Category Archives: Bragg

Russians Bragged That They Could Use Michael Flynn to Influence Trump, CNN Reports

Mother Jones

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Russian officials believed that Michael Flynn was an ally whom they could use to influence President Donald Trump, CNN reported Friday night. The network cites “multiple government officials” who were aware of conversations within the Russian government that were intercepted during the 2016 campaign.

“This was a five-alarm fire from early on,” one former Obama administration official said, “the way the Russians were talking about him.” Another former administration official said Flynn was viewed as a potential national security problem.

The conversations picked up by US intelligence officials indicated the Russians regarded Flynn as an ally, sources said. That relationship developed throughout 2016, months before Flynn was caught on an intercepted call in December speaking with Russia’s ambassador in Washington, Sergey Kislyak. That call, and Flynn’s changing story about it, ultimately led to his firing as Trump’s first national security adviser.

Flynn resigned from the position of National Security Adviser in February, 18 days after then-Deputy Attorney General Sally Yates warned the White House that Flynn had lied to Vice President Mike Pence about his contact with the Russian ambassador and, as a result, could be a target of blackmail.

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Russians Bragged That They Could Use Michael Flynn to Influence Trump, CNN Reports

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Industrial Production Is Not Really "Surging"

Mother Jones

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Donald Trump is bragging today that industrial production “surged” in April. And sure enough, it was up 1.7 percent compared to last year. That’s not bad. But you know what else increased since last year? The population of the United States. Here’s the industrial production index from the Federal Reserve adjusted for population growth:

That tiny blip at the end represents the surge. So don’t get too excited. Per capita industrial production in the US has been roughly flat for the past four years and nothing that Trump has done so far—or is likely to do—has much chance of changing that dramatically.

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Industrial Production Is Not Really "Surging"

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A Quick Look at Manufacturing Jobs

Mother Jones

Donald Trump is bragging today that “Manufacturing openings, hires rise to highest levels of the recovery.” Well of course they have. As long the economy keeps expanding, openings will set a new record every month, more or less. Like so:

If you want to know how manufacturing is really doing, you want to look at it as a percentage of all job openings. Here you go:

Meh. Manufacturing job openings have been declining since 2012, but have shown a small uptick since the start of 2016. Nothing to get excited about, though.

I know, I know: who cares? Well, what can I tell you? I’m just trying to take my mind off the whole, incredible Comey thing. It’s mind boggling. Maybe today is a good day to start sniffing glue.

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A Quick Look at Manufacturing Jobs

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Puerto Rico Files for Bankruptcy the Day After Trump Admin Brags About Blocking Funds

Mother Jones

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After a day of sometimes violent demonstrations in San Juan protesting austerity measures and government handling of the debt crisis, Puerto Rico governor Ricardo Rosselló, announced Wednesday morning that he would move the island’s crushing debts into the bankruptcy-like process created under federal legislation to deal with the crisis. Unlike public entities and cities in the states, Puerto Rico, essentially a colony of the US, is prohibited from filing for bankruptcy under federal law. This legislation created a different option that allows a federal court to restructure more than $70 billion—the largest such restructuring in the history of the US municipal bond market.

The announcement comes after a flurry of lawsuits filed against the island’s government by creditors Tuesday morning, the first to land after local officials’ proposal for partial repayment of the debt was rejected by lenders last weekend. Under legislation passed last summer, known as the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), the island had until May 1 to negotiate a plan to address the debts while also providing basic services for the island’s 3.5 million residents. The deal from the local government last Friday offered as much as 77 cents on the dollar to some lenders while offering 58 cents on the dollar to others, according to Bloomberg, but the lenders called the deal unworkable. Hedge funds such as Aurelius Capital Management and Monarch Alternative Captial, and Ambac Financial Group, Inc., an insurer that owned Puerto Rican bonds, had been prevented from filing suit until May 1 under PROMESA.

The suits came a day after thousands took the streets in a national strike throughout Puerto Rico protesting cuts proposed by the board that was created under PROMESA, which increased water rates, while cutting funds to schools, public-sector jobs and pensions, health care spending, and the island’s university system totaling roughly $450 million over three years. After a day of largely peaceful protests, police used tear gas and pepper spray to disperse some protesters, according to local reports, and at least 17 people were arrested. Students and other protesters have demanded an independent audit of the debt, among other things, as the island grapples with the issue.

“As time goes by and austerity measures start to strike on more and more people, people are going to stand up and respond to what is the government violence against the people who are left in very difficult conditions,” Mariana Nogales Molinelli, an attorney in Puerto Rico and former candidate for the island’s non-voting representative to the US Congress, tells Mother Jones.

Nogales Molinelli says that the cuts by both the government and the control board to public sector workers and collective bargaining rights have made a lot of people angry—and not just university students. On April 18, the Puerto Rican Senate approved a bill that eliminated the publicly-funded audit commission responsible for insuring the debts were issued lawfully and were not in violation of island’s constitution. Some of the protesters at the capital were retired police, according to Joel Cintrón Arbasetti, a journalist with the Center for Investigative Reporting in Puerto Rico. Nogales thinks more police will join the protests.

“My guess is that part of the police force will be joining the people because they are going to be affected also,” Nogales Molinelli says. “Their kids’ schools will be closed, and they will not have enough medical insurance. The situation could explode because of all the austerity measures and they are going to have to work under much more pressure and in conditions that are going to be very difficult for them.”

Nogales says there have also been reports of some violent responses by police towards protesters and those perceived to be organizing protests. During a protest at the capital, she saw a police officer take a protester’s sign and hit her over the head with it. The Puerto Rico Police Department is currently under a consent decree with the US Department of Justice in an effort to become more professional and accountable after years of documented corruption and violence against the population.

Back on the mainland, Puerto Rico has been a political football for Trump and Congress during negotiations for a federal spending bill, with the president implying that Puerto Ricans, who have been US citizens for 100 years, were not.

When the budget deal was announced Monday morning, Democrats managed to get “an emergency injection of $295 million” to help shore up the island’s Medicaid program through the end of the year, according to Reuters. On Tuesday, Office of Budget and Management Director Mick Mulvaney bragged during a White House Press briefing that Republicans and the president had actually prevented any money from going to Puerto Rico, and that the $295 million had come from funds not previously allocated.

“You had the Democrats crying out that they got $295 million for Puerto Rico,” Mulvaney told reporters, “Did not cost the taxpayer a penny. They wanted new money, they wanted a bailout. We wouldn’t give it to them.”

It’s unclear how the restructuring will proceed as the provision in PROMESA has never been used, but the New York Times reports that Chief Justice John Roberts of the US Supreme Court will now appoint a bankruptcy judge to handle the case.

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Puerto Rico Files for Bankruptcy the Day After Trump Admin Brags About Blocking Funds

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Jason Chaffetz Is Fleeing Scandal—But Maybe Not His Own

Mother Jones

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Jason Chaffetz is so ambitious that his last name is a verb.

In the political world, to Chaffetz means to throw a former mentor under the bus in order to get ahead, and various prominent Republicans, from former Utah governor and presidential candidate Jon Huntsman Jr. to House Majority Leader Rep. Kevin McCarthy, have experienced what it’s like to get Chaffetzed. But the five-term Utah Republican and powerful chairman of the House oversight committee shocked Washington on Wednesday when he announced he would not seek reelection in 2018 or run for any other political office that year in order to spend more time with his family.

