With Democrats winning a majority of seats in the United States’ House of Representatives and Republicans retaining a majority in the Senate, a Republican-controlled Congress with an approval rating of just 21 percent entering the 2018 Midterm Elections will be split when new members of Congress are sworn in on January 3. Here are some of the bipartisan issues a split Congress could address, in order of likelihood.
It would be negligent not to acknowledge that Democrats now have the votes to impeach President Donald Trump. House Democrats already introduced five articles of impeachment in November 2017 and could again. Now that Trump has forced the resignation of Attorney General Jeff Sessions and replaced him with Matthew Whitaker, the man who on CNN floated the very idea of replacing Sessions with a temporary Attorney General who could cut funding to Robert Mueller’s investigation into the Trump campaign’s potential involvement with Russian meddling in the 2016 Presidential Election.
Sessions wasn’t well-liked by Democrats, but he did recuse himself from the Mueller investigation to the chagrin of Trump. A day after the 2018 Midterm Election, as to not adversely affect election results, Trump convinced Sessions to resign, but instead of promoting Deputy Attorney General Rod Rosenstein, to whom Mueller currently reports, Trump installed Whitaker, a Trump loyalist.
If Whitaker acts on the idea he floated on CNN, expect House Democrats to respond by filing articles of impeachment, eventually voting on those articles, and forcing Senate Republicans to decide between protecting their own political careers or that of their party’s President. Removing him would take two-thirds of all Senators.
FiveThirtyEight’s Nathaniel Rakich writes that Democrats would need to retain Doug Jones’s seat in Alabama, defeat both Susan Collins in Maine and Cory Gardner in Colorado, and pick up a seat in a red state. The best bets would be in Arizona, where Jon Kyl is not seeking reelection, and in Iowa, where Democrats flipped two House districts and came within 40,025 votes of installing a Democratic Governor. Of course, if Democrats win the Presidential Election, they’d need to win one fewer Senate seat for a majority, as the Vice President would break a tie.
The issue upon which both Congressional Democrats and Republicans can most likely agree is the nation’s need of vast infrastructure updates. U.S. infrastructure was given a D+ grade by the American Society of Structural Engineers in its latest Infrastructure Report Card, and despite efforts to address this, America hasn’t come close to making up for the estimated $2 trillion in needs over 10 years.
New House Committee Leader for Transportation and Infrastructure, Peter DeFazio, appears to be willing to work with the President to rebuild America’s roads, bridges, and subways, and perhaps expand access to high-speed internet. A blueprint for doing so has already been provided by Senate Democrats, requiring an estimated investment of $1.6 trillion.
DeFazio has suggested raising the gas tax in line with inflation to pay for some of the updates. With gas prices at their lowest in six months despite sanctions limiting Iran’s oil exports, addressing America’s crumbling infrastructure could be a means to comfortably introduce new members of Congress to Washington politics, bridge the widening gap between the parties, and deliver a win for both parties, their constituents, and the President, who promised “the biggest and boldest infrastructure investment in American history.” If Democrats and Republicans are actually going to do what they said they will after the elections and work together, infrastructure investment is probably the best place to start.
One issue for which House Democrats could get enough support from Senate Republicans is a middle class tax cut that was mostly absent from the corporate tax cut Congressional Republicans passed. At the very least, House Democrats could use their newly won majority in the underchamber of Congress to force Republicans to vote on a middle class tax cut and show where Republicans really stand and whom they really represent when it comes to taxes.
Regardless, there are probably five votes Democrats could get from Senate Republicans on a middle class tax cut if it doesn’t also include an increase in taxes for the richest Americans and corporations. Any legislation passed by House Democrats will almost certainly include a tax hike on the richest Americans and corporations, however, so the Senate will have to draft legislation agreeable to Senate Republicans and appeasing House Democrats.
Ending federal prohibition of marijuana does not require Congress, but it does require a U.S. Attorney General willing to initiate the process of executive reclassification. With Trump convincing Sessions to resign, the best opportunity for him to boost his approval ratings going into the 2020 Presidential Election might be by appointing an Attorney General willing to initiate this process so Trump can take all the credit for being the President who legalized weed...or at least tried.
Trump doesn’t seem to be considering his Attorney General appointment as an opportunity to improve his approval ratings via cannabis reform. Neither Chris Christie and Pam Bondi have expressed interest in ending marijuana prohibition, but Alexander Acosta as Labor Secretary urged employers to take a “step back” on drug testing so cannabis users could fill the many open employment opportunities.
Still, executive reclassification requires the approval of the Food and Drug Administration (FDA), which consults the Drug Enforcement Administration (DEA). This is where Trump’s self-proclaimed business acumen might have to reveal itself, because the DEA affirmed its hard stance against reclassifying cannabis in 2016, it seized $20.5 million dollars in assets through its Domestic Cannabis Eradication/Suppression Program in 2017. But it did loosen restrictions on cannabis with regards to research.
There was yet another mass shooting resulting in the deaths of 12 people in Thousand Oaks, California, this time by a war veteran whose very actions seemed motivated by Congress’s lack of action in response to gun violence in America. In a Facebook post prior to the attack, the mass shooter wrote “"I hope people call me insane... (laughing emojis).. wouldn't that just be a big ball of irony? Yeah.. I'm insane, but the only thing you people do after these shootings is 'hopes and prayers'.. or 'keep you in my thoughts'... every time... and wonder why these keep happening.”
Democrats elected gun control candidates throughout the nation, and with a majority in the House, can finally pass gun control legislation that would force a vote on gun control legislation by Republicans in the Senate, 20 of whom are up for reelection in 2020, and perhaps more pending results of runoffs and recounts.
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Despite the Land of 10,000 Lakes losing the second-winningest NBA franchise to a place with roughly as many lakes as Lakers in uniform, Minnesota has managed to become a mini-Mecca of American sports entertainment. In the Twin Cities of Minneapolis and St. Paul, Minn., you can see the Minnesota Twins and St. Paul Saints play professional baseball, watch one of the best women’s professional basketball teams, see one of the best American football teams and catch the Loons playing Major League Soccer—all in a three-day weekend. The same cannot be said for a much larger and more diverse market in Miami, and their respective histories of stadium funding and construction might have everything to do with it.
In April of 2018, Minnesota had four professional sports teams in action for the first time ever, two of which were in the playoffs. The “Minneapolis Miracle” at U.S. Bank Stadium on Jan. 14 served as a coming out party for Minnesota sports on the national stage. Relative to the “big four” sports leagues, the Minnesota Lynx quietly collected Women’s National Basketball Association (WNBA) championships in four of the past eight years. Despite it being the top league of its kind in the world, a dynastic WNBA team hardly nudged the needle gauging national interest.
