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    Youngkin Vetoes Measures to Remove Tax Breaks for Confederate Heritage Group

    The Virginia governor rejected efforts by the state’s Democrats to reshape the Commonwealth’s relationship with its Confederate past. Gov. Glenn Youngkin of Virginia vetoed on Friday two bills that would have revoked tax exemptions for the United Daughters of the Confederacy, a century-old organization that has often been at the center of debates over the state’s Confederate past and its racial history.In doing so, Mr. Youngkin sided with fellow Republicans in the legislature who almost unanimously opposed the bills and the efforts by the state’s Democrats to curtail the Commonwealth’s relationship with Confederate heritage organizations. The bills had nearly unanimous Democratic support in both chambers of the legislature. (One Democrat did not participate in one of the votes.) The organization’s property tax exemptions were added to the state code in the 1950s, during segregation and when the Commonwealth maintained a closer relationship with the group. The organization’s Virginia division is also exempt from paying recordation taxes, which are levied when property sales are registered for public record.In a statement explaining his decision, Mr. Youngkin acknowledged that the property tax exemption was “ripe for reform, delineated by inconsistencies and discrepancies.” But, he said that the bills were too narrow, specifically targeting the United Daughters of the Confederacy, and approving them would set “an inappropriate precedent.” Lawmakers who introduced the bills said that they had wanted to modernize the tax code to reflect the state’s current values; they also stated that the government should not support organizations that promote myths romanticizing the Confederacy. Critics of the legislation said that the bills unfairly targeted the United Daughters of the Confederacy, and claimed that the group and its purposes were misunderstood.Alex Askew, a Democratic delegate who introduced one of the bills, called the governor’s vetoes “perplexing.” We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump May Owe $100 Million From Double-Dip Tax Breaks, Audit Shows

    Former President Donald J. Trump used a dubious accounting maneuver to claim improper tax breaks from his troubled Chicago tower, according to an Internal Revenue Service inquiry uncovered by The New York Times and ProPublica. Losing a yearslong audit battle over the claim could mean a tax bill of more than $100 million.The 92-story, glass-sheathed skyscraper along the Chicago River is the tallest and, at least for now, the last major construction project by Mr. Trump. Through a combination of cost overruns and the bad luck of opening in the teeth of the Great Recession, it was also a vast money loser.But when Mr. Trump sought to reap tax benefits from his losses, the I.R.S. has argued, he went too far and in effect wrote off the same losses twice.The first write-off came on Mr. Trump’s tax return for 2008. With sales lagging far behind projections, he claimed that his investment in the condo-hotel tower met the tax code definition of “worthless,” because his debt on the project meant he would never see a profit. That move resulted in Mr. Trump reporting losses as high as $651 million for the year, The Times and ProPublica found.There is no indication the I.R.S. challenged that initial claim, though that lack of scrutiny surprised tax experts consulted for this article. But in 2010, Mr. Trump and his tax advisers sought to extract further benefits from the Chicago project, executing a maneuver that would draw years of inquiry from the I.R.S. First, he shifted the company that owned the tower into a new partnership. Because he controlled both companies, it was like moving coins from one pocket to another. Then he used the shift as justification to declare $168 million in additional losses over the next decade.The issues around Mr. Trump’s case were novel enough that, during his presidency, the I.R.S. undertook a high-level legal review before pursuing it. The Times and ProPublica, in consultation with tax experts, calculated that the revision sought by the I.R.S. would create a new tax bill of more than $100 million, plus interest and potential penalties.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Biden Looks to Raise Taxes on Wealthy and Corporations to Shave Deficit

    Lael Brainard, the director of the National Economic Council, said lawmakers should raise taxes on companies and the wealthiest while extending the 2017 cuts for those making less than $400,000.President Biden’s top economic adviser said on Friday that lawmakers should take advantage of a looming tax debate next year to try to reduce budget deficits by sharply raising taxes on corporations and the rich.Under that plan, Mr. Biden would more than offset the cost of maintaining tax cuts for people earning $400,000 a year or less.In a speech to the Hamilton Project at the Brookings Institution in Washington, Lael Brainard, who directs the White House National Economic Council, gave the most detailed explanation yet of how Mr. Biden would seek to shape what promises to be a multitrillion-dollar tax debate.A batch of tax cuts signed into law in 2017 by former President Donald J. Trump, who is facing Mr. Biden in a rematch this fall, is set to expire at the end of next year. It includes cuts for individuals at all income levels. Republicans built that expiration into the tax bill to reduce its projected cost to deficits and comply with congressional rules.Ms. Brainard’s speech renewed Mr. Biden’s commitment to reducing taxes for middle-class Americans and for raising them on high earners. But her remarks expressed more concern about growing debt and deficits than the president and his aides had previously demonstrated when discussing the looming tax debate.“At minimum, we should avoid making the fiscal hole created by Republican tax cuts deeper, by fully paying for any tax cuts that are extended,” Ms. Brainard said, in remarks released by the White House. “And we should use the 2025 tax debate as an opportunity to meet our national needs by raising revenue overall by asking the wealthy and large corporations to pay their fair share.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Honda Commits to E.V.s With Big Investment in Canada

