US Politics

The justice department has concluded its search of Joe Biden’s home on Delaware’s coast, and while it found no classified material, agents did take away some documents for further review, an attorney for the president said.“The DOJ’s planned search of the President’s Rehoboth residences, conducted in coordination and cooperation with the President’s attorneys, has concluded. The search was conducted from 8:30 AM to noon. No documents with classified markings were found,” Bob Bauer, who is acting as a personal lawyer for Biden, said in a statement.“Consistent with the process in Wilmington, the DOJ took for further review some materials and handwritten notes that appear to relate to his time as Vice President.”Federal agents have come and gone from Joe Biden’s Rehoboth Beach, Delaware home in their search for classified materials, after previously paying a visit to his residence in Wilmington and former office in Washington DC. There were no government secrets found at Biden’s beachfront property, but the search means the investigation will stay in the news for the time being. Meanwhile, Democratic lawmaker Jared Huffman is circulating a letter worrying over security in the House ahead of next week’s State of the Union address, which he says has grown worse since the GOP took control of the chamber at the start of the year.Here’s what else happened today:
Nikki Haley and Tim Scott sure seem to be preparing to campaign for president, which would put them up against fellow Republican Donald Trump.
Socialism is set to be formally denounced with a Republican-backed House resolution that has received surprising Democratic support.
Biden is having his first meeting with Kevin McCarthy since the Republican was elected House speaker, but the press is not invited.
It’s the usual partisan split when it comes to the public’s views of the unfolding classified document scandal, new polling has found.
Just about anything can spark an argument in Congress these days, including the pledge of allegiance.
Kevin McCarthy is heading to his first meeting with Joe Biden since becoming House speaker.Increasing the debt ceiling is the main item on their agenda, and as he left the Capitol, Fox News caught McCarthy again laying out his demands for spending cuts:McCarthy leaving to talk to Biden: I got a big plan. The first question is does the President want to continue reckless spending or find a way that we could be responsible. Sit down and find common ground where we put ourselves on a path to budget. Make a balanced budget.— Chad Pergram (@ChadPergram) February 1, 2023
You might not hear much more than that about the meeting, at least not for a while. According to the White House, the encounter is “Closed Press”, meaning reporters are not invited to attend. That has sparked objections from Kelly O’Donnell, vice-president of the White House Correspondents’ Association, who said prior presidents have invited journalists to observe parts of such meetings:When presidents meet House speakers, there’s a long tradition of WH press pool covering a portion of meeting to document that for the day’s news and historical record. Today’s first meeting of Pres. Biden and Speaker McCarthy should be covered the same way. pic.twitter.com/fvMzhkLoNe— Kelly O’Donnell (@KellyO) February 1, 2023
Republicans are moving forward with a plan to boot Democrat Ilhan Omar off the House foreign affairs committee, saying she used antisemitic rhetoric. But a Democratic colleague said the effort is about nothing more than revenge, the Associated Press reports. A vote on her ouster is expected Thursday:A House Republican attempt to remove Ilhan Omar from the foreign affairs committee, expected as soon as Wednesday, is about “vengeance” and “spite”, one of the Minnesotan’s fellow Democrats said.“This is about vengeance. This is about spite. This is about politics,” said James McGovern of Massachusetts, the top Democrat on the rules committee, as Republicans called a hurried meeting late on Tuesday to consider the matter.Republicans are targeting Omar, an African-born Black lawmaker, over comments she has made about Israel and as payback after Democrats kicked far-right Republicans off committees for incendiary and violent remarks. On Wednesday, the House voted 218-209 along party lines to move forward with a resolution to remove Omar from the committee. A final vote was expected later this week.The new House speaker, Kevin McCarthy, has been eager to remove Omar after blocking two other Democrats, Adam Schiff and Eric Swalwell, from the intelligence committee.Omar, a Somali immigrant and one of the first female Muslims in Congress, has apologized for comments she has said she has come to understand were viewed as antisemitic. Republican bid to kick Ilhan Omar off panel is ‘spite’, fellow Democrat saysRead moreNikki Haley, the Republican former governor of South Carolina who served as ambassador to the United Nations under Donald Trump, has a “big announcement” planned for later this month.What could it be?My family and I have a big announcement to share with you on February 15th! And yes, it’s definitely going to be a Great Day in South Carolina! 👊 🇺🇸Be sure to RSVP here: https://t.co/fxxxpBbW2b pic.twitter.com/2QJIo0H7Jo— Nikki Haley (@NikkiHaley) February 1, 2023
