☕ Record rents

The IRS is getting a huge funding increase... August 12, 2022 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Fidelity]( Good morning. Our petition calling on Kylie Jenner to post about how Gmail needs to scrap its recent layout change is nearing 14 signatures. Join the campaign! —Max Knoblauch, Neal Freyman, Abby Rubenstein, Matty Merritt MARKETS Nasdaq 12,779.91 -0.58% S&P 4,207.27 -0.07% Dow 33,336.67 +0.08% 10-Year 2.891% +0.4 bps Bitcoin $24,199.99 +1.25% Ether $1,901.26 +3.50% *Stock data as of market close, cryptocurrency data as of 8:00pm ET. [Here's what these numbers mean.]( - Markets: Stocks were a [mixed bag]( on a day when another inflation report—the producer price index—showed price growth cooling off. Over in crypto, ether, the world’s second-largest cryptocurrency, hit a two-month high as excitement builds for a software upgrade coming to the Ethereum blockchain next month. GOVERNMENT [What will the IRS do with $80 billion?]( [An old IRS computer](Francis Scialabba The House of Representatives is expected to pass the Inflation Reduction Act today, a move that would send the massive $430 billion climate, healthcare, and tax bill to President Biden’s desk after months of negotiations. One piece of the legislation causing a stir: the nearly [$80 billion]( in funding dedicated to the IRS over the next 10 years. That hefty chunk of change reportedly includes plans for the agency to hire around 87,000 full-time workers—conjuring up images of an ancient Roman army-sized new employee orientation. It also includes $45.6 billion dedicated to “enforcement.” That’s generated criticism from some Republicans about what all this money will mean for taxpayers making less than $75,000 per year, and their likelihood of being audited. In response, both Treasury Secretary Janet Yellen and Trump-appointed IRS Commissioner Charles Rettig have been clear that new funds would not increase the audit rates on small businesses or households making less than $400,000. So where will the money go? Well, a look into the IRS’s current process will probably give you some ideas. It’s stretched really thin Last year, the IRS received 230 million phone calls from taxpayers. Since the agency employs ~15,000 workers to pick up the phones, each is tasked with answering about 15,300 calls. Only 11% of the frustrated taxpayers on the other end actually connected with another human. In fact, the agency is operating at 1973 staffing levels, despite millions more returns to process and new duties to perform, like handling child tax credits. Also bad: More than half of the IRS’s staff, about 50,000 employees, is eligible to retire before 2030. Suffice it to say, they could use some fresh faces. Another cause for concern is IT. The agency is still very much in the analog era, relying on a labyrinth of paper files and Windows XP to manage its workload, according to an eye-popping piece in the [Washington Post](. As of July 29, the agency has a backlog of 10.2 million individual returns. Zoom out: If passed, the funding increase is projected to bring in $203.7 billion in revenue through 2031, and Treasury officials say improving systems will help the agency crack down on tax cheats.—MK �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=What%20will%20the%20IRS%20do%20with%20%2480%20billion%3F%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2FIRS-funding-80-billion-inflation-reduction-act%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A TOGETHER WITH FIDELITY [Bringing sustainable investing into focus]( [Fidelity]( There are a lot of factors that go into the choices you make for your portfolio. And finding investments that align with what matters most to you isn’t always easy. [Fidelity Sustainable Investing]( uses proprietary research and investing principles to provide exposure to the sustainable leaders of today and tomorrow and help fill a long-term need in your portfolio. These companies are successful because of their commitment to sustainability, not in spite of it. And we’re not just talking about the environment, though that’s a clear priority. Fidelity looks into whether companies deliver on social responsibility and corporate governance, too. Talk about the whole package. [Learn more]( about how Fidelity can help you get clarity on sustainable investing. �  �  �  WORLD [Tour de headlines](#) [Attorney General Garland]Anna Moneymaker/Getty Images The DOJ wants Mar-a-Lago search warrant unsealed. The government has [asked]( a judge to let the public see the FBI’s warrant to search Donald Trump’s Florida home, Attorney General Merrick Garland said yesterday. Garland