Politics
Trump’s promise to repeal SALT caps revives the fight on Capitol Hill
U.S. Representative Josh Gottheimer (D-NJ) speaks during a press conference about the SALT Caucus outside the United States Capitol on Wednesday February 08, 2023 in Washington, DC.
Matt McClain | The Washington Post | Getty Images
House lawmakers are using former President Donald Trump’s own words as leverage to pressure their colleagues into preserving the original state and local tax deduction, with a fight set to take shape next year.
The SALT deduction allows tax payers to deduct up to $10,000 of property, sales or income taxes that have already been paid to state and local governments. Historically, most of the tax payers who claim the deduction reside in high tax states such as New York, Connecticut, New Jersey and California.
But the cap on SALT became law when Trump was president and after he signed his $1.5 trillion tax bill in 2017, using the new version of the deduction as a pay for method. There was no cap on SALT prior to the Trump tax bill.
House lawmakers are now strategizing how to maintain what could be an unlimited SALT tax deduction in the next Congress, as the SALT cap provision from the Trump tax bill is set to expire on Dec. 31, 2025.
If Trump becomes president again, and Republicans have a majority in both the House and Senate, some House Republicans are pushing their party’s leadership to look at alternative payment methods for Trump’s tax plan, which includes cutting the corporate tax rate from 21% to 15%, according to Rep. Andrew Garbarino, R-N.Y.
Some of those recent conversations have featured Trump’s new stance on bringing back the full SALT deduction, despite his bill being the cause for the $10,000 cap.
Garbarino said he, along with Reps. Anthony D’Esposito, R-N.Y and Nick LaLota, R-N.Y., met with House Ways & Means Committee chairman Jason Smith, R-Mo., as recently as Tuesday on Capitol Hill about the need to restore the full SALT deduction.
During the meeting, the three New York Republicans pointed to Trump’s promise in a social media post to “get SALT back” if he were to become president as a way to encourage Smith to stay away from making any major alterations to the SALT deduction once it expires late next year. House Ways & Means is responsible for helping write and pass tax legislation.
“He [Trump] wants it back,” Garbarino told CNBC in an interview about how they made their recent pitch to Smith. The House Ways & Means chair “said ‘look guys, we are looking at all [pay for] options,’” Garbarino said.
Rep. Young Kim, R-Calif., told CNBC in a statement that the SALT cap is “hurting” her constituents and said Trump’s most recent take on SALT shows he’s listened to “Americans across the country hurting from the SALT cap.”
“We’ll be sure to have a seat at the table during discussions for the 2025 tax package,” Kim said, pointing to lawmakers in SALT reliant states who also want to maintain the original deduction next Congress.
Garbarino said he estimates there are at least a dozen House Republicans who won’t support a tax bill with a SALT cap at $10,000 and, at a minimum, will fight for the cap to be at a much higher level.
Some House Democrats have their own plans to bring back and keep the standard SALT deduction after the cap expires, according to Rep. Josh Gottheimer, D-N.J.
The New Jersey House lawmaker said in an interview with CNBC he wants to see the SALT cap expire in 2025 and if Democrats and Republicans from states which rely on the full SALT deduction prove to be critical votes in the House, they’ll stand in the way of legislation that maintains the cap.
“I would just say if you have a five seat Democratic majority, we will have enough people from SALT states to put the full deduction back in place and lower taxes for middle class families,” said Gottheimer. “It will be a battle.”
Politics
Reform’s conference is all blame, grumpiness – and no idea how to fix things | John Crace
From the railway station, you take the emergency stairs down to the perimeter road. Walk half a mile round the back of the vast hangars of the Birmingham NEC. Get to a fork. To the right, the Bear Grylls Adventure. To the left, the Reform party conference. Decisions, decisions. A day out being macho and talking the Alpha course with Russell Brand. Or having reality twisted with Nigel Farage and his crew. Come to think of it, there’s not much difference.
The queue for Reform snakes back 100 yards from the entrance more than an hour before the start. Fair to say neither Labour nor the Tories will get a crowd this big for their conferences over the next 10 days or so. Inside, the merchandise stall is doing brisk business in Reform coffee mugs. No one seems that interested in the Richard Tice turquoise ties. Strange. Looking like the sales rep for a sunbed company is very much on brand for the upper echelons of the party.
Near the entrance to the auditorium are two stalls. One for the TaxPayers’ Alliance. The other for the Free Speech Union. Even the Institute of Economic Affairs has stayed away. I speak to a delegate. He explains how he used to be a member of the Revolutionary Communist party before he realised there were too many immigrants. What he really wants to talk to me about, though, is that John Lennon was killed by an assassin acting on the direct orders of George HW Bush.
