Today's News You Need2Know

• Trump: I’d ‘love’ to raise taxes on millionaires

• X sues to overturn deepfakes ban

• Labor group sues Starbucks

• Jersey Mike's gets new CEO after 50 years

• Throwback Monday! Motorola unveils new RAZR

Companies mentioned in today’s newsletter

$TSLA ( ▲ 0.33% )  $SBUX ( ▲ 0.11% )  $JSAIY ( ▲ 0.32% )  $BX ( ▲ 1.25% )  $WING ( ▼ 1.16% )  $MSI ( ▲ 0.18% )  $GOOGL ( ▼ 0.83% )  $META ( ▲ 0.45% )  $MSFT ( ▼ 0.18% )

Trump: I’d ‘love’ to raise taxes on millionaires

The idea of taxing millionaires is stirring up controversy among Republicans. As Congress works on a sprawling tax plan combined with federal spending cuts—a signature policy push for former President Donald Trump—the question of increasing taxes on the wealthy has ignited a debate within the Republican Party.

Trump himself has sent, let’s say, mixed signals on the matter. While he once expressed that he’d “love” to see wealthier Americans contribute more, he now dismisses the idea as “disruptive.” Speaking from the Oval Office this week, Trump warned that a millionaire tax could drive wealthy individuals to leave the country, ultimately reducing federal revenue. Yet, in a separate interview with Time magazine, he also revealed, “I actually love the concept, but I don’t want it to be used against me politically.”

The proposal has drawn sharp lines between two factions of the GOP. On one side, populist-nationalists like former Trump adviser Steve “Shirts on Shirts” Bannon argue for a tax hike targeting households earning over $1 million annually. “The current system we have is not sustainable,” Bannon said at the Semafor World Economy Summit, adding that raising taxes on the wealthy could be a way to offset the ballooning $36 trillion federal debt. He labeled the move a necessary adjustment, along with budget cuts.

On the other side, the Republican establishment, including figures like Newt Gingrich and anti-tax advocate Grover Norquist, remains firmly opposed. Gingrich labeled the idea as “madness,” warning it could fracture the GOP and lead to a political disaster reminiscent of George H.W. Bush’s infamous “Read my lips: No new taxes” moment in the 1988 election, which cost him reelection in 1992 after he agreed to new taxes in 1990.

House Speaker Mike Johnson, R-La., has aligned himself with the traditional GOP position, stating, “I don’t think we’re raising taxes on anybody,” even as some members wrestle with the long-term fiscal implications of unfunded tax cuts.

As it stands, the 2017 Trump-era tax cuts are set to expire, potentially increasing the top individual rate from 37% back to 39.6%. Meanwhile, Republicans are crafting a $5 trillion package that includes extending those cuts and introducing new deductions, including exemptions for tips, overtime, and Social Security income. However, finding ways to pay for it—without raising taxes or deeply slashing federal programs like Medicaid or food stamps—is proving to be a challenge.

Analysts suggest that raising the top tax rate to 40% on incomes over $1 million could generate $300 billion over the next decade. That’s about $68.8 billion less than Elon Musk’s net worth. But whether such a measure can pass in a tightly divided Congress remains highly unlikely, especially with Democrats prepared to oppose the package and Republicans scrambling to keep their slim majority united.

The debate over taxing millionaires has not only divided the GOP but also exposed deeper tensions about the future direction of the party, particularly after 2028. Have your say in today’s poll 👇🏻

X sues to overturn deepfakes ban

Elon Musk’s social media platform, X (formerly Twitter), is at the center of controversy as it challenges Minnesota’s ban on political deepfakes, claiming the law infringes on First Amendment protections.

The ban, enacted in 2023, imposes criminal penalties for creating or sharing convincing AI-generated content intended to harm candidates or influence elections, especially near voting periods. Musk’s company argues the law erodes democracy by criminalizing innocuous, election-related speech, including satire and humor, and places undue liability on platforms to police content. X filed a federal lawsuit last week.

State Senator Erin Maye Quade — the Democrat who authored the law — criticized Musk’s objections: “Of course he is upset that Minnesota law prevents him from spreading deepfakes meant to harm candidates and influence elections. Minnesota’s law is clear and precise, while this lawsuit is petty, misguided, and a waste of resources,” she said.

Legal experts like Alan Rozenshtein, a law professor at the University of Minnesota, believes the law risks being struck down, explaining that the First Amendment doesn’t have an exception for false or misleading political speech, even lies.

The case echoes Musk’s broader pushback against similar laws in California and raises significant questions about how societies regulate misinformation without overstepping constitutional rights. Minnesota Attorney General Keith Ellison’s office has promised a thorough review of Musk’s lawsuit before responding. Meanwhile please send me your Elon Musk deepfakes.

