Virginia tests a likely 2018 election strategy: racially fraught appeals
Virginia has been swamped by fearful images as Tuesday’s state elections near: heavily tattooed and handcuffed Latinos staring balefully at the television camera, a mug shot of a convicted pedophile set loose on the state.
The strategy in Virginia by Republican gubernatorial candidate Ed Gillespie has played heavily on themes of race and crime — itself an issue that has historically conjured racial stereotypes — in the style employed by President Trump last year.
Both sides believe the outcome likely will turn on which candidate — Gillespie or Democrat Ralph Northam — can best deploy their base voters on Nov. 7. Democrats, who have won statewide in elections since 2009, are counting on Trump’s unpopularity to pull their voters to the polls. Republicans have sought to energize their voters with issues including gangs, sanctuary cities and Confederate monuments.
Trump seizes on New York attack to sell immigration agenda, rile his political rival
President Trump quickly seized on Tuesday’s deadly attack in New York to promote immigration restrictions and to criticize his chief Democratic rival, New York Sen. Charles E. Schumer.
Trump’s immediate labeling of the attack as a terrorist act and his calls for policy actions contrasted with his responses to the violence and a killing by white supremacists in Charlottesville, Va., in August — Trump wouldn’t blame the neo-Nazis solely and said then he doesn’t rush to discuss incidents without the facts — and to the mass killings in Las Vegas on Oct. 1, after which he said it was too soon to discuss gun laws.
Trump’s Wednesday morning tweets followed a report from ABC News that the man apprehended in the New York attack, Sayfullo Saipov, came to the United States in 2010 through the diversity lottery program, which is designed to increase legal immigration from countries with lower numbers of migrants.
Trump is trying to end the program and many conservative outlets have seized on Tuesday’s attacks to criticize the program and Schumer.
Two of Trump’s Wednesday tweets referenced Fox News, an indication he was probably watching the cable news channel, his routine in the morning.
He first tweeted on Tuesday night, soon after the incident, saying he “ordered Homeland Security to step up our already Extreme Vetting Program,” the subject of extensive litigation since Trump took office. Trump did not offer specifics and it is unclear how different vetting procedures would have affected Saipov’s case.
Schumer responded on Twitter hours later:
House GOP tax plan will keep top 39.6% tax rate for rich, delay estate tax repeal for 2-3 years
The much-anticipated House GOP tax plan will keep the current top tax rate of 39.6% for the most affluent Americans but will make that bracket apply only to “substantially” higher incomes than the current $470,700 for couples, House Speaker Paul D. Ryan told a group of conservative interest groups Tuesday.
The plan will also delay any repeal of the estate tax for two to three years, the speaker told the group, according to participants in the private meeting.
Ryan said he wanted the House bill to immediately cut the corporate tax rate to 20% from the current 35%, but he acknowledged that the final version may be different. “I can’t speak to what the Senate’s going to do,” he told the group.
House leaders have been planning to introduce their bill on Wednesday, but GOP leaders indicated that may slip to Thursday amid continued negotiations over some parts of the measure.
Some Republicans are urging a gradual phase-down of the corporate rate as a way to reduce the costs of the sweeping GOP tax-cut package. In order to pass in the Senate, the tax plan may not add more than $1.5 trillion to the deficit over 10 years.
Many attendees were initially disappointed with the preservation of the top rate, but became more at ease as Ryan disclosed additional details, according to the person inside the room.
Other key elements remain under discussion, including how to limit state and local deductions and whether to impose caps on tax-deferred 401(k) retirement accounts.
Trump won’t make a ‘cliche’ visit to DMZ during trip to South Korea, White House says
President Trump won’t be going to the demilitarized zone on the border between North and South Korea during his 12-day tour of Asia, the White House confirmed on Tuesday.
“The president is not going to visit the DMZ. There is not enough time in the schedule,” said a senior administration official, who insisted on anonymity to brief reporters on the Asia trip.
Trump leaves on Friday and will stop first in Hawaii before visiting five Asian countries — Japan, South Korea, China, Vietnam and the Philippines — at a time when tensions with North Korea have spiked over its advancing nuclear missile program and its threats to conduct an above-ground nuclear test. Those tensions were said to be a factor in the decision for Trump to skip a visit.
