Global Trends and Politics
Wealthy Taxpayers Receive New Breaks and Hidden Hike in House Bill

Tax Cuts and Hikes for High Earners
The latest House reconciliation plans include a series of tax cuts for high earners, but also a little-noticed tax hike that could limit their charitable giving and other deductions. The House Ways and Means Committee has released language that extends the 2017 tax cuts for high earners, including the lower top rate of 37%. This move appears to table President Donald Trump’s suggestion to hike the top rate for those making more than $2.5 million.
Extended Tax Cuts and New Benefits
High earners and wealthy families will receive some new, expanded benefits. The House text includes a permanent increase in the deduction for pass-through income to 23% from 20%. This rise means the effective top tax rate for pass-throughs will be about 28.5% compared with the top individual rate of 37%. A growing number of ultra-wealthy taxpayers now earn much of their income from pass-throughs, sole proprietorships, S corps, and other partnerships.
SALT Changes and Estate Tax
The SALT changes will have less impact for those at the top. The House proposal calls for raising the cap on state and local tax deductions from $10,000 to $30,000, but only for those with modified adjusted gross income of $400,000 or less. For those earning above $400,000, the $30,000 cap starts phasing out, or declining, back down to $10,000. The most important tax change for the wealthy in the House proposal is the estate tax. Currently, estates worth up to $13.99 million (or couples with estates of up to $27.98 million) are exempt from the estate tax. The House committee proposes raising the exemption to $15 million, making it permanent and indexed for inflation, meaning it will keep rising over time.
Impact on Tax Planning and Charitable Giving
Tax advisors to the wealthy say making the rates and exemptions permanent will help eliminate some of the uncertainty in recent years around tax planning. "I’m all in favor of anything that provides certainty," said David Handler, a partner in the trusts and estates practice group of Kirkland & Ellis LLP. "Just tell me what the rule is and don’t make it expire." One group that may not be happy with the new estate tax is the heirs of wealthy families. The threat of expiration at the end of this year led many families to gift millions of dollars to their kids to take advantage of the exemption (which also applies to the gift tax). Now, attorneys say wealthy parents will pause their family giving knowing that the new exemption will be harder to change.
Tax Hike for High Earners
The House language also includes an effective tax hike for high earners who take a lot of itemized deductions. Only about 10% of Americans — mostly the wealthy — still itemize since the standard deduction is now $15,000 for single filers and $30,000 for joint filers, and would rise again under the House proposal. Many high earners still itemize their deductions for charity, mortgage interest, and other costs. The House proposal would limit the benefits of those deductions through a complex formula. Kyle Pomerleau, a tax expert and senior fellow at the American Enterprise Institute, said taxpayers in the top bracket — currently those individuals making roughly more than $600,000 — will have to subtract 2/37th from the value of each dollar deducted over the threshold. The net effect is that top taxpayers will only get a deduction benefit of 35 cents for every dollar, rather than 37 cents.
Impact on Charitable Giving and Real Estate Purchases
Since big donors to charities would get less of a tax benefit from their gifts, some say the change could reduce giving, at least on the margin. "It makes it more expensive to give to charity, so you’d expect it to have some effect," Pomerleau said. Because it also limits the benefits of the mortgage deduction, he said it could impact real estate purchases by the wealthy, although most pay cash without a mortgage.
Tax on Private Foundations
The other potential tax hike for the wealthy, at least indirectly, is a proposed tax on private foundations. The House proposal includes a tax of 5% on the investments of foundations with assets of $250 million to $1 billion, and 2.8% for those with between $50 million and $250 million. From giant foundations like the Gates Foundation to smaller family foundations set up to guide a family’s philanthropy, the tax would substantially lower after-tax investment returns — and therefore reduce funds going to charity, say tax advisors and nonprofits.
Conclusion
In conclusion, the latest House reconciliation plans include a mix of tax cuts and hikes for high earners. While the extended tax cuts and new benefits will provide relief for some, the little-noticed tax hike could limit charitable giving and other deductions. The impact on tax planning, charitable giving, and real estate purchases will be significant, and the proposed tax on private foundations could reduce funds going to charity.
