Headlines MSM didn’t show you over the last year…

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Nov 062018
 
Trump

‘In case you missed it’ – Just some of the many headlines that that you might have missed if you were watching only CNN, NBC, or ABC…

[If we haven’t added the link yet – just copy and paste the headline in your browser to search for it.]

Massive Crowd Spontaneously Sings “Amazing Grace” after President Trump Pauses 8 MINUTES of Speech, and Encourages Prayer for Fainting Woman at Rally

Trump Admin. Working With Catholic Group to Help Iraqi Christians Rebuild Their Homeland

100,000+ Texans RSVP for Massive Trump Rally in Houston

President Trump Wows Police: “Now and Forever We Will Have Your Back. We’re Going to Start Working with Chicago Today and Take Back Our Streets”

“LIFE BEGINS AT CONCEPTION”: DEPT. OF HEALTH AND HUMAN SERVICES POLICY NOW IN EFFECT

President Trump Signs Bill to Protect Religious Institutions’

Senator Diane Feinstein Moves to Seal FBI Investigation from Public as Ford Story Unravels

Senator Rand Paul’s Wife Sends Emotional Open Letter to Cory Booker Demanding He Stand Down from Harassment: “I’ve Never Felt This Way in My Life”

President Trump Does it Again: Canada Joins Re-Negotiated NAFTA Deal

Trump Plans to Release Middle East Peace Plan within Next Four Months

President Trump’s UN Speech Draws Gasps: “America Will Always Choose Independence and Cooperation over Global Governance, Control and Domination”

Pompeo: US ‘Sparing No Effort’ for Return of Pastor Detained in Turkey

PRES TRUMP PLEDGES TO FIGHT ANTI-SEMITISM: “MY CONNECTION TO JUDAISM IS PERSONAL”

Secretary of State Pompeo: ‘The heart of our mission is the preservation of human dignity’

Vice President Pence: White House ‘stands without apology for the sanctity of human life’

Good News: U.S. Jobless Claims Fall to 49-Year Low for Third Straight Week, Lowest Since 1969

Trump Administration to Palestinians: “Nobody is Entitled to America’s Foreign Aid”

We Have to Put an End to This!”: Lawmaker Calls on DOJ to Investigate Continued Harassment of Colorado Baker

EVANGELIST DUTCH SHEETS IN WASHINGTON REPORTS ON INTENSE “SPIRITUAL WARFARE” OVER KAVANAUGH HEARINGS

Friends of Zion Founder: The Dinner President Trump Had for Evangelical Leaders Was on “Holy Ground”

“I AM A PRO-LAW JUDGE”: KAVANAUGH STANDS GROUND AGAINST DEMOCRAT ONSLAUGHT

President Trump Makes Surprise Visit to Sick Boy in Children’s Hospital: You Won’t See This in the Mainstream News

Trump admin shortens Title X funding period to defund Planned Parenthood sooner

Vice-President Pence: The Mainstream Media Has “Met Their Match” in President Trump

Appeals Court Upholds ‘In God, We Trust’ on Currency, Rejects Atheist Suit

Trump warns Christians: ‘violent’ Left ‘will overturn everything we’ve done’ if Dems win midterms 2018 Midterm Elections

Why President Trump and First Lady Melania Are Hosting a Huge White House Dinner for Evangelicals Tonight

Black Pastors Meet with President Trump to Discuss Prison Reform

Texas Exports More Oil Than It Imports For First Time Ever

U.S. Appeals Court: Roe v. Wade Was ‘Aberration of Constitutional Law’

Trump Cabinet Meeting Begins with Prayer by Secretary of State Mike Pompeo

Tea Party Wins Major Victory Over IRS: $3.5 Million Payout

Pres. Trump Approves Largest-Ever Aid Package to Israel; Blocks the Sale of F-35 Jets to Turkey

‘You Always Have a Friend at the White House’: Trump Sits Down With Faith Leaders – “The Most Pro-Black President in Our Lifetime” Pastor Darrell Scott Praises Trump at Meeting with Faith Leaders

