(VOR News) – On Wednesday, the United States Senate Social Security passed a measure with a vote of 73-27, indicating that the legislation, which is co-sponsored by Senator Susan Collins of Maine, is likely to be implemented before the end of the year.

The law may be beneficial to personnel working in the public sector in Maine, including teachers, firefighters, and other workers.

The Social Security Fairness Act would repeal two restrictions that lower the amount of Social Security payments paid to public employees.

These regulations would be eliminated with the passage of the act. A provision known as the Windfall Elimination Provision makes it impossible for public employees who are currently receiving pensions to continue receiving them.

The Government Pension Offset, as it is commonly referred to, is designed to limit the amount of money that can be paid to the surviving spouses of recipients who are also receiving government pensions.

This problematic situation impacts Social Security benefits.”

In November 2024, the Social Security Administration reported that more than 2 million individuals, including more than 20,000 in the state of Maine, had their Social Security benefits reduced as a result of the Windfall Elimination Provision,” Collins stated in a statement that was released by her department.

In November 2024, the Government Pension Offset had an impact on more than 650,000 individuals, with more than 6,000 of those individuals residing in the state of Maine, according to the previously mentioned line of reasoning.

A vote of 327 to 75 was necessary for the measure to be approved by the House of Representatives the previous month. On Wednesday, Chuck Schumer, the Democratic leader of the Senate, announced that he intended to work rapidly in order to deliver the act from the House of Representatives to the president’s desk.

As indicated by Schumer, who was speaking on the floor of the United States Senate today, “Passing this Social Security fix right before Christmas would be a great gift for our retired firefighters, police officers, postal workers, teachers, and others who have contributed to Social Security for years but are now being penalised because of their time spent serving the public.”

In the beginning, the measure was supported by two individuals: Sherrod Brown, a Democrat from Ohio, and Collins, a Republican. During her speech in support of the proposal, which was made on the floor of the Senate on Wednesday afternoon, Collins stated that the idea will have a significant impact on a number of individuals, including teachers in the state of Maine.

These advantages are the direct result of the effort that they put forth. During the course of her remarks, Collins asserted that the punishment in question was both unreasonable and unacceptable.

This will strain Social Security’s already shaky budget.

In a recent examination, it was discovered that the Windfall Elimination Provision was one of the primary problems that contributed to the difficulties that the teacher workforce in Maine is experiencing, which experts are referring to as a crisis.

A poll that was conducted and released by the non-profit organisation Educate Maine found that teachers in each and every county in the state of Maine identified the provision as a hindering factor in the process of recruiting new teachers.

According to the findings of the study, “this federal policy that reduces social security payouts is a disincentive,” which implies that it is detrimental to teachers who take on additional work and discourages people from switching careers in order to become teachers.

Sharon Gallant, a retired educator who worked in Gardiner for a total of 31 years, is one of the educators that are now employed there. Prior to beginning his career as a teacher in the public school system, Gallant was employed in the business sector. He made a little contribution to the Social Security system during the entirety of this time period.

“When you move into public education, you are faced with a certain degree of punishment,” according to her statement.

In letters that Gallant sent to Collins and to Sen. Angus King of Maine, who is an independent, he urged both of them to support the concept. She stated that even if it is unsuccessful, Maine will still have a difficult time recruiting teachers because of the clause that deters them from employment.

She made the observation, “If this does not pass, then it is just another reason not to enter public service.”

SOURCE: FR

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(VOR News) – If the Federal Reserve indicates on Wednesday that interest rate reductions will proceed more gradually next year than in recent months, the United States may experience only slight alleviation from the persistently elevated costs of borrowing for credit cards, auto loans, and mortgages.

The Federal Reserve is set to announce a quarter-point reduction in its benchmark rate, anticipated to decrease from around 4.6% to approximately 4.3%.

This represents the latest action undertaken, subsequent to a quarter-point cut in interest rates in November and a larger-than-usual half-point reduction in September.

The Wednesday meeting may mark a new era for the Federal Reserve.

The Federal Reserve is more inclined to adjust its monetary policy at alternate meetings, rather than at each meeting. The central bank policymakers may announce that they now expect to reduce their primary rate only two or three times in 2025, instead of the four reductions previously planned three months ago.

The Federal Reserve has utilised the rationale of a “recalibration” of ultra-high interest rates, originally aimed at curbing inflation that peaked at a four-decade high in 2022, to defend its measures thus far.

A considerable number of Federal Reserve officials contend that interest rates should not remain as elevated as they currently are, given the substantial decline in inflation. The Federal Reserve’s chosen index shows that inflation was 2.3% in October, a notable decline from the peak of 7.2% in June 2022.

Conversely, despite the swift economic growth, inflation has consistently exceeded the Federal Reserve’s 2% target for several months. The monthly retail sales statistics released by the government on Tuesday reveals that Americans, especially those with higher incomes, are inclined to spend liberally.

These trends, as per the views of several economists, suggest that further rate decreases could unduly stimulate the economy, perhaps leading to sustained high inflation.

