☕ Disrupting the code

It's all about income... [Advertisement] December 05, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Autonomix]( Good morning. Yesterday, Time magazine released the finalists for its Person of the Year (who will be announced tomorrow). We could just tell you who the finalists are, but we’re the Brew after all, so we decided to make a game of it. In Three Headlines and a Lie-style, five of these people are finalists, and one is not—we just included them. Can you guess the odd one out? - Your options: Hollywood strikers, Elon Musk, Jerome Powell, Barbie, Taylor Swift, and Sam Altman The answer is at the bottom… —Cassandra Cassidy, Sam Klebanov, Matty Merritt, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 14,185.49 -0.84% S&P 4,569.78 -0.54% Dow 36,204.44 -0.11% 10-Year 4.260% +0.1 bps Bitcoin $41,678.66 +4.25% Starbucks $97.60 -1.61% *Stock data as of market close, cryptocurrency data as of 4:00am ET. [Here's what these numbers mean.]( - Markets: It’s not easy staying green—hot off five winning weeks in a row, stocks [dipped]( yesterday. Starbucks suffered its 11th consecutive trading day of losses, its worst streak since the coffee chain went public in 1992, as investors worried about slowing sales. The slide has [shaved]( nearly $12 billion off the company’s value, per Bloomberg.  LAW [SCOTUS to weigh in on what income means]( [Image of the Supreme Court]( Getty Images/Saul Loeb In America, two things are certain: taxes and people going to court to pay less of them. The Supreme Court will hear arguments today in Moore v. US, one of the most important tax cases in recent history. The lawsuit, which could cost the US trillions of dollars in revenue, invalidate big swaths of the current [tax system]( and doom the possibility of a billionaire tax, hinges on a couple suing the US over $14,729. How we got here: In 2018, due to changes to the tax law implemented the prior year, Charles and Kathleen Moore paid nearly $15,000 as a one-time repatriation tax on profits held overseas. Now, the Moores are suing the federal government, claiming that they didn’t receive any profit from their investment and, therefore, can’t be taxed. Two lower courts have ruled against them. Now, the Supreme Court will decide the fate of the US tax code as we know it based on what exactly counts as income, specifically, whether or not income has to be “realized,” or received, to be taxed under the 16th Amendment. What this means for the tax code While the Moores contend that the tax they paid was unconstitutional, a lot of longstanding business tax rules would get swept away if they triumph—so many, in fact, that former Republican Speaker of the House Paul Ryan (who helped write the 2017 tax law being challenged) said that if the Moores win, it would “effectively eliminate a third of the tax code.” Experts worry that beyond [upending]( the system and costing the US tax dollars, a decision in favor of the Moores could also open the government to more litigation over the 2017 tax law, which the DOJ estimates would cost the US $340 billion in tax revenue over the next decade. Over in the West Wing, President Biden favors using a [so-called billionaire’s minimum tax]( to help lessen the federal deficit. But if SCOTUS rules for the Moores, any proposed tax on unrealized capital gains—which are the investments that make billionaires, well, billionaires—would be impossible. Looking ahead…the court will likely deliver its decision this summer just as the presidential election campaign heats up.—CC   PRESENTED BY AUTONOMIX [A potential quantum leap in healthcare]( [Autonomix]( [Autonomix]( is pioneering a new frontier in medical treatment. In electrophysiology, acquisitions have topped $900m+ for some companies. That’s one of the reasons why [investing in Autonomix ahead of their planned Nasdaq listing]( could be an interesting opportunity. The startup joins an all-star list of tech giants investing in ways to bridge technology and the human nervous system to solve various health issues. Their patented microchip-based technology is being developed to detect neuronal signals to find nerve bundles that cause pain and other ailments. With $100b+ in potential treatment markets and 100+ patents, Autonomix is attempting to take the world by storm. This could be the final opportunity to invest while they’re still private. [See how you can become an Autonomix shareholder today](. WORLD [Tour de headlines](#) [Ukrainian soldiers with equipment]GENYA SAVILOV/AFP via Getty Images White House warns Ukraine funding is about to run out. In letters to Congressional leaders, the White House’s budget chief, Shalanda Young, [cautioned]( that if additional funding for Ukraine isn’t approved before the year ends, the US cannot continue equipping it to fend off Russia’s invasion. “There is no magical pot of funding available to meet this moment. We are out of money—and nearly