White House seeks to end subsidies for electric cars and renewable energy

White House economic adviser Larry Kudlow said on Monday the Trump administration wants to end subsidies for electric cars and other items, including renewable energy sources.

Asked about plans after General Motors Co (GM.N) announced U.S. plant closings and layoffs last week, Kudlow pointed to the $2,500-to-$7,500 tax credit for consumers who buy plug-in electric vehicles, including those made by GM, under federal law.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow said. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”

Asked about a timeline, he said: “It’s just all going to end in the near future. I don’t know whether it will end in 2020 or 2021.”

The tax credits are capped by Congress at 200,000 vehicles per manufacturer, after which the subsidy phases out. GM has said it expects to hit the threshold by the end of 2018, which means under the current law, its tax credit scheme would end in 2020. Tesla Inc (TSLA.O) said in July it had hit the threshold. Other automakers may not hit the cap for several years.

Experts say the White House cannot change the cap unilaterally. U.S. President Donald Trump last week threatened to eliminate subsidies for GM in retaliation for the company’s decision.

Kudlow made clear any changes in subsidies would not just affect GM. “I think legally you just can’t,” he said.

Democrats will take control of the U.S. House in January and are unlikely to agree to end subsidies for electric cars and many have been pushing for additional incentives.

Tesla and GM have lobbied Congress for months to lift the cap on electric vehicles or make other changes, but face an uphill battle make changes before the current Congress expires.

In October, Senator Dean Heller proposed lifting the current cap on electric vehicles eligible for tax credits but phase out the credit for the entire industry in 2022. Two other senators in September proposed lifting the per manufacturer credit and extending the benefit for 10 years.

Also in October, Senator John Barrasso a Republican who chairs the Senate Environment and Public Works Committee, proposed legislation to end the EV tax credit entirely.

[Raw Story]

Donald Trump Retweets Claim That Paris Protesters Are Chanting ‘We Want Trump.’ They’re Not

President Donald Trump retweeted a post Tuesday making several inaccurate claims about the ongoing protests that have rocked Paris and other parts of France.

The original tweet was written by Charlie Kirk, founder and president of the right-wing nonprofit Turning Point USA. In his post, Kirk claimed, “There are riots in socialist France because of radical leftist fuel taxes.” He added that “Europe is burning” and that the demonstrations are a middle-class rebellion against “cultural Marxism.”

“‘We want Trump’ being chanted through the streets of Paris,” he concluded.

Although protesters have taken to the streets to demonstrate against fuel taxes—which were promoted as a way of combating climate change—as well as other price hikes, the criticism of President Emmanuel Macron is actually the opposite of what Kirk and other right-wing commentators have claimed. Opposition political leaders have actually called for increased taxes on the wealthy, while demonstrators have taken to the streets against rising costs, as they’ve seen some of their social support curbed by the government.

Kirk’s claim that people are chanting “We want Trump” appears to be based on a trending video of demonstrators appearing to mock the U.S. president. The video circulating on social media does not appear to have been filmed in Paris or even in France but in London, possibly during anti-Trump demonstrations earlier this year. Conservative talk radio host Rush Limbaugh also claimed that French demonstrators were chanting “We want Trump.”

However, French residents told Newsweekthat the suggestions were laughable, as there were signs lining roads calling Macron a “capitalist pig.” Demonstrators are also calling for higher taxes on the rich and to redistribute wealth in the country, they said.

France 24’s White House correspondent Philip Crowther slammed Trump for retweeting the false claims made by Kirk. “Lies being retweeted by the President: Europe is obviously not burning, and ‘We want Trump’ is not being chanted through the streets of Paris,” he wrote. “Also, the fuel taxes are not radical leftist and France is not socialist. Any other lies?”

[Newsweek]

Stock markets plunge after Trump’s ‘Tariff Man’ tweet

Stocks took a nosedive on Wall Street as investors worried that a US-China trade truce reached over the weekend wasn’t all it was cracked up to be.

The Dow Jones Industrial Average sank almost 800 points Tuesday.

Boeing and Caterpillar, two major exporters which would have much to lose if trade tensions don’t ease, weighed the most on the Dow.

