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.

Thorny Logistics Of A Federal Shutdown and How It Affects Agency Employees

From National Public Radio:

Hundreds of thousands of federal employees will either be sent home or have been told to not show up to work at all on Monday, as furloughs due to the government shutdown that began Friday night start to affect workers around the country.

Senate Majority Leader Mitch McConnell, R-Ky., gave a foreboding warning from the Senate floor on Sunday.

“The shutdown is going to get a lot worse tomorrow,” he warned. “A lot worse.”

Republicans are insisting the shutdown is less “weaponized” than the last time this happened, in 2013 under then-President Barack Obama, but it’s still sure to have a broad effect across the country and get worse the longer it goes.

“Essential services” will continue, and essential workers will remain on the job, albeit without pay.

But there will be a lot of federal workers — thousands — who will see a change.

Every federal agency has a specific contingency plan, in the case of a loss of funding, and you can look through them all here. In 2013, about 800,000 of the 2.1 million civilian federal employees were furloughed in 2013, according to The Washington Post.

Read the complete article here, including a list of different agencies and the affects the shutdown will have on employees and services.

CFPB to reconsider rule on payday loans

From CNN Money Edition:

The watchdog agency said in a statement Tuesday that it intends to “reconsider” a regulation, issued in October, that would have required payday lenders to vet whether borrower can pay back their loans. It also would have restricted some loan practices.

If the rule is thrown out or rewritten, it would mark a major shift for an agency that had zealously pursued new limits on banks and creditors before Mick Mulvaney, President Trump’s budget director, became the CFPB’s acting director.

Mulvaney took over the top job at the CFPB in November following a leadership scramble. A vocal critic of the CFPB when it was run by President Obama appointee Richard Cordray, Mulvaney since said the agency would cut back on burdensome regulations.

Tuesday’s announcement does not amount to a formal repeal of the payday lending rule. But it does cast doubt on whether it will ultimately be implemented.

Payday loans provide those in need with small amounts of cash — typically between $200 and $1,000. The money needs to be paid back in full when a borrower receives his or her next paycheck, and such loans often come with exorbitantly high interest rates.

Consumer advocates that have supported the CFPB’s restrictions on the loans say such transactions often take advantage of people in desperate financial situations.

“The CFPB thoroughly and thoughtfully considered every aspect of this issue over the course of several years,” Karl Frisch, executive director of progressive group Allied Progress, said in a statement. “There is no reason to delay implementation of this rule — unless you are more concerned with the needs of payday lenders than you are with the interests of the consumers these financial bottom-feeders prey upon.”

The sentiment was echoed in a statement by Sen. Elizabeth Warren, a Democrat who helped create the CFPB.

“Payday lenders spent $63,000 helping Mick Mulvaney get elected to Congress and now their investment is paying off many times over. By scrapping this rule, Mulvaney will allow his campaign donors to continue to generate massive fees peddling some of the most abusive financial products in existence,” Warren said.

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.

Trump says Flynn’s actions during presidential transition were lawful

From today’s Reuter’s News Service:

U.S. President Donald Trump said on Saturday that actions by his disgraced former national security adviser Michael Flynn during the presidential transition were lawful and said that there was no collusion between his 2016 White House campaign and Russia.

Flynn was the first member of Trump’s administration to plead guilty to a crime uncovered by special counsel Robert Mueller’s wide-ranging investigation into Russian attempts to influence the 2016 U.S. presidential election and possible collusion by Trump aides.

Flynn, a former Defense Intelligence Agency director, held his position as Trump’s national security adviser only for 24 days. He was forced to resign after he was found to have misled Vice President Mike Pence about his discussions with Russia’s then-ambassador to the United States Sergei Kislyak..

“What has been shown is no collusion, no collusion,“ Trump told reporters as he departed the White House for the New York trip. ”There’s been absolutely no collusion, so we’re very happy.”

As part of his plea on Friday, Flynn agreed to cooperate with the investigation.

The retired U.S. Army lieutenant general admitted in a Washington court that he lied to FBI investigators about his discussions last December with Kislyak.

In what appeared to be moves undermining the policies of outgoing President Barack Obama, the pair discussed U.S. sanctions on Russia, and Flynn asked Kislyak to help delay a United Nations vote seen as damaging to Israel, according to prosecutors.

Flynn was also told by a “very senior member” of Trump’s transition team to contact Russia and other foreign governments to try to influence them ahead of the vote, the prosecutors said.

Sources told Reuters the “very senior” transition official was Jared Kushner, Trump’s son-in-law and senior advisor. Kushner’s lawyer did not respond to multiple requests for comment.

Watch the video here.

Bad news for American consumer rights, as CFPB director announces departure

Richard Cordray, the head of Consumer Financial Protection Bureau, is stepping down at the end of the month. The bureau was created in the wake of the financial crisis and has recovered $12 billion from financial firms on behalf of consumers, but Republicans have fought Cordray and the bureau, claiming its very existence is illegal and that it has harmed consumers by stifling lending.

Listen to the NPR Roundtable discussion about his announcement, and what it means for American consumers here.

Trump appointees, this time in USDA, continue to violate federal ethics laws

From today’s New York Times by Danielle Ivory and Robert Faturechi:

At a private meeting in September, congressional aides asked Rebeckah Adcock, a top official at the Department of Agriculture, to reveal the identities of the people serving on the deregulation team she leads at the agency.

Teams like Ms. Adcock’s, created under an executive order by President Trump, had been taking heat from Democratic lawmakers over their secrecy. What little was publicly known suggested that some of the groups’ members had deep ties to the industries being regulated.