FAQs
Q: What are the main tax changes for high earners in the House proposal?
A: The main tax changes include extended tax cuts, a permanent increase in the deduction for pass-through income, and changes to the estate tax.
Q: How will the SALT changes affect high earners?
A: The SALT changes will have less impact for those at the top, with the cap on state and local tax deductions raised to $30,000 for those with modified adjusted gross income of $400,000 or less.
Q: What is the impact of the proposed tax on private foundations?
A: The proposed tax on private foundations could substantially lower after-tax investment returns and reduce funds going to charity.
Q: How will the tax hike affect charitable giving?
A: The tax hike could reduce giving, at least on the margin, as big donors to charities would get less of a tax benefit from their gifts.
Q: What is the net effect of the tax hike on itemized deductions?
A: The net effect is that top taxpayers will only get a deduction benefit of 35 cents for every dollar, rather than 37 cents.
Global Trends and Politics
Beyond the Job Description: How Politics is Impacting Employee Engagement

Political impacts on workplaces are becoming increasingly evident, affecting employee engagement and overall job satisfaction. The current political climate is no longer just a topic of discussion around the watercooler, but a significant factor influencing employees’ emotional and mental well-being. As the lines between personal and professional life continue to blur, employees are expecting their employers to take a stance on social and political issues.
Understanding the Impact of Politics on Employee Engagement
The relationship between politics and employee engagement is complex and multifaceted. On one hand, a politically charged work environment can lead to increased tension and conflict among employees, ultimately affecting productivity and job satisfaction. On the other hand, when employers take a proactive approach to addressing social and political issues, it can foster a sense of community and shared values among employees.
The Rise of Socially Conscious Employees
In recent years, there has been a significant shift in the way employees perceive their role in the workplace. No longer are employees solely focused on their job description; they are now expecting their employers to prioritize social responsibility and take a stance on pressing issues. A study by Glassdoor found that 75% of employees consider a company’s social and political values when deciding where to work. This trend is particularly evident among younger generations, with 83% of millennials stating that they would be more likely to work for a company that shares their values.
Case Study: Google’s Stance on Diversity and Inclusion
Google’s commitment to diversity and inclusion is a prime example of how employers can positively impact employee engagement through their stance on social and political issues. In 2018, Google employees staged a global walkout to protest the company’s handling of sexual harassment allegations. In response, Google’s CEO, Sundar Pichai, apologized and announced a series of changes to the company’s policies and procedures. This proactive approach to addressing employee concerns has contributed to Google’s reputation as a desirable workplace, with the company consistently ranking high on lists of the best places to work.
The Role of Leadership in Shaping Employee Engagement
Leadership plays a critical role in shaping employee engagement, particularly in times of political uncertainty. When leaders take a clear and proactive stance on social and political issues, it can help to foster a sense of trust and shared values among employees. A study by Harvard Business Review found that employees who feel that their leaders are committed to social responsibility are more likely to be engaged and motivated.
Effective Communication Strategies
Effective communication is key to navigating the complex relationship between politics and employee engagement. Employers should prioritize transparency and open communication, creating a safe and respectful environment where employees feel comfortable sharing their concerns and opinions. This can be achieved through regular town hall meetings, anonymous feedback channels, and clear communication of company values and policies.
Addressing Conflict and Tension
Conflict and tension are inevitable in any workplace, particularly in times of political uncertainty. Employers should be prepared to address these issues in a fair and respectful manner, prioritizing the well-being and safety of all employees. This can involve providing training on diversity and inclusion, establishing clear policies and procedures for addressing conflict, and fostering a culture of empathy and understanding.
Global Trends and Politics
The impact of politics on employee engagement is not limited to the United States; it is a global phenomenon. Employers around the world are grappling with the challenges of navigating complex social and political issues, from Brexit to climate change. A study by PwC found that 71% of CEOs globally believe that social and political instability is a major threat to business growth.
