Donald Trump tax cut: Huge, vague and likely mild boost for economy
President Donald Trump‘s team boasted Wednesday that its tax-cut plan would lighten Americans’ financial burdens, ignite economic growth and vastly simplify tax filing. Yet the proposal so far remains short of vital details, including how it would be paid for. And based on the few specifics spelled out so far, most experts suggest that it would add little to growth while swelling the budget deficit and potentially handing large windfalls to wealthier taxpayers. Trump’s plan would replace the current seven income tax brackets with three, and the top bracket would drop from 39.6 percent to 35 percent. It would also slash the corporate rate from 35 percent all the way to 15 percent, a boon to most companies even though many don’t pay the full tax now. With tax credits and other loopholes, most corporations pay closer to 20 percent, according to calculations by JPMorgan. Perhaps the most contentious plank would enable taxpayers with business income — including those wealthy enough to pay the top tax rate — to instead pay the new 15 percent corporate rate. That’s because Trump would apply the corporate rate to “pass through” businesses. Pass-throughs include partnerships such as law firms and hedge funds as well as most small businesses — from the local florist to the family-owned restaurant on Main Street. What’s more, some privately held large companies — including Trump’s own real estate empire — are structured as pass-throughs and would benefit, too. Here’s a closer look at Trump’s proposal and its likely impact: ___ WHO BENEFITS? It’s hard to say because the administration has released so few details. The three new income tax rates would be 10 percent, 25 percent and 35 percent. But Trump’s top economic adviser, Gary Cohn, and Treasury Secretary Steven Mnuchin, weren’t ready Wednesday to say at what income levels these new rates would kick in. Tax experts said far more details were needed to determine how average Americans would be affected. “The impact on Joe Taxpayer is unknown,” said Marc Gerson, vice chair of the tax department of law firm Miller & Chevalier in Washington. “There’s not enough specificity. It’s hard for taxpayers to determine where they’ll come out.” Cohn asserted that the plan would cut taxes “especially for low and middle income families.” It purports to do so in part by doubling the standard deduction, which is used by taxpayers who don’t itemize their tax deductions. At the same time, the Trump plan would eliminate the estate tax and the alternative minimum tax, thereby benefiting some of the richest taxpayers. And that’s on top of shrinking the corporate tax rate that many affluent individuals could likely capitalize on. ___ WHY CUT CORPORATE TAXES? By making corporations more profitable, the Trump administration hopes to encourage more business spending on equipment — from computers to factories and machinery. Doing so, in turn, could make the economy more efficient and accelerate growth and hiring. Economic growth has been stuck at about 2 percent a year since the recession ended in 2009. Mnuchin says the administration wants to accelerate it above 3 percent, a pace it hasn’t touched since 2005. The corporate tax cuts are also intended to encourage more businesses to stay in the United States, which now has the highest corporate rate among advanced economies. Many large corporations are enthusiastic about lower rates and say they support the elimination of loopholes, which both reduce revenue and make taxes more complicated. ___ WHO’D BENEFIT FROM THE CORPORATE RATE CUT? Aside from most large companies, many partnerships and small businesses would benefit because they’re structured as pass-throughs, which derives from the fact that they pass on their profits to their owners. Those owners now pay individual income tax rates, which top out at 39.6 percent. With the pass-through rate dropped to 15 percent, those taxpayers could enjoy an enormous tax cut. The Trump team stressed the benefits that might flow to small businesses. But the richest windfalls would flow to the wealthy — lawyers, hedge fund managers, consultants and other big earners. Nearly 75 percent of pass-through income flows to the 10 percent wealthiest taxpayers, according to the liberal Center on Budget and Policy Priorities. “It would tremendously help high earners,” says Brian Thompson, a certified public accountant in Chicago. In Kansas, Gov. Sam Brownback eliminated state taxes on pass-throughs, which turned out to be a boon for Bill Self, the coach of the University of Kansas’ men’s basketball team. He had previously set up his own company, according to state media reports. As a result, he paid little state income tax despite earning nearly $3 million a year. Many people, particularly wealthy Americans, could set up companies and reclassify their paychecks as “business income” and have it taxed at 15 percent, experts say. In Kansas, the number of pass-through businesses jumped to more than double the level the state expected, according to the nonpartisan Tax Policy Center. That cost the state revenue without spurring more job creation. Mnuchin said the Treasury would issue rules to prevent wealthy people from capitalizing on the lower rate. But many experts are skeptical. “Good luck with that,” said Mark Mazur, director of the nonpartisan Tax Policy Center and a former Treasury official under President Barack Obama. “The tax agencies tend to be at least a couple of steps behind the businesses.” ___ HOW ELSE WOULD BIG BUSINESSES BENEFIT? The administration is also proposing to tax only corporate income earned in the United States. This is known as a “territorial” system. It would replace the current worldwide system, under which corporations pay tax on income earned in the U.S. and overseas. Yet companies can avoid the tax if they keep their foreign earnings overseas. Many businesses have kept hundreds of billions of dollars outside the United States. Mnuchin said Trump’s plan would encourage corporations to return the money to the United States and invest it in plants and equipment. Some analysts counter that corporations might instead use the money to pay dividends to
Donald Trump steps up effort to dispute and distract on Russia
