The Pronk Pops Show 964, September 14, 2017, Story 1: Did President Trump Betray His Supporters By Promising Citizenship or Pathway To Citizenship For Illegal Alien “Dreamers”? — Big Lie Media and Lying Lunatic Left Losers (Senate Democratic Leader Chuck Schumer and House Democratic Leader Nancy Pelosi ) Say They Have A Deal or Understanding and Rollover Republicans Support Trump (Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan) — No Wall and No Deportation For 30-60 Million Illegal Aliens Including “Dreamers” — You Were Warned Not To Trust Trump — Rollover Republicans Want Touch-back Amnesty For Illegal Aliens — Hell No — Illegal Aliens Must Go — Trump Has 48 Hours To Confirm or Deny Dreamer Citizenship Deal — Political Suicide Watch Countdown — Videos

Posted on September 14, 2017. Filed under: 2016 Presidential Campaign, 2016 Presidential Candidates, American History, Blogroll, Congress, Constitutional Law, Corruption, Countries, Crime, Culture, Donald J. Trump, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Drugs, Education, Elections, Empires, Employment, European History, Foreign Policy, Government, Government Dependency, Government Spending, Health Care Insurance, Hillary Clinton, Hillary Clinton, Hillary Clinton, Hillary Clinton, History, House of Representatives, Housing, Human, Human Behavior, Illegal Drugs, Illegal Immigration, Illegal Immigration, Immigration, Independence, Jeb Bush, Labor Economics, Law, Legal Drugs, Legal Immigration, Life, Lying, Middle East, National Interest, Obama, People, Philosophy, Photos, Politics, Polls, President Trump, Radio, Raymond Thomas Pronk, Rule of Law, Scandals, Senate, South America, Success, Taxation, Taxes, Technology, Terror, Terrorism, Unemployment, United States Constitution, United States of America, Videos, Violence, Wealth, Welfare Spending, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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The Pronk Pops Show Podcasts

Pronk Pops Show 964, September 14, 2017

Pronk Pops Show 963, September 13, 2017

Pronk Pops Show 962, September 12, 2017

Pronk Pops Show 961, September 11, 2017

Pronk Pops Show 960, September 8, 2017

Pronk Pops Show 959, September 7, 2017

Pronk Pops Show 958, September 6, 2017

Pronk Pops Show 957, September 5, 2017

Pronk Pops Show 956, August 31, 2017

Pronk Pops Show 955, August 30, 2017

Pronk Pops Show 954, August 29, 2017

Pronk Pops Show 953, August 28, 2017

Pronk Pops Show 952, August 25, 2017

Pronk Pops Show 951, August 24, 2017

Pronk Pops Show 950, August 23, 2017

Pronk Pops Show 949, August 22, 2017

Pronk Pops Show 948, August 21, 2017

Pronk Pops Show 947, August 16, 2017

Pronk Pops Show 946, August 15, 2017

Pronk Pops Show 945, August 14, 2017

Pronk Pops Show 944, August 10, 2017

Pronk Pops Show 943, August 9, 2017

Pronk Pops Show 942, August 8, 2017

Pronk Pops Show 941, August 7, 2017

Pronk Pops Show 940, August 3, 2017

Pronk Pops Show 939, August 2, 2017

Pronk Pops Show 938, August 1, 2017

Pronk Pops Show 937, July 31, 2017

Pronk Pops Show 936, July 27, 2017

Pronk Pops Show 935, July 26, 2017

Pronk Pops Show 934, July 25, 2017

Pronk Pops Show 934, July 25, 2017

Pronk Pops Show 933, July 24, 2017

Pronk Pops Show 932, July 20, 2017

Pronk Pops Show 931, July 19, 2017

Pronk Pops Show 930, July 18, 2017

Pronk Pops Show 929, July 17, 2017

Pronk Pops Show 928, July 13, 2017

Pronk Pops Show 927, July 12, 2017

Pronk Pops Show 926, July 11, 2017

Pronk Pops Show 925, July 10, 2017

Pronk Pops Show 924, July 6, 2017

Pronk Pops Show 923, July 5, 2017

Pronk Pops Show 922, July 3, 2017

Pronk Pops Show 921, June 29, 2017

Pronk Pops Show 920, June 28, 2017

Pronk Pops Show 919, June 27, 2017

Pronk Pops Show 918, June 26, 2017

Pronk Pops Show 917, June 22, 2017

Pronk Pops Show 916, June 21, 2017

Pronk Pops Show 915, June 20, 2017

Pronk Pops Show 914, June 19, 2017

Pronk Pops Show 913, June 16, 2017

Pronk Pops Show 912, June 15, 2017

Pronk Pops Show 911, June 14, 2017

Pronk Pops Show 910, June 13, 2017

Pronk Pops Show 909, June 12, 2017

Pronk Pops Show 908, June 9, 2017

Pronk Pops Show 907, June 8, 2017

Pronk Pops Show 906, June 7, 2017

Pronk Pops Show 905, June 6, 2017

Pronk Pops Show 904, June 5, 2017

Pronk Pops Show 903, June 1, 2017Image result for branco cartoons on trump on immigrationImage result for cartoons trump on dreamersImage result for cartoons on trump on dreamers

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Image result for u.s. Border patroll statistic on apprehensions thourght 1990-2015

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Image result for u.S. immigration by decades througj 2010

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Immigration by the Numbers — Off the Charts

Immigration, World Poverty and Gumballs – NumbersUSA.com

Ann Coulter on illegal immigration

How Many Illegal Aliens are in the U.S.? – Introduction

Published on Oct 20, 2007

How Many Illegal Aliens Are in the US? – Diana Hull, part 1

Published on Oct 20, 2007

How Many Illegal Aliens Are in the US? – Diana Hull, part 2

How Many Illegal Aliens Are in the US? – Walsh – 1

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How Many Illegal Aliens Are in the US? – Walsh – 2

Published on Oct 20, 2007

How Many Illegal Aliens Are in the US? – Philip Romero

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How Many Illegal Aliens Are in the US? – Fred Elbel

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Story 1: Did President Trump Betray His Supporters By Promising Citizenship or Pathway To Citizenship For Illegal Alien “Dreamers”? — Big Lie Media and Lying Lunatic Left Losers (Senate Democratic Leader Chuck Schumer and House Democratic Leader Nancy Pelosi ) Say They Have A Deal or Understanding and Rollover Republicans Support Trump (Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan) — No Wall and No Deportation For 30-60 Million Illegal Aliens Including “Dreamers” — You Were Warned Not To Trust Trump — Rollover Republicans Want Touch-back Amnesty For Illegal Aliens — Hell No — Illegal Aliens Must Go — Trump Has 48 Hours To Confirm or Deny! — Political Suicide Watch Countdown — Videos

He’s a BETRAYER” Ann Coulter goes off on President Trump for deal with democrats

Tucker Carlson Tonight 9/14/17 | Tucker Fox News September 14, 2017

Ann Coulter Urges President Trump to Terminate DACA

President Donald Trump Supports DACA Amnesty? | True News

No, Trump Did Not Cave on the Border Wall in His DACA Deal

Laura Ingraham Show 9/14/17 Podcast – Trump Violating Pledge On The Wall at His Own Peril

Gohmert on ‘Political Realignment’ on Capitol Hill

Gohmert on Border Wall: ‘Some of Us Are Not Giving Up”

Breitbart And Ann Coulter Lash Out At Trump After Alleged Immigration Deal With Dems

“Amnesty Don” – the new country Western song about Trump supporting amnesty for illegals

Would the border wall be a part of the DACA deal?

President Trump: ‘Fairly close’ to DACA deal with Democrats

Daca: Trump denies reaching ‘Dreamers’ deal with Democrats

Trump disputes Democrats’ claim on DACA agreement

President Trump statement on immigration, green card reform with Sen Tom Cotton, Sen David Perdue

9 Misconceptions about the Green Card

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USCIS Form I-765 – Application for Employment Authorization

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Donald Trump: Green Card Reforms Will Reduce Unskilled Immigration | CNBC

Trump Makes Announcement on Immigration Reform

GOP lawmaker: Trump risking blowing up his base

Chuck Schumer Senate Floor: President Trump DACA Deal 9/14/17

Pelosi: Trump, Dems Agreed to ‘Move Forward’

Did Trump Just Give Away The Border? | The Ben Shapiro Show Ep. 383

It’s fine Trump is talking to Democrats on DACA: Sen. Ted Cruz

“Donald Trump will betray you on every issue” ~ Ted Cruz

Donald Trump: ‘We need to keep illegals out’ | Fox News Republican Debate

Donald Trump lays out three steps of his immigration policy

Trump on immigration: ‘We either have a country or we don’t’

Donald Trump’s entire immigration speech

Trump: I want an immigration policy that benefits Americans

Rep Steve King discusses Trump’s touchback amnesty

Trump’s Touchback amnesty explained by Marc Thiessen

Donald Trump explains his immigration plan

US-Mexico border wall needs to be built: Rep. Gohmert

“Shut the Border!” Ben Shapiro on Illegal Immigration Reform

Ben Shapiro: Amnesty Will Destroy Conservatives

Why Trump Is 100% Correct In Ending #DACA

Trump Is Right About Illegal Immigration and the New World Order & Deep State Vow to Destroy Him

Ann Coulter: Immigration Act of 1965 designed to change demographics

Edwin Meese on Immigration

The 1986 IRCA and Current Reform Efforts

he 1986 IRCA and Contemporary Reform Efforts

Immigration Reform and Control Act of 1986

Lessons learned from the 1986 immigration reform

Ronald Reagan’s amnesty legacy

Ronald Reagan – “I Believe in Amnesty for Illegal Aliens”

Reagan on Mexico Border 1980 – No Wall!

BEST VERSION: Reagan on Amnesty & Illegal Immigration

President Reagan’s Remarks at Ceremony for Immigration Reform and Control Act. November 6, 1986

1965 Immigration and Nationality Act

How the 1965 Immigration Act Changed America

The Immigration Act of 1965 and its Effects

The Impact of the Immigration and Nationality Act of 1965

1952: The McCarran-Walter Immigration Act

1924 Immigration Act

1917 Immigration Act

The Immigration History of the United States

America’s Sources of Immigration (1850-Today)

The Sopranos 6.06 – “How much more betrayal can I take?”

Trump’s die-hard supporters are fuming after an apparent about-face on ‘dreamers’

 September 14

Staunch conservative allies of President Trump have erupted in anger and incredulity after Democrats late Wednesday announced that the president had agreed to pursue a legislative deal that would protect thousands of young undocumented immigrants from deportation but not secure Trump’s signature campaign promise: building a massive wall along the U.S.-Mexico border.

Nearing midnight and into Thursday, social media accounts came alive as elected officials and activists on the right dashed off tweets and posts to share their shock.

And in between those posts, there was a flurry of fuming calls and text messages — a blaring political fire alarm among Trump’s die-hard supporters.

“The reality is sinking in that the Trump administration is on the precipice of turning into an establishment presidency,” Sam Nunberg, a former Trump campaign adviser, said in an interview early Thursday morning.

While the initial wave of fury could change direction as new details emerge, the torrent represented the first major break of Trump’s devoted base from the president on a core issue.

Rep. Steve King (R-Iowa), one of the GOP’s biggest immigration hawks, issued a dramatic warning to the president after he scrolled through news reports.

“If AP is correct, Trump base is blown up, destroyed, irreparable, and disillusioned beyond repair,” King tweeted, referencing an Associated Press story on the bipartisan agreement.

e added, “No promise is credible.”

Conservative radio talk show host Laura Ingraham, who is friendly with Trump, mocked him for seeming to shelve the pledge that has animated his supporters since his campaign’s launch.

“Exactly what @realDonaldTrump campaigned on. Not,” Ingraham wrote on Twitter. She later added, “BUILD THE WALL! BUILD THE WALL! … or … maybe … not really.”

Trump tried to calm the conservative outrage early Thursday in a series of tweets that insisted the border wall “will continue to be built” and that no deal was hashed out with Democrats on the undocumented young immigrants known as “dreamers.”

“No deal was made last night on DACA. Massive border security would have to be agreed to in exchange for consent. Would be subject to vote,” Trump wrote, referring to Deferred Action for Childhood Arrivals, or DACA, an Obama-era program that has allowed 690,000 “dreamers” to work and go to school without fear of deportation.


Senate Minority Leader Charles Schumer (D-N.Y.) talks with President Trump in the Oval Office on Sept. 6. (Alex Wong/Getty Images)

As he departed the White House on Thursday en route to Florida, which has been ravaged by Hurricane Irma, Trump told reporters that “the wall will come later … The wall is going to be built, it’ll be funded a little bit later.”

“We are working on a plan for DACA,” Trump said, calling the negotiations “fairly close” to concluding. Congressional Republican leaders, he added, were “very much on board” with his position.

Conservative polemicist Ann Coulter, who wrote a book titled “In Trump We Trust”, did not buy the president’s explanation.

“At this point, who DOESN’T want Trump impeached?” Coulter tweeted on Thursday morning.

Breitbart News, the conservative website now run by former White House chief strategist Stephen K. Bannon, quickly became a gathering place for aggrieved Trump backers. Readers congregated by the thousands in the comments section for an article with a bright red headline: “Amnesty Don.”

Days earlier, Bannon said on CBS’s “60 Minutes” that he was “worried about losing the House now because of this, because of DACA,” arguing that Republican voters would lack enthusiasm for Trump and the party if they felt it was drifting to the center on immigration.

“If this goes all the way down to its logical conclusion, in February and March it will be a civil war inside the Republican Party that will be every bit as vitriolic as 2013,” Bannon said, referencing the stalled fight that year over a comprehensive immigration bill. “And to me, doing that in the springboard of primary season for 2018 is extremely unwise.”

“This a betrayal of the highest order,” a Breitbart editor, who was not authorized to speak publicly, said in a phone call late Wednesday. “Donald Trump should be ashamed of himself. He wasn’t elected to do this.”

The editor was mostly echoed by the site’s readers:

“Put a fork in Trump. He is done.”

“PRIMARY TIME!!!!”

“What a HUGE let down.”

“I can reconcile Trump caving on virtually any issue, Amnesty and not building the wall are not one of them.”

Adding to the tumult in the deep of night: conflicting accounts over what exactly Trump and Democrats had brokered.

Aides to Senate Minority Leader Charles E. Schumer (D-N.Y.) and House Minority Leader Nancy Pelosi (D-Calif.) asserted that Trump had agreed not to request wall funding as part of their pact to soon move legislation to help undocumented immigrants who are protected under the executive order.

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What to know about the decision to end DACA
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The Trump administration is rescinding Deferred Action for Childhood Arrivals. The Obama-era program granted two-year work permits to undocumented immigrants brought into the country as children. (Jenny Starrs/The Washington Post)

White House Press Secretary Sarah Huckabee Sanders tweeted at 10:21 p.m.: “While DACA and border security were both discussed, excluding the wall was certainly not agreed to.”

Eleven minutes later, Matt House, an adviser to Schumer, tweeted: “The President made clear he would continue pushing the wall, just not as part of this agreement.”

Sanders’s Twitter assurance, however, did little to calm the roiled voices, especially in the populist-nationalist wing of the Republican Party — a wing deeply linked to Trump.

“Deep State Wins, Huge Loss for #MAGA,” Fox Business anchor Lou Dobbs tweeted, alluding to Trump’s “Make America Great Again” campaign slogan.

Others who have supported Trump’s immigration positions took a wait-and-see approach amid the chaos.

“My sense is that he told Chuck and Nancy what they wanted to hear, and they heard what they wanted to hear. I think there could be some mischief-making on the part of Schumer since the White House is walking it back,” said Mark Krikorian, an immigration hard-liner who runs the Center for Immigration Studies, in an interview.

Sen. Charles E. Grassley (R-Iowa), the chairman of the Judiciary Committee, tweeted Thursday that his efforts to work with Democrats on immigration policy were “undercut” by Trump’s moves and asked the White House staff to “brief me.”

Meanwhile, Fox News host Sean Hannity, who is in regular contact with Trump, directed his ire over the developments not at the president but at GOP leaders on Capitol Hill.

“Well Mitch GREAT JOB!” Hannity tweeted, referring to Senate Majority Leader Mitch McConnell (R-Ky.). “You failed so miserably with Healthcare and ‘excessive expectations’ now @POTUS has to deal with Dem Leaders!”

Hannity added later, “I blame R’s. They caused this. They wanted him to fail and now pushed him into arms of political suicide — IF TRUE.”

https://www.washingtonpost.com/news/post-politics/wp/2017/09/14/according-to-democrats-trump-has-done-an-about-face-on-dreamers-his-diehard-supporters-are-fuming/?utm_term=.773af8800f82

You asked if anyone wants to deport ‘dreamers,’ President Trump: Yes. Your base.

Commentary: 

Don’t buy into all of that rosy PR about DACA

Mickey KausSpecial to the Washington Post

Who wants to deport “Dreamers”? Not many people, it turns out. Even veteran immigration restrictionists seem willing to legalize this subset of immigrants in the country illegally if it is part of a package deal. That’s true even though a lot of what’s said about the DACA recipients is PR-style hooey.

For example, it’s often said — indeed, former President Barack Obama just recently said — that the approximately 800,000 of them were “brought to this country by their parents.” Well, many were. But that’s not required to qualify as a protected Deferred Action for Childhood Arrivals program recipient under the various plans, including Obama’s. You just have to have entered the country illegally before age 16. You could have decided to sneak in against your parents’ wishes. You’re still a “Dreamer!”

Likewise, we’re told DACA recipients are college-bound high school grads or military personnel. That’s an exaggeration. All that’s actually required is that the person enroll in a high school course or an “alternative,” including online courses and English-as-a-second-language classes. Under Obama’s now-suspended program, you didn’t even have to stay enrolled.

Compared with the general population, DACA recipients are not especially highly skilled. A recent survey for several pro-”Dreamer” groups, with participants recruited by those groups, found that while most DACA recipients are not in school, the vast majority work. But their median hourly wage is only $15.34, meaning that many are competing with hard-pressed lower-skilled Americans.

The DACA recipients you read about have typically been carefully selected for their appeal. They’re valedictorians. They’re first responders. They’re curing diseases. They root for the Yankees. They want to serve in the Army. If DACA recipients are the poster children for the much larger population of immigrants in the country illegally, these are the poster children for the poster children.

Still, taking the DACA recipients as a whole, not just the dreamiest of them, they represent an appealing group of would-be citizens. So why not show compassion and legalize them? Because, as is often the case, the pursuit of pure compassion comes with harmful side effects.

First, it would create perverse incentives. Can you imagine a stronger incentive for illegal immigration than the idea that if you sneak into the country your kids will get to be U.S. citizens? Sure, the protections don’t currently apply to recent entrants — under Obama’s plan, you had to have come before 2007. But those dates can be changed — Obama himself tried to do it once. And the rationale for rewarding those who arrive when young — that they’re here through “no fault of their own” and know only America, etc. — can apply on into the future, with no apparent stopping point. What about the poor kids who came in 2008? 2018? There’s a reason no country has a rule that if you sneak in as a minor, you’re a citizen. We’d be inviting the world.

Second, it would have knock-on effects. Under “chain migration” rules established in 1965 — ironically as a sop to conservatives, who foolishly thought that they’d boost European inflows — new citizens can bring in their siblings and adult children, who can bring in their siblings and in-laws, until whole villages have moved to the United States. That means today’s DACA recipients would quickly become millions of newcomers, who may well be low-skilled and who would almost certainly include the parents who brought them — the ones who, in theory, are at fault.

There are obvious, sensible ways to control these side effects. Pair any DACA recipient amnesty with a major upgrade to our system to prevent a new undocumented wave — such as a mandatory extension of E-Verify, the system that lets employers check on the legal status of hires. Curtail the right to bring in distant relatives. Sen. Tom Cotton, R-Ark., has proposed such a compromise — and it would be easy to compromise on his compromise, say by cutting back on chain migration only by the number of people that the new DREAM Act program adds to the citizenry. President Donald Trump could declare a one-time act of mercy for those who came here during the pre-Trump Era of Laxity, but make clear the game was changed for future entrants.

Why wouldn’t Democrats jump at such a deal? For years they’ve been touting “comprehensive immigration reform,” a mix of amnesty with stepped-up enforcement to prevent another surge of people entering the country illegally. But the DREAM Act is not comprehensive. It’s all amnesty, no prevention — let alone any compensating reduction in legal inflows. It’s hard to avoid the thought that Democrats (and Republicans who support the DREAM Act ) aren’t really interested in preventing illegal inflows. They’re not inclined to take Cotton up on his deal because they don’t think they have to.

If they win, we’ll get the compassion without dealing with its consequences. That would be especially unfortunate given the signs that Trump’s immigration crackdown, simply stepping up enforcement of current laws, is already helping to tighten the low end of the labor market and boost wages of low-skilled workers. News organizations are featuring stories from employers who aren’t getting their usual supply of workers in the U.S. illegally and are forced to take radical measures — such as raising wages. Proof of this connection, in the public mind, may be what terrifies the pro-immigration lobby the most.

The Washington Post

Mickey Kaus, the author of “The End of Equality,” writes at http://www.kausfiles.com.

http://www.chicagotribune.com/news/opinion/commentary/ct-perspec-dreamers-daca-narrative-0914-story.html

 September 14

 

It seems like only about a week ago that the White House issued a statement from President Trump arguing that the Deferred Action for Childhood Arrivals program should be ended because, Trump argued, it encouraged illegal immigration and hurt salaries and job prospects for American citizens.

In fact, it was only about a week ago. On Sept. 5, Trump’s attorney general argued that the program — which allows some of those who immigrated to the country illegally as minors to live and work legally in the country — should be ended. The White House issued a statement from Trump bolstering Jeff Sessions’s arguments. The administration sent out talking points encouraging those in the program to use the six months before it ended to prepare to leave the country.

Even that afternoon, however, Trump seemed conflicted. A bit over a week later, his position on DACA has apparently flipped entirely.

Does anybody really want to throw out good, educated and accomplished young people who have jobs, some serving in the military? Really!…..

…They have been in our country for many years through no fault of their own – brought in by parents at young age. Plus BIG border security

There’s a question embedded in those tweets: Who could possibly want to toss these immigrants out of the country (except for the White House a week ago)? And the answer is: A large percentage of the people who elected Donald Trump.