Defense Secretary James N. Mattis, Secretary of State Rex Tillerson and Vice President Mike Pence have all visited the DMZ, a 2.5-mile wide strip of land that has separated the two countries since 1953.
“It’s becoming a little bit of a cliché" for U.S. leaders to visit the zone, the official said.
The official said that since the end of the Korean War, “a minority” of American presidents have gone to the still-contested border. That has not been true in recent decades: Since Ronald Reagan made the first visit by a sitting president, each successor except George H.W. Bush has made a much-photographed stop; Jimmy Carter visited as a former president.
Trump instead will visit a joint U.S.-South Korean military base 55 miles south of Seoul along with South Korean President Moon Jae-in.
“No president has visited Camp Humphreys and we thought that that made more sense in terms of its messaging, in terms of the chance to address families and troops there, and to highlight — really, at President Moon’s invitation — South Korea’s role in sharing the burden of supporting this critical alliance,” the official said.
Republicans’ deal to keep property tax deduction leaves California lagging some other states
The decision by a key House Republican to maintain the deduction for property taxes but not for other state and local taxes is a victory for California but a bigger win for residents of other states.
While California has the highest state income tax rate in the nation, the state ranks in the bottom third by one measure for property taxes, which have been limited since voters passed Proposition 13 in 1978.
However, the deal to keep part of the state and local deduction in the Republican tax overhaul bill set to be unveiled Wednesday still would be a win for California.
It’s just not as big a victory as it is for New York, New Jersey and several other states, where property taxes make up a larger share of the overall tax burden, said Jared Walczak, a senior policy analyst at the nonpartisan Tax Foundation.
“California receives a substantially high benefit from the property tax deduction,” he said. “It’s just that California receives such a disproportionate benefit of the overall state and local tax deduction that this looks more modest by comparison.”
Trump boasts of superior relationship with Philippines President Duterte, who is accused of human rights violations
President Trump’s planned meeting with President Rodrigo Duterte of the Philippines during a regional summit in Manila on Nov. 12-13 was already controversial.
Human rights groups have accused Duterte of allowing death squads to kill thousands of supposed drug users, and he has called former President Obama a “son of a whore” who can “go to hell.”
Trump, as he often does, turned it up a notch Tuesday as he seemed to brag that he would have a superior relationship with Duterte than his predecessor.
“We’re going to the Philippines,” he told reporters as he described his upcoming 12-day trip to five countries in Asia, taking a break during a meeting on tax reform. “Which is a strategically important location where the previous administration was not exactly welcome, as you may remember.”
That came after a senior White House official briefed reporters on the trip earlier Tuesday and emphasized that Trump and Duterte have exchanged letters and spoken by phone as part of a thawing of relations between the two countries.
“There’s a warm rapport there,” the official said.
The Philippines is a former U.S. colony and relations between Washington and Manila have long been fraught.
In 1991, the government there forced the Pentagon to abandon two major bases in the Philippines, but the two countries have cooperated closely in counter-terrorism operations since the Sept. 11, 2001, attacks.
President Trump tweets again, trying to turn spotlight on Democrats
President Trump continued broadcasting his frustration with Monday’s announcement of two indictments and one guilty plea of top figures in his campaign, sending a second series of tweets Tuesday morning intended to deflect attention to Democrats.
The presidential tweets, amid one of the most challenging weeks of his presidency, mark yet another precedent broken by Trump. Many legal analysts have advised him against making impromptu public statements on social media during the investigation.
It is unclear what he meant when he said that the Podesta brothers could “drain the swamp.” John Podesta served as Hillary Clinton’s campaign chairman. His brother Tony, who is also close to the Clintons, resigned from his Democratic lobbying firm amid the furor of the Russia probe on Monday.
Podesta’s firm is referenced, though not by name, in the indictment against Paul Manafort, Trump’s former campaign manager who was charged Monday. The firm worked on a contract with Manafort for a Ukrainian government political party.
Trump aide who pleaded guilty went from an ‘excellent guy’ to a ‘low-level volunteer’
President Trump broke a nearly daylong Twitter silence Tuesday to characterize a former campaign aide who has pleaded guilty to lying to the FBI as a “young low-level volunteer” who “few knew.”
That might come as a surprise to candidate Donald Trump, who in a March 2016 meeting with the editorial board of the Washington Post highlighted George Papadopoulos’ role in his campaign.
