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Surging gasoline and energy prices, as well as the cost of groceries, have pushed the forecast for the cost-of-living adjustment higher.
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California Governor Gavin Newsom is proposing a new tax on cloud-based software sales, turning to the technology sector for billions of dollars in new revenue as the state's budget is being lifted by the artificial-intelligence boom.
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Hopes for an end to the war in Iran faded after President Trump failed to secure a commitment from China to help persuade Iran to reopen the Strait of Hormuz.
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