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Republicans win faster IRS cuts in funding deal on January 10, 2024 at 11:00 am Business News | The Hill

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A $1.66 trillion top-line spending agreement announced by congressional leaders this week will accelerate funding cuts to the Internal Revenue Service favored by Republicans.

The bipartisan deal would cut $10 billion from the IRS during fiscal 2024, one year earlier than Democrats and Republicans previously agreed on in a deal to raise the debt limit last summer. The debt limit deal included $20 billion in overall reductions to a controversial IRS funding boost.

The acceleration is the latest reduction in resources for the IRS, which was slated to receive $80 billion in funding through the 2022 Inflation Reduction Act.

The additional funding was intended to redesign the agency and reinvigorate U.S. tax collections with a focus on the richest taxpayers. But Republicans took immediate aim at the IRS funding increase, voting to repeal the entire allotment last year upon retaking the House and whittling away at it through successive funding deals.

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“The concessions we achieved will include an additional $10 billion in cuts to the IRS mandatory funding (for a total of $20 billion), which was a key part of the Democrats’ ‘Inflation Reduction Act,’” Speaker Mike Johnson (R-La.) wrote in a Sunday letter to fellow legislators.

“While these final spending levels will not satisfy everyone, and they do not cut as much spending as many of us would like, this deal does provide us a path to … move the process forward [and] reprioritize funding within the topline towards conservative objectives,” Johnson wrote, potentially indicating further pressure on the IRS in the future.

Republicans are now front-loading IRS cuts and paving the way for additional drawdowns in subsequent years, especially if they win big in the 2024 elections.

The new timetable means that one-quarter of the $80 billion funding bump for the IRS over the next decade has been nixed entirely within fiscal 2024.

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While experts say the remaining $60 billion is still more than enough for the IRS to push ahead with the main features of its renovation, the rapid pace of rescission suggests that additional cuts could force the IRS to alter course more substantially.

“This is a commitment. It’s actually going to happen,” Janet Holtzblatt, former head of tax policy studies in the tax analysis division of the Congressional Budget Office, told The Hill on Monday. “It does quietly open the door for more cuts down the road.”

“The cuts in the past have already been established. There is that room now to cut forward. [In no way] is it a good thing for the IRS,” she added.

However, Democrats say the new timetable for IRS cuts won’t disturb the agency’s ongoing modernization and operational update.

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“Thanks to this agreement preserving the same funding levels agreed to in the [Fiscal Responsibility Act], the IRS will still be able to maintain the critical investments we secured during the last congress,” a congressional Democratic aide said in a statement sent to reporters.

“By securing the $772.7 billion for non-defense discretionary funding, we can protect key domestic priorities,” Senate Majority Leader Chuck Schumer (D-N.Y.) and House Democratic Leader Hakeem Jeffries (D-N.Y.) said in a Sunday statement.

Democrats said the top-line deal paves the way for a more normal appropriations process for the rest of the year, as opposed to the chaotic negotiations that marked 2023 and took place at the risk of debt default and government shutdowns.

“Now the Appropriations Committees, led by Chair Patty Murray and Vice Chair Susan Collins in the Senate and Chairwoman Kay Granger and Ranking Member Rosa DeLauro in the House, can prepare full-year appropriations bills, free of poison pill policy changes,” Schumer and Jeffries said.

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Tax experts told The Hill that the likely effect of the cuts would be hiring fewer auditors, which is the most difficult part of the IRS’s new enforcement push. Auditing big companies and wealthy individuals takes a high level of expertise, they said, and auditors can often make more money in the private sector.

“This money did give the agency certainty with respect to hiring, because you just can’t bring in people one year and then say, ‘OK, we can’t have them the next’,” Holtzblatt said.

Taking away funds for tax collections will add to the national deficit, which has risen to higher, historic levels following the pandemic and is a sore spot for Republicans. 