The incoming president, Donald Trump, has advocated reducing taxes on overtime income, tips, and Social Security benefits, along with diminishing regulations in these domains.

When combined, these Federal Reserve practices can advance progress.

Alongside the threat of imposing various tariffs, President Trump has pledged to execute extensive deportations of migrants, both of which could exacerbate inflation.

Chair Jerome Powell and other Federal Reserve officials have indicated that they cannot assess the potential effects of President-elect Trump’s policies on the economy or their own interest rate decisions until further information is available and the likelihood of the proposed initiatives being enacted becomes clearer.

Consequently, the result of the presidential election has predominantly led to heightened economic uncertainty up to that point.

It seems improbable that the United States would soon experience the advantages of significantly reduced loan interest rates. As of last week, the average rate for a 30-year mortgage was 6.6%, lower than the top rate of 7.8% recorded in October 2023, according to Freddie Mac.

It is quite unlikely that mortgage rates of approximately three percent, which were common for nearly a decade prior to the onset of the pandemic, would be restored in the foreseeable future.

Federal Reserve officials have indicated a deceleration in interest rate reductions as the benchmark rate nears what policymakers designate as a “neutral” rate, a one that provides neither advantages nor disadvantages to the economy.

During a recent meeting, Powell stated, “Inflation is slightly elevated, and growth is unequivocally stronger than we anticipated.” Nevertheless, the positive aspect is that we can afford to use greater caution while we persist in our pursuit of neutrality.

Most other central banks globally are likewise lowering their benchmark interest rates. This week, the European Central Bank lowered its benchmark interest rate for the fourth time this year, from 3.25% to 3%.

This action was taken in reaction to the decline of inflation in the 20 euro-using countries, which has fallen to 2.3% from a peak of 10.6% in late 2022.

SOURCE: AP

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(VOR News) – TikTok petitioned the Supreme Court for a temporary injunction against a law that required ByteDance, the company that owns TikTok, to sell the app by January 19 or face a ban in a last-ditch effort to continue operating in the US.

Persuading the Supreme Court to temporarily halt the Act’s enforcement was the goal of the petition. TikTok and ByteDance have filed an urgent request to halt the law’s implementation while contesting a lower court’s ruling that upheld the legislation. On Monday, the request was made.

American TikTok users made a similar request.

Congress authorised the measure in April after the Justice Department said that TikHub presents “a national-security threat of significant magnitude and scope” because of its capacity to access user data from the United States and possibility of content editing. This is explained by TikHub’s content shaping power.

The U.S. Court of Appeals for the District of Columbia Circuit shot TikHub’s claims on December 6. Under the First Amendment the court decided that the pertinent legislation was unconstitutional.

In its submission to the Supreme Court, TikTok and ByteDance argued that, in spite of the known risks associated with the app, the United States of America “is entrusted with making that choice” about its continued use.

It stated that “Congress will have the authority to prohibit any American from speaking by citing foreign influence” if the court’s decision is affirmed. This is because Congress already has the authority to do this.

In addition to hurting its advertising, hiring of creators, and staff talent, ByteDance and TikTok said that a one-month site downtime would result in the loss of more than one-third of its US customers. This would be a significant setback for TikTok.

There is no immediate threat to national security, according to a statement issued by the firms, which also named TikTok “one of the most significant speech platforms” in the US.

The argument put out was that delaying the law’s implementation would allow the Supreme Court to review it and give the administration of President-elect Donald Trump a chance to examine it.

Additionally, the companies have said that the measure “closes one of America’s most favoured speech platforms” just one day before the next president is sworn in. President Trump attempted in vain to outlaw TikTok in 2020. Since then, he has revealed that he has changed his mind and plans to keep the app for the duration of his current campaign.

President Trump was questioned about the steps he would take to prevent the imposition of a ban during a press conference on Monday.

He replied, “I like TikTok,” and then said he’d “examine” it.

The Supreme Court has been asked by TikTok and ByteDance to rule by January 6th on the “complex task of shutting down TikTok” in the US, if it is thought to be required, and to interact with service providers. The purpose of this request was to give time for the “complex task.”

A statement from TikTok spokesperson Michael Hughes was made public after the filing. According to him, the court is asked “to impose the highest level of scrutiny on speech prohibitions and determine that the law contravenes the First Amendment.”

According to a recent ruling by the Circuit Court of the District of Columbia, “the First Amendment exists to protect free speech in the United States.”

Additionally, it was said that the administration’s moves were meant to limit the ability of a foreign opponent to gather data on citizens of the United States.

TikTok and other apps controlled by foreign rivals will have their access to certain services restricted in accordance with the law. This would include the existence of these programs in app stores run by businesses such as Apple and Google. Enforcement would essentially forbid TikTok users in the US from using the app if ByteDance is unable to sell it by the deadline.

In the midst of growing trade tensions between the US and China, an incident takes place. Observer evaluations indicate that a ban on TikTok may conceivably allow for similar actions against other services run by foreign corporations. A ban on Tencent’s WeChat was the focus of judicial proceedings in the United States in 2020, however the courts later revoked the prohibition.

SOURCE: PP

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