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Politics

Members of the clergy lay hands and pray over then-Republican presidential nominee Donald J. Trump at the New Spirit Revival Center in Cleveland Heights, Ohio. (Photo: Reuters)

Members of the clergy lay hands and pray over then-Republican presidential nominee Donald J. Trump at the New Spirit Revival Center in Cleveland Heights, Ohio. (Photo: Reuters)

President Donald J. Trump is expected to sign an executive order on Thursday that will instruct the Treasury Department not to enforce aspects to the Johnson Amendment. The order will come on the National Day of Prayer and the details are still “very fluid” laid out in several drafts.

However, it is believed to allow non-profit organizations to at least deny certain health coverage for religious reasons.

The Johnson Amendment was enacted into law in 1954 and is named after then-Sen. Lyndon B. Johnson. Faced with what could be a reelection defeat in Texas at the hands of a conservative faith-based candidate, he proposed and got through the amendment that bans churches and non-profit organizations from engaging in political activity.

If they do not comply, they lose their tax-exempt status that enables them to organize and operate.

The Committee for Constitutional Government had favored limiting the treaty making power of the President of the United States, which was a winning issue in Texas in the 1950s. The conservative group printed up material on the issue along with an endorsement of conservative Dudley Dougherty.

Johnson, who would later become President of the United States, used his unique position of power and influence for political self-preservation.

President Trump campaigned on repealing, or “destroying” the Johnson Amendment, which would give the faithful their biggest political victory since the amendment was adopted. The President received the largest share of the evangelical Christian vote ever for a Republican presidential candidate.

President Donald J. Trump is expected to

Politics

Michael Flynn and Susan Rice shake hands at a January 10 event in Washington. (Photo: Reuters)

Michael Flynn and Susan Rice shake hands at a January 10 event in Washington. (Photo: Reuters)

Susan Rice, the former national security adviser for Barack Obama, on Wednesday declined a request to testify before a Senate hearing next week. Sen. Lindsey Graham, R-S.C., had requested Rice to participate in a judiciary subcommittee hearing on Russian interference in the U.S. presidential election.

“Senator Whitehouse has informed us by letter that he did not agree to Chairman Graham’s invitation to Ambassador Rice, a significant departure from the bipartisan invitations extended to other witnesses,” Rice’s lawyer, Kathryn Ruemmler wrote in a letter (view below) responding to the request. “Under these circumstances, Ambassador Rice respectfully declines Senator Graham’s invitation to testify.”

Republicans have agreed to call all the witnesses that Democrats have requested, but they are not receiving the same courtesy in return. That, too, is unusual in that the Republicans are in the majority and hearings, while bipartisan, are run by the committee chair.

Sen. Rand Paul, R-Ky., also called on Rice to testify after reporting revealed she was behind dozens of requests to “unmask” the names of President Donald J. Trump’s transition officials caught up in surveillance. The intelligence reports in which members of the Trump transition were “unmasked” by Rice involve personal details unrelated to national security, PPD confirmed and reported in early March.

The content of the “highly detailed” reports are significant as congressional investigators probe whether the Obama Administration used the cover of the legitimate surveillance to spy on the incoming administration.

Rice has a notorious history of not telling the truth, to the media and American people both publicly and privately. She is infamous for her part in the Benghazi coverup, which consisted of knowingly lying about the Benghazi terror attack on no less than five Sunday shows during her tenure as UN ambassador. For her loyalty during a heated presidential election, she was promoted to the powerful role of national security advisor.

In March, when asked about the revelations by then-House Intelligence Committee Chairman Devin Nunes, R-Calif., which confirmed the “incidental collection” of intelligence unrelated to Russia, Rice again lied on national television by claiming she had no idea what the chairman was talking about.

“I know nothing about this. I was surprised to see reports by Chairman Nunes on this account today,” Rice said in the interview on PBS Newshour. “I’m not sure to what Chairman Nunes was referring. but whatever he was referring to was a legal, lawful incidental collection of intelligence.”

The content of the intelligence indicates, in its closing days, the Obama Administration was using the cover of legitimate surveillance on foreign targets to spy on members of the Trump transition team, and perhaps the then-president-elect himself.

“I don’t think you should be allowed to listen to Americans’ conversations without a warrant,” Sen. Paul said at the time. “They are doing it without a warrant. They are targeting a foreigner, and because they are targeting a foreigner they are gathering all of this information on Americans.”