However, adding a team from MLS, widely considered the fifth-best soccer league in the world, was such a good idea Vikings owners Mark and Zygi Wilf got written permission to pursue the opportunity when seeking approval for construction of U.S. Bank Stadium. The bill passed by the Minnesota Legislature in May 2012 included a clause allowing the Wilf’s to pursue an MLS franchise to play in their new stadium for up to five years. That’s not how it went down, but the Minnesota United Football Club (MNUFC) group fast-tracked its way to an MLS franchise regardless, while a larger, more soccer-friendly population in Miami is still waiting.
The addition of MNUFC makes the Twin Cities one of just 10 markets with franchises in all five of the major, American, professional sports leagues—the National Football League (NFL), National Basketball Association (NBA), National Hockey League (NHL), Major League Baseball (MLB) and MLS. Minneapolis-St. Paul is just the sixth market featuring teams in each of the five major, American, professional sports leagues while also supporting a Women’s National Basketball Association (WNBA) franchise.
You might be wondering how the roughly 3.5 million residents of the Minneapolis-St. Paul area and the modest reach of its 15th-ranked media market manage to support seven professional sports teams including the independent league St. Paul Saints baseball team. But what makes it possible now has a lot to do with what’s happened in the past.
When the roof of the Metrodome collapsed for a fifth time in 2010, its deflation left Minnesotans deflated. The amount of air Minnesotans collectively sighed over the thought of paying for another stadium would have raised the roof of the Metrodome. The residents and visitors of Hennepin County had just contributed $350 million, or 63 percent of the funding for Target Field’s construction through a county-wide, 0.15-percent sales tax hike. The timing couldn’t have been worse for the Wilfs, but at least the Twins didn’t give Twin Cities’ residents a reason to resist stadium construction like Marlins owner Jeffrey Loria did in Miami.
Miami, a city with almost twice the population as the Twin Cities and a diverse population prime for MLS action, has a worse media market ranking than Minneapolis-St. Paul (16th-ranked). But the proximity of sports media competitors in Tampa-St. Petersburg (13th-ranked) and Orlando (18th-ranked) isn’t the reason for the struggles of David Beckham’s MLS investment group in Miami.
Like the Metrodome, the Marlins former home was an all-purpose stadium not meant for baseball. And like Target Field, Marlins Park had support of Miamians—as long as they didn’t have to pay for it. Despite both of these teams being guilty of fielding uncompetitive rosters for years, they both had two, relatively recent World Series Championships to ease the pain somewhat. The Marlins’ 2003 championship spurred the City of Miami to propose the construction of a baseball-only stadium next to the Miami Orange Bowl.
Miami-Dade County was more forthcoming with funding than the City of Miami, proposing a $420-plus million stadium at the Orange Bowl location. But the State of Florida and City of Miami resisted, sparking rumors of the Marlins relocating just as Loria’s last team, the Montreal Expos, did prior to Loria receiving (he didn’t put a dime down) ownership of the Marlins from then-commissioner Bud Selig to replace Loria’s failed business. This didn’t help soothe the anxiety of fans who saw their championship roster disappear over the course of two very bad seasons.
On Feb. 21, 2008, MLB COO Bob DuPuy threatened that if a decision wasn’t made with regards to funding a stadium for the Marlins that very night, it would be “the death knell for baseball in Miami.” Hours later funding was approved by the City of Miami and the County Commissioners for a $525 million home for the Marlins. The plan called for Miami-Dade County residents to flip just $50 million of the bill, with $297 million coming from tourist taxes. The City of Miami would incur $127 million in stadium-related costs.
The finalized deal, however, was for a $634-million stadium, 80 percent of which would be publicly funded. With interest compounding over 40 years, the actual cost to the county to repay the $409 million in bonds would be roughly $2.4 billion. The combined expenses incurred by the city and county for the construction of Marlins Park total $2.61 billion through 2049. Loria just sold the team for $1.2 billion, claiming a loss of $141 million, which would not only allow him to avoid paying the five percent of the sale's proceeds to the public that was agreed upon, but entitle him to the $50 million held in escrow for the city and county.
Like Loria’s Expos, the Twins were an alleged target for contraction for low revenue generation and the inability to get a new stadium built. But Govornor Jesse Ventura and the Minnesota Legislature did manage to agree on a ballpark funding proposal, and the Twins played the 2003 season and six more in the Metrodome. Target Field construction didn’t begin until May 2007, but Hennepin County taxpayers hardly noticed the 0.15 sales tax increase and probably thought it was worth it upon seeing the completed structure. It showed in the sixth-ranked attendance during Target Field’s inaugural season.
The same cannot be said for Marlins Park, where despite its shiny new digs and dancing marlin statue, the Marlins christened their new ballpark by finishing 18th in attendance.
When it comes to the Wilfs building the best stadium experience in sports, they have the Pohlads and Target Field to thank. Had the Twins saddled the county with billion-dollar debts or built a lemon, U.S. Bank Stadium might have been built for the Las Vegas Vikings. The environment the Pohlads left the Wilfs was as squeaky clean and inviting as the windows that had to be replaced on U.S. Bank Stadium because birds kept flying into them.
The Wilfs didn’t build U.S. Bank Stadium quite as clean and easy as the Pohlads did Target Field. Through infrastructure expenditures and other stadium-related spending, both the state and city have exceeded their respective $348-million and $150-million contribution limits that are called for in the state law governing the stadium deal. Also, Minnesota House Republicans want to spend $26 million in the stadium’s reserve fund, reserved in case the state is unable to pay its share of the stadium debt, to build veterans homes. But the Wilfs didn’t leave a wake like Loria’s.
While Beckham and his investors must now convince Miami voters to let them build a billion-dollar MLS soccer and commercial complex before the midterm elections despite it costing taxpayers nothing, MNUFC will move into its new, privately-funded stadium in St. Paul next season, it's third in MLS. Again, Loria’s wake has altered all boats in its path, regardless of the boat’s size or the size of its passengers’ pocketbooks.
MNUFC’s Allianz Field cost just $190 million, so not only did the MNUFC ownership group bring MLS to Minnesota swiftly but thriftly. The MNUFC group didn’t even have to put out any golf cart fires.
In December 2013, Miami-Dade County commissioners voted unanimously to allow Mayor Carlos A. Giménez to negotiate with David Beckham’s group of investors looking to bring MLS to Miami. Almost five years later, the hopes and dreams of David Beckham’s Miami MLS investment group are in the hands of understandably skeptical Miami voters, and they have to spend $35 million to clean up toxic soil and another $25 million to the city for park and walkway projects.
