Trump tax plan could be good news for many, bad for deficit

U.S. President Donald Trump reacts after signing an executive order on education during an event with Governors at the White House in Washington, DC, U.S. on Wednesday. (REUTERS)
Updated 27 April 2017
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Trump tax plan could be good news for many, bad for deficit

WASHINGTON: Dismissing concerns about ballooning federal deficits, President Donald Trump on Wednesday proposed dramatic tax cuts for US businesses and individuals — outlining an overhaul his administration promises will spur economic growth and simplify America’s tangle of tax code rules.
His proposal, a one-page sketch short on detail, would reduce the top corporate tax rate by 20 percentage points and allow private business owners to claim the new lower rate for their take-home pay. It would whittle the number of tax brackets for individuals from seven to three, lower the top tax rate from 39.6 percent to 35 percent and double the standard amount taxpayers could deduct.
It would eliminate the estate tax and reduce taxes on investments, typically paid by the rich. It would further reduce the tax burden for the wealthy by eliminating the catch-all alternative minimum tax, which takes an additional bite out of high-income Americans.
More lower-income Americans would pay no tax at all, and there would be relief — still undefined — for families with child care expenses.
The plan does not propose any budget cuts or tax increases that might offset the lost revenue, a choice that alarms some fiscal conservatives in Trump’s party who have spent years railing about the dangers of deficit spending.
It also does not fully embrace tax proposals backed by Republican House Speaker Paul Ryan, an essential ally if the president is to make good on his promise to deliver a tax overhaul that creates growth and brings jobs to struggling parts of the country.
Still, “I would never, ever bet against this president. He will get this done for the American people,” said Gary Cohn, director of the White House National Economic Council. “He understands that there are a lot people who work hard and feel like they’re not getting ahead.”
The president’s proposal marks a rehash of an economic theory popularized in the 1980s. Trump officials essentially argue that benefits from the tax cuts will trickle down from higher profits for companies into stronger pay raises for workers and greater consumer spending. This expected surge in growth, in theory, would be enough to keep the federal budget deficit from shooting upward.
Some economists agree, but most budget experts say it’s unlikely.
“Unfortunately, it seems the administration is using economic growth like magic beans — the cheap solution to all our problems,” said Maya MacGuineas, president of the non-partisan Committee for a Responsible Federal Budget. “But there is no golden goose at the top of the tax cut beanstalk, just mountains of debt.”
Trump’s plan resembles aspects of the tax ideas he campaigned on last year. The right-learning Tax Foundation estimated that, even after accounting for growth, the Trump campaign plan would put a $2.6 to $3.9 trillion hole in the budget over 10 years.
“We know this is difficult,” Cohn said. “We know what we’re asking for is a big bite.”
Despite the details provided Wednesday, the proposal leaves significant open questions that could affect its impact on taxpayers and the economy.
The administration has yet to decide the incomes at which the new personal tax rates — 10 percent, 25 percent and 35 percent — would apply, meaning that some Americans might see their taxes increase if they get bumped into a higher bracket. It also has yet to spell out how the plan would stop wealthier Americans from exploiting a lower corporate rate to reduce their own taxes.
Administration officials intend to finalize details with members of the House and Senate in the coming weeks for what would be the first massive rewrite of the US tax code since 1986.
The possibility of a deficit increase, unacceptable to some Republicans, means that Trump would need to attract Democratic support to make the overhaul permanent.
Senate Democrats say his plan tilts its benefits to the wealthy, including Trump himself. The real estate magnate might save millions of dollars in his personal taxes because of the changes.
“This is an unprincipled tax plan that will result in cuts for the one percent, conflicts for the president, crippling debt for America and crumbs for the working people,” said Sen. Ron Wyden, or Oregon, ranking Democrat on the Finance Committee.
The Trump proposal would double the standard deduction for married couples to more than $24,000, while keeping deductions for charitable giving and mortgage interest payments.
On the other hand, it would trim other deductions, including for state and local tax payments, a change that could alienate lawmakers in states such as California and New York with higher state taxes.
“It’s not the federal government’s job to be subsidizing the states,” said Treasury Secretary Steve Mnuchin.
The administration has emphasized that the plan is focused on simplifying the tax code and helping middle class Americans. The median US household income is slightly above $50,000 annually.
In a boon for wealthier taxpayers, it would repeal the 3.8 percent tax on investment income from President Barack Obama’s health care law
The proposal has yet to be vetted for its precise impact on top earners, as several specifics are still being determined.
On the corporate side, the top marginal tax rate would fall from 35 percent to 15 percent. Small businesses that account for their owners’ personal incomes would see their top tax rate go from 39.6 percent to that corporate tax rate of 15 percent. Mnuchin said the change for small business owners — a group that under the current definition could include doctors, lawyers and even major real estate companies — would be done in a way that would ensure wealthier Americans could not exploit the change to pay less than intentioned in taxes.


