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Opinion | The Schumer-Manchin Tax Increase on Everyone

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Opinion | The Schumer-Manchin Tax Increase on Everyone

Senate Majority Chief Chuck Schumer speaks to reporters throughout a information convention on the U.S. Capitol, July 28.



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Drew Angerer/Getty Pictures

Majority Chief

Chuck Schumer

desires a Senate vote on his partisan tax take care of

Joe Manchin

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as early as this week, and no marvel he desires to hurry it by way of. The extra People study what’s on this tax-and-spend behemoth, the extra they’ll dislike it.

Begin with the authors’ central declare that the invoice will cut back the deficit and thus inflation. The Penn Wharton Price range Mannequin, which Sen. Manchin has been identified to look at, examined the small print of Schumer-Manchin and located that it doesn’t include any web deficit discount till 2027.

“The influence on inflation is statistically indistinguishable from zero” by way of 2031, say the Penn Wharton modelers. We don’t agree with those that suppose deficit discount leads in a straight line to decrease inflation, however that’s what the Democrats declare for his or her invoice. If the primary deficit discount doesn’t come for 5 years, what’s the assistance on inflation at this time?

The $327 billion in new taxes may gradual inflation if the financial system falls into recession, and that could be the quiet expectation. The tax will increase on enterprise will discourage funding whereas the Federal Reserve can be elevating enterprise prices with larger rates of interest. However tax coverage needs to be working in the other way to encourage funding when the Fed is tightening and the financial system is near recession.

Proof is rising that the brand new Schumer-Manchin 15% minimal tax on corporate-book earnings is particularly dangerous to U.S. manufacturing corporations. An evaluation by Congress’s Joint Committee on Taxation (JCT), which is hardly a nest of supply-siders, discovered that 49.7% of the tax would hit U.S. producers.

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The book-income minimal tax would hit the accelerated depreciation within the tax code that lets companies write off funding in, say, new factories. Wholesale commerce (9.3%), retail commerce (4.9%) and knowledge (11.5%) firms would get off comparatively straightforward by comparability.

This new tax improve arrives solely days after the Senate handed a $280 billion subsidy invoice for computer-chip producers within the title of holding the U.S. globally aggressive. Now Democrats wish to take a bit of that again for themselves through the minimal e book tax. Subsidies for a couple of, tax will increase for the numerous. A lot for President Biden’s declare that he desires a renaissance in U.S. manufacturing.

An evaluation by the Nationwide Affiliation of Producers says the tax in 2023 alone will cut back actual GDP by $68.5 billion and minimize labor earnings by $17.1 billion. One well-known financial fact is that companies don’t actually pay taxes. They’re primarily tax collectors, as the company tax fee in the end falls on some mixture of employees, shareholders and clients. Elevate the company tax fee, and also you’re slicing wages and salaries for employees.

No shock, that’s precisely what the Joint Committee on Taxation present in its evaluation of the Schumer-Manchin invoice’s distributional influence. The JCT finds that common tax charges will improve for practically each earnings class in 2023 below the invoice.

Taxes will rise by $16.7 billion in 2023 on People incomes lower than $200,000 a yr. Taxpayers incomes between $200,000 and $500,000 pays $14.1 billion extra. This provides the mislead Democratic claims that nobody incomes below $400,000 pays extra taxes below the invoice, a promise Mr. Biden additionally made in his marketing campaign. The truth is that the Schumer-Manchin invoice is a tax improve on practically each American.

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If Arizona Sen.

Kyrsten Sinema

and different Democrats need to join this tax ball-and-chain barely three months earlier than an election, they are going to be chargeable for the financial penalties. Their new tax on employees is unlikely to be a political or financial winner.

Copyright ©2022 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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It’s been a rollercoaster few years for Six Flags. Can Travis Kelce help?

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It’s been a rollercoaster few years for Six Flags. Can Travis Kelce help?

Kansas City Chiefs tight end Travis Kelce says he grew up going to Six Flags parks and wants to help make them special for the next generation of families.

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Travis Kelce, the Kansas City Chiefs tight end and fiance of Taylor Swift, sparked jokes and hopes this week when he announced his investment in the embattled amusement park company Six Flags Entertainment.

The football star, alongside two corporate executives, teamed up with JANA Partners to purchase a combined stake of about 9% of Six Flags’ shares, making them one of its largest shareholders, according to Tuesday’s news release.

JANA Partners is an activist investment firm, meaning it buys a substantial stake in a company’s equity in order to push for changes — both operational and managerial — it believes will benefit that company.

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“Couldn’t pass up the opportunity to continue the tradition and make Cedar Point and Six Flags even more special for the next generation of families!” Kelce wrote on Instagram. “So crazy to even imagine this is real, but you gotta love it when life comes full circle.”

