News of the Day

The Transportation Security Administration is extending the current mandate for mask use on public transportation and in transportation hubs through April 18.

The mandate had been set to expire on March 18.

The extension is based on a recommendation from the Centers for Disease Control and Prevention. In a statement Thursday, TSA said the CDC will work on a “revised policy framework for when, and under what circumstances, masks should be required in the public transportation corridor.”

Like recent guidance regarding masks in other settings, the CDC says any revision will be based on the levels of COVID-19 at the community level, as well as on the risk of new variants, national data and the latest science.

The agency left the door open to an earlier termination of the policy, should the science support that.

The Wisconsin Department of Workforce Development (DWD) has released the 2022 Joint Taskforce on Worker Misclassification and Payroll Fraud report, which summarizes the task force’s activities throughout 2021 and includes multiple recommendations to strengthen Wisconsin’s ability to combat these forms of fraud.

The task force was created by Governor Evers on April 15, 2019, to evaluate current law and potential options, whether through change to statute or administrative rule, that will help prevent worker misclassification and protect thousands of workers while also leveling the playing field for businesses that follow the law.

The report included the following recommendations:

1. Direct agencies to continue to investigate and work with the Department of Justice to prosecute violations of misclassification laws, such as Wis. Stat. § 108.24(2) and (2m). Require the Department of Justice to make the names of the businesses prosecuted public.
2. Amend Wis. Stat. ch. 183 to require the disclosure of all members and managers of domestic and foreign Limited Liability Companies (LLCs) at organization or registration and in annual reports.
3. Amend Wis. Stat. ch. 183 to include a false filings provision and penalty.
4. Amend Wis. Stat. ch. 183 to provide for limited enforcement authority by DFI to investigate and refer violations to the Attorney General to enjoin LLC.
5. Direct the Department of Revenue and Department of Workforce Development to create and adopt a unified worker classification questionnaire.

DWD Secretary-designee Amy Pechacek also announced that the work of the task force has concluded with the issuance of the report.

For more information on the work of the Joint Enforcement Task Force on Worker Misclassification and Payroll Fraud please visit the Joint Enforcement Task Force on Payroll Fraud and Worker Misclassification website.

President Joe Biden on Wednesday signed an executive order on government oversight of cryptocurrency that urges the Federal Reserve to explore whether the central bank should jump in and create its own digital currency. Under the executive order, Biden also directed the Treasury Department and other federal agencies to study the impact of cryptocurrency on financial stability and national security.

The executive order had been widely anticipated by the finance industry, crypto traders, speculators and lawmakers who have compared the cryptocurrency market to the Wild West.

Despite the risks, the government said, surveys show that roughly 16% of adult Americans — or 40 million people — have invested in cryptocurrencies. And 43% of men age 18-29 have put their money into cryptocurrency.

As for the Federal Reserve getting involved with digital assets, the central bank issued a paper in January that said a digital currency “would best serve the needs” of the country through a model in which banks or payment firms create accounts or digital wallet.

Adam Zarazinski, CEO of Inca Digital, a crypto data company that does work for several federal agencies, said the order presents the opportunity to provide “new approaches to finance.”

“The U.S. has an interest in growing financial innovation,” Zarazinksi said. He added that China and Russia were looking at crypto and building their own currency. More than 100 countries have begun or are piloting their own digital sovereign currency, according to the White House.

Katherine Dowling, general counsel for Bitwise Asset Management, a cryptocurrency asset management firm, said an executive order that provides more legal clarity on government oversight would be “a long term positive for crypto.”

But Hilary Allen, a financial regulation professor at American University, cautioned against moving too fast to embrace cryptocurrencies.

“I think crypto is a place where we should be putting the brakes on this innovation until it’s better understood,” she said. “As crypto becomes more integrated into our financial system it creates vulnerabilities not just to those who are investing in crypto but for everybody who participates in our economy.”

On Tuesday, the Treasury Department said its financial literacy arm would work to develop consumer-friendly materials to help people “make informed choices about digital assets.”