A run for president, is the most likely answer. Trump may already have announced a second campaign for the White House, but that isn’t scaring off other Republicans from throwing their hat in the ring.Case in point: Tim Scott, a GOP senator who is also from South Carolina, will launch “a listening tour focused on Faith in America” later this month, with stops in Iowa and South Carolina. Both states happen to be on the early primary calendar for Republicans, and often play a major role in winnowing the field of presidential nominees.The biggest name waiting in the wings is Florida governor Ron DeSantis, who has repeatedly come in second in polls of Republicans over their preferences for president.In Memphis, mourners are gathering for the funeral of Tyre Nichols, whose death at the hands of law enforcement sparked outrage and renewed calls for Congress to act on long-stalled police reform legislation.Vice-President Kamala Harris is among the attendees, and the Guardian has a blog dedicated to covering the event live:Tyre Nichols funeral begins as mourners gather at Memphis church – latestRead moreDonald Trump’s former lawyer and fixer, Michael Cohen, told CNN earlier he has handed his cellphones to prosecutors in Manhattan as they look again at a 2016 hush money payment to Stormy Daniels, the adult film star with whom Donald Trump denies having an affair.A grand jury has been convened in New York to hear evidence related to the payment, a potential campaign finance crime.Cohen said: “Most recently, they asked for my cellphones because they want to be able to extract from it the voice recordings that I had had with Keith Davidson, former attorney to Stormy Daniels before Michael Avenatti, as well as a bunch of emails, text messages and so on.”Cohen’s phones have been seized before, by federal investigators in 2018.Cohen has previously pleaded guilty to paying Daniels, whose real name is Stephanie Clifford, $130,000 to be quiet about her alleged affair with Trump, which she says happened in 2006. Cohen says Trump directed him to make the payment. Cohen’s recompense for doing so has been detailed by federal prosecutors.As CNN put it, “Manhattan prosecutors are [now] looking into whether Trump and his business falsified business records by improperly treating the reimbursement as a legal expense. That charge is a misdemeanor in New York unless it can be tied to another crime, such as campaign finance laws.”There follows more on what Stormy Daniels is up to now, containing a quote for the ages, about her experience as a stand-up comic, thus: “It was the most terrifying experience of my life, and that’s saying something because I’ve seen Trump naked.”‘It was my most terrifying experience – and I’ve seen Trump naked!’: Stormy Daniels on standup, tarot and reality TVRead moreSpeaking of the debt ceiling, the meeting at the White House later, Republican messaging as practised by Senate minority leader Addison Mitchell McConnell III – you know and love him as Mitch – and our columnist Robert Reich, here’s Robert with some pertinent preparatory reading…The dire warnings of fiscal hawks are once again darkening the skies of official Washington.They’re demanding that the $31.4tn federal debt be reduced and government spending curtailed – thereby giving cover to Republican efforts to hold America hostage by refusing to raise the debt ceiling.It’s always the same when Republicans take over a chamber of Congress or the presidency. Horrors! The debt is out of control! Federal spending must be cut!When they’re in power, they rack up giant deficits, mainly by cutting taxes on corporations and the wealthy (which amount to the same thing, since wealthy investors are the major beneficiaries of corporate tax cuts).Then when Democrats take the reins, Republicans blame them for being spendthrifts.Not only is the Republican story false, but it leaves out the bigger and more important story behind today’s federal debt: the switch by America’s wealthy over the last half century from paying taxes to the government to lending the government money.This backstory needs to be told if Americans are to understand what’s really happened and what needs to be done about it. Republicans won’t tell it, so Democrats (starting with Joe Biden) must.More:Republicans aren’t going to tell Americans the real cause of our $31tn debt | Robert ReichRead moreMitch McConnell, the Republican leader in the Senate, has issued a statement about the meeting scheduled for this afternoon between Joe Biden and Kevin McCarthy, the Republican House speaker.True to Republican messaging about spending and debt – see Reich, Robert, former US labor secretary and Guardian US columnist, passim but also here, today – McConnell says “it is right, appropriate and entirely normal that our need to raise the debt limit would be paired with negotiations regarding Democrats’ runaway printing and spending”.McConnell cites previous remarks by his opposite number, Chuck Schumer, about the debt ceiling being something that should be negotiated over, and says: “The president of the United States does not get to walk away from the table.“The same president who happily signed off on [further messaging alert] trillions of dollars of reckless party-line spending needs to begin good-faith negotiations on spending reform with Speaker McCarthy today.”Schumer spoke on the Senate floor. He said Republicans had to show the American people their plan to avoid a catastrophic default..css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}Later this afternoon President Biden will meet with Speaker McCarthy for their first one-on-one meeting of the year, and everyone is asking the same question of Speaker McCarthy: show us your plan. Where is your plan, Republicans? Where is your plan, Speaker McCarthy?McCarthy “showing up at the White House without a plan is like sitting down at the table without cards in your hand”, Schumer said, adding: “We know why the speaker has struggled and is unable to produce a plan – delaying it or avoiding it – he doesn’t have the votes for one, in all likelihood.”He concluded: “We Democrats have a plan – raise the debt ceiling without brinksmanship or