PRESENTED BY:

Good morning readers. We don’t want to alarm you or anything, but we’re in the last week of June. Which means there are roughly 8 more weeks of summer left. Maybe less. So, if you've been putting off those grand summer plans, it's time to trade in the Netflix binge for some beachside lounging, swap the air conditioning for a breath of fresh air, and finally dust off that grill for a barbecue bash. Plus, now’s the only time you can justify ice cream for breakfast. We won’t judge if you won’t.

Let’s jump into today’s storylines.

In today’s digest:

• The Supreme Court’s latest decision has investors on their toes

• Headline Hustle: Regulators hit big banks for weakness in their resolution plans, Supreme Court rules domestic abusers can’t possess guns, U.S. approves first menthol-flavored vape

• How quiet vacationing is taking off as of late

• The Week Ahead: What to Expect

• Pulse Points: What’s Trending

PERSONAL FINANCE

Supreme Court sidesteps wealth tax debate, leaves investors hanging

In a verdict that's less about closure and more about caution, the Supreme Court has thrown a 'gigantic yellow light' on the future of taxation, especially concerning foreign investments and the contentious idea of a wealth tax. On Thursday, the court decided on Moore v. United States, focusing narrowly on a specific tax gripe rather than the broader, thornier issue of taxing unrealized gains.

Here’s the sitch

The Moore case centered on a Washington state couple hit with a "mandatory repatriation tax" after their investment in an Indian company yielded earnings but no dividends. This one-time tax, part of the 2017 Republican tax overhaul, was meant to offset other tax breaks by taxing profits parked overseas.

While the court upheld the tax against the Moores, the justices meticulously avoided broader discussions on the constitutionality of a wealth tax, leaving many to wonder about the implications for future policies targeting unrealized gains—assets that increase in value without being sold.

Everybody’s weighing in on the decision.

• Justice Brett Kavanaugh emphasized the decision’s limited scope, stating it should not be interpreted as a green light for Congress to double-tax entities and their shareholders. He emphasized the opinion only addressed the “precise and narrow question” of the Moore’s case, nothing more.

• Tax experts on the other hand, see the decision as sidestepping strong constitutional arguments against wealth taxes, preserving these issues for another day. They warn of the implications for domestic stockholders, noting the decision leaves a murky picture of what’s permissible in taxing corporate gains.

Zoom out: As the dust settles, investors and policymakers alike are left navigating a fog of uncertainty. With the Supreme Court's decision, the conversation around wealth taxes remains open-ended, a 'gigantic yellow light' indeed, signaling caution without stopping the traffic.

PRESENTED BY GORGI

It's official. We've found the perfect energy drink.

Meet GORGIE. Our new go-to for clean, long-lasting energy. With only 5 calories, 150mg of green tea caffeine and B vitamins, biotin, and L-theanine, it’s not just delicious, but good for you as well. You might even like it better than your morning coffee.

IN THE KNOW

Headline Hustle

🏦 Regulators hit the biggest banks over weakness in their ‘living wills’. Banking regulators disclosed Friday that four of the eight largest U.S. lenders—Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America—had weaknesses in their 2023 resolution plans, or "living wills." The Federal Reserve and the Federal Deposit Insurance Corp. found fault with these banks' strategies for unwinding their massive derivatives portfolios during distress or failure. Citigroup's plan had a "deficiency," while the others had "shortcomings." Citigroup acknowledged the issues and committed to addressing them. JPMorgan, Goldman, and Bank of America declined to comment.

🧑‍⚖️ Supreme Court votes domestic abusers can’t possess guns. The Supreme Court, in an 8-1 decision, upheld a federal law preventing domestic abusers from possessing guns, affirming the Second Amendment permits temporarily disarming individuals posing threats. Chief Justice Roberts emphasized that regulations need not strictly mirror 18th-century laws but must align with the principle of preventing harm. The ruling, reversing a lower court decision, is seen as a significant stance on modern gun regulations, potentially aiding in upholding laws like background checks and red-flag regulations.

