President Trump is eager to claim credit for Apple’s moves, but it’s a bit more complicated.

THE TICKER

President Trump took a bold announcement by Apple on Wednesday and made an even bolder claim about it. 

The electronics giant touted a massive new investment in the U.S. economy, pledging to contribute $350 billion to it over the next five years, with $30 billion of that sum coming in the form of capital spending, including for a new campus. And the tech company said it will create 20,000 new jobs in the United States. The president seized on the news as validation of the Republican tax package:

The issue: It’s not clear how much the new tax regime contributed to Apple’s decision, if at all. 

In a 1,093-word statement detailing the move, the company noted it is handing the Treasury a $38 billion one-time payment. That meets a requirement under the new law that corporations pay previously deferred taxes on their foreign profits. The law set up that provision as a sort of compromise: Companies are being forced to fork over a portion of those overseas stashes to Uncle Sam, but they are being charged a deeply discounted rate (15.5 percent for cash and 8 percent for less liquid assets.) Apple says it is counting the $38 billion it’s paying toward the $350 billion total it advertised Wednesday.

The law gives companies the flexibility to spread what they owe under the levy over five years. But the payment is mandatory — and not, as Trump suggested in his tweet, itself a vote of confidence in the brightening business climate at home.

Beyond that, the company doesn’t chalk up anything else in its announcement to the tax law. The Wall Street Journal’s Tripp Mickle does a careful job parsing the company’s statement: 

The company previously said it planned $16 billion in capital expenditures world-wide in the fiscal year that ends this September, up from $14.9 billion the previous year. However, Apple doesn’t break out its spending in the U.S., making it difficult to gauge how much of the $30 billion over five years it announced Wednesday is new.

Toni Sacconaghi, an analyst with Sanford C. Bernstein & Co., said Apple’s plans are in line with Trump administration goals, but that it isn’t clear how much of the commitments are new. And he said the company could deliver on those commitments with existing cash flow — without needing to tap cash holdings.

“It’s a nice number and puts a foot forward in line with where the administration wants to go with adding jobs and building in the U.S.,” he said. But he added, “It’s not clear these investments were impacted in any way by tax reform.”

Separately, Bloomberg News’s Mark Gurman reported Wednesday, the company is awarding most of its employees worldwide a $2,500 bonus in stock grants in the months ahead. For that, beneficiaries can thank the tax cuts. 

But the announcement of Apple’s multibillion-dollar investments carried significantly more weight for Trump and other Republicans eager to find signs the tax package is supplying a big boost of momentum to broader economic growth. Another entrant in the parade of companies handing out bonuses may be nice. What the GOP would prefer, however, is evidence that corporate giants are plowing their windfalls into the kind of spending that will trickle down to workers. 

“Certainly higher wages and bonuses are good news,” Tax Foundation senior analyst Scott Greenberg says. “But if the tax bill is going to have a large economic effect, it’s likely going to take some time to show up, because will take some time for companies to respond to the incentives offered by the new tax provisions.” And, he cautioned, “it’s difficult to separate causality from companies looking for gestures of public goodwill.”

Apple isn’t likely to fact-check Trump’s claims.

The announcement appeared designed to win the company some good-citizen points, with Apple CEO Tim Cook declaring in a statement that his company “could only have happened in America, and we are proud to build on our long history of support for the US economy.”

Recall that the tech titan came in for special abuse from Trump during the 2016 campaign. The candidate promised to make Apple “start building their damn computers and things in this country instead of in other countries,” at one point urged a boycott of Apple products, and said he would “come down so hard” on Cook that “his head would be spinning all of the way back to Silicon Valley.”

But Apple isn’t the only corporate giant that has been coy about pledging to use its tax gains for investments and wage hikes rather than, say, stock buybacks and dividend payments.

A CNBC survey of the 100 biggest companies by market cap found only nine with “specific plans to use some of the money saved from the corporate tax cuts to boost worker pay or invest in facilities or charitable causes.”

In other news, the sun rose today. Can we say for sure it would have but for the corporate tax cut?

MARKET MOVERS

— DOW 26,000. CNBC’s Fred Imbert: “Stocks traded higher on Wednesday following the release of stronger-than-expected quarterly results from some of the biggest U.S. companies. The Dow Jones industrial average rose 322.79 points, closing above 26,000 for the first time. The index first broke above the milestone mark on Tuesday. The S&P 500 gained 0.9 percent to finish at 2,802.56, with staples and tech rising more than 1 percent. The index also posted a record close.Tech stocks got a boost from Apple, which erased losses after announcing plans to repatriate billions in overseas cash. The stock closed 1.7 percent higher. The Nasdaq composite rose 1 percent to finish at 7,298.28, a record.”

It broke the record in record time. CNN Money’s Matt Egan: “The latest rush to buy stocks left the average up almost 8,000 points since… Trump’s 2016 election.The rally on Wednesday gave the Dow its best percentage gain since November. And it showed that the upward trend remains intact despite a big reversal the day before… But the velocity of the rally is raising eyebrows. It took just seven trading days for the Dow to climb from 25,000 to 26,000. While that is just a 4% advance, it’s part of a broader surge that has carried the Dow 42% during the Trump era. And the market rise has come with virtually no breaks.”

U.S. Industrial Production Rose 0.9% in December

U.S. industrial production rose sharply in December, boosted by gains in utilities output as cold weather swept across the nation and increased demand for heating.

WSJ

MONEY ON THE HILL

Shutdown showdown. The Post’s Mike DeBonis, Ed O’Keefe, and Erica Werner: “Bitter divisions in both parties threatened Wednesday to derail Congress’s effort to keep the federal government fully operating past the end of the week. The shutdown threat emerged on two fronts: Republican defense hawks in the House said a short-term spending plan the party introduced late Tuesday did not devote enough money to the military. Meanwhile, Democrats, whose support would be critical for passage in the Senate, began lining up in opposition amid pressure from immigration activists to use the budget talks as leverage to legalize many young immigrants known as ‘dreamers.’ By Wednesday evening, the short-term bill was on the cusp of failure…

House Republicans unveiled a bill Tuesday that would extend funding for four weeks, allowing time for further negotiations toward deals on long-term spending and immigration. To entice Democrats, GOP leaders attached a six-year extension of the popular Children’s Health Insurance Program, as well as the delay of two unpopular health-care taxes. But few, if any, Democrats have been swayed by the overture.”

Tax bill fails to crack majority. Politico’s Toby Eckert: “Support for the Republican tax plan has ticked up slightly since [Trump] signed it into law, but it still hasn’t drawn the backing of a majority of voters, according to a new POLITICO/Morning Consult poll.

The GOP’s top selling point for the plan recently — a spate of employee bonuses and wage increases — was a wash in the poll. The tracking poll, conducted Jan. 11-16, found that a 45 percent plurality of voters backed the plan based on what they knew about it, up from 42 percent in a similar poll before the legislation was enacted on Dec. 22. Opposition in the new poll came in at 34 percent, down from 39 percent. Twenty percent of respondents were undecided, up from 18 percent. After respondents were told about the major provisions of the bill, support rose to 47 percent, opposition remained at 34 percent.”

ICI reverses itself on fund rules. Politico’s Zachary Warmbrodt: “A prominent investment industry group is lobbying to keep in place major money market mutual fund regulations that it resisted only a few years ago. The issue will come to a head this week as the House Financial Services Committee votes on bipartisan legislation that would roll back regulations intended to prevent the kind of investor runs on money market funds that exacerbated the 2008 financial crisis. The Investment Company Institute, which represents money managers, did not support many of the safeguards the SEC enacted in 2014 but told senior lawmakers in a letter Friday that it now opposes the House bill that would defang the rules.”

GOP Senator to Block Two Trump Nominees Over Trade Concerns

A GOP senator with concerns about President Trump’s trade policy said Wednesday he would block two of the president’s nominees, saying the Trump administration hasn’t been responsive to his concerns on the issue.

WSJ

TRUMP TRACKER

Trump threatens NAFTA. Reuters’s Jeff Mason and David Lawder: “Trump on Wednesday said that terminating the North American Free Trade Agreement would result in the ‘best deal’ to revamp the 24-year-old trade pact with Canada and Mexico in favor of U.S. interests. Lawmakers as well as agricultural and industrial groups have warned Trump not to quit NAFTA, but he said that may be the outcome.

‘We’re renegotiating NAFTA now. We’ll see what happens. I may terminate NAFTA,’ Trump said in an interview with Reuters. ‘A lot of people are going to be unhappy if I terminate NAFTA. A lot of people don’t realize how good it would be to terminate NAFTA because the way you’re going to make the best deal is to terminate NAFTA. But people would like to see me not do that,’ he said. Trump’s comments come less than a week before trade negotiators from the United States, Canada and Mexico meet in Montreal for the sixth of seven scheduled rounds of negotiations to update NAFTA.”

Considers big “fine” against China. More from Reuters: “Trump and his economic adviser Gary Cohn said China had forced U.S. companies to transfer their intellectual property to China as a cost of doing business there. The United States has started a trade investigation into the issue, and Cohn said the United States Trade Representative would be making recommendations about it soon. ‘We have a very big intellectual property potential fine going, which is going to come out soon,’ Trump said in the interview. While Trump did not specify what he meant by a ‘fine’ against China, the 1974 trade law that authorized an investigation into China’s alleged theft of U.S. intellectual property allows him to impose retaliatory tariffs on Chinese goods or other trade sanctions until China changes its policies.”

Fed overhaul hits snags. The Post’s Heather Long: “In less than three weeks, the Federal Reserve, which is widely credited with playing a major role in leading the United States out of the Great Recession, will be under new leadership. Current Fed chair Janet L. Yellen is leaving, and Jerome Powell is President Trump’s nominee to take her place. But Trump’s efforts to remake the Federal Reserve will soon face key tests. The first hurdle will be the Senate. All of Trump’s appointees to the Fed require Senate approval, which has been slow in coming. Trump nominated Powell on Nov. 2, but the Senate didn’t act on his appointment before the end of the year, forcing the president to renominate Powell in 2018… Trump has made his priorities clear for a Powell-led Fed: He wants the stock market to keep soaring and the economy to grow faster. To make that happen, Trump would like interest rates to stay low and fewer restrictions on Wall Street banks. But Powell has been clear to stress the Fed’s independence — from Congress and the White House — in public appearances since his nomination.”