hostage-taking as it’s been done before. Speaker McCarthy doesn’t have a plan. So, he is not really negotiating. And the clock is ticking.”Whatever else one might say about Lauren Boebert, the extremist Republican from Colorado, she knows how to get herself in the news.We mentioned her just a few posts ago, regarding a contretemps earlier today about security matters at the Capitol.On the House floor yesterday, the eve of Black History Month, Boebert claimed to be afraid the History Channel and even the Weather Channel could be “canceled” by the forces of wokeness – and/or DirectTV.In her remarks, Boebert bemoaned the recent decision by the cable provider to drop Newsmax, a rightwing, pro-Trump channel.Boebert said: “Will the Weather Channel be canceled next if they refuse to bow to the left’s altar of climate change? What about the History Channel? We see on a regular basis the left wants to erase history and deny truth. How about [the rightwing Christian channel] TBN?”DirecTV says it dropped Newsmax for commercial reasons, because the channel’s “demands for rate increases would have led to significantly higher costs” for customers. It replaced Newsmax with The First, another rightwing operation.But the decision has stoked rightwing anger. In Florida on Tuesday the governor, Ron DeSantis, said DirecTV’s move “does warrant investigation”.Boebert insisted it was a political decision.“This is not the first time that we’ve seen this,” the Coloradan said, “and I’m afraid that it won’t be the last time that we are seeing this here in our great country.“OAN [One America News, also pro-Trump] was de-platformed by DirecTV in April of 2022. So what’s next? Fox News?”After DirecTV dropped OAN, Yosef Getachew, media and democracy program director at Common Cause, a government watchdog, told the Guardian: “No company should profit from spreading content that endangers our democracy.”But cancel culture is a profitable rightwing talking point, holding that people with views deemed unacceptable by the left are barred from public life.Insisting “conservatives are not being treated fairly”, Boebert said: “There has definitely been an increase in disdain and intolerance by many liberals for Christian beliefs simply by saying we love Jesus. So is TBN next? Americans are tired of cancel culture.”Federal agents have come and gone from Joe Biden’s Rehoboth Beach, Delaware home in their search for classified materials, after previously paying a visit to his former office in Washington DC and residence elsewhere in the state. There were no government secrets found at Biden’s beachfront property, but the search means the investigation will stay in the news for the time being. Meanwhile, in Congress, Democratic lawmaker Jared Huffman is circulating a letter worrying over security in the House ahead of next week’s State of the Union address, which he says has grown worse since the GOP took control of the chamber at the start of the year.Here’s what else has happened today:
Socialism is set to be formally denounced with a Republican-backed House resolution that has received surprising Democratic support.
It’s the usual partisan split when it comes to the public’s views of the unfolding classified document scandal, new polling has found.
Just about anything can spark an argument in Congress these days, including the pledge of allegiance.
The House will today begin considering a resolution proposed by Republicans to denounce “the horrors of socialism” – a non-binding statement that has received a surprising amount of support from Democrats.Florida Republican María Elvira Salazar first introduced the resolution in 2021 when Democrats controlled the chamber, and has proposed it again this year with the House under GOP control. “Through this resolution, the House of Representatives denounces socialism in all its forms and opposes the implementation of socialist policies in the United States of America,” Salazar’s office said in 2021, noting it specifically singles out left-wing one-party states such as Cuba, China and the USSR, which broke up more than three decades ago.Ahead of the vote today, the second-largest Democratic caucus in the House, the New Democrat Coalition, announced their 96 members would back the measure. “New Dems strongly reject socialism – period. House Republican Leaders should set aside political games and join us as we work to grow our economy for all Americans,” the center-left group said in a statement.With support like that, the resolution seems sure to pass. But why bother with a statement condemning a governing philosophy that has few open adherents in Washington and is practiced by several of America’s best-known foes? According to Fox News, it’s an attempt to put progressive lawmakers like Alexandria Ocasio-Cortez and Rashida Tlaib on the spot, both of whom are affiliated with the Democratic Socialists of America. The justice department has concluded its search of Joe Biden’s home on Delaware’s coast, and while it found no classified material, agents did take away some documents for further review, an attorney for the president said.“The DOJ’s planned search of the President’s Rehoboth residences, conducted in coordination and cooperation with the President’s attorneys, has concluded. The search was conducted from 8:30 AM to noon. No documents with classified markings were found,” Bob Bauer, who is acting as a personal lawyer for Biden, said in a statement.“Consistent with the process in Wilmington, the DOJ took for further review some materials and handwritten notes that appear to relate to his time as Vice President.”Democrats are expressing safety concerns in the House natural resources committee after Republicans proposed rules that exclude a ban on firearms in hearing rooms, which existed in the previous Congress.Here’s how the debate started, according to NBC News:👀The Committee on Natural Resources is meeting NOW to organize and vote on their rules… Some fireworks expected: GOP side is pushing to ALLOW FIREARMS in hearing rooms and we are told DEMS will loudly object— Haley Talbot (@haleytalbotnbc) February 1, 2023
