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  • Microsoft buys stake in London Stock Exchange in cloud data deal | CNN Business

    Microsoft buys stake in London Stock Exchange in cloud data deal | CNN Business

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    London
    CNN
     — 

    Microsoft

    (MSFT)
    is buying a 4% stake in the London Stock Exchange as part of a deal that will see the market operator spend at least $2.8 billion over 10 years on the software provider’s cloud services.

    The companies announced the partnership in a joint statement on Monday, touting the benefits it will deliver to the stock exchange’s customers through improved data and analytics. Shares of the London Stock Exchange Group (LSEG) gained 4% in early trade.

    The partnership “creates attractive revenue growth opportunities for both companies,” LSEG CEO David Schwimmer said in the statement.

    As part of the deal, the London Stock Exchange’s data platform and other technology infrastructure will migrate into Microsoft’s Azure cloud environment.

    The companies also plan to work together to develop new products and services for data and analytics using Microsoft Azure, Microsoft Teams and Microsoft’s artificial intelligence (AI) capabilities.

    As a start, the exchange will be able to share its data and analytics with Teams and Microsoft 365, which includes Excel and PowerPoint.

    “The partnership will build on the good progress made by LSEG on the integration of Refinitiv and enhance its position as a world-leading financial markets infrastructure and data provider,” the statement said.

    LSEG completed its $27 billion acquisition of Refinitiv last year, making it the second largest financial data company after Bloomberg. Its data and analytics business makes up two-thirds of group revenue.

    The deal with Microsoft includes a commitment by LSEG to spend at least $2.8 billion on the software provider’s cloud-related products and services over the 10-year term of the partnership. This is consistent with existing long-term spending plans, according to the statement.

    Microsoft will buy its LSEG shares from Blackstone and Thomson Reuters

    (TRI)
    . The purchase is expected to complete in the first quarter of 2023.

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  • First Gen Z congressman-elect says he was denied DC apartment over bad credit | CNN Politics

    First Gen Z congressman-elect says he was denied DC apartment over bad credit | CNN Politics

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    CNN
     — 

    The congressman-elect set to become the first member of Generation Z to serve in Congress said Thursday his rental application for an apartment in Washington, DC, was denied because of his “really bad” credit.

    “Just applied to an apartment in DC where I told the guy that my credit was really bad. He said I’d be fine. Got denied, lost the apartment, and the application fee. This ain’t meant for people who don’t already have money,” Maxwell Frost said in a tweet.

    Frost, an Orlando-based community organizer, made history last month when he won election in Florida’s 10th Congressional District at just 25 years old. Frost surprised party leaders with his victory in a crowded primary filled with senior political figures to replace outgoing Rep. Val Demings, before comfortably winning against his Republican opponent in a solidly blue district.

    In a Twitter thread, the congressman-elect expressed frustrations with relocating to the capital, saying that he has bad credit because he “ran up a lot of debt running for Congress for a year and a half” and that he did not make enough money working for Uber to pay for the cost of living.

    Frost said that he quit his full time job during his race’s primary, because “I knew that to win at 25 yrs old, I’d need to be a full time candidate. 7 days a week, 10-12 hours a day. It’s not sustainable or right but it’s what we had to do.”

    “As a candidate, you can’t give yourself a stipend or anything till the very end of your campaign,” he added. “So most of the run, you have no $ coming in unless you work a second job.”

    CNN has reached out to Frost’s office for comment.

    In comments to The Washington Post, Frost declined to identify the building, the size of his debt or credit score, but said the building where his application was rejected was in the city’s Navy Yard neighborhood, roughly a mile from the US Capitol. He said he lost the $50 application fee.

    Frost is not the only incoming member of Congress to have struggled to find housing in DC.

    On Twitter, he referenced New York Rep. Alexandria Ocasio-Cortez, who, in 2018 became the youngest woman elected to Congress at age 29 – and who also had a hard time as an incoming lawmaker finding affordable housing in Washington on her then-salary.

    Frost pointed out that once his congressional salary kicks in, he’ll be fine, adding that “we have to do better” for others.

    “I also recognize that I’m speaking from a point of privilege cause in 2 years time, my credit will be okay because of my new salary that starts next year,” Frost said. “We have to do better for the whole country.”

    Members of the House and Senate earn $174,000 a year, according to the Congressional Research Service, but that salary will not begin until Frost is sworn in on January 3.

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  • Why we think we’re in a recession when the data says otherwise | CNN Business

    Why we think we’re in a recession when the data says otherwise | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN Business
     — 

    It seems like you can’t go anywhere these days without colliding headfirst into another ominous prediction of imminent recession. CEOs, portfolio managers, politicians, news pundits, second cousins and even Cardi B are sounding the alarm: Hear ye! Hear ye! Economic downturn awaits all who dare enter 2023!

    But those predictions contradict the slew of positive economic data we’ve seen: The job market is healthy, wages are growing, Americans are spending and GDP is strong. Business is also good: Companies are largely beating revenue expectations and reporting positive earnings results.

    The Federal Reserve’s regimen of painful interest rate hikes meant to tame persistent inflation could certainly cool the economy — as could events in Eastern Europe and China — but the economy has been able to successfully endure nearly a year of hikes and war in Ukraine with barely a dent.

    It’s possible that recession chatter is just that. Chatter.

    What’s happening: No one would ever accuse investors of shying away from their emotions: Passions run high on trading floors where feelings are often as valid as facts and fear and greed can sometimes run the show. Economists, on the other hand, are a data-dependent, stoic bunch. The US economy is not Wall Street, and market downturns are not recessions — but sometimes they get jumbled together in the public eye and their borders become hazy.

    That appears to be the case: The Fed’s attempts to tamp down sky-high inflation are having an outsized impact on markets — the S&P 500 is down about 18% so far this year but there has so far been little impact on the US economy as a whole.

    This week, a number of top executives warned of an economic slowdown in 2023. CEOs from Goldman Sachs, JPMorgan, General Motors, Walmart, United and Union Pacific all said they were making plans for less-profitable times ahead. But hidden behind those “CEO PREDICTS RECESSION” headlines lies a lot of uncertainty.

    Rising interest rates and geopolitical chaos are pointing towards storm clouds on the horizon, JPMorgan CEO Jamie Dimon told CNBC on Tuesday: “When you look out forward, those things may well derail the economy and cause this mild-to-hard recession that people are worried about.” When pressed to predict what was coming, he deflected. “It could be a hurricane. We simply don’t know,” he said. What was left unsaid was that sunny days are also a possibility.

    Feedback loop: United Airlines CEO Scott Kirby also told CNBC on Tuesday that “we’re probably going to have a mild recession induced by the Fed.” He then went on to say that demand in his industry is higher than ever and United entered the fourth quarter with profit margins near all-time highs. He doesn’t see any indication of a slowdown on the horizon, either.

    So why does he think a recession is coming? “If I didn’t watch CNBC in the morning, the word ‘recession’ wouldn’t be in my vocabulary,” he said. “You just can’t see it in our data.”

    It’s almost as though Kirby predicted recession was imminent because other prominent voices predicted that recession was imminent. And it’s possible that we’re all stuck in a feedback loop that amplifies unjustified fear.

    Prophecies are often self-fulfilling. If CEOs believe recession is coming, they preemptively batten down the hatches — and that means less spending and more layoffs, which in turn can trigger an economic downturn.

    Goldman CEO David Solomon said Tuesday that the bank may soon terminate staff and exercise caution with its financial resources due to the mounting economic uncertainty. Morgan Stanley will reportedly slash its workforce by about 1,600 people, roughly 2% of the total.

    The upside: Some parts of Wall Street seem to be avoiding the recession fervor. ​​A recent study by Goldman Sachs found that smart money is betting on a soft landing. Money managers have been favoring industrial and commodity stocks that are sensitive to economic downturns. Stocks that act as a buffer during economic downturns like consumer staples and utilities have fallen out of favor at investment funds with assets totaling almost $5 trillion, Goldman strategists found.

    “Current sector tilts are consistent with positioning for a soft landing,” they wrote.

    Oil prices have tumbled to their lowest level since Christmas as worries about the health of the economy weigh on crude, overshadowing concerns about new restrictions imposed on Russian energy, reports my colleague Matt Egan.

    Brent crude, the world benchmark, lost nearly 3% on Thursday to around $77.45 a barrel.

    The oil selloff comes after the West hit Russia with new restrictions that, so far at least, do not appear to be derailing global energy markets.

    The European Union on Monday imposed a ban on seaborne oil imports from Russia, while the West placed a $60 cap on Russian oil. Both moves are designed to hurt Russia’s ability to finance its war in Ukraine, without hurting consumers by causing Moscow to slash oil production.

    “Russia oil is still on the market. As of now, it appears Russia is willing to play ball,” said Robert Yawger, vice president of oil futures at Mizuho Securities.

    The tame reaction from energy markets is a welcome gift for Americans heading on long drives this holiday season, as prices at the gas pump are expected to continue their recent plunge.

    US oil this week hit its lowest level since December 23, 2021, before recovering a little on Thursday to trade up 2% at $73.60 a barrel. That leaves oil down by 43% since briefly topping $130 a barrel in March amid fears about Russia’s invasion of Ukraine.

    The national average price for regular gasoline dipped by three cents to $3.33 a gallon on Thursday, according to AAA. Gas prices have dropped 14 cents in the past week and 47 cents in a month. The national average is a cent lower than a year ago when they averaged $3.34 a gallon.

    Britain is bracing for further disruption from strikes heading into the Christmas period, as ambulance drivers and nurses join rail operators and postal workers in the worst wave of walkouts the country has endured for at least a decade, reports my colleague Hanna Ziady.

    More than 20,000 ambulance workers, including paramedics and call handlers, are expected to strike on December 21 in a dispute over pay, according to statements from labor unions GMB, Unison and Unite.

    The strike will involve just under half of all ambulance drivers in England, Wales and Northern Ireland, although unions have said they will cover life-threatening emergencies during the walkouts. More than 10,000 ambulance workers represented by the GMB Union will strike again on December 28.

    Strikes have swept the United Kingdom this year, as workers grapple with a cost-of-living crisis and stagnating wages. Consumer prices rose by 11.1% in the year to October, a 41-year high. Once inflation is taken into account, average wages fell by the biggest drop on record earlier this year, and were still declining in the June-September period.

    According to The Times newspaper, one million UK workers are set to strike in December and January. Data from the Office for National Statistics shows Britain has already lost at least 741,000 days to strike action this year, putting it on track for its worst year of labor disputes in at least a decade.

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  • Power may be back for thousands on Wednesday night as authorities continue to go through tips on electric substation attack | CNN

    Power may be back for thousands on Wednesday night as authorities continue to go through tips on electric substation attack | CNN

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    CNN
     — 

    The tens of thousands of customers in central North Carolina who haven’t had power since two weekend attacks on utility substations should see the lights come on by late Wednesday, a spokesperson for Duke Energy said at a news conference.

    The two substations in Moore County were damaged by gunfire Saturday night in what investigators believe were “intentional” and “targeted” attacks, officials said, with Moore County Sheriff Ronnie Fields saying that whoever fired at the substations “knew exactly what they were doing.”