While Republicans have dominated the calls for Rice to testify, they certainly aren’t alone in their concern over Rice’s activities and untrue statements.

“U.S. Signals Intelligence Directive (Section 18) only allows unmasking of the identity of U.S. persons when it is essential to national security. The question is why the identity of Trump aides satisfied this standard if there was no evidence of collusion,” notable liberal law Professor Jonathan Turley noted. “Nevertheless, this intent standard is difficult to violate absent a confession or incriminating statement.”

The Kentucky libertarian-leaning senator is now weighing legislation to protect against future surveillance abuses by the Executive Branch.

[pdfviewer width=”740px” height=”849px” beta=”true/false”]https://www.peoplespunditdaily.com/wp-content/uploads/2017/05/Susan-Rice-Letter-Graham-Senate-Hearing-Testimony.pdf[/pdfviewer]

Susan Rice, the former national security adviser

Politics

House Freedom Caucus Chairman Rep. Mark Meadows, R-N.C. smiles as he speaks with the media on Capitol Hill in Washington, March 23, 2017. (Photo: AP)

House Freedom Caucus Chairman Rep. Mark Meadows, R-N.C. smiles as he speaks with the media on Capitol Hill in Washington, March 23, 2017. (Photo: AP)

House Republicans are closer than ever to reaching a deal that would ensure the support needed to pass the American Health Care Act and replace ObamaCare. The developments come after the conservative House Freedom Caucus released a statement last week announcing their support for the AHCA.

(UPDATE: Republicans now say they have the votes needed to pass the AHCA and a vote is being scheduled for Thursday.)

Rep. Mark Meadows, R-N.C., the chairman of the House Freedom Caucus, decided to back the new legislation with the addition of the MacArthur Amendment, named for Tuesday Group head and moderate GOP Rep. Tom MacArthur of New Jersey.

The MacArthur amendment permits states to repeal costs that were left in place under the original AHCA. People’s Pundit Daily was first to report that the HFC was on board with the latest version of the bill, which would be reintroduced this week after the initial version of the health care reform bill failed.

Now, an amendment proposed by Rep. Bill Long, R-Miss., an early supporter of President Donald J. Trump, gives greater protections for Americans with preexisting conditions by providing more funding for high risk pools. Rep. Long and Rep. Fred Upton, R-Mich., both said earlier in the week that they would oppose the HFC-backed bill including the MacArthur Amendment.

Now, they have both announced they have changed from “No” to “Yes” votes.

“I talked to the President yesterday afternoon and told him I could not support the bill without added protections for pre-existing conditions,” Rep. Upton said. “But based on the new amendments, I am now in a place where I can support this bill.”

The latest agreement could not only bring over undecided voters, but change even more minds among those who were previously and publicly opposed to the AHCA.

“As health care reform is being driven into a ditch by misinformed polls, slanted news coverage, and painful and emotional personal stories, this fact is being lost: Millions of Americans who have been buying their own health insurance have experienced annual double-digit premium increases, and they can’t afford the weak coverage they’ve gotten under Obamacare,” said Club for Growth President David McIntosh.

There is a general sense among members that the House is more resolved to deliver for the American people and President Trump. The bill could make its way to the rules committee as early as tonight and a vote held sometime Thursday.

“The American Health Care Act is not a perfect bill, and we’ve been vocal about our criticisms, but let’s be clear: It does offer means that would make health insurance more affordable for working-class families,” Mr. McIntosh added. “It does preserve protections for people with pre-existing conditions to get coverage, and it does create a new high-risk pool structure to ensure that even the most chronically ill patients are protected. Conservatives have worked hard to get to a place where more Americans will finally get the benefit of being able to choose more coverage that won’t shatter their budgets, and it’s time to pass the bill and send it on to the Senate.”

House Republicans are closer than ever to

Politics

President Donald J. Trump shakes hands with with Palestinian leader Mahmoud Abbas during their meeting in the Oval Office of the White House, May 3, 2017, in Washington. (Photo: AP)

President Donald J. Trump shakes hands with with Palestinian leader Mahmoud Abbas during their meeting in the Oval Office of the White House, May 3, 2017, in Washington. (Photo: AP)

Palestinian President Mahmoud Abbas said at a joint press conference at the White House on Wednesday with President Donald Trump he has “hope” for peace. Much to the chagrin of his critics, it isn’t the first time the Palestinian leader has praised the new President.