People don't easily forget when they've been swindled by billionaire owners of sports teams to pay for the construction of stadiums. Just ask anyone living in Cincinnati. They were swindled twice, and Miamians aren't going to let that happen. Beckham's group might be promising a privately-funded stadium, but everything, from taxes to fast food, gets more expensive when there's a new stadium to fill.
This was originally published at Grandstand Central, where we cover sports from unique angles.
A great American tradition born of the struggle to fill great American ballparks with great American baseball fans is dying. The ballpark giveaway is giving way to greed.
The Ohio Supreme Court heard arguments last Wednesday in a dispute over taxes on promotional items purchased by the Cincinnati Reds and offered to fans through promotional ticket packages. Ohio state law exempts companies from paying taxes on items they buy and resell, but the issue is whether promotional items like bobbleheads are being sold as part of a ticket package or given away in an effort to increase ticket sales. Simply put, if the team gives away bobbleheads, they pay tax. If they sell them with the ticket, they do not.
Regardless of whether the Reds’ techniques are legal or not, the attempt to avoid paying $88,000 in state taxes is pretty insensitive given the Reds’ recent history, both on and off the field. The construction of Great American Ball Park cost Hamilton County taxpayers $349 million and deprived federal taxpayers of $142 million in revenue — the third-most costly of any Major League Baseball stadium according to a Brookings Institute study. The Reds share responsibility with the Cincinnati Bengals for burying Ohio’s Hamilton County in debt, resulting in cuts to social services, including the sale of a hospital, and forcing Hamilton County Commissioners to refinance $376 million of stadium bond debt in 2016. Property owners in Hamilton County were promised 30 percent of the revenue raised by the half-cent increase to the sales tax in the form of reduced tax bills, but the county has rarely had the money to pay the stadium debt and offer the full tax rollback.
Meanwhile, the Reds could go from increasing attendance by giving away items for which they once paid tax to profiting from tax-free items while also increasing attendance. And they’re not the only ones.
The Minnesota Twins are also offering more of these promotional ticket packages and fewer giveaways after winning a similar case back in 1998. Like Ohio, “goods and services purchased solely to resell, lease or rent in the regular course of business” are tax exempt in Minnesota. In fact, most states allow businesses to purchase items tax-free as long as those items are to be resold. So this is only the beginning, and already, great American ballparks are turning giveaways into takeaways, likely turning a profit on what was a cheap means of advertising and now is a cheaper means of advertising.
According to a sales representative at Associated Premium Corporation, a preferred vendor of MLB promotional items, a seven-inch bobblehead purchased in bulk exceeding 10,000 units could cost a ballclub between $3 and $5. Markups on promotional ticket packages are considerably higher than that, and in some ballparks, they vary by seat location.
Senior manager of group sales for the Twins, Phil McMullen, informed me that the prices for their promotional ticket packages are based on the price of their group tickets, which explains why the markup for the promotional item appears to vary by seat location when compared to buying a single game ticket alone. The same cannot be said for the Reds.
The June 19 promotional bobblehead in Cincinnati is available at three different price points in three different sections of the ballpark. The promotional ticket package is $25 per “View Level” ticket, $55 for a seat in the “Field Box” section and $80 for an “Infield Box” seat. The price of a ticket to the same game in the “View Level” section is $17. A field box seat is $41, and infield box seats range from $65 to $68. So the same bobblehead costs $8 when purchased with a “View Level” ticket, $14 when purchased with a “Field Box” ticket and between $12 and $15 when purchased with an “Infield Box” ticket. Assuming the “Field Box” price is based on one ticket price, Cincinnati fans purchasing the promotional ticket package will pay three different prices for the exact same product in the same store.
“It’s consistently very close…the difference is negligible,” Reds’ group sales representative Kristen Meyers said of the varying costs for the promotional items. She attempted to explain the difference in price to accommodate fans buying tickets with exact change, but the Twins’ ticket prices are also full-dollar amounts and their cost of the promotional items don’t vary by seat location.
Minimal research revealed that the Twins and Reds aren’t the only Major League Baseball teams selling promotional items at varying prices depending on seat location. On June 23, the Colorado Rockies are selling a promotional ticket package available in five different sections of the ballpark that includes a University of Nebraska hat. Based on the Rockies’ group ticket prices, fans will pay either $8, $11 or $12 for the hat, depending on their seat location. In Milwaukee on July 7, fans will pay four different prices for a bobblehead depending on their seat location.
If MLB teams are going to sell promotional items on a sliding scale to make those items more accessible to lower-income fans, that should be advertised and owned. But forcing fans who pay more for their tickets to also pay more for a promotional item without their knowledge is theft. While buying a promotional ticket package might be preferable to standing in line for hours with no guarantee of scoring a giveaway item, don’t think for a moment you’re taking advantage of a business desperate to sell tickets. Quite the opposite is true, and the degree to which they fleece you varies as much as the prices of the promotional items they claim to sell in order to avoid paying state tax. But if you must have a promotional item offered with one of these promotional ticket packages, you’re likely best off buying the cheapest seats.
Foul Play-by-Play investigates foul play in sports on and off the court, field, pitch and ice every week. Here's play-by-play on foul play in sports for the week ending June 17.
The Ohio Supreme Court heard arguments Wednesday morning in a dispute over taxes on promotional items purchased by the Cincinnati Reds and offered to fans through promotional ticket packages. Ohio state law exempts companies from paying taxes on items they buy and resell, but the issue is whether promotional items like bobbleheads are being sold as part of a ticket package or given away in an effort to increase ticket sales, which would require the Reds to pay taxes on the items.
Attorneys for the Reds argue they don't have to pay tax because they resell the promotional items as part of the ticket package, but the state tax commissioner says the promotional items should be taxed because the Reds bought the items as giveaways and aren't selling them with the tickets.
Regardless of whether the Reds’ techniques are legal or not, the attempt to avoid paying $88,000 in state taxes is pretty insensitive given the Reds’ recent history. The construction of Great American Ball Park cost Hamilton County taxpayers $349 million and deprived federal taxpayers of $142 million in revenue – third-most costly of any Major League Baseball stadium according to a Brookings Institute study. The Reds share responsibility with the Cincinnati Bengals for burying Ohio’s Hamilton County in debt, resulting in cuts to social services, including the sale of a hospital, and forcing Hamilton County Commissioners to refinance $376 million of stadium bond debt in 2016. Property owners in Hamilton County were promised 30 percent of the revenue raised by the half-cent increase to the sales tax in the form of reduced tax bills, but the county has rarely had the money to pay the stadium debt and offer the full tax rollback.
Meanwhile, the Reds could go from increasing attendance by giving away items plus tax to making money on tax-free items while also increasing attendance. And they’re not the only ones.