said he personally approved the decision to seek a warrant, which came as part of an investigation into the former president’s handling of classified materials. Speaking hours after an armed man tried to break into the FBI’s Cincinnati office, Garland also condemned “unfounded attacks on the professionalism” of FBI and DOJ staff. The CDC says Covid is less of a threat. In [new Covid guidelines]( released yesterday, the public health agency said that in most settings, adults and children do not need to quarantine after getting exposed to Covid, meaning that students can remain in classrooms even if their cubby buddy tests positive. The reason for relaxing the rules? Because of virus-fighting tools and population immunity, Covid now presents a lower risk of hospitalization and death than in the early days of the pandemic, the CDC said. The NBA retires No. 6. No team in the NBA can issue a No. 6 jersey after the NBA [retired it]( in honor of the late Bill Russell, who wore No. 6 during his remarkable 13-year career. (Players who are currently wearing No. 6, like LeBron James, will be grandfathered in.) Russell joins an exclusive club of athletes whose jerseys have been retired leaguewide. MLB retired Jackie Robinson’s No. 42 jersey, while the NHL retired Wayne Gretzky’s No. 99. HOUSING [New York, I love you but your rents are bringing me down]( [Manhattan apartments](Spencer Platt/Getty Images If you see a 300-person line in NYC these days, it could be for one of two reasons: 1) John Quiñones is What Would You Do?-ing someone or 2) there’s an open house. Manhattan apartment rents [hit a record]( for the sixth straight month in July, clocking in at a median of $4,050, according to a report from Miller Samuel Inc. and Douglas Elliman Real Estate. That’s a 25% jump from a year earlier. But why? The Yankees aren’t even good anymore. Well, people are still clamoring to live in NYC, the summer is peak rental season, and landlords are jacking up prices to recoup the “Covid deals” they offered tenants back when everyone expected the pandemic to reduce NYC to rubble. But as much as New Yorkers want to make this story all about New York, it’s not—rental costs across the US are [climbing]( at their fastest pace in 30+ years. There are many factors driving rents higher, but for one, consider this number: 5.22%. That’s the rate for a 30-year fixed-rate mortgage, up from 2.87% this time last year. People who are being priced out of the homebuying market are eyeing rentals, boosting already high demand for a thin supply of properties. Bottom line: Post-Covid rent hikes have put city living out of reach for many. More than one-third of NYC rental inventory in Q2 likely came from tenants who couldn’t afford the new rent, StreetEasy said.—NF �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=New%20York%2C%20I%20love%20you%20but%20your%20rents%20are%20bringing%20me%20down%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F08%2F11%2Fmanhattan-rents-hit-record-high-for-sixth-straight-month%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A POLITICS [Campaign emails are joining us in the inbox]( [Political email going underneath a smartphone with gmail open on the screen.](Francis Scialabba Pelosi-heads, rejoice: Poorly timed donation pleas will no longer be lost to the depths of your junk folder. Over users’ objections, the Federal Election Commission (FEC) yesterday [approved]( a Google pilot program that will keep political campaign emails from immediately being marked as spam. The green light comes just in time for the midterms. Google sought the FEC’s blessing in June after the tech company caught heat from a study that found Gmail’s spam algorithm flagged more fundraising emails from Republicans than Democrats. - Reaching the inbox is vital for Republicans, whose total online donations across all federal campaigns dropped more than 12% in Q2 this year from Q1, according to analysis by the NYT. Meanwhile Democratic donations ballooned 21% in the same time period. Big picture: Each email will have a message from Google alerting you of its politically affiliated sender and will display a prominent option to opt out, so get ready to hit that unsubscribe button like your sanity depends on it. Total political ad spending could reach a near-record-breaking [$9.7 billion]( for the upcoming midterms. That’s more than the $9 billion spent on the 2020 election cycle, when the presidency was up for grabs.