White House seeks to end subsidies for electric cars and renewable energy

White House economic adviser Larry Kudlow said on Monday the Trump administration wants to end subsidies for electric cars and other items, including renewable energy sources.

Asked about plans after General Motors Co (GM.N) announced U.S. plant closings and layoffs last week, Kudlow pointed to the $2,500-to-$7,500 tax credit for consumers who buy plug-in electric vehicles, including those made by GM, under federal law.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow said. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”

Asked about a timeline, he said: “It’s just all going to end in the near future. I don’t know whether it will end in 2020 or 2021.”

The tax credits are capped by Congress at 200,000 vehicles per manufacturer, after which the subsidy phases out. GM has said it expects to hit the threshold by the end of 2018, which means under the current law, its tax credit scheme would end in 2020. Tesla Inc (TSLA.O) said in July it had hit the threshold. Other automakers may not hit the cap for several years.

Experts say the White House cannot change the cap unilaterally. U.S. President Donald Trump last week threatened to eliminate subsidies for GM in retaliation for the company’s decision.

Kudlow made clear any changes in subsidies would not just affect GM. “I think legally you just can’t,” he said.

Democrats will take control of the U.S. House in January and are unlikely to agree to end subsidies for electric cars and many have been pushing for additional incentives.

Tesla and GM have lobbied Congress for months to lift the cap on electric vehicles or make other changes, but face an uphill battle make changes before the current Congress expires.

In October, Senator Dean Heller proposed lifting the current cap on electric vehicles eligible for tax credits but phase out the credit for the entire industry in 2022. Two other senators in September proposed lifting the per manufacturer credit and extending the benefit for 10 years.

Also in October, Senator John Barrasso a Republican who chairs the Senate Environment and Public Works Committee, proposed legislation to end the EV tax credit entirely.

[Raw Story]

Donald Trump Retweets Claim That Paris Protesters Are Chanting ‘We Want Trump.’ They’re Not

President Donald Trump retweeted a post Tuesday making several inaccurate claims about the ongoing protests that have rocked Paris and other parts of France.

The original tweet was written by Charlie Kirk, founder and president of the right-wing nonprofit Turning Point USA. In his post, Kirk claimed, “There are riots in socialist France because of radical leftist fuel taxes.” He added that “Europe is burning” and that the demonstrations are a middle-class rebellion against “cultural Marxism.”

“‘We want Trump’ being chanted through the streets of Paris,” he concluded.

Although protesters have taken to the streets to demonstrate against fuel taxes—which were promoted as a way of combating climate change—as well as other price hikes, the criticism of President Emmanuel Macron is actually the opposite of what Kirk and other right-wing commentators have claimed. Opposition political leaders have actually called for increased taxes on the wealthy, while demonstrators have taken to the streets against rising costs, as they’ve seen some of their social support curbed by the government.

Kirk’s claim that people are chanting “We want Trump” appears to be based on a trending video of demonstrators appearing to mock the U.S. president. The video circulating on social media does not appear to have been filmed in Paris or even in France but in London, possibly during anti-Trump demonstrations earlier this year. Conservative talk radio host Rush Limbaugh also claimed that French demonstrators were chanting “We want Trump.”

However, French residents told Newsweekthat the suggestions were laughable, as there were signs lining roads calling Macron a “capitalist pig.” Demonstrators are also calling for higher taxes on the rich and to redistribute wealth in the country, they said.

France 24’s White House correspondent Philip Crowther slammed Trump for retweeting the false claims made by Kirk. “Lies being retweeted by the President: Europe is obviously not burning, and ‘We want Trump’ is not being chanted through the streets of Paris,” he wrote. “Also, the fuel taxes are not radical leftist and France is not socialist. Any other lies?”

[Newsweek]

Stock markets plunge after Trump’s ‘Tariff Man’ tweet

Stocks took a nosedive on Wall Street as investors worried that a US-China trade truce reached over the weekend wasn’t all it was cracked up to be.

The Dow Jones Industrial Average sank almost 800 points Tuesday.

Boeing and Caterpillar, two major exporters which would have much to lose if trade tensions don’t ease, weighed the most on the Dow.

Bond prices soared sharply, sending yields lower, as traders shoved money into lower-risk investments.

The sharp drop in yields hurt banks because it makes it harder to earn money from lending. JPMorgan Chase sank 4.5 percent.

The S&P 500 lost 90 points, or 3.2 percent, to 2,700.

The Dow dropped 799 points, or 3.1 percent, to 25,027. The Nasdaq fell 283 points, or 3.8 percent, to 7,158.