Shortly before Election Day last year, American National Election Studies pollsters interviewed thousands of Americans about their views on a number of political issues, including the issues at the heart of DACA.

What should happen to those who immigrated illegally as children but who met the criteria of the program, the pollsters asked. Most Americans — including most Republicans and Trump voters — thought they should be allowed to stay and work in the country.

Nearly a fifth of Americans, though, thought that those immigrants should be “sent back where they came from” — a percentage powered by nearly 3-in-10 Republicans holding that position.

What’s most important to note in that graph are the last two numbers. Thirty-two percent of Trump general-election voters thought that DACA recipients should be deported. This isn’t a big surprise: Nearly a fifth of Trump voters in November thought that immigration was the most important issue facing the country, according to exit polls.

But notice that the 32 percent of Trump voters supporting deportation is significantly lower than the 40 percent of Trump primary voters who hold that position. Trump’s primary voters — the core base of support that powered him to the Republican nomination and then the presidency — is more supportive of deporting DACA recipients than anyone else.

We’ve made this argument before, but it bears repeating. A hard line on immigration was central to Trump’s candidacy. His comments about Mexican immigrants “bringing crime” and being “rapists” at his campaign launch spurred a public backlash that, in turn, drew a lot of attention to his campaign and his position on immigration — a position that appealed to a lot of conservative voters but which was anathema to mainstream Republicans. The controversy over immigration allowed him to cement the support of a big chunk of the Republican electorate — a chunk large enough to vault him into the lead in the crowded field and, eventually, push him to the nomination.

Marco Rubio would keep Barack Obama’s executive order on amnesty intact. See article. Cannot be President.

http://www.breitbart.com/big-government/2015/11/02/marco-rubio-jorge-ramos-will-keep-obamas-first-executive-amnesty-place-legislative-amnesty-enacted/ 

Photo published for Marco Rubio To Jorge Ramos: I Will Keep Obama's First Executive Amnesty In Place Until Legislative...

Marco Rubio To Jorge Ramos: I Will Keep Obama’s First Executive Amnesty In Place Until Legislative…

“I think it will have to end at some point and I hope it will end because of some reform to the immigration laws,” Rubio said.

breitbart.com

Perhaps Trump is making a more nuanced case reflecting the evolution he himself seems to have gone through over the past week: Once people get to know these kids, to think about the issue in a broader context, they’ll change their minds. Given how fervent opposition to illegal immigration is among a number of conservatives, though, it seems unlikely that those views would shift simply because Trump’s position has. Trump once said that he “could stand in the middle of Fifth Avenue and shoot somebody” without losing any support. That argument has proven to be sound repeatedly. But it’s not clear if Trump could stand in the middle of Fifth Avenue and safely grant residency status to an immigrant here illegally.

Trump expressing bafflement that anyone could want to deport DACA recipients is, in a sense, like Trump wondering aloud if there were actually people who would have supported Trump in July 2015. Trump’s presidency was built on the people who Trump now speculates couldn’t possibly exist.

No wonder those people are now angry.

https://www.washingtonpost.com/news/politics/wp/2017/09/14/you-asked-if-anyone-wants-to-deport-dreamers-president-trump-yes-your-base/?utm_term=.e16b3e26390d

Trump vows to work with Dems to legalize Dreamers, says ‘the wall will come later’

 – The Washington Times – Thursday, September 14, 2017

President Trump said Thursday that he is working with Democratic leaders on a plan to legalize illegal immigrant Dreamers, and said he won’t insist on funding his border wall as part of it, saying that “will come later.”

The president also said GOP leaders in Congress are “very much on board” the deal he’s working with Senate Minority Leader Charles E. Schumer and House Minority Leader Nancy Pelosi.

The two Democrats emerged from a working dinner at the White House Wednesday to say they’d all reached a framework, which would speed a bill to grant Dreamers full legal status, coupled with more border security. But they said the president agreed the wall wouldn’t be part of that security.

White House press secretary Sarah Sanders disputed that version later Wednesday, but Mr. Trump on Thursday agreed with the Democrats’ reading, saying that the wall will not be part of the deal.

“The wall will come later, we’re right now renovating large sections of wall, massive sections, making it brand new,” he said as he departed the White House en route to Florida, where he was to look at hurricane recovery efforts.

Mr. Trump said he will insist on “massive border controls” as part of the Dreamer bill.

http://www.washingtontimes.com/news/2017/sep/14/donald-trump-vows-work-democrats-legalize-dreamers/

‘If we don’t have the wall, we’re doing nothing’: Trump says there WILL eventually be a border wall and there won’t be amnesty for Dreamers

  • Democrats Chuck Schumer and Nancy Pelosi claimed after a dinner at the White House with the president that a DACA deal had been done
  • They said  that Trump agreed to enshrine protections for 800,000 illegal immigrants, aka Dreamers, in a border security package ‘excluding the wall’ 
  • White House press secretary Sarah Sanders later said that there was no agreement on the wall during the meeting
  • President Trump said the same thing in a string of tweets on Thursday morning
  • ‘No deal was made last night on DACA. Massive border security would have to be agreed to in exchange for consent. Would be subject to vote,’ he said 
  • Follow up message: ‘The WALL, which is already under construction in the form of new renovation of old and existing fences and walls, will continue to be built’
  • Trump again pushed Congress to pass legislation protecting the immigrants – but said he wanted ‘BIG border security’
  • As he left the White House, Trump admitted he was ‘fairly close’ to reaching a deal with Democrats that excluded the wall and GOP leader are ‘on board’
  • Pelosi and Schumer released a statement around the same time saying the president’s tweets were not inconsistent with what they said 
  • When he landed in Florida Trump clarified that there will be a wall, just later, when he’s ready for it – and there won’t be amnesty for illegal immigrants 

President Donald Trump says he expects funding for his border wall to pass when he’s ready for it or Republicans will become the obstructionists in Congress.

‘Ultimately, we have to have the wall. If we don’t have the wall, we’re doing nothing,’ Trump reporters from the tarmac when he landed in Florida for a briefing on Hurricane Irma this morning.

The president also denied that he was giving ‘amnesty’ to illegal immigrants who came to the U.S. as children as part of an agreement he’s working on with Democrats.

‘We’re not looking at citizenship. We’re not looking at amnesty. We’re looking at allowing people to stay here. We’re working with everybody, Republican, we’re working with Democrat,’ Trump stated.

President Donald Trump says he expects funding for his border wall to pass when he's ready for it or Republicans will become the obstructionists in Congress. He talked to reporters from the tarmac in Florida

President Donald Trump says he expects funding for his border wall to pass when he’s ready for it or Republicans will become the obstructionists in Congress. He talked to reporters from the tarmac in Florida

His claim about citizenship directly contradicts what the leading House Democrat is saying about a conversation that took place over dinner last night at the White House.

Nancy Pelosi said at a news conference this morning Democrats and Trump have an ‘understanding’ and that people under the DACA program would get a path to citizenship. 

‘It’s in the DACA bill,’ Pelosi said. ‘The path to citizenship … they get way at the end of the line of people who’ve been here fully documented…Just in terms of timing it’s a long way down the road,’ she said.

The president admitted earlier on Thursday as he left the White House for the daylong trip that he discussed a deal with Pelosi and Senate Democratic leader Chuck Schumer to protect illegal immigrants who came to the U.S. as minors from deportation and fund some border security enhancements but not a wall.

Citizenship did not come up in the original dispute. The part of the conversation the White House was quibbling with was about the border wall.

After claiming in early morning tweets that ‘no deal’ had been reached, Trump told reporters awaiting his departure that he was ‘fairly close’ to hammering out an agreement that mirrors the one his White House smacked down last night as a false negotiation.

‘We’re working on a plan for DACA. People want to see that happen. You have 800,000 young people brought here, no fault of their own, so we’re working on a plan, we will see how it works out. But we are going to get massive border security as part of that, and I think something can happen,’ Trump said over the roar of Marine One.

The president explicitly said, ‘The wall will come later.’ He also claimed that House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell are ‘on board’ with the DACA deal he hammered out last night at a private meeting with Democrats.

‘The wall is going to be built, and it will be funded later,’ he asserted.

Trump admitted Thursday as he left the White House for a daylong trip to Florida that he discussed a deal with Democrats to protect illegal immigrants who came to the U.S. as minors from deportation and fund some border security enhancements but not a wall

Trump admitted Thursday as he left the White House for a daylong trip to Florida that he discussed a deal with Democrats to protect illegal immigrants who came to the U.S. as minors from deportation and fund some border security enhancements but not a wall

Trump explained in Florida that funding for the wall would not be a part of the immigration and border security package that’s in the works on Capitol Hill. It’s part of a separate set of budget and spending priorities his administration sent to Congress.

The president said he anticipates that a DACA deal will come to fruition in the next six months, although there is not one now, clarifying a disagreement that erupted last night and has sucked in all of Washington.

After Democratic leaders sent out a statement last night saying they ‘agreed’ with the president on a border package that doesn’t include the wall, news outlets reported that Trump struck a deal with the opposing party and caved on one of his top campaign priorities.

The statement did not say there was a ‘deal.’ It referred to an agreement, though, creating mass confusion about what had actually happened. The White House added to the chaos by claiming in a tweet that Trump did not agree to exclude funding for the border wall from a DACA and border security package.

Except that he did, as acknowledge himself today.

‘It doesn’t have to be here,’ he said of the DACA and border security package, ‘but they can’t obstruct the wall if its in a budget or anything else.’

 The president indicated then that Pelosi and Schumer’s original statement was not inaccurate, it had just been misinterpreted. 

‘There was no deal and they didn’t say they had a deal…they didn’t say that at all,’ he stated.

A debacle for both sides, the DACA ‘deal’ became a major distraction for Trump as he prepared to leave Washington for Florida to survey the damage caused by Hurricane Irma.

Trump said in this early morning tweets that ‘massive border security’ adjustments would have to be on the table for him to make a handshake agreement with Democrats.

‘No deal was made last night on DACA. Massive border security would have to be agreed to in exchange for consent. Would be subject to vote,’ he said in back to back messages. ‘The WALL, which is already under construction in the form of new renovation of old and existing fences and walls, will continue to be built.’

Schumer, the top Senate Democrat, and Pelosi, the head Democrat in the House, said in a joint statement at roughly the same time as Trump was speaking to the press at the White House that his tweets were not inconsistent with what they’d claimed in the Wednesday evening statement.

They said last night after a White House dinner that an agreement had been brokered that would protect the 800,000 immigrants who benefited from former President Barack Obama’s Deferred Action for Childhood Arrivals, or DACA, program.

Trump had put the program on a six-month sunset and urged Congress to pass legislation in that window to keep Dreamers, as they are called, in the U.S. permanently.

The Democratic statement said that Trump agreed to set aside the border wall as part of an agreement to keep Dreamers from being deported.

Hours later, as he spoke to reporters as the White House, Trump seemed to confirm what Pelosi and Schumer had said.

‘We want to get massive border security, and I think that both Nancy Pelosi and Chuck Schumer, I think they agree with it,’ Trump posited. ‘So we met last night, with, as you know, Schumer, Pelosi and a whole group. I think we’re fairly close but we have to get massive border security. ‘

Trump said he’d spoken to McConnell and Ryan since, and they had no qualms with the package that’s under development.

Oh I think he’s on board, yeah, Mitch is on board. Paul Ryan’s on board. We all feel, look, 92 percent of the people agree on DACA, but we want, is we want very, very powerful border security,’ Trump said.

President Donald Trump says he did not make a deal with Democratic leaders to protect illegal immigrants who came to the U.S. as minors from deportation and fund some border security enhancements but not a wall 

President Donald Trump says he did not make a deal with Democratic leaders to protect illegal immigrants who came to the U.S. as minors from deportation and fund some border security enhancements but not a wall

Schumer and Pelosi more or less agreed with Trump’s take on the meeting in a joint statement that hit inboxes as he was talking.

‘President Trump’s Tweets are not inconsistent with the agreement reached last night. As we said last night, there was no final deal, but there was agreement on the following:

‘We agreed that the President would support enshrining DACA protections into law, and encourage the House and Senate to act.

‘What remains to be negotiated are the details of border security, with a mutual goal of finalizing all details as soon as possible. While both sides agreed that the wall would not be any part of this agreement, the President made clear he intends to pursue it at a later time, and we made clear we would continue to oppose it.

‘Both sides agreed that the White House and the Democratic leaders would work out a border security package. Possible proposals were discussed including new technology, drones, air support, sensor equipment, rebuilding roads along the border and the bipartisan McCaul-Thompson bill.’

Pelosi vouched later at a press conference in the Capitol for the president’s overall sincerity, as well.

‘When we’re talking about this legislation to protect the DREAMers, yes I do trust that the president is sincere in understanding that the public supports that overwhelmingly, the public supports not sending these young people back,’ Pelosi said.

It’s the second time in two weeks that Trump has met with Pelosi and Schumer to talk about a deal with the potential to anger conservatives. The first time he met with them Ryan and McConnell were present. The meeting ended with a firm agreement to move forward with a three-month extension of government funding and the debt limit.

Importantly, the deal provided immediate aid to areas affected by Hurricane Harvey.

A joint Democratic statement that hit inboxes at 9:45 pm last night that began the brouhaha over DACA and the border wall said Pelosi and Schumer had a ‘very productive meeting at the White House with the President’ once again.

‘The discussion focused on DACA. We agreed to enshrine the protections of DACA into law quickly, and to work out a package of border security, excluding the wall, that’s acceptable to both sides.’

At 10:21 pm, White House Press Secretary Sarah Huckabee Sanders said they were mistaken.

‘While DACA and border security were both discussed, excluding the wall was certainly not agreed to,’ she tweeted.

Trump followed up in a series of tweets this morning that suggested the joint statement was wrong, too. He defended the Dreamers again – yet said ‘no deal’ had been made.

‘Does anybody really want to throw out good, educated and accomplished young people who have jobs, some serving in the military? Really!’ he said. ‘They have been in our country for many years through no fault of their own – brought in by parents at young age. Plus BIG border security.’

The DACA program provides two-year work permits and protection from deportation to its 800,000 recipients.

Trump said he was ending the program this month and giving Congress six months to come up with a legislative fix before DACA paperwork begins to expire.

Conservatives were quick to point out that previous amnesty deals did not end with immigration overhaul like the one Trump has been pushing.

‘Reagan led with Amnesty, 1986. Bush 43 led with Amnesty ’06, Obama led with Amnesty ’13. All failed so…Trump leads with DACA Amnesty 2017,’ Iowa Rep. Steve King tweeted.

A joint Democratic statement said that Trump agreed to set aside the border wall as part of the agreement. The White House spokeswoman immediately slapped the claim down

A joint Democratic statement said that Trump agreed to set aside the border wall as part of the agreement. The White House spokeswoman immediately slapped the claim down

The deal announced by Senate Democratic Leader Chuck Schumer and House Democratic Leader Nancy Pelosi (picturd on Wednesday) following a White House dinner would enshrine protections for the nearly 800,000 immigrants brought illegally to this country as children

The deal announced by Senate Democratic Leader Chuck Schumer and House Democratic Leader Nancy Pelosi (picturd on Wednesday) following a White House dinner would enshrine protections for the nearly 800,000 immigrants brought illegally to this country as children

The White House initially said the president had had 'a constructive working dinner' with Schumer (pictured), Pelosi and administration officials

The White House had initially claimed that the president had had ‘a constructive working dinner’ with Schumer, Pelosi and administration officials ‘to discuss policy and legislative priorities’ such as DACA.

‘This is a positive step toward the President’s strong commitment to bipartisan solutions for the issues most important to all Americans,’ the White House said.

During a White House meeting earlier in the day with Republicans and Democrats, Trump brought DACA back to the forefront of the discussion.

‘We don’t want to forget DACA,’ Trump said. ‘We want to see if we can do something in a bipartisan fashion so that we can solve the DACA problem and other immigration problems.’

Trump has called Schumer a ‘clown’ and a ‘loser’ in the past, but has turned to the fellow New Yorker more recently to help break through congressional gridlock.

‘More and more we’re trying to work things out together,’ Trump said Wednesday. ‘If you look at some of the greatest legislation ever passed, it was done on a bipartisan manner. And so that’s what we’re going to give a shot.’

White House Press Secretary Sarah Huckabee Sanders said earlier Wednesday that Trump was 'committed to the wall. It doesn't have to be tied to DACA but its important and he will get it done'

White House Press Secretary Sarah Huckabee Sanders said earlier Wednesday that Trump was ‘committed to the wall. It doesn’t have to be tied to DACA but its important and he will get it done’

Trump (pictured on Wednesday) ended the DACA program earlier this month and had given Congress six months to come up with a legislative fix before the statuses of the so-called 'Dreamers' begin to expire

Trump (pictured on Wednesday) ended the DACA program earlier this month and had given Congress six months to come up with a legislative fix before the statuses of the so-called ‘Dreamers’ begin to expire

Sanders said Wednesday that Trump was ‘committed to the wall’ while acknowledging that ‘it doesn’t have to be tied to DACA.’

‘But it’s important and he will get it done,’ she said.

Ryan, the House speaker, told AP Wednesday during an interview that deporting Dreamers was ‘not in our nation’s interest.’ Trump was right to include a six-month sunset in his DACA termination orders.

‘I wanted him to give us time. I didn’t want this to be rescinded on Day One and create chaos,’ Ryan said. Congress how has time to ‘come up with the right kind of consensus and compromise to fix this problem.’

At a news conference on Thursday afternoon, Ryan reiterated his position on a DACA fix.

McConnell said in a paper statement that he and his colleagues ‘look forward’ to Trump’s proposal.

‘As Congress debates the best ways to address illegal immigration through strong border security and interior enforcement, DACA should be part of those discussions. We look forward to receiving the Trump administration’s legislative proposal as we continue our work on these issue,’ the senator said.

http://www.dailymail.co.uk/news/article-4882526/Trump-agrees-deal-Democrats-protect-immigrants.html#ixzz4sgM3IU7l

 

Cruz Is Far Tougher On Illegal Aliens Than Trump, Who Supports “Touchback” Amnesty

In the 2016 GOP primaries, Donald Trump has positioned himself as a hardliner on immigration. The general consensus is that no one is tougher on illegal aliens than Donald Trump. But is that actually the case?

While Trump would work diligently to deport all illegal immigrants-he has even proposed creating a “deportation force”-most would be surprised to learn that he would welcome the non-violent, “good” ones back in on an expedited basis. An expedited basis means line-cutting, and line-cutting means amnesty.

Trump’s specific plan-deportation before amnesty-is known as “touchback” amnesty, which was first proposed in 2007 by some members of Congress but failed after strong opposition from conservatives.

Marc Thiessen has written about it here, and also explains it below:

“My position is very simple. I oppose amnesty. I oppose citizenship. I oppose legalization … Today, tomorrow, forever. I believe in the rule of law.”

Cruz recently made note of the difference between his position and Trump’s:

Some Trump supporters will say that Cruz flip-flopped on a legal status-although Cruz insists that he was inserting a poison pill into the Gang of Eight bill.

If we are going to consider past positions, we can’t forget that Trump said in 2012 that Mitt Romney’s plan for self-deportation was “maniacal” and “mean-spirited.” And in 2013, Trump told a group of DREAMers that they had “convinced” him.

Ultimately voters will have to ask themselves whose immigration policy they prefer, and which candidate they trust.

https://www.redstate.com/diary/southernconstitutionalist/2016/01/11/cruz-far-tougher-illegal-aliens-trump-supports-touchback-amnesty/

 

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The Pronk Pops Show 915, June 20, 2017, Story 1: Will Congress Celebrate Independence Day July 4 By Passing Tax Reform And Repealing Obamacare? — Videos — Story 2: President Trump Flip Flopping On Immigration Law Enforcement By Not Terminating DACA Now! — Failing To Rollback The 30-60 Million Illegal Alien Invasion of The United States By Deporting Them All — Must Go After Employers Hiring Illegal Aliens — Videos — Story 3: More Mueller Milking The American Taxpayers Hires More Lawyers — Trump Should Fire Them All Now — Enough Is Enough — Videos

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Story 1: Will Congress Celebrate Independence Day July 4 By Passing Tax Reform And Repealing Obamacare? — Videos —

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Story highlights

  • Republicans met Tuesday to discuss health care legislation
  • Disagreements in the party have led a host of senators to declare the legislation is in trouble

Washington (CNN)The Senate may vote on health care legislation by July 4, Senate Majority Leader Mitch McConnell told President Donald Trump Tuesday afternoon at a White House meeting with congressional leaders.

McConnell said he expects the Congressional Budget Office will soon score the Senate’s version of the bill, which continues to be negotiated behind closed doors among Republicans, a source with direct knowledge of what was discussed at the meeting told CNN.
He did not set a firm deadline for the vote, but Republicans are impatient with the lack of progress and political quicksand the bill is creating and want the Senate to either act quickly on health care or move on to other business.
“We had a good, productive meeting with President Trump, Vice President Pence, and congressional leadership,” McConnell and House Speaker Paul Ryan said in a joint statement after the meeting. “The discussion focused on the continued progress of our shared legislative agenda and how we can accomplish our goals.”
After weeks of discussions about how to move forward in a small working group, Republican senators were briefed at a lunch Tuesday on what their options are to repeal and replace Obamacare and warned that the time is quickly approaching for decisions to finally be made.
“The time is now,” a Senate aide involved in discussions said. “We either go or we don’t.”
The aide said this is the natural point the chamber was bound to get to. The working group has spent several weeks tossing around ideas, but with conservatives and moderates still starkly divided on the best way to proceed, it’s time for leadership to make the call.
According to Senate aides, during the meeting leadership tried to make it clear that lawmakers need to show their cards and decide if they are going to get behind repealing Obamacare — a campaign promise that ultimately launched them to win back the majority in the House and the Senate in recent years.
“Leadership is stepping in now and making clear that this is what they all campaigned on, so they need to go now or move on,” the aide said.
Senators are clearly impatient.
Sen. Lindsey Graham, a Republican from South Carolina, asked if there would be a vote on the health care bill by July 4 said “there better be.”
“‘Cause this is not like fine wine, it doesn’t get better with age,” he added with a laugh.
“We’re at decision time,” a congressional aide close to the health care conversation said. “Decisions have to start being made in order to get the package ready.”
During their lunch Tuesday, Republicans were presented with a PowerPoint and a menu of options to overhaul Obamacare. But lawmakers emerging from the room were tight-lipped about what exactly is on the table. Key questions remain about how the GOP will phase out Medicaid expansion as well as how they will structure tax credits to help Americans purchase their health insurance under a Republican health care plan.
Sen. Dean Heller, a Republican from Nevada who is up for re-election in 2018, said he was still looking at the proposals and what he could support.
“The big print giveth. The small print taketh away. I’m waiting for the small print at this point,” Heller said.
“I’m not going to go into details. There’s been a lot of work done and we see where we go from here,” said moderate Maine Republican Sen. Susan Collins.
Sen. Rob Portman, an Ohio Republican who has been a fierce advocate of more slowly phasing out Medicaid expansion than the House’s repeal bill did, said the health care bill “needs some work still for me.”

