Debate about whether artificial intelligence can replicate the intellectual labor of doctors, lawyers, or PhDs forgoes a deeper concern thats looming: Entire companiesnot just individual jobsmay be rendered obsolete by the accelerating pace of AI adoption.
Reports suggesting OpenAI will charge $20,000 per month for agents trained at a PhD level spun up the ongoing debate about whose job is safe from AI and whose job is not.
Ive not seen it be that impressive yet, but its likely not far off, James Villarrubia, head of digital innovation and AI at NASA CAS, told me.
Sean McGregor, the founder of Responsible AI Collaborative who earned a PhD in computer science, pointed out how many jobs are about more than just a set of skills: Current AI technology is not sufficiently robust to allow unsupervised control of hazardous chemistry equipment, human experimentation, or other domains where human PhDs are currently required.
The big reason I polled the audience on this one was because I wanted to broaden my perspective on what jobs would be eliminated. Instead, it changed my perspective.
AI needs to outperform the system, not the role
Suzanne Rabicoff, founder of the human agency think tank and fractional practice, The Pie Grower, gave me some reading assignments from her work, instead of a quote.
Her work showed me that these times are unprecedented. But something clicked in my brain when she said in her writing that she liked the angle of more efficient companies rising instead of jobs being replaced at companies with a lot of tech and human capital debt. Her response to that statement? Exactly my bet.
Sure, this is the first time that a robot is doing the homework for some college students. However, there is more precedent for robots moving market share than for replacing the same job function across a sector.
Fortune 500 companiesespecially those bloated with legacy processes and redundant laborare always vulnerable to decline as newer, more nimble competitors rise. And not because any single job is replaced, but because the foundational economics of their business models no longer hold.
AI doesnt need to outperform every employee to render an enterprise obsolete. It only needs to outperform the system.
Case study: The auto industry
Take, for example, the decline of American car manufacturers in the late 20th century.
In the 1950s, American automakers had a stranglehold on the car industry, not unlike todays tech giants. In 1950, the U.S. produced about 75% of the world’s cars.
But in the 1970s, Japanese automakers pioneered the use of robotics in auto manufacturing. These companies produced higher-quality vehicles at great value thanks to leaner operations that were also more precise.
Firms like GM struggled to keep up, burdened by outdated factories and excessive human capital costsincluding bloated pensions.
The seismic shift in the decades to follow paints a picture of what could be in store for large companies now. In 1960, the U.S. produced about 48% of the worlds cars, while Japan accounted for just 5%. By 1980, Japan had captured around 29% of the market, while the U.S. had fallen to 23%.
Todays AI shakeup could look similar. Decades from now, we could look at Apple similarly to how we look at Ford now. AI startups with more agile structures are poised to eat market share. On top of that, startups can focus on solving specialized problems, sharpening their competitive edge.
Will your company shrivel and die?
The fallout has already begun. Gartner surveyed organizations in late 2023, finding that about half were developing their own AI tools. By the end of 2024, that dropped to 20%. As hype around generative AI cools, Gartner notes that many chief information officers are instead using outside vendorseither large language model providers or traditional software sellers with AI-enhanced offerings. In 2024, AI startups received nearly half of the $209 billion in global venture funding. If only 20% of legacy organizations currently feel confident competing with these upstarts, how many will feel that confidence as these startups mature?
While headlines continue to fixate on whether AI can match PhD-level expertise, the deeper risk remains largely unspoken: Giant companies will shrivel and some may die. And when they do, your job is at risk whether you greet customers at the front desk or hold a PhD in an engineering discipline.
But there are ways to stay afloat. One of the most impactful pieces of advice I ever received came from Jonathan Rosenberg, former SVP of products at Google and current advisor to Alphabet, when I visited the companys campus in college. You can’t just be great at what you do, you have to catch a great wave. Early people think it’s about the company, then the job, then the industry. It’s actually industry, company, job…
So, how do you catch the AI wave?
Ankur Patel, CEO of Multimodal, advises workers to learn how to do their current jobs using AI tools that enhance productivity. He also notes that soft skillsmobilizing people, building relationships, leading teamswill become increasingly valuable as AI takes over more technical or routine tasks.