out of time,” the letters said. Ukraine aid has become a political flashpoint that factored into the fight over the speaker of the House role, as some Republicans object to providing the nation with more cash or want the funds paired with other budgeting priorities like [border security](. Former US diplomat accused of spying for Cuba. Federal prosecutors have [charged]( Manuel Rocha, a 73-year-old who served as ambassador to Bolivia and worked for years in Latin America in the US foreign service, with “clandestine activity” on Cuba’s behalf going back as far as the beginning of his career in 1981. The government claims Rocha boasted of his spying to an undercover FBI agent, calling the US “the enemy.” Attorney General Merrick Garland said the case “exposes one of the highest-reaching and longest-lasting infiltrations of the United States government by a foreign agent.” SCOTUS looks split on $6 billion Sackler settlement. The Supreme Court appeared torn oral arguments yesterday over the fate of a over the fate of a [settlement]( struck as part of OxyContin-maker Purdue Pharma’s bankruptcy. The deal gives money to victims of the opioid crisis but frees the Purdue-owning Sackler family from future liability—even though they didn’t personally file for [bankruptcy](. Some justices probed the repercussions of throwing out the settlement, which would leave victims back at square one and remove a dealmaking tool that’s been used in bankruptcies for decades. Others considered whether such deals harm the bankruptcy process. A decision is expected by the end of the court’s term in June. TECH [Spotify lays off 1 in 6 employees]( [Spotify CEO Daniel Ek]( Don Emmert/Getty Images Days after virtually placing you in a random college town based on your listening habits, Spotify struck a somber note by saying it will let 1,500 employees go. CEO Daniel Ek [announced]( yesterday that the company is cutting 17% of its workforce in order to hit financial targets. What’s wrong? Ek cited the need to “rightsize” costs amid an economic slowdown and high interest rates. The Swedish music platform had been bleeding cash after going on a hiring spree during the pandemic to pursue aggressive expansion goals. - Though Spotify turned a higher-than-expected profit in Q3 following a subscription price hike in July, the company still lost around $500 million in the first nine months of the year. - It posted strong user growth last quarter, but its acquisition of paying subscribers in North America appears to be slowing down. The latest cuts add to the approximately 800 employees Spotify has already dismissed this year in two waves of layoffs, partly because of investors’ disappointment with its big bet on podcasting. In a sign that Wall Street now prefers profits over growth, Spotify’s stock rose over 7% on news of the job cuts yesterday. Zoom out: The tech industry has shed more than 240,000 jobs so far this year (50% more than last year) as giants like Meta and Alphabet streamlined in response to macroeconomic challenges.—SK   TOGETHER WITH SMARTASSET [SmartAsset]( Kick back & retire. This Princeton grad's startup raised $161m to [help people plan for retirement](. If you're one of the whopping 110 million Americans over age 50—or a wise millennial looking to get ahead—SmartAsset's no-cost tool makes it easy to get matched with vetted financial advisors serving your area. [Try it today](. MEDIA [Cosmo’s crossword will be outrageous]( [Puzzmo logo]( Puzzmo Finally, here’s a story for those of you who skip right to the bottom of the newsletter for the crossword puzzle. Hearst Communications—the owner of publications like Popular Mechanics, Cosmopolitan, and Esquire—announced yesterday that it [acquired]( Puzzmo, an indie virtual puzzle platform. The publisher is playing for your puzzle attention because games are now big business for media companies. Wordle, the only thread holding your high school group chat together, sold itself to the New York Times in 2022 for an undisclosed amount, reportedly in the low seven figures. Even Apple News introduced its own crossword puzzles for subscribers last month. What we know about Hearst’s attempt to give Connections some competition: Puzzmo, which launched in October, was created by game developers Zach Gage and Orta Therox. The site’s homepage offers a selection of classic games like the almighty crossword and new creations like “Really Bad Chess.” The price and terms of the acquisition weren’t disclosed, but Hearst said it will start rolling out Puzzmo’s games to its magazines’ digital subscribers. - Hearst will also license games to other publishers, allowing customization. - Gage and Therox will stay on and develop Puzzmo’s mobile app. We’re not surprised by the final picture…given that Hearst was an early investor in the platform.