Sticking points: Medicaid, tax credits

Most members wouldn’t get into details about what actually is on the table, but they were honest that there are still sticking points here that have to be resolved.
“They laid out the goals and then different ideas on how we achieve them and we are working on how to build consensus to get to the right mix on 50-plus votes,” said North Dakota Sen. John Hoeven.
Lawmakers remain split over what to do about Medicaid. The House bill would eliminate enhanced federal funding for Medicaid expansion in 2020 and curtail support for the program overall. Moderates like Portman have advocated to phase out funding to cover low-income adults under Medicaid expansion more gradually. Conservatives like Pennsylvania’s Pat Toomey want to shrink federal responsibility for the overall program even more that the House bill does by restructuring the growth rate for Medicaid funding.
The House plan would give states a set amount of money each year to cover their Medicaid enrollees. The funding level would increase annually based on the medical inflation rate in the Consumer Price Index, which grows more quickly than the standard inflation rate. Toomey argues that using the growth rate of medical care spending would lead to an unsustainable Medicaid program, so he advocates for tying Medicaid funding increases to the standard inflation rate instead.
Other options that are on the table include how to structure tax credits. Unlike the House’s health care repeal bill, which based the tax credits mainly on age, Senate Republicans have suggested tying them to income and even geographic location in order to make health care more affordable for low-income individuals living in areas that have expensive health care costs such as Alaska and rural America.
“There should be,” Republican Sen. Lisa Murkowski told reporters. “Alaska is an extreme outlier and part of it is just our geography, it’s our low-density population so if there is not some kind of geographic cost adjustor it makes it tough for me.”
However, adjusting the tax credits for income and geographic location would make them even more similar to Obamacare’s premium subsidies, which are tax credits based on income and cost of coverage in one’s area. Conservatives are sure to oppose this idea. Several, including Sen. Rand Paul of Kentucky, have said the House GOP tax credits already are too much like Obamacare’s subsidies.

Freedom Caucus crafting tax reform plan

05/04/2017 05:21 PM EDT

Updated 05/04/2017 08:08 PM EDT

The caucus, which roiled the Republican effort to repeal and replace Obamacare, would be parachuting in to what promises to be another pitched battle over the Republicans’ next marquee issue. Though it doesn’t have an official line yet on tax reform, members appear to be more aligned with the Trump administration than House Republican leaders on how deep tax cuts should be, if they need to be offset and whether to include a controversial import tax.

Mark Sanford, a caucus member from South Carolina, told POLITICO he is already identifying areas of disagreement with the House leaders’ tax plan. The health care bill that passed Thursday proved better for conservatives, Sanford said, so they’re aiming to have greater influence on the tax reform process from the beginning.

“Rather than react, then stop something, and then go in fits and starts forward, we can constructively engage at the front end and say this is more of what we believe,” he said. “Let’s … avoid the kind of dislocation that we saw in this particular [health care] bill about a month ago.”

The principles outlined recently by President Donald Trump pulled the Freedom Caucus off the sidelines, Mark Meadows (R-N.C.), its leader, said.

“We’re looking at President Trump’s tax reform plan to see how we can maybe put some legislative text to that to come alongside the administration,” Meadows said, “and hopefully agree more than we disagree and move what he proposed in those bullet points the other day. We’ve got guys working on that.”

“I think we’re going to try to have a lot of different ideas and hopefully we can have our input with Ways and Means,” he said, referring to the House tax-writing committee.

The group isn’t ready to roll out paper just yet.

Freedom Caucus members are awaiting a budget plan and reconciliation instructions, a budget tactic that will allow Republicans to circumvent a Democratic filibuster in the Senate, said Jim Jordan (R-Ohio), and then they’ll settle more details on a tax bill.

Already, though, there are signs that the caucus will nudge tax reform in Trump’s direction.

Trump has proposed a much lower business tax rate – 15 percent across-the-board – than House Republican leaders, and Meadows has said lower taxes are paramount. (Trump and the GOP leaders are closer on proposed rate cuts for individuals.)

Jordan would prefer that the Freedom Caucus plan not include the “border adjustment” import tax pushed by Speaker Paul Ryan and Ways and Means Chairman Kevin Brady (R-Texas). Border adjustment, which has sharply divided the business community, is a sticking point among Republicans, and Trump has been wary of the idea.

Other Freedom Caucus members have also been outspoken against border adjustment.

“A number of folks have registered grave concerns with the border adjustment tax in the way that it opens up a new revenue source for the federal government,” Sanford said.

Like Jordan, Sanford said the government needs to slash spending. Lowering overall outlays would help cover some of the cost of tax cuts, which Meadows said shouldn’t require a pay-for.

The resulting economic growth should also make up for not bringing in revenue equal to current levels, Meadows said.

“Revenue neutral is a fancy way of saying the tax burden stays the same, but you just shift around who pays what,” Jordan said. “Typically in that scenario, the connected class gets a good deal and the middle class gets a bad deal, so I’m not wedded to this revenue-neutral thing at all.”

That also aligns those caucus members with the White House. While Brady and Ryan have offered pay-fors, including the border adjustment provision, Treasury Secretary Steven Mnuchin has repeatedly said tax reform will “pay for itself” by unleashing economic growth.gns him with the White House, while Brady and Ryan have offered pay-fors.

http://www.politico.com/story/2017/05/04/freedom-caucus-tax-reform-plan-238003

Story 2: President Trump Flip Flopping On Immigration Law Enforcement By Not Terminating DACA Now! — Failing To Rollback The 30-60 Million Illegal Alien Invasion of The United States By Deporting Them All — Must Go After Employers Hiring Illegal Aliens — Videos —

Donald Trump’s Immigration Plan – Deport and then Mass Expedited Amnesty

How to solve the illegal immigration problem

Donald Trump on Immigration – Does He Favor An Amnesty?

Trump’s Touchback amnesty explained by Marc Thiessen

Rep Steve King discusses Trump’s touchback amnesty

Donald Trump is for Touchback Amnesty and not to be trusted on Illegal Immigration!

Trump Breaks MAJOR Campaign Promise By Backing DACA Amnesty Program

The Future of DACA and Dreamers still uncertain under President Trump

Marco Rubio: DACA has to End, It’s Unconstitutional

Trump just revoked an Obama amnesty program for illegal aliens

Trump Admin Rescinds DAPA Amnesty Program

125,000 ‘DACA’ Illegals Immigrants Got Work Permits Since President Trumps Inauguration!!!

Trump goes back on promise to ‘terminate’ DACA

This is what’s going on with DAPA and DACA

Trump Keeps DACA: Who Gets to Stay in the US, Who’s Left Out in the Cold

Trump’s Stance on DACA Has Immigration Hardliners Concerned

Ann Coulter: Trump better keep his promises

Trump will allow ‘DREAMers’ to remain in the US, for now

Ann Coulter Argues Eloquently Against Destroying America With Immigrants

Ann Coulter vs. media myths on immigration

Laura Ingraham – Analysis of illegal immigrants crossing the border

Published on Jun 2, 2015

How Many Illegal Aliens Are in the US? – Walsh – 1

How Many Illegal Aliens Are in the US? – Walsh – 2

Immigration by the Numbers — Off the Charts

6 Things To Know About Trump’s Reversal On ‘Dreamers’ June 16, 2017 4:38 PM ET

President Trump has reversed himself on one key campaign promise on immigration — and kept another.

The Department of Homeland Security says it will preserve, for now, an Obama administration program known as Deferred Action for Childhood Arrivals, or DACA. It’s the most explicit statement yet that the Trump administration will not seek to deport the so-called “Dreamers” who were brought to the U.S. illegally as children.

At the same time, Homeland Security Secretary John Kelly officially revoked another program that might have protected some of their parents from deportation.

Then-candidate Trump promised to get rid of both programs during last year’s campaign, saying “we will immediately terminate President Obama’s two illegal executive amnesties” during a major immigration speech in August 2016.

But his position on so-called “Dreamers” has been shifting since the election. Here’s where it stands now and what that could mean for “Dreamers” and their parents.

1. What did the Trump administration just do?

In a FAQ posted on its web site Thursday night, the Department of Homeland Security says current DACA recipients “will continue to be eligible for renewal,” and that DHS will continue to abide by “the terms of the original DACA program” as outlined by the Obama administration on June 15, 2012.

The Obama-era memo, issued five years ago this week, lays out who is eligible for DACA. It’s also what protects people who signed up for the program from deportation, and allows them to apply for work permits.

2. Does this go beyond what President Trump had said before?

Shortly after his inauguration, President Trump told ABC that DACA recipients “shouldn’t be very worried.”

“I do have a big heart. We’re going to take care of everybody,” he told ABC. “But I will tell you, we’re looking at this, the whole immigration situation, we’re looking at it with great heart.” Trump suggested that a new DACA policy would be forthcoming, but did not clarify what it was.

3. Is this a victory for immigrant rights activists?

Not exactly. It’s clearly a relief for some of the roughly 800,000 people who’ve signed up for DACA. As the fifth anniversary of the program approached, there were fears that the Trump administration might abolish it altogether.

“It is an important win for those 800,000 individuals,” says Muzna Ansari, immigration policy manager at the New York Immigration Coalition. “But in the grand scheme of things, there are 11 million undocumented immigrants living in this country, who have really been living in fear” under the Trump administration.

4. How do President Trump’s supporters feel about it?

Some are deeply disappointed. Others are willing to give the president the benefit of the doubt because his administration has been aggressively cracking down on illegal immigration across the board.

“He broke the DACA promise,” says Dan Stein, president of Federation for American Immigration Reform, which advocates for lower immigration levels. “Are we happy about it? No,” Stein said. “We think they should have allowed the work authorizations to expire. End of story, full stop.”

But Stein is taking the long view. He says the White House may want to use the DACA program as a bargaining chip in negotiations with Congressional Democrats on a broader immigration reform package.

5. What is DAPA, and how does it fit in?

DAPA is shorthand for Deferred Action for Parents of Americans and Lawful Permanent Residents. It’s another Obama-era program that would have extended protection from deportation even further. It was designed for the parents of U.S. citizens and legal residents who were themselves living in the U.S. illegally.

But it was quickly blocked by the courts, and never implemented.

DHS officially revoked DAPA on Thursday. But that was not a big surprise, since no one expected the Trump administration to defend the program in court, as the Obama administration had.

6. Is this a final decision on the future DACA?

In a word, no.

The White House and the Department of Homeland Security have been emphasizing that this is not a permanent decision, and that president could still change his mind and revoke that program, too.

But for now, the administration continues to accept new DACA applications. And DHS says that “no work permits will be terminated prior to their current expiration dates.”

http://www.npr.org/2017/06/16/533255575/trump-allows-dreamers-to-stay-removes-protections-for-parents

Trump: Illegal “Dreamers” Will Not Be Targets For Deportation

He flips. He flops.

I’m actually fine, as my expectations for Trump were basement-level, anyway. His adoring nationalists and assorted MAGA trolls might be a bit chaffed by this, however.

Then again, when you have no principles, you’ll swallow anything.

The AP featured an extensive interview with President Trump today, and he revealed his “evolving” views on foreigners who break the laws of a sovereign nation.

 Young immigrants brought to the U.S. illegally as children can “rest easy,” President Donald Trump said Friday, telling the “dreamers” they will not be targets for deportation under his immigration policies.

As a candidate, Trump strongly criticized President Barack Obama for “illegal executive amnesties,” including actions that allowed young people brought to the country illegally as children to be spared from deportation. But after the election, Trump started speaking more favorably about these immigrants, popularly dubbed “dreamers.”

On Friday, he said that when it comes to them, “This is a case of heart.”

Wait. What changed?

Jim Jamitis

He won, so no need to play the role. Got it.

This is actually a dramatic departure from Trump’s campaign rhetoric. He was going to deport, then build a great wall.

Of course, over time, it began to take on more nuance.

It would be a big, beautiful wall, with a big beautiful door.

Then, maybe deals could be made on a case-by-case basis.

As for the wall, the price tag is growing and we still don’t know who is paying for it. We know Mexico won’t.

The president, who took a hard line on immigration as a candidate, vowed anew to fulfill his promise to construct a wall along the U.S.-Mexico border. But he stopped short of demanding that funding for the project be included in a spending bill Congress must pass by the end of next week in order to keep the government running.

“I want the border wall. My base definitely wants the border wall,” Trump said in the Oval Office interview. Asked whether he would sign legislation that does not include money for the project, he said, “I just don’t know yet.”

He really needs to stop talking about a wall and focus more on the strategic fencing, boots on the ground, and drones flying along the border to monitor activity.

That, at least sounds like a workable plan, and would likely cost quite a bit less than the unworkable wall he’s promising.

http://www.redstate.com/sweetie15/2017/04/21/trump-illegal-dreamers-will-not-targets-deportation/

WASHINGTON — President Trump will not immediately eliminate protections for the so-called Dreamers, undocumented immigrants who came to the United States as small children, according to new memorandums issued by the administration on Thursday night.

But White House officials said on Friday morning that Mr. Trump had not made a decision about the long-term fate of the program and might yet follow through on a campaign pledge to take away work permits from the immigrants or deport them.

The Department of Homeland Security announced that it would continue the Obama-era program intended to protect those immigrants from deportation and provide them with work permits so they can find legal employment.

A fact sheet posted on the department’s website says that immigrants enrolled in the 2012 program, known as Deferred Action for Childhood Arrivals, “will continue to be eligible” to renew every two years, and notes that “no work permits will be terminated prior to their current expiration dates.”

A news release from the department said flatly that “the June 15, 2012, memorandum that created the Deferred Action for Childhood Arrivals (DACA) program will remain in effect.”

But officials at the White House and the Department of Homeland Security said on Friday morning that those statements were intended only to clarify that immigrants enrolled in the DACA program would not immediately be affected by a separate action officially ending a similar program for undocumented immigrants whose children are citizens or legal permanent residents.

“There has been no final determination made about the DACA program, which the president has stressed needs to be handled with compassion and with heart,” said Jonathan Hoffman, the assistant secretary for public affairs at the department. He added that John F. Kelly, the secretary of Homeland Security, “has noted that Congress is the only entity that can provide a long-term solution to this issue.”

Immigration rights activists, who have fiercely battled Mr. Trump’s travel ban and increased enforcement of other immigration laws, initially hailed the announcement, calling it a surprising turn of events from Mr. Trump.

“This is a big victory for Dreamers amid months of draconian and meanspirited immigration enforcement policy,” said David Leopold, an immigration lawyer. “The preservation of DACA is a tribute to the strength of the Dreamer movement.”

But after the White House clarified its intent, activists expressed regret. Mr. Leopold said in a second statement that “it’s no surprise that Trump would quickly walk back the preservation of DACA.” He added that the administration was trying to “cynically pit 800,000 Dreamers against the rest of the 11 million undocumented immigrants.”

Cecilia Muñoz, who led President Barack Obama’s domestic policy council and oversaw immigration policy for the White House, said, “It is unfortunate that their status is still temporary, and their peace of mind not complete.”

A decision to maintain the DACA program would be a reversal from Mr. Trump’s anti-immigrant language during the campaign and would disappoint some of the president’s most ardent supporters, who view the program started by Mr. Obama as an illegal grant of amnesty.

During the campaign, Mr. Trump repeatedly agreed with that sentiment. At one rally last summer, Mr. Trump vowed to “immediately terminate” the program, saying that Mr. Obama had “defied federal law and the Constitution.”

But once in office, Mr. Trump faced a new reality: the political risks of targeting for deportation a group of people who are viewed sympathetically by many Americans. In some cases, the immigrants did not know they were in the country illegally. Many attended American schools from the time they were in kindergarten.

Asked repeatedly about his intentions for the program since he took office, the president has hinted that he would not try to deport the Dreamers. But immigration activists had remained worried that the administration might still eliminate the program.

On Friday, young immigrants who have gained legal status through the program were eager for clarity.

“My initial reaction was, ‘Well, what’s the catch?’” said Carlos Robles-Shanahan, 27, a business consultant in Chicago who is waiting for his deferred action status to be renewed. “It felt like it sounds too good to be true. If they gave us that, what did they take away?”

Born in Mexico, Mr. Robles-Shanahan and his two siblings followed their parents to the Chicago area in 2004, when they were children. He and his brother were arrested and detained by immigration officials while traveling to Boston by train in 2010, but were given a temporary reprieve from deportation. Joining the deferred action program two years later, he said, allowed him to obtain financial aid from his college, teach for a year through a fellowship, earn a master’s degree in public policy, get a white-collar job and buy a house for his mother.

“DACA changed a ton of stuff for me and my brother, exponentially,” he said. “It was like a switch.”

Mr. Robles-Shanahan recently married a United States citizen and has begun the process of applying for a green card, but fears that his ability to work and live in the country will be jeopardized if his deferred action status is not renewed.

Confirmation that the Trump administration planned to preserve the program would have given young immigrants some certainty that they could apply for deferred action or renew their status, said Rigo Rivera, 27, who crossed the Mexican border when he was 9 to join his parents in Alpharetta, Ga. Many have been afraid to apply for fear of putting their information in the hands of federal authorities.

“With Trump, we can expect anything. Tomorrow he can say that he wants to deport us,” he said. “I don’t know what to make of this, or what to believe.”

Mr. Rivera, a prep worker in a restaurant kitchen who also leads a group of young undocumented activists, received protected status in 2013, allowing him to obtain a driver’s license, a Social Security number and permission to work legally.

But he said he worried that he and other young immigrants in the program would not be protected from deportation even if Mr. Trump does not formally end DACA, because of several recent episodes in which people like him have been detained despite their participation in the program.

The announcement that the DACA program will continue for the time being, a decision that affects about 800,000 people in the United States, came as the administration formally ended Mr. Obama’s attempt to expand it to also cover the parents of Dreamers.

In 2015, Mr. Obama proposed an expansion of the program, called Deferred Action for Parents of Americans, which could have shielded as many as five million people from deportation and provided work permits to them as well.

That program was never put in place because a Texas court blocked it at the request of a coalition of 26 state attorneys general. The Supreme Court deadlocked, 4 to 4, on a challenge to that ruling, but the decision by the Trump administration officially ends the litigation.

Correction: June 17, 2017
An earlier version of this article, using information from a Department of Homeland Security news release and a separate fact sheet, referred incorrectly to the status of the Obama-era immigration program known as Deferred Action for Childhood Arrivals. The program is continuing for now; President Trump has not decided to keep it permanently, according to a clarification released by the administration. The headline repeated the error.
https://www.nytimes.com/2017/06/16/us/politics/trump-will-allow-dreamers-to-stay-in-us-reversing-campaign-promise.html

Deferred Action for Childhood Arrivals

From Wikipedia, the free encyclopedia

Deferred Action for Childhood Arrivals (DACA) is an Americanimmigration policy founded by the Obama administration in June 2012. DACA allows certain illegal aliens who entered the country as minors, to receive a renewable two-year period of deferred action from deportation and eligibility for a work permit.

The policy was created after acknowledgment that these illegal students had been largely raised in the United States, and was seen as a way to remove immigration enforcement attention from “low priority” individuals with good behavior.[1] The illegal alien student population was rapidly increasing; approximately 65,000 illegal alien students graduate from U.S. high schools on a yearly basis.[2]

From the start, the Pew Research Center estimated that up to 1.7 million people might be eligible.[3] As of June 2016, U.S. Citizenship and Immigration Services (USCIS) had received 844,931 initial applications for DACA status, of which 741,546 (88%) were approved, 60,269 (7%) were denied, and 43,121 (5%) were pending. Over half of those accepted reside in California and Texas.[4]

In November 2014, U.S. President Barack Obama attempted to expand DACA.[5] However, in December 2014, Texas and 25 other states, all with Republican governors, sued in the District Court for the Southern District of Texas asking the court to enjoin implementation of both the DACA expansion and Deferred Action for Parents of Americans (a similar program).[6][7][8] In February 2015, Judge Andrew S. Hanen issued a preliminary injunction blocking the expansion from going into effect while the case, Texas v. United States, proceeds.[9][10] After progressing through the court system, an equally divided (4-4) Supreme Court left the injunction in place, without setting any precedent.[11]

On February 14, 2017 a CNN report on the detention of 23-year-old Daniel Ramirez Medina in Northwest Detention Center,[12]Tacoma, Washington following his arrest in his father’s Des Moines, Washington home, observed that “The case raises questions about what it could mean” for the 750,000 Dreamers, who had “received permission to stay under DACA.”[12][13]

On March 7, 2017 the Los Angeles Times[14] reported that 22-year-old Daniela Vargas of Jackson, Mississippi became the second DACA recipient to be detained by the Trump Administration, further raising speculation about President Trump’s commitment to Dreamers and questioning whether immigrants who speak out against the administration’s policies should fear retaliation [1].

Vargas was released from LaSalle Detention Center on March 10, 2017 [2] and Ramirez Medina’s release followed on March 29, 2017 [3]. However, questions remain regarding the future of DACA recipients due to the Trump administration’s initial plans [4].