The Minnesota Twins are also offering more of these promotional ticket packages and fewer giveaways after winning a similar case back in 1998. Like Ohio, “goods and services purchased solely to resell, lease or rent in the regular course of business” are tax exempt in Minnesota. In fact, most states allow businesses to purchase items tax-free as long as those items are to be resold. So this is only the beginning, and already, great American ballparks are turning giveaways into takeaways, likely turning a profit on what was a cheap means of advertising and now is a cheaper means of advertising.
Senior manager of group sales for the Twins, Phil McMullen, informed me that the prices for their promotional ticket packages are based on the price of their group tickets, which explains why the markup for the promotional item appears to vary by seat location when compared to buying a single game ticket alone. The same cannot be said for the Reds, whose price for promotional items vary by seat location.
The June 19 promotion in Cincinnati is available at three different price points in three different sections of the ballpark. The promotional ticket package is $25 per “View Level” ticket, $55 for a seat in the “Field Box” section and $80 for an “Infield Box” seat. The price of a ticket to the same game in the “View Level” section is $17. A field box seat is $41, and infield box seats range from $65 to $68. So the same bobblehead costs $8 when purchased with a “View Level” ticket, $14 when purchased with a “Field Box” ticket and between $12 and $15 when purchased with an “Infield Box” ticket. So fans purchasing the promotional ticket package will pay four different prices for the exact same product in the same store.
The Reds’ attorney says Ohio’s flawed tax code doesn’t require a specific dollar amount for a tax exemption to be claimed nor awarded, according to judicial precedent. But if these teams are indeed selling their promotional items and not giving them away, shouldn’t these markups for promotional ticket packages be consistent? I mean, the price of the promotional item shouldn’t be dependent upon the section in which you buy your tickets, right?
As a Twins season ticket holder, I don’t mind the idea of promotional ticket packages because the best giveaways are limited to the first few thousand fans and always require you to show up hours before gametime to stand in line. The best giveaway last season was a Prince umbrella that had people lining up outside Target Field four hours before gametime. I’d rather sacrifice my money than my time, so if there’s a promotional item I just have to have, I’d rather be certain of getting it than risk my time and money to end up empty handed. That said, though, I’m not going to pay more for the same item sold for less to fans sitting in the cheap seats.
Real Madrid forward Cristiano Ronaldo has reached a deal with Spanish tax authorities to serve a two-year suspended sentence and pay a $21.8 million fine in a tax evasion case, according to multiple reports on Friday.
Ronaldo is unlikely to serve any time in jail under the deal because Spanish law states that a sentence of under two years for a first offence can be served on probation.
The plea agreement is similar to that of Barcelona's Lionel Messi, who was handed a 21-month prison sentence in 2017 on similar charges but under Spanish law was able to exchange the penalty for a fine.
Between 2005 and 2010, foreign players in Spain were protected under the so-called "Beckham law" allowing them to curb their taxes. But as the financial crisis deepened, that exemption was lifted, paving the way for the cases.
Half of Ronaldo’s $93 million annual salary comes from image rights deals with sponsors, which is likely the money being moved around to evade taxes.
Melinda Karlsson, wife of Ottawa Senators’ captain, Erik Karlsson, alleges that Monika Caryk, fiancee of Ottawa’s Mike Hoffman, has harassed Karlsson and her husband online since November 2017. Melinda Karlsson has filed an order of protection citing “over 1,000 negative and derogatory statements about me as a professional” posted on social media, including an allegation that Melinda’s use of painkillers was reason the Karlssons’ first child was stillborn in March. Karlsson also claimed that Caryk "uttered that she wished I was dead and that someone should 'take out' my husband's legs to ‘end his career.’” After the Ottawa Citizen published a story Tuesday detailing the allegations, a Facebook profile in Caryk’s name was deactivated.
Hoffman has defended his fiancee and told the Ottawa Citizen, "There is a 150 percent chance that my fiancee Monika and I are not involved in any of the accusations that have been pursued.”
Someone, it seems, is going to be guilty of defamation in this case, Mike -- either the accuser or the accused. And according to Eric Macramalla, another attorney covering the business and law of sports for Forbes and TSN, much of the social media evidence is obtainable from Facebook and Twitter, but that doesn’t mean a request for the information will result in the evidence being provided. So depending on whether that evidence is made available could determine whether this case goes to court or is settled out of court.
Regardless, it’s unlikely Karlsson and Hoffman are teammates next year. Both are under contract, but trades are reportedly being investigated by Ottawa for both players.
Erica Wilkins, a Cowboys cheerleader from 2014 to 2017, is seeking "unpaid overtime wages, minimum wages, and all other available damages," citing the Fair Labor Standards Act, according to court documents filed Tuesday. The lawsuit said female cheerleaders were paid at a rate less than "Rowdy," the mascot. Wilkins said her rate of pay was $8 an hour and that Rowdy made $25 per hour. Now the mascot’s attire must constitute a higher rate of pay, but is sweating through a costume reason enough for the difference in pay?
Former NFL tight end Kellen Winslow II was arrested at his home in the San Diego suburb of Encinitas on suspicion of multiple sex crimes. Winslow, 34, was stopped by police in his SUV and was identified as the individual involved in a residential burglary at a mobile home park.
Winslow allegedly prefers his victims mature. He’s accused of kidnapping, raping and forcing oral copulation of a 54-year-old woman in March, kidnapping, rape and sodomy of a 59-year-old woman in May, burglary with the intent to rape a 71-year-old woman in June, and burglary with the intent to rape an 86-year-old woman, also in June. Winslow posted $50,000 bail and was released. On June 7, Winslow was arrested on a felony charge of first-degree burglary in Encinitas. He was freed after posting $50,000 bail on that charge. Not much to be said except these charges are disgusting and you’d hope no one would be capable of committing such crimes.
A slip and fall by Reggie Bush on the Rams’ stadium sidelines in St. Louis back in 2015 has resulted in a $12.5 million award ruled to be paid to Bush, who sustained a torn lateral meniscus which ended his season. Attorneys for the Rams said they plan to file a motion for a new trial.
Bronze Balls: The Raiders are concerned that wide receiver Martavis Bryant will be subject to league discipline, sources tell Michael Gehlken of the Review Journal. The belief is that Bryant has violated the league’s substance abuse policy once again, which would put his entire 2018 season in jeopardy. Bryant is entering the final year of his rookie deal.
Silver Syringe: Defensive tackle Roy Miller’s chances of continuing his career for a tenth season took a hit Friday afternoon, as the NFL suspended Miller for the first six games of this season, according to ESPN’s Field Yates. Miller has yet to sign with a team.