Asked about a pending announcement of his foreign policy team, Trump listed Papadopoulos as one of five advisors.
“He’s an energy and oil consultant, excellent guy,” Trump said.
The advisor also was present at a meeting of Trump’s foreign policy team; a picture shows him four seats from Trump.
Papadopoulos pleaded guilty early this month to lying to FBI agents about his contacts with Russia during the campaign. The plea was made public Monday.
Trump’s tweets also erred in their characterization of the timing of events listed in the indictment of his former campaign manager Paul Manafort and Manafort’s chief aide, Richard Gates. While the 12-count indictment on money laundering, conspiracy and other charges involved events before the campaign, prosecutors specified that the acts continued until 2017.
Trump had tweeted similar sentiments after the Manafort and Gates indictments were announced, but he had not commented since the Papadopoulos plea was made public.
Chief of Staff John Kelly brushes aside Trump aide charges, endorses new Clinton inquiry
White House Chief of Staff John F. Kelly on Monday brushed aside charges leveled at three Trump campaign aides as part of the special counsel’s investigation of Russia’s interference in the 2016 election, but endorsed a new independent prosecutor to delve into a 2010 uranium company deal that has become a rallying cry for opponents of Hillary Clinton.
Kelly, speaking on Fox News’ “The Ingraham Angle,” claimed that all the activities involving former Trump campaign Chairman Paul Manafort, his chief aide Richard W. Gates III and a foreign policy advisor, George Papadopoulos, occurred “long before they ever met Donald Trump or had any association with the campaign.”
In fact, the investigation, being directed by special counsel Robert S. Mueller III, covered the period in which all three served under Trump. Manafort and Gates were charged in a 12-count indictment that alleged money laundering, among other crimes. Papadopoulos pleaded guilty to lying to the FBI about his contacts with Russians during the campaign.
Ingraham did not correct Kelly, who later went on to say that “the reaction of the administration is to let the legal system work. … Everyone is presumed innocent and we’ll see where it goes.”
Kelly also expressed confidence that the Mueller investigation was nearing its end.
“It should wrap up soon,” he said. “It would seem that they’re toward the end of the witness pile.”
“I don’t know how much longer it can possibly go on,” he said, adding that the president found the investigation “very distracting.”
Manafort’s lawyer lashes out at special counsel
Paul Manafort’s attorney mocked the prosecution of his client Monday afternoon at the entrance of the federal courthouse in Washington, where Manafort and his longtime business associate had just been ordered by a judge to home confinement and to post millions of dollars in bail.
Kevin Downing, attorney for the former chairman of the Trump campaign, called the indictment “ridiculous.” He repeated President Trump’s assertion, posted on Twitter earlier in the day, that there was no evidence of collusion between the campaign and Russia. And he accused the special counsel’s office of pursuing a “novel” prosecution strategy that has only been attempted a half dozen times in the last 50 years, resulting in just one conviction.
Manafort “was seeking to further democracy and to help the Ukraine come closer to the United States and to the E.U.,” Downing said of the payments to his client from Ukrainian officials which are a focus of the indictment. “Those activities ended in 2014. Over two years before Mr. Manafort served in the Trump campaign.”
Downing labeled as “ridiculous” the prosecution’s argument that Manafort was concealing income from the government through a network of offshore accounts.
His comments came shortly after Manafort and his associate Rick Gates solemnly waked into the courtroom in dark suits to enter their pleas of not guilty. The men were ordered by a judge to home confinement with daily check-ins and electronic monitoring. Both men had already turned their passports over to federal law enforcement prior to the arraignment.
Manafort was ordered to post a $10-million unsecured bond after prosecutors warned his vast wealth and extensive network of contacts overseas make him a flight risk. They acknowledged that pinpointing exactly how much money Manafort had in the bank had proven difficult. The cache of loan applications and other documents prosecutors have in their possession suggested that Manafort’s net worth could be anywhere from $20 million to $100 million, they said.
Ukrainian lawmaker happy about Paul Manafort’s indictment
A Ukrainian lawmaker said Monday he was glad to learn that former Donald Trump campaign manager Paul Manafort had been indicted in the U.S. on charges largely stemming from his work as a consultant to a former Ukrainian president accused of bilking the country of billions of dollars.
