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Trump, wooing Democrats, says he asked accountant how he’d be affected by GOP tax bill

November 8, 2017 by  
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President Trump on Tuesday made a personal appeal from across the globe to ask moderate Senate Democrats to support the emerging Republican tax plan, saying he has explored the impact of the plan on his personal finances and believes it won’t help the rich.

At a meeting of administration officials and moderate Democratic Senators, National Economic Council Director Gary Cohn pulled out his cellphone and took a call from Trump, who is traveling in Asia this week, according an account of the meeting from Sen. Sherrod Brown (D-Ohio) — one of the Democrats gathered for a meeting organized by Sen. Joe Manchin III (D-W.Va.) to hear about the GOP plan.

Trump pitched the plan as a benefit to the middle class that comes at the expense of the rich — an assessment at odds with independent tax experts who have analyzed the bill and concluded the bulk of its benefits go to corporations and the wealthy.

Trump told the senators that he has spoken to his own accountant about the tax plan and that he would be a “big loser” if the deal is approved as written, according to multiple people in the room who heard the president on the phone.

“The deal is so bad for rich people, I had to throw in the estate tax just to give them something,” Trump said, according to the people, who spoke on the condition of anonymity to share details of the meeting.

The nonpartisan Joint Committee on Taxation, Congress’ tax policy analyst, found the House GOP bill as written would broadly cut taxes, but that the bulk of the benefits would go to corporations and the very wealthy. The analysts also concluded that families earning between $20,000 and $40,000 a year and between $200,000 to $500,000 would, on average, pay more in individual income taxes in 2023 and beyond.

Several Democrats in attendance once again presented proposals to be included in the tax plan, as they have in previous meetings with Trump, senior administration officials and GOP congressional leaders. Senate GOP leaders are slated to release a bill Thursday that would need support from their party’s moderates to pass.

Along with Brown and Manchin, the meeting was attended by Democratic Sens. Sherrod Brown (Ohio), Ron Wyden (Ore.), Michael F. Bennet (Colo.), Gary Peters (Mich.), Maggie Hassan (N.H.), Christopher A. Coons (Del.), Joe Donnelly (Ind.), Thomas R. Carper (Del.) and Heidi Heitkamp (N.D.). Sen. Angus King, a Maine independent who caucuses with Democrats, also attended.

“It was very good, very constructive. It’s great to have conversations,” Cohn said as he left the meeting.

Manchin described it as a “first supper,” while Carper called it “only the beginning” of talks he expects to continue in the coming days.

“If Gary Cohn and Marc Short were left to their own devices and their own instincts, we could come pretty close to hammering something out,” Carper said.

“This effort to just jam it through, straight Republican votes on an accelerated scheduled will lead to failure. But in that failure, lies opportunity and then we’ll have a chance to do it right,” he added.

House Republicans, meanwhile, faced new pressure from conservatives to make changes to their sweeping tax plan, days before it is set to go to the House floor.

The president of the Club for Growth, an influential group promoting tax cuts, issued a statement Tuesday saying parts of the House bill “fails the pro-growth test,” while social conservative groups pushed lawmakers to restore a tax credit for families who adopt children.

“All in all, this bill must be changed if Republicans intend to keep their promise of real pro-growth, job-creating tax cuts,” Club for Growth’s president, David McIntosh, said, advocating for changes that would further reduce the tax bills owed by the wealthy.

The group is calling on lawmakers to the cut tax rate on income over $1 million, which the House bill as currently written would leave unchanged at 39.6 percent. The group also wants the bill’s authors to make it easier for businesses to claim a lower 25 percent income tax rate, as well as to speed up their planned repeal of the estate tax, in a bid to promote economic growth.

Meanwhile, groups including the National Right to Life Committee, Focus on the Family and the U.S. Conference of Catholic Bishops mobilized to restore an existing tax credit that’s worth up to $13,570 for families who adopt children.

A petition circulated Tuesday to members of March for Life, a leading antiabortion group, said that the loss of the adoption tax credit would “adversely affect families seeking to adopt.”

“Adoption is a critically important pro-life effort, and the adoption tax credit is a significant government policy to encourage and enable it,” the petition said.

The push from the right adds new complications for House Ways and Means Committee Chairman Kevin Brady (R-Tex.), the House’s top tax writer and the author of the GOP tax bill released last week, as he moves the legislation toward a planned floor vote next week.

The proposed changes would further decrease government revenue and add to the federal deficit. Brady’s bill is already close to proposing $1.5 trillion in new deficit spending, a limit GOP tax legislation can’t go past if Republicans are to use the special process they need to get the bill through the Senate over Democratic opposition.