    The Japanese automaker, which has been slow to sell electric vehicles, said it would invest $11 billion to make batteries and cars in Ontario.Honda Motor on Thursday said it would invest $11 billion to build batteries and electric cars in Ontario, a significant commitment from a company that has been slow to embrace the technology.Like Toyota and other Japanese carmakers, Honda has emphasized hybrid vehicles, in which gasoline engines are augmented by electric motors, rather than cars powered solely by batteries. The Honda Prologue, a sport-utility vehicle made in Mexico, is the company’s only fully electric vehicle on sale in the United States.But the investment adjacent to the company’s factory in Alliston, Ontario, near Toronto, is a shift in direction, raising the possibility that Honda and other Japanese carmakers could use their manufacturing expertise to push down the cost of electric vehicles and make them affordable to more people.“This is a very big day for the region, for the province and for the country,” Prime Minister Justin Trudeau said at an announcement event in Alliston, where Honda manufactures the Civic sedan and CR-V S.U.V. The investment is the largest by an automaker in Canadian history, he said.The company also plans to retool its flagship factory in Marysville, Ohio, near Columbus, to produce electric vehicles in 2026. The investment in Canada is a sign that Honda expects the technology to grow in popularity, despite a recent slowdown in sales.Canadian leaders have been wooing carmakers with financial incentives as it tries to become a major player in the electric vehicle supply chain. Vehicles made in Canada can qualify for $7,500 U.S. federal tax credits, which are available only to cars made in North America.Volkswagen said last year it would invest up to $5 billion to construct a battery factory in Thomas, Ontario. Northvolt, a Swedish battery company, announced plans last year for a $5 billion battery factory near Montreal.Honda will benefit from up to $1.8 billion in tax credits available to companies that invest in electric vehicle projects, Chrystia Freeland, the Canadian finance minister, said Thursday at the event.Canada also has reserves of lithium and other materials needed to make batteries, and generates a lot of its electricity from nuclear and hydroelectric plants, which allows carmakers to advertise that their vehicles are made with energy that releases no greenhouse gas emissions.“As we aim to conduct our business with zero environmental impact, Canada is very attractive,” Toshihiro Mibe, the chief executive of Honda, said Thursday in Alliston. Honda will also work with partners to convert raw materials into battery components, he said.However, recent declines in the price of lithium have raised questions about whether mining the metal in Canada will be profitable. More

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    A Georgia Town Basks in Bountiful Filming. The State Pays.

    When movies are made in Thomasville, Ga., it welcomes celebrities and an infusion of cash. But the financial incentives that attract studios have cost the state billions.It is no wonder that moviemakers saw potential in Thomasville, Ga., as a stand-in for Main Street U.S.A. Cobblestone streets and mom-and-pop stores speckle the downtown of this city of 18,000 that is caked in red clay soil and nestled among rolling hills.Just as attractive to some of those producers are Georgia’s lavish filming incentives, which have made Thomasville a cost-effective place to make modest pictures with major stars. Dustin Hoffman came for the rom-com “Sam & Kate.” A children’s book adaptation, “The Tiger Rising,” brought Dennis Quaid and Queen Latifah to town.But what is good on the ground for local economies — Thomasville says each of the six movies filmed there has provided an economic boost of about $1 million — can simultaneously be a drain on state coffers.Some Georgia lawmakers wondered whether it might be wise to put some limits on an uncapped tax incentive program that has given billions of dollars to Hollywood studios, scrambling this week in hopes of passing a bill that would modify the program. More

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    Meet the Diplomat Who Shaped Biden’s Global Economic Policy

