Some groups have found being productive particularly challenging during the pandemic. Half of parents working from home with children under 18, and nearly 40 percent of all remote workers ages 18 to 49, said it had been difficult for them to be able to get their work done without interruptions, according to the Pew Research Center. Parents were also more likely than those without children to say they had difficulty meeting deadlines and completing projects on time while working at home.
It is possible that people who are working from home — a relatively small percentage of workers compared to those who cannot do their jobs remotely — also have a false sense of how much they are working. In effect, people who are working at home may be using the wrong denominator when calculating the portion of their time they spend doing work, Mr. Syverson, the University of Chicago economist, said. That could make them feel as if they are working less when they are really working the same amount. (This may not be the case for those working remotely in jobs where their output can be more quantified easily, such as sales representatives.)
“I think there is something to the fact that a lot of workers who work at home are never sort of on the clock versus off the clock,” he said. “Rather than dividing a day’s work by eight hours in the office, they divide the day’s work by the 16 hours they are awake.”
As employers continue trying to figure out how to engage their employees and entice them back to empty offices, how to get the most from their work force has become a management puzzle with wide-ranging economic implications. Already, some have announced plans to give employees more flexibility — a nod to the idea that total output and how people feel are intertwined. Twitter said that employees who are able to do their jobs remotely could work from home forever.
Brigid Schulte, the director of the Better Life Lab at New America and the author of “Overwhelmed: Work, Love and Play When No One Has the Time,” said American culture has long believed that working longer means working harder and being more productive, despite the flaws in that way of thinking. She noted the idea that there is a “productivity cliff” — workers are only productive for a certain number of hours, after which their productivity declines and they may begin making mistakes.
“We’ve long had this really erroneous connection between long work must mean hard work and productivity, and it never has,” she said.
Productivity may also no longer be the be-all end-all it once was.
The pandemic has prompted a collective awakening, borne from a constant and immediate fear of contagion and death, over cultural priorities. For many people, especially the percentage of workers who remained employed and are able to work remotely, personal productivity — at least in the sense that it means producing the most at work, in the most number of hours — is no longer necessarily even the goal.
When Facebook this week released its first quarterly report about the most viewed posts in the United States, Guy Rosen, its vice president of integrity, said the social network had undertaken “a long journey” to be “by far the most transparent platform on the internet.” The list showed that the posts with the most reach tended to be innocuous content like recipes and cute animals.
Facebook had prepared a similar report for the first three months of the year, but executives never shared it with the public because of concerns that it would look bad for the company, according to internal emails sent by executives and shared with The New York Times.
In that report, a copy of which was provided to The Times, the most-viewed link was a news article with a headline suggesting that the coronavirus vaccine was at fault for the death of a Florida doctor. The report also showed that a Facebook page for The Epoch Times, an anti-China newspaper that spreads right-wing conspiracy theories, was the 19th-most-popular page on the platform for the first three months of 2021.
The report was nearing public release when some executives, including Alex Schultz, Facebook’s vice president of analytics and chief marketing officer, debated whether it would cause a public relations problem, according to the internal emails. The company decided to shelve it.
called on the company to share more information about false and misleading information on the site, and to do a better job of stopping its spread. Last month, President Biden accused the company of “killing people” by allowing false information to circulate widely, a statement the White House later softened. Other federal agencies have accused Facebook of withholding key data.
Facebook has pushed back, publicly accusing the White House of scapegoating the company for the administration’s failure to reach its vaccination goals. Executives at Facebook, including Mark Zuckerberg, its chief executive, have said the platform has been aggressively removing Covid-19 misinformation since the start of the pandemic. The company said it had removed over 18 million pieces of misinformation in that period.
But Brian Boland, a former vice president of product marketing at Facebook, said there was plenty of reason to be skeptical about data collected and released by a company that has had a history of protecting its own interests.
barred from advertising on Facebook because of its repeated violations of the platform’s political advertising policy.
Trending World, according to the report, was viewed by 81.4 million accounts, slightly fewer than the 18th-most-popular page, Fox News, which had 81.7 million content viewers for the first three months of 2021.
Facebook’s transparency report released on Wednesday also showed that an Epoch Times subscription link was among the most viewed in the United States. With some 44.2 million accounts seeing the link in April, May and June, it was about half as popular as Trending World in the shelved report.
Sheera Frenkel and Mike Isaac contributed reporting. Jacob Silver and Ben Decker contributed research.
“We’ve taken the stance that we’re not going to ask employees to get vaccinated because of the sheer multiple who don’t want to get vaccinated,” said Mr. Lucanera, who is vaccinated. “If we demand for a lot of them to get vaccinated to come back to work, we are afraid they’re not going to come back.”
But as Covid cases have escalated, some of his unvaccinated workers have gotten sick. To cover their shifts, he has had to pay others overtime, which has been a drain on the company’s bottom line. Recently, he turned down a contract with a school district because he didn’t have enough officers to fulfill the request.