    Duke Energy, which has has about 47,000 customers in Moore County, has made “very good progress” since Saturday and moved up its restoration timeline by a day, saying it expects most customers to have power restored by late Wednesday.

    “That will not happen all at once,” Duke Energy spokesperson Jeff Brooks said Tuesday afternoon. “You will see waves of customers coming on. A few thousand at a time.”

    He said new equipment has been installed but it needs to be calibrated and tested so that it works in sync with the grid.

    About 35,000 customers in Moore County remained without power Tuesday afternoon, according to Brooks.

    The mayor of Southern Pines called the attack a cruel and selfish act.

    “There are so many people that are hurting,” Mayor Carol Haney said on CNN on Monday. The revenue stream has been stopped. If you have health issues, it is critical. It is just a horrible, horrible, terrorist, in my opinion, act.”

    No suspects or motives have been announced.

    At Tuesday’s news conference, Moore County Chief Deputy Richard Maness had no major updates about the investigation but said a tip line has been “very, very active” in the past 24 hours.

    Tom McInnis, the North Carolina Senate Majority Whip whose district includes Moore County, told reporters he is looking at potential legislation to modernize penalties for this kind of incident, which he said is something that has never happened in North Carolina.

    The outages have made life difficult for residents. Schools will be closed through Thursday, four days with no classes. Businesses without generators are shuttered. Residents without power must leave their homes for hot food and to charge their electronic devices.

    The owner of a Moore County pharmacy is storing medicines in his home, which is powered by a generator, so that people can continue to get their prescriptions, he said.

    Rob Barrett, the owner of Whispering Pines Prescription Shoppe, believes he has enough gas to keep the generator running, but the pharmacy faces other issues: Some employees have no gas to get to work, and there are communication issues.

    In rural areas of the county, the loss of electricity has also impacted the water supply to families.

    “Rural communities rely on electricity a lot more than people realize,” Andrew Wilkins, whose parents own a farm in Whispering Pines, told CNN. “Many big cities don’t lose their water when the power goes out, but a lot of rural areas rely on a well for water.

    “My family draws their water from a well, so when the power goes out, the well stops and the water pressure drops and we slowly lose water.”

    Southern Pines, a town of about 15,900 residents roughly a 40-mile drive northwest of Fayetteville and a 70-mile drive southwest of Raleigh, lost all power, according to the mayor. Haney said she had to get her 98-year-old mother out of the town and to Charlotte so she could be in a warm home.

    With the power out, the town’s water and sewer system is operating on generator power, according to Southern Pines Fire and Rescue.

    The town’s fire department has seen an increase in car crashes related to the lack of traffic lights, and more fires as people try to find alternate ways to heat their homes, Southern Pines Fire Chief Mike Cameron told CNN.

    The fire department also is getting more medical calls from people using supplemental oxygen or other medical devices that require power, Cameron said.

    FirstHealth Moore Regional Hospital in Pinehurst is running on a backup generator. However, the hospital is postponing certain elective procedures, and family medicine and other clinics in the country will be closed until power service is restored, hospital officials said in a news release Sunday.

    Investigators are “leaving no stone unturned to find out who did this,” North Carolina Gov. Roy Cooper told “CNN This Morning” on Tuesday. FBI and state investigators have joined the investigation.

    “This was a malicious, criminal attack on the entire community that plunged tens of thousands of people into darkness,” Cooper said.

    “Our priorities now are health and safety, getting the power back on as quickly as possible, and making sure that federal, state and local law enforcement find out who did this, and why, and bring them to justice.”

    Several communities across the county began experiencing power outages just after 7 p.m. Saturday, the Moore County Sheriff’s Office said.

    Whoever fired bullets at the substations “knew exactly what they were doing,” Moore County Sheriff Ronnie Fields said Sunday.

    Fields on Sunday noted “no group has stepped up to acknowledge or accept they’re the ones who (did) it.”

    Investigators were trying to determine whether both substations were fired at simultaneously, or one after the other, the sheriff said Monday.

    A countywide mandatory curfew from 9 p.m. until 5 a.m. has been in effect since Sunday night, with Fields saying the decision was made to protect residents and businesses.

    Residents fill gas containers Monday just outside the area impacted by the power outage.

    The governor stressed Tuesday that the state needs to learn from the incident, saying “this is unacceptable to have this many people without power for this long.”

    “This is a retirement community, so there are a lot of adult care homes that do not have power,” Cooper told CNN on Tuesday. “We’re providing generators and help to make sure people are safe here.”

    The country needs to have “a serious … conversation about protecting our critical infrastructure,” Cooper said.

    “It was clear that (whoever is behind the gunfire) knew how to cause significant damage, and that they could do it at this substation, so we have to reassess the situation,” Cooper said.

    Officials are not disclosing whether there were cameras at the two affected substations, because that is “part of the investigation that they do not want to reveal at this time,” Cooper said.

    Less than two weeks before Saturday’s substation damage, the FBI said there had been an increase in reported threats to electric infrastructure from people who espouse “racially or ethnically motivated violent extremist ideology.”

    The FBI has received reports of threats to electric infrastructure by people espousing racially or ethnically motivated extremist ideology “to create civil disorder and inspire further violence,” the FBI said in a November 22 bulletin sent to private industry, which CNN obtained.

    Though the motives for Saturday’s damage still are unclear, US officials have consistently been concerned by the interest violent extremists have shown in the country’s electric grid.

    Cooper said Tuesday he was aware of the FBI warning.

    “Matter of fact, we have worked to organize and step up our protection of our infrastructure, particularly in the area of cyber security. We know that those attacks can be massive and put down power or water or other infrastructure for a lot of people across the country, so we’ve been working on that,” Cooper said.

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  • Why the power grid is an ‘attractive target’ for attacks | CNN Politics

    Why the power grid is an ‘attractive target’ for attacks | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    The motivation behind an attack on the electrical grid in a North Carolina county remains a mystery.

    But the method – apparently coordinated attacks on multiple substations – exploits a vulnerability that has long been a source of concern for authorities warning about domestic terrorism.

    Just last week the Department of Homeland Security renewed a national bulletin to warn of attacks on critical infrastructure.

    The details of this particular story are only starting to come into view, although Moore County, North Carolina, remains plunged in darkness. The FBI has joined the hunt for answers into how attacks on substations left around 40,000 without power over the weekend.

    In a Sunday news conference, the county sheriff described the attacks as “intentional” and “targeted,” but had no reason why the person or persons involved would choose the place.

    CNN’s Whitney Wild, reporting from Moore County, mentioned online rumors that disrupting a drag show planned for Saturday night may have been the cause of the attack, but authorities have not confirmed that and said no person or group has claimed responsibility.

    What authorities have confirmed is that someone or some people removed a gate at one substation from its hinges. The damage to transformers was apparently caused by gunfire, although it’s not clear what kind of weapon was used.

    Most of the roughly 40,000 people who lost power aren’t expected to get it back until Thursday, according to Duke Energy.

    Mike Cameron is the assistant town manager and fire chief of Southern Pines, North Carolina, which is in Moore County.

    Appearing on CNN on Monday, he said medical calls have increased as people who rely on oxygen and plug-in medical devices struggle.

    In temperatures that have dipped almost to freezing overnight, people have gotten creative to heat their homes, which has led to an increase in calls about house fires.

    There has also been an increase in emergency calls about traffic accidents, “just because our traffic lights are obviously not working,” he said.

    Southern Pines Mayor Carol Haney did not hold back on her message to whoever is responsible for plunging her town into darkness.

    “It is just a horrible, horrible terrorist, in my opinion, act. Cowardly,” she told CNN’s Victor Blackwell on Monday.

    The mayor of Pinehurst, North Carolina, John Strickland, said on CNN that investigators will have to determine if this was a targeted attack by domestic extremists, but he said it was meant to be destructive.

    “This is clearly an act that was intentional, very forceful and an act of vandalism to create a situation where the citizens of Pinehurst and Moore County are lacking heat and other support services at the present time,” he said on “CNN Newsroom.”

    FirstHealth Moore Regional Hospital is currently being powered by diesel fuel, according to its president, Jonathan Davis, but elective procedures have been delayed.

    CNN’s chief law enforcement and intelligence analyst John Miller said this type of attack has long been feared.

    The American electrical grid is decentralized and controlled by a hybrid of public and private entities.

    “The challenge is most of these places are outdoors, most are in remote areas and most of them are available for attack from a long distance,” Miller said on “CNN This Morning.”

    He also noted there has been an uptick in chatter among various anti-government and ecoterrorist groups who consider attacks on the electrical infrastructure as a way to create chaos in the US.

    In particular, Miller said right wing neo-Nazi groups have suggested creating a chain reaction of attacks to systematically take down the power grid.

    “Their theory is that if you identify the key nodes and you knock out one and they divert power to the next one, and you knock out the next one and the next one, a domino effect can actually start to topple the national grid and plunge the nation into darkness and chaos,” Miller said.

    It’s obviously not clear if this North Carolina attack is anything along those lines, but the Department of Homeland Security has been warning about such attacks for some time.

    Sniper fire hit a Silicon Valley substation in April 2013, when 150 rounds from an assault rifle took out 17 transformers. Workers rerouted power in that case, but repairs to the transformers took nearly a month.

    Miller said that after that incident, power companies and the government undertook a systemic review of grid security and made changes to add more cameras and motion sensors.

    In January 2022, CNN’s Geneva Sands reported on a DHS memo about potential electrical grid threats from extremist groups angry at the outcome of the 2020 presidential election.

    Violent extremist groups have identified the electrical grid as a “particularly attractive target,” according to the intelligence bulletin, and have drawn up specific plans.

    In October 2020, the memo noted, White supremacists in Idaho were charged with conspiracy for trying to damage transformers in that area.

    Also, in May 2020 the government charged followers of the Boogaloo movement, which believes there is a civil war coming, for allegedly conspiring to attack a substation in Las Vegas. Their larger goal was to incite riots and violence.

    Unsophisticated small-scale attacks are unlikely to cause the kind of large-scale meltdown that anti-government plotters envision, but they are likely to cause substantial harm and expensive damage – which is precisely what’s happening in Moore County.

    Juliette Kayyem, a CNN analyst and the former assistant secretary for intergovernmental affairs at DHS, said on CNN’s “The Lead” that investigators are probably looking at three possible scenarios:

    Foreign attack. She said this seems unlikely, since Moore County is a rural area and not the expected target for a foreign actor.

    Hate crime or domestic terrorism. She noted the lights went out at the drag show, which was organized by a LGBTQ group, just as it began.

    Insider threat. Kayyem noted the knowledge it would take to disable the substations could be a clue.

    “You don’t just drive by these places and know where to shoot,” she said. “(Investigators) will be looking at the potential there was either casing or someone who knew the area, the facilities and knew where to shoot. These aren’t drive-by incidents,” she said.

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  • FBI joins investigation into North Carolina power outage caused by ‘intentional’ attacks on substations as officials work to determine a motive and suspect | CNN

    FBI joins investigation into North Carolina power outage caused by ‘intentional’ attacks on substations as officials work to determine a motive and suspect | CNN

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    CNN
     — 

    With no suspects or motive announced, the FBI is joining the investigation into power outages in a North Carolina county believed to have been caused by “intentional” and “targeted” attacks on substations that left around 40,000 customers in the dark Saturday night, prompting a curfew and emergency declaration.