Powell says he’ll hold Deutsche Banke accountable. Bloomberg’s Jesse Hamilton: “Donald Trump’s pick to run the Federal Reserve, responding to a key lawmaker’s concerns over the president’s ties to Deutsche Bank AG, said the agency will hold the German lender to the same standards as the rest of the industry. Fed Governor Jerome Powell answered a letter from Senate Banking Committee member Chris Van Hollen ahead of the panel’s vote on his nomination to become chairman, telling the Maryland Democrat that he’s committed to supervising banks “in an independent manner.” Powell’s nomination was advanced by the committee on Wednesday, with Van Hollen voting in favor.”

Replacing Dudley. Reuters’s Jonathan Spicer: “Unions and groups advocating for retirees, teachers, housing, and workers’ benefits are among those visiting the ornate conference rooms of the Federal Reserve Bank of New York to lobby for a less conventional candidate to serve as its next president. New York Fed directors leading the search for a successor to chief William Dudley, seen as the second most influential policymaker at the U.S. central bank, invited the guests to last week’s meeting to seek their advice. According to attendees and others familiar with the search, the directors are close to a “long list” of candidates and appear set to begin formal interviews within weeks. Until then, directors Sara Horowitz and Glenn Hutchins are taking steps intended to head off any criticisms of opacity and lack of diversity that, in recent years, have stung presidential searches at other district Fed banks. The afternoon meeting with 11 advocacy groups last week marked what one attendee called an unprecedented gesture of public outreach.”

RUSSIA WATCH: 

Bannon agrees to Mueller interview. The Post’s Roz Helderman and Karoun Demirjian: “Former top White House adviser and Trump campaign strategist Stephen K. Bannon has agreed to an interview for special counsel Robert S. Mueller III’s Russia investigation likely to take place later this month, but his lawyer is pushing back against House investigators’ demands for an audience Thursday afternoon, arguing there is ‘no conceivable way’ Bannon will be ready for an interview on the panel’s terms. House Intelligence Committee members K. Michael Conaway (R-Tex.), who is leading the Russia investigation, and Adam B. Schiff (D-Calif.), the panel’s ranking member, sent a letter Wednesday to Bannon’s lawyer, William Burck, insisting that Bannon return to Capitol Hill on Thursday at 2 p.m. to comply with a subpoena they issued Tuesday after Bannon refused to answer questions, citing orders from the White House.”

Probe could collide with midterms. Politico’s Darren Sameulsohn: “Robert Mueller’s Russia probe isn’t ending any time soon, and that’s bad news for President Donald Trump and congressional Republicans already bracing for a possible 2018 Democratic midterm wave. While many Republicans insist the Trump-Russia saga is overblown, they worry headlines about federal indictments, high profile trials—and a potential blockbuster meeting between Mueller and Trump himself—could obscure their positive message ahead of November elections and threaten their House and Senate majorities. In an ominous development for Republicans, a federal judge overseeing the upcoming trial of former Trump campaign manager Paul Manafort and his deputy Rick Gates rejected Mueller’s request to begin in May and instead outlined a scheduled start as soon as September or October — peak election season.”

Wonkblog

Eric Trump’s 401(k) is up by 35 percent, but half of American families don’t even have one

“I didn’t think retirement was possible, and now it is,” he told Hannity.

Christopher Ingraham

POCKET CHANGE

Goldman’s losing money. NYT’s Emily Flitter: “Goldman Sachs used to seem invincible. In the fourth quarter, it lost money. The Wall Street firm on Wednesday reported its first quarterly loss since 2011. It was the result of a one-time $4.4 billion charge stemming from the new tax law. But even ignoring that unusual event, Goldman’s weak core results showed how far the firm has fallen. The bank’s per-share earnings and revenue were both higher compared with a year earlier without the tax charge. But the results announced on Wednesday also revealed a decline in Goldman’s trading might, which has been drained by a potent combination of placid markets and quiet clients. Revenue in its business of buying and selling bonds, commodities and currencies — historically an engine of Goldman’s results — sank to $1 billion in the fourth quarter, half of what it was during the same period in 2016. For the year, net revenue in that business fell 30 percent. The drop sent Goldman’s shares down 3 percent on Wednesday.”

CRYPTO BITS: 

Treasury sees a threat. Bloomberg’s Saleha Mohsin: “The U.S. Treasury views virtual currencies such as Bitcoin as an “evolving threat” and is examining dealers to make sure they aren’t being used to finance illegal activities, the undersecretary for terrorism and financial intelligence said. Treasury is working with the Internal Revenue Service examiners to review 100 registered digital currency providers as well as others that have not registered, Sigal Mandelker said in prepared testimony to the Senate Banking Committee on Wednesday. The department is also working with the Justice Department to pursue money laundering cases.”

Bitcoin falls below $10,000. CNN Money’s Nathaniel Meyersohn: “Bitcoin keeps tumbling. The price of the volatile digital currency briefly dipped below $10,000 around 7 a.m. ET on Wednesday, its lowest level since late November, according to data from CoinDesk.com. Bitcoin has dropped nearly 30% this week and has lost almost half of its $19,343 peak value on December 16. Bitcoin approached its record as it launched on futures exchanges in the United States. But it has since fallen sharply. Other popular cryptocurrencies ethereum and ripple also have posted double-digit losses. One virtual currency exchange, Bitconnect, dived 93% late Monday. It’s unclear why bitcoin has had a rough week. Cryptocurrency is a murky market with frequent swings.”

Ripple founder loses $44 billion. CNBC’s Evelyn Cheng: “The digital currency plunge has wiped billions from the paper fortune of a cryptocurrency billionaire in just a few weeks. Ripple’s XRP coin has fallen 74 percent from an all-time high of $3.84 hit on Jan. 4, erasing $44 billion from the holdings of Chris Larsen, co-founder and executive chairman of Ripple. With XRP trading near $1 Wednesday, Larsen now holds the equivalent of just $15.8 billion, according to CNBC calculations using figures from Forbes. Citing sources at Ripple, Forbes said earlier this month that Larsen has 5.19 billion of XRP and a 17 percent stake in the start-up. Ripple holds 61.3 billion of the 100 billion XRP coins in existence. At XRP’s peak on Jan. 4, Larsen was worth $59.9 billion. That made him one of the five richest people in the U.S. and wealthier than Google’s founders, based on Forbes’ rich list.”

Stock market endangered? CNBC’s Stephanie Landsman: “A sustained sell-off in the cryptocurrency market will hit the stock market where it hurts, one major Wall Street firm warns. It’s a scenario investors are underestimating, according to Wells Fargo Securities’ Christopher Harvey. ‘We see a lot of froth in that market. If and when it comes out, it will spill over to equities,’ the firm’s head of equity strategy said Tuesday… ‘I don’t think people are really ready for that.'”

Goldman’s No. 2 Allegedly Swindled Out of $1.2 Million of Wine by Assistant

A former personal assistant to Goldman Sachs Group Inc. Co-President David Solomon faces federal charges that he stole more than $1.2 million of rare wine from his boss.

Bloomberg

BlackRock Lets Its Hair Down by Offering Unlimited Time Off

BlackRock Inc., taking a page from Silicon Valley where ping-pong tables and on-site gyms are common perks, is offering unlimited time off.

Bloomberg

THE REGULATORS

Fannie, Freddie regulator: Take them private. Bloomberg’s Joe Light: “Fannie Mae and Freddie Mac’s regulator is throwing its voice into the debate about what to do with the two companies at the center of the U.S. mortgage system. In a proposal obtained by Bloomberg News, Federal Housing Finance Agency Director Mel Watt wrote that he and agency staff believe the mortgage market should be supported by shareholder-owned utilities with regulated rates of return and an explicit government guarantee of mortgage bonds. Watt sent the document, titled ‘Federal Housing Finance Agency Perspectives on Housing Finance Reform’ along with a letter dated Tuesday to Senate Banking Chairman Michael Crapo, an Idaho Republican, and Senator Sherrod Brown of Ohio, the panel’s top Democrat. By sharing the perspectives now, ‘we seek to provide our views independently and transparently to those who have requested them while continuing to provide technical assistance to the committee and its members on other proposals that may be introduced,’ Watt wrote.”

Mulvaney moves to overhaul CFPB. LA Times’s Jim Puzzanghera: “On Wednesday, Mulvaney announced he was launching a review of the entire operation of the consumer watchdog agency created in the wake of the 2008 financial crisis. The bureau has provided Americans with billions of dollars in refunds and debt relief, often at banks’ expense. Republicans and many financial firms have complained that it has been too aggressive… The bureau said it would formally request public input about whether it is ‘fulfilling its proper and appropriate functions to best protect consumers.’ It will seek comment on its enforcement of consumer protection laws, drafting of regulations, oversight of financial firms, monitoring of the marketplace and public education. The first function to be examined: how the bureau demands information from financial firms during investigations.”

Asks financial firms for complaints. The Hill’s Sylvan Lane: The CFPB “is asking the firms its regulates to submit complaints about the agency’s core actions. The CFPB announced Wednesday that the agency will ask ‘for evidence to ensure the bureau is fulfilling its proper and appropriate functions to best protect consumers.’ The request is the latest step forward in acting Director Mick Mulvaney’s effort to draw back the bureau’s aggressive regulatory and enforcement actions. Mulvaney said in a Wednesday statement that it’s ‘natural for the Bureau to critically examine its policies and practices to ensure they align with the Bureau’s statutory mandate.'”