—MM   GRAB BAG [Key performance indicators](#) [A gold bar and a bitcoin symbol on a phone]Francis Scialabba Stat: Has anyone considered adding canned beans and bunkers to their portfolios? Seems like a good time to be the type of investment people make when they’re worried about the stability of the system: Both [gold]( and [bitcoin]( have been popping off. Spot gold prices briefly hit an all-time high of over $2,100/ounce Sunday night, and yesterday, gold futures hit an intraday record by trading at $2,152, though both later pulled back a bit. Meanwhile, bitcoin surged past $41,000 for the first time since April 2022—putting it 150% up for the year, as hopes grow that [spot]( ETFs making it easier to trade the cryptocurrency will gain regulatory approval soon. Quote: “Etymologically, the term is believed to be a shortened form of the word ‘charisma,’ taken from the middle part of the word, which is an unusual word formation pattern.” Sure, they can dress it up with whatever lexicographical justifications they want, but the folks at the Oxford English Dictionary proved once again that they’re not a regular dictionary, they’re a cool dictionary, by selecting “rizz” as their [Word of the Year](. In addition to Twitch’s favorite term for charm, the other words on the list of finalists—culled by a public vote before the language experts made the winning pick—included “Swiftie,” “prompt,” and “situationship.” Read: A defense of Effective Altruism. ([Astral Codex Ten]( NEWS [What else is brewing](#) - [Israel]( continued its push into southern Gaza yesterday, escalating its attacks and leaving little room for civilians to flee even as it called for evacuations. [A pair of US law professors]( found that bets against Israeli companies spiked before the October 7 attack by Hamas, suggesting that some investors may have known it was coming. - [Mark Zuckerberg]( sold Meta stock last month for the first time since November 2021. Zuck unloaded ~$185 million worth of shares after holding on to all his stock while the company struggled in 2022. - [Richard Branson]( said he won’t be putting more money into his space tourism company, Virgin Galactic, because it has “sufficient” funding, sending its stock plunging. - [Venezuelans]( voted Sunday to claim sovereignty over part of Guyana, intensifying a territorial conflict with their oil-rich neighbor. - [George Santos]( may be out of the House, but he is on Cameo, where his bio reads “former congressional ‘Icon.’” RECS [Tuesday To Do List] Do not try these at home: [Holiday recipes]( dictated by kindergartners. Read: [This app]( helps you access tons of e-books and audiobooks—for free. Watch: Are these expensive kitchen gadgets actually [worth it]( Get hype: The long-awaited trailer for the next Grand Theft Auto is [here](. Learn: Our free course with Excel expert Miss Excel returns one last time this year on December 13 at 12pm ET. Join us and discover how to optimize your spreadsheets and leverage new functions to save hours each week. [Register now](. Cold temps, hot sale: Get the multi-tools, knives, and gear you need for year-round outdoor adventures during [Gerber’s Winter Sale](. These deals end Dec. 14, so [shop now]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: This is certainly the only crossword published in the world today that incorporates Oxford English Dictionary’s Word of the Year. [Play it here](. Shaken or stirred? Today is the [90th anniversary]( of the repeal of Prohibition in the US, so we’re going to give you a quiz on cocktails. We’ll give you a cocktail, and you have to determine whether it is traditionally shaken or stirred. No, we’re not going to throw any curveballs like James Bond. - Daiquiri - Martini - Manhattan - Negroni - Cosmopolitan - Whiskey sour SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER - Shaken - Stirred (even though 007 likes his shaken, the drink is traditionally stirred) - Stirred - Stirred - Shaken - Shaken The [rule of thumb]( If a cocktail has citrus, egg, cream, or an opaque ingredient, then you shake it, according to cocktail consultant Natasha David. Time Magazine pop quiz Elon Musk is not a finalist (he won in 2021). Word of the Day Today’s Word of the Day is: lexicographical, meaning “relating to the principles and practices of dictionary-making.” Thanks to Marianne Pannelli from Vermont for the wordy suggestion. Submit another [Word of the Day here](. ✢ A Note From Autonomix This is a paid advertisement for Autonomix’s Regulation A+ Offering. Please read the offering circular at [invest.autonomix.com/](. Written by [Neal Freyman]( [Cassandra Cassidy]( Sam Klebanov, [Matty Merritt]( and [Abigail Rubenstein]( Was this email forwarded to you? Sign up [here](. Take The Brew to work - Marketers: [Marketing Brew]( - Corporate: [CFO Brew](  [HR Brew]( - Tech: [IT Brew](  [Tech Brew]( - Retailers: [Retail Brew]( - Healthcare: [Healthcare Brew]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2023 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011