President Trump makes his final pitch for the Republican tax bill on Wednesday, with Senate and House Republicans aiming to have a final bill ready by Friday. But if Trump plans on touting a tax bill focused on the middle class, as he has been all year, the Republican plan isn't that. In all, The Washington Post says, the bill provides $1 trillion in tax cuts for businesses over 10 years, $100 billion in savings for estates worth $11 million or more, and $300 billion in temporary cuts for all households combined.
If Trump was serious about targeting the middle class and not the rich, he was ill-served by Republicans in Congress, the Post reports, though based on more than 40 public statements and interviews with top White House and congressional officials, "Trump and his top advisers have continuously prioritized corporate cuts." For many reasons — ideological, lobbying, and because Senate Republicans could lose only two votes — Republicans favored corporate tax cuts, too. There were extenuating circumstances, too, as when House Republicans planned to include a $300 "family flexibility credit," the Post reports:
But the night before they would release the bill, when top tax writer Kevin Brady (R-Texas) was trying to sort out the tax changes and monitor the performance of his Houston Astros in the final game of the World Series, they made a major change to this provision, according to a person briefed on the changes. ... Corporations were concerned their tax cut would last only eight years, a limitation that was necessary to keep the bill under the $1.5 trillion limit. Brady agreed. So in a last-minute decision, Republicans cut the duration of the family tax credit in half — ending it after only five years — to make the corporate tax cut permanent. In effect, Republicans handed $200 billion from families to corporations. [The Washington Post]
You can read more about how the stated middle-class goal became the GOP reality at The Washington Post. Peter Weber
Pacific Gas & Electric reached a settlement with 14 local California governments on Tuesday to pay $1 billion in damages for a series of wildfires that killed dozens of people and destroyed thousands of homes. PG&E, which declared bankruptcy in January in anticipation of tens of billions in wildfire-related damages, said Tuesday's settlement is "an important first step toward an orderly, fair, and expeditious resolution of wildfire claims." Baron & Budd, the Texas law firm representing the 14 California communities, said the settlement will cover "taxpayer losses."
"This money will help local government and taxpayers rebuild their communities after several years of devastating wildfires," Baron & Budd said in a statement. "The cities and counties will be in a better position to help their citizens rebuild and move forward." The town of Paradise, mostly destroyed in 2018's Camp Fire, will get $270 million, and other money will cover damages from a 2015 fire in Butte County and 2017 fires in Northern California wine country. PG&E's downed power lines have been linked to several wildfires in the state. Peter Weber
When you're the only student in the only school on a tiny island, your graduation draws a crowd.
Gwen Lynch lives with her family on Cuttyhunk, a Massachusetts island. On Monday, she finished the eighth grade and graduated from Cuttyhunk Elementary School, with about 100 people coming out to celebrate the milestone. One face stood out from the crowd: the commencement speaker, actress and comedian Jenny Slate.
Slate's boyfriend runs a writing workshop on the island, and she agreed to deliver a special message to Lynch. Before writing her speech, she chatted with the teenager, and learned all about her hopes, dreams, and life on the island. "I started to realize that you, who go to school by yourself on an island that is basically empty half the year, are still way cooler and more popular than I was as a teenager, who lived in a town and went to a school with lots of other people," Slate joked.
Lynch, who will attend a New Hampshire boarding school in the fall, wants to become an engineer, and Slate told her she was impressed by her moxie. "I hope you keep saying what you want to achieve and that you want to put your very own name on it," she said. "There is no shame in wanting to be recognized for your good work. Your no-frills confidence is pure and powerful." Catherine Garcia
During his May trip to Baghdad, Secretary of State Mike Pompeo shared a message with Iraqi leaders that he wanted passed on to Iran: If any attacks by the country or its proxies killed any U.S. troops, there would be military action, U.S. officials told The Washington Post.
Pompeo has issued a few private warnings, the officials said. Tensions are mounting between the U.S. and Iran, with the U.S. accusing Iran of attacking oil tankers in the Middle East and Iran, which denies attacking the tankers, saying it will soon violate the 2015 nuclear deal by having too much low-enriched uranium in its stockpile. On Monday, the Pentagon announced it will send 1,000 additional troops to the Middle East, and while at U.S. Central Command headquarters in Tampa on Tuesday, Pompeo said President Trump "does not want war," and the U.S. is in the region to "deter aggression."
U.S. officials told the Post there are concerns that because there hasn't been a confirmed Defense Secretary in several months, the hawks advising Trump — including Pompeo and National Security Adviser John Bolton — are pushing for the military to do more than its mission in the region, which is to eliminate the remnants of the Islamic State. Bolton, the officials added, is careful about what information gets to Trump, and has reduced the number of meetings where top officials discuss the Iran policy. Catherine Garcia
President Trump made some pretty big promises Tuesday night during a rally in Orlando.
The event marked the official launch of his re-election campaign, and during his nearly 90-minute speech, Trump vowed that if he gets a second term, "we will come up with the cures to many, many problems, to many, many diseases, including cancer. We will eradicate AIDS in America, and we're very close."
Trump made several false claims, including that he passed the largest tax cut in history — it was the eighth largest, and smaller than two of former President Barack Obama's tax cuts, The Washington Post has noted — and that the unemployment rate has never been lower (it was 3.6 percent in May, but as low as 2.5 percent in 1953).
Trump railed against socialism, said Democrats are "more unhinged" than they ever have been, and in a moment straight out of 2016, he criticized Hillary Clinton, which triggered the crowd to start chanting, "Lock her up! Lock her up!" In one sign that Trump might be ready to leave the past behind him, he asked the audience to help him decide between sticking with "Make America Great Again" as his slogan or switching to "Keep America Great." By the amount of cheers, The Guardian reports, it was apparent the crowd preferred KAG to MAGA. Catherine Garcia