Cordray blasts. More from The Hill: “The former director of the… CFPB blasted his successor in a series of tweets Wednesday for attempting to unwind the agency’s rule on payday lending. Richard Cordray, the bureau’s first director, panned the CFPB’s plans as ‘truly shameful action by the interim pseudo-leaders’ of the bureau.” … ‘Let’s see the case be made, with full debate, on whether the zealots and toadies can justify repealing a rule to protect consumers against extortionate payday loans,’ Cordray continued.”

Hoenig criticizes banking bill. Reuters’s Pete Schroeder: “A top official at a leading U.S. bank regulator is airing concerns about a Senate bill that would ease banking rules, saying parts of it could “significantly weaken” critical protections. Thomas Hoenig, the vice chair of the Federal Deposit Insurance Corporation, warned lawmakers that efforts to ease new rules around leverage and proprietary trading could encourage banks to take on excessive amounts of risk, and put the stability of the financial system at risk. Hoenig said he was broadly supportive of the bill primarily aimed at easing rules for smaller banks, crafted by Republicans and moderate Democrats on the Senate Banking Committee, but has concerns about a pair of key sections. In particular, Hoenig warned Congress’s attempts to relax burdens around the Volcker Rule and the supplementary leverage ratio would do more harm than good.”

SCOTUS considers overtime rule. Washington Examiner’s Sean Higgins: “Looking under the hood and figuring out what is wrong is a popular cliche, but on Wednesday, the Supreme Court examined whether the workers who actually do that should be guaranteed overtime pay. The justices heard oral arguments in Encino Motorcars v. Navarro, a case involving whether the Fair Labor Standards Act’s overtime rules extend to “service advisers” at auto dealerships. It is the second time it has heard the case. Service advisers are the dealership employees who tell customers what repairs or other work their cars need. Congress exempted them from the overtime regulation in 1966, but in 2011, the Obama administration changed the rule and said service advisers should be able to claim overtime pay.”

New late trading method gets SEC ok. Bloomberg’s Annie Massa: “Cboe Global Markets Inc. got regulators’ permission to challenge its chief rivals in U.S. equities, the New York Stock Exchange and Nasdaq Stock Market, during their crucial end-of-day auctions. The U.S. Securities and Exchange Commission will let the company begin Cboe Market Close, which the company says is a lower-cost way to carry out certain closing trades that may otherwise be completed at markets owned by NYSE Group and Nasdaq Inc. NYSE and Nasdaq had argued against approval, saying Cboe’s offering could tarnish the critical role played by auctions that set closing levels for thousands of U.S. stocks. NYSE and Nasdaq both stand to lose volume from any mechanism threatening their closing auctions. Cboe countered that their concerns were overblown, since some brokers already provide a similar function for customers. The SEC came down in favor of Cboe, according to a filing Wednesday.”

CHART TOPPER

From Axios’s Chris Canipe and Steve LeVine: “Manufacturing jobs are up sharply from the recession:”

DAYBOOK

Today

  • The American Enterprise Institute holds an event on “New thinking about poverty and economic mobility.”
  • The Cato Institute Policy Perspectives 2018 hosts a discussion on “A Fiscal Rule to Tame Federal Debt?”

Coming Up

  • The SEC-NYU Dialogue on Securities Markets – Shareholder Engagement will be held in New York on Friday. 

THE FUNNIES

From The Post’s Tom Toles: 

BULL SESSION

Sen. Lindsey Graham tells lawmakers: “Stop the s-show and grow up:” 

Here’s an ongoing list of White House staff, Cabinet members, and federal appointees who quit or were fired under Trump:

Here’s how tech companies are using algorithms to prevent extremist content:

Stephen Colbert talks about how “Fire and Fury” author Michael Wolff got access to the White House: 

Apple states it’ll pay $38bn in foreign cash taxes and make 20,000 US jobs

  • Tech giant states it’ll repatriate some overseas cash holdings
  • Apple has faced sustained critique for tax evasion policies

Apple chief executive Tim Cook said: ‘We have a deep sense of responsibility to give back to our country.’ Apple leader Tim Prepare stated: ‘We possess a deep feeling of responsibility to provide to our country.’ Photograph: John Forces/APApple stated on Wednesday it might create a one-time payment of $38bn to repatriate a number of its vast overseas cash holdings.

the Wall Street Journal that Apple’s ceo, Tim Prepare, had guaranteed to construct three “big, big, big” plants in america included in attorney at law about tax reform.

The organization may be the latest to announce a 1-off payment because of recent changes to all of us tax law, which enables companies to pay for a levy of 15.5% on overseas cash holdings which are repatriated towards the US.

Commenting around the company’s plans, Prepare stated: “We possess a deep feeling of responsibility to provide to our country and those who help to make our success possible.”

Apple hasn’t specified the amount of its cash pile it promises to repatriate.

In 2013, a Senate committee accused Apple of utilizing a “highly questionable” web of offshore vehicles to prevent having to pay taxes in america. Senator John McCain stated his constituents were “mad as hell” to understand the world’s greatest company was having to pay tax rates which were sometimes less than 1%.

“I’ve never witnessed anything such as this,” he stated.

Based on the Paradise Papers, a leak of 13.4m files from offshore providers and tax havens’ company registries printed through the Protector along with other worldwide media, within the wake of america and EU’s criticisms Apple secretly shifted areas of its empire to Jersey included in an intricate rearrangement to help keep its low tax rates.

In December, the Irish government was made to start collecting $15bn the Eu states Apple has unfairly prevented in taxes. Apple is fighting the choice.

Apple to Pay $38 Billion in Taxes on Offshore Cash: DealBook Briefing:

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Good Wednesday. Here’s what we’re watching:

• Apple will pay $38 billion in repatriation tax.

• Could antitrust law fell the tech giants?

•Bank of America reported $2.4 billion in fourth-quarter profit, as well as a $2.9 billion charge tied to the new tax law.

• Goldman Sachs reported a $1.9 billion loss, and a $4.4 billion tax charge.

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Apple will pay $38 billion in repatriation tax.

The tech giant said it will pay $38 billion in taxes to repatriate its overseas cash because of the new law.

As of late September, Apple held about $252 billion in cash offshore.

Under the new tax law, foreign earnings sitting offshore would be considered to be automatically repatriated and taxed at reduced rates.

The iPhone maker also said it expects to invest over $30 billion in capital expenditures in the United States over the next five years.

Could antitrust law fell the tech giants?

That’s the provocative question posed by Greg Ip of the WSJ. And it reflects governments’ growing wariness toward the tech industry.

Google, Amazon and Facebook aren’t like the Standard Oil or AT&T of old, gouging consumers on price. (Indeed, many of their services are free.) But if the question is “Are consumers better off?” then could there be an opening for regulatory action?

More from Mr. Ip:

If market dominance means fewer competitors and less innovation, consumers will be worse off than if those companies had been restrained. “The impact on innovation can be the most important competitive effect” in an antitrust case, says Fiona Scott Morton, a Yale University economist who served in the Justice Department’s Antitrust Division under Barack Obama.

Where tech has support: In its efforts to keep net neutrality regulations, with a lawsuit against the F.C.C. by 22 state attorneys general and a bill by Senate Democrats to undo the repeal using the Congressional Review Act.

Goldman posts first quarterly loss in six years.

Goldman once seemed invincible. Its trading business was a profit machine.

This morning it posted a quarterly loss in part because of the poor performance in its trading unit.

The numbers:

• $1.9 billion. Goldman’s fourth-quarter loss.

• $4.4 billion. The charge Goldman took related to the new tax law, which wiped out nearly half of Goldman’s earnings for the year, according to the WSJ.

• $5.68. The Wall Street firm’s profit per share excluding the tax-related charge, beating the consensus estimate of $4.90 from Wall Street analysts.

•$7.8 billion. Goldman’s revenue for the quarter, down 4 percent. Goldman is the only big bank to report a decline in revenue so far.

• $2.37 billion. Goldman’s trading revenue for the fourth quarter, down 34 percent from a year ago. That was the steepest decline of any of banks reporting so far. Citigroup, JPMorgan and Bank of America have reported declines in trading revenue of 19 percent, 17 percent and 9 percent.

• $1 billion. Goldman’s revenue from buying and selling bonds, commodities and currencies, half of what it generated a year ago. To put that in perspective: Goldman’s fixed-income division at its peak churned out nearly a billion dollars every two weeks.

In unrelated Goldman news…

Federal prosecutors in Manhattan unsealed an indictment charging Nicolas De-Meyer, 40, with stealing $1.2 million worth of rare wine from a former employer. The former employer in question was Mr. Solomon, who employed Mr. De-Meyer as a personal assistant, according to two sources familiar with the matter.

According to the indictment, the wine was stolen from around October 2014 to around October 2016, when Mr. De-Meyer had been asked to transport it from his former employer’s Manhattan apartment to his wine cellar in East Hampton, N.Y.

Mr. De-Meyer was arrested in Los Angeles on Tuesday, according to a spokesman for the Los Angeles federal prosecutor’s office. He could not immediately be reached for comment.

“The theft was discovered in the fall of 2016 and reported to law enforcement at that time,” a Goldman spokesman said.

Excluding tax hit, BofA posts biggest profit in more than a decade.

Bank of America reported $2.4 billion in fourth-quarter profit, after taking a $2.9 billion charge tied to the new tax law.

The numbers:

• $5.3 billion, or 47 cents a share. BofA’s profit in the fourth quarter excluding the tax-related charge. Analysts had expected the bank to report earnings of 44 cents per share.

• $21.1 billion. BofA’s earnings for 2017, excluding the tax-related charge. That matches its biggest annual profit since 2006.

•$20.4 billion. The bank’s revenue for the fourth quarter, up from $19.99 billion a year ago.

•$2.66 billion. BofA’s fourth-quarter trading revenue, down about 9 percent from a year ago.

• $11.46 billion. The bank’s net-interest income, up 11 percent.

CreditTimothy A. Clary/Agence France-Presse — Getty Images

The new tax code and banks: short-term pain, long-term gain

Let’s recount the hits that U.S. banks took from the tax overhaul:

• Citigroup: $22 billion

• JPMorgan Chase: $2.4 billion

• Goldman Sachs: $4.4 billion

We’ll ignore Wells Fargo for now (it gained). The bigger point is that, thanks to lower corporate rates and preferential treatment for pass-through entities, financial institutions are some of the new code’s biggest winners.