You cant have AI be a group leader or team leader, right? I just dont see that happening, even in the next generation forward, Patel said. So I think thats a huge opportunityto grow and learn from.
The bottom line is this: Even if the AI wave doesnt replace you, it may replace the place you work. Will you get hit by the AI waveor will you catch it?
George Kailas is CEO of Prospero.ai.
Congratulations! Youve just closed a funding round or hit a major milestone in your companys journey. Now, its time to share this exciting moment with the world.
As a founder or company leader, you know how important it is to communicate major news to investors, partners, customers, and other stakeholders. But the steps you take when developing your communications strategy can make or break its true impact.
Here is your communications playbook for developing a well-planned strategy that ensures your next milestone attracts the attention of media, employees, partners, and those who matter most.
1. Establish your North Star.
As a first order of business, you need to align internally on your goals for this announcement as they relate to your broader business priorities. Determining what success looks like from the beginning is the baseline for developing a strategy that will actually get you there.
Theres often an inherent, unintentional disconnect in communications priorities and planning across teams no matter how big or small the company. Its important to ensure there is internal alignment, so everyone is working toward the same goalor often, goals (plural).
2. Tap your agency (or agencies) for help.
Planning and timing are everything. The sooner you tap your communications agency to support you on this journey, the better. Remember: Most agencies have NDAs, so any confidential information pre-announcement should be secureand if you have doubts, its probably time to revisit that partnership.
Best practice would be to update your agency as soon as possible to ensure proper planning, prep and media outreach. Realistically speaking, though, the right partner is there to support you, evenand especially!in a crunch.
This is one of the many reasons why having the right agency partner is so important. You want to feel confident and secure in the choice youve made in an agency partner when youre heading into big moments. Remember, they do this often across multiple clients, and have the war stories to inform their suggested approach.
3. Nail down your narrative.
Milestones are perfect opportunities to evaluate your current messaging and ensure it aligns with your evolving business and priorities. Take a moment to update any outdated messaging as part of your broader corporate narrative, and be sure to develop key talking points around this specific announcement.
Leverage this moment to share how youve progressed as a company and tip your proverbial hat to the future. Also be mindful of the varied audiences youre trying to reach and tailor your talking points to those specific personas.
“Funding announcements, in particular, validate everything you’ve told external audiencesaffirming the strength of your business model, the potential for future growth, and the unique value you bring to your industry, explains Dinh Lai, chief marketing officer at bolt[DA1] , a leading distribution platform for property and casualty insurance. They’re proof from a third party that has done the due diligence and, most importantly, backed you with their capital.
4. Develop your media strategy.
A strong media strategy is the backbone of your announcement. Its important to work with your agency to determine which outlets and journalists are going to be most interested in this story and to develop a proper execution plan.
Media relations, like much in life, is about balancing urgency with strategy. The more time you allow for proper outreach, the betterparticularly as newsrooms evolve and breaking news happens seemingly every second.
If you have a compelling story to tell, aim for an exclusive. Exclusives give journalists a reason to prioritize your story by providing early access before the news is shared more broadly. However, you need to ensure youre giving reporters ample time to do their job.
As part of your media strategy, dont forget to consider ways to get more mileage out of this moment. Leverage the announcement as an opportunity to nurture media relationships for the future and tie back to this milestone in future announcements.
5. Equip your spokespeople.
Determine your spokespeople for the announcement and ensure they are aligned on key messaging, so everyone is telling a cohesive story. While consistency is important, it can also be powerful to include a variety of voices and incorporate unique experiences whenever possible.
For example, funding announcements and major milestones are an opportunity for the founder or cofounders to share the journey that brought the company to where it is today, while the broader leadership team can speak to how they’re helping to shape its future.
Similarly, enlisting partners, investors, or outside experts for third-party validation also can be a powerful addition to your narrative and help attract the attention of the mediaparticularly if youre aiming for an exclusive.
6. Leverage your teams network.
Ensure you have a strategy for rolling out this news internally. While building excitement with your team can deepen the impact of your external communications, its important to take a balanced approach and avoid oversharing to safeguard against any confidential information being shared before your announcement.
