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Key Takeaways and Reaction to the NYT Report on Trump’s Tax Returns

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  • A bombshell report from The New York Times detailed 18 years’ worth of information regarding President Donald Trump’s federal income taxes. 
  • In both 2016 and 2017, Trump paid only $750 in federal income taxes each year, according to the report. 
  • Among other claims, it also alleges that for 11 of the years between 2000 and 2018, Trump paid no federal income taxes because he reported losing more money than he made at many of his signature businesses.
  • Trump has since dismissed the report as “fake news,” arguing, “I paid many millions of dollars in taxes but was entitled, like everyone else, to depreciation & tax credits.” 

NYT Releases Data from Trump Tax Returns

The New York Times published a bombshell report on Sunday, which outlines decades of information relating to President Donald Trump’s federal income taxes.

Trump’s tax records have been fiercely sought after for years, dating back to when he refused to release them as a presidential candidate in 2016.

According to The Times, which claims to have obtained Trump’s tax records dating from 2000 to 2018, Trump paid just $750 in federal income taxes in 2016. The next year, his first in office, he paid another $750 in federal taxes.

Even more significantly, in 11 of those 18 years, The Times alleges that Trump paid no federal income taxes at all.

As for how he was able to do that, it was largely because he reported losing much more money than he made at many of his signature businesses.

For example, The Times reported that Trump made $427 million from “The Apprentice,” as well as licensing and endorsements deals associated with his name. Trump then invested much of that money in a collection of businesses, mainly golf courses that steadily became money holes.

In fact, since 2000, Trump has reported losses of more than $315 million at his golf courses, losses of $55 million between 2016 and 2018 at his D.C. hotel, and losses of $134 million at Trump Corporation since 2000.

“The tax returns that Mr. Trump has long fought to keep private tell a story fundamentally different from the one he has sold to the American public,” The Times reports. “His reports to the I.R.S. portray a businessman who takes in hundreds of millions of dollars a year yet racks up chronic losses that he aggressively employs to avoid paying taxes.

“Now, with his financial challenges mounting, the records show that he depends more and more on making money from businesses that put him in potential and often direct conflict of interest with his job as president.”

“Consulting Fees” Paid to Ivanka Trump

The Times reported that the filings showed a laundry list of business expense write-offs, including more than $70,000 paid to style Trump’s hair during “The Apprentice.”

Notably, Trump entities also wrote off at least $95,000 that was paid out to a hair and makeup artist of his daughter, Ivanka Trump. The media outlet added that Mr. Trump wrote off expenses like meals and fuel associated with the aircraft he used “to shuttle him among his various homes and properties.”

Among other claims, between 2010 and 2018, Trump wrote off around $26 million in unexplained “consulting fees” as business expenses.

While The Times notes that there’s no evidence Trump engaged in bribes or kickbacks to middlemen, it also notes that Trump may have reduced the amount of his income that could be taxed by treating a family member as a consultant.

The Times believes that that family member was Ivanka. That’s because in 2017, Ivanka reported receiving nearly $750,000 from a consulting company she co-owned — the exact amount the Trump Organization also claimed as tax deductions for hotel projects in Vancouver and Hawaii.

The big kicker is that Ivanka is also an executive officer of the Trump companies that led those projects — “Meaning she appears to have been treated as a consultant on the same hotel deals that she helped manage as part of her job at her father’s business.” 

The Times added that if the payments to Ivanka were compensation for work, it’s unclear why Trump would do it in this form “other than to reduce his own tax liability.”

The “consulting fees” also raise another possibility: that this could have been a method for Trump to transfer assets to his children while avoiding a gift tax.

There, The Times points back to a 2018 Times investigation which discovered that Trump’s father had “employed a number of legally dubious schemes decades ago to evade gift taxes on millions of dollars he transferred to his children.”

The Times also pointed to a situation where a person directly involved in developing two Trump Towers in Istanbul said that there was never any consultant or other third party in Turkey paid by the Trump Organization. That’s despite The Times’ finding that Trump’s records “show regular deductions for consulting fees over seven years totaling $2 million.”

Trump’s Foreign Investments

The Times reported that they were “able to take the fullest measure to date of the president’s income from overseas, where he holds ultimate sway over American diplomacy.”

