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The Pronk Pops Show 878, April 21, 2017, Story 1: French Confirm Killing of Police Officer By Radical Islamic Terrorist Killer, Karim Cheurfi, Connected To Islamic State, — Videos — Story 2: Will Marine Le Pen Win In The First Round of French Presidential Election? First Round –Yes — — Making France Great Again — Second Round –Marine Le Pen May Be First Woman President or Emmannuel Marcon The Youngest — Videos — Story 3: Trump Administration Rolls Out New Tax Reform Plan and House Votes On Repeal and Replace Compromise Bill — By Day 100 — American People Want The FairTax And Full Repeal of Obamacare and Republican Establishment Wants Partial Repeal of Obamacare and Border Adjustment Tax — Stupid Party? — Videos — Story 4: Democrats Want To Shut-down Government Over Trump’s Wall — Republicans Pass Continuing Resolution — Videos

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Pronk Pops Show 878: April 21, 2017

Pronk Pops Show 877: April 20, 2017

Pronk Pops Show 876: April 19, 2017

Pronk Pops Show 875: April 18, 2017

Pronk Pops Show 874: April 17, 2017

Pronk Pops Show 873: April 13, 2017

Pronk Pops Show 872: April 12, 2017

Pronk Pops Show 871: April 11, 2017

Pronk Pops Show 870: April 10, 2017

Pronk Pops Show 869: April 7, 2017

Pronk Pops Show 868: April 6, 2017

Pronk Pops Show 867: April 5, 2017

Pronk Pops Show 866: April 3, 2017

Pronk Pops Show 865: March 31, 2017

Pronk Pops Show 864: March 30, 2017

Pronk Pops Show 863: March 29, 2017

Pronk Pops Show 862: March 28, 2017

Pronk Pops Show 861: March 27, 2017

Pronk Pops Show 860: March 24, 2017

Pronk Pops Show 859: March 23, 2017

Pronk Pops Show 858: March 22, 2017

Pronk Pops Show 857: March 21, 2017

Pronk Pops Show 856: March 20, 2017

Pronk Pops Show 855: March 10, 2017

Pronk Pops Show 854: March 9, 2017

Pronk Pops Show 853: March 8, 2017

Pronk Pops Show 852: March 6, 2017

Pronk Pops Show 851: March 3, 2017

Pronk Pops Show 850: March 2, 2017

Pronk Pops Show 849: March 1, 2017

Pronk Pops Show 848: February 28, 2017

Pronk Pops Show 847: February 27, 2017

Pronk Pops Show 846: February 24, 2017

Pronk Pops Show 845: February 23, 2017

Pronk Pops Show 844: February 22, 2017

Pronk Pops Show 843: February 21, 2017

Pronk Pops Show 842: February 20, 2017

Pronk Pops Show 841: February 17, 2017

Pronk Pops Show 840: February 16, 2017

Pronk Pops Show 839: February 15, 2017

Pronk Pops Show 838: February 14, 2017

Pronk Pops Show 837: February 13, 2017

Pronk Pops Show 836: February 10, 2017

Pronk Pops Show 835: February 9, 2017

Pronk Pops Show 834: February 8, 2017

Pronk Pops Show 833: February 7, 2017

Pronk Pops Show 832: February 6, 2017

Pronk Pops Show 831: February 3, 2017

Pronk Pops Show 830: February 2, 2017

Pronk Pops Show 829: February 1, 2017

Pronk Pops Show 828: January 31, 2017

Pronk Pops Show 827: January 30, 2017

Pronk Pops Show 826: January 27, 2017

Pronk Pops Show 825: January 26, 2017

Pronk Pops Show 824: January 25, 2017

Pronk Pops Show 823: January 24, 2017

Pronk Pops Show 822: January 23, 2017

Pronk Pops Show 821: January 20, 2017

Pronk Pops Show 820: January 19, 2017

Pronk Pops Show 819: January 18, 2017

Pronk Pops Show 818: January 17, 2017

Pronk Pops Show 817: January 13, 2017

Pronk Pops Show 816: January 12, 2017

Pronk Pops Show 815: January 11, 2017

Pronk Pops Show 814: January 10, 2017

Pronk Pops Show 813: January 9, 2017

Masked police officers were photographed standing on top of a vehicle on the Champs Elysees following an incident which left one officer deadEmmanuel Macron and Marine Le Pen.Image result for trump omb director mike mulveney

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Story 1: French Confirm Killing of Police Officer By Radical Islamic Terrorist Killer, Karim Cheurfi, Connected To Islamic State,  — Videos — 

ISIS Reportedly Claims Responsibility For Paris Attack That Left 1 Officer Dead | TODAY

Is Marine Le Pen the Donald Trump of France?

Paris shooting: Gunman was ‘focus of anti-terror’ probe – BBC News

Police search home of shooting suspect in Paris suburb

Raw: Memorial For Officer Killed In Paris Shooting

Geert Wilders message for Europe

Revealed: ISIS terrorist who shot dead cop in Paris attack was arrested TWO MONTHS ago for threatening to kill police and served 15 years for trying to murder two officers

  • Policeman Xavier Jugele, 37, was killed last night after being ‘targeted’ on the Champs Elysees in central Paris
  • The attacker was eventually shot dead after French police officers rushed to the scene in the heart of the city
  • The gunman’s Audi contained a pump action shotgun, knives and ID of known ‘extremist’ Karim Cheurfi 
  • Two other police officers were ‘seriously injured’ and a ‘female foreign tourist’ was wounded in the incident
  • A note declaring allegiance to ISIS was discovered on the Champs Elysees and is being investigated by police 

French security services are today facing troubling questions as to how they failed to prevent an ISIS gunman from slaughtering one policeman and wounding two other officers in Paris when he was arrested as recently as February.

Karim Cheurfi, 39, had served 15 years of a 20-year jail sentence for attempting to kill two officers in 2001, before his release last year.

In February, the terrorist tried to obtain weapons and made threats to kill police officers, but was let go in early March due to lack of evidence.

On Thursday night, the fanatic was killed by police after he got out of his Audi and opened fire at police who had stopped at a red light on Champs Elysees. His car was packed with more weapons, including a pump action shotgun and knives. A copy of the Koran was also found in the vehicle.

Traffic officer Xavier Jugele, 37, died instantly with a shot to the head, while the other two were hurt before Cheurfi himself was gunned down by nearby armed police. A ricocheting bullet fired by the terrorist also wounded a female foreign tourist passing by.

ISIS has claimed responsibility for the attack and nicknamed the attacker ‘Abu Yousuf al-Belgiki’, which translates to ‘the Belgian’ in Arabic – a name which was listed in uncovered documents from the terror group last year.

A note declaring allegiance to ISIS was discovered on the Champs Elysees and is being investigated by police. Its presence and the speed at which ISIS claimed responsibility may suggest the attack was directed by the jihadist group rather than carried out by a lone supporter.

Karim Cheurfi

Pictured is the suspected ISIS gunman, who has been identified locally as 39-year-old father Karim Cheurfi

Pictured (left and right) is the suspected ISIS gunman, who has been identified locally as 39-year-old Karim Cheurfi

The alleged ISIS gunman, identified as 39-year-old Karim Cheurfi - who was jailed for 20 years for trying to kill officers in 2001 - parked his Audi and opened fire after police stopped at a red light on the world famous avenue. Pictured is his arrest warrant from last month, when he was detained for trying to obtain weapons 'to kill police'

The alleged ISIS gunman, identified as 39-year-old Karim Cheurfi – who was jailed for 20 years for trying to kill officers in 2001 – parked his Audi and opened fire after police stopped at a red light on the world famous avenue. Pictured is his arrest warrant from last month, when he was detained for trying to obtain weapons ‘to kill police’

Traffic officer Xavier Jugele (pictured), 37, died instantly with a shot to the head, while the other two were hurt before Cheurfi himself was gunned down by nearby armed police

Traffic officer Xavier Jugele (pictured), 37, died instantly with a shot to the head, while the other two were hurt before Cheurfi himself was gunned down by nearby armed police

Pictured is armed police crowded two other officers, believed to have been shot in the attack, on Champs Elysees on Thursday night

Pictured is armed police crowded two other officers, believed to have been shot in the attack, on Champs Elysees on Thursday night

French police leave the home of ISIS gunman Karim Cheurfi in the suburb of Chelles, in Paris, following last night's attack

French police leave the home of ISIS gunman Karim Cheurfi in the suburb of Chelles, in Paris, following last night’s attack

A woman places a flower near the spot on the Champs Elysees where the shooting occurred last night in the French capital

A woman places a flower near the spot on the Champs Elysees where the shooting occurred last night in the French capital

A body is removed from the scene after a traffic officer was killed by an ISIS gunman in central Paris last night

A body is removed from the scene after a traffic officer was killed by an ISIS gunman in central Paris last night

French police officers and forensic teams searched a vehicle which was close to the scene on the Champs Elysees in Paris

French police officers and forensic teams searched a vehicle which was close to the scene on the Champs Elysees in Paris

A police lorry seized the Audi which the attacker was driving, before he got out and shot at traffic officers last night

A police lorry seized the Audi which the attacker was driving, before he got out and shot at traffic officers last night

A still image from video footage shows police forensic investigators inspect the car used by the attacker in Paris last night

A still image from video footage shows police forensic investigators inspect the car used by the attacker in Paris last night

In the latest developments after the attack:

  • French police have this morning arrested three family members of ISIS gunman Karim Cheurfi 
  • Police are hunting a second suspect, who was brought to their attention by Belgian authorities 
  • A man whose image appeared on social media as ‘second suspect’ handed himself to police in Antwerp claiming he was not linked to the plot. Detectives have said this man had nothing to do with the attack 
  • Far-right presidential candidate Marine Le Pen called for all French terror suspects to be expelled
  • France’s government has reviewed its already extensive election security measures and says it is ‘fully mobilised’ and nothing will stop Sunday’s presidential vote
  • US President Donald Trump believes the attack will have a ‘big effect’ on the outcome of the election 
  • British Prime Minister Theresa May has sent condolences to the French president following the latest attack but the pair have not spoken directly since last night 
  • Iran’s foreign secretary Bahram Ghasemi said France was feeling a blowback for its support of rebels in Syria 

French officials revealed that Cheurfi was detained in Meaux, 24 miles east of Paris, on February 23 this year, after it emerged he was trying to buy weapons ‘to kill police’.

On Friday night, but prosecutors tonight denied that he was on a security watch list and added the terrorist showed no signs of radicalisation before the attack.

He reportedly used the alias ‘Abu Yousuf the Belgian’ and reportedly made threats to murder officers using the social media app Telegram, an instant messaging service.

Despite having a long list of police-hating convictions, he was able to obtain a Kalashnikov, a pump action shotgun and several knives ahead of last night’s attack.

He had been jailed for 20 years in 2005 for trying to kill two policemen.  He opened fire five times with a .38 revolver following a car chase in 2001, leaving the officers and a third victim wounded. All three survived the attack in Roissy-en-Brie, in the Seine-et-Marne department of northern France.

An armed police officer hoists his weapon as they storm the streets of Paris after the latest terror attack to hit the city

An armed police officer hoists his weapon as they storm the streets of Paris after the latest terror attack to hit the city

Armed police outside a shop in central Paris after an ISIS gunman killed a traffic officer and injured three other people

Armed police outside a shop in central Paris after an ISIS gunman killed a traffic officer and injured three other people

Armed police officers on the streets of Paris after a gunman killed a traffic cop and seriously injured two others last night

Armed police officers on the streets of Paris after a gunman killed a traffic cop and seriously injured two others last night

Armed police officers stood guard after they rushed to the scene in the centre of the capital following the incident which left frightened witnesses sprinting for their lives 

Armed police officers stood guard after they rushed to the scene in the centre of the capital following the incident which left frightened witnesses sprinting for their lives

A team of forensic detectives examine the Audi, which the gunman was driving. ID of Karim Cheurfi was found in the vehicle

A team of forensic detectives examine the Audi, which the gunman was driving. ID of Karim Cheurfi was found in the vehicle

Cheurfi, who was born in France, was a recluse who blamed police for ruining his life, a friend of the family revealed today.

OFFICER SHOT DEAD GUARDED BATACLAN AT ITS REOPENING

By Sam Tonkin for MailOnline 

The policeman killed by an ISIS gunman on the Champs-Elysees was today named as Xavier Jugelé, a 37-year-old Paris officer who defiantly said ‘no to terrorists’ at the reopening of the Bataclan theatre last November.

He was shot in the head when the terrorist – identified today as French national Karim Cheurfi, 39 – launched his attack on three police officers at around 9pm last night.

Jugelé, who was a proud defender of gay rights, was named as the victim who died by French newspaper Le Parisien.

It has since emerged that Jugelé was on duty at the reopening of the Bataclan theatre on November last year - a year on from the Paris attacks which left 130 dead.
Jugelé

It has since emerged that Jugelé (pictured left and right) was on duty at the reopening of the Bataclan theatre on November last year – a year on from the Paris attacks which left 130 dead

It has since emerged that Jugelé was on duty at the reopening of the Bataclan theatre on November last year – a year on from the Paris attacks which left 130 dead.

As British singer Sting marked the occasion with a performance at the concert hall, Jugelé defiantly told PEOPLE.com that he was there ‘to say no to terrorists’.

The policeman added: ‘I’m happy to be here. Glad the Bataclan is reopening. It’s symbolic.

‘We’re here tonight as witnesses. Here to defend our civic values. This concert’s to celebrate life. To say no to terrorists.

‘It doesn’t feel strange, it feels important,’ he added. ‘Symbolic.’

He did not attend formal mosque prayer services and became fascinated by jihadist propaganda via the internet, a confident of his mother claimed.

‘Karim did not pray, he drank alcohol and watched jihadist propaganda,’ neighbour Hakim, 50, told MailOnline.

‘He was not a good Muslim, he was a lost soul. He had no friends, no girlfriend, he never went out. He stayed at home all day watching stuff on the internet.’

Another neighbour added: ‘Karim didn’t go to the mosque. He just stayed at home. You never saw him.’

Hakim continued: ‘Karim blamed the police for ruining his life. He fired (a pistol) at police during a burglary and got sentenced to 15 years prison.

‘He was only 20 at the time. He hated the police, he said they had ruined his life. He was ‘anti-cop’. He would swear at officers in the street, call them bastards. He didn’t care.’

Hakim, whose family is close to Cheurfi’s mother, said the gunman had only recently returned to the quiet residential street after spending years behind bars.

Cheurfi lived separately from his mother in a purpose-built apartment in the front of the property.

Hakim added: ‘He lived in the studio in the garden. The mother lived in the big house.’

Cheurfi’s Algerian-born mother had divorced his father and had married a Frenchman with who she had second son. She later divorced her second son.

Another neighbour said: ‘His parents split up but they stayed living at the same property.

‘The father Salat lived in the apartment in the front of the garden and the mother lived in the house at the back of the property.

‘The mother married again, to a Frenchman, and they had a son together but the father stayed living at the property.

‘So it was a bit complicated but that’s life. Karim got on well with his half brother who is called Stephane.

‘But he went to live in the apartment with his father when he got of prison.’

Another neighbor added: ‘The mother is not here. She is in Algeria. She goes there every few months to visit relatives. She’s not been well.’

Officers have been searching the home of Karim in east Paris and arrested three of his family members.

A French government spokesman said the ISIS gunman began firing against police using ‘a weapon of war’.

The fatal incident unfolded as presidential candidates, including National Front party leader Marine Le Pen, debated on a TV show nearby before Sunday’s election.

Paris police search the suspected Champs-Elysee attacker’s house

A French police officer has been shot dead on the Champs Elysees in Paris (pictured) - just days before the French presidential election 

A French police officer has been shot dead on the Champs Elysees in Paris (pictured) – just days before the French presidential election

People held their hands up as they walked towards officers close to the scene where a policeman was fatally shot in Paris

People held their hands up as they walked towards officers close to the scene where a policeman was fatally shot in Paris

Police closed off the popular avenue (pictured) after a policeman was killed during a shooting incident in the French capital

Police closed off the popular avenue (pictured) after a policeman was killed during a shooting incident in the French capital

Pictured is the scene of a restaurant in Paris when the gunman opened fire on the streets outside. Diners are seen cowering on the ground in fear

Pictured is the scene of a restaurant in Paris when the gunman opened fire on the streets outside. Diners are seen cowering on the ground in fear

An armed policeman speaks to diners in a nearby Parisien restuarant, who cowered to the floor in fear of the ISIS gunman

An armed policeman speaks to diners in a nearby Parisien restuarant, who cowered to the floor in fear of the ISIS gunman

The gunman has been identified by police but they will not officially reveal his name until investigators determine whether he had accomplices, according to the Paris prosecutor.

Prosecutor Francois Molins said: ‘The identity of the attacker is known and has been checked. I will not give it because investigations with raids are ongoing.

‘The investigators want to be sure whether he had or did not have accomplices.’

The Interior Ministry spokesman said the officers were deliberately targeted and the police union added that the policeman was killed while sat in a car at a red light.

US President Donald Trump said: ‘It looks like another terrorist attack. What can you say? It never ends.’

The attack which took place on the Champs Elysees (pictured) comes just three days before the first round of balloting in France's tense presidential election

The attack which took place on the Champs Elysees (pictured) comes just three days before the first round of balloting in France’s tense presidential election

A French police officer stood guard on the Champs Elysees in central Paris following the fatal shooting, which has been described as 'terrorist related' 

A French police officer stood guard on the Champs Elysees in central Paris following the fatal shooting, which has been described as ‘terrorist related’

Police officers secured the area after a gunman got of an Audi vehicle and targeted officers by firing an automatic gun towards them 

Police officers secured the area after a gunman got of an Audi vehicle and targeted officers by firing an automatic gun towards them

A man and a woman put their hands in the air as armed officers stood just yards away from them following the incident in the city 

A man and a woman put their hands in the air as armed officers stood just yards away from them following the incident in the city

Officers searched the home of the suspected gunman on Thursday evening after they travelled to his home in the east part of the capital 

Officers searched the home of the suspected gunman on Thursday evening after they travelled to his home in the east part of the capital

People were seen running away from the area after Thursday night's attack, which has been described as being 'terrorist related'

People were seen running away from the area after Thursday night’s attack, which has been described as being ‘terrorist related’

Police officers searched the home of the suspected gunman in east Paris following the attack in the capital on Thursday 

Police officers searched the home of the suspected gunman in east Paris following the attack in the capital on Thursday

The Audi which is believed to belong to the attacker was taken away from the scene on the back of a lorry as police rushed to the popular avenue 

The Audi which is believed to belong to the attacker was taken away from the scene on the back of a lorry as police rushed to the popular avenue

Forensic experts and police officers were seen examining evidence from a van on the Champs Elysees in central Paris 

Forensic experts and police officers were seen examining evidence from a van on the Champs Elysees in central Paris

ISIS claimed responsibility for the attack and dramatic video footage showed the immediate aftermath of the incident which left one policeman dead.

Pierre-Henry Brandet, spokesman for the French Interior Ministry, confirmed that both injured officers in hospital were now ‘out of danger’ and ‘stable’, while the female tourist was far less badly hurt.

Mr Brandet did not name any of the victims, but praised the officers for ‘helping to avoid a bloodbath’ by ‘neutralising’ the attacker as quickly as possible.

French President Francois Hollande said the attack was ‘terrorist related’ and scheduled an emergency meeting following the shootings on Thursday evening.

Mr Hollande said a national tribute will be paid to the policeman and added that a ‘passerby was hit’ before the ‘assailant was neutralised’.

Conservative contender Francois Fillon, who has campaigned against ‘Islamic totalitarianism,’ said on France 2 television that he was canceling his planned campaign stops Friday.

Far-right candidate Le Pen, who campaigns against immigration and Islamic fundamentalism, took to Twitter to offer her sympathy for law enforcement officers ‘once again targeted.’

She canceled a minor campaign stop, but scheduled another.

Centrist candidate Emmanuel Macron offered his thoughts to the family of the dead officer.

Socialist Benoit Hamon tweeted his ‘full support’ to police against terrorism.

Le Pen and Francois Fillon announced that they have both cancelled their campaigning on Friday.

Paris gunman’s neighbour speaks out as police raid suspect’s home

French presidential election candidate Jean-Luc Melenchon (pictured) took part in the TV show just days before the election 

French presidential election candidate Jean-Luc Melenchon (pictured) took part in the TV show just days before the election

French presidential candidates, including National Front party leader Marine Le Pen (pictured), took part in a key debate

French presidential candidates, including National Front party leader Marine Le Pen (pictured), took part in a key debate

Mr Brandet said ‘all lines of investigation were being pursued’, while intelligence sources said the dead assailant was a known radical on a so-called S-file, for ‘State-security’.

This means he would have been under surveillance, because he was a known risk to the country.

An eyewitness, called Chelloug, said: ‘It was a terrorist. He came out with a Kalashnikov and started shooting, but he could’ve shot us on the pavement and killed more people with a spray of shots.

‘But he targeted the policemen and fortunately there were the policemen who killed him.’

Another witness said: ‘I saw someone shoot at the police officers. They returned fire, they killed him, he fell on the floor. And then the emergency services came.

‘It took place by Zara and there was a CRS (Republican Security Companies) van parked up and the man shot the police officers. He took out a weapon and shot them.

‘I think the police officer was killed on the spot and his colleagues fired back and killed the individual.’

The attack comes just three days before the first round of balloting in France’s tense presidential election.

A witness, identified only as Ines, told BFM that she heard a shooting, saw a man’s body on the ground and the area was quickly evacuated by police.

It comes just two days after police arrested two men in southern Marseille with weapons and explosives who were suspected of preparing an attack to disrupt the first-round of the presidential election on Sunday.

France is in a state of emergency and at its highest possible level of alert since a string of terror attacks that began in 2015, which have killed over 230 people.

Thousands of troops and armed police have been deployed to guard tourist hotspots such as the Champs Elysees or other potential targets like government buildings and religious sites.

Police officers quickly secured the area - which is popular with tourists and Parisians - after the attack and the road was on lockdown by 9pm 

Police officers quickly secured the area – which is popular with tourists and Parisians – after the attack and the road was on lockdown by 9pm

Police search the car reportedly used in Paris attack

Police officers took positions near the Champs Elysees avenue in Paris after the gunman - who was known to the security services - launched the attack 

Police officers took positions near the Champs Elysees avenue in Paris after the gunman – who was known to the security services – launched the attack

An armed soldier spoke to a man a told him to leave the area following the fatal shooting close to the Arc de Triomphe (pictured) 

An armed soldier spoke to a man a told him to leave the area following the fatal shooting close to the Arc de Triomphe (pictured)

French soldiers secure the Champs Elysees Avenue after a police officer was killed when a gunman opened fire in Paris

French soldiers secure the Champs Elysees Avenue after a police officer was killed when a gunman opened fire in Paris

French police officers searched the area after some of their colleagues were shot in the heart of Paris on Thursday evening

French police officers searched the area after some of their colleagues were shot in the heart of Paris on Thursday evening

French President Francois Hollande (pictured) said the attack was 'terrorist related' and scheduled an emergency meeting following the shootings

French President Francois Hollande (pictured) said the attack was ‘terrorist related’ and scheduled an emergency meeting following the shootings

‘Stay back, stay back!’ Police warn after shooting in Paris

LE PEN ACCUSED OF ‘EXPLOITING’ ATTACK FOR VOTES

By Thomas Burrows for MailOnline 

French Prime Minister Bernard Cazeneuve has accused far-right candidate Marine Le Pen of ‘exploiting’ the Champs-Elysees terror attack to win votes ahead of Sunday’s presidential election.

In the wake of the shooting Le Pen called for foreign terror suspects to be expelled immediately and claimed France needed a ‘presidency which acts and protects us.’

Responding to that, Cazeneuve, a Socialist, said Le Pen’s National Front (FN) ‘after each attack, seeks to exploit it and use it for purely political means.’

Experts believe the shooting last night could boost Le Pen’s chances of getting elected just days before France goes to the polls.

Le Pen today called for foreign terror suspects to be kicked out the country despite the fact the ISIS gunman was French

Le Pen today called for foreign terror suspects to be kicked out the country despite the fact the ISIS gunman was French

Voters could flock to far-right candidate Marine Le Pen following the latest terror attack

Voters could flock to far-right candidate Marine Le Pen following the latest terror attack

In last night’s attack a police officer was killed and two more were injured after a gunman opened fire close to the Champs-Elysees.

Le Pen today called for foreign terror suspects to be kicked out the country despite the fact the ISIS gunman was French. The 39-year-old had used the war name ‘Abu Yousuf the Belgian’.

Officials confirmed the homegrown fanatic was a French national despite his nickname.

A manhunt is underway for the second suspect who travelled by train to France from Belgium.

The Champs-Elysees terror attack could boost far-right candidate Marine Le Pen's chances of getting elected, experts believe

The Champs-Elysees terror attack could boost far-right candidate Marine Le Pen’s chances of getting elected, experts believe

The shooting took place just four days before the French election and experts believe it could bolster Le Pen’s chances of being elected.

Le Pen has made immigration and security the core part of her campaign. She has pledged to tighten French borders controls and build more jails, and claimed authorities were not doing enough to protect citizens from terror attacks.

More than half of police officers in France had already said they were voting for Le Pen because of her strong anti-terror stance, according to an IFOP poll.

Experts believe it could increase her chances of winning Sunday’s election.

Fredrik Erixon, director at the European Centre for International Political Economy, told CNBC: ‘[It could lead to] a greater performance of Marine Le Pen than otherwise would have been the case.

‘It’s difficult to see how this attack will not play into the hands of political forces that want this campaign to be focused only on issues around migration and terrorism.’

Vishnu Varathan, senior economist at Mizuho Bank, added: ‘The Paris gunman attack may well swing support in her favor; and this may not be picked up by the polls in a timely manner.’

Armed police officers were quick on the scene and closed the world famous avenue following the incident which shocked the city

Armed police officers were quick on the scene and closed the world famous avenue following the incident which shocked the city

The world famous was shut at around 9pm and it is believed police are still searching for a second suspect in relation to the attack 

The world famous was shut at around 9pm and it is believed police are still searching for a second suspect in relation to the attack

Police officers blocked the access of a street near the Champs Elysees in Paris after the fatal shooting on Thursday, April 20

Police officers blocked the access of a street near the Champs Elysees in Paris after the fatal shooting on Thursday, April 20

Officers were wearing vests and helmets as they patrolled the area close to where the fatal shooting took. A 39-year-old man is believed to be responsible for the shooting 

Officers were wearing vests and helmets as they patrolled the area close to where the fatal shooting took. A 39-year-old man is believed to be responsible for the shooting

The world famous street was put on lockdown by 9pm and officers guarded the area in central Paris (pictured, the Eiffel Tower in the background) 

The world famous street was put on lockdown by 9pm and officers guarded the area in central Paris (pictured, the Eiffel Tower in the background)

A policeman attended the scene and was armed with a gun following the incident. Police have reportedly issued a warrant for a second attacker

A policeman attended the scene and was armed with a gun following the incident. Police have reportedly issued a warrant for a second attacker

Up until now, polls showed voters more concerned about unemployment and their spending power than terrorism or security, though analysts warned this would change in the event of further bloodshed.

For weeks, centrist former banker Le Pen has been out in front but opinion polls now show there is a chance that any of the four leading candidates could reach the second-round runoff on May 7.

Scandal-plagued conservative Fillon and far-left firebrand Jean-Luc Melenchon have closed the gap substantially in the last two weeks.

A COUNTRY UNDER SIEGE: TIMELINE OF FRANCE TERROR

By Rory Tingle for MailOnline 

March, 18, 2017 – Convicted criminal with links to radical Islam shouted ‘I am here to die for Allah, there will be deaths’ seconds before he was shot dead during an attack at Orly airport. The 39-year-old, named locally as career criminal Ziyed Ben Belgacem, was killed after wrestling a soldier’s gun from her and fleeing into a McDonald’s. He sent a text message to his brother and father stating ‘I shot the police’, shortly before he was killed.

February 3, 2017 – A man is shot five times outside the Louvre museum in the heart of Paris after attempting to storm the historic art gallery.

July 14, 2016 – Amid Bastille Day celebrations in the Riviera city of Nice, a large truck is driven into a festive crowd. Some 86 people from a wide variety of countries are killed. The driver is shot dead. Islamic State extremists claim responsibility for the attack. The state of emergency in France is extended and extra protection, including robust barriers to prevent similar attacks, is put in place at major sites in France.

June 13, 2016 – Two French police officers are murdered in their home in front of their 3-year-old son. Islamic State claims responsibility for the slaying, which was carried out by a jihadist with a prior terrorist conviction. He is killed by police on the scene.

Nov. 13, 2015 – Islamic State militants kill 130 people in France’s worst atrocity since World War II. A series of suicide bomb and shooting attacks are launched on crowded sites in central Paris, as well as the northern suburb of Saint-Denis. Most of those killed are in a crowded theater where hostages are taken. Islamic State extremists claim responsibility and say it was in retaliation for French participation in airstrikes on the militant group’s positions in Syria and Iraq. It leads to the declaration of a state of emergency in France. Police powers are expanded.

Jan. 7, 2015 – Two brothers kill 11 people inside the Paris building where the satirical magazine Charlie Hebdo is headquartered in what Islamic State extremists claim is retaliation for the publication of cartoons about the Prophet Muhammad. More are killed subsequently in attacks on a kosher market in eastern Paris and on police. There are 17 victims in all, including two police officers. The attackers are killed.

The UK Foreign Office said: ‘The British Embassy is in contact with local authorities and urgently seeking further information following reports of a shooting incident on the Champs-Elysees in Paris.

‘You should remain vigilant and follow the advice of the local security authorities and/or your tour operator.

‘If you’re in the area and it is safe to do so, contact your friends and family to tell them you are safe.’

 were photographed standing on top of a vehicle on the Champs Elysees following an incident which left one officer dead

French police officers reacted after the shooting which left one officer dead and two more seriously injured in Paris 

French police officers reacted after the shooting which left one officer dead and two more seriously injured in Paris

French soldiers were armed with guns (pictured) and stood guard at the Arc de Triomphe near the Champs Elysees in Paris

French soldiers were armed with guns (pictured) and stood guard at the Arc de Triomphe near the Champs Elysees in Paris

Heavily armed officers had flooded the area following the gunshots which were heard in a busy part of the French capital 

Heavily armed officers had flooded the area following the gunshots which were heard in a busy part of the French capital

Reports have suggested that two police officers have been killed on the Champs Elysees in central Paris (pictured) this evening

Reports have suggested that two police officers have been killed on the Champs Elysees in central Paris (pictured) this evening

It was originally believed the other officer was seriously wounded while the attacker was killed on the world famous avenue (pictured)

It was originally believed the other officer was seriously wounded while the attacker was killed on the world famous avenue (pictured)

The incident last night comes as France remains in a state of emergency following the Paris attacks in 2015 and the Bastille Day killings in Nice in 2016.

The shooting comes just hours after one of the busiest roads in Paris was closed off by police as officers dealt with a ‘suspicious package’.

Reports suggested that items were discovered by officers as Rue de Rivoli remained shut. Stunned witnesses described seeing a large police presence on the two-mile-long road.

Rue de Rivoli is a busy commercial street just north of the River Seine which is home to some of the most fashionable shops in the world.

CHAMPS-ELYSEES: THE MOST BEAUTIFUL AVENUE IN THE WORLD

By Thomas Burrows for MailOnline 

The Champs-Elysees – the scene of Thursday night’s terror attack – is the beating historic heart of Paris.

It has been described as the ‘most beautiful avenue’ in the world and is visited by millions of tourists every year.

Tens of thousands of people daily throng the tree-lined 1.2 mile avenue that is home to luxury stores and chain stores, cafes, cinemas and high-end offices.

A tourist draw as famed as the Eiffel Tower just across the River Seine, the avenue, stretching from the Arc de Triomphe down to Concorde Square, was first laid out in 1670.

Over the decades people have gathered there to mark momentous moments in French history.

During the French Revolution in 1789 an angry mob set off from the avenue to march on Versailles, Louis XVI’s opulent retreat.

It was also the site chosen by General Charles de Gaulle to celebrate the August 25, 1944, liberation of Paris from the Germans during World War Two.

More recently, hundreds of thousands congregated along the avenue to celebrate France’s 1998 World Cup victory (sealed with a 3-0 win over Brazil) on home soil.

The Champs Elysees is famously the finish line for the world’s toughest cycling race, the Tour de France.

Thursday was not the first time violence has been visited on the avenue.

In 1986, it witnessed two attacks – the first, on February 3, seeing one death and eight injured at the Claridge shopping arcade.

A second attack on March 20 at the Point Show arcade killed two and injured 29. Both attacks were linked to Middle East terrorism.

On Bastille Day in 2002, president Jacques Chirac survived an assassination attempt by a right-wing extremist who fired off one shot from a rifle hidden in a guitar case before bystanders wrestled him to the ground.

http://www.dailymail.co.uk/news/article-4429938/Paris-terror-attack-video-shows-police-shoot-gunman.html#ixzz4evbT4kjq

Story 2: Will Marine Le Pen Win In The First Round of French Presidential Election? First Round –Yes — — Making France Great Again —  Second Round –Marine Le Pen May Be First Woman President or Emmanuel Marcon The Youngest President — Videos

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“Marine Le Pen will be the next French President” – Christopher Dickey

Dear French People | French Presidential Election 2017

Who will be France’s next leader? | DW English

France’s Presidential Election: What You Need to Know

French election 2017: Who’s who – BBC News

France’s presidential election: A populist front

French Presidential Election 2017 Explained

French presidential candidate Marine Le Pen and Europe’s far-right movement

Le Pen vs Macron

RT – Why Marine Le Pen is The Only Way to Save Europe #Frexit #EndEU

Le Pen destroys Merkel

Marine Le Pen will not put up with any nonsense from BBC reporter

Marine Le Pen gets poll boost after Paris attack as Donald Trump says her chances of victory have improved

Donald Trump Marine Le Pen

Donald Trump has said the Paris terrorist attack would boost Marine Le Pen’s presidential chances after a last-minute poll gave her a modest increase in support.

The US president said the shooting would “probably help” Ms Le Pen in Sunday’s election, because she is “strongest on borders, and she’s the strongest on what’s been going on in France.”

“Whoever is the toughest on radical Islamic terrorism, and whoever is the toughest at the borders, will do well in the election,” he said.

Marine Le Pen at a campaign rally in Marseille
Marine Le Pen at a campaign rally in Marseille CREDIT: EPA

US presidents typically avoid weighing in on specific candidates running in overseas election. But Mr Trump suggested his opinion was no different from an average observer, saying: “Everybody is making predictions on who is going to win. I’m no different than you.”

Cancelling visits and meetings on Friday, candidates traded blows across the airwaves as it emerged that the Isil-backed gunman had been kept in custody just 24 hours in February despite attempts to procure weapons to murder police.

Xavier Jugelé, 37, a policeman who had been deployed in the 2015 Bataclan attack, was killed in the shooting.

This undated image provided on Friday, April 21, 2017, by FLAG, an association of LGBT police officers, shows French police officer Xavier Jugele
This undated image provided on Friday, April 21, 2017, by FLAG, an association of LGBT police officers, shows French police officer Xavier Jugele CREDIT: FLAG VIA AP

Ms Le Pen, the far-Right candidate, blasted the mainstream “naive” Left and Right for failing to get tough on Islamism, calling for France to instantly reinstate border checks and expel foreigners who are on the watch lists of intelligence services.

François Fillon, the mainstream conservative candidate, pledged an “iron fist” in the fight against “Islamist totalitarianism” – his priority if elected. “We are at war, it’s either us or them,” said the conservative, whose campaign has been weighed down by allegations he gave his British wife a “fake job”.

Meanwhile, Emmanuel Macron, the independent centrist, whom critics dismiss as a soft touch, hit back at claims shutting borders and filling French prisons would solve the problem, saying: “There’s no such thing as zero risk. Anyone who pretends (otherwise) is both irresponsible and deceitful.”

Sticking to his campaign agenda, far-Left candidate Jean-Luc Mélenchon told everyone to keep a “cool head” as he took part in a giant picnic.

A last-minute Odoxa poll taken after the attack suggested that Mr Macron was still on course to come first in Sunday’s first round, with Ms Le Pen just behind and through to the May 7 runoff.

However, Mr Fillon and Mr Mélenchon were still snapping at their heels.

The government on Friday announced elite units would join 50,000 police and troops to guard polling booths on Sunday in France’s first presidential election to be held in a state of emergency.

Matthieu Croissandeau, editor of Nouvel Obs magazine, said the French are now thicker-skinned after two years of bloodshed. “The French are unfortunately getting used to terror attacks on home soil and I don’t think this latest one created the shock and awe that might have made a significant difference,” he said.

Ms Le Pen has struggled to get the campaign to focus on her party’s pet issues of security, Islam and immigration. By contrast, she has been thrown on the defensive over her position to pull out of the eurozone.

After the attack, she called on the “notoriously feeble” socialist, President François Hollande, to instantly reinstate border checks and expel foreigners who are on the watch lists of intelligence services. She said: “We cannot afford to lose this war. But for the past 10 years, Left-wing and Right-wing governments have done everything they can for us to lose it.

“We need a presidency which acts and protects us,” she said from her Paris campaign headquarters. Elected French president, I would immediately, and with no hesitation, carry out the battle plan against Islamist terrorism and against judicial laxity.”

Marine Le Pen reacts to the terror attack in Paris
But Ms Le Pen was not the only one to issue stern pledges. Mr Fillon, who also talks tough on security, said the fight against “Islamist totalitarianism” should be the next president’s priority.

“It will require an unyielding determination and a cool head,” the former prime minister said. “We are at war, there is no alternative, it’s us or them.”

Mr Fillon, though knocked off his initial course towards victory by incessant allegations involving “fake job” payments to his British wife, promised to govern with “an iron fist”.

But the moderate Mr Macron, whom other candidates have portrayed as too inexperienced, took a different tack, warning against any attempts to use the shooting for political gain. “I think we must once and for all have a spirit of responsibility at this extreme time and not give in to panic and not allow it to be exploited, which some might try to do,” he told French radio.

Karim Cheurfi had been detained in February after reports that he had threatened police 
Karim Cheurfi had been detained in February after reports that he had threatened police 

Ms Le Pen’s solutions, he said, were woefully simplistic and “would not protect France”. And he added that to promise a “zero risk” scenario “is both irresponsible and deceitful”.

He also took a swipe at Mr Fillon, saying that intelligence had been depleted on his watch as the prime minister in Nicolas Sarkozy’s presidency.

Meanwhile, Bernard Cazeneuve, the Socialist prime minister, accused Le Pen of “shamelessly seeking to exploit fear and emotion”.

Footage shows moments after suspected terrorist is shot in Paris

00:24

Opinion polls have for months forecast that Le Pen would make it through to the run-off, but then lose in the final vote. Given the margin of error, none of the leading four candidates is a sure bet to reach the final. All hope to woo the third of French voters still undecided.

Previous terror attacks ahead of elections – such as the November 2015 attacks in Paris before regional ballots – did not effect those ballots.

Analyst Who Predicted Trump’s Ascendancy Bets on Le Pen Win

April 21, 2017, 3:41 AM CDT April 21, 2017, 5:42 AM CDT
  • Undecided voters bad news for Macron, says GaveKal’s founder
  • Recommends overweight sterling, large-caps; bond shorts
 How Will Markets React to Elections in France?

Don’t bank on a relief rally in the euro area anytime soon.

Markets are underpricing the prospect of Marine Le Pen emerging victorious in the French election as a sea of undecided voters throws into sharp relief pronounced apathy for center-leftist Emmanuel Macron — the front-runner by a whisker — and the backlash against the European Union project.