    The mass outage in Moore County turned into a criminal investigation when responding utility crews found signs of potential vandalism of equipment at different sites – including two substations that had been damaged by gunfire, according to the Moore County Sheriff’s Office.

    “The person, or persons, who did this knew exactly what they were doing,” Moore County Sheriff Ronnie Fields said during a Sunday news conference. “We don’t have a clue why Moore County.”

    Fields said multiple rounds were fired at the two substations. “It was targeted, it wasn’t random,” he said.

    The sheriff would not say whether the criminal activity was domestic terrorism but noted “no group has stepped up to acknowledge or accept they’re the ones who [did] it.”

    Authorities announced a mandatory curfew from 9 p.m. until 5 a.m., starting Sunday night, with Fields saying the decision was made to protect residents and businesses.

    In addition to the FBI, the North Carolina State Bureau of Investigation has joined the investigation, officials said.

    More than 33,000 customers were still in the dark across the county Sunday evening, the Duke Energy outage map showed. For some, the outage may stretch into Thursday, officials said, upending life for tens of thousands.

    All schools in the county will be closed Monday and authorities have opened a shelter running on a generator.

    Traffic lights are also out, and while a few stores with generators were able to open their doors, several businesses and churches in Moore County were closed Sunday, CNN affiliate WRAL reported.

    “We were just getting over Covid. And now this,” the sheriff said, adding, “It’s gonna hurt all of our restaurants and businesses.”

    Inside people’s homes, it’s become difficult to keep the cold out.

    “We have a six-month-old baby in the house. We’re out of heat. We are trying to get heat for her,” Carthage resident Chris Thompson told WRAL.

    Chilly temperatures, with lows in the 30s, were expected in the area overnight Sunday with highs in the 50s and a chance of rain expected Monday, according to the National Weather Service. Moore County is in central North Carolina, about 50 miles northwest of Fayetteville.

    Mapbox

    The estimated cost of the substation damage is in the millions, the sheriff said Sunday.

    The damage has been significant and rerouting power isn’t an option, said Jeff Brooks, principal communications manager for Duke Energy.

    Damage to the gate to the Duke Energy West End substation is seen Sunday in Moore County.

    “Equipment will have to be replaced,” Brooks said. “We’re pursuing multiple paths of restoration so that we can restore as many customers as quickly as possible. Recognizing that, we are looking at pretty sophisticated repair with some fairly large equipment.”

    In addition to the gunfire damage at the substations, a gate at one of the locations appears to have been taken off its hinges, Asst. Chief Mike Cameron of the Southern Pines Fire and Rescue Department told CNN.

    While it’s unclear what motivated the alleged vandalism, the sheriff on Sunday addressed rumors circulating on social media that the attack was an attempt to thwart a local drag show.

    Fields said investigators “have not been able to tie anything back to the drag show,” which was scheduled in the town of Southern Pines at 7 p.m. Saturday, around the time the power went out.

    Duke Energy workers gather Sunday as they plan how to repair an electrical substation in Carthage, North Carolina.

    The county declared a state of emergency to protect residents and property and maintain public services, authorities said. The countywide curfew is expected to stay in effect nightly while the emergency declaration is in effect.

    “It is going to be very, very dark and it’s going to be chilly tonight, and we don’t need to have anyone out on the streets and that is the reason for our curfew,” North Carolina state Senator Tom McInnis said during the news conference. “Please stay home tonight … the roads are dangerous.”

    The emergency order also encourages residents to conserve fuel.

    With streets in the dark, the area has seen increased emergency calls and vehicle accidents are being reported because traffic lights are out, Cameron told CNN.

    People who rely on oxygen have also placed emergency calls, he added.

    A shelter was opened at the Moore County Sports Complex, and trailers with bathroom and shower facilities are being brought in, Moore County Manager Wayne Vest said.

    As for schools, it’s unclear how long campuses will stay closed. Moore County Superintendent Tim Locklair said decisions regarding school openings for the remainder of the week will be made on a day-by-day basis.

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  • NC county announces curfew as nearly 40,000 customers remain without power after 2 substations damaged by gunfire | CNN

    NC county announces curfew as nearly 40,000 customers remain without power after 2 substations damaged by gunfire | CNN

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    CNN
     — 

    Authorities have announced a mandatory curfew in a North Carolina county where around 40,000 customers lost power after two power substations were damaged by gunfire Saturday night.

    At a news conference Sunday, Moore County Sheriff Ronnie Fields said the county will implement a mandatory curfew from 9 p.m. until 5 a.m., starting Sunday night.

    Municipality and county officials “have formed a plan for the night and the next few nights that we may be out of power. It’s a very serious situation,” Fields said. “So we’ve come to an agreement to best protect our citizens and to protect the businesses of our county, we’re going to implement a curfew tonight.”

    The power outage in Moore County is being investigated as a “criminal occurrence” after crews found signs of potential vandalism at several locations, CNN previously reported.

    A gate at one of the locations also appears to have been taken off its hinges, Mike Cameron of the Southern Pines Fire and Rescue Department told CNN on Sunday afternoon.

    Cameron said the area is experiencing increased emergency calls due to the lack of power, adding that auto accidents have occurred because traffic lights are out. People who rely on oxygen have placed emergency calls, he said.

    Initially, local officials estimated power would be restored Sunday evening, but Cameron said after assessing the damage, they’ve determined it could take at least until Monday.

    The equipment that was damaged is not easily replaceable and will have to be brought in to make the repairs, Cameron said.

    A local supermarket is distributing ice to impacted residents, according to a news release from grocery chain Harris Teeter.

    The power outage has also led officials to cancel Monday classes for all schools in the county. “An announcement will be made tomorrow evening to inform parents and staff of the status of schools for Tuesday,” Moore County Schools said in a tweet Sunday afternoon.

    Mapbox

    Several communities across the county began experiencing power outages just after 7 p.m. Saturday, the Moore County Sheriff’s Office said in a Facebook post.

    “As utility companies began responding to the different substations, evidence was discovered that indicated that intentional vandalism had occurred at multiple sites,” the office said.

    At least two substations were vandalized “with criminal intent,” US Rep. Richard Hudson said Sunday morning in a release.

    The North Carolina State Bureau of Investigation and the FBI are responding, according to Hudson. He said the motive remains unknown.

    Hudson, whose congressional district includes Moore County, said the Southern Pines Police Department has opened a community center for residents to charge devices.

    CNN has reached out to Southern Pines police and the FBI.

    More than 38,000 customers were without power across the county Sunday morning, according to the Duke Energy outage map. According to poweroutage.us, about 41,000 customers had lost power in Moore County and neighboring Hoke County.

    Crews were experiencing “multiple equipment failures” that are affecting substations in Moore County, Duke Energy spokesman Jeff Brooks told CNN affiliate WRAL.

    “We are also investigating signs of potential vandalism related to the outages,” Brooks said.

    Deputies and officers from other law enforcement agencies responded to the different sites to provide security, according to the sheriff’s office.

    Gov. Roy Cooper on Sunday tweeted that state law enforcement would join the investigation.

    “I have spoken with Duke Energy and state law enforcement officials about the power outages in Moore County. They are investigating and working to return electricity to those impacted,” Cooper said. “The state is providing support as needed.”

    Moore County is in central North Carolina, about 50 miles northwest of Fayetteville.

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  • Astronauts will give the space station a power boost during Saturday spacewalk | CNN

    Astronauts will give the space station a power boost during Saturday spacewalk | CNN

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    Sign up for CNN’s Wonder Theory science newsletter. Explore the universe with news on fascinating discoveries, scientific advancements and more.



    CNN
     — 

    The International Space Station will receive a power boost during a spacewalk on Saturday, as NASA astronauts Josh Cassada and Frank Rubio install a solar array outside the floating laboratory.

    The spacewalk is on track to begin at 7:25 a.m. ET and will last for about seven hours, with live coverage streaming on NASA’s website.

    During the event, Cassada will serve as extravehicular crew member 1 and will wear a suit with red stripes, while Rubio will wear an unmarked white suit as extravehicular crew member 2. The duo conducted their first spacewalk together in November. Against the backdrop of spectacular views of Earth, the team assembled a mounting bracket on the starboard side of the space station’s truss.

    This hardware allows for the installation of more rollout solar arrays, called iROSAs, to increase electrical power on the space station.

    The first two rollout solar arrays were installed outside the station in June 2021. The plan is to add a total of six iROSAs, which will likely boost the space station’s power generation by more than 30% once all are operational.

    Two more arrays were delivered to the space station on November 27 aboard the 26th SpaceX Dragon commercial resupply mission, which also carried dwarf tomato seeds and other experiments to the orbiting laboratory.

    The arrays were rolled up like carpet and are 750 pounds (340 kilograms) and 10 feet (3 meters) wide.

    During Saturday’s spacewalk, Cassada and Rubio will install a solar array to increase capacity in one of the space station’s eight power channels, located on the station’s starboard truss.

    Once the array is unfurled and bolted into place by the astronauts, it will be about 63 feet (19 meters) long and 20 feet (6 meters) wide.

    The spacewalking duo will also disconnect a cable to reactivate another power channel that recently experienced “unexpected tripping” on November 26.

    “By isolating a section of the impacted array, which was one of several damaged strings, the goal is to restore 75% of the array’s functionality,” according to a release from NASA.

    Cassada and Rubio will go on another spacewalk on December 19 to install a second roll-out solar array on another power channel, located on the station’s port truss.

    The original solar arrays on the space station are still functioning, but they have been supplying power there for more than 20 years and are showing some signs of wear after long-term exposure to the space environment. The arrays were originally designed to last 15 years.

    Erosion can be caused by thruster plumes, which come from both the station’s thrusters and the crew and cargo vehicles that come and go from the station, as well as micrometeorite debris.

    The new solar arrays are being placed in front of the original ones. It’s a good test for the new solar arrays, because this same design will power parts of the planned Gateway lunar outpost, which will help humans return to the moon through NASA’s Artemis program.

    The new arrays will have a similar 15-year life expectancy. However, since the degradation on the original arrays was expected to be worse, the team will monitor the new arrays to test their true longevity, because they may last longer.

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  • Justin Bieber launches clean water company Generosity at Qatar’s World Cup | CNN

    Justin Bieber launches clean water company Generosity at Qatar’s World Cup | CNN

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    CNN
     — 

    Justin Bieber is on a mission to make the world’s drinking water more sustainable.

    Bieber and Micah Cravalho have evolved bottled water brand Generosity into a water technology company that is providing premium alkaline water in refillable fountains across the globe. They showcased 150 water fountains this month at the FIFA World Cup in Qatar. Bieber spoke about the brand’s social impact initiative in a statement to CNN.

    “I want the world to have access to the best water. I also want countries to know how to best protect their people. The overuse of plastic is hurting us, we need to be more sustainable,” Bieber said.

    Generosity is aimed at not just providing premium water but reducing the usage of single-serve plastic.

    “We aspire to be the global leader in water technology, empowering consumers with refillable products as an alternative to single-use packaging,” said co-founder Cravalho.