After the announcement is live, encourage your team and your broader network to help amplify the news and any resulting media coverage on social media. LinkedIn, for example, is a good connector and a cost-effective way to increase reach and engagement around big moments.
Milestones are not only powerful externally, but they are also a source of pride and confidence internally. Maximize reach by bringing to bear your entire network, including investors and agency partners, Lai says.
7. Dont forget to celebrate.
And finally, take the time to appreciate this milestone. Its easy to immediately shift your focus to whats next or how this announcement could have gone in a different direction. Save that for laterhindsight is 20/20. Acknowledge your wins and celebrate your progress as a team. After all, youve come so far!
Grace Keith Rodriguez is CEO of Caliber Corporate Advisers.
The ability to stay connected through technology plays a pivotal role in our everyday lives, but in some areas of our lives we are only beginning to realize the life-saving potential of smart technology. This is particularly true in the world of fire and carbon monoxide (CO) safety, where timing can be the difference between life and death.
We know that having working smoke alarms in the home can double the likelihood of safely escaping a house fire. Due to modern synthetic materials and open floor plans, fires today are burning hotter and faster. In an emergency, every second counts.
Smart technology that provides real-time notifications and remote monitoring capabilities is emerging as a crucial tool for protecting both lives and property. This is especially vital when we have elderly parents who might not respond quickly to alarms, or beloved pets who can’t communicate their distress when smoke or CO threatens their safety and were not at home. Building these smart capabilities into both smoke and CO alarms could help save lives.
Stay informed from anywhere with smart tech
According to a 2023 survey, 85% of Americans own at least one smart home device. With smart and connected technology becoming a household staple, it is our goal to make sure that safety is prioritized at the same rate as convenience. Families who invest in connected safety devices are not merely adopting the latest trendy gadgets, but are in fact investing in the most efficient way to help protect what matters mostour loved ones and the home we create memories in.
The most effective smart safety solutions operate seamlessly in the background of our busy lives, providing peace of mind without requiring constant attention. These systems can alert us to potential dangers whether we’re at home cooking dinner, sleeping upstairs, or traveling around the world.
At Kidde, we leaned into this idea when collaborating with Ring to introduce a collection of smart smoke alarms and smoke and CO combination alarms. With built-in Ring technology and an optional monitoring service to help protect homes from anywhere, this connected technology can be used to help save lives and property. But this is just the tip of the iceberg for how connected tech can transform the home safety landscape.
Smoke and CO alarms can communicate with other smart devices
The integration of smart technology into home fire safety and CO devices is in the process of revolutionizing how we protect our homes. Strategic collaborations present massive opportunities for brands that are willing to combine their expertise and identify avenues for innovation that will put smarter safety solutions into the hands of consumers.
Remote alerts and monitoring: Today’s connected smoke and CO alarms can send immediate notifications to smartphones regardless of location, allowing for faster emergency responses even when no one is home. Many systems now offer the option of professional monitoring services that can dispatch emergency services if needed.
Interconnected systems: Modern smoke and CO alarms can communicate with each other, ensuring that when one alarm sounds, all alarms in the home activate. This is crucial for multi-story homes where occupants might not hear an alarm on a different floor. The most advanced safety technology doesn’t operate in isolation. Smoke and CO alarms can now communicate and act in conjunction with other smart tech in the home.
Regulations help keep consumers safe
Despite the many benefits that smarter technology can provide for the fire safety industry, its only one piece of the puzzle. Common sense standards and regulations are also necessary to ensure the public health is consistently and equitably protected.
Regulations covering fire and life safety technology are key to our safety given that Americans spend roughly 90% of their time indoors. Voluntary standards, which are often adopted into code or incorporated by reference in legislation, are developed in a consensus-driven method by industry experts, firefighters, academia, consumers, and other stakeholders to help set minimum performance requirements for products and services. Our input into this process, alongside key partners, helps us innovate to meet the demands of present and future customers and help keep more people safe.