“I am healthy. I am confident I would continue to be re-elected by large margins,” he said in a statement. “I have the full support of Speaker Paul Ryan to continue as Chairman of the Oversight and Government Reform Committee. That said, I have made a personal decision to return to the private sector.”

His surprise announcement has fueled speculation of a possible scandal, though Chaffetz told Politico there’s nothing to the rumors about a skeleton in his closet: “I’ve been given more enemas by more people over the last eight years than you can possibly imagine… If they had something really scandalous, it would’ve come out a long, long time ago.”

Top House Republican Won’t Respond to Call to Probe Trump’s Conflicts of Interest

Chaffetz, who on Thursday said he might not finish out his term, has been considered a contender for Utah governor in 2020 and perhaps one day for the presidency. But the early days of the Trump administration haven’t been easy for him. The once-brash congressional inquisitor has twisted himself into a pretzel trying to explain why he hasn’t been investigating President Trump, the most conflict-ridden commander-in-chief in modern US history. And the 50-year-old congressman has experienced an unexpected level of outrage in his own deep red district.

By heading back to the private sector Chaffetz risks lowering his public profile, which could impede any gubernatorial effort. No one knows this better than Chaffetz, who sought the spotlight in DC and who built a career in public relations before running for Congress in 2008.

But Chaffetz’s rise in politics was hardly conventional, and it was aided by a publicist’s eye for reputational pitfalls and opportunities. His curious retreat should not lead any political observers to count him out of future contests. In fact, it’s probably best interpreted as a sign that he’s very carefully planning his political future—not abandoning it.

From the beginning, Chaffetz didn’t chart an obvious path to political power. The great-grandson of Russian immigrants, he was born in California and raised Jewish. He converted to Mormonism during his college years at Brigham Young University, the Mormon Church-owned school where he played on the football team as a place kicker.

Chaffetz majored in business and minored in communications, and after graduating he went to work for a local multilevel marketing company—think Amway—called Nu Skin, where he worked in PR. At the time that he joined, the company had some pretty significant public-relations needs. It was facing class-action lawsuits and investigations by state attorneys general and the Federal Trade Commission, all related to allegations that the company was operating as a pyramid scheme. (The company has been Chaffetz’s biggest campaign donor.)

Chaffetz spent more than a decade at Nu Skin before leaving the company abruptly in 2000 without any obvious next stop. He worked briefly in the coal industry, unsuccessfully applied to join the Secret Service, and eventually started a marketing firm with his brother called Maxtera.

In 2004, when Jon Huntsman Jr. ran for Utah governor, Chaffetz volunteered for his campaign; Chaffetz, whose mother died of breast cancer in 1995, says he was impressed with the work Huntsman had done to advance cancer treatment. Huntsman eventually asked Chaffetz to become his campaign’s communications director, and then his campaign manager. When Huntsman won the election, he appointed Chaffetz as his chief of staff. But Chaffetz only lasted a year in the job.

For the next two years, Chaffetz doggedly laid the groundwork to challenge Chris Cannon, a six-term incumbent Republican congressman—a politician whose campaigns Chaffetz had previously volunteered for. Cannon, who hailed from a well-connected political family, was conservative, but he was firmly in the Republican camp that supported immigration reform. This stance put him in the crosshairs of anti-immigration activists, as well as the grassroots agitators who would become members of the tea party. Conservative pundit Michelle Malkin dubbed Cannon a “shamnesty Republican.”

Chaffetz saw an opening, and he was aided by the somewhat arcane system through which Utah Republicans, until recently, selected their congressional candidates. Districts elected about 4,000 delegates, who in turn voted for their desired candidates at the state party’s convention. The top two winners moved on to the primary, unless one marshaled 60 percent of the vote, in which case that person became the GOP nominee. The system, it turned out, was well suited to a poorly funded upstart like Chaffetz, who could initially concentrate on winning a small group of delegates rather than tens of thousands of voters.

When Chaffetz decided to run, he invited Kirk Jowers, then the director of the Hinckley Institute of Politics at the University of Utah, to breakfast. Jowers was a veteran of dozens of GOP campaigns and Chaffetz asked him if he’d help with his long-shot race against Cannon. “I said no,” Jowers recalls. “He then asked, ‘Would you be willing to be part of the campaign in any capacity?’ I said no. He said, ‘Do you think I have any chance to win?’ and I said no. He said, ‘Do you mind if I just give you a call to talk about politics and policy?’ and I said no. I couldn’t have been worse to him,” Jowers says with a laugh.

But Chaffetz persisted, calling Jowers every two weeks for the next year and a half to update him on his progress. The former place-kicker campaigned largely on a harsh, anti-immigration platform. With an army of volunteer staffers, he worked each delegate heading to the convention—twisting arms and otherwise persuading them to vote for him, though he refused to succumb to the long-standing tradition of plying them with free food. Jowers slowly realized that the determined upstart actually had a shot.

Chaffetz’s lobbying blitz was overlooked by most polls, which until the GOP convention put him at a mere 3 percent in the race, a number so small he didn’t qualify to participate in the GOP’s televised debate. When the moderator asked Jowers afterward how he thought the debate went, Jowers responded, “It was great, except you didn’t have the one who was going to win.”

Jowers was right: Chaffetz won the convention, gaining nearly 60 percent of the delegate vote and very nearly knocking out Cannon in the first round. He went on to handily beat Cannon in the primary, even though the incumbent had a more than 4-to-1 spending advantage and had been endorsed by virtually the entire Republican establishment, including then-President George W. Bush. The loss so angered Cannon that he reportedly refused to talk to Chaffetz during the transition.

Barely had Chaffetz been elected to his first term in the House when he registered a new domain name: ChaffetzforSenate.com.

Even before he was sworn in, Chaffetz managed to vault himself from the House’s backbench into the national spotlight, albeit through an unusual route: leg wrestling Stephen Colbert on the Colbert Report. The goofy segment—the type of unscripted moment that politicians typically avoid—was the beginning of a media charm offensive that would make Chaffetz popular among journalists, whom he cultivated assiduously by passing out his personal cellphone number to reporters and accepting almost any interview request. It’s all about “old-fashioned human relationships,” he told National Journal in 2015. “You’ve got to get out there and invest the time. Work with the media!” (Apparently that rule doesn’t apply to Mother Jones. Chaffetz told me twice that he’d be happy to sit for an interview for this story but then never made himself available.)

The freshman congressman also scored an early PR coup by starring in a short-lived show, Freshman Year, produced by CNN on incoming members of Congress. He was shown unfolding a cot in his office, a sign of his commitment to living in Utah rather than Washington, DC, where he refused to rent an apartment.

Even as he courted reporters and TV bookers, Chaffetz warned the GOP establishment that his election was a warning sign. In the online diary that accompanied the CNN show, Chaffetz recounted how, during his first weeks in office in January 2009, he had gotten up before a House Republican strategy session and told the assembled members, “I am your worst nightmare.” He explained how the advent of social media had allowed him to bypass the mainstream media and, with very little funding, knock off an establishment candidate.

Chaffetz’s reading of the political winds proved prescient. His election foreshadowed the rise of the tea party movement that took over the GOP in 2010, prompting the ouster of many more incumbent Republicans, including House Minority Whip Eric Cantor.

