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Biden steps out of the room and finds legacy-defining wins

WASHINGTON (AP) — Over five decades in Washington, Joe Biden knew that the way to influence was to be in the room where it happens. But in the second year of his presidency, some of Biden’s most striking, legacy-defining legislative victories came about by staying out of it.

A summer lawmaking blitz has sent bipartisan bills addressing gun violence and boosting the nation’s high-tech manufacturing sector to Biden’s desk, and the president is now on the cusp of securing what he called the “final piece” of his economic agenda with the sudden resurrection of a Democrats-only climate and prescription drug deal. And in a counterintuitive turn for the president who has long promoted his decades of Capitol Hill experience, Biden’s aides chalk up his victories to the fact that he’s been publicly playing the role of cheerleader rather than legislative quarterback.

“In a 50-50 Senate, it’s just true that when the White House takes ownership over a topic, it scares off a lot of Republicans,” said Sen. Chris Murphy, D-Conn. “I think all of this is purposeful. When you step back and let Congress lead, and then apply pressure and help at the right times, it can be a much more effective strategy to get things done.”

Democrats and the White House hope the run of legislative victories, both bipartisan and not, just four months before the November elections will help resuscitate their political fortunes by showing voters what they can accomplish with even the slimmest of majorities.

Biden opened 2022 with his legislative agenda at a standstill, poll numbers on the decline and a candid admission that he had made a “mistake” in how he carried himself in the role.

“The public doesn’t want me to be the ‘President-Senator,’” he said. “They want me to be the president and let senators be senators.”

Letting the senators be senators was no easy task for Biden, whose political and personal identities are rooted in his formative years spent in that chamber. He spent 36 years as a senator from Delaware, and eight more as the Senate’s president when he was valued for his Capitol Hill relationships and insights from him as Barack Obama’s vice president.

As Biden took a step back, he left it to aides to do much of the direct negotiating. His legislative strategy, instead, focused more on using his role as president to provide strategic jolts of urgency for his agenda both with lawmakers and voters.

In the estimation of many of his aides and advisers, leaving the Senate behind was key to his subsequent success. The heightened expectations for Democrats, who hold precarious majorities in Congress but nonetheless have unified control of Washington, were dragging Biden down among his supporters of him who wanted more ambitious action.

The sometimes unsavory horse-trading required to win consensus often put the president deep in the weeds and short on inspiration. And the dramatic negotiating breakdowns on the way to an ultimate deal proved to be all the more tantalizing because Biden himself was a party to the talks.

In the spring of 2021, Biden made a big show of negotiating directly with Sen. Shelley Moore Capito, RW.Va., on an infrastructure bill, only to have the talks collapse over the scope of the package and how to finance it. At the same time, a separate bipartisan group had been quietly meeting on its own, discussing how to overhaul the nation’s transportation, water and broadband systems. After the White House gave initial approval and then settled the final details with senators, that became the version that was shepherded into law.

The president next tried to strike a deal on a sweeping social spending and climate package with Sen. Joe Manchin, going as far as inviting the West Virginia lawmaker to his home in Wilmington, Delawareuntil the conservative Democrat abruptly pulled the plug on the talks in a Fox News interview. Manchin would later pick up the negotiations again, this time with just Senate Majority Leader Chuck Schumer, DN.Y., and the two would eventually reach an agreement that is now on the verge of Senate approval after more than a year of legislative wrangling.

In late 2021, White House aides persuaded the president to clamor up about his conversations with the Hill, as part of a deliberate shift to move negotiations on his legislative agenda out of the public eye. The West Wing, once swift with the news that Biden had called this lawmaker or invited that caucus to the White House for a meeting, kept silent.

The new approach drew criticism from the press, but the White House wagered that the public was not invested in the details and would reward the outcomes.

Biden and his team “have been using the bully pulpit and closely working with Congress to fight for policies that lower costs for families and fight inflation, strengthen our competitiveness versus China, act against gun violence” and help veterans, said White House spokesman Andrew Bates . “He also directed his Cabinet, senior staff and legislative team to constantly engage with key lawmakers as we work together to achieve what could soon be the most productive legislative record of any president” since Lyndon Johnson.

Some of the shift, White House aides said, also reflected the changing dynamics of the COVID-19 pandemic, which kept Biden in Washington for most of 2021; his meetings of him with lawmakers amounted to one of the few ways to show he was working. As the pandemic eased and Biden was able to return to holding more in-person events with voters and interest groups, he was able to use those settings to drive his message directly to people.

The subtle transformation did not immediately pay dividends: Biden’s approval rating only continued to slide amid legislative inertia and soaring inflation.

Yet in time, Biden’s decision to embrace a facilitating role rather than being a negotiator in chief — which had achieved mixed success — began to pay off: the first substantive gun restrictions in nearly three decades, a measure to boost domestic production of semiconductor computer chips, and care for veterans exposed to toxic burn pits.

White House officials credit Biden’s emotional speech after the school shooting in Uvalde, Texas, with helping to galvanize lawmakers to act on gun violence — and even his push for more extensive measures than made it into the bill with giving the GOP space to reach a compromise. And they point to a steady cadence of speeches over months emphasizing the need to lower prescription drug costs or to act on climate with keeping those issues in the national conversation amid the legislative fits and starts.

In turn, both Democratic and GOP lawmakers say that Biden removing himself directly from the negotiations empowered senators to reach consensus among themselves, without the distraction of a White House that may have repeatedly pushed for something that would be unattainable with Republicans or could be viewed as compromising by some Democrats.