Sergei Leshchenko, an Ukrainian lawmaker who spearheaded an investigation into allegations that Manafort received as much as $12.7 million in secret cash payments from a pro-Russia political party in Ukraine, said the indictment showed that the “bad guys will be punished.”
“I’m very happy,” Leshchenko said by phone from Kiev on Monday evening. “A corrupt American spin doctor helped [former Ukrainian President Viktor] Yanukovych win elections and push Ukraine toward a pro-Russia agenda. He was paid by corrupt people who stole Ukrainian taxpayers’ money.”
Manafort was indicted on several charges of money laundering and tax evasion. He pleaded not guilty to the charges. The charges are linked to Manafort’s work during 10 years for a Russia-leaning political party in Ukraine called the Party of Regions.
That party supported Yanukovych, who was ousted in February 2014 during mass street protests known as the Maidan revolution. Hundreds of thousands of people took to the streets of the Ukrainian capital of Kiev to protest Yanukovych’s reversal on a promise to sign a trade and association agreement with the European Union. The street protests were followed by the Russian annexation of Crimea, and a military conflict in the east with Kremlin-backed separatist militias.
“I feel like I didn’t waste my time on this, even though there was a lot of skeptics when I first started,” Leshchenko said. “People said it wasn’t a good way to begin relations with the new administration. But it’s important to show that the bad guys will be punished.”
White House: Charges against Manafort have ‘nothing to do with’ Trump
The White House downplayed indictments on Monday against President Trump’s former campaign manager and two other aides, including one who pleaded guilty to lying to the FBI, as having “nothing to do” with the president or his election effort.
“Today’s announcement has nothing to do with the president, has nothing to do with the president’s campaign or campaign activity,” White House Press Secretary Sarah Huckabee Sanders said.
Paul Manafort, Trump’s former campaign manager, and Rick Gates, whom the indictment called “Manafort’s right-hand man,” pleaded not guilty to 12 charges of money laundering and conspiracy, the first charges filed in special counsel Robert S. Mueller III’s investigation of connections between the Trump campaign and Russian efforts to influence last year’s presidential election.
The indictment alleges that for at least a decade, through 2016, Manafort and Gates failed to properly disclose more than $75 million in payments from Ukraine’s government, then pro-Moscow, for lobbying and public relations to influence U.S. policy in its favor.
“We’ve been saying from Day One there is no evidence of Trump-Russia collusion and nothing in the indictment today changes that at all,” Sanders said, echoing earlier tweets from Trump. Like him, she sought to deflect attention by saying that “the real collusion scandal” is related to the Clinton campaign efforts to collect opposition research on Trump.
Sanders’ dismissiveness was challenged, however, by the indictment and guilty plea of the third former aide, foreign policy advisor George Papadopoulos, who confessed to making false statements about his contact with Russians during the campaign. He is cooperating with prosecutors.
Sanders sought to diminish Papadopoulos’ role in the campaign, describing him as a member of a “volunteer advisory council” that met perhaps once. If so, it put him near the right hand of Trump, as a photo Trump once tweeted shows.
Sanders said Papadopoulos’s outreach to senior campaign officials to have Trump meet with Russian officials “was repeatedly denied.” He “reached out and nothing happened beyond that,” Sanders said.
“It has nothing to do with the activities of the campaign, it has to do with this failure to tell the truth,” she added.
When asked why Trump appears in the March 2016 campaign photograph with Papadopoulos, Sanders said Trump appears in “thousands of photographs with millions of people.”
$10 million bond for ex-Trump chairman Paul Manafort after not guilty plea in Russia probe
Former Trump campaign chairman Paul Manafort and his business associate Rick Gates were ordered to surrender their passports and remain in home confinement after pleading not guilty Monday in the first indictments from the special counsel investigating possible coordination between the Trump campaign and Russia.
Manafort was released on $10 million bond and Gates on $5 million.
The two, who were arrested earlier in the day, appeared before a federal judge here Monday afternoon.
They are charged with a total of 12 counts that include conspiracy to launder money, failing to registered as a foreign agent, false statements, and failure to file reports of foreign bank and financial accounts.
Federal prosecutors in the office of Robert S. Mueller III, the special counsel, accused Manafort of hiding roughly $75 million he received in payment for lobbying he did for agents of the former President of Ukraine, Victor Yanukovych and his Party of Regions.