After weeks on the defensive, President Donald Trump has stepped up his efforts to dispute, downplay and distract from revelations stemming from the investigations into the Kremlin’s interference in last year’s election and possible Russian ties to his campaign associates. The White House says the real story is not about Russia — it’s about how Obama administration officials allegedly leaked and mishandled classified material about Americans. Trump and his aides have accused former officials of inappropriately disclosing — or “unmasking” — the names of Trump associates whose conversations were picked up by U.S. intelligences agencies. “Such amazing reporting on unmasking and the crooked scheme against us by @foxandfriends,” Trump tweeted Monday. ‘Spied on before nomination.’ The real story.” The White House has not pointed to any hard evidence to support such allegations, and instead has relied on media reports from some of the same publications Trump derides as “fake news.” The truth is buried somewhere in classified material that is illegal to disclose. Here’s a look at what the White House believes is the real story. __ THE FLYNN AFFAIR Trump fired national security adviser Michael Flynn following news reports that Flynn misled the White House about his contacts with Russia’s ambassador to the U.S. But the White House says the problem is that Flynn’s conversations were in the news at all. “The real story here is why are there so many illegal leaks coming out of Washington?” Trump tweeted after firing Flynn in February. The White House has called for investigations into the disclosure of multiple intercepted conversations that Flynn had with Ambassador Sergey Kislyak before the inauguration. The government routinely monitors the communications of foreign officials in the U.S. It’s illegal to publicly disclose such classified information. Officially, the White House said Flynn was forced to resign because he had given inaccurate descriptions of the discussions to Vice President Mike Pence and others in the White House. But Trump has continued to defend Flynn, suggesting he was only fired because information about his contacts came out in the media. “Michael Flynn, Gen. Flynn is a wonderful man,” Trump said. “I think he’s been treated very, very unfairly by the media.” ___ THE OBAMA ADMINISTRATION White House officials say some Obama holdovers are part of a so-called deep state out to tear Trump down. Last week, the White House latched onto a month-old television interview from an Obama administration official who said she encouraged congressional aides to gather as much information on Russia as possible before the inauguration. Evelyn Farkas, the former deputy assistant secretary of defense, said she feared that information “would disappear” after President Barack Obama left office. She was no longer in government at the time, having left the Pentagon about a year before the election. White House spokesman Sean Spicer called Farkas’ comments “devastating” and said they “raised serious concerns on whether or not there was an organized and widespread effort by the Obama administration to use and leak highly sensitive intelligence information for political purposes.” On Monday, Spicer suggested there should be more interest in a Bloomberg report in which anonymous U.S. officials said that Susan Rice, Obama’s national security adviser, asked for the identities of people related to Trump’s campaign and transition dozens of times. Spicer remarked that he was “somewhat intrigued by the lack of interest” in the Rice revelations. But he added: “I do think that it’s interesting, the level, or lack thereof, of interest in this subject.” As national security adviser, Rice would have regularly received intelligence reports and been able to request the identities of Americans whose communications were intercepted. ___ THE HILL WEIGHS IN The White House has embraced a top Republican’s assertion that information about Trump associates were improperly spread around the government in the final days of the Obama administration. It appears the White House played a role in helping House intelligence committee Chairman Devin Nunes, R-Calif., acquire some of that information. Nunes announced last week that he had seen intelligence reports showing that Trump aides’ communications were picked up through routine surveillance. But he said their identities may have been improperly revealed. The California congressman later said he viewed the reports at the White House. The White House contends that Nunes’ information — which has not been made public — validates Trump’s explosive claim that his predecessor wiretapped his New York skyscraper. Nunes has disputed that but still says he found the reports “troubling.” The White House’s apparent involvement in helping Nunes access the information has overshadowed what Trump officials contend are real concerns about how much information about Americans is disseminated in intelligence reports. Trump has asked the House and Senate intelligence committees to include the matter in their Russia investigations. ___ CAMPAIGN MODE Trump won the election, but thinks it’s his vanquished opponent whose ties to Russia should be investigated. Some of the White House’s allegations against Clinton stem from her four years as secretary of state, a role that gave her ample reasons to have frequent contacts with Russia. To deflect questions about Trump’s friendly rhetoric toward Russia, the White House points to the fact that Clinton was a central figure in the Obama administration’s attempt to “reset” relations with Moscow — an effort that crumbled after Vladimir Putin took back the presidency. “When you compare the two sides in terms of who’s actually engaging with Russia, trying to strengthen them, trying to act with them, trying to interact with them, it is night and day between our actions and her actions,” Spicer said. Rex Tillerson, Trump’s secretary of state, has deep ties to Russia from his time running ExxonMobil and cutting oil deals with Moscow. The White House has also tried to link Clinton to Russia’s purchase of a controlling stake in a mining company with operations in the U.S., arguing that she was responsible for “selling off one-fifth of our country’s uranium.” The Clinton-led State Department was among nine U.S. government agencies that had to approve the purchase of
Congress seen as not likely to pass tax overhaul quickly
After their humiliating loss on health care, Republicans in Congress could use a quick victory on a big issue. It won’t be an overhaul of the tax code. Overhauling the tax code could prove harder to accomplish than repealing and replacing Barack Obama‘s health law. Congressional Republicans are divided on significant issues, especially a new tax on imports embraced by House Speaker Paul Ryan. And the White House is sending contradicting signals on the new tax, adding to the uncertainty. House Republicans also can’t decide whether to move on from health care. Ryan canceled a scheduled vote on a House GOP plan after it became obvious that Republicans didn’t have the votes. He said he will continue to work on the issue but one of his top lieutenants on health care, Rep. Kevin Brady, R-Texas, says he is now “100 percent” focused on a tax overhaul. Ryan says Congress can work on both at the same time. It won’t be easy. Here’s why: ___ REPUBLICAN DIVIDE House and Senate Republicans largely agree on the broad outlines of a tax overhaul. They want to lower tax rates for individuals and corporations, and make up the lost revenue by scaling back tax breaks. But they are sharply divided on a key tenet of the House Republican plan. The new “border adjustment tax” would be applied to profits from goods and services consumed in the U.S., whether they are domestically produced or imported. Exports would be exempt. House GOP leaders say the tax is key to lowering the top corporate income tax rate from 35 percent to 20 percent. But good luck finding a single Republican senator who will publicly support the tax. Sen. Rob Portman, R-Ohio, is the latest in a long line of Republican senators