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United States Postal Service (USPS) clerks sort mail at the Lincoln Park carriers annex in Chicago, Illinois on November 29, 2012. (Photo: Reuters)

United States Postal Service (USPS) clerks sort mail at the Lincoln Park carriers annex in Chicago, Illinois on November 29, 2012. (Photo: Reuters)

The Institute for Supply Management (ISM) Non-Manufacturing Index (NMI) climbed to 60.1 in October, the highest level ever recorded for the gauge of U.S. service sector activity. Overall, only 2 of the 18 U.S. service sector industries didn’t report growth in October.

The highest reading among pre-2008 composite index calculations is 61.3% in August 2005, before it was publicly reported.

“According to the NMI, 16 non-manufacturing industries reported growth,” said Anthony Nieves, Chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “The non-manufacturing sector has reflected the third consecutive month of strong growth. Respondent comments continue to indicate a positive outlook for business conditions, and the economy as we begin the fourth quarter.”

The New Orders Index again came in at an unusually strong 62.8%, though a decline of 0.2 percentage point from the 63% reading in September. The Employment Index again gained 0.7% in October to 57.5 percent from the September reading of 56.8%. The Prices Index decreased by 3.6% from the September reading of 66.3% to 62.7%, indicating prices increased in October for the fifth consecutive month.

The ISM Non-Manufacturing Index (NMI) also tracks construction and mining, both industries that suffered under the Obama Administration and are now booming. Construction in the private sector alone added 66,000 jobs last month in the ADP National Employment Report and the jobs report from the Bureau of Labor Statistics (BLS) showed manufacturing added 24,000.

Read Full Report

The Institute for Supply Management (ISM) Non-Manufacturing

A "Now Hiring" sign hangs on the door to the Urban Outfitters store at Quincy Market in Boston, Massachusetts September 5, 2014. (Photo: Reuters)

A “Now Hiring” sign hangs on the door to the Urban Outfitters store at Quincy Market in Boston, Massachusetts September 5, 2014. (Photo: Reuters)

The Bureau of Labor Statistics (BLS) jobs report showed the U.S. economy added 261,000 jobs and the unemployment rate fell to 4.1%, the lowest level in 17 years. It hasn’t been that low since December 2000.

The number of unemployed persons decreased by 281,000 to 6.5 million, though the labor force participation rate and employment-population ratio decreased by 0.4 and 0.2, respectively.

While wage inflation eased back, the lower paying sectors continue to represent a smaller share of the jobs created than higher paying sectors. For instance, employment in food services and drinking places rose significantly by 89,000, while professional business and services rose by 50,000.

Manufacturing rose solidly by 24,000 and declining before the policy-change under the Trump Administration. The manufacturing sector has added 156,000 jobs since a recent employment low in November 2016, when President Donald Trump was elected.

The average workweek for all employees was essentially unchanged at 34.4 hours in October save for manufacturing, which increased by 0.2 hour to 41.0 hours. Overtime ticked up by 0.1 hour to 3.5 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls also edged up by 0.1 hour to 33.7 hours.

Average hourly earnings for all employees on private nonfarm payrolls, at $26.53, was little changed after rising by 12 cents in September. However, over the past 12 months, average hourly earnings have finally increased by 63 cents, or 2.4%.

[caption id="attachment_61277" align="aligncenter" width="1200"] A "Now Hiring"

Chairman of the House Ways and Means Committee Kevin Brady (R-TX) and Speaker of the House Paul Ryan (R-WI) and unveil legislation to overhaul the tax code on Capitol Hill in Washington, U.S., November 2, 2017. (Photo: Reuters)

Chairman of the House Ways and Means Committee Kevin Brady (R-TX) and Speaker of the House Paul Ryan (R-WI) and unveil legislation to overhaul the tax code on Capitol Hill in Washington, U.S., November 2, 2017. (Photo: Reuters)

House Republicans have unveiled their much-anticipated tax plan. Is the Tax Cuts and Jobs Act something to celebrate? Well, that depends on whether you’re grading on a curve. Compared to a pure, simple, and fair flat tax, it’s timid and disappointing.

But compared to today’s wretched and unfair tax code, there are some very positive changes.