U.S. Sanctions Turkish Officials to Protest American Pastor’s Detention

President Trump Donates All $400,000 of His Presidential Salary to Repair Military Cemeteries

Justice Department Launches Task Force to Advance, Defend Religious Liberty

Study Reveals Bernie Sanders’ ‘Medicare for All’ Bill Would Require ‘Historic Tax Increases’

Steelworker Tears Up in Reopening of Illinois Plant, ‘Amazing’ GDP Boon for Americans

President Trump Thanks North Korea’s Kim Jong-un for ‘Keeping His Word’ and Returning Remains of US Soldiers Missing Since Korean War

US Commerce Dept’s Report: ‘Booming’ 4.1 Percent Growth Reveals Strong Economy

Mike Pence: Religious freedom is ‘top priority’ of Trump Administration

‘Don’t back down’: Trump’s attorney general urges students to defend free speech on college campuses

Nikki Haley Says Her Faith in Jesus is Why She Supports Israel

Russia, Iran and President Trump’s Handling of Foreign Affairs through the Eyes of Nikki Haley: “We Will Never Trust Putin”

“Baptism by Fire”: Former WH Press Secretary Sean Spicer’s Surprising Confession and Deep Appreciation of President Trump

President Trump Skyrockets to His Highest Job Approval

First-Ever State Dept. Ministerial on Religious Freedom Will Be ‘More Than Talk,’ Pompeo Says

“I FEEL COMPELLED TO SHARE MY STORY”: WHAT HAPPENED WHEN THIS VETERAN WALKED AWAY FROM THE DEMOCRATIC PARTY TO RUN AS A REPUBLICAN FOR U.S. SENATE

Black Christian Leaders Call on Paul Ryan to Censure Maxine Waters’ ‘Call to Extremism’

U.S. Congressman introduces bill targeting leftists who wear masks while rioting

‘I Am Dedicated to Protecting the Lives of Every American Including the Unborn’: President Trump’s Remarkable Letter to the Right to Life Convention

Democrat Strategist Said He Received Pushback for Urging Party to Welcome Biblical Values

Supreme Court Rules in Favor of President Trump’s Travel Ban

Trump Admin. May Use DNA Tests to Prove Parents, Not Traffickers, Are Crossing Border With Children

President Trump Signs Executive Order Preventing Separation of Immigrant Families: Critics Still Not Happy

US Quits the UN Human Rights Council: “Chronic Bias Against Israel”

56 lawmakers demand Planned Parenthood be investigated for covering-up child sex-abuse

President Trump: Otto Warmbier Did Not Die in Vain

For the First Time, Iran Admits Its Connection to 9/11

“Anyone Can Make War, Only the Most Courageous Can Make Peace”–Here’s the Agreement Made with North Korea Regarding Christians, Troops on the Ground

“I Felt Foolish, and I Hated It; But We Had No Choice”: President Trump on His Previous Rhetoric with Kim Jong Un

Pence Vows Trump Admin Is Aiding Middle East Christians, Fighting Bureaucratic Delays

Ted Cruz Shares 7 Biggest Christian Conservative Victories Since Trump Took Office

Former Inmate, Alice Marie Johnson—Pardoned by President Trump and Now Released from Prison—Speaks Out

Supreme Court sides with Trump: won’t declare ‘right’ to abortion for illegal immigrants

It’s Good to Remember These Amazing Words of Faith Spoken by our President Trump, Last Month

President Trump Signs ‘Right To Try Act,’ Allowing Patients to Seek Alternative Treatment

5 Facts About Immigration Policy Separating Children From Parents, 1,475 Missing Children

State Department Unveils Plan to Wipe Out Religious Persecution Around the World

New Surgeon General is Enlisting the Help of Churches to Help Solve the Opioid Crisis in U.S.