Two-bit Cheat of the Week: Cowboys defensive lineman David Irving is being suspended four games for violating the NFL’s policy on substances of abuse, sources tell Ian Rapoport of NFL.com. This isn’t Irving’s first violation of the NFL’s drugs policies. He was hit with a four-game PED suspension last June. This puts your Cowboys in a tight spot with defensive tackle Maliek Collins nursing a foot injury. Hey, maybe they’ll get defensive end Randy Gregory reinstated.
Let’s get nostalgic and talk about foul play of the past, when news was delivered on paper and milk in reusable glass bottles. Here’s your sports-crime history lesson we call Historically Foul Play.
On June 16, 2009, US Cyclist Tyler Hamilton, 38, received an eight-year ban for testing positive for a steroid called DHEA. Hamilton had announced his retirement two months earlier when he was made aware of the failed drug test, but the US Anti-Doping Agency wanted to assure Hamilton would be suspended for the remainder of his cycling career. Hamilton was accused of using blood transfusions, human growth hormones, testosterone, EPO, and insulin after failing drug tests earlier in his career. During the 2000 Athens Olympics, where Hamilton won a gold medal, his A sample showed signs of blood doping. The B sample was mistakenly frozen so that it could not be tested, so Hamilton was allowed to keep his gold medal. He tested positive again one month after the Olympics and was banned for two years. Hamilton kind of makes Lance Armstrong look good, doesn’t he?
Time to get statistical and make some informed inferences in a segment we call Statistically Significant Foul Play, where we do an analysis of statistics that indicate foul play.
Foul Play-by-Play, its hosts, nor its partners practice nor condone the accusatory promulgation of foul play by athletes for the sake of the hot take. Cheats are innocent until proven guilty. That said, in this case of statistically significant foul player, I’d like to admit into evidence the following significant statistics indicating foul play.
The rate at which batters are being hit by pitches so far this season is .385 per game played, the highest rate since 2001’s .39 hit batters per game played. But is that more of a result of batters crowding the plate or pitchers pitching inside?
There is new hope that states with adult-use and medical marijuana laws on the books and states considering legalization or decriminalization will finally be able to stop worrying about the Drug Enforcement Agency (DEA) commandeering their police officers and sheriff’s deputies to enforce federal marijuana prohibition. A bipartisan group of United States’ Senators and Representatives introduced the Strengthening the Tenth Amendment Entrusting States (STATES) Act on Thursday. It’s intent is to allow states to determine what marijuana laws are right for them.
Republican Cory Gardner of Colorado and Democrat Elizabeth Warren of Massachusetts introduced the bill in the Senate. Republican David Joyce of Ohio and Democrat Earl Blumenauer of Oregon are co-sponsors of the bill they introduced in the House of Representatives. Upon introduction of the bill, its creators emphasized that their legislation would not make marijuana legal throughout the country – as if the name of the bill and its acronym weren’t revealing enough.
The bill’s bipartisan group of writers wants everyone to know the STATES Act is a states’ rights bill and not a legalize marijuana bill for obvious reasons – the biggest being that legislation ending federal marijuana prohibition would never pass Congress let alone get the support of Donald Trump, who said he’ll “probably” back the bill. But any legislation even misrepresented as a marijuana legalization bill would do lasting damage to the cannabis movement that has seen economies, government budgets, infrastructure and education improve while crime, opioid overdoses, suicides and healthcare costs decrease in states with adult-use or medical marijuana laws.
With the STATES Act, it will be nigh impossible for Conservatives to justify their opposition of the bill by calling it an endorsement of drug use. Politicians representing states that border states with adult-use or medical marijuana laws could claim the bill would only stretch their law enforcement and judicial budgets even thinner, but they couldn’t misrepresent the legislation to their constituents as an attempt to legalize marijuana. They could even request additional federal funding to address the increased law enforcement and judicial workload they anticipate, but they couldn’t vote “no” with the excuse of “I’m not about to legalize marijuana.” I mean, they could say that in their defense, but not without subjecting themselves to ridicule.
Another reason the bipartisan crafters of the STATES Act are making cannabis a states’ rights issue is because it appeals to a majority of the public. A Gallup poll conducted in June 2016 found that 55 percent of Americans prefer government power to be concentrated at the state level instead of the federal level, and Republicans are are four times as likely to support state power.
Giving more power to the states appeals to Republicans, Libertarians and even some Democrats. Hell, I’m a Socialist, and I support small government because I know Socialism, like all forms of governing, works most effectively and efficiently in people’s behalf when the number of people it governs is small and when that population is concentrated in a governable geographic area. Why? The answer was provided by the late Alan Thicke back in 1978: “Now, the world don't move to the beat of just one drum. What might be right for you, may not be right for some.”
Those are, of course, the opening lyrics to the “Diff’rent Strokes” theme song, and a more true statement could not be uttered let alone sung. The United States is a vast country that spans the spectrum of both geography and demography, which makes it difficult to govern. Americans experience such differing circumstances that what might be right for you, may not be right for some. Hell, in my home state of Montana you can drive eight hours and never leave the state, but the geography and the people change immensely. What works in the West probably won’t work in the East and vice versa. Marijuana legalization might be right for Californians, but it may not be right for Nebraskans. The STATES Act would allow states to choose what cannabis laws work best for their residents.
This isn’t the first time a bipartisan bill has been introduced to strengthen states’ rights to adopt and enforce marijuana laws as they see fit. I was on Capitol Hill as a student lobbyist for Students for Sensible Drug Policy five years ago when H.R. 1523, the Respect State Marijuana Laws Act of 2013, was before the 113th Congress. It too sought to allow states to decide the legality of adult-use and medical marijuana by altering the Controlled Substances Act to exclude persons acting in compliance with state marijuana laws.
We felt way back then that this would be our path to ending federal marijuana prohibition, and while we weren’t going to get federal legalization, it was a compromise we were willing to make to appeal to Conservatives and get the legislation passed. I left the reception held after our lobby day filled with hope after hearing Democratic Congressman from Colorado Jared Polis and famed Conservative Grover Norquist agreeing that cannabis was an issue for states to decide by and for their respective residents.
According to Congress.gov, that bill is still before Congress, lost and forgotten by the Subcommittee on Crime, Terrorism, Homeland Security and Investigations since April 30, 2013. It has 28 cosponsors in the House, six of which are Republicans. The House version of the STATES Act already has 14 cosponsors in the House plus the two Representatives who assisted in drafting the bill. Eight are Republicans, so the new bipartisan bill is already appealing to more Conservatives than H.R. 1523.
