Senate GOP proposes to delay major corporate tax cut a year

Published: Friday, November 10, 2017 @ 2:56 AM
Updated: Friday, November 10, 2017 @ 2:55 AM

Sweeping tax legislation from Senate Republicans includes a one-year delay in plans for a major corporate tax cut despite strident opposition from the White House and others in their own party. Their bill would leave the prized mortgage interest deduction untouched for homeowners in a concession to the powerful real estate lobby but would ignore a House compromise on the hot-button issue of state and local tax deductions.

On the other side of the Capitol on Thursday, the House Ways and Means Committee approved its own version of the legislation on a party-line 24-16 vote, amid intense political pressure on the GOP to push forward on the first major rewrite of the U.S. tax code in three decades. It's President Donald Trump's top priority and a goal many Republicans believe has grown even more urgent in the wake of election losses on Tuesday that displayed an energized Democratic electorate.

Yet as the Senate Finance Committee unveiled its bill, a few stark differences emerged with the version approved by the House tax-writing committee, underscoring the challenges ahead in getting both chambers to agree on the complex and far-reaching legislation that would affect nearly every American.

The Senate measure fails to repeal the estate tax, though it doubles the size of estates exempted from the tax. It makes couples earning up to $1 million eligible for a $1,650 per-child tax credit. It creates a new 38.5 percent tax bracket for couples earning more than $1 million and individuals making more than $500,000 per year. And it takes a different approach to cutting taxes for businesses not organized as corporations that is less generous but applies to more businesses.

Democrats are strongly opposed to the GOP rewrite, so the Republicans must find agreement among themselves to have any hope of passage.

The Senate bill would fully repeal the state and local deduction claimed by many taxpayers, an idea that has drawn vigorous opposition from House Republicans in New York and New Jersey and resulted in a compromise in the House version of the bill that would allow property taxes to be deducted up to $10,000.

House Majority Leader Kevin McCarthy told The Associated Press that the Senate's total-repeal approach would face tough sledding in his chamber. As for the hard-fought compromise, he said, "I think it'd be difficult not to have it in the final bill."

On the other hand, the House bill would lower the cap on the mortgage interest deduction, an idea that caused intense blowback from the real estate lobby, but the Senate tax measure would leave it unchanged. That means homebuyers would continue to be able to deduct interest payments on loans of up to $1 million as permitted under current law; the House bill would reduce the limit to $500,000 for new home purchases.

The feverish efforts by Republicans in both chambers are aimed at fulfilling a self-imposed deadline to get legislation out of the House and Senate before Thanksgiving so the period between then and Christmas can be devoted to reconciling the two versions. But the Senate already seems unlikely to meet that deadline because of complex rules governing how it must consider the tax bill.

In one provision sure to cause a major dispute, the Senate measure includes a one-year delay in lowering the corporate tax rate, which is to be cut from 35 percent to 20 percent. Delaying that reduction would lower the cost of the bill to the Treasury, but the delay is opposed by the White House and some Senate Republicans.

"The president would like this to go into effect right away," Treasury Secretary Steven Mnuchin said Thursday on Fox Business Network.

Other obstacles remain, among them a band of deficit hawks in the Senate who are unhappy about the $1.5 trillion the legislation would add to the national debt over the coming decade.

"I remain concerned over how the current tax reform proposals will grow the already staggering national debt by opting for short-term fixes while ignoring long-term problems," said Sen. Jeff Flake, R-Ala. "We must achieve real tax reform crafted in a fiscally responsible manner."

The House and Senate bills are broadly similar in their outlines. Both would drastically reduce the corporate tax rate and also lower rates for individuals, while eliminating deductions claimed by many people.

The House version would collapse the current seven tax brackets into four, while the Senate would retain seven. The House bill would entirely eliminate the estate tax, while the Senate version would retain it while doubling the exemption level. Both versions would retain an adoption tax credit that had initially been eliminated in the House bill, but that adoption advocates fought to restore.

Both would increase a child tax credit, though not to levels sought by Sens. Marco Rubio and others, an indication of how individual provisions will need to be negotiated with one lawmaker after another in the weeks to come. House Republicans appear on track to pass their version of the bill next week, but in the Senate Majority Leader Mitch McConnell has a slim 52-48 majority that has proven difficult to corral.

