Trump Undercuts Giuliani’s Comments About Payments to Stormy Daniels

From today’s New York Times:

President Trump undercut his attorney Rudolph W. Giuliani on Friday, and said the former New York mayor will eventually get the facts right regarding a payment to a pornographic actress who said she had an affair with Mr. Trump.

“And virtually everything said has been said incorrectly, and it’s been said wrong, or it’s been covered wrong by the press,” Mr. Trump said.

Mr. Giuliani, who joined Mr. Trump’s legal team last month, “just started a day ago,” Mr. Trump said, speaking to reporters on Friday as he left Washington to attend a National Rifle Association convention in Dallas.

“He is a great guy,” Mr. Trump said. “He’ll get his facts straight.”

It was the first time the president addressed the inconsistent narrativeabout the payment made by his personal lawyer, Michael D. Cohen, to the actress, Stephanie Clifford, who goes by the stage name Stormy Daniels. Mr. Trump did not offer any details on Friday to clarify the confusion, but said, “It’s actually very simple. But there has been a lot of misinformation.”

Mr. Giuliani released a statement Friday trying to clarify the confusion, saying that his “references to timing were not describing my understanding of the president’s knowledge, but instead, my understanding of these matters.” He also said there had been no campaign violations in the matter.

The comments capped a week of evolving facts surrounding the Oval Office.

The American public learned its president, once described by a doctor as “the healthiest individual ever elected,” actually wrote that description himself, leaving his health ranking among those who held the office before him a mystery. Mr. Trump also hired an attorney he previously had deniedrecruiting. And the president contradicted himself when, this week, he said he paid back Mr. Cohen for the $130,000 given to Ms. Clifford just days before the election. Last month, the president said he did not know anything about the transaction.

Mr. Giuliani kicked off the confusion about the payment with an interviewon Fox News on Wednesday, surprising even some of Mr. Trump’s other attorneys.

Read the complete article here.

The President Is Not Above the Law

From the New York Times Editorial Board:

“This great nation can tolerate a president who makes mistakes,” declared Senator Orrin Hatch, the Utah Republican. “But it cannot tolerate one who makes a mistake and then breaks the law to cover it up.”

No, Mr. Hatch wasn’t talking about Donald Trump. It was 1999, and he was talking about Bill Clinton.

At that time, the American system — and the flawed yet sometimes heroic people their fellow Americans choose to lead them — underwent, and passed, a hard test: The president, his financial dealings and his personal relationships were painstakingly investigated for years. Prosecutors ultimately accused Mr. Clinton of lying under oath, to cover up a sexual affair. The House of Representatives impeached him, but the Senate declined to convict, and Mr. Clinton stayed in office.spot2.jpg

The public, which learned in detail about everything investigators believed Mr. Clinton had done wrong, overwhelmingly agreed with the judgment of the Senate. It was a sad and sordid and at times distracting business, but the system worked.

Now Mr. Hatch and his fellow lawmakers may be approaching a harsher and more consequential test. We quote his words not to level some sort of accusation of hypocrisy, but to remind us all of what is at stake.

News reports point to a growing possibility that President Trump may act to cripple or shut down an investigation by the nation’s top law-enforcement agencies into his campaign and administration. Lawmakers need to be preparing now for that possibility because if and when it comes to pass, they will suddenly find themselves on the edge of an abyss, with the Constitution in their hands.

Read the complete article here.

Breaking: FBI raids Trump lawyer’s office

From today’s LA Times:

President Trump lashed out Monday at news that his personal attorney, Michael Cohen, was the subject of an FBI raid, calling it “a disgraceful situation” and adding that “many people have said” he should fire Robert S. Mueller III, the special counsel heading the Russia investigation.

“They broke into the office of one of my personal attorneys,” Trump told reporters before a meeting with his military advisors, adding that “I have this witch hunt constantly going on for over 12 months now.”

“It’s a disgrace,” he said. “It’s an attack on our country. It’s an attack on what we all stand for.”

The raid is “a whole new level of unfairness,” Trump added, saying that he learned about the raid, from news reports, “like you did.”

He called attorneys working under Mueller “the most conflicted group of people I have ever seen.” The raid on Cohen’s office was undertaken by agents working with the federal prosecutor’s office in Manhattan, acting on a referral from Mueller.

“They’re not looking at the other side. They’re not looking at Hillary Clinton and all the horrible things she did,” Trump said, repeating a charge that he has made before that the lawyers working for Mueller were all Democrats.

The president also renewed criticism of Atty. Gen. Jeff Sessions, saying he “made a terrible mistake” by recusing himself from involvement in the Russia investigation, “a very terrible mistake for the country.”

Read more about the raid here.

Tariffs bad news for American economy, including workers and consumers

From today’s The Hill:

There’s never a good time for tariffs. American workers and consumers will pay dearly for the Trump administration’s short-sighted action to protect an industry that shows no signs of needing any protection—the market values of the five largest steel companies have more than doubled over the past five years. Yet with a major infrastructure spending bill set to come through Congress over the next year, Trump’s tariffs are bad policy with even worse timing.