Bond prices soared sharply, sending yields lower, as traders shoved money into lower-risk investments.

The sharp drop in yields hurt banks because it makes it harder to earn money from lending. JPMorgan Chase sank 4.5 percent.

The S&P 500 lost 90 points, or 3.2 percent, to 2,700.

The Dow dropped 799 points, or 3.1 percent, to 25,027. The Nasdaq fell 283 points, or 3.8 percent, to 7,158.

The markets plunged after President Donald Trump unleashed a threatening tweet Tuesday morning.

“President Xi and I want this deal to happen, and it probably will. But if not remember, I am a Tariff Man,” Trump tweeted.

[New York Post]

Treasury proposes postal changes after Trump attacks on Amazon

President Donald Trump’s task force scrutinizing U.S. Postal Service operations is proposing an overhaul of the financially distressed agency, including changes to how it prices packages shipped by retailers like Amazon, a frequent target of the president’s attacks.

In a report released on Tuesday, the Treasury-led task force says the Postal Service should price packages “with profitability in mind” and impose higher rates on general e-commerce goods and other non-essential items sent through the mail.

Trump commissioned the report earlier this year after months of attacking Amazon for, in his view, ripping off USPS and treating the agency like its “Delivery Boy.” Amazon CEO Jeff Bezos privately owns The Washington Post, and Trump, who slams the Post’s coverage as unfair, often conflates the newspaper with the e-commerce giant, even calling it the “Amazon Washington Post.”

The report’s recommendations are broad and sweeping. They call for stronger oversight by the Postal Service Board of Governors — which sat empty for much of Trump’s presidency. They also encourage the agency to consider other revenue streams, such as renting out unused real estate to businesses, charging outside shippers for access to people’s mail boxes and issuing hunting and fishing licenses.

But the ideas for package rates are likely to draw the most scrutiny, given the president’s attacks on Amazon. The task force says the Postal Service should distinguish between essential items, such as medication or tax notices, and non-essential items, such as consumer products — and mark up the latter to generate more income.

The administration on Tuesday denied that it’s targeting Amazon, saying the report’s recommendations would hit the coffers of all retailers with a large volume of online sales.

“None of our findings or recommendations are linked to any one customer or competitor of the Postal Service,” said a senior administration official. “We based our analysis on the needs of the entire economy and all its businesses.”

But Trump’s frequent rants about Amazon hover over the findings.

“I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,” Trump tweeted in April shortly before the White House announced the task force. “Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!”

The president told The Daily Caller last month that Amazon is “getting the bargain of the century,” adding, “I think that’s why I’ve asked for a review.”

The task force, led by Treasury Secretary Steven Mnuchin, spent weeks meeting with companies and trade associations in affected industries like retail and package delivery. Officials from the Office of Management and Budget and other federal agencies have also been involved. A report was initially delivered to the White House in August, though its public release was delayed until later in the year.

The senior administration official said the Postal Service and Postal Regulatory Commission can enact some of the changes, including increasing package prices, without intervention from Congress, but said other proposed changes would require lawmakers to act.

For more than a decade, the Postal Service has logged billion-dollar loses, resulting in a total cumulative deficit of nearly $63 billion as of September. But those losses are not driven by Amazon or other big shippers of packages. Instead, much of it can be attributed to the decline of letter mail in the internet era and the mandatory payments that Congress has ordered the Postal Service to make into a retiree benefits fund. The task force recommends restructuring that obligation, but not doing away with it altogether.

The report does not call for privatizing the Postal Service, despite the Trump administration saying in June that it wanted to do so as part of a government reorganization.

Amazon did not immediately comment, but an industry coalition that represents the e-commerce giant warned the report could cause widespread economic damage.

“If it were to be adopted in its entirety I think we would be approaching a worst-case scenario from a consumer and business perspective,” said John McHugh, a congressman-turned-lobbyist who leads the so-called Package Coalition, saying Congress should be involved in changing longstanding Postal Service regulations.