Ms. Adcock, a former pesticide industry executive, brushed off the request, according to House aides familiar with the exchange, who asked for anonymity because they were not authorized to comment publicly. Making the names public, they recalled her saying, would trigger a deluge of lobbyists.

In fact, interviews and visitor logs at the Agriculture Department showed that Ms. Adcock had already been meeting with lobbyists, including those from her former employer, the pesticide industry’s main trade group, CropLife America, and its members. CropLife pushes the agenda of pesticide makers in Washington, including easing rules related to safety standards and clean water.

Ms. Adcock, who left the trade group in April, maintained contact with her former industry allies despite a signed ethics agreement promising to avoid for one year issues involving CropLife as well as matters that she had lobbied about in the two years before joining the government.

In one meeting, Ms. Adcock discussed issues banned by the ethics agreement with an executive who had been her lobbying partner weeks earlier at CropLife, according to the accounts of participants and the visitor logs, obtained through a public records request by The New York Times and ProPublica.

Tim Murtaugh, a spokesman for the U.S.D.A. who also spoke on behalf of Ms. Adcock, said she had not violated her ethics agreement by meeting with her former industry allies. He also denied that Ms. Adcock had discussed issues related to her previous lobbying at the meeting, or that she had suggested that her deregulation team would be swamped by lobbyists if names of its members were released.

“The career ethics officers at U.S.D.A. agree that this is not a violation of the ethics agreement that Rebeckah Adcock signed,” said Mr. Murtaugh, citing a 2009 memo by the Office of Government Ethics.

Others dispute that interpretation of the memo; the ethics office declined to say whether the memo applied to the meeting, citing its policy not to discuss individual cases.

Read entire article here.

Takeaways From Tuesday’s Elections

From today’s New York Times Election Review:

By any measure, Tuesday was a big night for Democrats, especially in Virginia, where they swept the top offices, including governor, and made strong gains in the General Assembly. Here are some key takeaways from the biggest election night since President Trump’s victory a year ago.

Susan Johnston helping coordinate canvassing efforts at the Mainers for Health Care headquarters in Portland on Tuesday. Maine became the first state to vote to expand Medicaid. 

A suburban rebellion propels Democrats. It was largely a suburban rebellion, where more moderate voters rejected Mr. Trump and embraced Democrats. Be it New Jersey, Virginia or Charlotte, N.C., Democrats rode a miniwave of victories that will give them energy for candidate recruitment and fund-raising heading into the midterm elections next year.

In addition to winning the top races, for governor of New Jersey and Virginia, Democrats also captured the mayoral post in Manchester, N.H., the State Senate in Washington, along with other important victories in statehouse elections. Maine also became the first state to vote to expand Medicaid, the 32nd in all under President Barack Obama’s signature Affordable Care Act.

It’s hard to have Trumpism if you don’t have Trump. Ed Gillespie, the Republican candidate for governor in Virginia, tried his best to sound the call of Mr. Trump’s followers in stoking the nation’s culture wars. He was harsh on immigration, supportive of Confederate monuments and opposed to those N.F.L. players who have taken a knee. But his public record before, as a national party chairman, White House counselor and Washington lobbyist, had few of those harsh edges. And like a lot of Republicans, he only grudgingly supported Mr. Trump’s candidacy. Most notably, Mr. Gillespie did not seek to campaign with the president in Virginia, settling for support via Twitter. That left him with almost all of Mr. Trump’s baggage and few potential benefits.
Read the entire review article here.

ParadisePapers show Trump Commerce Secretary Has Ties to Putin Cronies

From today’s Slate Magazine by Daniel Politi:

Looks like it’s Panama Papers Part Two. The non-profit International Consortium of Investigative Journalists began publishing on Sunday what it is calling the Paradise Papers. More than a year after the organization’s network of journalists around the world shook up politicians in several countries with leaked data on offshore havens, another trove of documents taken from a Bahamas-based firm promises to expose how companies and the wealthy use complicated structures to skirt taxes. Most of the more than 13.4 million documents, which were analyzed by a group of more than 380 journalists in 67 countries, are from Bermudan law firm Appleby.

Among the most explosive revelations so far involves news that Commerce Secretary Wilbur Ross shares business interests with close allies of Russian President Vladimir Putin, which he failed to fully disclose during confirmation hearings. The documents show Ross continues to have a significant interest in a shipping firm that has a Russian energy company as one of its main clients. The owners of that company include Putin’s son-in-law and an oligarch under U.S. sanctions. The stake in the firm is held in Cayman Islands, just like much of the commerce secretary’s massive wealth that has been estimated at more than $2 billion.

The Commerce Department is not disputing the allegations. Ross “recuses himself from any matters focused on transoceanic shipping vessels, but has been generally supportive of the administration’s sanctions of Russian and Venezuelan entities,” a spokesman said. “He works closely with Commerce Department ethics officials to ensure the highest ethical standards.”

Lawmakers who were part of Ross’ confirmation hearings say they feel duped. During the process, Ross was asked about his ties to Russia and his investment in another shipping company, but Navigator never came up. Sen. Richard Blumenthal from Connecticut told NBC News that the general impression was that Ross had gotten rid of his stakes in Navigator, and they didn’t know about the firm’s ties to Russia. “I am astonished and appalled because I feel misled,” Blumenthal said. “Our committee was misled, the American people were misled by the concealment of those companies.” Ethics experts say that even if there is nothing illegal about the arrangement, it still raises several ethical questions because one of the lead voices in the administration’s trade policy could make money from business with Russia.

Read the entire article here.