Echo of Obamacare: Democrats divided over vow to repeal tax law

Los Angeles Mayor Eric Garcetti speaks at the 2018 California Democrats State Convention in San Diego. (AP/Denis Poroy, File)
Updated 28 February 2018
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Echo of Obamacare: Democrats divided over vow to repeal tax law

WASHINGTON: Republicans spent much of the last decade firing up their base with a vow to repeal President Barack Obama's health care overhaul. But when it came to doing the deed, they found promises much easier than execution.
Democrats may be starting down the same path on taxes.
From New Mexico to New York, high-profile liberals are calling for the repeal of the Republican tax plan that President Donald Trump signed into law just two months ago. They're betting big that the message will resonate with voters in the midterm elections in November and provide the sort of clear, populist economic message some Democrats worry has been missing. But others, including red-state Democrats, are clearly queasy about the strategy, mindful that repealing a government benefit once it takes hold is far easier said than done — and not always popular.
When pressed, some leading Democrats conceded that they'd repeal only certain portions of the tax law despite the implication that they'd go further.
Vermont Sen. Bernie Sanders, a 2016 presidential candidate who appeared last weekend in Iowa, Wisconsin and Michigan as part of the "Repeal the Trump Tax" national tour, said "No" three times in an AP interview when asked whether he backed full repeal.
"I think what we have got to do is sit down and take a look at what kind of tax benefits would work best for small business, for working families and the middle class," Sanders said. "But what we must repeal completely is tax breaks that go to billionaires and to profitable large corporations that are in some cases are paying very little in taxes right now."
Los Angeles Mayor Eric Garcetti, who may seek the Democratic presidential nomination in 2020 and was also featured on the repeal tour, offered a more aggressive position.
"Repeal this tax bill," Garcetti said. "It was passed by, and for, the Washington crowd and their rich friends. Corporations and billionaires are doing just fine."
The messaging challenge comes as the Republican tax overhaul emerges as a central issue in this year's midterm elections. More than health care, guns, or immigration, Republicans and Democrats both have embraced the tax debate. Each side believes it has the winning argument in a battle that will decide the balance of power in Washington for the last two years of Trump's first term.
The conservative Koch brothers' political network has already begun spending millions of dollars on TV ads and grassroots events to help improve the plan's popularity.
While Trump and many conservative leaders cheered the tax overhaul, it was among the least popular pieces of legislation in modern history when it became law in December. Not a single Democrat in the House or Senate voted for the tax plan, which overwhelmingly benefited the wealthy, but included modest savings for many middle-class and lower-income Americans.
"I would urge Democrats to embrace repeal. It is a simple clean message. It also captures essentially what most Democrats feel about this bill: It's bad," said Nicole Gill, whose liberal group, Tax March, coordinated the ongoing "Repeal the Trump Tax" national tour, which in addition to Sanders and Garcetti has already featured appearances from House Minority Leader Nancy Pelosi, Democratic National Committee Deputy Chairman Keith Ellison and at least 16 other members of Congress in recent weeks. The tour runs through mid-April.
Maryland Sen. Chris Van Hollen, who leads Senate Democrats' 2018 campaign efforts, encouraged all of his party's candidates, even the most vulnerable, to embrace their opposition to the tax law.
"Our members will be talking to these issues," Van Hollen said. "It doesn't matter if you're a red state or a blue state, the idea of running up the debt by $1.5 trillion and cutting Medicare and Medicaid to pay for tax cuts for big corporations and the wealthy is not popular."
So far, at least, red-state Democrats are quick to say they would not repeal the law if given the chance, in what is a far more cautious approach than some party strategists and blue-state officials would like.
"I think there's a lot of good things in the tax bill. I just think they went a little too far on some things," said West Virginia Sen. Joe Manchin, who is running for re-election this fall in a state Trump won by 42 points.
Manchin, for example, said he wanted the corporate tax rate placed at 25 percent and he would not have voted to repeal the health coverage mandate.
"No, I wouldn't vote to repeal it. I'm not that type of a person," he said in an interview, adding that he had a similar philosophy on Obama's health care overhaul: Fix it, rather than repeal.
Democratic Sen. Jon Tester of Montana, a state Trump won by 20 points, said he understands that some constituents will benefit from the tax law. He said headlines about bonuses are "all positive" as far as he's concerned.
"There's portions of the tax bill that actually made sense," he said in an interview. "But the thing is, who pays for it? And it's our kids."
During the bill signing in December, Trump highlighted the corporate tax cut in particular, which was dropped from 35 percent to 21 percent. Companies such as Apple, Walmart, Cisco and Pepsi will save hundreds of millions of dollars and sent some of the savings to workers in the form of bonuses and pay increases, but much more went to corporate executives and other shareholders. The bill also lowered the tax rates for each income level and doubled the standard deduction.
Most Americans, but not all, will save money on their tax bills in the coming years, with wealthier taxpayers saving the most. The individual tax cuts will expire in 2025, while the business cuts are permanent.
Virginia Gov. Ralph Northam, a Democrat elected three months ago, suggested that it didn't matter much whether Democrats promised outright repeal or major improvements as they campaign against the Republican tax law this fall.
"Whether you take an approach of repealing or taking a piece of legislation that you can improve upon — it's the same thing (with) the Affordable Care Act — nothing's perfect," Northam said.