“The president kind of had said that we’re staying out,” Sen. Rob Portman, R-Ohio, said, referring to the gun talks earlier this year. “I think that was helpful.”

Being hands off, however, by no means meant the administration was absent.

Rather than be in the room as a gun deal was coming together, White House aides stayed by the phone, explaining how the administration would likely interpret and regulate the law that senators were drafting. Murphy spoke with White House officials every day, and when the Connecticut senator met personally with Biden in early June to offer an update, the president never gave him an ultimatum on what he was or was not willing to sign — continuing to defer to lawmakers.

At another point during the gun negotiations, rumors flew that the administration was considering barring the Pentagon from selling certain types of surplus ammunition to gun dealers, who then sold the ammunition commercially, according to two people familiar with the deliberations. But Republicans, chiefly Sen. John Cornyn, R-Texas, urged the White House to scrap those plans because it would run counter to the parameters of what the gun negotiators had discussed, said the people, who spoke on condition of anonymity to discuss details of private negotiations.

The White House eventually did so, issuing a statement to a conservative publication that no such executive order on ammunition was under consideration.

On the semiconductor package that Biden plans to sign into law Tuesday, the administration organized classified briefings for lawmakers that emphasized how China is gaining influence in the computer chip sector and the national security implications. Republicans were regularly in touch with Commerce Secretary Gina Raimondo, a Biden Cabinet official who has developed warm relationships across the aisle.

And on the Democrats’ party-line climate and health care package, Manchin has emphasized that it is impossible to craft legislation of this magnitude without White House input, although he did not deal with Biden directly until near the end, when the president called to let Manchin know the White House would support his agreement with Schumer, according to an official with knowledge of the call.

Biden also stayed out of the last-minute deliberations involving Sen. Kyrsten Sinema, D-Ariz., and she and the president did not speak even as Democrats finalized an agreement that accommodated her demands.

“In his heart, Joe is a US senator,” said Sen. Jon Tester, D-Mont., the chief Democratic author of the burn pits legislation who also helped hash out the infrastructure law last year. “So he understands allowing this to work is how you get it done.”

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Rent in Australia: How ‘zombie houses’ are contributing to the country’s rental crisis

There are thousands of “zombie” houses in Australia – and they could hold the key to the country’s rental crisis.

There could even be one in your neighbourhood.

Put simply, “zombie” houses are properties that are sitting empty or are not being used 100 per cent of the time.

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“No one is renting them … no one’s living in them,” Finder money expert Rebecca Pike told 7NEWS.com.au.

And they are widespread – last year’s census revealed there were more than 1 million unoccupied dwellings, although that was during a time when much of the country was in lockdown and borders had been closed for more than a year.

But with Australia’s rents soaring and tenants struggling to find a roof over their heads, these ominously termed properties could be pushing prices up – and taking away rental properties from desperate families.

Governments around the country are working to clamp down on zombie homes and make them available for renters, but experts say more can be done.

What is a ‘zombie’ house?

It might be a terrifying term, but the idea of ​​“zombie” houses came about in a much more benign way than their name suggests.

They can include short-term rentals and holiday homes – investors may choose to rent their property out short-term to make more money and have some flexibility.

“It seems safer to have Airbnb tenants just for a few days at a time, a week, couple of weeks – there’s less wear and tear to worry about,” Pike said.

And there’s more money to be made.

“The other side is you can just charge more money for an Airbnb. So, what you might get in a week’s rent, you can get in a weekend.”

But while there are benefits for investors, turning properties into short-term rentals means there are fewer homes up for rent, Pike said.

And that’s a problem at a time when residents have been priced out of the rental market as demand grows and rents increase – forcing some to live in their cars or stay in a caravan while they find a rental.

“Investors are putting their properties out for Airbnb, but it’s taking rental properties away from renters and that lack of … properties available to rent is driving demand and prices up,” she said.

Why landlords don’t want to change tack

Melbourne property investment adviser Goro Gupta understands the challenges of the rental crisis.

He has an Airbnb on the Gold Coast that doubles as a holiday home, and is in the process of turning a second property he owns into an Airbnb.

Gupta said he purchased the Gold Coast property – a four-bedroom, two-bathroom house – because it would have less of an impact on the rental market.

“Not all people need a four bed, two bath home for just one family,” he said.

“That’s why we purchased an Airbnb which wouldn’t really be affecting the market which is in crisis.”

He and his family fly up to the Gold Coast and use the property about every two months. Every other weekend, it’s booked out by travellers, Gupta said.

“It’s not like it’s sitting empty, it’s just empty on some of the weekdays,” he said.

“Typically, two families that want to have a family reunion or get together… at least have a house because it’s a nice four-bedroom house with a private pool.

“It’s cheaper for them to use our house than a hotel.

“With the second property, there was a long-term renter in there, but he wanted to go off and buy his own property.”

Using the property as an Airbnb generates about 10 per cent to 20 per cent more income than having a long-term rental.

“(And) it gives us the ability to use the house as a holiday house whenever we need to,” he said.

Brisbane resident Raine Gaisford knows there are struggles in the rental market, but needs her investment property listed on Airbnb.

She and her husband bought an investment property in Noosa last October, planning to use it as a holiday home that they would eventually move into – but that became too expensive with their mortgage.

Instead, they listed the property on Airbnb. It is now booked out about 50 per cent to 60 per cent of the time.