President Trump’s Funding Ban Forces International Abortion Giants to Cut African Operations

House Passes Trump-Backed Prison Reform Bill, Now It’s in the Senate’s Hands

Trump Quotes Jeremiah 1:5 at Pro-Life Gala, Says ‘Every Life Has Meaning’
– Life is the ‘true source of America’s greatness,’ President Trump tells pro-life gala

Trump to Cut Millions in Funding for Planned Parenthood, Abortion Providers

Nikki Haley Doubles Down at UN on Hamas’ Responsibility for Gaza Deaths

Judge Jeanine Pirro: Trump Fulfills a ‘Biblical Prophecy’ by Moving US Embassy to Jerusalem

Trump Admin. to Strengthen Religious Freedom Protections for Christian Colleges

‘We Can Look Away, But We Can’t Say We Didn’t Know’: Cries of the Persecuted Church Find the Ear of Capitol Hill

Trump Admin Being Filled With Christians Who Are ‘on Fire for Christ’ — Pence Might Be the Reason

Secretary of State Pompeo is Returning from North Korea with 3 American Christian Detainees

Israeli Air Strike Thwarts Iranian Attack that coincided with President Trump’s announcement
– Trump Withdraws from ‘One-sided’ Iran Deal to Prevent ‘Brink of a Nuclear Breakout’

New Executive Order Aims to Protect Religious Liberty from Government Overreach

Trump Issues Statement on National Day of Prayer: ‘Let Us Come Together to Thank God’

Pres. Trump Declares “Jewish American Heritage Month”: Community is “A Light Unto the Nations”

Trump may deny Planned Parenthood $50M+ per year in Title X funding: report

Trump Tells Buhari: ‘We Cannot Allow Christians to Be Murdered’

AP Admits President Trump Might be Right About Judge’s Political Leanings Influencing Their Rulings

‘The United States Is with Israel in This Fight’: Pompeo Joins Netanyahu Against Iran

Trump to Meet Nigerian President; Will He Discuss Killing of Christians?

South Korea’s Moon: Trump Should Win the Nobel Peace Prize

Senate Confirms Christian Mike Pompeo as New Secretary of State

A-List Rapper Defends Kanye West’s Trump Love

The REAL Donald Trump: Top Aide for 26 Years Says There’s a Public, Tough Side to Trump and a Different Private Side

Trump to Halt HHS Rule Forcing Christian Doctors, Hospitals to Perform Sex Change Surgeries

40 dignitaries to attend dedication of US embassy in Jerusalem on May 14

5 Faith Facts about Mike Pompeo, Secretary of State Nominee

US State Department Report Drops “Occupied” From References to Judea and Samaria

I Was at the Wheaton Meeting; It Wasn’t ‘Crazy Trump Bashing’

Black pro-Trump bloggers censored by Facebook to testify before Congress

Evangelical Leaders’ Wheaton College Meeting Was Not Anti-Trump, Organizer Clarifies

Pompeo’s Kansas Church Asks God to ‘Give Him Strength’ in Senate Confirmation Process

“The U.S. Has No Better Friends Anywhere” Than Israel: President Trump Congratulates Israel on Historic Independence Day

Trump Declaration, Second Chance Month for Ex-Cons, Based on Biblical Values

Pres. Trump Signs Exec. Order Pushing Work Requirement for Welfare: Promotes Marriage, Family

Trump signs bill cracking down on websites that help sex traffickers

Trump includes preborn in ‘Child Abuse Prevention Month’ declaration

In Case You Missed It: Pres. Trump’s Easter and Passover Message: “God’s Love Redeems the World”

Numbers Reveal Only 10 Percent of Anti-Gun ‘March For Our Lives’ in DC Was Made Up of Teen Students

“THEIR RELIGIOUS DEVOTION AND TENACIOUS IRISH SPIRIT”: PRESIDENT TRUMP PROCLAIMS IRISH-AMERICA HERITAGE MONTH

‘No Evidence of Collusion’: House Panel Ends Russia Investigation

Religious liberty bill, unthinkable during Obama term, reborn in the age of Trump

A Defiant Netanyahu Opens UN Exhibit on Jerusalem: Thanks Nikki Haley for Being a “Tsunami of Fresh Air”

U.S. Hiring Surge: Employers Add 313K Jobs in February as Tax Cut Confidence Booms, Minority Unemployment at Historic Lows