More from Jim Tankersley of the NYT:

“The good news is that tax reform has produced both current and future benefits for our shareholders,” PNC’s president and chief executive, Bill Demchak, told analysts on Friday. He said the bank’s preference would be to divert the tax savings “toward dividend” — which is to say, to return a higher dividend to shareholders.

CreditRichard Drew/Associated Press

G.E.’s problems have investors thinking ‘breakup’

The conglomerate itself isn’t planning on going that far just yet.

Here’s John Flannery, its chief, on a conference call yesterday:

“We are looking aggressively at the best structure or structures for our portfolio to maximize the potential of our businesses. Our results, over the past several years, including 2017 and the insurance charge, only further my belief that we need to continue to move with purpose to reshape G.E.”

The context

Mr. Flannery didn’t say anything out of line with his past remarks. It’s just that he said it as G.E. announced an unrelated $6.2 billion charge connected to its legacy insurance portfolio.

Other conglomerates, from Honeywell to United Technologies to Tyco, have explored restructuring to varying degrees, as Wall Street analysts question the viability of the model.

G.E. and its advisers are still thinking about how to reshape the 125-year-old group, whose complexity may mask yet more problems. The company promises an update in spring, and is unlikely to announce something that only fiddles around the edges. But don’t expect plans for it to become three or four fully separate companies.

Critics demand more boldness

• Lex writes, “Once a paragon of management acumen, it is now a rolling train wreck of unexpected and expensive blunders.” (FT)

• Brook Sutherland writes, “The reasons for keeping G.E. together — shared resources and technology — look increasingly tenuous.” (Gadfly)

• Justin Lahart and Spencer Jakab write, “The problem is that G.E.’s parts might be worth a lot less than even the company’s sharply diminished value today.” (Heard on the Street)

CreditT.J. Kirkpatrick for The New York Times

Government shutdown forecast: cloudy

The deadline: 12:01 a.m. Eastern on Saturday

The issues

• Immigration, of course: President Trump still insists on funding for a border wall and Democrats are fuming over his comments on African countries.

• Republicans are weighing whether to use funding for the Children’s Health Insurance Program as a carrot — or stick — for Democrats to join a stopgap funding measure.

The state of play

Red-state Democrats are uneasy about allowing a shutdown in an election year. Some Republicans are irked by a stream of temporary funding resolutions, rather than a full agreement that would permit more military spending.

House Speaker Paul Ryan’s proposal for a continuing resolution — which includes delays to several health care taxes in addition to CHIP funding — has support among many, but not all, Republicans. It has little among House Democrats.

The politics flyaround

• Steve Bannon has been subpoenaed by both Robert Mueller and the House Intelligence Committee. (NYT)

• The C.F.P.B. will reconsider rules on high-interest payday loans, in a potential win for the industry. (WSJ)

• N.Y. Governor Andrew Cuomo unveiled a state budget meant to counter the tax-code changes that hurt high-tax states: “Washington hit a button and launched an economic missile and it says ‘New York’ on it, and it’s headed our way.” (NYT)

• Support for the new tax code has grown, according to a SurveyMonkey poll. (NYT)

• G.M.’s chief, Mary Barra, urged Mr. Trump to be cautious about withdrawing from Nafta. (NYT)

• How Michael Wolff got into the White House. (Bloomberg)

CreditPhoto illustration by Delcan & Company

Forget the Bitcoin frenzy

The biggest thing about virtual currencies isn’t how much their prices rise (or fall). It’s the technology that makes them work, argues Steven Johnson in the NYT Magazine.

More from Mr. Johnson:

What Nakamoto ushered into the world was a way of agreeing on the contents of a database without anyone being “in charge” of the database, and a way of compensating people for helping make that database more valuable, without those people being on an official payroll or owning shares in a corporate entity.

We’ll count him as a skeptic: Dick Kovacevich, the former Wells Fargo C.E.O., told CNBC that he thinks Bitcoin is “a pyramid scheme” that “makes no sense.”

Beware cryptoheists: North Korea looks to be using the same malware found in the Sony Pictures hack and the Wannacry assault against digital currency investors.

Virtual currency quote of the day, from Bloomberg:

“I have a Zen philosophy that you just go with the flow,” said George Tasick, a part-time cryptocurrency trader in Hong Kong whose day job is making fireworks. “I’m not really changing my behavior in any way.”

The issues in selling the Weinstein Company

Issue one: Some potential buyers may want to pick up the troubled studio through the bankruptcy process, to cleanse it of legal liabilities.

Issue two: Advocates for women who have brought allegations against Harvey Weinstein worry that could deny them justice.

More from Jonathan Randles and Peg Brickley of the WSJ:

A Chapter 11 filing would halt lawsuits brought by women against the studio, forcing them to line up with low-ranking creditors to await their fate. Once the money from a sale comes in, bankruptcy law dictates who gets paid first — the banks that kept Weinstein Co. in business — and who gets paid last — women claiming that Weinstein Co. was part of Mr. Weinstein’s pattern of alleged sexual misconduct.

But it’s complicated. A bankruptcy filing could provide legal structures for Mr. Weinstein’s accusers, like a judge’s supervision of sales and settlements.

A suitor from the past: Among the bidders is the previous studio founded by the Weinstein brothers, Miramax, according to Bloomberg.

What about RICO? DealBook’s White Collar Watch takes a look at using the racketeering law against Mr. Weinstein and his company:

RICO lawsuits are tempting. They allow a plaintiff to sue a variety of defendants by claiming that they acted together and seek an award of triple damages, a bonanza in some business disputes that can run into millions of dollars. But these cases should also come with a bright red warning sign: Tread lightly or see your case thrown out of court before it even gets started.

CreditTony Cenicola/The New York Times

The M. & A. flyaround

• Nestlé finally struck a deal to sell its U.S. confectionary business, with Ferrero paying $2.8 billion. Gadfly asks if Hershey should jump on the deal bandwagon. (NYT, Gadfly)

• Qualcomm had a busy deal day yesterday. It made its case against Broadcom’s $105 billion hostile bid, as its own $38.5 billion offer for NXP Semiconductor was rejected by the money manager Ramius. (Qualcomm, Ramius)

• Silver Lake put up a hefty $1.7 billion equity check as part of its $3.5 billion bid for Blackhawk Network. (NYT)

• Celgene is in talks to buy Juno Therapeutics, maker of a cancer treatment, according to unidentified people. (WSJ)

The Speed Read

• Bill Miller, the value investor who beat the S. & P. 500 15 years running (and whose faith in banks was mocked in the movie “The Big Short”), has donated $75 million to the philosophy department of Johns Hopkins University. (NYT)

• YouTube said it had altered the threshold at which videos could accept advertisements and pledged more oversight of top-tier videos. It’s said similar things before. (NYT)

• Amazon has advertised for an expert in health privacy regulations, suggesting it plans to work with outside partners that manage personal health information. (CNBC)

• A federal judge indicated he would approve a $290 million settlement by Pershing Square Capital Management and Valeant Pharmaceuticals with Allergan shareholders who accused them of profiting improperly from a failed takeover bid. (WSJ)

• Informa, which owns the shipping journal Lloyd’s List, is in talks to buy the exhibitions and events company UBM, creating a company worth more than 9 billion pounds, or about $12.4 billion. (FT)

• The National Retail Federation’s annual trade show is starting to look more like CES. (NYT)

• Joseph A. Rice, who fought a hostile takeover of the Irving Bank Corporation as its chairman and chief executive in the 1980s, died on Jan. 8 at 93. (NYT)

• Greenlight Capital’s David Einhorn is betting on Twitter, saying revenue should grow after user-experience improvements. (Bloomberg)

• Melrose Industries, which specializes in turning around manufacturers, has made a hostile public bid worth about $10 billion for GKN, a British maker of aerospace and automotive parts that could face trading issues as Brexit looms. (Bloomberg)

Want this in your own email inbox? Here’s the sign-up.

You can find live updates throughout the day at nytimes.com/dealbook.

We’d love your feedback. Please email thoughts and suggestions to [email protected].

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Greater than 20 states sue FCC over its internet neutrality decision

the states’ suit, stated the FCC’s repeal from the internet neutrality rules was “arbitrary” and “capricious” and violates federal law.

The suit comes only a day after Democrats within the Senate said they were inching nearer to the votes required for a legislative measure to assist overturn the FCC’s rule change. Their resolution aims to turn back FCC’s decision and block the company from passing similar measures later on. It’s received the support of 49 Democratic senators in addition to one Republican, Sen. Susan Collins of Maine.

Tuesday’s lawsuits grabbed with that momentum and represent another avenue for supporters from the internet neutrality rules to undo the repeal.

The internet neutrality rules were dismantled inside a December election brought by Republican FCC Chairman Ajit Pai. Republicans had contended the existing rules stymied industry investment, while Democrats maintained they offered like a vital consumer protection.

In Tuesday’s filing, the attorneys general requested the U.S. Court of Appeals for that D.C. Circuit evaluate the FCC’s new policy to find out whether it’s illegal and unconstitutional.

Schneiderman contended inside a statement the FCC unsuccessful to warrant its internet neutrality reversal while dismissing proof of injury to consumers and companies. Also, he claimed the FCC erroneously and unreasonably construed the Communications Act, the government law in the centre from the internet neutrality rules. Additionally, Pai’s proceed to repeal the guidelines incorporated an illegal preemption of condition and native rules, Schneiderman stated.

The FCC is anticipated to protect its decision by pointing to prior cases where the agency had altered its mind regarding how to regulate companies under its jurisdiction. Lawyers representing the broadband industry have stated the FCC have a strong situation whether it can demonstrate solid reasoning.

The FCC declined to comment.

The FCC will get a “significant quantity of discretion” to change directions on policy, stated Matthew Brill, someone in the firm Latham and Watkins who represents NCTA — The Web and tv Association, a significant cable industry trade group, inside a recent interview.