At the end of 2015, I reviewed the major tax plans put forth by the various presidential candidates, grading them on issues such as tax rates, double taxation, and simplicity.

Trump’s plan got the lowest score, though “B-” nonetheless represented a non-trivial improvement over the status quo.

And since he wound up in the White House, nobody should be surprised to see that many of his priorities are reflected in the House plan.

So let’s grade the major provisions of this new proposal (with the caveat that grades may change as more details emerge).

Lower corporate rate: A

America’s high corporate tax rate is probably the most self-destructive feature of the current system. If the rate is permanently reduced from 35 percent to 20 percent, that will be a huge boost to competitiveness.

Lower individual rates: C+

The proposal is relatively timid on rate reductions for households. This is disappointing, but not unexpected since lower individual tax rates mean considerable revenue loss.

Ending deduction for state and local income taxes: A+

Next to the lower corporate tax rate, this is the most encouraging part of the proposal. It generates revenue to use for pro-growth provisions while also eliminating a subsidy for bad policy on the part of state and local governments.

Curtailing mortgage interest deduction: B-

Instead of allowing mortgage interest deduction on homes up to $1 million, the cap is reduced to $500,000. A modest but positive improvement that will reduce the distortion that creates a bias for residential real estate compared to business investment.

Death tax repeal: A-

Don’t die for six years, because that’s how long it will take before the death tax is repealed. But if we actually get to that point, this will represent a very positive change to the tax system.

Change to consumer price index: C

It is quite likely that the consumer price index overstates inflation because it doesn’t properly capture increases in the quality of goods and service. Shifting to a different price index will lead to higher revenues because tax brackets and other provisions of the tax code won’t adjust at the same rate. That’s fine, but I’m dissatisfied with this provision since it should apply to spending programs as well as the tax code.

Reduced business interest deduction: C+

The business interest deduction is partially undone, which is a step toward equal treatment of debt and equity. It’s not the right way of achieving that goal, but it does generate revenue to finance other pro-growth changes in the legislation.

Here’s a useful summary from the Wall Street Journal of changes to business taxation.

Now let’s zoom out and grade the overall plan in terms of major fiscal and economic goals.

Restraining the growth of government: F

In my fantasy world, I want a return to the very small federal government created and envisioned by the Founding Fathers. In the real world, I simply hope for a modest bit of spending restraint. This legislation doesn’t even pretend to curtail the growth of government, which is unfortunate since some fiscal prudence (federal budget growing about 2 percent per year) would have allowed a very large tax cut while also balancing the budget within 10 years.

Collecting revenue in a less-destructive manner: B

This is a positive proposal. It will mean more jobs, increased competitiveness, and higher incomes. The wonks in Washington doubtlessly will debate whether these positive effects are small or large, but I’m not overly fixated on that issue. Yes, I think the growth effects will be significant, but I also realize that many other policies also determine economic performance.

The most important thing to understand is that even small increases in growth can make a big difference over time.

The bottom line is that half a loaf — or, in this case, a fourth of a loaf — is better than nothing. House Republicans have a good plan. Now the question is whether the Senate makes it better or worse (hint: don’t be optimistic).

House Republicans have unveiled their much-anticipated tax

Homeland Security Secretary John Kelly, right, listens to U.S. President Donald Trump during a meeting with cyber security experts in the Roosevelt Room of the White House in Washington January 31, 2017. (Photo: Reuters)

Homeland Security Secretary John Kelly, right, listens to U.S. President Donald Trump during a meeting with cyber security experts in the Roosevelt Room of the White House in Washington January 31, 2017. (Photo: Reuters)

President Donald J. Trump intensified his calls for the U.S. Congress to “immediately terminate” the Diversity Immigrant Visa (DV) Program. He also renewed his call to end chain migration, an endless chain of foreign nationals who are allowed to immigrate to the United States (US) because citizens and lawful permanent residents are allowed to sponsor their non-nuclear family members.

“I had an excellent meeting today with Chairman Grassley and other lawmakers on immigration reform following the terrorist attack in New York,” President Trump said at the White House on Thursday. His remarks came before he met with Republican House leadership, who introduced  the “Tax Cuts and Jobs Act” earlier in the afternoon.