“It’s not a matter of us trying to make profit. It’s actually just about trying to pay the mortgage,” Gaisford said.

“We wouldn’t be able to service the mortgage if we didn’t have it as a short-term rental.

“We’d be making quite a significant loss … if we were to rent it out as a longer-term rental.”

The couple uses the property when they can, but need it to be rented out “for a good portion of the year in order to service (the loan)“.

What needs to be done?

While short-term rentals do contribute to the rental crisis, investors and Airbnb owners are not to blame, First National Real Estate CEO Ray Ellis said.

“You can’t blame the consumer or the property owner because they see it as an investment return,” Ellis told Money News.

“If we’ve got a good property in a regional town or close to the beach or even in inner Sydney, that’s getting $800 a week – if you can get that $1000 for the weekend, without … having long-term commitment with tenants, it’s an easy financial decision to make.”

Instead, the onus should be on state governments, Ellis said.

Across the country, local councils and state governments have introduced rules and restrictions on short-term rentals.

In Brisbane city council, owners who list residential properties on short stay websites will be hit with a 50 per cent surcharge on their current rate bill.

“Brisbane has plenty of great hotels with many more under construction, and our suburban streets were never meant to be home to mini hotels that house different tenants every week,” Lord Mayor Adrian Schrinner said in June.

File image of residential houses in Sydney. Credit: Getty Images

“It is my hope that instead of paying extra, many owners will return these houses and apartments to the long-term rental market, which will help ease our housing shortage.”

Across the border in NSW, owners who rent out their properties for short-term stays must register the accommodation with the state government and comply with a code of conduct.

In Greater Sydney and several regional areas, non-hosted short-term rentals – where the owner does not reside at the property – are limited to renting their property out for 180 days a year.

Still, more needs to be done to help ease the rental crisis.

“Australia hasn’t built enough houses,” Ellis said.

“As a government – state or federal – in the post-war period, the late ’50s, early ’60s, we built almost 240,000 of what we called social housing properties in those days.

“They were full and since then, no state government has made the same commitment to it.

“State governments must address it.”

Finder money expert Pike said the rental crisis is expected to get worse over the coming months and agrees it needs urgent action.

“We’re definitely seeing that demand for rental housing going up because we have so many more people coming into the country, whereas during COVID we really saw that drop,” Pike said.

“There is definitely more demand at the moment, but there’s also less supply.

“Also with the RBA cash rate, if investors are paying more for their loans, they’re potentially passing that on to renters.

Shocking moment Pitbull attacks prized horse.

Shocking moment Pitbull attacks prized horse.

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Penguin Random House-Simon & Schuster merger: Explaining the billion-dollar deal and how Stephen King got involved

It’s a story that’s got the makings of a best-seller — a billion-dollar deal, a court battle, and an endorsement from the King of Horror.

Penguin Random House, a publishing titan, is hoping to buy its rival Simon & Schuster in a mega-deal that would reshape the publishing industry.

But the Biden administration has sought to intervene through the US courts, with the Department of Justice (DOJ) suing to block the merger from happening.

Let’s get you up to speed on the court case that’s gripping the publishing industry.

What’s the story?

In 2020, German media giant Bertelsmann announced its plan for its Penguin Random House division to buy fellow publishing giant Simon & Schuster for $US2.17 billion from TV and film company ViacomCBS.

The merger would reduce the so-called Big Five of publishing — which also includes HarperCollins, Hachette Book Group and Macmillan — to four.

The announcement was not well received and drew intense scrutiny from government regulators.

The US Justice Department argues that the merger would hurt authors and, ultimately, readers as well.

The Simon and Schuster logo on the spine of a black book.
Penguin Random House argues the combined publishers could turn out books more efficiently.(AP: Jenny Kane)

It says the deal would thwart competition and give Penguin Random House gigantic influence over which books are published in the US and beyond, not just how many authors are paid, giving consumers fewer books to choose from.

The new company, if approved, would be by far the biggest book-publishing entity in US history.

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Large Indiana employers Eli Lilly and Cummins speak out about the state’s new restrictive abortion law

An Eli Lilly and Company pharmaceutical manufacturing plant is pictured at 50 ImClone Drive in Branchburg, New Jersey, March 5, 2021.

Mike Segar | Reuters

Drugmaker Eli Lilly, one of the biggest employers in Indiana, said that the state’s newly passed law restricting abortions will cause the company to grow away from its home turf.

Lilly said in a statement on Saturday that it recognizes abortion as a “divisive and deeply personal issue with no clear consensus among the citizens of Indiana.”

“Despite this lack of agreement, Indiana has opted to quickly adopt one of the most restrictive anti-abortion laws in the United States,” Eli Lilly said. “We are concerned that this law will hinder Lilly’s — and Indiana’s — ability to attract diverse scientific, engineering and business talent from around the world. Given this new law, we will be forced to plan for more employment growth outside our home state.”

Indiana’s Legislature on Friday became the first in the nation to pass new legislation restricting access to abortions since the US Supreme Court overturned Roe v. Wade. The state was among the earliest Republican-run state legislatures to debate tighter abortion laws after the Supreme Court ruling in June that removed constitutional protections for the procedure.

Lilly employs about 10,000 people in Indiana, where it has been headquartered in Indianapolis for more than 145 years.

Cummins, an engine manufacturing company that also employs about 10,000 people in Indiana, spoke out over the weekend against the new law as well.

