(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, Under the U.S. constitutional free expression clause, the Supreme Court agreed to hear arguments on Wednesday that a rule effectively banning TikTok is unconstitutional.

On January 10, the Supreme Court set a date for the case’s oral arguments. An estimated 170 million Americans use the app, and the law targeting it will go into force in nine days.

The measure would force ByteDance, TikTok’s parent firm in China, to either sell the program or stop supporting the app in the US. Google, Apple, and other platforms would have to do this.

In response to worries that TikTok’s Chinese ownership would pose a national security risk, Congress approved the Foreign Adversary Controlled Applications Act.

On December 6, the U.S. Court of Appeals for the District of Columbia Circuit affirmed the law, finding that the Department of Justice had “provided convincing evidence verifying that” the divestment rule is “specifically designed to safeguard national security.”

TikTok users and ByteDance filed lawsuits.

Which the Supreme Court reviewed Wednesday. These users include a rancher who creates short-form videos about agriculture, a lady who advocates for survivors of sexual assault, and a woman who makes films about mental health and fatherhood.

According to the company, users who make videos on TikTok would lose around $300 million in revenue as a result of the suspension, and small U.S. businesses that use the app for marketing would lose more than $1 billion in revenue the month after.

Two days after TikTok filed a petition seeking an injunction against the law that will take effect next month, the Supreme Court declared on Wednesday that it will review the company’s appeal.

TikTok submitted a motion contending that “this court is unlikely to uphold the serious constitutional issues posed by Congress’s unprecedented effort to target applicants and prohibit them from utilising one of the most significant platforms for speech in this country.”

In order to consider the appeal, the Supreme Court asked the lawyers for BytenDance, TikTok, and the Department of Justice to brief and discuss whether the legislation pertaining to TikTok “violates the First Amendment” of the Constitution.

However, the court did not grant an injunction to stop the law from going into force and instead said on January 10 that it was delaying its decision on the petition “pending oral argument.”

On January 19, the day before President-elect Donald Trump takes office, the court may make a ruling on the injunction before the law goes into effect.

President Trump met with TikTok CEO Shou Zi Chew on Monday at his Mar-a-Lago club in Palm Beach, Florida. On the same day, the business filed a request with the Supreme Court.

“We’ll examine TikTok,” Trump stated when asked about the ban earlier that day.

“You know, I have a warm spot in my heart for TikTok,” Trump said, raising the possibility that the app helped him win over more young voters in the November election.

One of Trump’s staunchest backers is Jeff Yass, managing director and co-founder of Susquehanna International Group. ByteDance has seen significant investment from Susquehanna International Group.

In a petition filed with the Supreme Court on Wednesday, a lawyer for Sen. Mitch McConnell of Kentucky, the Republican caucus leader, argued against TikTok’s request for an interim injunction against the Act.

The paperwork shows that “TikTok evidently anticipates that the incoming administration of Trump will be more empathetic to its circumstances than the incumbent administration of President Joe Biden.”

Michael Fragoso, McConnell’s lawyer, insisted that the purpose of the injunction application was to “delay.” TikTok, according to Fragoso, makes “First Amendment arguments that are meritless and unsound.”

Fragoso stated that “Any delay caused by an injunction would be contrary to the public interest, even though the forced divestment may cause them irreparable harm.”

“At the conclusion of one administration, this is a typical litigation play, with a petitioner hoping that the next administration will provide a stay of execution,” the attorney wrote. “It should not be tolerated by this Court from foreign adversaries any more than it is from seasoned criminals.

SOURCE: CNBC

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