Federal court bars Trump from reversing transgender troops policy
A federal court in Washington, D.C., is barring President Trump from changing the government’s policy on military service by transgender people.
Trump first announced in a July tweet and then in an August memo that he intended to reverse course on a 2016 policy that allowed troops to serve openly as transgender individuals. He said he would order a return to the policy prior to June 2016, under which service members could be discharged for being transgender.
U.S. District Court Judge Colleen Kollar-Kotelly wrote Monday that transgender members of the military who had sued over the change were likely to win their lawsuit and barred the Trump administration from reversing course.
Former Trump campaign aide George Papadopoulos pleads guilty to lying to the FBI agents in Mueller probe
A former foreign policy advisor to Donald Trump’s presidential campaign has pleaded guilty to lying to the FBI about his contacts with Russians who claimed to have “thousands of emails” on Hillary Clinton, in the latest charges filed in the investigation of the Trump campaign’s contacts with Russia.
George Papadopoulos, 30, of Chicago, has agreed to cooperate with the investigation led by special counsel Robert S. Mueller III, according to a plea agreement unsealed on Monday.
He pleaded guilty on Oct. 5 to making false statements to disguise his contacts with Russians whom he thought had “dirt” on Clinton, according to court papers. He was arrested in July as he got off a plane at Dulles International Airport.
After he was contacted by an unnamed Russian professor in March, Papadopoulos exchanged emails with an official in the Russian foreign ministry, court papers say. Among the topics he discussed was a possible visit by Trump to Russia.
“As mentioned we are all very excited by the possibility of a good relationship with Mr. Trump,” one Russian emailed him.
In April, after he had become an advisor to the campaign, Papadopoulos met with the Russian professor at a London hotel. The professor said he had just returned from a trip to Moscow, where he was told “the Russians had emails of Clinton.”
Papadopoulos told other leaders in the Trump campaign that he was in contact with Russians, and said there were some “interesting messages coming in from Moscow about a trip.”
An unnamed campaign official, described as a campaign “supervisor,” encouraged him to make the trip, a document reads.
Papadopoulos was one of several foreign policy advisors to Trump during his campaign.
Papadopoulos previously had served as a policy and economic advisor to Ben Carson, who notably struggled with domestic and foreign policy issues during his failed presidential run.
Before that, the 30-year-old was a consultant at a London-based oil and gas company. He’s a director at the London Centre of International Law Practice. He graduated from DePaul University in 2009.
7:55 a.m.: Adds additional details
Sen. Dianne Feinstein on the Manafort charges: ‘The process is working’
Sen. Dianne Feinstein (D-Calif.), ranking member of the Senate Judiciary Committee, said the charges filed against President Trump’s former campaign chairman Paul Manafort and Manafort’s former business associate showed the special counsel Robert S. Mueller III was “doing his job and the process is working.”
“I’ll continue to support Bob Mueller as he follows the facts — his independence must remain sacrosanct,” the California Democrat said in a statement.
On Friday, Feinstein sent letters requesting information from the White House, Michael Cohen, Facebook, Twitter and Cambridge Analytica on Russia’s use of technology to interfere with the election.
“Bob Mueller’s criminal investigation is important, but Congress has a responsibility to get to the bottom of this and work to make sure it never happens again. That’s why it’s so vital that the congressional investigations continue.”
Trump responds to Paul Manafort charges: ‘There is NO COLLUSION!’
Watch as Paul Manafort arrives at an FBI office to surrender
Former Trump campaign manager Paul Manafort walks into an FBI field office in Washington on Monday after being indicted in special counsel Robert Mueller’s Russian meddling probe.
GOP says lower-tax states are subsidizing California. It’s the other way around, and tax overhaul could make it worse
The main Republican argument for killing the state and local tax deduction is that the break forces residents of low-tax states to subsidize those in California and other high-tax states.
But when it comes to federal taxes, the data show that it’s the other way around. And it could get worse for Californians if the deduction is eliminated as part of the GOP tax overhaul.
California is among 13 states that ship more tax money to Washington than they get back in federal spending, according to the Rockefeller Institute of Government, a public policy think tank in Albany, N.Y.
