republicans have derided the rule as too “woke,” but the rule does not require investment into ESG funds.

Today, the RSC’s proposal is simply a conservative wish list, actions that have little chance of becoming law while Democrats control the Senate and Biden remains in the White House.

But as the presidential election and congressional races across the country pick up steam, the plan could reflect how Republicans are seeking to rally voters in the fall.

“It’s on us to reign in the executive branch and rescind their authority to make decisions that belong to the legislature,” Hern said in a statement to USA TODAY. “Our constituents sent us here to provide a check on the White House. We can’t be passive about it, it’s time for results.”

US economy on solid ground as weekly jobless claims fall, home sales surge

Reuters

US economy on solid ground as weekly jobless claims fall, home sales surge

Lucia Mutikani – March 21, 2024

WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, while sales of previously owned homes increased by the most in a year in February, signs the economy remained on solid footing in the first quarter.

That was underscored by other data on Thursday showing business activity stable in March, though inflation picked up. Even a gauge of future economic activity turned positive in February for the time in two years. The United States continues to outshine its global peers, thanks to labor market resilience.

The Federal Reserve on Wednesday left interest rates unchanged, with policymakers upgrading their growth forecasts for this year and indicating they still expected to lower borrowing costs three times by year end. Economists said the upbeat economic reports made it more unlikely that the U.S. central bank would start cutting rates before June.

“Companies are not laying off workers and the labor market remains relatively strong,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “And now there are signs of life for existing home sales. This makes easing monetary policy at this juncture more problematic.”

Initial claims for state unemployment benefits dropped 2,000 to a seasonally adjusted 210,000 for the week ended March 16, the Labor Department said. Economists polled by Reuters had forecast 215,000 claims in the latest week.

Claims have been mostly bouncing around in a 200,000-213,000 range since February. Despite a flurry of high-profile layoffs at the start of the year, employers have largely been hoarding labor after struggling to find workers during and after the COVID-19 pandemic.

Unadjusted claims decreased 12,730 to 189,992 last week. Applications in California plunged by 5,369, while filings in Oregon fell 2,580. They more than offset notable increases in Michigan and Missouri.

Fed Chair Jerome Powell told reporters on Wednesday he did not see “cracks” in the labor market, which he described as “in good shape,” noting that “the extreme imbalances that we saw in the early parts of the pandemic recovery have mostly been resolved.” The U.S. central bank has raised its benchmark interest rate by 525 basis points to the current 5.25%-5.50% range since March 2022.

The claims data covered the period during which the government surveyed business establishments for the nonfarm payrolls portion of March’s employment report. Claims rose marginally between the February and March survey weeks. The economy added 275,000 jobs in February.

Data next week on the number of people receiving benefits after an initial week of aid, a proxy for hiring, will offer more clues on the health of the labor market in March. The so-called continuing claims increased 4,000 to 1.807 million during the week ending March 9, the claims report on Thursday showed.

“The labor market is gradually rebalancing, but the adjustment appears to be coming from less hiring rather than a surge in firings,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “We expect job growth to slow somewhat but the unemployment rate to remain low this year.”

HOUSING SUPPLY IMPROVES

Stocks on Wall Street were trading higher. The dollar was steady versus a basket of currencies. U.S. Treasury prices fell.

In a separate report on Thursday, the National Association of Realtors said existing home sales jumped 9.5% last month to a seasonally adjusted annual rate of 4.38 million units, the highest level since February 2023. The monthly increase in sales was also the largest since February 2023.

Economists had forecast home resales would fall to a rate of 3.94 million units. Sales were boosted by an improvement in housing supply, with inventory surging 5.9% to 1.07 million units, the highest for any February since 2020. Supply was up 10.3% from one year ago.

Home resales, which account for a large portion of U.S. housing sales, fell 3.3% on a year-on-year basis in February.

The housing market has been battered by the Fed’s aggressive monetary policy stance as it fights inflation, and the signs of improvement in supply, together with retreating mortgage rates, bode well for the spring selling season.

Nonetheless, housing inventory is still well below the nearly 2 million units before the pandemic. Homes in many areas, especially in the Northeast, continue to receive multiple offers, pushing out first-time buyers, who accounted for only 26% of transactions last month.

That share is well below the 40% that economists and realtors say is needed for a robust housing market. A fifth of the homes sold last month were above listing price.

Many homeowners have mortgages with rates below 4%, discouraging them from selling their houses, contributing to the supply crunch and higher home prices. The median existing home price increased 5.7% from a year earlier to $384,500 in February. Home prices increased in all four regions, and could remain elevated with supply still likely to lag demand.

