Grassley holds up Deputy AG nomination until he hears from Comey on Russia

The chairman of the Senate Judiciary Committee said Tuesday that he will not permit President Trump’s nomination for deputy attorney general until members of the committee are briefed by FBI Director James Comey on Moscow’s involvement in last year’s election.
Senator Chuck Grassley, R-Iowa, halted the nomination of Rod Rosenstein, a longtime U.S. attorney for Maryland. Rosenstein, the pick for the No. 2 position at the Justice Department, said earlier this month that he was not aware of any requirement that he recuse himself from a federal investigation into Russian interference in the presidential election. But he said he was open to appointing a special counsel to look into the matter if he ultimately determined it appropriate.
“Here’s what I’ve done: the Justice Department would like to get their deputy out of committee just as soon as they can,” Grassley told reporters at the Capitol, according to Politico. “I’m not going to schedule a hearing on the deputy attorney general until we get a briefing from Comey.”
Attorney General Jeff Sessions recused himself last week from any investigations touching the Trump campaign following revelations of his undisclosed contacts with the Russian ambassador. That move means the Russia inquiry would be under Rosenstein's watch.
Sen. Dianne Feinstein, D-Calif., said at Tuesday’s hearing that Rosenstein has “impressive credentials” and she does not question his “integrity.” But she said, “We need steel spines and there is a real danger the Justice Department could become politicized.”

Trump 2005 tax files released by MSNBC, White House rips ‘desperate’ story

In another major leak for the White House, MSNBC on Tuesday night released a portion of President Trump's 2005 tax documents – drawing a stern rebuke from the administration.
Host Rachel Maddow said the two-page summary of Trump’s federal return for that year was first obtained by journalist David Cay Johnston, who gave MSNBC a first look at the documents.
It is unclear who leaked them. Johnston, with the website DCReport.org, said only that he found the documents “in the mail.”
Citing the files, they said Trump made $153 million that year and paid $36.5 million in taxes, which Johnston suggested was relatively low and the result of a benefit.
The return shows the then-real estate mogul also reported a business loss of $103 million that year, although the documents don't provide detail. The forms show that Trump paid an effective tax rate of 24.5 percent, a figure well above the roughly 10 percent the average American taxpayer forks over each year, but below the 27.4 percent that taxpayers earning 1 million dollars a year average, according to data from the Congressional Joint Committee on Taxation.
The White House pre-emptively pushed back minutes before the on-air report, saying that publishing the returns would be illegal.
"You know you are desperate for ratings when you are willing to violate the law to push a story about two pages of tax returns from over a decade ago,” a senior administration official said in a statement.
The official added it is "totally illegal to steal and publish tax returns."
The statement also acknowledged Trump made over $150 million that year, while saying he paid $38 million in income taxes – noting he had a responsibility to his company and family “to pay no more tax than legally required.” The statement said he also paid “tens of millions of dollars in other taxes such as sales and excise taxes and employment taxes and this illegally published return proves just that.”
Maddow countered that the return was  "not illegally published,” and argued that MSNBC was exercising its First Amendment right to publish information in the public interest.
The unauthorized release or publishing of federal tax returns is a criminal offense, punishable by a fine of up to $5,000 and up to five years in jail.
Trump's hefty business loss appears to be a continued benefit from his use of a tax loophole in the 1990s, which allowed him to deduct previous losses in future years. In 1995, Trump reported a loss of more than $900 million, largely as a result of financial turmoil at his casinos.

Tax records obtained by The New York Times last year showed the losses were so large they could have allowed Trump to avoid paying taxes for up to 18 years. But Trump's 2005 filing shows another tax prevented him from realizing the full benefit of those deductions.

The bulk of Trump's tax bill that year was due to the Alternative Minimum Tax, a tax aimed at preventing high-income earners from paying minimal taxes.

The AMT requires many taxpayers to calculate their taxes twice -- once under the rules for regular income tax and then again under AMT -- and then pay the higher amount. Critics say the tax has ensnared more middle-class people than intended, raising what they owe the federal government each year.

Were it not for the AMT, Trump would have avoided all but a few million dollars of his 2005 tax bill.

Trump's campaign website called for the end of the AMT, which is expected to bring in more than $350 billion in revenues from 2016 to 2025.
The report follows unsuccessful efforts by Democrats since the start of the 2016 presidential campaign to pressure Trump to release the documents. Last month, House Democrats even tried to force Trump to give them to Congress, only to be blocked by majority Republicans.
Maddow’s report also points to what could be another significant leak inside the federal government meant to embarrass the new president. In his first two months on the job, reports have surfaced with sensitive details about Trump’s calls with foreign leaders as well as details from the investigation into Russian interference in the 2016 campaign.
Trump last month blasted what he termed “illegal leaks.”
The president’s tax documents were a top target for critics throughout the 2016 race. Despite indications from Trump early on that he would follow a decades-long tradition of presidential nominees making their returns public, he later balked.
He cited an IRS audit as the reason he did not want to release the documents, while also saying at a September debate that he’d release them if Democratic nominee Hillary Clinton turned over the thousands of emails deleted from her private server.
She didn’t. In January, after Trump was sworn in, Counselor Kellyanne Conway told ABC’s “This Week” that Trump was not going to release the returns.