Watch Jason Chaffetz Tell Poor Americans to Choose Between iPhones and Health Care

By 2011, it looked like Chaffetz was going to need that ChaffetzforSenate.com web address. He was talking openly of challenging his state’s most venerable senior statesman, Sen. Orrin Hatch, currently the longest-serving Republican in the Senate. Despite his powerful position in Washington, Hatch was vulnerable at home. Polls showed Chaffetz had a decent chance. And another upstart tea party conservative, Mike Lee, had just knocked off the state’s other elder Republican senator, Bob Bennett, by challenging him from the right.

For months, Chaffetz held meetings and events that gave every impression he planned to challenge Hatch. The Salt Lake Tribune declared that Chaffetz had even picked a date to unveil his candidacy, September 27. But shortly before Labor Day, Chaffetz hastily organized a press conference and announced that he would not run for Senate. He said the race would be a “multimillion-dollar bloodbath” and that he’d rather spend the next 18 months doing the job he was elected to do. Still, even as he put himself out of contention, he jabbed Hatch, declaring the Utah congressional delegation “dysfunctional” and lacking leadership from the senior senator.

Tim Chambless, a University of Utah political-science professor, says the announcement caught many in Utah off guard. “That has been mystifying to us.” It suggested that something in Chaffetz’s well-laid plans had gone seriously awry.

Ultimately, Chaffetz may have underestimated Hatch, whose mild-mannered exterior belies a ruthless political operator. There’s a reason he’s served longer than any Republican senator since Strom Thurmond. Cherilyn Eagar a conservative Republican activist and local talk radio host who lives in Chaffetz’s district, echoes what various sources told me. She says Utah political insiders suspect “the Hatch campaign had gotten heavy-handed. There was a bit of information they were going to disclose if he ran. Things were going to get ugly.” (Hatch’s office did not respond to a request for comment.)

Instead of running against Hatch, Chaffetz stapled himself to Mitt Romney, serving as a regular campaign surrogate for the failed GOP presidential nominee, whom he endorsed over his former mentor, Gov. Jon Huntsman Jr.

Chaffetz, now running for reelection in 2012, quickly found other ways to nab the spotlight. Before the FBI had secured the Benghazi compound following the September 11 attacks that killed Ambassador Chris Stevens and three other Americans, Chaffetz demanded to visit the scene in his capacity as the chairman of the House oversight subcommittee on national security and foreign operations. He dashed off to Libya less than a month later—without any Democrats, as the oversight committee’s policy dictates—to supposedly conduct an independent investigation.

The closest he got to the crime scene was Tripoli, 400 miles away. Chaffetz, who had previously voted to cut $300 million from the State Department’s budget for embassy security, claimed the purpose of his trip was to discern whether the Obama administration had denied requests for more security for the Benghazi compound. He uncovered little of substance, other than discovering that the State Department was a bit lax in allowing neighbors to throw trash over the embassy wall in Tripoli. The overeager gumshoe also managed to disclose the existence of a secret CIA base on the Benghazi compound during a subsequent hearing on the attacks.

Chaffetz’s Benghazi grandstanding helped to make him a right-wing hero, but it didn’t earn him the spot he desired on the select committee created by the Republican-led Congress in 2014 to investigate the Benghazi attacks.

By then, Chaffetz had already set his sights higher. He launched a campaign to win the chairmanship of the House oversight committee, then run by the bellicose Rep. Darrell Issa (R-Calif.), whose term on the panel was expiring in 2015. Issa had seen potential in Chaffetz and had helped him early in his congressional career by making him the chairman of the national security subcommittee. Chaffetz wasn’t in line for the oversight job by seniority, so launching a bid for this plumb post—a platform for politicians seeking to grab headlines—took some chutzpah.

Within the Republican caucus, Chaffetz campaigned for the chairmanship as the anti-Issa, implicitly critiquing the oversight chairman’s combative style and suggesting that he could bring to the committee an element of media savvy that Issa lacked. Once again, Chaffetz stabbed a mentor in the back and won. In 2015, he became one of the most junior members of the House ever to chair the high-profile committee.

“Do Your Job!” Hundreds of People Shout Down Jason Chaffetz Over Lack of Trump Probe

After assuming the chairmanship, one of his first moves was taking down the portraits of past chairmen, including Issa, that hung in the hearing room. Issa was not pleased. “It’s not a big deal, but it’s just indicative of what his mindset was and how self-centered he is,” says Kurt Bardella, who worked for Issa as the committee’s spokesman. Fellow lawmakers, Bardella notes, were repelled that “Jason would be so willing to throw under the bus someone who really tried to help mentor him, for his own gain.”

Running over people who helped him on the way up was becoming something of a pattern for Chaffetz. He’d chaired the oversight committee for less than year before launching an audacious bid for speaker of the House when John Boehner retired. Aside from being a very junior member of Congress, Chaffetz’s bid for the speakership also meant he would be running against his friend and former champion, Rep. Kevin McCarthy. As House Majority Leader, McCarthy had helped to launch Chaffetz’s rise in the House, dispensing with old seniority rules and working to promote telegenic young legislators, including Chaffetz. Hearing the news about the Chaffetz challenge, Jon Huntsman tweeted: “.@GOPLeader McCarthy just got “Chaffetzed.” Something I know a little something about. #selfpromoter #powerhungry

Chaffetz dropped his bid for speaker after Rep. Paul Ryan was cajoled into entering the race. He returned to his oversight committee work with a renewed zeal, threatening to impeach the head of the IRS over his handling of the nonprofit status of tea party groups and suggesting there might be grounds to remove President Barack Obama from office over Benghazi. He devoted a portion of the oversight committee’s website to enumerating the bureaucrats he claimed to have gotten fired—Salt Lake Tribune columnist Paul Rolly described this list as a “trophy case.”

Not all his targets have gone quietly into the night. In 2015, Chaffetz launched an investigation into problems with the Secret Service after a pair of drunk senior agents crashed a car into a White House barricade. Not long afterward, the Daily Beast reported that Chaffetz had been a wannabe agent himself prior to his career in politics but his application had been rejected in favor of a “BQA,” or “better qualified applicant”—a revelation leaked from inside the agency. Chaffetz told the Daily Beast that he believed he was rejected because he was too old. (He was in his mid-30s at the time, and the agency cutoff for agents was 37.)

A later investigation found that more than 45 people within the Secret Service had taken a look at his protected personnel file. Referring to the file, then-Assistant Director Edward Lowery emailed another director that March, saying, “Some information that he might find embarrassing needs to get out. Just to be fair.”

The election of Donald Trump seriously interfered with Chaffetz’s plans.

During the campaign, Chaffetz couldn’t make up his mind about the GOP nominee. After audio of Trump bragging about sexual assault during an Access Hollywood taping was published, Chaffetz disavowed the real estate mogul. “I can no longer in good conscience endorse this person for president. It is some of the most abhorrent and offensive comments that you can possibly imagine,” Chaffetz said. “My wife and I, we have a 15-year-old daughter, and if I can’t look her in the eye and tell her these things, I can’t endorse this person.” But Chaffetz soon reversed his stance, writing on Twitter that he’d still be voting for Trump. “HRC is that bad,” he wrote. “HRC is bad for the USA.”