That’s the conclusion drawn by Charles Gave, founder of Hong-Kong based asset-allocation consultancy GaveKal Research, who predicted the triumph of Donald Trump in the U.S. election, and is now betting on a win for the anti-euro National Front candidate.

“Le Pen’s momentum is a slow-moving reaction against the men of Davos — as we have seen with Brexit and Trump — but markets don’t want to believe it,” he said by phone before the first round of the French poll on April 23.

Given the prospect of a Le Pen victory, Gave, who has been researching tactical asset allocation for more than 40 years, is advising clients to adopt long positioning in the pound as the U.K. would benefit from haven bids, and shorts on inflation-linked German bonds amid the risk of deflation in the euro area.

Safer Bet

The French economist also recommends bets on the likely outperformance of publicly-listed European multinationals, given their outsize share of income in foreign currencies. In effect, for investors obliged to invest liquidity in euros, Gave says a basket of high-quality stocks is a safer bet than euro-denominated government bonds.

“The market is talking about the nightmare scenario but it’s not pricing it in” said Mark Tinker, head of AXA Framlington Asia. Tinker’s a GaveKal client, and admirer of Gave’s tail-risk warnings over the past year. “After Sunday, we will have more information to make a considered risk-return wager to trade and hedge, but high-quality European companies and German bonds look like an attractive bet,” Tinker said.

Markets are pining for a scenario that would preserve the status quo: Macron, an independent candidate, defeating Le Pen in the second round on May 7. Thursday saw something of a French relief rally, with strong demand at a government debt auction, while France’s benchmark CAC 40 Index rose 1.5 percent aspolls showed Macron pulling marginally ahead of Le Pen.

The euro held steady on Friday and French bonds gained after a police officer was shot in Paris, which may influence the outcome of the first-round vote, according to some analysts. The CAC 40 dropped for the first time in three days, declining 0.5 percent.

The stars, however, appear to be aligning for the National Front candidate, said Gave. The fact two candidates for the runoff are likely to be determined by voters who have yet to make up their minds — as many as 40 percent — is a bad omen for the centrist contender, he said.

Momentum Curtailed

At least half of the far-left and half of the center-right won’t vote for Macron in the second round if he is pitted against Le Pen, believing he is“tainted” by his association with Francois Hollande’s government, and would rather abstain, Gave said.

Supporters of Francois Fillon, a center-right candidate whose momentum has been curtailed by graft charges, and a sizable chunk of Macron’s followers would probably rally to Le Pen’s cause if she were to face leftist Jean-Luc Mélenchon in the final round, according to Gave. He sees only Fillon with a chance to defeat Le Pen in the run-off.

If she emerges victorious, the euro would tank as markets would price in the prospect of its dissolution, rather than focus on Le Pen’s legislative hurdles to exit the single-currency bloc. French and Italian bonds will be “unquotable” given vanishing bids, and the European banking system would be beset by seismic turmoil, he said.

https://www.bloomberg.com/news/articles/2017-04-21/analyst-who-predicted-trump-ascendancy-is-betting-on-le-pen-win

French Elections: Marine Le Pen Backed By Quiet Army of Women

Image: Marine Le Pen campaign rally in Paris

Le Pen waves at the audience after speaking at a rally in Paris on April 17. Christophe Petit Tesson / EPA

COGOLIN, France — Muslims preoccupy Jennifer Troin.

“I’m worried about my nieces having to wear the veil,” said the soft-spoken 29-year-old.

This fear has helped propel the young mother to the far-right of the political spectrum ahead of key presidential elections Sunday — and into the arms of the hard-line National Front party.

Troin sells children’s clothes at a store in Cogolin, a town of 11,000 a few miles from the jet-set resorts of the French Riviera. In 2014, Cogolin became one of a handful of communities nationwide to elect mayors from the National Front, which is also known by the acronym FN.

Image: Jennifer Troin, 29, is a sales assistant in a children's clothes store in Cogolin on April 13, 2017

Jennifer Troin, 29, is a sales assistant in a children’s clothes store in Cogolin, France on April 13, 2017.Saphora Smith / for NBC News

Troin told NBC News that it wasn’t just the FN’s stance on Islam and immigration that attracted her, but also the party’s populist take on the economy.

But most of all, it was the party’s charismatic leader, Marine Le Pen, who captured Troin’s loyalty.

“She fights for women’s rights against Islam,” she said. “I vote because of Marine.”

Troin is part of a quiet army of female National Front supporters, who could well tip the balance of the election and give the presidency to the hard-right.

An FN victory would rewrite the continent’s political playbook, given the party’s pledge to take France out of the European Union. Were it to win, it would not have been an easy ride for a movement that peaked in 2002 when founder Jean Mari Le Pen — Marine Le Pen’s father — reached the second and final round of the presidential election.

French voters flocked to the polls in the runoff to ensure Le Pen did not win, instead electing former President Jacques Chirac with a resounding 78 percent of the vote. Most pollsters expect a similar outcome in May’s second-round vote, predicting moderate voters to rally once again to shut out the FN.

But few doubt that the party’s anti-immigrant and anti-establishment platform is resonating.

The Front’s anti-Islamic message is especially potent in France, whose 4.7 million Muslims make up around 7.5 percent of the population. Islamist militant attacks have killed more than 230 people over two years and plunged the country into a long-term state of emergency.

Play
Marine Le Pen: Mass Immigration Is a Tragedy for France 1:00

This anxiety deepened on the eve of the election after a gunman ambushed three Parisian police officers on the Champs-Elysees late Thursday, killing one and wounding two others. ISIS claimed responsibility for the shooting and French President Francois Hollande said it was likely a terrorist attack.

Meanwhile, the FN’s influence has spread from its heartlands along the Mediterranean coast and in the rust-belt north, into rural “forgotten” France.

‘Marine is different’

Polling institute Elabe recently predicted that 22 percent of women would vote for the National Front in the first round Sunday — almost 5 percent more than in 2012.

With just days to go, polls show the race is tightening. Centrist Emmanuel Macron is edging his way ahead on 24 percent and Le Pen is a fraction behind on 22.5 percent, according to Bloomberg polling.

Just below them, hard-left candidate Jean-Luc Melenchon has enjoyed a late surge and scandal-hit conservative Francois Fillon has hung in there despite a slew of allegations that he paid thousands of euros to his British-born wife for assistance she allegedly did not provide. A third of voters remain undecided.

Image: French far-right Front National leader Marine Le Pen is kissed by her father Jean-Marie Le Pen
Front National leader Marine Le Pen is kissed by her father Jean-Marie Le Pen after being re-elected as president of the party on Nov. 30, 2014.Laurent Cipriani / AP, file

The FN’s ability to motivate French women could be decisive. Traditionally, it has struggled to attract female voters amid accusations of sexism, racism and anti-Semitism.

In its early years under Jean-Marie Le Pen, the party advocated a traditional image of women, opposed abortion rights and developed a reputation for a macho, strongman culture.

This bias showed. The FN was far less successful at attracting women than men. During Jean-Marie Le Pen’ time in charge, around 12 percent of French women supported the party compared with 17 percent of men, according toSciences Po Cevipof, a political institute based in Paris.

Marine Le Pen changed this.

Since taking over in 2011, she has softened the party’s image, steering the FN away from some of its overtly anti-Semitic and racist rhetoric in an effort to broaden its electoral base. In 2015, she expelled her father after he repeated his view that the Holocaust was a “detail of history.”

In the run up to the this year’s election, Le Pen dropped her last name from campaign handouts, referring to herself simply as Marine.

More recently, she specifically targeted the female vote. She has published special pamphlets and a campaign video that describes her as a woman and a mother and shows her flicking through family photo albums. She has also changed the party’s logo from a flame to a blue rose.

‘Hitler-like figure’

For Troin, the children’s clothes seller in Cogolin, her interest in the National Front has grown with Marine Le Pen’s rise. While immigration, job security and her fear of Islam remained underlying motivators, she was also attracted to the party’s re-brand.

For her, the former leader “was too outspoken, too offensive. He was a Hitler-like figure,” Troin said. “But Marine is different.”

In the last presidential election in 2012 — the first with Marine Le Pen as leader — the party’s gender gap closed to 1.5 percentage points. It’s what Cevipof professor and FN expert Nonna Mayer called the “Marine Le Pen effect.”

The party has long advocated clamping down on immigration and securing borders, and throughout her campaign Le Pen has consistently made the country’s Muslims a target.

Image: Marine Le Pen supporters cheer
Marine Le Pen supporters cheer at a rally in the southern city of Marseille on Wednesday.Jeff J Mitchell / Getty Images

“In France we respect women, we don’t beat them, we don’t ask them to hide themselves behind a veil as if they were impure. We drink wine when we want, we can criticize religion and speak freely,” she said during a rally Monday night, comments clearly aimed at Muslims.

During the rally, Le Pen pledged to suspend all visas from non-European migrants hoping to join their families in France — often code for immigrants from mainly Muslim North Africa and the Middle East.

After Thursday night’s attack in Paris, she again singled out what she sees as the threat posed by Islam.

“It is a war in which there can be no retreat because all our population and all our territory are exposed,” she said.

And for all her rebranding, Marine Le Pen can also fall back into the older, harsher style of messaging.

Cathy, a 50-year-old dental assistant who was shopping for groceries in Cogolin, said she was all set to vote FN but was taken aback by Le Pen’s recent comments that the French were not to blame for the anti-Jewish policies of the government during the Nazi occupation in World War II.

Referring to the “Vel d’Hiv” roundup of Jews by French police in July 1942, in which nearly 13,000 were detained and deported to concentration camps, Le Pen told French radio earlier this month she thought France was “not responsible.”

Cathy, who didn’t want to be identified by her second name, said Le Pen’s remarks had made her pause.

“Perhaps she has the same ideas as her father but they’re just hidden behind good PR skills,” she said. “So I’m still thinking.”

Others needed no time to reflect.

“The FN is xenophobic, racist and anti-feminist,” said retired teacher Mireille Escarrat. “For me it feels like the 1930s. We’re going backwards.”

‘I don’t talk politics here’

Many of the National Front supporters interviewed by NBC News were reluctant to admit it, and others were concerned about being named.

“I don’t talk politics here,” a local woman said, having led the way into a backroom of her business in the town. The 60-year-old asked not to be named or for her business to be described because she felt that admitting her loyalty to the FN would damage her reputation.

“I wouldn’t mind if it weren’t for my business,” she added, out of earshot of her customers. “But this is somewhere everyone can come whether you vote communist or for the right.”

Even in this town — where 53 percent of the population voted FN in 2014 — voting Le Pen still carries a social stigma. There’s no telling just how many closet female FN voters there may be.

The party’s marriage of socialist economic policy and right-wing identity politics is working in the town, which sits in the FN’s traditional southern heartland. With the decline of traditional industries and unemployment at 18 percent, locals worry Cogolin is being reduced to a seasonal economy dependent on rich resort communities.

Newly-converted women at the FN’s regional headquarters in neighboring Sainte-Maxime said Sunday’s election would be the first time they voted for the Front in a presidential race.

“We didn’t vote for Jean-Marie Le Pen because he scared us,” said Monique Guckert, 67, a retired shop assistant. “His ideas were too fascist, too racist. It was too much.”

Image: Mayor Marc Etienne Lansade sits at his desk
Cogolin’s mayor Marc Etienne Lansade sits at his desk.Saphora Smith / for NBC News

Even the FN mayor of Cogolin, Marc Etienne Lansade, admitted his mother would never have voted for Jean-Marie Le Pen.

“He drove her crazy,” he said. “Women understand Marine Le Pen, she’s divorced, she has three children, she works — she’s a modern woman,” he added, sitting in his second-floor office in the town hall.

Still, not all women appreciate Le Pen’s message. On Monday, a topless protester carrying flowers charged the candidate during a rally northern Paris.

Le Pen does not try to make out that she is a feminist. Of her 144 manifesto pledges, only one addresses women’s issues. In it, she promises to defend women’s rights by fighting against Islam, implementing a plan for equal pay and combating social and job insecurity.

“She’s a fake feminist,” said Camille Froidevaux-Metterie, a political scientist and expert on women in politics at the University of Reims.

Asked if a Le Pen win would be a victory for women, she said that though symbolically “it would not be nothing.” She said it would mean France is ready for a female president but would have elected one on a non-feminist agenda.

“It’s a sort of paradox,” she said.

http://www.nbcnews.com/news/world/french-elections-marine-le-pen-backed-quiet-army-women-n748136

French elections: New poll shows Macron’s lead over Le Pen is narrowing

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The Pronk Pops Show 876, April 19, 2017, Story 1: Murdoch Sons Killing Fox News — Talent Exits — Who is next? — Adorable Deplorable Audience Abandons Fox News — Going, Going, Gone — Life Is Not Fair! — Big Lie Media Dying — Videos — Story 2: Totalitarians of Lying Lunatic Left Attempt to Suppress Speech of Conservatives, Libertarians, and Classical Liberals — Nothing New — Go On Offense And Attack The Collectivist Totalitarians — Battle For Berkeley — Berkeley Protesters Take the Pepsi Challenge — Why the Right Won — Chief of Police Orders Berkeley Police To Stand Down — Videos

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The Pronk Pops Show Podcasts

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Story 1: Murdoch Sons Killing Fox News — Talent Exits — Who is next? — Adorable Deplorable Audience Abandons Fox News — Going, Going, Gone — Life Is Not Fair! —  Big Lie Media Dying — Videos — 

Image result for bill o'reilly on media mattersImage result for media mattersImage result for media mattersImage result for cartoons on george soros

The Bonner group/A Super PAC and fundraiser for Hillary & DNC. The Campaign against Bill OReily is orchestrated by MM & BG.

Glenn Beck ✔ @glennbeck The Bonner group/A Super PAC and fundraiser for Hillary & DNC. The Campaign against Bill OReily is orchestrated by MM & BG. #Smearproof 5:58 AM – 19 Apr 2017 321 321 Retweets 232 232 likes

http://www.glennbeck.com/2017/04/19/exclusive-proof-that-liberals-are-working-to-remove-bill-oreilly-from-fox-news/?utm_source=glennbeck&utm_medium=contentcopy_link

Bill O’Reilly Gets a $25M Copy of the Home Game Sayonara and “Hit the Road” Without Even a Goodbye

The Real Reason Bill O’Reilly Was Fired From Fox That Nobody’s Talking About

Bill O’Reilly’s Out at Fox | It Had Nothing to Do With Sexual Harassment | It Was Sponsors and Money

Mark Levin Reveals Why He Despised Bill O’Reilly

MARK LEVIN: I’m Not Gonna Defend Bill O’Reilly, But The Left Works As A CABAL

LIMBAUGH: Fox News Is Not Gonna Be The Way It Is For Long

Pitchfork and Torch Mob Crows Over O’Reilly’s Heave-Ho: Mum’s the Word As to Bill Clinton’s Victims

Ted Koppel tells Bill O’Reilly he’s ruined journalism

Bill O’Reilly Back On The Air After New Accuser Alleges Sexual Harassment | TODAY

Howard Stern Making Fun Of Bill O’Reilly Sexually Harassing Women 04/03/17

Sponsors split from FOX News over sexual harassment scandal

After Bill O’Reilly Blasts Megyn Kelly, She Insists: Ailes Made Fox Look Bad

Bill O’Reilly Calls His Critics “Hate Sites”

Bill O’Reilly Lashes Out At Media Matters And Salon For Highlighting His Anti-Immigration Coverage

Behold the Death Knell of Mainstream Corporate News Media

Megyn Kelly Flops and Folds at Fox and Faces a Career Stall at NBC Media Wasteland and Landfill

Why The Fake News Media Keeps Losing | Mike Cernovich and Stefan Molyneux

Sources: Fox News Has Decided Bill O’Reilly Has to Go

By Gabriel Sherman

The Murdochs have decided Bill O’Reilly’s 21-year run at Fox News will come to an end. According to sources briefed on the discussions, network executives are preparing to announce O’Reilly’s departure before he returns from an Italian vacation on April 24. Now the big questions are how the exit will look and who will replace him.

Wednesday morning, according to sources, executives are holding emergency meetings to discuss how they can sever the relationship with the country’s highest-rated cable-news host without causing collateral damage to the network. The board of Fox News’ parent company, 21st Century Fox, is scheduled to meet on Thursday to discuss the matter.

Sources briefed on the discussions say O’Reilly’s exit negotiations are moving quickly. Right now, a key issue on the table is whether he would be allowed to say good-bye to his audience, perhaps the most loyal in all of cable (O’Reilly’s ratings have ticked up during the sexual-harassment allegations). Fox executives are leaning against allowing him to have a sign-off, sources say. The other main issue on the table is money. O’Reilly recently signed a new multiyear contract worth more than $20 million per year. When Roger Ailes left Fox News last summer, the Murdochs paid out $40 million, the remainder of his contract.

According to sources, Fox News wants the transition to be seamless. Executives are currently debating possible replacement hosts. Names that have been discussed include Eric Bolling, Dana Perino, and Tucker Carlson, who would move from his successful 9 p.m. slot and create a need for a new host at that time. One source said Sean Hannity is happy at 10 p.m. and would not want to move.

The Murdochs’ decision to dump O’Reilly shocked many Fox News staffers I’ve spoken to in recent days. Late last week, the feeling inside the company was that Rupert Murdoch would prevail over his son James, who lobbied to jettison the embattled host. It’s still unclear exactly how the tide turned. According to one source, Lachlan Murdoch’s wife helped convince her husband that O’Reilly needed to go, which moved Lachlan into James’s corner. The source added that senior executives at other divisions within the Murdoch empire have complained that if O’Reilly’s allegations had happened to anyone else at their companies, that person would be gone already.

Spokespersons for 21st Century Fox and Fox News did not respond to requests for comment, nor did O’Reilly’s agent, Carole Cooper.

http://nymag.com/daily/intelligencer/2017/04/sources-fox-news-has-decided-bill-oreilly-has-to-go.html

Bill O’Reilly has been forced out of his position as a prime-time host on Fox News, the company said on Wednesday, after the disclosure of multiple settlements involving sexual harassment allegations against him. His ouster brings an abrupt and embarrassing end to his two-decade reign as one of the most popular and influential commentators in television.

Bill O’Reilly’s Show Lost More Than Half Its Advertisers in a Week

“After a thorough and careful review of the allegations, the company and Bill O’Reilly have agreed that Bill O’Reilly will not be returning to the Fox News Channel,” 21st Century Fox, Fox News’s parent company, said in a statement.

Mr. O’Reilly’s departure comes two and a half weeks after an investigation by The New York Times revealed how Fox News and 21st Century Fox had repeatedly stood by Mr. O’Reilly even as sexual harassment allegations piled up against him. The Times found that the company and Mr. O’Reilly reached settlements with five women who had complained about sexual harassment or other inappropriate behavior by him. The agreements totaled about $13 million.

Document: Fox Statement on Bill O’Reilly’s Departure

Since then, more than 50 advertisers had abandoned his show, and women’s rights groups called for his ouster. Inside the company, women expressed outrage and questioned whether top executives were serious about maintaining a culture based on “trust and respect,” as they had promised last summer when another sexual harassment scandal forced the ouster of Fox News’s chairman, Roger Ailes.

That put pressure on 21st Century Fox and the Murdoch family that controlled it. After the dismissal of Mr. Ailes, the company struck two settlements involving sexual harassment complaints against Mr. O’Reilly and also extended his contract, even as it was aware of the complaints about his behavior.

Last week, the Murdochs enlisted the law firm Paul, Weiss, Rifkind, Wharton & Garrison to conduct an investigation into Mr. O’Reilly’s behavior after one woman, who had detailed her allegations against Mr. O’Reilly to The Times, called the company’s hotline to report her complaints. Another complaint was reported on Tuesday, according to the lawyer who represents the woman making the allegations.

Mr. O’Reilly has denied the allegations against him.

Mr. O’Reilly, 67, has been an anchor at Fox News since he started at the network in 1996. He was the top-rated host in cable news, serving up defiant commentary every weekday at 8 p.m., with a message that celebrated patriotism and expressed scorn for political correctness. His departure is a significant blow to Fox News’s prime-time lineup, which in January lost another star, Megyn Kelly, from a lineup that dominated the prime-time cable news ratings.

https://www.nytimes.com/2017/04/19/business/media/bill-oreilly-fox-news-allegations.html?_r=0

Media Matters President Angelo Carusone: “Even If Bill O’Reilly Stays, His Show Will Never Be As Profitable”

Carusone: Fox News Said It Themselves … ‘If You Have A Television Show And You Have Advertiser Problems, You No Longer Have A Television Show That Is Viable.”

Video ››› April 5, 2017 6:30 PM EDT ››› MEDIA MATTERS STAFF

From the April 5 edition of Cheddar News:

KRISTEN SCHOLER (CO-HOST): We know that you’ve been following the developments in these sexual harassment claims against Fox News’ Bill O’Reilly, and as of right now ABC reporting 22 advertisers pulling out of advertising at least temporarily on his show. How is this going to force Fox News to respond long term? We’ve heard the response short-term which is it’s working with these advertisers, but big picture what do you think this means?

ANGELO CARUSONE: One thing that at the top that I point out is, when we think about the number of advertisers that have dropped, that 22 number is the ones that have given public statements.  From just observing the program and his advertisers the last couple of weeks, and then what his advertising looked like last night, and just from my own experience of running and being involved in similar kinds of advertiser efforts, like against Glenn Beck, I suspect that many more advertisers have actually adjusted their ad buys but just haven’t given public statements yet. Because many of the advertisers that had been advertising on the program every single night for the past few weeks did not appear last night after this controversy blew up, and I don’t think they’ll be there tonight.

JON STEINBERG (CO-HOST): Angelo, at what point — because they’re sticking by this guy, because he brings in money. And they basically don’t care; they don’t care how  bad it is or what he’s done, he makes them so much money that they’re going to stick with him. At what point is it enough advertisers that the math — the problem is, this looks bad for them, and it could be even worse for them, they could have gotten ahead of this and been like, “this guy’s toxic, we’re done,” right? Instead they paid his settlements, stuck by him, now they’re going to lose money and now they’re going to have to pull the ripcord on him, at which point it looks like they’re just doing it for the money.

CARUSONE: And I think that’s the exact right question, which is at what point does it actually start to affect them? What happens during these kinds of flare-ups is that there’s an assumption on the public’s part that if O’Reilly was to leave the program in a couple of days, that everything was pointless and worth it and Fox News is totally fine and Bill O’Reilly is totally fine. That’s actually just not true, and during the Glenn Beck period, after he lost a wave of advertisers, his advertiser rates never recovered. He limped along for over a year. His advertiser rates were a quarter of what other Fox News programs were even though he had a million viewers than many other Fox News programs, comparable ones, during similar time slots. He was beating the programs around him by a million viewers but his advertiser rates for the same advertisers, and for the same commercials, were sometimes a fifth of what they were on just a program an hour later or an hour earlier. That’s because they fell precipitously after he lost a lot of advertisers. The market addressed that issue; once you started to see there’s a problem buying ads on that show, media buyers weren’t going to pay the same rates anymore, and they never did. So that’s the first thing that I would point out, that no matter what, even if Bill O’Reilly stays, his program will never be as profitable as it was three days ago. That is just a bottom-line fact.

https://www.mediamatters.org/video/2017/04/05/media-matters-president-angelo-carusone-even-if-bill-oreilly-stays-his-show-will-never-be-profitable/215934

Political views of Bill O’Reilly

From Wikipedia, the free encyclopedia

American commentator Bill O’Reilly regularly expresses his point of view on a wide variety of political, social, and moral issues. He has personally labeled his political philosophytraditionalism.[1]The O’Reilly Factor, since its inception on the Fox News Channel in 1996, has been the primary outlet of his opinions. O’Reilly started his own radio program, The Radio Factor, a few years later. He has also written several non-fiction books detailing some of his beliefs. O’Reilly generally leans to the right on most issues,[citation needed] most notably the Bush administration’s War on Terror, but breaks from the conservative and Republican majority on such issues as the global warming controversy, gun control, gay marriage and the death penalty.

Political views

Political affiliation

On The O’Reilly Factor and on his former talk-radio program, Bill O’Reilly has focused on news and commentary related to politics and culture.[2] O’Reilly has long said that he does not identify with any political ideology, writing in his book The O’Reilly Factor that the reader “might be wondering if whether I’m conservative, liberal, libertarian, or exactly what…. See, I don’t want to fit any of those labels, because I believe that the truth doesn’t have labels. When I see corruption, I try to expose it. When I see exploitation, I try to fight it. That’s my political position.”[3] On December 6, 2000, the Daily News in New York reported, however, that he had been registered with the Republican Party in the state of New York since 1994. When questioned about this, he said that he was not aware of it and says he registered as an independent after the interview.[4] During a broadcast of The Radio Factor, O’Reilly said that there was no option to register as an independent voter; however, there was in fact a box marked “I do not wish to enroll in party.”[5] Despite being registered as an Independent, many view him as a conservative figure.[2] A Pew Research February 2009 poll found that 66% of his television viewers identify themselves as conservative, 24% moderate, and 3% liberal.[6] A November 2008 poll by Zogby International found that O’Reilly was the second most trusted news personality after Rush Limbaugh.[7]

In a 2003 interview with Terry Gross on National Public Radio, O’Reilly said:

I’m not a political guy in the sense that I embrace an ideology. To this day I’m an independent thinker, an independent voter, I’m a registered independent… there are certain fundamental things that this country was founded upon that I respect and don’t want changed. That separates me from the secularists who want a complete overhaul of how the country is run.[8]

Domestic politics

O’Reilly has opined on many domestic issues. O’Reilly said the Bill Clintonimpeachment stemming from the Lewinsky scandal was “not about sex. This is about honesty and cruelty. For Mr. Clinton, it was about undermining the justice system.” In the same article he writes that Gary Condit, a moderate Democraticcongressman from California who had an extramarital affair with Chandra Levy prior to her disappearance and death, should be held to the same standard.[9]

According to the Newsmax publication, O’Reilly has repeatedly claimed that Clinton had the Internal Revenue Service audit him.[10] O’Reilly says that he was audited three times since his program debuted in 1996.

O’Reilly has been critical of former Attorney GeneralJanet Reno, calling her “perhaps the worst attorney general in history”, and that the FBI became a “disorganized mess” during her tenure. He later praised former Attorney General John Ashcroft for going after the Arthur Andersen accounting firm, as well as Enron, WorldCom, Sam Waksal of Imclone and Martha Stewart.[11]

In 2002, O’Reilly had criticized Democratic Senator Hillary Clinton, stating that she would run for president in 2008. In an interview with Jay Leno on The Tonight Show, he said, “I just feel that Hillary is a socialist, and I’m paying enough tax. Hillary wants to take my money [and] your money… and give it to strangers. There’s something about that that offends me.” He said that she had voted for every single spending bill that year. In the same interview, he accused her of running as a political carpetbagger, and said that she intends to abolish the Electoral College in favor of the popular vote, claiming that it would be done only to give her an advantage in the presidential race.[12]

After criticizing the overturn of Snyder v. Phelps by the Fourth Circuit Court of Appeals, O’Reilly offered on March 30, 2010 to help Snyder pay the US$16,510 in court costs while he prepared an appeal to the Supreme Court.[13][14]

2004 presidential election

During the lead up to the 2004 presidential election, O’Reilly said that the Democratic Party has been taken over by the “far-left” in a conversation with former Democratic Congressman Brad Carson.[15] Shortly following the election, O’Reilly ridiculed a message in which Democratic challenger John Kerry thanked his supporters for their support as well as opposing “the attacks from big news organizations such as Fox, Sinclair Broadcasting, and conservative talk radio.”[16] O’Reilly shot back, calling Kerry a “sissy” six times.[17] Kerry himself stated publicly in a 2006 interview that he always felt he’d have a “fair shot” at conveying his views on The O’Reilly Factor and regrets not doing an interview prior to the election.[18]

Although O’Reilly has never officially endorsed any candidate, he did advise his audience not to support Democratic South Dakota senator Tom Daschle in his Senate re-election bid on his radio program, saying that, “[W]ith all due respect to the senator, we don’t have any respect for him at all. And we hope he loses in South Dakota. And I — really, I stay out of all these races, but you guys listening in South Dakota, vote for the other guy.”[19] Daschle would lose the 2004 Senate election in South Dakota to John Thune.[20]

2008 presidential election

In the 2008 Democratic primary, O’Reilly urged his viewers not to vote for a candidate, this time John Edwards, and called Edwards a “phony” regarding his public statements on poverty.[21] O’Reilly has, on many occasions, admitted to “having no respect for him”, and called him “arrogant” for keeping his campaign staffer Amanda Marcotte on after making remarks O’Reilly called offensive to Christians.[22]

O’Reilly has also criticized Republicans. When speaking to Ed Schulz in 2007, O’Reilly said that then-presidential candidate Rudy Giuliani had “terrible character judgement” with Bernard Kerik and felt that “disqualified him from being president.”[23]

“Culture War” and domestic politics

O’Reilly has taken to using the abbreviation “S-P”, for “SecularProgressive“, as a shorthand way of referring to a political category of people who want “drastic change” in the country.[citation needed] O’Reilly classifies the group as “far left”, and almost always refers to the group in a negative manner. However, he says that he is not equating the negative qualities he sees in “SPs” with a “liberal” political ideology, saying the SP camp is far more “libertine” with social values:

Liberal thought, however, can be a good thing. Progressive programs to help the poor, fight injustice and give working people a fair shake are all positive. But libertine actions damage a just society because actions have consequences. Kids who drink and take drugs are likely to hurt themselves and others. But obviously, the SPs do not make judgments like that.[24]

In his book Culture Warrior, O’Reilly called President John F. Kennedy and Dr. Martin Luther King Jr. examples of liberals who were also traditionalists, also citing current US Senators Joe Lieberman of Connecticut and Evan Bayh of Indiana as liberal/Democratic “traditionalists”.

Foreign politics

Immigration and border control

O’Reilly has supported stricter border controls, including placement of the National Guard troops on the US-Mexican border and has criticized President George W. Bush for not allocating enough resources to make border security effective. He also criticized Ronald Reagan‘s act of amnesty, claiming that it made the illegal immigration problem worse.[25] O’Reilly makes a distinction between criminal illegal immigrants and non-criminals by saying that criminal illegal immigrants should be deported immediately. O’Reilly criticizes the lack of cooperation between local sanctuary cities and the INS.[26]

The Iraq War

O’Reilly initially supported the invasion of Iraq. Speaking on ABC’s Good Morning America on March 18, 2003, O’Reilly promised that “If the Americans go in and overthrow Saddam Hussein and it’s clean [of weapons of mass destruction]…I will apologize to the nation, and I will not trust the Bush administration again.”[27] In another appearance on the same program on February 10, 2004, O’Reilly responded to repeated requests for him to honor his pledge: “My analysis was wrong and I’m sorry. I was wrong. I’m not pleased about it at all.”[28] With regard to never again trusting the current U.S. government, he said, “I am much more skeptical of the Bush administration now than I was at that time.”

O’Reilly has questioned the U.S. invasion of Iraq in hindsight, in particular the performance of Defense Secretary Donald Rumsfeld. However, he maintains that the United States “did a good thing by trying to liberate a country”.[citation needed] O’Reilly says the war effort should continue as long as progress is being made. He has also said that some anti-war activists are actively rooting for the United States to lose:

General McCaffrey says strong progress is being made. He believes the Sunnis have turned against Al Qaeda and that the Maliki government is neutralizing the Shi’ia death squads.

Again, I don’t know. With all America has sacrificed in Iraq, though, it seems reasonable to let the end game play out. If things are getting better, don’t derail the train.

But the anti-war crew is now fully invested in defeat. So the struggle at home is becoming even more vicious. Iraq is a shooting war. America’s a political war. Both are driven by hatred.[29]

O’Reilly called the Iraqi people a “prehistoric group”, citing a poll showing that only two percent of them viewed the U.S. Forces as liberators and 55 percent preferred that they leave. “We cannot intervene in the Muslim world ever again”, he said. “What we can do is bomb the living daylights out of them (…) no more ground troops, no more hearts and minds, ain’t going to work.”[30]

In an interview with White House Press Secretary (and former Fox News colleague) Tony Snow, O’Reilly said that the United States cannot win given the circumstances of Iraqis not supporting the effort:

You can’t win. No one could. No nation could unless the Iraqi people turn on all the terrorists. And they’re not. They’re not, Tony.

O’Reilly went on to say that the country was corrupt and compared the situation to the American support of South Vietnam during the Vietnam War:

It’s like South Vietnam. It’s the same thing. There were a lot of South Vietnamese helping us. A lot fought and died on our side but there wasn’t enough of them to prevent the communists which were more united.[31]

O’Reilly would go on to praise General David Petraeus for reducing American casualties and advancing American objectives with the 2007 troop surge:

The cost has been great. We all know that. In suffering and cash. And the Iraqi government is still a mess. But General Petraeus, backed by a brave and professional U.S. military, has restored much order, largely defeated the Iraqi Al Qaeda thugs, and at least given the good people of that country a chance to prosper. General David Petraeus is “The Factor” person of the year by a wide margin.[32]

During The Rumble with Jon Stewart, O’Reilly admitted that “We should not have gone to Iraq. Afghanistan we had to.”[33]

Terrorism

O’Reilly has endorsed an aggressive War on Terror policy.[34] He supports coercive measures to extract information from detainees at Guantanamo Bay, which he visited on two occasions. He has said that, in comparison to procedures used under the regimes of dictators such as Adolf Hitler and Pol Pot, the U.S.’s tactics are not torture and are beneficial even when involving physical techniques,[35] claiming that “Torture is taking my fingers off, disfiguring me, taking my eye out — not keeping me in a cold room and uncomfortable with blaring rock music.”[36] O’Reilly cites waterboarding as a successful coercive measure that should not be classified as torture, citing that Abu Zubaydah and Khaled Sheikh Mohammed have both given up valuable information after being subjected to the technique:

In my opinion, it is immoral to allow terrorists to kill people when you can stop them. If you capture someone who knows the inner workings of a terror outfit, you make life very uncomfortable for that person within boundaries set by Congress.

But let’s stop the nonsense here. America’s not a bad country because it waterboarded Zubaydah. The Bush administration has done its job. We haven’t been attacked since 9/11.

The liberal press, politicians, the ACLU can’t stop any wrongdoing. They’re all lost in a fog of misguided indignation, crazy with hatred for Bush, but we the people must take a stand here. This isn’t a game. This is life and death. And if you don’t believe it, I know scores of people right here in New York City that will tell you about their dead loved ones.

Waterboarding should be a last resort, but it must be an option.[37]

He has also said that detainees should be judged under military tribunals, but not protected under the Geneva Convention because the convention requires combatants to wear a uniform.[35]

He has been critical of politicians such as Democratic Speaker of the HouseNancy Pelosi and private citizens such as financier George Soros for wanting to try terror suspects in civilian courts.[38]

O’Reilly has said that both political parties in the United States are “playing games” with regards to the war on terrorism:

…both the right and the left are playing games to some extent. Certainly, Al Qaeda remains dangerous, but the only way to hit them is to invade Pakistan. Do the Democrats want to do that?

On the other hand, it would be a tragedy if after all the blood and treasure Americans have sacrificed, Al Qaeda has not been badly damaged.

America should be united in fighting these savages, but we’re not. Ideology has poisoned a reasoned, disciplined approach to defeating the jihadists. America’s great strength, diversity of thought, can also be a weakness. And Al Qaeda knows it.

The old saying goes, “United we stand, divided we fall.” Well, we’re divided.[39]

George Soros

O’Reilly has accused billionaire businessman, investor and political activist George Soros of trying to influence the 2008 election by donating to causes and organizations that O’Reilly calls the “radical left”, such as moveon.org, which regularly criticizes conservative politicians. O’Reilly said of Soros “If Mike Myers didn’t invent Dr. Evil, some would give Soros that moniker.”[40] O’Reilly also accused Media Matters for America of receiving funds from Soros;[41] although Media Matters denies having any funding directly or indirectly from Soros,[42] he and the group’s founder, David Brock, have raised money together to fund political advertisements challenging John McCain in the 2008 election for what politico.com called “attack ads”.[43] O’Reilly responded to the politico report by labeling Soros, Brock and Paul Begala an “American axis of evil” and saying

This, ladies and gentlemen, is ultra dangerous. Most Americans have no idea who Soros or Brock are. They will only know what they see on TV, smear stuff against McCain. And the pipeline extends directly to NBC News, which will publicize every piece of slime Brock can create. Only one word describes this: despicable.[44]

O’Reilly alleged that PBS personality Bill Moyers oversaw $500,000 worth of money transferred from the Shoeman Center Foundation (a group Soros donated to) to Media Matters.[45]

you know, you’ve got to admire Soros for coming up with this organization. I mean, you know, he’s made billions by doing this in business, by being in Curaçao and Bermuda and France, where he was convicted of a felony. And he knows how to do this. He knows how to move the money around and use it to gain influence. And now he’s set his sights on changing the basic fabric of this country.[46]

The organization to which O’Reilly refers is the Open Society Institute.[45]

ACLU

O’Reilly has been critical of the American Civil Liberties Union (ACLU), calling it “the most dangerous organization in the United States of America” especially in their challenging of the Justice Department and the Department of Defense regarding the War on Terror. He has called them a “fascist” organization in response to their threatened lawsuit against Los Angeles County for failing to remove a cross from its official seal.[47]

O’Reilly alleged hypocrisy on the part of the ACLU for stating that New York City‘s random searches of bags in the public transportation as a breach of personal rights, but requiring people entering their New York headquarters to consent to a bag search.[48]

O’Reilly asserted that the ACLU is now a political organization rather than an advocacy group, taking positions and cases based on politics rather than free speech.

He has come down hard on the organization for its actions on behalf of the North American Man Boy Love Association (NAMBLA) which is currently under suspicion of involvement with the rape and murder of a young boy:

Now many of these people subscribe to a philosophy of relativism. That is a theory which says there’s no absolute right or wrong. All moral values are relative. What’s wrong for you is not wrong for your neighbor if he or she doesn’t think his or her actions are wrong. That’s what the North American Man-Boy Love Association (NAMBLA) is all about. Those loons believe it’s OK to rape kids because they want to.[49]

The ACLU defends NAMBLA’s freedom of speech surrounding their publications and has said that the legal blame in the murder should go to who committed it.[50]

The ACLU has said that they sometimes have to defend “unpopular” speech or speech that they don’t agree with, including the Ku Klux Klan‘s, saying their only “client” is the Bill of Rights.[51] O’Reilly alleges the ACLU “cherry picks” its cases to promote a left wing agenda while not supporting causes of free speech that conservatives support in his criticism of the ACLU defending live sex shows in Oregon.[52]

O’Reilly decried the group’s criticism of The Minutemen, claiming the latter were only engaging in a form of protest, a right the ACLU defends. O’Reilly alleges that the organization is protesting the Minutemen because they are going against the ACLU’s agenda.[53][54]

O’Reilly accused the organization of having an anti-Christian bias when it protested the portrayal of the nativity scene in New York City Public Schools, but did not protest displayal of the Jewish menorah or the Islamic star and crescent.[55]

O’Reilly criticized the ACLU for suing San Diego County for renting property to the Boy Scouts of America in Balboa Park. The ACLU brought up a law claiming that the Boy Scouts discriminated against gays and atheists. O’Reilly criticized the San Diego City Council for voting 6-2 to vote the Scouts out before a ruling on the lawsuit was made.

It would be impossible for the Boy Scouts (search) or any children’s organization to admit avowed homosexuals because of the potential liability. Say the Scouts put openly gay and straight kids together and some sexual activity occurred. Well, parents could sue for millions, same way parents could sue if the Scouts put boys and girls together and underaged sex occurred. As far as the atheist issue is concerned, the Scouts say no specific belief in God is necessary, only an acknowledgement of a higher power. And that power could be nature. Come on. The whole discrimination thing is bogus.