However, consumers are often unaware of safety codes and standards. Recently, Miller Gardner, son of former Yankee Brett Gardner, died from exposure to carbon monoxide, while vacationing in Costa Rica. The U.S. Embassy in Costa Rica underscored these travel safety concerns, noting that most countries in Latin America, including Costa Rica, do not have widespread laws mandating carbon monoxide detectors. However, some businesses (like hotels) or embassies may voluntarily install them due to safety concerns. To avoid tragic situations like this, Kidde suggests all travelers take a battery powered CO alarm that fits in their luggage.
Ultimately, knowledge of standards and emergency preparedness is perhaps the most important tool anyone can have at their disposal. Because of that simple truth, weve made fire and CO safety education one of our core missions to help keep consumers informed. And now, smarter technology is helping consumers have more knowledge than ever about the state of their home.
Connected, smart technology can save lives
Humans are flawed. We forget things, we mess up, and we assume a home fire will never happen to us. Technology can function like another version of ourselves, always keeping an eye out for our safety. Our partnership with Ring demonstrates how essential and transformative collaboration can be to developing solutions that meet this type of need and make home safety an integral and seamless part of your everyday life.
When it comes to the safety of our families and homes, theres no such thing as being over-prepared.
Isis Wu is president of Residential Fire & Safety at Kidde.
U.S. hospitals generate nearly six million tons of waste each year, and a single patient can be responsible for more than 30 pounds a day. Much of that waste comes from the operating room (OR), which accounts for up to a third of a hospitals total output and is among the most expensive areas to manage.
A large portion comes from single-use devices, packaging, and transport materials. These practices are often criticized, and not without reason. But in settings like transplantation, much of that waste is directly tied to protecting patients.
Im often asked, Why not make devices reusable? or What about the environmental impact? After years in the OR and working alongside transplant teams, Ive asked those same questions. The answers arent black and white, but that doesnt mean we should stop asking.
Sustainability often gets reduced to packaging claims or material swaps. But the real impact lies in the systems we build around the product. Thats the conversation we need to be having.
Why single-use still matters
Some of the industrys most criticized practices, like single-use devices, are also the least negotiable. Single-use eliminates the need for sterilization between uses, simplifies prep and cleanup, and reduces the risk of infection.
The FDA permits reprocessing of certain single-use tools, but only under strict conditions. Nowhere is that margin tighter than in organ transplantation. There are no do-overs when youre handling a human organ. Transplant patients are especially vulnerable to infection due to immunosuppression, and even small lapses in sterility can lead to serious complications.
Device-associated infections, from central lines, catheters, and ventilators, are among the most common and serious complications following transplant. The CDC also notes that while concerns persist about reusing single-use devices, more research is needed to define the risks. Devices that reduce infection risk and prevent complications can lead to fewer readmissions, which means fewer hospital resources used and better sustainability over time.
The systems around the product
Many conversations about sustainability start and stop with the product itself, whether its recyclable, biodegradable, or made with green materials. But many of the most wasteful decisions happen in how a product moves through the system that supports it. And when that system spans hospitals, suppliers, procurement teams, and legal departments, its not built for fast change. Even when the intention is there, funding constraints, liability concerns, and the challenge of making changes across large networks often stand in the way.
While a fragmented system cant solve the footprint of a single device, medical device companies still have control over how their products are moved and managed, and thats where meaningful change can start.
Flying devices around the world might be fast, but it adds unnecessary emissions to an already resource-intensive process. And its often done not because its needed, but because its familiar. Shifting to road transport takes more coordination, but it significantly cuts emissions and gives teams more control over when and how products arrive.
What happens after delivery matters just as much. Without a plan for how products are returned, stocked, or moved, operations can shift into reaction mode. Thats when waste shows up through emergency shipments, over-ordering, and unused inventory. In kidney transplant, for example, reusable machine perfusion systems have improved outcomes, but broader use has revealed logistical friction, including turnaround delays and higher discard rates.
Inefficient habits tend to stay hidden until the consequences catch up. For years, private air travel has been the default in time-sensitive cases, but it comes with a steep environmental cost. At my current company, our team found that one chartered jet can emit as much carbon as manufacturing 200 single-use medical devices. With better planning, commercial flights can often meet the same clinical timelines and reduce emissions without compromising care.
