(NEW YORK) — Some Americans may have lower tax bills when they file for 2023 after the IRS adjusted tax brackets and increased deductions to counter the soaring price tags on groceries and other daily staples.
Tax brackets will increase by about 7% in an attempt to counter rapid inflation, the IRS said in a statement on Tuesday.
Those updated brackets could mean that Americans whose wages haven’t kept pace with inflation will land in lower brackets and owe relatively less when they file.
Consumer prices rose by about 8.2% in September from the year-earlier period, with grocery prices spiking 13%, the Bureau of Labor Statistics said. Increases in pay haven’t kept pace for many workers, with average hourly wages decreasing 3% year over year in September, when seasonally adjusted, according to the bureau’s statistics.
About 60 tax provisions will be updated to counter those rising costs, including standard deductions for single and married filers, the IRS said.
The standard deduction for married couples will increase to $27,700, up $1,800 from the previous year. For single filers, it will be $13,850, up $900, the IRS said. Those increases mark an acceleration from the previous year’s standard deduction hikes, which were $800 for married filers and $400 for single ones.
Heads of household will see an increase of $1,400 to $20,800 for their standard deduction, the IRS said.
Marginal tax rates are being adjusted for inflation, with the lowest tax rate of 10% now applying to single filers making $11,000 or less per year, up from $10,275. Couples would need to make less than $22,000, up from $20,550.
The top tax rate will remain unchanged at 37%, but will now be applied to single filers earning more than $578,125 and couples making over $693,750. That highest rate had been applied to filers making $539,900 or couples making $647,850 in the previous tax year, the IRS said.
The monthly limit for qualified transportation and parking benefits will climb to $300, up $20. Gift exclusions will jump $1,000 to $17,000.
(NEW YORK) — McDonald’s is officially in the Halloween spirit with the return of it’s iconic and festive Happy Meal pails.
After some hype online and social media about the nostalgic Halloween buckets, the McBoo, McPunk’n and McGoblin are available starting Tuesday in the U.S. for a limited time.
McDonald’s confirmed the news in a press release earlier this month that it would bring back the reusable, collectible pails that first came on the scene in 1986.
The retro Happy Meal is available from Oct. 18 through Halloween at participating McDonald’s restaurants nationwide while supplies last.
(NEW YORK) — Microsoft announced layoffs on Monday for nearly 1,000 employees worldwide, the company confirmed to ABC News.
The move marks the latest sign of weakness among some of the largest U.S. tech companies amid persistent inflation, recession fears and stock market woes.
This year, shares of Microsoft have fallen nearly 30%. The tech-heavy Nasdaq Composite Index, meanwhile, has fallen more than 31%.
The job cuts announced by Microsoft on Monday came across different positions, levels and geographic regions, Microsoft confirmed.
“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” the company told ABC News in a statement. “We will continue to invest in our business and hire in key growth areas in the year ahead.”
Axios first reported the layoffs.
While significant, the job losses announced on Monday affected less than one half of one percent of the company’s 221,000 employees worldwide.
The cuts followed a round of layoffs in July that impacted less than 1% of the company’s workforce.
The most recent quarterly earnings released by Microsoft, in July, fell short of investor expectations, recording $51.9 billion in revenue compared with an expected $52.4 billion, according to Bloomberg.
Prior to this year, Microsoft saw blockbuster growth during the pandemic, as consumers and businesses turned to its products amid a spike in time spent at home.
Between March 2020 and December 2021, Microsoft’s stock price rose about 107%.
This year, however, an economic slowdown and a continued shift back to some pre-pandemic consumer habits has hurt many tech companies. Shares of cloud-computing competitor Amazon have fallen about 30% this year, while shares of Facebook-parent Meta have dropped 61%.
Microsoft will report its latest quarterly earnings next Tuesday after markets close.
(ALBANY, N.Y.) — Amazon workers at a warehouse in Albany, New York, voted overwhelmingly against unionization on Tuesday.
The union loss marks a second consecutive defeat at a U.S. Amazon facility for the Amazon Labor Union, or ALU, the worker-led labor organization behind the historic first-ever victory at an Amazon warehouse in New York City in April.
