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Could a mechanic in Nebraska determine control of the Senate?

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AT MOST POLITICAL events in America, the arrival of the candidate is a big deal. A crowd builds, underlings prepare, and eventually the chosen one sweeps in, shaking hands, waving and generally being the centre of attention. That was not what happened when Dan Osborn, an independent candidate for the Senate in Nebraska, arrived at his event in Omaha on October 22nd to discuss Social Security. Instead, he arrived early, then milled around at the back, looking like another member of the crowd. Yet Mr Osborn has ambitions to achieve one of the biggest upsets of this election: unseating a Republican incumbent, Deb Fischer, in what ought to be one of the safest seats in America.

According to a poll conducted for The Economist by YouGov, Mr Osborn is seven points behind Ms Fischer, 50% to 43%, with the rest undecided. That suggests his chance of winning is slim. It cannot, though, be entirely ruled out. Another poll conducted around the same time for the New York Times put Mr Osborn just two points behind. If that poll is correct, and ours is not, then Mr Osborn holds a significant chance of determining the majority in the Senate. Yet even if Ms Fischer sneaks to victory, Mr Osborn’s run could be consequential. He proves that in the least competitive of states, a complacent incumbent in the Senate can still be challenged.

Mr Osborn’s candidacy has a curious origin story. He entered the race last year after Mike Helmink, a union leader who had planned to run himself, dropped out after being refused time off by his employer, and drafted Mr Osborn instead. Initially he courted the Nebraska Democratic Party, which chose not to stand a candidate, but after the deadline to declare for a primary passed, he changed his mind and said he would run as an independent. That meant forsaking the organisational and fundraising help of the Democratic Party—but allowed him to run his own campaign with his own platform.

It seems to be working. Unusually, both Nebraskan Senate seats are up this year. The other Republican incumbent is Pete Ricketts, a member of the billionaire family which owns the Chicago Cubs baseball team. Mr Ricketts was appointed to the job last year after serving as Nebraska’s governor. He faces a special election. According to our poll, Mr Ricketts is leading his Democratic opponent by 18 points. That gives a sense of how many Republican voters Ms Osborn is winning over.

Why is he doing well? It must help that he comes across as a very ordinary Nebraskan. His only previous political experience is as a union leader who led a strike at the Kellogg factory in Omaha, where he worked as a mechanic for 22 years. Before that, he served in the Navy and in the Nebraska national guard. And he is running a smart campaign, attacking Ms Fischer for backing business interests in the state over ordinary Nebraskans. A union-linked super PAC supporting him has bought inexpensive advertising in rural newspapers and on radio stations targeting voters in Ms Fischer’s heartland with surprisingly detailed critiques of her voting.

His key appeal, however, seems to be his independence. Ideologically, Mr Osborn is eclectic. Like any union Democrat, he denounces billionaires and millionaires and special interests, and wants taxes to rise on high-income workers to save Social Security. But he is also highly critical of illegal immigration (which he sees mostly engineered by the boss class to keep wages down). Though he is pro-choice, he stresses he is a Catholic who opposes abortion personally. At times he compares himself to Joe Manchin, the outgoing maverick Democratic-turned-independent senator from West Virginia. His advertisements go further: one of his latest features Osborn voters accusing Ms Fischer of stabbing Mr Trump in the back.

Our poll finds that most Nebraskans expect him to vote with Democrats if he wins. Of those who say this, a large majority are supporting Ms Fischer. But 17% expect him to be a genuine bipartisanvoting roughly evenly. These voters  are overwhelmingly backing Mr Osborn, by 83% to 11%. That explains the approach Ms Fischer has taken in response. In the final weeks of the campaign, a super PAC that supports Republicans in the Senate has poured money into the state to pay for adverts suggesting Mr Osborn has links to Bernie Sanders (the socialist senator from Vermont supported the strike at Kellogg). In an interview, Ms Fischer says that “he is not honest”. Her spokesman says he is a “liberal Democrat in disguise”.

That message, and voters’ partisan reflexes, should be enough to save her. Even so, Mr Osborn has shown that Republicans can be vulnerable even in the reddest of states. His success hints at how Democrats are struggling with a perception they “have lost touch with the working class and look at working class areas in a condescending way”, says Robin Johnson, a political scientist at Monmouth College in Illinois. Perhaps the party should consider standing aside in a few more red states.

Economics

Matt Gaetz vs the ethics committee

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On December 23rd a congressional committee released a lurid 37-page report alleging ethical misconduct by Matt Gaetz, the former maverick member of the House of Representatives who briefly stood as Donald Trump’s nominee for attorney-general. In a different time the investigation’s details about illicit sex and drug use would definitively end Mr Gaetz’s political career, and perhaps it will now. Yet he could soon test how far deviance has been defined down in America’s norm-smashing political era.

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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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