Abbas recently declared that a “historic” peace deal to end the decades-old conflict is possible under Trump’s leadership. While remaining a staunch supporter of Israel and personal friend to Prime Minister Benjamin Netanyahu, the President received high marks for calling on the closest U.S. ally in the Middle East to hold further settlements in the West Bank.

President Trump said last week he sees “no reason” why there can’t be peace between Israel and the Palestinians. “None whatsoever.”

[brid video=”137250″ player=”2077″ title=”Donald Trump Holds Joint Press Conference With Mahmoud Abbas”]

Palestinian President Mahmoud Abbas said at a

Policy

Economist Arthur Laffer is interviewed at the California Republican Party convention in Anaheim, Calif., Friday, Oct. 4, 2013. (Photo: AP)

Economist Arthur Laffer is interviewed at the California Republican Party convention in Anaheim, Calif., Friday, Oct. 4, 2013. (Photo: AP)

Seven years ago, I wrote about the “Butterfield Effect,” which is a term used to mock clueless journalists.

A former reporter for the New York Times, Fox Butterfield, became a bit of a laughingstock in the 1990s for publishing a series of articles addressing the supposed quandary of how crime rates could be falling during periods when prison populations were expanding. A number of critics sarcastically explained that crimes rates were falling because bad guys were behind bars and invented the term “Butterfield Effect” to describe the failure of leftists to put 2 + 2 together.

Journalists are especially susceptible to silly statements when writing about the real-world impact of tax policy.

They don’t realize (or prefer not to acknowledge) that changes in tax rates alter incentives to engage in productive behavior, and this leads to changes in taxable income. Which leads to changes in tax revenue, a relationship known as the Laffer Curve.

Here are some remarkable examples of the Butterfield Effect.

  • A newspaper article that was so blind to the Laffer Curve that it actually included a passage saying, “receipts are falling dramatically short of targets, even though taxes have increased.”
  • Another article was entitled, “Few Places to Hide as Taxes Trend Higher Worldwide,” because the reporter apparently was clueless that tax havens were attacked precisely so governments could raise tax burdens.
  • In another example of laughable Laffer Curve ignorance, the Washington Post had a story about tax revenues dropping in Detroit “despite some of the highest tax rates in the state.”
  • Likewise, another news report had a surprised tone when reporting on the fully predictable news that rich people reported more taxable income when their tax rates were lower.

And now we can add to the collection.

Here are some excerpts from a report by a Connecticut TV station.

Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years. …wealthy residents are leaving, and the ones that are staying are making less, or are not taking their profits from the stock market until they see what happens in Washington. …It now looks like expected revenue from the final Income filing will be a whopping $450 million less than had been expected.

Reviewing the first sentence, it would be more accurate to replace “despite” with “because.”

Indeed, the story basically admits that the tax increases have backfired because some rich people are fleeing the state, while others have simply decided to earn and/or report less income.

The question is whether politicians are willing to learn any lessons so they can reverse the state’s disastrous economic decline.

But don’t hold your breath. We have an overseas example of the Laffer Curve, and one of the main lessons is that politicians are willing to sacrifice just about everything in the pursuit of power.

Here are some passages from a story in the U.K.-based Times.

The SNP is expected to fight next month’s general election on a commitment to reintroduce a 50p top rate of tax… The rate at present is 45p on any earnings over £150,000. …civil service analysis suggested that introducing a 50p top rate of tax in Scotland could cost the government up to £30 million a year, as the biggest earners could seek to avoid paying the levy by moving their money south of the border.

If you read the full report, you’ll notice that the head of the Scottish National Party previously had decided not to impose the higher tax rate because revenues would fall (just as receipts dropped in the U.K.when the 50 percent rate was imposed).

But now that there’s an election, she’s decided to resurrect that awful policy, presumably because a sufficient number of Scottish voters are motivated by hate and envy.

This kind of self-destructive behavior (by both politicians and voters) is one of the reasons why I’m not overly optimistic about the future of Scotland if it becomes an independent nation.

P.S. I’m not quite as pessimistic about the future of tax policy in the United States. The success of the Reagan tax cuts is a very powerful example and American voters still have a bit of a libertarian streak. I’m not expecting big tax cuts, to be sure, but at least we’re fighting in the United States over how to cut taxes rather than how to raise them.

