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Politics

Foreign countries are trying to sway the 2024 election

Apparently, even non-citizens want in on the election this year. Following the transmission of internal campaign material to at least two news outlets, the Trump campaign confirmed over the weekend that it had been compromised by "foreign sources hostile to the United States."

This marks the third consecutive presidential campaign where foreign adversaries have used cyberwarfare to try and influence an outcome. This time however, it is Iran, not Russia, that kicked things off.

How did it happen?

By none other than the infamous phishing email. I wish I was kidding.

Microsoft released a report over the weekend that stated a hacking group led under Iran’s military intelligence unit, which they called “Mint Sandstorm”, gained access to an account belonging to a “former senior advisor” of a presidential campaign.

The hackers then attempted to access a current campaign's networks by sending "spear phishing" emails to "a high-ranking official of a presidential campaign" from that account, according to Microsoft.

Iran has tried even more extreme measures recently: Just a week ago, a Pakistani man with ties to Iran was charged by the Justice Department for attempting to hire a hitman to kill Donald Trump and other prominent US officials and politicians.

They want to influence you, too

China, Russia, and Iran are all waging online influence initiatives (see overview) in the United States to sow division among the public, according to an election security update released by the government last month.

• Iranian operatives set up fake news sites that targeted voters on both sides, which amplified polarizing messages regarding controversial issues (like the Israel-Hamas conflict, LGBTQ rights, etc).

  • One site, called No Thinker, pushed extremely critical articles about Trump, while another, named Savannah Time, claimed to be a “trusted source of conservative news”.

• Experts say Iran set up the sites as a front (which already has a follower base) to post information from hacking operations.

Additionally, Microsoft revealed last week how the three are using misinformation to inflame tensions, change voter conduct, and weaken public confidence in elections.

Deja vu: US intelligence officials said the development is a disconcerting relapse to the 2016 and 2020 elections, where foreign interference was rampant. Chris Krebs, the former head of America’s cybersecurity agency, called it “a multi-front gray zone assault on the American mind.”

Harris and Trump both think tips shouldn’t be taxed

Well, this may be the only thing both candidates agree on (even if economists don’t). On Monday, VP Kamala Harris said she would get rid of federal taxes on tips given to service and hospitality workers if elected. However, only two months before, former President Trump pledged to do the same exact thing.

Despite the mirrored policy stance, most economists are breaking a sweat now that both major presidential candidates are endorsing a policy which they say will cost the government and the American people.

Policy predicament

The politicians attraction towards a “no tax on tips” policy is pretty clear, as it appeals to the almost 25 million service workers in America, per 2022 US census data.

However, economists and tax experts are having a hard time seeing the same charm, claiming a ban would be a foolish policy with unfavorable consequences:

• The government would lose a lot of money: The nonpartisan Committee for a Responsible Federal Budget estimates that a ban on taxing tips would erase up to $250 billion in federal revenue.

• It wouldn’t affect most workers: 66% of service workers don’t make enough to pay federal taxes anyway, according to the Census Bureau’s American Community Survey.

  • Only 2.5% of workers nationally would benefit from the policy, according to a June study by Yale University’s Budget Lab.

• It would cause chaos: A “no tax on tips” law would be insanely difficult not only to enact, but to regulate, and maintain. Companies and individuals alike would quickly find loopholes to take advantage of the law, trying to claim more of their income as tips.

Despite worried from tax experts and economists, both Harris and Trump want service workers to know they have their back, especially considering where they announced the policy.

Location is important: In Nevada, nearly 30% of the workforce is made up of service workers, the highest percentage in the nation, according to the Nevada Department of Employment. Not to mention, it’s also a vital swing state, and both candidates are looking for a surplus of votes come November.

Economy

Inflation has calmed to a dull roar

Inflation is finally on a downward trend… so when are we getting rate cuts? The Labor Department’s most recent consumer price index report was released on Wednesday and revealed that inflation increased only 2.9% over the past year, its first time below 3% since March 2021.

However, while inflation may be lower, prices are still mostly stagnant:

• Overall prices rose 0.2% in July (month-to-month).

  • 90% of the rise was due to rising house costs (which increased 4.4% in July YOY).

• While a select few items have dropped in price, many economists expect grocery inflation to remain steady through the coming months.

