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Gary Cohn isn't pleased with plans by Democratic governors and legislators to combat a federal tax overhaul they say unfairly penalizes blue states. Cohn, director of the National Economic Council, said the administration may fight efforts by New York, California, and now New Jersey to make up for lost deductions. Such workarounds, if they succeed, could mean an even bigger revenue shortfall for the federal government, which is already staring into a $1 trillion chasm. If the states fail, they may face pressure to cut their own taxes. 

Cohn warns blue states against tax law workarounds. The Trump administration said it may try to block plans by high-tax states to shield residents from provisions of the new Republican tax overhaul. The tax bill sets a new $10,000 limit on state and local tax deductions. While New York Governor Andrew Cuomo promised to sue, and California legislators mull new laws, some legal experts suggest the states will have a hard time winning. That didn't stop incoming New Jersey governor from joining the rebellion with a proposal to effectively convert property taxes into charitable gifts.

Apple Inc. said all Macs, iPhones and iPads are affected by chip security flaws revealed this week but stressed no one has sought to exploit them. Intel Corp., whose chips power Macs and devices from other manufacturers, confirmed a report that its semiconductors contain a weakness. Apple said a recent software update fixed one vulnerability in iPads, iPhones, iPod touches, Macs and the Apple TV set-top-box, and that it's rolling out another fix for the Safari web browser.

New Year's resolutions are built to fail, unless you're talking about money. Bloomberg commissioned research by goal-setting website StickK that shows how certain incentives, financial technology and a little human psychology can come together to fatten your savings account without causing mental anguish. In fact, you may not notice it's happening at all.

When it comes to annual job creation, President Donald Trump loses to his predecessor. Trump vowed during the campaign that he would be “the greatest jobs president that God ever created.” Employment data released Friday show that the economy added 2.06 million jobs during his first full year in office. That's 185,000 fewer jobs than the 2.24 million delivered in the final year under his Democratic predecessor, President Barack Obama.

The Trump administration may be playing with fire if it pursues federal marijuana prosecutions in states where it's legal. The Justice Department's decision to loosen the reins on U.S. attorneys previously constrained by Obama-era policies could hurt Republicans in such places as Colorado, a state where voters legalized cultivation and possession. Senator Cory Gardner, chairman of the GOP's Senate campaign arm, slammed the decision by Attorney General Jeff Sessions as “a trampling of Colorado's rights.”

Downtown Los Angeles is transforming from wasteland to destination. The emergence of “DTLA” stems from efforts begun in the 1990s to develop once-bleak cityscapes into a cultural mecca. Starting with pioneers such as the L.A. Live entertainment complex and the Standard Hotel, the neighborhood's gentrification has accelerated with new hotels, restaurants and museums. Come with us on a tour.

Amazon's digital assistant is coming with you. The first Alexa-enabled digital glasses are here. The augmented-reality eyewear, to be unveiled at CES, the consumer electronics show, were made by tiny Vuzix Corp. They can talk to Amazon's famous voice-activated assistant and display information in your field of view. Vuzix's Alexa integration is part of an Amazon program that allows third-party hardware manufacturers to put her in as many places as possible.

To contact the author of this story: David Rovella in New York at drovella@bloomberg.net.

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