“I’m calling on Congress to immediately terminate the Diversity visa lottery program. It’s a disaster for our country.”

As People’s Pundit Daily (PPD) was first to report, Sayfullo Saipov, the 29-year-old Uzbekistan national who killed 8 and injured at least 11 others during a terror attack near the World Trade Center on Tuesday, came to the U.S. under the program in 2010. The Obama Administration singled out Section 203(c) of the Immigration and Nationality Act (INA) to provide “a limited number” of visas for a class of immigrants known as “diversity immigrants.”

DV visas are allegedly issued to those who come from countries with historically low rates of immigration to the U.S., regardless of risk to national security. They are distributed among 6 geographic regions as a lottery, and registration costs are non-existent.

Put plainly, it’s free to apply.

“This program grants visas not on the basis of merit but simply because applicants are randomly selected in an annual lottery and the people put in that lottery are not that country’s finest,” President Trump said. “We know that the program presents significant vulnerabilities to our national security. It’s a very unsafe program for our country and we’re not going to allow it to happen.”

Uzbekistan, which according to Pew Research Center is 96.7% Islamic, was removed from the list of eligible countries under the Trump Administration, though it still remains until 2019. But President Trump isn’t only weighing whether to add Uzbekistan to the list of nations included in his executive order limiting travel and refugee resettlement from countries known as hotbeds of terror.

“We’re going to end that program,” he added. “So, I think Congress will take that up very quickly.”

Saipov drove a rented pickup truck from Home Depot through a crowded bike path for several blocks before finally crashing into a yellow school bus near Chambers and West Street, according to the New York City Police Department. He exited the truck shouting “Allahu Akbar.”

In September, President Trump said that chain migration would be a deal-breaker for any immigration reform bill passed in Congress and sent to his desk.

“Additionally, Congress must end chain migration so that we can have a system that is security based, not the way it is now. We want a system ultimately that is merit-based so that we can bring in people who will help our country, grow our country and be safe for our country. We want to select people based on their ability to contribute to our country, not choose people randomly when we have no idea who they are or based on extended family connections.”

“We have people bringing in 24, 25, 26 people when they come in,” President Trump said. “We have to end chain migration.”

Annual immigration has at least tripled since chain migration began in the mid-1960s, though some estimates are even higher. For instance, the U.S. admitted 1,064,318 immigrants in 2001, roughly 4 times greater than in the 1950s. As the Federation for American Immigration Reform (FAIR) notes, it’s enough to populate or even create a major city the size of Chicago, Illinois.

Only five years after chain migration began, the number of immediate relative admissions nearly doubled from 32,714 in 1965 to 79,213 in 1970. Thirty-six years later, the number of immediate relatives admitted was more than 13 times higher – 443,964.

In August, the President – flanked by Sens. Tom Cotton, R-Ark., and David Perdue, R-Ga. – introduced the Reforming American Immigration for a Strong Economy Act, or RAISE Act. Supported by more than 70% of Americans, the RAISE Act reforms the U.S. legal immigration system from a family-based (chain) to a merit-based in order to benefit U.S. workers.

It is estimated to cut entries by 50% over the next decade and establishes a points-based merit system that prioritizes high-skilled immigrants and those who have the potential to become job-creating entrepreneurs. The changes are modeled on the immigration systems adopted in Canada and Australia.

President Donald J. Trump intensified his push

Broadcom Limited company logo is pictured on an office building in Rancho Bernardo, California May 12, 2016. (Photo: Reuters)

Broadcom Limited company logo is pictured on an office building in Rancho Bernardo, California May 12, 2016. (Photo: Reuters)

Broadcom Limited (AVGO) President and CEO Hock E. Tan announced the Fortune 100 company is moving its headquarters back to the United States (US) under President Donald Trump. In a joint press conference with President Trump at the White House on Thursday, Mr. Tan said the move back from Singapore will bring more than $20 billion in annual revenue back to the U.S., based in Pennsylvania.

“Thank you Mr. President. It’s truly an honor, a rare honor,” Mr. Tan said, adding his “mother would never have imagined that one day her son would be in the Oval Office standing next to the President of the United States.”