    Bieber and Cravalho recently visited Qatar and met with Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani, the sister of country’s emir.

    Having participated in beach clean-up efforts in Qatar for many years, I have witnessed first-hand the effect of pollution on our natural environment. Through initiatives such as those undertaken by Generosity and the Supreme Committee, and projects such as the FIFA World Cup Qatar 2022 Art water bottles, which bring together the global artistic community to advocate for a more sustainable future, we are all encouraged to play our part during the World Cup and beyond,” Al Mayassa said in a press release.

    Generosity connects to any water source and is able to create premium refillable alkaline water dispensed through their sustainable fountains which the company says will be found commercially at major venues, festivals and in homes in 2023.

    The Grammy Award winner has been at the forefront of social impact initiatives in Hollywood with his involvement in organizations like Pencils of Promise, which builds schools in third world countries. He also raised over $3 million dollars for the First Responders Children’s Foundation with Ariana Grande in 2020 with their “Stuck with U” collaboration.

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  • AI chip boom sends Nvidia’s stock surging after whopper of a quarter | CNN Business

    AI chip boom sends Nvidia’s stock surging after whopper of a quarter | CNN Business

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    CNN
     — 

    The AI boom is here, and Nvidia is reaping all the benefits.

    Shares of Nvidia

    (NVDA)
    exploded 28% higher Thursday after reporting earnings and sales that surged well above Wall Street’s already lofty expectations. That was enough to make investors temporarily forget about America’s dangerous debt ceiling standoff, sending the broader stock market higher — even after credit rating agency Fitch warned late Wednesday that America could soon lose its sterling AAA debt rating.

    Nvidia makes chips that power generative AI, a type of artificial intelligence that can create new content, such as text and images, in response to user prompts. That’s the kind of AI underlying ChatGPT, Google’s Bard, Dall-E and many of the other new AI technologies.

    “The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, Nvidia’s CEO, in a statement. “A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”

    Huang said Nvidia is increasing supply of its entire suite of data center products to meet “surging demand” for them.

    Last quarter, Nvidia’s profit surged 26% to $2 billion, and sales rose 19% to $7.2 billion, each easily surpassing Wall Street analysts’ forecasts. Nvidia’s outlook for the current quarter was also significantly — about 50% — higher than analysts’ predictions.

    Nvidia’s stock is up nearly 110% this year.

    “There is not one better indicator around underlying AI demand going on … than the foundational Nvidia story,” said Dan Ives, analyst at Wedbush. “We view Nvidia at the core hearts and lungs of the AI revolution.”

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  • Why there won’t be a backlash against the Supreme Court this time | CNN Politics

    Why there won’t be a backlash against the Supreme Court this time | CNN Politics

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    CNN
     — 

    The Supreme Court handed down several key rulings this past week that dismayed liberals. Chief among them was the court’s decision to disallow colleges and universities from using race or ethnicity as a specific factor in admissions. The court also found that President Joe Biden’s student debt forgiveness plan was unconstitutional and that a Colorado web designer could refuse to create websites that celebrate same-sex weddings over religious objections.

    Unlike last year, when the Supreme Court greatly upset liberals by overturning Roe v. Wade, this year’s big rulings by the justices are unlikely to spark a major backlash from the public at large.

    This is well reflected in the public polling. Roe v. Wade, the 1973 decision that legalized abortion nationwide, had become massively popular.

    Right before the decision to overturn Roe leaked in May 2022, a Fox News poll found that 63% of registered voters were opposed to such a move while 27% supported it. An ABC News/Washington Post poll put the split at 54% wanting the court to uphold Roe and 28% wanting the decision overturned.

    This majority of Americans who wanted abortion to be legal nationally have maintained their stance since the Supreme Court officially struck down Roe in June 2022. Since that time, abortion supporters have won every related measure placed on the ballot across the country – from deep-blue states like California to ruby-red ones like Kentucky.

    California is an important state to note because voters there faced a 2020 ballot measure to consider the use of race, sex or ethnicity in government institutions (such as education). A clear majority, 57%, voted against allowing state and local entities to consider such factors in public education, employment and contracting decisions.

    When a state that voted for Biden by nearly 30 points is against affirmative action, it shouldn’t be surprising that the nation as a whole is.

    A Pew Research Center poll released last month found that 50% of Americans disapproved of certain colleges and universities taking race and ethnicity into account in admissions decisions to increase diversity. Only 33% approved of the practice.

    This Pew poll is no outlier. An ABC News/Ipsos poll conducted after the court decided its case showed that 52% of Americans approved of the decision, while 32% were opposed.

    Some polling before the ruling had shown even more opposition: 70% of Americans in a recent CBS News/YouGov survey indicated that the Supreme Court should not allow colleges to consider race and ethnicity in admissions.

    But perhaps what’s most interesting isn’t how many people are for or against considering race in college admissions. Rather, it’s how many people simply didn’t care enough to pay close attention to the affirmative action case before the Supreme Court.

    When explicitly given the option, a majority (55%) said in a May Marquette University Law School poll that they hadn’t heard enough to form an opinion about the case. (Those who had heard enough were against allowing colleges to use race in admissions.)

    This is quite different from March 2022, when just 30% of Americans hadn’t heard enough to form an opinion about the court potentially overturning Roe v. Wade, when asked the same question by Marquette but about the abortion case. (A plurality of those who had heard enough didn’t want the court to overturn Roe.)

    It’s hard for an issue to galvanize voters when they aren’t paying attention to it.

    The same holds true for Biden’s student loan forgiveness plan that the court blocked. A USA Today/Ipsos poll from April indicated that 52% of Americans were familiar with the case and a mere 16% were very familiar with it. (Those who had student loans were more familiar at 71%, though that’s a fairly low percentage for something that could affect them directly.)

    Possibly because of that low familiarity, the percentage of Americans who favor or oppose canceling certain student debt differs greatly depending on how the question is worded. When Marquette didn’t mention Biden or the government specifically in its May poll, a majority (63%) said they favored forgiveness of up to $20,000. It was a much lower 47% in the Ipsos poll.

    Surveys that did identify the proposal as Biden’s plan tend to be in the same ballpark, with a split public and a sizable percentage unsure.

    The ABC News/Ipsos poll showed that 45% approved of the court striking down Biden’s student debt plan, with 40% disapproving. About a sixth (16%) of the public was undecided.

    This jibes with polling before the court’s decision was announced. An NBC News poll from last year showed that 43% said Biden’s plan was a good idea compared with 44%, who said it was a bad idea. Just over 10% had no opinion.

    The USA Today/Ipsos survey found that 43% of Americans wanted the Supreme Court to allow the government’s student loan forgiveness plan to move forward, while 40% did not. Another 17% had no opinion.

    (I should point out that those with student debt were more likely to want government forgiveness in all these surveys, though about 80% of Americans don’t have student loan debt.)

    The public was similarly split about the court ruling in favor of the Colorado web designer who refuses to make wedding websites for same-sex couples over religious objections. According to the ABC News/Ipsos poll, 43% of Americans agreed with the court’s decision, 42% disagreed and 14% were undecided.

    There was limited polling on this case before the ruling, though none of it indicated massive opposition. A majority (60%) in a Pew poll that specifically mentioned “wedding websites” and “same-sex marriages” indicated they believed business owners should be allowed to refuse services if it violated their religious or personal beliefs.

    The polling on Roe v. Wade didn’t look anything like this last year. There were no close splits in opinion. People were consistently against overturning Roe, and they cared a lot about it. This led to a historically strong performance for the party in the White House during the 2022 midterm elections and a major backlash against the Supreme Court.

    The current polling on affirmative action in college admissions, Biden’s student loan forgiveness plan and allowing people to opt out of certain services to married LGBTQ couples if they believe it goes against their religion suggests that court’s opinions on those issues aren’t likely to have a similar impact.

    This story has been updated with additional information.

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  • These are the big ideas Republicans are pushing for 2024 | CNN Politics

    These are the big ideas Republicans are pushing for 2024 | CNN Politics

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    A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    Amend the Constitution! Touch the third rail! Think big and make things better!

    This is the big ideas period of American politics – a time that occurs roughly every four years in the lead-up to a presidential election – when candidates push expansive proposals, usually short on specifics.

    While the big ideas generally have little chance of becoming law, they speak to what the people who want to be president think will move primary voters.

    With President Joe Biden currently a lock for the Democratic nomination, most of the intellectual action this year is among Republicans.

    Below are some of the big ideas of the moment, which are usually unique to one or two candidates as opposed to positions that are standard for the party. I view these as distinct from the daily political issues – things like abortion rights, foreign policy, border security and gender rights, where there is a sliding scale of positions.

    Nikki Haley: Biden ‘likely’ won’t make it to end of second term

    Former South Carolina Gov. Nikki Haley, who is 51, wants to impose a “mental competency” test for older candidates over 75.

    With both of the current leading candidates – Biden and former President Donald Trump – well beyond when most people would consider retirement, age is already a major issue this year.

    It’s a smart way to tap into fears that Biden, in particular, has lost a step. But it’s hard to imagine it actually put into use. Who would administer this test? Who would assess the results? Why not all candidates?

    The point of the democratic system is that voters should get to choose. This proposal would necessarily limit their choices.

    On the other hand, age limits are not an entirely crazy idea. Corporations impose them on executives, for instance. Pilots have a mandatory retirement age of 65, although that could be raised in the near future to deal with a pilot shortage.

    Republican presidential candidate Vivek Ramaswamy speaks during the annual Conservative Political Action Conference in National Harbor, Maryland.

    Vivek Ramaswamy, a biotech founder, wants to raise the legal voting age to 25. It’s hard to imagine how this would work since the current voting age of 18 is guaranteed in the 26th Amendment.

    Democrats like former House Speaker Nancy Pelosi have in recent years pushed to go in the opposite direction, arguing to lower the voting age to 16.

    Ramaswamy says there would be exceptions to raising the voting age, such as for people who join the military or otherwise meet a “national service requirement.” Others could pass the same test given to naturalized immigrants.

    “I want more civic engagement. My hypothesis is that when you attach greater value to the act, we will see more 18-to-25-year-olds actually vote than do now,” Ramaswamy told The Washington Post.

    01 nikki haley town hall cnn 030823

    Nikki Haley calls for raising retirement age

    Nikki Haley and former Vice President Mike Pence are among those pushing to change the age at which Americans can access retirement benefits.

    While both Trump and Florida Gov. Ron DeSantis are swearing up and down that they will protect these key parts of the social safety net, Haley and Pence are calling for a more honest discussion about the nation’s finances.

    In their telling, raising the retirement age would only affect the youngest Americans – people in their 20s and younger, generations sure to live and work longer than their forebears.

    But specifics are hard to come by, as CNN’s Jake Tapper found when he asked Haley at a CNN town hall in early June what retirement age she is proposing. She said more calculations are needed to come up with a specific retirement age for people currently in their 20s.

    Meantime, she said, “we’re going to go tell them ‘Times have changed.’ I think (Trump and DeSantis are) not being honest with the American people.”

    DeSantis did recently acknowledge in New Hampshire that Social Security is “going to look a little bit different” for younger generations.