to come out against the tax. ___ ABSENT DEMOCRATS Senate Finance Committee Chairman Orrin Hatch, R-Utah, says he wants to work with Democrats to overhaul the tax code. “A bipartisan bill would allow us to put in place more lasting reforms and give the overall effort additional credibility,” Hatch said. Majority Leader Mitch McConnell, R-Ky., has said it is bad policy to pass major legislation without bipartisan support. “Without some meaningful buy-in, you guarantee a food fight,” McConnell wrote in his memoir last year. “You guarantee instability and strife.” But in the House, Republicans haven’t reached out to Democrats in any meaningful way. ___ WHERE’S THE WHITE HOUSE? “Obviously we’re driving the train on this,” White House press secretary Sean Spicer said. But President Donald Trump‘s administration has been all over the map on tax reform. Trump at one point said the House border tax is too complicated, then said it’s in the mix. Treasury Secretary Steven Mnuchin told a Senate panel that “there would be no absolute tax cut for the upper class” in Trump’s tax plan. However, the plan Trump unveiled during his presidential campaign would provide big tax breaks to high-income households. Since taking office, Trump has promised “massive” tax cuts for the middle class. A former Treasury official under President Barack Obama says the White House needs to stake out clear goals on tax overhaul to guide the debate in Congress. “I think it’s important for the administration to signal early the general shape” of what they would like to accomplish so that there are fewer proposals vying for attention, said Michael Mundaca, a former assistant Treasury secretary now at Ernst & Young. ___ TAX CHANGE IS DIFFICULT There is a reason it’s been 31 years since the last time Congress rewrote the tax code. Since then, the number of exemptions, deductions and credits has mushroomed. Taxpayers enjoyed $1.6 trillion in tax breaks in 2016 — more than the federal government collected in individual income taxes. That huge number could provide plenty of tax breaks that lawmakers can scale back so they can lower tax rates significantly. There is just one problem — all of the biggest tax breaks are very popular and have powerful constituencies. Nearly 34 million families claimed the mortgage interest deduction in 2016. That same year more than 43 million families took advantage of a deduction of state and local taxes. The House Republicans’ tax plan would retain the mortgage deduction and eliminate the deduction for state and local taxes. ___ HEALTH CARE Both Trump and Republicans in Congress made big campaign promises to repeal and replace Obama’s health law, so the issue won’t go away. However, several players say negotiations on a way forward are non-existent. In the meantime, Trump is stoking animosity among a key voting bloc by criticizing them on Twitter. Two factions in the House GOP had members oppose the health plan: the hard-right Freedom Caucus and the moderate Tuesday Group. Ryan has suggested that they get together to sort out their differences, but it’s not happening, according to one key lawmaker. “We are not currently negotiating with the Freedom Caucus. There was never a meeting scheduled with the Freedom Caucus. We will never meet with the Freedom Caucus,” said Rep. Chris Collins, R-N.Y., a member of the Tuesday Group. Trump tweeted: “The Freedom Caucus will hurt the entire Republican agenda if they don’t get on the team, & fast. We must fight them, & Dems, in 2018!” To quote a favorite saying of the president, Not nice. Republished with permission of The Associated Press.
Winners and losers in Donald Trump’s first budget plan
Military spending would get the biggest boost in President Donald Trump‘s proposed budget. Environmental programs, medical research, Amtrak and an array of international and cultural programs — from Africa to Appalachia — would take big hits, among the many parts of the government he’d put on a crash diet. The budget proposal out Thursday is a White House wish list; it’ll be up to Congress to decide where money goes. If Trump gets his way, there will be more losers than winners among government departments and programs. Some programs would tread water: WIC grants — money to states for health care and nutrition for low-income women, infants and children — are one example. Monday for states grants for water infrastructure projects would be held level as well. Some others would lose everything: Trump proposes to eliminate money for the Corporation for Public Broadcasting, the national endowments for the arts and the humanities and more than a dozen other independent agencies financed by the government. A sampling: WINNERS —The Pentagon. Trump proposes a 10 percent increase in the massive defense budget, adding $52 billion in military spending in one year top expand personnel, equipment and capability. Another $2 billion would go to nuclear weapons. —Veterans Affairs. Up 5.9 percent. That’s an additional $4.4 billion, driven by ever-growing health care costs. —Homeland Security. Up 6.8 percent. That’s $2.8 billion more. Most of the increase, $2.6 billion, would be to help kick-start Trump’s promised border wall. The president has repeatedly said Mexico would pay for the wall; Mexican officials are adamant that they won’t. Trump also wants an extra $1.5 billion for more immigration jails and deportations, and $314 million to hire 1,500 immigration enforcement and border patrol agents. —The National Nuclear Security Administration, which oversees the maintenance and safety of the nuclear arsenal and its research labs. The agency would grow by 11.3 percent, or $1.4 billion, so that it takes up more than half the Energy Department’s budget, which would shrink overall. —Opioid prevention and treatment: a proposed $500 million increase in the Health and Human Services Department to counter the epidemic and more money for the Justice Department to combat the problem. —School choice: $1.4 billion more to expand school choice programs, bringing spending in that area to $20 billion, even as the Education Department’s overall budget would be cut by $9 billion, or 13 percent. LOSERS: —EPA, facing a 31.4 percent cut, or $2.6 billion. The plan would cut 3,200 jobs at the agency, eliminate a new plan for tighter regulations on power plants, and “zero out” programs to clean up the Great Lakes and the Chesapeake Bay. —Health and Human Services, facing the largest cut in dollar terms: $12.6 billion, or 16.2 percent. The plan would cut $5.8 billion from the nearly $32 billion National Institutes of Health, the nation’s premier medical research agency, bringing its total to $25.9 billion. It’s not clear what research on diseases or disorders would lose the most money, although the budget plan specifically calls for elimination of a division that focuses on global health. Already, the NIH’s budget hasn’t kept pace with inflation over the last decade, making it dramatically harder for scientists around the country to win money for research projects into potential new treatments or better understanding of disease. —State Department and U.S. Agency for International Development. Down 28 percent, or $10 