“The right to make decisions regarding reproductive health ensures that women have the same opportunity as others to participate fully in our workforce and that our workforce is diverse,” a company spokesman said in a statement.

“There are provisions in the law that conflict with this, impact our people, impede our ability to attract and retain top talent and influence our decisions as we continue to grow our footprint with a focus on selecting welcoming and inclusive environments,” the Cummins spokesman said.

The two businesses join a growing list of companies, including tech giant Apple and denim retailer Levi Strauss, which are offering their employees resources for reproductive care in states where restrictions have been put into place.

Eli Lilly noted Saturday that although the pharmaceutical company has expanded its employee health plan coverage to include travel for reproductive services, “that may not be enough for some current and potential employees.”

Indiana’s abortion ban is expected to go into effect on Sept. 15. It comes with some exceptions, including for cases of rape or incest, and for protecting the mother’s life.

President Joe Biden’s administration has also condemned Indiana’s decision. White House Press Secretary Karine Jean-Pierre called it a “devastating step.”

“And, it’s another radical step by Republican legislators to take away women’s reproductive rights and freedom, and put personal health-care decisions in the hands of politicians rather than women and their doctors,” she said in a statement.

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Senate parliamentarian OKs most of Dems’ drug price controls

WASHINGTON (AP) — The Senate parliamentarian narrowed Democrats’ plan for curbing drug prices but left it largely intact Saturday, Democrats said, as party leaders prepared to start moving their sprawling economic bill through the chamber.

Elizabeth MacDonough, the chamber’s rules arbiter, also gave the green light to clean air provisions in the measure, including one limiting electric vehicle tax credits to those assembled in the US, Democrats said.

The nonpartisan official’s rulings came as Democrats planned to begin Senate votes Saturday on their wide-ranging package addressing climate change, energy, health care costs, taxes and even deficit reduction. Party leaders have said they believe they now have the unity they will need to move the legislation through the 50-50 Senate, with Vice President Kamala Harris’ tiebreaking vote.

MacDonough said provisions must be removed that would force drugmakers to pay rebates if their prices rise above inflation for products they sell to private insurers. Pharmaceutical companies would have to pay those penalties, though, if their prices for drugs bought by Medicare rise too high.

Dropping penalties on drugmakers for increasing prices on private insurers was a clear setback for Democrats. The decision reduces incentives on pharmaceutical companies to restrain what they charge, increasing costs for patients.

Erasing that language will cut the $288 billion in 10-year savings that the Democrats’ overall drug curbs were estimated to generate — a reduction of perhaps tens of billions of dollars, analysts have said. But other restrictions on rising pharmaceutical costs survived, including letting Medicare negotiate costs for the drugs it buys, capping seniors’ out-of-pocket expenses and providing free vaccines.

The surviving pharmaceutical provisions left Democrats promoting the drug language as a boon to consumers at a time when voters are infuriated by the worst inflation in four decades.

“This is a major victory for the American people,” Senate Majority Leader Chuck Schumer, DN.Y., said in a statement. “While there was one unfortunate ruling in that the inflation rebate is more limited in scope, the overall program remains intact and we are one step closer to finally taking on Big Pharma and lowering Rx drug prices for millions of Americans.”

Senate Finance Committee Chairman Ron Wyden, D-Ore., said that while he was “disappointed” the penalties for higher drug prices for privately insured consumers were dropped, “the legislation nevertheless puts a substantial check on Big Pharma’s ability to price gouge.”

The parliamentarian’s decision came after a 10-day period that saw Democrats resurrect top components of President Joe Biden’s domestic agenda after they were seemingly dead. In rapid-fire deals with Democrats’ two most unpredictable senators—first conservative Joe Manchin of West Virginiathen Arizona centrist Kyrsten Sinema — Schumer pieced together a broad package that, while a fraction of earlier, larger versions that Manchin derailed, would give the party an achievement against the backdrop of this fall’s congressional elections.

The parliamentarian signed off on a fee on excess emissions of methane, a powerful greenhouse gas contributor, from oil and gas drilling. She also let stand environmental grants to minority communities and other initiatives for reducing carbon emissionssaid Senate Environment and Public Works Committee Chairman Thomas Carper, D-Del.

She approved a provision requiring union-scale wages to be paid if energy efficiency projects are to qualify for tax credits, and another that would limit electric vehicle tax credits to those cars and trucks assembled in the United States.

The overall measure faces unanimous Republican opposition. But assuming Democrats fight off a nonstop “vote-a-rama” of amendments — many designed by Republicans to derail the measure — they should be able to muscle the measure through the Senate.

House passage could come when that chamber returns briefly from recess on Friday.

“What will vote-a-rama be like. It will be like hell,” Sen. Lindsey Graham of South Carolina, the top Republican on the Senate Budget Committee, said Friday of the approaching GOP amendments. He said that in supporting the Democratic bill, Manchin and Sinema “are empowering legislation that will make the average person’s life more difficult” by forcing up energy costs with tax increases and making it harder for companies to hire workers.

The bill offers spending and tax incentives for moving toward cleaner fuels and supporting coal with assistance for reducing carbon emissions. Expiring subsidies that help millions of people afford private insurance premiums would be extended for three years, and there is $4 billion to help Western states combat drought.

There would be a new 15% minimum tax on some corporations that earn over $1 billion annually but pay far less than the current 21% corporate tax. There would also be a 1% tax on companies that buy back their own stock, swapped in after Sinema refused to support higher taxes on private equity firm executives and hedge fund managers. The IRS budget would be pumped up to strengthen its tax collections.