HRC, a.k.a. Hillary Rodham Clinton, would have been good for Chaffetz’s political fortunes, however. He had been expecting to use his remaining tenure on the oversight committee, which expired in 2019, tormenting President Clinton. The month before the 2016 election, Chaffetz told the Washington Post that Clinton had provided him with “a target-rich environment. Even before we get to Day One, we’ve got two years’ worth of material already lined up.”

But after Trump won, Chaffetz seemed slow to acclimate to the new political environment. The day of Trump’s inauguration, Chaffetz Instagrammed a screen grab from Fox News, showing him shaking hands with Clinton at the ceremony. Under the photo he wrote, “So pleased she is not the President. I thanked her for her service and wished her luck. The investigation continues.”

The post—which earned him widespread scorn—may have been the first sign that Chaffetz was misreading the national mood and especially the attitudes of his largely Mormon constituents. While they largely disliked Clinton—she won a mere 23 percent of the vote in his district—they also harbored concerns about Trump, whose ethical conflicts and curious associations with Russia were rapidly piling up.

On February 9, Chaffetz got a wake-up call when he returned to Utah for a town hall, where he was besieged by a hostile, heckling crowd, shouting “Do your job,” and “We want to get rid you.” These listening sessions are typically subdued affairs, but this one drew hundreds of angry constituents, who demanded to know why the chairman of the House oversight committee was not doing more to investigate President Trump. (A pair of Utah Republicans recently bought a billboard on the highway to Chaffetz’s Utah office that asks, “Why won’t Chaffetz investigate the Trump-Russia connection?”)

So pleased she is not the President. I thanked her for her service and wished her luck. The investigation continues.

A post shared by Jason Chaffetz (@jasoninthehouse) on Jan 20, 2017 at 12:31pm PST

Chaffetz, who during the Obama administration reveled in launching headline-grabbing investigations, suddenly seemed reluctant to unleash his committee’s typically aggressive investigative powers. Trump’s conflicts of interest, he claimed, fell largely outside his jurisdiction. “I know it’s surprising and frustrating to Democrats, but the president is exempt from these conflicts of interest,” he told CNN’s Wolf Blitzer. As for the Russia connections, particularly those related to former national security adviser Michael Flynn, Chaffetz said there was no need to further probe Flynn because he’d been fired. “It’s taking care of itself.”

“He is in an unenviable position,” Chris Karpowitz, a political-science professor at Brigham Young University, told me weeks before Chaffetz’s surprise announcement that he was giving up his seat. “He’s still trying to figure out what his role is in a government in which Republicans control everything. I think he used the fact that he could investigate an administration of an opposing party to his advantage during the Obama years that allowed him to be in front of the cameras repeatedly, and to be seen as pursuing the interests of the Republican Party. But I think what has people, or at least some people, in his district concerned is the appearance of a double standard, that he was very eager to investigate Hillary Clinton and has been extremely hesitant to pursue serious questions about the Trump administration.”

Chaffetz’s district is one of the reddest in the nation, and he’s used to being popular at home. He was reelected last November with nearly 75 percent of the vote. But after four easy reelection campaigns, his poll numbers have plunged to their lowest levels ever. Before he announced that he would not seek reelection, opponents on his left and the right were lining up to take him on. Trump nemesis Rosie O’Donnell recently donated $2,700—the maximum allowed by law—to Chaffetz’s Democratic opponent, Kathryn Allen, giving her fledgling campaign a Twitter boost that has helped Allen rake in more than $500,000 in contributions. The former independent presidential candidate, Evan McMullin, who launched his anti-Trump effort in Utah, had suggested he might consider challenging Chaffetz or Hatch.

Even so, Chaffetz would likely prevail in a reelection bid. But that doesn’t mean the next two years would be a breeze for the ambitious congressman.

“I told him on election night that he just miraculously had gone to having the best job in America to the worst job in America, and that has been prophetic,” says Utah political expert Kirk Jowers, who now serves as a corporate vice president for doTERRA, a Provo-based multilevel marketing company. “He has almost the perfect rainbow of hate. Liberals will never think he’s doing enough in that position. And of course the alt-right may think anything he does against President Trump is feeding into this frenzy against their president. It has put him in a place where it’s very tough to do right by anyone.”

The current political atmosphere, in which Republicans control Congress and the White House, mainly holds downsides for Chaffetz, who has flourished as an opposition figure. Historically, the president’s party often suffers big losses in midterm elections, and early signs show that Democrats are gaining momentum in unexpected places, including deep-red Kansas.

Chaffetz, a canny political operator, has surely read the tea leaves, wagering that it is in his best interests to sit out the bruising political fights of the Trump administration’s first term lest Trump bring Chaffetz down with him. Given Chaffetz’s talent for self-promotion, it’s likely that he won’t veer too far from the public eye. Talk on Capitol Hill is that he may take the path of other high-profile members of Congress and nab a lucrative contract with one of the networks, where he can maintain his visibility, build up his bank account, and bide his time for the right moment to get back in the political game. Chaffetz has been less than subtle in hinting he’s interested. “I’d be thrilled to have a television relationship,” Chaffetz told Politico on Thursday.

But even as he announced that he was stepping away from politics, Chaffetz and his supporters seemed to be quietly planning his political future. In early April, his campaign committee registered the domains Jason2028.com and JasonChaffetz2028.com.

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Jason Chaffetz Is Fleeing Scandal—But Maybe Not His Own

Posted in alo, Bragg, FF, G & F, GE, Jason, LAI, LG, ONA, PUR, Radius, Ultima, Uncategorized, Venta | Tagged , , , , , , , , , , , | Comments Off on Jason Chaffetz Is Fleeing Scandal—But Maybe Not His Own

This Man Can Help You Escape the IRS Forever

Mother Jones

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In January, New Zealanders were surprised to discover that Peter Thiel, the billionaire PayPal co-founder and Donald Trump adviser whose libertarian proclivities and social quirks were lampooned on HBO’s Silicon Valley, had quietly become one of them during a 2011 ceremony in Santa Monica, California. Thiel, who owns real estate in New Zealand, secured an exception from the country’s residency requirement by emphasizing his business and philanthropic clout, his investments in two Kiwi companies (totaling $7 million), and his donation of nearly $1 million to a local earthquake relief fund. “We do not sell our citizenship; it is earned,” New Zealand’s Ministry of Internal Affairs claimed after the news broke. Subsequent reports speculated that Thiel, besides being a huge Lord of the Rings fan, viewed the country as a survivalist haven in the event of an apocalypse. “I have found no other country that aligns more with my view of the future” is all Thiel would say.

Thiel’s little secret came as no surprise to David Lesperance. The Canadian-born lawyer is among the world’s leading champions of transnational exit plans for the superwealthy. Business is booming. Lesperance says he has expatriated more than 300 ultrarich Americans to date—he calls them “golden geese”—and has set up contingency plans for countless others. Thiel is not a client, but Lesperance says several household-name techies are. Mad Max scenarios aside, their goal is tax avoidance. If that means giving up an American passport, so be it.

Lesperance says his golden-geese range in net worth from about $25 million all the way up to (he Googles it) $19 billion. He won’t discuss his clients by name, but they fall into three categories: The first includes company founders and CEOs concerned with succession planning, strategic philanthropy, and the preservation of wealth across generations. Next are people “who sing a song or act or kick or hit a ball”—including several European soccer pros—who earn very high incomes for an “unknown yet finite” period of time. And then there are the “masters of the universe”—the hedge funders, private-equity guys, and venture capitalists.