Total public debt rose to 120 percent of gross domestic product (GDP) in the third quarter of 2023 after spiking above 130 percent in the immediate aftermath of the pandemic. In the eight years before the pandemic, national debt stayed at roughly the same level as GDP.

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The Congressional Budget Office estimated that the initial $80 billion funding bump for the IRS over the subsequent decade would result in $200 billion in additional revenue, for a net deficit reduction of around $120 billion, or around $12 billion a year.

That’s just 1.7 percent of the annual tax gap, which is the amount of money owed to the government each year but isn’t collected. Projected estimates of the tax gap updated in October put that number at $688 billion in tax year 2021.

Most of that comes from people and companies underreporting what they owe. Underreported taxes totaled $542 billion in tax year 2021 from an average $445 billion in tax years 2017-2019.

Advocacy organizations that support federal economic programming as well as budget hawks with an eye on the national deficit are united in their disapproval of the shrinking IRS budget.

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“Republicans profess concern about budget deficits. However, slashing IRS funding will only worsen the deficit by letting wealthy tax cheats off the hook. And there’s every reason for Democrats to expect that if they agree to Republicans’ blackmail over the IRS now that Republicans will demand further leniency for billionaires next year,” Adam Ruben, director of the Economic Security Project Action, said.

“Rather than passing legislation to expand the tax gap, Congress should be focused on efforts to further improve tax compliance,” the Committee for a Responsible Federal Budget, a Washington think tank, said in an October statement on IRS funding rescissions. “Such efforts have a long history of bipartisan support as they offer a way to raise revenue without increasing taxes.”

The IRS declined to answer questions from The Hill about the accelerated budget cuts and their effect on operations and planning at the agency.

​Business, News, appropriations bills, budget, budget deficit, IRS, irs funding, IRS funding boost, Mike Johnson A $1.66 trillion top-line spending agreement announced by congressional leaders this week will accelerate funding cuts to the Internal Revenue Service favored by Republicans. The bipartisan deal would cut $10 billion from the IRS during fiscal 2024, one year earlier than Democrats and Republicans previously agreed on in a deal to raise the debt limit…  

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Google Accused Of Favoring White, Asian Staff As It Reaches $28 Million Deal That Excludes Black Workers

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Google has tentatively agreed to a $28 million settlement in a California class‑action lawsuit alleging that white and Asian employees were routinely paid more and placed on faster career tracks than colleagues from other racial and ethnic backgrounds.

How The Discrimination Claims Emerged

The lawsuit was brought by former Google employee Ana Cantu, who identifies as Mexican and racially Indigenous and worked in people operations and cloud departments for about seven years. Cantu alleges that despite strong performance, she remained stuck at the same level while white and Asian colleagues doing similar work received higher pay, higher “levels,” and more frequent promotions.

Cantu’s complaint claims that Latino, Indigenous, Native American, Native Hawaiian, Pacific Islander, and Alaska Native employees were systematically underpaid compared with white and Asian coworkers performing substantially similar roles. The suit also says employees who raised concerns about pay and leveling saw raises and promotions withheld, reinforcing what plaintiffs describe as a two‑tiered system inside the company.

Why Black Employees Were Left Out

Cantu’s legal team ultimately agreed to narrow the class to employees whose race and ethnicity were “most closely aligned” with hers, a condition that cleared the path to the current settlement.

The judge noted that Black employees were explicitly excluded from the settlement class after negotiations, meaning they will not share in the $28 million payout even though they were named in earlier versions of the case. Separate litigation on behalf of Black Google employees alleging racial bias in pay and promotions remains pending, leaving their claims to be resolved in a different forum.

What The Settlement Provides

Of the $28 million total, about $20.4 million is expected to be distributed to eligible class members after legal fees and penalties are deducted. Eligible workers include those in California who self‑identified as Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and/or Alaska Native during the covered period.

Beyond cash payments, Google has also agreed to take steps aimed at addressing the alleged disparities, including reviewing pay and leveling practices for racial and ethnic gaps. The settlement still needs final court approval at a hearing scheduled for later this year, and affected employees will have a chance to opt out or object before any money is distributed.