Part of the Boy Scout Oath begins, “On my honor, I will do my best to do my duty to God and my country” and the final point of the Scout Law reads, “A Scout is reverent,” with the Boy Scouts’ of America official explanation being that “a Scout is reverent toward God. He is faithful in his religious duties. He respects the beliefs of others.”[56] However, the bylaws of the organization specifically state that Scouts must “respect the religious beliefs of others” and “in no case where a unit is connected with a church or other distinctively religious organization shall members of other denominations or faith be required, because of their membership in the unit, to take part in or observe a religious ceremony distinctly unique to that organization or church.”[57]

O’Reilly argues this is a liberal definition of what God may be, allowing diversity for anyone believing in a higher power to join.

He went on to compare the ACLU to Nazis:

Now the ACLU is free to come to your town and sue the heck out of it. And believe me, that organization will. The ACLU doesn’t care about the law or the Constitution or what the people want. It’s a fascist organization that uses lawyers instead of Panzers. It’ll find a way to inflict financial damage on any concern that opposes its secular agenda and its growing in power.

He later went on to criticize the Boy Scout leadership for not standing up to the ACLU.[58]

On October 16, 2006 at Mount Pleasant High School in Michigan, a student stood up publicly in the cafeteria and called the principal of the school “a skank and a tramp.” In addition to this, the student called the school administrators Nazis and questioned the sexuality of the vice-principal. The school suspended the boy for 10 days, an action that brought a lawsuit by the ACLU. O’Reilly criticized the ACLU for defending the remarks as satire when he saw it as hate speech.[59]

Social views

Abortion

O’Reilly supported California Proposition 73 because it would have required parental notification of underage girls seeking an abortion. “[T]he left-wing media has been able to convince millions of Americans that the government knows what’s best for families, not the parents.”[60]

O’Reilly strongly condemns doctors who provide legal abortion services. Since 2005, he has repeatedly referred to physician and abortion doctor George Tiller as “Tiller the baby killer” on his Fox News prime time show, claiming that there must be “a special place in hell” for him. In May 2009, Tiller was murdered by anti-abortion gunman Scott Roeder.[61]

O’Reilly ardently condemns the practice of partial birth abortion. He has criticized the practice being done without explanations being made and has criticized human rights groups such as Amnesty International and Human Rights Watch for not condemning the practice:

Once again, this isn’t about a women’s [sic] right to choose or the New York Times plea for reproductive rights. This is about late term abortions for just about any reason.[62]

Education

O’Reilly supports the discussion (but not the advocation) of intelligent design in schools and considers the opinion of the National Academy of Sciences and the American Association for the Advancement of Science‘s opposition to such theories “fascist”.[63] O’Reilly has also suggested that Richard Dawkins‘ argument for how science should be taught in school is equivalent to fascism.[64] He said he supports teachers saying that some people, especially in religious groups, believe that Charles Darwin‘s theory of evolution is wrong.

O’Reilly has said that there is a lack of leadership among the traditionalists and this has emboldened the secular-progressive cause. He consistently says that using religion to justify public policy is wrong:

Right now, religious people are the ones speaking out for traditional values. But America does not forge public policy based on religion. Thus as soon as God enters the debate, the secularists win.[65]

Gun rights

O’Reilly supports some forms of gun control, such as gun registration.[66][67]

Health care

O’Reilly opposed the nationalizedhealth care plan that filmmaker Michael Moore argues for in his film Sicko, saying it would create huge backlogs. He also said, however, that he thinks the government should perform more oversight functions on health care:

…[G]overnment-run health care would be a disaster, featuring long waits for treatment and an enormous rise in taxation. But there should be government oversight on private insurance companies and strict guidelines about abusing customers. There can be compromise and effective government control of medical care abuse in the USA. It is possible. But if Michael Moore’s plan ever gets traction, pray hard you never get sick.[68]

LGBT issues

O’Reilly’s stance on LGBT issues has been evolving.

On October 27, 2004, he was quoted saying: “I’ve been saying that all along, that if you open the door for gay marriage, then you have to have the polygamists and the triads and the commune people and everybody else, right?”[69]

O’Reilly supports civil unions for gay and lesbian couples, but has said that nobody has the “right” to marry; he says that marriage, like driving a car, is a privilege, not a right. He has said that if the government felt marriage was a right, then it would not stop polygamists and incestuous couples from marrying.[70] O’Reilly further explained his position in his book Culture Warrior:

To this culture warrior, gay marriage is not a vital issue. I don’t believe the republic will collapse if Larry marries Brendan. However, it is clear that most Americans want heterosexual marriage to maintain its special place in American society. And as long as gays are not penalized in the civil arena, I think the folks should make the call at the ballot box. Traditional marriage is widely seen as a social stabilizer, and I believe that is true.[71]

On March 26, 2013, O’Reilly stated “I support civil unions, I always have. The gay marriage thing, I don’t feel that strongly about it one way or the other. I think the states should do it.” O’Reilly then said, “The compelling argument is on the side of homosexuals … ‘We’re Americans, we just want to be treated like everybody else.’ That’s a compelling argument, and to deny that you’ve got to have a very strong argument on the other side. And the other side hasn’t been able to do anything but thump the Bible.[72]

O’Reilly discussed a story surrounding around a teenage lesbian couple being elected as the “cutest couple” in their school yearbook. He stated that he believed that this couple was elected by the students to “tweak the adults” and to “cause trouble”. He explains further here:

High school kids, they experiment. They experiment all over the place, they have a chip on their shoulder. They do things just to get a reaction, just to rebel. Parents might say “We don’t want to normalize homosexuality in a public way in an academic setting among minors. We don’t think that reflects how we feel about it”.[73]

O’Reilly is known to favor adoption by a same-sex couple since 2002.[74]

O’Reilly is opposed to the School Success and Opportunity Act (Assembly Bill 1266), which extends gender identity and expression discrimination protection to transgender and gender-nonconforming K-12 students in public schools. O’Reilly described the law as “madness” and “anarchy” on Fox News Channel.[75]

Just before the repeal of the “Don’t Ask, Don’t Tell” law banning homosexuals from serving in the military, he appeared on the Tonight Show and called the law “nonsense” and said he didn’t understand why the President, in his role as commander in chief of the armed forces, simply didn’t sign an executive order rescinding it.

US legal system

He regularly criticizes jurists in controversial cases as “activist judges.” He uses the issue of gay marriage as an example. “The folks decide that by voting and, in the case of gay marriage, the folks have decided. And that decision should be respected.”[76]

He has suggested convicted rapists, mass murderers, terrorists, and other people who commit crimes against humanity be sent to a gulag style prison in Alaska with strict rules and minimal privileges. He has said this would serve as a replacement for the death penalty, to which he is opposed.[77]

Jessica’s Law

O’Reilly is a self-professed proponent of stricter penalties for child molesters. He has fervently supported Jessica’s Law,[78] and criticized the law’s detractors.[79] He has given verbal support for Republican Doug Forrester in the 2005 New Jersey gubernatorial election, suggesting that his opponent, Democrat Jon Corzine, would be less likely to support a national version of the law, though stopped short of actually endorsing Forrester.[80]

O’Reilly has been particularly critical of the Debra LaFave case, in which she was convicted of having sex with a 14-year-old boy, but was only sentenced to house arrest and seven years probation.[81]

He criticizes many politicians who oppose mandatory minimum sentences for child molesters, and calls several states “child predator-friendly.”[81]

Entertainment media

Film industry

O’Reilly has been very critical of the U.S. film industry for producing films featuring violence and human suffering, such as the Saw series. He has compared this to the brutal displays of death in the Colosseums of ancient Rome.[82] O’Reilly has said that films like these are marketed to children and can have consequences on their personal development. He commented on Kill Bill: Volume 1:

It’s the most violent movie ever made, featuring brutal dismemberments and a scalping close-up. And you should see the raves this movie is getting from the pinhead critics. And who’s lining up to see it? Children, that’s who.[83]

O’Reilly severely chastized billionaire Mark Cuban, owner of the Dallas Mavericks, for his support of Brian De Palma‘s film Redacted that portrayed the rape of an Iraqi girl by American soldiers. O’Reilly claimed that the film would be used as a recruiting tool by terrorists.[84]

Music industry

O’Reilly has criticized the rap and hip hop industry for promoting an “anti-social” culture. He has said he does not care if adults listen to the music, but argues that children are not able to process the information and determine it to be destructive behavior. He has gone after several rappers such as 50 Cent, Jay Z, Jadakiss, Eminem, Lupe Fiasco, Nas, Ludacris, Lil Wayne, Common, Nelly, Snoop Dogg, and Young Jeezy:

Every educator that I’ve talked to, and I’ve talked to hundreds, say that the kind of gangsta rap that Ludacris traffics in has debased the culture, made it more difficult for them to teach children and indeed, led children into anti-social behavior.[85]

In 2007, O’Reilly had a dispute with Nas after the rapper was hired to play a concert at Virginia Tech one year after the school had experienced the Virginia Tech massacre. “Having a rapper who trades in violence perform at Virginia Tech insults the victims, the university and the entire commonwealth,” declared Bill O’Reilly.[86]Nas subsequently called Bill O’Reilly a racist, and accused O’Reilly of going to extremes for publicity. He repeated this stance again in July 2008, when a dispute between Nas and O’Reilly led to Nas taking a petition to Fox News, and appearing on both Fox News, and the The Colbert Report. Also in 2008, Nas challenged Bill O’Reilly to a public debate, to which O’Reilly did not accept.

In May 2015, O’Reilly blamed the decline of American religion particularly the declining numbers of American Christians on hip hop music citing the genre as “pernicious entertainment” and an adducing factor for contributing to the decline. O’Reilly remarked that people of faith are being marginalized by a secular media and pernicious entertainment and rap industry often glorifies depraved behavior causing the minds of people who consume the music as the least likely to reject religion.”[87] American rapper Killer Mike subsequently criticized him for his remarks calling O’Reilly “full of s**t than an outhouse” and then mocked him while he was a guest Real Time with Bill Maher.[88]

Several rappers and hip hop producers have appeared on The O’Reilly Factor. Rapper Cam’ron and hip hop entrepreneur Damon Dash appeared on the program to defend their supposed corruption of young people, to which Damon Dash responded:

So, if you know there is negative in something, try to find the positive as opposed to always talking about the negative. That’s the thing I don’t understand, why we’re criticized so hard within hip-hop. No one talks about the jobs we create, no one talks about the things we do within our community, and no one talks about the businesses we’ve done, how we’ve opened the doors and shown people that it’s cool to be smart, it’s cool to be a CEO, and it’s cool to not take advantage but to reap the benefits of all your labor and to do it fairly.[89]

Bill O’Reilly has also interviewed Marilyn Manson on the topic of being a “dangerous” influence on U.S. youth. O’Reilly asked Manson if he thought his work encouraged kids to have sex, homosexuality, use drugs and profanity. He also asked Manson whether his songs encouraged suicide or not. Marilyn Manson answered that in his view the songs were about getting through those feelings, and that ultimately people make their own decisions.[90]

News media

O’Reilly believes the American news media is corrupt and often criticizes it for not reporting topics that hurt the liberal agenda. He has often stated that he is the only one in the media holding people accountable on both sides. In June 2007, Adweek Magazine sponsored a survey that asked participants who they trusted more as a source of political information between ABC News and O’Reilly. According to the poll, 36 percent believe that O’Reilly is a better source than ABC News, while 26 percent believe the opposite. According to the survey, 23 percent of Democrats believed that O’Reilly was a better source while 55 percent of Republicans believed the same.[91]

O’Reilly has criticized the media for not highlighting Rosie O’Donnell‘s controversial remarks saying the United States attacked itself on September 11th while they highlighted Ann Coulter‘s remarks about calling Senator John Edwards a “fag.” O’Reilly said in response to the situation:

Doing the math, Ms. O’Donnell says something 100 times more offensive than Ms. Coulter, in my opinion, yet there’s no coverage about it. But there’s no left wing media bias in this country. Oh no![92]

O’Reilly has criticized journalists who donate to political parties after a report stated that nine out of 10 journalists donated to Democrats or liberal causes; he has said this has resulted in news media tilting to the left.[93]

O’Reilly says that news coverage about positive improvements for American and Iraqi objectives in Iraq have been largely ignored. He conjectured that the ignoring of the positive news took place to help a Democrat win a presidential election.[94]

O’Reilly has asked his viewers and listeners to not patronize the following media outfits, saying those organizations “have regularly helped distribute defamatory, false or non-newsworthy information supplied by far-left websites”:[95]

Television news

In an interview with commentator Bill Maher, former CBS News anchor Dan Rather accused Fox News Channel of receiving “talking points” from the Republican controlledWhite House. O’Reilly criticized Rather heavily, responding that Rather did not offer any evidence to support the claim. O’Reilly cited his defense of Rather during the Memogate incident:

As you may remember, I defended Rather in the Bush National Guard debacle. I said Rather did not intentionally put on a bogus story. He just didn’t check it out, he was too anxious for the story to be true.

Now many of you criticized me for that defense, but I’m a fact-based guy. And there’s no evidence Dan Rather fabricated anything. It was sloppy reporting that did him in.

But now the fabrication word is in play again. If Dan Rather has evidence of White House dictums coming to FOX News employees, he needs to display that evidence. We are awaiting his appearance. We’ll let you know when it is.[96]

O’Reilly has gone after PBS personality Bill Moyers. O’Reilly criticized Moyers for having no balance in his presentations, citing a criticism by PBS’ own ombudsman. He also called Moyers dishonest for making disparaging remarks about O’Reilly to Rolling Stone and then later denying he made the remarks when confronted by one of O’Reilly’s producers.[97]

CNN journalists were prominent among those critical of O’Reilly when he stated that he “couldn’t get over the fact” that a largely African-American crowd at a Harlem restaurant behaved no differently than patrons of a white restaurant and garnered media coverage O’Reilly objected to CNN’s portrayal of his commentary, stating that CNN had been irresponsible in mischaracterizing his remark as racist, when in fact, he said, he was actually speaking against racism.[98]

O’Reilly scolded MSNBC and CNN for not providing coverage of the ceremony that awarded Lieutenant Michael P. Murphy the Medal of Honor during their primetime shows. O’Reilly said that “[O]n their prime-time broadcast last night, CNN and MSNBC just said no to Lieutenant Michael Murphy and his proud family,” that the networks “despise the Bush administration and believe anything positive like American heroes in war zones, detract from their negative assessment of the administration” and that they should not claim to support the troops and ignore their heroism.[99] MSNBC and CNN had covered the events during their daytime programs.[100][101]

NBC News and MSNBC

O’Reilly has criticized NBC News and their affiliated cable service MSNBC several times for their coverage of the war in Iraq, claiming that it is biased toward the war’s opponents.[102][103] He later called NBC News the most “anti-military news operation in the country,” when he cited an example of NBC correspondent William Arkin that called American troops “mercenaries.”[84]

He also criticized the network of trying to downplay the War on Terror in the wake of American casualties in Iraq.[104]

Robert Greenwald, who had directed the controversial documentary Outfoxed that criticized O’Reilly and the Fox News Channel, put together an event of homeless veterans criticizing O’Reilly for calling John Edwards dishonest when Edwards asserted that there were about 200,000 homeless veterans. O’Reilly denied Edwards claim, stating “They may be out there, but there are not many of them out there, OK. So if you know where there is a veteran sleeping under a bridge, you call me immediately, and we will make sure that man does not do it.”[105] After government statistics supported Edwards[citation needed], O’Reilly then said that there was no linkage between the economy and homeless veterans and claims that Veterans Affairs has up to 150,000 beds ready for them every night.[106] O’Reilly felt Greenwald’s event was a “contrived” situation after O’Reilly’s producers had interviewed some of the homeless veterans whom were protesting and found out that some did not actually hear O’Reilly’s comments. O’Reilly blasted NBC’s Steve Capus and the New York Daily News for covering the event and claimed that Capus did not know about the nature of the event.[107]

O’Reilly called NBC hypocritical for putting supporters of legalizing prostitution in the wake of Democratic Governor of New YorkEliot Spitzer resigning his post after allegedly engaging in the act in an effort and felt they would not be as defensive if a Republican had gotten in trouble.[108]

Although he praised the late Meet the Press host Tim Russert in the past,[109] O’Reilly criticized Russert for what he saw as a misinterpretation of what were seen as potentially racially insensitive comments by former President Bill Clinton. In his comments, Russert challenged Senator Hillary Clinton about her husband’s remarks regarding Senator Barack Obama, when Mr. Clinton referred to Obama’s position on Iraq as a “fairy tale.” O’Reilly said that Russert “should have known better” and realized the former President’s comments were regarding Obama’s Iraq policy and not his entire candidacy.[110]

Tape doctoring incidents

O’Reilly would join in the criticism of others when NBC News was found to have doctored tapes on multiple occasions. The first was about accused killer George Zimmerman that portrayed Zimmerman as having a racial motivation.[111] He also criticized veteran news correspondent Andrea Mitchell for her reporting of a doctored tape of Mitt Romney to portray him as out of touch.[112] After the Sandy Hook Shooting, O’Reilly and others criticized MSNBC’s Martin Bashir of dishonesty when Bashir only played a part of the entire tape that portrayed the father of a victim being heckled when the entire tape showed the audience only saying something after he made it clear he was looking for an answer.[111] O’Reilly criticized MSNBC host Rachel Maddow showed a tape of Senator John McCain portraying him as insensitive to the plight of a person who lost a family member to gun violence. Although Maddow did readily admit the tape may have been doctored, O’Reilly criticized her nonetheless for airing it knowing that it could have been edited.[113]

Press

O’Reilly has accused the print press of purposely misquoting him and using their hard news pages to further their editorial points of view. He has said that print media is too liberal and attacks opposing viewpoints.[114]

In 2003, O’Reilly criticized the Los Angeles Times for endorsing then-governor Gray Davis, who was running against Arnold Schwarzenegger and a whole field of different candidates, including Republicans, Democrats and Independents, in a recall election. He said that he “has never seen a newspaper try to destroy someone as aggressively as the Times is doing.” He also criticized The New York Times on the same issue for referring to Schwarzenegger solely as a bodybuilder. He made the claim that Californians have canceled their subscriptions due to the “extreme left-wing bias” of the newspaper.[115]

O’Reilly has accused the media of being hypercritical of President Bush’s handling of North Korea and Iran pursuing nuclear weapons while not being critical of President Bill Clinton for what was the same course of action.[116]

The New York Times

O’Reilly frequently criticizes The New York Times, accusing them of omitting information that would be damaging to left-wing organizations and causes.[117]

On March 15, 2007, The New York Times ran an editorial titled “Immigration Misery” that had claimed a “screaming baby girl has been forcibly weaned from breast milk and taken dehydrated to an emergency room so that the nation’s borders will be secure.” Upon further investigation, the only two babies admitted to the hospital in the area of Bedford, Massachusetts (where the raid took place) were due to dehydration because of pneumonia and not as a result of being “forcibly weaned.” O’Reilly alleged that the information in the editorial was falsified and claimed The Times wanted to promote illegal immigration in order to make the illegal immigrants into legal US citizens and register them as Democrats.[118]

He accused The Times of promoting NBC News over ABC News.[119]

On June 2, 2007, Homeland Security stopped a plot by four terror suspects thought to be linked to Al Qaeda. Authorities have alleged that the suspects were trying to blow up an oil pipeline in the Howard Beach section of New York City that carries jet fuel to JFK Airport. O’Reilly went on his program and told his listeners that he expected The Times to report it as a featured story on its Sunday edition for June 3, but found that the story was on page 37[citation needed]. A story that occupied the front page talked about brick laying in India. O’Reilly accused the newspaper of burying the story not to highlight a successful foiled terror plot because it contradicts the paper’s editorial point of view.[104] O’Reilly claims that as polls show most Americans feel Republicans would do a better job of handling a terrorist threat than Democrats, The Times intentionally gave the news less exposure in hopes of influencing their readers’ focus away from issues that Democrats tend to poll weaker than Republicans in.[120] O’Reilly has also said that the paper would highlight any terrorist attack if one was to occur so they may criticize the Bush Administration:

So The Times wins both ways. The paper diminishes the War on Terror by putting it on page 37, but if something bad ever happened, it can attack President Bush.[121]

O’Reilly has accused the paper of being deceptive about television ratings for The O’Reilly Factor against that of MSNBC during the same time slot, citing that the paper felt that MSNBC was “competitive” with his program when O’Reilly’s ratings were significantly higher.[122]

O’Reilly has questioned the paper’s interpretation of violence statistics among veterans of the military. His contention is that the paper is out to disparage the military as being overly violent after returning home from deployment in the War on Terror.[123]

O’Reilly criticized the paper for running an article alleging Senator John McCain had an “inappropriate relationship” during the lobbyist controversy story the paper had. O’Reilly raised the question about why the paper had endorsed McCain on January 25, 2008 for the Republican nomination if they had information that alleged an inappropriate relationship.[124]

In May 2009, O’Reilly severely criticized the paper as “corrupt” for dropping a story about a possible violation of campaign laws by ACORN and the Obama campaign. O’Reilly claimed that sworn testimony before Congress by a former ACORN employee, Anita Moncrief corroborated the story. O’Reilly stated:

Strong evidence suggests the paper killed a story linking ACORN to some Obama people. Instead they ran a general piece stating ACORN has a left-wing bias, knowing that story would be largely ignored while the Obama connection would not be.[125]

In response, the New York Times ombudsman, Clark Hoyt stated it “was a normal and reasonable editorial decision” not to run the article. He said the Times had run four other stories on ACORN. The story in question had remained unpublished because Anita Moncrief had not provided independently verifiable proof. In addition, The Times ombudsman stated that Moncrief had not given sworn testimony to Congress as claimed by O’Reilly, and that she had credibility problems, having been fired from Acorn for employee theft.[126]

Internet medi

O’Reilly has accused a few liberal political websites of “distorting the truth” and “engaging in hatred”:

There are no rules. These people will do and say pretty much anything to harm people with whom they disagree politically. The trend started back in the ClintonLewinsky days, and now thousands of bloggers are operating, throwing dirt all over the place. Now they’re not all bad. Some of these bloggers are good, accurate watchdogs. But there are plenty of awful ones.[127]

He has criticized the Daily Kos website, accusing it of calling for increased attacks upon American troops in Iraq, and for Iran to attack Israel. O’Reilly has also alleged that Daily Kos bloggers have called the Pope a primate and evangelicals “nut cases”, that they wish for the success of any subsequent attempts at the assassination of Vice President Dick Cheney after he avoided an attempt on his life in Afghanistan during a 2007 visit, and have said that the world is “better off” without White House Press SecretaryTony Snow when Snow publicly said he had cancer.[128]

In summer of 2007, O’Reilly said that the entire field of 2008 Democratic Presidential Candidates (aside from Senator Joseph Biden) went to the Yearly Kos convention that was sponsored by the Daily Kos. He has said that sites like the Kos are taking control of the Democratic Party through intimidation:

As we have been reporting, a group of far-left bloggers has succeeded in frightening most of the Democratic presidential candidates and moving the party significantly to the left, at least in the primary season. The lead intimidators are MoveOn, Media Matters and the vicious Daily Kos. These people savagely attack those with whom they disagree. And the politicians don’t want to become smear targets. So most of the Democratic candidates have agreed to speak at the Kos convention this coming weekend, something that is beyond shameful.[129]

O’Reilly has compared the Huffington Post to the Nazis and the KKK. He also called MoveOn.org the “new Klan.” In response, Arianna Huffington wrote that O’Reilly had confused bloggers with anonymous commentors and suggested he enroll in “How to Use the Internet 101.”[130] Huffington alleged that offensive comments are taken down from her site when confronted by one of O’Reilly’s producers. She also noted that offensive comments are posted by users of O’Reilly’s own site, billoreilly.com.[131] O’Reilly alleged that Huffington had no standards of conduct and did not remove comments about wishing Nancy Reagan had died after she fell that were written on her site. “She says it is down, but it is not. She does not tell the truth.”[132] O’Reilly later alleged that Huffington implied Pope Benedict XVI was a Nazi.[133] O’Reilly referred to a satirical article written by comedian Chris Kelly, which mocked O’Reilly on Huffington’s website.[134]

Environmental issues

O’Reilly generally supports the notion of a clean environment, although he has said that he is not entirely certain that fossil fuels are the cause of global warming. Nonetheless, he has expressed support for a long-term strategy to curb fossil fuel use. He has said he would not support the Kyoto Treaty for economic reasons, but supports the use of fewer polluting agents, more conservation, and “tons more innovation” such as tax credits for alternative fuels.[135] He has said that renewable energy is a waste of time because “God controls the climate” and that “nobody can control the climate except God, so give a little extra at mass”.[136]

Economic views

O’Reilly is a frequent critic of government welfare and poverty programs. He is also critical of the estate tax. However, he does not differentiate between the marginal tax rate (46 percent) and the effective tax rate (roughly nine percent ).[137]

O’Reilly has said French unemployment and subsequent riots are the “common effects of socialist thinking”. He claims the French unemployment rate is high because of entitlements sanctioned by the French government, and that these entitlements make employers hesitant to hire young employees for fear that they will be required to give benefits to underperforming workers.[138]

He says he supports income-based affirmative action as opposed to race-related affirmative action.[139]

Trade with hostile countries

O’Reilly has been critical of companies doing business with countries that are hostile to the United States. O’Reilly criticized General Electric for doing business with Iran. O’Reilly cited how NBC News‘ correspondent John Hockenberry did a report on Dateline highlighting GE’s business relationship with the Bin Laden family and was criticized by the company, who owns NBC, for the Dateline report.[140]

Free markets, profits, and the oil companies

O’Reilly questions the free market by suggesting that the oil companies need an excuse to raise prices thereby overlooking the fact that in a free market, oil companies have the right to increase prices so as to increase profits or for any other reason. Rather than praise oil companies for their record profits, O’Reilly has been critical of oil companies, claiming their record profits are evidence that they have price-gouged Americans with artificially high gas prices.[141] and has said he is personally boycotting products by Exxon-Mobil.[142] It therefore appears that O’Reilly does not recognize profit maximization as a virtue. He has often taken an opposing point of view to conservatives such as fellow Fox News analyst and commentator, Neil Cavuto.[141] During one discussion on The O’Reilly Factor, Cavuto accused O’Reilly of “push[ing] populist nonsense.”[143] He said blocking Brazilian ethanol imports was “awful” and has criticized both the Bush Administration and the Clinton Administration for not doing enough to stem the cost of oil from “foreign predators”.[142]

Protectionism

In a May 8, 2006 article published at the Jewish World Review, O’Reilly said, “There is no question that illegal workers deliver more profit to business than American workers do. A Harvard study says that the employment of illegal foreign workers has driven down wages among American high school dropouts, the lowest labor pool rung, by 7 percent.”[144]

Idyllic civilization

Bill O’Reilly on his show The O’Reilly Factor has expressed the view that “if everybody followed the teachings of Jesus Christ, […] we’d have peace on earth, […] everybody would love one another, and we’d almost be an idyllic civilization.”[145]

Ethanol

O’Reilly claims that the United States is not doing enough to make itself independent of foreign oil, stating that “There’s no way the ethanol industry could be dominated by five mega-companies. I mean corn and sugar cannot be carteled. The oil racket is simple: We control the marketplace, and you have to buy from us. … If Brazil can develop an ethanol industry that makes it completely independent of foreign oil, then the USA can.”[144]

https://en.wikipedia.org/wiki/Political_views_of_Bill_O%27Reilly

Story 2: Totalitarians of Lying Lunatic Left Attempt to Suppress Speech of Conservatives, Libertarians, and Classical Liberals — Nothing New — Go On Offense And Attack The Collectivist Totalitarians — Battle For Berkeley — Berkeley Protesters Take the Pepsi Challenge — Why the Right Won — Chief of Police Orders Berkeley Police To Stand Down — Videos

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Does Free Speech Offend You?

Ben Shapiro on Free Speech, College Campuses, and The Regressive Left

Ben Shapiro – Practical Tactics For Fighting The Left

UC Berkley Must Be Disciplined For Furthering Leftist Violence Against Conservatives

Amid Mounting Controversy, Media Matters Says It’s Time for Bill OReilly to Go | Cheddar

HIDDEN CAM: Media Matters Brags About Sabotaging Roger Stone

Published on Oct 28, 2016

Project Veritas Action has released the sixth video in a multi-part series that is sending shockwaves through the DNC and the Clinton campaign. In a new video released by Project Veritas Action, a PVA journalist exposes how his pay for play with Robert Creamer landed him a meeting with Bradley Beychock, the President of Media Matters For America, an organization that has been attacking James O’Keefe for years.

During the meeting, Beychock gave the PVA journalist a tour of their offices. He also proudly boasted about the Media Matters assault on conservative writer and political consultant Roger Stone.

Battle of Berkeley: Why the Right Won

Published on Apr 17, 2017

Berkeley erupted into political violence on April 15th, 2017, with leftwing radicals attacking the Freedom Rally hosted by Trump supporters. The Antifa thugs were roundly defeated by the Freedom Rally attendees, but where did this violence start? I discuss the events that lead up to this day and uncover the progression of leftwing violence that’s destroying a city that once celebrated free speech.

Lauren Southern And The Madness Behind The Battle Of Berkeley

THE BEAUTIFUL LAUREN SOUTHERN; ProudBoys and Some Ugly Antifa

The Battle of Berkeley in 81 seconds

Berkeley Protesters Take the Pepsi Challenge

Battle of Berkeley 3 FULL DAY[ANTIFA Vs FREE SPEECH PROTESTERS]Patriots Day Rally Ft. Based Stickman

Trump Supporters chase Antifa down the street at FREE SPEECH Rally in Berkeley

Battle of Berkeley 3 as Antifa circled the park

2017 The Battle for Berkeley LARP!

Patriot’s Day Riot in the Streets

UC Berkeley Cancels Coulter Appearance Over Security Concerns

Conservative Commentator Ann Coulter To Speak At UC Berkeley

Ben Shapiro interviews Ann Coulter; Adios America; 7/13/2015; C-Span

UC Berkeley Presses Campus Republicans To Cancel Another Conservative Speaker

WARNING:TRUMP SUPPORTERS ATTACKED AT BERKELEY BY ANTI TRUMP PROTESTERS

Free Speech Battle For Berkeley, California! | Lauren Southern and Stefan Molyneux

Berkeley Mayor Connected to Antifa

Tucker Carlson Has UC Berkeley Protest Leader Yvette Felarca Explain Fascism

Lauren Southern Coverage of Antifa vs Trump Supporters Battle

Berkeley April 15,Based stick man Antifa smashing

ANTIFA VS America Compilation

Antifa Reddit Admits They Lost Berkeley Battle with Trump Supporters

Berkeley April 15,BAMN leader Yvette Felarca assaults patriots

Berkeley Leftists Riot Against Milo (Mini Documentary: Arrest Yvette Felarca Part 2)

Handicap Senior Citizen U.S Military Vet Stands Up & Cucks Antifa

Is It Wrong To Bash Antifa Leftist Scum?

Berkeley Police Refuse To Stop the Riots – When Told People are Being Beaten, Officer Says “…and?”

Steyn: Media annoyed someone has outfaked their fake news

BILL O’REILLY EXPOSES GEORGE SOROS

EXPOSED : George Soros Owned Media Matters Sabotages Pro Trump Media

George Soros Lost Interview Compilation – Left Wing Oligarch

George Soros exposed!

George Soros Warns The World About Fox News And How Dangerous IT Really Is

George Soros, Puppet Master

Mark Levin: Media Matters is “A Criminal Enterprise”!

Andrew Breitbart — Media War

Thomas Sowell — Dismantling America

TAKE IT TO THE LIMITS: Milton Friedman on Libertarianism

Andrew Breitbart Predicted and Warned us about George Soro’s Media Matters Controlling our Media

One World Government & Collectivism – G. Edward Griffin

The Quigley Formula – G. Edward Griffin lecture

The Mainstream Media Are Enemies of Freedom, Agents of Tyranny and Must Be Overthrown

Super rich are in a conspiracy to rule the world – G. Edward Griffin – 2007

Antifa and Conservatives Throw Down At ‘Battle Of Berkeley’…

battle of berkeley
In the course of history, there have been many great battles. Thermopylae. Gettysburg. Tupac and Biggie. The forces of good and douchebag have long utilized beating the crap out of each other to resolve their grievances. Well, last weekend, yet another battle was had. Conservative and leftist blood alike was shed at what shall henceforth be referred to as the Battle of Berkeley

For the third time this year, Trump supporters and Antifa clashed on the streets of Berkeley, California. The two forces met Saturday during the pro-Trump Patriot Day rally.

Berkeley Police have arrested at least 15 people this morning and afternoon, after antifascists met Trump supporters at a pro-Trump rally. Police attempted to maintain order with poles and fence mesh, but the barriers did not stop the two sides from violently engaging.

Trump supporters had organized a Patriot Day rally, starring Lauren Southern, a former reporter for conservative Canadian outlet The Rebel Media and Kyle Chapman, a man who achieved internet stardom as “Based Stickman” after assaulting a member of Antifa with a stick at the March 4 scuffle in Berkeley, among others.

Berkeley police have confiscated banned items such as knives, flagpoles, and sticks used as weapons.

https://www.louderwithcrowder.com/antifa-conservatives-battle-of-berkeley/

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The Pronk Pops Show 870, April 10, 2017: Story 1: Will President Trump Boldly Cut Taxes and Spending? — A Competitive Race Towards Lower Taxes And Less Government Spending: Replace All Income Based Taxes (All Income, Capital Gain and Payroll Taxes) With Broad-Based Consumption Tax With A Progressive Tax Prebate ( FairTax 23% Less Prebate or Fair Tax Less 20% Less $1,000 Per Month or $12,000 Per Year Prebate) And Real Cuts of 5% Per Year In Government Spending To Balance The Budget In 8 Years Or Less To Pay For Tax Cuts!) — Cut Taxes and Spending — Videos — Story 2: Stagnating United States Economy — The Great Stagnation –Videos

Posted on April 10, 2017. Filed under: American History, Blogroll, Breaking News, Budgetary Policy, Communications, Congress, Countries, Culture, Currencies, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Economics, Elections, Employment, Fiscal Policy, Foreign Policy, Free Trade, Government Dependency, Government Spending, History, House of Representatives, Labor Economics, Law, Media, Medicare, Monetary Policy, News, Philosophy, Photos, Politics, Polls, President Trump, Raymond Thomas Pronk, Scandals, Senate, Tax Policy, Taxation, Taxes, Trade Policy, U.S. Dollar, Unemployment, United States of America, Videos, Wealth, Welfare Spending, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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Story 1: Will President Trump Boldly Cut Taxes and Spending?  — A Competitive Race Towards Lower Taxes And Less Government Spending:  Replace All Income Based Taxes (All Income, Capital Gain and Payroll Taxes) With Broad-Based Consumption Tax With Generous Tax Prebate ( FairTax or Fair Tax Less!) And Real Cuts of  5% Per Year In Government Spending To Balance The Budget In 8 Years Or Less To Pay For Tax Cuts!) — Cut Taxes and Spending — Videos —  

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Donald Trump: Simplify the Tax Code

Donald Trump: I pay as little as possible in taxes

Is Donald Trump serious about tax reform?

Sean Spicer: Trump wants to get tax reform right

Will tax reform really happen by August?

Dan Mitchell Discussing GOP Tax Plan and Corporate Rate Reduction

What Tax Reform Could Look Like Under Donald Trump | Squawk Box | CNBC

#Eakinomics – 4 Key Questions on Dynamic Scoring

What is Dynamic Scoring?

Trump Pushes ‘Major Border Tax’ to Keep Jobs in U.S.

Ryan Unexpectedly Joins Forces With Bannon on Border Tax

Kudlow: Freedom Caucus & Trump’s base is opposed to Border Adjustment Tax

Sen. Perdue: Border Adjustment Tax would “shutdown economic growth”

Sen. Tom Cotton: “I have serious concerns” w/ Border Adjustment Tax

Americans Need a Progressive Consumption Tax

Sen. Strange: “I would not” vote for a Border Adjustment Tax

Milton Friedman – Why Tax Reform Is Impossible

Milton Friedman – Is tax reform possible?

CNBC: Steve Forbes on Border Adjustment Tax – “Don’t Do It” 2.8.17

Meg Whitman: Border Adjustment Tax Will Not Create Jobs | CNBC

Art Laffer: Border tax is a major mistake

Border Tax Fight Is Economists Vs. Everybody Else | Squawk Box | CNBC

Dan Mitchell Discussing GOP Tax Plan and Corporate Rate Reduction

What is a Border Adjustment?

Border Tax: What You Need to Know

Will a border adjustment tax help American businesses?

Will a border adjustment tax kill free trade?

Border adjustment tax political suicide?

Fox Pol:l 73% Want Tax Reform This Year – Cavuto

Could the border tax debate stall tax reform?

Is A Border Adjustment Tax A Good Idea?

Border Adjustment Tax: Trump’s MAGA Ace

President Donald Trump Begins First Week By Meeting With Top Business Leaders | NBC News

Dan Mitchell Fretting about GOP Border-Adjustable Tax Plan

FairTax: Fire Up Our Economic Engine (Official HD)

Pence on the Fair Tax

Freedom from the IRS! – FairTax Explained in Details

The FairTax: It’s Time

Dan Mitchell explains the fair tax

Six Reasons Why the Capital Gains Tax Should Be Abolished

Is America’s Tax System Fair?

Sen. Moran Discusses FairTax Legislation on U.S. Senate Floor

What’s Killing the American Dream?

Robert Wolf: Border adjustment not going to happen

Paul Ryan on why he’s confident about tax reform

1/26/17 Border Adjustment Taxes, Tax Reform & Trade: Panel 1

1/26/17 Border Adjustment Taxes, Tax Reform and Trade: Panel 2 Part 2

Border Tax Adjustment and Corporate Tax Reforms: Panel 1

Border Tax Adjustment and Corporate Tax Reforms: Panel 2

Breaking Down The Republican Plan For A Border Tax | CNBC

Harvard Professor: Trump’s Border Tax ‘Misunderstood’

Making Sense Of The 20 Percent Tax Proposal | Morning Joe | MSNBC

Proposed Tax Package A Dramatic Cut Even With A Border Tax?

Treasury Secretary Steve Mnuchin On Tax Reform, Growth, Border Tax, China (Full) | Squawk Box | CNBC

Wilbur Ross On Border Tax: Something Will Be Found To Fill Trillion-Dollar Hole | Squawk Box | CNBC

Trump ditches tax reform plan he campaigned on and considers series of new options – including payroll tax cut in bid to woo Democrats

  • Trump had campaigned on rapid tax reform and a so-called border adjustment tax, which would effectively levy a duty on imports 
  • Now all options are back on the table as he tries to have a reform plan which will get Republican support 
  • There are signs the president will be willing to work with Democrats too as White House officials hold ‘listening sessions’ with the opposition 
  • One plan being considered is a cut in the payroll tax, which would benefit middle-earners and could garner Democratic support 

President Donald Trump has scrapped the tax plan he campaigned on and is going back to the drawing board in a search for Republican consensus behind legislation to overhaul the U.S. tax system.

The administration’s first attempt to write legislation is in its early stages and the White House has kept much of it under wraps. But it has already sprouted the consideration of a series of unorthodox proposals including a drastic cut to the payroll tax, aimed at appealing to Democrats.

Some view the search for new options as a result of Trump’s refusal to set clear parameters for his plan and his exceedingly challenging endgame: reducing tax rates enough to spur faster growth without blowing up the budget deficit.

Administration officials say it’s now unlikely that a tax overhaul will meet the August deadline set by Treasury Secretary Steve Mnuchin.

