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To tax tips or not? That is a question that will confront lawmakers in states across the U.S. as they convene for work next year. President Donald Trumps administration is urging states to follow its lead by enacting a slew of new tax breaks for individuals and businesses, including deductions for tips and overtime wages, automobile loans, and business equipment. In some states, the new federal tax breaks will automatically apply to state income taxes unless legislatures opt out. But in many other states, where tax laws are written differently, the new tax breaks won’t appear on state tax forms unless legislatures opt in. In states that don’t conform to the federal tax changes, workers who receive tips or overtime for example will pay no federal tax on those earnings but could still owe state taxes on them. States that embrace all of Trump’s tax cuts could provide hundreds of millions of dollars of annual savings to certain residents and businesses. But that could financially strain states, which are being hit with higher costs because of new Medicaid and SNAP food aid requirements that also are included in the big bill Trump signed. Most states begin their annual legislative sessions in January. To retroactively change tax breaks for 2025, lawmakers would need to act quickly so tax forms could be updated before people begin filing them. States also could apply the changes to their 2026 taxes, a decision requiring less haste. So far, only a few states have taken votes on whether to adopt the tax breaks. States in general are approaching this skeptically,” said Carl Davis, research director at the nonprofit Institute on Taxation and Economic Policy. Trump’s treasury presses states to ‘immediately conform’ A bill Trump signed on July 4 contains about $4.5 trillion of federal tax cuts over 10 years. It creates temporary tax deductions for tips, overtime, and loan interest on new vehicles assembled in the U.S. It boosts a tax deduction for older adults. And it temporarily raises cap on state and local tax deductions from $10,000 to $40,000, among other things. The law also provides numerous tax breaks to businesses, including the ability to immediately write off 100% of the cost of equipment and research. Forty-one states levy individual income taxes on wages and salaries. Forty-four states charge corporate income taxes. Treasury Secretary Scott Bessent this month called on those states to immediately conform to the federal tax cuts and accused some Democratic-led states that haven’t done so of engaging in “political obstructionism. Though Bessent didn’t mention it, many Republican-led states also have not decided whether to implement the tax deductions. By denying their residents access to these important tax cuts, these governors and legislators are forcing hardworking Americans to shoulder higher state tax burdens, robbing them of the relief they deserve and exacerbating the financial squeeze on low- and middle-income households, Bessent said. But some tax analysts contend there’s more for states to consider. The tax break on tips, for example, could apply to nearly 70 occupation fields under a proposed rule from the Internal Revenue Service. But that would still exclude numerous low-wage workers, said Jared Walczak, vice president of state projects at the nonprofit Tax Foundation. Lawmakers need to consider whether these are worth the cost, Walczak said. Only a few states offer tax breaks for tips and overtime Because of the way state tax laws are written, the federal tax breaks for tips and overtime wages would have carried over to just seven states Colorado, Idaho, Iowa, Montana, North Dakota, Oregon, and South Carolina. But Colorado opted out of the state tax break for overtime shortly before the federal law was enacted. Michigan this fall became first and, so far, only state to opt into the tax breaks for tips and overtime wages, effective in 2026. The overtime tax exemption is projected to cost the state nearly $113 million and the tips tax break about $45 million during its current budget year, according to the state treasury department. Michigan lawmakers offset that by decoupling from five federal corporate tax changes the state’s treasury estimated would have reduced Michigan tax revenues by $540 million this budget year. Republican state Rep. Ann Bollin, chair of the Michigan House Appropriations Committee, said the state could not afford to embrace all the tax cuts while still investing in better roads, public safety, and education. The best path forward is to have more money in peoples pockets and have less regulation and this kind of moved in that direction, she said. Arizona could be among the next states to act. Democratic Gov. Katie Hobbs has called upon lawmakers to adopt the tax breaks for tips, overtime, seniors, and vehicle loans, and follow the federal government by also increasing the state’s standard deduction for individual income taxpayers. Republican state House leaders said they stand ready to pass the tax cuts when their session begins Jan. 12. Several states have rejected corporate tax breaks In addition to Michigan, lawmakers in Delaware, Illinois, Pennsylvania, and Rhode Island have passed measures to block some or all of the corporate tax cuts from taking effect in their states. A new Illinois law decoupling from a portion of the corporate tax changes could save the state nearly $250 million, said Democratic state Sen. Elgie Sims, chair of the Senate Appropriations Committee. He said that could help ensure continued funding for schools, health care and vital services. Illinois Gov. JB Pritzker, an outspoken Democratic opponent of Trump, also cited budget concerns for rejecting the corporate tax cut provision. He said states already stand to lose money because of other provisions in Trump’s big bill, such as a requirement to cover more of the costs of running the Supplemental Nutrition Assistanc Program. The decoupling is an effort to try to hold back the onslaught from the federal government to make sure that we can support programs like the one were announcing today, Pritzker told reporters at a December event publicizing a grant to address homelessness in central Illinois. David A. Lieb, Associated Press Associated Press writer John O’Connor contributed to this report.
