Good morning, and a warm welcome to all our new subscribers. In today’s edition:

• 💰 CA Dems endorse billionaire tax
• 🏈 Ohio St. leads preseason CFB poll
• 👶 Best and worst states to have a baby

…and much more.

Ready, Set, Go: Today’s news should be a ~3.66-minute read (973 words).

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"By seeking and blundering we learn."

–Johann Wolfgang von Goethe (1749-1832)

California’s Democratic party has endorsed the state’s proposed 5% wealth tax on all billionaires in the state, after a weekend meeting on Sunday cleared the 60% threshold needed to overcome objections and win the endorsement.

Quick background: The ballot initiative would impose a one-time 5% tax on individuals with a net worth of $1+ billion who lived in California as of January 1, 2026, depending on whether the voters approve or reject it in the November election.

• It would apply to ~200 billionaires across the state, imposing a 5% tax on most of their high-value assets like stocks, privately held businesses, art, collectibles, and intellectual property.
• The measure wouldn’t apply to pensions, retirement accounts, or real estate owned directly.

California’s proposal is projected to generate ~$100 billion in revenue over five years for the state, with the funds intended to offset recent federal cuts to state health programs.

The arguments

Supporters of the proposed billionaire tax, including progressive politicians Sen. Bernie Sanders (I-VT) and US Rep. Ro Khanna (D-CA), healthcare workers unions, and other labor orgs, frame the measure as a way for the state’s wealthiest residents to support public services without significantly altering their lifestyles.

They also argue that billionaires are among the largest beneficiaries of recent federal changes that cut funding from state health programs, with the money mostly used to offset federal tax breaks for the very wealthy, and that this new tax ensures they pay their fair share.

On the flip side: Critics of the proposal include business groups, tech leaders, Republicans, Gov. Gavin Newsom (D) and gubernatorial candidate Xavier Becerra (D-CA). They argue that imposing a wealth tax at the state level will simply prompt billionaires to relocate, shrinking a tax base that already accounts for a large share of California’s revenue.

• Others raise concerns about how the tax would be implemented, noting the challenges of determining residency and accurately valuing complex assets.
• They also caution that a one-time tax on billionaires is merely a short-term solution that doesn't solve California’s fundamental financial issues, but rather kicks the can down the road.

What do voters think?...More than half of Californians (54%) support the proposed billionaire tax, while 45% oppose and 1% are undecided, per the most recent polling from Public Policy of California.

Looking ahead: The billionaire tax isn't the only tax measure on California's ballot. Voters will also consider Propositions 41 and 42, which would make it harder to approve future special taxes and would ban new taxes on the ownership of assets like stocks and business interests, respectively. If either measure passes, the billionaire tax would not take effect, even if voters also approve it.

📊 Flash poll: Do you support or oppose California’s new proposal to impose a one-time 5% wealth tax on billionaires?

• Support
• Oppose
• Unsure/other

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BUSINESS & MARKETS

• 📈 US stocks close up across the board, with the S&P 500 and Dow reaching new all-time closing highs (S&P: +1.8% | Dow: +1.7% | Nasdaq: +2.6%).
• 🎥 Paramount’s antitrust lawsuit against the dozen states suing to block its $81 billion takeover of Warner Bros. Discovery will begin in March, California judge rules.
• 🚀 SpaceX reports better-than-expected revenue and a lower-than-expected loss in Elon Musk-led company’s first earnings report since its record IPO in June; shares fall ~7% after-hours amid surging capital expenditures.

SPORTS, MEDIA & ENTERTAINMENT

• 🏈 College football: Ohio State leads the preseason Top-25 Coaches Poll for the first time since 2015. | Major NFL contracts: Atlanta Falcons RB Bijan Robinson reaches 3-yr extension worth up to $75 million, making him the NFL’s highest-paid running back by annual value; Chicago Bears OT Darnell Wright agrees to 4-yr extension worth up to $116 million, with $93 million guaranteed marking an NFL record for an offensive tackle. |
• 🥊 Brock Lesnar, former WWE and UFC champion, announces retirement from WWE following SummerSlam last weekend.
• 🎭 SNL and Wicked star Bowen Yang to make Broadway debut this fall in Tony-winning play Oh, Mary! | The Voice announces new celebrity edition to air in 2027, featuring host Keke Palmer and judges Joe Jonas, Queen Latifah, and Riley Green.

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SCIENCE, SPACE & EMERGING TECH

• 🥀 Scientists confirm flowering plant native to the mountains in southwest China is carnivorous, supporting a 150+-year-old prediction made by Charles Darwin.
• 🦠 Virginia health officials are investigating a case of dengue virus that’s the first locally acquired case ever confirmed in the commonwealth.
• 💩 The Cambrian explosion, a period ~540 million years ago when the ancestors of most animal groups arose, could have been partly set in motion by an explosion of feces from organisms that came before, new study suggests.

US, WORLD & POLITICS

• 🗳️ Primary elections took place yesterday in Kansas, Michigan, Missouri, Virginia, and Washington state.
• 🔥 Spokane resident arrested for allegedly starting one of several uncontained wildfires burning in Washington state; first-degree arson charge carries up to life in prison if convicted. | 🚫 Texas Gov. Greg Abbott halts approvals for new data centers until the state can audit projects seeking to connect to its electric grid.
• 🏛️ Senate Judiciary Committee votes 12–10 along party lines to advance acting AG Todd Blanche's nomination for attorney general, sending it to the full Senate; vote comes after Blanche formally rescinded a controversial Trump-backed $1.8 billion "anti-weaponization" payout fund.

☝️ The 10th Annual World Dog Surfing Championships took place over the weekend in Northern California, where some of the world’s most talented canine surfers hit the waves in front of hundreds of cheering fans. First-place honors in the small, medium, and large dog categories went to Bradley Cooper, Iza, and Rippin Rosie, respectively.

🤔 Did you know? Yoda and Miss Piggy were both voiced by legendary puppeteer Frank Oz, whose impressive résumé also includes Cookie Monster, Animal, and Bert (of Sesame Street’s Bert and Ernie).

📰 Worth a read: The wizard behind the names of billion-dollar companies

🖱️ What we’re clicking:

• The best and worst states to have a baby in 2026
• An ichthyosaur’s terrible, horrible, no good, very bad day
• Ariana Grande and the debate over health, privacy and celebrity

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According to IMDb, what are the top three rated live-action Spider-Man films?

(keep scrolling for the answers)

🎓 John Adesoye, 64, just became one of the most recent graduates from the University of the West of England. The father of five earned his nursing degree while studying alongside his son, and now hopes to purse his master's degree.

1. Spider-Man: Brand New Day (2026) – 8.2
2. Spider-Man: No Way Home (2021) – 8.1
3. Spider-Man 2 (2004) – 7.5

Source

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*Disclaimers: Please read the offering circular and related risks at invest.modemobile.com.

Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

Please read the offering circular and related risks at invest.modemobile.com.

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