Jared Huffman, the Democratic lawmaker who is also circulating a letter questioning security in the House ahead of next week’s State of the Union speech, has proposed an amendment to reinstate the ban:Happening NOW @RepHuffman: “my amendment explicitly prohibits carrying or having readily available any firearm dangerous weapon explosive or incendiary device within the hearing rooms and conference rooms of this committee” https://t.co/9GO2PfubY3— Haley Talbot (@haleytalbotnbc) February 1, 2023
Several far-right lawmakers serve on the committee, including Lauren Boebert. In the hearing, she harkens back to a time when Huffman donned a tinfoil hat to mock her:Boebert pulls up this poster and says “looks my colleague forget his tin foil hat so I brought this to remind” pic.twitter.com/UPbdQCXFlb— Haley Talbot (@haleytalbotnbc) February 1, 2023
She then gets into her reasoning for wanting to carry a gun in the Capitol, a building where access is controlled at all hours by a large police force:BOEBERT: “With threats now at an all time high I would like to remind the gentleman that now’s not the time to be stripping members of our constitutional right to defend ourselves. DC has a violent crime problem and it’s often wondered 50% higher than the national average.”— Haley Talbot (@haleytalbotnbc) February 1, 2023
A Democratic representative is circulating a letter to congressional leadership warning that the security of the House is “precarious”, and asking what steps they will take to protect the chamber during the 7 February State of the Union address.California’s Jared Huffman blamed new rules passed under the House’s Republican leaders for worsening the security situation, and in his letter cited as evidence “the violent insurrection of January 6, an attempt by a Member of Congress to bring a concealed weapon on to the House Floor, other Members vowing to do so in contravention of House rules, and most recently a colleague distributing what appeared to be legitimate, and later revealed to be inert hand grenades on the House Floor.“We know from experience that the House is vulnerable to multiple fronts of attacks both from inside and outside Congress,” wrote Huffman. “Considering the ability of Members of Congress to carry firearms in the Capitol complex outside the House Floor, removal of magnetometers from the entrances to the House Floor, and with record threats against the lives of Members of Congress, the security of the House complex is today precarious.”Addressed to the Democratic and Republican leaders of the House and Senate, Huffman’s letter requests “information on what steps you are taking, in coordination with the House and Senate sergeant at arms, Secret Service, and other federal agencies to protect the president, vice-president, the diplomatic corps, cabinet secretaries, supreme court justices, senators, representatives, and their guests ahead of the State of the Union address on 7 February 2023. Any attack on this gathering would threaten our democracy and undermine the functionality of the entire federal government.”Huffman is circulating the letter to lawmakers interested in signing it, and plans to send it to leadership this evening, his office said. More

Republican bid to kick Ilhan Omar off panel is ‘spite’, fellow Democrat says‘This is about vengeance,’ says James McGovern of Massachusetts, the top Democrat on the House rules committee A House Republican attempt to remove Ilhan Omar from the foreign affairs committee, expected as soon as Wednesday, is about “vengeance” and “spite”, one of the Minnesotan’s fellow Democrats said.“This is about vengeance. This is about spite. This is about politics,” said James McGovern of Massachusetts, the top Democrat on the rules committee, as Republicans called a hurried meeting late on Tuesday to consider the matter.FBI finds no classified papers in search of Biden’s Delaware beach homeRead moreRepublicans are targeting Omar, an African-born Black lawmaker, over comments she has made about Israel and as payback after Democrats kicked far-right Republicans off committees for incendiary and violent remarks. On Wednesday, the House voted 218-209 along party lines to move forward with a resolution to remove Omar from the committee. A final vote was expected later this week.The new House speaker, Kevin McCarthy, has been eager to remove Omar after blocking two other Democrats, Adam Schiff and Eric Swalwell, from the intelligence committee.Omar, a Somali immigrant and one of the first female Muslims in Congress, has apologized for comments she has said she has come to understand were viewed as antisemitic.McGovern argued that Democrats removed Marjorie Taylor Greene of Georgia and Paul Gosar of Arizona for remarks far more extreme and violent against fellow lawmakers than those Omar made and apologized for.The resolution against Omar was proposed by Max Miller of Ohio, a former Trump administration official. It says “Omar’s comments have brought dishonor to the House of Representatives”.McCarthy has strained to ensure he has enough support to oust Omar. Republicans have a slim majority and several GOP lawmakers have been reluctant to engage in tit-for-tat retribution moves.Party leaders moved ahead with the resolution against Omar after several holdouts signaled their support.The action against Omar pushed ahead after the embattled New York Republican George Santos said he would step aside from his committee assignments as the House ethics committee investigates him. Santos has acknowledged embellishments about education and work experience and other aspects of his personal and professional life.Several Republicans have been wary of taking action against Omar while having to answer questions about Santos.Republicans said they were waiting for Democrats to formally nominate Omar to the foreign affairs committee, on which she served in the last Congress. Once the roster is approved by the House, Republicans would move to strip her of the seat.McCarthy acknowledged at the start of the week that member absences were having an impact on his ability to schedule the vote.Omar told CNN on Sunday the move against her was “politically motivated”.