The result delivers a blow for the yearslong labor campaign that has brought union drives and worker protests to Amazon warehouses nationwide.
In the union election in Albany, 406 workers voted against unionization and 206 workers voted for it, a National Labor Relations Board official said after the vote count.
ALU has filed 27 charges of illegal conduct undertaken by Amazon over the course of the labor campaign, including the violation of agreed-to election rules with threats to fire workers who planned to serve as election observers, the union said in a statement on Monday.
“Despite all the union-busting and unfair labor practices, we recognize that a union election is just one step in a much longer struggle,” Sarah Chaudry, a worker at the warehouse in Albany, also known as ALB1, told ABC News in a statement.
“I will continue to fight for my fellow workers’ rights until we have our union at ALB1 and until all Amazon workers secure their right to a union,” Chaudry said.
Amazon did not immediately respond to a request for comment. In a statement to ABC News in July, the company expressed its general opposition to union campaigns.
“Our employees have the choice of whether or not to join a union. They always have,” Amazon spokesperson Kelly Nantel said. “As a company, we don’t think unions are the best answer for our employees. Our focus remains on working directly with our team to continue making Amazon a great place to work.”
The Albany facility, where about 800 workers were eligible to vote, has the highest injury rate of almost 30 Amazon warehouses in New York state, according to an analysis of government data published in May by the left-leaning National Employment Law Project.
The warehouse experienced about 22 injuries per 100 workers between 2020 and 2021, the NELP report found.
ALU, an independent union initially fueled by fundraising on a GoFundMe page, carried out a monthslong organizing campaign at Amazon’s 6,000-employee warehouse on Staten Island that proved to be one of the most significant labor victories in the U.S. in recent decades.
After the union victory, Amazon filed objections with the National Labor Relations Board seeking to overturn the outcome, including allegations that NLRB officials showed a favorable bias toward the workers and that union leaders bribed colleagues in an effort to win their support.
In September, a hearing officer for the National Labor Relations Board recommended that the vote should stand. A final ruling has not been handed down.
The union election in Albany marked the third union vote at an Amazon warehouse for the ALU this year. In May, the ALU lost a union election at a warehouse on Staten Island.
(NEW YORK) — A French industrial company pleaded guilty Tuesday to providing material support to terrorism by paying millions of dollars to ISIS in order to keep its cement plant in Syria operable.
LaFarge SA and it’s now-dormant Syrian cement affiliate pleaded guilty to a single count brought by federal prosecutors in Brooklyn, New York that charges the company with conspiracy to provide material support to foreign terrorist organizations.
The company conceded it knowingly and intentionally conspired to support the Islamic State and the Al-Nusra front.
“Guilty,” LaFarge chief executive, Magali Anderson, said before Judge William Kuntz.
From August 2013 to November 2014, LaFarge and LaFarge Cement Syria knowingly and willfully agreed to a conspiracy to make and authorize payments for the benefit of armed groups in Syria, Anderson said in a plea allocution.
“The individuals responsible for this conduct have been separated from the company since 2017,” Anderson said.
LaFarge agreed to pay $777 million in fines and forfeiture and serve three years probation as part of its plea agreement with the government. It also agreed to cooperate with the ongoing investigation.
“We deeply regret that this conduct occurred and have worked with the U.S. Department of Justice to resolve this matter,” LaFarge said in a statement.
(NEW YORK) — Meet the world’s first “ultra luxury electric super coupe.”
The $413,000 Rolls-Royce Spectre is not be the world’s most expensive electric vehicle (that title goes to the $2.4 million Rimac Nevera hypercar). Nor is it the fastest. Its EPA-estimated range of 260 miles falls short of the industry-leading Lucid Air Grand Touring ($154,000), which gets 516 miles on a full charge.
Yet Rolls-Royce will undoubtedly sell every Spectre, a two-door fastback that seats four, it builds next year at the company’s headquarters in Goodwood, England.
