Logo
    Search

    Republicans and Democrats Prepare for a Tax-Policy Fight

    en-usJune 07, 2024

    Podcast Summary

    • Jobs reportStronger-than-expected jobs report in May with 272,000 new jobs added and rising wages, but uncertainty remains about labor market health and potential tax policy battles

      The U.S. jobs market showed stronger signs of recovery than anticipated in May, with 272,000 new jobs added and average hourly wages on the rise. However, the unemployment rate ticked up to 4%, causing some uncertainty about the labor market's health. This unexpectedly strong jobs report has led investors to believe the Federal Reserve may be less inclined to cut interest rates as soon as anticipated. The expiration of several individual tax benefits in 2025 has set the stage for a potential tax policy battle between Republicans and Democrats. The S&P 500, NASDAQ composite, and Dow Jones Industrial Average all experienced slight declines on the day, but all three indexes finished the week and the month of May in positive territory. Overall, the stronger-than-expected jobs report suggests the economy is in better shape than some had believed, but uncertainties remain regarding the future of tax policies and inflation.

    • GameStop earnings and tax policyGameStop reported as expected earnings with a loss and sales drop, plans to sell 75M shares, Roaring Kitty expressed optimism, but shares experienced volatility. A tax policy debate is heating up, potentially impacting GameStop and other companies, depending on the election outcome.

      GameStop's first quarter earnings were as expected, with a narrow loss and drop in sales. The retailer also announced plans to sell 75 million shares at market price due to recent meme stock mania. Roaring Kitty, the influential investor, reappeared on social media, confirming his large stake in GameStop and expressing optimism about the company's future. However, GameStop's shares experienced significant volatility during a live stream, ending the day down 40% and experiencing multiple trading halts. Meanwhile, a tax policy debate is heating up as several tax cuts from a 2017 law are set to expire at the end of next year. This could lead to a significant tax policy fight between Republicans and Democrats, with the outcome potentially depending on the November election. Richard Rubin, a US tax policy expert from the Wall Street Journal, can provide further insights on the impact and beneficiaries of the expiring tax cuts.

    • Tax PolicyRepublicans and Democrats have contrasting views on extending the 2017 tax law, with Republicans wanting all provisions extended and Democrats proposing to extend cuts for those below $400,000 while letting others expire, and also increasing taxes on corporations and high earners to pay for the extensions.

      The 2017 tax law, a key achievement of the Trump administration, resulted in significant corporate tax cuts with temporary individual tax benefits. Republicans view the law as a success and want all provisions extended, while Democrats see it as an opportunity to reshape tax policy. They propose extending cuts for those below $400,000 and letting others expire, while also increasing taxes on corporations and high earners to pay for the extensions. If the law were to expire, the impact would be felt gradually, with taxes increasing for those affected starting from tax year 2026, and the actual impact being seen in early 2027.

    • Tax policies uncertaintyThe outcome of the upcoming elections will determine the fate of current tax policies in 2026, with Democrats proposing new policies and Republicans favoring an extension of the current ones. Mar-a-Lago's value is uncertain due to differing assessments based on its use as a private club and resort.

      The expiration of the current tax policies in 2026 is uncertain and depends on the outcome of the upcoming elections. If Democrats gain control, we may see policies similar to those proposed by President Biden. If Republicans take charge, an extension of the current policies is more likely. In the case of a divided government, the situation becomes uncertain, and both sides may engage in a "staring contest" to gauge political support. Meanwhile, the value of Mar-a-Lago, former President Trump's estate, is a subject of debate due to differing assessments based on how the property is used. The estate's location on Palm Beach Island and its size make it an extremely valuable piece of real estate, worth millions to potentially over a billion dollars. However, the discrepancy between Trump's claimed $1 billion valuation and local assessments stems from the fact that Mar-a-Lago functions as a private club and resort, which affects its market value.

    • Mar-a-Lago property value controversyDespite being worth around $37 million today, Mar-a-Lago's land value might be worth more, while the cost of maintaining friendships through socializing has risen faster than inflation.

