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Dem tax plans include a Brink’s-truck-sized loophole

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Today's Agenda

Habemus Loophole

The process of picking a new pope is confusing to most people, so the Vatican helpfully offers a simple way to let us know when to pay attention: It blows smoke out of a Sistine Chapel chimney. Black smoke means no pope yet. White smoke means habemus papam.

Congress needs a chimney like that for when big bills are cooking because, man, is it annoying to follow until you get actual results. Big, confusing things happened yet again today, mostly centered around negotiations with Co-Presidents Joe Manchin and Kyrsten Sinema over Other President Joe Biden's spending bill. Manchin wants $2 trillion cut from it, and also maybe control of Fed policy? Sinema stuck to her long-held position of ¯\_(ツ)_/¯. 

To get everybody to yes, Karl Smith suggests Dems need a guiding principle as clear and compelling as the 2017 GOP message of "cut taxes for rich people." To be fair, part of the Biden plan involves raising taxes for rich people, which is compelling to many. But Dems may not have made that clear enough. (Or maybe it's too clear?)

Anyway, it helps neither Dem messaging nor Manchin's deficit agita that they're leaving a massive loophole for rich people by doing nothing about cash-balance retirement plans, writes Alexis Leondis. These vast money caverns are sort of like pensions, so they're not on the Dems' tax target list. But they'll keep sheltering more money from the federal coffers if they're left alone. Unlike papal conclaves and congressional negotiations, some things need more daylight. Read the whole thing.

Further Dems-in-Disarray Reading: Biden must name an FCC chair or lose the chance to drive priorities such as widening broadband access. — Tara Lachapelle

The Slow and the Scandalous: Bureaucrat Grift

The regional Fed bank presidents who recently retired to spend more time with their Robinhood accounts claimed their unseemly trades were within the rules. And therein lies the problem, writes Bloomberg's editorial board: The Fed's ethics rules leave wayyyy too much wiggle room for officials to do unseemly trading. The board proposes a simple fix: Don't let them trade! Period! Don't let them own stocks at all, unless they're in some kind of Every Stock Imaginable mutual fund that is untouchable for like 20 years.

Because if you give people the opportunity to do unseemly things, they will do them. A Goldman Sachs compliance officer had all the opportunity in the world for insider trading, in his job of guarding Goldman's Chamber of Secret Deals. And he allegedly jumped all over it, writes Matt Levine, who wonders how many other compliance officers are doing more than daydreaming about it. 

The Goldman guy faces an SEC lawsuit. Chinese paper-pushers with access to tempting money flows face far harsher repercussions, writes Shuli Ren. Xi Jinping's silver crackdown hammer is now coming down on the heads of bureaucrats around the country, who have gotten rich for years from bribes falling off the backs of trucks. Grift pays, until it doesn't.     

Behold the Rise of Big Gambling

A Swiss sports data-mining company called Sportradar just went public, with sports leagues, sports owners and legendary punters such as Michael Jordan and Mark Cuban counting on it to make them even richer. Sports, gambling, the internet and data mining becoming ever more intertwined: What could possibly go wrong? Tim O'Brien wonders. 

Further Sportsball Reading:

Telltale Charts

Big cities are holding back America's jobs recovery because knowledge workers are still staying home, writes Justin Fox

China is having its own energy crisis, in the form of a coal shortage. In the short term this could lead to more coal mining, which is bad. But David Fickling suggests it could also spur more investment in renewables and efficiency, which is good. 

Further Reading

Bed Bath & Beyond's disappointing quarter is a warning for retailers and holiday shoppers alike. — Tara Lachapelle 

Amazon's adorable little robot is a privacy nightmare, despite whatever Amazon intended. — Parmy Olson 

The ghost town of Allensworth, California, is a monument to how racism can crush Black dreams without violence. — Terrance Dean and Trevon Logan 

Despite its consumer nationalism, China can't get enough of Apple phones. — Adam Minter 

Communist Party rebels are becoming a problem for Putin. — Clara Ferreira Marques 

Here's a simple field guide to how to think about Covid risks for the vaccinated. — Allison Schrager 

Sure, you can use that buy-now, pay-later plan, but should you? In many cases, probably not. — Erin Lowry 

ICYMI

The government's not shutting down, at least.

Old and busted: lithium batteries. New hotness: Iron-flow batteries.

"Havana Syndrome" isn't actually a thing.

Kickers

Area drunk man joins search party for self. 

Area squirrel hides walnuts in truck

When listeners pay close attention to stories, their heart rates sync.

Exoplanet may orbit three stars. For God's sake, do not contact it.

Notes:  Please send search parties and complaints to Mark Gongloff at mgongloff1@bloomberg.net.

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