“The rationale behind capping the SALT deduction was that it would disproportionally benefit high-income earners in high-tax states—and it did. In effect, the federal government was subsidizing the tax-and-spend policies of these states by shielding residents from the full impact of local tax increases. If California raised its taxes, the SALT deduction softened the blow for taxpayers.”
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“raising the cap on SALT deductions would ease pressure on blue states to simplify or lower their tax rates. Consider that California’s top marginal rate is a whopping 13.3 percent. When combined with a top federal rate of 37 percent, Golden State residents are approaching a Sweden-level tax rate. Meanwhile, seven states impose no state income tax at all. This dynamic highlights the beauty of the American political system—the states compete for talent and resources. Over time, high-tax states will lose capital, and low-tax states will benefit.
It’s difficult to oppose any proposal that lowers taxes, but an exception applies here. Raising the SALT cap would only reward high-tax states for their fiscal irresponsibility while undermining the competitive pressures that drive reform. Cities like Nashville, Austin, and Miami are thriving as new hubs of innovation precisely because they’ve embraced freedom and pro-growth policies. They’ve earned their success—and that’s the lesson high-tax states need to learn.”
“Canadian Prime Minister Justin Trudeau said today that he’d step down as head of the country’s Liberal Party, after weeks of speculation that his time in leadership was coming to an end.
In Canada, the head of the party with the highest number of seats in Parliament leads the country. Though Trudeau will no longer be the Liberal Party leader, he’ll remain prime minister until his party chooses a new leader, likely in the next two months. Canada must also hold a general election by October to choose a new government.”
“The New Orleans attacker who killed 14 people by ramming a pickup truck into a crowd built two bombs with a “very rare explosive compound”, senior law enforcement officials have said.
The compound had never before been used in a US or European terror attack, with investigators now exploring how attacker Shamsud-Din Jabbar learnt how to produce the explosive.
Jabbar used the compound in two homemade bombs, which were found in coolers on Bourbon Street, where he carried out his deadly attack on New Year’s Day. The bombs did not detonate and it remains unclear whether this was due to a malfunction or lack of activation.”
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“Jabbar, a US citizen born in Texas and a former army soldier, had posted several social media messages saying he was inspired by the Islamic State militant group.
He had been living in a trailer on the outskirts of Houston before driving to Louisiana to carry out the attack, and was shot dead in a firefight with police at the scene.
The FBI has concluded that no one helped Jabbar to carry out his attack.”
“Taiwan has accused a Chinese-owned ship of severing a critical data cable off its northern coast on Friday.
Officials in Taipei discovered that four cores of an international submarine cable, which transmits data to America’s AT&T, were left ruptured early on Jan 3.
Tracking data revealed the Shunxing39 cargo vessel had dropped its anchor around the rupture site near the port of Keelung, according to Taiwan’s coast guard.”
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“Another Chinese vessel, the Yi Peng 3, was accused of similar tactics in the Baltic in November.
Investigators believe the Chinese-registered bulk carrier deliberately severed two key cables by dragging its anchor along the seabed for more than 100 miles in a “sabotage” orchestrated by Russia.
Repeated incidents have caused concern among Western nations that Russia, with the help of China, is engaging in what the White House described as “hybrid warfare”, an accusation that the Kremlin denies.”
“the U.K. became the first new member to join the tongue-twisting Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) since it was formed in 2018.
It’s also the first country that doesn’t at least have a coast fronting the region.”
“The U.S. and others suggest China’s navy is establishing a permanent base at Ream, which would give it easier access to the Malacca Strait, a critical shipping route between the South China Sea and the Indian Ocean.
Controversy over the Chinese activity at Ream initially arose in 2019 when The Wall Street Journal reported that an early draft of an agreement seen by U.S. officials would allow China 30-year use of the base, where it would be able to post military personnel, store weapons and berth warships.
Cambodia’s government has denied such an agreement or any intention to grant China special privileges at the base, though Beijing has funded its expansion.
In September, Cambodia’s Defense Ministry said that China is giving its navy two warships of the type it has had docked there for months. China is set to hand over two newly built Type 56 corvettes — smaller vessels typically used for coastal patrols — next year at the earliest, after Cambodia requested China’s support.”