On June 16, 2017, the United States Department of Homeland Security announced that it would rescind the executive order by the Barack Obama administration that expanded the DACA program, though the DACA program’s overall existence would continue to be reviewed.[15][16]

History

President Barack Obama announced the policy with a speech in the Rose Garden of the White House on 15 June 2012,[17] a date chosen as the 30th anniversary of Plyler v. Doe, a Supreme Court decision barring public schools from charging illegal alien children tuition. Republican Party leaders denounced the program as an abuse of executive power.[18]

USCIS began accepting applications for the program on 15 August 2012.[3]

Republican response

Nearly all Republicans in the House of Representatives (along with three Democrats) voted 224-201 to defund DACA in June 2013.[19] Lead author of the amendment Rep. Steve King (R-Iowa) stated, “The point here is…the President does not have the authority to waive immigration law, nor does he have the authority to create it out of thin air, and he’s done both with these Morton memos in this respect.”[20] However, in practice Congress does not have the ability to defund DACA since the program is almost entirely funded by its own application fees rather than congressional appropriations.[21]

Although politicians are divided on immigration issues related to DACA, former presidential candidate Mitt Romney stated that he would honor the grants of deferred action approved under DACA until a more permanent legislation was put into place.[22]

Under the presidency of Donald Trump, DACA has been under scrutiny, also in view of Trump’s earlier announcement during his candidacy that he intended to end that program.[23][24]

Implementation

DACA was formally initiated by a policy memorandum sent from Secretary of Homeland SecurityJanet Napolitano to the heads of U.S. Customs and Border Protection (CBP), U.S. Citizenship and Immigration Services (USCIS), and U.S. Immigration and Customs Enforcement (ICE). The memo formally directed them to exercise their enforcement discretion on behalf of individuals who met the requirements.[25]

To apply for DACA, illegal aliens must pay a $495 application fee, submit several, and produce documents showing they meet the requirements. They do not need legal representation.

Eligibility

To be eligible, illegal aliens must have entered the United States before their 16th birthday and prior to June 2007, be currently in school, a high school graduate or be honorably discharged from the military, be under the age of 31 as of June 15, 2012, and not have been convicted of a felony, significant misdemeanor or three other misdemeanors, or otherwise pose a threat to national security. The program does not provide lawful status or a path to citizenship,[26] nor does it provide eligibility for federal welfare or student aid.[27]

In August 2012, the Migration Policy Institute estimated that as many as 1.76 million people could be eligible for DACA. Of those, 28% were under 15 and would have to wait until reaching that age to apply. In addition, roughly 20% did not meet any of the education criteria, but could become eligible by enrolling in a program before submitting their application. 74% of the eligible population was born in Mexico or Central America. Smaller proportions came from Caribbean and South America (11%), Asia (9%), and the rest of the world (6%).[28]

To qualify for DACA, applicants must meet the following major requirements, although meeting them does not guarantee approval:[26]

  • Came to the United States before their 16th birthday
  • Have lived continuously in the United States since 15 June 2007
  • Were under age 31 on 15 June 2012 (i.e., born on 16 June 1981 or after)
  • Were physically present in the United States on 15 June 2012, and at the time of making their request for consideration of deferred action with USCIS
  • Had no lawful status on 15 June 2012
  • Have completed high school or a GED, have been honorably discharged from the armed forces, or are enrolled in school
  • Have not been convicted of a felony or serious misdemeanors, or three or more other misdemeanors, and do not otherwise pose a threat to national security or public safety

To show proof of qualification (verify these requirements), applicants must submit three forms; I-821D, Consideration of Deferred Action for Childhood Arrivals; I-765, Application for Employment Authorization; and I-765WS, Worksheet, as well as supporting documentation.[26]

Travel eligibility

In addition to the $495 application fee, if a DACA qualifying illegal alien wants to travel abroad there is an additional fee and application requirement.

Form I-131 Application Type D, with a fee of $575 needs to be submitted to USCIS.[29]

To receive advance parole one must travel abroad for the sole purpose of an educational, employment, or humanitarian purposes. This must be indicating on the Form I-131 as described below:

  • Educational purposes, such as studying abroad;
  • Employment purposes, such as overseas positions, interviews, training, or meetings with clients; or
  • Humanitarian purposes, such as travel for medical reasons, attend funeral services for a family member, or visit a sick relative.

Travel for leisure is not a valid purpose.[29]

Renewals

USCIS released the process for DACA renewals in June 2014 and directed applicants to file their documents during a 30-day window starting 150 days before the expiration of their previous DACA status. Renewing requires an additional $495 fee.[30]

As of June 2016, there had been 606,264 renewal cases, with 526,288 approved, 4,703 denied and 75,205 renewals pending.[4]

Expansion

In November 2014, U.S. President Barack Obama announced changes to DACA which would expand it to include illegal aliens who entered the country prior to 2010, eliminate the requirement that applicants be younger than 31 years old, and lengthen the renewable deferral period to two years. The Pew Research Center estimated that this would increase the number of eligible people by about 330,000.[31]

However, in December 2014, Texas and 25 other states, all with Republican governors, sued in the District Court for the Southern District of Texas asking the court to enjoin implementation of both the DACA expansion and Deferred Action for Parents of Americans (a similar program).[32][33][34] In February 2015, Judge Andrew S. Hanen issued a preliminary injunction blocking the expansion from going into effect while the case, Texas v. United States, proceeds.[35][36] After progressing through the court system, an equally divided (4-4) Supreme Court left the injunction in place, without setting any precedent.[11]

The court’s temporary injunction does not affect the existing DACA. Individuals may continue to come forward and request an initial grant of DACA or renewal of DACA under the guidelines established in 2012.[26]

Impact

A 2016 study found that DACA increased labor force participation and decreased the unemployment rate for DACA-eligible immigrants. DACA also increased the income of illegal aliens in the bottom of the income distribution. However, DACA had no significant effects on the likelihood of attending school. Using these estimates, DACA moved 50,000 to 75,000 unauthorized immigrants into employment.[27]

State responses]

State-level government officials are also divided on the issue. Although state governments cannot affect DACA itself, they can control the state benefits available to individuals under deferred action.

California

To assist those eligible under the program,[37] the state of California has agreed to support those who receive a DACA grant by allowing access to a state driver’s license,[38] provided that such individuals participate in specific state guidelines (such as paying income taxes). The state of California also allows DACA holding individuals to qualify for Medi-Cal.[39]

Arizona

Arizona became the first state to oppose President Obama’s order for DACA when Governor Jan Brewer issued a counter-order that prevents those with deferred status from receiving any state benefits.[40] This caused controversy,[41] as eligible and approved applicants would still be unable to obtain a driver’s license.[42] In May 2013, a federal district court held that this policy was likely unconstitutional. In 2014, the Ninth Circuit Court of Appeals issued a preliminary injunction against Brewer’s ban, and in November 2014 held this ban was in violation of the law.[43]

Maryland

Former Baltimore Mayor Stephanie Rawlings-Blake chose to open the city’s doors to undocumented immigrants to boost its dwindling population. The city boasts an executive order prohibiting officials from questioning an individual’s immigration status, especially about Maryland’s Dream Act, which grants in-state tuition rates to “any student who graduates from a Maryland high school and comes from a family who has paid taxes. If the individual is a male he must also complete his Selective Service form and prove his acceptance.”[44]

Illinois

In a New York Times interview, Chicago Mayor Rahm Emanuel stated that he wants to make Chicago the “most immigrant-friendly city in the country”. In addition to offering in-state tuition for illegal aliens, he has also made plans for an ordinance that would prevent illegal aliens with no criminal background from being turned over to immigration enforcement agencies.[45]

Texas

Although in-state tuition is still offered, Governor Rick Perry announced his opposition to DACA by distributing a letter to all state agencies, meant “to ensure that all Texas agencies understand that Secretary Napolitano’s guidelines confer absolutely no legal status whatsoever to any illegal alien who qualifies for the federal ‘deferred action’ designation.”[46]

Nebraska

Governor Dave Heineman, also joined in the opposition against DACA, confirming that the state, will continue its practice of not issuing driver’s licenses, welfare benefits, or other public benefits to illegal immigrants” regardless of deferred status. Since then, however, Nebraska legislature has made it legal for these people to acquire driver’s licenses.[47]

Michigan

In October 2012, the Michigan Secretary of State, Ruth Johnson, announced that Michigan will not issue drivers licenses or state identification of any kind to beneficiaries of Deferred Action for Childhood Arrivals.[48] In making this decision, it was clear that the Secretary of State erroneously conflated the notion of “lawful presence,” which is required under Michigan Law to issue a driver’s license, and “lawful status,” a different legal concept entirely.[49]USCIS has made it clear that DACA beneficiaries do not possess legal status, but does not state that DACA beneficiaries are unlawfully present; in fact, it states that DACA beneficiaries will not accrue unlawful presence time here while they are in this deferred action status.[50] The Secretary of State relied upon USCIS’ own explanation, which discusses legal status, not lawful presence.[50] In response to this policy, the ACLU filed a lawsuit against Johnson, alleging that the policy violated both Michigan law and the U.S. Constitution.[51] On January 18, 2013, USCIS updated their “Frequently Asked Questions” page about DACA, clarifying, among other things, that DACA beneficiaries are, in fact, lawfully present in the United States.[52] On 1 February 2013, Johnson reversed her policy and began issuing drivers licenses to DACA beneficiaries on February 19, 2013.[53]

North Carolina

North Carolina briefly suspended giving out driver’s licenses to DACA grantees while waiting for the state attorney general’s opinion. The attorney general decided that even without formal immigration status the DACA grantees were to be granted legal presence. After that, the state once again continued to give out drivers licenses and allowed the DACA grantees to become legal members of North Carolina.[54]

Virginia

On April 29, 2014, Virginia Attorney GeneralMark Herring sent a letter to the director of the State Council of Higher Education for Virginia (SCHEV), the presidents of Virginia public colleges and universities, and the chancellor of the Virginia Community College System, in response to inquiries from public institutions of higher education on whether DACA students are eligible for in-state tuition. The attorney general advised these institutions that under Virginia law, DACA students who meet Virginia’s domicile requirements are eligible for in-state tuition.[55][56]

See also

References

Story 3: More Mueller Milking The American Taxpayers — Trump Should Fire Them All Now — Enough Is Enough — Videos

War of Words on Special Counsel Mueller Hires 13 Lawyers.

Out of Control Investigations. Alan Dershowitz!

Mueller, Witness Flipper, and More on Hidden Obama Documents! Judge Nap!

Jay Sekulow: It’s a Witch Hunt – The Deep State

Trey Gowdy Questions Fmr Sec of DHS Jeh Johnson!

The Latest from Trey Gowdy! Some About Loretta Lynch and James Comey!

JAY SEKULOW FULL EXPLOSIVE INTERVIEW ON STATE OF THE UNION WITH JAKE TAPPER (6/18/2017)

Lou Dobbs & Legal Expert Delineate The Number Of Crimes Comey & Mueller Have Already Committed

Robert Mueller named special counsel for FBI Russia probe – USA News

Jay Sekulow on The Laura Ingraham Show (6 /16/ 2017)

Mueller’s Empire: Legions of Lawyers, Bottomless Budget, Limitless Jurisdiction

By Andrew C. McCarthy| June 21, 2017

So I’ve been wondering: Why on earth does a prosecutor, brought in to investigate a case in which there is no apparent crime, need a staff of 14 lawyers?

Or, I should say, “14 lawyers and counting.” According to the press spokesman for special counsel Robert Mueller—yeah, he’s got a press spokesman, too—there are “several more in the pipeline.”

Concededly, none of Mueller’s recruits requires Senate confirmation, as do Justice Department officials—notwithstanding that the former may end up playing a far more consequential role in the fate of the Trump administration. But does it seem strange to anyone else that, by comparison, the president of the United States has managed to get—count ’em—three appointees confirmed to Justice Department positions in five months?

A special counsel, the need for whom is far from obvious, has in just a few days staffed up with four times the number of lawyers. And all for a single investigation that the FBI has described as a counterintelligence probe—i.e., not a criminal investigation, the kind for which you actually need lawyers.

The way this is supposed to work is: the Justice Department first identifies a likely crime, and then assigns a prosecutor to investigate it. Here, by contrast, there are no parameters imposed on the special counsel’s jurisdiction. Mueller is loosed—with 14 lawyers and more coming—to conduct what I’ve called a “fishing expedition.”

Oh, and about those three Justice Department appointees: One of them, Attorney General Jeff Sessions, has already recused himself from the investigation in question—the department’s most high profile undertaking. Another, Deputy Attorney General Rod Rosenstein, is reportedly weighing whether he, too, should bow out. Perhaps he figures he has already done quite enough, having sicced a special-counsel investigation on the Trump Administration by flouting both the regulation that requires a basis for a criminal investigation before a special counsel is appointed, and the regulation that requires limiting the special counsel’s jurisdiction to the specific factual matter that triggers this criminal investigation.

For now, Mueller appears utterly without limits, in his writ and in his resources. As the ease with which he has staffed up shows, it is not hard to recruit lawyers. All you need is money. Mueller has a bottomless budget, thanks to a bit of Treasury Department chicanery known as “permanent, indefinite appropriations.”

Under the Constitution’s Appropriations Clause, no funding is supposed to be paid out of the treasury unless Congress has approved it in advance. Under the Framers’ design, with an eye toward limited, accountable government, every spending initiative must compete with every other one when Congress enacts a budget. Lawmakers must decide what we can and can’t afford when they draw on what is supposed to be the finite pot of money confiscated from taxpayers. We are supposed to know what we are underwriting and what it will cost.

These lawyers, overwhelmingly, are Democrats. Powerline’s Paul Mirengoff and the Daily Caller’s Chuck Ross have been tracking it: Mueller’s staffers contribute to Trump’s political opponents, some heavily.

Mueller’s special counsel investigation is somehow under no such restrictions, according to the Justice Department. He unilaterally decides how much staffing he needs. And unlike a normal prosecutor’s office, the special counsel does not have to apportion his resources over hundreds of cases. He can direct all of them at one investigative target.

In this instance, the target is Trump, and the resources—apart from what will be scores of FBI agents—include 14 lawyers (going on 15 … going on 16…).

These lawyers, overwhelmingly, are Democrats. Powerline’s Paul Mirengoff and the Daily Caller’s Chuck Ross have been tracking it: Mueller’s staffers contribute to Trump’s political opponents, some heavily. The latest Democratic talking-point about this unseemly appearance is that hiring regulations forbid an inquiry into an applicant’s political affiliation. That’s laughable. These are lawyers Mueller has recruited. They are not “applicants.” We’re talking about top-shelf legal talent, accomplished professionals who have jumped at the chance of a gig they do not need but, clearly, want.

The Democrats’ other rationalization is that Mueller, whose integrity is well established, is ultimately responsible for all prosecutorial decisions. I agree that Mueller’s personal probity entitles him to a presumption of ethical propriety. But a presumption is not a blank check.

Unlike many conservative commentators, I’ve contended that too much has been made of Mueller’s close personal friendship and longstanding professional ties to former FBI director James Comey. In drawing that conclusion, I have relied on Rosenstein’s description of the investigation assigned to Mueller. He said it is the same investigation Comey described in March 20 congressional testimony. That investigation is a counterintelligence probe—which is why I’ve never understood the need for a prosecutor. Since such investigations are not intended to build criminal cases, there seemed little prospect that Comey could become a critical prosecution witness. I reasoned that, in the unlikely event criminal charges became a possibility, Mueller could be trusted to consider the ethics of his participation.

Now, however, if reports are to be believed, Mueller is weighing whether the president is guilty of an obstruction crime. Putting aside my assessment that there would be no legal merit to such an allegation, there could be no doubting Comey’s importance as a witness in such a case. Mueller would then have to consider an ethical dilemma that the National District Attorneys Association, in its National Prosecution Standards (third edition), has described in the section on conflicts of interest (Standard 1-3.3, at p. 7):

The prosecutor should excuse himself or herself from any investigation, prosecution, or other matter where personal interests of the prosecutor would cause a fair-minded, objective observer to conclude that the prosecutor’s neutrality, judgment, or ability to administer the law in an objective manner may be compromised.

Notice that, consistent with the familiar ethical canon that lawyers must avoid even the appearance of impropriety, the standard here is based not on the lawyer’s personal rectitude or his subjective belief that he can administer the law impartially. The issue is: What would this look like to fair-minded observers?

Consequently, if this boundless investigation careens into a criminal prosecution, Mueller could have some major soul-searching to do. I thus confess to being taken aback that he has exacerbated the problem, rather than trying to mitigate it, with his staffing decisions. Into an investigation that was already fraught with political tension, the special counsel has recruited partisans—donors to politicians who describe themselves not as a loyal opposition but as the Trump “Resistance.” What are fair-minded people to make of that?

Not just one or two recruits, but 14 lawyers, with more to come.

Some personal perspective, if you’ll allow me. I had the good fortune to be a prosecutor in two of the better known criminal cases in modern American history. The Pizza Connection case, which I believe remains our longest federal criminal trial, involved a vast narcotics and money-laundering enterprise, overseen for well over a decade by the mafia in Sicily and the United States. The years-long investigation required gathering evidence on three continents, coordinating with a parallel, massive Italian prosecution, and ultimately indicting 36 mafiosi. The subsequent 17-month trial of 22 defendants, starting in late 1985, featured hundreds of witnesses and more than 2,400 wiretap conversations (translated into English from Italian). I was the junior member of a five-prosecutor team, which many of our peers found to be excessive despite the prosecution’s success.

Consequently, if this boundless investigation careens into a criminal prosecution, Mueller could have some major soul-searching to do. I thus confess to being taken aback that he has exacerbated the problem, rather than trying to mitigate it, with his staffing decisions.

I was the lead government lawyer in the terrorism investigation of the so-called Blind Sheikh’s jihadist cell, following the 1993 World Trade Center bombing and an unsuccessful plot to bomb New York City landmarks. The case involved extensive undercover investigations. We also probed the history of overseas jihadist movements, as well as that of covert American aid to the Afghan mujahideen’s war against the Red Army. There were classified-information challenges, including litigation over the admissibility in a criminal trial of evidence obtained under foreign-intelligence-gathering authorities. The eventual nine-month trial of 12 defendants, involved hundreds of witnesses and intercepted conversations (translated into English from Arabic).

We managed to get by with a team of three trial prosecutors and one appellate lawyer assigned to help us with the many novel legal issues. After all the defendants were convicted, I wrote the government’s appellate brief with the assistance of a single appellate editor. Not much staff, but the convictions and sentences were nevertheless upheld.

Why does special counsel Mueller need 14 lawyers (and more coming) for a counterintelligence investigation, as to which the intelligence professionals—agents, not lawyers—have found no “collusion with Russia” evidence after over a year of hard work? What will those lawyers be doing with no limits on their jurisdiction, with nothing but all the time and funding they need to examine one target, Donald Trump?

About the Author:

Andrew C. McCarthy
Andrew C. McCarthy is a former chief assistant U.S. attorney best known for successfully prosecuting the “Blind Sheikh” (Omar Abdel Rahman) and eleven other jihadists for waging a terrorist war against the United States – a war that included the 1993 World Trade Center bombing and a subsequent plot to bomb New York City landmarks. He is a recipient of the Justice Department’s highest honors, helped supervise the command-post near Ground Zero in lower Manhattan following the 9/11 attacks, and later served as an adviser to the Deputy Secretary of Defense. His several popular books include the New York Times bestsellers Willful Blindness: A Memoir of the Jihad and The Grand Jihad: How Islam and the Left Sabotage America. He is a senior fellow at National Review Institute and a contributing editor at National Review. He is a frequent guest commentator on national security, law, politics, and culture in national media, and his columns and essays also appear regularly in The New Criterion, PJ Media, and other major publications.

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The Pronk Pops Show 911, Breaking News: Story 1: Democrat Socialist, James Hodgkinson, Opened Fire With Semi-automatic Rifle On Republican Lawmakers Practicing For Annual Charity Baseball Game Shooting House Majority Whip, Steve Scalise, 2 Capital Police Officers, 1 Congressional Staffer and 1 Lobbyist and Two Others Had Secondary Injuries  — The Assailant Was Killed By Police Officers — Game On — Videos — Story 2: 24-Floor Grenfell Tower  London Apartment Building Fire — Towering Inferno — Videos

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 Image result for republican baseball game shooterImage result for republican baseball game shooter

 

Breaking News: Story 1: Democrat Socialist, James Hodgkinson, Opened Fire With Semi-automatic Rifle On Republican Lawmakers Practicing For Annual Charity Baseball Game Shooting House Majority Whip, Steve Scalise, 2 Capital Police Officer, 1 Congressional Staffer and 1 Lobbyist and Two Others Had Secondary Injuries  — The Assailant Was Killed By Police Officers — Game On — Videos —

Image result for republican baseball game shooter june 14, 2017 Image result for republican practice baseball game shooter june 14, 2017 Image result for president trump on republican practice baseball game shooter june 14, 2017

Graphic content: Gunman opens fire on GOP baseball practice

Published on Jun 14, 2017

A shooting at a park in Alexandria, Va., wounded five people, including House Majority Whip Steve Scalise (La.). Republican members of Congress were holding a morning baseball practice ahead of a scheduled charity game.

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Congressional baseball gunman was a Trump-hating Bernie supporter who hit women: Dead suspect’s violent history revealed after he opened fire on Republican lawmakers on the President’s birthday, leaving five injured

  • James Hodgkinson, 66, died in hospital after being shot by Capitol Police at the baseball field in Virginia 
  • He was a staunch Democrat who documented his hatred for President Trump on social media pages
  • Hodgkinson moved from his home in Illinois to Virginia two months ago and had been living out of his car
  • He has a long criminal history which includes an assault charge for punching his female neighbor as she tried to protect his daughter from him in 2006
  • Steve Scalise, the House Majority Whip, is in a critical condition after being shot by the gunman at 7am
  • He was taking part in a GOP practice session with other politicians when Hodgkinson opened fire on them 
  • Two Capitol Police officers who were there to protect 51-year-old Scalise bravely returned fire on the gunman 
  • They were injured along with lobbyist Matt Mika and congressional staffer Zachary Barth but all are expected to recover
  • Thursday’s game, which the men were practicing for, will go ahead as planned despite the shooting  

The gunman who was killed by cops after opening fire on a Republican congressional baseball practice on Wednesday, the president’s 71st birthday, was a Trump-hating Democrat and Bernie Sanders supporter with a long history of violence.

James T. Hodgkinson, 66, from Belleville, Illinois, was killed by Capitol Police after firing up to 100 rounds from an assault rifle at a baseball park in Alexandria, Virginia, leaving five injured including House Majority Whip Steve Scalise at 7am on Wednesday.

Scalise’s condition worsened throughout the afternoon and was deemed critical by hospital staff after he he was released from emergency surgery on his hip.