    Pence, at his own CNN town hall in early June, said raising the eligibility age for Social Security is one option to have the tough conversation about national spending, but not the only one.

    “It also could include letting younger Americans invest a portion of their payroll taxes in a mutual fund, like the TSP (Thrift Savings Plan) program that 10 million federal employees are in today,” he said.

    trump missouri rally

    Trump slams 14th Amendment at rally

    Both former President Donald Trump and Florida Gov. Ron DeSantis want to revoke birthright citizenship, or the right of every person born in the US to be an American citizen.

    They complain that even babies born to undocumented people become citizens. Birthright citizenship is guaranteed in the 14th Amendment, the key post-Civil War amendment that was meant to protect former slaves.

    Trump has been teasing an end to birthright citizenship for years, but there is not currently a meaningful effort to change the Constitution.

    Trump has pledged to sign an executive order. DeSantis has said he would lean on Congress and the court system. Actually changing the Constitution would be nearly impossible in today’s political environment.

    Former President Donald Trump’s most outside-the-box ideas have a futuristic “Jetsons” feel.

    He wants to build new “freedom cities” on federal land to reopen the American frontier and give people a chance at home ownership. He argues the plan could revitalize American manufacturing.

    And he envisions freeing Americans from hellish commutes by looking to the skies, taking the initiative to innovate vertical-takeoff vehicles. CNN’s report on Trump’s proposals notes that technology is already underway by industry, but a long way from being available to consumers.

    A government-planned city might seem like a strange proposal for a candidate whose party has long embraced free market ideals. But the idea of a planned city is not completely foreign – just look at Washington, DC.

    Republican presidential candidate Florida Gov. Ron DeSantis speaks during a town hall event in Hollis, New Hampshire on June 27, 2023.

    Florida Gov. Ron DeSantis wants to undo Trump’s greatest bipartisan achievement: The First Step Act, a criminal justice and sentencing reform law.

    The product of intense bipartisan negotiations during Trump’s term in office, the law was hailed for rethinking harsh prison sentences for nonviolent drug offenders.

    But the political landscape has changed since 2018, when Trump signed the law as president and DeSantis voted for it as a congressman. Now, DeSantis calls the law the “jailbreak bill.”

    Both men want to impose the death penalty for drug offenders, an especially awkward pivot for Trump, who has bragged about his compassion in setting drug dealers like Alice Johnson free when he commuted her sentence. The case helped build support for the First Step Act. Her crime could have made her eligible for the death penalty under his new plan.

    Trump still brags about the First Step Act, and repealing it would take help from Democrats in the Senate.

    DeSantis, meanwhile, is moving to the right of Trump on crime and even vetoed a bipartisan criminal justice law in Florida that passed easily through the Republican-dominated legislature.

    Pence also said in his CNN town hall he would “take a step back” from the First Step Act – though it is unclear what that means in practical terms.

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  • Fixing Social Security involves hard choices | CNN Politics

    Fixing Social Security involves hard choices | CNN Politics

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    CNN
     — 

    There’s a reason why politicians have long shied away from addressing Social Security’s massive financial problems. The commonly proposed solutions involve cutting benefits or raising taxes, which would spark an outcry from a range of powerful constituents, including senior citizens and the business community.

    The situation, however, is only growing more critical. The combined Social Security trust funds are projected to run dry in 2034, according to the latest annual report from the entitlement program’s trustees that was released last week. At that time, the funds’ reserves will be depleted, and the program’s continuing income will only cover 80% of benefits owed.

    The estimate is one year earlier than the trustees projected last year.

    About 66 million Americans received Social Security benefits in 2022. It’s a vital lifeline for many of them. Some 42% of elderly women and 37% of elderly men rely on the monthly payments for at least half their income, according to the Social Security Administration.

    Though congressional Republicans’ drive to cut spending amid debt ceiling negotiations this year has prompted renewed interest in the entitlement’s finances, little is likely to happen, experts say. The insolvency date is still too far in the future.

    The last time Congress enacted a major overhaul, in 1983, Social Security was only months away from being able to pay full benefits. At that time, Democratic lawmakers who controlled the House agreed with Senate Republicans and then-GOP President Ronald Reagan to increase payroll taxes and gradually raise the full retirement age from 65 to 67, among other reforms.

    While President Joe Biden has promised to strengthen Social Security and defend it from any cuts by Republicans, he has yet to lay out a concrete vision for protecting the program. It was not included in his annual budget proposal this year, though he did suggest a financial fix for Medicare, which is facing its own solvency issues.

    Asked about the president’s plan, the White House said that the budget “clearly states his principles for strengthening Social Security.”

    “He looks forward to working with Congress to responsibly strengthen Social Security by ensuring that high-income individuals pay their fair share, without increasing taxes on anyone making less than $400,000,” said Robyn Patterson, assistant press secretary at the White House.

    A multitude of proposals have been floated over the years to address Social Security’s shortfall, many of which have multiple measures.

    Several options focus on saving the entitlement program money, though left-leaning advocates and senior citizen groups are quick to point out that these moves are actually benefit cuts that they would strenuously oppose.

    One common proposal is raising the retirement age. Currently, Americans can start collecting Social Security benefits at 62, though doing so would reduce their lifetime payments by as much as 30%.

    The full retirement age, which had been 65 for much of the program’s existence, is slowly rising to 67 for Americans born in 1960 or later.

    Some policymakers advocate for raising the full retirement age to 70 for future retirees, bringing it more in line with changes in life expectancy. That would mean those retiring earlier than that would get smaller monthly checks than under current law.

    Doing so could wipe out about a third of the Social Security trust fund’s 75-year deficit.

    Last year, the conservative Republican Study Committee released a budget plan that called for raising the full retirement age for future retirees at a rate of three months per year until it is increased to 70 for those born in 1978. It would then link the retirement age to future increases in life expectancy, as well as adjust the number of working years included in benefit calculations to 40 years, up from 35 years.

    Other options include reducing benefits for higher-income Americans, which was also included in the Republican Study Committee’s budget plan.

    New retirees’ Social Security benefits are one-third higher today than they were for folks who retired 20 years ago, even after accounting for inflation, according to Andrew Biggs, senior fellow at the right-leaning American Enterprise Institute. Plus, the maximum Social Security benefit in the US is two to three times higher than the maximum retirement benefit in Canada, the United Kingdom, Australia and New Zealand.

    Biggs supports placing a cap on the maximum benefit that the highest-earning retirees can receive. The maximum benefit this year is about $43,000 and will rise to $59,000 by 2050, he said. Though such a cap would only solve about 10% to 15% of the long-term solvency gap, Biggs argues it’s one step, and it only affects those who he says don’t depend on the benefits.

    “We’re going way, way beyond a pure safety net program,” Biggs said at a recent webinar hosted by the Committee for a Responsible Federal Budget, a government watchdog group. “Here we’re looking at a retirement program for middle income and upper income people.”

    Other suggestions that have been floated include changing the formulas that determine the benefits Americans get upon retirement or the annual cost-of-living adjustment retirees receive to slow the growth of payments.

    The main way to bring more money into the Social Security system is to increase the amount of payroll taxes collected.

    A proposal popular among Democrats and left-leaning experts is to lift the wage cap so that higher-income earners have to shell out more in payroll taxes.

    The Social Security tax rate of 6.2% is levied on both employers and employees, for a total rate of 12.4%. However, in 2023, it’s only applied to annual wages of up to $160,200. (By contrast, Medicare’s 2.9% total payroll tax rate is applied to all wages, and higher-income Americans are subject to an additional 0.9% Medicare tax.)

    When payroll taxes for Social Security were first collected in 1937, about 92% of earnings from jobs covered by the program were subject to the payroll tax, according to the Congressional Budget Office. By 2020, that figure had fallen to about 83% as income inequality has increased.

    Several congressional Democrats have floated proposals to raise the amount of wages subject to the payroll tax. Rep. John Larson of Connecticut wants to apply the payroll tax to wages above $400,000, which he says would extend the program’s solvency by nine years.

    Vermont Sen. Bernie Sanders, an independent, and Massachusetts Sen. Elizabeth Warren, a Democrat, introduced a bill earlier this year that would make multiple changes to Social Security, including subjecting all income above $250,000 to the payroll tax and applying it to investment and business income. They say their reforms would extend the entitlement’s solvency for 75 years.

    But changing the wage cap could also alter the fundamental design of Social Security, in which retirees’ benefits are tied to the amount of taxes they paid into the system while working.

    For instance, the proposal from Sanders and Warren would not credit the additional taxed earnings toward benefits. That would increase the beneficial impact on solvency but would also raise resistance among some advocates who believe the link between taxes and benefits should be maintained.

    Another option is raising the payroll tax rate. Increasing it to a total of 16% would just about assure 75 years of solvency, said Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget.

    Most lawmakers, however, would not find that type of tax hike very palatable, particularly not Republicans who control the House.

    While experts disagree on the best way to address Social Security’s shortfall, one thing they are generally united on is that waiting will only result in having to employ harsher solutions. But that isn’t spurring elected officials to action.

    “Nobody’s acting as if that’s something they’ve got to take seriously,” Biggs said. “So I’ll just be honest and say I’m worried about how this thing plays out.”

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  • Manchin rails against Biden’s clean energy plans as he faces tough political headwinds in West Virginia | CNN Politics

    Manchin rails against Biden’s clean energy plans as he faces tough political headwinds in West Virginia | CNN Politics

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    CNN
     — 

    West Virginia political observers were not surprised when Sen. Joe Manchin appeared on Fox News on Monday to make a stunning threat: He could be persuaded to vote to repeal his own bill, the Inflation Reduction Act, if the Biden administration pushed him far enough.

    The conservative Democratic senator reiterated this to CNN, saying he would “look for every opportunity to repeal my own bill” if the administration continued to use the IRA to steer the US quickly towards the clean energy transition and away from fossil fuels.

    The IRA, passed and signed into law last year, was a sweeping $750 billion bill that lowered prescription drug costs, raised taxes on large corporations, and invested $370 billion into new tax credits for cleaner energy. Even though Manchin carved out space for fossil fuels, the bill represents by far the biggest climate investment in US history.

    From the start, Manchin has insisted the IRA was an “energy security bill,” rather than a clean-energy bill. Still, experts said he must be sensitive to the idea that he ushered in what ended up being the nation’s largest climate law, given he represents West Virginia – a state where coal and natural gas reign supreme.

    Manchin’s repeal threat “was probably good politics,” West Virginia University political science professor Sam Workman told CNN. If he decides to seek reelection in 2024, the 75-year-old senator will face his toughest political fight yet, as popular West Virginia Republican Gov. Jim Justice jumped into the race this week.

    Justice’s bid for the seat “doesn’t change anything at all,” Manchin told CNN. But political experts from his home state see a man who is gearing up for a fight.

    Since delivering President Joe Biden one of his biggest legislative wins with the IRA last summer, Manchin has spent the last few months on a rampage against the administration, homing in on what he calls its “radical climate agenda.” Manchin has voted against Biden’s nominees for high-ranking administration positions, bashed new rules from the Environmental Protection Agency and Treasury Department and clashed with members of the president’s cabinet at Senate hearings.