Trump goes to war with the Fed in move feared to destabilize US financial markets

Updated 9 min 24 sec ago
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Trump goes to war with the Fed in move feared to destabilize US financial markets

  • Trump says he wants rate cuts now to help stimulate economic growth and has threatened to fire Fed Chair Jerome Powell if he does not comply
  • Powell has said he has no plans to step down early, adding that he considers the bank’s independence over monetary policy to be a “matter of law”

WASHINGTON: Donald Trump’s simmering discontent with the US Federal Reserve boiled over this week, with the president threatening to take the unprecedented step of ousting the head of the fiercely independent central bank.
Trump has repeatedly said he wants rate cuts now to help stimulate economic growth as he rolls out his tariff plans, and has threatened to fire Fed Chair Jerome Powell if he does not comply, putting the bank and the White House on a collision course that analysts warn could destabilize US financial markets.
“If I want him out, he’ll be out of there real fast, believe me,” Trump said Thursday, referring to Powell, whose second four-year stint as Fed chair ends in May 2026.
Powell has said he has no plans to step down early, adding this week that he considers the bank’s independence over monetary policy to be a “matter of law.”
“Clearly, the fact that the Fed chairman feels that he has to address it means that they are serious,” KPMG chief economist Diane Swonk told AFP, referring to the White House.
Stephanie Roth, chief economist at Wolfe Research, said she thinks “they will come into conflict,” but does not think “that the Fed is going to succumb to the political pressure.”
Most economists agree that the administration’s tariff plans — which include a 10 percent “baseline” rate on imports from most countries — will put upward pressure on prices and cool economic growth, at least in the short term.
That would keep inflation well away from the Fed’s long-term target of two percent, and likely prevent policymakers from cutting rates in the next few months.
“They’re not going to react because Trump posted that they should be cutting,” Roth said in an interview, adding that doing so would be “a recipe for a disaster” for the US economy.

Many legal scholars say the US president does not have the power to fire the Fed chair or any of his colleagues on the bank’s 19-person rate-setting committee for any reason but cause.
The Fed system, created more than a century ago, is also designed to insulate the US central bank from political interference.
“Independence is absolutely critical for the Fed,” said Roth. “Countries that do not have independent central banks have currencies that are notably weaker and interest rates that are notably higher.”
Moody’s Analytics chief economist Mark Zandi told AFP that “we’ve had strong evidence that impairing central bank independence is a really bad idea.”

One serious threat to the Fed’s independence comes from an ongoing case in which the Trump administration has indicated it will seek to challenge a 1935 Supreme Court decision denying the US president the right to fire the heads of independent government agencies.
The case could have serious ramifications for the Fed, given its status as an independent agency whose leadership believes they cannot currently be fired by the president for any reason but cause.
But even if the Trump administration succeeds in court, it may soon run into the ultimate guardrail of Fed independence: The bond markets.
During the recent market turbulence unleashed by Trump’s tariff plans, US government bond yields surged and the dollar fell, signaling that investors may not see the United States as the safe haven investment it once was.
Faced with the sharp rise in US Treasury yields, the Trump administration paused its plans for higher tariffs against dozens of countries, a move that helped calm the financial markets.
If investors believed the Fed’s independence to tackle inflation was compromised, that would likely push up the yields on long-dated government bonds on the assumption that long-term inflation would be higher, and put pressure on the administration.
“You can’t control the bond market. And that’s the moral of the story,” said Swonk.
“And that’s why you want an independent Fed.”
 