Kelce also shared home video clips of himself as a child enjoying the rides at Cedar Point, the 364-acre amusement park in Sandusky, Ohio, that he and his brother (and retired pro footballer) Jason grew up going to every year, as the two enthusiastically reminisced in an episode of their New Heights podcast. Kelce, who grew up in a suburb of Cleveland, calls himself a “lifelong Six Flags fan.”

Cedar Point’s former operator, Cedar Fair, merged with Six Flags in 2024 to become the largest amusement park operator in North America, touting 42 parks across the U.S., Canada and Mexico.

At the time, many amusement parks — and Six Flags especially — were struggling to increase attendance in the wake of the COVID-19 pandemic. Park analysts and enthusiasts hoped the merger would lower ticket costs, raise revenue and make it more competitive against industry heavyweights like Disney and Universal.

But that hasn’t been the case, says Dennis Speigel, CEO of the consulting firm International Theme Park Services.

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“As this merger occurred, I think the due diligence was probably done a little too quickly and it had a lot of flaws in it,” he told NPR. “And then it was also impacted by what I call the external factors: weather, economy, uncertainty of what’s happening in geopolitical areas.”

Six Flags now has $5.3 billion in debt. Its CEO, Richard Zimmerman, is set to step down by the end of the year, after it reported a net loss of $100 million for the second quarter of 2025 and combined attendance down 9% year-over-year. It is shuttering one of its parks — Six Flags America in Bowie, Md. — in early November and is expected to close another in Santa Clara, Calif., in 2027.

Speigel is hopeful the new shareholders will get Six Flags back on track. And while he was initially surprised to learn of Kelce’s involvement, he says it makes sense because “he’s at the zenith of his career in football … and in love.”

“Having a name like that be associated with Six Flags at this point in time, when they’ve gone through quite a few years recently of negativity, speaks well to their future and what they’re looking to do,” he says. “Obviously, he’s a younger person. He speaks to the teens, the young adults and the young adults with families. And that’s the Six Flags audience.”

Kelce’s fame — and high-profile love story — have boosted businesses before. Swift is credited with increasing female NFL viewership and ticket sales as their relationship unfolded. And, in recent days, his social media announcement has been flooded with fans’ pleas for a Swift-themed park, or at least a rollercoaster.

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Six Flags’ rocky ride 

Six Flags opened with the “Six Flags Over Texas” park in 1961, and for years was one of America’s most iconic theme park companies (along with Disney). But for the last decade, Speigel says, it has been “a ship at sea without a captain.”

“I would have to say [out of] the top five or six operators during the last couple of years, Six Flags has suffered the most,” he says.

Six Flags has had four CEOs since 2015.

It shifted its pricing strategy in 2022 to target a more affluent demographic, confusing and alienating core customers in the process. And in recent years, a number of high-profile ride malfunctions have stranded and even injured visitors. This year, extreme temperatures and economic uncertainty drove attendance down even further.

“To see Six Flags have fallen off the precipice and down to where it is now, it’s sad,” Speigel says. “And everybody in the industry, competitors and alike, are all rooting for their return and their comeback.”

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Visitors dance under a "Welcome Back" sign at Six Flags Magic Mountain in Valencia, Calif. in 2021.

Visitors arrived to a “Welcome Back” sign at Six Flags Magic Mountain in Valencia, Calif., when it reopened after the COVID-19 pandemic in April 2021.

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What might change? 

JANA Partners said in its announcement that it plans to engage with Six Flags’ management and board of directors “regarding opportunities to enhance shareholder value and improve the guest experience.”

NPR has reached out to Jana Partners for more information about its goals but did not hear back by publication time.

The Wall Street Journal reports that the investment firm wants to “modernize technology, refresh leadership and evaluate a potential sale as ways to boost the company’s share price.”

In a statement shared with NPR, a Six Flags spokesperson said it appreciates the perspectives of shareholders and takes their feedback seriously.

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Speigel says Six Flags’ debt could force the new investors to take “some drastic measures,” like selling some of its parks, either to commercial real estate or even private equity groups. And he stresses that foot traffic is key in the industry.

“We live on repeat visitation, and repeat visitation is driven by capital improvements, new rides and attractions, dark rides, the new technologies,” he says. “So we have to hopefully see the growth from that.”

Speigel says even though U.S. amusement parks may not be experiencing the same rate of growth that they did several decades ago, they still attract some 400 million visitors each year — most of whom don’t care who owns a park as long as their experience is clean, fun and safe.