“It almost seems that whoever already doesn’t have it by this time has made up their minds,” Mr. Lucanera said. “If I put my foot down, will it hurt the company in terms of creating a bigger problem than we have?”
Still, for many unvaccinated workers, finding a new job is often not a desirable, or feasible, option.
Benjamin Rose, 28, who works at a global bank in the Chicago area, said his decision not to get the shot was “really just a cost-benefit analysis.” He contracted Covid-19 six months ago, he said, and a recent blood test showed he still had antibodies.
But because he is not vaccinated, his company requires that he work remotely even as it has begun to allow vaccinated employees back in the office. While he said he enjoyed the flexibility of remote work and was not opposed to vaccine mandates, he also did not want to feel like he was being coerced.
“I find it a little irksome how big corporations, the media and the government are all sort of this united front in pushing the vaccine so hard,” Mr. Rose said.
At the same time, he said, if his company instituted a vaccine mandate, he would likely comply.
“It’s not the hill I’m going to die on,” he said. “If it really became something that was going to strongly affect my career, I would probably just get it.”
Over the last decade, Dr. Mercola has built a vast operation to push natural health cures, disseminate anti-vaccination content and profit from all of it, said researchers who have studied his network. In 2017, he filed an affidavit claiming his net worth was “in excess of $100 million.”
And rather than directly stating online that vaccines don’t work, Dr. Mercola’s posts often ask pointed questions about their safety and discuss studies that other doctors have refuted. Facebook and Twitter have allowed some of his posts to remain up with caution labels, and the companies have struggled to create rules to pull down posts that have nuance.
“He has been given new life by social media, which he exploits skillfully and ruthlessly to bring people into his thrall,” said Imran Ahmed, director of the Center for Countering Digital Hate, which studies misinformation and hate speech. Its “Disinformation Dozen” report has been cited in congressional hearings and by the White House.
In an email, Dr. Mercola said it was “quite peculiar to me that I am named as the #1 superspreader of misinformation.” Some of his Facebook posts were only liked by hundreds of people, he said, so he didn’t understand “how the relatively small number of shares could possibly cause such calamity to Biden’s multibillion dollar vaccination campaign.”
The efforts against him are political, Dr. Mercola added, and he accused the White House of “illegal censorship by colluding with social media companies.”
He did not address whether his coronavirus claims were factual. “I am the lead author of a peer reviewed publication regarding vitamin D and the risk of Covid-19 and I have every right to inform the public by sharing my medical research,” he said. He did not identify the publication, and The Times was unable to verify his claim.
A native of Chicago, Dr. Mercola started a small private practicein 1985 in Schaumburg, Ill. In the 1990s, he began shifting to natural health medicine and opened his main website, Mercola.com, to share his treatments, cures and advice. The site urges people to “take control of your health.”
AUSTIN, Texas–(BUSINESS WIRE)–American Campus Communities (NYSE: ACC), the nation’s largest student housing company, has once again been recognized in multiple award categories of Student Housing Business Magazine’s InterFace Conference Innovator Awards.
The Innovator Awards are given to student housing owners, developers, operators, architecture firms and universities for excellence in student housing development, marketing and operations. More than 100 industry experts judged on more than 140 entries in this year’s contest. This was the largest number of submissions to date.
ACC has been honored with the following on-campus awards for 2021:
On-Campus Best Public-Private Financing Solution: Manzanita Square at San Francisco State University – ACC recognized an enormous opportunity to provide development and financial expertise and support to a dedicated project team in the California State University System’s first equity-financed public-private partnership. After a 22-month construction duration, Manzanita Square opened its doors in August 2020. The 584-bed, academically oriented community represents a true win-win-win for the project team, the University and its students.
On-Campus Best Implementation of Mixed-Use/Live-Learn: UIC Academic and Residential Complex – The ARC is home to more than 550 UIC students, providing a purpose-built, academically oriented student living environment and classrooms in the heart of campus. The facility provides modern spaces for residents to live, learn and thrive, including 50,000 square feet of academic space including learning halls, classrooms, study spaces and tutoring centers.
On-Campus Best New Development: University of Illinois Chicago Academic and Residential Complex – In the spring of 2017, UIC engaged ACC to deliver the Academic and Residential Complex (ARC), which represents the first phase of the University’s revitalization initiative. Developed as a public-private partnership among UIC and ACC, the ARC was delivered in Fall 2019 after a 20-month construction process.
On-Campus Best Architecture: UIC Academic and Residential Complex – Campus-wide connection is reinforced through transparency between interior program spaces and the outdoor environment. Amenity spaces are highly visible and concentrated on the ground floor to promote and extend the community’s learning environment. The community’s facade and interiors echo the geometric architecture seen throughout campus, celebrating the university’s urban context while simultaneously maintaining a residential collegiate aesthetic.