In a joint letter to U.S. House Speaker Nancy Pelosi, U.S. House Minority Leader Kevin McCarthy, U.S. Senate Majority Leader Chuck Schumer, and U.S. Senate Minority Leader Mitch McConnell, Governor Evers joined several governors in urging quick passage of The Gas Prices Relief Act of 2022, which would lower gas prices through the end of 2022.

According to the American Automobile Association, the average price of gas in Wisconsin is currently $3.942 per gallon compared to $3.377 just one week ago on March 1 and $2.646 per gallon at this time one year ago.

The Gas Prices Relief Act would: suspend the 18.4 cents per gallon federal gas tax until Jan. 1, 2023; require the Secretary of the U.S. Department of Treasury to monitor the program in order to ensure oil and gas companies pass along the savings at the pump to consumers; encourage the secretary to take appropriate enforcement actions to ensure consumers see these savings; and maintain the integrity of the Highway Trust Fund by requiring the U.S. Department of Treasury to make general fund transfers to keep the Highway Trust Fund solvent.

“From rising costs in grocery store aisles and at gas pumps to affording the costs of childcare and caregiving, I know folks and families are feeling the pressure of everyday costs going up,” said Gov. Evers. “Wisconsinites can’t wait for relief—they need help today. I’m urging Congress to find common ground and take action now to help lower gas prices so we can make sure families, farmers, and small businesses can make ends meet.”

President Biden is expected to announce Tuesday that the U.S. will ban Russian oil, natural gas and coal imports as part of his administration’s response to Russia’s invasion of Ukraine. A source familiar with the plans confirmed to The Hill that Biden intends to announce the ban, which was first reported by Bloomberg.

The White House said in updated guidance Tuesday morning that Biden will speak at 10:45 a.m. and will “announce actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine.”

The White House in recent days has been reticent to ban the imports as gas prices have soared, but there have been growing calls from members of both parties to ban Russian oil as punishment for Moscow’s invasion of Ukraine.

Gov. Tony Evers today signed Assembly Bill 717 to assist Wisconsin restaurants as they continue to rebound and recover.

“Wisconsin’s restaurants play critical roles our communities, bringing people together, bolstering tourism and travel, and providing unique experiences to residents and visitors each day,” said Gov. Evers. “They’ve shown amazing resilience, ingenuity, and flexibility over the last two years, but I know it hasn’t been easy and many are still struggling due to supply chain challenges, inflationary costs, and workforce challenges our state has faced for years. I am glad to sign these bills today to help relieve a little bit of stress and worry for business owners as they head into tax season.”

Assembly Bill 717, now 2021 Wisconsin Act 156: 

• Creates an exemption under the Wisconsin individual income tax for grants received from the Restaurant Revitalization Fund established under the American Rescue Plan Act of 2021; and
• Provides that expenses paid for by the proceeds of the grants are deductible if they would otherwise be ordinarily deductible, conforming to the tax treatment adopted for Paycheck Protection Program forgiven loans and other assistance programs created in response to the COVID-19 pandemic. 

In addition to signing Assembly Bill 717, Gov. Evers also signed Senate Bill 339, now 2021 Wisconsin Act 157, which:

• Federalizes Wisconsin’s treatment of the net capital loss deduction by increasing the amount of ordinary income that may be offset by net capital losses from $500 to $3,000 beginning in tax year 2023; and
• Extends the increased maximum net capital loss offset to tax option corporations electing to be taxed at the entity level. 

The Wisconsin Supreme Court ruled Thursday it would use the “least changes” redistricting plans submitted by Governor Tony Evers as Wisconsin’s congressional and legislative district maps for the next decade. In the 4-3 decision, conservative swing Justice Brian Hagedorn wrote that of all the plans submitted, Evers’ plan best complied with criteria laid out by the court and met all the requirements of the Wisconsin and United States constitutions.

Choosing Governor Evers maps over competing plans submitted by Republican members of Congress and the Legislature was, under the circumstances, a win for Democrats. In the Legislature, it could mean the difference between simple Republican majorities and supermajorities that could override any governor’s vetoes.

While the state Supreme Court’s say is typically final in the state court system, Justices Ziegler and Roggensack took the unusual steps of suggesting appeals to the U.S. Supreme Court, suggesting Evers’ plan amounted to a racial gerrymander.