Amazon, like other bulk users of the Postal Service, negotiates a special shipping rate that is not publicly disclosed. Though Amazon would pay below the standard rate, by law, those negotiated arrangements must cover the cost of shipping the packages — meaning the post office cannot lose money on them as Trump claims. Each agreement is evaluated and endorsed by the Postal Regulatory Commission and approved by the Postal Service Board of Governors.

Package delivery has been a rare bright spot on the Postal Service’s earnings statement. Mail carriers are delivering more packages than ever before — as the number of standard letters steadily declines — bringing in $21.5 billion in revenue in the most recent fiscal year.

Amazon has been developing other delivery options in anticipation that the Postal Service cannot accommodate its rapid growth. It runs a service in which contract drivers drop orders at customers’ doors and recently announced it would lease trucks to entrepreneurs to start delivery services. The company has also experimented with aerial drones and, according to media reports, self-driving vehicles, though those are still years away from adoption because of technological and regulatory hurdles.

The investments could help Amazon lessen the sting of a rate hike over the long term or gradually move away from the Postal Service altogether if shipping expenses become too prohibitive. Industry advocates have warned that fewer packages would only mean more pain for the agency’s bottom line.

Trump’s most direct impact on the Postal Service could be appointees to the Board of Governors. The body plays a key role approving so-called negotiated service agreements, giving it a hand in how much Amazon and others must pay for postal services. The board could, in theory, send Postal Service negotiators back to the table if such deals are not judged to be in the agency’s best interest.

The board sat entirely vacant for the first 18 months of Trump’s presidency. He’s so far nominated people for three of the nine board seats, two of whom were approved by Senate-wide vote in late August.

[Politico]

Trump’s pick for EPA already rolling back climate change protections

Andrew Wheeler, the former coal lobbyist who is now acting administrator of the Environmental Protection Agency, was a “driving force” behind the agenda of Sen. James Inhofe, who called climate change a “hoax,” according to people familiar with Wheeler’s work for the senator.

President Donald Trump has said he intends to nominate Wheeler as the head of the EPA, and in the past five months as acting administrator, Wheeler has moved aggressively to roll back key environmental regulations, prompting critics and environmentalists to say he is fast confirming their worst fears for the agency’s future.

Inhofe, an Oklahoma Republican, is an outspoken climate change skeptic who was at different times chairman and ranking member of the Senate Committee on Environment and Public Works. Inhofe told CNN last year the EPA was “brainwashing our kids,” and famously once brought a snowball onto the Senate floor to demonstrate his belief that global warming isn’t real.

Inhofe said in a 2003 Senate speech, “I have offered compelling evidence that catastrophic global warming is a hoax,” adding, “the claim that global warming is caused by man-made emissions is simply untrue and not based on sound science.”

Wheeler worked for Inhofe for 14 years, and was his chief counsel and staff director. In that role, Wheeler would have overseen hearings Inhofe held and approved reports Inhofe issued claiming humans have no direct impact on climate change, according to the sources, who asked not to be identified for fear of retribution. In videos of committee hearings at the time, Wheeler is often seen whispering in Inhofe’s ear and handing him paperwork. In the 2008 “Almanac of the Unelected,” Wheeler’s job is described as “to work on (Inhofe’s) agenda for the committee.”

At a Washington Post forum last week, Wheeler said, “I believe … that man does … have an impact on the climate. That CO2 has an impact on the climate and we do take that seriously.” At the same forum, he admitted he had not read the climate change report released by his agency, which outlined dire warnings of the impact of global warming.

Elizabeth Gore, who was chief of staff for Sen. Byron Dorgan, a North Dakota Democrat, and is now a senior vice president at the Environmental Defense Fund, told CNN that Wheeler “was very high profile, he was a driving force behind Inhofe’s very dangerous agenda to attack climate change and undermine the policies that would protect us from carbon pollution.”

Wheeler declined CNN’s request for an interview, but in a statement the EPA said in part that the activing administrator, “has made it abundantly clear on multiple occasions … that humans have an impact on the climate.” An EPA official also said, “Mr. Wheeler was deeply honored to work for Senator Inhofe in several capacities, however Mr. Wheeler did not write and was not the architect of the Senator’s climate science speeches.”