Senate GOP pushes ahead with budget bill that funds Trump’s mass deportations and border wall

Updated 19 February 2025
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Senate GOP pushes ahead with budget bill that funds Trump’s mass deportations and border wall

  • This is the first step in unlocking Trump’s campaign promises — tax cuts, energy production and border controls — and dominating the agenda in Congress

WASHINGTON: Senate Republicans pushed ahead late Tuesday on a scaled-back budget bill, a $340 billion package to give the Trump administration money for mass deportations and other priorities, as Democrats prepare a counter-campaign against the onslaught of actions coming from the White House.
On a party-line vote, 50-47, Republicans launched the process, skipping ahead of the House Republicans who prefer President Donald Trump’s approach for a “big, beautiful bill” that includes $4.5 trillion in tax cuts that are tops on the party agenda. Senate Republicans plan to deal with tax cuts later, in a second package.
“It’s time to act,” said Senate Majority Leader John Thune, R-S.D., on social media, announcing the plan ahead as the House is on recess week. “Let’s get it done.”
This is the first step in unlocking Trump’s campaign promises — tax cuts, energy production and border controls — and dominating the agenda in Congress. While Republicans have majority control of both the House and Senate, giving a rare sweep of Washington power, they face big hurdles trying to put the president’s agenda into law over steep Democratic objections.
It’s coming as the administration’s Department of Government Efficiency effort is slashing costs across government departments, leaving a trail of fired federal workers and dismantling programs on which many Americans depend. Democrats, having floundered amid the initial chaos coming from the White House, emerged galvanized as they try to warn Americans what’s at stake.
“These bills that they have have one purpose — and that is they’re trying to give a tax break to their billionaire buddies and have you, the average American person, pay for it,” Senate Democratic Leader Chuck Schumer told AP. “It is outrageous.”
Schumer convened a private weekend call with Democratic senators and emerged with a strategy to challenge Republicans for prioritizing tax cuts that primarily flow to the wealthy at the expense of program and service cuts to US health care, scientific research, veterans services and other programs.
As the Senate begins the cumbersome budget process this week — which entails an initial 50 hours of debate followed by an expected all-night session with dozens if not 100 or more efforts to amend the package in what’s called a vote-a-rama — Democrats are preparing to drill down on those issues.
The Senate GOP package would allow $175 billion to be spent on border security, including funding for mass deportation operations and to build the wall along the US-Mexico border; a $150 billion boost to the Pentagon for defense spending; and $20 billion for the Coast Guard.
Republicans are determined to push ahead after Trump’s border czar Tom Homan and top aide Stephen Miller told senators privately last week they are running short of cash to accomplish the president’s mass deportations and other border priorities.
The Senate Budget Committee said the package would cost about $85.5 billion a year, for four years of Trump’s presidency, paid for with new reductions and revenues elsewhere that other committees will draw up.
Eyeing ways to pay for the package, Senate Republicans are considering a rollback of the Biden administration’s methane emissions fee, which was approved by Democrats as part of climate change strategies in the Inflation Reduction Act, and hoping to draw new revenue from energy leases as they aim to spur domestic energy production.
While the House and Senate budget resolutions are often considered simply statements of policy priorities, these could actually become law.
The budget resolutions are being considered under what’s called the reconciliation process, which allows passage on a simple majority vote without many of the procedural hurdles that stall bills. Once rare, reconciliation is increasingly being used in the House and Senate to pass big packages on party-line votes when one party controls the White House and Congress.
During Trump’s first term, Republicans used the reconciliation process to pass the GOP tax cuts in 2017. Democrats used reconciliation during the Biden presidency era to approve COVID relief and also the Inflation Reduction Act.
 