This bipartisan group has high hopes for the STATES Act given what’s occurred since H.R. 1523 was introduced. The STATES Act does what H.R. 1523 would have. It amends the Controlled Substances Act to exclude persons acting in compliance with state and tribal marijuana laws. But it doesn’t eliminate all federal oversight. Distribution of cannabis at transportation facilities and rest stops would remain federally illegal and enforced. The STATES Act does a lot more than allow states to determine their own marijuana laws, though. It also addresses some of the issues that have resulted from states legalizing adult-use or medical marijuana, which should appeal to both sides of the aisle.
Back in 2011, I wrote that cannabis would be America’s best cash crop ever – even bigger than tobacco. Marijuana consumption has already far surpassed my expectations upon its legalization for adult- and medical-use, but industrial hemp is what’s going to make cannabis America’s best cash crop ever. It grows like a weed if you’ll forgive the pun, and can be used for virtually anything. It’s a stronger fiber than cotton and can be used to make textiles that last longer so our clothes don’t fall apart in the wash. It will make stronger rope, hopefully saving mountain and rock climbers’ lives, and cowboys, cowgirls and sailors headaches. Hemp seeds are also rich in fatty acids, protein, fiber and other important nutrients. Hemp can even be used as fuel, which ExxonMobil will no doubt exploit given its investment into biofuels. All that algae research ended up being nothing more than a good PR campaign because hemp is a much less intensive biofuel to produce than algae. You can even build a house out of something called hempcrete, and cannabis can also relieve your pain without getting you high. That’s right, cannabidiol, better known as CBD, has been proven to have pain-relieving, anti-inflammatory, and anti-anxiety properties without the psychoactive effects of THC. So cannabis can clothe you, feed you, shelter you, transport you and your things, relieve your pain, and even save your life while creating jobs and improving our environment by oxygenating the air. Along with solar and wind energy industries, industrial hemp will be one of the biggest contributors to the health of America’s economy and environment for years to come.
The STATES Act would make cannabis transactions legal, allowing cannabis providers to take methods of payment besides cash and store that money in a bank. Cannabis providers have had a justifiable fear of depositing their profits in federal banks subject to federal law. The federal government could seize those assets like they seize vehicles used to traffic drugs. No criminal charges need to be brought against the cannabis providers for them to lose their money either, as asset forfeiture is a civil action, not criminal.
Since its legalization in Colorado, many cannabis providers have hired motorcycle couriers to pickup and deliver literal saddlebags of money to be deposited in a safe somewhere. One California dispensary owner reportedly delivers $40,000 in cash in the trunk of his car every month simply to pay his taxes. The STATES Act would make those trips a thing of the past and likely result in fewer instances of theft.
So is 2018 finally the year federal marijuana prohibition ends? Some people think so, but ultra-Conservatives could get in the way, just as they did on a cannabis bill for veterans just last week. The STATES Act probably won’t have many supporters from the religious right, which will be its biggest obstacle to overcome. But now more than ever before, Senators and Representatives on both sides of the aisle are going to be more willing to consider the end of federal marijuana prohibition given what we’ve all learned from the experimentation spearheaded by states. Kentucky, Tennessee and Virginia could all adopt medical marijuana laws this year, and if that doesn’t surprise you consider where we were five years ago, when Maryland relaxing criminal penalties for seriously ill people using marijuana was considered a win for cannabis advocates.
Your Senators and Representatives are not experts on cannabis and need you to inform them on the issue, so here’s a guide on how to do so most effectively. You’ll want to appeal to the humanity in them. Politicians are not cold robots. When they hear a story about someone using cannabis to treat their chronic back pain that otherwise would keep them bedridden, they can probably relate to that. They especially want to know if cannabis helped you kick your opioid addiction. They have friends and family struggling with the same problems with which the rest of us struggle, so speak or write from the heart. The facts will only bore them to the point they tune you out.
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The United States Supreme Court ruled to strike down the Professional and Amateur Sports Protection Act (PASPA) by a 6-3 vote. The 1992 law barred state-authorized sports gambling, with Nevada being the sole exception.
The ruling allows states to determine whether they want to allow gambling on sports. While New Jersey expects to have sportsbooks open prior to the start of the NBA Finals, Delaware, Mississippi, New York, Pennsylvania and West Virginia are all prepared to get into legal bookmaking. But Indian nations could beat even those states to market.
Casinos on Indian reservations could theoretically open sportsbooks today because they are sovereign nations. The 1993 Nation-State Gaming Compact authorizes the Oneida nation in New York to adopt any gaming specification that is permitted without any further approvals by the State. They intend to open a sportsbook as soon as possible, but other tribal nations are taking a cautious approach.
The reason behind the cautiousness is the fact sports wagering isn’t all that profitable for casinos. According veteran Nevada sportsbook operator Art Manteris, sportsbetting “generates only a four- to six-percent margin, is labor-intensive and requires a major capital investment,” according to a story by Dave Palermo of Legal Sports Report.
Consider this: “From March 2015 to February 2016 a Nevada Gaming Control Board Gaming Revenue Report shows that the “total gaming win” (the casino’s win) over twelve months from slots was $7,066,306,000 (about 7 billion) total. Meanwhile, the total table games win was $4,094,401,000 (about 4 billion). The implication of this is that, even with sports gaming’s comparatively small return of $19,236,000 (about 19.2 million) considered, no casino game even comes close to slots in terms of revenue for the casino.” That’s according to Fact/Myth.
Palermo reports that “16 percent of the tribal casinos – many in urban areas – generate 71.5 percent of the $31.2 billion industry, according to senior economist Alan Meister of Nathan Associates.” These urban, tribal casinos might not have much reason to venture into sports betting since any dollar spent at the sportsbook instead of in a gaming machine is more likely to result in a loss and will certainly result in smaller margins of return.
But rural, tribal casinos could see sports betting as an opportunity. Places like 4 Bears Casino and Lodge in New Town, N.D. could supplement its revenue used to fund the needs of reservation residents by providing the first online sportsbook for North Dakotans.
While the consensus of casino experts seems to be that the estimated $140 billion per year illegally wagered on sports in the U.S. according to the American Gaming Association (AGA) is overestimated, there’s tons of money to be made by a score of entities outside the gaming industry.
NBA Commissioner Adam Silver wants his league to get one percent of all bets made on its games. Local newspapers and radio entities in states with legal sports gambling will now be able to provide content related to sports gambling instead of dancing around the subject. Most importantly, though, most of the billions of dollars Americans have stashed with online bookkeepers overseas will find its way back to the states and stimulate the American economy. I say most because these online bookkeepers overseas have been fraudulent in the past.
The Supreme Court decision is long overdue given the amount of revenue that could be raised by state and federal governments simply from administering a sin tax on gambling. Twenty states have already proposed bills to legalize sports gambling.