    Manchin’s appearance on Fox to slam Biden and threaten to repeal the law he had an outsized role in writing “is a pretty good indicator to me that he’s running,” said John Kilwein, chair of West Virginia University’s political science department.

    Manchin has been silent on whether he’ll run for reelection, but as Justice announced his candidacy, Manchin expressed confidence. “Make no mistake, I will win any race I enter,” he said in a statement.

    The Democrat beat his Republican challenger by just three percentage points in 2018. And though Justice still must get through a primary against Republican Rep. Alex Mooney, the governor is already backed by Senate Republicans’ electoral arm and many in the state think he will present a serious challenge to Manchin.

    “Justice is a likable candidate – he takes that ‘aw shucks’ thing to the next level,” Kilwein said. “This is going to be [Manchin’s] toughest fight, but I think anyone who thinks this is going to be a piece of cake is wrong. I don’t think he’s going to be easy to beat.”

    Manchin is “in danger” politically, his Democratic colleague Sen. Richard Blumenthal of Connecticut told CNN.

    “Joe Manchin is the last remaining statewide elected Democrat [in West Virginia], and we want [him] back in the United States Senate,” Blumenthal said, adding Manchin was a “pillar of strength to Democrats in the last session.”

    Justice made little mention of Manchin during his official campaign launch but came out swinging against Biden and his agenda. On Friday, Justice told Fox News that Manchin “would be a formidable opponent” if he runs for reelection, but added that he’s “done some things that have really alienated an awful lot of West Virginians.”

    There is no denying that West Virginia is incredibly conservative; the state went nearly 40 percentage points for Trump in the 2020 election. But even with those fundamentals, political experts said Manchin has had tremendous staying power through retail politics and argue he can deliver for the state while standing up to Biden.

    “His whole appeal is a retail appeal; every blueberry festival, huckleberry festival, Joe Manchin’s there,” former West Virginia political science professor Patrick Hickey told CNN. “He’s a really smart and talented politician. He gets all the benefits that come from supporting (the IRA), but the next time he’s in West Virginia, he’ll be in a diner telling voters how terrible Biden is.”

    Behind the political rhetoric, the Inflation Reduction Act’s energy provisions could be a windfall for West Virginia, and Manchin is walking a tightrope in his messaging around the law.

    Despite blasting the Biden administration, Manchin has spent the past few months at home touting the benefits of the IRA and jobs it is already bringing to the state.

    Several major clean energy companies have invested hundreds of millions of dollars to build new manufacturing plants in the state: a battery factory, a new industrial facility totally powered by renewable energy, and a plant to make electric school buses.

    “The way Manchin talked about those, he’s crediting the IRA and saying, ‘see, these are the good things that have happened,’” said Angie Rosser, executive director of environmental group West Virginia Rivers. “Those are hundreds of jobs reaching into the thousands, which for our small state is a big, big deal.”

    The John E. Amos coal-fired power plant in Poca, West Virginia. Fossil fuel energy is still a mainstay in state.

    Rosser and others pointed out that Manchin designed the IRA specifically to deliver money to West Virginia, designing tax credits to incentivize more manufacturing in coal country and funding to help these communities during the transition to clean energy.

    Morgan King, a staff member of West Virginia Rivers, has been traveling across the state recently to talk to local officials about how they can apply for federal IRA funding. The response has been overwhelmingly positive, King told CNN.

    “We’ve spoken with people of all parties,” she said. “People don’t care [about] the politics of how this bill was created so long as this funding can make it into their communities. West Virginia is set to disproportionately benefit from this bill more than any other state.”

    Manchin has been at odds with the Biden administration on several fronts, but the administration’s climate policies and implementation of the Inflation Reduction Act seem to have struck a particular nerve – and Republicans have continued to heavily criticize the law.

    A political ad from Republican dark money group One Nation is already circulating in the state, claiming that the IRA would kill 100,000 jobs in West Virginia.

    “The notion that this is just a climate bill … it is damaging here in the state because we’re pretty far to the right on these issues, especially energy issues,” Workman said. “When you sell something as a climate bill, given the economic context here and our history, it’s somewhat harder for people to see indirect benefits like jobs.”

    Manchin recently voted alongside Republicans on Congressional Review Act bills to undo EPA emissions rules for heavy-duty trucks as well as a climate-focused Labor Department rule (Biden has already vetoed one and promised to veto the other). In March, Manchin tanked top Interior Department nominee Laura Daniel-Davis, claiming she wasn’t upholding a part of the IRA that mandates offshore oil drilling in certain federal waters.

    The dynamic has put Senate Democrats in a tough spot. Democrats have a slightly expanded Senate majority after the midterms, but the continued absence of California Sen. Dianne Feinstein, who has been away from Washington as she recovers from shingles, has made for nailbiter votes.

    “He’s one of the most independent US senators out there,” Democratic Sen. Brian Schatz of Hawaii told CNN. “When he is frustrated, he’s not going to be shy about it. And right now, he’s obviously extremely frustrated with the administration, and that has to get sorted.”

    Manchin has also spent the last few months lobbing a steady stream of blistering statements aimed at Biden’s agencies. When the Environmental Protection Agency proposed strong new vehicle emissions regulations intended to push the US auto market towards electric vehicles in the next decade, Manchin said the agency was “lying to Americans” and called the regulations “radical” and “dangerous.”

    And when the Treasury Department issued guidance on IRA’s new EV tax credits – which were written by Manchin – the senator called it “horrific” and said it “completely ignores the intent” of his law.

    Some of his Democratic colleagues have panned his comments about repealing the IRA.

    “Maybe he should run for president,” Democratic Sen. Martin Heinrich of New Mexico told CNN. “He’s got one job; the president’s got another. The IRA is working.”

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  • States have been on a tax-cutting spree, but revenues are now weakening | CNN Politics

    States have been on a tax-cutting spree, but revenues are now weakening | CNN Politics

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    CNN
     — 

    Fueled by surging revenues, states have been slashing taxes for individuals and businesses for the past three years.

    But the party is expected to come to an end in the coming fiscal year, which started on Saturday in 46 states. Revenue is projected to decline by 0.7% in fiscal 2024, based on forecasts used in governors’ budgets, after an estimated 0.3% dip this fiscal year, according to a recently released National Association of State Budget Officers survey.

    This reversal comes after double-digit percentage increases for the prior two fiscal years. It reflects the impact of slower economic growth, a weaker stock market and a slew of recent tax cuts.

    Some 25 states have cut individual income tax rates since 2021, according to the right-leaning Tax Foundation. This includes 22 states that reduced their top marginal rates.

    “Most states are viewing tax reform and relief as a chance to, first and foremost, return some of their excess revenue to taxpayers, but to also do that in a way that is simultaneously improving the structure of their tax cuts and make it more conducive to long-term economic growth,” said Katherine Loughead, senior policy analyst at the foundation.

    States are also seeking to make themselves more attractive to business investment, as well as to remote and traditional workers, she continued.

    In 2023 alone, at least eight states approved rate reductions, according to the Tax Foundation. Arkansas, for instance, is trimming its top individual income tax rate to 4.7%, retroactive to January 1, after reducing it from 5.5% to 4.9% last year.

    Likewise, Montana lawmakers approved deepening cuts enacted in 2021. Starting in 2024, the top marginal income tax rate will be 5.9%, instead of 6.5% as originally planned. It was 6.9% in 2021.

    In addition, previously scheduled or triggered income tax rate reductions took effect this year in Arizona, Idaho, Iowa, Missouri and North Carolina, as well as for interest and dividend income in New Hampshire, according to the Tax Foundation.

    Aside from individual income tax cuts, states have also lowered the levies on purchases and for businesses over the past three years. Two states cut sales tax rates, while 13 reduced corporate income tax rates and others made additional tax changes that benefited companies.

    In 2023, Nebraska and Utah adopted corporate income tax rate reductions. The former will phase down its top rate to 3.99% in 2027, accelerating an earlier law’s timetable. If fully implemented as planned, Nebraska will slash its top marginal corporate income tax rate nearly in half over six years, according to the Tax Foundation.

    Utah also further reduced its corporate income tax rate to 4.65%, retroactive to January 1. A law passed last year had cut it to 4.85% for 2022, down from 4.95%.

    The tax cuts, along with stock market declines and the shaky economy, have taken their toll on states’ revenues, however.

    State tax revenue fell in 37 states, after adjusting for inflation, between July 2022 and May 2023, according to Lucy Dadayan, principal research associate at the nonpartisan Tax Policy Center. Some 19 states saw declines before taking inflation into account.

    Revenue dropped nearly 12% over the period on an inflation-adjusted basis. All major sources of revenue – personal income, sales and corporate income taxes – declined, though the extent varies widely by state and source. Individual income taxes were the weakest, plummeting more than 22%.

    States are in trouble, though there won’t be an immediate crisis, she said. Much depends on factors that remain unknown, such as whether the nation will fall into a recession or whether states will face natural disasters.

    The robust revenue of recent years was “artificially boosted” by federal Covid-19 pandemic relief funds and the strong stock market in 2021, she said.

    “We knew this is temporary,” Dadayan said. “It would have been better if the states wouldn’t jump and do tax cuts and be more cautious.”

    Still, revenues in fiscal 2023 are coming in stronger than initially expected. The current estimates are outperforming earlier forecasts by 6.5%, according to the National Association of State Budget Officers. Most states have also built up big reserves in their rainy day funds in recent years.

    Whether states will continue cutting taxes in the coming fiscal year will depend on what happens with revenues.

    “A lot of states have done what they can already,” Loughead said. “They will continue to look at how revenues come in and how the rates measure up. If they still are experiencing strong surpluses, I do think they might tweak those rates down even more.”

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  • The Reddit blackout shows no signs of stopping | CNN Business

    The Reddit blackout shows no signs of stopping | CNN Business

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    CNN
     — 

    A widespread Reddit blackout affecting some of the site’s largest communities has continued into its third day with no signs of stopping, as a number of groups on the site vowed to remain closed off indefinitely to protest changes to the platform’s data policies.

    As of Wednesday morning, more than 6,000 subreddits remained inaccessible and in private mode after what began as a two-day voluntary shutdown. The blackout includes popular forums such as r/aww, r/videos and r/music, each of which claims more than 25 million subscribers on the platform.

    The extended protest highlights the commitment of some users, moderators and developers to a long-term standoff with Reddit’s management over a decision to begin charging steep fees for third-party data access to its platform.

    Reddit didn’t immediately respond to a request for comment.

    The coming fees have provoked broad outrage because of their expected impact on independent apps and moderator tools that have grown up around Reddit and that many users view as a critical resource. Some of the largest third-party apps, such as Apollo and RIF, have said they cannot afford the fees and must shut down, effectively driving users to Reddit’s native app that has been widely panned as slow, buggy and inferior, particularly for users with disabilities.

    In recent days, Reddit has said it would exempt some accessibility apps from the price changes and allow some third-party tools to continue operating through its application programming interface (API). But many moderators have called the announcements little more than a “microscopic” concession.

    In response to allegations that Reddit is imposing the fees and forcing developers to shut down in a “profit-driven” move, Reddit co-founder and CEO Steve Huffman said in a recent Q&A with users that Reddit will “continue to be profit-driven until profits arrive.”