billion. Foreign aid would be reduced, as would money to the U.N. and to multilateral development banks including the World Bank. Some foreign military grants would be shifted to loans. —Labor Department. A more than 20 percent cut, or $2.5 billion. To be eliminated: a $434 million program that has helped more than 1 million people 55 and older find jobs, according to the department. The blueprint says the Senior Community Service Employment Program is inefficient and unproven. —Agriculture Department. A nearly 21 percent cut, or $4.7 billion, achieved in part by cutting land acquisition in the National Forest System, rural water infrastructure and statistical capabilities at the department. Trump also proposes reduced staff in county USDA offices, an idea that fell flat in Congress when President Barack Obama proposed a similar reduction. —Transportation Department. Trump proposes a cut of nearly 13 percent, or $2.4 billion. Amtrak, local transit agencies, and rural communities that depend on federal subsidies to obtain scheduled airline service would take the brunt. Trump would eliminate subsidies for Amtrak long-distance train routes, which would most likely mean the end of those routes since they are generally not profitable. Money for the Federal Transit Administration grant program for new light rail and subway construction would be eliminated except for multi-year projects the government has already committed to help fund. —Internal Revenue Service: After years of cuts, the IRS budget would be cut again — by $239 million from this year’s spending levels. The IRS budget is down about $1 billion from its height in 2010. Since then, the agency has lost more than 17,000 employees. As a result, the chances of getting audited have rarely been so low. —Commerce Department. A 16 percent or $1.5 billion cut. The plan would eliminate more than $250 million in National Oceanic and Atmospheric Administration grants, including a program that helps coastal communities adapt to climate change, deal with invasive species and maintain healthy water and fisheries. Also on the chopping block: the Economic Development Administration, which provides federal dollars to foster job creation and attract private investment; and the Minority Business Development Agency, which is dedicated to helping minority-owned business get off the ground and grow. The Trump administration says the two agencies duplicate work done elsewhere. —School programs: The plan would eliminate a $1.2 billion initiative that supports before- and after-school programs as well as summer programs. —Independent agencies supported by tax dollars. If Trump prevails, a hefty contingent of entities would lose all federal money and be shut. Among them, the public broadcasting corporation, the Appalachian Regional Commission, the Chemical Safety Board, the United States
House GOP health bill facing fresh House committee test
The White House and Republican leaders are talking to rank-and-file lawmakers about revising the GOP health care overhaul, hoping to keep a rebellion by conservatives and moderates from snowballing and imperiling the party’s showpiece legislation. Four days after a congressional report projected the bill would pry coverage from millions of voters, signs of fraying GOP support for the legislation were showing. The measure would strike down much of former President Barack Obama‘s 2010 overhaul and reduce the federal role, including financing, for health care consumers and is opposed uniformly by Democrats. In a fresh test of Republicans’ willingness to embrace the legislation, the House Budget Committee was considering the measure Thursday. Republicans expressed confidence the bill would be approved, but the vote could be tight. The panel can’t make significant changes but was expected to endorse non-binding, suggested changes to nail down votes. The bill would eliminate the tax penalty that pressures people to buy coverage and the federal subsidies that let millions afford it, replacing them with tax credits that are bigger for older people. It would cut Medicaid, repeal the law’s tax increases on higher earning Americans and require 30 percent higher premiums for consumers who let coverage lapse. Overt GOP opposition grew after the nonpartisan Congressional Budget Office projected Monday that the legislation would push 24 million Americans off coverage in a decade and shift out-of-pocket costs toward lower income, older people. Obama’s law has provided coverage to around 20 million additional people House Speaker Paul Ryan, R-Wis., told reporters Wednesday that leaders could now make “some necessary improvements and refinements” to the legislation. But he declined to commit to bringing the measure to the House floor next week, a schedule Republican leaders have repeatedly said they intended to keep. At a late rally in Nashville Wednesday, President Donald Trump said: “We’re going to arbitrate, we’re all going to get together, we’re going to get something done.” Vice President Mike Pence met with House GOP lawmakers and pressed them to unite behind the legislation. “‘It’s our job to get it out of here and get it to the Senate,’” Pence told Republicans, according to Rep. Dennis Ross, R-Fla. That would let Trump pressure “Democrats in these red states to come on board,’” Ross said, referring to Republican-leaning states where Democratic senators face re-election next year. But insurgents still abound. Conservatives want to end Obama’s expansion of Medicaid to 11 million additional low-income people next year, not 2020 as the bill proposes. They say a GOP proposed tax credit to help people pay medical costs is too generous, and they want to terminate all of Obama’s insurance requirements, including mandatory coverage of specified services like drug counseling. Rep. Mark Meadows, R-N.C., head of the hard-line conservative House Freedom Caucus, continued pushing for changes. He claimed at least 21 members of his group would oppose the measure as written; the bill would fail if 22 Republicans join all Democrats in opposing it. But underscoring the push-pull problem GOP leaders face in winning votes, moderates feel the tax credits are too stingy, especially for low earners and older people. They oppose accelerating the phase-out of the Medicaid expansion and are unhappy with long-term cuts the measure would inflict on the entire program. Terminating the Medicaid expansion in 2020 and not 2018 “is sacrosanct to me,” said moderate Rep. Tom MacArthur, R-N.J. In a new complication, Sen. Charles Grassley, R-Iowa, said the measure lacked the votes to pass in the Senate, where Republicans hold a precarious 52-48 majority. That left House members angry over being asked to take a politically risky vote for legislation likely to be altered. Moderates “don’t like the idea of taking a vote in the House that may go nowhere in the Senate,” said Rep. Charlie Dent, R-Pa. Amid the maneuvering, a federal report said more than 12 million people have signed up for coverage this year under the very statute that Republicans want to repeal. That figure underscored the potential political impact of the GOP’s next move. Republished with permission of The Associated Press.