    Mike Pyle, who will leave the administration later this month, helped broker agreement with Europe and other allies over clean energy, China and Russian sanctions.In the fall of 2022, two top Biden administration officials met in New York with a key European diplomat. Over dinner outdoors, they strategized about how best to throttle Russia’s oil revenues in retaliation for its invasion of Ukraine.Near the end of what had been a collegial meal, the European official, Bjoern Seibert, dropped a bombshell on his hosts, Mike Pyle of the National Security Council and Wally Adeyemo, the deputy Treasury secretary. Europe, Mr. Seibert said, had big problems with President Biden’s sweeping new climate law.Mr. Seibert, the head of cabinet for the president of the European Commission, said top officials among European Union member states feared Mr. Biden was trying to drive a competitive wedge between their countries and the United States, by lavishing subsidies on made-in-America clean energy technology. They were worried the president was trying to ensure the future of U.S. manufacturing at the expense of some of America’s closest allies.The exchange set off months of behind-the-scenes talks, a major regulatory concession from the Treasury Department and high-level negotiations between Mr. Biden and fellow world leaders, all meant to soothe those concerns.The officials at that dinner worked to pull together a harmonized industrial strategy between wealthy nations. It seeks to boost technology that reduces greenhouse gas emissions, limit global warming and counter China’s manufacturing might in global markets.That effort appears to have partly repaired a trans-Atlantic rift over what Europe sees as America’s increasingly protectionist economic policies.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Money in College Savings Accounts Can Now Go Toward Retirement

    But there are caveats to moving the money into Roth I.R.A.s, and the government still has to issue guidelines about the option.Starting this year, some of the money in 529 college savings accounts can be used for retirement if it’s not needed for education.New rules under the federal law known as Secure 2.0 allow up to $35,000 in a 529 account to be rolled over to a Roth individual retirement account for the beneficiary of the 529 account if certain conditions are met.State-sponsored 529 accounts, named for a section of the tax code, are used to pay for education expenses — mainly college costs. Money deposited in the accounts grows tax free and can be withdrawn tax free to pay for eligible expenses like tuition, housing, food and books.The new Roth option is aimed at parents who may be reluctant to save in a 529 because they worry about having to pay income taxes and a penalty if for some reason the funds aren’t needed for college and they want to withdraw the money.“It is parents’ No. 1 objection to opening a 529,” said Vivian Tsai, chair emeritus of the College Savings Foundation, a group that includes big financial firms that run the state college savings programs. “The barrier is really psychological.” (Ms. Tsai is also senior director and head of relationship management for the education savings unit at TIAA, a large investment firm that manages 529 plans in seven states.)Many families struggle to save for college, and accumulating “too much” money is usually not a problem. “The vast majority of account holders do not save enough,” Ms. Tsai said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    ‘Couples Therapy,’ but for Politics

