The U.S. government will now run out of cash in early March, thanks to the GOP tax law, the CBO says
Congress will have to the raise the debt ceiling in the first half of March, weeks earlier than forecast, or the federal government will run out of cash, the Congressional Budget Office said Wednesday. The CBO attributed the shortened deadline to the tax overhaul Republicans passed in late 2017, which will lower tax receipts by $10 billion to $15 billion a month starting in February. In all, the U.S. will take in $136 billion less tax revenue in 2018 under the new tax law, the nonpartisan congressional Joint Committee on Taxation estimates.
The Treasury Department has been taking emergency measures to keep the U.S. solvent since the debt limit was suspended Dec. 8, but if Congress doesn't raise the federal borrowing limit in early March, "the government would be unable to pay its obligations fully, and it would delay making payments for its activities, default on its debt obligations, or both," the CBO warned. The federal government ran a $23 billion deficit in December and a $666 billion deficit for all of 2017, the biggest shortfall since 2013.
Congress hates raising the debt ceiling but has never failed to do so, brinkmanship notwithstanding. Lawmakers also have to pass a spending bill by Feb. 8 to keep the government open, and deal with the immigration status of DREAMers before President Trump's March deadline. It's possible all these items will be rolled up into a big, must-pass package, The Washington Post notes, though House conservatives would balk "and it's unclear what political coalition will form this time to help raise the borrowing limit." Peter Weber
Polish President Andrzej Duda, a social conservative aligned with the nationalist Law and Justice (PiS) party, appears to have narrowly beat center-left Warsaw Mayor Rafal Trzaskowski in Sunday's election, Poland's National Electoral Commission said Monday. The head of the commission said the final results won't be announced until later, but that with more than 99 percent of votes tallied, Duda had a likely insurmountable 500,000-vote lead. The near-complete results, showing Duda beating Trzaskowski 51.2 percent to 48.8 percent, makes it the closest election in Poland since it shed communism in 1989.
The election was originally scheduled to take place in May, when Duda and the PiS were more popular. But despite Duda pushing to hold the vote on schedule, amid the COVID-19 pandemic, he had to back down when a junior coalition partner sided with the opposition. Turnout was a near-record 68.12 percent, the electoral commission said.
The government, state media, and Poland's powerful Catholic Church backed Duda, a social conservative, in a divisive election where the incumbent called LGBT rights an "ideology" worse than communism and tapped anti-Semitic slurs to suggest Trzaskowski would sell Poland out to Jewish interests. The PiS is expected to continue its takeover of the judicial system, putting it in increasing conflict with the European Union.
But Duda also won domestic support for generous social welfare payments, including monthly cash bonuses of $125 per child to all families and more general retirement benefits. Trzaskowski had pledged to keep the popular welfare programs while restoring Poland's democratic values. "Duda's victory shows there is a strong electorate for social conservatism and generous state handouts," writes BBC Warsaw correspondent Adam Easton. "But the closeness of the vote also suggests that many in Poland are uneasy about the government's attempts to introduce a more illiberal democracy." Peter Weber
Actress Kelly Preston died on Sunday morning after battling breast cancer for two years. She was 57.
A family representative told People that she chose to "keep her fight private," and had been "undergoing medical treatment for some time, supported by her closest family and friends." Preston was a "bright, beautiful, and loving soul who cared deeply about others and who brought life to everything she touched."
Born in Honolulu, Preston studied acting at the University of Southern California. Her first major movie role was in 1985's Mischief, and she went on to star in Twins, Jerry Maguire, and For Love of the Game. She married John Travolta in 1991, and in 2018, she appeared alongside him in what would become her final film, Gotti.
In addition to Travolta, Preston is survived by their children, Ella and Benjamin. Their son, Jett, died at age 16 in 2009. Catherine Garcia
White House Chief of Staff Mark Meadows has shared with several people his surefire way to catch suspected leakers: give them specific information and see if it later shows up in print.
Multiple officials told Axios that Meadows has been "unusually vocal" about his technique, yet his tactic has netted only one person for a minor leak. President Trump has been adamant about how important it is to him that leakers get caught, and he was clear in letting Meadows, his fourth chief of staff, know that one of his duties is hunting down the perpetrators.
Trump is especially enraged by the leak that during anti-racism and anti-police brutality protests in Washington, D.C., he was rushed into a bunker, Axios says. A person close to Meadows told Axios he is "focused on national security leaks and could care less about the palace intrigue stories."
His predecessor, Mick Mulvaney, was always trying to find leakers, a former White House official said. He requested that the White House IT department take a close look at phone records and see if any officials were calling reporters. Mulvaney already had a tense relationship with White House Counsel Pat Cipollone, Axios reports, and when he saw that Cipollone had called journalists, he raced to tell Trump about his suspicions. A former official said Trump — who had asked Cipollone to speak with the media — saw no reason to believe Cipollone was guilty of leaking, and dismissed the information.
Presidential historian Chris Whipple told Axios this is a level of paranoia "that we never even saw in the Nixon White House." To prevent leaks, staffers need to feel as though their "voices are heard" and they have "a stake in the process and there's some integrity," Whipple said. A good chief of staff "knows that the best way to prevent damaging leaks is to stop doing illegal, stupid stuff." Catherine Garcia