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The most recent World Health Organization rankings of the world’s health systems has the United States at 37th -- seven spots behind its neighbor to the north, Canada, and 19 spots behind its American predecessor, the United Kingdom. That might not seem so bad on a list 190 nations long, but the United States ranks last in health care system performance among the 11 richest countries included in a study conducted by The Commonwealth Fund. In that study, “the U.S. ranks last in Access, Equity, and Health Care Outcomes, and next to last in Administrative Efficiency, as reported by patients and providers.”
Much of our inflated health insurance premiums in America comes from paying to create your bill. That’s right -- 25 percent of total U.S. hospital costs are administrative costs. The United States had the highest administrative costs of the eight countries studied by The Commonwealth Fund. Scotland and Canada had the lowest, and reducing U.S. per capita spending for hospital administration to Scottish or Canadian levels would have saved more than $150 billion in 2011.
Treating healthcare like any other marketplace requires careful, complicated codification of products sold and services rendered. People must be paid to determine how much your healthcare costs, and that can’t be changed, but it can be improved upon. Allowing insurance companies to profit from people’s health makes for a marketplace in which every cent of cost is counted and every penny of profit is protected. Profit motive always results in more scrutiny by the haves at the expense of the have-nots.
You might think that an industry that preys on the unhealthy and the healthy alike would prefer their consumers healthy as to enjoy the profits from your premium payments without paying for healthcare. But the cost of your health insurance premium already includes your health insurer’s profit margin. The health insurer is going to do all it can assure a certain amount a profit except for a catastrophic health emergency that consumes the country. But if the consuming population is unhealthy relative to other markets, the health insurer has good reason to inflate prices to cover its projected costs. That is indeed the case in the United States.
The United States is the 34th healthiest nation in the world, according to 24/7 Wall St. That’s not terrible, but not what you probably expect from a nation advertised by Americans as the greatest in the world. And you’re paying for it.
Not unlike a mortgage or auto insurance premium, the cost of your health insurance premium is an average based on the health insurer’s risk. That risk is the potential costs the health insurer could incur based on the perceived health of its insured consumers. I’ve written in the past how Republicans can’t repeal and replace Obamacare because their constituents, most of whom reside in the South, need Obamacare. Southerners are the least healthy Americans, with 20 percent reporting fair or poor health in 2014. The South also has the highest rates for diabetes, obesity and infant mortality in the nation. The South also accounts for nearly as many uninsured people as the rest of America combined, and 17 percent of the uninsured fall into the coverage gap for Medicaid expansion. Your health insurance premiums pay for their healthcare as well as your own, which is why, given the current for-profit health insurance marketplace, I would welcome a fat tax.
A fat tax is a tax on fat people. People who live unhealthy lifestyles should pay more for health insurance. As a healthy consumer of health insurance, I’d prefer to pay a lower premium given my dedication to maintaining good health at the expense of those who refuse to maintain good health. I might be fat shaming some people, but I don’t care. I shouldn’t have to pay for your diabetes because you can’t resist stuffing your face with Twinkies. Maintaining your health is your responsibility and no one else’s, and you should be punished for failing to maintain good health at the expense of your neighbors. But since something that could ever be referred to as a fat tax by the opposition would never pass Congress, a rewarding people with discounts for their healthy habits would be much more likely.
I foresee this program as mirroring the Progressive auto insurance Snapshot program -- “a program that personalizes your rate based on your ACTUAL driving.” Instead of plugging a device into your car, you’d use a Fitbit or similar health monitoring device with a heart rate monitor. Couple your daily monitoring of your exercise and diet with the results of regular checkups with your physician to confirm your healthy habits and you’ll be given a discount on your monthly health insurance premium as determined by your overall health.
Simply scheduling and completing regular checkups will help lower premium prices by catching things early and allowing for preventative medicine to work rather than resorting to more expensive reactionary measures. That could be the first discount bracket: schedule and complete a physical twice annually for two percent off your monthly premium. That way everyone at least has a chance to save some money. Those who fail to do so will pick up the tab.
The real discounts will be reserved for those consumers who regularly show signs of living a healthy lifestyle. People who don’t use tobacco products would receive a one-percent discount on their monthly premiums that the insurer will recoup from charging tobacco users with a one-percent premium penalty.
Non-drinkers would also receive a one-percent discount, as alcohol is a cancer-causing carcinogen and dangerous when consumed irresponsibly. Accessing a penalty for drinking, however, would be problematic, as social and occasional drinkers shouldn’t be penalized for enjoying alcohol responsibly. But say you get a ticket for driving while intoxicated -- that’s two percent tacked onto your health insurance premium for putting your own health and the health of your neighbors at risk. The same goes for possession of illegal drugs, except cannabis. No discount or penalty would be accessed for cannabis use since it is proven to kill cancer cells and be of medical value.
Even if you are a tobacco user and a heavy drinker or drug user, you too deserve opportunities to lower your health insurance premiums. So anyone who meets the Department of Health and Human Services recommendations for weekly exercise for a month gets a one-percent discount on their premium the following month. That’s just 150 minutes of moderate aerobic activity or 75 minutes of vigorous aerobic activity weekly. Add that to the two-percent discount for completing bi-annual physicals, and you could offset the penalties of driving under the influence and smoking.
Big money will be saved based on your body fat. If an adult male or female maintains an athletic body fat percentage (between five and 10 percent for males and between eight and 15 percent for females), they get an additional two-percent premium discount on top of the two percent for completing bi-annual physicals. That same two percent would have to be paid by someone, though, so it would fall on the obese.
Adult males with a body fat percentage over 24 and adult females with a body fat percentage over 37 would receive a two-percent premium penalty. If they make their two appointments for physicals annually, there wouldn’t be any change to their bill. The overweight, being males with body fat percentages between 21 and 24 and females with body fat percentages between 31 and 36, would receive a one-percent premium penalty.
Adult men with body fat percentages between 11 and 14 and women between 16 and 23 would get a one-percent discount for maintaining a “good” body fat percentage. Those men with body fat percentages between 15 and 20 and women with body fat percentages between 24 and 30 would pay no penalty nor receive a discount for maintaining “acceptable” body fat percentages.
These discounts and penalties would motivate consumers to improve their health in order to save money, in turn, lowering premiums for everyone by improving the overall health of all consumers in the marketplace. The higher the U.S. climbs out of that 34th spot in overall health, the less everyone pays in health insurance premiums.
