The Return of Teleprompter Trump
Tax Reform: Teleprompter Trump traveled to Missouri on
Wednesday to deliver the outlines of his tax reform plan and bash Missouri’s
Democratic Senator, Claire McCaskill who is up reelection in 2018 in the state that Trump won. He began
his speech by sending thoughts and prayers to the victims of Hurricane Harvey because
he was widely criticized for failing to do that during his Tuesday Texas fly by. He then provided a less than detailed overview
of his tax reform plan, the one that doesn’t really exist yet because his
staff, Treasury secretary, economic advisor and congressional leadership can’t
agree on details. For the most part his
objectives follow the traditional Republican playbook: reduce corporate taxes,
reduce taxes on high income earners,
pretend to reduce taxes on the middle class and assert that economic growth
will offset tax cuts, leaving the deficit unchanged or reduced. Trump proposed incentives to get corporations
to repatriate overseas profits and wants to reduce the corporate tax rate to an
unrealistic 15%, though his advisors believe he will be lucky to get the rate
down to 25%. He also called for the audience to vote McCaskill
out of office if she doesn’t support his tax reform legislation. He read the McCaskill threat off of the teleprompter
which means that his staff wrote those “campaign words” into his speech. Political campaign threats during official
visits, written by White House staff, are violations of the Hatch Act, not that
anyone in the White House worries about things like that. Given the tragedy unfolding in Texas, the speech
seemed ill-timed particularly since the huge costs of repairing and restoring Harvey
impacted parts of Texas and Louisiana will put further pressure on the deficit
and budget negotiations, making tax cuts more difficult to achieve.
General Rebuke: Before
leaving for Missouri, Trump responded to North Korea’s most recent missile
launch by tweet smacking “The US has been talking to North Korea, and paying
them extortion money, for 25 years.
Talking is not the answer!” Hours
later when asked about Trump’s tweet eruption during a Pentagon meeting with
South Korea’s Defense Minister, Defense Secretary Mattis contradicted Trump by emphatically
saying “We are never out of diplomatic
solutions.” Together with Secretary of
State Tillerson, General Mattis has given up trying to tow the Trump line. Both of them continue to advocate diplomacy
and sanctions over force. What earlier
looked like a “carrot and stick approach” to the North Korea problem is looking
more and more like a “just ignore what Trump says and listen to us solution.” Trump can’t be happy that Tillerson and
Mattis, who is also doing his best to limit the impact of Trump’s transgender
ban, are disregarding his direction but firing Secretaries isn’t easy,
especially given when an increasing number of Americans question your
competence. Trump is also stewing over economic
advisor Gary Cohn’s criticism about his Charlottesville comments. Cohn, who was
part of the Missouri tax reform traveling squad, was excluded from the list of
people Trump acknowledged in his teleprompter speech. At least Trump’s kids are still on board his
train. Yesterday Ivanka, who speaks
frequently about the importance of equal pay for women, announced her endorsement
of the administration’s decision to drop
an Obama era equal pay initiative that required big corporations to aggregate
information about how much they pay employees broken down by race, gender and
ethnicity.
Russia, Russia, Russia: Last
night Politico reported that Special Counsel Mueller is coordinating his
investigation into Paul Manfort and his sketchy financial transactions with New
York Attorney General Eric Schneiderman. This is bad news for both Manafort and
Trump. Trump’s pardon power applies only
to Federal crimes, if he’s hoping to pursuade Manafort to keep quiet with the
promise of a pardon, his strategy won’t work if New York charges are filed. For
his part Mueller may be using the threat of New York prosecution to box
Manafort into a corner. Schneiderman, who
extracted a large settlement from the Trump organization over fraudulent
business practices at Trump University, has a long history with Trump and would
be more than happy to help Mueller complicate the Manafort investigation. And
there is lots to investigate, last night the Wall Street Journal reported that
Manafort’s association with Oleg Deripaska, a Russian oligarch and friend of Putin,
goes back over ten years. Manafort has
represented Deripaska’s interests in Ukraine, Georgia, and Montenegro,
countries that Putin considers within his sphere of influence. For his part Trump made a curious call this
week, he let Iowa Senator Grassley, the Chairman of the Judiciary Committee,
know that he is fully supportive of regulations promoting corn ethanol, a
product near and dear to Iowa. Not so coincidentally Donny Jr is scheduled to
testify about his meeting about “Russian adoptions” in front of Grassley’s
committee soon. That “Russian adoption/Hillary dirt” meeting is getting lots of
prosecutorial attention. The Financial
Times reports that Rinat Akhmetshin, the Russian American lobbyist and
suspected Russian spy and computer hacking specialist, who attended the meeting,
has already testified to Mueller’s grand jury. Then there is that email that Trump’s lawyer, Michael Cohen sent to the
Kremlin asking for help with the Trump Moscow hotel project. The Kremlin
acknowledges that they received the missive, but claim that they didn’t
respond. After saying that his lawyers
have advised him to stop talking to the press, Michael Cohen told the
Huffington Post that pitching the hotel project while Trump was running for
president may have been gross but wasn’t illegal. Sadly, the gross but illegal defense may have
merits.
When the Sun Came Out: On Wednesday, a federal judge in Texas
blocked most of the provisions of SB 4, a Texas law that would punish local officials
who didn’t cooperate with federal government deportation efforts. The immigration
crackdown was set to go into effect on September 1. The judge ruled that there is “ample evidence”
that the law’s ban on so-called sanctuary cities will “erode public trust and
make many communities and neighborhoods less safe.” Mayors of the state’s biggest cities,
including Houston, Austin, San Antonio and Dallas all oppose the law. To put this into the context of current events,
the mayor of Houston felt compelled to reassure illegal immigrants affected by
Hurricane Harvey that the city will not be checking immigrantion status at
storm shelters. Even though the rain is
stopping in Texas more people will be needing shelter this morning. Texas is light on zoning restrictions and
industrial plant monitoring, the kind of model for government regulation that
Trump finds so appealing. With plants
built perilously close to residential communities, the risk of exposure to
hazardous chemicals leaking or exploding due to flood conditions is
multiplying. Yesterday, the Arkema group
said that there was nothing they could do to prevent one of their plants from
burning. They were right, this morning it exploded sending dangerous fumes into
the surrounding community.