Case Study: IKEA’s Response to Climate Change
IKEA’s commitment to sustainability is a prime example of how employers can positively impact employee engagement through their response to global trends and politics. In 2019, IKEA announced its plans to be carbon neutral by 2030, a move that was widely praised by employees and customers alike. This proactive approach to addressing climate change has contributed to IKEA’s reputation as a responsible and sustainable business, with the company consistently ranking high on lists of the best places to work.
Conclusion
The impact of politics on employee engagement is a complex and multifaceted issue, influenced by a range of factors from leadership and communication to global trends and social responsibility. By prioritizing transparency, open communication, and social responsibility, employers can foster a sense of trust and shared values among employees, ultimately driving engagement and job satisfaction. As the political landscape continues to evolve, it is essential that employers remain proactive and responsive to the needs and concerns of their employees.
Frequently Asked Questions
Q: How can employers address the impact of politics on employee engagement?
A: Employers can address the impact of politics on employee engagement by prioritizing transparency, open communication, and social responsibility. This can involve establishing clear policies and procedures, providing training on diversity and inclusion, and fostering a culture of empathy and understanding.
Q: What role does leadership play in shaping employee engagement?
A: Leadership plays a critical role in shaping employee engagement, particularly in times of political uncertainty. When leaders take a clear and proactive stance on social and political issues, it can help to foster a sense of trust and shared values among employees.
Q: How can employers navigate conflict and tension in the workplace?
A: Employers can navigate conflict and tension in the workplace by prioritizing the well-being and safety of all employees. This can involve providing training on diversity and inclusion, establishing clear policies and procedures for addressing conflict, and fostering a culture of empathy and understanding.
Q: What are the benefits of prioritizing social responsibility in the workplace?
A: The benefits of prioritizing social responsibility in the workplace include increased employee engagement, improved reputation, and enhanced business growth. By prioritizing social responsibility, employers can foster a sense of trust and shared values among employees, ultimately driving job satisfaction and productivity.
Global Trends and Politics
Lamar Jackson Uses Horse Racing to Build Up Baltimore

Introduction to Lamar Jackson’s Venture
Lamar Jackson with the winners of the 2025 NTL Kickoff Race.
Courtesy: National Thoroughbred League
Baltimore Ravens quarterback Lamar Jackson has a singular goal both on the football field and as owner of the Maryland Colts horse racing franchise in the National Thoroughbred League.
Goal for Championships
"I just want to win a championship," Jackson told CNBC. "I want to win one in the National Football League. I want to win one in the NTL."
Jackson purchased the Maryland Colts in 2024, basing the franchise in Baltimore where the Colt moniker was previously attached to a Super Bowl-winning National Football League team.
The National Thoroughbred League
The Maryland Colts are part of the 10-franchise NTL, which operates a new team-based concept for horse racing. Teams earn points based on how their horses and jockeys finish in each competition, similar to auto racing. Those points are totaled at the end of the season to determine the winner of the NTL Championship.
Trend of NFL Quarterbacks in Sports Team Ownership
Jackson is part of a growing trend of active and retired NFL quarterbacks looking for equity in sports teams.
Legendary quarterback Tom Brady is a minority owner in the NFL’s Las Vegas Raiders, and former NFL quarterback Peyton Manning is a minority owner in the National Basketball Association’s Memphis Grizzlies.
Current Kansas City Chiefs quarterback Patrick Mahomes has a stake in the Kansas City Royals of Major League Baseball, Sporting Kansas City of Major League Soccer and the Miami Pickleball Club of Major League Pickleball. He also invested in Formula 1’s Alpine auto racing team.
Jackson’s Investment Strategy
Jackson said beyond the Colts, he has no immediate plans to take ownership in other sports teams. Instead, the two-time NFL Most Valuable Player is focused on creating an impact.
"When we are looking to invest, it has to be something meaningful. I have to see long-term goals when I’m doing something," Jackson said. "That’s how I move when I’m in the investing space."