Two Capitol Police officers were shot as they bravely returned fire on Hodgkinson while the lawmakers scrambled across the field to safety. Congressional staffer Zachary Barth and lobbyist Matt Mika were shot but both are expected to recover.

Hodgkinson was a staunch Sanders supporter and campaigned for the left-wing senator to get the Democratic nomination for president last year. His family said he was distraught over Trump’s November election win and revealed that he had been living in Alexandria out of a gym bag and sleeping in his car for the last two months.

A married union tradesman with a home inspection business, Hodgkinson had threatened to ‘destroy’ the president and his administration on social media but was not known to Secret Service.

His criminal record included a 2006 arrest for punching his female neighbor in the face as she tried to shield his underage daughter from him.

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James T. Hodgkinson, 66, opened fire on the GOP baseball team on Wednesday. He was killed by Capitol Police 

Hodgkinson is seen above in 2012 protesting outside the United States Post Office in his hometown of Belleville, Illinois 

James T. Hodgkinson (pictured right campaigning against Republicans in 2012) was a hateful Trump opponent who threatened to ‘destroy’ the president on social media before attacking a GOP baseball practice on Wednesday

He dragged her out by the hair but she ran into her neighbor’s car. The female neighbor sat in the vehicle in the front seat.

Hodgkinson got access to them, slashing the seatbelt his daughter was wearing as he and his wife pulled her out. He then hit the neighbor in the face, The Washington Post reported, but was never convicted.

After he was identified as the shooter in Wednesday’s attack, his estranged brother told The New York Times that he learned through their sister that he had traveled to Virginia two months ago.

He signed up for a membership at the YMCA opposite the baseball field he attacked but cancelled it this week.

The brother said he believed Hodgkinson phoned his wife Sue in the days before the attack and told her he was coming home because he missed her and their dogs.  Former Alexandria mayor Bill Euille admitted meeting the man several times in the town.

‘He was a very friendly person, but what I did notice about this gentleman is he’d open up his gym bag and in it, he had everything he owned. He was living out of the gym bag. That, and he sat in the Y’s lobby for hours and hours.

‘Outside of myself, I don’t think he knew anyone else in town,’ he told The Washington Post, admitting that he also helped him try to find a job in the area after taking pity on him.

Hodgkinson documented his hatred for the president in Facebook and Twitter posts where he threatened to ‘destroy Trump & co’ and labeled the Republican billionaire a ‘traitor’.  

Hodgkinson had a lengthy criminal record which includes charges, but no convictions, for DUI, domestic battery, pointing a gun at a relative. He is seen in mugshots in 1992 (left) and 2006 (right)

Hodgkinson had a lengthy criminal record which includes charges, but no convictions, for DUI, domestic battery, pointing a gun at a relative. He is seen in mugshots in 1992 (left) and 2006 (right)

Hodgkinson had a lengthy criminal record which includes charges, but no convictions, for DUI, domestic battery, pointing a gun at a relative. He is seen in mugshots in 1992 (left) and 2006 (right)

Hodgkinson was wounded by Capitol Police at the scene and later died of his injuries in hospital

Hodgkinson was wounded by Capitol Police at the scene and later died of his injuries in hospital

Hodgkinson documented his violent hatred for the president across his various social media pages
Hodgkinson documented his violent hatred for the president across his various social media pages

Hodgkinson documented his violent hatred for the president across his various social media pages

Hodgkinson shared numerous Facebook posts against the president, making no secret of his angry Republican hatred 

Hodgkinson shared numerous Facebook posts against the president, making no secret of his angry Republican hatred

His violent tendencies and involvement in Wednesday’s attack came as a surprise to people who worked with him on Sanders’ 2016 bid for the Democratic presidential nomination.

One told The Washington Post: ‘I met him on the Bernie trail in Iowa, worked with him in the Quad Cities area.

‘He was this union tradesman, pretty stocky, and we stayed up talking politics. He was more on the really progressive side of things,’ Charles Orear said, adding that Hodgkinson was ‘quite mellow’.

A friend of the man spoke outside his home in Belleville, Illinois – 800 miles from where the shooting occurred – to say he was a ‘nice guy’.

Despite his hateful social media posts and criminal history, sources told CNN the man was not on the Secret Service’s radar.

Hodgkinson's estranged brother revealed that in the days before the shooting, he called his wife Sue (above together) to say he was planning to come home from Virginia because he missed her and their dogs 

It is not clear how long Hodgkinson had been in Virginia or when he left his home town before Wednesday's shooting 

It is not clear how long Hodgkinson had been in Virginia or when he left his home town before Wednesday’s shooting

Hodgkinson's family said he was distraught over Trump's November election win. He traveled to Virginia two months ago and had been living out of a gym bag and sleeping in his car, the former mayor of Alexandria said

Hodgkinson's family said he was distraught over Trump's November election win. He traveled to Virginia two months ago and had been living out of a gym bag and sleeping in his car, the former mayor of Alexandria said

Hodgkinson’s family said he was distraught over Trump’s November election win. He traveled to Virginia two months ago and had been living out of a gym bag and sleeping in his car, the former mayor of Alexandria said

Police descended on his home in Belleville, Illinois, which is 800 miles from where the shooting took place

Police rifled through the home on Wednesday afternoon. Hodgkinson's family said he left it two months ago to travel to Virginia

Police rifled through the home on Wednesday afternoon. Hodgkinson's family said he left it two months ago to travel to Virginia

Dale Walsh, a friend of Hodgkinson, said he was 'a nice guy' and expressed his shock at Wednesday's shooting. He spoke outside Hodgkinson's home as local media and police descended on it 

Dale Walsh, a friend of Hodgkinson, said he was ‘a nice guy’ and expressed his shock at Wednesday’s shooting. He spoke outside Hodgkinson’s home as local media and police descended on it

Shortly after 7am on Wednesday, he opened fire from behind the third base dugout as the group of GOP figures practiced batting on the field in preparation for a charity baseball game against Democrats which is scheduled for Thursday night.

Florida Rep. Ron DeSantis and Rep. Jeff Duncan of South Carolina spoke with him moments before the shooting.

They told how the shooter approached them and asked if they were Republican or Democrat. He walked away after being told they were members of the GOP, Duncan said.

The pair escaped his bloody rampage and only identified him as the shooter after seeing his photograph in the news.

Two Capitol Police officers who were accompanying Scalise were the only other armed people on the scene. They returned fire with their pistols but were shot themselves.

As bullets flew across the field, the congressmen fled to a dugout and huddled on top of one another, using their belts as makeshift tourniquets to treat the wounds of those who were shot.

Barth, a congressional staffer for Texas Rep. Roger Williams, was shot in the leg but is expected to recover. The two Capitol Police officers, Krystal Griner and David Bailey, are also expected to make a full recovery.

Mika was also injured and is in hospital while Scalise is in critical condition at MedStar Washington Center after undergoing emergency surgery on his hip.

Sen. Rand Paul, who was also there but as not hurt, described the scene as a ‘killing field’. Rep. Mark Walker said the gunman seemed intent on murdering ‘as many Republicans as possible.’

House Majority Whip Steve Scalise was rushed to hospital after being shot in the hip. He was initially expected to recover but his condition worsened and became critical on Wednesday afternoon  

House Majority Whip Steve Scalise was rushed to hospital after being shot in the hip. He was initially expected to recover but his condition worsened and became critical on Wednesday afternoon

The men were practicing at Eugene Simpson Stadium Park in Alexandria, Virginia, ahead of a charity game on Thursday 

The men were practicing at Eugene Simpson Stadium Park in Alexandria, Virginia, ahead of a charity game on Thursday

Sanders, who expressed his prayers for the victims before learning that the gunman was one of his fans, resisted criticism directed at him at the capitol on Wednesday.  His aides stayed between him and reporters milling near the Senate chamber.

In a statement on the Senate floor, the Vermont democratic socialist said in a statement on the Senate floor that he was aware the shooter ‘apparently volunteered on my presidential campaign.’

‘I am sickened by this despicable act,’ he said. ‘Let me be as clear as I can be. Violence of any kind is unacceptable in our society and I condemn this action in the strongest possible terms.’

Sanders said he was 'sickened' by the shooting

Sanders said he was ‘sickened’ by the shooting

‘Real change can only come about through nonviolent action, and anything else runs against our most deeply held American values.’

The president spoke at a White House press conference at around 11am.

He made a plea for unity and thanked the police and emergency responders involved, making no mention of the gunman other than to confirm his death.

President Trump revealed he had spoken to Scalise’s wife to offer her his support and described the injured Whip as a ‘true friend’ and ‘patriot’.

Later in the day, Joe Barton, whose young children were with him at the field, announced that the game would go ahead despite the shooting.

Both he and Democratic Rep. Mike Doyle used the occasion as an example of the angry hatred between Republicans and Democrats which is becoming more commonplace.

‘We need to take a step back. I think the internet, twitter and all the instantaneous of the news cycle has made it more impersonal and members flying back to their districts every weekend, very few people live up here. It is different climate today than it was In 1985. Part of it is technology and part of it is how politics has evolved,’ Rep. Barton said.

Scalise was shot in the hip and taken to hospital by air ambulance shortly after the attack. Alabama Rep. Mo Brooks tried to stop the bleeding from his wound as Sen. Paul, a trained doctor, cut his baseball uniform to examine the injury.

Scalise was on the field when he was shot but was able to drag himself to safety in the dugout, where the other men were hiding, as the two Capitol Police who had accompanied him for the practice exchanged gunfire.

Trump pleads for unity after GOP baseball shooting as Donald Jr. says attack proves why jokes about his father’s assassination AREN’T funny

At a press conference at The White House on Wednesday, President Trump thanked the police and first responders who attended the shooting 

At a press conference at The White House on Wednesday, President Trump thanked the police and first responders who attended the shooting

The president pleaded for unity at a White House press conference to address an attack on his GOP colleagues on Wednesday.

Speaking hours after leaders including House Majority Whip Steve Scalise and four others were injured by gunman James Hodgkinson, Trump said: ‘We are stronger when we are unified and when we work together for the common good.’

Trump referred to the gunman once to confirm his death, describing him only as ‘the assailant’. He devoted the rest of his speech to praising the Capitol Police and emergency responders who attended the attack.

‘Melania and I are grateful for their heroism and praying for the swift recovery of all victims. Congressman Scalise is a friend and a very good friend, He is a patriot and a fighter and he will recover from this assault.

‘Steve, I want you to know, you have the prayers not only of the entire city but of an entire nation and, frankly, the entire world. America is praying for you and America is praying for all of the victims of this shooting. I have spoken with Steve’s wife Jennifer and I pledged to her our full and absolute support. Anything she needs, we are with her and the entire Scalise family.

‘I have also spoken with Chief Matthew Verderosa (of the Capitol Police), he’s doing a fantastic job, to express our sympathies for his wounded officers and to express my admiration for their officers. They perform a challenging job with incredible skill and their sacrifice makes democracy possible.

‘We also commend the brave first responders from Alexandria Fire and Rescue who rushed to the scene. Everyone on that field is a public servant – our courageous police, our aides, and our dedicated members of congress who represent our people.

‘We can all agree that we are blessed to be Americans and that our children deserve to grow up in a nation of safety and peace,’ he said.

Donald Jr. had an angrier public response. He re-tweeted a post which read: ‘Events like today are EXACTLY why we took issue with NY elites glorifying the assassination of our President.’

He was referring to New York’s Public Theatre and its current production of Julius Caesar in which the doomed emperor is portrayed as his father. The play has sparked outrage and accusations that its directors are glorifying violence against the president.

It comes after the comedian Kathy Griffin’s shocking participation in a photo-shoot in which she appeared to be holding a fake representation of the president’s severed head. She apologized for the stunt after receiving angry backlash.

Democratic Rep. Mike Doyle (L) and Rep. Rep. Joe Barton (R) vowed to carry on with Thursday's scheduled game despite the shooting. Barton choked back tears as he told how he sheltered with his young sons as the shooter sprayed the field with bullets 

Democratic Rep. Mike Doyle (L) and Rep. Rep. Joe Barton (R) vowed to carry on with Thursday’s scheduled game despite the shooting. Barton choked back tears as he told how he sheltered with his young sons as the shooter sprayed the field with bullets

Texas Rep. Roger Williams (above) was not shot but was injured in the chaos as he tried to flee. One of his staffers suffered a gunshot wound to the leg 

Texas Rep. Roger Williams (above) was not shot but was injured in the chaos as he tried to flee. One of his staffers suffered a gunshot wound to the leg

Williams is seen being taken to hospital after the shooting which took place as the men practiced batting at 7am 

Williams is seen being taken to hospital after the shooting which took place as the men practiced batting at 7am

Michigan Rep. Mike Bishop earlier described how one man – thought to be part of Scalise’s Capitol Police protection detail – stood his ground to return fire as the congressmen and at least one of their children dove for cover in a dugout and Scalise dragged himself across the field after being hit, leaving a trail of blood behind him.

He told CBS Detroit: ‘As we were standing here this morning, a gunman walked up to the fence line and just began to shoot. I was standing at home plate and he was in the third base line.  He had a rifle that was clearly meant for the job of taking people out, multiple casualties, and he had several rounds and magazines that he kept unloading and reloading.’

He said: ‘The only reason why any of us walked out of this thing, by the grace of God, one of the folks here had a weapon to fire back and give us a moment to find cover.’

‘We were inside the backstop and if we didn’t have that cover by a brave person who stood up and took a shot themselves, we would not have gotten out of there and every one of us would have been hit — every single one of us.’

‘He was coming around the fence line and he was looking for all of us who had found cover in different spots. But if we didn’t have return fire right there, he would have come up to each one of us and shot us point-blank.’

The group was practicing for a charity game which is due to take place on Thursday at Nationals Park when they were attacked.  Three men escaped and took shelter in an apartment building nearby.

Another witness, Marty Lavor, dove on top of a congressman. He told CNN that after the gunman’s first shot, there was a break in the gunfire but it began shortly afterwards.

Republican Rep. Mo Brooks was also there but was not hurt. He described using his belt as a tourniquet to stop the bleeding on Scalise’s leg.

A man who was injured in the leg receives treatment at the scene. Some of those hurt were not shot but suffered injuries as they tried to escape the field 

A man who was injured in the leg receives treatment at the scene. Some of those hurt were not shot but suffered injuries as they tried to escape the field

Rep. Mo Brooks appeared emotional as he spoke on the phone moments after the shooting. He helped give first aid to those shot 

House Majority Whip Steve Scalise was shot in the hip but is expected to make a full recovery 

Zachary Barth

Matt Mika

Scalise (left), congressional staffer Zachary Barth (center) and lobbyist Matt Mika (right) were all shot

Speaking to FM Talk 1065 moments after the shooting, he told how the group was practicing batting when he suddenly saw the shooter.

‘Suddenly there’s this face. I noticed the guy’s got a rifle and he’s shooting at us,’ he said.

US Capitol Police Officer David Bailey is being hailed as a hero for returning fire on the gunman with his pistol despite being injured himself 

US Capitol Police Officer David Bailey is being hailed as a hero for returning fire on the gunman with his pistol despite being injured himself

As he took shelter with others in the group, which also included Rep. Gary Palmer, Brooks said he watched Scalise crawl to them as the police exchanged gunfire with pistols.

‘He was dragging his body away from second base to get away from the shooter. He was shot in the hip. I think it was not a life-threatening wound. … There was no exit wound I could see.’

‘There was a blood trail about 10 to 15 yards long from where he was shot to wear he crawled to right field,’ he told CNN. 

Brooks caught a brief glimpse of the shooter and described him as a white, middle-aged male. He said he described him as being ‘a little on the chubby side’ but not obese.  No more information about him is being offered by police.

Scalise, as a member of the House leadership, was the only one in the group who had been accompanied by a Capitol Police security detail.

Sen. Paul, who was not hurt, said that without the armed officers, all of those targeted would have died.

‘Had they not been there, it would have been a massacre. As terrible as it is, it could have been a lot worse.

‘Had it not been for them, we would have been at the mercy of the shooter and he had a lot of ammo. All we would have had was baseball bats.’ The Capitol Hill police cannot get enough praise for really saving everyone’s life out there,’ he said, adding of the gunman: ‘He would have shot anybody who ran out.’

Ohio Republican Rep. Brad Robert Wenstrup, a doctor and an Army Reserve officer, was on the scene and helped treat the wounded before paramedics arrived.

‘I felt like I was back in Iraq, but without my weapon,’ he told Fox News. Arizona Rep. Senator Jeff Flake described watching as the gunman sprayed bullets on the field, where Scalise lay on the ground.

The men's kit lay abandoned on the field as the scene around the baseball field was taped off 

The men’s kit lay abandoned on the field as the scene around the baseball field was taped off

A Twitter user posted this picture of what appeared to be a gunshot hole in a window as he took cover in the YMCA in Alexandria 

A Twitter user posted this picture of what appeared to be a gunshot hole in a window as he took cover in the YMCA in Alexandria

The streets surrounding the scene in Alexandria, Virginia were blocked off early Wednesday as first responders secured the area

The streets surrounding the scene in Alexandria, Virginia were blocked off early Wednesday as first responders secured the area

Sen. Jeff Flake is pictured walking away from the chaotic scene outside the stadium park 

Sen. Jeff Flake is pictured walking away from the chaotic scene outside the stadium park

As his Capitol Hill protection officers exchanged fire, he said the group were helpless.  ‘I wanted to get to Steve Scalise, laying out there in the field, but while there were bullets flying overhead, I couldn’t. He was laying out thee motionless,’ he told ABC.

Scalise’s office initially said while he was undergoing emergency surgery at MedStar Washington Hospital Center that he was in ‘stable condition.’

‘Prior to entering surgery, the Whip was in good spirits and spoke to his wife by phone,’ a spokesperson said.He is grateful for the brave actions of U.S. Capitol Police, first responders, and colleagues.’

Later, the hospital where he is being treated announced that his condition had worsened.

The two Capitol Police officers who were shot are both in a ‘good condition’ and are expected to recover.

All who have spoken since the attack said they were saved by having two trained doctors, including Wenstrup, on the team.

He administered immediate aid to Scalise before handing over to Brooks while he cut off his clothing.  ‘We were very fortunate to have a physician on the team.’

Sen. Paul is a trained opthalmologist. He said he was unable to get to Scalise because he was separated by part of the field and a fence while the active situation was ongoing.

One local resident was in his apartment with his wife when they were woken by the gunshots. They sheltered three members of the team after seeing them run for their lives from the field.

‘We were able to get them in a safe space for a couple of minutes. They were pretty shaken up,’ he said.

President Trump issued a statement shortly after the shooting to say he was ‘deeply saddened’ and was monitoring the situation closely.

‘Tomorrow, we play ball’: Republicans and Democrats vow to continue with charity game after shooting

Dem. Rep. Mike Doyle (L) and Rep. Rep. Joe Barton (R) vowed to carry on with Thursday's game 

Dem. Rep. Mike Doyle (L) and Rep. Rep. Joe Barton (R) vowed to carry on with Thursday’s game

The baseball game which congressmen were practicing for when they were shot on Wednesday morning will go ahead despite the attack.

Rep. Joe Barton sheltered in a dugout with his son as gunman James Hodgkinson opened fire on his team on Wednesday at 7am.

At a press conference later in the day, he revealed that the charity game would go ahead at Nationals Park tomorrow.

‘We’re playing the game tomorrow. We’re united not as Republicans and Democrats but as United States Representatives. We ask the American people to pray for those who were shot,’ he said, adding firmly: ‘It will be play ball tomorrow at 7.05pm.’

He was joined by Democrat Mike Doyle who echoed his sentiments and stressed the need for bi-partisanship.

‘We can change the mood in this country so that people don’t get filled up with this kind of hatred,’ Doyle said.

Both congressmen used the opportunity to lament the growing animosity in Washington and spoke nostalgically about times when Republicans and Democrats were kinder to one another.

‘Representatives aren’t treated like people anymore. I can assure you, everyone of our Representatives is a person… sometimes, though we don’t like to show it, we take it personally.’

Republican Barton choked up as he relived how his young son Jack was with him at the baseball field when the gunman opened fire.

‘Jack had 25 dads out there today looking out for him just as much as me,’ he said. One was Rep. Roger Williams who sprained his ankle trying to shield the child and rush him into the dugout as Hodgkinson opened fire.

Rep. Barton was at the field with his young son (left). They were able to take shelter in the dugout with the other congressmen. The pair are pictured after the shooting after flocking to the US Capitol 

Rep. Barton was at the field with his young son (left). They were able to take shelter in the dugout with the other congressmen. The pair are pictured after the shooting after flocking to the US Capitol

Sen. Flake (left) called Scalise's wife to inform her her husband had been shot. After the shooting, many of the men went straight to the Capitol still wearing their baseball gear including Rep. Rodney Davis (right)

Sen. Flake (left) called Scalise's wife to inform her her husband had been shot. After the shooting, many of the men went straight to the Capitol still wearing their baseball gear including Rep. Rodney Davis (right)

Rep. Chuck Fleischmann

‘We are deeply saddened by this tragedy. Our thoughts and prayers are with the members of Congress, their staffs, Capitol Police, first responders and all others affected,’ the president said.

Vice President Mike Pence cancelled a scheduled speech in order to meet with the president at The White House.

By mid-morning, the president had canceled a planned 3:00 p.m. event at the Department of Labor that was to have focused on his apprenticeship initiative.

All members of the House of Representatives were summoned to a private 11:15 a.m. briefing about the shooting investigation, and all votes were canceled for the day.

Scalise is the Republican majority whip in the House of Representatives – the congressman responsible for counting votes and maintaining party discipline.

The Louisianan, a 51-year-old father of two, is counted among conservatives in Congress who tend to back President Donald Trump’s more controversial initiatives, including calling his famous travel ban a ‘prudent’ measure. he endorsed Trump unreservedly last year.

Scalise came under fire in 2014 for remarks he made in 2002 at a conference run by a group that he later learned was a white supremacist organization.

President Trump said Scalise would make a full recovery. He paid tribute to him as a 'true friend and patriot' 

President Trump said Scalise would make a full recovery. He paid tribute to him as a ‘true friend and patriot’

First Lady Melania Trump shared her prayers for the victims and thanked police and paramedics who attended the attack 

First Lady Melania Trump shared her prayers for the victims and thanked police and paramedics who attended the attack

The infamous former Ku Klux Klan leader David Duke, who founded the group, blasted Scalise as a ‘sellout’ for apologizing.