House health bill DOA unless major changes, GOP senators say

A day after a Congressional Budget Office released a report that said the number of uninsured would surge within the decade by 24 million under the GOP health plan, at least a dozen Republican senators warned that the bill would not become law without major policy changes.
The Wall Street Journal reported that some senators who’ve remained tight-lipped about the legislation raised concerns. The paper reported that about a dozen senators have signaled concerns about the law. Losing more than two senators—presuming Democratic senators vote down party line—would kill the bill.
“This is difficult—it’s 18 percent of the economy,” Sen. John Boozman, R-Ark., said. “My concern is not with the timeline; my concern is doing it right.”
Tom Price, the Health and Human Services secretary, downplayed the CBO report and said, “we disagree strenuously with the report that was put out. It’s just not believable is what we would suggest.”
Republicans are appearing to overlook President Trump’s promise to deliver “insurance for everybody,” which the CBO makes clear will not happen if the legislation becomes law. Democrats are assailing Republicans for “attacking the messenger,” seeming to forget all the times they assailed the budget office themselves.
The GOP legislation would use tax credits to help consumers buy health coverage, expand health savings accounts, phase out an expansion of Medicaid and cap that program for the future, end some requirements for health plans under Obama's law, and scrap a number of taxes.
“We’re keeping this bill intact. We’re obviously going to make some modifications,” Speaker Paul Ryan said on Fox News Tuesday, noting that senators would be able to amend the bill.

North Korea threat lingers at start of Tillerson's first Asia trip

Secretary of State Rex Tillerson is set to begin his first trip to Asia in his new role and will attempt to forge cooperation with important U.S. allies in the region, while downplaying fears that the U.S. is looking to isolate itself diplomatically.
Tillerson will find shared anxiety at the North's saber-rattling but less agreement about how to deal with it, and unresolved questions about how the United States and China, the world's two largest economies, can manage growing differences.
Japan and South Korea, which host American troops and are already within range of North Korean missiles, support U.S. efforts to increase diplomatic and economic pressure on Pyongyang.
The three navies were also conducting drills Wednesday in seas east of the divided Korean Peninsula and north of Japan to promote interoperability, the U.S. Navy's 7th Fleet said.But China remains conflicted about how to treat its traditional ally for fear of triggering its collapse.
Adding to the combustible mix of military tension and the region's historic rivalries is another factor — uncertainty about U.S. foreign policy under the Trump administration.
Tillerson, who arrives in Tokyo late Wednesday at the start of his four-day, three-nation tour, could provide some reassurance to nervy allies. He will meet Thursday with Japanese Prime Minister Shinzo Abe and Foreign Minister Fumio Kishida.
The former Exxon Mobil CEO has adopted a low profile during his six weeks as secretary of state. The State Department Correspondents' Association expressed disappointment Wednesday that Tillerson was traveling to Asia without a full contingent of the diplomatic press corps or even a pool reporter on his plane — although it is taking a reporter from the conservative-leaning website, the Independent Journal Review.
President Trump's rise to power has raised anxiety in Asian capitals. During last year's election campaign, Trump asked whether allies like Japan and South Korea contribute enough for their own defense or should get their own nuclear weapons. He also questioned the fundamentals of four decades of U.S. diplomacy with China.
Trump has allayed some of those concerns since taking office. Trump hosted Abe at his Florida resort last month, and when Tillerson goes to Beijing Saturday, he is expected to arrange a much-anticipated visit by Chinese President Xi Jinping to the U.S.
"The U.S. allies, Japan and South Korea, want to know that the United States is going to continue to defend them but also is going to show a certain amount of finesse and diplomatic skills in dealing with China and with North Korea," said Robert Dujarric, the director of the Institute of Contemporary Asian Studies at Temple University's campus in Tokyo.
North Korea will be a top priority on all Tillerson's stops. The State Department says Tillerson wants to discuss "fresh" approaches. Administration officials say all options are on the table, including military ones, but signs are that the U.S. for starters wants to see rigorous implementation of existing sanctions against Pyongyang.
There appears to be little desire for now to negotiate with North Korea, unless it commits to denuclearization, which it shows no sign of doing.
The North conducted two nuclear tests and 24 ballistic missile tests last year, deepening concern in Washington that it could soon develop a nuclear-tipped missile capable of reaching the U.S. mainland — something Trump has vowed won't happen.
The U.S. is currently involved in annual military drills in South Korea that North Korea regards as rehearsal for invasion. In a show of defiance, the North fired four ballistic missiles into ocean off Japan last week. The next day, the U.S. began bringing in equipment for the long-planned deployment in South Korea of a missile defense system, known by its acronym, THAAD.
That has raised tensions with China, which says the THAAD's radar could peer into Chinese territory, weakening its own nuclear deterrent. The U.S. says the system is intended to be used only against North Korea.
A Trump administration official told Reuters that Tillerson's position on THAAD would be uncompromising.
"THAAD is non-negotiable," the official told Reuters. "This is one of those things where Beijing is just going to have to adapt to or live in a perpetual cycle of outrage.
"But this is a chance to lay down a marker on what we would need from China and to hear from them what they would want to see in return. Everyone is eyes-open that they are not going to give us anything on North Korea without something in return."