The nonpartisan Joint Committee on Taxation estimated this year that the adoption tax credit would cost $2.2 billion between 2016 and 2020. The changes advocated by the Club for Growth could cost much more — tens, if not hundreds of billions of dollars.

To accommodate the requests, Brady would have to find new tax revenue elsewhere, possibly by shrinking the size of provisions in the bill aimed at benefiting middle- and working-class households.

In a morning interview with conservative talk show host Hugh Hewitt, Brady said that changes to help adoptive families are under discussion but also argued that the GOP bill as written offers broad benefits to adoptive families.

“We know how important this is, but it doesn’t help a lot of families,” said Brady, the father of two adopted sons. “Do we want to stick with the old credit, which leaves fewer and fewer people behind, and helps one time in your life, or do we go with the tax cuts that provide about $2,000 a year, and the new family credit that helps you with your child every year of their life?”

Brady said he was still considering another conservative demand — repealing the Affordable Care Act’s individual mandate to purchase insurance. That move, supported by President Trump, would please the health care law’s opponents and could generate hundreds of billions of dollars to offset cuts elsewhere. But it would create a major new political hurdle for the bill, and Brady has thus far declined to include it in bill.

Brady said Tuesday that the mandate’s repeal is an “area that we are looking at carefully.”

Senate Republicans say they expect to introduce their tax bill on Thursday, as Republicans in both chambers push to pass legislation by Thanksgiving with the eventual goal of sending a unified bill to Trump’s desk by year’s end.

Undermining the Affordable Care Act — often referred to as “Obamacare” — through a tax overhaul would probably draw the same type of opposition that several earlier repeal efforts did earlier this year and kill any attempt at a bipartisan bill.

Senate Republican leaders face a challenge in getting legislation through their chamber, as, to pass, a bill would require support from nearly all 52 GOP senators. That means finding a measure that wins over moderates, does enough for hard-line conservatives and — barring any Democratic support — loses support from no more than three Republicans senators in the process.

Brown said he mentioned the proposals he first presented to Trump at a dinner last month: One would expand access to the Earned Income Tax Credit and the Child Tax Credit, while the other would give tax credits to companies that pay workers at least $15 an hour and offer health-care and retirement benefits.

“The president said he liked it,” Brown told reporters. “We said, ‘Put this kind of stuff in the bill, and you’ll get 70 or 80 votes.’ We want to participate. We don’t want to see a bill come out Friday and do a markup on Monday and don’t actually hear people and write in the back room. The president didn’t comment on that, but he said he wants to help people in the middle class and make it bipartisan.”

If such proposals aren’t included in the final legislation, “I just wonder what this is all about,” Brown said.

Brady on Monday unveiled fresh changes to the Tax Cuts and Jobs Act, the $1.5 trillion tax cut that represents the cornerstone of the Republican economic agenda. Those changes preserved a key tax break for child care and addressed various business concerns. But it left other controversial parts of the plan intact — such as a proposal to scale back the long-standing mortgage interest deduction.

Brady told Hewitt on Tuesday that he was not inclined to change the mortgage interest provision — which would cap the amount of interest a taxpayer could deduct for a primary residence and eliminate it entirely for a second home — and played down the potential economic impact of the change. Trade associations representing home builders and real estate agents are warning that the provision could cause home prices to fall and dampen a major driver of the American economy.

The GOP tax bill, Brady said, would stimulate the economy generally, including the real estate sector: “You get home values up, you get more sales, you get better prices when the economy is stronger,” he said. “This tax plan is all about getting growth going. That is good for home builders. It’s good for homeowners like you and me.”

Meanwhile, the Ways and Means Committee continued a marathon session to debate the bill Tuesday, considering a series of Democratic amendments meant to highlight what they see as shortcomings of the bill. The “markup” is expected to last till Thursday, setting up a planned floor vote in the House next week.

An amendment offered by Rep. Earl Blumenauer (D-Ore.) would roll back the Republican plan after two years if promised economic growth does not materialize and the federal budget deficit continues to expand. The GOP’s promises of a deficit-neutral tax plan, he said, are based on “unicorn dust and magic beans.”

“There’s no excuse for us going down that path of escalating debt,” Blumenauer said. “All I am suggesting is that we put in a fail-safe mechanism.”

But Republicans blasted the amendment as a poison pill that would keep middle-class American families from gaining tax relief under the bill.

“Most Americans are having a tough times making ends meet, and they are sick and tired of hearing people talk about a deficit, when most of the people sitting here talking about the deficit have been sitting here for 20 years and have allowed the deficit to occur and have done nothing about it,” Rep. James B. Renacci (R-Ohio) said.

