In America, two things are certain: taxes and people going to court to pay less of them.

The Supreme Court will hear arguments today in Moore v. US, one of the most important tax cases in recent history. The lawsuit, which could cost the US trillions of dollars in revenue, invalidate big swaths of the current tax system, and doom the possibility of a billionaire tax, hinges on a couple suing the US over $14,729.

How we got here: In 2018, due to changes to the tax law implemented the prior year, Charles and Kathleen Moore paid nearly $15,000 as a one-time repatriation tax on profits held overseas. Now, the Moores are suing the federal government, claiming that they didn’t receive any profit from their investment and, therefore, can’t be taxed. Two lower courts have ruled against them.

Now, the Supreme Court will decide the fate of the US tax code as we know it based on what exactly counts as income, specifically, whether or not income has to be “realized,” or received, to be taxed under the 16th Amendment.

What this means for the tax code

While the Moores contend that the tax they paid was unconstitutional, a lot of longstanding business tax rules would get swept away if they triumph—so many, in fact, that former Republican Speaker of the House Paul Ryan (who helped write the 2017 tax law being challenged) said that if the Moores win, it would “effectively eliminate a third of the tax code.”

Experts worry that beyond upending the system and costing the US tax dollars, a decision in favor of the Moores could also open the government to more litigation over the 2017 tax law, which the DOJ estimates would cost the US $340 billion in tax revenue over the next decade.

Over in the West Wing, President Biden favors using a so-called billionaire’s minimum tax to help lessen the federal deficit. But if SCOTUS rules for the Moores, any proposed tax on unrealized capital gains—which are the investments that make billionaires, well, billionaires—would be impossible.

Looking ahead…the court will likely deliver its decision this summer just as the presidential election campaign heats up.—CC

Lithium is the essential resource powering the modern world. So much is needed that lithium demand is projected to soar 20x by 2040, outstripping supply.

So how will the world find enough lithium for EVs, smartphones, and clean tech?

Meet Teague Egan. He founded EnergyX to make lithium production faster, cheaper, and cleaner. And it’s turning into a massive opportunity for investors.

EnergyX’s tech can extract 300% more lithium than traditional methods. It's so powerful that General Motors is already partnering with Teague and EnergyX to secure lithium for their EVs. GM even led EnergyX’s $50m funding round.

Now Brew readers have the opportunity to invest in EnergyX, too. Become an EnergyX shareholder and transform the future of renewable energy.

White House warns Ukraine funding is about to run out. In letters to Congressional leaders, the White House’s budget chief, Shalanda Young, cautioned that if additional funding for Ukraine isn’t approved before the year ends, the US cannot continue equipping it to fend off Russia’s invasion. “There is no magical pot of funding available to meet this moment. We are out of money—and nearly out of time,” the letters said. Ukraine aid has become a political flashpoint that factored into the fight over the speaker of the House role, as some Republicans object to providing the nation with more cash or want the funds paired with other budgeting priorities like border security.

Former US diplomat accused of spying for Cuba. Federal prosecutors have charged Manuel Rocha, a 73-year-old who served as ambassador to Bolivia and worked for years in Latin America in the US foreign service, with “clandestine activity” on Cuba’s behalf going back as far as the beginning of his career in 1981. The government claims Rocha boasted of his spying to an undercover FBI agent, calling the US “the enemy.” Attorney General Merrick Garland said the case “exposes one of the highest-reaching and longest-lasting infiltrations of the United States government by a foreign agent.”

SCOTUS looks split on $6 billion Sackler settlement. The Supreme Court appeared torn oral arguments yesterday over the fate of a over the fate of a settlement struck as part of OxyContin-maker Purdue Pharma’s bankruptcy. The deal gives money to victims of the opioid crisis but frees the Purdue-owning Sackler family from future liability—even though they didn’t personally file for bankruptcy. Some justices probed the repercussions of throwing out the settlement, which would leave victims back at square one and remove a dealmaking tool that’s been used in bankruptcies for decades. Others considered whether such deals harm the bankruptcy process. A decision is expected by the end of the court’s term in June.