Today on the ‘gram

Post of the day: @normaldad

Labor group sues Starbucks

It’s not quite Pumpkin Spice Latte season, but it appears to be Spicy Lawsuit season:

“Consumers are paying obscene amounts for a cup of Starbucks $SBUX ( ▲ 0.11% ) coffee that was harvested by trafficked slaves,” said International Rights Advocates founder Terry Collingsworth, who is representing the plaintiffs. “It is time to hold Starbucks accountable for profiting from human trafficking.”

The organization filed a lawsuit in U.S. District Court last week accusing the coffee giant of sourcing coffee from farms tied to forced labor violations in Brazil. The lawsuit, brought on behalf of eight Brazilian coffee farm workers, claims that Starbucks continued to purchase coffee from the Cooxupe cooperative despite repeated citations from Brazilian authorities regarding slave-like working conditions on member farms.

The workers allege they were deceived by promises of fair pay and proper working conditions, only to face appalling realities—filthy housing and wages docked for basic necessities like food and equipment. Starbucks has denied the allegations, asserting that their sourcing practices adhere to strict labor and environmental standards, backed by third-party audits. The company emphasized that it only purchases coffee from a small subset of Cooxupe’s 19,000 farm members.

Should you check your 401(k) today?

👍️ 

Yep. The $SPX ( ▲ 0.06% ) is back within 11 percent of its February record.

Jersey Mike's gets new CEO after 50 years

For the first time in decades, Jersey Mike’s Subs is undergoing a leadership change. After nearly 50 years as CEO, founder Peter “Don’t Call Me Mike” Cancro is stepping down following the $8 billion sale of the fast-growing sandwich chain to Blackstone $BX ( ▲ 1.25% ) .

Effective April 28, Charlie Morrison, the former CEO of Wingstop $WING ( ▼ 1.16% ) , will take the helm as Jersey Mike’s new leader.

Morrison, known for spearheading Wingstop’s meteoric growth and managing its successful IPO, has been tasked with accelerating Jersey Mike’s expansion both in the U.S. and internationally. Cancro expressed confidence in Morrison, calling him the “ideal” candidate to guide the chain through its next chapter of growth while he goes off and counts his $8 billion in the Bahamas.

Despite stepping back from day-to-day operations, Cancro will remain involved as chairman of the board and a significant minority shareholder. From the Bahamas, I hope. Please, God, tell me he’s not staying in New Jersey with that money.

Cancro’s journey with Jersey Mike’s is a remarkable entrepreneurial story. Starting as a high school student at the original New Jersey store in 1971, he purchased the business (presumably from Mike?) at just 17 years old. Under his leadership, the chain grew to 3,000 locations, becoming a fierce competitor to Subway and ranking as the second-largest sandwich chain in sales.

Quote of the Day: House Speaker Mike Johnson

Throwback Monday! Motorola unveils new RAZR

Motorola $MSI ( ▲ 0.18% ) has launched the 2025 Razr lineup in New York City, where much attention was given to the innovative AI features. Moto AI includes powerful tools powered by both in-house and third-party large language models like Meta's $META ( ▲ 0.45% ) Llama and Google’s $GOOGL ( ▼ 0.83% ) Gemini. Perplexity AI and Microsoft’s $MSFT ( ▼ 0.18% ) Copilot are also preinstalled.

The phones promise enhanced utility from features like “Catch Me Up,” which prioritizes notifications, “Remember This,” for recalling stored information on demand, and “Pay Attention,” which transcribes conversations and provides summaries. The new Razr phones will be available for pre-order starting May 7, with official sales beginning on May 15.

Poll of the Day: Tax the rich! Or don’t!

Results from Friday’s poll: 18% of you have used AI in your work without disclosing it! 🤫 Naughty!

We asked: Have you used AI in your work without disclosing it?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ Yes and don't tell anyone. (63)

🟩🟩🟩🟩🟩🟩 👎🏻 NO, I DEFINITELY HAVEN'T, and click here to find out more! (283)

346 Votes — via @beehiiv polls

Don’t miss: ‘NYC Innovates’

Our new “NYC Innovates” show goes live today wherever you watch Cheddar, but those of you who want to watch it before the big premiere can check it out on YouTube!

"NYC Innovates" uncovers the groundbreaking ideas and passionate minds driving the city's evolution across diverse industries. In this episode, join host Chris Castellino as he explores remarkable transformations.

Witness how the iconic, Michelin-starred restaurant Eleven Madison Park, under Chef Daniel Humm's visionary leadership, made the bold pivot to an entirely plant-based menu. Plus: Dive into the resilient spirit of NYC's music scene at Le Poisson Rouge. Learn how this fiercely independent Greenwich Village venue, founded by David Handler, thrives amidst industry giants by championing eclectic artists and fostering a unique connection with its audience. Finally, journey to a Brooklyn startup, Air Company, where CEO Gregory Constantine reveals how they're tackling climate change head-on by transforming captured carbon dioxide into valuable, sustainable products — from premium vodka to revolutionary jet fuel, partnering with major airlines and even the Department of Defense. Tune in, and be inspired!