Swedish Prime Minister Admits Trump was Right on Immigration & Gang Violence

U.S. Embassy Will Open in Jerusalem This May to Celebrate Israel’s 70th Anniversary

Mueller: NO AMERICANS, but 13 Russians Interfered in Election – To No Affect

‘In These Moments of Darkness, We Hold onto God’s Word’ Trump re: FL Shooting

President Trump Donates His 4th-Quarter Salary to Rebuilding the Country’s Infrastructure

Israeli group mints Trump coin to honor Jerusalem recognition

Keeping Promises, President Trump Unveils a Pro-Life Budget; Here’s What’s in It

Trump’s budget proposes defunding some abortion providers

Gov’t report finds overwhelming acceptance of U.S. abortion funding restrictions

Trump’s Envoy to Israel Tells Abbas, Palestinians, “Stop Denying Jewish History”

Trump at Prayer Breakfast Says US ‘Strengthened by the Power of Prayer’

Trump’s New Religious Freedom Amb. Praises Islamic Scholars in First Public Speech

Pro-Israel Group Targeted by IRS During Obama Administration is Finally Vindicated

5 Trump Cabinet Members and Their Christian Faith

Trump Administration Relentless in Fighting Mideast Terror: Designates Hamas Leader as “Global Terrorist”

CBS: Viewers Overwhelmingly Approve of President Trump’s SOTU Speech

Top 10 Highlights From Trump’s First State of the Union Speech

Pence: Trump Prays for Persecuted Christians, Says ISIS Will Be Destroyed

Where Free-Market Economists Go Wrong

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Dec 052016
 
tax protest

By Sheldon Richman

Depressing as it is, politics usually trumps economics. There’s nothing new in that, but free-market advocates ought to learn some lessons and adjust their strategy accordingly.

The politicians who run the government—and think they run the country—are afraid to appear as though they are doing nothing. We saw this when the recession hit. They were particularly worried about seeming to put party above the public good.

As the Wall Street Journal put it back then

The speed with which Washington hashed out the [stimulus] plan was driven mostly by the drumbeat of bad economic news. Behind the scenes, it was greased by other powerful motivations. Congressional Democrats needed to demonstrate they were capable of results after a year of gridlock. Republican lawmakers, up for re-election, wanted to show sensitivity to voters’ economic woes. And the White House didn’t want ‘recession’ added to its legacy.

Political interest was universally aligned against good economic sense. The politicians could get away with this because most of the public is economically illiterate. The “seen” overshadows the “unseen.” Such is how we get economic policy. It’s happening now.

As free-market economists point out, government cannot affirmatively stimulate what we misleadingly call “the economy.” (It’s not a machine; it’s people using their property to engage in transactions.) All government can do is move money around. To make some people able to spend more it must make other people spend less. Politicians imply that they know who ought to have more and who ought to have less, but beside the obvious injustice of the matter, they simply can’t know.

Economists Fall Short

I said the government can’t affirmatively stimulate the economy, but it can encourage productive activity. How? By not discouraging it. Here is where some free-market economists fall short in shaping the public debate. Too much of what they say is along these lines: “The economy is fundamentally healthy. Recessions are a necessary correction of errors. So just let the economy work through its current problems. The government need do nothing.”

That message should make advocates of individual liberty squirm because it implies that the market today is essentially as free as it needs to be. For example, a few years ago the news media proclaimed that gasoline prices were at historic highs. In fact, when adjusted for inflation they were not. But the economists pointing this out sounded a little too defensive, as though they were the defending the free market’s honor against its critics. What should we say if next week gasoline does hit a historic high and the anti-market folks blame the free market? I know what I’d say: What free market? (With all the subsidies and regulations on the books, can there possibly be a free market?)

The same defensiveness can be seen whenever a left-statist charges that the gap between rich and nonrich has widened or income mobility has ceased. Whatever the truth of these charges, libertarians shouldn’t react as though the free market’s honor is being assaulted. The critics may think it’s the free market they’re attacking. But—I say again— we have no free market.