I pay roughly $135 monthly in health insurance premiums for a high-deductible, Bronze package I found on MNSure -- Minnesota’s equivalent to the Obamacare marketplace. I maintain an athletic body fat percentage under 10 (two-percent discount). I exercise and regularly exceed the Department of Health and Human Services’ weekly recommendations (one-percent discount). I don’t smoke (one-percent discount), and I don’t drink (one-percent discount). I saw my doctor twice last year (two-percent discount). Add it all up and I’d save seven percent on my monthly health insurance premiums, or a measly $9.45 monthly. That’s over $113 annually, though, much of which would be recouped from the penalties assessed to the unhealthy. I could think of a lot of things on which I could spend that $113. It would be nice to be able to afford a steak once in a while.
While Medicare-for-All is picking up steam in Liberal circles, it’s still at least three years away from being seriously considered by Congress as a solution to ever-increasing healthcare costs. Meanwhile, here’s a solution that addresses two problems: ever-increasing healthcare costs and the declining health of Americans overall.
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With the Republicans’ tax bill set to become law on Jan. 1, you have just a few days left to prepay your 2018 property taxes before the federal cap on your state and local tax deduction goes into effect. The Republicans’ tax bill will cap the state and local tax deductions on federal tax returns at $10,000.
Thomas Mould, a certified public accountant of Valley Accounting and Tax in Apple Valley, Minn., said the $10,000 cap applies to all state taxes, including income tax. So if you pay a combined $10,000 in state and local property taxes and state income taxes, you’ll probably want to prepay your 2018 property taxes today.
Most people don’t have a state and local tax bill over $10,000, but those who do should take advantage of the uncapped deduction for property tax payments one last time. People living in high-tax states like New York and California should be the first to jump at the opportunity. Oregon, Maryland and Minnesota also have high income tax rates, but some states are still sorting out how they’ll handle pre-payment of property taxes and whether they will recognize the deduction.
Some states have made their intentions clear. Oregon, for example, is not allowing or recognizing prepayment of property taxes. However, New Jersey’s Governor just issued an executive order allowing the prepayment and deduction at the State level.
Mould said three of the four counties he contacted in Minnesota will take a prepayment on 2018 property taxes but wouldn’t tell him whether that prepayment would be recognized as income by the County, ensuring deductibility by the IRS. So states are scrambling to find answers for citizens with just days to determine whether prepaying 2018 property taxes will payoff for them next year. Small businesses shouldn’t be as confused, though.
“If the business itself...is subject to taxation, then there’s no limit on the state taxes. But if all the taxes are paid at the personal level, then the $10,000 cap would apply,” Mould informed.
Translation: if your business is taxed as a corporate entity, then the $10,000 state and local tax cap doesn’t apply to you. But if you run a sole proprietorship, then the $10,000 cap on your state and local tax deduction does apply.
So do your due diligence and determine whether prepaying your 2018 property taxes will save you money come tax season next year, and if you intend to start a sole proprietorship in 2018, keep in mind that your state and local tax deduction will be capped at $10,000, and it might be worth paying your 2018 property taxes ahead of time.
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"Since 1995, more than $15 million in taxpayer dollars has been paid out to settle claims, including sexual harassment claims, on behalf of members of Congress and congressional staff. While the amount of money paid is public, everything else is secret. The public doesn’t know which members have been involved in taxpayer-financed settlements for alleged misconduct."
Those are the words of Florida Republican Representative Rob DeSantis, who is a cosponsor of a bill that would stop Congress’ secret, taxpayer-funded harassment settlements. While anyone else would be required to spend their personal funds to settle a sexual harassment lawsuit, politicians have been using tax dollars to do so for decades. Now that male politicians have been revealed as the pigs they are, now more than ever it’s important American taxpayers are refunded for bailing out the pigs.
While the bipartisan bill would require lawmakers who used the secret Treasury Department fund reimburse the government, with interest, that’s not enough. American taxpayers deserve to be reimbursed -- not the government. That’s our money -- not the government’s, and when our money is used to bail out politicians who are already rich, our money needs to be returned.
Since the Republican tax bill will force poor and middle class Americans to pay more in taxes to fund a massive tax cut for corporations and the rich (and raise the deficit to boot), the least Republicans could do is toss the average American a refund for settling sexual harassment suits. It might only result in a 13-cent refund for each American taxpayer ($15 million divided by 122 million taxpayers), that’s still more than most Americans are getting with the current legislation.
Contact your Senators and Representatives and demand any taxes used to bail out politicians accused of harassment, sexual or otherwise, be returned to you and every American taxpayer immediately. This should be something upon which both Democrats and Republicans can agree -- taxpayer dollars shouldn’t be used or collected to bail out political pigs.
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If the tax plan presented by Donald Trump and Republicans is adopted, the average American stands to benefit very little. According to a new report by the nonpartisan Tax Policy Center, four-fifths of American taxpayers can expect their after-tax income to increase .5 percent or less, while the top fifth of earners would see a three percent increase in after-tax income.
The study also found that 80 percent of tax benefits would go to the top one percent of American earners. Households making more than roughly $900,000 a year would save $200,000 on average. The top one percent of American earners can expect a tax cut of 9.8 percent between now and 2027. Repealing the estate tax would cost the federal government $240 billion in tax revenue over the first decade, most of which would stay in the pockets of the super rich.
Big businesses stand to benefit from the Trump tax plan, too, thanks to a decrease of the corporate tax rate from 35 percent to 20 percent. But businesses that rely on debt to finance their investments, like real estate companies, private equity firms and financial companies, will likely see costs increase, because Trump’s tax plan proposes limiting the deductibility of corporate interest.
Realtors have been especially opposed to the Trump tax plan, because while it preserves the mortgage interest deduction, fewer people would benefit from itemizing their mortgage interest given the plan’s proposed increase to the standard deduction, which is closer to a 15 percent increase than a doubling of the standard deduction. This could make homeownership less attractive and hurt the housing market.
High-tax states like New York and California would be especially affected by Trump’s plan to eliminate the state and local tax deduction, which allows taxpayers who itemize to deduct property, state and local taxes. Congressional Republicans in high-tax states have already expressed their concern, so Trump’s tax plan might not pass without the state and local tax deductions being preserved.
Who is paying for these tax cuts for businesses and the super rich? The Tax Policy Center found that a majority of households earning between $150,000 and $300,000 would pay more in taxes under Trump’s tax plan, as would almost 30 percent of Americans earning between $50,000 and $150,000 annually.
Trump’s tax plan also doesn’t come in under budget. The tax plan would increase the deficit by $2.4 trillion over the first decade, and by $3.2 trillion over 20 years. And while the Royal Bank of Canada thinks Trump’s tax plan will raise gross-domestic product by .5 percent annually, even if that were sustainable over the next 20 years, Trump’s tax plan still increases the federal deficit by $1.252 trillion.
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