Off plan: Donald Trump is abandoning the tax overhaul he campaigned on 

Off plan: Donald Trump is abandoning the tax overhaul he campaigned on

Tough deadline: Steven Mnuchin, the Treasury Secretary who was at the table when Trump was briefed on the Syria missile strikes, had set an the August deadline for tax reform

Tough deadline: Steven Mnuchin, the Treasury Secretary who was at the table when Trump was briefed on the Syria missile strikes, had set an the August deadline for tax reform

But the ambitious pace to figure out a plan reflects Trump’s haste to move quickly past a bruising failure to broker a compromise within his own party on how to replace the health insurance law enacted under President Barack Obama.

The White House is trying to learn the lessons from health care. Rather than accepting a bill written by the lawmakers, White House officials are taking a more active role.

Administration officials have signaled that they want to pass tax legislation with only Republican votes, yet they’ve also held listening sessions with House Democrats.

White House aides say the goal is to cut tax rates sharply enough to improve the economic picture in depressed rural and industrial pockets of the country where many Trump voters live.

But the administration so far has swatted down alternative ways for raising revenues, such as a carbon tax, to offset lower rates.

Trump, who brands himself as a deal-maker, has not said which trade-offs he might accept and he has remained noncommittal on the leading blueprint, from Rep. Kevin Brady, chairman of the Ways and Means Committee.

Brady, a Republican from Texas, has proposed a border adjustment system, which would eliminate corporate deductions on imports, to raise $1 trillion over 10 years that could fund lower corporate tax rates.

But that possibility has rankled retailers who say it would lead to higher prices and threaten millions of jobs, while some lawmakers have worried that the system would violate World Trade Organization rules.

Brady has said he intends to amend the blueprint but has not spelled out how he would do so.

Other options are being shopped on Capitol Hill.

One circulating this past week would change the House Republican plan to eliminate much of the payroll tax and cut corporate tax rates. This would require a new dedicated funding source for Social Security.

The change, proposed by a GOP lobbyist with close ties to the Trump administration, would transform Brady’s plan on imports into something closer to a value-added tax by also eliminating the deduction of labor expenses.

This would bring it in line with WTO rules and generate an additional $12 trillion over 10 years, according to budget estimates.

Those additional revenues could then enable the end of the 12.4 percent payroll tax, split evenly between employers and employees, that funds Social Security, while keeping the health insurance payroll tax in place.

This approach would give a worker earning $60,000 a year an additional $3,720 in take-home pay, a possible win that lawmakers could highlight back in their districts even though it would involve changing the funding mechanism for Social Security, according to the lobbyist, who asked for anonymity to discuss the proposal without disrupting early negotiations.

Although some billed this as a bipartisan solution, and President Barack Obama did temporarily cut the payroll tax after the Great Recession, others note it probably would run into firm opposition from Democrats who are loathe to be seen as undermining Social Security.

The White House would not comment on the plan, but said a value-added tax based on consumption is not under consideration ‘as of now,’ according to a White House statement.

The lack of detail about how to significantly rewrite tax laws for the first time in 30 years may provide Trump some time to build consensus among Republicans. But without Trump laying down his hand, lawmakers appear reluctant to back a plan that will likely stir controversy.

How will markets react? Stocks rallied after the election on the promise of lower taxes and fewer regulations, but the Dow has dipped 1.2 percent over the past month

How will markets react? Stocks rallied after the election on the promise of lower taxes and fewer regulations, but the Dow has dipped 1.2 percent over the past month

Stock markets take a hit after Trump’s healthcare defeat

‘Because there are trade-offs, congressmen need cover from the president to withstand the lobbyists and constituents who are going to complain,’ said Bill Gale, an economist at the Brookings Institution who worked at the White House Council of Economic Advisers during President George H.W. Bush’s administration.

The Trump administration appears to have shut out the economists who helped assemble one of his campaign’s tax overhaul plans, which independent analyses show would have increased the budget deficit.

‘It’s a little frustrating that they feel they have to write a new tax plan when they have a tax plan,’ said Steven Moore, an economist at the conservative Heritage Foundation who helped formulate tax policy for the Trump campaign.

Rob Portman, the Republican senator from Ohio, a member of the Senate Finance Committee, said that all of the trial balloons surfacing in public don’t represent the work that’s being done behind the scenes.

‘It’s not really what’s going on,’ Portman said. ‘What’s going on is they’re working with on various ideas.’

Investors are beginning to show some doubts that Trump can deliver. Stocks rallied after his election on the promise of lower taxes and fewer regulations, but the Dow Jones Industrial Average has dipped 1.2 percent over the past month as the path for health care and tax revisions has become muddied.

‘The White House is going to need its own clear direction, or it’s going to need to defer to Congress, but saying that your plan is forthcoming and then not producing a plan kind of puts everything in stasis,’ said Alan Cole, an economist at the conservative Tax Foundation.

http://www.dailymail.co.uk/news/article-4396916/Trump-taxes-President-scraps-tax-plan-timetable-threatened.html#ixzz4dsZ74tNb
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Why the Border Adjustment Tax Should Be Killed

The BAT is a bad idea. There are far better ways to shrink the federal budget deficit.

March 18, 2017

“Anytime I hear border adjustment, I don’t love it,” Donald Trump told The Wall Street Journal shortly before his inauguration, noting that the proposed border adjustment tax was “too complicated.”

Trump isn’t always right when he makes off-the-cuff remarks such as that, but this time he was. The proposed border adjustment tax is so complicated that even its advocates can’t agree on how its disruptive effects on the U.S. economy will play out, and there’s nothing to love about that. The BAT is a bad idea, and it should be scrapped. And while taking it off the table will bring more red ink to the federal budget, there are better ways to stanch the bleeding than subjecting the economy to the trauma of a BAT.

Despite protestations to the contrary, the border adjustment levy is a tax hike embedded in the program of tax reductions that House Republicans put forward last June under the rubric of “A Better Way.” It’s there, presumably, to help offset the effect of the administration’s planned cuts, since the Republicans’ stated aim is to keep those cuts revenue-neutral. Barron’s fully supports the goal of not adding to deficits that, before too long, will be running above $1 trillion a year, given repeated warnings from the nonpartisan Congressional Budget Office about the risk of a financial crisis, due to exploding debt.

The attraction of a BAT is that it could generate an estimated $100 billion a year in revenue. There may be reasons to challenge that estimate, but we’ll accept it for now. There are, however, better ways to slash the fiscal deficit by $100 billion a year than the Better Way plan, and most fall under the heading of spending cuts.

President Trump has spoken about “waste, fraud, and abuse” in “every agency” of the federal government. Indeed, he promised that “we will cut so much, your head will spin.” He should therefore find plenty to love in our proposed reductions in spending. Just for starters, if all corporate welfare were cut from the budget, as much as $100 billion a year could be saved, about matching the total expected from the BAT.

The president also favors slashing the top rate on corporate income to 15% from 35%. Barron’s has proposed a more modest cut, to 22% (“Cut the Top U.S. Corporate Tax Rate to 22%,” Nov. 26, 2016). The Republican package calls for a reduction to 20%, which is close enough to our original proposal and which we believe should boost revenue rather than shrink it.

A list of potential cuts and revenue enhancements, totaling $200 billion, is in the table at the bottom of this page.

THE BETTER WAY PLAN, as noted, would reduce the top federal tax rate on corporate profits to 20% from 35%—which is all to the good. The proposed tax cut would not only be revenue-neutral; it would probably be revenue-enhancing.

In a study released this month by the London-based Centre for Policy Studies, analyst Daniel Mahoney traces the effect on revenue from Britain’s cuts in the corporate tax rate over a 34-year period. According to his calculations, the take from the corporate tax has added three-tenths of a percentage point annually to gross domestic product since rates were slashed.

Similarly, last year, in calling for a maximum U.S. rate of 22%, we traced the significant decline in the average top rate on corporate income for 19 countries in the Organization for Economic Cooperation and Development, which includes the U.S. and the United Kingdom. Over 33 years, their average tax take as a share of GDP rose six-tenths of a percentage point.

While that might not sound like much, every tenth of a percentage point of U.S. nominal GDP is worth $18.9 billion. So if revenue from the corporate tax rises by, say, three-tenths of a percentage point, to 2.5%—a conservative guess—that increase would translate into a bonus of nearly $57 billion a year in revenue. That alone gets us more than halfway to the $100 billion value of a BAT.

The idea of a revenue-enhancing cut in the corporate income tax was put forward in 1978, when economist Arthur Laffer was first cited as arguing that some rate decreases could generate enough added economic growth that the government wouldn’t lose revenue over the long run—and might, in fact, even gain revenue. Laffer also noted that most tax hikes generate less revenue than a conventional “static” analysis indicates, and that most tax cuts lose less.

Laffer’s “dynamic” analysis covered all of the behavioral changes likely to result from a cut. To begin with, if the tax collector claims a lower share of income, there is an incentive to produce more income. Second, a lower rate means there’s less incentive to spend time and effort avoiding the tax.

Corporations don’t pay taxes; only people do. And there is a tendency to forget that if a corporation nets more profits as a result of a lower tax, those funds will soon take the form of salaries, dividends, and capital gains, and will be taxed in those forms.

The second factor, less tax avoidance, applies with special force to a rollback of corporate taxes. As we noted last year, bringing down the top rate to 22% from 35% would dramatically reduce corporate flight to low-tax jurisdictions in the rest of the world.

Following the publication of our article, the CBO released a study confirming that U.S corporate tax rates are among the highest in the world. Among the Group of 20 countries—including Japan, China, Russia, Germany, France, Canada, and the U.K.—the U.S. is No. 1, 3, and 4, respectively, in “top statutory corporate tax rate,” “average corporate tax rate,” and “effective corporate tax rate.” The Better Way plan would narrow this gap significantly and make the U.S. more competitive.

But when it comes to the Better Way plan for cutting tax rates on personal income, Barron’s believes that there would be a loss of revenue even after taking into account behavioral changes. The revenue reduction from the proposed personal income-tax cuts has been estimated, on a static basis, at an average of $98 billion a year. We can assume that dynamic losses would run 10% less, or $88 billion, mainly because lower taxes are likely to encourage people to work.

Still, $88 billion a year is a huge loss of revenue. Barron’s proposes that the Better Way plan consider splitting the difference and going halfway on the tax cut, thus saving $44 billion.

THE REVENUE-ENHANCING corporate tax cut would include a special kicker in the form of the border adjustment tax. The BAT would deny corporations the ability to deduct the cost of imports from their taxable income, while all income earned from exports would be exempt from the 20% levy.

This means that companies selling imported goods in the domestic market would be taxed on the sale’s full proceeds—not just on the profit earned—which could more than offset the gains from the corporate tax reduction. At the same time, as noted, there would be no tax on the sale of exports.

The GOP’s Big Three Key players in the border adjustment tax debate: Senate Majority Leader Mitch McConnell, above, and House Speaker Paul Ryan and President Donald Trump, below. McConnell has said that he hasn’t made up his mind about the levy. Alex Wong/Getty Images

The BAT would bring uncertainty and disruption to the U.S. economy, making it hard to predict whether it really would raise $100 billion annually in revenue. The basic idea is that, because the U.S. imports more than it exports, the export exemption would be more than offset by hitting imports hard. Regardless of how it shakes out, the value of the transactions affected by the BAT is huge.

The U.S. trade deficit—the difference between exports and imports—ran at just 3.4% of real GDP in 2016, much lower than the 5.5% peak of 2005. But the actual gross flows of exports and imports are much larger than the difference between the two flows. Exports last year were valued at $2.2 trillion, or 12.8% of real GDP, and imports at $2.7 trillion, or 16.2% (see chart). Given those magnitudes, the tax plan is likely to require massive readjustments throughout the economy.

That’s why major importers, like Wal-Mart Stores, are objecting—and why exporters are clearly pleased. As you might expect, then, the BAT is pitting exporters against importers, creating needless discord at a time when the country is surely suffering from more discord than it can handle.

THE POSITION PAPER for the Better Way asserts that by “exempting exports and taxing imports,” the BAT does “not” consist of the “addition of a new tax.” But of course, the BAT’s designers know that imports normally exceed exports by about $500 billion a year. Apply a back-of-the-envelope 20% to that $500 billion, and you get the hoped-for $100 billion in revenue. So the maneuver of “exempting exports and taxing imports” certainly looks and sounds like a new tax.

The Better Way statement also argues that there is an imbalance in the tax treatment of imports and exports that the BAT must remedy. “In the absence of border adjustments,” it states, “exports from the United States implicitly bear the cost of the U.S. income tax, while imports do not bear any federal income tax cost. This amounts to a self-imposed unilateral penalty on American exports and a self-imposed unilateral subsidy for U.S. imports.”

Ryan strongly supports the tax. Chip Somodevilla/Getty Images

But all other countries impose this “implicit cost” on exports through their own corporate income tax. And since the Better Way would slash America’s top rate to 20%, this implicit cost would finally become competitive with that of other nations.

Some supporters of the BAT like it precisely because it would help exports and penalize imports. The mercantilist view of economics implicit in that aim was discredited in Adam Smith’s 1776 treatise, The Wealth of Nations. And apart from the massive dislocations that will occur if imports shrink, this calls into question whether the projected $100 billion a year in revenue is realistic. As Alan Greenspan once wisely said, “Whatever you tax, you get less of.”

Then again, whether we really will get fewer imports depends a lot on the exchange value of the dollar. Other supporters of the BAT predict that the dollar will respond by appreciating against other currencies, conforming to the dictates of textbook fundamentals. If the dollar appreciates enough, the advantage to exporters and disadvantage to importers will be nullified. Without getting into the technicalities of how all this would work, we concede that it is all quite possible.

But as currency analysts and traders can tell you, exchange rates are subject to all kinds of forces and can spend long periods flouting textbook fundamentals. So whether the dollar will really strengthen in response to the BAT is anyone’s guess. But even if it does, a much stronger greenback would bring other disruptions. American investors with holdings denominated in foreign currencies would take a huge hit. And America’s tourist industries, which are already hurting from what the Los Angeles Times has called a “Trump slump,” would be hurt even more, as the cost of traveling to the States jumps.

There are other questions. Would the World Trade Organization challenge the BAT? Might our trading partners respond in ways that would be unfavorable to us? The border adjustment tax is an experiment in Rube Goldberg economics that the U.S. can do without.

SINCE REVENUE NEUTRALITY is the goal of the Better Way package, what about making up for the $100 billion a year in revenue that the border adjustment tax is supposed to generate?

Whether this tax really will raise as much as $100 billion depends on how imports and exports respond, which is hard to predict. Also, the reduction in the corporate income tax would probably be revenue-enhancing and could generate more than $50 billion in annual revenue.

The president has declared that “anytime I hear border adjustment, I don’t love it” and has voiced concern that it’s overly complicated. Michael Reynolds/Getty Images

We note that the full title of the House Republican plan is “A Better Way: Our Vision for a Confident America,” which leaves room for a vision that includes cost-cutting, along with tax-cutting.

It’s actually possible to reduce outlays by as much as $8.6 trillion over the next 10 years, as we pointed out in Barron’s Prescription for U.S. Economic Growth” (Dec. 24, 2016).

That discussion revealed much low-hanging fruit. For example, the Medicare system is rife with “improper payments,” which Medicare itself estimates at 11% of its spending in 2016. That’s probably a low estimate, because those who get improperly paid tend to keep these payments hidden. Barron’s calculated that if the improper-payment rate could be halved, it would save more than $400 billion over 10 years.

That would contribute $40 billion a year to the $100 billion shortfall from forgoing the BAT. To that we add $65 billion, and perhaps as much as $100 billion, by eliminating corporate welfare.

The Better Way statement properly criticizes the tax code for being “littered with hundreds of preferences and subsidies that pick winners and losers” and “direct resources to politically favored interests.” Spending on corporate welfare is another form of subsidy that picks winners and losers and directs funds to politically favored interests.

IN A 2012 PAPER, “Corporate Welfare in the Federal Budget,” the Cato Institute identified nearly $100 billion worth of yearly spending on corporate handouts, broadly defined, that could be ended. At Barron’s request, Cato senior fellow Chris Edwards updated the scoring on just 10 of the institute’s 40 categories of corporate welfare and came up with $66 billion in potential cuts.

High on Edwards’ list: farm subsidy programs, which redistribute taxpayer money to relatively rich agribusinesses and landowners. That the farm industry receives subsidies makes about as much sense as channeling funds to the restaurant industry, which could well be riskier than farming, based on its high failure rate. This form of corporate welfare goes back to the Great Depression of the 1930s. But whatever argument might have been made for it then hardly applies today, with the yearly tab currently at $25 billion.

Also on the corporate welfare list: pork-barrel handouts administered by the Department of Housing and Urban Development, totaling $13 billion, which go under the heading of “community development,” and which distribute funds to such recipients as museums, recreational facilities, and parking lots. Whatever one may think about the worthiness of these projects, they are better left to states and localities.

Another $10 billion could be saved by abolishing the Universal Service Fund, through which the Federal Communications Commission subsidizes telecommunications companies, among others. A creation of the Telecommunications Act of 1996, this attempt to pick winners and losers is more unnecessary than ever in this dynamic and competitive industry.

PRESIDENT TRUMP PROMISED to “drain the swamp” of Washington’s special interests. One route toward that admirable goal would be to cut corporate welfare. Trump should repeat his objections to a border adjustment tax that would favor the interests of some businesses over others. He can help make U.S. corporations great again by weaning them off subsidies and reducing their tax burdens.

http://www.barrons.com/articles/why-the-border-adjustment-tax-should-be-killed-1489814286

Concerns About The ‘Border Adjustable’ Tax Plan From The House GOP, Part I

The Republicans in the House of Representatives, led by Ways & Means Chairman Kevin Brady and Speaker Paul Ryan, have proposed a “Better Way” tax plan that has many very desirable features.

And there are many other provisions that would reduce penalties on work, saving, investment, and entrepreneurship. No, it’s not quite a flat tax, which is the gold standard of tax reform, but it is a very pro-growth initiative worthy of praise.

That being said, there is a feature of the plan that merits closer inspection. The plan would radically change the structure of business taxation by imposing a 20 percent tax on all imports and providing a special exemption for all export-related income. This approach, known as “border adjustability,” is part of the plan to create a “destination-based cash flow tax” (DBCFT).

When I spoke about the Better Way plan at the Heritage Foundation last month, I highlighted the good features of the plan in the first few minutes of my brief remarks, but raised my concerns about the DBCFT in my final few minutes.

Allow me to elaborate on those comments with five specific worries about the proposal.

Concern #1: Is the DBCFT protectionist?

It certainly sounds protectionist. Here’s how the Financial Times described the plan.

The border tax adjustment would work by denying US companies their current ability to deduct import costs from their taxable income, meaning companies selling imported products would effectively be taxed on the full value of the sale rather than just the profit. Export revenues, meanwhile, would be excluded from company tax bases, giving net exporters the equivalent of a subsidy that would make them big beneficiaries of the change.

Charles Lane of the Washington Post explains how it works.

…the DBCFT would impose a flat 20 percent tax only on earnings from sales of output consumed within the United States… It gets complicated, but the upshot is that the cost of imported supplies would no longer be deductible from taxable income, while all revenue from exports would be. This would be a huge incentive to import less and export more, significant change indeed for an economy deeply dependent on global supply chains.

That certainly sounds protectionist as well. A tax on imports and a special exemption for exports.

But proponents say there’s no protectionism because the tax is neutral if the benchmark is where products are consumed rather than where income is earned. Moreover, they claim exchange rates will adjust to offset the impact of the tax changes. Here’s how Lane explains the issue.

…the greenback would have to rise 25 percent to offset what would be a new 20 percent tax on imported inputs — propelling the U.S. currency to its highest level on record. The international consequences of that are unforeseeable, but unlikely to be totally benign for everyone. Bear in mind that many other countries — China comes to mind — can and will manipulate exchange rates to protect their own short-term interests.

For what it’s worth, I accept the argument that the dollar will rise in value, thus blunting the protectionist impact of border adjustability. It would remain to be seen, though, how quickly or how completely the value of the dollar would change.

Concern #2: Is the DBCFT compliant with WTO obligations?

The United States is part of the World Trade Organization (WTO) and we have ratified various agreements designed to liberalize world trade. This is great for the global economy, but it might not be good news for the Better Way plan because WTO rules only allow border adjustability for indirect taxes like a credit-invoice value-added tax. The DBCFT, by contrast, is a version of a corporate income tax, which is a direct tax.

The column by Charles Lane explains one of the specific problems.

Trading partners could also challenge the GOP plan as a discriminatory subsidy at the World Trade Organization. That’s because it includes a deduction for wages paid by U.S.-located firms, importers and exporters alike — a break that would obviously not be available to competitors abroad.

Advocates argue that the DBCFT is a consumption-base tax, like a VAT. And since credit-invoice VATs are border adjustable, they assert their plan also should get the same treatment. But the WTO rules say that only “indirect” taxes are eligible for border adjustability. The New York Times reports that the WTO therefore would almost surely reject the plan.

Michael Graetz, a tax expert at the Columbia Law School, said he doubted that argument would prevail in Geneva. “W.T.O. lawyers do not take the view that things that look the same economically are acceptable,” Mr. Graetz said.

A story in the Wall Street Journal considers the potential for an adverse ruling from the World Trade Organization.

Even though it’s economically similar to, and probably better than, the value-added taxes (VATs) many other countries use, it may be illegal under World Trade Organization rules. An international clash over taxes is something the world can ill afford when protectionist sentiment is already running high. …The controversy is over whether border adjustability discriminates against trade partners. …the WTO operates not according to economics but trade treaties, which generally treat tax exemptions on exports as illegal unless they are consumption taxes, such as the VAT. …the U.S. has lost similar disputes before. In 1971 it introduced a tax break for exporters that, despite several revamps, the WTO ruled illegal in 2002.

And a Washington Post editorial is similarly concerned.

Republicans are going to have to figure out how to make such a huge de facto shift in the U.S. tax treatment of imports compliant with international trade law. In its current iteration, the proposal would allow corporations to deduct the costs of wages paid within this country — a nice reward for hiring Americans and paying them well, which for complex reasons could be construed as a discriminatory subsidy under existing World Trade Organization doctrine.

Concern #3: Is the DBCFT a stepping stone to a VAT?

If the plan is adopted, it will be challenged. And if it is challenged, it presumably will be rejected by the WTO. At that point, we would be in uncharted territory.

Would that force the folks in Washington to entirely rewrite the tax system? Would they be more surgical and just repeal border adjustability? Would they ignore the WTO, which would give other nations the right to impose tariffs on American exports?

One worrisome option is that they might simply turn the DBCFT into a subtraction-method value-added tax (VAT) by tweaking the law so that employers no longer could deduct  expenses for labor compensation. This change would be seen as more likely to get approval from the WTO since credit-invoice VATs are border adjustable.

This possibility is already being discussed. The Wall Street Journal story about the WTO issue points out that there is a relatively simple way of making the DBCFT fit within America’s trade obligations, and that’s to turn it into a value-added tax.

One way to avoid such a confrontation would be to revise the cash flow tax to make it a de facto VAT.

The Economistshares this assessment.

…unless America switches to a full-fledged VAT, border adjustability may also be judged to breach World Trade Organisation rules.

Steve Forbes is blunt about this possibility.

One tax initiative that should be strangled before it sees the light of day is to give a tax rebate to exporters and to impose taxes on imports. …It’s a bad idea. Why do we want to make American consumers pay more for products while subsidizing foreign buyers? It also could put us on the slippery slope to our own VAT.

And that’s not a slope we want to be on. Unless the income tax is fully repealed (sadly not an option), a VAT would be a recipe for turning America into a European-style welfare state.

Concern #4: Does the DBCFT undermine tax competition and give politicians more ability to increase tax burdens?

Alan Auerbach, an academic from California who previously was an adviser for John Kerry and also worked at the Joint Committee on Taxation when Democrats controlled Capitol Hill, is the main advocate of a DBCFT (the New York Timeswrote that he is the “principal intellectual champion” of the idea).

He wrote a paper several years ago for the Center for American Progress, a hard-left group closely associated with Hillary Clinton. Auerbach explicitly argued that this new tax scheme is good because politicians no longer would feel any pressure to lower tax rates.

This…alternative treatment of international transactions that would relieve the international pressure to reduce rates while attracting foreign business activity to the United States. It addresses concerns about the effect of rising international competition for multinational business operations on the sustainability of the current corporate tax system. With rising international capital flows, multinational corporations, and cross-border investment, countries’ tax rates and tax structures are of increasing importance. Indeed, part of the explanation for declining corporate tax rates abroad is competition among countries for business activity. …my proposed reforms…builds on the [Obama] Administration’s approach…and alleviates the pressure to reduce the corporate tax rate.

This is very troubling. Tax competition is a very valuable liberalizing force in the world economy. It partially offsets the public choice pressures on politicians to over-tax and over-spend. If governments no longer had to worry that taxable activity could escape across national borders, they would boost tax rates and engage in more class warfare.

Also, it’s worth noting that the so-called Marketplace Fairness Act, which is designed to undermine tax competition and create a sales tax cartel among American states, uses the same “destination-based” model as the DBCFT.

Concern #5: Does the DBCFT create needless conflict and division among supporters of tax reform?

As I pointed out in my remarks at the Heritage Foundation, there’s normally near-unanimous support from the business community for pro-growth tax reforms.

That’s not the case with the DBCFT.

The Washington Examiner reports on the divisions in the business community.

Major retailers are skeptical of the House Republican plan to revamp the tax code, fearing that the GOP call to border-adjust corporate taxes could harm them even if they win a significant cut to their tax rate. As a result, retailers, oil refiners and other industries that import goods to sell in the U.S. could provide a major obstacle to the Republican effort to reform taxes. …The effect of the border adjustment, retailers fear, would be that the goods they import to sell to consumers would face a 20 percent mark-up, one that would force retailers like Walmart, the Home Depot and Sears…to raise prices and lose customers.

A story from CNBC highlights why retailers are so concerned.

…retailers are nervous. Very nervous. …About 95 percent of clothing and shoes sold in the U.S. are manufactured overseas, which means imports make up a vast majority of many U.S. retailers’ merchandise. …If the GOP plan were adopted as it’s currently laid out, Gap pays 20 percent corporate tax on the $5 profit from the sweater, or $1. Plus, 20 percent tax on the $80 cost it paid for that sweater from the overseas supplier, or $16. That means the tax goes from $1.75 to $17 for that sweater, more than three times the profit on that sweater. Talk about a hit to margins. …Retailers certainly aren’t taking a lot of comfort in the economic theory of dollar appreciation. …the tax reform plan will dilute specialty retailers’ earnings by an average of 132 percent. …Athletic manufacturers could take a 40 percent earnings hit… Gap, Carter’s , Urban Outfitters , Fossil and Under Armour are most at risk under the plan.

And here’s another article from the Washington Examiner that explains why folks in the energy industry are concerned.

…the border adjustment would raise costs for refiners that import oil. In turn, that could raise prices for consumers. The border adjustment would amount to a $10-a-barrel tax on imported crude oil, raising costs for drivers buying gasoline by up to 25 cents a gallon, the energy analyst group PIRA Energy Group warned this week. The report warned of a “potential huge impact across the petroleum industry,” even while noting that the tax reform plan faces many obstacles to passage.

Concern #6: What happens when other nations adopt their versions of a DBCFT?

Advocates of the DBCFT plausibly argue that if the WTO somehow approves their plan, then other nations will almost certainly copy the new American system.

That will be a significant blow to tax competition, which would be very bad news for the global economy.

But is also has negative implications for the fight to protect America from a VAT. The main selling point for advocates of the DBCFT is that we need a border-adjustable tax to offset the supposed advantage that other nations have because of border-adjustable VATs (both Paul Krugman and I agree that this is nonsense, but it still manages to be persuasive for some people).

So what happens when other nations turn their corporate income taxes into DBCFTs, which presumably will happen? We’re than back where we started and misguided people will say we need our own VAT to balance out the VATs in other nations.

The bottom line is that a DBCFT is not the answer to America’s wretched business tax system. There are simply too many risks associated with this proposal. I’ll elaborate tomorrow in Part II and also explain some good ways of pursuing tax reform without a DBCFT.

https://www.forbes.com/sites/danielmitchell/2017/01/03/concerns-about-theborder-adjustable-tax-plan-from-the-house-gop-part-i/2/#1edd1775d9e8

MAR 27,2017

Chairman Brady Acknowledges “Valid Concerns” About the Border Adjustment Tax Harming U.S. Businesses

Post by Freedom Partners

After months of insisting that a trillion-dollar Border Adjustment Tax (BAT) on American consumers is the best and only way to achieve pro-growth tax reform without adding to the deficit, Ways and Means Chairman Kevin Brady acknowledged that importers fearful of the new tax have “valid concerns.”

The proposed BAT from House Republicans would mean a new 20 percent tax on everything imported into the U.S., raising up to $1.2 trillion of new government revenue in the form of higher prices, shouldered by consumers. In effect, the regressive tax could undercut positive economic outcomes from lower rates and a simplified tax code through tax reform.

According to Chairman Brady, House Republicans need to “make sure that we allay the valid concerns of those that are importing today,” CNBC reports.

 Freedom Partners Vice President of Policy Nathan Nascimento issued the following statement:

“Some of the ‘valid concerns’ that Chairman Brady acknowledges include a devastating new trillion-dollar tax hike, higher costs on everyday goods, fewer jobs, and less economic opportunity. We hope to work with the administration and Congress to get pro-growth tax reform done, but a 20 percent tax hike on all imports would only undermine the point of tax reform – which is to provide much-needed relief for taxpayers and the economy. A massive tax hike on all imports is bad policy, and Americans deserve a better plan that can unite lawmakers in both the House and Senate behind comprehensive tax reform.”

U.S. manufacturers would be threatened by increased complexity and disruptions to supply chains, resulting in increased costs, fewer sales, and job loss. “Anytime I hear border adjustment, I don’t love it … And it’s too complicated,” President Donald Trump told The Wall Street Journal earlier this year.

Americans for Prosperity has already identified more than $2 trillion in wasteful spending, unnecessary programs, and corporate welfare that ought to be eliminated before any new tax on U.S. consumers. Freedom Partners and its coalition allies support the efforts of Congress and the administration to bring comprehensive tax reform to reality in a way that protects all Americans from a massive tax hike.

READ: Border Adjustment Tax Myth vs. Fact

U.S. Businesses Facing Massive Tax Increases Under A Border-Adjusted Tax System Have “Valid Concerns”

Wall Street Journal: “Some Retailers And Other Big Importers … Warn Of Tax Bills That Would Exceed Profits, Forcing Them To Pass Costs To Consumers. ”Cody Lusk, president of the American International Automobile Dealers Association, says his members are shocked that a Republican Congress is proposing a 20% tax on imports.” (Richard Rubin, “GOP Plan To Overhaul Tax Code Gets Held Up At The Border,” Wall Street Journal, 2/7/17)

LUSK: “We view this as a very, very serious potential blow to the auto sector and the economy.” (Richard Rubin, “GOP Plan To Overhaul Tax Code Gets Held Up At The Border,” Wall Street Journal, 2/7/17)

Financial Times: Border Tax Threatens To Devastate Importers Through Soaring Tax Bills. “Yet for Mr. Woldenberg the hope has turned to horror. Republicans are still promising the most sweeping changes since the Reagan reforms of 1986. But the only firm proposal on the table — from the House of Representatives — threatens to devastate his 150-person business because it includes a 20 per cent tax on imports … The problem for Mr. Woldenberg is that his goods come from China — 98 per cent of the products he sells in the US are imported. US factories could not produce them with the same low costs and specialized skills, he says. So he would have no choice but to pay the import levy. He estimates it would send his tax bill soaring to 165 per cent of earnings.” (Barney Jopson, Sam Fleming & Shawn Donnan, “Trump And The Tax Plan Threatening To Split Corporate America,” Financial Times, 2/13/17)

RICK WOLDENBERG: “To preserve cash flow I [would have to] raise my prices by a third, expect volume to go down by 40 per cent, and fire one out of five people.” (Barney Jopson, Sam Fleming & Shawn Donnan, “Trump And The Tax Plan Threatening To Split Corporate America,” Financial Times, 2/13/17)

RBC Capital Markets: Major Retailers Would Face Tax Bills That Exceed Their Operating Profits. “Major retailers like Wal-Mart, Best Buy, Costco and Dollar Tree would face tax bills that exceed their operating profits under House Republicans’ plans to create a ‘border adjustable’ business tax, RBC Capital Markets said. The investment bank sided with retailers in a debate over the proposal, saying in a research note it would have a ‘seriously adverse’ impact on them. ‘If the US moves to a border-adjusted tax system, most of our retailers would be forced to raise prices (and revenues) or meaningfully change their import/domestic sourcing mix, or their earnings would be materially reduced,’ it said.” (Brian Faler, “RBC Capital Markets: GOP Border-Adjustment Plan Bad For Retailers,” POLITICO Pro, 12/12/16)

POLITICO: “Retailers Fear Massive Tax Increases Under House Republican Tax Plan” “Many retailers fear that, even with Republicans promising to slash the corporate tax rate, they will still face big tax increases that in some cases will exceed their profits. On high alert over the proposal, retailers have begun a big lobbying campaign on the Hill, warning lawmakers and their aides that any tax hikes will get passed on to their constituents in the form of higher prices.” (Brian Faler, “Retailers Fear Massive Tax Increases Under House Republican Tax Plan,” POLITICO, 11/23/16)

The National Retail Federation Warns That A Border Tax Could Shut Businesses Down Completely. “‘Our members have told us that the import tax could be as high as five times their profits,’ said David French, chief lobbyist for the National Retail Federation. ‘I don’t know how viable some retailers would be in the face of this import tax.’” (Brian Faler, “Retailers Fear Massive Tax Increases Under House Republican Tax Plan,” POLITICO, 11/23/16)

POLITICO Pro: “Some Of The Biggest Losers Would Be Retailers Like Walmart, Best Buy And Home Depot That Import Massive Amounts Of Goods And Materials On Which They Would Suddenly Have To Pay Taxes.” “The border adjustment plan would affect individual companies differently, depending in part on how much they import and export. Some of the biggest losers would be retailers like Walmart, Best Buy and Home Depot that import massive amounts of goods and materials on which they would suddenly have to pay taxes.” (Brian Faler, “Some Companies May Never Pay Taxes Under Border-Adjustment Tax Plan,” POLITICO Pro, 1/9/17)

Axios: Cowen Research Released A Study Highlighting Some Of The Big Name Companies That Will Be Hurt By The Border Adjustments High Tax Hikes. “Cowen Research published a report Thursday that estimates the effect of the reform plan, and other planned measures, like eliminating the deductibility of interest and a headline corporate tax cut, on different industries and companies. Here are some of the big-name firms Cowen says will be hurt by reform: 1. Apple: The world’s largest company would see its tax bill jump because it won’t be able to deduct the expense of assembly abroad. 2. Constellation Brands: The largest beer importer in America will not be able to expense the cost of goods it brings across the border, like its Corona brand. 3. Gap: Between 50% and 80% of the retailer’s cost of the goods its sells comes from abroad. Walmart: 4. Walmart’s low margins means that it may not be able to survive a tax hike on imported goods without raising prices. 5. Target: Will suffer from the same conundrum as Walmart, but will be worse off since less of its revenue comes from domestically-sourced groceries. J.C. Penney: The department store has high debt loads, and interest on debt will not be deductible under the Republican plan. (Christopher Matthews, “These Companies Will Be Hit Hardest By GOP Tax Reform,” Axios, 1/27/17)

Border Adjustment Tax Would Result In Higher Costs For Hard-Working Families

Christian Science Monitor: Border Tax Could Raise Car Prices By Thousands Of Dollars. “Michigan-based Baum & Associates says that a border tax–one that applies not only to vehicles imported from factories abroad but also to foreign-made vehicle parts–could increase sticker prices by as much as $17,000 … Most increases would be smaller, but still very substantial. Volvo, for example, would need to up its prices by more than $7,500 to accommodate a border tax. Volkswagen wouldn’t be far behind, with increases of around $6,800. Even Detroit brands would see price upticks: Ford’s would climb $285, and General Motors’ would rise by nearly $1,000. Fiat Chrysler would have to boost prices by closer to $2,000.” (Richard Read, “How Trump’s Border Tax Could Raise Car Prices By Thousands Of Dollars,Christian Science Monitor, 2/8/17)

Auto Sales Would Plummet Under A Border Adjustment Tax. “A report from UBS Securities says that the higher car prices would slash U.S. auto sales by about 2 million vehicles per year. That would more than erase the increased capacity and almost certainly result in layoffs.” (Richard Read, “How Trump’s Border Tax Could Raise Car Prices By Thousands Of Dollars,Christian Science Monitor, 2/8/17)

More Than A Hundred American Businesses Are Opposing The Republican Border Tax: “Don’t Make Hard-Working Families Pay More On Essential Products.” “Nike, Rite Aid, The Gap, Best Buy and Abercrombie & Fitch have joined a new advocacy group aimed at killing House Republicans’ plans to create a border adjustable business tax. They are some of the more than 100 companies and trade associations behind Americans for Affordable Products, an organization launched today that is pushing lawmakers to dump a plan to begin taxing imports as part of a broader tax-code rewrite. The groups, which rely on imports, fear the House Republican plan will mean huge tax increase even as Republicans promise to simultaneously slash the corporate tax rate … Other well-known companies joining the effort include Target, Walmart, QVC, Petco, AutoZone, Macy’s and Levi Strauss.” (Brian Faler, “Border Adjustment Tax Opponents Launch New Group Targeting GOP Proposal,” Politico, 2/01/17)

“A Sweeping Tax Reform Proposal Meant To Boost U.S. Manufacturing Faces Mounting Pressure From Industries That Rely Heavily On Imported Goods …” “A sweeping tax reform proposal meant to boost U.S. manufacturing faces mounting pressure from industries that rely heavily on imported goods as President-elect Donald Trump and congressional Republicans work to finalize new tax legislation. As Republican members of the House of Representatives tax committee prepared to discuss tax reform this week, the panel received a letter from 81 industry groups rejecting the proposal known as ‘border adjustability.’ A lynchpin of the House Republican ‘Better Way’ agenda and viewed favorably by Trump’s team, the policy would help manufacturers by exempting export revenues from corporate taxes. But it would tax imports, hitting import-dependent industries.” (David Morgan, “U.S. Tax Reform Proposal On Border Trade Faces Growing Opposition,” Reuters, 12/15/16)

“Companies That Rely On Global Supply Chains Would Face Huge Business Challenges Caused By Increased Taxes And Increased Cost Of Goods.” “In a Dec. 13 letter to House Ways and Means Chairman Kevin Brady and incoming top Democrat Richard Neal, groups representing the auto and retailing industries, among others, said: ‘Companies that rely on global supply chains would face huge business challenges caused by increased taxes and increased cost of goods.’ They warned of ‘reductions in employment, reduced capital investments and higher prices for consumers’ as potential consequences.” (David Morgan, “U.S. Tax Reform Proposal On Border Trade Faces Growing Opposition,” Reuters, 12/15/16)

CNBC: Coach CEO Victor Luis Acknowledged That “Any Border Tax Will Lead To Higher Prices For The Consumer.” “If we see this border adjustment in an economy where 70 percent of GDP is driven by consumption that is driven on imports, any border tax will lead to higher prices for the consumer … That’s just a reality that we’ll have to face if it comes to that.” (Rachel Cao, “Coach CEO: Any Border Tax Will Lead To Higher Prices For The Consumer,” CNBC, 1/31/17)

National Retail Federation: The Border Adjustment Tax Could Cost The Average Family $1,700 In Just The First Year. “The imposition of a ‘border adjustment tax,’ a key provision of a pending House tax reform proposal, would end up seriously harming U.S. consumers. NRF analysis indicates that this plan could cost the average family $1,700 in the first year alone if the border adjustment provision is enacted. While economic theory suggests that trade flow of imports and exports would balance out over the long run due to offsetting exchange rate and price adjustments, there is no consensus as to the degree or the timing of these adjustments. In the near term, consumers would be left to pick up the significant tab while hoping that the economic theory proves out.” (Mark Mathews, “Border Adjustment Tax Would Cost American Households Up To $1,700 In First Year Alone,” National Retail Federation, 2/3/17)

NRF: Annual Family’s Savings Could Be Wiped Out By Nearly A Third. “For the average family, 27 percent of their savings (income after taxes and expenditures) could evaporate with the cost increases caused by the border tax.” (Mark Mathews, “Border Adjustment Tax Would Cost American Households Up To $1,700 In First Year Alone,” National Retail Federation, 2/3/17)

  • “Unmarried adults without children currently have only $443 left over annually after taxes and expenditures. If the border adjustment tax were enacted, they could see an $836 increase in costs — nearly 200 percent higher than their annual savings.”
  • “One-parent households, which are already in the red, could see an additional $1,000 added to their debt burden as they do what they can to make ends meet. Their apparel and footwear bills would increase by $271
  • “The average family (married with children) could see their apparel costs (including shoes) increase by $437 a year.”
  • “Single people could see their annual gasoline bills rise by $189, a whopping 43 percent of their annual average savings.”
  • “Married couples with children could see their annual gasoline bill could increase by over $400.”