“When a legal court ruled [before],” stated Brill, “it emphasized it had not been assessing the knowledge of this policy — it had been just upholding the agency’s decision-making underneath the broad leeway it will get.”

Before the FCC’s decision is printed within the Federal Register — a procedure that may take days or weeks — appeals courts may reject any lawsuits posted on internet neutrality, for the reason that it’s too early to file for. But individuals filing the suits Tuesday stated they issued their challenges to make sure their suits are incorporated within the judicial lottery, the procedure that determines which court will hear the situation.

In filing using the D.C. Circuit, the condition attorneys general aspire to “win” the lottery by getting that court hear the situation. It had been the D.C. Circuit that upheld the FCC’s internet neutrality rules in 2016, handing the telecom industry a significant defeat.

Outdoors defenders from the FCC, meanwhile, could launch their very own court petition to achieve the rules reviewed. Doing this allows industry groups to try and win the judicial lottery by getting the situation heard inside a court that’s considered friendlier to business interests.

All 22 attorneys general indexed by the suit are Democrats. Additionally towards the District of Columbia and New You are able to, California, Virginia, Illinois, Pennsylvania, Connecticut, Delaware, Hawaii, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Boise State Broncos, New York, Or, Rhode Island, Vermont and Washington are a part of the suit.

Other supporters from the internet neutrality rules, such as the New America Foundation, Mozilla, and consumer group Public Understanding, also filed suits within the same court Tuesday, out of a good amount of caution.

“We filed in case a court determines the right date is today,” stated Mozilla inside a blog publish. “The FCC or perhaps a court may accept this order or require us yet others to refile later on.”

Find out more:

The Senate’s push to overrule the FCC on internet neutrality presently has 50 votes, Democrats say

Internet neutrality activists are celebrating as Democratic senators obvious key hurdle to voting from the FCC

Plastic Valley’s greatest lobbying group states it’ll support any legal actions from the FCC’s decision

FCC chairman cancels CES trip, purportedly over security concerns

Flurry of Lawsuits Fight Repeal of Internet Neutrality

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WASHINGTON — The legal combat the government Communications Commission’s recent repeal of so-known as internet neutrality rules started on Tuesday, having a flurry of lawsuits filed to bar the agency’s action.

One suit, filed by 21 condition attorneys general, stated the agency’s actions broke federal law. The commission’s rollback of internet neutrality rules were “arbitrary and capricious,” the attorneys general stated, along with a turnaround of the agency’s longstanding policy to avoid isps from blocking or charging websites for faster delivery of happy to consumers.

Mozilla, the nonprofit organization behind the Firefox internet browser, stated the brand new F.C.C. rules would harm internet marketers who could should pay charges for faster delivery of the content and services to consumers. An identical argument is made by another group that filed a suit, outdoors Technology Institute, part of a liberal think tank, the brand new America Foundation.

Suits were also filed by Free Press and Public Understanding, two public interest groups. Four from the suits were filed within the U . s . States Court of Appeals for that District of Columbia Circuit. The Disposable Press suit was filed within the U . s . States Court of Appeals for that First Circuit.

“The repeal of internet neutrality would turn isps into gatekeepers — letting them put profits over consumers while controlling what we should see, what we should do, and just what we are saying online,” stated Eric T. Schneiderman, the lawyer general of recent You are able to, who brought the suit through the condition officials.

The lawsuits have lengthy been expected. The filings , petitions to start the suits, start what’s likely to be a long legal and political debate about the way forward for internet policy.

Democrats have rallied to battle the F.C.C.’s repeal of internet neutrality, that was passed inside a 3-to-2 party line election in December. The company is brought by Ajit Pai, a Republican nominated by President Trump. All the attorneys general active in the suit filed are Democrats.

The lawsuits possess the support from the Internet Association, a trade group representing big tech firms including Google and Netflix, giving the different legal challenges financial support and also the clout of companies. The businesses say isps possess the incentive to bar and throttle their sites to be able to garner extra charges.

The F.C.C. declined to discuss the suits. However it did indicate part of its order that prohibits legal challenges before the new rules are posted in to the federal registry. The F.C.C. is anticipated to go in the brand new rules in to the federal registry within the future or days.

America stated they might file a petition towards the U . s . States Court of Appeals, beginning the procedure to find out which court would hear the situation. That’s the action the attorneys general, in addition to Mozilla and also the Open Technology Institute, required .

America that signed to the suit include California, Kentucky, Maryland, Massachusetts and Or, along with the District of Columbia. Xavier Becerra, the California attorney general, stated the choice to roll back the agency’s promise of broadband like a utility-like service will harm consumers.

“Internet access is really a utility — much like water and electricity,” Mr. Becerra stated inside a statement. “And every consumer includes a to access online content without interference or manipulation by their isp.”

Inside a release, Mr. Schneiderman stated the agency’s roll back disregarded an eye on evidence that online sites providers’ could harm consumers without rules. An identical argument is made by Mozilla.

“Ending internet neutrality could finish the web as you may know it,” stated Denelle Dixon, Mozilla’s chief business and legal officer inside a blog publish. “That’s why we’re dedicated to fighting an order. Particularly, we filed our petition today because we feel the current F.C.C. decision violates both federal law in addition to harms online users and innovators.”

The problem of internet neutrality continues to be fought against in the court challenges two times before previously decade. The guidelines adopted in 2015, which set rules that sites couldn’t be blocked or throttled, were upheld through the U . s . States Court of Appeals in 2016 after legal challenges by telecom companies. The F.C.C. election in December ended up being to roll back individuals 2015 rules.

The brand new lawsuits are among several efforts to revive internet neutrality rules. On Tuesday, Senate Democrats announced these were one supporter from winning a election to revive internet neutrality rules. All 49 people of the caucus, in addition to one Republican, have signed onto an answer to overturn the guidelines. An identical effort initiated in the home has got the support of 80 people.

Success by people of Congress is not likely, especially in the House, where Speaker Paul D. Ryan, Republican of Wisconsin, would need to accept bring the resolution a election. Obama can also get to accept the resolutions, when they were passed, however the White-colored House has expressed its support from the rollback of internet neutrality rules.

A version want to know , seems in publications on , on-page B2 from the New You are able to edition using the headline: Flurry of Lawsuits Filed in Internet Neutrality Fight. Order Reprints Today’s Paper Subscribe

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Inside a shift, Republicans may increase funding for IRS considering new tax law

writing new withholding tables for companies and workers to interpreting the interaction of the complex federal law having a patchwork of condition and native taxes in most 50 states. As well as the various queries from taxpayers which will result.

The difficulties were underscored Wednesday inside a report through the national citizen advocate, a completely independent official inside the IRS, that noted early estimates suggest the company needs an additional $495 million in 2018 and 2019 to satisfy the brand new obligations produced through the Republican tax law.

Nina E. Olson, the citizen advocate, stated inside a statement as she released her are convinced that funding cuts already “have made the government not able to supply acceptable amounts of citizen service.” The agency “may have its hands full in applying the brand new law,” Olson stated. “The IRS have a large amount of issues to exercise, and taxpayers have a large amount of questions.”

The Government received $11.2 billion in funding in 2017, that was a decrease of greater than $900 million since 2010. The agency has lost the same as around 18,000 full-time positions for the reason that time, including some 3,000 within the citizen services division and 4,000 within the enforcement division. The amount of a financial budget boost the IRS could easily get for 2018 can’t be determined until Congress resolves a bigger ongoing dispute about government-wide spending levels.

But regardless of the GOP’s generally anti-tax stance, and it is suspicion of federal bureaucracies, Republicans have every incentive to make certain the complex tax law rolls out easily. As well as for that, they’ll require a functional IRS, which even several conservatives acknowledged will need a bigger budget.

“We wish to make certain that people obtain the new law implemented well, and i believe they’re clamoring for help,” stated Sen. John Thune (R-S.D.), no. 3 Senate Republican. “So I believe when the demands are reasonable, there’d be some sympathy for making certain this new law will get implemented in the right way.”

Repetition. Dave Brat (R-Veterans administration.), part of the conservative House Freedom Caucus, which clashed strenuously using the IRS underneath the Federal government, stated, “I’m available to it if it is rational and is sensible. There’s lots of work. I would like individuals to begin to see the greatest paycheck they are able to get.”

For a long time, pleas for additional IRS funding have fallen on deaf ears on Capitol Hill, where Republicans rather centered on debate within the agency’s targeting of tax-exempt conservative groups. That brought to aggressive oversight proceedings in the home and, ultimately, to some drive through the Freedom Caucus to impeach former commissioner John Koskinen. That effort, that was not based on House Republicans leaders, finally led to a home floor election in December 2016 referring the impeachment resolution to committee.

While Republicans are actually ready to support more funding for that IRS, most were hardly supplying a full-throated embrace.

“We have to reform the government because it’s been much more of an foe towards the American citizen than it’s been an aid,” Senate Majority Whip John Cornyn (R-Tex.) told reporters Wednesday. “But I’m concerned that they’re unable to get the job done and never [maintain] their computer to safeguard personal financial data by taxpayers and so on.”

Prior to the tax law’s passage, the government expected so that you can answer only 60 % from the routed calls in the 100 million calls it receives from taxpayers — an encumbrance likely to increase underneath the new law. Since 2014, the company has stopped answering anything beyond “basic” questions from taxpayers during filing season.

Republicans have stated their tax law will streamline and simplify the U.S. tax code, partly by growing the amount of Americans who claim the conventional deduction on their own earnings taxes. They have claimed frequently that lots of taxpayers could file their taxes on the postcard. However the new law already produced confusion about its implementation at the end of December, when taxpayers in a number of states rushed to try and prepay their 2018 property taxes hoping of staying away from the brand new cap around the condition and native tax break. That uncertainty brought the government to place out guidelines about who could and may not intend on deducting their home taxes in advance.

Repetition. Richard E. Neal (D-Mass.), top Democrat around the Methods Committee, stated the time had come for Republicans to prevent criticizing the government and begin supplying the company the funding it requires.