Wheeler is one of six top EPA officials who either worked directly for Inhofe or on the Senate’s Energy and Public Works Committee. Others are Wheeler’s chief of staff, his principal deputy assistant administrator, his assistant administrator for enforcement and compliance, a senior adviser for policy and an associate administrator for policy. An EPA official said the staffers started working at EPA before Wheeler arrived.

Wheeler moved to the EPA’S top slot in July after then-Administrator Scott Pruitt was forced to resign amid numerous investigations, including questions surrounding his altering of federal documents, over-spending, use of security and other numerous scandals.

Like his former boss, Wheeler is seen to be focused on reversing regulations that protect the nation’s air and water and instead promoting the wishes of the industries impacted by those regulations. Critics fear that Wheeler, who works quietly behind the scenes and knows how to get things done in Washington, is more dangerous to the nation’s health than the scandal-plagued Pruitt ever was.

Michael Gerrard, faculty director of Columbia Law School’s Climate Deregulation Tracker, which follows government deregulation, believes Wheeler will be more successful at reversing environmental protections, “because he understands the administrative and legal process better and he does not have all the craziness of Pruitt’s personal proclivities that got in the way of his effectiveness.”

From 2009 until he joined the EPA last year, Wheeler was a lobbyist for energy, mining and coal companies. Bob Murray, the powerful CEO of Murray Energy, paid Wheeler’s lobbying firm nearly $3 million to, among other things, help the coal baron get access to major decision makers, such as a meeting in March 2017 with Energy Secretary Rick Perry.

When Trump was elected, Murray Energy drafted an “action plan” for the Trump administration, essentially a wish list to get the Environmental Protection Agency off the coal industry’s back.

“Not a whole lot has changed from Pruitt to Wheeler,” said Sen. Sheldon Whitehouse, a Rhode Island Democrat who has demanded the inspector general investigate Murray’s wish list and Wheeler’s ties to industry. “Now more than ever, Trump’s EPA takes its marching orders from fossil fuel and other polluting industries. While Wheeler may not try to finagle a fast food franchise for his wife, he’s no different from Pruitt when it comes to shilling for industry and pushing whatever policies they want.”

The EPA said in a statement, “Mr. Wheeler did not lobby the Trump EPA while working for Murray Energy nor did he did work on the action plan or receive a copy of the memo.”

But in the five months since Wheeler has taken over, the EPA has pulled back on regulating the two largest sources of greenhouse gas emissions in the United States, coal plants and motor vehicles.

Gerrard told CNN, “Wheeler is carrying out a wish-list of the industry lobbyists who wanted to shut down the environmental regulations, as he himself was a lobbyist with exactly the same objective. But now he is in the driver’s seat.”

In August, the EPA published the “Affordable Clean Energy” plan, designed to replace the Clean Power Plan, which was the Obama administration’s key measure to address climate change. The new rule sets far less stringent emission guidelines.

That same month, the EPA and the National Highway Traffic Safety Administration published a proposed rule to weaken car emissions and fuel economy standards. And in September, the EPA published a proposed rule weakening methane emission standards for some oil and gas production and changing requirements on leak repairs.

At the Washington Post forum, Wheeler said the Trump administration deserves credit for a decline in carbon emissions. “In the first year of the Trump administration, we’ve seen a 2.7% reduction in CO2 from 2016 to 2017,” he said.

Asked to name three EPA policies that are contributing to cleaner air, Wheeler struggled to answer. “I’m not sure I’m going to be able to give three off the top of my head,” he said. Of the three he later listed, two are proposed regulations that would dial-back back Obama-era rules that aimed to reduce pollution.

[CNN]

New emails show Trump’s unqualified Mar-a-Lago buddies are influencing VA policies

A new batch of emails obtained by Pro Publica show that three members of President Donald Trump’s Mar-a-Lago resort are influencing contract and budget decisions at the Department of Veterans Affairs — despite being completely unqualified to do so.

The emails show that the three Mar-a-Lago members — Marvel Entertainment chairman Ike Perlmutter, West Palm Beach physician Bruce Moskowitz and lawyer Marc Sherman — were involved in “some of the agency’s most consequential matters, most notably a multibillion-dollar effort to overhaul electronic health records for millions of veterans,” Pro Publica writes.

