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This campaign is also demonstrating America’s democratic vitality

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Masih Alinejad, an Iranian-American journalist and human-rights activist, likes to tell a story about walking through New York after appearing on various cable-TV networks to crusade against Iran’s oppression of women. Ms Alinejad, who has a nimbus of spiralling curls that makes her easy to recognise, describes being stopped by people who wanted to voice their support. But on one block a person pleaded with her not to appear again on Fox News (“They are miserable”) while on the next a person urged her to stop going on CNN (“They are using you”).

“I was like, ‘Wow, wow—guys, having Fox News and CNN is the beauty of America,’” Ms Alinejad said, speaking at the Global Free Speech Summit at Vanderbilt University in Nashville, Tennessee, on October 18th, just days before prosecutors in Manhattan would charge four men, including a senior official in the Islamic Revolutionary Guard Corps of Iran, with plotting to kill her in 2022. Americans who wanted to cancel either network and watch only one, Ms Alinejad continued, might consider life in North Korea or Iran, where “You only see people repeating the narrative of the government, and you only see your family members and your heroes doing false confession in order to survive.”

That is a low bar. However, it is a fair point, and a chastening one as the climax approaches of an election campaign that has members of both parties despairing about their democracy. American news organisations may not always make the best use of their freedom, yet their very freedom to misuse their freedom is a measure of what keeps America great. In Ms Alinejad’s spirit, it seems worth considering other ways in which this much maligned campaign is revealing the vitality of America’s democracy—along with the pernicious effects of negative partisanship explored in our Essay this week.

Start with what can be a basic vital sign: participation. A generation ago, when about half of eligible voters might turn up at the polls, America’s mandarins were sounding warnings about voter apathy and assembling commissions to overcome it. But two-thirds of eligible voters cast ballots in 2020, the highest proportion since 1900, and voting in the midterms of 2018 and 2022 reached levels not seen in decades. This autumn some states with early voting are setting records for participation. (A related sign of vitality is that, contrary to worries that threats and scorn directed at election officials would scare off poll workers, state offices are reporting ample levels of volunteers and paid staff.)

Along with surging registration of new voters, higher turnout is changing the composition of the electorate in unpredictable ways. This shift appears to be settling dumb debates within both parties in recent years over whether turning out partisans matters far more than persuading independent-minded voters to support your candidate. In a changing yet evenly divided electorate, both turnout and persuasion are essential, and the campaigns have been putting this rather obvious insight into practice. More competition for more voters can only benefit the country.

Indeed, one cause or effect, or both, of these efforts at persuasion is that America is becoming less polarised by race. Both parties have discarded facile assumptions that black or Latino voters are monolithic on matters such as illegal immigration or policing. The left’s conviction that Donald Trump was succeeding solely by catering to white people began to fray after the 2020 election, when he made gains among Latino, Asian and black voters. He is courting them more vigorously in this campaign. That outreach has clashed at times with his core emphasis, reaching disaffected young men, as when a comedian popular with that group managed the rare feat of upstaging Mr Trump by telling racist jokes before he spoke at Madison Square Garden on October 27th.

Kamala Harris has been trying to reverse Democratic erosion among young non-white Americans while also trying to reach beyond her party’s base of voters with college degrees. Rather than repeating Joe Biden’s promises to erase college-loan debt, she is emphasising that she will create jobs that do not require a college education. “We understand a college degree is not the only measure of whether a worker has skills and experience to get the job done,” she declared at a rally in Flint, Michigan, in early October.

Ms Harris has also been bidding to win back rural voters Democrats have all but ignored in recent campaigns, while Mr Trump has been campaigning in big cities—and both of them appear to be having some success. Ms Harris has campaigned in solidly red Texas while Mr Trump has campaigned in such Democratic strongholds as California and New York. Both have campaigned with members of the opposing party, though Mr Trump’s few Democrats, such as Robert Kennedy junior, are party misfits of longer standing than Ms Harris’s Republicans, some of whom once worked for Mr Trump.

Use it or lose it

The imperative to attract less partisan voters has also compelled both candidates to moderate some of their more extreme views. Ms Harris has backed off leftist positions she espoused in 2019. Mr Trump, who has moved his party towards the centre on matters such as entitlements and gay rights, has been clumsily trying to moderate his stance on reproductive freedoms after a backlash he clearly did not expect to the Supreme Court’s decision in 2022 to eliminate the constitutional right to abortion.

Far more than other protest movements this century, the grassroots movement to restore abortion rights is proving durable and effective. It has won in all six states that have had plebiscites on abortion rights so far, including such conservative ones as Kansas and Kentucky. Americans, it seems, have not forgotten how to put their democracy to use in defence of their liberty.

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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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