H2: Google’s Response And The Broader Stakes

A Google spokesperson has said the company disputes the allegations but chose to settle in order to move forward, while reiterating its public commitment to fair pay, hiring, and advancement for all employees. The company has emphasized ongoing internal audits and equity initiatives, though plaintiffs argue those efforts did not prevent or correct the disparities outlined in the lawsuit.

For many observers, the exclusion of Black workers from the settlement highlights the legal and strategic complexities of class‑action discrimination cases, especially in large, diverse workplaces. The outcome of the remaining lawsuit brought on behalf of Black employees, alongside this $28 million deal, will help define how one of the world’s most powerful tech companies is held accountable for alleged racial inequities in pay and promotion.

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Luana Lopes Lara: How a 29‑Year‑Old Became the Youngest Self‑Made Woman Billionaire

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At just 29, Luana Lopes Lara has taken a title that usually belongs to pop stars and consumer‑app founders.

Multiple business outlets now recognize her as the world’s youngest self‑made woman billionaire, after her company Kalshi hit an 11 billion dollar valuation in a new funding round.

That round, a 1 billion dollar Series E led by Paradigm with Sequoia Capital, Andreessen Horowitz, CapitalG and others participating, instantly pushed both co‑founders into the three‑comma club. Estimates place Luana’s personal stake at roughly 12 percent of Kalshi, valuing her net worth at about 1.3 billion dollars—wealth tied directly to equity she helped create rather than inheritance.

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Kalshi itself is a big part of why her ascent matters.

Founded in 2019, the New York–based company runs a federally regulated prediction‑market exchange where users trade yes‑or‑no contracts on real‑world events, from inflation reports to elections and sports outcomes.

As of late 2025, the platform has reached around 50 billion dollars in annualized trading volume, a thousand‑fold jump from roughly 300 million the year before, according to figures cited in TechCrunch and other financial press. That hyper‑growth convinced investors that event contracts are more than a niche curiosity, and it is this conviction—expressed in billions of dollars of new capital—that turned Luana’s share of Kalshi into a billion‑dollar fortune almost overnight.

Her path to that point is unusually demanding even by founder standards. Luana grew up in Brazil and trained at the Bolshoi Theater School’s Brazilian campus, where reports say she spent up to 13 hours a day in class and rehearsal, competing for places in a program that accepts fewer than 3 percent of applicants. After a stint dancing professionally in Austria, she pivoted into academics, enrolling at the Massachusetts Institute of Technology to study computer science and mathematics and later completing a master’s in engineering.

During summers she interned at major firms including Bridgewater Associates and Citadel, gaining a front‑row view of how global macro traders constantly bet on future events—but without a simple, regulated way for ordinary people to do the same.

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That realization shaped Kalshi’s founding thesis and ultimately her billionaire status. Together with co‑founder Tarek Mansour, whom she met at MIT, Luana spent years persuading lawyers and U.S. regulators that a fully legal event‑trading exchange could exist under commodities law. Reports say more than 60 law firms turned them down before one agreed to help, and the company then spent roughly three years in licensing discussions with the Commodity Futures Trading Commission before gaining approval. The payoff is visible in 2025’s numbers: an 11‑billion‑dollar valuation, a 1‑billion‑dollar fresh capital injection, and a founder’s stake that makes Luana Lopes Lara not just a compelling story but a data point in how fast wealth can now be created at the intersection of finance, regulation, and software.

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Harvard Grads Jobless? How AI & Ghost Jobs Broke Hiring

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America’s job market is facing an unprecedented crisis—and nowhere is this more painfully obvious than at Harvard, the world’s gold standard for elite education. A stunning 25% of Harvard’s MBA class of 2025 remains unemployed months after graduation, the highest rate recorded in university history. The Ivy League dream has become a harsh wakeup call, and it’s sending shockwaves across the professional landscape.