The markets plunged after President Donald Trump unleashed a threatening tweet Tuesday morning.

“President Xi and I want this deal to happen, and it probably will. But if not remember, I am a Tariff Man,” Trump tweeted.

[New York Post]

Treasury proposes postal changes after Trump attacks on Amazon

President Donald Trump’s task force scrutinizing U.S. Postal Service operations is proposing an overhaul of the financially distressed agency, including changes to how it prices packages shipped by retailers like Amazon, a frequent target of the president’s attacks.

In a report released on Tuesday, the Treasury-led task force says the Postal Service should price packages “with profitability in mind” and impose higher rates on general e-commerce goods and other non-essential items sent through the mail.

Trump commissioned the report earlier this year after months of attacking Amazon for, in his view, ripping off USPS and treating the agency like its “Delivery Boy.” Amazon CEO Jeff Bezos privately owns The Washington Post, and Trump, who slams the Post’s coverage as unfair, often conflates the newspaper with the e-commerce giant, even calling it the “Amazon Washington Post.”

The report’s recommendations are broad and sweeping. They call for stronger oversight by the Postal Service Board of Governors — which sat empty for much of Trump’s presidency. They also encourage the agency to consider other revenue streams, such as renting out unused real estate to businesses, charging outside shippers for access to people’s mail boxes and issuing hunting and fishing licenses.

But the ideas for package rates are likely to draw the most scrutiny, given the president’s attacks on Amazon. The task force says the Postal Service should distinguish between essential items, such as medication or tax notices, and non-essential items, such as consumer products — and mark up the latter to generate more income.

The administration on Tuesday denied that it’s targeting Amazon, saying the report’s recommendations would hit the coffers of all retailers with a large volume of online sales.

“None of our findings or recommendations are linked to any one customer or competitor of the Postal Service,” said a senior administration official. “We based our analysis on the needs of the entire economy and all its businesses.”

But Trump’s frequent rants about Amazon hover over the findings.

“I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,” Trump tweeted in April shortly before the White House announced the task force. “Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!”

The president told The Daily Caller last month that Amazon is “getting the bargain of the century,” adding, “I think that’s why I’ve asked for a review.”

The task force, led by Treasury Secretary Steven Mnuchin, spent weeks meeting with companies and trade associations in affected industries like retail and package delivery. Officials from the Office of Management and Budget and other federal agencies have also been involved. A report was initially delivered to the White House in August, though its public release was delayed until later in the year.

The senior administration official said the Postal Service and Postal Regulatory Commission can enact some of the changes, including increasing package prices, without intervention from Congress, but said other proposed changes would require lawmakers to act.

For more than a decade, the Postal Service has logged billion-dollar loses, resulting in a total cumulative deficit of nearly $63 billion as of September. But those losses are not driven by Amazon or other big shippers of packages. Instead, much of it can be attributed to the decline of letter mail in the internet era and the mandatory payments that Congress has ordered the Postal Service to make into a retiree benefits fund. The task force recommends restructuring that obligation, but not doing away with it altogether.

The report does not call for privatizing the Postal Service, despite the Trump administration saying in June that it wanted to do so as part of a government reorganization.

Amazon did not immediately comment, but an industry coalition that represents the e-commerce giant warned the report could cause widespread economic damage.

“If it were to be adopted in its entirety I think we would be approaching a worst-case scenario from a consumer and business perspective,” said John McHugh, a congressman-turned-lobbyist who leads the so-called Package Coalition, saying Congress should be involved in changing longstanding Postal Service regulations.

Amazon, like other bulk users of the Postal Service, negotiates a special shipping rate that is not publicly disclosed. Though Amazon would pay below the standard rate, by law, those negotiated arrangements must cover the cost of shipping the packages — meaning the post office cannot lose money on them as Trump claims. Each agreement is evaluated and endorsed by the Postal Regulatory Commission and approved by the Postal Service Board of Governors.

Package delivery has been a rare bright spot on the Postal Service’s earnings statement. Mail carriers are delivering more packages than ever before — as the number of standard letters steadily declines — bringing in $21.5 billion in revenue in the most recent fiscal year.

Amazon has been developing other delivery options in anticipation that the Postal Service cannot accommodate its rapid growth. It runs a service in which contract drivers drop orders at customers’ doors and recently announced it would lease trucks to entrepreneurs to start delivery services. The company has also experimented with aerial drones and, according to media reports, self-driving vehicles, though those are still years away from adoption because of technological and regulatory hurdles.

The investments could help Amazon lessen the sting of a rate hike over the long term or gradually move away from the Postal Service altogether if shipping expenses become too prohibitive. Industry advocates have warned that fewer packages would only mean more pain for the agency’s bottom line.