Donald Trump nominee decried criticism of judges, senators agree
President Donald Trump insisted Thursday that comments by his Supreme Court nominee criticizing his own attacks on the judiciary were “misrepresented,” even as Republican and Democratic lawmakers vouched for the veracity of the remarks. Trump responded after private rebukes from Judge Neil Gorsuch, who said in meetings with lawmakers on Wednesday that the president’s comments about federal judges were “disheartening.” Gorsuch, who was nominated by Trump last week to the nation’s highest court, made the comments in meetings with senators after Trump accused an appeals court panel considering his immigration and refugee executive order of being “so political.” Over the weekend, he labeled a judge who ruled on his executive order a “so-called judge” and referred to the ruling as “ridiculous.” Democratic Sen. Richard Blumenthal of Connecticut first relayed Gorsuch’s remarks on Wednesday following a meeting with him. Trump’s own confirmation team for Gorsuch later confirmed he had made the remarks. But Trump said during a Thursday luncheon with senators that Blumenthal had misrepresented Gorsuch. “His comments were misrepresented. And what you should do is ask Senator Blumenthal about his Vietnam record that didn’t exist after years of saying it did,” he said. Blumenthal, who served in the Marine Corps Reserves during Vietnam, apologized in 2010 for saying he had served in Vietnam. The president made the comments while making the case for Gorsuch during a luncheon with 10 senators, including six of Blumenthal’s fellow Democrats. Blumenthal, a former state attorney general, argued Thursday that Gorsuch would need to go further to publicly denounce Trump’s verbal assault on judicial independence. “He needs to condemn Donald Trump’s attacks publicly and it needs to be much stronger, more explicit and direct than has been done so far,” Blumenthal said. “Unless it is done publicly in a clear condemnation, it will not establish his independence.” Lawmakers from both parties quickly vouched for the veracity of the remarks the senator said Gorsuch made. GOP former Sen. Kelly Ayotte, who is helping with Gorsuch’s confirmation and was at the meeting, issued a statement saying Gorsuch made clear he was not referring to any specific case. But she said the nominee said he finds any criticism of a judge’s integrity and independence to be “disheartening and demoralizing.” Senate Minority Leader Chuck Schumer, D-N.Y., and Sen. Ben Sasse, R-Neb., each confirmed that Gorsuch made the same comments to them. Sasse told MSNBC’s “Morning Joe,” ”Frankly, he got pretty passionate about it.” He added that Gorsuch said any attack on the “‘brothers or sisters of the robe is an attack on all judges’.” Fellow Connecticut Democratic Sen. Chris Murphy came to Blumenthal’s defense Thursday, lashing out in a tweet directed at Trump: “Ha! As a prosecutor, Dick used to put guys like u in jail. Now, u use your position to mock vets, he uses his to make their lives better.” Gorsuch’s comments came at the end of a week of meetings with members of the Senate, which is considering his nomination. His response may have been aimed at drawing a line of separation with the new president. The 9th U.S. Circuit Court of Appeals is weighing the appeal of Trump’s executive order on immigration, which included a temporary travel ban on people from seven Muslim-majority countries. In a hearing Tuesday, judges on the appeals court challenged the administration’s claim that the ban was motivated by terrorism fears, but they also questioned an attorney’s argument that it unconstitutionally targeted Muslims. Trump told visiting police chiefs Wednesday that a portion of the immigration law gives him the power to enact the ban, calling it “beautifully written” and saying, “A bad high school student would understand this.” “Courts seem to be so political and it would be so great for our justice system if they would be able to read a statement and do what’s right,” Trump added. “And that has to do with the security of our country, which is so important.” Since a lower-court judge blocked the order last week, Trump has assailed the decision, leading legal experts, Democrats and some Republicans to question whether his remarks might jeopardize the independence of the judiciary. Others have expressed fears he may be attempting to use political influence to sway the courts. The president has repeatedly said foreigners are “pouring in” since the ban was put on hold and suggested that blocking the order would be dangerous for U.S. citizens. On Wednesday he tweeted, “Big increase in traffic into our country from certain areas, while our people are far more vulnerable, as we wait for what should be EASY D!” The administration has not provided any information to support his claims. Republished with permission of The Associated Press.
Dems force delays in votes on Jeff Sessions, Steve Mnuchin, Tom Price
Democrats forced delays Tuesday in planned Senate committee votes on President Donald Trump‘s picks for Health and Treasury secretaries and attorney general, amid growing Democratic surliness over the administration’s aggressive early moves against refugees and an expected bitter battle over filling the Supreme Court vacancy. Democrats abruptly boycotted a Senate Finance Committee meeting called to vote on Rep. Tom Price, R-Ga., the Health nominee and Steve Mnuchin, Trump’s Treasury selection, saying both had misled Congress about their financial backgrounds. The Democrats’ action prevented the Finance panel from acting because under committee rules, 13 of its members — including at least one Democrat — must be present for votes. It was unclear when the panel would reschedule to votes. At the Senate Judiciary Committee, a meeting considering Sen. Jeff Sessions, R-Ala., to be attorney general lasted so long — chiefly because of lengthy Democratic speeches — that Chairman Charles Grassley, R-Iowa, said the panel would meet again Wednesday. The meeting on Sessions’ nomination was coming with Democrats and demonstrators around the country in an uproar over Trump’s executive order temporarily blocking refugees. Even some Republicans were warning it could hinder anti-terrorism efforts. Not everything ground to a halt. The Senate education committee voted 12-11 to send Trump’s pick to head the Education Department, Betsy DeVos, to the full Senate for a confirmation vote. The Senate Energy and Natural Resources Committee quickly approved former Texas Gov. Rick Perry as Energy secretary by 16-7, and Rep. Ryan Zinke, R-Mont., to head Interior by 16-6. And the full Senate easily confirmed Elaine Chao to become transportation secretary by a 93-6 vote. Chao was labor secretary under President George W. Bush, and is wife of Senate Majority Leader Mitch McConnell, R-Ky. Just before the Finance committee was scheduled to vote on Price and Mnuchin, Democrats called a briefing for reporters and announced their plan to force a delay. Sen. Debbie Stabenow, D-Mich., said Price and Mnuchin would hold positions “that directly affect peoples’ lives every day. The truth matters.” Finance Committee Chairman Orrin Hatch, R-Utah, accused Democrats of “a lack of desire to fulfill their constitutional responsibilities.” “They ought to stop posturing and acting like idiots,” he said. In 2013 when Democrats controlled the Senate, Republicans boycotted a committee vote on Gina McCarthy to head the Environmental Protection Agency, temporarily stalling it. Democrats cited one report in The Wall Street Journal that Price received a special, discounted offer to buy stock in a biomedical company, which contradicted his testimony to Congress. They said another report in The Columbus Dispatch showed documents revealing that Mnuchin had not been truthful with the Senate in the confirmation process in comments about how his bank OneWest had handled home foreclosures. Republicans have supported both men, and both have strongly defended their actions. Democrats have opposed Price, a seven-term congressional veteran, for his staunch backing of his party’s drive to scuttle Obama’s health care law and to reshape Medicare and Medicaid, which help older and low-income people afford medical care. They’ve also assailed Price for buying stocks of health care firms, accusing him of using insider information and conflicts of interest for backing legislation that could help his investments. Price says his trades were largely managed by brokers and that he’s followed congressional ethics rules. Democrats have criticized Mnuchin for not initially revealing nearly $100 million in assets, and were expected to vote against both nominees. They’ve also accused him of failing to protect homeowners from foreclosures and criticized him for not initially disclosing all his assets. DeVos, a wealthy GOP donor and conservative activist, has long supported charter schools and allowing school choice. That’s prompted opposition from Democrats and teachers’ unions who view her stance as a threat to federal dollars that support public education. Critics have also mocked her for suggesting that guns could be justified in schools to protect students from grizzly bears. Two prominent Republicans on the education committee, Sens. Susan Collins of Maine and Lisa Murkowski of Alaska, said they remained uncertain if they will vote for her on the Senate floor. Murkowski said DeVos has yet to prove that she deeply cares about America’s struggling schools and its children. Republished with permission of the Associated Press.