Plan for expanded Muslim community triggers hope, fear in Texas

Updated 19 April 2025
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Plan for expanded Muslim community triggers hope, fear in Texas

  • Texas governor and Trump ally Greg Abbott characterized the project as an attempt to install Islamic law
  • Senator John Cornyn said the project could violate the constitutional rights of Jewish and Christian Texans

PLANO, United States: Threats to Muslims living in Texas are nothing new, but lately the vile phone calls to Imran Chaudhary have ramped up.
The cause?
Chaudhary’s early plans for construction of 1,000 new homes, a community center, school, hospital and — controversially — a mosque and Islamic private school to serve the growing Muslim community near East Plano, in a thinly populated corner of east Texas.
One anonymous caller says, in an expletive filled message, “I suggest you get the f*** out of America while it’s still an option.”
The conservative, white, and Christian authorities tied to President Donald Trump in this state aren’t exactly welcoming either, launching investigations into the project’s legality.
Chaudhary says the pressure is misguided.
“We’ve been trying to follow every single law that is out there, from the state perspective to the federal perspective,” he said.
But just this week, Senator John Cornyn called for an investigation into the constitutionality of Chaudhary’s project, an offshoot of an existing site called the East Plano Islamic Center or “EPIC.”
The center “could violate the constitutional rights of Jewish and Christian Texans,” he said.
Texas governor and Trump ally Greg Abbott characterized the project as an attempt to install Islamic law. “To be clear, Sharia law is not allowed in Texas. Nor are Sharia cities. Nor are ‘no go zones’ which this project seems to imply,” he wrote on social media.
Texas is one of more than a dozen states that have enacted “anti-Sharia law” bills, which anti-hate group Southern Poverty Law Center calls “one of the most successful far-right conspiracies to achieve mainstream viability.”
The conspiracy theory holds that Islamic law, known as sharia, is encroaching on the American legal system, a claim the American Civil Liberties Union and other legal experts refute.
Chaudhary denies that he envisions a Muslim-only town, saying that it’s “open to all, anybody can use our services, community center, our school.”
As president of Community Capital Partners, which develops EPIC properties, Chaudhary told AFP, “We never even discussed sharia. From day one we’ve consulted with our attorneys what is the best way for us to do this project, to make sure that we follow all the state laws, we follow all the federal laws.”
In a show of goodwill, Chaudhary invited the governor to a Texas-style barbeque over social media. Abbott didn’t respond.

The EPIC Islamic community settled in Plano north of Dallas some 20 years ago, about 25 miles (40 kilometers) from the new community they want to build near Josephine.
The Plano settlement of around 5,000 people now have their own mosque. Iman Yasir Qadhi leads prayers there.
Born in Houston to a Pakistani family, Qadhi said Muslims like Texas because of the warm weather, low taxes and good food.
“Organically, when the mosque was built, a lot of people began moving in here and we found that our space wasn’t sufficient for us,” he said. “Because of the influx of people we are looking to expand.”
Only 313,000 Muslims reside in Texas, which has a population of more than 31 million, according to World Population Review.
Prospective EPIC residents can reserve lots by putting down 20 percent, with single townhouse pads starting at $80,000 and 1-acre lots going for $250,000. Maps posted online indicate more than two dozen lots have already been sold.
But at an April town hall meeting in Collin County, an overflow crowd showed up to speak out against EPIC’s project. And the developers’ lawyer Dan Cogdell said all the negative publicity will slow approvals down.
“The lies and the misinformation that Abbott’s putting out is striking,” he said.
Qadhi said he is worried about hate crimes. He said he himself has been accused of terrorism but “they are the ones terrorizing us.”
Moitree Rahman, a 38-year-old mother of two from Bangladesh, says she remains optimistic and looks forward to the expanding EPIC community.
“All the rhetoric that we are seeing and hearing, it’s not true,” she said. “That’s why we felt very confident in investing.”
 


At least 143 dead in DR Congo boat fire

Updated 13 sec ago
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At least 143 dead in DR Congo boat fire

  • Rescuers said packed wooden boat caught fire and capsized near Mbandaka, capital of Equateur Province, where the Ruki and the vast Congo river meet

KINSHASA, DR Congo: At least 143 people died and dozens more went missing after a boat carrying fuel caught fire and capsized in the Democratic Republic of Congo, officials said Friday.
Hundreds of passengers were crowded onto a wooden boat on the Congo River in northwest DRC on Tuesday when the blaze broke out, according to Josephine-Pacifique Lokumu, head of a delegation of national deputies from the region.
The disaster occurred near Mbandaka, capital of Equateur Province, at the confluence of the Ruki and the vast Congo river — the world’s deepest.
“A first group of 131 bodies were found on Wednesday, with a further 12 fished out on Thursday and Friday. Several of them are charred,” Lokumu told AFP.
Joseph Lokondo, a local civil society leader who said he helped bury the bodies, put the “provisional death toll at 145: some burned, others drowned.”
Lokumu said the blaze was caused by a fuel explosion ignited by an onboard cooking fire.
“A woman lit the embers for cooking. The fuel, which was not far away, exploded, killing many children and women,” she said.