“It’s an honor to be recognized alongside our innovative university partners for two communities, Manzanita Square and the UIC Academic and Residential Complex, that go above and beyond to create environments conducive to academic success and personal well-being for our students,” said Bill Bayless, CEO at ACC. “Our ACC team members across the country have remained focused on fulfilling our mission of putting students first and creating a place where they love living.”
Bayless gave the keynote address at the conference on Wednesday, July 14th at the JW Marriott in Austin, Texas. In total, ACC has been awarded 43 SHB Innovator Awards since 2013.
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of March 31, 2021, American Campus Communities owned 166 student housing properties containing approximately 111,900 beds. Including its owned and third-party managed properties, ACC’s total managed portfolio consisted of 207 properties with approximately 142,400 beds. Visit www.americancampus.com.
In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the “company”) operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. These risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking-statements include those related to the COVID-19 pandemic, about which there are still many unknowns, including the duration of the pandemic and the extent of its impact, and those discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 under the heading “Risk Factors” and under the heading “Business – Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our preleasing activity or expected full year 2021 operating results, whether as a result of new information, future events, or otherwise.
The nation is facing once in a generation choices about how energy ought to be delivered to homes, businesses and electric cars — decisions that could shape the course of climate change and determine how the United States copes with wildfires, heat waves and other extreme weather linked to global warming.
On one side, large electric utilities and President Biden want to build thousands of miles of power lines to move electricity created by distant wind turbines and solar farms to cities and suburbs. On the other, some environmental organizations and community groups are pushing for greater investment in rooftop solar panels, batteries and local wind turbines.
There is an intense policy struggle taking place in Washington and state capitals about the choices that lawmakers, energy businesses and individuals make in the next few years, which could lock in an energy system that lasts for decades. The divide between those who want more power lines and those calling for a more decentralized energy system has split the renewable energy industry and the environmental movement. And it has created partnerships of convenience between fossil fuel companies and local groups fighting power lines.
At issue is how quickly the country can move to cleaner energy and how much electricity rates will increase.
senators from both parties agreed to in June. That deal includes the creation of a Grid Development Authority to speed up approvals for transmission lines.
Most energy experts agree that the United States must improve its aging electric grids, especially after millions of Texans spent days freezing this winter when the state’s electricity system faltered.
“The choices we make today will set us on a path that, if history is a barometer, could last for 50 to 100 years,” said Amy Myers Jaffe, managing director of the Climate Policy Lab at Tufts University. “At stake is literally the health and economic well-being of every American.”
The option supported by Mr. Biden and some large energy companies would replace coal and natural gas power plants with large wind and solar farms hundreds of miles from cities, requiring lots of new power lines. Such integration would strengthen the control that the utility industry and Wall Street have over the grid.
batteries installed at homes, businesses and municipal buildings.
Those batteries kicked in up to 6 percent of the state grid’s power supply during the crisis, helping to make up for idled natural gas and nuclear power plants. Rooftop solar panels generated an additional 4 percent of the state’s electricity.
become more common in recent years.
Some environmentalists argue that greater use of rooftop solar and batteries is becoming more essential because of climate change.
After its gear ignited several large wildfires, Pacific Gas & Electric began shutting off power on hot and windy days to prevent fires. The company emerged from bankruptcy last year after amassing $30 billion in liabilities for wildfires caused by its equipment, including transmission lines.
Elizabeth Ellenburg, an 87-year-old cancer survivor in Napa, Calif., bought solar panels and a battery from Sunrun in 2019 to keep her refrigerator, oxygen equipment and appliances running during PG&E’s power shut-offs, a plan that she said has worked well.
“Usually, when PG&E goes out it’s not 24 hours — it’s days,” said Ms. Ellenburg, a retired nurse. “I need to have the ability to use medical equipment. To live in my own home, I needed power other than the power company.”
working to improve its equipment. “Our focus is to make both our distribution and transmission system more resilient and fireproof,” said Sumeet Singh, PG&E’s chief risk officer.
But spending on fire prevention by California utilities has raised electricity rates, and consumer groups say building more power lines will drive them even higher.
Average residential electricity rates nationally have increased by about 14 percent over the last decade even though average household energy use rose just over 1 percent.
2019 report by the National Renewable Energy Laboratory, a research arm of the Energy Department, found that greater use of rooftop solar can reduce the need for new transmission lines, displace expensive power plants and save the energy that is lost when electricity is moved long distances. The study also found that rooftop systems can put pressure on utilities to improve or expand neighborhood wires and equipment.
Texas was paralyzed for more than four days by a deep freeze that shut down power plants and disabled natural gas pipelines. People used cars and grills and even burned furniture to keep warm; at least 150 died.
One reason for the failure was that the state has kept the grid managed by the Electric Reliability Council of Texas largely disconnected from the rest of the country to avoid federal oversight. That prevented the state from importing power and makes Texas a case for the interconnected power system that Mr. Biden wants.