Democrats are angrily opposed to the GOP rewrite, arguing it's a giveaway to the rich and corporate America. Republicans contend that the tax reductions will help the middle class, even though some independent analyses have found that the wealthy and corporations benefit disproportionately.

The tax bill must deepen federal deficits by no more than $1.5 trillion over the coming decade. If Republicans don't meet that, the measure would be vulnerable to a bill-killing Senate filibuster by Democrats that GOP senators lack the votes to block. It also cannot add to red ink beyond the first 10 years without facing the same fate.

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Associated Press writers Alan Fram and Erica Werner contributed to this report.

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House Oversight Committee launches probe into Rob Porter's employment

Published: Wednesday, February 14, 2018 @ 2:40 PM

Who is Rob Porter?

The House Oversight and Government Reform Committee is investigating the White House’s employment of staff secretary Rob Porter in the wake of allegations that he abused his two ex-wives, committee chairman Rep. Trey Gowdy, R-South Carolina, said Wednesday.

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Porter submitted his resignation Feb. 2.

Gowdy told CNN that the committee launched a probe Tuesday night into Porter’s employment and when White House officials knew about the domestic violence allegations levied against him.

Porter has denied any wrongdoing.

"We are directing inquiries to people that we think have access to information we don't have. You can call it official. You can call it unofficial,” Gowdy told CNN. “I'm going to direct questions to the FBI that I expect them to answer.”

Porter resigned Feb. 2 after his ex-wives went public with allegations of domestic abuse and said they spoke with federal authorities about the claims, prompting critics to question why he had remained employed in the Trump administration. The allegations held up a background check needed to grant Porter a security clearance for work in the White House. Officials said he was working on an interim security clearance.

The process to get Porter his clearance was ongoing at the time of his resignation.

“How do you have any job if you have credible allegations of domestic abuse?” Gowdy asked on CNN. “I am biased toward the victim.”

>> Related: White House ‘could have done better’ handling Rob Porter allegations, spokesman says

Porter’s first wife, Colbie Holderness, and his second, Jennifer Willoughby, told the FBI about the alleged domestic violence in January 2017, after they were contacted while Porter was applying for his security clearance, according to The Washington Post.

White House officials defended Porter in the immediate aftermath of the allegations, and President Donald Trump has faced criticism for what critics called his lack of care for the victims and his focus on the fact that Porter has denied the claims.

“I was surprised by (the allegations), but we certainly wish him well, and it’s a tough time for him,” Trump told reporters in Washington on Friday. “He did a very good job when he was in the White House, and we hope he has a wonderful career. … It was very said when we heard about it, and certainly he’s also very sad now. He also, as you probably know, says he’s innocent, and I think you have to remember that.”

U.S. President Donald Trump speaks with White House Secretary Rob Porter (C) and Sen. Mike Lee (R-UT) (R) as they return to the White House December 4, 2017 in Washington, DC. (Photo by Chris Kleponis-Pool/Getty Images)(Pool/Getty Images)

Holderness told The Daily Mail that Porter was verbally abusive throughout their relationship, which started in 2000, but that things escalated after they were wed in June 2003. She said Porter kicked her during their honeymoon and during a 2005 vacation in Italy, punched her in the face.

Willoughby, who married Porter in November 2009 and separated from him in early 2010, told The Daily Mail that Porter was verbally abusive.

Willoughby obtained a protective order against Porter in June 2010 after she said he violated their separation agreement and refused to leave her apartment, according to court records obtained by The Daily Mail. In the complaint, Willoughby said Porter punched in a glass door while she was locked inside the apartment, but left after he heard she was on the phone with police.

She told the Mail that in December 2010, he dragged her out of a shower while she was naked in order to yell at her.

The couple was divorced in 2013.

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Veteran resident dies, receives patriotic farewell from nursing home

Published: Saturday, February 10, 2018 @ 12:20 PM

File image of the American flag.
Christopher Bruno, Freeimages
File image of the American flag.(Christopher Bruno, Freeimages)

A veterans nursing home in South Carolina honored a resident who died this week with a patriotic farewell that has gone viral.