They’re known as donor states, a title California has held for years, mostly because of the state’s relatively younger population and large number of high-income earners.
Killing the state and local tax deduction, as President Trump and congressional Republican leaders have proposed, probably would tilt the equation even more against California.
Trump campaign manager Manafort, ex-aide charged in Russia probe
Paul Manafort, President Trump’s former campaign manager, has been indicted on 12 charges of money-laundering and conspiracy, the first charges filed in the investigation of possible connections between the Trump campaign and a Russian effort to influence last year’s presidential election.
Manafort, 68, turned himself in at FBI headquarters early Monday for his role in an alleged scheme to use offshore accounts to hide tens of millions of dollars in payments he received for representing a pro-Kremlin political faction in the Ukraine.
Manafort also was charged with filing false reports to conceal the fact that he was acting as an unregistered foreign agent. Also charged in the indictment was Richard W. Gates III, a top business aide to Manafort.
The charges state that Manafort and Gates were agents for former Ukraine President Victor Yanukovych and his Party of Regions.
Manafort and Gates used a variety of offshore accounts in Cyprus and other bank secrecy havens to hide $75 million in payments for the lobbying work, allowing them to avoid filing required registrations and to avoid paying taxes, according to the indictment.
“Manafort used his hidden overseas wealth to enjoy a lavish lifestyle in the United States, without paying taxes on that income,” the charges said.
The White House declined comment on the charges.
Former FBI Director Robert S. Mueller III was named as special counsel in May to investigate the Russian attempts to influence the election, but the charges are not directly tied to that operation. Mueller also has authority to investigate any related crimes that his team uncovers.
Manafort worked for the Trump campaign from March until August, serving for several months as campaign chairman.
6:19 a.m.: This post was updated with the addition of charges against Manafort and Gates
6:38 a.m.: This post was updated with additional details
Puerto Rico says it’s scrapping $300-million Whitefish contract amid increased scrutiny
The head of Puerto Rico’s power company said Sunday the agency will cancel its $300-million contract with Whitefish Energy Holdings amid increased scrutiny of the tiny Montana company’s role in restoring the island’s power system following Hurricane Maria.
The announcement by Ricardo Ramos came hours after Gov. Ricardo Rossello urged the company to scrap the deal.
Ramos said that Whitefish will continue with current work, but the contract would then be scrapped — leading to delay of 10 to 12 weeks in completing the work.
It’s an enormous distraction,” he said on why he canceled the contract. “This was negatively impacting the work we’re already doing.”
Federal investigators have been trying to investigate the contract awarded to the small company from Interior Secretary Ryan Zinke’s hometown. The deal, signed shortly before the hurricane hit, is being audited at the local and federal level.
Whitefish spokesman Chris Chiames told the Associated Press before the Ramos announcement that the company would soon issue a comment.
Rossello said earlier that nearly $8 million has been paid to Whitefish so far.
Rossello said he has requested that crews from New York and Florida come help restore power in Puerto Rico as he criticized the U.S. Army Corps of Engineers for not meeting its goals. The agency could not be immediately reached for comment.
The governor also announced the appointment of an outside coordinator to oversee the power company’s purchase and contracting division.
“If something illegal was done, once again, the officials involved in that process will feel the full weight of the law, and I will take administrative actions,” Rossello said.
Roughly 70% of the island remains without power more than a month after Hurricane Maria struck the U.S. territory on Sept. 20 as a Category 4 storm with winds of up to 154 mph.
Ramos has said that Puerto Rico’s Electric Power Authority reached a deal with Whitefish just days before the hurricane struck, saying that he spoke with at least five other companies that demanded similar rates, in addition to a down payment the agency did not have.
Ramos also has said the Federal Emergency Management Agency had approved of the deal, something the agency has denied.
FEMA said it has not approved any reimbursement requests from the power company for money to cover repairs to the island’s electrical system. The contract said the utility would not pay costs unallowable under FEMA grants, but it also said, “The federal government is not a party to this contract.”
FEMA has raised concerns about how Whitefish got the deal and whether the contracted prices were reasonable. The 2-year-old company had just two full-time employees when the storm hit, but it has since hired more than 300 workers.
A Whitefish contract obtained by the Associated Press found that the deal included $20,277 an hour for a heavy lift Chinook helicopter, $650 an hour for a la