Trump’s most direct impact on the Postal Service could be appointees to the Board of Governors. The body plays a key role approving so-called negotiated service agreements, giving it a hand in how much Amazon and others must pay for postal services. The board could, in theory, send Postal Service negotiators back to the table if such deals are not judged to be in the agency’s best interest.

The board sat entirely vacant for the first 18 months of Trump’s presidency. He’s so far nominated people for three of the nine board seats, two of whom were approved by Senate-wide vote in late August.

[Politico]

Trump: Roger Stone has ‘guts’ for not testifying against me

President Donald Trump on Monday praised longtime associate Roger Stone for refusing to talk to special counsel Robert Mueller, as the president continues to denounce the investigation.

“‘I will never testify against Trump.’ This statement was recently made by Roger Stone, essentially stating that he will not be forced by a rogue and out-of-control prosecutor to make up lies and stories about ‘President Trump,'” Trump wrote on Twitter. “Nice to know that some people still have ‘guts!'”

Stone, who has come under scrutiny in Mueller’s Russia probe for possible contacts with WikiLeaks during the 2016 election, said on Sunday during an interview on ABC’s “This Week” that there’s “no circumstance in which I would testify against the president.” He has denied multiple times that he had any direct knowledge that WikiLeaks was going to release hacked emails from Hillary Clinton’s campaign.

Stone also said Sunday that he has not discussed a pardon for himself or for former Trump campaign chairman Paul Manafort, who was convicted in a financial fraud trial brought by Mueller. The president told the New York Post last week that he has “never discussed” a pardon for Manfort, but “wouldn’t take it off the table.”

“I’ve had no discussion regarding a pardon,” Stone said over the weekend.

Trump on Twitter also continued to denounce Mueller’s investigation into whether Russia colluded with Trump’s presidential campaign, claiming without evidence that the special counsel “only wants lies.”

Stone during his Sunday interview claimed that Mueller wanted him to “bear false witness against” Trump, adding that he “would have to make things up.”

“Bob Mueller (who is a much different man than people think) and his out of control band of Angry Democrats, don’t want the truth, they only want lies,” Trump tweeted Monday. “The truth is very bad for their mission!”

[Politico]

Trump: Cohen should go to prison

President Trump on Monday said Michael Cohen does not deserve leniency for cooperating with special counsel Robert Mueller, arguing that his former personal lawyer should serve a “full and complete” prison sentence.

“He makes up stories to get a GREAT & ALREADY reduced deal for himself, and get his wife and father-in-law (who has the money?) off Scott Free [sic],” Trump wrote on Twitter of Cohen. “He lied for this outcome and should, in my opinion, serve a full and complete sentence.”

Trump sought to further distance himself from his onetime ally by incorrectly claiming that Cohen’s crimes were “unrelated to Trump.”

Cohen in August pleaded guilty to campaign-finance violations, implicating Trump in a dramatic court hearing during which Cohen also pleaded to a slew of financial crimes stemming from his private business dealings.

Last week, Cohen also pleaded guilty to lying to Congress about the Trump Organization’s efforts to build a tower in Russia, a central matter in Mueller’s investigation into alleged ties between the Trump campaign and the Kremlin’s interference in the 2016 election.

The former Trump lawyer asked a federal judge to spare him prison time, in part, because he said he lied to lawmakers in order to “to support and advance [Trump’s] political messaging.” Trump was referred to in court as Individual 1.

His sentencing is scheduled for Dec. 12.

Cohen’s plea has angered Trump, who is facing growing legal and political danger as a result of his former ally’s cooperation.

While he blasted Cohen for turning against him, the president encouraged other people tied up in the Mueller probe to show loyalty.

Trump praised his on-again, off-again adviser, Roger Stone, for refusing to cooperate with investigators.

“He will not be forced by a rogue and out of control prosecutor to make up lies and stories about ‘President Trump.’ Nice to know that some people still have ‘guts!’” Trump wrote of Stone.

Stone has come under scrutiny for his alleged ties to WikiLeaks, which published emails stolen by Russians from Democratic officials during the 2016 campaign.

[The Hill]

Trump says he will withdraw from NAFTA, pressuring Congress to approve new trade deal

President Donald Trump said he intends to formally notify Canada and Mexico of his intention to withdraw from the nearly 25-year-old NAFTA agreement in six months. The move would put pressure on Congress to approve his new trade deal with the two U.S. neighbors.