 


Brazil prosecutor charges Bolsonaro over failed coup bid

Updated 19 February 2025
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Brazil prosecutor charges Bolsonaro over failed coup bid

  • Bolsonaro has denied the accusations and said he was the victim of “persecution”

BRASÍLIA: Brazil’s attorney general on Tuesday formally charged far-right former president Jair Bolsonaro and 33 others over an alleged coup attempt after his 2022 election loss.
Bolsonaro, 69, and his co-accused were hit with five charges over the alleged bid to prevent President Luiz Inacio Lula da Silva from taking office after a bitter election race.
Attorney General Paulo Gonet Branco filed the charges at the Supreme Court “based on manuscripts, digital files, spreadsheets and exchanges of messages that reveal the scheme to disrupt the democratic order,” his office said in a statement.
“They describe, in detail, the conspiratorial plot set up and executed against democratic institutions.”
One of the charges is for the crime of “armed criminal organization,” allegedly led by Bolsonaro and his vice presidential candidate Walter Braga Netto.
“Allied with other individuals, including civilians and military personnel, they attempted to prevent, in a coordinated manner, the result of the 2022 presidential elections from being fulfilled,” read the statement.
The prosecutor’s office based its decision on a federal police report of over 800 pages, released last year after a two-year investigation which found Bolsonaro was “fully aware and actively participated” in the plot to cling to power.
Bolsonaro has denied the accusations and said he was the victim of “persecution.”
According to the statement from Branco’s office, the plot began in 2021, with “systematic attacks on the electronic voting system, through public statements and on the Internet.”
During the second round of the presidential election in October 2022, security agencies were mobilized to “prevent voters from voting for the opposition candidate,” said the statement.
Those involved at this stage worked to facilitate “the acts of violence and vandalism on January 8, 2023,” when Bolsonaro supporters stormed the presidential palace, Congress and Supreme Court.
The attorney general’s office said the criminal organization headed by Bolsonaro had pressured army chiefs “in favor of forceful actions in the political scene to prevent the elected president from taking office.”
Investigations also showed a plot to assassinate Lula, vice president Geraldo Alckmin and a high-profile judge with “the approval of” Bolsonaro.
According to the statement, the January 8 riots by Bolsonaro supporters urging the military to intervene were “the final attempt.”
The Supreme Court will now weigh the charges and decide whether to initiate proceedings against Bolsonaro.
Hours before the charges were filed, Bolsonaro told journalists in the capital Brasilia that he had “no concern” about the possibility of being indicted.


Israel-Gaza war fuels record level of anti-Muslim hatred in Britain, monitoring group says

Police officers stand near a cordon at Manchester Victoria Station, in Manchester. (AFP)
Updated 19 February 2025
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Israel-Gaza war fuels record level of anti-Muslim hatred in Britain, monitoring group says

  • The surge in hate incidents against Muslims due to Islamophobia has also been linked to the killing of three young girls in the northern English town of Southport last summer, Tell MAMA said

LONDON: The number of anti-Muslim incidents in Britain rose to a new high in 2024, according to data compiled by monitoring organization Tell MAMA, which said the war in Gaza had “super-fueled” online hate.
Tell MAMA said it verified 5,837 anti-Muslim hate cases — a mix of both online and in-person incidents — last year, compared with 3,767 cases the year before and 2,201 in 2022.
The organization’s data goes back to 2012 and is compiled using data-sharing agreements with police forces in England and Wales.
“The Middle East conflict super-fueled online anti-Muslim hate,” the group said in a statement, adding that “the Israel and Gaza War, the Southport murders and riots ... created a surge in anti-Muslim hate cases reported to Tell MAMA from 2023-2024.”
Its director Iman Atta described the surge as unacceptable and deeply concerning for the future.
Tell MAMA (Measuring Anti-Muslim Attacks) describes itself as an independent, non-governmental organization which works on tackling anti-Muslim hatred.
Separate data last week showed levels of hatred toward Jews across Britain have also rocketed to record levels in the wake of the October 7, 2023, attacks by Hamas on Israel and the subsequent war in Gaza.
The surge in hate incidents against Muslims due to Islamophobia has also been linked to the killing of three young girls in the northern English town of Southport last summer, Tell MAMA said.
False reports spread on social media that the killer, who has since been sentenced to at least 52 years behind bars, was a radical Islamist migrant, leading to racist riots involving far-right and anti-immigration groups across the country.
“We urge the public to stand together against hatred and extremism, and we urge those in positions of influence and public authority to consider how their language risks stereotyping communities,” Atta said, calling for coordinated government action to tackle anti-Muslim hate.