Sustainability has to show up in the operational decisions because if the systems around the product are wasteful, it doesnt matter how recyclable the product is. Recyclability wont negate the carbon footprint of wasteful shipping, inefficient production, or reactive inventory habits. A product isnt sustainable if it arrives on a private jet, was rushed through the supply chain, or sits unused on a shelf.
Sustainability starts with better questions
Healthcare wont eliminate waste entirely. But small changes matter. Reducing reliance on private air travel. Avoiding emergency shipments. Moving production closer to where products are used. None of it sounds radical. But over time, it adds up. And more often than not, it comes down to refusing to accept waste as the cost of doing business.
For healthcare leaders, its worth stepping back to examine the systems tied to a product and where a few deliberate improvements could make an impact.
Not every change requires an overhaul. But the right operational shift, at the right point in the process, can reduce waste without ever touching the safety of patient care. And if enough companies commit to that kind of thinking, thats how you move an industry forward.
Lisa Anderson is president and founder of Paragonix Technologies.
Bulgaria is a step closer toward becoming the 21st country to adopt the euro and join the euro zone.
On June 3, the European Commission announced that the Balkan nation now fulfills the four nominal convergence criteria requirements to adopt the single currency and enter the euro zone, and it may transition as soon as January 1, 2026.
“The euro is a tangible symbol of European strength and unity,” European Commission President Ursula von der Leyen said in a statement. “Bulgarias economy will become stronger, with more trade with euro area partners, foreign direct investment, access to finance, quality jobs and real incomes. Bulgaria will take its rightful place in shaping the decisions at the heart of the euro area.”
Bulgaria first joined the European Union in 2007, and like other members, agreed to eventually adopt the single currency. Out of the 27 member states, only 20 countries currently use the euro, which is the second most-used currency in the world with 341 million users.
While the green light from the commission paves the path for the poorest EU member state to integrate into the euro zone and get rid of its national currency, the lev, its road to getting here hasn’t been easy, and not all Bulgarians are happy about it. Here’s what to know.
What is the euro zone?
All 27 European Union members, who had to formally apply and be accepted into the union, coordinate economic policy as a part of the European Monetary Union. However, not all EU members use the single currency, and only those who have replaced their national currencies for the euro are considered to be part of the “euro zone.”
While countries have slowly been admitted, the latest addition to the euro zone was Croatia in 2023. In addition to Bulgaria, the six other nations who are yet to transition to the euro zone include Denmark, Sweden, Poland, Hungary, Romania, and the Czech Republic.
Upon being accepted into the European Union, members (except Denmark, due to an “op-out” clause) are required to adopt the euro once they meet the convergence criteria. The criteria requires countries to fulfill requirements for price stability, sustainable public finances, sustainable interest rates, and stable exchange rates.
Before formally adopting the single currency, the decision still needs approval from EU ministers, which are expected to green-light the transition per the commission’s recommendation.
Why now?
Bulgaria had failed to meet convergence criteria in the past, as it requires countries not to have consumer inflation higher than 1.5% above the top three euro zone performers.
Now, with a new review by the European Commission and the European Central Bank, Bulgaria has met the requirements, setting itself up for a transition early next year.
Not everyone is happy about joining
While long awaited, the transition has met opposition from Bulgarian citizens and Bulgarian pro-Russian and anti-euro political leaders.
A recent survey showed the country is split, with 50% of Bulgarians opposing the euro. The country, which has a population of 6.4 million, also saw several thousands of protesters earlier this year opposing the currency adoption, with thousands more demanding a referendum.
The crew of a cargo ship carrying 3,000 vehicles to Mexico, including 800 electric vehicles, abandoned ship after they could not control a fire in waters off Alaska’s Aleutian island chain.
Smoke was initially seen coming from the deck loaded with electric vehicles Tuesday, according to a Wednesday statement from the ships management company, London-based Zodiac Maritime.
There were no reported injuries among the 22 crew members of the Morning Midas.