The latter are beneficiaries of the carried-interest loophole, an accounting trick that treats their compensation as capital gains, which are taxed at a far lower rate than regular income. Both Trump and Hillary Clinton repeatedly promised to close this loophole, and while the president’s Goldman Sachs-packed Cabinet suggests that carried interest isn’t going anywhere, hedgers gonna hedge. “It is really the uncertainty about the future that is driving people like Peter Thiel,” Lesperance says.

A handful of relatively stable nations court wealthy foreigners with sweet tax deals if they become citizens. Poland is a good prospect, Lesperance says. Ditto Italy, Switzerland, Belgium, and Portugal—where “they will not tax you on income and capital gains for 10 years.” Ireland has attracted seven members of the Getty clan, as well as Campbell’s soup heir Jack Dorrance III and Robert Dart, whose family empire produces McDonald’s packaging. (The United States doesn’t offer these kinds of tax breaks to would-be Americans, but its EB-5 visa program gives green cards to immigrants who make a $1 million business investment. American real estate developers—including Trump—have used EB-5 visas to capitalize their projects.)

Lesperance also points out that America is the only nation besides Eritrea that taxes people based on citizenship, not residency. This means an expat living and earning income in, say, England, is taxed on those earnings by both countries. The London-based filmmaker and Monty Python alum Terry Gilliam ditched his US citizenship years ago for precisely this reason. “I got tired of paying taxes in a country I don’t live in,” he told me. “Then I discovered that when I died, my wife would probably have to sell our house to pay for the taxes in America.”

But big names who bail on America can face blowback. In 2012, Facebook co-founder Eduardo Saverin set off a firestorm after he relinquished his US citizenship and relocated to Singapore in advance of the social network going public. Democratic Sens. Charles Schumer and Bob Casey quickly introduced the Ex-Patriot Act to punish erstwhile Americans such as “Mr. Saverin” who, as Schumer put it in a speech on the Senate floor, have “chosen to disown the United States to save some money.” Had it passed, the bill would have permanently barred such former citizens from reentering the country, even as tourists, and levied a capital gains tax of 30 percent on their sales of US assets, retroactive for 10 years.

In Flight of the Golden Geese, a 2015 book Lesperance co-authored with the British economist Ian Angell, he forcefully argues that overtaxing the 1 percent is counterproductive. Sure, the ultrarich may pay lower rates than Warren Buffett’s secretary, but they still account for nearly half of federal income tax revenue. Every time Uncle Sam loses a goose, he warns, federal coffers take a disproportionate hit. Enacting new millionaires taxes, he claims, “will not generate more tax dollars, but will rather most likely have the completely opposite effect.”

Lesperance was raised in Windsor, Ontario, within spitting distance of Detroit. His father, an engineer for General Motors, built an early computer system to track car parts flowing back and forth, so “I grew up at the breakfast table with cross-border issues.” During his college years, his dad helped him land a summer gig with Canadian customs, interrogating drivers headed in from the United States. Lesperance later paid his way through law school at the University of Saskatchewan by stamping passports at the Toronto airport.

He got into the golden-goose game as a newly minted lawyer in 1990, when he was approached by a Detroit attorney who wanted to quit the United States for tax reasons. The client had already stowed part of his $15 million net worth in an “offshore bucket” and purchased citizenship in St. Kitts and Nevis. Lesperance helped him relinquish his US passport and set up permanent residency in Canada. For three years, the client commuted daily from Windsor to Detroit to wrap up his business while still fulfilling Canada’s residency requirement. He then declared himself a nonresident citizen of Canada and moved to Australia, where a retiree incentive program permanently exempted his offshore trust from taxation. “I thought it was very cool and very cute,” Lesperance says.

He also thought it was a one-off. But referrals began trickling in, aided by a mid-1990s Forbes article naming two of his clients who had fled the taxman. Overall, expatriations of wealthy Americans averaged well under 1,000 a year until 2010, when the number abruptly doubled thanks to the expiration of the Bush tax cuts and the enactment of the Foreign Account Tax Compliance Act, which made it difficult for Americans living abroad to conceal their foreign earnings from the IRS. These golden-goose expatriations hit 5,411 last year—a record high. Now Lesperance spends most of his time arranging new citizenships. One client, he told me, has collected nine passports—for the bragging rights, mainly: “It had gone far beyond prudence.”

It was probably inevitable that the lawyer would one day act upon his own counsel. When we first spoke, in 2015, Lesperance had arranged a backup citizenship for himself, but he wouldn’t say where. That goose has now flown. You can find him in sunny Portugal.

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This Man Can Help You Escape the IRS Forever

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Immigration and the Economy

Mother Jones

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This post isn’t about immigration and the economy. It’s about immigration. And it’s about the economy. First up, here’s a survey from Pew Research about positive attitudes toward the economy:

Here’s the interesting part. It’s normal to assume that people think better of the economy when one of their own is president. But is it true? During the recovery from the Great Recession, Republicans consistently rated the economy worse than Democrats. When Trump took over, their views suddenly skyrocketed, with a full 61 percent now having a positive view of the economy. Apparently Republicans do indeed view the economy through a partisan lens.

If Democrats followed that pattern, their view of the economy would have plummeted in 2017. But it didn’t. It went up again, at about the same rate as previous years. Democrats, it turns out, don’t view the economy solely through a partisan lens. If you’re looking for an explanation, my guess is Fox News and the rest of the conservative disinformation machine. You can take your own guess in comments.

And now for immigration. Last month, DHS Secretary John Kelly bragged that illegal border crossings were down. This month he crowed about it again. But a sharp-eyed reader pointed out that there’s really nothing unusual about the latest numbers:

Border apprehensions in March have been on a steady downward trend for nearly two decades. This year’s numbers are just following that trend. Last month I thought that President Trump’s fear campaign might be having a real impact, but now I doubt it. There’s no special reason at all to think that anything he’s doing is having much effect at all.

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Immigration and the Economy

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Clean Up On Aisle Trump

Mother Jones

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In early March, a procession of lawyers in boxy suits and overcoats crowded into a chandeliered dining room at Tony Cheng’s in Washington, DC’s Chinatown. Justice Department attorneys passed heaping plates of beef with broccoli and spring rolls to corporate law firm partners and think tank fellows in bow ties. A sign taped to the restaurant’s entrance announced the event was sold out, and regulars of the Federalist Society’s monthly luncheon marveled at the turnout. The featured guest was Donald F. McGahn II, who had recently ascended to one of Washington’s most influential legal perches, White House counsel.

After the fortune cookies were distributed, C. Boyden Gray, a former White House counsel to George H.W. Bush and a Federalist Society board member, approached the microphone. McGahn was stuck at the White House dealing with a “pressing matter,” he informed the disappointed audience. Gray didn’t elaborate. He didn’t need to: The night before, the Washington Post had revealed that Attorney General Jeff Sessions, who had told the Senate that he had no contact with Russian officials during the presidential campaign, had in fact met twice with Russia’s ambassador.