“Demand has been incredible. While we haven’t even shown Spectre publicly, we have more hard orders already than we had in total for Dawn or Cullinan,” Martin Fritsches, president and CEO of Rolls-Royce Motor Cars America, told ABC News, referring to the company’s convertible and SUV models. “We have already seen hundreds of our clients visit the Bespoke design studios in Goodwood to start configuring their Spectre commission.”
Last year, the 117-year-old brand decided it would cease production of its gas-guzzling, 12-cylinder engines and replace its entire lineup with EVs by 2030. The Spectre, the company’s first electric vehicle, will be available starting in late 2023. Bespoke customizations can easily add 20% more in value to the Spectre’s MSRP, Fritsches noted.
The 6,559-pound coupe sprints from 0 to 60 mph in 4.4 seconds and delivers 664 ft-lb of torque and 577 horsepower. Designers gave the Spectre 23-inch wheels along with the widest grille ever put on a Rolls-Royce. Even the brand’s famous Spirit of Ecstasy mascot got a makeover: The figurine was remodeled to have a lower, more dynamic stance that’s also aerodynamic. Moreover, Spectre is the first Rolls to offer Starlight Doors, which add 4,796 illuminated “stars” to the interior.
“Spectre represents the start of our electric era [and] has been under development for many years,” Fritsches said. “The prime directive of this project was to ensure that Spectre is a Rolls-Royce first and foremost and happens to be powered as an electric car second.”
Ivan Drury, director of insights at Edmunds, expects the Spectre to be an instant hit for Rolls-Royce, potentially even exceeding demand for the Cullinan SUV, the company’s top-selling model.
“There will be a lot of hand-raisers and it will be sold out for years,” Drury told ABC News. “The price of these vehicles has no meaning to customers. Rolls-Royce operates on a different level than anyone else — it has guaranteed sales.”
Even a global recession, which some market strategists are predicting this year, would have little if any impact on the company’s future sales, according to Michelle Krebs, executive analyst at Cox Automotive.
“Expensive cars have done very well over the last few years and EVs in general are bought by the most affluent people,” Krebs told ABC News. “The demographic of customers who buy these vehicles are less affected by the economy.”
In 2021, Rolls-Royce delivered a record 5,586 vehicles to clients around the world, a 49% increase from 2020. Rolls-Royce has already sold 4,701 vehicles in the first nine months of 2022, with customer orders extending well into next year, Fritsches said.
The introduction of the Spectre could put pressure on Tesla, the undisputed EV leader, and German carmaker Porsche, which has seen customers rapidly shift to its all-electric Taycan, with sales last year outpacing the brand’s venerable 911 sports car. EVs are the fastest-growing auto segment in the U.S., accounting for 6.4% of the total market, up from 2.6% last year, Krebs said. Tesla has reported a 64% rise in sales this year though its stronghold on the market has started to slip with the arrival of more EVs.
General Motors’ Cadillac division, however, may be Rolls-Royce’s most serious competitor in the ultra-luxe space. Its new $300,000 Celestiq electric concept will lead the brand’s electric future and become Cadillac’s new flagship vehicle, according to company executives. Like the Spectre, the Celestiq will be hand-built, handcrafted and customized to owners’ discerning specifications. It arrives by 2025.
Dan Pund, executive editor of Road & Track, said EVs present a new challenge to high-end automakers: how to stand out when the number of cylinders and driving engagement no longer matters.
“Powertrain is not the differentiating factor anymore — styling now is so important,” Pund told ABC News.
As for Rolls-Royce’s electric ambitions, Pund said customers can anticipate the same level of comfort and luxury they have always sought in the brand.
“It makes sense for them to go electric,” he said. “Enormous torque, smooth, quiet rides — this is what the company is known for.”
Fritsches said the Spectre, much like the marque’s Black Badge models, will keep the company relevant in an industry that’s quickly moving away from gas-powered conveyances.
“We are already seeing newcomers to Rolls-Royce who have been waiting for us to make the commitment to electrification,” he said.
(NEW YORK) — The biggest shopping day of the year is on the way.