“Because of the argument that people would make use of a postcard for that new tax filing system, I believe more likely we’ll be utilising a commercial to describe it,” Neal stated. “This technique will probably be as complex because the last system. And I think you’re have to the government to sort it.”

More challenges abound within the next several several weeks for that IRS, that is brought by an acting commissioner in lack of a lasting substitute for Koskinen. The tax law cut the mortgage interest deduction from $a million to $750,000, but offers an exception for many loans closed after 12 ,. 15, 2017. The IRS does not need dates of mortgage closings. Experts cautioned prior to the law’s passage that could trigger confusion within the tax system.

“Making massive changes somewhere by having an unconscionably short lead time is really a occur,” authored the American Payroll Association inside a letter to Congress shortly prior to the law passed.

The citizen advocate report noted that previous tax legislation also caused big spikes within the agency’s workload. The 1986 tax overhaul signed by President Taxation, for example, brought the government to employ yet another 1,300 staff people while increasing the amount of telephone calls it clarified by 30 %. The 2008 stimulus bill motivated a 125 percent rise in the amount of incoming calls. An identical impact is anticipated in the Republicans tax law. During the period of 2017, however, the government lost 6,801 permanent staffers.

Internet neutrality activists celebrate as Democratic senators obvious key hurdle to voting from the FCC

voted recently to deregulate Internet providers through the elimination of the agency’s internet neutrality rules, opponents from the decision vowed to fight it in Congress as well as in court. Now, individuals who’re pushing for that FCC’s election to become overturned say they have won a preliminary victory.

Senate Democrats brought by Erectile dysfunction Markey (D-Mass.) have finally accumulated 40 co-sponsors for a congressional measure that, if effective, would invalidate the FCC’s recent election. By doing this, the lawmakers passed a vital 30-member threshold letting them make use of the Congressional Review Act to seek to overrule the FCC.

Clearing that hurdle makes way for any full election around the Senate floor — potentially forcing every senator to speculate around the FCC’s rollback from the internet neutrality rules. (The guidelines, passed within Democratic FCC in 2015, banned Internet providers from blocking websites, slowing others, or accelerating apps and services that pay extra cash for that privilege.)

“Congress has the ability with the Congressional Review Act to overturn the FCC’s actions,” Markey stated inside a news conference Tuesday. “We will expend the approaching several weeks building our grass-roots support for that CRA.”

It wasn’t immediately obvious Tuesday whenever a election might occur some policy analysts speculate it could occur over the summer time. However the resolution faces lengthy odds. Even when it passes the Senate having a simple majority, it has to obvious the home and become signed by President Trump. Trump supported the FCC’s bid to undo the internet neutrality rules, which makes it unlikely he’d sign a bit of legislation undercutting the move.

Trump isn’t any stranger towards the CRA he’s the very first president to sign greater than a dozen such resolutions after taking office, mostly targeting Obama-era actions. For instance, this past year Trump signed an answer underneath the CRA made to repeal the FCC’s Internet privacy rules for Internet providers. Individuals rules — that are dissimilar to the internet neutrality rules — searched for to avoid companies for example AT&T and Verizon by using customer data to promote purposes without sufficient consumer consent. The broadband industry contended the rules were stifling and unfair, considering that Internet companies for example Google and Facebook don’t face such limitations.

Regardless of the hard road ahead, FCC critics see the coming several weeks being an chance to show internet neutrality right into a campaign problem for the midterm elections.

“Lawmakers from both sides cannot hide using their constituents about this issue,” stated Fight for future years, an online advocacy organization. “Any lawmaker foolish enough to be the incorrect side in history by voting from the free and open Internet will be sorry come Election Day.”

The FCC did not immediately react to a request comment.

Bannon Needs Breitbart. Does Breitbart Need Bannon?

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Within the days after Stephen K. Bannon’s ouster in the Trump White-colored House last August, his flagship organization Breitbart News verged, at occasions, on the Bannon vanity project.

Ads online promoted fidget spinners emblazoned with Mr. Bannon’s likeness ($7.95 each) along with a 212-page hagiography — “Bannon: Always the Digital rebel,” by Keith Koffler. Breitbart authors were dispatched to Alabama to improve the Senate bid of Mr. Bannon’s preferred candidate, Roy S. Moore.

But because Mr. Moore’s loss recently recommended, Mr. Bannon’s influence only stretches to date — a lesson that he’s now confronting in humbling terms, as his leadership of Breitbart, perhaps probably the most influential right-wing website, is all of a sudden doubtful.

Mr. Bannon’s thought that their own cult of personality could satisfy Breitbart readers has encounter the fallout from his brazen criticisms of President Trump, printed by Michael Wolff within the book “Fire and Rage: Within the Trump White-colored House.”

Once seen as an champion of Trumpism, Mr. Bannon continues to be reduced to “Sloppy Steve,” as Mr. Trump phrased it, using the White-colored House advocating Breitbart to think about removing Mr. Bannon. The quoted remarks have roiled not only people of his pro-Trump Breitbart audience, but additionally a significant patron, the heiress Rebekah Mercer, who controls a minority stake within the site, where Mr. Bannon can serve as executive chairman.

The issue now: Does Mr. Bannon need Breitbart News greater than Breitbart News needs Mr. Bannon?

“People who visit Breitbart don’t visit everyday simply because they provide a damn about Steve Bannon,” stated Kurt Bardella, an old Breitbart spokesman. “We might be searching in a ” new world ” order here when it comes to who’ll occupy just Jesse Trump’s preferred conservative platform.”

Mr. Bannon seems to become attempting to remain at Breitbart. His penance started on Sunday, having a public statement by which he tried to distance themself from his portrayal in Mr. Wolff’s book. For just one factor, he claimed, his description of the 2016 meeting between Russians and Jesse J. Trump Junior. as “treasonous” was meant to criticize Mr. Trump’s former campaign chairman, Paul Manafort, and not the president’s boy.

Media figures more famous than Mr. Bannon have discovered hard method in which audiences have a tendency to remain faithful to institutions, instead of individuals. For Mr. Bannon, the potential of losing charge of Breitbart — the automobile that propelled him in to the national spotlight, and finally the greatest echelons of power — could present a substantial test to his potency like a leader of the political and cultural movement.

One of the most unsettling developments for that Bannon camp was losing the support of Ms. Mercer, a tough-line conservative donor, who stated on Thursday that her family had stopped contacting Mr. Bannon and denounced his statements within the Wolff book. “I possess a minority curiosity about Breitbart News and that i remain committed within my support on their behalf,” Ms. Mercer stated inside a statement.

Mr. Bannon in the residence in the so-known as Breitbart Embassy, a Capitol Hill townhouse controlled through the site, when they have courted candidates and tossed V.I.P.-filled soirees.CreditLexey Swall for that New You are able to Occasions

Possibly fortunately for Mr. Bannon, Ms. Mercer cannot unilaterally dismiss him from his company. Mr. Bannon’s fate was most likely at the disposal of Breitbart’s other proprietors — the household of Andrew Breitbart, the founder, who died this year, and it is leader, Ray Solov, the previous Breitbart News general counsel and childhood friend of their founder.

Representatives of Mr. Bannon and Breitbart News didn’t react to queries over the past weekend about Mr. Bannon’s future to begin.

Under Mr. Bannon, who assumed stewardship after Mr. Breitbart’s dying, Breitbart News moved from the scorched-earth fringe site — known mostly for publishing incendiary articles which were considered sexist, racist and xenophobic — for an unlikely voice for disaffected conservatives along with a rallying spot for passionate supporters of Mr. Trump.

Its readers remain faithful towards the president, an undeniable fact that Mr. Bannon appeared to understand in the statement on Sunday.

“I am alone up to now to conduct a worldwide effort to preach the content of Trump and Trumpism, and that i remain prepared to stand it the breach with this president’s efforts to create America great again,” he authored.

Mr. Bannon’s aggressive style and inventive agitprop were obvious factors in Breitbart’s recent success. On Facebook, its achieve now rivals news organizations like Yahoo and also the Washington Publish. The website hired correspondents in Europe and also the Middle East, and poached reporters from establishment news organizations such as the Wall Street Journal.

In Washington, Mr. Bannon stored a property in the so-known as Breitbart Embassy, a Capitol Hill townhouse controlled through the site, where he courted candidates and put V.I.P.-filled soirees. A current book party for Laura Ingraham, the Fox News host, attracted prominent journalists and White-colored House officials.

But because Mr. Bannon nurtured his real-world aspirations, Breitbart’s audience waned in the heights of last year’s presidential race. In November, the website received 13.seven million unique tourists in the U . s . States, based on data from comScore, lower about 20 % from last The month of january. Additionally, it lost advertisers who didn’t want their brands to look alongside Breitbart articles.

The website battled for acceptance in different ways, too. Despite having a full-time reporter within the White-colored House, Breitbart’s application for Congressional press credentials was denied. Its search for any bigger headquarters in Washington was stymied by a few commercial landlords who have been uncomfortable about housing the company.

Mr. Bannon, a tenacious and shrewd operator, may yet hang on to his Breitbart chairmanship, and Mr. Trump may re-embrace associates despite public defenestrations. The campaign manager whom he fired in 2016, Corey Lewandowski, remains a detailed advisor.

On Sunday mid-day, a blaring, all-capital-letters headline on Breitbart.com announced to readers that, reports notwithstanding, its leader was staying with their cause. “Steve Bannon Issues Statement,” the headline read. “My Support Is ‘Unwavering’ for Trump and the Agenda.”

A version want to know , seems in publications on , on-page B1 from the New You are able to edition using the headline: Breitbart At Crossroad As Bannon Is Humbled. Order Reprints Today’s Paper Subscribe

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Wall Street and Washington haven’t been further apart

THE TICKER

President Trump wants you to definitely disregard the mess spilling from behind the White-colored House curtain and concentrate rather around the surging stock exchange. Investors on Thursday were pleased to oblige, pushing the Dow jones Johnson industrial average past 25,000 because the historic rally extended its run. 

