Nova Newsletter
March 13, 2025
☕ Good morning. 1,661 words for you today - 8-minute read.
The Spotlight
1. Blue States Renew Push To Tax The Rich
The interior of the House chamber at the Washington state Capitol is seen April 25, 2025, in Olympia, Wash. (AP Photo/Maddy Grassy, File)
Several U.S. states are reviving efforts to raise taxes on wealthy residents as lawmakers confront widening income inequality and budget pressures.
Takeaways
Washington state lawmakers are considering a nearly 10% tax on income over $1 million.
Similar proposals or policies are emerging in California, Rhode Island, Michigan and New York.
Supporters say the taxes could fund schools, childcare and other public services.
Critics warn higher taxes may drive businesses and wealthy residents to lower tax states.
Washington could soon become a key test case. Lawmakers approved a proposal that would generate billions for school meals, childcare and tax credits, and the governor has signaled support.
Elsewhere, advocates in California are pushing a 5% tax on billionaires’ assets, while Michigan organizers seek a ballot measure to replace the state’s flat income tax.
The growing divide highlights two competing strategies as some states raise taxes while others continue cutting them. Read More
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2. Ukraine Awaits U.S. Approval For Major Drone Deal
Ukraine is waiting for White House approval on a proposed U.S. partnership to produce drones and air defense systems, President Volodymyr Zelenskyy said.
Takeaways
The proposed agreement would produce drones and air defenses designed to counter large swarms of Shahed drones.
Kyiv proposed the deal last year but is still awaiting U.S. approval to sign it.
Russia has launched tens of thousands of Iranian-designed drones during the war.
Rising oil prices linked to the Iran conflict are boosting Russia’s war revenue.
Zelenskyy said the system would integrate multiple drone and air defense technologies to counter hundreds or thousands of incoming threats.
Ukraine has already developed low-cost drone interceptors that can destroy attack drones for only a few thousand dollars.
The agreement could strengthen Ukraine’s long-term defense capacity and influence future negotiations with Russia. Read More
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3. South Korea Passes Bill For $350B U.S. Investment
(Photo by Woohae Cho/Getty Images)
South Korea’s parliament approved a special law to manage a planned $350 billion investment in the United States tied to a recent trade deal with Washington.
Takeaways
The bill creates a state-run corporation to oversee the $350 billion investment.
The package includes $150 billion for shipbuilding and $200 billion for strategic industries.
The move follows tariff pressure from President Donald Trump, who threatened duties up to 25%.
The U.S. also launched Section 301 investigations into South Korea and 15 other trade partners.
The government-backed corporation will manage investments capped at $20 billion per year across targeted industries.
The legislation provides the legal framework needed for Seoul to fulfill commitments tied to its tariff agreement with Washington.
The development highlights rising trade tensions and strategic investment competition between major economies. Read More
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Quick Headlines
Stryker office (Getty Images, FILE)
Medical tech company Stryker reported a global network disruption after pro-Iran group Handala claimed it wiped 200,000 systems and extracted 50TB of data in retaliation for attacks in Iran, though the company says there’s no malware or ransomware. Read More
Average 30-year U.S. mortgage rate rose to 6.11% this week, back to its level from five weeks ago, amid bond market jitters over the Iran war, while 15-year rates climbed to 5.5%, signaling continued pressure on homebuyers. Read More
Several Democratic-led states, led by New Mexico, are passing laws barring armed federal officers from polling sites and limiting federal intervention in elections, citing distrust of the Trump administration’s immigration and election policies ahead of the 2026 midterms. Read More
Britain is removing the remaining hereditary peers from the House of Lords, ending a 700-year tradition as the upper chamber transitions to a merit-based system dominated by life-appointed members. The change will take effect this spring once King Charles III grants royal assent. Read More
U.S. officials report struggles removing American personnel from Iraqi facilities under attack, with some flown out by the British RAF due to hazardous conditions and limited U.S. military capacity. A drone strike recently hit Baghdad’s diplomatic support center, sending three guards to the hospital. Read More
The US launched a Section 301 investigation into China, the EU, India, and 12 other countries after the Supreme Court struck down Trump’s tariffs, potentially imposing new import levies by summer to protect American industry. Talks with China this weekend could set up a March meeting between Trump and Xi Jinping. Read More
Deep Dive
4. Iran’s New Leader Signals Escalation as Gulf War Expands
Rouzbeh Fouladi/Middle East Images/AFP via Getty Images
Iran’s newly installed supreme leader issued a statement Thursday vowing to keep the Strait of Hormuz closed and continue attacks on U.S. bases as the war with the United States and Israel entered its 13th day.
