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The Supreme Court on Tuesday cleared the way for President Donald Trumps plans to downsize the federal workforce despite warnings that critical government services will be lost and hundreds of thousands of federal employees will be out of their jobs. The justices overrode lower court orders that temporarily froze the cuts, which have been led by the Department of Government Efficiency. The court said in an unsigned order that no specific cuts were in front of the justices, only an executive order issued by Trump and an administration directive for agencies to undertake job reductions. Justice Ketanji Brown Jackson was the only dissenting vote, accusing her colleagues of a demonstrated enthusiasm for greenlighting this Presidents legally dubious actions in an emergency posture. Jackson warned of enormous real-world consequences. This executive action promises mass employee terminations, widespread cancellation of federal programs and services, and the dismantling of much of the Federal Government as Congress has created it,” she wrote. The high court action continued a remarkable winning streak for Trump, who the justices have allowed to move forward with significant parts of his plan to remake the federal government. The Supreme Court’s intervention so far has been on the frequent emergency appeals the Justice Department has filed objecting to lower-court rulings as improperly intruding on presidential authority. The Republican president has repeatedly said voters gave him a mandate for the work, and he tapped billionaire ally Elon Musk to lead the charge through DOGE. Musk recently left his role. Tens of thousands of federal workers have been fired, have left their jobs via deferred resignation programs or have been placed on leave. There is no official figure for the job cuts, but at least 75,000 federal employees took deferred resignation and thousands of probationary workers have already been let go. In May, U.S. District Judge Susan Illston found that Trumps administration needs congressional approval to make sizable reductions to the federal workforce. By a 2-1 vote, a panel of the U.S. 9th Circuit Court of Appeals refused to block Illstons order, finding that the downsizing could have broader effects, including on the nations food-safety system and health care for veterans. Illston directed numerous federal agencies to halt acting on the presidents workforce executive order signed in February and a subsequent memo issued by DOGE and the Office of Personnel Management. Illston was nominated by former Democratic President Bill Clinton. The labor unions and nonprofit groups that sued over the downsizing offered the justices several examples of what would happen if it were allowed to take effect, including cuts of 40% to 50% at several agencies. Baltimore, Chicago and San Francisco were among cities that also sued. Todays decision has dealt a serious blow to our democracy and puts services that the American people rely on in grave jeopardy. This decision does not change the simple and clear fact that reorganizing government functions and laying off federal workers en masse haphazardly without any congressional approval is not allowed by our Constitution,” the parties that sued said in a joint statement. Among the agencies affected by the order are the departments of Agriculture, Energy, Labor, the Interior, State, the Treasury and Veterans Affairs. It also applies to the National Science Foundation, Small Business Association, Social Security Administration and Environmental Protection Agency. The case now continues in Illston’s court. Mark Sherman, Associated Press
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E-Commerce
The “No Tax on Tips” provision, passed and signed into law on July 4 as part of President Donald Trump’s One Big Beautiful Bill Act, allows eligible tipped workers to deduct a portion of their income from tips on their federal income taxes. There is a catch: It’s only a temporary provision, expiring in 2028 when Trump leaves office at the end of his second term. But the good news is that eligible workers can start deducting up to $25,000 of reported tip income for their upcoming 2025 tax year. Here’s what else to know. How ‘No Tax on Tips’ affects tax filing and paychecks This is a deduction, not an exemption, which means tipped workers will still need to report their tips when filing their taxes, instead of having the tips automatically taken out of taxable income, per Kiplinger. The No Tax on Tips provision also does not eliminate payroll taxes (like Social Security and Medicare) on tips, so you’ll still need to pay those. Who qualifies for ‘No Tax on Tips’? The No Tax on Tips deduction applies for those earning income up to $150,000 a year, or $300,000 for joint filers, which will be adjusted each year for inflation. Furthermore, it applies for “customarily tipped” workers. The U.S. Treasury Department and Internal Revenue Service (IRS) have yet to issue guidance on which jobs and occupations qualify, so stay tuned. However, the bill is likely to apply to workers that rely on tips, such as hair stylists, nail techs, restaurant servers, and bartenders, per Kiplinger. As Fast Company previously reported, No Tax on Tips also expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips, to include payroll taxes paid on tips received in connection with certain beauty services, just like for restaurants. No tax on overtime pay Finally, the No Tax on Tips provision also applies to overtime pay, and a deduction will be available to eligible taxpayers regardless of whether they itemize. However, filers will have to provide their Social Security number on their 1040 form (or that of their spouse when filing jointly) in order to claim the deduction.
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E-Commerce
To say Americans are grappling with economic uncertainty is an understatement. From boomerang tariff policies to the high cost of living, inflation, and mass layoffs, many people are increasingly worried about the economy and their ability to stay afloat. One way that’s affecting Americans? Their budgeting habitswith many now engaging in what’s called “vibe-based budgeting,” according to a report from Intuit Credit Karma. Here’s what to know. What is vibe-based budgeting? New data from Intuit Credit Karma showed that 44% of Americans have engaged in vibe-based budgetingadjusting their spending and financial habits based on “how the economy feels,” even if their personal financial situation hasnt actually changed. Over half of younger Americans admitted to budgeting this way (56% of Gen Zers and 57% of millennials). That mindset is tied directly to recent news about the economy, both on and off social media, according to Intuit Credit Karma. The data showed many Americans believe that prices are climbing rapidly (44%), their finances are unstable (34%), and a recession is just around the corner (28%)with 61% reporting they are more anxious about the economy now than they were a year ago. A bleak picture but a better reality In contrast to that bleak economic picture, when survey respondents were asked to drill down on their own finances, half (51%) reported having a positive monthly cash flow, and nearly three-quarters (72%) replied their cash flow has actually improved or stayed the same over the past six months. However, 48% said that media coverage and changing economic conditions have made them second-guess their financial standing. In short, the findings show a gap between how those surveyed feel about the state of the economy and the future, versus how they are actually doing financially. It also showed that their anxiety over the economy is making them more deliberate about how they manage their money, with 45% of those concerned about the economy reporting they have cut back on nonessential spending such as eating out, and 38% avoiding new debt or loans. The good news is that those who have adjusted their budget have a more optimistic outlook: 38% said they expect their financial situation to improve in the coming year. The Intuit Credit Karma findings are based on data from a Qualtrics online survey that ran last month from June 13 to June 17, among 1,058 adults ages 18 and older.
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E-Commerce
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