Among the continuing firestorm over Trump’s falling-by helping cover their his onetime chief strategist Stephen K. Bannon — as well as other bombshells from  Michael Wolff’s new inside take a look at Trump’s administration  — the president stopped yesterday to cheer the marketplace milestone. See him here, resetting the bar at 30,000: 

Here was Trump sounding off on Twitter late Thursday: 

And again today: 

The nation’s political and financial capitals haven’t felt to date apart. Washington is starting off 2012 having a fresh round of Trump-fueled chaos. Obama threatened a nuclear strike against North Korea inside a Tuesday evening tweet issued an announcement Wednesday accusing his former campaign manager and chief strategist of getting “lost his mind” and signaled he’s thinking about getting libel charges against Wolff on Thursday and required the writer cease and desist further printing of iits distribution. Critics are raising fresh questions regarding his fitness for everyone. 

On Wall Street, meanwhile, heaven hardly appears the limit.

The Wall Street Journal contextualizes the most recent record, the quickest 1,000-point grow in the Dow’s history: “The S&P 500’s lengthy-running rally also arrived at a brand new landmark Thursday, becoming the finest bull market within the postwar era. The broad index has greater than quadrupled because the bull market started in March 2009, surpassing the tech-fueled rally from the 1990s, based on the research firm Leuthold Group, which excluded dividends from the calculations. The Dow jones has risen 283% over that very same period, based on the WSJ Market Data Group.”

Market watchers state that after locking inside a massive corporate tax cut that’s assisting to turbocharge stock values, there isn’t much news from Washington that may slow the important from the bulls on Wall Street. “I’m interested in what tomorrow’s employment report can have around the wage front than I’m within the tweets appearing out of the White-colored House, and also the markets feel exactly the same way,” states Erectile dysfunction Yardeni, president of investment advisory firm Yardeni Research. 

“All the marketplace really likes you is when’s the following recession and just what are earnings likely to be doing for now,” Yardeni ongoing. “Right now, the solution appears is the next recession continues to be remote and earnings will grow to be much better than these were a couple of years ago since we have some tax cuts. More to the point, the worldwide economy is booming. And also the U.S. labor marketplace is very tight but inflation remains really low. That’s a nirvana situation.”

Investors were not so zen this past year. On May 17, stocks endured their worst sell-off in eight several weeks, using the Dow jones shedding 1.8 percent, as investors absorbed this news that former FBI director James B. Comey wrote a memo detailing Trump’s ask that he drop an analysis into former national security advisor Michael Flynn.

And also the market flinched again in August on rumors that Trump’s chief economic advisor Gary Cohn was at risk of the exits. In the two cases, investors feared White-colored House turmoil would derail the administration’s push for fiscal stimulus, mainly from tax cuts. 

Passage from the tax package in the finish of this past year means investors tight on to get rid of in the mess in Washington. “I think the marketplace has, with time, had the ability to separate the substance in the silliness,” Compass Point’s Isaac Boltansky states. “West Wing squabbles inherently draw D.C.’s attention, however with tax reform finalized, investors are refocusing on fundamentals.”

And it is correct that Washington headlines only spooked stocks temporarily, and marginally, this past year. Back on March. 23, the rally broke another record it’s ongoing to increase since: The S&P 500’s longest streak with no 3 % selloff. Now, investors appear hardier than ever before. That prospect could soon be tested, as Cohn looks primed to depart soon and also the Russia probe — still only a germ once the fact from the Comey memo surfaced in May — draws ever nearer to Trump and the top lieutenants. 

Trump’s trade policy poses a potentially graver and much more immediate risk. “We have no idea the way the NAFTA negotiations are likely to land,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, notes, pointing additionally to the potential of a tit-for-tat trade grapple with China. 

It’s perhaps the market’s last hangup with Trump’s leadership. “We’re all obsessive about Trump. You want to begin to see the world through Trump,” Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management in New You are able to, informs The Post’s David J. Lynch. “But the result that politics is wearing financial aspects is limited due to the quite strong institutional structures within the U . s . States, as opposed to the emerging markets . . . where you spend more focus on the political noise.”

MARKET MOVERS

— Thank Boeing. The Post’s Allan Sloan: “If you wish to know why the Dow jones soared above 25,000, I’ll provide you with a one-word answer: Boeing. The aircraft maker is definitely the only largest reason why the Dow jones Johnson industrial average, to own oh-so-popular market indicator its complete name, is flying high. Through 12 ,. 22, Boeing stock was up 95 % for that year, adding 960 suggests the Dow jones, based on information I acquired from Howard Silverblatt, senior industry analyst for S&P-Dow jones Johnson Indices. Boeing’s boost towards the Dow’s takeoff was greater than double those of the 2nd-greatest contributor, Caterpillar, which taken into account 434 points.”

When does it finish? NYT’s James B. Stewart: “It’s most likely no real surprise that Burton G. Malkiel, the famous emeritus professor of financial aspects at Princeton and author from the 1973 classic ‘A Random Walk Lower Wall Street: Time-Tested Technique for Effective Investing,’ recommends that investors ‘stay the program.A ‘If the sharp increase in the stock exchange in 2017 has unbalanced your portfolio having a greater proportion of equities than is in line with your risk tolerance, then you may perform some rebalancing by trimming the equities lower towards the proportion where you’re comfortable,’ Mr. Malkiel stated. ‘But don’t try to time the marketplace. Nobody can consistently time the marketplace, and individuals who check it out usually fail.'”

Individuals sit it. WSJ’s Akane Otani and Chris Dieterich: “Among the greatest surprises from the U.S. stock market’s relentless rally is the number of individual investors have try to escape from this… Through the nearly nine-year boost in share prices, individual investors have ongoing to yank money from funds that own U.S. stocks. Nearly $1 trillion continues to be pulled from retail-investor mutual funds that concentrate on U.S. stocks since the beginning of 2012, based on EPFR Global, a fund-tracking firm. Over that very same period through Wednesday, the S&P 500 soared 116% and, combined with the Dow jones Industrials and Nasdaq Composite Index, rose to 190 all-time highs… Rather than celebrating this wealth-generating machine, individual investors make obvious in multiple surveys precisely how little enthusiasm they’ve with this stock exchange.”

Jobs Report Likely to Show Unemployment Holding Steady

Economists surveyed through the Wall Street Journal expect employers added 180,000 jobs in December and find out the unemployment rate holding steady at 4.1%.

WSJ

Here Is How the wintertime Frost Nova Will Modify the U.S. Economy

A winter storm sweeping the U.S. New England following a week of really low temperatures is most likely boosting interest in boots and mittens– and thanks partly to the timing, it shouldn’t chill economic data more broadly.

Bloomberg

Pot Stocks Plunge on Report U.S. to Rescind Expansion Policy

Cannabis stocks stepped on the are convinced that U.S. Attorney General Shaun Sessions is relocating to revoke policies that permitted the legalization of marijuana to spread across several U.S. states — including California, that is the world’s greatest marketplace for the drug.

Bloomberg

Cash On THE HILL

TAX FLY-AROUND:

Some companies take short-term hits. NYT’s Jesse Drucker: “Within the next couple of days, a few of the world’s greatest companies, big names including Microsoft, Google and Manley & Manley, will probably warn their financial results is going to be seriously dented, otherwise altogether easily wiped out, by huge tax bills that they need to pay towards the Irs. Never be fooled. The large one-time losses really are a prelude to a great deal larger profits — a paradox brought on by the tax cuts that lately zoomed through Congress which largely benefit corporations. A few provisions within the tax package are prompting a lot of companies — individuals located in the U . s . States plus some foreign corporations with big American presences — to pay for the inland revenue while anticipating huge savings for many years in the future. The greatest factor, undoubtedly, may be the requirement that American companies restore money they claimed to possess earned via overseas subsidiaries, many of them in tax havens for example Luxembourg, Grand Cayman and Bermuda.”

California tests SALT dodge. The Post’s Damian Paletta: “A California Senate leader introduced legislation Thursday targeted at circumventing a main plank within the new Republican tax law, presenting one that — if effective — might be replicated across the nation. California Senate President Pro Tempore Kevin de León (D) introduced an invoice that will allow taxpayers to create a charitable donation towards the California Excellence Fund rather of having to pay certain condition taxes. They might then subtract that contribution using their federal taxed earnings. The balance is supposed to completely upend area of the tax law that congressional Republicans passed this past year.”

Fannie-Freddie Overhaul Might Mint Hedge Fund Riches, Losses

They’ve lost in the court. They’ve been rebuffed by government departments. Now, the fates of hedge funds along with other investors in mortgage-finance giants Fannie Mae and Freddie Mac could lie by having an old foe: the U.S. Congress.

Bloomberg

TRUMP TRACKER

Trump re-ups demand for border wall. The Post’s Ed O’Keefe and David Nakamura: “Trump on Thursday known as on Congress to provide a bipartisan deal protecting more youthful undocumented immigrants from deportation / removal, but he maintained his interest in a border wall and cuts to legal immigration that Democrats have opposed. ‘I think it may be bipartisan,’ Trump stated in the White-colored House in front of a gathering with Republican senators on immigration. ‘I hope it may be bipartisan. It will take proper care of lots of problems it might be great to get it done inside a bipartisan way.’ Lawmakers are facing a March 5 deadline to pass through legislation to assist ‘dreamers,’ immigrants introduced towards the country unlawfully as children, after Trump announced in September he’d terminate an Obama-era program known as Deferred Action for Childhood Arrivals (DACA) which has provided two-year work permits to thousands and thousands of these. Nearly 700,000 DACA recipients are signed up for this program after March 5, nearly 1,000 each day will forfeit the work they do permits unless of course Congress functions.”

The White-colored House plans to inquire about $18 billion to construct 700 miles of recent and substitute barriers, WSJ’s Laura Meckler reports: “The request, if granted, will be a major expansion in the 654 miles of barrier now, getting the entire to almost 1,000 miles—about 1 / 2 of the whole southwest border. The plans are specified by a document made by the Department of Homeland To safeguard several senators who requested the administration to detail its request border security.”