According to the nonpartisan Joint Committee on Taxation, the GOP bill is expected to add nearly $1.5 trillion to the federal deficit over the course of a decade. An independent analysis from the conservative-leaning Tax Foundation released Friday found that the bill would create jobs and generate economic growth but would still add $989 billion to the deficit.

But Renacci insisted the fiscal effects of the tax cut should be set aside: “It’s not the revenue side, it’s the spending side,” he said. “The driver of our debt is our spending.”

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Dems mull big changes after Brazile bombshell

November 8, 2017 by  
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Democratic senators are talking about wholesale change to their party’s rules in the wake of Donna Brazile’s explosive allegations about the 2016 presidential primary.

Brazile claims that she discovered, upon taking the reins of the Democratic National Committee (DNC) last year, that Hillary ClintonHillary Diane Rodham ClintonBlumenthal: Trump-tied data firm reaching out to WikiLeaks ‘significant’ Tillerson eliminates key State Department sanctions office: report Intel Dem: What’s in dossier more important than who paid for it MORE’s campaign began asserting control over the DNC’s operations months before the first primary vote was cast.

The claim has reopened the wounds of Clinton’s bitter primary battle against Sen. Bernie SandersBernard (Bernie) SandersGOP seizes on new Clinton revelation Overnight Health Care: Judge won’t force Trump to make ObamaCare payments | CBO says bipartisan health bill would reduce deficit by B | Trump won’t set ObamaCare sign-up goal Frustrated with Trump, Dems introduce drug pricing bill MORE (I-Vt.), creating fresh urgency for reforms.

Democratic senators are hesitant to air their disagreements about how to overhaul the party’s structure but say there are vigorous discussions happening behind the scenes.

“I hope we’re going to have a robust conversation over superdelegates, and I hope we’re going to have a robust conversation over ensuring the neutrality of the DNC as a level playing field for all candidates who run in 2020,” said Sen. Jeff MerkleyJeffrey (Jeff) Alan MerkleyDems cheer Flake after scathing Trump speech Senate battle heats up over ‘blue slips,’ Trump court picks It’s time to save the judicial confirmation process MORE (D-Ore.), one of the few who endorsed the insurgent candidacy of Sanders during the primary.

Some say the most important step for Democrats to take is to eliminate superdelegates — the senior party officials and members of Congress who are not bound by the results of voting in their states.

Sanders called the concept of superdelegates “problematic” during the primary; he urged them to declare their allegiance based on how their states voted.

But the overwhelming majority of superdelegates backed Clinton, regardless of their state’s choice, giving Sanders virtually no chance of staging a late comeback in the race for the nomination.

House Minority Leader Nancy Pelosi (D-Calif.), who was a strong Clinton backer, has called for eliminating superdelegates, and few in the party publicly defend them.

Merkley said he’s not sure when party leaders will formally discuss reforms to the primary but said “it’s happening right now among many members” of Congress on an informal basis.

The DNC will hold a meeting in December where some reforms may be discussed, followed by a broader party meeting in February. 

Merkley identified the February meeting as an opportunity to enact changes. 

Brazile alleges collusion with the Clinton campaign in her new book, “Hacks: The Inside Story of the Break-ins and Breakdowns that Put Donald TrumpDonald John TrumpIntel Dem: What’s in dossier more important than who paid for it Overnight Tech: Twitter bans ads from Russian media | Dem says she was targeted by Russian bot | House Judiciary to hold hearing on net neutrality Democrats dig for Russian connection and uncover environmentalists MORE in the White House.”

She stepped in as interim DNC chairwoman following Rep. Debbie Wasserman Schultz’s (D-Fla.) resignation in July 2016 after hacked internal emails revealed that the party committee helped Clinton at the expense of Sanders and other primary rivals. 

Sen. Joe ManchinJoseph (Joe) ManchinHatch: ‘It doesn’t take any brains to realize’ Trump would be open to dealing with Dems Senate votes down effort to block drilling in Alaska refuge Live coverage: The Senate’s 2018 budget ‘vote-a-rama’ MORE (D-W.Va.) said the national party committee shouldn’t tip the scales in favor of one candidate or another during a primary.

“There should be reforms. The primary process should be open and the strongest survive,” he said.

“Where I come from in West Virginia, no one has control over the primary process until the primary is over. Then that person comes in and selects their own chair for the party. That’s the way things are done,” Manchin added.  

Asked about Brazile’s allegations, current DNC Chairman Tom PerezThomas Edward PerezClinton’s top five vice presidential picks Government social programs: Triumph of hope over evidence Labor’s ‘wasteful spending and mismanagement” at Workers’ Comp MORE acknowledged Tuesday that the party committee made mistakes in the 2016 election.