      The value of Mar-a-Lago, former President Trump's estate in Palm Beach, is a subject of controversy due to conflicting appraisals. Trump purchased the property for $10 million in the 1980s but signed agreements in the 1990s that restricted development and valued the property lower for tax purposes. Today, the property is worth around $37 million according to the Palm Beach County appraiser. However, the land value of Mar-a-Lago could potentially be worth much more. Meanwhile, socializing has become increasingly expensive. The cost of hobbies, activities, and dining out has risen faster than the average inflation rate, making it more costly to maintain friendships.

    • Weekend socializing costsConsumers may face increased expenses for socializing over the weekend due to rising costs of goods and services, as reported by The Wall Street Journal's 'What's News' team

      Consumers can anticipate higher costs for socializing over the weekend. This news comes as the cost of various goods and services continues to rise. The Wall Street Journal's "What's News" team reported on this trend in their latest episode, which was produced by Anthony Banssey and hosted by Alex Osala and Luke Vargas. The team also included contributions from Tali Arbel, Pierre Biename, Shelby Holiday, Zoe Colkin, and Sabrina Sadiqi. Michael LaValle composed the theme music, and the supervising producers were Christina Roca and Michael Cusmedes. Aisha Ella-Muslim served as the development producer, and Scott Salloway and Chris Dinsley acted as deputy editors. Philana Patterson oversaw the news audio division at The Wall Street Journal. Listeners can expect a weekly markets wrap-up on the following day, and on Sunday, the team will explore the impact of a new class of weight loss drugs on bodies, fortunes, and industries in "What's News Sunday." The regular show will resume on Monday morning.

    Recent Episodes from WSJ What’s News

    How ‘Anti-Woke’ Shareholders Are Going After Corporate America

    How ‘Anti-Woke’ Shareholders Are Going After Corporate America
    P.M. Edition for June 11. Hunter Biden was found guilty on all charges in a felony gun case. WSJ Justice Department reporter Ryan Barber discusses the verdict. And “anti-woke” activists have set their sights on corporate boards. Corporate news reporter Theo Francis explains what's behind the strategy. Plus, Andrea Petersen explains why some scientists are concerned about a sunscreen ingredient in your food. Sabrina Siddiqui hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 11, 2024

    ‘Degen’ Traders Take on Wall Street

    ‘Degen’ Traders Take on Wall Street
    A.M. Edition for June 11. Risky trades are roaring in popularity, driven by amateur investors piling into meme stocks and long-shot bets. The WSJ’s Hannah Miao says these self-proclaimed degenerate traders have Wall Street paying attention. Plus, derivatives regulator Christy Goldsmith Romero emerges as the White House’s top pick to head the FDIC. And, one prison in Brazil trades guard dogs for geese—with great success. Luke Vargas hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 11, 2024

    Americans Hate Inflation. That’s Bad News for the Fed.

    Americans Hate Inflation. That’s Bad News for the Fed.
    P.M. Edition for June 10. Economists say higher inflation than the 2% the Federal Reserve is aiming for could help the Fed get out of possible downturns. But, as economics reporter Justin Lahart points out, inflation is unpopular among consumers. And Apple announces a software update that includes generative artificial intelligence. Plus, extreme weather is putting crops like olives, cocoa and grapes at risk. Reporter Jon Emont says that is raising prices for goods like olive oil, chocolate and wine. Alex Ossola hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 10, 2024

    Europe Shifts to the Right

    Europe Shifts to the Right
    A.M. Edition for June 10. Nationalist parties make a strong showing in European Union elections, dealing a setback to leaders in France and Germany. The WSJ’s Laurence Norman says the results could influence the EU’s agenda on migration and the environment. Plus, Israeli Prime Minister Benjamin Netanayahu’s top rival quits the government over his handling of the war in Gaza. And activist investor Elliott takes a big stake in Southwest Airlines. Luke Vargas hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 10, 2024