While a small amount of people will benefit from the proposed tariffs, many more will be harmed. The American steel industry employs roughly 140,000 workers, but industries that rely on steel to create their products—the ones who will suffer directly under the tariffs—employ 6.5 million workers. A recent study by the Trade Partnership found that the direct cost of tariffs on employment would be 18 jobs lost for every one created. On net, 470,000 Americans could lose their jobs.

The Trade Partnership’s study fits with the lessons of recent history. In 2002, President Bush instituted protective tariffs on foreign steel imports. After just a year in which steel prices rose by up to 50 percent, steel production was insufficient to meet demand, 200,000 Americans lost their jobs, and the tariff was dropped. A mere fifteen years later, these lessons have already been forgotten.

Nor will other countries sit idly by as Trump restricts trade. Well over 10 million Americans’ jobs are supported by exports—jobs which would be at risk in the case of a trade war. Already, the European Union has prepared a ten-page hit list of potential targets of retaliatory tariffs should Trump’s steel and aluminum tariffs go into effect.

American consumers will be harmed as well. A combination of new steel tariffs and lumber tariffs imposed last year mean that the cost of new homes is likely to continue rising—nearly half of steel imports go towards construction. Other American staples such as cars and canned beer are also set to see price spikes resulting directly from tariffs.

Read the complete article here.

Cambridge Analytica CEO Suspended, Involved in Hacking American Elections

From National Public Radio News:

Cambridge Analytica has suspended its CEO, Alexander Nix. The London-based company, which is accused of using data from 50 million Facebook users to influence the 2016 presidential campaign, announced the move Tuesday afternoon — one day after the release of a video that appears to show Nix acknowledging the firm’s engagement in political dirty tricks.

“In the view of the Board, Mr. Nix’s recent comments secretly recorded by Channel 4 and other allegations do not represent the values or operations of the firm,” the company’s board of directors said in a statement, “and his suspension reflects the seriousness with which we view this violation.”

The board said it is replacing Nix with Alexander Tayler in the interim as an independent investigation is conducted.

Also, the British government says it has opened an investigation of its own, seeking a warrant to search databases and servers belonging to the company. U.K. Information Minister Elizabeth Denham had demanded access to Cambridge Analytica’s databases by Monday following reports that the company improperly mined user data from Facebook to target potential voters.

However, after the firm missed the deadline, Denham told Britain’s Channel 4: “I’ll be applying to the court for a warrant.”

Cambridge Analytica says it used legal means to obtain the data and did not violate Facebook’s terms of service. Facebook has promised “a comprehensive internal and external review.”

Denham’s statement follows the latest revelation in the British media about the firm co-founded by former White House adviser Steve Bannon and heavyweight Republican donor Robert Mercer. The company is an offshoot of behavioral research and strategic communications company SCL Group with ties to the 2016 Trump presidential campaign.

Read the complete article here.

Will Trump’s Tariffs Help or Hurt American Workers? Contrasting Views

From the New York Times:

The Case for Trump’s Tariffs and ‘America First’ Economics

Why the Trump-led GOP Continues to be the Party of Massive Budget Deficits

From today’s LA Times:

The Trump administration proposed a spending plan on Monday that projects deficits as far as the eye can see, giving up the longtime Republican goal of a balanced budget to champion a spending plan replete with cash for a host of military programs and some domestic ones the president’s supporters might admire.

The budget calls for about $716 billion in annual defense spending, more than $100 billion above the level Trump requested last year. Add in the tax cut Republicans pushed through in December and the extra spending Congress approved just last week, and the result is a flood of red ink projected to send the national debt ever higher.

Trump’s budget anticipates deficits throughout the next 10 years even if Congress were to approve some $3 trillion in cuts over that same time period that he’s proposing for a wide range of federal programs. Both parties already rejected most of those cuts last year and have shown little interest in pursuing them.

The deficits persist even though the White House is forecasting extremely optimistic levels of economic growth. If growth falls short of those projections — most economists think it will — deficits would be higher still.

As a result, the budget marks something of a milestone — the Trump administration’s abandonment of the quest for budget balance that the Republican Party has claimed as a guiding light for years, at least rhetorically.

In reality, deficits have often soared under Republican presidents as the party has put cutting taxes ahead of balancing budgets on its list of priorities. In the past, however, Republican administrations have taken pains to at least come up with a budget that would balance on paper.

Read the complete article here.

#RussiaGate: AG Sessions Interviewed in Mueller’s Russia Investigation

Breaking news from today’s New York Times:

Attorney General Jeff Sessions was questioned for several hours last week by the special counsel’s office as part of the investigation into Russia’s meddling in the election and whether the president obstructed justice since taking office, according to a Justice Department spokeswoman.

The meeting marked the first time that investigators for the special counsel, Robert S. Mueller III, are known to have interviewed a member of Mr. Trump’s cabinet.

In response to questions from The New York Times, the spokeswoman, Sarah Isgur Flores, confirmed that the interview occurred. Mr. Sessions was accompanied by the longtime Washington lawyer Chuck Cooper to the interview.

The attorney general announced in March that he had recused himself from all matters related to the 2016 election, including the Russia inquiry. The disclosure came after it was revealed that Mr. Sessions had not told Congress that he met twice with the Russian ambassador to the United States at the time, Sergey I. Kislyak, during the campaign.