Journalists are especially susceptible to silly statements

Economy

Workers box jars of pasta sauce at a plant run by Chelten House Products in Bridgeport, New Jersey July 27, 2015. (Photo: Reuters)

Workers box jars of pasta sauce at a plant run by Chelten House Products in Bridgeport, New Jersey July 27, 2015. (Photo: Reuters)

The ADP National Employment Report showed the U.S. private sector added 177,000 jobs in April, topping the median forecast of 170,000. The slowdown in April was largely due to larger-than-average growth in winter construction pulling back and retail jobs continuing to cool.

“In April we saw a moderate slowdown from the strong pace of hiring in the first quarter,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Despite a dip in job creation, the growth is more than strong enough to accommodate the growing population as the labor market nears full employment. Looking across company sizes, midsized businesses showed persistent growth for the past six months.”

Construction dipped in April by 2,000 after very strong gains in the previous two months, though the goods-producing sector overall added. 12,000. That includes 3,000 in Natural Resources & Mining and another 11,000 in Manufacturing.

“Job growth slowed in April due to a pullback in construction and retail jobs,” Mark Zandi, chief economist of Moody’s Analytics said. “The softness in construction is continued payback from outsized growth during the mild winter. Brick-and-mortar retailers cut jobs in response to withering competition from online merchants.”

The ADP National Employment Report has run contrary to the Labor Department report conducted by the Bureau of Labor Statistics. In March, private sector payrolls expanded in the report by 263,000, nearly three times the BLS jobs report showing 98,000.

Still, despite the slowdown in March, job creation during the first 100 days of the new administration easily beat the same period of the prior three administration. The U.S. economy lost 1.5 million jobs in the first 100 days of the previous administration, which came in as the Great Recession was ending, and the Bush administration only saw 45,000 jobs.

In the 1990s, under the first 100 days of Bill Clinton, the U.S. economy tacked on 194,000 jobs, while it added 317,000 in the first 100 days of the Trump Administration.

Small business that employ between 1 and 49 employees added a solid percentage of 61,000 jobs, while mid-size (50-499) added 78,000. Large businesses with 500 employees ore more added 38,000, boding well for wages.

The ADP National Employment Report showed the

World

North Korean leader Kim Jong Un, center watches a firing contest of the KPA artillery units at undisclosed location in this photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on January 5, 2016. (Photo: Reuters)

North Korean leader Kim Jong Un, center watches a firing contest of the KPA artillery units at undisclosed location in this photo released by North Korea’s Korean Central News Agency (KCNA) in Pyongyang on January 5, 2016. (Photo: Reuters)

North Korea confirmed Wednesday that it detained an American citizen at an airport last month for alleged acts of hostility aimed at overthrowing the country. The leftwing communist regime is currently holding at least two other Americans, Kim Dong Chul and Otto Warmbier.

The state-run Korean Central News Agency claimed officials “intercepted” a 58-year-old accounting professor identified as Kim Sang Dok, also known as Tony Kim, at Pyongyang International Airport on April 22. The report said authorities were detaining Kim while they conducted a so-called thorough investigation into his alleged crime.

People’s Pundit Daily has confirmed Kim was invited to Pyongyang University of Science and Technology to teach. The school’s chancellor and the Swedish Embassy in Pyongyang had previously announced Kim’s arrest, but didn’t provide a reason for his detention.

The latest detention comes amid rising tensions between North Korea and the U.S. related to the leftwing regimes nuclear weapons program. On Tuesday, the U.S. military’s THAAD missile defense system reached initial operational capacity in South Korea, People’s Pundit Daily reported. Officials did caution that it would not be fully operational for several months.

Meanwhile, the U.S. State Department had not yet commented on Kim’s detention “due to privacy considerations.” Worth noting, Pyongyang’s announcement also comes one day after Central Intelligence Agency (CIA) Director Mike Pompeo landed in Seoul.

North Korea confirmed that it detained an

World

THAAD interceptors and a missile are tested in 2013. (Photo: Courtesy of U.S. Department of Defense)

THAAD interceptors and a missile are tested in 2013. (Photo: Courtesy of U.S. Department of Defense)

The U.S. military’s THAAD missile defense system has reached initial operational capacity in South Korea, U.S. officials told People’s Pundit Daily. Officials did caution that it would not be fully operational for several months.

Still, THAAD represents a major aspect to the Trump Administration’s new policy direction to deal with the increased nuclear threat coming from North Korea. Its operation comes as Central Intelligence Director (CIA) Mike Pompeo lands in South Korea for talks and after North Korea a joint training drill for two supersonic B-1B Lancer bombers put the peninsula on “the brink of a nuclear war.”