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Wearing red, white and blue lands high school students in hot water

Every heart beats true ‘neath the red, white and blue – although some people apparently see overt displays of patriotism as offensive to immigrants and refugees.
George M. Cohan probably never thought about adding that coda to his patriotic anthem “You're a Grand Old Flag,” and the Iowa high school students who donned red, white and blue to support their men’s basketball team last week probably didn’t think about their actions being controversial. But the patriotic garb worn by some Valley High School students on Wednesday upset students at Des Moines North High School, which is described as being more diverse and full of refugee families.
PARENTS REPORTEDLY OUTRAGED OVER 5TH GRADERS' SLAVE AUCTION POSTER ASSIGNMENT
“Any normal person, any educated person can look at that and think, ‘What the hell are these kids thinking?’” North High School assistant coach Morgan Wheat told WHOTV.com.
Now, North High basketball coach Chad Ryan is speaking out -- and says it's possible the opposing team's fans may not have had sinister intentions. "What I will say is we’re proud of our diversity at North High School — not only on our basketball team, but our population."
SCHOOL CHANGES NAME OF 'FATHER-DAUGHTER' DANCE TO BE MORE INCLUSIVE
Valley High School’s student council responded to the hullabaloo by sending an apology letter to Des Moines North students.
“It has been brought to our attention that the decision by the Valley High School student section to wear U.S.A. apparel at our game last night was offensive to members of your community and fan base,” the letter, obtained by the Des Moines Register, began. “We are deeply sorry if we have offended anyone in any way.”
The letter continued, “We have traditionally dressed in such a fashion for great games such as the one last night. Everyone here at Valley has immense respect not only for your team and players but for your community as a whole. Please know that our intent was in no way to offend or demean – just to support our own team in a way we have done before.”
The students had dressed in patriotic-themed clothing on at least one other occasion this school year, during a football game against Dowling Catholic that was witnessed by WHOTV.com.
And though Valley ended up submitting the apology letter, it would only serve as consolation for Des Moines North; Valley won the Wednesday basketball game, 57-55.

Gingrich Blasts 'Disgustingly Wrong' CBO: It 'Should Be Abolished'

Former Speaker of the House Newt Gingrich (R-Ga.) slammed the Congressional Budget Office, which released a critical score of the Republicans' ObamaCare replacement bill, declaring that it should be abolished.
On "The First 100 Days," Martha MacCallum asked Gingrich what he thought of the CBO's scoring, which said 14 million more people will be uninsured by 2018 under the plan championed by Speaker Paul Ryan (R-Wis.).
"They should abolish the Congressional Budget Office," Gingrich said. "It is corrupt, it is dishonest, it was totally wrong on ObamaCare by huge, huge margins."

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CBO: GOP ObamaCare Replacement Would Result in Millions More Uninsured
Schumer Threatens Government Shutdown over Trump Wall Funding

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Gingrich said he does not believe a single word they print in their reports.
He said, as House Speaker in the 1990s, he balanced the federal budget for four straight years, and "fought the CBO every time."
Gingrich said the organization, billed as a nonpartisan scorekeeper for legislation, used an ObamaCare architect to help score the Affordable Care Act.
"[They're] totally dishonest, disgustingly wrong," he said. "That whole thing should be abolished."
Gingrich also pointed out that Health & Human Services Secretary Dr. Tom Price said the CBO did not score several sections of the current legislation.