Similarly, if economic activity slows down, it can’t be the free market’s fault.

What we have—and have had for a long time—is corporatism, an interventionist system shot through with government-granted privileges mostly for the well-connected–who tend to be rich businesspeople. This system is maintained in a variety of ways: through taxes, subsidies, cartelizing regulations, intellectual “property” protections, trade restrictions, government-bank collusion, the military-industrial complex, land close-offs, zoning, building codes, restrictions on workers, and more. As a result, people can get rich at the expense of the government’s victims. Even some who have prospered apparently by market means have actually done so through government intervention, such as transportation subsidies and eminent domain. Wealth can be transferred in many ways besides welfare and Medicaid, some of them quite subtle. Most transfers are upward.

Overlooked Facts

Free-market economists know this, but they often seem to forget it, such as when they indiscriminately defend firms (such as oil and pharmaceutical companies) in today’s corporatist economy. These economists convey the message that since in a free market people get rich and companies get big only by serving consumers, anyone who is rich today and any company that is big today must have gotten that way by serving consumers. The flaw in the argument should be obvious.

Given the corporatist nature of the economy, it is a mistake—as well as strategically foolish—to say the government should do nothing when a recession might be coming on or when recovery is disappointingly sluggish. There’s much it should do—or rather undo. Freedom’s advocates must spell this out in detail, revealing how existing government privilege harms the mass of people who have no political connections. In contrast, when an economist who proclaims his support for the free market says the current economy will fix itself, he brands himself a defender of the statist quo and turns his back on the State’s victims.

The freedom philosophy is a radical idea that looks ahead, rather than to some mythical golden era or Panglossian present. Every time we pass up an opportunity to make this point, we alienate potential allies who are concerned about those who are having a tough time of things. Yes, living standards have improved for decades and being poor in the United States is not what it used to be—thank goodness. That only shows that even a marketplace hampered by government privilege can produce astounding wealth. But to be satisfied with that is to be willing to trade freedom and justice for a mess of pottage.

F.A. Hayek never spoke more wisely than when he wrote, in “The Intellectuals and Socialism”:

What we lack is a liberal Utopia, a programme which seems neither a mere defence of things as they are nor a diluted kind of socialism, but a truly liberal radicalism which does not spare the susceptibilities of the mighty (including the trade unions), which is not too severely practical and which does not confine itself to what appears today as politically possible. . . . Those who have concerned themselves exclusively with what seemed practicable in the existing state of opinion have constantly found that even this has rapidly become politically impossible as the result of changes in a public opinion which they have done nothing to guide. Unless we can make the philosophic foundations of a free society once more a living intellectual issue, and its implementation a task which challenges the ingenuity and imagination of our liveliest minds, the prospects of freedom are indeed dark. But if we can regain that belief in power of ideas which was the mark of liberalism at its best, the battle is not lost. [Emphasis added.]

Hayek wrote that over 60 years ago. We haven’t progressed as much as we like to think.

(A version of this article first appeared on February 1, 2008.)

Sheldon Richman


Sheldon Richman

Sheldon Richman is the former editor of The Freeman and a contributor to The Concise Encyclopedia of Economics. He is the author of Separating School and State: How to Liberate America’s Families and thousands of articles.

This article was originally published on FEE.org. Read the original article.

Bill Clinton’s 1993 tax plan cut Trump’s taxes.

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Nov 072016
 

It was Bill Clinton’s 1993 tax plan that allowed Donald Trump to claim his Altantic City losses and not pay taxes. Honesty would have Bill Clinton stepping up three months ago and owning the law.

From a DNC staffer’s email –

“The Clinton proposal should be good for the real estate market with its easing of the passive loss rules, its easing of the rules that govern pension fund investment in commercial and debt-financed real estate, and its easing of the oversight regarding bank lending policies.”

READ: – Courtesy of Wikileaks…

Date: 2016-05-20 14:19
Subject: RE: WaPo: Trump’s income tax returns once became public. They showed he didn’t pay a cent.