“I run Braodcom today and Broadcom is the product of three American legacy items,” Mr. Tan said. “But in the past, when the conditions in this country made it harder for companies to compete in global markets, the intellectual properties of these companies globalized and moved offshore.”

“Today, we are announcing that we are making America home again.”

The announcement comes on the same day House Republicans unveiled the Tax Cuts and Jobs Act, which will cut rates for working Americans, simplify the code and slash the corporate tax rate. The unpopular death tax will be repealed and the corporate tax rate will be cut to 20% to ensure American companies can compete in the global marketplace. It lowers individual rates to 0%, 12%, 25% and 35%.

The 39.6% rate for the highest earners is maintained.

“Thanks to you Mr. President, business conditions have improved again in the U.S.,” Mr. Tan added. “Each year, we will invest over 3 billion a year in research and engineering and another 6 billion in manufacturing, creating high-paying jobs. I look forward to helping to achieve the American dream once again.”

Broadcom Limited President and CEO Hock E.

House Speaker Paul Ryan, R-Wis., holds up a post card form during the introduction of the Republican tax reform plan, dubbed the "Jobs Act," on Thursday November 2, 2017.

House Speaker Paul Ryan, R-Wis., holds up a post card form during the introduction of the Republican tax reform plan, dubbed the “Tax Cuts and Jobs Act,” on Thursday November 2, 2017.

House Republicans on Thursday introduced their highly-anticipated tax reform plan dubbed the Tax Cuts and Jobs Act, which will cut rates for working Americans, simplifies the tax code and preserves the popular 401K retirement account deduction.

“With this plan, the typical family of 4 will save $1182 a year on their taxes,” Speaker Ryan said. “It covers your family’s phone bill for the year, pay down your debt, put money away from college. With this plan, we are getting rid of loopholes for special interest and we are leveling the playing field. We’re making things so simple, that you can do your taxes on a form the size of a postcard.”

Roughly 90% of Americans will be able to take advantage of the post card filing Speaker Ryan mentioned, while the Tax Cuts and Jobs Act increases the child tax credit to $1,600 from $1,000. The $4,050 per child exemption would be repealed, while it limits the deductibility of local property taxes to $10,000 and eliminates the the deduction for state income taxes.

“That’s your money,” Rep. Kevin Brady, R-Calif., said. “You earned it. You deserve to keep it.”

It would also reduce the cap for the mortgages interest deduction to $500,000 for newly purchased homes, down from the current cap of $1 million. The unpopular death tax will also be repealed and the corporate tax rate will be cut to 20% to ensure American companies can compete in the global marketplace, and lowers individual rates to 0%, 12%, 25% and 35%.

The 39.6% rate for the highest earners is maintained.

“Repealing the death tax is incredibly important to me because it’s the most unfair tax in our tax code,” Rep. Kristi Noem, R-S.D., said.

The House Ways and Means Committee is slated to consider the Tax Cuts and Jobs Act next week.

“We are going to make our economy boom,” Rep. Kathy Morris, R-Wa., added. “Our plan is pro-family and it’s pro-economic growth.”

President Donald Trump has stressed to Republican leaders on Capitol Hill that he wants to see the bill on his desk to become law before Christmas.

“Every single American is going to keep more of what they earn,” House Majority Leader Kevin McCarthy, R-Calif., said. “Even before this tax reform plan goes into effect, I believe we are going to begin to see businesses start to come back. This is about America First and this is about the future.”

Republicans need a big legislative win in order to justify their majority before the 2018 midterm elections. Thus far, they’ve failed to make good on their 7-year promise to repeal ObamaCare and more than 200 bills that passed in the House have stalled in the U.S. Senate.

“We’re going to get this done – you know why?” Speaker Ryan asked. “Because the American people are counting on us.”