The outlet goes on to note that Trump said he wouldn’t pursue new foreign business deals when he took office in 2017, but during his first two years in office, his revenue from abroad was $73 million.

While much of that money was from his golf properties in Scotland and Ireland, some came from licensing deals in countries with authoritarian-leaning leaders or thorny geopolitics — for example, $3 million from the Philippines, $2.3 million from India and $1 million from Turkey,” the outlet reported. 

Notably, The Times explicitly stated that the documents it obtained did not “reveal any previously unreported connections to Russia.”

How Much Trump Owes

According to The Times, Trump is personally responsible for loans and other debts totaling $421 million, with most of that due within the next four years.

“Should he win re-election, his lenders could be placed in the unprecedented position of weighing whether to foreclose on a sitting president,” the outlet reported. 

On top of that, Trump reportedly has $100 million due in 2022 for a mortgage on the commercial space in the New York Trump Tower. Up to 2018, he had only paid interest on the loan but not the loan itself. 

To round it off, confidential records show that starting in 2010, Trump “claimed, and received, an income tax refund totaling $72.9 million.” That’s the sum total of all the federal income tax he had paid for 2005 through 2008, plus interest.

That refund is actually already the subject of a long-standing and widely-known IRS audit, but if Trump is ultimately forced to pay back this refund, he’ll also be forced to return that money with interest and possible penalties. That could ultimately cost him $100 million.

Trump Responds to Bombshell Report

Alan Garten, a lawyer for the Trump Organization, told The Times that “most, if not all, of the facts appear to be inaccurate” and requested to see documents in question. 

The Times reported that when they declined his request in order to protect their sources, Garten “took direct issue only with the amount of taxes Mr. Trump had paid.”

“Over the past decade, President Trump has paid tens of millions of dollars in personal taxes to the federal government, including paying millions in personal taxes since announcing his candidacy in 2015,” Garten said. 

In response to that statement, The Times noted that Garten seemed to conflate “personal taxes” with other federal taxes Trump paid for his household employees. It added that Garten claimed Trump paid some of what he owed with tax credits, but it argued that was a mischaracterization of how those credits work.

As for Trump himself, in response to a reporter at a press conference, Trump dismissed the report as “fake news.”

“No,” Trump said on Sunday. “Actually, I paid tax. But — and you’ll see that as soon as my tax returns — it’s under audit. They’ve been under audit for a long time. The IRS does not treat me well.” 

“But they’re under audit. And when they’re not, I would be proud to show you. But that’s just fake news.” 

When asked if he could give people an idea of how much he was actually paying, he said, “Yeah, basically — well, first of all, I’ve paid a lot, and I paid a lot of state income taxes, too. The New York State charges a lot, and I paid a lot of money in state.” 

On Twitter Monday morning, Trump again called the report fake news and added, “I paid many millions of dollars in taxes but was entitled, like everyone else, to depreciation & tax credits.” 

“Also, if you look at the extraordinary assets owned by me, which the Fake News hasn’t, I am extremely under leveraged – I have very little debt compared to the value of assets.”

He then said he may release those financial statements, which he called “very IMPRESSIVE.”

Critics of the President

Soon after The Times article, Joe Biden’s campaign tweeted an ad that showed how much tax American workers like teachers and firefighters pay compared to the $750 Trump allegedly paid.

It is “the latest reminder how clear the choice is here in this race between Park Avenue and Scranton,” Biden’s deputy campaign manager, Kate Bedingfield, said. “You have in Donald Trump, a President who spends his time thinking about how he can work his way out of paying taxes, of meeting the obligation that every other working person in this country meets every year.”

Many others, including celebrities and politicians like Sen. Bernie Sanders (D-Vt.), echoed that point.

“Trump’s tax returns tell us that he’s either a very bad businessman or a tax cheat—likely both,” Sanders tweeted. “But more importantly, it shows how the wealthy, unlike most Americans, are able to avoid paying taxes.” 

Others also argued that Trump’s debts made him a threat to national security, with a Bloomberg columnist writing in a heavily circulated opinion piece: “Due to his indebtedness, his reliance on income from overseas and his refusal to authentically distance himself from his hodgepodge of business, Trump represents a profound national security threat – a threat that will only escalate if he’s re-elected.” 