“I’ll be terminating it within a relatively short period of time. We get rid of NAFTA. It’s been a disaster for the United States,” Trump said on board Air Force One after departing Buenos Aires, where he signed the U.S.-Mexico-Canada Agreement with the leaders of those two countries.

“And so Congress will have a choice of the USMCA or pre-NAFTA, which worked very well,” Trump added.

Trump’s comments confirmed what many have long suspected — that he would use the act of withdrawing from NAFTA as a cudgel to force Congress into passing the new deal.

But it also could be seen as an admission that the new agreement is not popular enough to be approved on its own merits, so Trump has to use the threat of disrupting the entire North American economy to round up the votes in Congress to get the deal past the finish line.

While a number of business groups do support the new deal because it contains new provisions on digital trade and strengthens intellectual property rights protections, others are simply relieved that it would keep much of the original agreement in place.

House Democrats, who are likely to hold the key to whether the new agreement is approved, have complained that labor and environmental provisions are not strong enough and have signaled they would like those concerns addressed as part of the implementing legislation.

Trump’s untested move would send the administration and Congress into a legal wilderness. The NAFTA deal includes a provision that allows a withdrawal after providing a six-month notice, but opinions differ on whether the president can act on his own.

Lawmakers passed legislation to implement the original deal in 1993. It’s uncertain whether a withdrawal initiated by the president would repeal the law that put the deal into force.

The president needs to take a look at the Constitution — it gives Congress authority over trade,” Sen. Ron Wyden (D-Ore.) said in September. “The president cannot pull America out of NAFTA without Congress’s permission.”

A 2016 report from the Congressional Research Service seems to be back up that position.

“It could be argued that because international trade is an area of shared constitutional authority, Congress must have a role in any decision by the United States to terminate or withdraw from an FTA,” CRS said.

Others argue Congress ceded authority to the executive branch decades ago that would allow Trump to terminate trade deals. They say Section 125 of the Trade Act of 1974 provides the underlying legal basis for a president to terminate or withdraw from an agreement and revoke any tariff reductions.

[Politico]

Donald Trump cancels G-20 news conference “out of respect” for George H.W. Bush

President Trump canceled a planned press conference at the G-20 summit in Argentina on Saturday, citing respect for former President George H.W. Bush, who died on Friday at the age of 94. Mr. Trump’s planned unilateral news conference for Saturday afternoon was expected to cap an eventful trip, amid domestic legal concerns and troubled international relations.

“I was very much looking forward to having a press conference just prior to leaving Argentina because we have had such great success in our dealing with various countries and their leaders at the G20,” Mr. Trump said in the first of two tweets. “However, out of respect for the Bush Family and former President George H.W. Bush we will wait until after the funeral to have a press conference.”

Mr. Trump and the first lady will attend Bush’s funeral at the National Cathedral in Washington D.C. next week.

The press availability was supposed to occur after Mr. Trump’s meeting with German Chancellor Angela Merkel. He is meeting with Chinese President Xi Jinping later in the day.

Mr. Trump was expected to be asked about his relationship with Russian President Vladimir Putin, amid new developments in the special counsel investigation into Russian interference in the 2016 election.

Mr. Trump canceled his meeting with Putin, which was intended for Saturday morning, on Thursday via Twitter, citing Russian aggression against Ukraine. His announcement came shortly after Michael Cohen, Mr. Trump’s former private lawyer, pleaded guilty to lying to Congress as part of the special counsel investigation.

Press Secretary Sarah Huckabee Sanders said in a statement that Mr. Trump’s decision to cancel the news conference was in no way influenced by Cohen’s plea deal.

“The Russian Witch Hunt Hoax, which is hopefully now nearing an end, is doing very well. Unfortunately, it probably does undermine our relationship with Russia. However, the reason for our canceled meeting is Ukraine. Hopefully, that will be resolved soon so that productive conversations can begin,” Sanders said.

[CBS News]

President Trump Plugs Hannity’s Show on Twitter: ‘Enjoy!’

After a big day at the G20, President Donald Trump went back to tweeting about domestic concerns tonight.

As Sean Hannity kicked off his show, Trump tweeted out to people to tune in and watch:

Hannity’s show opened tonight with another lengthy monologue on the Mueller “witch hunt.” At one point he called it “political persecution.”

[Mediaite]

Trump calls Russia deal ‘legal and cool’ as Mueller inquiry gathers momentum

Donald Trump, drawn deeper into an investigation into Russian meddling in US elections, has defended his pursuit of a business deal in Moscow at the same time he was running for president as “very legal & very cool”.

Trump appeared rattled this week after Michael Cohen, his former personal lawyer, confessed that he lied to Congress about a Russian property contract he pursued on his boss’s behalf during the Republican primary campaign in 2016.