Inside the hall, the 4,000 members get to their feet as Nige takes his place in the front row, surrounded by minders and snappers. A chant of “Nigel, Nigel” bounces off the walls. It’s a curious mix of a Billy Graham revivalist meeting and a Nuremberg rally. This is a party that has come to party. It may have been playing the same tunes for the last 10 years as Ukip was followed by the Brexit party and now Reform, but its supporters are ever hopeful. They believe their time is coming.
The suspiciously tanned David Bull gets proceedings under way. No one knows exactly what Dave does but he acts like one of the chosen ones. The inner circle. He runs through a few old favourites. Immigrants. Loud boos from the audience. Keir Starmer taking freebies. More loud boos. Just wait till they all find out how many freebies Nige has taken in his career. This is rapidly turning into a pantomime act. Brexit has been stolen from them. No one here is taking any responsibility for the Brexit they campaigned for.
Then James McMurdock. The Reform MP who only got elected because he signed the wrong papers. He thought he was joining the party when in reality he was applying to become a candidate. He had been in the party less than two months when he became an MP.
“I guess I should introduce myself,” he says. Good. Maybe he was about to reveal how he was imprisoned for domestic violence. On second thoughts, maybe not. The truth is mutable for Reform. Bewilderingly, he concludes by saying that if you vote Reform, then you get honest and skilled MPs. He is exhibit No 1, I guess.
Next we were promised one of the most famous people in the country. Instead we got Ann Widdecombe. A woman too unpleasant even for the Tory party. Imagine. She doesn’t even try to keep her hatred of immigrants in check. Sink the boats. Do whatever you like. They aren’t real people to her. Imprison them in rat-infested squalor. Send them to any old country. As long as they aren’t here. She has no idea how to achieve any of this. Nor any interest in international law. But neither has the audience. They all believe that foreigners belong anywhere but here. She gets a standing ovation.
Believe it or not, Ann was comparatively sane compared with Ant Middleton, who followed her. The kindest thing to say about him is that he’s not very bright. Only capable of a stream of unconsciousness. Since being thrown off SAS: Who Dares Wins for being a total dick, Ant has come to believe he’s the Messiah. He specialises in confessional, motivational speeches which are complete and utter bollocks. Maybe he thought he was at the Bear Grylls centre.
“They are out to get you,” he confided from the front of the stage. We never got to find out who the “they” were. But it sounded like the establishment. In which case, beware of Nige and Dicky Tice. They are more establishment than most of the government. And beware all foreigners. He loved his country and it was being stolen from him. British culture was Christianity. Any unbelievers had to be eradicated. This was too much even for some of the audience. Imagine being too out there for Reform.
During the lunch break, the professionally grumpy became even grumpier as half the food concessions were closed and some of the queues were 200 or so punters deep. Then we settled in for the afternoon. Basically a long list of grumpiness. Everything was broken and everything was someone else’s fault. No ideas how to fix it, other than Nige would come up with something sooner or later.
MP Rupert Lowe sounded like a golf-club bore as he listed his pet hates. Rainbow lanyards, Covid vaccinations, the Office for Budget Responsibility, the BBC, taxes that affected wealthy people like himself. He even confessed to hating democracy. Lee Anderson continued along the same theme. Vegans, net zero, Sadiq Khan, Black Lives Matter. All evil. The only person he did like was Jim Davidson. He got a standing ovation for ripping up his TV licence reminder. Free the 30p Lee.
It was all getting a bit tedious. Repetitive. Worse was to follow with the personality-free Dicky Tice. A man desperate to be loved but so hard to trust. He took the afternoon by storm by insisting Britain was dominated by the three cults. At least he meant to say three cults. He actually said something much more Anglo-Saxon. It’s a view, I suppose. Zia Yusuf came and went in a sea of indifference. He didn’t seem to realise that the Battle of Arnhem had been a historic disaster.
Finally – to a soundtrack of Eminem and fireworks – the man himself. Big Nige. The rock’n’roll politician. Allegedly. Only for much of the time it felt as though he was just phoning it in. A greatest hits compilation of reality-bending dishonesty. Everyone to blame for Brexit but himself. He was exempt from changing the country for the worse.
Farage went on about the need to democratise and professionalise the party. But he felt distracted. As if his heart wasn’t in it. He tried to sound engaged, but it was as though he was bored. He’d made this speech hundreds of times before and even he had had enough of it. Imagine. Maybe he had reached peak narcissism and could take no more. Can see through his own bullshit even if others can’t.
After half of an hour of mindless talking, he checked the time and wound it up after going through his pet grievances. NatWest. The Tories useless. Labour useless. Nothing positive to add. No vision to add. Just him at the centre of the universe. Cue more fireworks and some balloons. Just to remind people they had been in the presence of greatness. Apparently.