Defense of the President

Others, particularly supporters of the president, condemned The Times for reporting the story, including Sen. Ted Cruz (R-Tx.).

“Well, I don’t know how accurate the story is. The New York Times didn’t release any of the underlying documents,” the senator said in an interview with The View.

“Apparently somebody illegally gave them a copy of something, some tax return documents. I don’t think it’s an issue that frankly impacts a whole lot of Americans.”

“But the point is I don’t know if it’s accurate or not. I don’t think it’s an issue that frankly impacts a whole lot of Americans.” 

Conservative commentator Candace Owens also reiterated that point on Twitter.

“It’s time for our Department of Justice to begin looking into the New York Times,” she wrote.  “I don’t care what you think of Trump— if government officials are turning over an individual’s federal documents in an effort to sway an election—it is a federal crime of epic proportions.”

Others claim the story was intentionally dropped two days before the first debate between Trump and Biden, which is set for Tuesday.

See what others are saying: (The New York Times) (Axios) (Associated Press)

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White House Endorses Bipartisan Senate Bill That Could Ban TikTok

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The measure does not target TikTok specifically but instead would set up a framework to crack down on foreign products and services that present a national security threat.


The RESTRICT Act

A bipartisan group of senators introduced a bill Tuesday that would allow the federal government to restrict or even outright ban TikTok and other technologies produced by foreign companies.

Under the legislation, dubbed the RESTRICT Act, the Commerce Department would have sweeping authority to identify and regulate technologies that pose a risk to national security and are produced by companies in six “foreign adversary” countries: China, Russia, Iran, Cuba, Venezuela, and North Korea.

In other words, the proposal would not explicitly ban TikTok, but instead creates a path for future prohibitions on the Chinese-owned platform. 

While the bill’s text does not specifically mention TikTok, the group of senators made it clear that the app is their number one target, directing most of their criticism to the platform in statements announcing the measure.

The legislation, however, would go way beyond TikTik: it is also designed to prepare for future situations where apps or technologies from an “adversary” country become popular in the U.S.

The bill’s Democratic sponsor, Sen. Mark Warner (D-Ma.), echoed that point in his remarks Tuesday.

“Today, the threat that everyone is talking about is TikTok, and how it could enable surveillance by the Chinese Communist Party, or facilitate the spread of malign influence campaigns in the U.S.,” he said. “Before TikTok, however, it was Huawei and ZTE, which threatened our nation’s telecommunications networks. And before that, it was Russia’s Kaspersky Lab, which threatened the security of government and corporate devices.”

“We need a comprehensive, risk-based approach that proactively tackles sources of potentially dangerous technology before they gain a foothold in America, so we aren’t playing Whac-A-Mole and scrambling to catch up once they’re already ubiquitous.”

Proponents of the bill also hope that, given the broad scope of the legislation, it will gain more traction than past proposals that zeroed in on TikTok. Support for the measure was further bolstered when the White House announced it would back the move shortly after it was rolled out.

“This bill presents a systematic framework for addressing technology-based threats to the security and safety of Americans,” National Security Advisor Jake Sullivan said in a statement. “We look forward to continue working with both Democrats and Republicans on this bill, and urge Congress to act quickly to send it to the President’s desk.”

A Bumpy Road Ahead

Despite the bipartisan push, there are still some hurdles for the RESTRICT Act to overcome.

Although the legislation does not directly ban TikTok, because that is clearly its intent, the same issues with an outright prohibition still stand. One of the most serious concerns is that banning TikTok would violate the First Amendment.

There is past precedent on this front: in 2020, a federal magistrate judge blocked the Trump administration from requiring Apple and Google to take the Chinese-owned app WeChat off their app stores.

In that decision, the judge argued that the government only had “modest” evidence about the app’s risks and that removing it from app stores would “burden substantially more speech than is necessary to serve the government’s significant interest in national security.”

TikTok has emulated that argument. In a statement responding to the RESTRICT Act Tuesday, a spokesperson for the company said the legislation could “have the effect of censoring millions of Americans.”