The congressional baseball game is an annual tradition pitting members of the Democratic and Republican parties against each other. The game is set to take place on Thursday at Nationals Park.

Democratic members of Congress canceled their own baseball practice on Wednesday morning after news broke about the shooting. Many of those lawmakers gathered to pray for their political opponents in a concrete dugout before leaving under the guard of a Capitol Police escort.

As talk in Washington turned to the political ramifications of a high-profile shooting that affected lawmakers, fault lines began to emerge.

‘This kind of mindless violence must stop,’ California Democratic Sen. Dianne Feinstein said in a statement that hinted at her longstanding support for gun-control laws.

‘I’m dedicated to doing all I can to putting an end to these senseless tragedies.’

There was heightened security in the capitol after the shooting on Wednesday morning 

Officers outside the Capitol Building remained alert after the shooting on Wednesday 

Officers outside the Capitol Building remained alert after the shooting on Wednesday

On the other side of the aisle, South Carolina Republican Sen. Lindsey Graham said he doesn’t know who the shooter is ‘or how he got a gun.’

‘We’ve got plenty of gun laws,’ Graham told a Bloomberg reporter. ‘I own a gun. I don’t go around shooting people with it.’

‘People get shot, run over by cars, stabbed, it’s just a crazy world,’ he said. ‘If we had that debate it’d end like it always ends. We’re not going to tell law-abiding people they can’t own a gun because of some nut-job.’

‘One thing I hope we’ll all do is just watch our words a little bit,’ Graham added. ‘Knock down the rhetoric. That’d be a good thing.’

In corners of the U.S. Capitol where business resumed as usual, the shooting seemed to hit home.

‘Several members of this committee were there,’ Republican Rep. Ed Royce of California declared as he convened a hearing featuring Secretary of State Rex Tillerson.

‘This is a sad day for our country.’

‘We still don’t have all the details,’ said Royce, ‘but we do know that there are those who want to use acts of violence to create chaos, to disrupt our democracy.’

‘The American people will not let them win.’

http://www.dailymail.co.uk/news/article-4604130/Steve-Scalise-baseball-gunman-James-T-Hodgkinson-pictured.html#ixzz4k0vcWiAK

THE ‘RESISTANCE’ GOES LIVE-FIRE

The explosion of violence against conservatives across the country is being intentionally ginned up by Democrats, reporters, TV hosts, late-night comedians and celebrities, who compete with one another to come up with the most vile epithets for Trump and his supporters.

They go right up to the line, trying not to cross it, by, for example, vamping with a realistic photo of a decapitated Trump or calling the president a “piece of s—” while hosting a show on CNN.

The media are orchestrating a bloodless coup, but they’re perfectly content to have their low-IQ shock troops pursue a bloody coup.

This week, one of the left’s foot soldiers gunned down Republican members of Congress and their staff while they were playing baseball in Virginia. Democratic Socialist James Hodgkinson was prevented from committing a mass murder only by the happenstance of a member of the Republican leadership being there, along with his 24-hour Capitol Police protection.

Remember when it was frightening for the losing party not to accept the results of an election? During the third debate, Trump refused to pre-emptively agree to the election results, saying he’d “look at it at the time.”

The media responded in their usual laid-back style:

A ‘HORRIFYING’ REPUDIATION OF DEMOCRACY — The Washington Post, Oct. 20, 2016

DENIAL OF DEMOCRACY — Daily News (New York), Oct. 20, 2016 DANGER TO DEMOCRACY — The Dallas Morning News, Oct. 20, 2016

ONE SCARY MOMENT; IT ALL BOILED DOWN TO … DEMOCRACY — Pittsburgh Post-Gazette, Oct. 21, 2016

“(Shock) spiked down the nation’s spinal column last night and today when the Republican nominee threatened that this little election thing you got there, this little democratic process you’ve got here, it’s nice, it’s fine, but he doesn’t necessarily plan on abiding by its decision when it comes to the presidency.” — Rachel Maddow, Oct. 20, 2016

 

“Trump’s answer on accepting the outcome of the vote is the most disgraceful statement by a presidential candidate in 160 years.” — Bret Stephens, then-deputy editorial page editor at The Wall Street Journal

“I guess we’re all going to have to wait until Nov. 9 to find out if we still have a country — if Donald Trump is in the mood for a peaceful transfer of power. Or if he’s going to wipe his fat a– with the Constitution.” — CBS’s Stephen Colbert, Oct. 19, 2016

“It’s unprecedented for a nominee of a major party to themselves signal that they would not accept — you know, respect the results of an election. We’ve never had that happen before. … This really presents a potentially difficult problem for governing …” — MSNBC’S Joy Reid, Oct. 22, 2016

“This is very dangerous stuff … would seriously impair our functioning as a democracy. … This is about as serious as it gets in the United States.” — CNN’s Peter Beinart, Oct. 20, 2016

“Obviously, it’s despicable for him to pretend that there’s any chance that he would not accept the results of this election; it would be — in 240 years you’ve never had anybody do it. …” — CNN’s Van Jones, Oct. 20, 2016

Then Trump won, and these very same hysterics refused to accept the results of the election.

Recently, Hillary announced her steadfast opposition to the winning candidate using a military term, saying she’d joined the “Resistance.”

Imagine if Trump lost and then announced that he’d joined the “RESISTANCE.” He’d be accused of trying to activate right-wing militias. Every dyspeptic glance at an immigrant would be reported as fascistic violence.

But the media seem blithely unaware that the anti-Trump “Resistance” has been accompanied by nonstop militaristic violence from liberals.

When Trump ripped up our Constitution and jumped all over it by failing to concede the election three weeks in advance, CNN ran a segment on a single tweet from a random Trump supporter that mentioned the Second Amendment.

Carol Costello: “Still to come in the ‘Newsroom,’ some Trump supporters say they will refuse to accept a loss on Election Day, with one offering a threat of violence. We’ll talk about that next.”

In CNN’s most fevered dreams about a violent uprising of Trump supporters, they never could have conceived of the level of actual violence being perpetrated by Americans who refuse to accept Trump’s win. (See Hate Map.)

It began with Trump’s inauguration, when a leftist group plotted to pump a debilitating gas into one Trump inaugural ball, military families were assaulted upon leaving the Veterans’ Inaugural Ball, and attendees of other balls had water thrown on them.

Since then, masked, armed liberals around the country have formed military-style organizations to beat up conservatives. In liberal towns, the police are regularly ordered to stand down to allow the assaults to proceed unimpeded.

The media only declared a crisis when conservatives fought back, smashing the black-clad beta males. (“Battle for Berkeley!”)

There is more media coverage for conservatives’ “microaggressions” toward powerful minorities -– such as using the wrong pronoun — than there is for liberals’ physical attacks on conservatives, including macings, concussions and hospitalizations.

And now some nut Bernie Sanders-supporter confirms that it’s Republicans standing on a baseball field, before opening fire.

In the media’s strategic reporting of the attempted slaughter, we were quickly told that the mass shooter was white, male and had used a gun. We were even told his name. (Because it was not “Mohammed.”)

But the fact that Hodgkinson’s Facebook page featured a banner of Sanders and the words “Democratic Socialism explained in 3 words: ‘We the People’ Since 1776” apparently called for hours of meticulous fact-checking by our media.

Did reporters think they could keep that information from us forever?

The fake news insists that Trump’s White House is in “chaos.” No, the country is in chaos. But just like Kathy Griffin and her Trump decapitation performance art — the perpetrators turn around in doe-eyed innocence and blame Trump.

Story 2: 24-Floor Grenfell Tower  London Apartment Building Fire — Towering Inferno — Videos

 

Image result for Grenfell Tower: Massive Building Fire

Grenfell Tower: Massive Building Fire In London! – (Compilation) PART 1

Trapped residents in flames & signaling for help at Grenfell Tower (DISTURBING)

BREAKING NEWS London apartment fire: Inferno engulfs 27-story tower, 200 firefighters on scene

London Apartment Building Smoldering After Fire

Published on Jun 14, 2017

A high-rise apartment building in London is still Wednesday morning smoldering after being engulfed in flames.

LONDON RESIDENTS DEMAND ANSWERS IN DEADLY HIGH-RISE BLAZE


 

LONDON (AP) — With smoke still swirling around the charred remains of Grenfell Tower in west London, residents and community leaders demanded to know Wednesday how a ferocious fire could have swept through the high-rise apartment block with such speed that it killed at least 12 people.

The anger was particularly strong since activists had warned just seven months ago that fire safety procedures were so lax that only a catastrophic blaze would bring the scrutiny needed to make the building safe.

WHAT HAPPENED?

Fire and police officials have not specified what went wrong, but extensive video footage shows the flames climbing the exterior of the building at a remarkable pace.

“I’ve never seen a fire like that in my life,” said Joe Ruane, the former deputy chief fire officer for U.S. Air Force bases in Britain. “I’ve never seen that in a residential block.”

The 24-story public housing complex is owned by the local government council in the borough of Kensington and Chelsea and was completed in the 1970s. It is managed by the Kensington and Chelsea Tenant Management Organization, which spent 10 million pounds ($12.8 million) refurbishing the building over the last two years.

The renovation project included installation of insulated exterior cladding, double-glazed windows and a communal heating system. Investigators need to look at what materials were used in the project and who approved their use, Ruane said. But he said the speed with which the fire spread suggests that more than one fire protection safeguard failed.

“It’s not just one thing,” Ruane said. “It’s multiple issues.”

WHAT WAS THE FIRE PROCEDURE AT THE BUILDING?

Some residents suggested that Grenfell Tower’s policies were to blame for the disaster.

A newsletter put out by the building’s tenant organization told tenants to follow a “stay put” policy and remain in their apartments during a fire unless the blaze was inside their apartment or in their hallway or until they were told to evacuate by officials.

This policy is in place “because Grenfell was designed according to rigorous fire-safety standards,” according to the 2014 newsletter about the renovation project. New front doors in each apartment could withstand a fire for up to 30 minutes, “which gives plenty of time for the fire brigade to arrive,” the newsletter said.

That policy, often followed in high-rise hotels, may be effective in lesser fires. In this case, however, the fire seemed to climb the exterior of the tower so quickly that it overwhelmed protective systems like fire doors. People who initially remained in place may have been unable to escape later because the hallways and fire escapes were filled with heavy smoke and flames.

The London Fire Brigade said crews were on the scene within six minutes of the first reports of the fire, but they were unable to reach people on higher floors to prevent fatalities.

WHO IS TO BLAME?

While investigations are underway to determine what went wrong, tenants said repeated complaints were ignored. Survivor Edward Daffarn said the Kensington and Chelsea Tenant Management Organization, or KCTMO, which manages the Grenfell Tower as well as other buildings in the area, is responsible because it ignored numerous warnings.

The management organization’s annual accounts for the year ending March 31, 2016, indicate that the company has been cited for fire-safety issues in the past.

Following an October 2015 arson fire at one of the buildings it manages, the 14-story Adair Tower, the London Fire Brigade issued an enforcement notice to install self-closing devices on the front doors of all 78 apartments and to improve fire safety in staircases used for escape, the organization said in the report.

The Fire Brigade issued a similar notice for another KCTMO-managed building, Hazelwood Tower. The upgrades were scheduled to be completed by 2016, the report said.

The Grenfell Tower disaster is uncomfortably similar to a fast-moving blaze at another London-area public housing project, Lakanal House, that killed six people, including three children, eight years ago. In that July 2009 fire, smoke and flames quickly engulfed the 14-story building. A coroner’s inquest found that a series of failures contributed to the loss of life and made a number of recommendations to help prevent future disasters.

Investigators probing the Grenfell Tower fire will have to look at which of those recommendations were implemented in the building and which were not, said Jim Fitzpatrick, a former firefighter who now serves in the House of Commons.

“These will be matters for the scientists and the engineers … to find out exactly how the fire started, why it spread so quickly and what could have been done to prevent it,” Fitzpatrick told Sky News.

A local community organization, the Grenfell Action Group, had warned about fire dangers at the building since 2013. In a series of blog posts, the group raised concerns about testing and maintenance of fire-fighting equipment and blocked emergency access to the site.

“All our warnings fell on deaf ears, and we predicted that a catastrophe like this was inevitable and just a matter of time,” the group said in a blog post Wednesday.

KCTMO said it is cooperating with investigators and that it was aware of tenant complaints. “We always take all concerns seriously and these will form part of our forthcoming investigations,” it said in a statement.

The Kensington and Chelsea Council promised a full investigation into Wednesday’s tragedy and a public accounting. The UK government also ordered checks at tower blocks that have had or are going through similar renovations as those at Grenfell Tower.

 

 

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The Pronk Pops Show 877, April 20, 2017, Story 1: Ashes to Ashes Dust to Dust Bomb North Korea If You Must — Videos — Story 2: Obama’s Iran Nuclear Agreement Legacy Heading Towards The Wastebasket? No. Certification Granted and Sanctions Suspended — All Talk–No Action — Bad Appeasement Deal Stands — Videos– Story 3: Radical Islamic Terrorist Attack In Paris, France Target Police One Officer Killed and One Wounded and One Shooter Killed and One Escaped — Videos — Story 4 Republicans Return Repeal Replace Obamacare — Compromise Should Pass House by April 28, 2017 Videos —

Posted on April 20, 2017. Filed under: 2016 Presidential Candidates, American History, Bombs, Breaking News, Cartoons, Congress, Countries, Cruise Missiles, Culture, Defense Spending, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Education, Elections, Empires, Foreign Policy, France, Freedom of Speech, Germany, Government, Government Dependency, Government Spending, Great Britain, History, House of Representatives, Human, Iran Nuclear Weapons Deal, Islamic Republic of Iran, Law, Life, Media, MIssiles, News, North Korea, Nuclear, Nuclear Weapons, Obama, Philosophy, Photos, Politics, President Barack Obama, President Trump, Raymond Thomas Pronk, Rule of Law, Russia, Scandals, Security, Senate, South Korea, Taxes, Technology, Ted Cruz, Terror, Terrorism, United States of America, Videos, Violence, War, Wealth, Weapons, Wisdom | Tags: , , , , , , , , , , , , |

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Story 1: Ashes to Ashes Dust to Dust Bomb North Korea If You Must — Videos —

Secretary of State Rex Tillerson says Iran could be the next North Korea

Tillerson Threatens Iran: ‘The Great Destabilizer’?

Trump Shies Away From Striking Down Obama Era Iran Deal: Why It Doesn’t Matter

What’s In The Iran Nuclear Deal?

Implementation of the JCPOA: Is It Working?

WASHINGTON — Secretary of State Rex W. Tillerson described a landmark Iran nuclear deal as a failure on Wednesday, only hours after the State Department said Tehran was complying with its terms. But the top United States diplomat stopped short of threatening to jettison the 2015 agreement that was brokered by world powers, or saying whether the Trump administration would punish Iran with new sanctions.

The whiplash left Republicans on Capitol Hill, who had universally excoriated the agreement to limit Iran’s nuclear program and voted against its implementation, uncertain of how to respond. Its architects, however, said they were cautiously optimistic that the deal would stay in place.

The nuclear deal “fails to achieve the objective of a non-nuclear Iran,” Mr. Tillerson said. “It only delays their goal of becoming a nuclear state.”

He said that Iran continued to threaten the United States and the rest of the world, and he announced that the Trump administration was reviewing ways to counter challenges posed by Tehran.

It was an attempt to clarify a State Department certification, issued shortly before a midnight deadline on Tuesday, that said Iran was complying with the nuclear agreement that also eased crippling international sanctions against the Islamic republic’s economy. During the 2016 campaign, President Trump denounced the agreement as “the worst deal ever,” and Vice President Pence promised to rip it up.

In a hastily called news conference at the State Department on Wednesday, Mr. Tillerson likened Iran to North Korea, whose nuclear weaponry and burgeoning missile technology is what the administration now believes is the gravest risk to world peace and security. Mr. Pence visited Seoul, South Korea, this week to declare that the United States was united with its allies to stem North Korea’s threat.

The Iran deal “represents the same failed approach to the past that brought us to the current imminent threat that we face from North Korea,” Mr. Tillerson told reporters. “The Trump administration has no intention of passing the buck to a future administration on Iran. The evidence is clear: Iran’s provocative actions threaten the United States, the region and the world.”

Once the National Security Council completes a review of the nuclear deal, Mr. Tillerson said, “we will meet the challenges Iran poses with clarity and conviction.”

Hours earlier, late on Tuesday night, Mr. Tillerson sent a terse letter to Speaker Paul D. Ryan pledging to evaluate whether earlier suspension of sanctions against Iran, as required under the terms of the nuclear agreement, “is vital to the national security interests of the United States.”

A man of few words, Mr. Tillerson has sometimes found that his cryptic remarks create more confusion than clarity among allies, friends and even adversaries. Earlier on Wednesday, Sean Spicer, the White House press secretary, offered little additional information about the Iran certification. He refused to say whether the Trump administration would add the Iran deal to a series of other stunning foreign policy reversals it has made by deciding to retain it instead of ripping it up or renegotiating the agreement as promised.

“I think part of the review, the interagency process, is to determine where Iran is in compliance with the deal and to make recommendations to the president on the path forward,” Mr. Spicer said.

The enigmatic remarks left top Republicans on Capitol Hill nonplused. Senator Tom Cotton, the Arkansas Republican who led congressional opposition to the Iran deal, said in a statement that the administration’s “certification is shaky, and it doesn’t mean that the intentions behind Iran’s nuclear program are benign.”

Senator Bob Corker, Republican of Tennessee and chairman of the Foreign Relations Committee, said the Trump administration appeared to be preparing a tougher line against Iran.

“Secretary Tillerson made clear that regardless of Iran’s technical compliance with the nuclear deal, the administration is under no illusion about the continued threat from Tehran and is prepared to work closely with Congress to push back,” Mr. Corker said in a statement on Wednesday.

Tuesday’s certification extends sanctions relief for Iran in exchange for continued constraints on its nuclear program. American sanctions, as approved by Congress, were suspended instead of revoked; they can be reimposed with the stroke of a presidential pen.

The Trump administration has given itself 90 days to complete its review, but it will need to make a series of decisions in coming weeks about whether to continue its support of the deal, which was also brokered with Britain, China, France, Germany and Russia. Those governments, along with representatives of the United States and Iran, will meet next week in Vienna to review the pact’s progress.

Mr. Trump faces a mid-May deadline, as imposed by Congress, to decide whether to continue the suspension of sanctions.

Backing away from the agreement would spur enormous consternation across Europe and in Moscow.

In their first congratulatory phone calls to Mr. Trump after his electoral victory, both President Vladimir V. Putin of Russia and Chancellor Angela Merkel of Germany emphasized the need to keep the Iran deal in place. And after her first meeting with Mr. Tillerson in February, Federica Mogherini, the European Union’s foreign minister, said the Trump administration pledged “to stick to the full strict implementation of the agreement in all its parts.”

Analysts and former government officials said it was unlikely the Trump administration would renounce the Iran agreement.

“I’m glad this deal has held up to this point, and I hope it continues to hold up,” said Wendy Sherman, a former under secretary of state who was deeply involved in negotiating terms of the deal during the Obama administration.

Robert Einhorn, a senior fellow at the Brookings Institution who was involved in Iran policy under President Barack Obama, said it was “pretty much a foregone conclusion” that Mr. Trump would keep the nuclear agreement in place.

Still, the administration has sought since its first days in office to ratchet up pressure on Iran. In January, before he resigned, Michael T. Flynn, then the national security adviser, walked into the White House briefing room and declared that the administration was “officially putting Iran on notice” after it launched a ballistic missile.

The Trump administration has returned the United States to closer ties with its traditional Arab friends in the Middle East, including Saudi Arabia and the United Arab Emirates. Part of those ties means supporting those nations, which are overwhelmingly Sunni Muslim, in their intense rivalry with Iran, a Shiite power.

By contrast, by the end of his second term, Mr. Obama had begun to view those sectarian tensions with a jaundiced eye, believing the United States should not intervene in a millennium-old religious struggle.

Earlier on Wednesday, Mr. Tillerson attended a United States-Saudi Arabia chief executive summit meeting where he declared that he was “pleased to be here today to reaffirm the very strong partnership that exists between the United States and the kingdom of Saudi Arabia.”

Mark Dubowitz, chief executive of the Foundation for Defense of Democracies, a group that sought to defeat the Iran deal, said the administration may still walk away from the agreement or renegotiate it. He contended that the administration “should not be bound by arms control agreements that are deeply flawed.”

And even Ms. Sherman shied away from predicting it will remain in place. “I’m taking this one day at a time,” she said.

https://www.nytimes.com/2017/04/19/world/middleeast/trump-administration-grudgingly-confirms-irans-compliance-with-nuclear-deal.html?_r=0

Joint Comprehensive Plan of Action

From Wikipedia, the free encyclopedia
Joint Comprehensive Plan of Action
Iran Talks Vienna 14 July 2015 (19067069963).jpg

Officials announcing the agreement.
Created 14 July 2015
Ratified N/A (ratification not required)
Date effective
  • 18 October 2015 (Adoption)[1]
  • 16 January 2016 (Implementation)[2]
Location Vienna, Austria
Signatories Iran, P5+1, European Union
Purpose Nuclear non-proliferation

The Joint Comprehensive Plan of Action (JCPOA; Persian: برنامه جامع اقدام مشترک‎, translit. barnāme jāme‘ eqdām moshtarak‎, acronym: برجامBARJAM),[3][4] known commonly as the Iran deal or Iran nuclear deal, is an international agreement on the nuclear program of Iran reached in Vienna on 14 July 2015 between Iran, the P5+1 (the five permanent members of the United Nations Security CouncilChina, France, Russia, United Kingdom, United States—plus Germany),[a] and the European Union.

Formal negotiations toward the Joint Comprehensive Plan of Action on Iran’s nuclear program began with the adoption of the Joint Plan of Action, an interim agreement signed between Iran and the P5+1 countries in November 2013. For the next twenty months, Iran and the P5+1 countries engaged in negotiations, and in April 2015 agreed on an Iran nuclear deal framework for the final agreement and in July 2015, Iran and the P5+1 agreed on the plan.