Community Involvement
In addition to bringing a horse racing team to the city, Jackson hopes to bring new opportunities to the young people of Baltimore.
Lamar Jackson signs a football for a young fan.
Courtesy: National Thoroughbred League
On Saturday, as the NTL kicked off its 2025 season at Pimlico Race Course in Baltimore, Jackson hosted a community day where he invited young people to learn about horse racing and careers in the industry.
"The reason I got involved in the NTL is I saw the vision. Giving back to the underprivileged, this is a no-brainer for me," he said. "There are a lot of underprivileged kids in Baltimore, and they look at the football players for hope and guidance."
The NTL Kickoff and Jackson’s Background
The Colts placed third in the opening race weekend.
Jackson played college football at the University of Louisville, about a mile away from famed race track Churchill Downs, home of the Kentucky Derby. But Lamar said he never attended the race while in college.
Still, his love for horses started much younger, as he grew up in Florida.
"I was always intrigued with horses," Jackson said, "I’m from Cypress, a small town in Pompano Beach. There was always this horse track and horse racing going on in our area."
Modernizing Horse Racing
The NTL is just one of many efforts to modernize horse racing. All three tracks that host the Triple Crown of horse racing have planned projects to modernize and attract new fans.
Churchill Downs announced a nearly $1 billion renovation plan in February before suspending those plans due to tariffs. Pimlico, which hosts the Preakness, will begin a $400 million renovation after the race on Saturday. Belmont Park in the suburbs of New York City is in the process of a more than $455 million renovation.
Conclusion
Lamar Jackson’s venture into the National Thoroughbred League is not only about winning championships but also about creating an impact and giving back to the community. His focus on meaningful investments and long-term goals is a testament to his commitment to making a difference.
FAQs
Q: What is the National Thoroughbred League?
A: The National Thoroughbred League is a team-based concept for horse racing where teams earn points based on how their horses and jockeys finish in each competition.
Q: What is Lamar Jackson’s goal in the NTL?
A: Lamar Jackson’s goal is to win a championship in the NTL with his team, the Maryland Colts.
Q: What is Jackson’s investment strategy?
A: Jackson’s investment strategy is to look for meaningful investments with long-term goals.
Q: What is the NTL’s effort to modernize horse racing?
A: The NTL is one of many efforts to modernize horse racing, along with renovation plans at Churchill Downs, Pimlico, and Belmont Park.
Q: How is Jackson involved in the community?
A: Jackson is involved in the community through hosting a community day where young people can learn about horse racing and careers in the industry.
Global Trends and Politics
Charter and Cox Announce Merger

Introduction to the Merger
Charter Communications and Cox Communications, two of the largest cable companies in the U.S., have agreed to merge. The deal would be one of the largest in the industry – and across corporate America – in the last year. The agreement values Cox at $34.5 billion on an enterprise basis – comprised of $21.9 billion of equity and $12.6 billion of net debt and other obligations – in line with Charter’s recent enterprise value based on 2025 estimated adjusted earnings before interest, taxes, depreciation and amortization multiple.
Details of the Agreement
Shares of Charter — the second-largest publicly traded cable company behind Comcast — closed slightly higher Friday. Privately run by the Cox family, Cox is among the biggest cable providers, too. On a Friday call with investors, Charter CEO Chris Winfrey called the deal "good for America" and said it will "return jobs from overseas and create new, good paying customer service and sales careers." The commentary comes as corporate deal activity has been slower than expected since President Donald Trump took office.
Regulatory Environment and Deal Activity
After Trump won the election, Wall Street rallied as many expected the regulatory environment to loosen and the flood gates to open for dealmakers and corporate leaders. But in the months following the election, companies have been contending with other factors rather than dealmaking, such as the Federal Communications Commission’s investigation into diversity, equity and inclusion practices, and the outcome of Trump’s tariffs. Last fall communications giant Verizon announced a proposed $20 billion acquisition of Frontier Communications. However the deal has yet to receive regulatory approval as Verizon is being investigated for its DEI practices.