“It’s motivated by the fact that many of these members don’t believe a Muslim, a refugee, an African should even be in Congress, let alone have the opportunity to serve on the foreign affairs committee,” she said.TopicsIlhan OmarHouse of RepresentativesUS politicsRepublicansDemocratsnewsReuse this content More

Fed announces smallest interest hike in a year as inflation ‘eases somewhat’Quarter-point increase to a range of 4.5% to 4.75% signals a slowdown in Fed’s fight against soaring inflation The US Federal Reserve signaled a slowdown in its fight against soaring inflation on Wednesday, announcing its smallest hike in interest rates in almost a year.After its latest meeting, the Fed announced a quarter-point increase in its benchmark interest rate to a range of 4.5% to 4.75%, the smallest increase since March last year. “Inflation has eased somewhat but remains elevated,” the Fed said in a statement adding that “ongoing increases” will be appropriate as it seeks to bring prices down.“We covered a lot of ground, and the full effects of our rapid tightening so far are yet to be felt. Even so, we have more work to do,” said Fed chair Jerome Powell.Inflation in the US has been running at levels unseen since the 1980s, triggering a cost of living crisis as the price of everything from eggs to gas and rent has shot up.In order to tamp down inflation the Fed has aggressively hiked rates as it seeks to cool the economy and bring prices back under control.A year ago the Fed rate – which affects the interest rates on everything from business and personal loans to mortgages and credit card rates – was close to zero. After the most rapid series of rises since the 1980s, it is now at a level last seen in 2007.There are signs that prices are coming down. In December, the annual rate of inflation fell to6.5% from 7.1% in the previous month, the sixth straight month of yearly declines and well below the peak of 9.1% it hit in June, its highest rate since 1982.Consumer spending – the largest driver of the economy – fell 0.2% from November to December. The housing market has slowed and many of the major tech companies have announced large job cuts as they have moved to rein in spending.But inflation remains well above the Fed’s annual target rate of 2% and the central bank has said it will keep rates high until price stability is achieved. The Fed also continues to worry about the jobs market. The unemployment rate was 3.5% in December, a 50-year low and on Wednesday the labor department announced there were 11m job openings in the US in December – almost two available jobs for every person looking for one and an increase from November.The tight labor market has driven up wages and Powell, has made clear that the central bank believes rising wages threaten to spur on inflation – a so-called wage-price spiral. “You don’t see that yet, but the whole point is, once you see it, you have a serious problem. That means that effectively in people’s decision-making, inflation has become a real salient issue,” said Powell. “That is what we can’t allow to happen.”TopicsFederal ReserveUS economyJerome PowellEconomicsUS politicsInflationnewsReuse this content More

FBI finds no classified papers in search of Biden’s Delaware beach homeBiden’s lawyer says planned search has concluded with FBI taking some materials from his time as vice-president The FBI found no classified-marked documents during a planned search of Joe Biden’s vacation home in Rehoboth Beach, Delaware, on Wednesday, a person familiar with the matter said, as federal investigators continued to look into the potential mishandling of classified information.FBI searches Biden’s Delaware beach home in documents investigation – live updatesRead moreThe search was consensual and performed with the cooperation of Biden and his legal team, who previously searched the property and found no marked documents.The FBI took some materials and handwritten notes from Biden’s time as vice-president.In a statement earlier on Wednesday announcing the search, Biden’s personal lawyer, Bob Bauer, said: “Today, with the president’s full support and cooperation, the Department of Justice is conducting a planned search of his home in Rehoboth, Delaware.“Under DoJ’s standard procedures, in the interests of operational security and integrity, it sought to do this work without advance public notice, and we agreed to cooperate.”Biden has voluntarily allowed the justice department to search his properties in recent weeks, as investigators seek to determine how classified-marked documents from Biden’s time as vice-president and senator ended up in private office space and inside his residence.The department opened an investigation after the 2 November discovery by Biden’s personal lawyers of classified-marked documents in his office at the University of Pennsylvania Biden Center in Washington, a thinktank where he was an honorary professor until 2019.Biden’s lawyers found additional documents at his residence in Wilmington, Delaware. The FBI searched the Penn Biden Center in mid-November, as well as Biden’s Wilmington home on 20 January, when agents took possession of more documents and some handwritten notes.On Wednesday, a spokesperson for the justice department declined to comment on the FBI action.On conclusion of the search, Bauer said the “planned search of the president’s Rehoboth residences, conducted in coordination and cooperation with the president’s attorneys, has concluded. The search was conducted from 8.30am to noon. No documents with classified markings were found.