I know very little about this, but from a quick sweep it looks like passive-loss relief was a core component of Bill Clinton’s 1993 tax plan:

AP: Siegel says ripple effects will likely reach other investment markets as well. “The Clinton proposal should be good for the real estate market with its easing of the passive loss rules, its easing of the rules that govern pension fund investment in commercial and debt-financed real estate, and its easing of the oversight regarding bank lending policies.” …

Chicago Sun-Times: Last year, Bentsen’s Senate Finance Committee approved a change in the passive-loss system designed to provide partial tax-relief to property owners – and new buyers – who are “active participants” in real estate trades or businesses. Basically, the plan allowed such owners to escape the clutches of passive-loss treatment, and to write off losses from their real estate against net income derived from real estate. Guess what ended up in Bill Clinton’s tax package? You got it: The very passive-loss relief plan that sailed through Bentsen’s committee.

The Associated Press March 1, 1993, Monday, PM cycle Clinton Plan Has Something For Wall Street
BYLINE: By CHET CURRIER, AP Business Writer
SECTION: Business News
LENGTH: 594 words
DATELINE: NEW YORK

Though President Clinton’s economic ideas have drawn a lot of fire from Wall Street, his plan could well be a boon to the business of banks, brokers and other financial-services industries. In the eyes of some of his critics on the Street, Clinton has presented himself as a Robin Hood intent on redistributing wealth according to a system of “fairness” that is open to dispute. At the same time, however, observers say there is a very real prospect that his proposals could lead to greater demand for a wide variety of Wall Street’s merchandise, from municipal bonds to individual retirement accounts. “Everyone’s got a bellyache about Clinton’s proposal,” observed Ethan Siegel, a Washington analyst at Prudential Securities.

“While the market mulls over the proposal and its likely impact on the economy, I’d point out that there are pluses in the package that cannot be ignored.

“The overall message remains that there is going to be less Washington money for high-income retirees – in both pension and health care benefits. As more and more people find it necessary to provide for their own retirements, this will be a plus for the mutual funds, the financial planners and the banks.”

Analysts like Siegel raise these visions at a time when expectations for financial businesses are already on the rise. As of late last week, Standard & Poor’s index of financial stocks sported a 23.31 percent gain over the past 12 months. That stood in sharp contrast to an advance of just 3.08 percent for S&P’s index of industrial stocks, and a 6.88 percent rise overall for S&P’s 500-stock composite index. The financial group’s performance reflects the fact that financial firms of many types have been recovering from the early-1990s credit crunch, and reviving their profitability, with help from falling interest rates. As many analysts see it, these businesses also stand to benefit from demographic forces as the nation’s population ages in the years ahead, dramatically increasing the size of the over-40 set. This is the group that has always provided many of Wall Street’s best customers.

Richard Hoffman, chief investment strategist at Cowen & Co., cites as a primary market theme of the ’90s “anything that 40-year-olds and above buy and use.” Wall Street is already well into a prolonged marketing blitz seeking to woo this horde of potential clients as it faces the need to prepare in earnest for its retirement years.

Clinton’s proposals already have touched off a boom in the tax-exempt municipal bond business, based on the likelihood of higher tax brackets for upper-income individuals and couples. By the same reasoning, people’s appetites would stand to be whetted as well for annuities, life insurance, and retirement savings vehicles like IRAs, Keogh plans and employer-sponsored 401(k) plans – all of which offer some degree of shelter from taxes. Siegel says ripple effects will likely reach other investment markets as well.

“The Clinton proposal should be good for the real estate market with its easing of the passive loss rules, its easing of the rules that govern pension fund investment in commercial and debt-financed real estate, and its easing of the oversight regarding bank lending policies.”

Many Wall Streeters object to Clinton’s expressed faith in government, rather than private industry and market forces, as a driving force behind change and progress. From another angle, however, says Rao Chalasani at Kemper Securities in Chicago, “the president called for turning to investment, away from consumption.”