Promises, pomp and protests as Donald Trump sworn in
Pledging to empower America’s “forgotten men and women,” Donald Trump was sworn in as the 45th president of the United States Friday, taking command of a deeply divided nation and ushering in an unpredictable era in Washington. His victory gives Republicans control of the White House for the first time in eight years. Looking out over the crowd sprawled across the National Mall, Trump painted a bleak picture of the nation he now leads, lamenting “American carnage,” shuttered factories and depleted U.S. leadership. President Barack Obama, the man he replaced, sat behind him stoically. Trump’s address lasted just 16 minutes. While his inauguration did draw crowds to the nation’s capital, the numbers appeared smaller than for past celebrations. Demonstrations unfolded at various security checkpoints near the Capitol as police helped ticket-holders get through. After the swearing-in, more protesters registered their rage in the streets of Washington. Police in riot gear deployed pepper spray and made numerous arrests after protesters smashed the windows of downtown businesses, denouncing capitalism and Trump. The new president’s first words as commander in chief were an unapologetic reprisal of the economic populism and nationalism that fueled his improbable campaign. He vowed to stir “new national pride,” bring jobs back to the United States, and “eradicate completely” Islamic terrorism. “From this day forward, a new vision will govern our land. From this day forward, it’s going to be only, ‘America First,’” Trump said. His address lasted just 16 minutes. While Trump’s inauguration did draw crowds to the nation’s capital, the numbers appeared smaller than for past celebrations. In a remarkable scene, Trump ripped into Washington’s longtime leaders as he stood among them at the U.S. Capitol. For too long, he said, “a small group in our nation’s capital has reaped the rewards of government while the people have borne the cost.” For Republicans eager to be back in the White House, there was little mention of the party’s bedrock principles: small government, social conservativism and robust American leadership around the world. Trump, who is taking office as one of the most unpopular incoming presidents in modern history, made only oblique references to those who may be infuriated and fearful of his presidency. “To all Americans in every city near and far, small and large from mountain to mountain, from ocean to ocean, hear these words: You will never be ignored again,” he said. The new president was sworn in by Chief Justice John Roberts, reciting the 35-word oath with his hand placed upon two Bibles, one used by his family and another during President Abraham Lincoln’s inauguration. Trump and wife, Melania, bid Obama and outgoing first lady Michelle Obama farewell as they departed the Capitol grounds in a government helicopter. Trump and Obama’s political paths have been linked in remarkable ways. Before running for the White House, the billionaire businessman led efforts to promote falsehoods about the 44th president’s citizenship and claim on the office. Obama addressed a staff gathering at Joint Base Andrews before departing for a vacation in California. “You proved the power of hope,” he said. Trump’s journey to the inauguration was as unlikely as any in recent American history. He defied his party’s establishment, befuddled the media and toppled two political dynasties on his way to victory. His message, calling for a resurgence of white, working-class corners of America, was packaged in defiant stump speeches railing against political correctness. He used social media to dominate the national conversation and challenge conventions about political discourse. After years of Democratic control of the White House and deadlock in Washington, his was a blast of fresh air for millions. But Trump’s call for restrictive immigration measures and his caustic campaign rhetoric about women and minorities angered millions. And Trump’s swearing-in was shadowed by questions about his ties to Russia, which U.S. intelligence agencies have determined worked to tip the 2016 election in his favor. More than 60 House Democrats refused to attend his swearing in ceremony in the shadow of the Capitol dome. One Democrat who did sit among the dignitaries was Hillary Clinton, Trump’s vanquished campaign rival who was widely expected by both parties to be the one taking the oath of office. At a post-ceremony luncheon at the Capitol, Trump asked the Republicans and Democrats present to recognize her, and those in the room rose and applauded. At 70, Trump is the oldest person to be sworn in as president, marking a generational step backward after two terms for Obama, one of the youngest presidents to serve as commander in chief. Trump takes charge of an economy that has recovered from the Great Recession but has nonetheless left millions of Americans feeling left behind. The nation’s longest war is still being waged in Afghanistan and U.S. troops are battling the Islamic State in Iraq and Syria. The American health care system was expanded to reach millions more Americans during Obama’s tenure, but at considerable financial costs. Trump has vowed to dismantle and rebuild it. Trump faces challenges as the first president to take office without ever having held a political position or served in the military. He has stacked his Cabinet with established Washington figures and wealthy business leaders. Though his team’s conservative bent has been cheered by many Republicans, the overwhelmingly white and male Cabinet has been criticized for a lack of diversity. Before attending an inaugural luncheon, Trump signed his first series of orders, including the official nominations for his Cabinet. He joked with lawmakers, including House Democratic leader Nancy Pelosi, and handed out presidential pens. In a show of solidarity, all of the living American presidents attended Trump’s inaugural, except for 92-year-old George H.W. Bush, who was hospitalized this week with pneumonia. His wife, Barbara, was also admitted to the hospital after falling ill. Republished with permission of The Associated Press.