Expected Outcome and Synergies
Charter’s Winfrey said on Friday the companies expect "to go through a fulsome process." The merger with Cox comes months after Charter announced it would acquire Liberty Broadband in an all-stock deal that simplifies cable pioneer John Malone’s portfolio. In February, Charter and Liberty Broadband stockholders approved the proposed deal. Charter expects there to be about $500 million in annualized cost synergies within three years of closing, according to the release.
The Cable Industry and Competition
The broadband industry has been contending with heated competition from wireless competitors in recent years as there’s been a rise in alternate home internet options like 5G, or so-called fixed wireless. This follows the continued loss of customers from the traditional cable TV bundle. Charter had 30 million broadband customers at the end of the first quarter, a decline of 60,000 from the prior period. It had about 12.7 million cable TV customers, with 181,000 losses during the quarter.
Company Overview
Cable companies have begun to lean on their mobile businesses to retain customers, and Charter has been aggressive in its pricing and bundling of mobile lines. Charter said it had 10.5 million mobile lines as of the first quarter after reporting another quarter of growth. The company provides its services in 41 states, and is available to more than 57 million homes and businesses. As of March 31, Charter said it had a total of 31.4 million customer relationships. Cox Communications — a division of Cox Enterprises — counts itself as the largest privately held broadband company in the U.S., and has approximately 6.5 million total residential and commercial customers, per its website.
Merger Details and Structure
On Friday’s investor call Charter CFO Jessica Fischer provided details on Cox’s business. The company has 6.3 million customers, including 5.9 million signed up for internet. Cox generated $13.1 billion in revenue in 2024, she said. Cox’s services are available to 12 million homes, and its network infrastructure reaches more than 30 states. It began offering mobile in 2023. The combined company’s network will span approximately 46 states, making it available to nearly 70 million homes and businesses, with 38 million customers, Winfrey said Friday.
Comparison with Competitors
By comparison, Comcast, the largest cable provider in the U.S., reported it had roughly 51.4 million total customer relationships, which includes 17.8 million international customers. Comcast had roughly 34 million total domestic customer relationships, and was available to nearly 64 million homes and businesses in the U.S. as of March 31. Upon closing of the merger, Cox Enterprises will own roughly 23% of the combined company’s fully diluted shares outstanding, according to the release.
Post-Merger Plans
The transaction will see the combined company change its name to Cox Communications within a year after the deal closes. Charter’s Spectrum, the brand on its cable, broadband, mobile and other services, will become the consumer-facing brand across all customers. The combined company will take on Charter’s current headquarters in Stamford, Connecticut, although it will keep a significant presence in Cox’s home base in Atlanta after the closing. Charter’s Winfrey will remain at the helm as president and CEO following the close of the deal. Meanwhile Alex Taylor, chairman and CEO of Cox Enterprises, will become chairman of the combined company’s board.
Conclusion
The merger between Charter Communications and Cox Communications marks a significant development in the cable industry, with potential benefits for customers and the economy. The deal is expected to create new jobs and increase competition in the market. However, the regulatory environment and the outcome of the merger are still uncertain.
FAQs
Q: What is the value of the merger between Charter Communications and Cox Communications?
A: The agreement values Cox at $34.5 billion on an enterprise basis.
Q: What are the expected benefits of the merger?
A: The merger is expected to create new jobs, increase competition in the market, and provide cost synergies of about $500 million within three years of closing.
Q: What is the current state of the cable industry?
A: The broadband industry has been contending with heated competition from wireless competitors and the loss of customers from traditional cable TV bundles.
Q: What is the expected outcome of the merger in terms of company structure?
A: The combined company will change its name to Cox Communications, with Charter’s Spectrum becoming the consumer-facing brand across all customers.
Q: Who will lead the combined company after the merger?
A: Charter’s Chris Winfrey will remain as president and CEO, while Alex Taylor, chairman and CEO of Cox Enterprises, will become chairman of the combined company’s board.
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