Jobless at the Top: Why Graduates Can’t Find Work

For decades, a Harvard diploma was considered a golden ticket. Now, graduates send out hundreds of résumés, often from their parents’ homes, only to get ghosted or auto-rejected by machines. Only 30% of all 2025 graduates nationally have found full-time work in their field, and nearly half feel unprepared for the workforce. Go to college, get a good job“—that promise is slipping away, even for the smartest and most driven.​

Tech’s Iron Grip: ATS and AI Gatekeepers

Applicant tracking systems (ATS) and AI algorithms have become ruthless gatekeepers. If a résumé doesn’t perfectly match the keywords or formatting demanded by the bots, it never reaches human eyes. The age of human connection is gone—now, you’re just a data point to be sorted and discarded.

AI screening has gone beyond basic qualifications. New tools “read” for inferred personality and tone, rejecting candidates for reasons they never see. Worse, up to half of online job listings may be fake—created simply to collect résumés, pad company metrics, or fulfill compliance without ever intending to fill the role.

The Experience Trap: Entry-Level Jobs Require Years

It’s not just Harvard grads who are hurting. Entry-level roles demand years of experience, unpaid internships, and portfolios that resemble a seasoned professional, not a fresh graduate. A bachelor’s degree, once the key to entry, is now just the price of admission. Overqualified candidates compete for underpaid jobs, often just to survive.

One Harvard MBA described applying to 1,000 jobs with no results. Companies, inundated by applications, are now so selective that only those who precisely “game the system” have a shot. This has fundamentally flipped the hiring pyramid: enormous demand for experience, shrinking chances for new entrants, and a brutal gauntlet for anyone not perfectly groomed by internships and coaching.

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Burnout Before Day One

The cost is more than financial—mental health and optimism are collapsing among the newest generation of workers. Many come out of elite programs and immediately end up in jobs that don’t require degrees, or take positions far below their qualifications just to pay the bills. There’s a sense of burnout before careers even begin, trapping talent in a cycle of exhaustion, frustration, and disillusionment.

Cultural Collapse: From Relationships to Algorithms

What’s really broken? The culture of hiring itself. Companies have traded trust, mentorship, and relationships for metrics, optimizations, and cost-cutting. Managers no longer hire on potential—they rely on machines, rankings, and personality tests that filter out individuality and reward those who play the algorithmic game best.

AI has automated the very entry-level work that used to build careers—research, drafting, and analysis—and erased the first rung of the professional ladder for thousands of new graduates. The result is a workforce filled with people who know how to pass tests, not necessarily solve problems or drive innovation.

The Ghost Job Phenomenon

Up to half of all listings for entry-level jobs may be “ghost jobs”—positions posted online for optics, compliance, or future needs, but never intended for real hiring. This means millions of job seekers spend hours on applications destined for digital purgatory, further fueling exhaustion and cynicism.

Not Lazy—Just Locked Out

Despite the headlines, the new class of unemployed graduates is not lazy or entitled—they are overqualified, underleveraged, and battered by a broken process. Harvard’s brand means less to AI and ATS systems than the right keyword or résumé format. Human judgment has been sidelined; individuality is filtered out.

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What’s Next? Back to Human Connection

Unless companies rediscover the value of human potential, mentorship, and relationships, the job search will remain a brutal numbers game—one that even the “best and brightest” struggle to win. The current system doesn’t just hurt workers—it holds companies back from hiring bold, creative talent who don’t fit perfect digital boxes.

Key Facts:

  • 25% of Harvard MBAs unemployed, highest on record
  • Only 30% of 2025 grads nationwide have jobs in their field
  • Nearly half of grads feel unprepared for real work
  • Up to 50% of entry-level listings are “ghost jobs”
  • AI and ATS have replaced human judgment at most companies

If you’ve felt this struggle—or see it happening around you—share your story in the comments. And make sure to subscribe for more deep dives on the reality of today’s economy and job market.

This is not just a Harvard problem. It’s a sign that America’s job engine is running on empty, and it’s time to reboot—before another generation is locked out.

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