Consider Marfa, an artsy town in the Chihuahuan Desert. Residents struggled to stay warm as the ground was blanketed with snow and freezing rain. Yet 75 miles to the west, the lights were on in Van Horn, Texas. That town is served by El Paso Electric, a utility attached to the Western Electricity Coordinating Council, a grid that ties together 14 states, two Canadian provinces and a Mexican state.
$1.4 million, compared with about $1 million to Donald J. Trump, according to the Center for Responsive Politics.
In Washington, developers of large solar and wind projects are pushing for a more connected grid while utilities want more federal funding for new transmission lines. Advocates for rooftop solar panels and batteries are lobbying Congress for more federal incentives.
Separately, there are pitched battles going on in state capitals over how much utilities must pay homeowners for the electricity generated by rooftop solar panels. Utilities in California, Florida and elsewhere want lawmakers to reduce those rates. Homeowners with solar panels and renewable energy groups are fighting those efforts.
Building power lines is hard.
Despite Mr. Biden’s support, the utility industry could struggle to add power lines.
Many Americans resist transmission lines for aesthetic and environmental reasons. Powerful economic interests are also at play. In Maine, for instance, a campaign is underway to stop a 145-mile line that will bring hydroelectric power from Quebec to Massachusetts.
New England has phased out coal but still uses natural gas. Lawmakers are hoping to change that with the help of the $1 billion line, called the New England Clean Energy Connect.
This spring, workmen cleared trees and installed steel poles in the forests of western Maine. First proposed a decade ago, the project was supposed to cut through New Hampshire until the state rejected it. Federal and state regulators have signed off on the Maine route, which is sponsored by Central Maine Power and HydroQuebec.
But the project is mired in lawsuits, and Maine residents could block it through a November ballot measure.
set a record in May, and some scientists believe recent heat waves were made worse by climate change.
“Transmission projects take upward of 10 years from conception to completion,” said Douglas D. Giuffre, a power expert at IHS Markit. “So if we’re looking at decarbonization of the power sector by 2035, then this all needs to happen very rapidly.”
There were two weeks left in the Trump administration when the Treasury Department handed down a set of rules governing an obscure corner of the tax code.
Overseen by a senior Treasury official whose previous job involved helping the wealthy avoid taxes, the new regulations represented a major victory for private equity firms. They ensured that executives in the $4.5 trillion industry, whose leaders often measure their yearly pay in eight or nine figures, could avoid paying hundreds of millions in taxes.
The rules were approved on Jan. 5, the day before the riot at the U.S. Capitol. Hardly anyone noticed.
The Trump administration’s farewell gift to the buyout industry was part of a pattern that has spanned Republican and Democratic presidencies and Congresses: Private equity has conquered the American tax system.
one recent estimate, the United States loses $75 billion a year from investors in partnerships failing to report their income accurately — at least some of which would probably be recovered if the I.R.S. conducted more audits. That’s enough to roughly double annual federal spending on education.
It is also a dramatic understatement of the true cost. It doesn’t include the ever-changing array of maneuvers — often skating the edge of the law — that private equity firms have devised to help their managers avoid income taxes on the roughly $120 billion the industry pays its executives each year.
Private equity’s ability to vanquish the I.R.S., Treasury and Congress goes a long way toward explaining the deep inequities in the U.S. tax system. When it comes to bankrolling the federal government, the richest of America’s rich — many of them hailing from the private equity industry — play by an entirely different set of rules than everyone else.
The result is that men like Blackstone Group’s chief executive, Stephen A. Schwarzman, who earned more than $610 million last year, can pay federal taxes at rates similar to the average American.
Lawmakers have periodically tried to force private equity to pay more, and the Biden administration has proposed a series of reforms, including enlarging the I.R.S.’s enforcement budget and closing loopholes. The push for reform gained new momentum after ProPublica’s recent revelation that some of America’s richest men paid little or no federal taxes.
nearly $600 million in campaign contributions over the last decade, has repeatedly derailed past efforts to increase its tax burden.
Taylor Swift’s back music catalog.
The industry makes money in two main ways. Firms typically charge their investors a management fee of 2 percent of their assets. And they keep 20 percent of future profits that their investments generate.
That slice of future profits is known as “carried interest.” The term dates at least to the Renaissance. Italian ship captains were compensated in part with an interest in whatever profits were realized on the cargo they carried.
The I.R.S. has long allowed the industry to treat the money it makes from carried interests as capital gains, rather than as ordinary income.
article highlighting the inequity of the tax treatment. It prompted lawmakers from both parties to try to close the so-called carried interest loophole. The on-again, off-again campaign has continued ever since.
Whenever legislation gathers momentum, the private equity industry — joined by real estate, venture capital and other sectors that rely on partnerships — has pumped up campaign contributions and dispatched top executives to Capitol Hill. One bill after another has died, generally without a vote.