• Food and energy indexes increased 2.2% and 1.1%, respectively.

On the bright side, annual inflation (which excludes food and energy prices) declined for four straight months to 3.2%. Lowering inflation combined with a slowing job market have most expecting the Fed to start lowering rates next month.

Interest rates be gone

The door for the Fed to cut interest rates is as wide as its been in a long time, with inflation definitively on a downward trend and a hiring slowdown egging them on all the more.

While inflation is still above the Fed’s ideal 2% target rate and rent has climbed higher in the past months, analysts say the new data is the strongest indicator of pending rate cuts we can expect.

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Grab Bag

The US government is not happy with Coca-Cola

Everyone’s favorite soft drink makers has been locked in a multi-billion dollar tax battle for years. Who would’ve known? Coca-Cola announced last week it would be selling over a billion dollars worth of European bonds after losing a recent court decision.

The IRS claimed the company has moved large amounts of revenue offshore to avoid taxes, and the move is suspected to help the company pay them.

Why is the IRS after coke?

The results of a 2015 audit into Coke were affirmed by a Tax Court judge last week, which determined that the company owes the US treasury roughly $6 billion in unpaid taxes. Most of the money, however, was accrued from significant interest (over half of the total liability).

• Coke said it would appeal the decision and pay the $6 billion in the meantime.

But last week’s ruling is just the most recent of legal battles between the two (most of which have gone in the IRS’s favor), as the IRS has gone after how Coke has reported its income from its subsidiaries for years.

• The US Tax Court concluded that Coke reportedly has a routine of relocating concentrate manufacturing to nations with low tax rates.

• In 2020, a tax judge noted that these subsidiaries had reported insanely high profit levels that more than doubled the return on assets of Coca-Cola.

It all stems from this: Coke used a unique formula (much like its drink) to refigure how much of its income is taxed in 1996, as a part of a settlement. The problem is, the company has used the same technique every year since then.

Coke maintains that it shouldn't owe the IRS and claims that the tax agency and courts have twisted the law. If Coke doesn’t win the appeal, it may have to pay more than $10 billion in additional fees (with interest). The sum would fund the IRS for an entire year.

Offshore wind farm shut down after giant shards fall

At least no birds will fly into it now. After a critical blade failure at one of the largest US offshore wind farms last month, Vineyard Wind has had to cease operation amid mounting criticism.

Public opinion of the wind industry (especially in the area) isn’t held in high regard, especially since the Vineyard Wind project cost taxpayers ~$2.5 billion and it isn’t generating much… but trash on peoples beaches.

Windy relations

Despite the fact that the offshore wind farm is supposed to power hundreds of thousands of homes, residents of Nantucket aren’t too happy about it after large pieces of debris from the shattered turbine blade washed ashore.

• While a probe is being launched concerning the incident, federal regulators have stopped building and power generating at the location until further notice.

• GE Vernova, Vineyard Wind's turbine provider, stated that the damaged blade was the result of a manufacturing issue.

As of early this week, a “substantial amount” of debris has been removed from the water and controlled cutting operations have gone underway, which will greatly reduce the “risk for additional debris falling into the ocean,” Vineyard Wind said in a statement.

Following the incident, demands to postpone or abandon upcoming projects have grown louder from fishermen, environmentalists, and other critics of offshore wind energy, compounding with current hurdles already plaguing the industry.

The wind farm industry is suffering: Due to higher expenses paired with elevated interest rates, a number of offshore wind contracts near the Atlantic coast have already been canceled, and it’s a safe bet the Vineyard Wind incident won’t help prop them back up.

Fast Facts

Wing Wisker: Vera Liddell, an Illinois school worker, was sentenced to nine years in prison after stealing $1.5 million in chicken wings she claimed were meant for students, although they never saw a single one.

Canopy Crown: The Roofball World Championship just finished up, which has apparently been going on since 1999. I might just try and go pro.

Star Shopping: The finalists of the astronomy photographer of the year awards were revealed, and the pictures are awe inspiring.

Airbag Alert: Ford and Mazda issued a warning not to drive more than 457,000 vehicles with recalled Takata airbags.

Viral Vaccination: The World Health Organization just declared monkeypox a global emergency as the virus spreads in Africa. More than 500 deaths were confirmed as of Thursday.