Takeaways
Mojtaba Khamenei, son of slain leader Ayatollah Ali Khamenei, appears to have issued his first wartime statement since taking power.
Iran pledged to keep the Strait of Hormuz closed, threatening a shipping route that carries about 20 percent of global oil supply.
The U.S. and allies plan to release 400 million barrels of oil from emergency reserves to stabilize markets.
The conflict is widening across the Gulf with missile and drone attacks reported in the UAE, Kuwait, and Saudi Arabia.
A Pentagon investigation is examining a strike on an Iranian girls’ school that killed at least 165 civilians, many of them children.
Iranian state media broadcast the message attributed to Mojtaba Khamenei, though the remarks were read aloud by another person while his image appeared on screen. Officials have not confirmed the leader’s location or condition. Israeli sources previously suggested he was lightly injured early in the war.
The statement framed the conflict as retaliation for Iranian “martyrs,” including victims of the Minab girls’ school strike. A preliminary Pentagon assessment suggests the strike may have been caused by a U.S. missile targeting a nearby military site, though a full investigation could take months.
Meanwhile, the economic stakes are rising quickly. Iran and allied forces have stepped up attacks on energy infrastructure and shipping, including strikes on oil tankers near Iraq’s southern port of Basra. Oil markets have surged amid fears that prolonged disruption in the Gulf could choke global supply.
To blunt the shock, the International Energy Agency confirmed a coordinated release of 400 million barrels from emergency stockpiles, including 172 million barrels from the U.S. Strategic Petroleum Reserve.
Control of the Strait of Hormuz is quickly becoming the war’s most powerful economic weapon. Read More
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On Our Radar
5. Big Tech Backs Anthropic In AI Free Speech Fight
Reuters
Major U.S. tech companies are backing Anthropic in a lawsuit challenging the Trump administration after the Defense Department labeled the AI firm a “supply chain risk.”
Takeaways
Google, Amazon, Apple and Microsoft filed briefs supporting Anthropic’s case.
The Defense Department labeled the AI company a security risk after it refused to allow its tools for mass surveillance or autonomous weapons.
Tech leaders warn the move could set a precedent for government retaliation against private companies.
Meta did not join the coalition supporting Anthropic.
Anthropic says the government retaliated after it publicly defended limits on how its AI systems can be used. The company argues the action violates free speech protections.
Government lawyers have not denied contacting Anthropic customers and encouraging them to stop using the company’s tools.
The case could shape how far the government can pressure AI firms over national security and technology policy. Read More
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6. House Probes Epstein Finances In Accountant Testimony
U.S. lawmakers questioned Jeffrey Epstein’s longtime accountant as part of a congressional investigation into the financier’s wealth and business connections
Takeaways
Epstein’s former accountant Richard Kahn testified in a closed-door House deposition.
Lawmakers say Epstein earned hundreds of millions through financial advising and tax planning.
The financier had financial ties with several wealthy figures and institutions.
Investigators have reviewed more than 40,000 banking documents tied to Epstein’s network.
Committee leaders said the testimony helps explain how Epstein built and managed his fortune while maintaining relationships with powerful figures.
Lawmakers also confirmed Epstein was connected to at least 64 business entities, raising questions about how his operations were structured.
The investigation aims to determine how financial networks may have enabled Epstein’s criminal activities for years. Read More
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8. 🎉 This day in history
On This Day — March 13
Discovery of Uranus, 1781– William Herschel discovers the planet Uranus, the first planet found with a telescope, doubling the known size of the Solar System and advancing modern astronomy.
Earmuffs Patented, 1877– Chester Greenwood receives a patent for earmuffs, creating a practical accessory that protects against cold weather.
Microsoft Goes Public, 1986– Microsoft launches its initial public offering, a landmark event that helps shape the personal computing and tech industry worldwide.
Life Hack of the day
🧼🚪 Rub a Bar of Soap on Squeaky Hinges
Got squeaky door hinges? Rub a bar of soap directly onto the hinge pins. The soap acts as a lubricant, quieting the squeak instantly. It’s a quick, simple fix without needing oil or spray.
That’s your morning brief. Now go show someone how smart you are. 🧠
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