Meanwhile, even if the act does pass, there is also the question of whether the Biden administration would decide on a full-scale ban. 

Commerce Secretary Gina Raimondo would be the one responsible for overseeing the process under the bill, and while she said she said in a statement that she “welcomed” the proposal and promised to work with Congress to pass it, she has also previously expressed hesitation for a full prohibition.

On the other end of the equation, there are concerns that this measure will not ultimately get enough bipartisan support from Republicans who do want an outright ban and will refuse to accept anything that falls short of that.

While speaking with Fox News on Tuesday, Sen. Marco Rubio (R-Fl.) said the new plan did not go far enough and argued that Congress “should pass a bill that bans TikTok.”

Even if the legislation does get enough support in the Senate, its path is unclear in the GOP-held House, where it also does not yet have a companion bill. Republicans in the House recently introduced a measure that would give the president the power to unilaterally ban TikTok in the U.S.

That proposal, however, is not bipartisan like the RESTRICT Act, which will be a key test to see if legislators can find a middle ground on the matter.

See what others are saying: (The Washington Post) (Reuters) (NBC News)

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What You Need to Know About Wisconsin’s Supreme Court Race — The Most Important Election in 2023

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Gerrymandering, abortion, the 2024 presidential election, and much more are on the line.


Primary Election

An election to fill an empty seat on the Wisconsin Supreme Court that has been described as the most consequential race of 2023 has now been narrowed to two candidates after the primary Tuesday.

Liberal Milwaukee County Judge Janet Protasiewicz easily took first place, winning 46.4% of the vote with nearly all precincts reporting. In second place with 24.2% was conservative Daniel Kelly, a former Wisconsin State Supreme Court justice who was appointed by the state’s then-Republican governor in 2016 but lost his re-election in 2020.

Notably, the wide discrepancy in votes can be explained by the fact that Kelly split Republican ballots with another conservative candidate who came in a close third with 21.9%. As such, the general election is expected to be tight.

Also of note, this race is technically supposed to be non-partisan, but Protasiewicz has closely aligned herself with Democrats and Kelly has done the same with Republicans. Both parties, as well as dark money groups, have poured millions of dollars into the high-stakes election that will determine whether liberals or conservatives will have a 4-3 majority on the state Supreme Court at an incredibly consequential time.

There are a number of paramount issues at play here that have widespread implications not just for Wisconsin but America at-large.

Gerrymandering and Elections

Wisconsin is one of the most important swing states in the country: it helped decide the outcomes of both the 2016 and 2020 presidential elections, and it is the center of debates on gerrymandering and free and fair elections that have played a role in those races.

The state Supreme Court, which has had a conservative majority for the last 14 years, has been instrumental in shaping those policies, having weighed in on many of the most crucial topics and almost always siding with Republicans.

For example, in what VICE described as “arguably the most important decision the court made in recent years,” the court ruled 4-3 last year to uphold one of America’s most gerrymandered maps that gave Republicans a massive advantage.

“The maps are so gerrymandered that Republicans hold six of Wisconsin’s eight House seats and nearly two-thirds of legislative seats in the state—even though Democrats won most statewide races last year,” the outlet reported.

That ruling created something of a self-fulfilling prophecy: the conservative majority court has decided so many critical topics because the state government is deadlocked with a Republican majority in the legislature and a Democratic governor.

So, by approving a map that massively favored Republicans, the conservative court kept that system in place, ensuring that they would continue to have the final say on so many of these essential areas.

However, if Protasiewicz wins the general election, the court is all but certain to revisit the gerrymandered map. Protasiewicz, for her part, explicitly stated in a recent interview that a liberal majority could establish new election maps. Kelly, meanwhile, has said he has no interest in revisiting the maps. 

A decision unfavorable to the GOP-drawn maps would have significant implications for the internal politics of Wisconsin and control of the U.S. House of Representatives, where Republicans currently hold a very slim five-seat majority.

To that point, the Wisconsin Supreme Court also plays a big role in how the state’s elections are administered and how its ten Electoral College votes will be doled out in the 2024 presidential election. 

Last year, the conservative court banned absentee ballot drop boxes, and in 2014, it upheld a GOP voter ID law that studies have shown suppressed Black voters. While the court did vote against considering former President Donald Trump’s lawsuit to try and overturn the 2020 election in Wisconsin, it only did so by a thin margin of 4-3.