While the bill’s final costs are still being determined, it overall would spend more than $300 billion over 10 years to slow climate change, which analysts say would be the country’s largest investment in that effort, and billions more on health care. It would raise more than $700 billion in taxes and from government drug cost savings, leaving about $300 billion for deficit reduction — a modest bite out of projected 10-year shortfalls of many trillions of dollars.

Democrats are using special procedures that would let them pass the measure without having to reach the 60-vote majority that legislation often needs in the Senate.

It is the parliamentarian’s job to decide whether parts of legislation must be dropped for violating those rules, which include a requirement that provisions be chiefly aimed at affecting the federal budget, not imposing new policy.

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Associated Press writer Matthew Daly contributed to this report.

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‘I work just 5 hours a week’

I never was the entrepreneurial type. But after losing my job as an audio engineer in 2009, I had to get creative to make ends meet.

Thirteen years later, at age 39, I’ve built two online businesses that earn me a combined $160,000 a month in passive income. I also recently published a book, “How to Get Paid for What You Know.”

The first business I started was The Recording Revolution, a music and education blog that sells music production courses. The second, which I started in 2018, teaches people how to make money off their passions, like I did. It’s the most lucrative business, thanks to online course and coaching program sales, as well as affiliate commissions.

Graham Cochrane started his first business in 2009. Since then, he’s scaled two online companies and now grosses about $120,000 per month.

Photo: John Olson for CNBC Make It

Around 2,800 people use my products, and my goal is to help more entrepreneurs grow their online businesses while working fewer hours.

My top priorities are spending time with family and being able to give back, so I’ve set up my work and personal life to be able to focus on those key values.

Here’s what my typical day looks like:

Mornings start slow and easy

I usually wake up at 5 am — before the kids — because I always want an hour to myself. I’ll start with coffee and my Bible.

After some reading, praying and journaling, I’ll make breakfast with my wife and wake the kids. We’ll spend 20 to 30 minutes eating together in the kitchen before I drop them off at school by 7:30 am

Then I head back to my home office, or do a quick gym session if I’m in the mood.

Graham and his wife have breakfast with their children in the morning before talking through their schedule.

Photo: John Olson for CNBC Make It

I work just five hours a week — Mondays and Wednesdays

Graham spends about five hours a week creating content and managing his businesses.

Photo: John Olson for CNBC Make It

Once a month, I film an exclusive training for members of my paid community which adds about two extra hours of work per month to my schedule.

I’ve never been a fan of the hustle culture; I don’t believe it’s healthy or wise. If you can find a way to build systems into your business so that it mostly runs on its own, you don’t need to waste time doing constant upkeep.

After all, what’s the point of “being your own boss” if you’re working all the time?

Family time is my No. 1 priority

“My schedule has two non-negotiables,” says Graham: “I pick my daughters up from school every day, and our family eats dinner together every night.”

Photo: John Olson for CNBC Make It

We love going out for walks, swimming in the pool, watching movies or playing Nintendo Switch with the kids. By spending time together, we hope to teach them essential life skills like how to share feelings and be kind to each other. I also want them to feel like valuable, included members of the family.

We’re big on traveling, too — both locally in Florida and around the world. A few summers ago, we spent a month in the South of France. And just this spring, we stayed in Puerto Rico for three weeks. Having the time and flexibility to make these kinds of memories together is priceless.

Radical generosity a core value

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Sinema gives her nod, and influence, to Democrats’ big bill

WASHINGTON (AP) — Sen. Joe Manchin sealed the deal reviving President Joe Biden’s big economic, health care and climate bill. But it was another Democratic senator, Kyrsten Sinema of Arizonawho intently, quietly and deliberately shaped the final product.

Democrats pushed ahead Friday on an estimated $730 billion package that in many ways reflects Sinema’s priorities and handiwork more than the other political figures who have played a key role in delivering on Biden’s signature domestic policy agenda.

It was Sinema early on who rejected Biden’s plan to raise the corporate tax rate from 21% to 28%, as she broke with the party’s primary goal of reversing the Trump-era tax break Republicans gave to corporate America.

Sinema also scaled back her party’s long-running plan to allow Medicare to negotiate lower drug prices with the pharmaceutical companies as a way to reduce overall costs to the government and consumers. She limited which drugs can be negotiated.

Her insistence on climate change provisions forced the coal-state Manchin to stay at the table to accept some $369 billion in renewable energy investments and tax breaks. She also is tucking in more money to fight Western droughts.

And it was Sinema who in one final stroke gave her blessing to the deal by extracting an ultimate demand — she forced Democrats to drop plans to close a tax loophole that benefits wealthy hedge fund managers and high-income earners, long a party priority. Instead, the final bill will keep the tax rate at 20% instead of hiking it to the typical 37%.

“Kyrsten Sinema’s proven herself to be a very effective legislator,” said Sen. Mark Warner, D-Va., who has negotiated extensively with his colleague over the past year, including on the tax loophole.

In a 50-50 Senate where every vote matters, the often inscrutable and politically undefinable Sinema puts hers to use in powerful ways. Her negotiating at the highest levels of power — she appears to have equal access to Biden, Senate Majority Leader Chuck Schumer and even Senate Republican leader Mitch McConnell — has infuriated some, wowed others and left no doubt she is a powerful new political figure.