CNBC: “The Republicans’ Plan To Enact A Border Adjustment Tax Will Leave Consumers Digging Deeper Into Their Pockets,” Increasing The Price Of Everyday Goods Like Clothes And Shoes By 20 Percent. “It will force consumers to pay as much as 20 percent more for the products they need. Gasoline is estimated to go up as much as 35 cents a gallon,’ said ‘Americans for Affordable Products’ advisor Brian Dodge … ‘Common household goods, apparel, things that people count on every day, pajamas, will cost more and really just so a certain, select group of corporations can avoid paying taxes forever. We think that’s bad policy…” (Michelle Fox, “Consumers Could See 20% Price Hike With Border Adjustment Tax, Retail Group Says,” CNBC, 2//17)

Economists And Analysts Weigh-In Against Border Adjustments

Dan Mitchell, Cato Institute: “I’ve Never Understood Why Politicians Think It’s A Good Idea To Have Higher Taxes On What Americans Consume And Lower Taxes On What Foreigners Consume.” (Dan Mitchell, “A Remarkably Good And Reasonably Bold Tax Reform Plan From House Republicans,” International Liberty, 6/25/16)

President Of The New York Fed Bill Dudley: “… There Could Be A Lot Of Unintended Consequences.” “Another prominent critic of a ‘border adjustment tax’ emerged Tuesday: the president of the New York Federal Reserve. Bill Dudley was asked by Macy’s CEO Terry Lundgren at a meeting of the National Retail Federation trade group what he thinks of the idea of a border adjustment tax, which involves taxing imports at 20 percent, while making U.S. exports tax-free. … ‘I think that it will lead to a lot of changes in the value of the dollar, the price of imported goods in the U.S., and I’m not sure that would all happen very smoothly,’ Dudley said. ‘I also think there could be a lot of unintended consequences.’” (Michelle Caruso-Cabrera, “NY Fed’s Dudley Sees ‘A Lot Of Unintended Consequences’ From Border-Tax Plan,” CNBC, 1/17/17)

Stephen Moore, Heritage Foundation: Border Tax Unlikely To Be Enacted. “A Heritage Foundation economist who advised President Trump’s campaign said he doubts a proposal from House Republicans to tax imports and exempt exports will gain traction.” (Naomi Jagoda, “Trump Campaign Adviser: Border Tax Unlikely To Be Enacted,” The Hill, 2/7/17)

MOORE: “I think it’s a distraction.” (Naomi Jagoda, “Trump Campaign Adviser: Border Tax Unlikely To Be Enacted,” The Hill, 2/7/17)

Steve Forbes: Border Adjustment Amounts To “Sneaky, Anti-Consumer Tax.” “This levy will cost American consumers at least a trillion dollars over the next ten years …  Prices for everyday items, such as socks, shoes and household appliances, will go up. So will tech devices like the iPad, not to mention automobiles and trucks. Gasoline? Millions of Americans will pay an additional 30 cents or more per gallon at the pump. Lower-income and struggling middle-class Americans will get hit the hardest.” (Steve Forbes, “OMG! House Republicans Are Preparing To Hit Consumers With A Horrible New Tax That Will Harm Trump And Hurt The Economy,” Forbes, 1/11/17)

POLITICO Pro: “Trump Adviser Larry Kudlow Slams Border-Adjustment Tax Plans.” “An economic adviser to President-elect Donald Trump slammed plans to create a so-called border adjustable business tax, and predicted it could kill efforts to overhaul the tax code. The House Republican proposal is overly complicated …  said Larry Kudlow, who helped write Trump’s tax-reform plans.” (Brian Faler, “Trump Adviser Larry Kudlow Slams Border-Adjustment Tax Plans,” POLITICO Pro, 1/12/17)

KUDLOW: “That is an exercise in government planning and complexity that I believe is doomed to fail … I think the whole corporate tax reform, which is the most important pro-growth measure, will go down the drain over this … There’s a problem that exists, but this is not the right solution …” (Brian Faler, “Trump Adviser Larry Kudlow Slams Border-Adjustment Tax Plans,” POLITICO Pro, 1/12/17)

KUDLOW: “GOP’s Border Adjustment Tax Is ‘Voodoo Economics” “President-elect Donald Trump is correct to criticize the House Republican plan to tax cross-border trade … said Larry Kudlow, who served as a senior economic adviser to Trump’s campaign…’I hate to say this, but it’s ‘voodoo economics’” (R. Williams, “Larry Kudlow: GOP’s Border Adjustment Tax Is ‘Voodoo Economics,” Newsmax, 1/17/17)

https://freedompartners.org/latest-news/chairman-brady-acknowledges-valid-concerns-border-adjustment-tax-harming-u-s-businesses/

Concerns about the”Border Adjustable” Tax Plan from the House GOP, Part II

I wrote yesterday to praise the Better Way tax plan put forth by House Republicans, but I added a very important caveat: The “destination-based” nature of the revised corporate income tax could be a poison pill for reform.

I listed five concerns about a so-called destination-based cash flow tax (DBCFT), most notably my concerns that it would undermine tax competition (folks on the left think it creates a “race to the bottom” when governments have to compete with each other) and also that it could (because of international trade treaties) be an inadvertent stepping stone for a government-expanding value-added tax.

Brian Garst of the Center for Freedom and Prosperity has just authored a new study on the DBCFT. Here’s his summary description of the tax.

The DBCFT would be a new type of corporate income tax that disallows any deductions for imports while also exempting export-related revenue from taxation. This mercantilist system is based on the same “destination” principle as European value-added taxes, which means that it is explicitly designed to preclude tax competition.

Since CF&P was created to protect and promote tax competition, you won’t be surprised to learn that the DBCFT’s anti-tax competition structure is a primary objection to this new tax.

First, the DBCFT is likely to grow government in the long-run due to its weakening of international tax competition and the loss of its disciplinary impact on political behavior. … Tax competition works because assets are mobile. This provides pressure on politicians to keep rates from climbing too high. When the tax base shifts heavily toward immobile economic activity, such competition is dramatically weakened. This is cited as a benefit of the tax by those seeking higher and more progressive rates. …Alan Auerbach, touts that the DBCFT “alleviates the pressure to reduce the corporate tax rate,” and that it would “alter fundamentally the terms of international tax competition.” This raises the obvious question—would those businesses and economists that favor the DBCFT at a 20% rate be so supportive at a higher rate?

Brian also shares my concern that the plan may morph into a VAT if the WTO ultimately decides that is violates trade rules.

Second, the DBCFT almost certainly violates World Trade Organization commitments. …Unfortunately, it is quite possible that lawmakers will try to “fix” the tax by making it into an actual value-added tax rather than something that is merely based on the same anti-tax competition principles as European-style VATs. …the close similarity of the VAT and the DBCFT is worrisome… Before VATs were widely adopted, European nations featured similar levels of government spending as the United States… Feeding at least in part off the easy revenue generate by their VATs, European nations grew much more drastically over the last half century than the United States and now feature higher burdens of government spending. The lack of a VAT-like revenue engine in the U.S. constrained efforts to put the United States on a similar trajectory as European nations.

And if you’re wondering why a VAT would be a bad idea, here’s a chart from Brian’s paper showing how the burden of government spending in Europe increased once that tax was imposed.

In the new report, Brian elaborates on the downsides of a VAT.

If the DBCFT turns into a subtraction-method VAT, its costs would be further hidden from taxpayers. Workers would not easily understand that their employers were paying a big VAT withholding tax (in addition to withholding for income tax). This makes it easier for politicians to raise rates in the future. …Keep in mind that European nations have corporate income tax systems in addition to their onerous VAT regimes.

And he points out that those who support the DBCFT for protectionist reasons will be disappointed at the final outcome.

…if other nations were to follow suit and adopt a destination-based system as proponents suggest, it will mean more taxes on U.S. exports. Due to the resulting decline in competitive downward pressure on tax rates, the long-run result would be higher tax burdens across the board and a worse global economic environment.

Brian concludes with some advice for Republicans.

Lawmakers should always consider what is likely to happen once the other side eventually returns to power, especially when they embark upon politically risky endeavors… In this case, left-leaning politicians would see the DBCFT not as something to be undone, but as a jumping off point for new and higher taxes. A highly probable outcome is that the United States’ corporate tax environment becomes more like that of Europe, consisting of both consumption and income taxes. The long-run consequences will thus be the opposite of what today’s lawmakers hope to achieve. Instead of a less destructive tax code, the eventual result could be bigger government, higher taxes, and slower economic growth.

Amen.

My concern with the DBCFT is partly based on theoretical objections, but what really motivates me is that I don’t want to accidentally or inadvertently help statists expand the size and scope of government. And that will happen if we undermine tax competition and/or set in motion events that could lead to a value-added tax.

Let’s close with three hopefully helpful observations.

Helpful Reminder #1: Congressional supporters want a destination-based system as a “pay for” to help finance pro-growth tax reforms, but they should keep in mind that leftists want a destination-based system for bad reasons.

Based on dozens of conversations, I think it’s fair to say that the supporters of the Better Way plan don’t have strong feelings for destination-based taxation as an economic principle. Instead, they simply chose that approach because it is projected to generate $1.2 trillion of revenue and they want to use that money to “pay for” the good tax cuts in the overall plan.

That’s a legitimate choice. But they also should keep in mind why other people prefer that approach. Folks on the left want a destination-based tax system because they don’t like tax competition. They understand that tax competition restrains the ability of governments to over-tax and over-spend. Governments in Europe chose destination-based value-added taxes to prevent consumers from being able to buy goods and services where VAT rates are lower. In other words, to neuter tax competition. Some state governments with high sales taxes in the United States are pushing a destination-based system for sales taxes because they want to hinder consumers from buying goods and services from states with low (or no) sales taxes. Again, their goal is to cripple tax competition.

Something else to keep in mind is that leftist supporters of the DBCFT also presumably see the plan as being a big step toward achieving a value-added tax, which they support as the most effective way of enabling bigger government in the United States.

Helpful Reminder #2: Choosing the right tax base (i.e., taxing income only one time, otherwise known as a consumption-base system) does not require choosing a destination-based approach.

The proponents of the Better Way plan want a “consumption-base” tax. This is a worthy goal. After all, that principle means a system where economic activity is taxed only one time. But that choice is completely independent of the decision whether the tax system should be “origin-based” or “destination-based.”

The gold standard of tax reform has always been the Hall-Rabushka flat tax, which is a consumption-base tax because there is no double taxation of income that is saved and invested. It also is an “origin-based” tax because economic activity is taxed (only one time!) where income is earned rather than where income is consumed.

The bottom line is that you can have the right tax base with either an origin-based system or a destination-based system.

Helpful Reminder #3: The good reforms of the Better Way plan can be achieved without the downside risks of a destination-based tax system.

The Tax Foundation, even in rare instances when I disagree with its conclusions, always does very good work. And they are the go-to place for estimates of how policy changes will affect tax receipts and the economy. Here is a chart with their estimates of the revenue impact of various changes to business taxation in the Better Way plan. As you can see, the switch to a destination-based system (“border adjustment”) pulls in about $1.2 trillion over 10 years. And you can also see all the good reforms (expensing, rate reduction, etc) that are being financed with the various “pay fors” in the plan.

I am constantly asked how the numbers can work if “border adjustment” is removed from the plan. That’s a very fair question.

But there are lots of potential answers, including:

  • Make a virtue out of necessity by reducing government revenue by $1.2 trillion.
  • Reduce the growth of government spending to generate offsetting savings.
  • Find other “pay fors” in the tax code (my first choice would be the healthcare exclusion).
  • Reduce the size of the tax cuts in the Better Way plan by $1.2 trillion.

I’m not pretending that any of these options are politically easy. If they were, the drafters of the Better Way plan probably would have picked them already. But I am suggesting that any of those options would be better than adopting a destination-based system for business taxation.

Ultimately, the debate over the DBCFT is about how different people assess political risks. House Republicans advocating the plan want good things, and they obviously think the downside risks in the future are outweighed by the ability to finance a larger level of good tax reforms today. Skeptics appreciate that those proponents want good policy, but we worry about the long-run consequences of changes that may (especially when the left sooner or late regains control) enable bigger government.

P.S. This is not the first time that advocates of good policy have bickered with each other. During the 2016 nomination battle, Rand Paul and Ted Cruz proposed tax reform plans that fixed many of the bad problems in the tax code. But they financed some of those changes by including value-added taxes in their plans. In the short run, either plan would have been much better than the current system. But I was critical because I worried that the inclusion of VATs would eventually give statists a tool to further increase the burden of government.

https://www.cato.org/blog/concerns-about-theborder-adjustable-tax-plan-house-gop-part-ii

THE CORNER THE ONE AND ONLY. Speaker Ryan’s Use of Reporters’ Recorders to Explain His Border Tax Was Cute — But Misleading

Faced with growing opposition to their border-adjustment tax, congressional Republicans are nonetheless on the offensive trying to sell it. I have expressed my many reasons for opposing the tax, including my disbelief that Republicans would support a massive tax increase alongside what is otherwise a pro-growth tax reform. While they oppose tax increases to pay for spending increases in other contexts and usually make the case that spending increases should be paid for by spending cuts, Republicans continue to push for this massive new source of revenue, in spite of the distortions it would introduce.

Until now, supporters of the tax have used many questionable arguments. For instance, they claim we shouldn’t worry about the protectionist aspect of a tax that imposes a 20 percent rate to imports but exempts exports under the hope that the U.S. dollar will adjust fully and quickly. However, there are reasons to believe that while the U.S. currency will adjust, it won’t adjust fully (Federal Reserve Board chairwoman Janet Yellen is only the latest one to stress that point), it won’t adjust as quickly as they claim (especially if the tax is challenged under the World Trade Organization as the Europeans have warned is going to be the case), and it won’t result in unicorns and rainbows.

But the latest misguided statements about the border-adjustment tax comes from House speaker Paul Ryan — who ought to know better. During a press conference last week, he repeated the claim that United States was at a disadvantage because other countries’ exports are exempted from taxes while U.S. goods aren’t. [Ryan] noted that most other countries already border-adjust their taxes and tax goods based on whether they were consumed in their jurisdiction.

That comment is bound to confuse reporters because, as Mr. Ryan must know, no other country border-adjusts their corporate income tax. They border-adjust their Value Added Tax. Conflating the two is misleading, to say the least.

Ryan continued:

The Speaker picked up two reporters’ recorders to give an example of how goods are taxed currently. He suggested one was American-made and the other was Japanese-made. Early on, he dropped one of the recorders, saying “oops” and receiving laughter from the reporters. “Here’s what Japan does when they make this tape recorder: When they send it for export they take the tax off of it, and then it comes to America and it’s not taxed, and it comes through to compete against our good, which was taxed. Theirs was untaxed twice,” Ryan said. “When America makes something, like a tape recorder, we tax it, and then we send it to Japan. As it enters Japan it’s taxed again, to compete against their tape recorder,” he continued. “So we are doing it to ourselves. We are hurting our manufacturing and jobs. We are putting a bias against making things in America in the tax code. . . . That is why we think this is very important. This is good manufacturing policy.”

Oh boy, where do I begin? First, it is true that U.S. companies are at a disadvantage but it is not because of other countries’ tax codes. It is because our corporate-income-tax system has the highest rate of all OECD countries and because, unlike most of our competitors, it taxes U.S. companies’ profits no matter where they are earned in the world. The solution to this disadvantage is to reduce the rates and move to a territorial system. Oh, and by the way, unlike what Ryan and other proponents of a border-adjustment tax would like you to believe, you do not need to move to an expansive destination-based-cash-flow tax to have a territorial tax.

Now let me address the cute tape-recorder example used by the speaker. It is totally misleading because it conflates foreign countries corporate tax and VAT taxes and it paints a picture that is incorrect. For instance, he claims that Japanese exports are exempt from taxes. No, Japanese products exported to the U.S. are exempt from the Japanese VAT but the Japanese company is still paying U.S. corporate tax on its U.S. profits. And you know what? In that sense, the Japanese export is treated exactly like the U.S. goods sold in the U.S. In other words, the playing field is even! I repeat: Japanese goods in the U.S. are taxed like U.S. goods in the U.S.

How about U.S. exports in Japan? Well, it gets hit by the Japanese VAT in Japan and by the Japanese corporate tax but so are Japanese goods sold in Japan. Again, the only disadvantage faced by U.S. companies selling tape recorders abroad comes from the U.S. tax system, which requires that income earned in Japan be taxed by Uncle Sam at 35 percent after benefiting from a tax credit for tax paid in Japan. If the U.S. company decides to keep its Japanese income outside the U.S., the U.S. rate won’t apply.

Dan Mitchell explains why the VAT doesn’t change the terms of trade in this video.

Finally, economists have debunked the idea implied by the speaker that foreign VATs give an advantage to foreign exports — and therefor boost foreign exports. It is simply not true. It follows that imposing a border-adjustment tax in the U.S. will not boost U.S. exports either. Period.

Let me summarize this for you:

  • No, other countries do not border-adjust their corporate income tax.
  • Comparing other countries’ VATs and our corporate tax is problematic to say the least.
  • No, foreign exports sold in the U.S. do not have an advantage over U.S. goods sold in the U.S. Foreign VATs do not boost foreign exports.
  • A border tax in the U.S. will not boost our exports but it will hurt consumers and many U.S. retailers.
  • The disadvantage faced by U.S. companies exporting goods abroad comes from the terrible worldwide tax and high rates of the U.S. tax regime, not from other countries’ tax system.
  • The way to fix the U.S. disadvantage is not to create a new expansive tax that would penalize imports in the U.S. — including imports for the benefit of U.S. domestic companies — and would penalize U.S. consumers.
  • The solution is to reform our corporate-tax rate by lowering the rate and moving to an origin-based territorial-tax regime. http://www.nationalreview.com/corner/445034/paul-ryan-border-adjustment-tax-mistake

Who’s Afraid of a Big BAT Tax?

The Border Adjustment Tax, a proposal favored by House Speaker Paul Ryan, has aroused serious opposition from Republican senators.

Joshua Roberts / Reuters

Donald Trump is feeling good about taxes. In his gonzo press conference last Thursday, he assured Americans that “very historic tax reform” is absolutely on track and is going to be—wait for it!—“big league.” The week before, he told a bunch of airline CEOs that “big league” reform was “way head of schedule” and that his people would be announcing something “phenomenal” in “two or three weeks.” And at his Orlando pep rally this past weekend, he gushed about his idea for a punitive 35 percent border tax on products manufactured overseas. The magic is happening, people. And soon America’s tax code will be the best, most beautiful in the world.

But here’s the thing. What Trump doesn’t know about the legislative process could overflow the pool at Mar-a Lago. And when it comes to tax reform, even minor changes make Congress lose its mind. Weird fault lines appear, and the next thing you know, warring factions have painted their faces blue and vowed to die on the blood-soaked battlefield before allowing this marginal rate to change or that loophole to close.

Such drama has, in fact, already begun over the proposal percolating in the House. At issue: a provision known as the border adjustment tax—let’s call it BAT—which, shrunk to its essence, incentivizes domestic manufacturing by slapping a 20 percent levy on imports, while making U.S. companies’ export-revenues tax deductible.

BAT fans—most notably House Speaker Paul Ryan and Ways and Means Chairman Kevin Brady—pitch the provision as an economically elegant twofer: an America-First measure that discourages companies from moving operations overseas while creating a revenue stream ($1 trillion every decade or so) that allows the overall corporate tax rate to be slashed.

Opponents—most vocally Senators David Perdue and Tom Cotton—argue that a BAT is another grubby government cash grab that will ultimately hurt consumers when, say, Walmart has to jack up the prices of underwear, bananas, and Playstations. In a February 8 letter to colleagues, Perdue, who spent four decades in the business world, charged that the BAT is “regressive, hammers consumers, and shuts down economic growth.”Thus the battle lines are drawn. And, make no mistake, this will not be some bush-league, penny-ante skirmish. Behind the legislative factions are amassing some of the heaviest hitters in corporate America, ready to spend millions to sway debate on behalf of their team.Roughly speaking, companies that do a lot of exporting dig the BAT (think: Boeing, Merck, and Dow Chemical) while import-dependent retailers (including Target, Nike, and, yes, Walmart) fear it will destroy their bottom lines. The oil industry isn’t feeling much BAT love either. The Koch brothers want it dead, like, yesterday.At this point, anti-BATers have an edge. Why? Partly, because the provision is super complicated and almost impossible to explain in terms that don’t sound like something a coven of economists vomited up. Ask BAT fans why the provision won’t, in fact, hurt retailers or consumers, and you’re instantly hip-deep in talk of currency revaluation, purchasing power, and territorial taxation. Last Wednesday, one day after Paul Ryan tried to educate Senate Republicans on the wonders of BAT at their weekly policy lunch, Tom Cotton (who represents Walmart’s home state of Arkansas) snarked on the Senate floor, “Some ideas are so stupid only an intellectual could believe them.”
This is in no way to suggest that the pro-BAT arguments are wrong. They simply don’t push the same buttons as anti-BAT warnings that Congress is poised to screw consumers in order to fund big tax cuts for corporations.For the past few weeks, in fact, an anti-BAT coalition called Americans for Affordable Products has been busy hawking this exact message. “This is a consumer tax—a means by which House Republicans are paying for other tax deductions,” asserted AAP member Brian Dodge. “It’s not about America First. It’s not a trade-deficit reduction tool. It is a pay-for.”AAP is lobbying lawmakers and staffers and doing public outreach. Last Wednesday, it dispatched eight CEOs to chat with Trump and Vice President Pence. “We view our job as leading a large education campaign,” said Dodge. “We believe the more that lawmakers understand about this proposal, the less inclined they’ll be to support it.”Of course, BAT fans are gearing up as well and promise to be equally aggressive. The day after the AAP roll out, the American Made Coalition launched, with an eye toward helping Ryan’s office spread the good word. “It takes time to educate both policy makers and businesses on what’s on the table,” said Brian Reardon, an adviser to the group.There is no place for subtlety in this war. Part of BAT supporters’ argument is that, without the provision, tax overhaul will implode altogether. Message: Get on board or kiss your once-in-a-lifetime reform opportunity good-bye.It’s a question of Senate math. To pass with a simple majority (and avoid a filibuster by Democrats), the GOP’s plan must go through under the procedure known as reconciliation. But to qualify for reconciliation, the package–which slashes both corporate and upper-bracket taxes–cannot blow a hole in the long-term budget. Without the $1 trillion in revenues from BAT, say advocates, there’s no way that hole can be plugged.“This is the only way at these rates and keeping things revenue neutral,” insisted a senior Republican aide. There is no other viable option. Period. End of story.But anti-BATers are eyeing a different Senate equation. To amass even a simple majority of votes, the BAT can lose only two of the 52 Republican members. (Unless Democrats cross the aisle, of course.) In addition to Cotton’s and Perdue’s open hostility, Senators John Boozman, Mike Rounds, John Cornyn, Tim Scott, and Mike Lee have all expressed reservations. “I have real concerns that this piece of the House blueprint will cause more disruption than necessary,” Lee said. “Will the dollar suddenly shoot up by 20 percent? Will U.S. manufacturers have to redo their international supply chains? These are all open questions.”

With the provision’s Senate prospects iffy, there’s less incentive for House conservatives to support something that smells even faintly like a tax. Both the current chairman of the Freedom Caucus, Mark Meadows, and the former chairman, Jim Jordan, have said they’d like reform done without a BAT.

“My reasoning is very basic,” Jordan told me. “Why in the world would we want to add another revenue stream?” You can debate the impact on exchange rates and purchasing power all day, said Jordan, but that doesn’t address many conservatives’ core objection. “We come at it from fundamental perspective,” he said. “The idea that you’re going to add an entirely new tax is a big problem.”

(BAT fans, for the record, dispute that this is a new tax. It is, they insist, replacing the existing system with an entirely new, far superior one that must be looked at, as Reardon put it, “holistically.”)

The only thing everyone can agree on is that this will be a long, ugly fight. If Trump drops his tariff idea and embraces BAT, it could boost the cause. But even then, he’d need to do major arm-twisting to get Senate skeptics on board (especially with the likes of Walmart and the Kochs twisting the other arm.) Like it or not, this is what the political big leagues are like: slow, messy, and infuriating.

The up side for Trump: He’ll have time to throw a lot more pep rallies on this topic before anything gets decided.

https://www.theatlantic.com/politics/archive/2017/02/border-adjustment-tax-congress/517287/

The Internal Revenue Service has recently released new data on individual income taxes for calendar year 2014, showing the number of taxpayers, adjusted gross income, and income tax shares by income percentiles.[1]

The data demonstrates that the U.S. individual income tax continues to be very progressive, borne mainly by the highest income earners.

  • In 2014, 139.6 million taxpayers reported earning $9.71 trillion in adjusted gross income and paid $1.37 trillion in individual income taxes.
  • The share of income earned by the top 1 percent of taxpayers rose to 20.6 percent in 2014. Their share of federal individual income taxes also rose, to 39.5 percent.
  • In 2014, the top 50 percent of all taxpayers paid 97.3 percent of all individual income taxes while the bottom 50 percent paid the remaining 2.7 percent.
  • The top 1 percent paid a greater share of individual income taxes (39.5 percent) than the bottom 90 percent combined (29.1 percent).
  • The top 1 percent of taxpayers paid a 27.1 percent individual income tax rate, which is more than seven times higher than taxpayers in the bottom 50 percent (3.5 percent).

Reported Income and Taxes Paid Both Increased Significantly in 2014

Taxpayers reported $9.71 trillion in adjusted gross income (AGI) on 139.5 million tax returns in 2014. Total AGI grew by $675 billion from the previous year’s levels. There were 1.2 million more returns filed in 2014 than in 2013, meaning that average AGI rose by $4,252 per return, or 6.5 percent.

Meanwhile, taxpayers paid $1.37 trillion in individual income taxes in 2014, an 11.5 percent increase from taxes paid in the previous year. The average individual income tax rate for all taxpayers rose from 13.64 percent to 14.16 percent. Moreover, the average tax rate increased for all income groups, except for the top 0.1 percent of taxpayers, whose average rate decreased from 27.91 percent to 27.67 percent.

The most likely explanation behind the higher tax rates in 2014 is a phenomenon known as “real bracket creep.” [2] As incomes rise, households are pushed into higher tax brackets, and are subject to higher overall tax rates on their income. On the other hand, the likely reason why the top 0.1 percent of households saw a slightly lower tax rate in 2014 is because a higher portion of their income consisted of long-term capital gains, which are subject to lower tax rates.[3]

The share of income earned by the top 1 percent rose to 20.58 percent of total AGI, up from 19.04 percent in 2013. The share of the income tax burden for the top 1 percent also rose, from 37.80 percent in 2013 to 39.48 percent in 2014.

Top 1% Top 5% Top 10% Top 25% Top 50% Bottom 50% All Taxpayers
Table 1. Summary of Federal Income Tax Data, 2014
Number of Returns 1,395,620 6,978,102 13,956,203 34,890,509 69,781,017 69,781,017 139,562,034
Adjusted Gross Income ($ millions) $1,997,819 $3,490,867 $4,583,416 $6,690,287 $8,614,544 $1,094,119 $9,708,663
Share of Total Adjusted Gross Income 20.58% 35.96% 47.21% 68.91% 88.73% 11.27% 100.00%
Income Taxes Paid ($ millions) $542,640 $824,153 $974,124 $1,192,679 $1,336,637 $37,740 $1,374,379
Share of Total Income Taxes Paid 39.48% 59.97% 70.88% 86.78% 97.25% 2.75% 100.00%
Income Split Point $465,626 $188,996 $133,445 $77,714 $38,173
Average Tax Rate 27.16% 23.61% 21.25% 17.83% 15.52% 3.45% 14.16%
 Note: Does not include dependent filers

High-Income Americans Paid the Majority of Federal Taxes

In 2014, the bottom 50 percent of taxpayers (those with AGIs below $38,173) earned 11.27 percent of total AGI. This group of taxpayers paid approximately $38 billion in taxes, or 2.75 percent of all income taxes in 2014.

In contrast, the top 1 percent of all taxpayers (taxpayers with AGIs of $465,626 and above) earned 20.58 percent of all AGI in 2014, but paid 39.48 percent of all federal income taxes.

In 2014, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined. The top 1 percent of taxpayers paid $543 billion, or 39.48 percent of all income taxes, while the bottom 90 percent paid $400 billion, or 29.12 percent of all income taxes.

Figure 1.

High-Income Taxpayers Pay the Highest Average Tax Rates

The 2014 IRS data shows that taxpayers with higher incomes pay much higher average individual income tax rates than lower-income taxpayers.[4]

The bottom 50 percent of taxpayers (taxpayers with AGIs below $38,173) faced an average income tax rate of 3.45 percent. As household income increases, the IRS data shows that average income tax rates rise. For example, taxpayers with AGIs between the 10th and 5th percentile ($133,445 and $188,996) pay an average rate of 13.7 percent – almost four times the rate paid by those in the bottom 50 percent.

The top 1 percent of taxpayers (AGI of $465,626 and above) paid the highest effective income tax rate, at 27.2 percent, 7.9 times the rate faced by the bottom 50 percent of taxpayers.

Figure 2.

Taxpayers at the very top of the income distribution, the top 0.1 percent (with AGIs over $2.14 million), paid an even higher average tax rate, of 27.7 percent.