Crew members abandoned ship and were later transferred from lifeboats to a nearby merchant vessel in the North Pacific Ocean, roughly 300 miles (485 kilometers) southwest of Adak Island in Alaskas Aleutian chain. Adak is about 1,200 miles (1,930 kilometers) west of Anchorage, the state’s largest city.
The crew initiated emergency firefighting procedures with the ship’s onboard fire suppression system, but they couldnt bring the flames under control.
The relevant authorities have been notified, and we are working closely with emergency responders, with a tug being deployed to support salvage and firefighting operations, a statement from the management company said. Our priorities are to ensure the continued safety of the crew and protect the marine environment.
The U.S. Coast Guard said it is sending air crews to Adak and a ship to the area.
The 600-foot (183-meter) Morning Midas, a car and truck carrier, was built in 2006 and sails under a Liberian flag. The cars left Yantai, China, on May 26, according to the industry site marinetraffic.com. They were being shipped to Mexico’s major Pacific port of Lázaro Cárdenas.
By Mark Thiessen, Associated Press
Rather than sitting at home watching your favorite influencer unbox gifts from their all-expenses-paid brand trip, now the rest of us have a chance to feel like an influencer for a day.
Last week, Brandon Edelman, the same TikTok creator who recently went viral for sharing his $768,000-a-year salary, launched his very own Bran Trip, his version of the ubiquitous influencer brand trip.
Attendees were chosen via video application using the hashtag #thebrantrip. Three of Edelmans lucky followers and their plus-ones were then transported to their own suites at the Bellevue Hotel in Philadelphia for the weekend. The trip included tickets to a Phillies game, facials, and an IV lounge for recovery from the night before.
@bran__flakezz I AM SO EXCITED #thebrantrip @Lindsay Anderson @carter @Tierra Money @Jocelyn Vargas @Drink Poppi @Beis Travel @GarnierUSA @Ferkos Fine Jewelry @Shark Beauty @Coastal Caviar @EVRY JEWELS @@KIND Snacks @TOPICALS original sound – bran_flakezz
Of course, it wouldnt be an influencer-hosted trip without gifting from 30 different brands. This included gifted outfits from Abercrombie & Fitch, initial necklaces from Ferkos (a Westchester-based fine jewelry company), a $349 CryoGlow LED mask from Shark, and Béis luggage to get their goodies back home, Edelman told Glossy.
@bran__flakezz #thebrantrip DAY ONE SETUP!! @UrInternetBF @Lindsay Anderson @Eli Rallo @corinna carter @Tierra Money @tykiadee @Jocelyn Vargas @Alexandria @Olivia Palacio #philly #philadelphia original sound – Penny B Hollywood
While influencer fan meetups are nothing new, these events have evolved from the thousands-strong gatherings of the 2010s, where excited fans queued for hours for a quick hug and a selfie with their favorite influencer. Now, influencers are inviting followers in and building community in intimate settings that align with their personal brands.
Just like some influencers have been taking their followers out for dinner, I want to take you to a workout class, New York-based influencer Danielle Pheloung posted in April. The next month, Pheloung hosted 25 girls at the heated workout studio Fuze House in Tribeca. The event was on-brand for Pheloung, with early morning workouts a staple in her videos. After the free class, each attendee left with a bag full of items gifted by some of Pheloungs favorite brands including Smart Sweets, Lancôme, and Ouai.
@daniellephe Such a special day! Cant wait to do more of these evergreen – favsoundds
These fan meetups are part of a larger shift in the creator economy and beyond, from online to offline. For years, creators chased virality online, but these days, influence is about access, not scale, Casey Lewis, writer of After School, a newsletter about youth consumer trends, wrote in a recent Substack post. Follower count matters less than who actually shows up.
Often dubbed the loneliest generation, Gen Z has figured out that the secret to making friends is organizing their own third spaces and meetups. According to a new study from Eventbrite, 95% of Gen Z and Millennials are interested in turning online interests into real-world interactions.