House Republicans introduced the Tax Cuts and

President Donald Trump, center, gestures during a meeting with House and Senate Leadership in the Roosevelt Room of the White House in Washington, Tuesday, June 6, 2017. With Trump are from left, Senate Majority Leader Mitch McConnell of Ky., House Speaker Paul Ryan of Wis., and Senate Majority Whip John Cornyn of Texas. (Photo: AP)

President Donald Trump, center, gestures during a meeting with House and Senate Leadership in the Roosevelt Room of the White House in Washington, Tuesday, June 6, 2017. With Trump are from left, Senate Majority Leader Mitch McConnell of Ky., House Speaker Paul Ryan of Wis., and Senate Majority Whip John Cornyn of Texas. (Photo: AP)

It’s not easy being a libertarian in the policy world of Washington. I view the flat tax as a timid intermediate step, with the real goal being a tiny federal government — like the Founding Fathers envisioned — that can be financed without any broad-based tax.

Yet even my timid intermediate step is considered radical and impractical by D.C. standards. There’s no discussion of fundamental tax reform. Instead, the  debate revolves around whether we can reduce a couple of tax rates in one part of the code and “pay for” those changes by altering some provisions in another part of the code.

This is very frustrating, which is why I joked with Neil Cavuto that we could kill two birds with one stone by trading Trump, Hillary, Manafort, and Podesta to Russia in exchange for that country’s 13 percent flat tax.

But I want to address a couple of serious points in the interview.

To conclude, most people assume that something will pass simply because GOPers desperately need some sort of victory to compensate for their failure to repeal (or even just tinker with) Obamacare.

That’s true, but that doesn’t change the fact that any bill can be defeated if Democrats are unified in opposition and a small handful of Republicans decide to vote no.

By the way, I’m not completely unsympathetic to some of the Republicans who are wavering on whether to vote for a reform bill. Consider their predicament: If there’s a bill that cuts the corporate tax rate and gets rid of the deduction for state and local income taxes (to my chagrin, I’m assuming property taxes will still be deductible), that will be a net plus for the economy. But, depending on other provisions in the legislation, it may mean that a non-trivial number of voters (especially from high-tax states) will be hit with a tax increase.

Members of Congress who want good policy can explain to those voters that the economy will grow faster. They can tell those voters that their state politicians now will be more likely to reduce state income tax burdens. I think those assertions are true, but voters looking at higher tax burdens probably won’t care about those long-run effects.

Washington D.C. has constructed a false narrative

Weekly Jobless Claims Graphic. Number of Americans applying for first-time jobless benefits.

Weekly Jobless Claims Graphic. Number of Americans applying for first-time jobless benefits.

The Labor Department said Thursday first-time jobless claims fell 5,000 for the week ending October 28 to a seasonally adjusted 229,000, lower than the median forecast.

The 4-week moving average fell significantly by 7,250 to 232,500 from the previous week’s revised average, the lowest it’s been since April 7, 1973.

The advance seasonally adjusted insured unemployment rate was 1.3% for the week ending October 21, a decline of 0.1% after the previous week was revised up by 0.1 from 1.3 to 1.4%. Lagging continuing claims were 1,884,000, a decrease of 15,000 from the previous week’s revised level and the lowest level for insured unemployment since December 29, 1973 when it was 1,805,000.

No state was triggered “on” the Extended Benefits program during the week ending October 14.

The highest insured unemployment rates in the week ending October 14 were in Puerto Rico (3.1), Alaska (2.6), New Jersey (2.0), California (1.8), Connecticut (1.8), Pennsylvania (1.7), the District of Columbia (1.5), Illinois (1.5), Massachusetts (1.5), Nevada (1.5), and the Virgin Islands (1.5).

The largest increases in initial claims for the week ending October 21 were in Puerto Rico (+1,489), New York (+1,111), Pennsylvania (+1,020), Georgia (+975), and California (+894), while the largest decreases were in Florida (-1,202), Tennessee (-539), the Virgin Islands (-399), Minnesota (-246), and Utah (-199).

The Labor Department said initial jobless claims

Sens. Amy Klobuchar, D-Minn., and Mark Warner, D-Va., conduct a news conference in the Capitol on the Honest Ads Act which aims to make online political ads more transparent on October 19, 2017. (Photo: AP)

Sens. Amy Klobuchar, D-Minn., and Mark Warner, D-Va., conduct a news conference in the Capitol on the Honest Ads Act which aims to make online political ads more transparent on October 19, 2017. (Photo: AP)

A predominantly Democratic-pushed bill was introduced last week under the guise it would protect against hostile actors such as Russia from purchasing advertisements on the Internet that sow racial division and spread fake news.