Trump Might Be a Dream Come True for Megarich Campaign Donors

Hours after the Federalist Society luncheon let out, Sessions recused himself from ongoing investigations into ties between the Trump campaign and Russia. President Donald Trump spent the next day fuming at his staff—particularly McGahn, who had to explain to the incensed commander in chief that Sessions’ recusal was the AG’s decision alone. Early the next morning, Trump rattled off a series of tweets accusing Barack Obama of wiretapping Trump Tower during the presidential campaign. McGahn was soon on a plane to Mar-a-Lago; his surreal task was to figure out how the administration might retroactively prove an explosive allegation that Trump had tossed out without evidence.

As the top legal adviser to the president, the White House counsel is one of the most vital positions in any administration. The counsel vets executive orders and nominees, reviews the legal aspects of national security matters, and monitors compliance with federal ethics laws. Rarely does an order or a memo leave the White House without the counsel’s sign-off. Gray says that during his time as counsel, his office received four times more paperwork than any other White House department. (This was before email.) A former Obama White House counsel told me, “People used to say to me, ‘You and the chief of staff are the only two people who really touch everything.'”

Above all, the White House counsel’s role is to keep the president out of trouble, legal or otherwise. With Trump, that’s a Herculean task. McGahn has represented scandal-plagued Republicans—Tom DeLay was a client—but the controversy and chaos engulfing the Trump White House are another order of magnitude. McGahn represents the most conflict-ridden commander in chief in the nation’s history. He has spent his short time in the White House constantly rushing to put out fires.

On paper, McGahn, who is 48, wasn’t an obvious choice for White House counsel. He has never previously worked in a presidential administration, and he has all the attributes of the Washington elites whom Trump has denounced. (One attendee of McGahn’s 2010 wedding says it was like “a convention for election lawyers.”) Trump vowed to get big money out of politics, while McGahn has spent much of his legal career helping candidates and donors stretch the limits of campaign finance laws. “The irony is that Trump campaigned on ‘draining the swamp,'” says Dan Weiner, a lawyer at the Brennan Center for Justice, “but it’s my impression that Don thinks the ‘swamp’—at least as many good-government types would define it—is necessary and constitutionally protected.” (McGahn did not respond to multiple requests for comment.)

Yet on another level, McGahn is ideally suited for a job in the Trump White House. The administration’s deregulatory agenda—the “deconstruction of the administrative state,” as chief strategist Stephen Bannon put it—is perfectly in sync with McGahn’s libertarian views. To carry out that mission, he has put together a team of nearly 30 lawyers, many of whom are experts in federal law and how to unravel it. McGahn has plenty of experience dismantling the bureaucracy from within: That was precisely the program he pursued for five years while serving on the Federal Election Commission. “He didn’t care about the institution, and he seemed mostly interested in grinding its work to a halt,” says David Kolker, a former associate general counsel at the FEC who worked alongside McGahn. “Don had a blow-it-up mentality.”

Before recent renovations, visitors to the ninth floor of the FEC’s headquarters, where the commissioners have their offices, were greeted by a wall of black-and-white photographs—headshots of all 23 commissioners who had served the agency since its founding in 1975. All except one.

McGahn, who was on the FEC from 2008 to 2013, had refused to sit for his official photo. It was his way of dispelling the notion that he had any affinity for his employer. The way he saw it, he was reining in an overzealous bureaucracy that trampled the rights of ordinary Americans. No commissioner has done more to change the agency.

In the late 1990s and early 2000s, McGahn carved out a niche as the go-to lawyer for House Republicans and spent nearly a decade representing the National Republican Congressional Committee, the political arm for House Republicans. When House Majority Leader Tom DeLay was accused of ethics violations, partly in connection with the Jack Abramoff lobbying scandal, McGahn led his legal defense. (DeLay resigned from Congress but was exonerated in 2013.) In 2005, McGahn hung his own shingle and built a modest practice focusing on election-related cases. (He’d convinced the NRCC to keep him on retainer as its general counsel—an unorthodox and lucrative arrangement.) He developed a reputation as a fierce ideologue with a deep understanding of the law, but within the clubby network of election lawyers, he cut an odd figure. He lacked an Ivy League pedigree, wore his hair long, and spent weekends playing guitar in local rock bands. (His latest, Scott’s New Band, which advertised itself as “one of the Mid-Atlantic region’s most exciting and flat-out FUN cover bands,” split up in December as McGahn prepared to enter the White House.) “He is kind of an iconoclast,” says James Bopp, a prominent conservative election lawyer.

Don McGahn and his band play in Ocean City, Maryland in 2011.

Republicans had floated McGahn in the 2000s to fill an open seat on the FEC. He never hid his disdain for the independent agency—a perspective that undoubtedly appealed to lawmakers who thought of the agency as a nuisance. “The original intent was for it to be a glorified congressional committee,” he said in 2001. Nodding to the fact that the commission is appointed by the same people—members of Congress—whom it regulates, McGahn acknowledged that “you have the charge of the fox guarding the hen-house.”

Congress designed the FEC to ensure bipartisanship, mandating that the six-member commission have no more than three members from either party. The commission can’t act without a four-vote majority. But in 2008, in what some commissioners call the “dark ages,” it was down to two members. Without a quorum, the agency could do little more than run its website and keep the lights on.

Senate leaders Harry Reid and Mitch McConnell cut a deal in the summer of 2008 to end the FEC’s impasse when they confirmed a slate of new commissioners, McGahn among them. From the beginning, McGahn made clear he felt no kinship with his new employer. “A lot of the staff said, ‘Welcome to the agency. It’s so nice to have you join us,'” recalls Eric Wang, an election lawyer who got to know McGahn while working for another Republican commissioner. “He made a point of saying, ‘I’m not joining you,'” making it clear that he was not there to collaborate with the career agency staff, but rather to serve as a check on them.

Watch Trump’s Top White House Lawyer Shred on the Guitar

The FEC has always suffered from partisan infighting. Still, former Democratic and Republican commissioners say they largely viewed their job as enforcing the law and finding four-vote majorities on the cases before them. That seemed to change with the arrival of McGahn and his two Republican colleagues, Caroline Hunter and Matthew Petersen, according to Ellen Weintraub, the FEC’s most senior Democratic commissioner, who recalls that they kept their deliberations to themselves and voted as a bloc. The first time Weintraub witnessed this, she thought, “What? You have one brain for the three of you?”

McGahn was seen as a domineering force on the commission. “There is no nice way to say it: At some point, McGahn will be an asshole,” conservative lawyer Steve Hoersting warned newly confirmed Commissioner Petersen in a 2008 email. “He’ll insist he knows the better course on an issue and will insist you go along. Don likes to employ the ‘trust me’ method of persuasion.”

Weintraub says it was nearly impossible to pry any information out of McGahn, who refused to return her messages or reply to her emails. He rarely seemed to be in his office. Once, Weintraub bumped into his executive assistant in the women’s restroom. “She looked at me, and without even a hello she blurted out, ‘He’s not in, I don’t know when he’s going to be in, I don’t know when I’m going to be talking to him.'”

To his critics, McGahn was on a one-man crusade to destroy the FEC from within. An analysis by the good-government organization Public Citizen found that the number of deadlocked enforcement votes spiked after his arrival, from an average of 1 or 2 percent in the early and mid-2000s to 15 percent in 2011. McGahn had no qualms about undermining the FEC’s nonpartisan lawyers—in one case, he posted a memo to the agency’s website contradicting the commission’s attorneys in an ongoing lawsuit. He bragged about disregarding parts of the law he disputed or saw as out of sync with court rulings. “I’m not enforcing the law as Congress passed it,” he told a group of law students in 2011, referring to the McCain-Feingold Act of 2002, which was partially invalidated by the 2010 Citizens United ruling. “I plead guilty as charged.”

