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A much-watched poll from Iowa points to a Harris landslide

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AS THE ELECTION approaches its climax, dozens of opinion polls of American voters are churned out each day. None is so eagerly awaited as the final Des Moines Register/Mediacom poll of Iowa, produced by Selzer & Co, a polling firm. On “Election Twitter”—the colloquial name for a community of political-data junkies on X—this particular poll has taken on a legendary status. On the evening of November 2nd, it showed Kamala Harris leading Donald Trump in Iowa, sending Election Twitter into a frenzy. Why?

Selzer & Co is a high-quality pollster. It is rated as one of the best in the country by FiveThirtyEight, a data-journalism outfit that tracks polling accuracy. The Selzer Poll is recognised for its success projecting the Iowa caucus—the early test that has been a staging ground for presidential nominees. And the pollster’s predictive powers in presidential elections has been stretched beyond Iowa, the state it usually surveys.

In the past five presidential elections, the final Iowa polls by Selzer and Co have had an average absolute error of 3.1 percentage points in the state. They have predicted the result in Iowa correctly four out of five times—an impressive record. But the most surprising thing about this record is that the Selzer Poll performs better in some states other than Iowa, where its respondents live.

Taking the implied change in vote shares from the Iowa poll and applying them to other states, the average absolute error is lower in four of them than in Iowa: North Dakota, South Dakota, Michigan and Wisconsin. Indeed, this crude method outperforms 14 states’ own polling averages from 2004 to 2020. The strange phenomenon has been particularly striking in the past two presidential cycles, when Michigan and Wisconsin were crucial battleground states. Polls in those states underestimated Donald Trump, the Republican nominee, whereas the Selzer Poll did not.

Despite the obvious point that a poll of Iowans cannot be directly translated to Michiganders or Wisconsinites, for some poll-watchers the survey has taken on a near-mythical ability to forecast the election across the country. If that were the case, the results published on Saturday would be very good news for Ms Harris. The poll shows her leading in Iowa by three percentage points; Mr Trump won the state by eight points in 2020. Applying that shift across the country would see Ms Harris win the election in a landslide, with 416 electoral-college votes.

Democrats should not celebrate too soon. It is true that states such as Wisconsin and Michigan have characteristics in common with Iowa, but the Selzer Poll’s historical out-of-state record is probably a fluke. With only five polls to go on (Ms Selzer has been running the Iowa poll since 1987 but archived results have not been digitised), the sample is too small to say if the Iowa poll is truly predictive of other states. Even within the state, the record is not perfect. The poll estimated Barack Obama to have a lead of 17 points in 2008, for example, and he went on to win by just ten. Taking the average error from previous Iowa polls in each state, the projected advantage for Ms Harris is within the margin of error in Pennsylvania, North Carolina, Georgia and Arizona, among the key states.

That said, our forecast gives Ms Harris a 4-in-100 chance of flipping Iowa now that the Selzer Poll is included. It is a respected survey which happens to have outperformed other pollsters, even outside Iowa. If Saturday’s reading correctly foretells a landslide for Ms Harris, prepare for the Selzer Poll to enjoy even greater veneration.

Economics

At the state level, democracy in America is fracturing

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The residents of Bristol, Tennessee and Bristol, Virginia share a border, a downtown and even a Nascar speedway. But thanks to the quirks of American federalism, the 27,800 Bristolians who live in the Volunteer State reside in America’s least democratic state, while their 16,800 neighbors to the north live in one of the most democratic.

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Economics

BOI Reporting and the impact of the recent Federal Injunction

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The Corporate Transparency Act (CTA) is a legislative measure designed to enhance financial transparency

The Corporate Transparency Act (CTA) is a legislative measure designed to enhance financial transparency and mitigate risks such as money laundering, terrorist financing, and other illicit financial activities. The CTA aims to close loopholes and create a fairer business environment by requiring certain entities to disclose their beneficial ownership information. However, recent legal developments have temporarily impacted compliance requirements, bringing attention to the act’s ongoing litigation and implementation.

Federal Court Decision and Its Implications

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. (No. 4:24-cv-00478). This injunction temporarily halts the enforcement of the CTA, specifically its beneficial ownership reporting requirements. Additionally, the court order stays all deadlines for compliance.

As a result, reporting companies are currently not obligated to submit beneficial ownership information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN). During the injunction, these entities are also shielded from liability for non-compliance with CTA mandates.

Despite this pause, FinCEN has clarified that companies may still voluntarily submit their BOI reports. This voluntary reporting option remains available for businesses that wish to align with the CTA’s transparency goals.

Overview of the Corporate Transparency Act

The CTA mandates that certain entities provide information about their beneficial owners—individuals who own or control a business. The act is intended to increase transparency, enhance national security, and reduce the anonymity that can facilitate financial crimes.

While the CTA has garnered support for its objectives, it has also faced legal challenges questioning its constitutionality. Courts in different jurisdictions have issued varying rulings, with some upholding the law and others granting temporary injunctions. For example, district courts in Virginia and Oregon have ruled in favor of the Department of the Treasury, asserting the CTA’s alignment with constitutional principles.

Compliance During the Injunction

Currently, the federal injunction exempts businesses from mandatory BOI filing requirements nationwide. This temporary halt will remain in place until further developments, such as a decision by an appellate court or a reversal of the injunction.

In response to the ruling, the Department of Justice, representing the Department of the Treasury, has filed an appeal. While the case proceeds through the legal system, FinCEN has confirmed its compliance with the court order.

Looking Ahead

The legal proceedings surrounding the CTA highlight the evolving nature of financial regulation. As courts continue to deliberate, businesses should monitor updates to remain informed about their obligations. By staying informed and prepared, businesses can effectively manage their compliance responsibilities and contribute to efforts that promote financial integrity and transparency.

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Economics

After a chaotic scramble, Congress strikes a budget deal

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Donald Trump is the most powerful Republican politician in a generation, but the president-elect is still no match for the most nihilistic members of his own party. The budget chaos that unfolded on Capitol Hill as the Christmas break approached is only a preview of the difficult realities Mr Trump will face when he starts to govern next month.

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