First day goal? Make White House feel like home for Donald Trump
It’s supposed to feel just like home when Donald Trump steps inside the White House residence for the first time as president on Inauguration Day. His clothes will be hanging in the closet. The kitchen will be stocked with his favorite foods. Windows will have been washed, carpets vacuumed or replaced, and fresh linens and towels will be in all the bedrooms and baths. No packed or half-empty boxes will be lying around either, unlike a typical home move. Trump and his wife, Melania, can thank the nearly 100 butlers, maids, plumbers, electricians and other staffers who maintain the private living areas of the White House. The crew will have just the hours between Trump’s swearing-in and the end of the inaugural parade to remove all traces of President Barack Obama and his family and make the Trumps feel at home. “I’ve called it, for years, organized chaos,” says Gary Walters, a former White House chief usher who oversaw the move in-move out process for four presidents. The “chaos” breaks out moments after the outgoing president and the president-elect depart the White House for the oath-taking ceremony at the Capitol. However, the process itself starts after the November election when the White House chief usher reaches out to the incoming president’s team to begin coordinating the new First Family’s big move. Melania Trump toured the living quarters in November when she accompanied her husband to the White House for his postelection meeting with Obama. Trump, the businessman and reality TV star, now lives primarily at his three-story penthouse at Trump Tower on New York’s Fifth Avenue, and may continue to spend considerable time there because his wife and their 10-year-old son, Barron, plan to remain in New York until the school year ends. The Obamas started packing up their belongings weeks ago. Crates and boxes lined hallways and filled the East Room last week. Mrs. Obama isn’t doing a lot of packing herself, but she recently said in an interview with Oprah Winfrey that “I’m doing a lot of pointing” to indicate what needs to be boxed up. Obama told CBS’ “60 Minutes” that he’s taking books, clothes, mementos and furniture bought since he became president. He and the first lady didn’t bring many large items with them because they left their home in Chicago intact. They also won’t be going far when they leave the White House. After vacation in Palm Springs, California, the Obamas will settle into a rented mansion in Washington’s upscale Kalorama neighborhood. In a break with tradition, they plan to stay in the capital for a few years so their 15-year-old daughter, Sasha, can graduate from her private high school. One of their new neighbors will be Trump’s eldest daughter, Ivanka Trump, and her husband, Jared, who will become a senior adviser to his father-in-law. The couple plan to move into a mansion in the same neighborhood with their three young children. As the transition of power takes place at the Capitol on Friday, the White House residence staff oversees the transition from one family to another in a manner befitting an HGTV special. Moving trucks for each family are positioned nearby and are directed through tight security to the White House when they get the all-clear. Residence staff members are broken up into groups and given specific assignments. Some will pack the Obama family’s remaining items, and another group will carry them out to the truck. Other staffers will bring the Trumps’ things into the White House while still others unpack and put them in their designated places. All the while, “you’re changing sheets and you’re changing towels and the housekeepers are working feverishly,” said Anita McBride, who was chief of staff to first lady Laura Bush. But, adds Walters, “the end product is that when the new president and first lady come through the North Portico door after the parade that they walk into their home. Everything is in place.” For Trump, a real estate mogul whose brand is flashy luxury, the move may mean bringing some of his flamboyant style to the White House. Trump’s penthouse in Manhattan and his hotels are known for their marble columns, crystal chandeliers and gold. Earlier, before welcoming the president-elect for a pre-inaugural reception, the outgoing president, the chief usher and the residence staff traditionally meet for what often is an emotional goodbye. Over the years, the staff often becomes attached and protective of the president and his family, particularly those who serve two terms. In Obama’s case, many of those assigned to the residence are people of color and have been especially proud to serve America’s first black president and his family. Trump is expected to follow tradition and stay at Blair House, the government guest house across from the White House, before the inauguration. But how might he spend his first night at the White House? Trump is thinking about sleeping in the famed Lincoln Bedroom. He said so during a recent lunch with historian Douglas Brinkley and other guests at Trump’s South Florida club. A guest at the lunch recalled the conversation and Brinkley confirmed its accuracy. Republished with permission of The Associated Press.
Updates from the 1st presidential debate
The Latest on the first of three presidential debates between Democrat Hillary Clinton and Republican Donald Trump (all times EDT): 10:45 p.m. Both candidates concluded the first presidential debate by saying they will accept the outcome if the other wins. Hillary Clinton spoke directly to viewers and said, “It’s not about us, it’s about you.” Donald Trump initially dodged the same question, saying he would make a “seriously troubled” America “great again.” He added: “I’m going to be able to do it. I don’t believe Hillary Clinton will.” But Trump finished his answer by saying that if Clinton wins, “I will absolutely support her.” ___ 10:43 p.m. Hillary Clinton is punching back at Donald Trump’s assertions that she doesn’t have the “stamina” to be president. Trump has questioned whether Clinton has the physical fitness to be president and he repeated the criticism to her directly during the debate. Clinton’s response? Trump shouldn’t talk about stamina until he’s tried out the busy schedule she kept up as secretary of state. Trump didn’t answer moderator Lester Holt’s original question about his past comments that Clinton doesn’t have the “presidential look.” Clinton suggested the remarks were about gender, and she reminded the crowd of Trump’s past comments calling women “pigs” and other derogatory names. ___ 10:42 p.m. Donald Trump says NATO needs to “go into the Middle East with us” to combat the Islamic State group. And he is taking credit for NATO focusing resources on combating terrorism. In fact, the alliance agreed in July to contribute aircraft and conduct training in Iraq and has increased intelligence coordination there. And NATO set up an anti-terrorism program in 2004 — years before Trump criticized them as a presidential candidate. Earlier this year, Trump criticized NATO for not focusing on terrorism. He said that afterward, he saw an article reporting that NATO was opening a new, major anti-terrorism division. He said Tuesday that NATO’s action was “largely because of what I was saying, and my criticism of NATO.” ___ 10:40 p.m. Donald Trump is avoiding a specific declaration on how he would use nuclear weapons if he’s elected president. The Republican nominee said during the first presidential debate that he “would not do first strike” because “once the nuclear alternative happens, it’s over.” That statement suggests he would not authorize a nuclear attack unless the U.S. was struck first. But in the same answer Trump said he “can’t take anything off the table.” He mentioned adversary nations such as North Korea and Iran. President Barack Obama has considered changing existing policy to state clearly that the United States would not deploy nuclear weapons without first being attacked by nuclear weapons. But he met resistance and has elected not to make such a shift. ___ 10:38 p.m. Hillary Clinton is accusing Donald Trump of being too easily provoked to keep the United States from going to war — perhaps even one involving nuclear weapons. Trump says: “I have much better judgment than she does. I have much better temperament.” That drew laughs from some in the debate crowd, and prompted Clinton to exclaim: “Woo! OK!” Clinton then pivoted to policy, defending the U.S.