Though Black Friday will offer hundreds of deals from tons of retailers, you can shop early this year and expect to save even more.
“By starting to shop earlier, retailers are giving holiday shoppers longer durations of time to stretch those paychecks that are already tight,” ABC News technology and consumer correspondent Becky Worley said on Good Morning America.
Whether you are trying to figure out what to purchase or when, read below to stay in the know:
When is Black Friday this year?
Black Friday falls on Nov. 25 this year, the Friday after Thanksgiving.
Deals will be starting within the next few weeks. With markdowns starting early this year, it’s important to have a list and plan ahead before hot ticket items sell out.
What should I shop for on Black Friday vs. Cyber Monday?
Cyber Monday is just three days after Black Friday and is strictly an online shopping event. Cyber Monday will be on Nov. 28.
Historically, tech items see the largest markdowns on Cyber Monday.
Overall, both Black Friday and Cyber Monday should have overlapping opportunities to save.
Tips for conquering Black Friday shopping like a pro
Make a list. Think — who do you need to shop for this holiday season and how much are you willing to spend?
Plan your non-negotiable purchases ahead of the sale.
(NEW YORK) — Grab the corkscrew, a bottle of your favorite cabernet sauvignon or chardonnay and some fellow wine-loving friends to transport your next game night to California’s legendary wine country.
Top Trumps USA, under license from Hasbro, exclusively unveiled the new Monopoly Napa Valley Edition with ABC News’ Good Morning America on Tuesday, offering a first look at the board, player tokens and more.
This iteration of the classic game replaces Atlantic City squares with representations of iconic wineries, historic landmarks and time-honored local businesses across Napa Valley.
The premier wine region made up of five main towns — American Canyon, Napa, Yountville, St. Helena and Calistoga — is home to award-winning winemakers, Michelin star restaurants and picturesque views from the Silverado trail to the hillside of Howell Mountain. Fans of the destination can pretend to own or rent a small-scale version of California’s first American Viticulture Area through this limited-edition game.
Pictures of sprawling vineyards, hot air balloons and the Grape Crusher Statue are prominently placed in the center of the board with pops of merlot-hued graphics and grape vines.
The featured wineries for players to purchase include Frank Family Vineyards, Beringer, Sterling Vineyards, JaM Cellars, Hall Wines and Napa Cellars. Neighboring culinary-related properties up for grabs include the sprawling food hall at Oxbow Public Market, The Model Bakery with imagery of their famously fluffy brick-oven-cooked English muffins, as well as Bounty Hunter and La Chev Bakery.
“The iconic Monopoly game is an opportunity for everyone to live the Napa Valley lifestyle in the comfort of their home while enjoying our award-winning wines,” Beringer Vineyards General Manager and Sr. Winemaker Ryan Rech told GMA. “Graced with stately 19th century architecture and beautiful gardens, Beringer’s estate, including the Victorian-era Rhine House, was designated as a historic district on the National Register of Historic Places. Now, to be immortalized on the Monopoly game board for generations to come is not only fun, but feels like another milestone for our landmark estate and allows all ages to enjoy the Napa Valley experience.”
Like the perennial Monopoly board, players can build houses and hotels to improve properties and charge rent, as well as pick up Chance and Community Chest cards for unexpected prizes and penalties as they trade their way to success.
Silverado Resort, Senza Hotel and one of Napa’s many bed and breakfasts are depicted, as well as Napa Valley College, Alta Luxury Transportation and FlyWithWine.
There are eight tokens for players to choose from: the boot, the race car, the top hat, the cat, the dog, the battleship, the thimble and the wheelbarrow.
“We’re thrilled to launch Monopoly Napa Valley Edition in time for the holidays and to celebrate one of the most beloved, culturally rich and geographically beautiful wine regions in the world,” Jennifer Tripsea, a representative for the game and puzzle brand, said in a statement. “We’ve spent months creating a portrayal of the area’s dynamic communities that we hope locals and visitors alike will enjoy for years to come.”
She added that the team behind the new game “incorporated important feedback from locals to truly make this a fun and engaging game for Napa Valley residents and beyond.”
