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Why the Trump campaign is spending heavily on ads on trans issues

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FEW THINGS get Donald Trump more excited than talking about transgender issues. As he delivers his closing argument to America, barely a speech or ad goes by without a mention of “illegal aliens” getting “taxpayer-funded surgery” or biological males competing in women’s sports. Most of it is inflammatory and hateful. Some of it is clearly untrue, such as his claims that children are returning from school with sex changes, or his running-mate, J.D. Vance, suggesting this week that teens are “becoming trans” to get into Ivy League colleges. But some of it is not.

When asked recently how he would address the sports situation, Mr Trump said this was “such an easy question”: he would simply ban it. That brought loud cheers from the all-female Fox audience. It is a message Republicans are emphasising up and down the ballot. Recent polling by YouGov shows that Trump supporters have higher awareness of the former president’s policy on women’s sports than of his policy on abortion. In his final days of campaigning, Mr Trump is spending more on ads that attack Kamala Harris’s support for transgender rights than on any other subject, according to Politico.

Chart: The Economist

It is easy to see why. Most Americans favour basic protections for transgender people—against hate speech, for example, or discrimination at work—and believe transgender people should be treated with respect (see chart). Yet most agree with Mr Trump that some policies and practices, however rare, have gone too far. Only 19% of Americans, including 33% of Democrats, support the idea of trans athletes playing on the sports team that matches their gender identity rather than their biological sex, according to YouGov. Indeed 25 states now require transgender students to participate in sports based on their natal sex, for reasons of both safety and fairness. Only 30% of Americans believe prisons should be required to house transgender inmates according to their gender identity. And just 19% believe transgender youths should have access to puberty-blocking medication (27% are unsure and 54% are opposed).

All of these policies are associated with Democrats, either because they supported them in the past or because they have failed to acknowledge some of the practical tensions that come with slogans like “transwomen are women”. During her presidential campaign, Ms Harris’s strategy has been to avoid the T-word at all costs, pivoting instead to the safer ground of same-sex marriage or women’s reproductive rights. Whereas the Republican Party’s convention was full of (inflammatory) references to threats posed by trans people, including some remarks by Mr Trump’s two eldest sons, only two speakers at the Democratic convention mentioned trans people, neither of them in a primetime slot.

Ms Harris’s silence has left space for Mr Trump to fill with footage of her previous commitments (eg, to trans prisoners being able to get gender-affirming treatments) and with claims that, as a popular Republican ad concludes, “Crazy liberal Kamala is for they/them. President Trump is for you.” It seems to be resonating. According to new polling by The Economist/YouGov, despite her vow of silence, some 36% of Americans think Ms Harris talks about trans issues too much, compared with 23% who say the same about Mr Trump.

But will it matter?

Republicans hope that outrage over what Mr Trump calls “trans insanity” will be their version of what abortion has done for Democrats, but there is a crucial difference. Whereas many Americans say abortion is a leading reason to vote, few say the same about trans issues. Polling shows that social issues in general feature low on Trump voters’ priority list, and within social issues transgender health care (albeit an imperfect proxy) sits at the very bottom. Mr Trump’s lines clearly play well with his base, and are a sure-fire way of getting a rally audience to its feet, but there is little evidence that this specific issue will recruit many new voters (though Republican strategists claim it can help swing undecided voters, who could prove crucial).

Only Ms Harris knows whether her recent silence is just a ruse until she is elected or whether she has genuinely moderated her stance. If elected, one opportunity to show herself as more in touch with the electorate will come when her administration deals with the most controversial part of Title IX anti-discrimination protections that the Biden administration kicked down the road: how to deal with women’s sports. By then she might be ready to agree with her opponent on one matter: it is an easy question.

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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