An Unexpected Email
One day in 2011, Gregg Polsky, then a professor of tax law at the University of North Carolina, received an out-of-the-blue email. It was from a lawyer for a former private equity executive. The executive had filed a whistle-blower claim with the I.R.S. alleging that their old firm was using illegal tactics to avoid taxes.
The whistle-blower wanted Mr. Polsky’s advice.
Mr. Polsky had previously served as the I.R.S.’s “professor in residence,” and in that role he had developed an expertise in how private equity firms’ vast profits were taxed. Back in academia, he had published a research paper detailing a little-known but pervasive industry tax-dodging technique.
$89 billion in private equity assets — as being “abusive” and a “thinly disguised way of paying the management company its quarterly paycheck.”
Apollo said in a statement that the company stopped using fee waivers in 2012 and is “not aware of any I.R.S. inquiries involving the firm’s use of fee waivers.”
floated the idea of cracking down on carried interest.
Private equity firms mobilized. Blackstone’s lobbying spending increased by nearly a third that year, to $8.5 million. (Matt Anderson, a Blackstone spokesman, said the company’s senior executives “are among the largest individual taxpayers in the country.” He wouldn’t disclose Mr. Schwarzman’s tax rate but said the firm never used fee waivers.)
Lawmakers got cold feet. The initiative fizzled.
In 2015, the Obama administration took a more modest approach. The Treasury Department issued regulations that barred certain types of especially aggressive fee waivers.
But by spelling that out, the new rules codified the legitimacy of fee waivers in general, which until that point many experts had viewed as abusive on their face.
So did his predecessor in the Obama administration, Timothy F. Geithner.
Inside the I.R.S. — which lost about one-third of its agents and officers from 2008 to 2018 — many viewed private equity’s webs of interlocking partnerships as designed to befuddle auditors and dodge taxes.
One I.R.S. agent complained that “income is pushed down so many tiers, you are never able to find out where the real problems or duplication of deductions exist,” according to a U.S. Government Accountability Office investigation of partnerships in 2014. Another agent said the purpose of large partnerships seemed to be making “it difficult to identify income sources and tax shelters.”
The Times reviewed 10 years of annual reports filed by the five largest publicly traded private equity firms. They contained no trace of the firms ever having to pay the I.R.S. extra money, and they referred to only minor audits that they said were unlikely to affect their finances.
Current and former I.R.S. officials said in interviews that such audits generally involved issues like firms’ accounting for travel costs, rather than major reckonings over their taxable profits. The officials said they were unaware of any recent significant audits of private equity firms.
No Money Owed
For a while, it looked as if there would be an exception to this general rule: the I.R.S.’s reviews of the fee waivers spurred by the whistle-blower claims. But it soon became clear that the effort lacked teeth.
Kat Gregor, a tax lawyer at the law firm Ropes & Gray, said the I.R.S. had challenged fee waivers used by four of her clients, whom she wouldn’t identify. The auditors struck her as untrained in the thicket of tax laws governing partnerships.
“It’s the equivalent of picking someone who was used to conducting an interview in English and tell them to go do it in Spanish,” Ms. Gregor said.
The audits of her clients wrapped up in late 2019. None owed any money.
The Mnuchin Compromise
As a presidential candidate, Mr. Trump vowed to “eliminate the carried interest deduction, well-known deduction, and other special-interest loopholes that have been so good for Wall Street investors, and for people like me, but unfair to American workers.”
wanted to close the loophole, congressional Republicans resisted. Instead, they embraced a much milder measure: requiring private equity officials to hold their investments for at least three years before reaping preferential tax treatment on their carried interests. Steven Mnuchin, the Treasury secretary, who had previously run an investment partnership, signed off.
McKinsey, typically holds investments for more than five years. The measure, part of a $1.5 trillion package of tax cuts, was projected to generate $1 billion in revenue over a decade.
credited Mr. Mnuchin, hailing him as “an all-star.”
Mr. Fleischer, who a decade earlier had raised alarms about carried interest, said the measure “was structured by industry to appear to do something while affecting as few as possible.”
Months later, Mr. Callas joined the law and lobbying firm Steptoe & Johnson. The private equity giant Carlyle is one of his biggest clients.
‘The Government Caved’
It took the Treasury Department more than two years to propose rules spelling out the fine print of the 2017 law. The Treasury’s suggested language was strict. One proposal would have empowered I.R.S. auditors to more closely examine internal transactions that private equity firms might use to get around the law’s three-year holding period.
The industry, so happy with the tepid 2017 law, was up in arms over the tough rules the Treasury’s staff was now proposing. In a letter in October 2020, the American Investment Council, led by Drew Maloney, a former aide to Mr. Mnuchin, noted how private equity had invested in hundreds of companies during the coronavirus pandemic and said the Treasury’s overzealous approach would harm the industry.