—MM �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Campaign%20emails%20are%20joining%20us%20in%20the%20inbox%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2Fpoliticians-emails-will-no-longer-go-directly-to-your-gmail-spam-folder%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A GRAB BAG [Key performance indicators](#) [Peggy from Mad Men quitting her job]Mad Men/AMC Stat: The Great Resignation was truly great if you left one job and picked up another. In the 12 months through July, people who switched their jobs upped their wages by a [record 6.7%](, according to the Federal Reserve Bank of Atlanta. That wage increase is two whole percentage points higher than people who stayed in their roles. Quote: “It may be funny to you, motherf---er, but it’s not funny to me.” Beto O’Rourke, the Democratic gubernatorial candidate in Texas, was [speaking]( at a town hall about how easily the gunman in the Uvalde school shooting obtained an AR-15-style rifle when someone in the audience laughed—prompting that rebuke from O’Rourke. The [video]( of the incident quickly drew millions of views across social media. Read: The reluctant prophet of effective altruism. ([New Yorker]() TOGETHER WITH VINCERO [Vincero]( Don't Believe Me Just Watch. Elevate your everyday carry with Vincero’s ethically crafted, premium lifestyle accessories. Everything they sell, from watches to sunglasses to jewelry, is designed in San Diego and made sustainably in small batches. They’re celebrating their 8th anniversary with up to 30% off sitewide. [Shop now and take advantage of their largest sale of the year.]( �  �  �  QUIZ [Quiz of dreams]( [Weekly news quiz]( The feeling of getting a 5/5 on the Brew’s Weekly News Quiz has been compared to ordering a dish at a restaurant and the server replying, “Excellent choice.” It’s that satisfying. [Ace the quiz](. WHAT ELSE IS BREWING - [McDonald’s]( is preparing to reopen locations in Ukraine after closing them following Russia’s invasion. - [Major publishers]( are buying ads in mobile games like Subway Surfers to juice traffic. It’s considered a deceptive practice in the industry. - [Amazon]( is expanding its palm-scanning payment tech to more than 65 Whole Foods locations in California. - [Activist investor ValueAct]( has taken a 6.7% stake in the New York Times, and is pushing the company to roll out more bundles exclusively for subscribers. BREW'S BETS It’s almost the Little League World Series: So get ready for a bunch of cute moments, [like this one]( and [this one](. Brew’s Bookshelf: - Jennette McCurdy, former Nickelodeon child star, has a new [memoir]( out this week that’s so good/heartbreaking it’s already on backorder. - And Calvin Kasulke’s [novel]( told through Slack messages is absolutely absurd—in the best way. GAMES [The puzzle section](#) Jigsaw: New game alert. Cruise into the weekend with Jigsaw, a game that requires you to put every piece in its right place. [Play it here](. Friday puzzle Thanks to our puzzle creator Mary Tobler, we discovered an excellent Twitter account (based on a puzzle book) called [@MinistryofQuiz](. Here’s one of their recent puzzles. Given these five clues… - Up - Down - You - Cry - Goodbye - ? What is No. 6? [Rent the Runway post-pandemic: thriving or dying?]( [Rent the Runway post-pandemic: thriving or dying?]( The Business Casual episode with Jenn Hyman, CEO and co-founder of Rent the Runway, explores how her company emerged from the pandemic as a broader and stronger business, while making big changes to its long-term profitability. [Listen]( or [watch]( here. Check out more from the Brew: Are you scared of retirement or holding back on saving due to the state of the world? Don’t worry—we’re here to ask the questions you don’t want to voice out loud. [Watch here](. 🗯 Ever had to convince someone that their idea stinks and yours is way better? Learn the art of influence and persuasion in the eight-week [Leadership Accelerator](. ANSWER “You.” They’re the last words of each line of the chorus of Rick Astley’s “Never Gonna Give You Up.” Does this count as being Rickrolled? ✢ A Note From Fidelity Investing involves risk, including risk of loss. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 1041366.1.0 � � � � � Written by [Max Knoblauch](, [Neal Freyman](, [Matty Merritt](, and [Abigail Rubenstein]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW? Accelerate Your Career with our Courses → - [Business Essentials Accelerator](: Become a better communicator, operator, and innovator. - [Leadership Accelerator](: Grow your team, grow yourself, grow your impact. - [Business Analytics Accelerator](: Understand the business of numbers and make better decisions with data. [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. 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