“Napa Valley’s roots as a wine-growing region trace back to the early 1800s and still today it is the epitome of beautiful wine country scenery, incredible luxury properties, and legendary world class wine,” Rech said. “Founded in 1876 by entrepreneurial German brothers Frederick, a financier, and Jacob, a winemaker, I can’t imagine a Napa Valley Monopoly board without Beringer!”
The new Napa Valley board is available for $39.95 on Amazon, CVS and the Top Trumps USA website, as well as local retailers in Napa Valley.
Whether you’ve visited in person, live locally or have it at the top of your travel bucket list, this game offers a fun taste of what Napa has to offer.
(NEW YORK) — As the holiday shopping season begins to ramp up, online shoppers should keep an eye out for changes to return policies at some of their favorite stores.
Some major retailers, like Zara, Abercrombie & Fitch and J.Crew, are adjusting their shipping return policies, making free returns a thing of the past.
But, experts say, there are still ways to avoid those fees.
ABC News’ Chief Business Correspondent Rebecca Jarvis appeared on Good Morning America Monday to discuss some of the changes shoppers may soon see:
(NEW YORK) — Two major U.S. supermarkets will combine forces after a unanimous all-cash merger agreement was reached between the boards of Kroger and Albertsons.
Kroger, the second largest grocery store chain, purchased the fourth largest, Albertsons, for an estimated total enterprise value of $24.6 billion, the company announced in a news release Friday.
“This combination will expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households with a premier omnichannel experience,” Kroger said.
Combined, the stores employ more than 700,000 people across 5,000 stores.
The companies said they plan to continue with their shared track record to lower prices, enhance customer experience and increase associate wages and benefits.
In a statement, Kroger Chairman and CEO Rodney McMullen said, “Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors.”
He added that “as a combined entity, we will be better positioned to advance Kroger’s successful go-to-market strategy” with respect to their seamless shopping experience, portfolio of brands, and personalized value and savings.
“Consistent with prior transactions, Kroger plans to invest in lowering prices for customers and expects to reinvest approximately half a billion dollars of cost savings from synergies to reduce prices for customers,” the company stated in its news release. “An incremental $1.3 billion will also be invested into Albertsons Cos. stores to enhance the customer experience.”
The newly merged company said it “expects to invest $1 billion to continue raising associate wages and comprehensive benefits after close.”
One of the main pillars highlighted as a way to accelerate Kroger’s go-to-market strategy is to create a broader selection of products with higher quality and better value.
“At a time when people are increasingly shopping for groceries and eating at home, Kroger and Albertsons Cos. will be better positioned to relieve the inflationary pressures facing shoppers with a combined portfolio of approximately 34,000 total private label products across premium, natural and organic, and opening price point brands,” the news release stated.
“Kroger and Albertsons Cos. have strong track records of providing quality products at great value. The combined company’s innovation capabilities, increased manufacturing footprint and expanded national reach will drive improved quality and efficiency allowing its Our Brands portfolio to accelerate growth and profitability while remaining affordable and accessible to customers,” the news release continued.
Additionally, Kroger said it expects this deal will enable the company to “serve America with fresher food, faster” with its “expanded network of stores and distribution centers, as well as a broader supplier base.”
“Utilizing Kroger’s End-to-End Fresh initiative across a broader network will enable the combined company to optimize its supply chain to deliver the freshest products from field to table to more customers more quickly,” the company stated. “By bringing together Kroger’s Fresh for Everyone strategy and Albertsons Cos.’ Customers for Life strategy, the combined company will expand its portfolio of fresh products, extend shelf lives and accelerate the penetration of its Fresh portfolio.”
The company said it also hopes to continue its shared progress towards environmental, social and governance (ESG) principles.
‘The addition of Albertsons Cos.’ sustainability program and resources will accelerate progress on Kroger’s Zero Hunger, Zero Waste social and environmental impact plan to create a more equitable and sustainable food system,” the release said.
The transaction is expected to close in early 2024, subject to required regulatory clearance and closing conditions, according to the company’s investor relations site.