Brands are noticing this shift, and platforms are stepping in to help facilitate meaningful community marketing opportunities. Last month, the youth research firm dcdx launched Offline, a platform connecting brands with real-life communities to co-host and sponsor events ranging from micro-community activations for dozens to meetups of hundreds. As Offline founder Andrew Roth told Forbes: Just as the Influencer rose to fame, so will the Host.
As the Senate debates President Donald Trump’s giant tax bill, the One Big Beautiful Bill Act, which includes trillions of dollars in tax breaks, some smaller business owners are worried they might miss out on a popular deduction for state and local taxes (the SALT deduction), which is commonly referred to by its acronym.
The debate over SALT was one of the sticking points that delayed passage of the bill in the House.
The current version of the House Republican-sponsored tax bill would raise the federal deduction limit for state and local taxes (SALT) from $10,000 to $40,000, which would phase out when income hits $500,000.
The bill would also increase the qualified business income (QBI) deduction, set to expire in 2025, from 20% to 23% starting in 2026, and make it permanent. The QBI deduction applies to so-called pass-through businesses, such as S corporations, partnerships, and sole proprietors like freelancers and contract workers.
However, it would end a much used state-level SALT cap work-around for some of those pass-through business owners, according to CNBC.
The SALT deduction was enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA). Lawmakers in high-tax states like New York, New Jersey, and California have long wanted to raise the cap, claiming that their states are paying more in federal taxes than they are getting back, leaving residents with a much larger bill. Before Trumps 2017 tax bill imposed a $10,000 ceiling, those states’ residents could write off their state and local taxes.
However, the Senate could still modify the proposal as it debates the bill. There are concerns that allowing business owners to deduct up to $40,000 from their federal taxes means the government would collect less taxes, adding further to the nation’s deficit.
On Wednesday, the Congressional Budget Office (CBO) estimated that the megabill would add $2.4 trillion to the deficit, and its tax cuts would decrease revenue by more than $3.6 trillion over the next decade or so, per The Hill.
Senate majority leader John Thune of South Dakota, who told Politico he hopes to pass the megabill by the Republicans’ July 4 deadline, said the SALT cap might have to come down to raise revenue to cover the expenses of the president’s “big” (or as some say, “expensive”) tax bill. The House had initially raised the cap to $30,000 in the previous plan.
Amazon plans to invest $10 billion toward building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure, bringing a massive shot in the arm to a region where many textile and apparel jobs dried up a generation ago.
Amazon said Wednesday that its investment in rural Richmond County should create at least 500 jobs and support thousands more through construction and data center supply chain providers, according to statements from the company and Gov. Josh Steins office. Stein called the investment one of the largest in state history.
Data centers are already familiar to North Carolinas landscape, including those operated by Apple. This project could transform Richmond County, which is on the South Carolina border and has a population of about 42,000.
The Richmond County site is expected to employ engineers, network and security specialists and other technical roles, the company said. Amazon said it would provide support for universities, community colleges and other workforce training programs to help people enter data center and broadband expansion fields.
This investment will position North Carolina as a hub for cutting-edge technology, create hundreds of high-skilled jobs, and drive significant economic growth, Amazon chief global affairs and legal officer David Zapolsky said. We look forward to partnering with state and local leaders, local suppliers, and educational institutions to nurture the next generation of talent.
Richmond County commissioners approved an incentives package for Amazon on Tuesday. The company could receive annual cash grants for 20 years equal to portions of the real estate property tax and the property tax for vehicles and equipment at each data center contingent on job creation and monetary investment thresholds, The Richmond Observer reported.
This project will truly transform our community in ways that we cannot imagine, Richmond County Manager Bryan Land said at Tuesdays commissioners meeting. With the announcement comes large-scale upgrades to our water system, Rockinghams wastewater system and our fiber optic infrastructure throughout our county all of which will come at a cost to our Richmond County taxpayers of zero.
Steins office, which called the project an innovation campus, said the data centers will contain servers, storage drives, networking equipment and other technology.
Artificial intelligence is changing the way we work and innovate, and I am pleased that North Carolina will stay at the forefront of all thats ahead as we continue to attract top technology companies like Amazon, Stein said. The governor attended a public announcement about the investment on Wednesday at an investment in Hamlet.