Former FEC employees say McGahn’s hostility to the agency sometimes extended to its staff. Lawyers from the Office of the General Counsel—which issues recommendations to the commission and defends the FEC in lawsuits filed by outside parties—got the worst of it. When junior lawyers appeared before the commissioners in closed sessions, McGahn could be brutal, former FEC employees say. “I remember passing my boss notes saying, ‘Make him stop,'” one former executive assistant told me. “He would pick on not the supervising attorney, but the line attorney—like a cat would play with a mouse, swatting him.” McGahn, former colleagues recall, saw the career employees as liberal do-gooders, and he made it his mission to rein them in. “He would berate the staff,” says a former FEC lawyer. “He said they came to certain conclusions because they favored the Democrats.”

Don McGahn and Donald Trump’s son-in-law, Jared Kushner, conversing in the Oval Office. Stephen Crowley/New York Times/Redux

The FEC’s lawyers enjoyed an open line of communication with the Justice Department. The two agencies often worked different sides of the same cases—the DOJ handled the criminal side while the FEC handled the civil. Near the end of his tenure, McGahn pushed for changes to the agency’s enforcement manual so the Office of General Counsel couldn’t share information with other federal agencies without the commission’s approval. McGahn also sought to require FEC lawyers to get four votes on the commission before accessing publicly available information—such as news clips and old lawsuits—in enforcement matters. Allies of McGahn say these moves were intended to bring order to an out-of-control bureaucracy. (Both efforts were unsuccessful, though his proposals have since become de facto policy at the commission.) FEC lawyers saw McGahn’s efforts as an attempt to handcuff them. The FEC’s general counsel at the time, Anthony Herman, quit in frustration.

McGahn left the commission in September 2013 and returned to private practice. If his goal was to paralyze the nation’s election watchdog, he largely succeeded. Deadlocked votes continue. Enforcement actions and assessed fines have dropped. (The Republican commissioners tout these statistics as evidence that more candidates and committees are following the law, while Democrats say they’re proof of the agency’s failure to act.) The commission has gone more than three years without naming a new general counsel, and Congress hasn’t confirmed any new members since 2013, with one current member’s term having expired as many as 10 years ago. A 2016 survey of federal employees found that morale at the FEC was at its lowest ever. Ann Ravel, a Democratic commissioner, recently resigned two months early, weary of the FEC’s dysfunction.

McGahn is not solely at fault for the FEC’s sorry state—but those who worked alongside him or observed his time there say he deserves much of the blame. “He ushered in a strategic approach to gridlocking that agency,” says David Donnelly, president of the election reform group Every Voice, “because if an agency can’t do its job, it can’t enforce the law.”

In late 2014, McGahn met Donald Trump for the first time. He was now a partner at Jones Day and had taken on high-profile conservative clients, including the political action committee of the billionaire Koch brothers and Citizens United, the nonprofit group behind the monumental Supreme Court ruling of the same name. David Bossie, the head of Citizens United, had hired McGahn to spearhead a lawsuit against New York Attorney General Eric Schneiderman to block disclosure of its donors. (The suit ultimately lost.) As Trump mulled a presidential run, Bossie recommended McGahn as a campaign lawyer.

According to a person familiar with the meeting, McGahn reminded Trump that they had a personal connection. In the early 1980s, when the real estate mogul wanted to muscle his way into the fledgling casino industry in Atlantic City, New Jersey, he hired McGahn’s uncle Patrick, a local lawyer and political power broker. A three-time Purple Heart recipient nicknamed Piano Wire Paddy for his weapon of choice in the Korean War, Paddy McGahn and his brother Joe, a Democratic state senator, had been instrumental in bringing casino gambling to Atlantic City. Paddy, who died in 2000, paved the way for Trump’s Atlantic City expansion. When a Trump executive complained at the time about his high legal fees, Trump reportedly said, “Jack, I’m 13 and 0 with this guy.”

By the time Trump opened his first casino in 1984, however, the McGahns had undergone a conversion. Tired of operating under Paddy’s thumb, the state assemblyman for Atlantic City, Steven Perskie, had challenged Joe McGahn for his state Senate seat in 1977. The Democratic machine threw its weight behind Perskie (McGahn ran as an independent), and Perskie won the election—a betrayal in the eyes of the McGahn family. Thereafter, the McGahns were Republicans.

What the FEC?

Don McGahn, who grew up in Atlantic City, was one of Trump’s earliest campaign hires. The lawyer, though, didn’t bet entirely on Trump. In March 2015, he also took on another client: former Texas Gov. Rick Perry’s leadership PAC, seen as a vehicle for a Perry presidential run. It is not uncommon for rival candidates to be represented by lawyers at the same law firm, but rarely does the same attorney work for more than one contender, according to election lawyers I spoke to.

McGahn was in attendance for Trump’s official campaign announcement in the rose-marble lobby of Trump Tower in June 2015. It was a landmark moment in a lucrative partnership. According to an election lawyer I talked to, a presidential campaign typically pays a flat fee in the range of $25,000 to $35,000 a month for legal representation. Jones Day, according to a former Trump staffer, instead billed the campaign on an hourly basis, racking up monthly bills of as much as several hundred thousand dollars. “For the guy who wrote The Art of the Deal, Trump got totally screwed on the deal with Jones Day,” the election lawyer told me.

McGahn came to play an integral role as the race wore on. In November 2015, he beat back an attempt by the former chair of New Hampshire’s Republican Party to keep Trump off the ballot in the state. As Trump delivered his victory speech in Manchester, a beaming McGahn stood onstage with the Trump family. And it was McGahn who introduced Trump to Leonard Leo, the Federalist Society executive who oversaw the Trump campaign’s assembly of two lists of potential Supreme Court nominees as a way to win over skeptical Republicans. Polls show that Trump’s picks played a key role in convincing social conservatives to hold their noses and vote for him.

For a campaign with no shortage of drama, McGahn proved remarkably adept at ducking attention. In a rare on-camera interview with a right-wing TV network called the One America News Network on the floor of the Republican National Convention in Cleveland, he predicted that Trump would defeat Hillary Clinton and claim the presidency in November. Asked what Trump would say in his RNC acceptance speech, McGahn grinned. “I wouldn’t dare begin to guess.”

One day this winter, C. Boyden Gray passed the scrum of photographers camped out in the lobby of Trump Tower and rode the elevator up. McGahn, now the White House counsel-to-be, had sought his advice on how to represent the most unorthodox president in perhaps all of American history. Their conversation focused on the massive ethics conundrums facing President-elect Trump, Gray told me. He’d tackled ethics questions himself while working as White House counsel for George H.W. Bush, who made a fortune in the oil industry, but “I didn’t have anywhere near the complexities that Don McGahn had,” he says.

Those who know McGahn see his influence at play in the White House’s laissez-faire approach to ethics and its insistence that conflict-of-interest rules don’t apply to Trump. Trump has refused to divest from his business holdings, raising the possibility of self-enrichment by virtue of the office and violations of the Constitution’s Emoluments Clause, which prohibits a president from accepting payments from foreign governments. Trump told the New York Times in November that a sitting president “can’t have a conflict of interest” and that the law was “totally on my side.” The idea that conflict-of-interest laws don’t apply to the president “is vintage McGahn,” a former colleague told me.