“Consistent with the process in Wilmington, the DoJ took for further review some materials and handwritten notes that appear to relate to [Biden’s] time as vice-president.”The president’s cooperative stance as the investigation has progressed – and as the attorney general, Merrick Garland, appointed a Trump justice department official, Robert Hur, as special counsel – stands in stark contrast to the parallel investigation into Donald Trump.Trump remains the subject of an investigation overseen by another special counsel, Jack Smith, the former head of the justice department public integrity section, who is examining possible unauthorised retention of national security materials and obstruction of justice.The department has indicated a particular focus on obstruction, noting that Trump and his lawyers did not fully comply with a grand jury subpoena last May, seeking the return of all classified-marked documents that led to an FBI search of Mar-a-Lago in August.The FBI seized around 100 documents bearing classification markings, which the justice department has contended should have been returned to the government under the subpoena, which sought all such marked papers regardless of whether they had been declassified, as Trump has suggested they were.For months, Trump also resisted conducting a search for any classified documents the department suspected were still in his possession, even after the FBI seized classified materials. That second search turned up at least two more classified documents.By contrast, the classified documents found last year at the Biden office in Washington were returned to the National Archives as soon as they were discovered, as the office was being closed down.Trump’s vice-president, Mike Pence, was recently discovered to have classified-marked documents at his home in Indiana. Pence’s lawyer immediately alerted authorities and returned the materials to the government.TopicsJoe BidenUS politicsFBInewsReuse this content More

Republicans aren’t going to tell Americans the real cause of our $31.4tn debtRobert ReichThe rich used to pay taxes. Now they loan money to the US government – at a profit that everyone else pays for The dire warnings of fiscal hawks are once again darkening the skies of official Washington.They’re demanding that the $31.4tn federal debt be reduced and government spending curtailed – thereby giving cover to Republican efforts to hold America hostage by refusing to raise the debt ceiling.It’s always the same when Republicans take over a chamber of Congress or the presidency. Horrors! The debt is out of control! Federal spending must be cut!When they’re in power, they rack up giant deficits, mainly by cutting taxes on corporations and the wealthy (which amount to the same thing, since wealthy investors are the major beneficiaries of corporate tax cuts).Then when Democrats take the reins, Republicans blame them for being spendthrifts.Not only is the Republican story false, but it leaves out the bigger and more important story behind today’s federal debt: the switch by America’s wealthy over the last half century from paying taxes to the government to lending the government money.This backstory needs to be told if Americans are to understand what’s really happened and what needs to be done about it. Republicans won’t tell it, so Democrats (starting with Joe Biden) must.A half century ago, American’s wealthy helped finance the federal government mainly through their tax payments.Tax rates on the wealthy were high. Under Republican president Dwight Eisenhower, they were over 90%. Even after all tax deductions, the wealthy typically paid half of their incomes in taxes.Since then – courtesy of tax cuts under Ronald Reagan, George W Bush and Donald Trump – the effective tax rate on wealthy Americans has plummeted.Not only has their income tax rate dropped but other taxes that hit them hardest, such as the corporate tax, have also declined.Even as the rich have accumulated unprecedented wealth, they are now paying a lower tax rate than middle-class Americans.Trump’s 2017 tax cut – largely a handout to the rich – helped push the tax rate on the 400 wealthiest households below the rates for almost everyone else.By 2018, the 400 wealthiest American households paid a lower total tax rate – including federal, state and local taxes – than any other income group. Their overall tax rate was only 23%. It had been 70% in 1950.Middle-class and poor families didn’t benefit from the drop in income and corporate taxes. They now pay more in payroll taxes (which finance Medicare and social security) than previously, so their overall taxes have remained fairly flat.One of the biggest reasons the federal debt has exploded is that tax cuts on corporations and wealthier Americans have reduced government revenue.In the first full year of the Trump tax cut, the federal budget deficit increased by $113bn while corporate tax receipts fell by about $90bn, which would account for nearly 80% of the deficit increase.Meanwhile, America’s wealthy have been financing America’s exploding debt by lending the federal government