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Ford is recalling more than 270,000 electric and hybrid vehicles in the U.S. because of a parking function problem that could lead to them rolling away. The Detroit automaker said that the recall includes certain 2022-2026 F-150 Lightning BEV, 2024-2026 Mustang Mach-E, and 2025-2026 Maverick vehicles. At issue is the integrated park module, which may fail to lock into the park position when the driver shifts into park. Ford said that it will implement a park module software update for free. Vehicle owners may contact Ford customer service at 1-866-436-7332 for additional information.
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E-Commerce
Visa and Mastercard have agreed to pay $167.5 million to settle a long-running class action lawsuit. The suit, which was first filed back in October 2011, accused the two major credit card companies of conspiring to keep ATM fees artificially high. If approved, the proposed settlement filed on Thursday in Washington will bring an end to “almost fourteen years of vigorously contested litigation.” The lawsuit alleged that both Visa and Mastercard “participated in an unlawful conspiracy” to block independent ATM operators from offering lower prices. The settlement, if approved, will have Visa and Mastercard pay millions to ATM users who say they were charged an unreimbursed access fee to withdraw cash from independent non-bank ATMs. Per a Guardian report, Visa is set to pay 53% of the settlement ($88.8 million) while Mastercard will contribute 47% ($78.7 million). Attorneys for the plaintiffs called the settlement an excellent result in light of the risks of continued prosecution. Attorneys for the defendants did not immediately reply to a Fast Company request for comment. Last year, Visa and Mastercard also agreed to pay $197.5 million to ATM users who claimed they were overcharged at bank-operated ATMs. At the time, the plaintiffs’ attorneys said the settlement will “deliver immediate and assured relief.” That settlement followed a 2021 settlement in which major bankssuch as JPMorgan Chase, Bank of America, and Wells Fargoagreed to pay $66 million to settle similar claims. Still, the lawsuits against the two major credit card companies are not over, as a third lawsuit, launched by independent ATM owners and operators, is pending against the companies. “The rules prevent ATM operators from passing on the savings to cardholders when their ATM transactions are handled by an ATM network other than Visa or Mastercard,” Jonathan Rubin, an attorney for the plaintiffs, said in 2023 when announcing that the lawsuit would continue to move forward. At the time, he added that the suit will ask the court to eliminate rules that all but eliminate competition. Despite Thursday’s settlement, the companies have denied any wrongdoing.