Appendix

Year Total Top 0.1% Top 1% Top
5%
Between
5% & 10%
Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 2. Number of Federal Individual Income Tax Returns Filed 1980–2014 (Thousands)
Source: Internal Revenue Service.
1980 93,239 932 4,662 4,662 9,324 13,986 23,310 23,310 46,619 46,619
1981 94,587 946 4,729 4,729 9,459 14,188 23,647 23,647 47,293 47,293
1982 94,426 944 4,721 4,721 9,443 14,164 23,607 23,607 47,213 47,213
1983 95,331 953 4,767 4,767 9,533 14,300 23,833 23,833 47,665 47,665
1984 98,436 984 4,922 4,922 9,844 14,765 24,609 24,609 49,218 49,219
1985 100,625 1,006 5,031 5,031 10,063 15,094 25,156 25,156 50,313 50,313
1986 102,088 1,021 5,104 5,104 10,209 15,313 25,522 25,522 51,044 51,044
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 106,155 1,062 5,308 5,308 10,615 15,923 26,539 26,539 53,077 53,077
1988 108,873 1,089 5,444 5,444 10,887 16,331 27,218 27,218 54,436 54,436
1989 111,313 1,113 5,566 5,566 11,131 16,697 27,828 27,828 55,656 55,656
1990 112,812 1,128 5,641 5,641 11,281 16,922 28,203 28,203 56,406 56,406
1991 113,804 1,138 5,690 5,690 11,380 17,071 28,451 28,451 56,902 56,902
1992 112,653 1,127 5,633 5,633 11,265 16,898 28,163 28,163 56,326 56,326
1993 113,681 1,137 5,684 5,684 11,368 17,052 28,420 28,420 56,841 56,841
1994 114,990 1,150 5,749 5,749 11,499 17,248 28,747 28,747 57,495 57,495
1995 117,274 1,173 5,864 5,864 11,727 17,591 29,319 29,319 58,637 58,637
1996 119,442 1,194 5,972 5,972 11,944 17,916 29,860 29,860 59,721 59,721
1997 121,503 1,215 6,075 6,075 12,150 18,225 30,376 30,376 60,752 60,752
1998 123,776 1,238 6,189 6,189 12,378 18,566 30,944 30,944 61,888 61,888
1999 126,009 1,260 6,300 6,300 12,601 18,901 31,502 31,502 63,004 63,004
2000 128,227 1,282 6,411 6,411 12,823 19,234 32,057 32,057 64,114 64,114
The IRS changed methodology, so data above and below this line not strictly comparable
2001 119,371 119 1,194 5,969 5,969 11,937 17,906 29,843 29,843 59,685 59,685
2002 119,851 120 1,199 5,993 5,993 11,985 17,978 29,963 29,963 59,925 59,925
2003 120,759 121 1,208 6,038 6,038 12,076 18,114 30,190 30,190 60,379 60,379
2004 122,510 123 1,225 6,125 6,125 12,251 18,376 30,627 30,627 61,255 61,255
2005 124,673 125 1,247 6,234 6,234 12,467 18,701 31,168 31,168 62,337 62,337
2006 128,441 128 1,284 6,422 6,422 12,844 19,266 32,110 32,110 64,221 64,221
2007 132,655 133 1,327 6,633 6,633 13,265 19,898 33,164 33,164 66,327 66,327
2008 132,892 133 1,329 6,645 6,645 13,289 19,934 33,223 33,223 66,446 66,446
2009 132,620 133 1,326 6,631 6,631 13,262 19,893 33,155 33,155 66,310 66,310
2010 135,033 135 1,350 6,752 6,752 13,503 20,255 33,758 33,758 67,517 67,517
2011 136,586 137 1,366 6,829 6,829 13,659 20,488 34,146 34,146 68,293 68,293
2012 136,080 136 1,361 6,804 6,804 13,608 20,412 34,020 34,020 68,040 68,040
2013 138,313 138 1,383 6,916 6,916 13,831 20,747 34,578 34,578 69,157 69,157
2014 139,562 140 1,396 6,978 6,978 13,956 20,934 34,891 34,891 69,781 69,781
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 3. Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980–2014 ($Billions)
Source: Internal Revenue Service.
1980 $1,627 $138 $342 $181 $523 $400 $922 $417 $1,339 $288
1981 $1,791 $149 $372 $201 $573 $442 $1,015 $458 $1,473 $318
1982 $1,876 $167 $398 $207 $605 $460 $1,065 $478 $1,544 $332
1983 $1,970 $183 $428 $217 $646 $481 $1,127 $498 $1,625 $344
1984 $2,173 $210 $482 $240 $723 $528 $1,251 $543 $1,794 $379
1985 $2,344 $235 $531 $260 $791 $567 $1,359 $580 $1,939 $405
1986 $2,524 $285 $608 $278 $887 $604 $1,490 $613 $2,104 $421
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $2,814 $347 $722 $316 $1,038 $671 $1,709 $664 $2,374 $440
1988 $3,124 $474 $891 $342 $1,233 $718 $1,951 $707 $2,658 $466
1989 $3,299 $468 $918 $368 $1,287 $768 $2,054 $751 $2,805 $494
1990 $3,451 $483 $953 $385 $1,338 $806 $2,144 $788 $2,933 $519
1991 $3,516 $457 $943 $400 $1,343 $832 $2,175 $809 $2,984 $532
1992 $3,681 $524 $1,031 $413 $1,444 $856 $2,299 $832 $3,131 $549
1993 $3,776 $521 $1,048 $426 $1,474 $883 $2,358 $854 $3,212 $563
1994 $3,961 $547 $1,103 $449 $1,552 $929 $2,481 $890 $3,371 $590
1995 $4,245 $620 $1,223 $482 $1,705 $985 $2,690 $938 $3,628 $617
1996 $4,591 $737 $1,394 $515 $1,909 $1,043 $2,953 $992 $3,944 $646
1997 $5,023 $873 $1,597 $554 $2,151 $1,116 $3,268 $1,060 $4,328 $695
1998 $5,469 $1,010 $1,797 $597 $2,394 $1,196 $3,590 $1,132 $4,721 $748
1999 $5,909 $1,153 $2,012 $641 $2,653 $1,274 $3,927 $1,199 $5,126 $783
2000 $6,424 $1,337 $2,267 $688 $2,955 $1,358 $4,314 $1,276 $5,590 $834
The IRS changed methodology, so data above and below this line not strictly comparable
2001 $6,116 $492 $1,065 $1,934 $666 $2,600 $1,334 $3,933 $1,302 $5,235 $881
2002 $5,982 $421 $960 $1,812 $660 $2,472 $1,339 $3,812 $1,303 $5,115 $867
2003 $6,157 $466 $1,030 $1,908 $679 $2,587 $1,375 $3,962 $1,325 $5,287 $870
2004 $6,735 $615 $1,279 $2,243 $725 $2,968 $1,455 $4,423 $1,403 $5,826 $908
2005 $7,366 $784 $1,561 $2,623 $778 $3,401 $1,540 $4,940 $1,473 $6,413 $953
2006 $7,970 $895 $1,761 $2,918 $841 $3,760 $1,652 $5,412 $1,568 $6,980 $990
2007 $8,622 $1,030 $1,971 $3,223 $905 $4,128 $1,770 $5,898 $1,673 $7,571 $1,051
2008 $8,206 $826 $1,657 $2,868 $905 $3,773 $1,782 $5,555 $1,673 $7,228 $978
2009 $7,579 $602 $1,305 $2,439 $878 $3,317 $1,740 $5,058 $1,620 $6,678 $900
2010 $8,040 $743 $1,517 $2,716 $915 $3,631 $1,800 $5,431 $1,665 $7,096 $944
2011 $8,317 $737 $1,556 $2,819 $956 $3,775 $1,866 $5,641 $1,716 $7,357 $961
2012 $9,042 $1,017 $1,977 $3,331 $997 $4,328 $1,934 $6,262 $1,776 $8,038 $1,004
2013 $9,034 $816 $1,720 $3,109 $1,034 $4,143 $2,008 $6,152 $1,844 $7,996 $1,038
2014 $9,709 $986 $1,998 $3,491 $1,093 $4,583 $2,107 $6,690 $1,924 $8,615 $1,094
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 4. Total Income Tax after Credits, 1980–2014 ($Billions)
Source: Internal Revenue Service.
1980 $249 $47 $92 $31 $123 $59 $182 $50 $232 $18
1981 $282 $50 $99 $36 $135 $69 $204 $57 $261 $21
1982 $276 $53 $100 $34 $134 $66 $200 $56 $256 $20
1983 $272 $55 $101 $34 $135 $64 $199 $54 $252 $19
1984 $297 $63 $113 $37 $150 $68 $219 $57 $276 $22
1985 $322 $70 $125 $41 $166 $73 $238 $60 $299 $23
1986 $367 $94 $156 $44 $201 $78 $279 $64 $343 $24
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $369 $92 $160 $46 $205 $79 $284 $63 $347 $22
1988 $413 $114 $188 $48 $236 $85 $321 $68 $389 $24
1989 $433 $109 $190 $51 $241 $93 $334 $73 $408 $25
1990 $447 $112 $195 $52 $248 $97 $344 $77 $421 $26
1991 $448 $111 $194 $56 $250 $96 $347 $77 $424 $25
1992 $476 $131 $218 $58 $276 $97 $374 $78 $452 $24
1993 $503 $146 $238 $60 $298 $101 $399 $80 $479 $24
1994 $535 $154 $254 $64 $318 $108 $425 $84 $509 $25
1995 $588 $178 $288 $70 $357 $115 $473 $88 $561 $27
1996 $658 $213 $335 $76 $411 $124 $535 $95 $630 $28
1997 $727 $241 $377 $82 $460 $134 $594 $102 $696 $31
1998 $788 $274 $425 $88 $513 $139 $652 $103 $755 $33
1999 $877 $317 $486 $97 $583 $150 $733 $109 $842 $35
2000 $981 $367 $554 $106 $660 $164 $824 $118 $942 $38
The IRS changed methodology, so data above and below this line not strictly comparable
2001 $885 $139 $294 $462 $101 $564 $158 $722 $120 $842 $43
2002 $794 $120 $263 $420 $93 $513 $143 $657 $104 $761 $33
2003 $746 $115 $251 $399 $85 $484 $133 $617 $98 $715 $30
2004 $829 $142 $301 $467 $91 $558 $137 $695 $102 $797 $32
2005 $932 $176 $361 $549 $98 $647 $145 $793 $106 $898 $33
2006 $1,020 $196 $402 $607 $108 $715 $157 $872 $113 $986 $35
2007 $1,112 $221 $443 $666 $117 $783 $170 $953 $122 $1,075 $37
2008 $1,029 $187 $386 $597 $115 $712 $168 $880 $117 $997 $32
2009 $863 $146 $314 $502 $101 $604 $146 $749 $93 $842 $21
2010 $949 $170 $355 $561 $110 $670 $156 $827 $100 $927 $22
2011 $1,043 $168 $366 $589 $123 $712 $181 $893 $120 $1,012 $30
2012 $1,185 $220 $451 $699 $133 $831 $193 $1,024 $128 $1,152 $33
2013 $1,232 $228 $466 $721 $139 $860 $203 $1,063 $135 $1,198 $34
2014 $1,374 $273 $543 $824 $150 $974 $219 $1,193 $144 $1,337 $38
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 5. Adjusted Gross Income Shares, 1980–2014 (percent of total AGI earned by each group)
Source: Internal Revenue Service.
1980 100% 8.46% 21.01% 11.12% 32.13% 24.57% 56.70% 25.62% 82.32% 17.68%
1981 100% 8.30% 20.78% 11.20% 31.98% 24.69% 56.67% 25.59% 82.25% 17.75%
1982 100% 8.91% 21.23% 11.03% 32.26% 24.53% 56.79% 25.50% 82.29% 17.71%
1983 100% 9.29% 21.74% 11.04% 32.78% 24.44% 57.22% 25.30% 82.52% 17.48%
1984 100% 9.66% 22.19% 11.06% 33.25% 24.31% 57.56% 25.00% 82.56% 17.44%
1985 100% 10.03% 22.67% 11.10% 33.77% 24.21% 57.97% 24.77% 82.74% 17.26%
1986 100% 11.30% 24.11% 11.02% 35.12% 23.92% 59.04% 24.30% 83.34% 16.66%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 100% 12.32% 25.67% 11.23% 36.90% 23.85% 60.75% 23.62% 84.37% 15.63%
1988 100% 15.16% 28.51% 10.94% 39.45% 22.99% 62.44% 22.63% 85.07% 14.93%
1989 100% 14.19% 27.84% 11.16% 39.00% 23.28% 62.28% 22.76% 85.04% 14.96%
1990 100% 14.00% 27.62% 11.15% 38.77% 23.36% 62.13% 22.84% 84.97% 15.03%
1991 100% 12.99% 26.83% 11.37% 38.20% 23.65% 61.85% 23.01% 84.87% 15.13%
1992 100% 14.23% 28.01% 11.21% 39.23% 23.25% 62.47% 22.61% 85.08% 14.92%
1993 100% 13.79% 27.76% 11.29% 39.05% 23.40% 62.45% 22.63% 85.08% 14.92%
1994 100% 13.80% 27.85% 11.34% 39.19% 23.45% 62.64% 22.48% 85.11% 14.89%
1995 100% 14.60% 28.81% 11.35% 40.16% 23.21% 63.37% 22.09% 85.46% 14.54%
1996 100% 16.04% 30.36% 11.23% 41.59% 22.73% 64.32% 21.60% 85.92% 14.08%
1997 100% 17.38% 31.79% 11.03% 42.83% 22.22% 65.05% 21.11% 86.16% 13.84%
1998 100% 18.47% 32.85% 10.92% 43.77% 21.87% 65.63% 20.69% 86.33% 13.67%
1999 100% 19.51% 34.04% 10.85% 44.89% 21.57% 66.46% 20.29% 86.75% 13.25%
2000 100% 20.81% 35.30% 10.71% 46.01% 21.15% 67.15% 19.86% 87.01% 12.99%
The IRS changed methodology, so data above and below this line not strictly comparable
2001 100% 8.05% 17.41% 31.61% 10.89% 42.50% 21.80% 64.31% 21.29% 85.60% 14.40%
2002 100% 7.04% 16.05% 30.29% 11.04% 41.33% 22.39% 63.71% 21.79% 85.50% 14.50%
2003 100% 7.56% 16.73% 30.99% 11.03% 42.01% 22.33% 64.34% 21.52% 85.87% 14.13%
2004 100% 9.14% 18.99% 33.31% 10.77% 44.07% 21.60% 65.68% 20.83% 86.51% 13.49%
2005 100% 10.64% 21.19% 35.61% 10.56% 46.17% 20.90% 67.07% 19.99% 87.06% 12.94%
2006 100% 11.23% 22.10% 36.62% 10.56% 47.17% 20.73% 67.91% 19.68% 87.58% 12.42%
2007 100% 11.95% 22.86% 37.39% 10.49% 47.88% 20.53% 68.41% 19.40% 87.81% 12.19%
2008 100% 10.06% 20.19% 34.95% 11.03% 45.98% 21.71% 67.69% 20.39% 88.08% 11.92%
2009 100% 7.94% 17.21% 32.18% 11.59% 43.77% 22.96% 66.74% 21.38% 88.12% 11.88%
2010 100% 9.24% 18.87% 33.78% 11.38% 45.17% 22.38% 67.55% 20.71% 88.26% 11.74%
2011 100% 8.86% 18.70% 33.89% 11.50% 45.39% 22.43% 67.82% 20.63% 88.45% 11.55%
2012 100% 11.25% 21.86% 36.84% 11.03% 47.87% 21.39% 69.25% 19.64% 88.90% 11.10%
2013 100% 9.03% 19.04% 34.42% 11.45% 45.87% 22.23% 68.10% 20.41% 88.51% 11.49%
2014 100% 10.16% 20.58% 35.96% 11.25% 47.21% 21.70% 68.91% 19.82% 88.73% 11.27%
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 6. Total Income Tax Shares, 1980–2014 (percent of federal income tax paid by each group)
Source: Internal Revenue Service.
1980 100% 19.05% 36.84% 12.44% 49.28% 23.74% 73.02% 19.93% 92.95% 7.05%
1981 100% 17.58% 35.06% 12.90% 47.96% 24.33% 72.29% 20.26% 92.55% 7.45%
1982 100% 19.03% 36.13% 12.45% 48.59% 23.91% 72.50% 20.15% 92.65% 7.35%
1983 100% 20.32% 37.26% 12.44% 49.71% 23.39% 73.10% 19.73% 92.83% 7.17%
1984 100% 21.12% 37.98% 12.58% 50.56% 22.92% 73.49% 19.16% 92.65% 7.35%
1985 100% 21.81% 38.78% 12.67% 51.46% 22.60% 74.06% 18.77% 92.83% 7.17%
1986 100% 25.75% 42.57% 12.12% 54.69% 21.33% 76.02% 17.52% 93.54% 6.46%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 100% 24.81% 43.26% 12.35% 55.61% 21.31% 76.92% 17.02% 93.93% 6.07%
1988 100% 27.58% 45.62% 11.66% 57.28% 20.57% 77.84% 16.44% 94.28% 5.72%
1989 100% 25.24% 43.94% 11.85% 55.78% 21.44% 77.22% 16.94% 94.17% 5.83%
1990 100% 25.13% 43.64% 11.73% 55.36% 21.66% 77.02% 17.16% 94.19% 5.81%
1991 100% 24.82% 43.38% 12.45% 55.82% 21.46% 77.29% 17.23% 94.52% 5.48%
1992 100% 27.54% 45.88% 12.12% 58.01% 20.47% 78.48% 16.46% 94.94% 5.06%
1993 100% 29.01% 47.36% 11.88% 59.24% 20.03% 79.27% 15.92% 95.19% 4.81%
1994 100% 28.86% 47.52% 11.93% 59.45% 20.10% 79.55% 15.68% 95.23% 4.77%
1995 100% 30.26% 48.91% 11.84% 60.75% 19.62% 80.36% 15.03% 95.39% 4.61%
1996 100% 32.31% 50.97% 11.54% 62.51% 18.80% 81.32% 14.36% 95.68% 4.32%
1997 100% 33.17% 51.87% 11.33% 63.20% 18.47% 81.67% 14.05% 95.72% 4.28%
1998 100% 34.75% 53.84% 11.20% 65.04% 17.65% 82.69% 13.10% 95.79% 4.21%
1999 100% 36.18% 55.45% 11.00% 66.45% 17.09% 83.54% 12.46% 96.00% 4.00%
2000 100% 37.42% 56.47% 10.86% 67.33% 16.68% 84.01% 12.08% 96.09% 3.91%
The IRS changed methodology, so data above and below this line not strictly comparable
2001 100% 15.68% 33.22% 52.24% 11.44% 63.68% 17.88% 81.56% 13.54% 95.10% 4.90%
2002 100% 15.09% 33.09% 52.86% 11.77% 64.63% 18.04% 82.67% 13.12% 95.79% 4.21%
2003 100% 15.37% 33.69% 53.54% 11.35% 64.89% 17.87% 82.76% 13.17% 95.93% 4.07%
2004 100% 17.12% 36.28% 56.35% 10.96% 67.30% 16.52% 83.82% 12.31% 96.13% 3.87%
2005 100% 18.91% 38.78% 58.93% 10.52% 69.46% 15.61% 85.07% 11.35% 96.41% 3.59%
2006 100% 19.24% 39.36% 59.49% 10.59% 70.08% 15.41% 85.49% 11.10% 96.59% 3.41%
2007 100% 19.84% 39.81% 59.90% 10.51% 70.41% 15.30% 85.71% 10.93% 96.64% 3.36%
2008 100% 18.20% 37.51% 58.06% 11.14% 69.20% 16.37% 85.57% 11.33% 96.90% 3.10%
2009 100% 16.91% 36.34% 58.17% 11.72% 69.89% 16.85% 86.74% 10.80% 97.54% 2.46%
2010 100% 17.88% 37.38% 59.07% 11.55% 70.62% 16.49% 87.11% 10.53% 97.64% 2.36%
2011 100% 16.14% 35.06% 56.49% 11.77% 68.26% 17.36% 85.62% 11.50% 97.11% 2.89%
2012 100% 18.60% 38.09% 58.95% 11.22% 70.17% 16.25% 86.42% 10.80% 97.22% 2.78%
2013 100% 18.48% 37.80% 58.55% 11.25% 69.80% 16.47% 86.27% 10.94% 97.22% 2.78%
2014 100% 19.85% 39.48% 59.97% 10.91% 70.88% 15.90% 86.78% 10.47% 97.25% 2.75%
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
Table 7. Dollar Cut-Off, 1980–2014 (Minimum AGI for Tax Returns to Fall into Various Percentiles; Thresholds Not Adjusted for Inflation)
1980 $80,580 $43,792 $35,070 $23,606 $12,936
1981 $85,428 $47,845 $38,283 $25,655 $14,000
1982 $89,388 $49,284 $39,676 $27,027 $14,539
1983 $93,512 $51,553 $41,222 $27,827 $15,044
1984 $100,889 $55,423 $43,956 $29,360 $15,998
1985 $108,134 $58,883 $46,322 $30,928 $16,688
1986 $118,818 $62,377 $48,656 $32,242 $17,302
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $139,289 $68,414 $52,921 $33,983 $17,768
1988 $157,136 $72,735 $55,437 $35,398 $18,367
1989 $163,869 $76,933 $58,263 $36,839 $18,993
1990 $167,421 $79,064 $60,287 $38,080 $19,767
1991 $170,139 $81,720 $61,944 $38,929 $20,097
1992 $181,904 $85,103 $64,457 $40,378 $20,803
1993 $185,715 $87,386 $66,077 $41,210 $21,179
1994 $195,726 $91,226 $68,753 $42,742 $21,802
1995 $209,406 $96,221 $72,094 $44,207 $22,344
1996 $227,546 $101,141 $74,986 $45,757 $23,174
1997 $250,736 $108,048 $79,212 $48,173 $24,393
1998 $269,496 $114,729 $83,220 $50,607 $25,491
1999 $293,415 $120,846 $87,682 $52,965 $26,415
2000 $313,469 $128,336 $92,144 $55,225 $27,682
The IRS changed methodology, so data above and below this line not strictly comparable
2001 $1,393,718 $306,635 $132,082 $96,151 $59,026 $31,418
2002 $1,245,352 $296,194 $130,750 $95,699 $59,066 $31,299
2003 $1,317,088 $305,939 $133,741 $97,470 $59,896 $31,447
2004 $1,617,918 $339,993 $140,758 $101,838 $62,794 $32,622
2005 $1,938,175 $379,261 $149,216 $106,864 $64,821 $33,484
2006 $2,124,625 $402,603 $157,390 $112,016 $67,291 $34,417
2007 $2,251,017 $426,439 $164,883 $116,396 $69,559 $35,541
2008 $1,867,652 $392,513 $163,512 $116,813 $69,813 $35,340
2009 $1,469,393 $351,968 $157,342 $114,181 $68,216 $34,156
2010 $1,634,386 $369,691 $161,579 $116,623 $69,126 $34,338
2011 $1,717,675 $388,905 $167,728 $120,136 $70,492 $34,823
2012 $2,161,175 $434,682 $175,817 $125,195 $73,354 $36,055
2013 $1,860,848 $428,713 $179,760 $127,695 $74,955 $36,841
2014 $2,136,762 $465,626 $188,996 $133,445 $77,714 $38,173
Source: Internal Revenue Service.
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 8. Average Tax Rate, 1980–2014 (Percent of AGI Paid in Income Taxes)
Source: Internal Revenue Service.
1980 15.31% 34.47% 26.85% 17.13% 23.49% 14.80% 19.72% 11.91% 17.29% 6.10%
1981 15.76% 33.37% 26.59% 18.16% 23.64% 15.53% 20.11% 12.48% 17.73% 6.62%
1982 14.72% 31.43% 25.05% 16.61% 22.17% 14.35% 18.79% 11.63% 16.57% 6.10%
1983 13.79% 30.18% 23.64% 15.54% 20.91% 13.20% 17.62% 10.76% 15.52% 5.66%
1984 13.68% 29.92% 23.42% 15.57% 20.81% 12.90% 17.47% 10.48% 15.35% 5.77%
1985 13.73% 29.86% 23.50% 15.69% 20.93% 12.83% 17.55% 10.41% 15.41% 5.70%
1986 14.54% 33.13% 25.68% 15.99% 22.64% 12.97% 18.72% 10.48% 16.32% 5.63%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 13.12% 26.41% 22.10% 14.43% 19.77% 11.71% 16.61% 9.45% 14.60% 5.09%
1988 13.21% 24.04% 21.14% 14.07% 19.18% 11.82% 16.47% 9.60% 14.64% 5.06%
1989 13.12% 23.34% 20.71% 13.93% 18.77% 12.08% 16.27% 9.77% 14.53% 5.11%
1990 12.95% 23.25% 20.46% 13.63% 18.50% 12.01% 16.06% 9.73% 14.36% 5.01%
1991 12.75% 24.37% 20.62% 13.96% 18.63% 11.57% 15.93% 9.55% 14.20% 4.62%
1992 12.94% 25.05% 21.19% 13.99% 19.13% 11.39% 16.25% 9.42% 14.44% 4.39%
1993 13.32% 28.01% 22.71% 14.01% 20.20% 11.40% 16.90% 9.37% 14.90% 4.29%
1994 13.50% 28.23% 23.04% 14.20% 20.48% 11.57% 17.15% 9.42% 15.11% 4.32%
1995 13.86% 28.73% 23.53% 14.46% 20.97% 11.71% 17.58% 9.43% 15.47% 4.39%
1996 14.34% 28.87% 24.07% 14.74% 21.55% 11.86% 18.12% 9.53% 15.96% 4.40%
1997 14.48% 27.64% 23.62% 14.87% 21.36% 12.04% 18.18% 9.63% 16.09% 4.48%
1998 14.42% 27.12% 23.63% 14.79% 21.42% 11.63% 18.16% 9.12% 16.00% 4.44%
1999 14.85% 27.53% 24.18% 15.06% 21.98% 11.76% 18.66% 9.12% 16.43% 4.48%
2000 15.26% 27.45% 24.42% 15.48% 22.34% 12.04% 19.09% 9.28% 16.86% 4.60%
The IRS changed methodology, so data above and below this line not strictly comparable
2001 14.47% 28.17% 27.60% 23.91% 15.20% 21.68% 11.87% 18.35% 9.20% 16.08% 4.92%
2002 13.28% 28.48% 27.37% 23.17% 14.15% 20.76% 10.70% 17.23% 8.00% 14.87% 3.86%
2003 12.11% 24.60% 24.38% 20.92% 12.46% 18.70% 9.69% 15.57% 7.41% 13.53% 3.49%
2004 12.31% 23.06% 23.52% 20.83% 12.53% 18.80% 9.41% 15.71% 7.27% 13.68% 3.53%
2005 12.65% 22.48% 23.15% 20.93% 12.61% 19.03% 9.45% 16.04% 7.18% 14.01% 3.51%
2006 12.80% 21.94% 22.80% 20.80% 12.84% 19.02% 9.52% 16.12% 7.22% 14.12% 3.51%
2007 12.90% 21.42% 22.46% 20.66% 12.92% 18.96% 9.61% 16.16% 7.27% 14.19% 3.56%
2008 12.54% 22.67% 23.29% 20.83% 12.66% 18.87% 9.45% 15.85% 6.97% 13.79% 3.26%
2009 11.39% 24.28% 24.05% 20.59% 11.53% 18.19% 8.36% 14.81% 5.76% 12.61% 2.35%
2010 11.81% 22.84% 23.39% 20.64% 11.98% 18.46% 8.70% 15.22% 6.01% 13.06% 2.37%
2011 12.54% 22.82% 23.50% 20.89% 12.83% 18.85% 9.70% 15.82% 6.98% 13.76% 3.13%
2012 13.11% 21.67% 22.83% 20.97% 13.33% 19.21% 9.96% 16.35% 7.21% 14.33% 3.28%
2013 13.64% 27.91% 27.08% 23.20% 13.40% 20.75% 10.11% 17.28% 7.31% 14.98% 3.30%
2014 14.16% 27.67% 27.16% 23.61% 13.73% 21.25% 10.37% 17.83% 7.48% 15.52% 3.45%
  1. For data prior to 2001, all tax returns that have a positive AGI are included, even those that do not have a positive income tax liability. For data from 2001 forward, returns with negative AGI are also included, but dependent returns are excluded.
  2. Income tax after credits (the measure of “income taxes paid” above) does not account for the refundable portion of EITC. If it were included, the tax share of the top income groups would be higher. The refundable portion is classified as a spending program by the Office of Management and Budget and therefore is not included by the IRS in these figures.
  3. The only tax analyzed here is the federal individual income tax, which is responsible for more than 25 percent of the nation’s taxes paid (at all levels of government). Federal income taxes are much more progressive than federal payroll taxes, which are responsible for about 20 percent of all taxes paid (at all levels of government), and are more progressive than most state and local taxes.
  4. AGI is a fairly narrow income concept and does not include income items like government transfers (except for the portion of Social Security benefits that is taxed), the value of employer-provided health insurance, underreported or unreported income (most notably that of sole proprietors), income derived from municipal bond interest, net imputed rental income, and others.
  5. The unit of analysis here is that of the tax return. In the figures prior to 2001, some dependent returns are included. Under other units of analysis (like the Treasury Department’s Family Economic Unit), these returns would likely be paired with parents’ returns.
  6. These figures represent the legal incidence of the income tax. Most distributional tables (such as those from CBO, Tax Policy Center, Citizens for Tax Justice, the Treasury Department, and JCT) assume that the entire economic incidence of personal income taxes falls on the income earner.

[1] Individual Income Tax Rates and Tax Shares, Internal Revenue Service Statistics of Income, http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Income-Tax-Rates-and-Tax-Shares.

[2] See Congressional Budget Office, The Budget and Economic Outlook: 2017 to 2027, Jan. 2017, https://www.cbo.gov/sites/default/files/115th-congress-2017-2018/reports/52370-outlook.pdf.

[3] There is strong reason to believe that capital gains realizations were unusually depressed in 2013, due to the increase in the top capital gains tax rate from 15 percent to 23.8 percent. In 2013, capital gains accounted for 26.6 percent of the income of taxpayers with over $1 million in AGI received, compared to 31.7 percent in 2014 (these calculations apply for net capital gains reported on Schedule D). Table 1.4, Publication 1304, “Individual Income Tax Returns 2014,” Internal Revenue Service, https://www.irs.gov/uac/soi-tax-stats-individual-income-tax-returns-publication-1304-complete-report.

[4] Here, “average income tax rate” is defined as income taxes paid divided by adjusted gross income.

https://taxfoundation.org/summary-latest-federal-income-tax-data-2016-update/

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National Income and Product Accounts
Gross Domestic Product: Fourth Quarter and Annual 2016 (Third Estimate)
Corporate Profits: Fourth Quarter and Annual 2016
Real gross domestic product (GDP) increased at an annual rate of 2.1 percent in the fourth quarter of
2016 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the
third quarter of 2016, real GDP increased 3.5 percent.

The GDP estimate released today is based on more complete source data than were available for the
"second" estimate issued last month.  In the second estimate, the increase in real GDP was 1.9 percent.
With this third estimate for the fourth quarter, the general picture of economic growth remains largely
the same; personal consumption expenditures (PCE) increased more than previously estimated (see
"Updates to GDP" on page 2).

Real GDP: Percent Change from Preceding Quarter
Real gross domestic income (GDI) increased 1.0 percent in the fourth quarter, compared with an
increase of 5.0 percent in the third. The average of real GDP and real GDI, a supplemental measure of
U.S. economic activity that equally weights GDP and GDI, increased 1.5 percent in the fourth quarter,
compared with an increase of 4.3 percent in the third quarter (table 1).

The increase in real GDP in the fourth quarter reflected positive contributions from PCE, private
inventory investment, residential fixed investment, nonresidential fixed investment, and state and local
government spending that were partly offset by negative contributions from exports and federal
government spending. Imports, which are a subtraction in the calculation of GDP, increased (table 2).

The deceleration in real GDP in the fourth quarter reflected downturns in exports and in federal
government spending, an acceleration in imports, and a deceleration in nonresidential fixed investment
that were partly offset by accelerations in private inventory investment and in PCE, and upturns in
residential fixed investment and in state and local government spending.

Current-dollar GDP increased 4.2 percent, or $194.1 billion, in the fourth quarter to a level of $18,869.4
billion. In the third quarter, current-dollar GDP increased 5.0 percent, or $225.2 billion (table 1 and
table 3).

The price index for gross domestic purchases increased 2.0 percent in the fourth quarter, compared
with an increase of 1.5 percent in the third quarter (table 4). The PCE price index increased 2.0 percent,
compared with an increase of 1.5 percent. Excluding food and energy prices, the PCE price index
increased 1.3 percent, compared with an increase of 1.7 percent (appendix table A).


Updates to GDP

The upward revision to the percent change in real GDP primarily reflected upward revisions to PCE and
to private inventory investment that were partly offset by downward revisions to nonresidential fixed
investment and to exports. Imports, which are a subtraction in the calculation of GDP, were revised
upward. For more information, see the Technical Note. For information on updates to GDP, see the
"Additional Information" section that follows.

                                       Advance Estimate          Second Estimate            Third Estimate

                                                     (Percent change from preceding quarter)
Real GDP                                     1.9                       1.9                       2.1
Current-dollar GDP                           4.0                       3.9                       4.2
Real GDI                                     ---                       ---                       1.0
Average of Real GDP and Real GDI             ---                       ---                       1.5
Gross domestic purchases price index         2.0                       1.9                       2.0
PCE price index                              2.2                       1.9                       2.0


2016 GDP

Real GDP increased 1.6 percent in 2016 (that is, from the 2015 annual level to the 2016 annual level),
compared with an increase of 2.6 percent in 2015 (table 1).

The increase in real GDP in 2016 reflected positive contributions from PCE, residential fixed investment,
state and local government spending, exports, and federal government spending that were partly offset
by negative contributions from private inventory investment and nonresidential fixed investment.
Imports, which are a subtraction in the calculation of GDP, increased (table 2).

The deceleration in real GDP from 2015 to 2016 reflected downturns in private inventory investment
and in nonresidential fixed investment and decelerations in PCE, in residential fixed investment, and in
state and local government spending that were partly offset by a deceleration in imports and
accelerations in federal government spending and in exports.

Current-dollar GDP increased 3.0 percent, or $532.5 billion, in 2016 to a level of $18,569.1 billion,
compared with an increase of 3.7 percent, or $643.5 billion, in 2015 (table 1 and table 3).

Real GDI increased 1.6 percent in 2016, compared with an increase of 2.5 percent in 2015 (table 1).

The price index for gross domestic purchases increased 1.0 percent in 2016, compared with an increase
of 0.4 percent in 2015 (table 4).

During 2016 (that is, measured from the fourth quarter of 2015 to the fourth quarter of 2016), real GDP
increased 2.0 percent, compared with an increase of 1.9 percent during 2015.  The price index for gross
domestic purchases increased 1.5 percent during 2016, compared with an increase of 0.4 percent during
2015.  Real GDI increased 1.9 percent during 2016, compared with an increase of 1.5 percent during
2015 (table 7).


Corporate Profits (table 12)

Profits from current production (corporate profits with inventory valuation adjustment and capital
consumption adjustment) increased $11.2 billion in the fourth quarter of 2016, compared with an
increase of $117.8 billion in the third quarter.

Profits of domestic financial corporations increased $26.5 billion in the fourth quarter, compared with
an increase of $50.1 billion in the third. Profits of domestic nonfinancial corporations decreased $60.4
billion, in contrast to an increase of $66.4 billion. The estimate of nonfinancial corporate profits in the
fourth quarter was reduced by a $4.95 billion ($19.8 billion at an annual rate) settlement between a U.S.
subsidiary of Volkswagen and the federal and state governments. For more information, see the FAQ,
"What are the effects of the Volkswagen buyback deal on GDP and the national accounts?”. The
rest-of-the-world component of profits increased $45.1 billion, compared with an increase of $1.3 billion.
This measure is calculated as the difference between receipts from the rest of the world and payments to
the rest of the world. In the fourth quarter, receipts increased $9.1 billion, and payments decreased
$36.0 billion.

In 2016, profits from current production decreased $2.3 billion, compared with a decrease of $64.0
billion in 2015. Profits of domestic financial corporations increased $20.5 billion, compared with an
increase of $8.5 billion. Profits of domestic nonfinancial corporations decreased $47.0 billion, compared
with a decrease of $47.3 billion. The rest-of-the-world component of profits increased $24.3 billion, in
contrast to a decrease of $25.2 billion.


                                      *          *          *
                           Next release:  April 28, 2017 at 8:30 A.M. EDT
                   Gross Domestic Product:  First Quarter 2017 (Advance Estimate)




                                       Additional Information

Resources

Additional Resources available at www.bea.gov:
•	Stay informed about BEA developments by reading the BEA blog, signing up for BEA’s email
        subscription service, or following BEA on Twitter @BEA_News.
•	Historical time series for these estimates can be accessed in BEA’s Interactive Data Application.
•	Access BEA data by registering for BEA’s Data Application Programming Interface (API).
•	For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business.
•	BEA's news release scheduleNIPA Handbook:  Concepts and Methods of the U.S. National Income and Product Accounts

Definitions

Gross domestic product (GDP) is the value of the goods and services produced by the nation’s economy
less the value of the goods and services used up in production. GDP is also equal to the sum of personal
consumption expenditures, gross private domestic investment, net exports of goods and services, and
government consumption expenditures and gross investment.

Gross domestic income (GDI) is the sum of incomes earned and costs incurred in the production of GDP.
In national economic accounting, GDP and GDI are conceptually equal. In practice, GDP and GDI differ
because they are constructed using largely independent source data. Real GDI is calculated by deflating
gross domestic income using the GDP price index as the deflator, and is therefore conceptually
equivalent to real GDP.

Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is,
at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.”
Real values are inflation-adjusted estimates—that is, estimates that exclude the effects of price changes.
The gross domestic purchases price index measures the prices of final goods and services purchased by
U.S. residents.

The personal consumption expenditure price index measures the prices paid for the goods and services
purchased by, or on the behalf of, “persons.”

Profits from current production, referred to as corporate profits with inventory valuation adjustment
(IVA) and capital consumption adjustment (CCAdj) in the NIPAs, is a measure of the net income of
corporations before deducting income taxes that is consistent with the value of goods and services
measured in GDP. The IVA and CCAdj are adjustments that convert inventory withdrawals and
depreciation of fixed assets reported on a tax-return, historical-cost basis to the current-cost economic
measures used in the national income and product accounts.

For more definitions, see the Glossary: National Income and Product Accounts.


Statistical conventions

Annual rates. Quarterly values are expressed at seasonally-adjusted annual rates (SAAR), unless
otherwise specified. Dollar changes are calculated as the difference between these SAAR values. For
detail, see the FAQ “Why does BEA publish estimates at annual rates?”

Percent changes in quarterly series are calculated from unrounded data and are displayed at annual
rates, unless otherwise specified. For details, see the FAQ “How is average annual growth calculated?”

Quantities and prices. Quantities, or “real” volume measures, and prices are expressed as index
numbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are
calculated using a Fisher-chained weighted formula that incorporates weights from two adjacent
periods (quarters for quarterly data and annuals for annual data). “Real” dollar series are calculated by
multiplying the published quantity index by the current dollar value in the reference year (2009) and
then dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels
are conceptually the same; any differences are due to rounding.

Chained-dollar values are not additive because the relative weights for a given period differ from those
of the reference year. In tables that display chained-dollar values, a “residual” line shows the difference
between the sum of detailed chained-dollar series and its corresponding aggregate.


Updates to GDP

BEA releases three vintages of the current quarterly estimate for GDP:  "Advance" estimates are
released near the end of the first month following the end of the quarter and are based on source data
that are incomplete or subject to further revision by the source agency; “second” and “third” estimates
are released near the end of the second and third months, respectively, and are based on more detailed
and more comprehensive data as they become available.

Annual and comprehensive updates are typically released in late July. Annual updates generally cover at
least the 3 most recent calendar years (and their associated quarters) and incorporate newly available
major annual source data as well as some changes in methods and definitions to improve the accounts.
Comprehensive (or benchmark) updates are carried out at about 5-year intervals and incorporate major
periodic source data, as well as major conceptual improvements.
The table below shows the average revisions to the quarterly percent changes in real GDP between
different estimate vintages, without regard to sign.

Vintage                               Average Revision Without Regard to Sign
                                         (percentage points, annual rates)
Advance to second                                     0.5
Advance to third                                      0.6
Second to third                                       0.2
Advance to latest                                     1.1
Note - Based on estimates from 1993 through 2015. For more information on GDP updates, see Revision
Information on the BEA Web site.

The larger average revision from the advance to the latest estimate reflects the fact that periodic
comprehensive updates include major statistical and methodological improvements.

Unlike GDP, an advance current quarterly estimate of GDI is not released because data on domestic
profits and on net interest of domestic industries are not available. For fourth quarter estimates, these
data are not available until the third estimate.

https://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm 

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The Pronk Pops Show 868, April 6, 2017, Story 1: Neoconservatives and Progressive Global Interventionists Elite Banging The War Drums For American Empire Warfare and Welfare State vs. We The People America First Non-interventionists For American Republic Peace and Prosperity Economy — American People Not Readily Accepting Big Lie Media Propaganda on Syria Chemical Gas Air Attack — Another False Flag — Sunni and Shia Have Being Killing Each Other For Hundreds of Years — Stop Being Imperial Umpire For A Religious Sectarian Civil War and Proxy War — National Interest — Oil and Gas — Videos

Posted on April 6, 2017. Filed under: American History, Benghazi, Bernie Sanders, Blogroll, Bombs, Breaking News, Business, College, Communications, Computers, Congress, Corruption, Countries, Cruise Missiles, Defense Spending, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Egypt, Elections, Empires, European History, European Union, Federal Government, Foreign Policy, Fourth Amendment, Free Trade, Freedom of Speech, Genocide, Government, Government Dependency, Government Spending, Great Britain, Hate Speech, History, House of Representatives, Human, Human Behavior, Iran Nuclear Weapons Deal, Iraq, Islam, Islamic Republic of Iran, Islamic State, Israel, Jordan, Law, Libya, Life, Lying, Marco Rubio, Media, Medicare, Middle East, MIssiles, National Security Agency, Nerve Gas, News, Nuclear Weapons, Obama, Philosophy, Photos, Pistols, Politics, Polls, President Barack Obama, President Trump, Progressives, Qatar, Radio, Rand Paul, Rand Paul, Raymond Thomas Pronk, Regulation, Religion, Rifles, Rule of Law, Russia, Scandals, Second Amendment, Security, Senate, Social Security, Spying, Surveillance and Spying On American People, Surveillance/Spying, Syria, Taxation, Taxes, Technology, Terror, Terrorism, U.S. Negotiations with Islamic Republic of Iran, United Kingdom, United States Constitution, United States of America, Videos, Violence, War, Wealth, Weapons, Weather, Welfare Spending, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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Updated

Breaking News

Undeclared War!

President Trump Launches 59 Cruise Missile Attack From Two U.S. Destroyers Against Syrian Air Base 

President Trump Neoconned!

Trump Orders ATTACK on Syria – April 6, 2017 – FULL Press Conference

RAW USA launches cruise missile strike on Syria Regime Breaking News April 6 2017 

RAW USA launches cruise missiles strike on Syria RUSSIA IRAN backed ASSAD Regime after chemical Warfare weapons attack Breaking News April 6 2017

Neo-CONNED speech by Ron Paul

U.S. Launches Missiles at Syrian Base After Chemical Weapons Attack

The United States launched dozens of cruise missiles Thursday night at a Syrian airfield in response to what it believes was Syria’s use of banned chemical weapons that killed at least 100 people, U.S. military officials told NBC News.

Two U.S. warships in the Mediterranean Sea fired 59 Tomahawk missiles intended for a single target — Ash Sha’irat in Homs province in western Syria, the officials said. That’s the airfield from which the United States believes the government of Syrian President Bashar al-Assad fired the banned weapons.

There was no immediate word on casualties. U.S. officials told NBC News that people were not targeted and that aircraft and infrastructure at the site were hit, including the runway and gas fuel pumps.y

Trump Speaks on Missile Strike in Syria 2:48

“Assad choked out the lives of helpless men, women and children,” President Donald Trump said in remarks from Mar-a-Lago, his family compound in Palm Beach, Florida.

“It is in this vital national security interest of the United States to prevent and deter the spread and use of deadly chemical weapons,” said Trump, who called on other countries to end the bloodshed in Syria.

Related: Trump: Why I Launched a Missile Attack on Syria

Trump is in Florida for a meeting with Chinese President Xi Jinpeng. Defense Secretary James Mattis, Secretary of State Rex Tillerson and national security adviser H.R. McMaster traveled to Florida with him.

Defense Secretary James Mattis, Secretary of State Rex Tillerson and national security adviser H.R. McMaster traveled to Florida with Trump. In Washington, Vice President Mike Pence returned to the White House after having gone home for dinner Thursday evening.

Syrian television characterized the missile strike “as American aggression” Friday morning. But Ahrar Al Sham, the largest Syrian armed rebel group, told NBC News it “welcomes any U.S. intervention through surgical strikes that would deter the Assad regime capabilities to kill civilians and shorten the suffering of our people.”

Syria Crisis: Trump Given Military Options After Chemical Attack 2:25

Tillerson and Nikki Haley, the U.S. ambassador to the United Nations, have bluntly blamed Syria for the chemical weapons attack, whose victims included at least 25 children.

Tillerson told reporters on Thursday that “there is no doubt in our minds” that the Syrian regime was responsible for the attack. And in a combative speech at the U.N. Security Council on Wednesday, Haley warned: “When the United Nations consistently fails in its duty to act collectively, there are times in the life of states that we are compelled to take our own action.”y

Tillerson on Assad Regime: He Has ‘No Role’ to Govern Syria0:58

NBC News reported Thursday that Defense Secretary James Mattis briefed President Donald Trump on U.S. military options, which included carrying out targeted strikes against those responsible for Tuesday’s attack.

There was no immediate reaction from Russia, which Tillerson and Haley have accused of turning a blind eye to Syria’s transgressions.

“Russia cannot escape responsibility for this,” Haley said at the United Nations. “They chose to close their eyes to the barbarity. They defied the conscience of the world.”

Thursday, Tillerson urged Russia to “consider carefully their continued support of the Assad regime.”

Story 1: Progressive Global Interventionists Elite Banging The War Drums For American Empire Warfare and Welfare State vs. We The People America First Non-interventionists For American Republic Peace and Prosperity Economy — American People Not Readily Accepting Big Lie Media Propaganda on Syria Chemical Gas Air Attack — Another False Flag — Sunni and Shia Have Being Killing Each Other For Hundreds of Years — Stop Being Imperial Umpire For A Religious Sectarian Civil War — National Interest — Oil and Gas — Videos

Image result for false flagImage result for false flagImage result for false flagImage result for map syria united states attack on syria air base april 2017Image result for map syria united states attack on syria air base april 2017Image result for cartoons syria sarin false flagImage result for cartoons syria sarin false flagImage result for cartoons syria sarin false flagImage result for number killed in syrian civil war through 2016Image result for syrian gas attack april 5, 2017 map idlib syriaImage result for syrian gas attack april 2017  Image result for syrian gas attack april 2017Image result for syrian gas attack april 5, 2017 map

Image result for cartoons syria sarin false flagImage result for cartoons syria sarin false flagImage result for syria sarin false flag

Image result for cartoons on syria

Image result for cartoons on syria

Image result for cartoons on syriaImage result for cartoons on syria

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President Trump may be considering military action in Syria

Gen. Keane on the possibility of US military action in Syria

Trump Orders Attack On Syria! Will Russia Respond? Is Trump Wrong?

Syria Gas Attack: Assad’s Doing…Or False Flag?

Streamed live on Apr 5, 2017

Just days after the US Administration changed course on Syrian President Assad, saying he could stay, an alleged chemical weapon attack that killed dozens of civilians has been blamed on the Syrian government. Did Assad sign his own death warrant with such an attack…or does some other entity benefit?

[youytube=https://www.youtube.com/watch?v=LULzvg1gA5U]

Ron Paul: The Word That Best Defines Libertarianism Is Non-Intervention

Sen. John Barrasso Speaking on Trump Considering Military Action in Syria & North Korea

Cotton: President Trump struck the ‘right tone’ on Syria

Corker Comments on Suspected Chemical Weapons Attack in Syria

Rubio, Cardin call for Assad, Putin to be held accountable for Syria chemical weapons attack

Will the U.S. take military action in Syria?

Do powerful people in Washington want to know the truth?

Syrian Chemical False Flag Exposed

Laura Ingraham Show PODCAST April 6, 2017 – Bob Costa: ‘Trump Has Always Used His Family In Business

Unconfirmed Syria Chemical Weapons Attack is Iraq Weapons of Mass Destruction REDUX

What we know about the chemical attack in Syria

Syria Gas Attack: Assad’s Doing…Or False Flag?