-led war in Afghanistan. Clinton said Iran was “weeks away” from a nuclear bomb when she became secretary of state — and says the Obama administration thwarted that progress. She continued that Trump didn’t have “good judgment or the right temperament” because he could take the country to war over small issues, like being mocked on Twitter. ___ 10:35 p.m. Donald Trump is continuing to insist he opposed the Iraq War before the U.S. invasion despite evidence to the contrary. Trump says during the debate that he “did not support the war in Iraq,” calling that charge “mainstream media nonsense.” But there is no evidence Trump expressed public opposition to the war before the U.S. invaded. Trump was asked in September 2002 whether he supported a potential Iraq invasion in an interview with Howard Stern. Trump briefly hesitated, then responded: “Yeah, I guess so.” Presented with the comment during the debate, Trump responds: “I said very lightly, I don’t know, maybe, who knows.” He’s also telling reporters to call Fox News host Sean Hannity to confirm private conversations he said they had about the war. Hannity is a top Trump supporter. Clinton voted in favor of the invasion in 2002 while she was a New York senator. She has since said it was a mistake. ___ 10:27 p.m. Donald Trump is interrupting the moderator of the first presidential debate to insist he has the best temperament for the office. Trump repeatedly made the assertion after clashing with moderator Lester Holt over his early support for the Iraq War. Then he segued to his temperament. “I think my strongest asset by far is my temperament,” Trump said. “I know how to win.” Clinton and her allies have repeatedly hit Trump over his temper and inability to take criticism. ___ 10:23 p.m. Hillary Clinton says one key to fighting terrorism in the United States is working closely with Muslims living here. Clinton says Donald Trump has “consistently insulted Muslims abroad, Muslims at home.” She says Muslim people can provide information that law enforcement may not be able to obtain anyplace else. Both candidates were asked to explain how they would combat terrorism in the U.S. Clinton says her plan includes an intelligence surge to obtain “every scrap of information” and to “do everything we can to vacuum up intelligence from Europe, from the Middle East.” ___ 10:20 p.m. Hillary Clinton says defeating the Islamic State group and taking out its leaders would be a top priority as president. Clinton says she’s hopeful the Islamic State group would be pushed out of Iraq by the end of the year. She says the U.S. could then help its allies “squeeze” the terrorist group in Syria. Clinton says she would do everything possible to take out the group’s leaders, and make that one of her administration’s organizing principles
Panel sends Alabama chief justice’s ethics case to trial
A state judicial panel on Monday refused to dismiss an ethics complaint against Alabama Chief Justice Roy Moore, saying that Moore will go to trial in September on accusations that he urged 68 probate judges to defy the federal courts on same-sex marriage. The Alabama Court of the Judiciary, a state panel that disciplines judges, refused dueling requests to either dismiss the complaint against Moore outright or go ahead and remove him from office. Chief Judge Michael Joiner said the case will go to trial Sept. 28. The panel of nine judges will hear the case and decide whether Moore violated judicial ethics and if so, what punishment he will face. The decision came down shortly after the conclusion of a 60-minute hearing in which Moore was alternately portrayed as a politician on a mission to block gay couples from marrying in Alabama or a judge who was merely trying answer questions from confused probate judges. Moore — who was ousted from office by the court in 2003 for refusing to remove a Ten Commandments monument from the state judicial building — could be removed as chief justice for a second time. “We are here to talk about Chief Justice Roy Moore and his repeated refusal to follow the rule of law,” John Carroll, a former federal magistrate representing the Judicial Inquiry Commission, told the court. Carroll said Moore abused his power as chief justice to promote a private agenda against same-sex marriage. The complaint stems from a Jan. 6 memo he sent probate judges. Moore wrote that a March order from the state Supreme Court to refuse marriage licenses to gay couples remained in full force and effect. The order came even though the U.S. Supreme Court had effectively legalized same-sex marriage nationwide six months prior and a federal judge said Alabama should follow that decision. A lawyer for Moore said the chief justice was only clarifying the status of the state injunction that was issued in March because probate judges were asking questions about it. “The probate judges were flapping in the wind. They were wondering what to do,” his lawyer, Mat Staver, told the court. Moore’s order was merely a legal “truism” that the order had not been lifted by the state court, he argued. Staver, in defending Moore, repeatedly emphasized a section of the January order where Moore told the probate judges that he was not at “liberty to provide any guidance to Alabama probate judges on the effect of (the U.S. Supreme Court ruling) on the existing orders of the Alabama Supreme Court.” Carroll countered that Moore’s intent was clear: to try to urge probate judges to fight against same-sex marriage. Moore acted on his own by sending the order after unsuccessfully urging his fellow justices to take some action regarding the March order in the wake of the U.S. Supreme Court decision, something pointing out by both sides in the hearing. The Monday hearing took on some of the theater and spectacle that accompanied the 2003 dismissal with passionate protests outside the court. Moore’s supporters and opponents held dueling rallies outside the court building ahead of the hearing, at times standing within a few feet of each other as they chanted and waved competing signs such as “No Moore” or “Judge Moore is right.” Moore entered the packed courtroom to applause from his supporters. After the hearing, he spoke to a sign-waving crowd outside, saying there is “no evidence” he broke judicial ethics and that he never told judges what to do. “They said I tried to influence them. I said it’s their decision,” Moore said. Moore said the complaint was filed against him by people who “don’t want anybody opposing any agenda of the homosexual movement.” The Southern Poverty Law Center, a civil rights legal advocacy group, filed the complaint against Moore that led to the ethics charges, and its director said Moore was clearly urging the judges to defy the courts on gay marriage and was now trying to “save his skin by playing word games.” “Alabama is a great state and deserves better than a chief justice who thinks he is above the law. We’ve said it many times. He acts as if he is the ayatollah of Alabama,” SPLC President Richard Cohen said after the hearing. Ambrosia Starling, the stage name of a small-town Alabama drag queen, was among the speakers against Moore. “We lost the war between the states. That means the Supreme Court holds the final authority over jurisdiction of law,” Starling drawled. Linda Chasom drove three hours from Georgia to attend the rally in support of Moore. She said she thought Moore was being persecuted for his conservative Christian beliefs. “My family is being persecuted. Judge Roy Moore is part of my family as a believer,” Chasom said. Republished with permission of the Associated Press.