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E-Commerce
Sales of previously occupied U.S. homes rose in November from the previous month, but slowed compared to a year earlier for the first time since May despite average long-term mortgage rates holding near their low point for the year. Existing home sales rose 0.5% in last month from October to a seasonally adjusted annual rate of 4.13 million units, the National Association of Realtors said Friday. Sales fell 1% compared with November last year. The latest sales figure came in slightly below the 4.14 million pace economists were expecting, according to FactSet. Through the first 11 months of this year, home sales are down 0.5% compared to the same period last year. Its possible that 2025, unless December (sales) figures really improve, we may be technically slightly down from one year ago, said Lawrence Yun, NARs chief economist. One factor limiting home sales is weaker demand for condominiums. Sales of condos are down 6% so far this year, Yun noted. Despite sluggish sales, home prices continued to climb last month. The national median sales price increased 1.2% in November from a year earlier to $409,200, an all-time high for any November on data going back to 1999. Home prices have risen on an annual basis for 29 months in a row, even as the housing market has been mired in a slump that began in 2022 when mortgage rates began climbing from historic lows. Sales of previously occupied U.S. homes sank last year to their lowest level in nearly 30 years. Sales have been stuck at around a 4-million annual pace now going back to 2023. Thats well short of the 5.2-million annual pace thats historically been the norm. Home sales got a boost this fall as the average rate on a 30-year mortgage declined at the end of October to 6.17%, the lowest level in more than a year. Even so, affordability remains a challenge for many aspiring homeowners, especially first-time buyers who dont have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines. A shortage of homes for sale, especially in the more affordable end of the market, continues to weigh especially on first-time homebuyers. They accounted for 30% of homes sales last month. Historically, they made up 40% of home sales. An annual survey of homebuyers by NAR showed first-time buyers accounted for an all-time low 21% of home purchases between July 2024 and June 2025, while the average age of such homebuyers rose to a record-high of 40. Homes purchased last month likely went under contract in September and October, when the average rate on a 30-year mortgage ranged from 6.5% to 6.17%, according to Freddie Mac. Mortgage rates have mostly remained close to their October low in recent weeks. Home shoppers who can afford to buy at current mortgage rates benefited from a wider selection of properties on the market last month than a year ago, although the number of homes for sale in November declined from the previous month. There were 1.43 million unsold homes at the end of last month, down 5.9% from October and up 7.5% from November last year, NAR said. The latest inventory snapshot remains well below the roughly 2 million homes for sale that was typical before the COVID-19 pandemic. Novembers month-end inventory translates to a 4.2-month supply at the current sales pace. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers. Yun is forecasting that existing U.S. home sales will jump 14% next year. Thats more optimistic than several other housing economist forecasts, which range from a 1.7% to 9% increase. Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year. Alex Veiga, AP business writer
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E-Commerce
Its been nearly a decade since Netflix introduced fans to the fictional town of Hawkins, Ind., the Upside Down, Demogorgons, and the Stranger Things universe. Since 2016, the sci-fi series has become a massive hit for Netflix making it one of the streaming services most-watched shows with the fourth season alone amassing over 140.7 million views globally, according to the company. The series has earned 12 Primetime Emmy Awards over the course of the last several years, has pushed its young cast into superstardom, and has become a global phenomenon inspiring several live events and pop-up stores in various cities. And its fifth and final season, which is premiering in three parts, is no exception when it comes to the scale. While the streaming giant and showrunners Matt and Ross Duffer have other spin-offs planned, the fandom was always at the top of their mind when planning the marketing for the show to give the original series a proper send-off. Stranger Things is the first franchise for Netflix overall so we do different things year round to reach all the fans and we’ve done that for years and it just keeps building, Marian Lee, chief marketing officer of Netflix, tells Fast Company. The fact that we started our live experiences with Stranger Things and have continued to evolve them in different ways is exciting.To really build that excitement for fans heading into the final season, Netflix launched a massive global marketing campaign that includes a mix of real life, immersive experiences as well as social media