According to Pro Publica, the trio reviewed a draft of a $10 billion contract to overhaul the VA’s electronic medical records system, and they were listed among 40 different outside “experts” consulted for the contract despite lacking “any relevant expertise.”

Additionally, the emails show that Moskowitz used his position as an adviser to get the VA to adopt his mobile medical app, even though IT officials at the VA said that the app had serious functionality problems. In fact, one email shows that a VA IT official believed that “some of the code needs to be refactored and even rebuilt” for the app to work properly.

Moskowitz even recruited his son, Aaron Moskowitz, to pitch the benefits of the app during a conference between the VA and Apple CEO Tim Cook. Apple experts similarly pushed back on Moskowitz’s mobile app and said that “the national databases needed to make the app accurate didn’t exist,” Pro Publica writes.

[Raw Story]

Trump sent a love note to Kim Jong Un through South Korean president saying that he likes the dictator

According to a statement, South Korean President Moon Jae-in said that President Donald Trump asked him to pass a note to North Korea’s dictator.

According to CNN’s Manu Raju, the note said, “President Trump has a very amicable view of Chairman Kim and that he likes Chairman Kim… As much that he wishes to implement the rest of the agreement with Chairman Kim and that he will make true what Chairman Kim wishes.”

Trump hasn’t managed to get Kim Jong Un to agree

During a Minnesota rally in June, Trump told the audience, their agreement outlines denuclearization.

“Sentence one says ‘a total denuclearization of North Korea,’” Trump said. “There will be denuclearization. So that’s the real story.”

While it may have been a huge applause line for Trump, it isn’t true.

“President Donald J. Trump of the United States of America and Chairman Kim Jong Un of the State Affairs Commission of the Democratic People’s Republic of Korea (DPRK) held a first, historic summit in Singapore on June 12, 2018,” the first sentence actually reads.

While it does deal with denuclearization, it doesn’t commit North Korea to anything.

“Chairman Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula,” the official statement said.

Not long after, however, it gives the true mandate: “[T]he DPRK commits to work toward complete denuclearization of the Korean Peninsula.”

In April, Kim agreed to suspend nuclear tests, though he said it was because they didn’t need them anymore.

In August, however, it revealed North Korea was still developing nuclear weapons, despite the agreement to “work” on things.

Trump announced that he and Kim would be meeting in 2019 to continue their “talks.” It’s unclear the point of the note for the dictator, but at least it reaffirmed his feelings for the so-called “Chairman.”

“He wrote me beautiful letters and we fell in love, OK?” Trump told a West Virginia audience. “No really. He wrote me beautiful letters.

[Raw Story]

Trump: Roger Stone has ‘guts’ for not testifying against me

President Donald Trump on Monday praised longtime associate Roger Stone for refusing to talk to special counsel Robert Mueller, as the president continues to denounce the investigation.

“‘I will never testify against Trump.’ This statement was recently made by Roger Stone, essentially stating that he will not be forced by a rogue and out-of-control prosecutor to make up lies and stories about ‘President Trump,'” Trump wrote on Twitter. “Nice to know that some people still have ‘guts!'”

Stone, who has come under scrutiny in Mueller’s Russia probe for possible contacts with WikiLeaks during the 2016 election, said on Sunday during an interview on ABC’s “This Week” that there’s “no circumstance in which I would testify against the president.” He has denied multiple times that he had any direct knowledge that WikiLeaks was going to release hacked emails from Hillary Clinton’s campaign.

Stone also said Sunday that he has not discussed a pardon for himself or for former Trump campaign chairman Paul Manafort, who was convicted in a financial fraud trial brought by Mueller. The president told the New York Post last week that he has “never discussed” a pardon for Manfort, but “wouldn’t take it off the table.”

“I’ve had no discussion regarding a pardon,” Stone said over the weekend.

Trump on Twitter also continued to denounce Mueller’s investigation into whether Russia colluded with Trump’s presidential campaign, claiming without evidence that the special counsel “only wants lies.”