The rules were the responsibility of Treasury’s top tax official, David Kautter. He previously was the national tax director at EY, formerly Ernst & Young, when the firm was marketing illegal tax shelters that led to a federal criminal investigation and a $123 million settlement. (Mr. Kautter has denied being involved with selling the shelters but has expressed regret about not speaking up about them.)
On his watch at Treasury, the rules under development began getting softer, including when it came to the three-year holding period.
Monte Jackel, a former I.R.S. attorney who worked on the original version of the proposed regulations.
Mr. Mnuchin, back in the private sector, is starting an investment fund that could benefit from his department’s weaker rules.
A Charmed March
Even during the pandemic, the charmed march of private equity continued.
The top five publicly traded firms reported net profits last year of $8.6 billion. They paid their executives $8.3 billion. In addition to Mr. Schwarzman’s $610 million, the co-founders of KKR each made about $90 million, and Apollo’s Leon Black received $211 million, according to Equilar, an executive compensation consulting firm.
now advising clients on techniques to circumvent the three-year holding period.
The most popular is known as a “carry waiver.” It enables private equity managers to hold their carried interests for less than three years without paying higher tax rates. The technique is complicated, but it involves temporarily moving money into other investment vehicles. That provides the industry with greater flexibility to buy and sell things whenever it wants, without triggering a higher tax rate.
Private equity firms don’t broadcast this. But there are clues. In a recent presentation to a Pennsylvania retirement system by Hellman & Friedman, the California private equity giant included a string of disclaimers in small font. The last one flagged the firm’s use of carry waivers.
The Biden administration is negotiating its tax overhaul agenda with Republicans, who have aired advertisements attacking the proposal to increase the I.R.S.’s budget. The White House is already backing down from some of its most ambitious proposals.
Even if the agency’s budget were significantly expanded, veterans of the I.R.S. doubt it would make much difference when it comes to scrutinizing complex partnerships.
“If the I.R.S. started staffing up now, it would take them at least a decade to catch up,” Mr. Jackel said. “They don’t have enough I.R.S. agents with enough knowledge to know what they are looking at. They areso grossly overmatched it’s not funny.”
The music should be pumping and the burgers and jerk chicken wings flying out of the kitchen this holiday weekend at the Rambler Kitchen and Tap in the North Center neighborhood of Chicago.
To wash it down, patrons might go with a mixed drink or one of the 20 craft beers the bar sells. But many will order a hard seltzer. The Rambler expects to sell close to 500 cans in flavors like peach, pineapple and grapefruit pomelo.
“We’ll sell a lot of buckets of White Claw and Truly seltzers,” said Sam Stone, a co-owner of the Rambler. “It’s going to be a big summer for hard seltzer.”
The Memorial Day weekend kicks off what many hope will be a more normal summer, when kids start counting down the number of days left in school, people head back to the beach and grills heat up for backyard parties that went poof last year because of the pandemic. And for the hard seltzer industry, it’s the start of a dizzying period when dozens of old and new competitors vie to be the boozy, bubbly drink of the season.
ad campaign with the British pop singer Dua Lipa. This spring, the hip-hop star Travis Scott released Cacti, a seltzer made with blue agave syrup, in a partnership with Anheuser-Busch. It quickly sold out in many locations.
“People were lining up outside of the stores to buy Cacti and share pictures of themselves with their carts full of Cacti,” said Marcel Marcondes, the chief marketing officer for Anheuser-Busch.
Also this spring, Topo Chico Hard Seltzer was released. A partnership between Coca-Cola and Molson Coors Beverage, it hit shelves in 16 markets across the country, chasing the cult following of Topo Chico’s seltzer water in the South.
“I feel like I can walk into a party saying, ‘Oh, yeah, I brought the Topo Chico,’” said Dane Cardiel, 32, who works in business development for a podcast company and lives in Esopus, N.Y., about 60 miles south of Albany.
Today in Business
How flavored bubbly water with alcohol became a national phenomenon is partly due to social media videos that went viral and clever marketing that sold hard seltzers as a “healthier” alcohol choice.
White Claw’s slim cans prominently state that the drinks contain only 100 calories, are gluten free and have only two grams each of carbohydrates and sugar. The brand is owned by the Canadian billionaire Anthony von Mandl, who created Mike’s Hard Lemonade.
“The health and wellness element is front and center in terms of the visual marketing,” said Vivien Azer, an analyst at the Cowen investment firm. “Every brand’s packaging features its relatively low carb and sugar data.”
On top of that, the alcohol content in most hard seltzers, about 5 percent, or the same as 12 ounces of a typical beer, is less than a glass of wine or a mixed drink. That makes it easier for people to sip at a party or while watching a game without getting intoxicated or winding up with the belly-full-of-beer feeling.
“It’s a nice drink for an afternoon on the patio,” said Shelley Majeres, the general manager of Blake Street Tavern in downtown Denver. “You can drink four or five of them in an afternoon and not have a big hangover or get really drunk.”