 


US Catholic bishops sue Trump administration for halt in funding for refugee settlement

President Donald Trump speaks at Mar-a-Lago in Palm Beach, Fla., Tuesday, Feb. 18, 2025. (AP)
Updated 19 February 2025
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US Catholic bishops sue Trump administration for halt in funding for refugee settlement

  • The lawsuit said the government is attempting to “pull the rug out” from under the program, causing it longstanding damage

WASHINGTON: Catholic bishops sued the Trump administration on Tuesday over its abrupt halt to funding of refugee resettlement, calling the action unlawful and harmful to newly arrived refugees and to the nation’s largest private resettlement program.
The US Conference of Catholic Bishops says the administration, by withholding millions even for reimbursements of costs incurred before the sudden cut-off of funding, violates various laws as well as the constitutional provision giving the power of the purse to Congress, which already approved the funding.
The conference’s Migration and Refugee Services has sent layoff notices to 50 workers, more than half its staff, with additional cuts expected in local Catholic Charities offices that partner with the national office, the lawsuit said.
“The Catholic Church always works to uphold the common good of all and promote the dignity of the human person, especially the most vulnerable among us,” said Archbishop Timothy Broglio, president of the USCCB. “That includes the unborn, the poor, the stranger, the elderly and infirm, and migrants.” The funding suspension prevents the church from doing so, he said.
“The conference suddenly finds itself unable to sustain its work to care for the thousands of refugees who were welcomed into our country and assigned to the care of the USCCB by the government after being granted legal status,” Broglio said.
The conference is trying to keep the program going, but it’s “financially unsustainable,” he said, adding that it’s trying to hold the US government to its “moral and legal commitments.”
The conference is one of 10 national agencies, most of them faith-based, that serve refugees and that have been sent scrambling since receiving a Jan. 24 State Department letter informing them of an immediate suspension of funding pending a review of foreign-aid programs.
The lawsuit, filed in the US District Court for the District of Columbia, notes that the resettlement program isn’t even foreign aid. It’s a domestic program to help newly arrived refugees — who arrive legally after being vetted overseas — meet initial needs such as housing and job placement.
“USCCB spends more on refugee resettlement each year than it receives in funding from the federal government, but it cannot sustain its programs without the millions in federal funding that provide the foundation of this private-public partnership,” the lawsuit says.
The lawsuit said the government is attempting to “pull the rug out” from under the program, causing it longstanding damage.
The lawsuit names the departments of State and Health and Human Services as well as their respective secretaries, Marco Rubio and Robert F. Kennedy Jr. Both departments have roles in delegating resettlement work to the bishops conference.
There was no immediate reply in court from those departments.
The USCCB said it is still awaiting about $13 million in reimbursements for expenses prior to Jan. 24.
As of Jan. 25, it said, there were 6,758 refugees assigned by the government to USCCB’s care that had been in the country less than 90 days, the period of time for which they’re eligible for resettlement aid.
The conference said suspending the resettlement effort will only prolong the time it takes for refugees to find employment and become self-sufficient.
 

 


Trump moves to widen IVF access, risking conservative fury

Updated 19 February 2025
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Trump moves to widen IVF access, risking conservative fury

PALM BEACH, United States: US President Donald Trump moved Tuesday to increase access to in vitro fertilization, a move likely to be welcomed by many Americans but which risks a backlash from conservatives and the religious right.
The Republican leader signed an executive order giving his advisers 90 days to find recommendations for protecting IVF access and “aggressively” reducing out-of-pocket and insurance costs for the treatment.
“My Administration recognizes the importance of family formation, and as a Nation, our public policy must make it easier for loving and longing mothers and fathers to have children,” the order stated.
“Americans need reliable access to IVF and more affordable treatment options,” it continued.
Trump told reporters at his Mar-a-Lago estate in Florida, shortly after signing the order, that “I think the women and families, husbands, are very appreciative of it.”
The president — whose billionaire top donor and ally Elon Musk has had several children by IVF — has long held conflicting stances on reproductive rights.
He frequently boasts about appointing Supreme Court justices who ended federal protections for abortion access in 2022, a seismic move that made him a hero to the anti-abortion movement, which has driven conservative voters to the polls for decades.
But he drew fury from that same movement when, during last year’s presidential campaign, he announced that in a second term he would ensure free IVF, and claimed to be the “father of IVF.”
At the time Trump voiced worries that Republicans were out of step with voters on the issue.
Republicans are divided on fertility treatments such as IVF, with many hailing them as a boost to American families.
Others, with strong beliefs that life begins at conception, oppose IVF because the procedure can produce multiple embryos, not all of which get used.
Almost every Senate Republican voted against assuring IVF access in a vote in June last year — including then-Ohio senator JD Vance, now Trump’s vice president.
Reproductive rights activists had feared that the Supreme Court decision on abortion threatened IVF, especially after a court in Alabama last year ruled that frozen embryos could be considered people, leading to several clinics briefly pausing treatments.
Trump’s Democratic rival Kamala Harris had put reproductive rights at the heart of her election platform, warning that Trump’s moves on abortion also jeopardized access to fertility treatments.