Politics
Martin Rowson on Keir Starmer’s free glasses – cartoon
Politics
Huge crowds expected at pro-Palestine march ahead of Labour conference | Labour conference 2024
The UK’s first pro-Palestine national march to be staged outside London is expected by organisers to attract tens of thousands of people on the periphery of the Labour party conference in Liverpool.
The 19th “national march for Palestine” will start at midday on Saturday near Lime Street railway station and end near King’s Dock, where Keir Starmer’s party is gathering this weekend.
Ben Jamal, the director of the Palestine Solidarity Campaign (PSC), said demonstrators would call for an immediate arms embargo rather than what he described as the “inadequate partial suspension” of arms export licenses to Israel that was announced this month.
He said: “The Labour government knows that Israel is committing crimes in Gaza and the West Bank. But instead of honouring its obligations under international law, it is still seeking to shield Israel from accountability.”
Organisers, including the PSC, Stop the War, the Campaign for Nuclear Disarmament, Muslim Association of Britain, Friends of Al-Aqsa and Palestinian Forum in Britain, said they expected tens of thousands of people to march on Saturday.
The marches started in London in the aftermath of the attack by Hamas militants on Israel on 7 October, when about 1,200 people were killed and 250 taken hostage. Israel responded to the attack with a military offensive in the Gaza Strip during which an estimated 41,000 people have been killed so far, according to Gaza health authorities, with the majority of them civilians.
Organisers claimed the largest march, on Armistice Day, was attended by 800,000 people although the police put it at closer to 300,000.
The PSC said it had been supported by constituency Labour parties and trade unions in an attempt to secure a motion for debate on Palestine at the conference, which begins on Sunday. Motions calling for international law to be upheld and a complete stop to arms exports to Israel are on the conference agenda, but it has not yet been decided whether they will be debated.
The PSC said it was concerned “factions linked to the party leadership will seek to push the motions off the agenda to avoid embarrassment to the government, and avoid any discussions that are critical of Israel’s actions or call for its government to be held to account”.
Fringe meetings have been organised at the conference but the PSC complained it had not been allowed to use the words “genocide” or “apartheid” in its description of their events in the official guide.
The Trades Union Congress (TUC) passed a motion at its annual conference demanding all UK arms trading with Israel be ended immediately but it was criticised in some quarters for failing to mention Hamas or the 7 October massacre.
Jamal said: “The wider labour movement, as demonstrated by the motion passed unanimously by the TUC at its recent congress, is calling for action to hold Israel to account including a full arms embargo.
“Opinion polls show that these demands are supported by members in the Labour party and by the wider public. This is a moral test for Keir Starmer and the Labour leadership. They need to stand up for the implementation of international law and be bold in confronting those who undermine it, no matter who they are.”
Politics
Trump assassination attempt: Secret Service identifies failures
Republican presidential candidate and former U.S. President Donald Trump with his bloodied face is assisted by the Secret Service as multiple shots rang out during a campaign rally at the Butler Farm Show in Butler, Pennsylvania, U.S., July 13, 2024.
Brendan Mcdermid | Reuters
The U.S. Secret Service said Friday it was to blame for the near-assassination of former President Donald Trump at a July campaign rally, pointing to “complacency” by some of its agents and communication gaps with local police.
“As I’ve said, this was a failure on the part of the United States Secret Service,” said Ronald Rowe, the agency’s acting director, at a press conference.
It was the first time since the July 13 shooting that the agency has presented the public with a full picture of the internal breakdowns that led to the attack, which left a member of the audience dead.
The Secret Service was chiefly responsible for crafting the security plan at the presidential campaign rally near Butler, Pennsylvania, where assassin Thomas Crooks was able to open fire at Trump before being shot dead.
But the agency “did not give clear guidance or direction to our local law enforcement partners,” Rowe said, and “there were communication deficiencies between law enforcement personnel at the site.”
Trump’s ear was grazed by a bullet. One rally attendee positioned behind Trump, Corey Comperatore, was killed, and two others were critically injured.
Line-of-sight issues at the Republican nominee’s rally site were known about but not effectively addressed in advance, Rowe went on.
He added: “While some members of the advance team were very diligent, there was complacency on the part of others that led to a breach of security protocols with respect to accountability.”
Those employees will be held accountable, Rowe said.
Rowe took over the Secret Service after former Director Kimberly Cheatle resigned from the agency on July 23, just 10 days after the assassination attempt.
The FBI is investigating another apparent assassination attempt against Trump that took place Sunday at Trump’s golf club in West Palm Beach, Florida.
A Secret Service agent on that day opened fire after spotting an apparent rifle poking through a tree line on the edge of the golf course. A suspect, 58-year-old Ryan Wesley Routh, was arrested later that day and subsequently charged with two federal gun crimes.
Rowe in Friday’s remarks pointed to the golf club incident as he called for a “paradigm shift” in how the Secret Service operates in order to combat an “evolving” threat level.