Chicago Sun-Times February 26, 1993, 
FRIDAY , FINAL Clinton Economic Plan Gives Real Estate a Break
BYLINE: Kenneth R. Harney
SECTION: HOMELIFE; THE NATION’S HOUSING; Pg. 6;
N LENGTH: 711 words

Real estate owners, investors and brokers could emerge from the 1993 federal legislative sweepstakes with something they haven’t seen since 1981: A tax bill that giveth rather than taketh away. Compared with other key sectors of the economy that were asked to share the pain of deficit-reduction, real estate came out as a net winner in the Clinton administration’s economic recovery program unveiled last week. Not a big winner, to be sure; but not a loser by any stretch.

First, the Clinton administration posted a last-minute hands-off sign on two of the fattest, and most politically sensitive, potential sources of new tax revenue: deductions for home mortgage interest and local property-tax payments. Plans for limiting both were on the table until late in the budget-crafting process, according to administration sources. One official said key staff members favored at least modest cuts in the deductions for philosophical as well as revenue-raising reasons.

Second, the fingerprints of pro-real estate legislators like former Sen. Lloyd Bentsen (D-Texas), now secretary of the Treasury, are clear in the Clinton package. While chairman of the Senate Finance Committee, Bentsen supported efforts to encourage pension funds to put more of their money into housing and real estate. The Clinton plan includes precisely such a plank. Bentsen also supported efforts to roll back features of the Tax Reform Act of 1986 that severely penalized new investment in commercial real estate. Those provisions hampered resales of office buildings, apartment complexes and other property financed by failed S & Ls, which were glutting the market in his home state.

Among the biggest impediments to real estate investment: the controversial “passive loss” system created by the 1986 reform act. That law defined all forms of rental real estate as “passive” activities, no matter how much time and effort owners spend on managing or operating their real estate. Under the law, losses generated by passive activities cannot be deducted against ordinary income from other, active sources. Instead they can only be written off against income generated by other passive activities. If there is no passive income available to a taxpayer, the 1986 reform law required the losses to be “carried forward” – put on ice until the property is sold or the taxpayer generates net passive income to offset the frozen passive losses.

Last year, Bentsen’s Senate Finance Committee approved a change in the passive-loss system designed to provide partial tax-relief to property owners – and new buyers – who are “active participants” in real estate trades or businesses. Basically, the plan allowed such owners to escape the clutches of passive-loss treatment, and to write off losses from their real estate against net income derived from real estate.

Guess what ended up in Bill Clinton’s tax package? You got it: The very passive-loss relief plan that sailed through Bentsen’s committee. But that’s just part of the new tax plan’s lean toward real estate. Consider these other features: Permanent reauthorization of the two most important sources of financing for affordable housing. These are the low-income tax credit for subsidizing rental units, and the mortgage revenue bond program that provides cut-rate mortgage money for more than 100,000 modest-income first-time home buyers per year.

Both programs have expired periodically when Congress failed to approve annual or biannual tax bill reauthorizations. A rollback of the 1992 federal tax bill’s proposed depreciation standards for commercial real estate. The Clinton plan calls for a 36-year depreciation schedule for non-residential property. While that’s up from the 31.5-year schedule included in the current tax code, it’s four years below the 40-year standard contained in the 1992 tax legislation, which was vetoed by President Bush.

Commercial real estate lobbyists would have preferred no change at all, but even last year they accepted the 40-year standard as a necessary revenue-raiser in exchange for passive-loss relief. The Clinton package turns out to be kinder and gentler to real estate, in other words, even when it passes the hat looking for more tax dollars.

 

From: Graham, Caroline
Sent: Friday, May 20, 2016 12:07 PM
To: Miller, Lindsey; Dillon, Lauren; Bauer, Nick; Roberts, Kelly; Sarge, Matthew Cc: Brinster, Jeremy; Dieter, Austin
Subject: RE: WaPo: Trump’s income tax returns once became public. They showed he didn’t pay a cent.

Brinster – do we have any boomerang here?

These are the specifics on 78/79. As long as Brinster doesn’t see a flag, then I’d like to round all of this up in a doc, but tighten up the frame a bit and make sure we’re driving the “Trump’s always in it for himself” narrative. That should help downplay his call for higher taxes on the wealthy (non-real estate) folks.