Mr. Sessions, an early supporter of Mr. Trump’s presidential run, had been among a small group of senior campaign and administration officials whom Mr. Mueller had been expected to interview.

Read the complete article here.

In Cutting taxes, the Economic Odds and Historical Experience Are Against Trump

From today’s New York Times:

When President Trump adds his distinctive signature to the tax bill, he will also be making a huge bet that the Republican strategy of deep cuts for businesses and wealthy individuals will fuel extraordinary growth across the board.

Perhaps more than any other American political leader, Mr. Trump knows that long shots, like his own presidential bid, sometimes pay off. In that vein, he and congressional Republicans are arguing that their bitterly contested and expensive rewrite of the tax code will ultimately create more jobs and raise wages.

If they are proved correct, they will be repudiating not only historical experience, but most experts. From Congress’s own prognosticators to Wall Street’s virtuosos, scarcely any independent analyses project anything like the rosy forecasts offered by the president’s top economic advisers.

To Mr. Trump and his allies, the normal models just do not fully capture the high-octane “rocket fuel” embedded in the tax plan. Mr. Trump intuitively understands just how much attitudes and expectations can shape economic decisions.

With a businessman in the White House, Mr. Trump argues that companies, large and small, have a renewed faith in the economy. And the corporate tax cut, combined with the rollback in regulation, will prompt waves of new investment and hiring, as middle-class Americans liberally spend the extra money in their pockets.

Read the complete article here.

Is it responsible government spending? GOP tax plan gives billions back to billionaires, adds trillions to the deficit

From today’s New York Times:

A Republican requirement that Congress consider the full cost of major legislation threatened to derail the party’s $1.5 trillion tax rewrite last week. So lawmakers went on the offensive to discredit the agency performing the analysis.

In 2015, Republicans changed the budget rules in Congress so that official scorekeepers would be required to analyze the potential economic impact of major legislation when determining how it would affect federal revenues.

But on Thursday, hours before they were set to vote on the largest tax cut Congress has considered in years, Senate Republicans opened an assault on that scorekeeper, the Joint Committee on Taxation, and its analysis, which showed the Senate plan would not, as lawmakers contended, pay for itself but would add $1 trillion to the federal budget deficit.

Public statements and messaging documents obtained by The New York Times show a concerted push by Republican lawmakers to discredit a nonpartisan agency they had long praised. Party leaders circulated two pages of “response points” that declared “the substance, timing and growth assumptions of J.C.T.’s ‘dynamic’ score are suspect.” Among their arguments was that the joint committee was using “consistently wrong” growth models to assess the effect the tax cuts would have on hiring, wages and investment.

The Republican response points go after revenue analyses by the committee and by the Congressional Budget Office, which scores other legislation, saying their findings “can be off to the tune of more than $1.5 trillion over ten years.”

The swift backlash helped defuse concerns about the deficit impact long enough for the bill to pass by a vote of 51 to 49. Some deficit hawks in the Senate caucus were sufficiently concerned about the report on Thursday night to delay the tax vote by a day, but the only Republican lawmaker to vote no was Senator Bob Corker of Tennessee, whose last-minute efforts to cut the size of the package or otherwise offset the deficit impact were unsuccessful.

Instead, Senate Republicans questioned the timing of the analysis’ release on Thursday, and a spokeswoman for the Senate Finance Committee released a statement saying the findings are “curious and deserve further scrutiny.”

That sentiment was repeated over and over, before and after the vote. “We think they lowballed it,” Senator John Cornyn of Texas, the majority whip, told reporters on Thursday. On Sunday, Senator Tim Scott of South Carolina said on CNN that “there’s no doubt that the J.C.T. has been consistently underestimating the activity in our economy.”

In the final hours before and after the bill passed, party leaders insisted that the tax plan would produce enough economic growth to pay for themselves with additional tax revenue from growing businesses and higher-paid workers. “I’m totally confident this is a revenue-neutral bill,” Senator Mitch McConnell of Kentucky, the majority leader, told reporters early Saturday morning after the vote. “Actually a revenue producer.”

Yet there was no data to support those claims, despite promises by the Trump administration that such an analysis would be forthcoming. The Treasury, whose secretary, Steven Mnuchin, has said repeatedly that his department was working on an analysis to show how the tax cuts would not add to the deficit, has not produced any studies that back up those claims. Last week, the Treasury’s inspector general said it was opening an inquiry into the department’s analysis of the tax plan.

The attack on the joint committee and its analysis is a change from the praise Republicans have long heaped on the body, which is staffed with economists and other career bureaucrats who analyze legislation in depth.

“The people who prepare our cost estimates are the best in the business,” Republicans on the House Budget Committee said on a page that has since been removed from their website, “and they’ve been working on this issue for years.”

The critique is the latest example of Republican lawmakers muddying the waters on empirical research in an effort to boost their policy agendas. During the debate over repealing and replacing the Affordable Care Act, lawmakers lashed out preemptively at the Congressional Budget Office over how many people would lose health insurance.

Read the entire article here.