South Korean Defense Ministry spokesman Moon Sang-gyun told reporters at a briefing in Seoul the drill was conducted to deter further provocations by the North, who conducted a failed missile test over the weekend. Pyongyang ignored warnings by their only friend in the region–China–against conducting another test.

But while China isn’t happy with the North, they have also repeatedly expressed opposition to the THAAD system, largely because they fear its powerful radar could reach inside Chinese territory.

Foreign Ministry spokesman Geng Shuang again denounced THAAD on Tuesday.

“We will resolutely take necessary measures to defend our interests,” he said, though he refused to elaborate. “China has always believed that using peaceful means via dialogue and consultation to resolve the peninsula’s nuclear issue is the only realistic, feasible means to achieve denuclearization of the peninsula and maintain peace and stability there, and is the only correct choice.”

President Trump has reportedly squeezed more cooperation out of Beijing than any of his previous successors, promising a more favorable trade deal in exchange for putting more pressure on North Korea.

The U.S. military's THAAD missile defense system

Politics

House Speaker Paul Ryan, Ro-Wis., speaks about tax reform on Capitol Hill in Washington, D.C. (Photo: Reuters)

House Speaker Paul Ryan, Ro-Wis., speaks about tax reform on Capitol Hill in Washington, D.C. (Photo: Reuters)

Republicans control the House, the Senate, and the White House. In theory, that means a long-overdue opportunity to eliminate wasteful programs and cut pork-barrel spending.

In reality, it mostly means business as usual.

Politicians in Washington just reached a deal to fund the government for the rest of the current fiscal year. As reported by the Washington Post, it’s not exactly a victory for libertarians or small-government conservatives.

Democrats are surprised by just how many concessions they extracted in the trillion-dollar deal, considering that Republicans have unified control of government. …Non-defense domestic spending will go up, despite the Trump team’s insistence he wouldn’t let that happen. The president called for $18 billion in cuts. Instead, he’s going to sign a budget with lots of sweeteners that grow the size of government. …the NIH will get a $2 billion boost — on top of the huge increase it got last year. …Planned Parenthood…will continue to receive funding at current levels. …after the deal was reached…, Chuck Schumer and Nancy Pelosi quickly put out celebratory statements. …“Overall, the compromise resembles more of an Obama administration-era budget than a Trump one,” Bloomberg reports. …Reuters: “While Republicans control the House, Senate and White House, Democrats scored … significant victories in the deal.” …Vox: “Conservatives got almost nothing they wanted.”

I guess you could call this a triumph of “public choice” over campaign rhetoric. Politicians did what’s in the best interest of politicians rather than what would be best for the nation.

I’m disappointed, as you might expect. But as I say in this interview, there are far more important battles. I’ll gladly accept a bit of pork and profligacy in the 2017 budget if that clears the decks for much-needed repeal of ObamaCare and long-overdue reform of the tax code.

[brid video=”136909″ player=”2077″ title=”Mitchell Republicans Have to Deliver on ObamaCare Tax Reform”]

But here’s the catch. I don’t expect that these reforms will actually happen. Yes, the deck has been cleared, but I don’t think Republicans will take advantage of the opportunity.

The fundamental problem, which I pointed out in a different interview, is that there’s not a governing majority for smaller government. And that has some very grim implications.

[brid video=”136910″ player=”2077″ title=”Mitchell A Majority of DC Republicans Aren’t for Smaller Government”]

But here’s the catch. I don’t expect that these reforms will actually happen. Yes, the deck has been cleared, but I don’t think Republicans will take advantage of the opportunity.

The fundamental problem, which I pointed out in a different interview, is that there’s not a governing majority for smaller government. And that has some very grim implications.

Even more depressing, I point out that only Trump has the power to turn things around. Yet I see very little evidence that he, a) believes in smaller government, or b) is willing to expend any political capital to achieve smaller government.

To make matters worse, Republicans have convinced themselves that they lose the spin battle whenever there is a shutdown or some other high-stakes fiscal fight with Democrats.

For what it’s worth, I’m trying to remind Republicans that it is in their long-run political interests to do the right thing (as Reagan demonstrated). That’s why, in the first interview, I said they need to gut Obamacare and lower taxes if they want to do well in the 2018 and 2020 elections.

But don’t hold your breath waiting for the “stupid party” to behave intelligently.

Republicans control the House, the Senate, and

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