Senators Amy Klobuchar, D-Minn., Mark Warner, D-Va., and John McCain, R-Ariz., claim the Internet Ads Legislation (S. 1989) would simply require Big Tech companies like Facebook, Google, and Twitter to disclose information about who paid for political ads on their platform. Thus, in some known way, it will prevent foreign actors from buying harmful ads.

“In the wake of Russia’s attack on our election,” Senator Klobuchar said on October 19 at a press conference introducing the bill, “it’s important to strengthen our defenses.” She argued federal law has not kept up with technology, creating “loopholes” to “influence millions of American voters with impunity.”

It is currently in the Senate Committee on Rules and Administration.

However, an analysis of the so-called “Honest Ads Act” finds the bill does almost nothing to regulate foreign interference in U.S. elections. Instead, it predominantly targets Americans and would impose broad-based, restrictions and regulations on Americans’ free speech rights.

“Legislation that responds to foreign meddling by regulating the speech of Americans will not limit foreign influence in American political campaigns,” said Eric Wang, Senior Fellow at the Institute for Free Speech, which conducted the analysis. “Worse, it will impede the ability of Americans to use their own speech to call out and expose ‘fake news’ and propaganda.”

While the Institute for Free Speech says they’re “deeply disturbed” by the efforts of Russia and other hostile foreign actors, the legislation will undermine our democracy, not secure it. It will advance Vladimir Putin’s agenda, not derail it, by sowing further division and “placing considerable limits and burdens on the online political speech of Americans.”

An overwhelming 99.99% of the online political ads regulated by the bill will be purchased by Americans, while ads purchased by foreigners represent less than 0.01%. These Americans’ communications will be subject to the burdensome disclaimer and reporting requirements from the Federal Election Commission (FEC).

As a result, speakers would be susceptible to politically motivated complaints, investigations, and legal liability if they are unable to correctly discern whether and how they are regulated under these complex laws. These costs would negate many of the Internet’s benefits in enabling low-cost, grassroots campaigns to effect political and social change.

The bill achieves this by expanding the definition of “electioneering communications,” a standard traditionally limited to large-scale television and radio campaigns targeting the electorate, even if the ads are not targeted in any way at the relevant electorate. Only large, well-funded political campaigns and Big Media will have the ability to comply with the FEC regulations.

The cost to provide and maintain the information that the bill requires to be kept in what is known as a “public file” will make it financially impossible for alternative media and grassroots — from Black Lives Matter to the Tea Party — to participate. Mr. Wang notes it will also subject these groups to harassment by opponents monitoring the content, distribution, and sponsorship of their activities.

Read the Entire Institute for Free Speech Study

An analysis of the Honest Ads Act

Workers assemble built-in appliances at the Whirlpool manufacturing plant in Cleveland, Tennessee August 21, 2013. (Photo: Reuters)

Workers assemble built-in appliances at the Whirlpool manufacturing plant in Cleveland, Tennessee August 21, 2013. (Photo: Reuters)

The Institute for Supply Management (ISM) manufacturing index (PMI) remained at elevated levels in October as 16 out of 18 industries reported continued growth. The PMI came in at 58.7%, slightly lower than the 59.5% median forecast but still extraordinarily strong.

New orders, at 63.4, only fell by 1.2 and remain a strong positive in the closely-watched manufacturing report. The Production Index came in at a strong 61% and the Employment Index at 59.8%, a decline of just 0.5% from the September reading of 60.3%.

The Supplier Deliveries Index came in at 61.4%, down from the September reading of 64.4%. The Inventories Index registered at 48% and the Prices Index at 68.5 percent, the latter indicating higher raw materials prices for the 20th consecutive month.

“Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all continuing to grow in October, supplier deliveries continuing to slow (improving) and inventories contracting during the period,” said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. “Prices continue to remain under pressure. The Customers’ Inventories Index remains at low levels.”

The Institute for Supply Management (ISM) manufacturing

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