Trump's Tax Plan

Wednesday, May 21st, 2025

World Events — Congress Should Vote Down Trump’s Tax Cut

Bloomberg

Congress should reject President Donald Trump’s latest tax cut proposal, as passing it would dangerously inflate the national debt and risk triggering a destabilizing collision with the bond markets. The bill, which aims to extend the 2017 tax cuts and add new, deficit-financed reductions, is projected by nonpartisan analysts to increase the national debt by $3 trillion to $5 trillion over the next decade, at a time when federal deficits are already abnormally high for a period of full employment and peace. This fiscal recklessness has already contributed to Moody’s downgrading the U.S. credit rating, and yields on 30-year Treasuries have surged above 5%—a signal that investors are demanding higher compensation for lending to a government whose debt trajectory appears unsustainable. While proponents hope that tariffs and economic growth will offset the fiscal hole, leading economists warn that the negative impact of tariffs will more than cancel out any growth from tax cuts, leaving the U.S. with larger deficits and higher borrowing costs. If Congress fails to act responsibly, it risks inviting a sudden and painful reckoning in financial markets, undermining America’s economic stability and global standing.

Tech — Apple Needs the AI Help It Is Seeking 

Bloomberg

Apple is urgently opening up its core artificial intelligence models to outside developers in a bid to revitalize its lagging AI efforts and catch up with rivals like Google and OpenAI. After a year marked by underwhelming AI features, delays, and missed deadlines—most notably with Siri and Apple Intelligence—Apple will unveil new software development kits at its June 9 Worldwide Developers Conference, allowing third-party developers to build directly on its on-device AI models. This move echoes the strategy that made the App Store a success, betting that external developers can create compelling, innovative AI-powered apps that Apple itself has struggled to deliver. By initially granting access only to smaller, privacy-focused on-device models, Apple hopes to spark a wave of new applications, drive user engagement, and regain momentum in the AI race, even as it remains cautious about exposing its most powerful cloud-based models and sensitive user data. The success of this strategy—and Apple’s future AI relevance—now hinges on whether it can persuade developers to embrace its platform and deliver the “killer app” that has so far eluded its own teams.

Business — Toyota Plunges Into Hybrid 

Bloomberg

Toyota is making a bold shift by discontinuing the gas-only version of its best-selling RAV4 in the U.S., moving the entire lineup to hybrid and plug-in hybrid powertrains for the 2026 model year. This transition follows the company's recent all-hybrid Camry launch and reflects Toyota's confidence in surging hybrid demand, with hybrids already making up nearly half of RAV4 sales and electrified models accounting for over 43% of Toyota’s U.S. volume. The new RAV4 features Toyota’s latest hybrid technology, improved performance, and fresh design updates, while offering both standard hybrid and more powerful plug-in hybrid options, including a PHEV with up to 320 horsepower. However, the move comes amid uncertainty over U.S. tariffs on imported vehicles, which could impact pricing since more than 60% of RAV4s sold in the U.S. are imported from Canada or Japan. Despite these headwinds, Toyota’s all-hybrid RAV4 strategy underscores its commitment to a multipronged electrification approach, leveraging its hybrid leadership as the broader market for fully electric vehicles cools.

Society —  Reimagining Search 

FT

Google has launched “AI Mode,” a major overhaul of its search engine that transforms the experience into a conversational, chatbot-like interface powered by its latest Gemini AI model. Now rolling out to all U.S. users, AI Mode allows people to ask complex, multi-part questions, receive in-depth and cited answers, and engage in follow-up queries, moving far beyond the traditional list of links. This new mode leverages advanced techniques to break down queries, synthesize information from across the web, and even integrate with users’ personal Google apps for more contextual responses. Google is also introducing features like deep research, shopping assistants with virtual try-on, and “agentic” tools that can perform tasks such as booking trips or compiling reports. The shift comes as Google seeks to reassert AI leadership amid rising competition from OpenAI and Anthropic, and while the company still dominates search with 8.5 billion daily queries, it is betting that this “total reimagining of search” will keep users engaged as the internet moves toward more intelligent, interactive information retrieval.

The Daily Spark 

Song Recommendation — Living My Best Life (Jessie J)

Quote of the Day 

“What we play is life.” ― Louis Armstrong