    Ozempic Economics: Your Questions Answered

    Ozempic Economics: Your Questions Answered
    GLP-1 drugs like Ozempic, Wegovy, Mounjaro and Zepbound have been revolutionary for weight loss. They’re also sparking big changes in many industries – from food to medicine. Wall Street Journal tech editor Bradley Olson – who himself took a GLP-1 drug – and audio reporter Jessica Mendoza have been documenting impacts of this new class of drugs in a series – “Trillion Dollar Shot” – for our sister podcast The Journal. They answer listener questions on how it’s transforming bodies, fortunes and industries. Luke Vargas hosts. Further Reading The Quest for Treatments to Keep Weight Off After Ozempic  Can Ozempic Maker Novo Nordisk Keep Up Its Momentum?  How Drugs Like Ozempic Are Changing What We Think About Weight Loss  Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 09, 2024

    What’s News in Markets: Streaming Price, Spending Slumps, Meme Mania

    What’s News in Markets: Streaming Price, Spending Slumps, Meme Mania
    Why is Spotify hiking its premium price? And how are J.M. Smucker and Lululemon dealing with lower consumer spending? Plus, what’s behind the wild moves of GameStop’s stock? Host Francesca Fontana discusses the biggest stock moves of the week and the news that drove them. Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 08, 2024

    Republicans and Democrats Prepare for a Tax-Policy Fight

    Republicans and Democrats Prepare for a Tax-Policy Fight
    P.M. Edition for June 7. A 2017 tax overhaul is set to expire at the end of 2025, but tax policy reporter Richard Rubin says what comes after will depend on the outcome of this year’s election. And U.S. job numbers for May were higher than economists predicted, but unemployment also rose, painting a complicated picture of the economy. Plus, Donald Trump’s Mar-a-Lago is a South Florida gem, but just how much it is worth is a matter of dispute, as Wall Street Journal reporter E.B. Solomont discusses with Tali Arbel. Alex Ossola hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 07, 2024

    Biden to Use D-Day Backdrop for Re-Election Pitch

    Biden to Use D-Day Backdrop for Re-Election Pitch
    A.M. Edition for June 7. President Biden is emphasizing the importance of democratic principles as he seeks re-election, but polls show other issues are on voters’ minds. Plus, China’s outbound shipments top economists’ forecasts —defying the specter of looming U.S. tariffs. And, companies from Amazon to DoorDash have started to roll out deliveries by drone. But making aerial shipments profitable is a challenge, WSJ’s Liz Young explains. Luke Vargas hosts. Sign up for the WSJ's free What's News newsletter.  Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 07, 2024

    How New Tech Could Help Jolt the Aging U.S. Grid

    How New Tech Could Help Jolt the Aging U.S. Grid
    P.M. Edition for June 6. The country’s aging power grid is due for a burst of new power and electricity demand driven by electric vehicles and new data centers for artificial-intelligence technology. Climate and energy reporter Scott Patterson discusses the White House’s plan to modernize it. And Keith Gill—the meme-stock influencer known as Roaring Kitty—single-handedly moved GameStop’s stock higher. But did he manipulate the market? Alexander Osipovich explains. Plus, business of social media reporter Salvador Rodriguez on Meta’s move to allow businesses on WhatsApp to use free artificial intelligence chatbots. Pierre Bienaimé hosts. Sign up for the WSJ's free What's News newsletter.  Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 06, 2024

    FTC Puts Microsoft AI Deal Under the Microscope

    FTC Puts Microsoft AI Deal Under the Microscope
    A.M. Edition for June 6. The Federal Trade Commission is investigating whether Microsoft structured one of its latest deals to avoid an antitrust review. WSJ’s Kim Mackrael says regulators are concerned tech giants could snap up the most promising AI applications. Plus, Israel strikes a United Nations school and shelter in Gaza, saying Hamas was operating there. And, we take a look at the foods we might find more of on our plates in the future. Luke Vargas hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
    WSJ What’s News
    en-usJune 06, 2024