    Growing political polarization is a problem that keeps me up at night. Not because I think it’s bad to have strong opinions, but because of what social scientists call affective polarization: polarization beyond political disagreement, when “ordinary Americans increasingly dislike and distrust those from the other party.” At its worst, affective polarization can lead to hate and dehumanization.When my colleague Thomas Edsall wrote about affective polarization earlier this year, he quoted Sean Westwood, an associate professor of government at Dartmouth, who said that part of what’s behind today’s intense partisan divide is that “Politicians, instead of focusing on the large list of issues where there is broad agreement in the American public, endlessly re-litigate social divides like gay rights and abortion to mobilize a base they fear will stay home if they focus on the mundane details of pragmatic governance.”I see this play out when I hear activists suggest that you can’t talk to them about climate change if you don’t agree with their stance on the Israel-Hamas war, or when I see politicians tying approval of military appointments to abortion access. The attitude seems to be: You have to agree with me about everything or you’re my enemy and we can’t work together on anything. It leads to a whole lot of nothing.Because I cover family policy, the lack of movement on areas of “pragmatic governance” where there is “broad agreement” drives me bonkers. A prime example is federal paid leave, which is popular among voters across the spectrum, yet remains in legislative purgatory, and has for decades. Though there’s a bipartisan working group in Congress on the issue, we’re still a long way from any change, leaving us out of step with most wealthy nations and creating a lot of stress and economic hardship for people just trying to make ends meet while also caring for children or sick family members.But there’s a group of people of all ideological backgrounds — social conservatives, progressive activists, budget wonks and lots of people in between — that’s been convening over the past year, and that gives me a bit of hope for family policy’s future. It also offers a road map for people who disagree vehemently on issues to have productive conversations and find points of connection. If nothing else, the group’s participants agree that too many American families are struggling, that families should be more of a political priority and that something needs to be done to help them.The convocation has the somewhat jargony name Convergence Collaborative on Supports for Working Families, and its members let me sit in on one of their guided discussions with the understanding that I would follow the Chatham House Rule — I can report on what was said during the session but not reveal “the identity nor the affiliation” of any speaker.The group consists of around 30 people and it has met monthly since April. It is directed by Abby McCloskey, who runs a research and consulting firm and was a policy adviser for Jeb Bush’s and Rick Perry’s 2016 presidential campaigns and Howard Schultz’s exploratory 2020 presidential run. The collaborative is funded by the David and Lucile Packard Foundation. With permission, after the meeting I reached out to some of the individuals involved to see if they’d be comfortable talking in general terms about their experiences in the group.During the initial meetings, the members came up with set of family policy principles they could mostly agree on. The discussion I observed involved them delivering feedback on a draft of a report outlining those principles. At first, I feared this was going to be an absolutely mind-numbing way to spend three hours of my life and that I would have to gently pinch myself to stay awake while listening to a discussion of the budgetary implications of the earned-income tax credit.Instead, the conversation was spicy while still being respectful, and full of fundamental disagreements that did not seem completely papered over simply for the sake of congeniality. McCloskey described it to me more than once as feeling like “couples therapy,” and it did.For example, a few people objected to wording in the report about center-based child care that they felt put a thumb on the scale against stay-at-home parents. Others disagreed with that objection, and there was an impassioned back-and-forth about it. Ultimately, the moderator stepped in, restated everyone’s point of view in a neutral way and advised that everyone needn’t agree on every detail to move forward.I give a lot of credit to that moderator, the aptly named David Fairman, who is a senior mediator at the Consensus Building Institute, for the structure and tone of the discussion. When we spoke on the phone afterward, he explained that C.B.I. is one of “roughly a dozen” similar organizations that help conduct mediation on public issues. His job is to help find common ground among people with different backgrounds and belief systems.There are three main things Fairman does to facilitate these discussions. The first is to build relationships among participants, so that “they discover that there’s more to them than the battle of tweets that they’ve had or the countering publications or testimony and the identities that they carry with their businesses, with their advocacy groups or whoever.” That kind of humanizing is done partly through guided conversations in breakout groups, and some of it is done more organically through events like in-person cocktail hours.The second is by getting people to “listen openly” during discussions, which means calming down their “rebuttal minds, the hamster wheel that is almost always turning as we listen to someone with whom we disagree, coming up with the counterarguments,” Fairman explained. Instead, he urges people to ask “clarifying questions, not rhetorical questions, not debating questions.” And he gave this example: “What do you mean by saying that ‘you really feel strongly that the child tax credit should remain universal’? Is it that the most important thing about it is that it’s for everyone? Or is it that you are worried that the political support for it will not be there if it is not universal, or is it something else? I just want to know.”The third, and I would argue the most difficult component, is trying to get beyond people’s stated positions to their underlying interests, values and principles, to create space “to explore new ways of thinking about the options,” Fairman said. He referred to a disagreement over how generous a child care tax credit or other allowance could be. The group was at an impasse. While they couldn’t agree on the appropriate size of the credit, a new idea emerged: that more flexibility for parents to choose how to spend the credit “over the life cycle of their child would be a win, even if it doesn’t address the question of the absolute amount of funding.”I also interviewed several members of the group about their experiences. My takeaway was that overall, people were happy to be in conversation with one another, to meet basically agreeable people with totally different ways of framing the problems at hand and to think hard about their own biases. “I think the level of candor was surprising,” said Patrick Brown, a fellow at the right-leaning Ethics and Public Policy Center. “I think everybody committed to coming in with a willingness to critique their own side where necessary and to say frankly where their red lines were.”But the process was certainly not a cure-all. Many said that they wished they had even more time to work through the document they were creating. Some felt that some fundamental concerns — particularly with regard to race and immigration — weren’t aired thoroughly enough before moving on to the particulars of policymaking. More than one person expressed frustration that systemic racism was not more explicitly addressed and that barriers to accessing currently available benefits weren’t fully interrogated.While all the participants thought they would have a document at the end of the process that they would be willing to put their names to, some wondered if it would wind up being so watered down that it wouldn’t have “truly moved the needle,” as Lina Guzman, the chief strategy officer at Child Trends, put it, to get more people fired up about these issues.Even if they come up with something that isn’t earth-shattering, every person I spoke to felt that the process was worthwhile because of the relationships they built. “I think that having created the space to do this is valuable in and of itself, even if what we come out with falls short of what some people might have hoped,” said Katharine Stevens, the founder and chief executive of the Center on Child and Family Policy.We don’t know what unexpected alliances and priorities might arise in national politics in the coming years. But because these professionals have spent a lot of hours together talking about their deepest values, giving and getting clarity about their beliefs, they may find unexpected sources of support for specific ideas that aren’t yet mainstream.I came out of observing the discussion mostly wishing that we could all have mediators like Fairman at our holiday tables. We can’t simply wish away the profound disagreements many of us have. But I’ll certainly be trying to ask more clarifying questions of people I don’t agree with. Quieting my rebuttal mind, as a professional opinion haver, will be a rough one, but I’m going to do my best, and I’m going to try to maintain as much good faith as I can muster. We’ll need it in 2024. More