Blake Street, an 18,000-square-foot sports bar, started selling hard seltzers two years ago. Today, they make up about 20 percent of its can and bottle sales.
The industry has also neatly sidestepped the gender issue that plagued earlier, lighter alcoholic alternatives like Zima, which became popular with women but struggled to be adopted by men.
“I’ve got just as many men as women drinking it,” said Nick Zeto, the owner of Boston Beer Garden in Naples, Fla. “And it started with the millennials, but now I have people in their 40s, 50s and 60s ordering it.”
That kind of broad appeal is attractive to beer, wine and spirits companies.
“We view ourselves as the challenger brand,” said Michelle St. Jacques, the chief marketing officer of Molson Coors, which has been making beer since the late 1700s but hopes to end this year with 10 percent of the hard seltzer market.
Last spring, the company released Vizzy, a hard seltzer that contains vitamin C. Top Chico came this spring. “We feel like we’re making great progress in seltzer by not trying to bring me-too products, but rather products and brands that have a clear difference,” Ms. St. Jacques said.
While grocery and liquor stores have made plenty of space available to the hard seltzer brands that people drink at home, the competition to get into restaurants and bars is fierce. Most want to offer only two or three brands to their customers.
“Oh, my god, I get presented with new hard seltzer whenever they can get my attention,” said Mr. Stone, who sells six brands at the Rambler. The crowd favorite, he said, is the vodka-based High Noon Sun Sips peach, made by E.&J. Gallo Winery. “Everybody, from the big brands to small, new ones, are getting into the hard seltzer game.”
Shortly after 8 p.m. on May 25, 2020, Derek Chauvin, a Minneapolis police officer, placed his knee on George Floyd’s neck and kept it there for more than nine minutes. None of the three other officers standing near Chauvin intervened. Soon, Floyd was dead.
Initially, the police gave a misleading account of Floyd’s death, and the case might have received relatively little attention but for the video that Darnella Frazier, a 17-year-old, took with her phone. That video led to international outrage and, by some measures, the largest protest marches in U.S. history.
Today, one year after Floyd’s murder, we are going to look at the impact of the movement that his death inspired in four different areas.
30 states and dozens of large cities have created new rules limiting police tactics. Two common changes: banning neck restraints, like the kind Chauvin used; and requiring police officers to intervene when a fellow officer uses extreme force.
pledged to hire more diverse workforces.
wrote. “So companies and institutions stopped whining about supposedly bad pipelines and started looking beyond them.”
It’s still unclear how much has changed and how much of the corporate response was public relations.
3. Changes in public opinion
Initially, public sympathy for the Black Lives Matter movement soared. But as with most high-profile political subjects in the 21st-century U.S., opinion soon polarized along partisan lines.
Today, Republican voters are less sympathetic to Black Lives Matter than they were a year ago, the political scientists Jennifer Chudy and Hakeem Jefferson have shown. Support among Democrats remains higher than it was before Floyd’s death but is lower than immediately afterward.
There are a few broad areas of agreement. Most Americans say they have a high degree of trust in law enforcement — even more than did last June, FiveThirtyEight’s Alex Samuels notes. Most also disagree with calls to “defund” or abolish police departments. Yet most back changes to policing, such as banning chokeholds.
4. A crime surge, much debated
It’s clear that violent crime has risen over the past year. It’s not fully clear why.
Many liberals argue that the increase has little to do with the protest movement’s call for less aggressive policing. The best evidence on this side of the debate is that violent crime was already rising — including in Chicago, New York and Philadelphia — before the protests. This pattern suggests that other factors, like the pandemic and a surge of gun purchases, have played important roles.
Many conservatives believe that the crime spike is connected to the criticism of the police, and they point to different evidence. First, the crime increase accelerated last summer, after the protests began — and other high-income countries have not experienced similar increases. Second, this acceleration fits into a larger historical pattern: Crime also rose in Baltimore and Ferguson, Mo., after 2015 protests about police violence there, as Patrick Sharkey, a sociologist and crime scholar, notes.
Sharkey has told us. But that doesn’t mean that the pre-protest status quo was the right approach, he emphasizes. Brute-force policing “can reduce violence,” he said, in a Q. and A. with The Atlantic. “But it comes with these costs that don’t in the long run create safe, strong, or stable communities.”
Some reform advocates worry that rising crime will rebuild support for harsh police tactics and prison sentences. “Fear makes people revert to old ways of doing things,” Lopez said.
The big question
How can police officers both prevent crime and behave less violently, so that they kill fewer Americans while doing their jobs?
Some experts say that officers should focus on hot spots where most crimes occur. Others suggest training officers to de-escalate situations more often. Still others recommend taking away some responsibilities from the police — like traffic stops and mental-health interventions — to reduce the opportunities for violence.