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In a Facebook post, Laura Dorn thanked the Richard M. Campbell Veterans Nursing Home in Anderson for taking such good care of her father, Doug Timmons, who had Alzheimer's disease and was a resident of the facility for the last three years. Dorn wrote that her father died early Thursday morning and the staff took the time to honor him for his service as his body was removed from the facility. In a video that Dorn posted, Timmons' body, draped with an American flag, is wheeled out as staff line up and a musical tribute plays.

In a Facebook review of the nursing home, Dorn thanked the "caring, accommodating and selfless" staff who she said treated her father like family. Dorn wrote, "They treated my Dad with dignity and respect from the first moment there until he drew his last breath, then sent him off with a hero's procession."

The video has received more than 3 million views.

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Trump thanks Putin for expelling U.S. diplomats

Published: Friday, August 11, 2017 @ 4:16 PM

President Donald Trump walks to Marine One before departing from the White House on August 4, 2017 in Washington, DC. President Trump is traveling to Bedminster, N.J. for his summer break. (Photo by Mark Wilson/Getty Images)
Mark Wilson/Getty Images
President Donald Trump walks to Marine One before departing from the White House on August 4, 2017 in Washington, DC. President Trump is traveling to Bedminster, N.J. for his summer break. (Photo by Mark Wilson/Getty Images)(Mark Wilson/Getty Images)

President Donald Trump on Thursday said that he is “very thankful” that Russian President Vladimir Putin decided to expel hundreds of U.S. diplomats, telling reporters in New Jersey that the decision will help the U.S. cut down on salaries.

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“I want to thank him because we’re trying to cut down our payroll, and as far as I’m concerned, I’m very thankful that he let go a large number of people because now we will have a smaller payroll,” Trump said, according to The Washington Post. “There’s no real reason for them to go back. … We’re going to save a lot of money.”

The comments were Trump’s first addressing Putin’s decision last month to expel 755 diplomats and technical personnel from the U.S. Embassy and consulates in Russia, according to The Post.

Trump’s proposed budget for fiscal year 2018 included a 29 percent cut of State Department funding, NPR reported.

But White House Press Secretary Sarah Huckabee Sanders said in an email to The New York Times on Friday that the president was making a joke.

“He was being sarcastic,” she told the newspaper.

Still, some lawmakers questioned Trump’s decision to praise Putin.

“After weeks of silence regarding Vladimir Putin's outrageous expulsion of hundreds of U.S. embassy personnel, President Trump once again let Russia off the hook and instead insulted America’s diplomats,” Rep. Eliot Engel, D-New York, the ranking member on the House Foreign Affairs Committee, said in a statement.

“No doubt, the President's staff will eventually try to clean up after the parade by claiming it was a joke, but there's nothing funny about this,” he said.

According to Politico, “many, if not most, of the positions cut will likely be those of locally hired Russian staffers. The local staff who are let go will likely get severance payments, but cost savings are possible in the long run.”

Unidentified sources told the news site that most of the U.S. diplomats made to leave Russia will be moved to different posts.

Putin’s decision to kick American diplomats out of the country came in retaliation for sanctions placed on Russia by the U.S. Trump signed the bill, which passed with strong bipartisan support and required congressional approval to lift the restrictions, although he criticized it as being “seriously flawed.”

Vladimir Putin - Fast Facts

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Photo shows Michigan congresswoman playing Candy Crush during State of the Union

Published: Saturday, February 03, 2018 @ 2:58 PM

Highlights of President Trump’s First State of the Union Address

A Democratic congresswoman from Michigan was caught playing Candy Crush on her phone during Tuesday's State of the Union address.

A Getty photographer captured U.S. Rep. Brenda Lawrence playing the game on her iPhone during President Trump's address, the Detroit Free Press reported. Other photographs taken during the address show many legislators using their phones.

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Lawrence is a former mayor of Southfield, Michigan. She was elected to Congress in 2014 to represent Michigan's 14th District and is in her second term, the Free Press reported. Her office did not respond to the Free Press for a request for comment on the photo.

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