Bannon excommunicated. The Post’s Michael Scherer, Bob Costa and Roz Helderman: “Former White-colored House chief strategist Stephen K. Bannon’s about leading a revolt within the Republican Party this season endured a serious blow Thursday as his allies rebuked and abandoned him carrying out a nasty public break with President Trump. Candidates who once accepted Bannon distanced themselves from his efforts, groups aligned together with his views searched for separation, and the most significant financial backer, the millionaire Mercer family, that has championed him for a long time, announced it had become severing ties. Even his position as chairman of Breitbart News, an internet site he’s known as certainly one of his best ‘weapons,’ was being reviewed through the company’s leadership, based on people acquainted with the talks — moving that White-colored House press secretary Sarah Huckabee Sanders openly encouraged at Thursday’s White-colored House news briefing.”

RUSSIA WATCH: 

Trump pressed for Sessions to safeguard him. The NYT’s Michael Schmidt includes a bombshell report, full of revelations about evidence special counsel Robert Mueller has compiled to construct a blockage situation from the president. Read it in the whole here, and you ought to.

Here’s the very best: “Trump gave firm instructions in March towards the White-colored House’s top lawyer: steer clear of the attorney general, Shaun Sessions, from recusing themself within the Justice Department’s analysis into whether Mr. Trump’s associates had helped a Russian campaign to disrupt the 2016 election. Public pressure was building for Mr. Sessions, who was simply a senior person in the Trump campaign, to step aside. However the White-colored House counsel, Jesse F. McGahn II, transported the president’s orders and lobbied Mr. Sessions to stay responsible for the inquiry, based on a couple with understanding from the episode.

Mr. McGahn was unsuccessful, and also the president erupted in anger before numerous White-colored House officials, saying he needed his attorney general to safeguard him. Mr. Trump stated he’d expected his top police force official to guard him the way in which he believed Robert F. Kennedy, as attorney general, tried for his brother John F. Kennedy and Eric H. Holder Junior. had for Obama. Mr. Trump then requested, “Where’s my Roy Cohn?” He was talking about his former personal lawyer and fixer, who was simply Senator Frederick R. McCarthy’s top aide throughout the investigations into communist activity within the 1950s and died in 1986. The lobbying of Mr. Sessions is among several formerly unreported episodes the special counsel, Robert S. Mueller III, is familiar with about because he investigates whether Mr. Trump obstructed the F.B.I.’s Russia inquiry.”

Treasury sanctions Iranian entities associated with ballistic missile production

The U.S. Treasury Department’s actions come among anti-government protests in Iran, that have received vocal support in the White-colored House.

Politico

Energy and Atmosphere

Trump administration plan would broadly expand drilling in U.S. continental waters

The Trump administration unveiled a questionable proposal Thursday allowing drilling in most U.S. continental-shelf waters, including protected regions of the Arctic and also the Atlantic, where gas and oil exploration is opposed by governors from Nj to Florida, nearly twelve attorneys general, greater than 100 U.S. lawmakers and also the Defense Department. Underneath the proposal, just one […]

Darryl Fears

Scaramucci denies report about possible WH return

Former White-colored House communications director Anthony Scaramucci on Thursday denied that he’s been saying President Jesse Trump wants him during the West Wing.

CNN

POCKET CHANGE

Wonkblog

Massive new data set suggests economic inequality is going to get a whole lot worse

It shows the wealthy not just get more potent, but they have become more potent faster in the last 150 years. And because the acceleration continues, the significant class won’t ever get caught up.

Christopher Ingraham

Rise of Bitcoin Competitor Ripple Creates Wealth to Rival Zuckerberg

A co-founding father of Ripple, an online currency, could briefly lay claim that they can to be the world’s fifth wealthiest person on Thursday, bypassing Mark Zuckerberg, because the Bitcoin boom widened.

NYT

Uber Co-Founder Travis Kalanick Intends to Sell 29% of Stake

Former Uber Technologies Corporation. Ceo Travis Kalanick, that has lengthy boasted that he’s never offered any shares in the organization he co-founded, intends to sell about 29 percent of his stake within the ride-hailing company, individuals with understanding from the matter stated.

Bloomberg

Business

Sears Holdings to shut 103 more stores

The unhappy store on Thursday stated it’ll close 64 Kmart stores and 39 Sears stores by early April. The organization has shuttered greater than 400 locations previously year, departing it about 875 stores.

Abha Bhattarai

THE REGULATORS

SEC warns on cryptocurrency. The Hill’s Sylvan Lane: “The Registration (SEC) cautioned investors Thursday that individuals firms and brokers who offer cryptocurrency investments are frequently breaking federal buying and selling laws and regulations. Inside a joint statement, SEC Chairman Jay Clayton and commissioners Kara Stein and Michael Piwowar also stated the company faces severe challenges in recovering losses for jilted cryptocurrency investors. The SEC has reviewed cryptocurrencies which are traded as securities, holding them susceptible to exactly the same disclosure laws and regulations as other generally traded assets. The company has blocked initial gold coin choices (ICOs), sales of cryptocurrencies designed to raise investment capital for any business, that do not follow federal buying and selling laws and regulations. ‘It is obvious that lots of promoters of ICOs yet others taking part in the cryptocurrency-related investment financial markets are not following these laws and regulations,’ the SEC stated in the statement.”

Citi fined $70 million. Reuters: “A U.S. bank regulator has fined Citibank $70 million for neglecting to address shortcomings in the anti-money washing policies. A U.S. bank regulator has fined Citibank (C.N) $70 million for neglecting to address shortcomings in the anti-money washing policies.”

CHART TOPPER

Attorney General Shaun Sessions faces a high uphill fight in the fight against pot, writes The Post’s Christopher Ingraham: 

DAYBOOK

Approaching

  • Brookings Institution holds an event titled “Should the Given stick to the two percent inflation target or re-think it?” on Jan. 8.
     
  • The Peterson Institute for Worldwide Financial aspects supports the D.C. discharge of 2010 Geneva Set of the planet Economy, “And Yet It Moves: Inflation and also the Great Recession” on Jan. 10.
     
  • The Peterson Institute for Worldwide Financial aspects and also the China Finance 40 Forum host the 3rd Annual China Economic Forum on “The New Trend of Chinese Economy and China’s Financial Opening-up” on Jan. 11.
     
  • The American Enterprise Institute holds an event on “New considering poverty and economic mobility” on Jan. 18.

THE FUNNIES

In The Post’s Tom Toles:

BULL SESSION

Conservatives take sides within the feud between President Trump and the former chief strategist Steve Bannon: 

Republican incumbent David E. Yancey’s name was attracted from the bowl, figuring out him because the champion from the recount within the Virginia legislative race: 

Watch Trevor Noah talk Michael Wolff’s book “Fire and Rage,” on President Trump:

Using the Golden Globes just days away, host Seth Meyers addresses what amount of the show will concentrate on recent sexual allegations in Hollywood:

Skyrocketing executive pay is going to have more costly for corporate America

based on an Institute for Policy Studies report. In The Year 2006, then-Registration chief Christopher Cox told a Senate committee the law “deserves pride of devote the Museum of Unintended Effects.”

The 2017 tax law eliminates the deduction for performance-based pay, potentially steering $9.3 billion to federal coffers within the next ten years, based on the Joint Committee on Taxation.

But compensation experts repeat the alternation in tax law is unlikely to reverse many years of upward pressure on executive pay. Contrary, companies will probably make such pay less determined by performance-based bonuses and give executives a greater salary, they are saying.

“Some individuals will hope this reduces executive pay I do not think it’ll,” stated Alan Manley, md of pay consultant Manley Associates.

Some information mill already modifying their policies. Netflix started offering stock-based bonuses to 3 of their top executives in 2015, benefiting from the tax break. A week ago, the organization stated it might ditch the bonuses and increase the annual salary for the executives in 2018. For instance, in 2017, Netflix’s Chief Content Officer Ted Sarandos earned an $a million salary and bonus target of $9 million. For 2018, his base salary is going to be elevated to $12 million, based on a Registration filing.

“The compensation committee from the board of company directors has determined that cash compensation for 2018 is going to be compensated as salary,” the filing stated.

Also, the brand new tax bill’s signature feature — decreasing the corporate tax rate from 35 % to 21 percent — greater than offsets losing the deduction for corporations, compensation experts say.

“The goverment tax bill incorporated a Chief executive officer pay reform that we’ve been with two decades, but we’re not bragging about this because it won’t compensate for the rest of the corporate giveaways within the legislation,” stated Sarah Anderson, global economy project director for that Institute for Policy Studies, a social justice think tank. “We want to think this could result to have an overall loss of compensation that could inject some rationality.”

Still, the removal of the tax break to find the best executives’ bonus pay may prompt some shareholder advocates to for restraint, stated Andersen from the Institute for Policy Studies. “These huge Chief executive officer pay packages can come in a greater cost for that companies,” she stated. “It will definitely give shareholders another argument to create why this [big pay packages] isn’t in shareholders’ interest.”

Following the new law passed, Goldman Sachs faster the delivery of some stock bonuses to top executives with a couple of days. Leader Lloyd Blankfein and “hundreds” of other bank executives received the shares — that they had recently been awarded in prior years —  in December instead of The month of january.

Transferring the shares in 2017 enables the organization to consider a deduction as the statutory tax rates are 35 %, as opposed to the lower rate set up for 2018. The maneuver, which the organization disclosed in SEC filings, aims in order to save the financial institution $140 million, according to someone acquainted with the problem who spoke on the health of anonymity.

Regulators and lawmakers make other efforts to restrain executive pay — or at best throw a spotlight onto it. After many years of wrangling, regulators set up a guide this past year requiring thousands of public U.S. companies to talk about what their chief executives earn than their typical rank-and-file employees. The “pay ratio” disclosure threatens to put a spotlight on the potentially embarrassing disparity that lots of companies have lengthy fought against to obscure.