components. And by the beginning of next month, Netflix will have launched several fan events across 32 cities across 23 countries from Tokyo to London and Berlin to Los Angeles. Turning ‘Stranger Things’ into real-world experiences [Photo: Phillip Faraone/Getty Images for Netflix] Netflix hosted a One Last Ride cycling event with CicLAvia with over 50,000 attendees; a transit station in Buenos Aires was turned into an Upside Down-portal at a transit station; a holographic featuring elements from the series was projected over the Sydney Harbour in Sydney; an old airport hangar in Berlin was transformed into the Stranger Things universe where visitors had the opportunity to enjoy a bike ride through pivotal moments from the show; and just last month in New York City, a Stranger Things-themed float was debuted at the Macys Thanksgiving Day parade to its three million attendees. Other events are planned in London, Bangkok, Milan, Las Vegas, and Madrid later this month. In Las Vegas, fans will be treated to One Last Adventure: Las Vegas, a drone show that will feature 5,000 choreographed drones and pyrotechnics highlighting moments from the show complete with a musical mashup. Meanwhile, fans will be able to watch the final episode in theaters across the United States and Canada. Earlier this month, Netflix House, the new live entertainment venue that launched in Philadelphia and Dallas this month, features Stranger Things elements at both locations. The Dallas location features an immersive Stranger Things: Escape the Dark experience with a brand new storyline, while the Philadelphia location features a Stranger Things: Catalyst game developed in collaboration with Sandbox VR. On top of that, visitors can enjoy food inspired by the show in the Netflix Bites food court at the Las Vegas location debuting next year. But even before Netflix began heavily leaning into the experiences during the second half of the year, they also opened its Stranger Things: The First Shadow show on Broadway and West End earlier this year. According to the entertainment giant, demand across Broadway and the West End saw an almost instant sustained increase in sales, with sales at their highest levels since the initial launch of both productions. The Upside Down takes over social media Lee said when her team was planning the marketing for the final season, it was important to start early with a social campaign that focused on rewatching previous seasons to get ready for the new one. Ahead of the final season, Netflix rolled out a pre-launch rewatch campaign, which has generated 5.7 billion earned global social impressions.Its a brilliant way for the team to really think about how to re-engage fans and to get them ready for this next season, Lee said. A lot of our strategy really leaned into those core moments. A video featuring the four boys played by Finn Wolfhard, Noah Schnapp, Caleb McLaughlin, and Gaten Matarazzo, recreating a scene from the second season earned over 215 million impressions globally. According to Netflix, total earned social impressions for the fifth season has reached 11.5 billion and thats without the last two volumes of the episodes released yet.Since then, Netflix has also released many behind-the-scenes moments and audition tapes of the cast across its social channels, which all have millions of followers. Powered by brands and 80s nostalgia Lee said another essential part of the campaign was its various partnerships with brands and for this season, Netflix partnered with many companies across various lifestyle and retail categories like Spotify, Meta, Target, Walmart, Nike, Gap, and several food and beverage brands like Eggo, Doritos, Kellogg’s, Chips Ahoy, and Gatorade all infused with nostalgic elements inspired by the shows 1980s setting. [Image: courtesy Netflix] Netflix launched a collaboration with military quarantine snack Peanut Butter Boppers earler this month for a limited time, several other items and snacks inspired by the series with including a special collection with Target that included over 150 exclusive products like Demogorgon popcorn bucket, Demogorgon Bundle Box by Jazwares and exclusive Gatorade x Stranger Things apparel and accessories.Along with the partnerships with brands like Doritos and Discover, Netflix collaborated closely with each respective brand on a custom partnership that included commercials. [Photo: courtesy Netflix] Lee said her and her team set the bar really high when it came to working with its brand partners this season. This fandom is so rich and unique and it just happens to also dovetail really nicely with brands and retailers who are seeing the nostalgia for that 80s aesthetic come back so it came together in a really serendipitous way for us to lean in, Lee said. Ultimately, Lee said all the work her and her team really ties back to the fanbase the series has accumulated over the last five seasons.It is hard to even articulate the impact on culture that the Duffer Brothers has had, Lee said. To watch them tell their story of dreams they had of bringing this show to life and were lucky to be the home for that.
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E-Commerce
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