“If broader activity remains strong, a further normalization of home sales and new listings could be an indication that homebuyers are adapting to a higher level of rates,” said Veronica Clark, an economist at Citigroup in New York.

The increase in sales means more brokers’ commissions, which should boost the residential investment component in the gross domestic product report. Goldman Sachs raised its first-quarter GDP growth estimate to a 1.9% annualized rate from a 1.7% pace. The economy grew at a 3.2% rate in the fourth quarter.

The economy’s improving prospects for this year were reflected in a fourth report from the Conference Board showing its leading economic index rebounded 0.1% in February after declining 0.4% in January. That was the first increase since February 2022.

“The economy is poised to continue in expansion mode,” said Priscilla Thiagamoorthy, a senior economist a BMO Capital Markets in Toronto.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama, Paul Simao and Andrea Ricci)

The IRS Is Cracking Down on These High-Income Earners. Are You One of Them?

Smart Asset

The IRS Is Cracking Down on These High-Income Earners. Are You One of Them?

Mark Henricks – March 21, 2024

The IRS recently announced a major tax enforcement initiative that will increase scrutiny on high-income earners, partnerships and people with foreign bank accounts. The agency said the effort would “restore fairness to [the] tax system” by focusing on wealthy taxpayers who have seen sharp declines in audit rates over the past decade.

Targeting Million-Dollar Earners With Large Tax Debts

At the center of the IRS crackdown are individuals who report over $1 million in income and have more than $250,000 in recognized tax debt. In its Sept. 8 announcement, the agency said it has identified 1,600 taxpayers fitting these criteria who collectively owe hundreds of millions in unpaid taxes.

The IRS described plans to use specialized revenue officers concentrating solely on collecting from these high-end delinquent accounts starting in fiscal year 2024. For those who fall into this segment, expect the IRS to come knocking as early as next year.

The news follows an injection of billions of dollars into the IRS budget from the Inflation Reduction Act. The agency says the added funding will pay the cost of collecting more from wealthy tax cheats, while maintaining low audit rates for people earning less than $400,000 a year. Another goal is to reduce or limit audits of moderate- and low-income taxpayers claiming the Earned Income Tax Credit (EITC).

AI-Powered Large Partnership Audits

The IRS is also significantly expanding examinations of large partnership tax returns. Because their complexity overwhelmed the tax collection agency’s resources and ability to analyze them, these returns have received limited scrutiny historically, according to the IRS. Audit rates for these large partnerships have also declined in recent years as the agency’s funding and staff have shrunk.

By the end of September, the agency plans to change that by opening audits of 75 of the biggest partnerships in the U.S., each with over $10 billion in assets. In October, the IRS will also begin mailing compliance notices to 500 partnerships for unexplained discrepancies in their balance sheets that could potentially trigger audits if not addressed.

The IRS plan calls for using artificial intelligence to analyze these complex returns. The idea is to employ machine learning to detect anomalies and more accurately target non-compliant returns for audit. This, the agency says, will enable more efficient use of limited IRS exam resources on detailed exams of complex partnership returns.

IRS statements on this new initiative stress that it won’t affect taxpayers with moderate and lower incomes. However, no matter what your income, if you hold partnership interests, especially in a large private equity fund, hedge fund or real estate partnership, you may be affected by the new enforcement.

Increased Enforcement on Foreign Financial Accounts

The Amount You Owe box from a 1040 income tax form.

The IRS is also expanding enforcement for failure to disclose foreign bank and financial accounts. By law, you must file a foreign bank account report (FBAR) separately from your return if you have over $10,000 in offshore accounts.

The IRS found filing discrepancies indicating potential non-compliance among hundreds of taxpayers with average account balances exceeding $1.4 million. The agency is planning to audit the most serious FBAR offenders in 2024.

If you have any foreign accounts or assets, pay close attention to FBAR filing obligations. The IRS intends to have more sophisticated means on hand to identify unreported foreign holdings. Penalties for willful failures to disclose required information can be stiff.

Bottom Line

This IRS is expanding its enforcement efforts on high-income taxpayers and large partnerships for which audit rates have plunged over the past decade. If you earn over $1 million, hold interests in major partnerships or have foreign financial accounts, you may be in the IRS’ crosshairs. Even taxpayers who previously have avoided audits may now attract scrutiny from a more endowed IRS. Now more than ever, it’s advisable to tap into qualified tax advice, be proactive about compliance and respond quickly, accurately and completely to any IRS notices in order to minimize potential penalties and interest.