🌿 U.S. approves first menthol-flavored vapes. Four menthol-flavored e-cigarettes by Altria Group's NJOY brand have become the first menthol vaping devices to receive U.S. authorization from federal regulators. The FDA cleared these products after NJOY demonstrated they helped more adult smokers switch from cigarettes compared to their tobacco-flavored counterparts. This decision marks a significant milestone for Altria, which has faced numerous setbacks in the vaping market. Marketing restrictions will be implemented to prevent youth access. The FDA had previously banned many other menthol vaping products due to their appeal to minors.

CAREERS

When escaping the office isn't quite escaping work

Who hasn't padded a résumé or faked a dentist appointment to sneak out of work early? Today's workers are taking it to the next level with "quiet vacationing"—a trend redefining the concept of out of office in the age of remote work.

What’s ‘quiet vacationing’?

Quiet vacationing doesn't have a textbook definition, but it generally involves employees sneaking off to far-flung destinations or simply keeping up appearances of productivity from the comfort of their homes (or a sandy beach).

But beneath the surface of this seemingly sweet setup is a bitter aftertaste. The need to hide a getaway whispers of a deeper issue in American work culture—workers feel so caged by expectations that they can't even be transparent about needing downtime.

According to a recent Harris Poll survey, a staggering 28% of workers confessed to taking stealth vacations, with Millennials leading the pack at 37%. Despite high satisfaction with official PTO policies, 80% of workers aren't using all their vacation days, often due to a perceived need to always be available or drowning in too much work.

What's concerning is the normalization of this sneakiness.

• It reflects a culture where overwork is not just expected but rewarded, and where transparency about one's needs is often penalized.

• Malissa Clark from the University of Georgia observes that such environments may inadvertently foster an 'always-on' mentality, detrimental to both individuals and businesses.

Symptoms of a larger, systemic issue: We live in a society that equates busyness with dedication and views taking breaks as a sign of weakness. While technology has granted us the liberty to work from almost anywhere, it also shackles us with the expectation of constant availability.

WEEK AHEAD

What to expect

• First U.S. presidential debate is this Thursday: The first debate of the US presidential election on Thursday will see President Joe Biden and former president Donald Trump duke it out on stage. These debates are likely to produce TikTok-able moments that will capture the attention of American voters, with uncertainty around who has the most to gain or lose.

• UK general election debate is also this week: With dire poll numbers for the Conservative party and some showing Prime Minister Rishi Sunak might lose his seat, it's uncertain if this head-to-head will influence voter opinions before the campaign's final week.

• Earnings this week will focus on retail: H&M, Walgreens Boots Alliance, Halfords, Nike, and FedEx all report their earnings this week.

What else is happening…

• In France, the first round of President Emmanuel Macron's hastily called parliamentary election will take place this Sunday, with polls indicating a strong performance by the far-right Rassemblement National.

• The Florida Panthers and Edmonton Oilers square off in game 7 of the Stanley Cup final tonight. The Oilers have stormed back from being down 3-0 to tie the series. If they win game 7, they’ll be the first team to do so since the Maple Leafs did it in 1943.

• Final month before the opening ceremony of the Paris Olympics.

• The 28th anniversary of the Euro '96 semi-final between England and Germany at Wembley Stadium is on Wednesday.

SNIPPETS

Pulse Points

• Microsoft-backed OpenAI announced on Friday that it has acquired search and database analytics firm Rockset for an undisclosed sum.

• Amazon announced last week it has removed 95% of plastic air pillows from its North American packaging, replacing them with paper fillers made from 100% recycled content.

• French luxury conglomerate LVMH, owned by Europe's richest man Bernard Arnault, announced Thursday that it has acquired a majority stake in Chez L’ami Louis, a 100-year-old Parisian bistro described by LVMH as an “authentic Parisian gem.”

• Melinda French Gates announced Thursday in an op-ed that she will vote for President Joe Biden in the 2024 presidential election, stating that “the stakes for women and families couldn’t be higher.”

Was this email forwarded to you? Feel free to sign up using the following link: https://www.pulseofprogress.info/

⚡️ Want to feature in this newsletter?

Elevate your brand's visibility to over 7,000+ decision makers by partnering with Pulse of Progress and seize the chance to connect with our rapidly expanding, highly engaged audience! Reach out for more details.