McGahn’s hiring choices to oversee Trump’s sprawling ethics portfolio may be telling. As his top deputy in charge of compliance and ethics, he brought on Stefan Passantino, a lawyer perhaps best known for representing former House Speakers Newt Gingrich and Dennis Hastert in their respective ethics scandals—Gingrich for using tax-deductible money for political purposes and submitting false information to House investigators, and Hastert for failing to properly disclose that he’d paid legal bills with campaign funds in connection with the congressional page scandal. (Years later, Hastert admitted in court to abusing young boys and was sentenced to 15 months in prison for illegally paying hush money to one alleged victim.) Under McGahn, as Politico reported, the White House eschewed the traditional ethics briefing for senior staffers. After the nonpartisan Office of Government Ethics recommended that Trump adviser Kellyanne Conway be reprimanded for promoting Ivanka Trump’s clothing business, Passantino refused, arguing that many federal ethics laws don’t apply to White House employees. OGE Director Walter Shaub Jr. countered that Passantino’s assertion “cites no legal basis” and “is incorrect.”

Follow the Dark Money

Ethics haven’t been the only issue dogging McGahn and the counsel’s office. The chaos surrounding Trump’s January 27 travel ban raised the question of whether McGahn was in over his head. His attempt to clarify the order via a legal memo in federal court was panned by outside legal experts, and his case was not helped when Trump went on a Twitter tirade against the “so-called judge” who had made a “ridiculous” ruling. (If McGahn did urge Trump to curb his attacks on the judiciary, Trump didn’t listen: After the administration’s revised immigration order was blocked in court in March, Trump called the ruling “terrible” and “done by a judge for political reasons.”)

A more experienced counsel, say ex-White House lawyers and other legal experts, would have consulted federal agencies before releasing such an explosive order and stopped the president from launching verbal assaults against members of the judiciary. “One person who must bear responsibility for the awful rollout of the EO is White House Counsel Donald McGahn,” Jack Goldsmith, a former assistant attorney general at the Justice Department under President George W. Bush, wrote on the website Lawfare. If McGahn had tried to restrain Trump and failed, Goldsmith argued, then he was ineffectual; if he had not attempted to corral Trump and correct the flaws in the immigration order, he was incompetent.

Still more questions were raised about McGahn’s judgment and the White House’s vetting process when the Washington Post reported that national security adviser Michael Flynn had discussed sanctions with the Russian ambassador to the United States, and that the Justice Department had briefed McGahn about it during the transition. The next day, White House press secretary Sean Spicer told reporters that McGahn had conducted his own review and “determined that there is not a legal issue.”

Former White House lawyers were stunned. “I wouldn’t have done that,” a former Obama White House counsel told me. “I don’t know what the FBI knows. I don’t know who they’re interviewing.” Goldsmith, the former senior Justice Department lawyer, questioned how rigorous McGahn’s review could have been. The White House counsels he knew, Goldsmith wrote, “were all tough-minded but extremely prudent in dealing with legal jeopardy related to the White House, especially if that jeopardy touched someone as close to the President as his National Security Advisor.” He added, “It is far from clear that the current White House counsel has acted in this fashion.” And McGahn’s judgment was once again called into question when news reports revealed that Flynn had worked as a foreign agent on behalf of Turkish interests at the same time he served as Trump’s national security adviser—a troubling conflict that the incoming White House counsel was briefed on but declined to address.

In late March, two of McGahn’s underlings in the counsel’s office were reported to have helped supply classified intelligence reports to Rep. Devin Nunes (R-Calif.), chair of the House intelligence committee, in an attempt to support President Trump’s unfounded allegation that his predecessor had wiretapped him. The revelation raised questions about whether McGahn had played any part in this effort.

The mark of a great White House counsel, experts say, is providing sound legal advice to the commander in chief whether he wants to hear it or not. But with McGahn, the evidence so far—the lax approach to Trump’s ethics problems, the execution of the immigration order, the Flynn imbroglio—suggests a loyal lieutenant eager to please the president. “Don is an expert. He is not a lawyer who says, ‘You simply are unable to do X,'” a former Trump campaign aide told me. “He’ll look for every single type of way to be able to do X.” Which, in the end, may be the last thing this president needs.

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Clean Up On Aisle Trump

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Trump Declares “National Sexual Assault Awareness and Prevention Month”

Mother Jones

In an announcement late Friday, President Donald Trump proclaimed April as National Sexual Assault and Prevention Month, vowing to commit his administration to raising awareness on the issue and “reduce and eventually end violence” against women, children, and men.

“This includes supporting victims, preventing future abuse, and prosecuting offenders to the full extent of the law,” a statement from the White House read. “I have already directed the Attorney General to create a task force on crime reduction and public safety. This task force will develop strategies to reduce crime and propose new legislation to fill gaps in existing laws.”

“In the face of sexual violence, we must commit to providing meaningful support and services for victims and survivors in the United States and around the world.”

National Sexual Assault Awareness and Prevention month occurs every year. Here’s a reminder that Trump has been accused of sexually assaulting a string of women. During the 2016 campaign, a video emerged showing Trump bragging about groping a woman without her permission. Despite the recording, Trump defeated Hillary Clinton to become the president of the United States.

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Trump Declares “National Sexual Assault Awareness and Prevention Month”

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Watch Trump Call Obamacare Repeal "So Easy"

Mother Jones

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After a week of emergency meetings and last-minute attempts to unify their party, Republican leaders pulled their Obamacare repeal bill from the House floor Friday when it became clear they didn’t have enough support to pass.

The decision comes as a major defeat for President Donald Trump, who during the campaign bragged that Obamacare repeal would be “so easy.”

“Together we’re going to deliver real change that once again puts Americans first,” Trump said at an October rally in Florida. “That begins with immediately repealing and replacing the disaster known as Obamacare…You’re going to have such great health care, at a tiny fraction of the cost—and it’s going to be so easy.”

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Trump also argued on the campaign trail that electing a Republican-controlled Congress would allow him to quickly dismantle the health care law and pass other pieces of legislation. “With a Republican House and Senate, we will immediately repeal and replace the disaster known as Obamacare,” Trump said at another event. “A Republican House and Senate can swiftly enact the other items in my contract immediately, including massive tax reduction.”

“We will repeal and replace Obamacare, and we will do it very, very quickly,” Trump said during the final week of the campaign. “It is a catastrophe.”

Trump’s confidence in his ability to win the health care fight continued through the first few weeks of his presidency. On February 9, he bragged that when it came to repealing Obamacare, “Nobody can do that like me.”

By the end of February, Trump had changed his tune somewhat. “Now, I have to tell you, it’s an unbelievably complex subject,” the president said. “Nobody knew that health care could be so complicated.”

One person who certainly did know was House Minority Leader Nancy Pelosi (D-Calif.), who successfully shepherded Obamacare through the House in 2010. On Thursday, she mocked Trump for trying to rush the repeal bill through the chamber, calling it a “Rookie’s error.”

“Clearly you are not ready,” Pelosi said.

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Watch Trump Call Obamacare Repeal "So Easy"

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