While other lawmakers bristle at the influence a single senator can wield in Congress, where each member represents thousands if not millions of voters, Sinema’s nod of approval late Thursday was the last hurdle Democrats needed to push the Inflation Reduction Act forward. A final round of grueling votes on the package is expected to begin this weekend.

“We had no choice,” Schumer told reporters Friday at the Capitol.

Getting what you want in Congress does not come without political costs, and Sinema is amassing a balance due.

Progressives are outraged at their behavior, which they view as beyond the norms of sausage-making during the legislative process and verging on an unsettling restacking of party priorities to a more centrist, if not conservative, lane.

Progressive Rep. Ruben Gallego is openly musing about challenging Sinema in the 2024 primary in Arizona, and an independent expenditure group, Change for Arizona 2024, says it will support grassroots organizations committed to defeating her in a Democratic primary.

“The new reconciliation bill will lower the cost of prescription drugs,” Gallego wrote on Twitter last weekend. “@SenatorSinema is holding it up to try to protect ultra rich hedge fund managers so they can pay a lower tax.”

In fact, on the left and the right, commentators lambasted her final act—saving the tax breaks for the wealthy. Some pointed to past legislative luminaries—the late Sen. Robert Byrd, for example, used his clout to leave his name on roads, buildings and civic institutions across the West Virginia hillsides. They scoff at Sinema establishing her legacy of her in such a way.

“Astonishing,” wrote conservative Hugh Hewitt on Twitter. “@SenatorSinema could have demanded anything she wanted — anything that spent money or changed taxes — and with that leverage for Arizona she choose … to protect the carry interest exemption for investors. …Not the border. Not the country. A tax break. wow.”

Democratic former Clinton-era Labor Secretary Robert Reich wrote, “The ‘carried interest’ loophole for billionaire hedge-fund and private-equity partners is now out of the Inflation Reduction Act, courtesy of Kyrsten Sinema.

“She’s up in 2024. Primary her and get her out of the Senate.”

But Sinema has never cared much about what others say about her, from the time she set foot in the Senate, breaking the rules with her whimsical fashion choices and her willingness to reach across the aisle to Republicans — literally joining them at times in the private Senate GOP cloakroom.

The Arizona senator seeks to emulate the maverick career of John McCain, drawing on his farewell address for her maiden Senate speech, and trying to adopt his renegade style alongside her own — a comparison that draws some eyerolls for its reach and scope.

Still, in her short time in the Senate, Sinema has come herself to be a serious study who understands intricacies of legislation and a hard-driving dealer who does not flinch. She has been instrumental in landmark legislation, including the bipartisan infrastructure bill Biden signed into law last summer.

“There’s not been a bipartisan group that she’s not been a part of,” Warner said.

In the end, the final package is slimmer than Biden first envisioned with his lofty Build Back Better initiative, but still a monumental undertaking and a bookend to a surprisingly productive if messy legislative session.

The bill would make health care gains for many Americans, capping pharmacy costs for seniors at $2,000 out of pocket and providing subsidies to help millions of people who buy health insurance on the private market. It includes what the Biden administration calls the largest investment in climate change ever, with money for renewable energy and consumer rebates for new and used electric cars. It would mostly be paid for by higher corporate taxes, with some $300 billion going to deficit reductions.

On the climate provisions, a priority for Democrats, Sinema may have played a role in keeping the sweeping provisions in the bill, when Manchin was less inclined to do so.

Environmental leaders, who have been involved in talks on the bill since last year, said Sinema has helped shape the bill all along. She was especially helpful last year when she made it clear she supports the climate and energy provisions, and her commitment to climate issues has remained steadfast, environmentalists said.

She tacked on her own priority, money to help Western states dealing with droughts, in the final push.

Jamal Raad, executive director of Evergreen Action, an environmental group that has pushed for the climate bill, said: “Senator Sinema needed money for drought relief to help her constituents stave off the worst effects of climate change. If that’s what was needed to gain her support from her, then good on her.

At home in Arizona, business allies that have been crucial to Sinema’s efforts to build an independent image have cheered on her willingness to resist party pressure over the tax increases.

The Arizona Chamber of Commerce and Industry and the National Association of Manufacturers ran ads against the deal, though they didn’t target Sinema by name, and bent her ear in a phone call this week.

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Associated Press writers Matthew Daly in Washington and JJ Cooper in Phoenix contributed to this article.

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Categories
Australia

Australia to protect Barrier Reef by banning coal mine

CANBERRA, Australia (AP) — Australia’s new government announced on Thursday it plans to prevent development of a coal mine due to the potential impact on the nearby Great Barrier Reef.

Environment Minister Tanya Plibersek said she intends to deny approval for the Central Queensland Coal Project to be excavated northwest of the Queensland state town of Rockhampton.

The minority Greens party has been pressing the center-left Labor Party government, which was elected in May, to refuse approvals of coal or gas projects, to help reduce Australia’s greenhouse gas emissions.

“Based on the information available to me at this stage, I believe that the project would be likely to have unacceptable impacts to the Great Barrier Reef Marine Park, and the values ​​of the Great Barrier Reef World Heritage Area and National Heritage Place,” Plibersek said in a statement.

The marine park manages the network of more than 2,500 reefs that cover 348,000 square kilometers (134,000 square miles) of seabed off the northeast Australian coast. The World Heritage Area, designated by the United Nations and Australia’s National Heritage List, includes natural, historic and Indigenous places of outstanding significance to the nation.