This is developing news. Please check back for updates.
Politics
The Guardian view on Labour party conference: continuity or real change? It’s time to choose | Editorial
Sir Keir Starmer has been prime minister for less than three months, yet Labour begins its annual conference this weekend already weighed down by incumbency. Rows over gifts from wealthy donors and tickets to football games as well as squabbling about his chief of staff’s pay are feeding into public disquiet. These come when the burden of government in difficult economic circumstances and in an age of low public trust would have shortened any political honeymoon period. But Downing Street also set out with the explicit objective of dampening expectations of how soon change might come. That mission has been accomplished with a needless surplus of gloom.
Sir Keir’s urgent task in Liverpool is to recalibrate the mood with a sense of optimism and purpose. He needs to give the country reasons to be glad of a Labour government in ways that go beyond relief at no longer being ruled by Tories. New governments often come to power blaming the last. Sir Keir has given the nation an unvarnished account of the dismal legacy he has inherited. That bleak audit covers a record of political and financial maladministration.
Conservative ministers, driven by ideological fanaticism and self-serving cynicism, squandered energy and resources on ill-conceived, unworkable policies, while starving public services of vital resources. Sir Keir has a difficult job because the country is in a terrible state. Putting things right will take time. But that morose message has been soured by a performance of fiscal discipline, delivered without a hint of uplifting accompaniment.
The prime minister says things will get worse before they get better. The chancellor, citing “black holes” in the budget, withdraws winter fuel payments for all but the poorest pensioners and pledges more pain to come. Rachel Reeves’ argument is that government departments would outspend budgets by £22bn more than previously disclosed and that cuts were needed to compensate. This is a self-imposed restriction that stems from ill-advised fiscal rules. The force of that constraint, and the zeal with which it is applied as austerity across Whitehall, is also a matter of political choice.
Downing Street strategists argue that adherence to Tory spending limits was a non-negotiable condition of persuading the public that Labour could be trusted on the economy. Maybe so, maybe not. There is no way to test the counterfactual scenario, where Ms Reeves fought the election with a wider range of tax-raising options still open. However, the decision to lean into unpopularity so hard, so fast and without a countervailing narrative of hope looks like poor strategic judgment.
Labour’s election manifesto contained plenty of reasons to expect a substantial departure from a grim status quo. A marked progressive shift was promised in the areas of workers’ rights, a robust commitment to net zero, improved relations with the rest of Europe and, perhaps most significantly, readiness to embrace a more interventionist model of economic management, including public ownership of utilities.
The Starmerite script contains rather too much fiscal conservatism, but the hope is that there is a social democratic framework at its core. It expresses the opposite of the Tory conviction that government’s main function is to facilitate market supremacy and then get out of the way. Many of the activists and MPs gathering in Liverpool feel unsure which of the two strands – cringing continuity or bold departure – will dominate. Sir Keir’s task is to answer in terms that give hope of meaningful change to come.
Politics
Newcastle council leader Nick Kemp resigns following bullying row
A council leader has resigned after a bullying accusation was made against him.
On Tuesday it was revealed the Labour leader of Newcastle City Council, Nick Kemp, who is currently on sick leave, was the subject of a complaint made by director of investment and growth Michelle Percy.
In an email to his colleagues, Kemp wrote that he “strenuously” refuted any allegations of bullying and said that recent events had “had a significant and detrimental effect on me and my family”.
He will step down with immediate effect as council leader and be replaced on an interim basis by his deputy Karen Kilgour, who has assumed his duties for the past week.
Kemp wrote to Labour colleagues to inform them of his resignation.
In that email, a copy of which has been seen by the Local Democracy Reporting Service, Kemp said that he no longer felt “able to operate in good faith in the position of leader of Labour Group and of Newcastle City Council”.
He also claimed that he had fallen victim to “efforts of others to deliberately discredit and undermine my work”.
New leader
Kemp has been a prominent figure in city politics for many years, having served as a councillor for Byker since 2002.
The Labour group, which has run the city council since 2011, is expected to elect a new leader over the coming weeks, although details of how that contest will proceed have not yet been announced.
A new leader can only be formally appointed at a future meeting of the full council, the next of which is scheduled for 2 October.
Kemp will continue to sit as a city councillor and said he planned to return to representing the residents of Byker once his health had improved.
Councillor Colin Ferguson, the leader of the official Liberal Democrat opposition in the council, said Kemp had done the “right thing” by stepping aside.
Ferguson added: “But his statement makes clear that tensions will remain in the Labour Group that must urgently be addressed for the sake of Newcastle residents, who risk being badly let down by Labour infighting.”
He reiterated his party’s calls for an independent inquiry into the political culture at the Civic Centre.
“Picking a new leader cannot be an opportunity for Labour to brush the culture under the carpet that led the city to this point,” Ferguson added.
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