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Tax deal could get new life under top-line spending agreement on January 11, 2024 at 11:00 am Business News | The Hill

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Senate and House tax experts met Wednesday as they pushed to strike a tax deal that could reinstate business deductions in exchange for an enlargement of the child tax credit (CTC).

After failing to emerge from the yearly tax extenders debate at the ends of 2023 and 2022, the potential deal is getting new life as Congress attempts to pass a bipartisan spending bill ahead of a Jan. 19 deadline to avoid a partial shutdown.

Experts say the tax deal is closer to happening now in the wake of a $1.66 trillion top-line spending agreement announced over the weekend and a flurry of House and Senate meetings.

IRS Commissioner Danny Werfel was on Capitol Hill on Wednesday to brief the Senate Finance Committee on the employee retention tax credit (ERC). The ERC has been a locus of bogus business activity, and experts have considered changes as a way to pay for the CTC and business credit trade-off.

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Werfel told Senate Finance about the effect of pausing ERC claims processing following concerns about fraud, which resulted in a 40-percent decline in average weekly claims, according to a readout provided to The Hill.

“This month, the IRS will be sending more than 3,000 new compliance-related letters to companies with both processed and unprocessed claims. At the same time, we are working to put in place protections against fraud that will eventually allow us to process additional legitimate ERC claims,” Werfel told the committee.

Tax experts say they think a deal could be just around the corner and that the ERC could factor into it.

“We feel closer to a bipartisan agreement on the CTC and these big three business provisions than at any point in the last two and a half years, going back to late 2021,” Andrew Lautz, a fiscal policy analyst with the Bipartisan Policy Center, a Washington think tank, told The Hill.

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Lautz said he thought lawmakers were considering making changes to the ERC to help pay for the tax cuts coming out of the potential deal.

“The trend with the ERC is that it started as a pandemic-era tax break targeted at employers to make sure they kept workers on payroll during that really challenging time, and now it’s morphed into something different for the claimants, given the aggressive marketing and promotion around the credit,” he said.

However, political and practical obstacles to a deal remain, including potential resistance from state and local tax advocates as well as pushback on changing the tax code right before tax filing season opens on Jan. 29. What exactly the legislative vehicle would be is another open question, as House conservatives revolt against the agreement struck by Speaker Mike Johnson (R-La.) and Senate Majority Leader Chuck Schumer (D-N.Y.)

Despite the House tension, staffers on Capitol Hill tell The Hill that the broad contours of the tax deal are still in place.

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“Senator Wyden is focused on getting the biggest possible cut to child poverty through the CTC in exchange for a handful of business provisions,” a Democratic aide on the Senate Finance Committee told The Hill on Wednesday morning ahead of a meeting of the committee’s Democrats, led by Sen. Ron Wyden (D-Ore.)

The CTC was expanded during the pandemic shutdown and raised millions of children above the poverty line, motivating many economic progressives, as well as some Republicans, to argue for a more permanent expansion.

The credit was made fully refundable under the 2021 American Rescue Plan and was boosted from $2,000 to $3,600 for children younger than 6 years old and to $3,000 for children under the age of 18.

“One year on, the Census Bureau confirmed child poverty in 2021 was cut almost in half (a 46 percent reduction) from 2020 levels, down to the lowest levels on record. Census notes that approximately 90 percent of this historic reduction can be attributed to the expanded credit,” researchers from Columbia University wrote in a 2022 study of the CTC.

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Child poverty rose fast in that year after the expiration of the expanded credit, with 3.7 million more American children below the poverty line in January 2022 than in December 2021, the researchers noted.

Of the 2.9 million additional children kept above the poverty line by the CTC in 2021, about two-thirds were Black or Hispanic, with 716,000 Black children and 1.2 million Hispanic children lifted from poverty, according to a census study.

The Joint Committee on Taxation (JCT) found that after accounting for macroeconomic effects, the expanded CTC would reduce federal revenues by $1.4 trillion between 2022 and 2032.

The JCT analysis admits that it ignores “potential human capital losses from parents leaving the workforce” as well as “any potential long-run benefits from a reduction in child poverty.” 

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“Policymakers should prioritize the 19 million children who currently get only a partial Child Tax Credit or none at all because their families earn too little,” Chuck Marr, a vice president for tax policy at the Center for Budget and Policy Priorities, a left-leaning nonprofit, wrote in a Wednesday policy note.

The business deductions up for discussion in the deal are for research and experimentation costs, interest payments, and sped-up depreciation scheduling. While they apply to businesses across the economy, each provision has advantages for particular sectors.

Research and experimentation write-offs are favored by companies with intensive research and development, such those in the pharmaceutical and technology industries.

The interest deduction can boost profits for companies that use a lot of debt to transact their business, such as the leveraged buyouts undertaken by private equity firms.

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Deducting depreciation costs more quickly helps companies with a lot of fixed capital investment, like those in manufacturing and real estate.

All three deductions were taken away in the 2017 Tax Cut and Jobs Act (TCJA) — the Republican tax cut bill enacted by former President Trump — to help pay for the large reduction to the U.S. corporate tax rate, which was slashed to 21 percent from 35 percent.

All told, the TCJA will have added $1.46 trillion to the national deficit between 2018 and 2027, with $653 billion of that due to business tax reforms, according to the JCT.

Taking away the research write-offs gave the government $119.7 billion in revenue through 2027, while limiting interest deductions produced $253.4 billion, according to the JCT, though these numbers are likely to change substantially in the current deal-making process, especially if the timing of it is limited to 2025 when the larger provisions in the TCJA are set to expire.

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“The research credit … is by far the biggest,” Howard Gleckman, a tax analyst with the Urban-Brookings Tax Policy Center, told The Hill in an interview. “JCT estimates it’s around $140 billion between 2023 and 2025. The bonus depreciation is about half that, about $65 to $70 billion between ‘23 and ‘25. Business interest deduction is about $14 billion.”

Beyond speculation about the ERC, it’s not clear how the resumed business deductions or the CTC expansion would be paid for, or whether the tax cuts will simply be added to the deficit.

“I would be shocked if they paid for it,” Gleckman said. “This is why the budget deficit keeps going up. Instead of paying for new tax cuts, the deal that they make is, ‘You get yours and we get ours.’”

​Business, Domestic Taxes, News, business taxes, Child Tax Credit, Danny Werfel, IRS, Senate Finance Committee, Ways and Means Committee Senate and House tax experts met Wednesday as they pushed to strike a tax deal that could reinstate business deductions in exchange for an enlargement of the child tax credit (CTC). After failing to emerge from the yearly tax extenders debate at the ends of 2023 and 2022, the potential deal is getting new life…  

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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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