So far, the changes do not seem to have affected the number of police killings. Through last weekend, police officers continued to kill about three Americans per day on average, virtually the same as before Floyd’s murder.
A timeline of the events of the past year.
President Biden will meet with members of Floyd’s family at the White House today. Follow updates here about the anniversary.
THE LATEST NEWS
125th anniversary, The Times Book Review is highlighting some noteworthy first mentions of famous writers. You can find the full list here. Some of our favorites:
F. Scott Fitzgerald: In 1916, Princeton admitted only men, and they would often play women’s roles in campus plays. The Times featured a photo of Fitzgerald in character, calling him “the most beautiful showgirl.”
in an article about a “Greek Games” competition among students at Barnard: “A messenger, Joan Roth, rushed in to say that Persephone still lived and a rejoicing group danced in. Eight tumblers did tricks before the crowd to distract the still disconsolate Demeter.” Highsmith was among the student acrobats.
Ralph Ellison: In 1950, two years before the publication of “Invisible Man,” Ellison reviewed a novel called “Stranger and Alone,” by J. Saunders Redding. Ellison wrote that Saunders “presents many aspects of Southern Negro middle-class life for the first time in fiction.”
John Updike: An acclaimed short-story writer who had yet to publish a novel, Updike appeared in an advice article in 1958, encouraging parents to teach their children complex words. “A long correct word is exciting for a child,” he said. “Makes them laugh; my daughter never says ‘rhinoceros’ without laughing.” — Sanam Yar, a Morning writer
PLAY, WATCH, EAT
What to Cook
Here’s today’s Mini Crossword, and a clue: Comedian Silverman (five letters).
If you’re in the mood to play more, find all our games here.
Thanks for spending part of your morning with The Times. See you tomorrow. — David
P.S. The first “Star Wars” movie premiered 44 years ago today. Vincent Canby’s Times review called it “the most elaborate, most expensive, most beautiful movie serial ever made.”
You can see today’s print front page here.
“The Daily” is about a student free speech case. On “Sway,” Eliot Higgins discusses Bellingcat’s journalism.
Lalena Fisher, Claire Moses, Tom Wright-Piersanti and Sanam Yar contributed to The Morning. You can reach the team at email@example.com.
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As the coronavirus pandemic ebbs in the United States and vaccines become available for teenagers, school systems are facing the difficult choice of whether to continue offering a remote learning option in the fall.
When Mayor Bill de Blasio of New York City took a stance on Monday, saying that the city will drop remote learning in its public schools, the move may have added to the pressure on other school systems to do the same.
Some families remain fearful of returning their children to classrooms, and others have become accustomed to new child care and work routines built around remote schooling, and are loath to make major changes.
But it is increasingly clear that school closures have exacted an academic and emotional toll on millions of American students, while preventing some parents from working outside the home.
no longer have the option of sending their children to school virtually in the fall. Illinois plans to strictly limit online learning to students who are not eligible for a vaccine and are under quarantine orders.
Connecticut has said it will not require districts to offer virtual learning next fall. Massachusetts has said that parents will be able to opt for remote participation only in limited circumstances.
In California, which lagged behind the rest of the nation in returning to in-person schooling this spring, Gov. Gavin Newsom said he would compel districts to offer traditional school in the fall, while also offering remote learning for families who want it. Some lawmakers there have proposed an alternative approach that would cap the number of students enrolled in virtual options.
It is a major staffing challenge for districts to simultaneously offer both traditional and online classes. Before the pandemic, teachers’ unions were typically harsh critics of virtual learning, which they called inherently inferior. But with some teachers still hesitant to return to full classrooms, even post-vaccination, many unions have said parents should continue to have the choice to opt out of in-person learning.
Some teachers, parent groups and civil rights organizations have also argued that families of color are the least confident that their children will be safe in school buildings, and thus should not be pushed to return before they are ready.
about one-third of American elementary and secondary students attend schools that are not yet offering five days a week of in-person learning. Those school districts are mainly in areas with more liberal state and local governments and powerful teachers’ unions.
Disputes among administrators, teachers and parents’ groups over when and how to reopen schools have led to messy, protracted public battles in cities like Chicago and Los Angeles.
Governors, mayors and school boards around the country almost all now say that traditional in-person teaching schedules will be available in the fall, but there is still limited clarity on what rights parents will have to decline to return their children to classrooms. Many districts and states have yet to announce what their approach will be.
Among urban districts, the superintendent in San Antonio, Pedro Martinez, has said he will greatly restrict access to remote learning next school year, in part because many teenagers from low-income families have taken on work hours that are incompatible with full-time learning, a trend he wants to tamp down. The Philadelphia and Houston schools have said they will continue offering virtual options.
The superintendent of the nation’s fourth-largest district, Miami-Dade, has said he hopes to welcome back “100 percent” of students to in-person learning in the fall, but that students will retain the option to enroll instead in an online academy that predates the pandemic.