    “Unlike some of the [third-party] apps, we are not profitable,” Huffman said.

    The tensions echo how Twitter, under its new owner Elon Musk, has prompted criticism with plans for its own paywall for data in a bid to develop new revenue sources and to shore up the company’s struggling finances. For Reddit, the stakes are also high to grow revenue, as the company reportedly looks to go public later this year.

    Huffman reportedly dismissed the blackout in a leaked internal memo obtained by The Verge. According to the memo, Huffman described the protest as “among the noisiest we’ve seen” but insisted that “like all blowups on Reddit, this one will pass as well.”

    “We absolutely must ship what we said we would,” Huffman reportedly wrote in the memo, in an apparent reference to the API changes. Huffman also reportedly predicted that some subreddits would end their protest after the initially scheduled two days.

    As of Wednesday morning, many groups participating in the blackout had lifted their self-imposed restrictions. But even as some groups went public once more, others joined the protest.

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  • Two very different points of view on nuclear energy in the US | CNN Politics

    Two very different points of view on nuclear energy in the US | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    Two distinct and unrelated stories this week convinced me it was a good moment to look at nuclear power in the US.

    Those developments, which might give anyone pause about the future of nuclear power, are counteracted by other headlines.

    The opening of a new nuclear plant in Georgia, for example, will bring carbon emission-free energy at exactly the time worldwide temperature records drive home the reality of climate change caused by the burning of fossil fuels.

    Germany made the decision to decommission all of its nuclear plants after disasters like Chernobyl and Fukushima. The last nuclear reactor there was taken offline earlier this year, a decision some might have regretted after Germany’s access to Russian natural gas was threatened by the war in Ukraine.

    Next door, France is the worldwide nuclear leader. Most of its electricity is generated by nuclear power.

    Russia, while it has been ostracized from the world economy in almost every way since its invasion of Ukraine, remains a major player in nuclear power. It enriches and sells uranium through its state-controlled nuclear energy company, Rosatom, which builds and operates plants around the world, according to a March report from CNN’s Clare Sebastian that explains why the West has largely left Russia’s nuclear power industry alone.

    But it is China that is moving the quickest toward nuclear power production, according to the International Atomic Energy Agency.

    As of 2022, about 18% of US electricity is generated by nuclear power, according to the US Energy Information Administration. Most large US nuclear reactors are old – averaging 40 years or more.

    In addition to the Georgia reactor coming online, a new reactor began operating in Tennessee in 2016. But otherwise, the US nuclear power portfolio is old, and much of it is in need of improvement.

    For an idea of the money and corruption that can revolve around energy production, look at the sentencing last week of Ohio’s former House Speaker Larry Householder to 20 years in prison for his involvement in a bribery scheme meant to get the utility company FirstEnergy Corp. a billion-dollar taxpayer bailout for two nuclear plants.

    The bipartisan infrastructure law signed by President Joe Biden in 2021 included a $6 billion program to provide grants to nuclear reactor owners or operators and stave off closing them.

    More than a dozen reactors have closed early in the US over the past decade, according to the Department of Energy. At least one reactor, the Diablo Canyon Power Plant in California, will be kept open after a more than $1 billion grant.

    Nuclear power – and how aggressively the US and other countries should be pursuing it – is a topic that splits scientists as well.

    I talked to one nuclear expert who said the US should be slow and methodical about nuclear power and another who argued there are multiple, public misperceptions about nuclear power that should be corrected.

    The more circumspect voice is Rodney Ewing, a Stanford University professor and expert on nuclear waste who was chairman of a federal review of nuclear waste procedures. I was put in touch with him by the Bulletin of the Atomic Scientists, which aims to “reduce man-made threats to our existence.”

    Despite his decades spent focused on nuclear issues, he said something I found remarkable:

    “I don’t have yet, although I’ve tried for years, a well-formed position for or against nuclear energy,” Ewing said.

    “Too often in the enthusiasm for nuclear energy, a carbon-free source of energy – and in the present situation of the issue of climate change, really a very important existential crisis – it’s easy to say, well, we’ll solve the problems later.”

    He said the issues with nuclear energy – from the potential for disaster to the issue of how to store nuclear waste – should be compared with the potential for renewable alternatives like solar and wind energy.

    The University of Illinois energy professor, David Ruzic – who has a lively YouTube channel, “Illinois EnergyProf,” with multiple videos meant to dispel concerns about nuclear energy – has a much more positive view of nuclear energy’s future.

    Illinois, by the way, generates more nuclear power than any other state. Lawmakers there recently voted to lift a moratorium on new reactor construction that was in place until the federal government can develop a technology for disposing of nuclear waste. That new policy must still be signed by the state’s governor.

    Ruzic argues nuclear waste takes up such little space it should simply be encased in yards of solid concrete and kept at the site of nuclear reactors. The concrete, he argued, can be repaired every 70 years or so as it degrades.

    “Over the 60 years we’ve been doing this commercially, we have learned so much about how to do it extremely safely and very well,” Ruzic said, arguing that the new plant in Georgia would not be affected by an earthquake and tidal wave in the way that Fukushima was, because the new reactor in Georgia is cooled by air in case of an emergency.

    He argued that even in Fukushima, it’s important to note that there were no deaths associated with the radiation due to the failure of the plant, although many thousands were evacuated.

    Any concern you can find to raise about nuclear power, Ruzic has a ready answer. He said no one should worry about the radioactive water Japan plans to release into the ocean from Fukushima because there is a level of radioactivity in everything already.

    “You are adding something trivial and inconsequential, which will be diluted even more,” Ruzic said.

    Even the Russia-Ukraine standoff over the Zaporizhzhia plant does not concern Ruzic; the biggest threat he sees, assuming it is not targeted by bunker-busting bombs, is that the plant ceases making electricity – not that it could turn into another Chernobyl.

    “It’s really unfortunate that it’s in the middle of a war zone. But it’s also really unfortunate that chemical plants or coal plants or other plants are in the middle of a war zone as well,” he argued.

    Both professors brought up the push toward small, modular nuclear technology for which there are numerous companies speculating there will be a major market. That market could grow exponentially if the government decides to put a tax on carbon emissions to account for the harm they cause.

    Ewing argued there is not a clear US national energy strategy, and that means numerous state and federal agencies and private companies are searching, often at odds with each other, for something new. The expense and difficulty of developing nuclear technology will be a roadblock. The new Georgia plant took more than a decade to build and came in over budget.

    Ruzic said that after the initial capital expenditure, the relative low cost of fuel for nuclear plants makes them a good, long-term investment.

    When I came back to Ewing about his comment that he has no clear preference for or against nuclear energy, he said the broad question overlooks too much.

    “The nuclear landscape is, from a technical and social point of view, complicated enough that broad general positions really don’t serve us very well,” he said.

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  • Can Biden achieve his cornerstone climate goal? Why 100% clean power is still out of reach | CNN Politics

    Can Biden achieve his cornerstone climate goal? Why 100% clean power is still out of reach | CNN Politics

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    CNN
     — 

    Tucked into President Joe Biden’s ambitious, sweeping climate commitments is a crucially important goal that dates back to his campaign: Transforming the US electric grid to run entirely on clean energy by 2035.

    The goal could make or break Biden’s pledge to slash the country’s planet-warming emissions in half by 2030. And if successful, 100% clean electricity could energize vast sectors of the US economy: electric vehicles, home and office heating and cooling, and appliances. It could even power heavy industry and manufacturing, which is currently reliant on fossil fuels.

    “When you have a fully clean grid, versus a grid that either is a quarter or a half clean, that makes a significant difference in terms of the greenhouse gas performance of the things you’re plugging in to that grid,” White House national climate adviser Ali Zaidi told CNN. “That electric vehicle now is twice or three times cleaner when you shift to a fully clean grid.”

    Yet while renewable energy has exploded over the past decade, bringing Biden’s cornerstone climate goal to fruition by 2035 could be beyond his grasp.

    As of this year, about 44% of America’s electricity was powered by zero-emissions sources like wind, solar, nuclear and hydropower, according to the Department of Energy. The rest comes from fossil fuels like methane gas and coal.

    After the Inflation Reduction Act passed last year – legislation that aimed to supercharge clean energy in the US – an analysis from the National Renewable Energy Laboratory predicts the US will get to around 80% clean electricity by 2030, a number that includes renewables, nuclear energy and carbon capture on fossil fuel plants.

    By 2035, the federal analysis shows clean and renewable sources will make up about 86% of US energy, spurred in large part by the IRA. (That analysis did not include the Biden administration’s proposed pollution rules for power plants, which could increase the adoption of clean energy.)

    “That’s a doubling from today, which is huge,” Ben King, an associate director at the nonpartisan think tank Rhodium Group, told CNN. But it’s also short of Biden’s goal of 100% clean electricity by that date.

    Decarbonizing the last portion of the power sector will be the most difficult, federal officials and experts told CNN. The closer you get to 100% percent clean electricity, the harder it is to go all the way.

    “We’ve known that the last 10% – maybe the last 20 to 25% – is going to be challenging,” Zaidi said. “And the reason is because you’re not just trying to deliver clean electrons onto the grid. You’re trying to deliver cleaner electrons when you want them, where you want them. That’s a hard thing to do.”

    Not only does the power need to come from clean sources, it also needs to be readily available to energize the US economy during peak demand.

    But wind and solar are still variable – especially without massive, costly battery storage. And newer technologies, like green hydrogen, carbon capture and small modular nuclear reactors haven’t yet been built to a large enough scale.

    That could mean some fossil fuels plants outfitted with carbon capture would need to remain connected to the grid to provide power that can brought online quickly, King said.

    There are also big infrastructure hurdles for renewables to take the lead. Even if massive amounts of wind and solar are developed by the end of this decade, the US may not have enough electrical transmission infrastructure to move all of that renewable energy around the grid.

    “The bottlenecks of a lack of transmission are very real,” Lena Moffitt, executive director of Evergreen Action, told CNN. There also needs to be significant investment in massive batteries to store the power generated by wind and solar to be used at all hours, she said.

    While companies and the federal government are racing to scale up new zero-carbon technologies, traditional wind and solar will largely power this clean electricity transition.

    They are the most reliable and trusted clean energy sources for utilities and developers, and they have quickly become cheaper than fossil fuels – so inexpensive that it is becoming more cost-effective for some utilities to build new wind and solar, rather than constructing new fossil plants or even running existing ones, experts told CNN.

    Wind and solar are also mature technologies that developers know they can finance and get huge tax breaks on through the Inflation Reduction Act.

    They are the “natural choice for developers who are looking for those low risk and very cost-effective projects to develop,” Sonia Aggarwal, a former White House senior advisor for climate policy and CEO of nonpartisan think tank Energy Innovation, told CNN. “We will see them play a large role because of how good they look from an economic perspective.”

    By the end of 2021, wind and solar together made up about 228 gigawatts of power. By 2034, NREL predicts that number – including offshore wind – will grow by more than four times to over 1 terawatt, or 1 trillion watts of power.

    “Where we are now is very different from even 5 or 10 years ago as far as the costs of clean energy, particularly renewables, being significantly lower than they’ve been in the past,” Carla Frisch, acting executive director of the US Energy Department’s Office of Policy, told CNN. “So just a really rapid acceleration that we’re already experiencing right now.”