In a series of tweets from Buenos Aires, where he is attending the G20 summit, Trump recalled “happily living my life” as a property developer before running for president after seeing the “Country going in the wrong direction (to put it mildly)”.

“Against all odds,” he continued, “I decide to run for President & continue to run my business-very legal & very cool, talked about it on the campaign trail. Lightly looked at doing a building somewhere in Russia. Put up zero money, zero guarantees and didn’t do the project. Witch Hunt!”

The president frequently uses the phrase “witch hunt” to belittle Mueller’s investigation, which began in May last year and seems to have gathered momentum in recent days.

Trump repeatedly said during the election campaign that he had no ties to Russia. In July 2016 he tweeted: “For the record, I have ZERO investments in Russia.”

But Cohen, who had already pleaded guilty to campaign finance violations and other financial crimes in a separate case brought by federal prosecutors in New York, on Thursday said he had lied to Congress about a proposed Trump Tower skyscraper in Moscow.

Cohen told two congressional committees last year that the talks about the tower project ended in January 2016, a lie he said was an act of loyalty to Trump. In fact, the negotiations continued until June that year, after Trump had secured the Republican nomination, Cohen admitted.

Cohen told Mueller’s prosecutors that he briefed Trump on the project more than three times. He also briefed members of Trump’s family, had direct contact with Kremlin representatives and considered traveling to Moscow to discuss it.

Trump condemned Cohen after the plea deal was announced, calling him “a weak person” and a liar. As he departed for Buenos Aires, he acknowledged his business dealings with Russia, telling reporters: “It doesn’t matter because I was allowed to do whatever I wanted during the campaign.”

Mueller’s team has brought charges or secured convictions against more than two dozen Russian nationals and entities, as well as several of Trump’s associates, but now the president himself is front and centre. Experts suggested that the walls are closing in.

Jeffrey Toobin, a legal analyst, told CNN: “Today is the first day I actually thought Donald Trump might not finish his term in office. I think this thing is enormous.” An opinion column in the Washington Post was headlined: “Trump should be freaked out right about now.”

Democrats have joined the criticism. Senator Chris Murphy tweeted: “This whole thing has likely been a scam from the start. It’s not some wild coincidence that the Administration’s foreign policy is most inexplicable toward the two countries – Russia and Saudi Arabia – where the Trump family pursues the most business.”

But the White House remains defiant. Trump’s lawyer, Rudy Giuliani, issued a statement that said: “BREAKING NEWS ALERT: Michael Cohen is a liar. It’s no surprise that Cohen lied to Congress. He’s a proven liar who is doing everything he can to get out of a long-term prison sentence for serious crimes of bank and tax fraud that had nothing to do with the Trump Organization.”

He added: “With regard to the hotel proposal in Moscow, the President has been completely open and transparent.”

Trump still owns his private company but had said he would hand over day-to-day dealings to his sons Donald Trump Jr and Eric Trump when he took office in January 2017. He has repeatedly blurred the distinction between business and public office that has been observed by past presidents.

His meeting with the Russian president, Vladimir Putin, in Helsinki earlier this year drew fierce criticism after Trump appeared to side with Moscow’s denials over the findings of his own intelligence agencies. After Cohen’s plea, Trump cancelled his planned meeting with Putin at the G20, citing the Ukraine crisis. Russia’s foreign ministry on Friday said it believed the meeting was canceled over “the US domestic political situation”.

The Cohen confession comes as Mueller’s investigation gathers pace. Trump has provided responses to written questions while the special counsel has accused his former campaign chairman, Paul Manafort, of lying after his own guilty plea.

On Friday, Judge Amy Berman Jackson of the US District Court for the District of Columbia asked Mueller’s team to submit a report next week outlining how they believe Manafort breached a plea agreement struck shortly before he was to have gone on trial on charges including money laundering, failing to register as a lobbyist for the Ukraine government and conspiracy to defraud the US.

The judge set 5 March as a tentative date for sentencing of Manafort, a veteran Washington consultant convicted of financial crimes. Prosecutors also left open the possibility that new charges could be filed against Manafort for lying. “That determination has not been made,” prosecutor Andrew Weissmann said.

In August, a jury in Virginia had convicted Manafort of bank and tax fraud in a separate case. He is scheduled to be sentenced on 8 February for that conviction.

Mueller continues to investigate whether campaign associates had advance knowledge of hacked emails becoming public. Another potential target, Jerome Corsi, has rejected a plea offer and faces a possible indictment.

[The Guardian]

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