The court will very likely be tasked with wading into elections-related cases in the coming years. Already, it is anticipated that the justice will hear a lawsuit by a conservative group aiming to further limit voting access by banning mobile and alternate voting facilities.

Abortion and Other Important Statewide Subjects

In addition to the ramifications for America broadly, there are also plenty of paramount issues concerning the state Supreme Court that will materially impact the people of Wisconsin.

Much of the race has been centered heavily on the topic of abortion and reproductive rights because the composition of the court will almost positively determine whether or not abortion will be legal for the state’s six million residents.

Following the Supreme Court reversal of Roe v. Wade, an 1849 Wisconsin law banning abortion went back into effect. Currently, a lawsuit against the ban is winding its way through the court system, and it is all but assured that battle will eventually go before Wisconsin’s Supreme Court.

Experts and analysts say that if Kelly wins, it is essentially guaranteed that abortion will remain illegal in almost all cases. Protasiewicz, by contrast, has campaigned extensively on abortion rights and vocally supported the right to choose.

Beyond that, there are also several other major issues the court will likely rule on in the coming years. For example, Protasiewicz has also said she believes a liberal majority could reverse a 12-year-old law that basically eliminated collective bargaining for public workers. All of that is just the tip of the iceberg.

“Everything is at stake, and I mean everything: Women’s reproductive rights, the maps, drop boxes, safe communities, clean water,”  Protasiewicz told VICE. “Everything is on the line.” 

See what others are saying: (VICE) (The New York Times) (The Washington Post)

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Republicans Want to Cut Food Stamps — Even As Pandemic-Era Programs Wind Down

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Experts say cuts to food stamps could have a devastating impact on the 41 million Americans who rely on the program.


GOP Weighs SNAP Cuts in Budget

In recent weeks, top Republican lawmakers have floated several different ideas for cutting food stamp benefits.

Earlier this month, Republicans now leading the House Budget Committee flagged food stamps — formally known as the Supplemental Nutritional Assistance Program, or SNAP —  as one of the ten areas they would support cuts to in their new budget proposal. 

In a memo, the panel argued that stricter work requirements would “save tens of billions,” while a more rigid verification process for applicants would limit waste, fraud, and abuse. The idea comes as part of a broader effort to reduce the federal deficit.

Experts, however, say the proposed changes could result in debilitating cuts for the 41 million Americans who rely on food stamps and exacerbate an ongoing hunger crisis at a time when inflation has sent food prices rising.

SNAP provides low-income households with an average of around $230 a month for groceries. For many of those families who are also the most impacted by inflationary price increases across the board, that money is absolutely essential.

Experts have also noted that any additional cuts to SNAP would be especially harmful because Republicans are still proposing new cuts despite the fact that Congress already agreed just two months ago to end a pandemic-era program that had increased benefits in some states.

Under the pandemic policies, SNAP was expanded so households could receive maximum benefits instead of benefits based on income testing while also giving bigger payouts to the lowest-income Americans.

That expansion is now set to expire in March, and according to the anti-hunger advocacy group the Food Research and Action Center, an estimated 16 million households will see their per-person benefits drop by around $82 a month.

The Farm Bill Debate

Even if Republicans do not end up cutting SNAP in the budget, the program may still be in hot water.

While raising the debt limit is at the forefront of ongoing partisan battles at the moment, there is already a fight shaping up over another essential piece of legislation: the farm bill.

The farm bill is a package that has to be updated and reauthorized every couple of years. One of the most important legislative tasks Congress is responsible for, the farm bill includes many important subsidies and programs that are imperative to America’s food systems, farms, and much more.

SNAP is among the nutrition-based programs that fall under the purview of the farm bill, and Republicans have already tossed around the idea of cutting food stamp benefits in their ongoing negotiations.

Those debates are quite forward-looking, though it is normal for such discussions to occur early during a year in which Congress is charged with passing the farm bill. Lawmakers have until Oct. 1 to either enact a new version or agree on some kind of extension.

See what others are saying: (The Washington Post) (Business Insider) (Axios)

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