Trump Paid No Taxes Due to Losses on Rental Properties. A Division of Gaming Enforcement report from October 1981 stated: “The Division notes that in 1978 and 1979 Trump incurred no federal income tax liability. In 1979, the lack of such liability is primarily attributable to losses incurred by Trump in the operation of rental properties located at Third Avenue, Fifth Avenue, East 56th Street, East 57th Street, East 6lst Street and East 62nd Street, New York City, New York. The expenses for the operation of the aforesaid rental properties were actual cash disbursements as reflected in Trump’s cash disbursements journal. The foregoing losses were also traced to interest due on amounts owed to Fred C. Trump and Chase Manhattan Bank during 1978 and 1979. Additionally, Trump incurred losses during 1978 and 1979 in the operations of the Park Briar Associates, Regency-Lexington Partners and 220 Prospect Street Company, partnerships in which Trump has an interest.” [Division of Gaming Enforcement Report to the Casino Control Commission, 10/16/81]

Cash for Clunkers Hurts Poor People

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Aug 012009
 

August 1st, 2009

The Automotive Aftermarket Industry Association has predicted that there will be a backlash to the “Cash for Clunkers” program.  I agree, only it will come too late.   “Cash for Clunkers” hurts lower income people, but no one has thought much about that yet – including the lower income people that voted for Obama.

Although I drive a 1994 Suburban, I wasn’t planning on doing the  “Cash for Clunkers”. Gas guzzler that the Suburban is, it’s actually been nice for our size family, who are all too big to be sitting in the back seat of small five-seater cars anymore.  And I can carry and move things.

But even if I wanted to get a more fuel efficient minivan, I can’t afford to participate in  “Cash for Clunkers” program (more officially known as the CAR Allowance Rebate System or the Consumer Assistance to Recycle and Save Act of 2009.)   

To participate, a person has to be buying a new car.  Sure you get up to $4500 in a rebate, but you still have to have quite a bit of actual money in order to afford a new car.  People of lower income don’t have the kind of money. But more importantly, because  “Cash for Clunkers” merely replaces your trade-in value, the benefit of the program isn’t as great as many anticipate, and for the American taxpayer, it’s another program that they can’t afford.  As nice as free money (ie: the rebate) sounds, American taxpayers can’t afford to be giving this money away.  And low-income people, most especially, can’t afford to be helping pay for any more bailouts.So I just figured I’d hang onto my car for another dozen or more years, until it becomes valuable as an antique, because there won’t be any other cars of this time period around.  Most will have been crushed.  Maybe we’d fix it up and drive it in the parades!

But here’s when I realized the AAIA is right.  Junk yards that crush the CARS program cars aren’t allowed to pull engines or certain other parts before they are crushed.  Earlier this month, I made use of a junk yard twice – once for a radiator and once for an engine.   I still need to put in an alternator.  Will certain parts for older cars become harder – and more expensive – to get?When all is said and done  –  “Cash for Clunkers” benefits New Car Dealerships primarily, by increasing sales, and the upper and middle class possibly, but giving them an extra few hundred dollars.  But it’s not good news at all for lower income people.   We can’t afford a new car, and we won’t be able to continue fixing our older cars at an affordable price, if we can find the parts at all.  This isn’t good.  In fact, the Obama administration knew they were taking away our options to keep our vehicles running.  They want our cars off the road, and they really don’t care how it affects those of us with very little money.   The little guy isn’t a priority.  Obama pretended to champion the little guy in order to get their vote, but it’s becoming more and more obvious that special interest – those that have received the bailout money and those industries he is choosing to socialize – are what he really champions.  Politics as usual.

I’ll bet many of the people that voted for Obama haven’t even thought of this particular ramification yet.  They’re still waiting for him to pay their mortgages and health insurance.  The  “Cash for Clunkers” program will be all done and over with, with most of the cars crushed, before the little guy realizes that the price of his used part just went up a whole lot.