Stone during his Sunday interview claimed that Mueller wanted him to “bear false witness against” Trump, adding that he “would have to make things up.”

“Bob Mueller (who is a much different man than people think) and his out of control band of Angry Democrats, don’t want the truth, they only want lies,” Trump tweeted Monday. “The truth is very bad for their mission!”

[Politico]

Trump: Cohen should go to prison

President Trump on Monday said Michael Cohen does not deserve leniency for cooperating with special counsel Robert Mueller, arguing that his former personal lawyer should serve a “full and complete” prison sentence.

“He makes up stories to get a GREAT & ALREADY reduced deal for himself, and get his wife and father-in-law (who has the money?) off Scott Free [sic],” Trump wrote on Twitter of Cohen. “He lied for this outcome and should, in my opinion, serve a full and complete sentence.”

Trump sought to further distance himself from his onetime ally by incorrectly claiming that Cohen’s crimes were “unrelated to Trump.”

Cohen in August pleaded guilty to campaign-finance violations, implicating Trump in a dramatic court hearing during which Cohen also pleaded to a slew of financial crimes stemming from his private business dealings.

Last week, Cohen also pleaded guilty to lying to Congress about the Trump Organization’s efforts to build a tower in Russia, a central matter in Mueller’s investigation into alleged ties between the Trump campaign and the Kremlin’s interference in the 2016 election.

The former Trump lawyer asked a federal judge to spare him prison time, in part, because he said he lied to lawmakers in order to “to support and advance [Trump’s] political messaging.” Trump was referred to in court as Individual 1.

His sentencing is scheduled for Dec. 12.

Cohen’s plea has angered Trump, who is facing growing legal and political danger as a result of his former ally’s cooperation.

While he blasted Cohen for turning against him, the president encouraged other people tied up in the Mueller probe to show loyalty.

Trump praised his on-again, off-again adviser, Roger Stone, for refusing to cooperate with investigators.

“He will not be forced by a rogue and out of control prosecutor to make up lies and stories about ‘President Trump.’ Nice to know that some people still have ‘guts!’” Trump wrote of Stone.

Stone has come under scrutiny for his alleged ties to WikiLeaks, which published emails stolen by Russians from Democratic officials during the 2016 campaign.

[The Hill]

Trump says country ‘would save billions’ if Democrats agreed to fund border wall

President Trump on Monday claimed that the country would “save billions of dollars” if Democrats voted to provide billions of dollars in funding to build a wall along the U.S.-Mexico border.

The president went on to repeat a threat to close the southern border and said that immigrants will not be allowed in the “country illegally.”

“Either way, people will NOT be allowed into our Country illegally! We will close the entire Southern Border if necessary. Also, STOP THE DRUGS!” Trump wrote on Twitter.

Trump has previously threatened to shut down the southern border in response to an approaching caravan of Central American migrants.

He has additionally directed thousands of troops deployed to the border, and attempted to curb certain immigrants from being able to claim asylum as the group of migrants trekked toward the U.S. border.

The president revived his calls for a border wall on Monday as Congress grapples over wall funding while trying to pass spending bills and avert a partial government shutdown.

The Senate passed its version of the Department of Homeland Security (DHS) spending bill with bipartisan support over the summer. The measure would allocate $1.6 billion for border security, including fencing.

The White House has since demanded $5 billion for border security, including wall funding, putting Democrats and the president at an impasse.

Trump has threatened to veto a bill that does not include adequate funding, while Senate Minority Leader Charles Schumer (D-N.Y.) has said Democrats oppose spending more than $1.6 billion.

Cracking down on illegal immigration and building a wall along the U.S.-Mexico border has been a hallmark of the Trump administration after focusing heavily on the issue in the 2016 presidential campaign.

Congress has until Dec. 7 to pass seven appropriations bills to keep the entire government funded. The president previously signed five funding bills in September, and agencies covered by those bills would not be affected by a shutdown this month.

Trump told reporters aboard Air Force One en route back from the Group of 20 Summit on Saturday that he would consider approving a two-week extension of government funding to provide more time in the wake of the death of former President George H.W. Bush.

[The Hill]

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