UNESCO, the UN cultural organization, is considering downgrading the Great Barrier Reef’s World Heritage status mainly because rising ocean temperatures are killing coral.

The mine’s proponents have 10 business days to respond to the proposed refusal before the minister makes her final decision.

The Greens welcomed the news and urged the minister to reject another 26 planned coal mines.

“Now we need an across-the-board moratorium on all new coal and gas projects,” Greens leader Adam Bandt said in a statement.

The proposed decision was announced after the House of Representatives passed a bill that would enshrine in law the government’s ambition to reduce Australia’s greenhouse gas emissions by 43% below 2005 levels by the end of the decade. The bill passed 89 votes to 55.

The previous government’s target had been a reduction of between 26%-28%, set at the Paris climate conference in 2015.

A proposed Greens’ amendment that would have acknowledged no new coal, oil or gas projects could be started if Australia were to achieve its net-zero emissions target by 2050 was defeated on Thursday.

The government is confident that the bill will be passed by the Senate next month with support from all 12 Greens senators, who would prefer a 2030 target of a 75% reduction.

The apparently doomed mine would have been an open-cut operation that extracted up to 10 million metric tons (11 million US tons) of coal a year.

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Categories
Business

$9 for milk and $84 for instant coffee: The Aussies hit hardest by soaring grocery costs

Milk costing more than $9 and a tin of instant coffee for an astounding $84. These are real prices – and they show just how dire things are for some Aussie shoppers.

Consumers all across the country are being hit by the cost-of-living crisis, which has sent the price of everyday goods such as lettuce and milk soaring.

But shocking photos shared to social media show how grocery bills cost more in some places – and expose just how dire the situation has become.

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One photo of an April receipt from a store in the town of Kaltukatjara, southwest of Alice Springs, showed a two liter carton of milk costing $9.20.

At a Sydney Woolworths, the same product was being sold for just $3.10 this week.

Milk was spotted at a high price in one remote community. Credit: Facebook

Donna Donzow, an operations manager for the non-profit EON Foundation which helps grow and supply fresh produce to communities in Western Australia and the Northern Territory, said she noticed the unusually high grocery prices in June when she was in Minyerri, a town 240km southeast of Katherine.

“The cost of a mixed salad pack was $17,” Donzow told 7NEWS.com.au.

By comparison, a mixed bag of salad at a Sydney Woolworths this week cost just $3.

The high grocery prices in remote areas are due to a range of issues including long supply chains, poor quality roads and freight costs – and experts say more needs to be done to sort out the problem.

A long-time problem

Food has cost more in the regions than in our biggest cities for years – as photos on social media show.

One photo shared in 2020 showed a tin of instant coffee selling at a Hope Vale grocery store, in remote Queensland, for $84, according to the poster.

According to a 2021 report by healthcare policy organization Aboriginal Medical Services Alliance Northern Territory (Amsant), food in supermarkets is 56 per cent more expensive in remote communities than in regional supermarkets.

A 2020 inquiry by federal MP Julian Leeser echoed these findings, stating that “the cost of purchasing food is considerably higher for remote Aboriginal and Torres Strait Islander communities than for people living in larger population centers in urban and regional Australia”.

A tin of instant coffee was being sold at a Hopevale Island and Cape grocery store, in remote Queensland for $84. Credit: Facebook

The Australian Bureau of Statistics says the cost of groceries has increased by 5.9 per cent across all of Australia’s capital cities since June last year – and there’s reason to believe costs are also going up in rural Australia, where prices were already astronomically high.

In Minyerri, for instance, Donzow said she saw signs around the shop advising community members of that fruit and vegetable costs had gone up due to flooding in Australia’s southern states.

EON Foundation executive chair Caroline de Mori said she’d had a similar experience.

“I heard people complaining the other day about a lettuce for sale in Sydney for $8, but can you imagine what it’s like when you go a few thousand kilometers inland?” de Mori said.

“You end up paying $12 for one brown-headed broccoli.”

‘It’s only getting worse’

The enormous costs aren’t just an issue for getting food on the table now – they have flow-on effects for the future.

De Mori told 7NEWS.com.au that the lack of cheap fruit and vegetables meant some shoppers were turning to processed food.

“By the time it all gets (to remote communities) it’s moldy and not fresh, so it’s not necessarily an option,” she said.

“This means we see astronomically higher disease rates and health issues in these communities, and it’s only getting worse.”

The foundation helps set up community gardens to encourage locals to grow their own fruit and veg. Credit: EON Foundation
The community gardens are being accessed more and more by locals. Credit: EON Foundation

De Mori added some communities only have one store selling essentials for the whole town.

“Because they’ve got the monopoly, they can charge whatever they like and it just seems to be a terrible downwards spiral,” she said.

University of Queensland public health policy professor Amanda Lee told 7NEWS.com.au while experts recommended numerous solutions over the years, little has been done overall.

Lee recommends subsidizing freight costs and preventing supermarkets from marking up fruit and vegetables.

“Unfortunately, while there’s a long list of recommendations from all the inquiries over the past 40 years … there’s been very little collective action to address it.”

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Categories
US

Democrats’ big package: What remains in and what’s out?

WASHINGTON (AP) — It’s nowhere near the $4 trillion proposal President Joe Biden first launched to rebuild America’s public infrastructure and family support systems but the compromise package of inflation-fighting health care, climate change and deficit reduction strategies appears on track toward Senate votes this weekend.