Under the agreement, Iran agreed to eliminate its stockpile of medium-enriched uranium, cut its stockpile of low-enriched uranium by 98%, and reduce by about two-thirds the number of its gas centrifuges for 13 years. For the next 15 years, Iran will only enrich uranium up to 3.67%. Iran also agreed not to build any new heavy-water facilities for the same period of time. Uranium-enrichment activities will be limited to a single facility using first-generation centrifuges for 10 years. Other facilities will be converted to avoid proliferation risks. To monitor and verify Iran’s compliance with the agreement, the International Atomic Energy Agency (IAEA) will have regular access to all Iranian nuclear facilities. The agreement provides that in return for verifiably abiding by its commitments, Iran will receive relief from U.S., European Union, and United Nations Security Council nuclear-related economic sanctions.

Background

A nuclear weapon uses a fissile material to cause a nuclear chain reaction. The most commonly used materials have been uranium 235 (U-235) and plutonium 239 (P-239). Both uranium 233 (U-233) and reactor-grade plutonium have also been used.[7][8][9] The amount of uranium or plutonium needed depends on the sophistication of the design, with a simple design requiring approximately 15 kg of uranium or 6 kg of plutonium and a sophisticated design requiring as little as 9 kg of uranium or 2 kg of plutonium.[10] Plutonium is almost nonexistent in nature, and natural uranium is about 99.3% uranium 238 (U-238) and 0.7% U-235. Therefore, to make a weapon, either uranium must be enriched, or plutonium must be produced. Uranium enrichment is also frequently necessary fornuclear power. For this reason, uranium enrichment is a dual-use technology, a technology which “can be used both for civilian and for military purposes”.[11] Key strategies to prevent proliferation of nuclear arms include limiting the number of operating uranium enrichment plants and controlling the export of nuclear technology and fissile material.[9][11]

Iranian development of nuclear technology began in the 1970s, when the U.S. Atoms for Peace program began providing assistance to Iran, which was then led by the Shah.[12] Iran signed the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) in 1968 as a non-nuclear weapons state and ratified the NPT in 1970.[12]

In 1979, the Iranian Revolution took place, and Iran’s nuclear program, which had developed some baseline capacity, fell to disarray as “much of Iran’s nuclear talent fled the country in the wake of the Revolution.”[12] Ayatollah Ruhollah Khomeini was initially opposed to nuclear technology; and Iran engaged in a costly war with Iraq from 1980 to 1988.[12]

Starting in the later 1980s, Iran restarted its nuclear program, with assistance from Pakistan (which entered into a bilateral agreement with Iran in 1992), China (which did the same in 1990), and Russia (which did the same in 1992 and 1995), and from the A.Q. Khan network.[12] Iran “began pursuing an indigenous nuclear fuel cycle capability by developing a uranium mining infrastructure and experimenting with uranium conversion and enrichment.”[12] According to the nonpartisan Nuclear Threat Initiative, “U.S. intelligence agencies have long suspected Iran of using its civilian nuclear program as a cover for clandestine weapons development.”[12] Iran, in contrast, “has always insisted that its nuclear work is peaceful”.[13]

In August 2002, the Paris-based National Council of Resistance of Iran, an Iranian dissident group, publicly revealed the existence of two undeclared nuclear facilities, the Arak heavy-water production facility and the Natanz enrichment facility.[12][14] In February 2003, Iranian President Mohammad Khatami acknowledged the existence of the facilities and asserted that Iran had undertaken “small-scale enrichment experiments” to produce low-enriched uranium for nuclear power plants.[12] In late February, International Atomic Energy Agency (IAEA) inspectors visited Natanz.[14] In May 2003, Iran allowed IAEA inspectors to visit the Kalaye Electric Company, but refused to allow them to take samples, and an IAEA report the following month concluded that Iran had failed to meet its obligations under the previous agreement.[14]

In June 2003, Iran—faced with the prospect of being referred to the UN Security Council—entered into diplomatic negotiations with France, Germany, and the United Kingdom (the EU 3).[12][14] The United States refused to be involved in these negotiations.[14] In October 2003, the Tehran Declaration was reached between Iran and the EU 3; under this declaration Iran agreed to cooperate fully with the IAEA, sign the Additional Protocol, and temporarily suspend all uranium enrichment.[12][14] In September and October 2003, the IAEA conducted several facility inspections.[12] This was followed by the Paris Agreement in November 2004, in which Iran agreed to temporarily suspend enrichment and conversion activities, “including the manufacture, installation, testing, and operation of centrifuges, and committed to working with the EU-3 to find a mutually beneficial long-term diplomatic solution”.[12]

In August 2005, Mahmoud Ahmadinejad, a hard-liner, was elected president of Iran. He accused Iranian negotiators who had negotiated the Paris Accords of treason.[14][15] Over the next two months, the EU 3 agreement fell apart as talks over the EU 3’s proposed Long Term Agreement broke down; the Iranian government “felt that the proposal was heavy on demands, light on incentives, did not incorporate Iran’s proposals, and violated the Paris Agreement”.[12][14] Iran notified the IAEA that it would resume uranium conversion at Esfahan.[12][14]

In February 2006, Iran ended its voluntary implementation of the Additional Protocol and resumed enrichment at Natanz, prompting the IAEA Board of Governors to refer Iran to the UN Security Council.[12][14] After the vote, Iran announced it would resume enrichment of uranium.[14] In April 2006, Ahmadinejad announced that Iran had nuclear technology, but stated that it was purely for power generation and not for producing weapons.[14] In June 2006, the EU 3 joined China, Russia, and the United States, to form the P5+1.[14] The following month, July 2006, the UN Security Council passed its first resolution demanding Iran stop uranium enrichment and processing.[14]Altogether, from 2006 to 2010, the UN Security Council subsequently adopted six resolutions concerning Iran’s nuclear program: 1696 (July 2006), 1737 (December 2006), 1747 (March 2007), 1803 (March 2008), 1835 (September 2008), and 1929 (June 2010).[16] The legal authority for the IAEA Board of Governors referral and the Security Council resolutions was derived from the IAEA Statute and the United Nations Charter.[16] The resolutions demanded that Iran cease enrichment activities and imposed sanctions on Iran, including bans on the transfer of nuclear and missile technology to the country and freezes on the assets of certain Iranian individuals and entities, in order to pressure the country.[12][14] However, in Resolution 1803 and elsewhere the Security Council also acknowledged Iran’s rights under Article IV of the NPT, which provides for “the inalienable right … to develop research, production and use of nuclear energy for peaceful purposes”.[16][b]

In July 2006, Iran opened the Arak heavy water production plant, which led to one of the Security Council resolutions.[12] In September 2009, U.S. President Barack Obama, revealed the existence of an underground enrichment facility in Fordow, near Qom saying, “Iran’s decision to build yet another nuclear facility without notifying the IAEA represents a direct challenge to the basic compact at the center of the non-proliferation regime.”[22] Israel threatened to take military action against Iran.[14]

In a February 2007 interview with the Financial Times, IAEA director general Mohamed ElBaradei said that military action against Iran “would be catastrophic, counterproductive” and called for negotiations between the international community and Iran over the Iranian nuclear program.[23] ElBaradei specifically proposed a “double, simultaneous suspension, a time out” as “a confidence-building measure”, under which the international sanctions would be suspended and Iran would suspend enrichment.[23] ElBaradei also said, “if I look at it from a weapons perspective there are much more important issues to me than the suspension of [enrichment],” naming his top priorities as preventing Iran from “go[ing] to industrial capacity until the issues are settled”; building confidence, with “full inspection” involving Iranian adoption of the Additional Protocol; and “at all costs” preventing Iran from “moving out of the [treaty-based non-proliferation] system”.[23]

A November 2007 U.S. National Intelligence Estimate assessed that Iran “halted its nuclear weapons program” in 2003; that estimate and subsequent U.S. Intelligence Community statements also assessed that the Iranian government at the time had was “keeping open the ‘option’ to develop nuclear weapons” in the future.[24] A July 2015 Congressional Research Service report said, “statements from the U.S. intelligence community indicate that Iran has the technological and industrial capacity to produce nuclear weapons at some point, but the U.S. government assesses that Tehran has not mastered all of the necessary technologies for building a nuclear weapon.”[24]

In March 2013, the United States began a series of secret bilateral talks with Iranian officials in Oman, led by William Joseph Burns and Jake Sullivan on the American side and Ali Asghar Khaji on the Iranian side.[14][25] In June 2013, Hassan Rouhani was elected president of Iran.[14][26] Rouhani has been described as “more moderate, pragmatic and willing to negotiate than Ahmadinejad”. However, in a 2006 nuclear negotiation with European powers, Rouhani said that Iran had used the negotiations to dupe the Europeans, saying that during the negotiations, Iran managed to master the conversion of uranium yellowcake at Isfahan. The conversion of yellowcake is an important step in the nuclear fuel process.[27] In August 2013, three days after his inauguration, Rouhani called for a resumption of serious negotiations with the P5+1 on the Iranian nuclear program.[28] In September 2013, Obama and Rouhani had a telephone conversation, the first high-level contact between U.S. and Iranian leaders since 1979, and U.S. Secretary of State John Kerry had a meeting with Iranian foreign minister Mohammad Javad Zarif, signaling that the two countries had an opening to cooperation.[14][28]

After several rounds of negotiations, on 24 November 2013, the Joint Plan of Action, an interim agreement on the Iranian nuclear program, was signed between Iran and the P5+1 countries in Geneva, Switzerland. It consisted of a short-term freeze of portions of Iran’s nuclear program in exchange for decreased economic sanctions on Iran, as the countries work towards a long-term agreement.[29] The IAEA began “more intrusive and frequent inspections” under this interim agreement.[28] The agreement was formally activated on 20 January 2014.[30] On that day, the IAEA issued a report stating that Iran was adhering to the terms of the interim agreement, including stopping enrichment of uranium to 20 percent, beginning the dilution process (to reduce half of the stockpile of 20 percent enriched uranium to 3.5 percent), and halting work on the Arak heavy-water reactor.[28][30]

A major focus on the negotiations was limitations on Iran’s key nuclear facilities: the ArakIR-40heavy water reactor and production plant (which was under construction, but never became operational, as Iran agreed as part of the November 2013 Joint Plan of Action (interim agreement) not to commission or fuel the reactor); the Bushehr Nuclear Power Plant; the Gachin uranium mine; the Fordow Fuel Enrichment Plant; the Isfahan uranium-conversion plant; the Natanz uranium enrichment plant; and the Parchin military research and development complex.[31]

Negotiations

The agreement between the P5+1+EU and Iran on the Joint Comprehensive Plan of Action (JCPOA) is the culmination of 20 months of “arduous” negotiations.[32][33]

The agreement followed the Joint Plan of Action (JPA), an interim agreement between the P5+1 powers and Iran that was agreed to on 24 November 2013 at Geneva. The Geneva agreement was an interim deal,[34] in which Iran agreed to roll back parts of its nuclear program in exchange for relief from some sanctions. This went into effect on 20 January 2014.[35] The parties agreed to extend their talks with a first extension deadline on 24 November 2014[36] and a second extension deadline set to 1 July 2015.[37]

An Iran nuclear deal framework was reached on 2 April 2015. Under this framework Iran agreed tentatively to accept restrictions on its nuclear program, all of which would last for at least a decade and some longer, and to submit to an increased intensity of international inspections under a framework deal. These details were to be negotiated by the end of June 2015. The negotiations toward a Joint Comprehensive Plan of Action were extended several times until the final agreement, the Joint Comprehensive Plan of Action, was finally reached on 14 July 2015.[38][39] The JCPOA is based on the framework agreement from three months earlier.

Subsequently the negotiations between Iran and the P5+1 continued. In April 2014, a framework deal was reached at Lausanne. Intense marathon negotiations then continued, with the last session in Vienna at the Palais Coburg lasting for seventeen days.[40] At several points, negotiations appeared to be at risk of breaking down, but negotiators managed to come to agreement.[40] As the negotiators neared a deal, U.S. Secretary of State John Kerry directly asked Iranian Foreign Minister Mohammad Javad Zarif to confirm that he was “authorized to actually make a deal, not just by the [Iranian] president, but by the supreme leader?”[40] Zarif gave assurances that he was.[40]

Ultimately, on 14 July 2015, all parties agreed to a landmark comprehensive nuclear agreement.[41] At the time of the announcement, shortly before 11:00 GMT, the agreement was released to the public.[42]

The final agreement’s complexity shows the impact of a public letter written by a bipartisan group of 19 U.S. diplomats, experts, and others in June 2015, written when negotiations were still going on.[43][44] That letter outlined concerns about the several provisions in the then-unfinished agreement and called for a number of improvements to strengthen the prospective agreement and win their support for it.[43] After the final agreement was reached, one of the signatories, Robert J. Einhorn, a former U.S. Department of State official now at the Brookings Institution, said of the agreement: “Analysts will be pleasantly surprised. The more things are agreed to, the less opportunity there is for implementation difficulties later on.”[43]

The final agreement is based upon (and buttresses) “the rules-based nonproliferation regime created by the Nuclear Non-Proliferation Treaty (NPT) and including especially the IAEA safeguards system.”[45]

Souvenir signatures of lead negotiators on the cover page of the JCPOA document. The Persian handwriting on top left side is a homage by Javad Zarif to his counterparts’ efforts in the negotiations: “[I am] Sincere to Mr. Abbas [Araghchi] and Mr. Majid [Takht-Ravanchi].”[46]

Signatories

Summary of provisions

The Joint Comprehensive Plan of Action (JCPOA) runs to 109 pages, including five annexes.[33] Major provisions of the final accord include the following:[33][47][48]

Nuclear

JCPOA summary of enrichment-related provisions
(sources: The Economist[49]Belfer Center[50]:29)
Capability Before JCPOA After JCPOA
(for 10-year period)
After 15 years
First-generation
centrifuges installed
19,138 capped at 6,104 Unconstrained
Advanced centrifuges installed 1,008 0 Unconstrained
Centrifuge R&D Unconstrained Constrained Unconstrained
Stockpile of
low-enriched uranium
7,154 kg 300 kg Unconstrained
Stockpile of
medium-enriched uranium
196 kg 0 kg Unconstrained
  • Iran’s current stockpile of low-enriched uranium will be reduced by 98 percent, from 10,000 kg to 300 kg. This reduction will be maintained for fifteen years.[33][51][52][53] For the same fifteen-year period, Iran will be limited to enriching uranium to 3.67%, a percentage sufficient for civilian nuclear power and research, but not for building a nuclear weapon.[51][52][54]However, the number of centrifuges is sufficient for a nuclear weapon, but not for nuclear power.[55] This is a “major decline” in Iran’s previous nuclear activity; prior to watering down its stockpile pursuant to the Joint Plan of Action interim agreement, Iran had enriched uranium to near 20% (medium-enriched uranium).[51][52][53] These enriched uranium in excess of 300 kg of up to 3.67% will be down blended to natural uranium level or be sold in return for natural uranium, and the uranium enriched to between 5% and 20% will be fabricated into fuel plates for the Tehran Research Reactor or sold or diluted to an enrichment level of 3.67%. The implementation of the commercial contracts will be facilitated by P5+1. After fifteen years, all physical limits on enrichment will be removed, including limits on the type and number of centrifuges, Iran’s stockpile of enriched uranium, and where Iran may have enrichment facilities. According to Belfer, at this point Iran could “expand its nuclear program to create more practical overt and covert nuclear weapons options”.[50][56]
  • For ten years, Iran will place over two-thirds of its centrifuges in storage, from its current stockpile of 19,000 centrifuges (of which 10,000 were operational) to no more than 6,104 operational centrifuges, with only 5,060 allowed to enrich uranium,[33][51] with the enrichment capacity being limited to the Natanz plant. The centrifuges there must be IR-1 centrifuges, the first-generation centrifuge type which is Iran’s oldest and least efficient; Iran will give up its advanced IR-2M centrifuges in this period.[31][52][53] The non-operating centrifuges will be stored in Natanz and monitored by IAEA, but may be used to replace failed centrifuges.[57][58] Iran will not build any new uranium-enrichment facilities for fifteen years.[51]
  • Iran may continue research and development work on enrichment, but that work will take place only at the Natanz facility and include certain limitations for the first eight years.[31] This is intended to keep the country to a breakout time of one year.[51]
  • Iran, with cooperation from the “Working Group” (the P5+1 and possibly other countries), will modernise and rebuild the Arak heavy water research reactor based on an agreed design to support its peaceful nuclear research and production needs and purposes, but in such a way to minimise the production of plutonium and not to produce weapons-grade plutonium. The power of the redesigned reactor will not exceed 20 MWth. The P5+1 parties will support and facilitate the timely and safe construction of the Arak complex.[59] All spent fuel will be sent out of the country.[31] All excess heavy water which is beyond Iran’s needs for the redesigned reactor will be made available for export to the international market based on international prices. In exchange, Iran received 130 tons of uranium in 2015 and in late 2016 was approved to receive 130 tons in 2017.[60] For 15 years, Iran will not engage in, or research on, spent fuel reprocessing.[61] Iran will also not build any additional heavy-water reactors or accumulate heavy water for fifteen years.[31]
  • Iran’s Fordow facility will stop enriching uranium and researching uranium enrichment for at least fifteen years; the facility will be converted into a nuclear physics and technology center. For 15 years, Fordow will maintain no more than 1,044 IR-1 centrifuges in six cascades in one wing of Fordow. “Two of those six cascades will spin without uranium and will be transitioned, including through appropriate infrastructure modification,” for stable radioisotope production for medical, agricultural, industrial, and scientific use. “The other four cascades with all associated infrastructure will remain idle.” Iran will not be permitted to have any fissile material in Fordow.[31][51][53]
  • Iran will implement an Additional Protocol agreement which will continue in perpetuity for as long as Iran remains a party to the Nuclear Non-Proliferation Treaty (NPT). The signing of the Additional Protocol represents a continuation of the monitoring and verification provisions “long after the comprehensive agreement between the P5+1 and Iran is implemented”.[62]
  • A comprehensive inspections regime will be implemented in order to monitor and confirm that Iran is complying with its obligations and is not diverting any fissile material.[51][52][c]
    • The IAEA will have multilayered[73] oversight “over Iran’s entire nuclear supply chain, from uranium mills to its procurement of nuclear-related technologies“.[74] For declared nuclear sites such as Fordow and Natanz, the IAEA will have “round-the-clock access” to nuclear facilities and will be entitled to maintain continuous monitoring (including via surveillance equipment) at such sites.[74][75] The agreement authorizes the IAEA to make use of sophisticated monitoring technology, such as fiber-optic seals on equipment that can electronically send information to the IAEA; infrared satellite imagery to detect covert sites, “environmental sensors that can detect minute signs of nuclear particles”; tamper-resistant, radiation-resistant cameras.[43][76] Other tools include computerized accounting programs to gather information and detect anomalies, and big data sets on Iranian imports, to monitor dual-use items.[73]
    • The number of IAEA inspectors assigned to Iran will triple, from 50 to 150 inspectors.[43]
    • If IAEA inspectors have concerns that Iran is developing nuclear capabilities at any non-declared sites, they may request access “to verify the absence of undeclared nuclear materials and activities or activities inconsistent with” the agreement, informing Iran of the basis for their concerns.[75] The inspectors would only come from countries with which Iran has diplomatic relations.[77] Iran may admit the inspectors to such site or propose alternatives to inspection that might satisfy the IAEA’s concerns.[75] If such an agreement cannot be reached, a process running to a maximum of 24 days is triggered.[75] Under this process, Iran and the IAEA have 14 days to resolve disagreements among themselves.[75] If they fail to, the Joint Commission (including all eight parties) would have one week in which to consider the intelligence which initiated the IAEA request. A majority of the Commission (at least five of the eight members) could then inform Iran of the action that it would be required to take within three more days.[78][79] The majority rule provision “means the United States and its European allies—Britain, France, Germany and the EU—could insist on access or any other steps and that Iran, Russia or China could not veto them”.[78] If Iran did not comply with the decision within three days, sanctions would be automatically reimposed under the snapback provision (see below).[79]

As a result of the above, the “breakout time”—the time in which it would be possible for Iran to make enough material for a single nuclear weapon—will increase from two to three months to one year, according to U.S. officials and U.S. intelligence.[33][51][80][d] An August 2015 report published by a group of experts at Harvard University‘s Belfer Center for Science and International Affairs concurs in these estimates, writing that under the JCPOA, “over the next decade would be extended to roughly a year, from the current estimated breakout time of 2 to 3 months”.[50] The Center for Arms Control and Non-Proliferation also accepts these estimates.[82][83] By contrast, Alan J. Kuperman, coordinator of the Nuclear Proliferation Prevention Project at the University of Texas at Austin, disputed the one-year assessment, arguing that under the agreement, Iran’s breakout time “would be only about three months, not much longer than it is today”.[84]

The longer breakout time would be in place for at least ten years; after that point, the breakout time would gradually decrease.[33][80] By the fifteenth year, U.S. officials state that the breakout time would return to the pre-JCPOA status quo of a few months.[33][80] The Belfer Center report states: “Some contributors to this report believe that breakout time by year 15 could be comparable to what it is today—a few months—while others believe it could be reduced to a few weeks.”[50]

Exemptions

Reuters reported that exemptions were granted to Iran prior to January 16, 2016. The reported purpose of the exemptions was so that sanctions relief and other benefits could start by that date, instead of Iran being in violation. The exemptions included: (a) Iran able to exceed the 300 Kg of 3.5% LEU limit in the agreement; (b) Iran able to exceed the zero Kg of 20% LEU limit in the agreement; (c) Iran to keep operating 19 “hot cells” that exceed the size limit in the agreement; (d) Iran to maintain control of 50 tonnes of heavy water that exceed the 130 tonne limit in the agreement by storing the excess at an Iran-controlled facility in Oman.[85] In December 2016, the IAEA published decisions of the Joint Commission that spell out these clarifications of the JCPOA.[86]

Sanctions

Further information: Sanctions against Iran

The following provisions regarding sanctions are written into the JCPOA:

  • Following the issuance of a IAEA report verifying implementation by Iran of the nuclear-related measures, the UN sanctions against Iran and some EU sanctions will terminate and some will be suspended. Once sanctions are lifted, Iran will recover approximately $100 billion of its assets (U.S. Treasury Department estimate) frozen in overseas banks.[87]
    • Eight years into the agreement, EU sanctions against a number of Iranian companies, individuals and institutions (such as the Revolutionary Guards) will be lifted.[88]
  • The United States will “cease” application of its nuclear-related secondary sanctions[89] by presidential action or executive waiver.[90]Secondary sanctions are those that sanction other countries for doing business with Iran. Primary U.S. sanctions, which prohibit U.S. firms from conducting commercial transactions with few exceptions, are not altered by the JCPOA.[91]
    • This step is not tied to any specific date, but is expected to occur “roughly in the first half of 2016”.[89][92][93]
    • Sanctions relating to ballistic missile technologies would remain for eight years; similar sanctions on conventional weapon sales to Iran would remain for five years.[33][94]
    • However, all U.S. sanctions against Iran related to alleged human rights abuses, missiles, and support for terrorism are not affected by the agreement and will remain in place.[53][95] U.S. sanctions are viewed as more stringent, since many have extraterritorial effect (i.e., they apply worldwide). EU sanctions, by contrast, apply only in Europe.[88]
  • No new UN or EU nuclear-related sanctions or restrictive measures will be imposed.[96]
  • If Iran violates the agreement, any of the P5+1 can invoke a “snap back” provision, under which the sanctions “snap back” into place (i.e., are reimplemented).[51][52][96]
    • Specifically, the JCPOA establishes the following dispute resolution process: if a party to the JCPOA has reason to believe that another party is not upholding its commitments under the agreement, then the complaining party may refer its complaint to the Joint Commission, a body created under the JCPOA to monitor implementation.[53][97] If a complaint made by a non-Iran party is not resolved to the satisfaction of the complaining party within thirty-five days of referral, then that party could treat the unresolved issue as grounds to cease performing its commitments under the JCPOA, notify the United Nations Security Council that it believes the issue constitutes significant non-performance, or both.[97] The Security Council would then have thirty days to adopt a resolution to continue the lifting of sanctions. If such a resolution is not adopted within those thirty days, then the sanctions of all of the pre-JCPOA nuclear-related UN Security Council resolutions would automatically be re-imposed. Iran has stated that in such a case, it would cease performing its nuclear obligations under the deal.[42][97] The effect of this rule is that any permanent member of the Security Council (United States, United Kingdom, China, Russia and France) can veto any ongoing sanctions relief, but no member can veto the re-imposition of sanctions.
    • Snapback sanctions “would not apply with retroactive effect to contracts signed between any party and Iran or Iranian individuals and entities prior to the date of application, provided that the activities contemplated under and execution of such contracts are consistent with this JCPOA and the previous and current UN Security Council resolutions”.[57]

Ankit Panda of The Diplomat states that this will make impossible any scenario where Iran is non-compliant with the JCPOA yet escapes re-imposition of sanctions.[97] Mark Dubowitz of the Foundation for Defense of Democracies (which opposes the agreement) argues, however, that because the JCPOA provides that Iran could treat reinstatement of sanctions (in part or entirely) as grounds for leaving the agreement, the United States would be reluctant to impose a “snapback” for smaller violations: “The only thing you’ll take to the Security Council are massive Iranian violations, because you’re certainly not going to risk the Iranians walking away from the deal and engaging in nuclear escalation over smaller violations.”[98]

Records

According to several commentators, JCPOA is the first of its kind in the annals of non-proliferation and is in many aspects unique.[99][100][101][102][103]

The 159-page JCPOA document and its five appendices, is the most spacious text of a multinational treaty since World War II.[104] Throughout the history of international law, this is the first and only time that a country subject to Chapter VII of the United Nations CharterIran – has managed to end its case and stop being subject to this chapter through diplomacy.[104][105][106] All other cases have ended through either regime change, war or full implementation of the Security Council’s decisions by the country.[107]

This is the first time that the United Nations Security Council has recognized the nuclear enrichment program of a developing countryIran[104][108] and backs an agreement (JCPOA) signed by several countries within the framework of a resolution (United Nations Security Council Resolution 2231).[104][109] For the first time in the history of the United Nations, a country –Iran– was able to abolish 6 UN resolutions against it –1696, 1737, 1747, 1803, 1835, 1929– without even one day of implementating them.[104]Sanctions against Iran was also lifted for the first time.[104]

In the 47-year history of the Nuclear Non-Proliferation Treaty (NPT), no country other than Iran has ever voluntarily agreed to put extraordinary restrictions on its nuclear activities.[110]

During the final negotiations, U.S. Secretary of StateJohn Kerry stayed in Vienna for 17 days, making him the top American official devoting time to a single international negotiation in more than four decades.[111]Mohammad Javad Zarif broke the record of an Iranian Foreign Minister being far from home with 18-days stay in Vienna,[104] and set the record of 106 days of negotiations in 687 days, a number higher than any other chief nuclear negotiator in 12 years.[112] The negotiations became the longest continuous negotiations with the presence of all foreign ministers of the permanent members of the United Nations Security Council.[104]

Pictured here, Iranian foreign affairs minister and U.S. secretary of state shaking hands at the end of negotiations on 14 July 2015, Vienna. They shook hands on 26 September 2013 in the United Nations Headquarters for the first time.[113]

The negotiations included ‘rare events’ in Iran–United States relations not only since the 1979 Iranian Revolution, but also in the history of the bilateral relations. The U.S. Secretary of State and Iranian Foreign Minister met on 18 different dates –sometimes multiple occasions a day– and in 11 different cities, unprecedented since the beginning of the relations.[114] On 27 April 2015, John Kerry visited the official residence of the Permanent Representative of Iran to the United Nations –which counts as Iranian soil– to meet his counterpart. The encounter was the first of its kind since the Iran hostage crisis.[114][115] On the sidelines of the 70th session of the United Nations General Assembly, U.S. PresidentBarack Obama shook hands with the Iranian foreign minister Javad Zarif, marking the first such event in history. The event was also noted in form of diplomatic ranks, as a head of state shook hands with a minister.[116] Obama is reported to have said in the meeting: “Too much effort has been put into the JCPOA and we all should be diligent to implement it.”[117]

https://en.wikipedia.org/wiki/Joint_Comprehensive_Plan_of_Action

Story 3: Radical Islamic Terrorist Attack In Paris, France Target Police One Officer Killed and One Wounded and One Shooter Killed and One Escaped — Videos — 

Image result for paris france shootings april 20, 2017 Image result for paris france shootings april 20, 2017

One Officer Killed, One Wounded In Paris Shooting | NBC News

Trump Says Paris Shooting Looks Like Terror Attack

BREAKING Paris ISLAMIC Terrorist with Machine Gun kills police officer 2nd hurt April 20 2017 News

BREAKING!!! TERROR ATTACK IN PARIS!!!

Paris shooting ‘looks like another terrorist attack’ Trump says: ‘It just never ends’

  • The U.S. president addressed the assault on two police officers at a news conference Thursday afternoon in the White House’s East Room
  • French police say the incident involving at least two gunman was probably a ‘terrorist act’ 
  • ‘We have to be strong, and we have to be vigilant, and I’ve been saying it for a long time,’ Trump said 

President Donald Trump says a shooting in Paris today ‘looks like another terrorist attack.’

The U.S. president addressed the assault on two police officers at a news conference Thursday afternoon.

‘It just never ends,’ he said of the terror threat from the White House’s East Room.

French police say the incident involving at least two gunman was probably a ‘terrorist act.’

President Donald Trump says a shooting in Paris today 'looks like another terrorist attack.'

President Donald Trump says a shooting in Paris today ‘looks like another terrorist attack.’

White House press secretary Sean Spicer said just before the news conference began that Trump had been briefed on the shooting that happened while he was meeting with the Italian prime minister.

‘Condolences from our country to the people for France again. It’s happening it seems,’ Trump said from the podium. ‘I just saw it as I was walking in, so it’s a terrible thing and it’s a very, very terrible thing that’s going on in the world today.’

Trump did not comment on the assault at the top of his remarks but said after he was asked for a reaction, ‘It looks like another terrorist attack, and what can you say? It just never ends.

‘We have to be strong, and we have to be vigilant, and I’ve been saying it for a long time,’ Trump told Fox News’ John Roberts.

France is in the process of holding a national election. The first round of voting begins on April 23.

A gunman wielding an AK-47 killed one police officer and wounded another today on the Champs-Elysees. The assailant was killed in the showdown with police, Paris police have said. Another suspect is believed to have been involved, as well.

Police just two days ago 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 and 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.

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

A French police officer was tonight shot dead on the Champs Elysees in Paris (pictured) - just as presidential candidates took part in a TV debate nearby

A French police officer was tonight shot dead on the Champs Elysees in Paris (pictured) – just as presidential candidates took part in a TV debate nearby

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 Emanuel Macron and National Front (FN) leader Marine Le Pen have been out in front.

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

Opinion polls now show there is a chance that any of the four leading candidates could reach the second-round run-off on May 7 if none of them reach a majority in this weekend’s election.

http://www.dailymail.co.uk/news/article-4430264/Paris-shooting-looks-like-terror-Trump-says.html

PARIS SHOOTING

Paris shooting leaves one policeman dead and ‘two seriously injured’ as ‘ISIS terrorists armed with AK47s’ open fire on the Champs-Élysée in Paris

The officers were gunned down in the central boulevard of the famous street at around 9pm local time

A POLICEMAN has died and two are seriously injured after at least one gunman opened fire “with an AK47” in central Paris this evening.

A 39-year-old gunman was killed by police following the “terror attack” at the central boulevard of the Champs-Élysé, which ISIS have claimed responsibility for.

Paris

REUTERS
Three policemen have been shot – one dead – in Paris

Paris

GETTY IMAGES
A man raises his arms in front of police officers close to the scene in Paris

Paris

REUTERS
Forensics search a car thought to have been driven by the attacker

Arc De Triomph

EPA
Emergency services guard the Arc De Triomph
 

Footage potentially show s the moments after the Paris shootingPolice say the suspect was from an eastern Paris in suburb, despite ISIS naming him as a Belgian national on their Amaq news agency.

He is thought to have been known to security services for “extremist links”.

The shooter’s house in an eastern Paris suburb and other addresses are being searched by officers, a source told Reuters.

Cops have said they are hunting a second suspect who may or may not be involved in the incident.

Local police advised people to avoid the area after shots were fired at around 9pm local time.

Witnesses said the attacker pulled up beside a stationery police car and fired through the window.

“He parked just behind the van and he got out with a Kalashnikov and I heard six gunshots,” a witness named Chelloug said.

“I thought they were firecrackers, because we all looked around the road and there was no one.

“In fact, he was hidden behind the van and shooting at the police.

Champs-Élysée

TWITTER
The officers were gunned down at around 9pm local time

police

REUTERS
A police van at the scene in Paris, where a policeman has been shot
 

Eyewitness of the Paris shooting says he heard six gun shots between police and the gunman

 

Two French police officers killed by gunman in Paris ‘terror’ attack”I think he hit a policeman. As soon as the policeman opened the door of the van, he fell, I think.

“As soon as we saw that, we all ran back inside (a building). We hid and I went up to the first floor and we saw them (the policeman) shoot him (the perpetrator).”

He added: ” I was afraid. I have a two year-old girl and I thought I was going to die… He shot straight at the police officer.”

President Francois Hollande said officials are “convinced” the incident is a terror attack.

Paris Prosecutor’s anti-terror office has opened an inquiry.

Champs-Elysees boulevard

GETTY IMAGES
The shooting took place at the iconic Champs-Elysees boulevard

as-map-paris-shooting

The policeman was shot dead on the central boulevard of the Champs-Elysees

Paris

Police on high alert after three officers were shot in Paris

Paris shooting leaves one policeman dead and 'two seriously injured' as 'ISIS terrorists armed with AK47s' open fire on the Champs-Élysée in Paris

Women raise their arms as they head towards armed police

Eyewitness of the Paris shooting says he heard six gun shots between police and the gunman

 

ISIS claims it was behind Paris police shootingYvan Assioma of the police union Alliance said: “The exact circumstances are still unclear but I can confirm the tragic death of one of our colleagues. Our thoughts are very much with the family.

“One or several attackers have been shot dead by the police. Some officers were hit but the bullets were stopped by their bulletproof vests, but two were hit.

“Nothing is being ruled out for the time being, terrorism or a criminal act.”

Eiffel tower

The Eiffel Tower is seen behind police cars

Paris

TWITTER/JAMES MATE
As police car at the scene in Paris, where a police officer has reportedly been killed

Paris shooting leaves one policeman dead and 'two seriously injured' as 'ISIS terrorists armed with AK47s' open fire on the Champs-Élysée in Paris

A soldier stands guard in front of the illuminated Arc De Triomphe
 

Champs-Elysees in Paris evacuated after two police officers shot dead

 

French police closes traffic on Champs Elysees after shootingA Government spokesperson said: “An automatic weapon was used against police, a weapon of war.

“The shooting started shortly after 9pm, when a car stopped alongside a stationary police car.

“A man immediately got out and opened fire on the police car, fatally wounding a police officer. He also wounded a second one, it would seem very seriously.”

The shooting happened near the Métro station Franklin D Roosevelt and the Marks and Spencer store on the Champs-Elysées.

It is one of the most famous streets in the world and a busy tourist hub.

Armed police and emergency services have been spotted at the scene.

Paris

Passersby raise their arms as they pass the scene

Police

An armed policeman stands guard with the Arc de Triomphe in the background

Police

Emergency services at the scene of a fatal shooting in Paris

Paris

Members of the public have been advised to steer clear of the area

police

A police cordon is in place around the scene
 

Armed officers tak e position behind a kiosk on the Champs ElyséesFrance’s President Francois Hollande has scheduled an emergency meeting following the shootings.

French Presidential candidates Marine Le Pen and Francois Fill0n have cancelled their trips tomorrow.

The shooting comes just just days ahead of France’s presidential election.

On Tuesday, 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.

PAris

A soldier guides people away from the scene in Paris

PAris

AP:ASSOCIATED PRESS
A police officer close to the Arc De Triomphe in Paris

Paris

Armed police at the scene in Paris

Paris

Emergency services rushed to the scene in Paris
 

Policeman shot dead and ‘two seriously injured’ on Champs-Élysé, Paris

 

Police officers evacuate people off the Champs Elysees after ‘terror attack’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.

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.”

https://www.thesun.co.uk/news/3376910/paris-shooting-terror-attack-champs-elysees/

Story 4: Republicans Return Repeal Replace Obamacare — Compromise Should Pass House by April 28, 2017 Videos —

House Republicans Close To Obamacare Repeal

Published on Apr 20, 2017

House Freedom Caucus and moderate Republicans are edging closer to a deal on repealing Obamacare. The agreement, brokered by House Freedom Caucus chairman Mark Meadows (R-NC) and Tuesday Group co-chairman Tom MacArthur (R-NJ), would allow states to eliminate Obamacare’s community rating system, a rule that prohibits health insurers from pricing health care plans based on age, gender, or health status. States that repeal Obamacare’s community rating rules would have to join a federal high-risk pool or establish a local high-risk pool to obtain the waiver.

Ryan Claims GOP Healthcare Bill Still Alive

Reviving Obamacare repeal and replace efforts an uphill battle for GOP?

Andy Puzder on Trump’s renewed push to repeal, replace ObamaCare

It’s going to be nearly impossible for Republicans to repeal and replace Obamacare next week

Paul Ryan donald trump

The developing plan from House Republicans to push forward their overhaul of the US healthcare system has one big problem: timing.

According to reports, the White House is pushing to get a deal done on the American Health Care Act by April 28 to show progress on their pledge to repeal and replace Obamacare during President Donald Trump’s first 100 days.

A new amendment leaked Wednesday night appears to be a compromise between the leaders of the conservative House Freedom Caucus and moderate Tuesday Group that could produce some movement on the bill in that timeframe.

But Congress faces another looming deadline by April 28: funding the federal government. If no new funding bill is passed by next Friday, parts of the federal government will shut down.

Washington is not known for multitasking, and it could be difficult to get a funding bill passed as the White House and lawmakers push to add policy proposals to the funding bill. Given the political ramifications of the issue, the shutdown fight could consume the calendar.

According to Politico, the White House and Congress are considering passage of a one-week extension on funding in order to hash out a more considered funding bill and possibly give the House time to take up the AHCA, which became colloquially known as “Trumpcare.”

Barring such an extension, however, it would be highly unlikely that the American Health Care Act moves forward before Trump’s 100th day in the Oval Office.

http://www.businessinsider.com/trumpcare-ahca-house-gop-government-shutdown-problem-2017-4

Here’s the plan that some Republican leaders think will get their Obamacare repeal bill to pass

Paul Ryan

House Speaker Paul Ryan, the Wisconsin Republican, said on Wednesday that the GOP was putting the “finishing touches” on an Obamacare deal. J. Scott Applewhite/AP

Republicans are closing in on a deal to try — again — to push their plan to repeal and replace Obamacare through the House.

The compromise, first reported by Matt Fuller and Jonathan Cohn at The Huffington Post, would allow states to obtain a waiver from the federal government to do away with certain protections from the Affordable Care Act, aka Obamacare.

According to The Huffington Post, the deal would initially keep two provisions — essential health benefits and community rating — favored by moderate GOP lawmakers but allow states to waive these protections. In order to waive the protections, states would have to fulfill two provisions: prove that the waiver would bring down costs and either join a federal high-risk pool or establish their own.

The full text of the proposed amendment, obtained by Politico’s Jake Sherman and Anna Palmer, states that the waiver would be granted by the federal government if the state can prove that it has an alternative to “reduce premium costs, increase the number of persons with healthcare coverage, or advance another benefit to the public interest in the state.”

Essential health benefits require insurers to cover a baseline of health procedures such as prenatal care and emergency room visits. Community rating means that insurers must charge people living in the same area the same price for insurance regardless of things such as age, gender, or preexisting conditions.

“The gist of this is that federal protections for pre-existing conditions and required benefits remain…unless a state doesn’t want them to,” tweeted Larry Levitt, senior vice president at health policy think thank The Kaiser Family Foundation on Thursday.

Without the community rating, insurers could charge people with preexisting conditions higher premiums and some policy experts fear this could price sick people out of the market.

However, this means that the Trump administration, most likely Secretary of Health and Human Services Tom Price, would have final say on whether or not a waiver is granted.

While the deal was reportedly reached by conservative House Freedom Caucus chair Rep. Mark Meadows and moderate Tuesday Group chair Rep. Tom MacArthur, it also bears similarities to a previous deal that drew the ire of moderates for going too far in pulling back protections.

Additionally, it does not address the concerns of moderates such as the defunding of Medicaid expansion or the estimates that the Affordable Health Care Act could leave up to 24 million fewer people without health coverage over the next 10 years.

The Washington Post’s Robert Costa reported after the amendment’s outline was leaked that the GOP leadership is planning to release the exact language for the amendment later on Thursday and are targeting Wednesday for a vote on the revised bill, but that could change.

According to CNBC, a Freedom Caucus source said the changes would bring 18 to 20 members of the group who were originally against the AHCA over to a “yes” vote on the bill. It is unclear how many moderate Republicans would shift to a “no.” By most accounts the House GOP was as many as 33 votes short of the needed number when the AHCA went to the House floor on March 24.

The amendment comes the day after reports that the White House was pushing for a deal to be completed by the end of next week in order to show progress during Trump’s first 100 days as president. Additionally, House Speaker Paul Ryan said in London on Wednesday that the GOP was putting the “finishing touches” on an Obamacare deal.

Passing the AHCA, even with the proposed changes, would be difficult in the short-term as Congress must also pass a bill to fund the federal government before parts of it shut down on April 28.

Read the full summary of the amendment, via Politico (PDF) »

Treasury’s Mnuchin: We’re ‘pretty close’ to bringing forward ‘major tax reform’

Jacob Pramuk |

U.S. Treasury Secretary Steven Mnuchin speaks at 2017 Institute of International Finance (IIF) policy summit in Washington, U.S., April 20, 2017.

Mnuchin: Most significant tax code change since Reagan  9 Hours Ago | 01:19

The Trump administration is close to bringing forward “major tax reform,” Treasury Secretary Steven Mnuchin said Thursday, days after he tempered expectations for how quickly it will pass.

Mnuchin, who this week backed off of his earlier goal of passing tax reform by August, said the White House will unveil a plan “very soon.” However, the Trump administration previously missed several of its deadlines for releasing its tax plan.

In terms of timing, he said he hoped passing a tax overhaul will not “take till the end of the year.”

Mnuchin spoke at the Institute of International Finance Washington Policy Summit, where White House chief economic advisor Gary Cohn was set to appear later Thursday.

In a Financial Times interview published Monday, Mnuchin said getting a bill to President Donald Trump‘s desk before August is “highly aggressive to not realistic at this point.” He said in February that he wanted to see “very significant” tax reform passed by Congress’ August recess.

The business community has hoped Republicans can move quickly on overhauling the American tax system, a prospect that partly fueled stock market gains in the months following Trump’s election. However, political realities have tempered expectations for changes to the tax system.

Republicans attempted to pass legislation to replace the Affordable Care Act before moving to a tax reform bill. That effort failed late last month, and Mnuchin said the setback contributed to his assessment that passing a tax overhaul by August could be difficult.

Trump put the pressure back on Tuesday after Mnuchin and Cohn appeared to walk back expectations for how quickly tax reform will happen. He called out Mnuchin by name during a speech at Snap-on headquarters in Wisconsin.

“So we’re in very good shape on tax reform. We have the concept of the plan. We’re going to be announcing it very soon,” Trump said at that time. “But health care, we have to get the health care taken care of, and as soon as health care takes care of we are going to march very quickly. You’re going to watch. We’re going to surprise you. Right, Steve Mnuchin? Right?”

Even though the president sounded optimistic Tuesday, the Trump administration has set deadlines for tax policy before that have not come to pass. In late February, Trump said the tax plan was “very well finalized,” only a day after press secretary Sean Spicer said it would be released “in the next couple weeks.

Republicans have refocused on resurrecting the effort to repeal the ACA, better known as Obamacare, as they get set to return from a recess next week. House GOP leaders are trying to balance the concerns of the both the party’s conservative and moderate wings as they try to follow through on a major campaign pledge.

Mnuchin said Thursday that “whether health care gets done or health care doesn’t get done, we’re going to get tax reform done.”

http://www.cnbc.com/2017/04/20/treasurys-mnuchin-were-pretty-close-to-bringing-forward-major-tax-reform.html

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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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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/

Story 2: Stagnating United States Economy — The Great Stagnation — Videos —

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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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