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Biden Will Seek Tax Increase on Rich to Fund Child Care and Education

WASHINGTON — President Biden will seek new taxes on the rich, including a near doubling of the capital gains tax for people earning more than $1 million a year, to pay for the next phase in his $4 trillion plan to reshape the American economy.Mr. Biden will also propose raising the top marginal income tax rate to 39.6 percent from 37 percent, the level it was cut to by President Donald J. Trump’s tax overhaul in 2017. The proposals are in line with Mr. Biden’s campaign promises to raise taxes on the wealthy but not on households earning less than $400,000.The president will …

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Biden Administration Debating How to Overhaul a Trump-Era Tax Break

Critics of the program say the regulations issued by Mr. Trump’s Treasury Department, which were meant to clarify what sort of investments would qualify for the special tax treatment, are unlikely to drive much investment into the sorts of projects that would help struggling people and communities, such as new businesses that would create jobs in areas with persistently high unemployment. Critics say evidence suggests the zones could be rewarding wealthy investors for projects that might well have happened even without the tax breaks. That includes a Mississippi sawmill that Mr. Trump spotlighted in 2019, which a new owner agreed …

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Welcome to the YOLO Economy

In addition to the job-hopping you’d expect during boom times, the pandemic has created many more remote jobs, and expanded the number of companies willing to hire outside of big, coastal cities. That has given workers in remote-friendly industries, such as tech and finance, more leverage to ask for what they want.“Employees have a totally unprecedented ability to negotiate in the next 18 to 48 months,” said Johnathan Nightingale, an author and a co-founder of Raw Signal Group, a management training firm. “If I, as an individual, am dissatisfied with the current state of my employment, I have so many …

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The Fed Faces Criticism as It Wades Into Climate and Equity Issues

And Michael Strain, an economist at the American Enterprise Institute in Washington, said he was concerned that the Fed’s focus on fostering equity — by driving down Black unemployment, for instance — could make it too hesitant to lift interest rates, allowing inflation to bubble up.But Fed officials say the central bank is being pragmatic, not political. Ms. Daly regularly points out that understanding climate change risks to the financial system is important for bank regulators and supervisors. Mr. Powell said during a webcast Wednesday that the Fed sees such issues “through the lens of our existing mandates” — racial, gender …

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Looking Back at the First Roaring Twenties

In The New York Times on New Year’s Day 1929, 10 months before the crash, the financial editor Alexander Dana Noyes wrote both of “the most reckless stock speculation” and of a series of “exceedingly favorable” factors protecting the economy: a “sound banking system,” “expanding production and consumption,” “large profits,” “stability of prices,” “conservative methods of trade,” “labor’s high wages” and “increasing exports.”As stocks rose, people who had little knowledge of the market blithely bought shares for the first time, as Eunice Fuller Barnard described in “Ladies of the Ticker,” a firsthand account in April 1929.Recently, there has been …

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The Biden Administration Is Quietly Keeping Tabs on Inflation

“We think the likeliest outlook over the next several months is for inflation to rise modestly,” two officials at Mr. Biden’s Council of Economic Advisers, Jared Bernstein and Ernie Tedeschi, wrote on Monday in a blog post outlining some of the administration’s thinking. “We will, however, carefully monitor both actual price changes and inflation expectations for any signs of unexpected price pressures that might arise as America leaves the pandemic behind and enters the next economic expansion.”Some Republicans call that posture dangerous. Senator Rick Scott of Florida, the chairman of his party’s campaign arm for the 2022 …

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How Not to Get Fooled by the New Inflation Numbers

We could be on the verge of a golden era for inflation nonsense. If so, its start date may well turn out to have been Tuesday morning, when new data on consumer prices was released.The potential for misunderstanding derives from several forces crashing against each other at once. There are sure to be shortages of some goods and services as the economy creaks back to life, which could create scattered price increases for airplane tickets or hotel rooms or, as has been the case recently, certain computer chips.There are valid concerns that the trillions of dollars of government …

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Beyond Pandemic’s Upheaval, a Racial Wealth Gap Endures

“I want to emphasize that,” he added. “Through no fault of their own.”The pandemic has hit African-Americans and Latinos hardest on all fronts, with higher infection and death rates, more job losses, and more business closures.Proposals that confront the wealth gap head on, though, are both expensive and politically charged.Professor Darity of Duke, a co-author of “From Here to Equality: Reparations for Black Americans in the Twenty-First Century,” has argued that compensating the descendants of Black slaves — who helped build the nation’s wealth but were barred from sharing it — would be the most direct and effective …

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Jobs Report March 2021: Gain of 916,000 as Recovery Sped Up

But retailers, manufacturers and transportation companies added jobs as well, which Ms. Swonk said showed that the recovery was being driven by more than just the reopening of shuttered businesses. Government aid has given Americans money to spend, and the confidence to spend it.Businesses, too, appear to be growing more confident. Many of the jobs added in January and February were temporary positions, but in March, temporary staffing levels were essentially flat, indicating companies were filling permanent positions instead.Amy Glaser, senior vice president at the staffing firm Adecco, said that in recent weeks, a growing share of her …

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Big Companies Like FedEx and Nike Paid No Federal Taxes

Just as the Biden administration is pushing to raise taxes on corporations, a new study finds that at least 55 of America’s largest paid no taxes last year on billions of dollars in profits.The sweeping tax bill passed in 2017 by a Republican Congress and signed into law by President Donald J. Trump reduced the corporate tax rate to 21 percent from 35 percent. But dozens of Fortune 500 companies were able to further shrink their tax bill — sometimes to zero — thanks to a range of legal deductions and exemptions that have become staples of the tax code, according to the analysis.Salesforce, …

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