money, for which the government pays them interest.As the federal debt continues to mount, these interest payments are ballooning – hitting a record $475bn in the last fiscal next year (which ran through September). The Congressional Budget Office predicts that interest payments on the federal debt will reach 3.3% of the GDP by 2032 and 7.2% by 2052.The biggest recipients of these interest payments? Not foreigners but wealthy Americans who park their savings in treasury bonds held by mutual funds, hedge funds, pension funds, banks, insurance companies, personal trusts and estates.Hence the giant half-century switch: the wealthy used to pay higher taxes to the government. Now the government pays the wealthy interest on their loans to finance a swelling debt that’s been caused largely by lower taxes on the wealthy.This means that a growing portion of everyone else’s taxes are going to wealthy Americans in the form of interest payments, rather than paying for government services that everyone needs.So, the real problem isn’t America’s growing federal budget deficit. It’s the decline in tax revenue from America’s wealthy combined with growing interest payments to them.Both are worsening America’s already staggering inequalities of income and wealth.What should be done? Isn’t it obvious? Raise taxes on the wealthy.
Robert Reich, a former US secretary of labor, is professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
TopicsRepublicansOpinionUS politicsDemocratsUS economyEconomicscommentReuse this content More

Citizens’ assemblies: are they the future of democracy? A look at the surge in popularity of randomly selected councils that offer an alternative to politics as we know itWhen Fauzia Bajwa, a retired software developer who lives in St-Bruno-de-Montarville, Quebec, received an invitation to participate in something called a citizens’ assembly, her first impulse was to write the letter off as junk mail. It’s a common reaction: most recipients of such a mailing never bother to respond. Then Bajwa looked at it again. The sender was listed as the Canadian Commission on Democratic Expression, a non-profit organization that compiles opinion reports to submit to the Canadian government. Though the mailing’s language was vague – the assembly would be on the subject of so-called “online harms” – Bajwa’s curiosity was piqued. After all, she’d just read a book about online surveillance, and at the time was waking up to a news cycle that seemed to revolve around the tweets of a certain president of the United States. “I found it quite concerning that people were using what I initially considered to be a very good and useful tool” – the internet – “to put out lies and fake information, so I was already thinking about these issues,” she says. She went online and signed up.Citizens’ assemblies, a phenomenon that is gaining in popularity around the globe, date back to ancient Athens, where legislative panels, courts and councils were chosen via random selection. In a practice known as sortition, Greek citizens over the age of 30 were enlisted to debate governmental matters from city finances to military strategy. More recently, citizens’ assemblies have convened to hammer out solutions to such issues as homelessness in Los Angeles, the allocation of a $5bn budget in Melbourne, Australia, and the longstanding ban on abortion in Ireland.Is the tiny little neighborhood the city of the future?Read moreIn 2017, after meeting over the course of five weekends for deliberation, an Irish citizens’ assembly came up with a recommendation to legalize the procedure. Sixty-six per cent of Irish voters later approved the referendum, ending more than four decades of fruitless political debate.Modern citizens’ assemblies are typically convened by legislative bodies, which work alongside non-profit groups to reach out to large numbers of citizens at random – sending letters like the one Bajwa received in the mail – then sorting the respondents who express interest according to social and economic factors. The result is a group of people who are randomly selected and reflect the demographics of the population as a whole.Sortition, a word that might evoke the next chapter in the Hunger Games franchise, offers a revived spin on democracy. Instead of leaving the decision-making up to elected officials, citizens’ assemblies can offer a special interests-free alternative to politics as we know it.The system is not unlike jury duty. With facilitators in place to provide background information on the issue at hand and encourage everyone’s participation, the group meets over the course of several days to learn about a problem, hear from a range of stakeholders and experts, and come up with recommendations for new legislation.Claudia Chwalisz, founder of the Paris-based international research institute DemocracyNext, has dedicated her career to promoting this resurrected model of democracy. “As the ancient Greeks and others recognized, elections are a way of constituting an oligarchy,” she says. “When the French and American revolutions led to the establishment of the institutions that today we call democratic, the word ‘democracy’ was never used – the intent was for them to be oligarchic, concentrating power in the hands of the few.”Today, when a run for Congress can come with a price tag starting at $400,000 (Senator Raphael Warnock of Georgia raised a whopping $26.4m for his run in the third quarter of 2022), the notion that government is run by the elite is pretty much a given. More than half of the members of the US Congress are millionaires. The same cannot be said of the participants in an average citizens’ assembly.And yet, more than 500 citizens’ assemblies have informed policymaking