    While getting new clean technologies to scale will be difficult, it’s work worth doing, Zaidi said.

    “Let’s deploy the stuff we have right now, right away,” he said. “And let’s work hard as we can to innovate on the stuff that we need in the future.”

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  • Biden’s student loan forgiveness program faces a new threat from Senate Republicans | CNN Politics

    Biden’s student loan forgiveness program faces a new threat from Senate Republicans | CNN Politics

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    Washington
    CNN
     — 

    President Joe Biden’s student loan forgiveness program may face a new threat from Senate Republicans even before the US Supreme Court rules on whether it can be implemented.

    Republican Sens. Bill Cassidy of Louisiana, Joni Ernst of Iowa and John Cornyn of Texas are planning to introduce a resolution to overturn Biden’s debt relief program, which promises up to $20,000 of debt relief for eligible borrowers, as soon as this week.

    Biden would very likely veto the measure if it succeeds in both the Senate and House. But votes would force members of his own party, who have not all been in support of the student loan forgiveness program, to take a public stance.

    The program is currently blocked. The Supreme Court is expected to issue its ruling in late June or early July.

    “President Biden’s student loan scheme does not ‘forgive’ debt, it just transfers the burden from those who willingly took out loans to those who never went to college, or sacrificed to pay their loans off,” Cassidy said in a statement.

    The Republican senators plan to introduce their resolution using the Congressional Review Act, which allows Congress to roll back regulations from the executive branch without needing to clear the 60-vote threshold in the Senate that is necessary for most legislation.

    It was unclear whether the Congressional Review Act would apply to Biden’s student loan forgiveness program until the Government Accountability Office made a determination on the matter earlier this month.

    Biden issued his first veto last week concerning a retirement investment resolution, which was also brought under the Congressional Review Act.

    While many key Democratic lawmakers have urged Biden to cancel some federal student loan debt, not every member of the party has been supportive.

    Sen. Catherine Cortez Masto, a Democrat from Nevada who won a competitive reelection race last year, has previously been critical of Biden’s forgiveness plan.

    “I’ll review the full text of the CRA when it is released, but like I said before, I disagree with President Biden’s executive action on student loans because it doesn’t address the root problems that make college unaffordable,” she said in a statement sent to CNN.

    Her statement was first reported by The Wall Street Journal.

    Democratic Sen. Joe Manchin of West Virginia has previously called Biden’s student loan forgiveness program “excessive.” His office did not respond to a request for comment for this story.

    Biden’s one-time student debt forgiveness program is estimated to cost $400 billion over time.

    Individual borrowers who made less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 a year could see up to $10,000 of their federal student loan debt forgiven.

    If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness. Pell grants are awarded to students from very low-income families who are more likely to struggle paying back their student loans.

    While the debt relief would help borrowers with student loans now, the program wouldn’t change the cost of college in the future – and some critics argue that it could even lead to an increase in tuition. A separate proposal from Biden, expected to take effect later this year, would create a new income-driven repayment plan that could lower monthly payments for both current and future borrowers.

    The legal challengers to the student loan forgiveness program argue that the Biden administration is abusing its power and using the Covid-19 pandemic as a pretext for fulfilling the president’s campaign pledge to cancel student debt.

    The White House has said that it received 26 million applications before a lower court in Texas put a nationwide block on the program in November, and that 16 million of those applications have been approved for relief – though no debt has been canceled yet. It’s possible the government moves quickly to forgive those debts if it gets the green light from the Supreme Court.

    If the justices strike down Biden’s student loan forgiveness program, it could be possible for the administration to make some modifications to the policy and try again – though that process could take months.

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  • Tax prep companies shared private taxpayer data with Google and Meta for years, congressional probe finds | CNN Business

    Tax prep companies shared private taxpayer data with Google and Meta for years, congressional probe finds | CNN Business

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    CNN
     — 

    Some of America’s largest tax-prep companies have spent years sharing Americans’ sensitive financial data with tech titans including Meta and Google in a potential violation of federal law — data that in some cases was misused for targeted advertising, according to a seven-month congressional investigation.

    The report highlights what legal experts described to CNN as a “five-alarm fire” for taxpayer privacy that could lead to government and private lawsuits, criminal penalties or perhaps even a “mortal blow” for some industry giants involved in the probe including TaxSlayer, H&R Block and TaxAct.

    Using visitor tracking technology embedded on their websites, the three tax-prep companies allegedly sent tens of millions of Americans’ personal information to the tech industry without consent or appropriate disclosures, according to the congressional report reviewed by CNN.

    Beyond ordinary personal data such as people’s names, phone numbers and email addresses, the list of information shared also included taxpayer data — details about people’s filing status, adjusted gross income, the size of their tax refunds and even information about the buttons and text fields they clicked on while filling out their tax forms, which could reveal what tax breaks they may have claimed or which government programs they use, according to the report.

    The report, which drew on congressional interviews and written testimony from Meta, Google and the tax-prep companies, also found that every taxpayer who used TaxAct’s IRS Free File service while the tracking was enabled would have had their information shared with the tech companies. Some of the tax-prep companies still do not know whether the data they shared continues to be held by the tech platforms, the report said.

    “On a scale from one to 10, this is a 15,” said David Vladeck, a law professor at Georgetown University and a former consumer protection chief at the Federal Trade Commission, the country’s top privacy watchdog. “This is as great as any privacy breach that I’ve seen other than exploiting kids. This is a five-alarm fire, if what we know about this so far is true.”

    It is also an example, Vladeck said, of why the United States needs federal legislation guaranteeing every American a basic right to data privacy — an issue that has languished in Congress for years despite electronic data becoming an ever-larger part of the global economy.

    The congressional findings represent the latest claims of wrongdoing to hit the embattled tax-prep industry after a report last year by the investigative journalism outlet The Markup highlighted the tracking practice.

    Wednesday’s bombshell report adds to those earlier revelations by identifying a previously unreported category of data that was allegedly being collected and shared: the webpage titles in online tax software that can reveal what tax forms users have accessed, said an aide to Democratic Sen. Elizabeth Warren, who helped lead the congressional probe. For example, taxpayers who entered information about their college savings contributions or rental income may have done so on webpages bearing titles reflecting that information, which would then have been shared with the tech companies, the aide said.

    During the probe, Meta told investigators it used the taxpayer data it received to target third-party ads to users of its platform and to train its artificial intelligence algorithms, the report said. The Warren aide told CNN it was unclear whether Meta knew it was inappropriately using taxpayer data at the time. A Meta spokesperson said the company instructs its partners not to use its tools to share sensitive information and that Meta’s systems are “designed to filter out potentially sensitive data it is able to detect.”

    The technology behind the data collection, known as a tracking pixel, is commonly used across the entire internet. A small snippet of code that website owners can insert onto their sites, tracking pixels gather information that can help companies, including but not limited to Meta and Google, understand the behavior or interests of website visitors.

    Because of the tracking technology used by TaxAct, TaxSlayer and H&R Block, “every single taxpayer who used their websites to file their taxes could have had at least some of their data shared,” the report said.

    The tax-prep companies at the center of the investigation told lawmakers the collected data had been scrambled to help protect privacy, according to the report. But the report also said some of the tax-prep firms themselves were not fully aware of how much information was being exposed to the tech platforms, and the report cited past FTC research concluding that even “anonymized” data can be easily reverse-engineered to identify a person.

    The pixels’ use in a taxpayer context resulted in the “reckless” sharing of legally protected data that could put taxpayers at risk, according to the report by Warren and her Democratic colleagues Sens. Ron Wyden; Richard Blumenthal; Tammy Duckworth; and Sheldon Whitehouse; Sen. Bernie Sanders, an independent who caucuses with Democrats; and Democratic Rep. Katie Porter.

    The FTC, the Internal Revenue Service, the Justice Department and the Treasury Inspector General for Tax Administration “should fully investigate this matter and prosecute any company or individuals who violated the law,” the lawmakers wrote in a letter dated Tuesday to the agencies and obtained by CNN. The FTC and DOJ declined to comment; the IRS and TIGTA didn’t immediately respond to a request for comment.

    In a statement, H&R Block said it takes client privacy “very seriously, and we have taken steps to prevent the sharing of information via pixels.” Wednesday’s report said H&R Block had testified to using the tracking technology for “at least a couple of years.”

    TaxAct and TaxSlayer didn’t immediately respond to a request for comment. The report said TaxAct had been using Meta’s tools since 2018 and Google’s since about 2014, while TaxSlayer began using Meta’s tools in 2018 and Google’s in 2011. The investigation found that all three tax-prep companies had discontinued their use of Meta’s pixel after The Markup’s report last November.

    Intuit, the maker of TurboTax, received an initial inquiry letter from the lawmakers in December but was not a focus of Wednesday’s report because the company did not use tracking pixels to the same extent, the investigation found.

    Tax preparation firms have faced mounting scrutiny in recent years amid reports that many have turned to data harvesting as a business model and that the largest among them have spent millions lobbying against legislation that could make it easier for Americans to file their tax returns. An IRS report this year found that 72% of Americans would be interested in using a free, electronic tax filing service if it were provided by the agency as an alternative to private online filing services. The IRS plans to launch a pilot version of that service to a limited number of taxpayers in the 2024 tax filing season.

    Google told CNN it prohibits business customers from uploading to its platform sensitive data that could be traced back to a person.

    “We have strict policies and technical features that prohibit Google Analytics customers from collecting data that could be used to identify an individual,” a Google spokesperson said. “Site owners — not Google — are in control of what information they collect and must inform their users of how it will be used. Additionally, Google has strict policies against advertising to people based on sensitive information.”

    Wednesday’s report focuses more heavily on Meta’s use of taxpayer data, the Warren aide told CNN, because Google did not appear to have used the information for its own commercial purposes as overtly as Meta and the investigation was unable to fully determine whether Google may have used the data for other applications.

    The allegations could nevertheless create extensive legal risk for both the tech companies as well as the tax-preparation firms, according to tax and privacy legal experts.

    The tax-prep companies could face billions in fines under US tax law if the federal government decides to sue, said Steven Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center. In addition, the US government could seek criminal penalties.

    “The scope of ‘taxpayer information’ is broad by design,” Rosenthal said, adding that tax-prep companies can be sued for “knowingly” or “recklessly” leaking that information. “The companies shouldn’t be sharing it in a way that some third party could obtain it.”

    Theoretically, he said, the tax code also affords individual taxpayers the right to file private lawsuits against the tax-prep companies. But most if not all of those firms require customers to submit to mandatory arbitration that could realistically make bringing a private claim more challenging, said the Warren aide.

    Apart from the tax code, both the tech giants as well as the tax-prep firms could also face civil liability from the FTC — which can police data breaches and hold companies accountable for their commitments to user privacy — and potentially from state governments that have their own privacy laws on the books, said Vladeck.

    Depending on the strength of the allegations, the tax-prep companies could quickly be forced into a binding settlement, said a former FTC official who requested anonymity in order to speak more freely.

    “If the facts are really strong, these companies would probably rather settle than go to court. This is very embarrassing,” the former official said. “It could be a mortal blow to the tax prep companies.”

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