Compliance with the federal Voting Rights Act, or VRA, is likely to be a key part of any future litigation. Evers’ map creates seven majority-Black districts, one more than the 2011 map. Hagedorn wrote that Evers’ map gives minority voters better representation. “The risk of packing Black voters under a six-district configuration further suggests drawing seven majority-Black districts is appropriate to avoid minority vote dilution,” Hagedorn wrote.  However, Ziegler wrote the creation of a new majority-Black district was premature, arguing no clear violation of the Voting Rights Act was shown by Evers.

It would be unusual, though not unheard of, for the U.S. Supreme Court to hear an appeal of the Wisconsin Supreme Court’s redistricting ruling.  The map could still be challenged on a more limited basis in an ongoing federal lawsuit brought by Democrats. That case had remained largely dormant while the state lawsuit proceeded.

The United States imports Russian oil, but it is not highly dependent on the country for its supplies.

In 2021, the U.S imported an average of 209,000 barrels per day (bpd) of crude oil and 500,000 bpd of other petroleum products from Russia, according to the American Fuel and Petrochemical Manufacturers (AFPM) trade association.

This represented three percent of U.S. crude oil imports and one percent of the total crude oil processed by U.S. refineries. By contrast, the U.S. imported 61 percent of its crude oil from Canada, 10 percent from Mexico, and six percent from Saudi Arabia in the same year.

According to the AFPM, imports of Russian crude oil have increased since 2019, when the U.S. imposed sanctions on Venezuela’s oil industry. U.S. refiners also temporarily boosted Russian imports last year after Hurricane Ida disrupted oil production in the Gulf of Mexico.

Federal Reserve Chair Jerome Powell will tell lawmakers Wednesday the central bank will likely hike interest rates later this month with inflation “well above” the central bank’s target range.

The Fed chief is set to tell members of the House Financial Services Committee that bank officials “expect it will be appropriate” to raise the baseline interest range from its current level of zero to 0.25 percent, according to prepared remarks released ahead of Powell’s appearance before the panel.

“We understand that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials like food, housing, and transportation. We know that the best thing we can do to support a strong labor market is to promote a long expansion, and that is only possible in an environment of price stability,” Powell will say.

The Fed slashed interest rates to near-zero levels in March 2020 as the emerging coronavirus pandemic derailed the global economy. The Federal Open Market Committee, the Fed’s monetary policy panel, is on track to hike interest rates at the conclusion of its meeting on March 15-16, almost two years to the day it cut rates to current levels.

Powell will highlight the rapid recovery of the U.S. economy from the depth of the pandemic-driven recession, including the record-breaking gain of 6.7 million jobs in 2021 and economic growth of 5.5 percent. The Fed chief credited the effectiveness of COVID-19 vaccines along with substantial fiscal and monetary support deployed by the federal government in 2020 for the swift rebound.

Even so, the speed of the recovery also fueled a rapid rise in prices as it ran up against stubborn pandemic-related obstacles, Powell will note.

“As a result, employers are having difficulties filling job openings, an unprecedented number of workers are quitting to take new jobs, and wages are rising at their fastest pace in many years,” Powell will say.

“Demand is strong, and bottlenecks and supply constraints are limiting how quickly production can respond. These supply disruptions have been larger and longer lasting than anticipated, exacerbated by waves of the virus, and price increases are now spreading to a broader range of goods and services.”

U.S. retailer Target has announced it will adopt a minimum wage system that will pay company employees up to $24 an hour.

In a statement on Monday, the Minneapolis-based retailer said that the new minimum wage will range from $15 to $24, depending on the job and local market. The system is also part of Target’s plan to spend an additional $300 million on its labor force, which includes expanded access to health care coverage and an enhanced benefits package for employees.

Some of Target’s rivals, including Best Buy, have raised their hourly minimum wages for employees during the COVID-19 pandemic.

Costco raised its hourly minimum wage from $16 to $17, and Amazon’s starting wage is $15 an hour, with an average starting wage for transportation and fulfillment jobs of $18 per hour.

Walmart boosted its hourly minimum wage for employees to $12 an hour, raising the hourly wages for more than 565,000 store workers by at least a dollar as well, the AP noted.