The company said it has invested $12 billon in North Carolina since 2010 and supports 24,000 full- and part-time jobs.
A small government office with some 275 employees has found itself caught in the political crossfire as Congress debates President Donald Trumps one big, beautiful bill.”
The Congressional Budget Office has projected that the legislation would increase federal deficits by about $2.4 trillion over 10 years. That’s a problem for a Republican Congress that has spent much of the past four years criticizing former President Joe Biden and Democrats for the nation’s rising debt levels.
The White House and Republican leaders in Congress are taking issue with CBO’s findings. They say economic growth will be higher than the office is projecting, resulting in more revenue coming into government coffers. Meanwhile, Democrats are touting CBO’s findings as evidence of the bill’s failings.
Here’s a look at the office at the center of Washington’s latest political tug-of-war.
What is the CBO?
Lawmakers established the Congressional Budget Office more than 50 years ago to provide objective, impartial analysis to support the budget process. The CBO is required to produce a cost estimate for nearly every bill approved by a House or Senate committee, and will weigh in earlier when asked to do so by lawmakers.
It also produces a report each Congress on how to reduce the debt if lawmakers so choose, with each option including arguments for or against. Plus, it publishes detailed estimates when presidents make proposals that would affect mandatory spending, which includes programs such as Social Security and Medicare.
Lawmakers created the office to help Congress play a stronger role in budget matters, providing them with an alternative to the Office of Management and Budget, which is part of a Republican or Democratic administration, depending upon the president in office.
Is the CBO partisan?
CBO hires analysts based on their expertise, not political affiliation. Staff is expected to maintain objectivity and avoid political influence. In evaluating potential employees, the CBO says that for most positions, it looks at whether that person would be perceived to be free from political bias.
Like other federal employees, the CBO’s staff is also prohibited from making political contributions to members of Congress.
The CBO’s director, Phillip Swagel, served in former Republican President George W. Bushs administration as an economic adviser and as an assistant secretary at the Treasury Department.
Why is the CBO being attacked now?
The stakes are incredibly high, with Republicans looking to pass their massive tax cut and immigration bill by early July.
Outside groups, Democrats, and some Republicans are highlighting CBO’s analysis that the bill will increase federal deficits by about $2.4 trillion over 10 years and leave 10.9 million more people uninsured in 2034.
Republicans spent much of Biden’s presidency focused on curbing federal deficits. They don’t want to be seen as contributing to the fiscal problem.
GOP lawmakers say the CBO isn’t giving enough credit to the economic growth the bill will create, to the point where it would be deficit-neutral in the long run, if not better.
“The CBO assumes long-term GDP growth of an anemic 1.8%, and that is absurd,” said White House press secretary Karoline Leavitt. The American economy is going to boom like never before after the One Big, Beautiful Bill is passed.
Republicans began taking issue with the CBO even before Trump and the current Congress were sworn into office.
CBO will always predict a dark future when Republicans propose tax reliefbut the reality is never so dire,” Rep. Jason Smith, the Republican chairman of the House Ways and Means Committee, said in a December news release.
Recently, House Speaker Mike Johnson has been taking digs at the office. The CBO is notorious for getting things WRONG, he said in a Facebook post.
What did CBO say about the tax cuts enacted in Trump’s first term?
In April 2018, CBO said that tax receipts would total $27 trillion from fiscal years 2018 to 2024.
Receipts came in about $1.5 trillion higher than the CBO projected. Republicans have seized on that discrepancy.
But the numbers don’t tell the whole story. Some of the criticism of the CBO ignores the context of a global pandemic as the federal government rushed to prop the economy up with massive spending bills under both Trump and Biden.
In a blog post last December, Swagel pointed out three reasons for the higher revenues: The primary reason was the burst of inflation that began in March 2021 as the country was recovering from COVID. That burst of inflation, he said, led to about $900 billion more in revenue.
There was also an increase in economic activity in the later years of the period that added $700 billion. Also, new tariffs added about $250 billion, with other legislation partially offsetting those three factors.
By Kevin Freking, Associated Press