Syria’s war: Who is fighting and why?

Was Syrian Chemical Attack A False Flag?

Understanding the Refugee Crisis in Europe, Syria, and around the World

Aftermath of Syrian chemical attack sparks outrage

World leaders condemn the Syrian chemical attack

Syria nerve gas attack: Chemical weapons expert debunks Assad’s defense

War in Syria: Russia and West clash over Idlib gas attack (part 1)

Published on Apr 5, 2017

Subscribe to France 24 now:
http://f24.my/youtubeEN

FRANCE 24 live news stream: all the latest news 24/7
http://f24.my/YTliveEN

On Tuesday in Idlib, a province in the Northwest of Syria, at least seventy people were killed, 20 of them children, in what appears to have been a chemical weapon attack in the rebel-held town of Khan Sheikhoun. Initial reports point to the nerve agent Sarin gas. Our panel of experts asks who was behind this attack. What explanations are being given, and do they stack up?
Click here for PART TWO.

Another suspected chemical weapons attack is latest chapter in brutal Syrian conflict

‘Assad Has Unleashed Horror in Syria’: World Reacts to Alleged Chemical Attack

Syria Gas Attack: Russia says chemical depot held by rebels bombed

Turkish President Erdogan calls chemical attack in Syria “inhuman and unacceptable”

“The Desperate BBC Propaganda Machine Blames Assad For Chemical Attack Before Any Investigation.”

Russia denies involvement in reported Syrian chemical attack

Children caught in Syria ‘chemical attack’- BBC News

Published on Apr 5, 2017

The UN Security Council has held an emergency session to discuss the suspected gas attack on a rebel-held town in Syria. The attack is believed to have killed more than 70 people, including children. The Syrian government has denied responsibility, while its ally Russia says the gas came from rebel weapons on the ground. But those claims have been widely rejected by western governments, as our Chief International Correspondent Lyse Doucet reports.

Syria conflict: ‘Chemical attack’ in Idlib kills 58 – BBC News

Published on Apr 4, 2017

At least 58 people have been killed and dozens wounded in a suspected chemical attack on a rebel-held town in north-western Syria, a monitoring group says. The Syrian Observatory for Human Rights reported that strikes on Khan Sheikhoun by Syrian government or Russian jets had caused many people to choke. Later, aircraft fired rockets at local clinics treating some of the survivors, medics and opposition activists said. The Syrian government has repeatedly denied using chemical weapons.

UN Ambassador Nikki Haley Condemns Russia, Iran After Chemical Attack In Syria | NBC News

UK: Chemical Attack Bears All Hallmarks of Assad

UNSC holds emergency meeting on Syria chemical attack

WATCH LIVE: U.N. Security Council Holds Emergency Meeting On Syria Chemical Attack | TIME

The TRUTH About the Syria Gas Attack

Hillary in Rat Line for Syria False Flag Sarin Gas Attack says Pulitzer Prize Winning Journalist

Sy Hersh Reveals Potential Turkish Role in Syria Chemical Strike That Almost Sparked U.S. Bombing

Global Empire – The World According to Seymour Hersh [Part Two]

Published on Aug 10, 2016

Tariq Ali talks to investigative journalist, Seymour Hersh, about his revelations concerning the chemical attack at Ghouta, Syria in August 2013.

Seymour Hersh Exposes Erdogan’s Chemical Adventure in Syria

Published on Apr 8, 2014

The US author reveals secret US reports warning that Al-Nusrah terrorist group affiliated with Qatar and Turkey, posses a chemical weapons cell. Worst threat since 9/11.

Global Empire – The World According to Seymour Hersh [Part One]

Published on Aug 10, 2016

Tariq Ali talks to investigative journalist, Seymour Hersh, about the assassination of Osama bin Laden in Pakistan in 2011 and describes what the Americans and Pakistanis knew about his whereabouts.

Global Empire – Syria After Trump

Seymour Hersh: Obama “Cherry-Picked” Intelligence on Syrian Chemical Attack to Justify U.S. Strike

Published on Dec 9, 2013

Writing in the London Review of Books, Hersh argues that the Obama administration “cherry-picked intelligence to justify a strike against Assad.” The administration failed to disclose it knew Syrian rebels in the al-Nusra Front had the ability to produce chemical weapons. Evidence obtained in the days after the attack was also allegedly distorted to make it appear it was gathered in real time.

Whose sarin? Seymour M. Hersh
Barack Obama did not tell the whole story this autumn when he tried to make the case that Bashar al-Assad was responsible for the chemical weapons attack near Damascus on 21 August. In some instances, he omitted important intelligence, and in others he presented assumptions as facts. Most significant, he failed to acknowledge something known to the US intelligence community: that the Syrian army is not the only party in the country’s civil war with access to sarin, the nerve agent that a UN study concluded — without assessing responsibility — had been used in the rocket attack. In the months before the attack, the American intelligence agencies produced a series of highly classified reports, culminating in a formal Operations Order — a planning document that precedes a ground invasion — citing evidence that the al-Nusra Front, a jihadi group affiliated with al-Qaida, had mastered the mechanics of creating sarin and was capable of manufacturing it in quantity. When the attack occurred al-Nusra should have been a suspect, but the administration cherry-picked intelligence to justify a strike against Assad.

In his nationally televised speech about Syria on 10 September, Obama laid the blame for the nerve gas attack on the rebel-held suburb of Eastern Ghouta firmly on Assad’s government, and made it clear he was prepared to back up his earlier public warnings that any use of chemical weapons would cross a ‘red line’: ‘Assad’s government gassed to death over a thousand people,’ he said. ‘We know the Assad regime was responsible … And that is why, after careful deliberation, I determined that it is in the national security interests of the United States to respond to the Assad regime’s use of chemical weapons through a targeted military strike.’ Obama was going to war to back up a public threat, but he was doing so without knowing for sure who did what in the early morning of 21 August.

He cited a list of what appeared to be hard-won evidence of Assad’s culpability: ‘In the days leading up to August 21st, we know that Assad’s chemical weapons personnel prepared for an attack near an area where they mix sarin gas. They distributed gas masks to their troops. Then they fired rockets from a regime-controlled area into 11 neighbourhoods that the regime has been trying to wipe clear of opposition forces.’ Obama’s certainty was echoed at the time by Denis McDonough, his chief of staff, who told the New York Times: ‘No one with whom I’ve spoken doubts the intelligence’ directly linking Assad and his regime to the sarin attacks.

But in recent interviews with intelligence and military officers and consultants past and present, I found intense concern, and on occasion anger, over what was repeatedly seen as the deliberate manipulation of intelligence. One high-level intelligence officer, in an email to a colleague, called the administration’s assurances of Assad’s responsibility a ‘ruse’. The attack ‘was not the result of the current regime’, he wrote. A former senior intelligence official told me that the Obama administration had altered the available information — in terms of its timing and sequence — to enable the president and his advisers to make intelligence retrieved days after the attack look as if it had been picked up and analyzed in real time, as the attack was happening. The distortion, he said, reminded him of the 1964 Gulf of Tonkin incident, when the Johnson administration reversed the sequence of National Security Agency intercepts to justify one of the early bombings of North Vietnam. The same official said there was immense frustration inside the military and intelligence bureaucracy: ‘The guys are throwing their hands in the air and saying, “How can we help this guy” — Obama — “when he and his cronies in the White House make up the intelligence as they go along?”‘…()

Obama Was Lying!

President Obama’s Syria Address [FULL SPEECH]

Seymour Hersh’s Latest Bombshell: U.S. Military Undermined Obama on Syria with Tacit Help to Assad

Published on Dec 22, 2015

A new report by the Pulitzer-winning veteran journalist Seymour Hersh says the Joints Chiefs of Staff has indirectly supported Bashar al-Assad in an effort to help him defeat jihadist groups. Hersh reports the Joint Chiefs sent intelligence via Russia, Germany and Israel on the understanding it would be transmitted to help Assad push back Jabhat al-Nusra and the Islamic State. Hersh also claims the military even undermined a U.S. effort to arm Syrian rebels in a bid to prove it was serious about helping Assad fight their common enemies. Hersh says the Joints Chiefs’ maneuvering was rooted in several concerns, including the U.S. arming of unvetted Syrian rebels with jihadist ties, a belief the administration was overly focused on confronting Assad’s ally in Moscow, and anger the White House was unwilling to challenge Turkey and Saudi Arabia over their support of extremist groups in Syria. Hersh joins us to detail his claims and respond to his critics.

US, Russia Announce Syria Chemical Weapons Deal

U.S. Ship Begins Neutralizing Syrian Chemical Weapons

MV Cape Ray Storage Area Tour

MV Cape Ray Disposal Practice

MV Cape Ray FDHS

Published on Jul 2, 2014

As part of the U.N. Organization for the Prohibition of Chemical Weapons (OPCW) Joint Mission to eliminate chemical materials from the Syrian Arab Republic, the U.S. will destroy approximately 700 metric tons of chemicals aboard the MV Cape Ray. Danish and Norwegian vessels will transport the chemicals to a yet-unnamed Italian port for transfer to the MV Cape Ray. The MV Cape Ray, part of the U.S. Maritime Administration’s Ready Reserve Fleet, has been retrofitted with two field-deployable hydrolysis systems designed to neutralize the dangerous chemicals before disposal at a commercial facility.

MV Cape Ray’s Bridge

MV Cape Ray Command Post Tour

MV Cape Ray Laboratory Tour

False flag

From Wikipedia, the free encyclopedia
“False colors” redirects here. For the imaging technique, see False-color.

This US Douglas A-26 C Invader was painted in fake Cuban Air Force colors for the military invasion of Cuba undertaken by the CIA-sponsored paramilitary group Brigade 2506 in April 1961.

The contemporary term false flag describes covert operations that are designed to deceive in such a way that activities appear as though they are being carried out by entities, groups, or nations other than those who actually planned and executed them.[1]

Historically, the term “false flag” has its origins in naval warfare where the use of a flag other than the belligerent’s true battle flag before (but not while) engaging the enemy has long been accepted as a permissible ruse de guerre; by contrast, flying a false flag while engaging the enemy constitutes perfidy.[1]

Operations carried out during peace-time by civilian organizations, as well as covert government agencies, can (by extension) also be called false flag operations if they seek to hide the real organization behind an operation.[citation needed]

Use in warfare

In land warfare such operations are generally deemed acceptable in certain circumstances, such as to deceive enemies providing that the deception is not perfidious and all such deceptions are discarded before opening fire upon the enemy. Similarly in naval warfare such a deception is considered permissible provided the false flag is lowered and the true flag raised before engaging in battle:[2]auxiliary cruisers operated in such a fashion in both World Wars, as did Q-ships, while merchant vessels were encouraged to use false flags for protection.

Such masquerades promoted confusion not just of the enemy but of historical accounts: in 1914 the Battle of Trindade was fought between the British auxiliary cruiser RMS Carmania and the German auxiliary cruiser SMS Cap Trafalgar which had been altered to look like Carmania. (Contrary to some possibly mendacious accounts, the RMS Carmania had not been altered to resemble the Cap Trafalgar.)

Another notable example was the World War II German commerce raider Kormoran which surprised and sank the Australian light cruiser HMAS Sydney in 1941 while disguised as a Dutch merchant ship, causing the greatest recorded loss of life on an Australian warship. While Kormoran was fatally damaged in the engagement and its crew captured the outcome represented a considerable psychological victory for the Germans.[3]

Other examples from WWII included a Kriegsmarineensign in the St Nazaire Raid and captured a German code book: the old destroyer Campbeltown, which the British planned to sacrifice in the operation, was provided with cosmetic modifications that involved cutting the ship’s funnels and chamfering the edges to resemble a German Type 23torpedo boat.

By this ruse the British were able to get within two miles (3 km) of the harbour before the defences responded, where the explosive-rigged Campbeltown and commandos successfully disabled or destroyed the key dock structures of the port.[4][5]

Air warfare

In December 1922–February 1923, Rules concerning the Control of Wireless Telegraphy in Time of War and Air Warfare, drafted by a commission of jurists at the Hague regulates:[6]

Art. 3. A military aircraft must carry an exterior mark indicating its nationality and its military character.
Art. 19. The use of false exterior marks is forbidden.

This draft was never adopted as a legally binding treaty, but the ICRC states in its introduction on the draft that ‘To a great extent, [the draft rules] correspond to the customary rules and general principles underlying treaties on the law of war on land and at sea’,[7] and as such these two non–controversial articles were already part of customary law.[8]

Land warfare

In land warfare, the use of a false flag is similar to that of naval warfare: the trial of Otto Skorzeny, who planned and commanded Operation Greif, by a U.S. military tribunal at the Dachau Trials included a finding that Skorzeny was not guilty of a crime by ordering his men into action in American uniforms. He had relayed to his men the warning of German legal experts: that if they fought in American uniforms, they would be breaking the laws of war; however, they probably were not doing so simply by wearing the American uniforms. During the trial, a number of arguments were advanced to substantiate this position and the German and U.S. military seem to have been in agreement.

In the transcript of the trial,[9] it is mentioned that Paragraph 43 of the Field Manual published by the War Department, United States Army, on 1 October 1940, under the entry Rules of Land Warfare states “National flags, insignias and uniforms as a ruse – in practice it has been authorized to make use of these as a ruse. The foregoing rule (Article 23 of the Annex of the IVth Hague Convention), does not prohibit such use, but does prohibit their improper use. It is certainly forbidden to make use of them during a combat. Before opening fire upon the enemy, they must be discarded’.”

The American Soldiers’ Handbook was also quoted by Defense Counsel: “The use of the enemy flag, insignia, and uniform is permitted under some circumstances. They are not to be used during actual fighting, and if used in order to approach the enemy without drawing fire, should be thrown away or removed as soon as fighting begins.” Subsequently, the outcome of the trial has been codified in the 1977 Protocol Additional to the Geneva Conventions of 12 August 1949 (Protocol I):

Article 37. – Prohibition of perfidy

1. It is prohibited to kill, injure, or capture an adversary by resort to perfidy. Acts inviting the confidence of an adversary to lead him to believe that he is entitled to, or is obliged to accord, protection under the rules of international law applicable in armed conflict, with intent to betray that confidence, shall constitute perfidy. The following acts are examples of perfidy:
(a) The feigning of an intent to negotiate under a flag of truce or of a surrender;
(b) The feigning of an incapacitation by wounds or sickness;
(c) The feigning of civilian, non-combatant status; and
(d) The feigning of protected status by the use of signs, emblems or uniforms of the United Nations or of neutral or other States not Parties to the conflict.
2. Ruses of war are not prohibited. Such ruses are acts which are intended to mislead an adversary or to induce him to act recklessly but which infringe no rule of international law applicable in armed conflict and which are not perfidious because they do not invite the confidence of an adversary with respect to protection under that law. The following are examples of such ruses: the use of camouflage, decoys, mock operations and disinformation.

Article 38. – Recognized emblems

1. It is prohibited to make improper use of the distinctive emblem of the Red Cross, Red Crescent or Red Lion and Sun or of other emblems, signs or signals provided for by the Conventions or by this Protocol. It is also prohibited to misuse deliberately in an armed conflict other internationally recognized protective emblems, signs or signals, including the flag of truce, and the protective emblem of cultural property.
2. It is prohibited to make use of the distinctive emblem of the United Nations, except as authorized by that Organization.

Article 39. – Emblems of nationality

1. It is prohibited to make use in an armed conflict of the flags or military emblems, insignia or uniforms of neutral or other States not Parties to the conflict.
2. It is prohibited to make use of the flags or military emblems, insignia or uniforms of adverse Parties while engaging in attacks or in order to shield, favour, protect or impede military operations.
3. Nothing in this Article or in Article 37, paragraph 1 ( d ), shall affect the existing generally recognized rules of international law applicable to espionage or to the use of flags in the conduct of armed conflict at sea.

Cyber warfare

A false flag in the cyber domain is slightly different and easier to perpetrate than in other physical theaters of war. Cyber false flags refer to tactics used in covert cyber attacks by a perpetrator to deceive or misguide attribution attempts including the attacker’s origin, identity, movement, and/or code/exploitation. This misdirection tactic can cause misattribution (permitting response and/or counterattack as a condiciosine qua non under international law) or misperception which can lead to retaliation against the wrong adversary.

Cyber false flags can exist in the cyber domain when:

  1. Weaponized cyber exploits use recycled code/variants from previous attacks;
  2. Exploits are developed to mimic the scope and complexity of other malware;
  3. Exploits are procured rather than developed;
  4. Exploits are executed from new/unknown operator command servers;
  5. Malware calls out to or connects to known operator command servers;
  6. The action or attack is outsourced;
  7. The compromise is socially engineered to misguide investigations towards other operators;
  8. The audit trail or lack thereof conceals actual intent or actions with other exploits designed to mislead investigators.

As pretexts for war

Russo-Swedish War

In 1788, the head tailor at the Royal Swedish Opera received an order to sew a number of Russian military uniforms. These were then used by the Swedes to stage an attack on Puumala, a Swedish outpost on the Russo-Swedish border, on 27 June 1788. This caused an outrage in Stockholm and impressed the Riksdag of the Estates, the Swedish national assembly, who until then had refused to agree to an offensive war against Russia. The Puumala incident allowed King Gustav III of Sweden, who lacked the constitutional authority to initiate unprovoked hostilities without the Estates’ consent, to launch the Russo-Swedish War (1788–1790).[10]

Second Sino-Japanese War

Japanese experts inspect the scene of the ‘railway sabotage’ on South Manchurian Railway

In September 1931, Japanese officers fabricated a pretext for invading Manchuria by blowing up a section of railway. Though the explosion was too weak to disrupt operations on the rail line, the Japanese nevertheless used this Mukden incident to seize Manchuria and create a puppet government for what they termed the “independent” state of Manchukuo.[11]

World War II

Gleiwitz incident

Alfred Naujocks

The Gleiwitz incident in 1939 involved Reinhard Heydrich fabricating evidence of a Polish attack against Germany to mobilize German public opinion for war and to justify the war with Poland. Alfred Naujocks was a key organiser of the operation under orders from Heydrich. It led to the deaths of Nazi concentration camp victims who were dressed as German soldiers and then shot by the Gestapo to make it seem that they had been shot by Polish soldiers. This, along with other false flag operations in Operation Himmler, would be used to mobilize support from the German population for the start of World War II in Europe.[12]

The operation failed to convince international public opinion of the German claims, and both Britain and France—Poland’s allies—declared war two days after Germany invaded Poland.[13]

Winter War

On November 26, 1939, the Soviet armyshelled Mainila, a Russian village near the Finnish border. Soviet authorities blamed Finland for the attack and used the incident as a pretext to invade Finland, starting the Winter War, four days later.[14]

Cuban Revolution

Operation Northwoods

Operation Northwoods memorandum (13 March 1962)[15]

The proposed, but never executed, 1962 Operation Northwoods plot by the U.S. Department of Defense for a war with Cuba involved scenarios such as fabricating the hijacking or shooting down of passenger and military planes, sinking a U.S. ship in the vicinity of Cuba, burning crops, sinking a boat filled with Cuban refugees, attacks by alleged Cuban infiltrators inside the United States, and harassment of U.S. aircraft and shipping and the destruction of aerial drones by aircraft disguised as Cuban MiGs.[16] These actions would be blamed on Cuba, and would be a pretext for an invasion of Cuba and the overthrow of Fidel Castro‘s communist government. It was authored by the Joint Chiefs of Staff, but then rejected by President John F. Kennedy. The surprise discovery of the documents relating to Operation Northwoods was a result of the comprehensive search for records related to the assassination of President John F. Kennedy by the Assassination Records Review Board in the mid-1990s.[17] Information about Operation Northwoods was later publicized by James Bamford.[18]

As a tactic to undermine political opponents

Reichstag fire

Main article: Reichstag fire

The Reichstag fire was an arson attack on the Reichstag building in Berlin on 27 February 1933. The fire started in the Session Chamber,[19] and, by the time the police and firemen arrived, the main Chamber of Deputies was engulfed in flames. Police searched the building and found Marinus van der Lubbe, a young Dutchcouncil communist and unemployed bricklayer, who had recently arrived in Germany to carry out political activities.[citation needed]

The fire was used as evidence by the Nazis that the Communists were beginning a plot against the German government. Van der Lubbe and four Communist leaders were subsequently arrested. Adolf Hitler, who was sworn in as Chancellor of Germany four weeks before, on 30 January, urged President Paul von Hindenburg to pass an emergency decree to counter the “ruthless confrontation of the Communist Party of Germany“.[20] With civil liberties suspended, the government instituted mass arrests of Communists, including all of the Communist parliamentary delegates. With their bitter rival Communists gone and their seats empty, the National Socialist German Workers Party went from being a plurality party to the majority; subsequent elections confirmed this position and thus allowed Hitler to consolidate his power.[citation needed]

Historians disagree as to whether Van der Lubbe acted alone, as he said, to protest the condition of the German working class, or whether the arson was planned and ordered by the Nazis, then dominant in the government themselves, as a false flag operation.[21][22]

Project TP-Ajax

On 4 April 1953, the CIA was ordered to undermine the government of Iran over a four-month period, as a precursor to overthrowing Prime Minister Mohammad Mosaddegh.[23] One tactic used to undermine Mosaddegh was to carry out false flag attacks “on mosques and key public figures”, to be blamed on Iranian communists loyal to the government.[23]

The CIA project was code-named TP-Ajax, and the tactic of a “directed campaign of bombings by Iranians posing as members of the Communist party”,[24] involved the bombing of “at least” one well known Muslim’s house by CIA agents posing as Communists.[24] The CIA determined that the tactic of false flag attacks added to the “positive outcome” of Project TPAJAX.[23]

However, as “the C.I.A. burned nearly all of its files on its role in the 1953 coup in Iran”, the true extent of the tactic has been difficult for historians to discern.[25]

Pseudo-operations

Pseudo-operations are those in which forces of one power disguise themselves as enemy forces. For example, a state power may disguise teams of operatives as insurgents and, with the aid of defectors, infiltrate insurgent areas.[26] The aim of such pseudo-operations may be to gather short or long-term intelligence or to engage in active operations, in particularassassinations of important enemies. However, they usually involve both, as the risks of exposure rapidly increase with time and intelligence gathering eventually leads to violent confrontation. Pseudo-operations may be directed by military or police forces, or both. Police forces are usually best suited to intelligence tasks; however, military provide the structure needed to back up such pseudo-ops with military response forces. According to US military expert Lawrence Cline (2005), “the teams typically have been controlled by police services, but this largely was due to the weaknesses in the respective military intelligence systems.”[citation needed]

Charlemagne Péralte of Haiti was assassinated in 1919, after checkpoints were passed by military disguised as guerrilla fighters.

The State Political Directorate (OGPU) of the Soviet Union set up such an operation from 1921 to 1926. During Operation Trust, they used loose networks of White Army supporters and extended them, creating the pseudo-“Monarchist Union of Central Russia” (MUCR) in order to help the OGPU identify real monarchists and anti-Bolsheviks.[citation needed]

An example of a successful assassination was United States MarineSergeantHerman H. Hanneken leading a patrol of his HaitianGendarmerie disguised as enemy guerrillas in 1919. The Patrol successfully passed several enemy checkpoints in order to assassinate the guerilla leader Charlemagne Péralte near Grande-Rivière-du-Nord. Hanneken was awarded the Medal of Honor and was commissioned a Second Lieutenant for his deed.[citation needed]

During the Mau Mau uprising in the 1950s, captured Mau Mau members who switched sides and specially trained British troops initiated the pseudo-gang concept to successfully counter Mau Mau. In 1960 Frank Kitson, (who was later involved in the Northern Irish conflict and is now a retired British General), published Gangs and Counter-gangs, an account of his experiences with the technique in Kenya; information included how to counter gangs and measures of deception, including the use of defectors, which brought the issue a wider audience.[citation needed]

Another example of combined police and military oversight of pseudo-operations include the Selous Scouts in the former country Rhodesia (now Zimbabwe), governed by white minority rule until 1980. The Selous Scouts were formed at the beginning of Operation Hurricane, in November 1973, by Major (later Lieutenant Colonel) Ronald Reid-Daly. As with all Special Forces in Rhodesia, by 1977 they were controlled by COMOPS (Commander, Combined Operations) Commander Lieutenant General Peter Walls. The Selous Scouts were originally composed of 120 members, with all officers being white and the highest rank initially available for black soldiers being colour sergeant. They succeeded in turning approximately 800 insurgents who were then paid by Special Branch, ultimately reaching the number of 1,500 members. Engaging mainly in long-range reconnaissance and surveillance missions, they increasingly turned to offensive actions, including the attempted assassination of Zimbabwe People’s Revolutionary Army leader Joshua Nkomo in Zambia. This mission was finally aborted by the Selous Scouts, and attempted again, unsuccessfully, by the Rhodesian Special Air Service.[27]

Some offensive operations attracted international condemnation, in particular the Selous Scouts’ raid on a Zimbabwe African National Liberation Army (ZANLA) camp at Nyadzonya Pungwe, Mozambique in August 1976. ZANLA was then led by Josiah Tongogara. Using Rhodesian trucks and armored cars disguised as Mozambique military vehicles, 84 scouts killed 1,284 people in the camp-the camp was registered as a refugee camp by the United Nations (UN). Even according to Reid-Daly, most of those killed were unarmed guerrillas standing in formation for a parade. The camp hospital was also set ablaze by the rounds fired by the Scouts, killing all patients.[28] According to David Martin and Phyllis Johnson, who visited the camp shortly before the raid, it was only a refugee camp that did not host any guerrillas. It was staged for UN approval.[29]

According to a 1978 study by the Directorate of Military Intelligence, 68% of all insurgent deaths inside Rhodesia could be attributed to the Selous Scouts, who were disbanded in 1980.[30]

If the action is a police action, then these tactics would fall within the laws of the state initiating the pseudo, but if such actions are taken in a civil war or during a belligerent military occupation then those who participate in such actions would not be privileged belligerents. The principle of plausible deniability is usually applied for pseudo-teams. (See the above section Laws of war). Some false flag operations have been described by Lawrence E. Cline, a retired US Army intelligence officer, as pseudo-operations, or “the use of organized teams which are disguised as guerrilla groups for long- or short-term penetration of insurgent-controlled areas.”[citation needed]

Pseudo Operations should be distinguished, notes Cline, from the more common police or intelligence infiltration of guerrilla or criminal organizations. In the latter case, infiltration is normally done by individuals. Pseudo teams, on the other hand, are formed as needed from organized units, usually military or paramilitary. The use of pseudo teams has been a hallmark of a number of foreign counterinsurgency campaigns.”[26]

Similar false flag tactics were also employed during the Algerian civil war, starting in the middle of 1994. Death squads composed of Département du Renseignement et de la Sécurité (DRS) security forces disguised themselves as Islamist terrorists and committed false flag terror attacks. Such groups included the Organisation of Young Free Algerians (OJAL) or the Secret Organisation for the Safeguard of the Algerian Republic (OSSRA)[31] According to Roger Faligot and Pascal Kropp (1999), the OJAL was reminiscent of “the Organization of the French Algerian Resistance (ORAF), a group of counter-terrorists created in December 1956 by the Direction de la surveillance du territoire (Territorial Surveillance Directorate, or DST) whose mission was to carry out terrorist attacks with the aim of quashing any hopes of political compromise”.[32]

Espionage

Main article: False flag penetrator

In espionage the term “false flag” describes the recruiting of agents by operatives posing as representatives of a cause the prospective agents are sympathetic to, or even the agents’ own government. For example, during the Cold War, several female West German civil servants were tricked into stealing classified documents by agents of the East GermanStasi intelligence service, pretending to be members of West German peace advocacy groups (the Stasi agents were also described as “Romeos,” indicating that they also used their sex appeal to manipulate their targets, making this operation a combination of the false flag and “honey trap” techniques).[33]

The technique can also be used to expose enemy agents in one’s own service, by having someone approach the suspect and pose as an agent of the enemy. Earl Edwin Pitts, a 13-year veteran of the U.S. Federal Bureau of Investigation and an attorney, was caught when he was approached by FBI agents posing as Russian agents.[citation needed]

British intelligence officials in World War II allowed double agents to fire-bomb a power station and a food dump in the UK to protect their cover, according to declassified documents. The documents stated the agents took precautions to ensure they did not cause serious damage. One of the documents released also stated: “It should be recognised that friends as well as enemies must be completely deceived.”[34]

Civilian usage

While false flag operations originate in warfare and government, they also can occur in civilian settings among certain factions, such as businesses, special interest groups, religions, political ideologies and campaigns for office.[citation needed]

Businesses

In business and marketing, similar operations are being employed in some public relations campaigns (see Astroturfing). Telemarketing firms practice false flag type behavior when they pretend to be a market research firm (referred to as “sugging“). In some rare cases, members of an unsuccessful business will destroy some of their own property to conceal an unrelated crime (e.g., safety violations, embezzlement) but make it appear as though the destruction was done by a rival company.[citation needed]

Political campaigning

Political campaigning has a long history of this tactic in various forms, including in person, print media and electronically in recent years. This can involve when supporters of one candidate pose as supporters of another, or act as “straw men” for their preferred candidate to debate against. This can happen with or without the candidate’s knowledge. The Canuck letter is an example of one candidate creating a false document and attributing it as coming from another candidate in order to discredit that candidate.[citation needed]

In the final days of Florida’s 1994 gubernatorial campaign, Democratic Governor Lawton Chiles ran a false flag operation that paid for tens of thousands of calls to elderly voters using false organization names. The calls purported to be from Republican groups and told voters that Jeb Bush was against Social Security and seniors. Chiles denied his campaign was behind the calls. After winning re-election and facing an investigation, Chiles admitted the truth in November 1995.[35]

In 2006, individuals practicing false flag behavior were discovered and “outed” in New Hampshire[36][37] and New Jersey[38] after blog comments claiming to be from supporters of a political candidate were traced to the IP address of paid staffers for that candidate’s opponent.

On 19 February 2011, Indiana Deputy Prosecutor Carlos Lam sent a private email to Wisconsin Governor Scott Walker suggesting that he run a “‘false flag’ operation” to counter the protests against Walker’s proposed restrictions on public employees’ collective bargaining rights:

If you could employ an associate who pretends to be sympathetic to the unions’ cause to physically attack you (or even use a firearm against you), you could discredit the unions … Employing a false flag operation would assist in undercutting any support that the media may be creating in favor of the unions.[39][40]

The press had acquired a court order to access all of Walker’s emails and Lam’s email was exposed. At first, Lam vehemently denied it, but eventually admitted it and resigned.[40]

Ideological

A bomb threat forged by Scientology operatives.

Proponents of political or religious ideologies will sometimes use false flag tactics. This can be done to discredit or implicate rival groups, create the appearance of enemies when none exist, or create the illusion of organized and directed persecution. This can be used to gain attention and sympathy from outsiders, in particular the media, or to convince others within the group that their beliefs are under attack and in need of protection.

In retaliation for writing The Scandal of Scientology, some members of the Church of Scientology stole stationery from author Paulette Cooper‘s home and then used that stationery to forge bomb threats and have them mailed to a Scientology office. The Guardian’s Office also had a plan for further operations to discredit Cooper known as Operation Freakout, but several Scientology operatives were arrested in a separate investigation and the plan was exposed.[41]

See also

Concepts

Examples

https://en.wikipedia.org/wiki/False_flag

42 FALSE-FLAG ATTACKS OFFICIALY ADMITTED TO

Mirrored from Washington’s Blog (due to their server being swamped)

Presidents, Prime Ministers, Congressmen, Generals, Spooks, Soldiers and Police ADMIT to False Flag Terror

In the following instances, officials in the government which carried out the attack (or seriously proposed an attack) admit to it, either orally, in writing, or through photographs or videos:

(1) Japanese troops set off a small explosion on a train track in 1931, and falsely blamed it on China in order to justify an invasion of Manchuria. This is known as the “Mukden Incident” or the “Manchurian Incident”. The Tokyo International Military Tribunal found: “Several of the participators in the plan, including Hashimoto [a high-ranking Japanese army officer], have on various occasions admitted their part in the plot and have stated that the object of the ‘Incident’ was to afford an excuse for the occupation of Manchuria by the Kwantung Army ….” And see this.

(2) A major with the Nazi SS admitted at the Nuremberg trials that – under orders from the chief of the Gestapo – he and some other Nazi operatives faked attacks on their own people and resources which they blamed on the Poles, to justify the invasion of Poland.

(3) Nazi general Franz Halder also testified at the Nuremberg trials that Nazi leader Hermann Goering admitted to setting fire to the German parliament building in 1933, and then falsely blaming the communists for the arson.

(4) Soviet leader Nikita Khrushchev admitted in writing that the Soviet Union’s Red Army shelled the Russian village of Mainila in 1939 – while blaming the attack on Finland – as a basis for launching the “Winter War” against Finland. Russian president Boris Yeltsin agreed that Russia had been the aggressor in the Winter War.

(5) The Russian Parliament, current Russian president Putin and former Soviet leader Gorbachev all admit that Soviet leader Joseph Stalin ordered his secret police to execute 22,000 Polish army officers and civilians in 1940, and then falsely blamed it on the Nazis.

(6) The British government admits that – between 1946 and 1948 – it bombed 5 ships carrying Jews attempting to flee the Holocaust to seek safety in Palestine, set up a fake group called “Defenders of Arab Palestine”, and then had the psuedo-group falsely claim responsibility for the bombings (and see this, this and this).

(7) Israel admits that in 1954, an Israeli terrorist cell operating in Egypt planted bombs in several buildings, including U.S. diplomatic facilities, then left behind “evidence” implicating the Arabs as the culprits (one of the bombs detonated prematurely, allowing the Egyptians to identify the bombers, and several of the Israelis later confessed) (and see this and this).

(8) The CIA admits that it hired Iranians in the 1950’s to pose as Communists and stage bombings in Iran in order to turn the country against its democratically-elected prime minister.

(9) The Turkish Prime Minister admitted that the Turkish government carried out the 1955 bombing on a Turkish consulate in Greece – also damaging the nearby birthplace of the founder of modern Turkey – and blamed it on Greece, for the purpose of inciting and justifying anti-Greek violence.

(10) The British Prime Minister admitted to his defense secretary that he and American president Dwight Eisenhower approved a plan in 1957 to carry out attacks in Syria and blame it on the Syrian government as a way to effect regime change.

(11) The former Italian Prime Minister, an Italian judge, and the former head of Italian counterintelligence admit that NATO, with the help of the Pentagon and CIA, carried out terror bombings in Italy and other European countries in the 1950s and blamed the communists, in order to rally people’s support for their governments in Europe in their fight against communism. As one participant in this formerly-secret program stated: “You had to attack civilians, people, women, children, innocent people, unknown people far removed from any political game. The reason was quite simple. They were supposed to force these people, the Italian public, to turn to the state to ask for greater security” (and see this) (Italy and other European countries subject to the terror campaign had joined NATO before the bombings occurred). And watch this BBC special. They also allegedly carried out terror attacks in France, Belgium, Denmark, Germany, Greece, the Netherlands, Norway, Portugal, the UK, and other countries.

False flag attacks carried out pursuant to this program include – by way of example only:

(12) In 1960, American Senator George Smathers suggested that the U.S. launch “a false attack made on Guantanamo Bay which would give us the excuse of actually fomenting a fight which would then give us the excuse to go in and [overthrow Castro]”.

(13) Official State Department documents show that, in 1961, the head of the Joint Chiefs and other high-level officials discussed blowing up a consulate in the Dominican Republic in order to justify an invasion of that country. The plans were not carried out, but they were all discussed as serious proposals.

(14) As admitted by the U.S. government, recently declassified documents show that in 1962, the American Joint Chiefs of Staff signed off on a plan to blow up AMERICAN airplanes (using an elaborate plan involving the switching of airplanes), and also to commit terrorist acts on American soil, and then to blame it on the Cubans in order to justify an invasion of Cuba. See the following ABC news report; the official documents; and watch this interview with the former Washington Investigative Producer for ABC’s World News Tonight with Peter Jennings.

(15) In 1963, the U.S. Department of Defense wrote a paper promoting attacks on nations within the Organization of American States – such as Trinidad-Tobago or Jamaica – and then falsely blaming them on Cuba.

(16) The U.S. Department of Defense even suggested covertly paying a person in the Castro government to attack the United States: “The only area remaining for consideration then would be to bribe one of Castro’s subordinate commanders to initiate an attack on Guantanamo.”

(17) The NSA admits that it lied about what really happened in the Gulf of Tonkin incident in 1964 … manipulating data to make it look like North Vietnamese boats fired on a U.S. ship so as to create a false justification for the Vietnam war.

(18) A U.S. Congressional committee admitted that – as part of its “Cointelpro” campaign – the FBI had used many provocateurs in the 1950s through 1970s to carry out violent acts and falsely blame them on political activists.

(19) A top Turkish general admitted that Turkish forces burned down a mosque on Cyprus in the 1970s and blamed it on their enemy. He explained: “In Special War, certain acts of sabotage are staged and blamed on the enemy to increase public resistance. We did this on Cyprus; we even burnt down a mosque.” In response to the surprised correspondent’s incredulous look the general said, “I am giving an example”.

(20) A declassified 1973 CIA document reveals a program to train foreign police and troops on how to make booby traps, pretending that they were training them on how to investigate terrorist acts:

The Agency maintains liaison in varying degrees with foreign police/security organizations through its field stations ….

[CIA provides training sessions as follows:]

a. Providing trainees with basic knowledge in the uses of commercial and military demolitions and incendiaries as they may be applied in terrorism and industrial sabotage operations.

b. Introducing the trainees to commercially available materials and home laboratory techniques, likely to he used in the manufacture of explosives and incendiaries by terrorists or saboteurs.

c. Familiarizing the trainees with the concept of target analysis and operational planning that a saboteur or terrorist must employ.

d. Introducing the trainees to booby trapping devices and techniques giving practical experience with both manufactured and improvised devices through actual fabrication.

***

The program provides the trainees with ample opportunity to develop basic familiarity and use proficiently through handling, preparing and applying the various explosive charges, incendiary agents, terrorist devices and sabotage techniques.

(21) The German government admitted (and see this) that, in 1978, the German secret service detonated a bomb in the outer wall of a prison and planted “escape tools” on a prisoner – a member of the Red Army Faction – which the secret service wished to frame the bombing on.

(22) A Mossad agent admits that, in 1984, Mossad planted a radio transmitter in Gaddaffi’s compound in Tripoli, Libya which broadcast fake terrorist trasmissions recorded by Mossad, in order to frame Gaddaffi as a terrorist supporter. Ronald Reagan bombed Libya immediately thereafter.

(23) The South African Truth and Reconciliation Council found that, in 1989, the Civil Cooperation Bureau (a covert branch of the South African Defense Force) approached an explosives expert and asked him “to participate in an operation aimed at discrediting the ANC [the African National Congress] by bombing the police vehicle of the investigating officer into the murder incident”, thus framing the ANC for the bombing.

(24) An Algerian diplomat and several officers in the Algerian army admit that, in the 1990s, the Algerian army frequently massacred Algerian civilians and then blamed Islamic militants for the killings (and see this video; and Agence France-Presse, 9/27/2002, French Court Dismisses Algerian Defamation Suit Against Author).

(25) The United States Army’s 1994 publication Special Forces Foreign Internal Defense Tactics Techniques and Procedures for Special Forces – updated in 2004 – recommends employing terrorists and using false flag operations to destabilize leftist regimes in Latin America. False flag terrorist attacks were carried out in Latin America and other regions as part of the CIA’s “Dirty Wars“. And see this.