Trump administration disagrees with CBO report on health care

The Trump administration on Monday lashed out at the Congressional Budget Office’s report that estimated that about 24 million more Americans in a few years would be uninsured under the new legislation.
The bill, called the American Health Care Act, would be “less generous” with new tax credits for those receiving subsidies under the current law and the plan would likely increase average premiums in the nongroup market until 2020.
Tom Price, the Health and Human Services secretary, downplayed the report and said, “we disagree strenuously with the report that was put out. It’s just not believable is what we would suggest.”
The CBO report, compiled along with staff of the Joint Committee on Taxation, also determined that the Republicans’ American Health Care Act would save money for taxpayers. According to the study, it would reduce federal deficits by $337 billion from 2017 to 2026.
SCALISE: CBO GOT IT WRONG ON OBAMACARE REPLACEMENT
The report’s estimate on the number of uninsured nevertheless could overshadow projections about premiums and taxpayer savings, fueling critics. Criticism so far has come from Democrats, Republicans from states that benefit from Obama's law and many corners of the health-care industry.
According to the CBO, the projected loss in insurance coverage is related mostly to a provision repealing penalties associated with the ACA’s requirement to buy insurance.
The CBO report, compiled along with staff of the Joint Committee on Taxation, also determined that the Republicans’ American Health Care Act would save money for taxpayers. According to the study, it would reduce federal deficits by $337 billion from 2017 to 2026.
The report’s estimate on the number of uninsured nevertheless could overshadow projections about premiums and taxpayer savings, fueling critics. Criticism so far has come from Democrats, Republicans from states that benefit from Obama's law and many corners of the health-care industry.
According to the CBO, the projected loss in insurance coverage is related mostly to a provision repealing penalties associated with the ACA’s requirement to buy insurance.
“Obamacare all of a sudden the last couple of weeks is getting a false rep that maybe it’s OK. It’s not OK,” President Trump said Monday, according to Politico. “It’s a disaster, and people understand that. It’s failed, and it’s imploding. And if we let it go for another year, it’ll totally implode. In fact, I’ve told the Republicans, ‘Why don’t you just let it go for another year?’ That way everybody will really understand how bad it is.”

Officials say pirates hijack freighter in latest test for Trump

Pirates have hijacked an oil tanker off the coast of Somalia, Somali officials and piracy experts said Tuesday, in the first hijacking of a large commercial vessel there since 2012.
The area where the hijacking occured is overseen by the U.S. Navy's 5th Fleet, which is based in Bahrain.
It was not immediately clear what the pirates' intentions are, but it may become one of the Trump administration's first international tests.
The Aris 13 on Monday reported being approached by two skiffs, John Steed with the organization Oceans Beyond Piracy said. The ship had been carrying fuel from Djibouti to Somalia's capital, Mogadishu, Steed said.
An official in the semiautonomous state of Puntland said over two dozen men boarded the ship off Somalia's northern coast. Another Puntland official said the ship was being moved toward the coast. Both officials spoke on condition of anonymity because they were not authorized to speak to the press.
A Britain-based spokeswoman for the European Union Naval Force operation off Somalia, Flt. Lt. Louise Tagg, confirmed that an incident involving an oil tanker had occurred and an investigation was underway.
An official said no ransom demand had been made.
"The vessel's captain reported to the company they were approached by two skiffs and that one of them they could see armed personnel on board," the official said. "The ship changed course quite soon after that report and is now anchored." The official spoke on condition of anonymity as no one was authorized to speak publicly about the incident.
It was not immediately clear who owned the ship or there it was flagged. Steed said it was UAE-owned and Sri Lankan-flagged, but the Middle East-based official said it was Greek-owned and Comoros-flagged with plans to re-flag it to Sri Lanka.
Piracy off Somalia's coast was once a serious threat to the global shipping industry. It has lessened in recent years after an international effort to patrol near the country, whose weak central government has been trying to assert itself after a quarter-century of conflict.
But frustrations have been rising among local fishermen, including former pirates, at what they say are foreign fishermen illegally fishing in local waters.
Salad Nur, an elder in Alula, a coastal town in Puntland, told the AP by telephone that young fishermen including former pirates have hijacked the ship.
"They have been sailing through the ocean in search for a foreign ship to hijack since yesterday morning and found this ship and boarded it," he said. "Foreign fishermen destroyed their livelihoods and deprived them of proper fishing."
Somali pirates usually hijack ships and crew for ransom. They don't normally kill hostages unless they come under attack, including during rescue attempts.
This would be the first commercial pirate attack off Somalia since 2012, Steed said.
A United Nations report seen by the AP in November said it had been almost three years since Somali pirates successfully hijacked a large commercial vessel, but they retain the capacity and intent to resume the attacks and lately have shifted to targeting smaller foreign fishing boats.
The EU force website currently lists no vessels or hostages held by pirates.
Concerns about piracy off Africa's coast have largely shifted to the Gulf of Guinea.

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