Days after virtually placing you in a random college town based on your listening habits, Spotify struck a somber note by saying it will let 1,500 employees go. CEO Daniel Ek announced yesterday that the company is cutting 17% of its workforce in order to hit financial targets.

What’s wrong?

Ek cited the need to “rightsize” costs amid an economic slowdown and high interest rates. The Swedish music platform had been bleeding cash after going on a hiring spree during the pandemic to pursue aggressive expansion goals.

• Though Spotify turned a higher-than-expected profit in Q3 following a subscription price hike in July, the company still lost around $500 million in the first nine months of the year.
• It posted strong user growth last quarter, but its acquisition of paying subscribers in North America appears to be slowing down.

The latest cuts add to the approximately 800 employees Spotify has already dismissed this year in two waves of layoffs, partly because of investors’ disappointment with its big bet on podcasting. In a sign that Wall Street now prefers profits over growth, Spotify’s stock rose over 7% on news of the job cuts yesterday. 

Zoom out: The tech industry has shed more than 240,000 jobs so far this year (50% more than last year) as giants like Meta and Alphabet streamlined in response to macroeconomic challenges.—SK

Finally, here’s a story for those of you who skip right to the bottom of the newsletter for the crossword puzzle. Hearst Communications—the owner of publications like Popular Mechanics, Cosmopolitan, and Esquire—announced yesterday that it acquired Puzzmo, an indie virtual puzzle platform.

The publisher is playing for your puzzle attention because games are now big business for media companies. Wordle, the only thread holding your high school group chat together, sold itself to the New York Times in 2022 for an undisclosed amount, reportedly in the low seven figures. Even Apple News introduced its own crossword puzzles for subscribers last month.

What we know about Hearst’s attempt to give Connections some competition: Puzzmo, which launched in October, was created by game developers Zach Gage and Orta Therox. The site’s homepage offers a selection of classic games like the almighty crossword and new creations like “Really Bad Chess.” The price and terms of the acquisition weren’t disclosed, but Hearst said it will start rolling out Puzzmo’s games to its magazines’ digital subscribers.

• Hearst will also license games to other publishers, allowing customization.
• Gage and Therox will stay on and develop Puzzmo’s mobile app.

We’re not surprised by the final picture…given that Hearst was an early investor in the platform.—MM

Stat: Has anyone considered adding canned beans and bunkers to their portfolios? Seems like a good time to be the type of investment people make when they’re worried about the stability of the system: Both gold and bitcoin have been popping off. Spot gold prices briefly hit an all-time high of over $2,100/ounce Sunday night, and yesterday, gold futures hit an intraday record by trading at $2,152, though both later pulled back a bit. Meanwhile, bitcoin surged past $41,000 for the first time since April 2022—putting it 150% up for the year, as hopes grow that spot ETFs making it easier to trade the cryptocurrency will gain regulatory approval soon.

Quote: “Etymologically, the term is believed to be a shortened form of the word ‘charisma,’ taken from the middle part of the word, which is an unusual word formation pattern.”

Sure, they can dress it up with whatever lexicographical justifications they want, but the folks at the Oxford English Dictionary proved once again that they’re not a regular dictionary, they’re a cool dictionary, by selecting “rizz” as their Word of the Year. In addition to Twitch’s favorite term for charm, the other words on the list of finalists—culled by a public vote before the language experts made the winning pick—included “Swiftie,” “prompt,” and “situationship.”

Read: A defense of Effective Altruism. (Astral Codex Ten)

Do not try these at home: Holiday recipes dictated by kindergartners.

Read: This app helps you access tons of e-books and audiobooks—for free.

Watch: Are these expensive kitchen gadgets actually worth it?

Get hype: The long-awaited trailer for the next Grand Theft Auto is here.

Learn: Our free course with Excel expert Miss Excel returns one last time this year on December 13 at 12pm ET. Join us and discover how to optimize your spreadsheets and leverage new functions to save hours each week. Register now.

Cold temps, hot sale: Get the multi-tools, knives, and gear you need for year-round outdoor adventures during Gerber’s Winter Sale. These deals end Dec. 14, so shop now.*

^{*A message from our sponsor.}