The estimated $740 billion proposal, struck by two top negotiators, Senate Majority Leader Chuck Schumer and holdout Sen. Joe Manchin, the conservative West Virginia Democrat, includes some hard-fought party priorities. But the final touches came this week from Sen. Kyrsten Sinema, D-Ariz., who put her handiwork on the latest revisions.

What’s in, and out, of the Democrats’ “Inflation Reduction Act of 2022” as it stands now:

LOWER PRESCRIPTION DRUG COSTS

Launching a long-sought goal, the bill would allow the Medicare program to negotiate prescription drug prices with pharmaceutical companies, saving the federal government some $288 billion over the 10-year budget window.

Those new revenues would be put back into lower costs for seniors on medications, including a $2,000 out-of-pocket cap for older adults buying prescriptions from pharmacies.

The money would also be used to provide free vaccinations for seniors, who now are among the few not guaranteed free access, according to a summary document.

HELP PAY FOR HEALTH INSURANCE

The bill would extend the subsidies provided during the COVID-19 pandemic to help some Americans who buy health insurance on their own.

Under earlier pandemic relief, the extra help was set to expire this year. But the bill would allow the assistance to keep going for three more years, lowering insurance premiums for people who are purchasing their own health care policies.

‘SINGLE BIGGEST INVESTMENT IN CLIMATE CHANGE IN US HISTORY’

The bill would invest nearly $374 billion over the decade in climate change-fighting strategies including investments in renewable energy production and tax rebates for consumers to buy new or used electric vehicles.

It’s broken down to include $60 billion for a clean energy manufacturing tax credit and $30 billion for a production tax credit for wind and solar, seen as ways to boost and support the industries that can help curb the country’s dependence on fossil fuels. The bill also gives tax credits for nuclear power and carbon capture technology that oil companies such as Exxon Mobil have invested millions of dollars to advance.

The bill would impose a new fee on excess methane emissions from oil and gas drilling while giving fossil fuel companies access to more leases on federal lands and waters.

A late addition pushed by Sinema and other Democrats in Arizona, Nevada and Colorado would designate $4 billion to combat a mega-drought in the West, including conservation efforts in the Colorado River Basin, which nearly 40 million Americans rely on for drinking water.

For consumers, there are tax breaks as incentives to go green. One is a 10-year consumer tax credit for renewable energy investments in wind and solar. There are tax breaks for buying electric vehicles, including a $4,000 tax credit for purchase of used electric vehicles and $7,500 for new ones.

In all, Democrats believe the strategy could put the country on a path to cut greenhouse gas emissions 40% by 2030, and “would represent the single biggest climate investment in US history, by far.”

HOW TO PAY FOR ALL OF THIS?

The biggest revenue-raiser in the bill is a new 15% minimum tax on corporations that earn more than $1 billion in annual profits.

It’s a way to clamp down on some 200 US companies that avoid paying the standard 21% corporate tax rate, including some that end up paying no taxes at all.

The new corporate minimum tax would kick in after the 2022 tax year and raise some $258 billion over the decade.

The revenue would have been $313 billion, but Sinema insisted on one change to the 15% corporate minimum, allowing a depreciation deduction used by manufacturing industries. That shaves about $55 billion off the total revenue.

Money is also raised by boosting the IRS to go after tax cheats. The bill proposes an $80 billion investment in taxpayer services, enforcement and modernization, which is projected to raise $203 billion in new revenue — a net gain of $124 billion over the decade.

The bill sticks with Biden’s original pledge not to raise taxes on families or businesses making less than $400,000 a year.

The lower drug prices for seniors are paid for with savings from Medicare’s negotiations with the drug companies.

WHAT’S CHANGED IN RECENT DAYS?

To win over Sinema, Democrats dropped plans to close a tax loophole long enjoyed by wealthier Americans — the so-called “carried interest,” which under current law taxes wealthy hedge fund managers and others at a 20% rate.

The left has for years sought to increase the carried interest tax rate, hiked to 37% in the original bill, more in line with upper-income earners. Sinema wouldn’t allow it.

Keeping the tax break for the wealthy deprives the party of $14 billion in revenue they were counting on to help pay for the package.

In its place, Democrats, with Sinema’s nod, will impose a 1% excise tax on stock buybacks, raising some $74 billion over the decade.

EXTRA MONEY TO PAY DOWN DEFICITS

With some $740 billion in new revenue and around $433 billion in new investments, the bill promises to put the difference toward deficit reduction.

Federal deficits spiked during the COVID-19 pandemic when federal spending soared and tax revenues fell as the nation’s economy churned through shutdowns, closed offices and other massive changes.

The nation has seen deficits rise and fall in recent years. But overall federal budgeting is on an unsustainable path, according to the Congressional Budget Officewhich put out a new report this week on long-term projections.

WHAT’S LEFT BEHIND

This latest package after 18 months of start-stop negotiations leaves behind many of Biden’s more ambitious goals.

While Congress did pass a $1 trillion bipartisan infrastructure bill for highways, broadband and other investments that Biden signed into law last year, the president’s and the party’s other key priorities have slipped away.

Among them is a continuation of a $300 monthly child tax credit that was sending money directly to families during the pandemic and is believed to have widely reduced child poverty.

Also gone, for now, are plans for free pre-kindergarten and community college, as well as the nation’s first paid family leave program that would have provided up to $4,000 a month for births, deaths and other pivotal needs.

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Associated Press writer Matthew Daly contributed to this report.

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