(26) Similarly, a CIA “psychological operations” manual prepared by a CIA contractor for the Nicaraguan Contra rebels noted the value of assassinating someone on your own side to create a “martyr” for the cause. The manual was authenticated by the U.S. government. The manual received so much publicity from Associated Press, Washington Post and other news coverage that – during the 1984 presidential debate – President Reagan was confronted with the following question on national television:

At this moment, we are confronted with the extraordinary story of a CIA guerrilla manual for the anti-Sandinista contras whom we are backing, which advocates not only assassinations of Sandinistas but the hiring of criminals to assassinate the guerrillas we are supporting in order to create martyrs.

(27) An Indonesian fact-finding team investigated violent riots which occurred in 1998, and determined that “elements of the military had been involved in the riots, some of which were deliberately provoked“.

(28) Senior Russian Senior military and intelligence officers admit that the KGB blew up Russian apartment buildings in 1999 and falsely blamed it on Chechens, in order to justify an invasion of Chechnya (and see this report and this discussion).

(29) As reported by BBC, the New York Times, and Associated Press, Macedonian officials admit that the government murdered 7 innocent immigrants in cold blood and pretended that they were Al Qaeda soldiers attempting to assassinate Macedonian police, in order to join the “war on terror”.

(30)  At the July 2001 G8 Summit in Genoa, Italy, black-clad thugs were videotaped getting out of police cars, and were seen by an Italian MP carrying “iron bars inside the police station”.  Subsequently, senior police officials in Genoa subsequently  admitted that police planted two Molotov cocktails and faked the stabbing of a police officer at the G8 Summit, in order to justify a violent crackdown against protesters.

(31) The U.S. falsely blamed Iraq for playing a role in the 9/11 attacks – as shown by a memo from the defense secretary – as one of the main justifications for launching the Iraq war. Even after the 9/11 Commission admitted that there was no connection, Dick Cheney said that the evidence is “overwhelming” that al Qaeda had a relationship with Saddam Hussein’s regime, that Cheney “probably” had information unavailable to the Commission, and that the media was not ‘doing their homework’ in reporting such ties. Top U.S. government officials now admit that the Iraq war was really launched for oil … not 9/11 or weapons of mass destruction. Despite previous “lone wolf” claims, many U.S. government officials now say that 9/11 was state-sponsored terror; but Iraq was not the state which backed the hijackers. (Many U.S. officials have alleged that 9/11 was a false flag operation by rogue elements of the U.S. government; but such a claim is beyond the scope of this discussion. The key point is that the U.S. falsely blamed it on Iraq, when it knew Iraq had nothing to do with it.).

(32) Although the FBI now admits that the 2001 anthrax attacks were carried out by one or more U.S. government scientists, a senior FBI official says that the FBI was actually told to blame the Anthrax attacks on Al Qaeda by White House officials (remember what the anthrax letters looked like). Government officials also confirm that the white House tried to link the anthrax to Iraq as a justification for regime change in that country.

(33) According to the Washington Post, Indonesian police admit that the Indonesian military killed American teachers in Papua in 2002 and blamed the murders on a Papuan separatist group in order to get that group listed as a terrorist organization.

(34) The well-respected former Indonesian president also admits that the government probably had a role in the Bali bombings.

(35) Police outside of a 2003 European Union summit in Greece were filmed planting Molotov cocktails on a peaceful protester

(36) Former Department of Justice lawyer John Yoo suggested in 2005 that the US should go on the offensive against al-Qaeda, having “our intelligence agencies create a false terrorist organization. It could have its own websites, recruitment centers, training camps, and fundraising operations. It could launchfake terrorist operations and claim credit for real terrorist strikes, helping to sow confusion within al-Qaeda’s ranks, causing operatives to doubt others’ identities and to question the validity of communications.”

(37) Similarly, in 2005, Professor John Arquilla of the Naval Postgraduate School – a renowned US defense analyst credited with developing the concept of ‘netwar’ – called for western intelligence services to create new “pseudo gang” terrorist groups, as a way of undermining “real” terror networks. According to Pulitzer-Prize winning journalist Seymour Hersh, Arquilla’s ‘pseudo-gang’ strategy was, Hersh reported, already being implemented by the Pentagon:

“Under Rumsfeld’s new approach, I was told, US military operatives would be permitted to pose abroad as corrupt foreign businessmen seeking to buy contraband items that could be used in nuclear-weapons systems. In some cases, according to the Pentagon advisers, local citizens could be recruited and asked to join up with guerrillas or terrorists

The new rules will enable the Special Forces community to set up what it calls ‘action teams’ in the target countries overseas which can be used to find and eliminate terrorist organizations. ‘Do you remember the right-wing execution squads in El Salvador?’ the former high-level intelligence official asked me, referring to the military-led gangs that committed atrocities in the early nineteen-eighties. ‘We founded them and we financed them,’ he said. ‘The objective now is to recruit locals in any area we want. And we aren’t going to tell Congress about it.’ A former military officer, who has knowledge of the Pentagon’s commando capabilities, said, ‘We’re going to be riding with the bad boys.'”

(38) United Press International reported in June 2005:

U.S. intelligence officers are reporting that some of the insurgents in Iraq are using recent-model Beretta 92 pistols, but the pistols seem to have had their serial numbers erased. The numbers do not appear to have been physically removed; the pistols seem to have come off a production line without any serial numbers. Analysts suggest the lack of serial numbers indicates that the weapons were intended for intelligence operations or terrorist cells with substantial government backing. Analysts speculate that these guns are probably from either Mossad or the CIA. Analysts speculate that agent provocateurs may be using the untraceable weapons even as U.S. authorities use insurgent attacks against civilians as evidence of the illegitimacy of the resistance.

(39) Undercover Israeli soldiers admitted in 2005 to throwing stones at other Israeli soldiers so they could blame it on Palestinians, as an excuse to crack down on peaceful protests by the Palestinians.

(40) Quebec police admitted that, in 2007, thugs carrying rocks to a peaceful protest were actually undercover Quebec police officers (and see this).

(41) A 2008 US Army special operations field manual recommends that the U.S. military use surrogate non-state groups such as “paramilitary forces, individuals, businesses, foreign political organizations, resistant or insurgent organizations, expatriates, transnational terrorism adversaries, disillusioned transnational terrorism members, black marketers, and other social or political ‘undesirables.'” The manual specifically acknowledged that U.S. special operations can involve both counterterrorism and “Terrorism” (as well as “transnational criminal activities, including narco-trafficking, illicit arms-dealing, and illegal financial transactions.”)

(42)  The former head of Secret Services and Head of State of Italy (Francesco Cossiga) advised the 2008 minister in charge of the police, on how to deal with protests from teachers and students:

He should do what I did when I was Minister of the Interior … infiltrate the movement with agents provocateurs inclined to do anything …. And after that, with the strength of the gained population consent,  … beat them for blood and beat for blood also those teachers that incite them. Especially the teachers. Not the elderly, of course, but the girl teachers yes.

(43) At the G20 protests in London in 2009, a British member of parliament saw plain clothes police officers attempting to incite the crowd to violence.

(44) Egyptian politicians admitted (and see this) that government employees looted priceless museum artifacts in 2011 to try to discredit the protesters.

(45) Rioters who discredited the peaceful protests against the swearing in of the Mexican president in 2012 admitted that they were paid 300 pesos each to destroy everything in their path. According to Wikipedia, photos also show the vandals waiting in groups behind police lines prior to the violence.

(46) A Colombian army colonel has admitted that his unit murdered 57 civilians, then dressed them in uniforms and claimed they were rebels killed in combat.

(47) On November 20, 2014, Mexican agent provocateurs were transported by army vehicles to participate in the 2014 Iguala mass kidnapping protests, as was shown by videos and pictures distributed via social networks.

(48) The highly-respected writer for the Telegraph Ambrose Evans-Pritchard says that the head of Saudi intelligence – Prince Bandar – recently admitted that the Saudi government controls “Chechen” terrorists.

(49) High-level American sources admitted that the Turkish government – a fellow NATO country – carried out the chemical weapons attacks blamed on the Syrian government; and high-ranking Turkish government admitted on tape plans to carry out attacks and blame it on the Syrian government.

(50) The Ukrainian security chief admits that the sniper attacks which started the Ukrainian coup were carried out in order to frame others. Ukrainian officials admit that the Ukrainian snipers fired on both sides, to create maximum chaos.

(51) Britain’s spy agency has admitted (and see this) that it carries out “digital false flag” attacks on targets, framing people by writing offensive or unlawful material … and blaming it on the target.

(52) U.S. soldiers have admitted that if they kill innocent Iraqis and Afghanis, they then “drop” automatic weapons near their body so they can pretend they were militants

(53) Similarly, police frame innocent people for crimes they didn’t commit. The practice is so well-known that the New York Times noted in 1981:

In police jargon, a throwdown is a weapon planted on a victim.

Newsweek reported in 1999:

Perez, himself a former [Los Angeles Police Department] cop, was caught stealing eight pounds of cocaine from police evidence lockers. After pleading guilty in September, he bargained for a lighter sentence by telling an appalling story of attempted murder and a “throwdown”-police slang for a weapon planted by cops to make a shooting legally justifiable. Perez said he and his partner, Officer Nino Durden, shot an unarmed 18th Street Gang member named Javier Ovando, then planted a semiautomatic rifle on the unconscious suspect and claimed that Ovando had tried to shoot them during a stakeout.

Wikipedia notes:

As part of his plea bargain, Perez implicated scores of officers from the Rampart Division’s anti-gang unit, describing routinely beating gang members, planting evidence on suspects, falsifying reports and covering up unprovoked shootings.

(As a side note – and while not technically false flag attacks – police have been busted framing innocent people in many other ways, as well.)

(54) A former U.S. intelligence officer recently alleged:

Most terrorists are false flag terrorists or are created by our own security services.

(55) The head and special agent in charge of the FBI’s Los Angeles office said that most terror attacks are committed by the CIA and FBI as false flags.  Similarly, the director of the National Security Agency under Ronald Reagan – Lt. General William Odom said:

By any measure the US has long used terrorism. In ’78-79 the Senate was trying to pass a law against international terrorism – in every version they produced, the lawyers said the US would be in violation.

(audio here).

(56) Leaders throughout history have acknowledged the “benefits” of of false flags to justify their political agenda:

Terrorism is the best political weapon for nothing drives people harder than a fear of sudden death”.
– Adolph Hitler

“Why of course the people don’t want war … But after all it is the leaders of the country who determine the policy, and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship … Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in any country.”
– Hermann Goering, Nazi leader.

“The easiest way to gain control of a population is to carry out acts of terror. [The public] will clamor for such laws if their personal security is threatened”.
– Josef Stalin

Postscript: Private parties – such as NBC News, as well as Muslims, Jews, Scientologists, African-Americans and Neo-Nazis – play this game as well.

www.whatreallyhappened.comhttp://www.whatreallyhappened.com/WRHARTICLES/42falseflags.php#ixzz4dVI2Q7La

The Red Line and the Rat Line

Seymour M. Hersh on Obama, Erdoğan and the Syrian rebels

In 2011 Barack Obama led an allied military intervention in Libya without consulting the US Congress. Last August, after the sarin attack on the Damascus suburb of Ghouta, he was ready to launch an allied air strike, this time to punish the Syrian government for allegedly crossing the ‘red line’ he had set in 2012 on the use of chemical weapons.Then with less than two days to go before the planned strike, he announced that he would seek congressional approval for the intervention. The strike was postponed as Congress prepared for hearings, and subsequently cancelled when Obama accepted Assad’s offer to relinquish his chemical arsenal in a deal brokered by Russia. Why did Obama delay and then relent on Syria when he was not shy about rushing into Libya? The answer lies in a clash between those in the administration who were committed to enforcing the red line, and military leaders who thought that going to war was both unjustified and potentially disastrous.

Obama’s change of mind had its origins at Porton Down, the defence laboratory in Wiltshire. British intelligence had obtained a sample of the sarin used in the 21 August attack and analysis demonstrated that the gas used didn’t match the batches known to exist in the Syrian army’s chemical weapons arsenal. The message that the case against Syria wouldn’t hold up was quickly relayed to the US joint chiefs of staff. The British report heightened doubts inside the Pentagon; the joint chiefs were already preparing to warn Obama that his plans for a far-reaching bomb and missile attack on Syria’s infrastructure could lead to a wider war in the Middle East. As a consequence the American officers delivered a last-minute caution to the president, which, in their view, eventually led to his cancelling the attack.

For months there had been acute concern among senior military leaders and the intelligence community about the role in the war of Syria’s neighbours, especially Turkey. Prime Minister Recep Erdoğan was known to be supporting the al-Nusra Front, a jihadist faction among the rebel opposition, as well as other Islamist rebel groups. ‘We knew there were some in the Turkish government,’ a former senior US intelligence official, who has access to current intelligence, told me, ‘who believed they could get Assad’s nuts in a vice by dabbling with a sarin attack inside Syria – and forcing Obama to make good on his red line threat.’

The joint chiefs also knew that the Obama administration’s public claims that only the Syrian army had access to sarin were wrong. The American and British intelligence communities had been aware since the spring of 2013 that some rebel units in Syria were developing chemical weapons. On 20 June analysts for the US Defense Intelligence Agency issued a highly classified five-page ‘talking points’ briefing for the DIA’s deputy director, David Shedd, which stated that al-Nusra maintained a sarin production cell: its programme, the paper said, was ‘the most advanced sarin plot since al-Qaida’s pre-9/11 effort’. (According to a Defense Department consultant, US intelligence has long known that al-Qaida experimented with chemical weapons, and has a video of one of its gas experiments with dogs.) The DIA paper went on: ‘Previous IC [intelligence community] focus had been almost entirely on Syrian CW [chemical weapons] stockpiles; now we see ANF attempting to make its own CW … Al-Nusrah Front’s relative freedom of operation within Syria leads us to assess the group’s CW aspirations will be difficult to disrupt in the future.’ The paper drew on classified intelligence from numerous agencies: ‘Turkey and Saudi-based chemical facilitators,’ it said, ‘were attempting to obtain sarin precursors in bulk, tens of kilograms, likely for the anticipated large scale production effort in Syria.’ (Asked about the DIA paper, a spokesperson for the director of national intelligence said: ‘No such paper was ever requested or produced by intelligence community analysts.’)

Last May, more than ten members of the al-Nusra Front were arrested in southern Turkey with what local police told the press were two kilograms of sarin. In a 130-page indictment the group was accused of attempting to purchase fuses, piping for the construction of mortars, and chemical precursors for sarin. Five of those arrested were freed after a brief detention. The others, including the ringleader, Haytham Qassab, for whom the prosecutor requested a prison sentence of 25 years, were released pending trial. In the meantime the Turkish press has been rife with speculation that the Erdoğan administration has been covering up the extent of its involvement with the rebels. In a news conference last summer, Aydin Sezgin, Turkey’s ambassador to Moscow, dismissed the arrests and claimed to reporters that the recovered ‘sarin’ was merely ‘anti-freeze’.

The DIA paper took the arrests as evidence that al-Nusra was expanding its access to chemical weapons. It said Qassab had ‘self-identified’ as a member of al-Nusra, and that he was directly connected to Abd-al-Ghani, the ‘ANF emir for military manufacturing’. Qassab and his associate Khalid Ousta worked with Halit Unalkaya, an employee of a Turkish firm called Zirve Export, who provided ‘price quotes for bulk quantities of sarin precursors’. Abd-al-Ghani’s plan was for two associates to ‘perfect a process for making sarin, then go to Syria to train others to begin large scale production at an unidentified lab in Syria’. The DIA paper said that one of his operatives had purchased a precursor on the ‘Baghdad chemical market’, which ‘has supported at least seven CW efforts since 2004’.

A series of chemical weapon attacks in March and April 2013 was investigated over the next few months by a special UN mission to Syria. A person with close knowledge of the UN’s activity in Syria told me that there was evidence linking the Syrian opposition to the first gas attack, on 19 March in Khan Al-Assal, a village near Aleppo. In its final report in December, the mission said that at least 19 civilians and one Syrian soldier were among the fatalities, along with scores of injured. It had no mandate to assign responsibility for the attack, but the person with knowledge of the UN’s activities said: ‘Investigators interviewed the people who were there, including the doctors who treated the victims. It was clear that the rebels used the gas. It did not come out in public because no one wanted to know.’

In the months before the attacks began, a former senior Defense Department official told me, the DIA was circulating a daily classified report known as SYRUP on all intelligence related to the Syrian conflict, including material on chemical weapons. But in the spring, distribution of the part of the report concerning chemical weapons was severely curtailed on the orders of Denis McDonough, the White House chief of staff. ‘Something was in there that triggered a shit fit by McDonough,’ the former Defense Department official said. ‘One day it was a huge deal, and then, after the March and April sarin attacks’ – he snapped his fingers – ‘it’s no longer there.’ The decision to restrict distribution was made as the joint chiefs ordered intensive contingency planning for a possible ground invasion of Syria whose primary objective would be the elimination of chemical weapons.

In the aftermath of the 21 August attack Obama ordered the Pentagon to draw up targets for bombing. Early in the process, the former intelligence official said, ‘the White House rejected 35 target sets provided by the joint chiefs of staff as being insufficiently “painful” to the Assad regime.’ The original targets included only military sites and nothing by way of civilian infrastructure. Under White House pressure, the US attack plan evolved into ‘a monster strike’: two wings of B-52 bombers were shifted to airbases close to Syria, and navy submarines and ships equipped with Tomahawk missiles were deployed. ‘Every day the target list was getting longer,’ the former intelligence official told me. ‘The Pentagon planners said we can’t use only Tomahawks to strike at Syria’s missile sites because their warheads are buried too far below ground, so the two B-52 air wings with two-thousand pound bombs were assigned to the mission. Then we’ll need standby search-and-rescue teams to recover downed pilots and drones for target selection. It became huge.’ The new target list was meant to ‘completely eradicate any military capabilities Assad had’, the former intelligence official said. The core targets included electric power grids, oil and gas depots, all known logistic and weapons depots, all known command and control facilities, and all known military and intelligence buildings.

Britain and France were both to play a part. On 29 August, the day Parliament voted against Cameron’s bid to join the intervention, the Guardian reported that he had already ordered six RAF Typhoon fighter jets to be deployed to Cyprus, and had volunteered a submarine capable of launching Tomahawk missiles. The French air force – a crucial player in the 2011 strikes on Libya – was deeply committed, according to an account in Le Nouvel Observateur; François Hollande had ordered several Rafale fighter-bombers to join the American assault. Their targets were reported to be in western Syria.

By the last days of August the president had given the Joint Chiefs a fixed deadline for the launch. ‘H hour was to begin no later than Monday morning [2 September], a massive assault to neutralise Assad,’ the former intelligence official said. So it was a surprise to many when during a speech in the White House Rose Garden on 31 August Obama said that the attack would be put on hold, and he would turn to Congress and put it to a vote.

At this stage, Obama’s premise – that only the Syrian army was capable of deploying sarin – was unravelling. Within a few days of the 21 August attack, the former intelligence official told me, Russian military intelligence operatives had recovered samples of the chemical agent from Ghouta. They analysed it and passed it on to British military intelligence; this was the material sent to Porton Down. (A spokesperson for Porton Down said: ‘Many of the samples analysed in the UK tested positive for the nerve agent sarin.’ MI6 said that it doesn’t comment on intelligence matters.)

The former intelligence official said the Russian who delivered the sample to the UK was ‘a good source – someone with access, knowledge and a record of being trustworthy’. After the first reported uses of chemical weapons in Syria last year, American and allied intelligence agencies ‘made an effort to find the answer as to what if anything, was used – and its source’, the former intelligence official said. ‘We use data exchanged as part of the Chemical Weapons Convention. The DIA’s baseline consisted of knowing the composition of each batch of Soviet-manufactured chemical weapons. But we didn’t know which batches the Assad government currently had in its arsenal. Within days of the Damascus incident we asked a source in the Syrian government to give us a list of the batches the government currently had. This is why we could confirm the difference so quickly.’

The process hadn’t worked as smoothly in the spring, the former intelligence official said, because the studies done by Western intelligence ‘were inconclusive as to the type of gas it was. The word “sarin” didn’t come up. There was a great deal of discussion about this, but since no one could conclude what gas it was, you could not say that Assad had crossed the president’s red line.’ By 21 August, the former intelligence official went on, ‘the Syrian opposition clearly had learned from this and announced that “sarin” from the Syrian army had been used, before any analysis could be made, and the press and White House jumped at it. Since it now was sarin, “It had to be Assad.”’

The UK defence staff who relayed the Porton Down findings to the joint chiefs were sending the Americans a message, the former intelligence official said: ‘We’re being set up here.’ (This account made sense of a terse message a senior official in the CIA sent in late August: ‘It was not the result of the current regime. UK & US know this.’) By then the attack was a few days away and American, British and French planes, ships and submarines were at the ready.

The officer ultimately responsible for the planning and execution of the attack was General Martin Dempsey, chairman of the joint chiefs. From the beginning of the crisis, the former intelligence official said, the joint chiefs had been sceptical of the administration’s argument that it had the facts to back up its belief in Assad’s guilt. They pressed the DIA and other agencies for more substantial evidence. ‘There was no way they thought Syria would use nerve gas at that stage, because Assad was winning the war,’ the former intelligence official said. Dempsey had irritated many in the Obama administration by repeatedly warning Congress over the summer of the danger of American military involvement in Syria. Last April, after an optimistic assessment of rebel progress by the secretary of state, John Kerry, in front of the House Foreign Affairs Committee, Dempsey told the Senate Armed Services Committee that ‘there’s a risk that this conflict has become stalemated.’

Dempsey’s initial view after 21 August was that a US strike on Syria – under the assumption that the Assad government was responsible for the sarin attack – would be a military blunder, the former intelligence official said. The Porton Down report caused the joint chiefs to go to the president with a more serious worry: that the attack sought by the White House would be an unjustified act of aggression. It was the joint chiefs who led Obama to change course. The official White House explanation for the turnabout – the story the press corps told – was that the president, during a walk in the Rose Garden with Denis McDonough, his chief of staff, suddenly decided to seek approval for the strike from a bitterly divided Congress with which he’d been in conflict for years. The former Defense Department official told me that the White House provided a different explanation to members of the civilian leadership of the Pentagon: the bombing had been called off because there was intelligence ‘that the Middle East would go up in smoke’ if it was carried out.

The president’s decision to go to Congress was initially seen by senior aides in the White House, the former intelligence official said, as a replay of George W. Bush’s gambit in the autumn of 2002 before the invasion of Iraq: ‘When it became clear that there were no WMD in Iraq, Congress, which had endorsed the Iraqi war, and the White House both shared the blame and repeatedly cited faulty intelligence. If the current Congress were to vote to endorse the strike, the White House could again have it both ways – wallop Syria with a massive attack and validate the president’s red line commitment, while also being able to share the blame with Congress if it came out that the Syrian military wasn’t behind the attack.’ The turnabout came as a surprise even to the Democratic leadership in Congress. In September the Wall Street Journal reported that three days before his Rose Garden speech Obama had telephoned Nancy Pelosi, leader of the House Democrats, ‘to talk through the options’. She later told colleagues, according to the Journal, that she hadn’t asked the president to put the bombing to a congressional vote.

bama’s move for congressional approval quickly became a dead end. ‘Congress was not going to let this go by,’ the former intelligence official said. ‘Congress made it known that, unlike the authorisation for the Iraq war, there would be substantive hearings.’ At this point, there was a sense of desperation in the White House, the former intelligence official said. ‘And so out comes Plan B. Call off the bombing strike and Assad would agree to unilaterally sign the chemical warfare treaty and agree to the destruction of all of chemical weapons under UN supervision.’ At a press conference in London on 9 September, Kerry was still talking about intervention: ‘The risk of not acting is greater than the risk of acting.’ But when a reporter asked if there was anything Assad could do to stop the bombing, Kerry said: ‘Sure. He could turn over every single bit of his chemical weapons to the international community in the next week … But he isn’t about to do it, and it can’t be done, obviously.’ As the New York Times reported the next day, the Russian-brokered deal that emerged shortly afterwards had first been discussed by Obama and Putin in the summer of 2012. Although the strike plans were shelved, the administration didn’t change its public assessment of the justification for going to war. ‘There is zero tolerance at that level for the existence of error,’ the former intelligence official said of the senior officials in the White House. ‘They could not afford to say: “We were wrong.”’ (The DNI spokesperson said: ‘The Assad regime, and only the Assad regime, could have been responsible for the chemical weapons attack that took place on 21 August.’)

*The full extent of US co-operation with Turkey, Saudi Arabia and Qatar in assisting the rebel opposition in Syria has yet to come to light. The Obama administration has never publicly admitted to its role in creating what the CIA calls a ‘rat line’, a back channel highway into Syria. The rat line, authorised in early 2012, was used to funnel weapons and ammunition from Libya via southern Turkey and across the Syrian border to the opposition. Many of those in Syria who ultimately received the weapons were jihadists, some of them affiliated with al-Qaida. (The DNI spokesperson said: ‘The idea that the United States was providing weapons from Libya to anyone is false.’)

In January, the Senate Intelligence Committee released a report on the assault by a local militia in September 2012 on the American consulate and a nearby undercover CIA facility in Benghazi, which resulted in the death of the US ambassador, Christopher Stevens, and three others. The report’s criticism of the State Department for not providing adequate security at the consulate, and of the intelligence community for not alerting the US military to the presence of a CIA outpost in the area, received front-page coverage and revived animosities in Washington, with Republicans accusing Obama and Hillary Clinton of a cover-up. A highly classified annex to the report, not made public, described a secret agreement reached in early 2012 between the Obama and Erdoğan administrations. It pertained to the rat line. By the terms of the agreement, funding came from Turkey, as well as Saudi Arabia and Qatar; the CIA, with the support of MI6, was responsible for getting arms from Gaddafi’s arsenals into Syria. A number of front companies were set up in Libya, some under the cover of Australian entities. Retired American soldiers, who didn’t always know who was really employing them, were hired to manage procurement and shipping. The operation was run by David Petraeus, the CIA director who would soon resign when it became known he was having an affair with his biographer. (A spokesperson for Petraeus denied the operation ever took place.)

The operation had not been disclosed at the time it was set up to the congressional intelligence committees and the congressional leadership, as required by law since the 1970s. The involvement of MI6 enabled the CIA to evade the law by classifying the mission as a liaison operation. The former intelligence official explained that for years there has been a recognised exception in the law that permits the CIA not to report liaison activity to Congress, which would otherwise be owed a finding. (All proposed CIA covert operations must be described in a written document, known as a ‘finding’, submitted to the senior leadership of Congress for approval.) Distribution of the annex was limited to the staff aides who wrote the report and to the eight ranking members of Congress – the Democratic and Republican leaders of the House and Senate, and the Democratic and Republicans leaders on the House and Senate intelligence committees. This hardly constituted a genuine attempt at oversight: the eight leaders are not known to gather together to raise questions or discuss the secret information they receive.

The annex didn’t tell the whole story of what happened in Benghazi before the attack, nor did it explain why the American consulate was attacked. ‘The consulate’s only mission was to provide cover for the moving of arms,’ the former intelligence official, who has read the annex, said. ‘It had no real political role.’

Washington abruptly ended the CIA’s role in the transfer of arms from Libya after the attack on the consulate, but the rat line kept going. ‘The United States was no longer in control of what the Turks were relaying to the jihadists,’ the former intelligence official said. Within weeks, as many as forty portable surface-to-air missile launchers, commonly known as manpads, were in the hands of Syrian rebels. On 28 November 2012, Joby Warrick of the Washington Post reported that the previous day rebels near Aleppo had used what was almost certainly a manpad to shoot down a Syrian transport helicopter. ‘The Obama administration,’ Warrick wrote, ‘has steadfastly opposed arming Syrian opposition forces with such missiles, warning that the weapons could fall into the hands of terrorists and be used to shoot down commercial aircraft.’ Two Middle Eastern intelligence officials fingered Qatar as the source, and a former US intelligence analyst speculated that the manpads could have been obtained from Syrian military outposts overrun by the rebels. There was no indication that the rebels’ possession of manpads was likely the unintended consequence of a covert US programme that was no longer under US control.

By the end of 2012, it was believed throughout the American intelligence community that the rebels were losing the war. ‘Erdoğan was pissed,’ the former intelligence official said, ‘and felt he was left hanging on the vine. It was his money and the cut-off was seen as a betrayal.’ In spring 2013 US intelligence learned that the Turkish government – through elements of the MIT, its national intelligence agency, and the Gendarmerie, a militarised law-enforcement organisation – was working directly with al-Nusra and its allies to develop a chemical warfare capability. ‘The MIT was running the political liaison with the rebels, and the Gendarmerie handled military logistics, on-the-scene advice and training – including training in chemical warfare,’ the former intelligence official said. ‘Stepping up Turkey’s role in spring 2013 was seen as the key to its problems there. Erdoğan knew that if he stopped his support of the jihadists it would be all over. The Saudis could not support the war because of logistics – the distances involved and the difficulty of moving weapons and supplies. Erdoğan’s hope was to instigate an event that would force the US to cross the red line. But Obama didn’t respond in March and April.’

There was no public sign of discord when Erdoğan and Obama met on 16 May 2013 at the White House. At a later press conference Obama said that they had agreed that Assad ‘needs to go’. Asked whether he thought Syria had crossed the red line, Obama acknowledged that there was evidence such weapons had been used, but added, ‘it is important for us to make sure that we’re able to get more specific information about what exactly is happening there.’ The red line was still intact.

The foreign policy expert told me that the account he heard originated with Donilon. (It was later corroborated by a former US official, who learned of it from a senior Turkish diplomat.) According to the expert, Erdoğan had sought the meeting to demonstrate to Obama that the red line had been crossed, and had brought Fidan along to state the case. When Erdoğan tried to draw Fidan into the conversation, and Fidan began speaking, Obama cut him off and said: ‘We know.’ Erdoğan tried to bring Fidan in a second time, and Obama again cut him off and said: ‘We know.’ At that point, an exasperated Erdoğan said, ‘But your red line has been crossed!’ and, the expert told me, ‘Donilon said Erdoğan “fucking waved his finger at the president inside the White House”.’ Obama then pointed at Fidan and said: ‘We know what you’re doing with the radicals in Syria.’ (Donilon, who joined the Council on Foreign Relations last July, didn’t respond to questions about this story. The Turkish Foreign Ministry didn’t respond to questions about the dinner. A spokesperson for the National Security Council confirmed that the dinner took place and provided a photograph showing Obama, Kerry, Donilon, Erdoğan, Fidan and Davutoğlu sitting at a table. ‘Beyond that,’ she said, ‘I’m not going to read out the details of their discussions.’)

But Erdoğan did not leave empty handed. Obama was still permitting Turkey to continue to exploit a loophole in a presidential executive order prohibiting the export of gold to Iran, part of the US sanctions regime against the country. In March 2012, responding to sanctions of Iranian banks by the EU, the SWIFT electronic payment system, which facilitates cross-border payments, expelled dozens of Iranian financial institutions, severely restricting the country’s ability to conduct international trade. The US followed with the executive order in July, but left what came to be known as a ‘golden loophole’: gold shipments to private Iranian entities could continue. Turkey is a major purchaser of Iranian oil and gas, and it took advantage of the loophole by depositing its energy payments in Turkish lira in an Iranian account in Turkey; these funds were then used to purchase Turkish gold for export to confederates in Iran. Gold to the value of $13 billion reportedly entered Iran in this way between March 2012 and July 2013.

The programme quickly became a cash cow for corrupt politicians and traders in Turkey, Iran and the United Arab Emirates. ‘The middlemen did what they always do,’ the former intelligence official said. ‘Take 15 per cent. The CIA had estimated that there was as much as two billion dollars in skim. Gold and Turkish lira were sticking to fingers.’ The illicit skimming flared into a public ‘gas for gold’ scandal in Turkey in December, and resulted in charges against two dozen people, including prominent businessmen and relatives of government officials, as well as the resignations of three ministers, one of whom called for Erdoğan to resign. The chief executive of a Turkish state-controlled bank that was in the middle of the scandal insisted that more than $4.5 million in cash found by police in shoeboxes during a search of his home was for charitable donations.

Late last year Jonathan Schanzer and Mark Dubowitz reported in Foreign Policy that the Obama administration closed the golden loophole in January 2013, but ‘lobbied to make sure the legislation … did not take effect for six months’. They speculated that the administration wanted to use the delay as an incentive to bring Iran to the bargaining table over its nuclear programme, or to placate its Turkish ally in the Syrian civil war. The delay permitted Iran to ‘accrue billions of dollars more in gold, further undermining the sanctions regime’.*

The American decision to end CIA support of the weapons shipments into Syria left Erdoğan exposed politically and militarily. ‘One of the issues at that May summit was the fact that Turkey is the only avenue to supply the rebels in Syria,’ the former intelligence official said. ‘It can’t come through Jordan because the terrain in the south is wide open and the Syrians are all over it. And it can’t come through the valleys and hills of Lebanon – you can’t be sure who you’d meet on the other side.’ Without US military support for the rebels, the former intelligence official said, ‘Erdoğan’s dream of having a client state in Syria is evaporating and he thinks we’re the reason why. When Syria wins the war, he knows the rebels are just as likely to turn on him – where else can they go? So now he will have thousands of radicals in his backyard.’

A US intelligence consultant told me that a few weeks before 21 August he saw a highly classified briefing prepared for Dempsey and the defense secretary, Chuck Hagel, which described ‘the acute anxiety’ of the Erdoğan administration about the rebels’ dwindling prospects. The analysis warned that the Turkish leadership had expressed ‘the need to do something that would precipitate a US military response’. By late summer, the Syrian army still had the advantage over the rebels, the former intelligence official said, and only American air power could turn the tide. In the autumn, the former intelligence official went on, the US intelligence analysts who kept working on the events of 21 August ‘sensed that Syria had not done the gas attack. But the 500 pound gorilla was, how did it happen? The immediate suspect was the Turks, because they had all the pieces to make it happen.’

As intercepts and other data related to the 21 August attacks were gathered, the intelligence community saw evidence to support its suspicions. ‘We now know it was a covert action planned by Erdoğan’s people to push Obama over the red line,’ the former intelligence official said. ‘They had to escalate to a gas attack in or near Damascus when the UN inspectors’ – who arrived in Damascus on 18 August to investigate the earlier use of gas – ‘were there. The deal was to do something spectacular. Our senior military officers have been told by the DIA and other intelligence assets that the sarin was supplied through Turkey – that it could only have gotten there with Turkish support. The Turks also provided the training in producing the sarin and handling it.’ Much of the support for that assessment came from the Turks themselves, via intercepted conversations in the immediate aftermath of the attack. ‘Principal evidence came from the Turkish post-attack joy and back-slapping in numerous intercepts. Operations are always so super-secret in the planning but that all flies out the window when it comes to crowing afterwards. There is no greater vulnerability than in the perpetrators claiming credit for success.’ Erdoğan’s problems in Syria would soon be over: ‘Off goes the gas and Obama will say red line and America is going to attack Syria, or at least that was the idea. But it did not work out that way.’

The post-attack intelligence on Turkey did not make its way to the White House. ‘Nobody wants to talk about all this,’ the former intelligence official told me. ‘There is great reluctance to contradict the president, although no all-source intelligence community analysis supported his leap to convict. There has not been one single piece of additional evidence of Syrian involvement in the sarin attack produced by the White House since the bombing raid was called off. My government can’t say anything because we have acted so irresponsibly. And since we blamed Assad, we can’t go back and blame Erdoğan.’

Barring a major change in policy by Obama, Turkey’s meddling in the Syrian civil war is likely to go on. ‘I asked my colleagues if there was any way to stop Erdoğan’s continued support for the rebels, especially now that it’s going so wrong,’ the former intelligence official told me. ‘The answer was: “We’re screwed.” We could go public if it was somebody other than Erdoğan, but Turkey is a special case. They’re a Nato ally. The Turks don’t trust the West. They can’t live with us if we take any active role against Turkish interests. If we went public with what we know about Erdoğan’s role with the gas, it’d be disastrous. The Turks would say: “We hate you for telling us what we can and can’t do.”’

4 April

https://www.lrb.co.uk/v36/n08/seymour-m-hersh/the-red-line-and-the-rat-line

Ghouta chemical attack

From Wikipedia, the free encyclopedia
Ghouta chemical attack
Part of the Syrian Civil War
Ghouta massacre1.JPG

Some of the victims of the Ghouta chemical attack
Location Ghouta, Syria
Coordinates Eastern Ghouta: within 750 meters (2,460 ft) from[1]
33.5238301°N 36.3566995°E
Western Ghouta: within 500 meters (1,600 ft) from[1]
33.4602966°N 36.1972287°E
Date 21 August 2013[2]
Attack type
Chemical attack
Deaths Various estimates:
at least 281 (French intelligence)[3]
at least 350 (UK intelligence)[4]
355 (MSF)[5]
494 (Damascus Media Office)[6]
502 (SOHR)[7]
635 (SRGC)[8]
923 (VDC)[9]
1,300 (SNC)[10]
1,338 (LCC)[11]
1,429 (United States)[12][13]
1,729 (FSA)[14]
Non-fatal injuries
3,600 patients displaying neurotoxic symptoms in 3 hospitals supported by MSF[5]
Perpetrators Unknown

The Ghouta chemical attack occurred in Ghouta, Syria, during the Syrian Civil War in the early hours of 21 August 2013. Two opposition-controlled areas in the suburbs around Damascus, Syria were struck by rockets containing the chemical agent sarin. Estimates of the death toll range from at least 281 people[3] to 1,729.[14] The attack was the deadliest use of chemical weapons since the Iran–Iraq War.[15][16][17]

Inspectors from the United Nations Mission already in Syria to investigate an earlier alleged chemical weapons attack,[18](p6)[19] requested access to sites in Ghouta the day after the attack,[20][21][22][22][23][24] and called for a ceasefire to allow inspectors to visit the Ghouta sites.[20] The Syrian government granted the UN’s request on 25 August,[25][26][27] and inspectors visited and investigated Moadamiyah in Western Ghouta the next day, and Zamalka and Ein Tarma in Eastern Ghouta on 28 and 29 August.[18](p6)[28][29]

The UN investigation team confirmed “clear and convincing evidence” of the use of sarin delivered by surface-to-surface rockets,[18][30] and a 2014 report by the UN Human Rights Council found that “significant quantities of sarin were used in a well-planned indiscriminate attack targeting civilian-inhabited areas, causing mass casualties. The evidence available concerning the nature, quality and quantity of the agents used on 21 August indicated that the perpetrators likely had access to the chemical weapons stockpile of the Syrian military, as well as the expertise and equipment necessary to manipulate safely large amount of chemical agents.”[31] It also stated that the chemical agents used in the Khan al-Assal chemical attack “bore the same unique hallmarks as those used in Al-Ghouta.”[32][31][33]

The Syrian opposition,[34] as well as many governments, the Arab League and the European Union[35][36][37] stated the attack was carried out by forces of Syrian President Bashar al-Assad.[38] The Syrian and Russian governments blamed the opposition for the attack,[34] the Russian government calling the attack a false flag operation by the opposition to draw foreign powers into the civil war on the rebels’ side.[39]Åke Sellström, the leader of the UN Mission, characterized government explanations of rebel chemical weapons acquisition as unconvincing, resting in part upon “poor theories.”[40]

Several countries including France, the United Kingdom, and the United States debated whether to intervene militarily against Syrian government forces.[41][42][43][44] On 6 September 2013, the United States Senate filed a resolution to authorize use of military force against the Syrian military in response to the Ghouta attack.[45] On 10 September 2013, the military intervention was averted when the Syrian government accepted a US–Russian negotiated deal to turn over “every single bit” of its chemical weapons stockpiles for destruction and declared its intention to join the Chemical Weapons Convention.[46][47]

Background

The Ghouta area is composed of densely populated suburbs to the east and south of Damascus, part of the province of Rif Dimashq.[48] Ghouta is a primarily conservative Sunni region.[49] Since early in the civil war, civilians in rebel-held Eastern Ghouta have almost entirely sided with the opposition to Syria’s government.