“I’ll be the first to admit that we have to earn the trust of everybody,” Perez told “The Thom Hartmann Program.” “And I’ll be the first to admit that the DNC didn’t put its best foot forward in 2016, and because of that we have trust gaps.”

Only 37 percent of Americans have a positive opinion of Democrats, compared to 44 percent who viewed the party favorably earlier this year, according to a new CNN poll conducted by SSRS, an independent research company.

Suspicions that the party establishment tilted the playing field in favor of Clinton during the primary disillusioned many Sanders supporters and may have depressed turnout in the general election, Democratic strategists believe.

Then-candidate Donald Trump sought to exploit the divisions by repeatedly accusing Democratic leaders of rigging the primary against Sanders — a charge he’s revived in the wake of Brazile’s book.

The DNC scheduled televised debates between Clinton and Sanders during odd times that weren’t likely to draw big audiences and froze the Sanders campaign’s access to a key voter database before the Iowa caucuses and New Hampshire primary.

“I think we understand some things happened that should not have happened,” said Senate Democratic Whip Dick DurbinRichard (Dick) Joseph DurbinDem senators write DHS calling for accurate hurricane death counts Sessions spars with Dems at heated oversight hearing Durbin slams Sessions for pulling funds from sanctuary cities MORE (Ill.).

Still, Brazile has taken criticism from Democrats, with some saying she has exaggerated the extent to which the DNC helped Clinton.

One senior Democratic senator expressed shock over Brazile’s broadside against Clinton, who remains beloved in the party.

“I have a hard time figuring out why she did this,” said the lawmaker, who requested anonymity to discuss internal party squabbles candidly. “I don’t for the life of me understand, unless there was some kind of personal slight.”

The senator noted that Clinton gave $20 million to the DNC to help pull it out of debt.

Democratic lawmakers by and large don’t want to talk publicly about Brazile’s most startling claims, including that she was thinking about replacing Clinton and her running mate, Sen. Tim KaineTimothy Michael KainePelosi calls for DACA deal ahead of spending debate Overnight Defense: Senate panel to get classified Niger briefing | Corker, Trump feud heats up | House passes North Korea sanctions Dems cheer Flake after scathing Trump speech MORE (D-Va.), at the last moment with a ticket of then-Vice President Joe BidenJoseph (Joe) Robinette BidenBiden, Gaga release PSA on sexual assault #MeToo: Sexual assault inflicts dire economic costs as well Biden: Clinton’s 2016 campaign lacked ‘joy’ MORE and Sen. Cory BookerCory Anthony BookerGAO to investigate Trump’s voter fraud commission Graham, Booker to testify as character witnesses for Menendez Dems to introduce bill barring Trump from preemptive strikes without Congress approval MORE (D-N.J.).

Nor do they want to weigh in on Brazile’s charge that Clinton’s senior campaign staffers were guilty of sexist behavior toward her or that Clinton’s campaign had “the odor of failure.”

“That’s way out of my swimming lane. I think we ought to move on,” said Sen. Jon TesterJonathan (Jon) TesterBig names face off over Montana GOP primary Five takeaways from new Senate fundraising reports GOP senator offering single-payer proposal to get Dems on record MORE (D-Mont.).

“What I don’t like about this is we lost the last election,” he said. “We ought to be looking at ways we can win the next one and not focusing on why we lost the last one.”

“I refuse to look back,” added Sen. Claire McCaskillClaire Conner McCaskillTrump officials face grilling from lawmakers over Russian cyber firm McCaskill zings GOP senator over car incident Five takeaways from new Senate fundraising reports MORE (D-Mo.), who was a vocal Clinton supporter in 2016. 

When asked about the need for reform, she said those discussion are “occurring.”

“I’m fully confident that we’re going to look at the mistakes that were made, the positive things and negative things, both that occurred in that election, and we will do what we need to do to go forward,” she said.

Even some of Clinton’s strongest supporters say they’re open to doing away with superdelegates and embracing other rule changes.

“We should have a broader conversation about the undemocratic features of our primary process. Superdelegates are part of that,” said Sen. Chris MurphyChristopher (Chris) Scott MurphyDems to introduce bill barring Trump from preemptive strikes without Congress approval Juan Williams: Trump’s cynical sabotage of ObamaCare In Congress, fears grow about lack of strategy on multiple battlefields MORE (D-Conn.), a potential White House candidate in 2020.

Murphy said he also favors doing away with presidential primary caucuses, in which liberal activists have historically had the most sway. Sanders was more successful in caucuses than he was in primaries last year.

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