The total number of passengers on board the doomed vessel was not known but Lokumu said it was in the “hundreds.”
Some survivors were rescued and admitted to hospital, Lokondo said.
But on Friday, he added, “several families were still without news of their loved ones.”
A vast Central African nation, the Democratic Republic of Congo suffers from a lack of practicable roads.
As a result travel often occurs on lakes, the Congo River and its tributaries, where shipwrecks are frequent and the death tolls often heavy.
A chronic absence of passenger lists often complicates search operations.
In October 2023, at least 47 people died after a boat navigating the Congo sank in Equateur.
More than 20 people died in October last year when a boat capsized on Lake Kivu in eastern DRC, according to local authorities.
Another shipwreck on Lake Kivu claimed around 100 lives in 2019.
 


British PM Starmer stresses commitment to free trade in talks with Trump, Downing Street says

Updated 19 April 2025
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British PM Starmer stresses commitment to free trade in talks with Trump, Downing Street says

  • UK seeking deal with Trump after he imposed 10 percent tariffs on most imports of British goods to the US
  • The two leaders also addressed the situations in Ukraine and Iran, and recent actions against the Houthis in Yemen

LONDON: British Prime Minister Keir Starmer spoke with US President Donald Trump, discussing trade between the two nations among other subjects including the situation in Ukraine and Iran, a Downing Street spokesperson said on Friday.
Britain is hoping to strike a deal with Trump after he imposed 10 percent tariffs on most imports of British goods to the United States and a higher 25 percent rate on imports of cars, steel and aluminum.
“The leaders began by discussing the ongoing and productive discussions between the UK and US on trade,” the spokesperson said, adding that Starmer emphasized his commitment to free trade while safeguarding national interests.
Starmer and Trump also addressed the situations in Ukraine and Iran, and recent actions against the Houthis in Yemen, the spokesperson from the prime minister’s office said.

 


Lawsuit challenges Trump administration crackdown on international students

Police detain a pro-Palestine demonstrator during a protest march in New York City on July 18, 2024. (AFP)
Updated 19 April 2025
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Lawsuit challenges Trump administration crackdown on international students

  • About 1,100 students at more than 170 colleges, universities and university systems have been affected since late March, according to an Associated Press review of university statements, correspondence with school officials and court records

WASHINGTON: A class action lawsuit filed Friday asks a federal court to reinstate the legal status of international students caught up in a Trump administration crackdown that has left more than a thousand fearful of deportation.
The suit filed by several American Civil Liberties Union affiliates seeks to represent more than 100 students in New England and Puerto Rico.
“International students are a vital community in our state’s universities, and no administration should be allowed to circumvent the law to unilaterally strip students of status, disrupt their studies, and put them at risk of deportation,” said Gilles Bissonnette, legal director of the ACLU of New Hampshire.
At schools around the country, students have seen their visas revoked or their legal status terminated, typically with little notice.
About 1,100 students at more than 170 colleges, universities and university systems have been affected since late March, according to an Associated Press review of university statements, correspondence with school officials and court records. The AP is working to confirm reports of hundreds more students affected.
Students have filed other lawsuits arguing they were denied due process. Federal judges have granted temporary restraining orders in New Hampshire, Wisconsin and Montana, shielding students from efforts to remove them from the US.
Plaintiffs in the new lawsuit, filed in federal court in New Hampshire, learned without warning their F-1 student statuses had been terminated, leaving in doubt their ability to stay in the country and finish their studies, according to the complaint.
One of them, Manikanta Pasula of India, was on the brink of getting his master’s in computer science at Rivier University in New Hampshire and applying to remain in the country through a work program for international students. Hangrui Zhang of China had come to the US for a Ph.D. program in electronic and computer science at Worcester Polytechnic Institute in Massachusetts. Now, he cannot work as a research assistant, which was his only source of income, the complaint said.
The government did not give notice it is required to provide before terminating a foreign student’s legal status, the lawyers said.
The Department of Homeland Security did not immediately respond to a message seeking comment.
Last month, Secretary of State Marco Rubio said the State Department was revoking visas held by visitors who were acting counter to national interests, including some who protested Israel’s war in Gaza and those who face criminal charges.
In some high-profile cases, such as that involving Columbia University activist Mahmoud Khalil, the Trump administration has cited involvement in pro-Palestinian activism as a rationale for deportation.
But colleges say most students affected by visa revocations played no role in those protests. Many are being singled out over minor infractions such as traffic violations that occurred long ago, and in some cases the reason is unclear, colleges say.