He hopes JANA recognizes Six Flags, and the industry in general, as “the last real bastion of family fun in the United States, in fact globally, where a family can go as a total unit. And I hope they put their capital behind that and lift it out of the ashes where it is now.”

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Map: Minor Earthquake Strikes Southern California

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Map: Minor Earthquake Strikes Southern California

Note: Map shows the area with a shake intensity of 4 or greater, which U.S.G.S. defines as “light,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.3 struck in Southern California on Thursday, according to the United States Geological Survey.

The temblor happened at 8:12 p.m. Pacific time about 6 miles northeast of Yucaipa, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Aftershocks in the region

An aftershock is usually a smaller earthquake that follows a larger one in the same general area. Aftershocks are typically minor adjustments along the portion of a fault that slipped at the time of the initial earthquake.

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Quakes and aftershocks within 100 miles

Aftershocks can occur days, weeks or even years after the first earthquake. These events can be of equal or larger magnitude to the initial earthquake, and they can continue to affect already damaged locations.

When quakes and aftershocks occurred

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Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Thursday, Oct. 23 at 11:16 p.m. Eastern. Aftershocks data is as of Friday, Oct. 24 at 1:12 a.m. Eastern.

Maps: Daylight (urban areas); MapLibre (map rendering); Natural Earth (roads, labels, terrain); Protomaps (map tiles)

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Trump backs away from sending federal agents to San Francisco | CBC News

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Trump backs away from sending federal agents to San Francisco | CBC News

Donald Trump will not deploy federal agents to San Francisco, the U.S. president and the city’s mayor said in separate social media posts on Thursday, a surprising stand-down as Trump pressures Democratic-led cities around the country to step up enforcement against crime and illegal immigration.

San Francisco Mayor Daniel Lurie, a Democrat, said in a post on X that Trump called him Wednesday night to tell him he was calling off any plans for a federal deployment.

Lurie said the city would continue to partner with federal agencies to combat drug crime, but that “militarized immigration enforcement” would not help.

“We appreciate that the president understands that we are the global hub for technology, and when San Francisco is strong, our country is strong,” Lurie said.

Trump confirmed the agreement in a post on Truth Social, saying the federal government had been preparing a surge in San Francisco but would cancel it.

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“I spoke to Mayor Lurie last night and he asked, very nicely, that I give him a chance to see if he can turn it around,” Trump said. “The people of San Francisco have come together on fighting Crime, especially since we began to take charge of that very nasty subject.”

The Republican president said two major tech executives — Nvidia CEO Jensen Huang and Salesforce CEO Marc Benioff — had called him “saying that the future of San Francisco is great.”

Trump had indicated San Francisco would be a next stop for National Guard troops he was sending to various U.S. Democratic-led cities, moves that have been challenged in courts.

The San Francisco Chronicle reported on Wednesday that the Trump administration would send more than 100 federal agents to the city to ramp up immigration enforcement.

WATCH | Trump threatens ‘dangerous’ U.S. cities:
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Trump decries ‘enemy from within,’ threatens to train military in U.S. cities

U.S. President Donald Trump threatened to use ‘dangerous’ U.S. cities as training grounds for the military at a rare meeting of top military officials where he and U.S. Defence Secretary Pete Hegseth took aim at what they called ‘woke’ military standards.

Protest against federal deployment

Despite the apparent stand-down, a handful of U.S. Border Patrol vehicles arrived at a U.S. Coast Guard base in the Bay Area on Thursday morning and were met with several hundred protesters.

Demonstrators carried signs reading “Stop the kidnappings” and “Protect our neighbours,” with one protester smacking the window of a truck as it passed by.

Federal agents eventually used less-lethal rounds to disperse the crowd, with protesters saying one person was injured by a projectile and that another had their foot run over.

Two uniformed law enforcement officers hold a man, wearing a black hoodie, face covering and sunglasses, on the ground.
Police officers detain a demonstrator as people protested against the arrival of federal agents at the Coast Guard base in Alameda on Thursday. (Manuel Orbegozo/Reuters)

Oakland Mayor Barbara Lee, the former member of Congress and civil rights activist, said in televised remarks that a federal deployment would divide and intimidate.

“We will not allow outsiders to create chaos or exploit our city,” said Lee, a Democrat.

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Trump aims to deport record numbers of immigrants in the U.S. illegally, portraying them as criminals and a drain on U.S. communities.

Democrats in major U.S. cities have criticized the crackdown, saying it has terrorized law-abiding residents, separated families and hurt businesses.

Trump has long highlighted what he views as rampant crime in San Francisco and had signalled in recent weeks that he would send federal agents there.

“We’re going to San Francisco and we’ll make it great,” Trump told Fox News on Sunday.

WATCH | National Guard in Portland:
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