in recent years, with permanent citizens’ councils now in place in Paris, London and Ostbelgien, Belgium. These groups have deliberated on everything from affordable housing in Switzerland and taxes on corporate income in Oregon to population decline in Japan. Wherever it’s practiced, sortition facilitates meaningful conversations among everyday people, and has the potential to help fractured societies not only work on complicated problems, but learn how to live with one another. According to Peter MacLeod, founder of MASS LBP, a Toronto-based firm that works on a number of citizens’ assembly projects, “Getting opinions is not difficult. Finding common ground, however – that’s the art of the process.”But does the process actually work? A citizens’ assembly on climate in France resulted in an ambitious climate bill that promised to reduce the country’s carbon emissions by 40% – but fewer than half of the assembly’s proposals made it to parliament for debate. Without a commitment from lawmakers to include an assembly’s recommendations in bills and voter referendums, the practice can be little more than an intensive debate club.But the potential for far-reaching change is vast. In the case of overturning the abortion ban in Ireland, the assembly that recommended an amendment to the Irish constitution functioned like a “miner’s canary”, according to Peter Stone, associate professor in political science at Trinity College, Dublin. “Everyone knew that things had changed since abortion was banned in the 1980s with overwhelming support, but no one was sure how much things had changed. And for a politician, it can be very dangerous when things change.” Citizens’ assemblies, Stone argues, function as a kind of hothouse for public opinion. The act of getting a bunch of randomly selected citizens together to work out their views on a contentious subject functions as invaluable market research on the future. It not only reveals what the public believes right now, but shows also how those beliefs are changing as people talk about an issue. In Ireland, the assembly gave the Oireachtas, the Irish parliament, the political green light it needed to make a change.When Bajwa first spoke up at the Canadian assembly on digital technology, she came out against online anonymity. “You can’t just spew out hate speech or slander online from behind the veil of anonymity,” she argued. Then other members of the assembly, immigrants from places like the Philippines and the Middle East, shared their own takes. “People talked about places in the world where having your identity revealed can be a danger to your life,” she said. “It didn’t change my point of view totally, but I did modify my opinion on that.” She also learned that there were parts of Canada that had no internet access whatsoever, which surprised her and reshaped her understanding of the issue. “Being in a room with people who you would probably not meet on a day-to-day basis – that in itself was fantastic.”Critics of citizens’ assemblies – including none other than Socrates – point to the lack of expertise among the general public about a given issue. Without adequate educational materials and expert testimony, an assembly can end up relying less on fact than on opinion – or be influenced by bias in the resources they have available. The UN Democracy Fund has a guidebook that details best practices for choosing background materials and speakers at assemblies, and offers more information for participants who request it.At the digital technology assembly commissioned by the Canadian Commission on Democratic Expression, Bajwa and her fellow participants heard from 13 experts, including university professors, specialists in internet and criminal law, and even one representative from Twitter. The minister of Canadian heritage, Pablo Rodriguez, found the assembly’s process so compelling that he has requested an additional assembly to consider its findings. Legislation incorporating many of its recommendations is expected to be proposed in March.TopicsUS politicsRadical thinkingInequalityfeaturesReuse this content More

Revealed: how world’s biggest fossil fuel firms ‘profited in Myanmar after coup’Leaked tax records suggest subsidiaries of international gas field contractors continued to make millions after the coup In the two years since a murderous junta launched a coup in Myanmar, some of the world’s biggest oil and gas service companies continued to make millions of dollars from operations that have helped prop up the military regime, tax documents seen by the Guardian suggest.The Myanmar military seized power in February 2021 and according to the United Nations special rapporteur on Myanmar, it is “committing war crimes and crimes against humanity daily”. More than 2,940 people, including children, pro-democracy activists and other civilians have been killed, according to Assistance Association for Political Prisoners.Amid this violence, leaked Myanmar tax records and other reports appear to show that US, UK and Irish oil and gas field contractors – which provide essential drilling and other services to Myanamar’s gas field operators – have continued to make millions in profit in the country after the coup.The documents were obtained by transparency non-profit Distributed Denial of Secrets and analysed by Myanmar activist group Justice For Myanmar, investigative journalism organisation Finance Uncovered and the Guardian.The documents suggest that in some cases the subsidiaries of major US gas field service firms continued working in Myanmar – even after the US state department warned in January last year there were significant risks in doing business in the country – including with state-owned entities that financially benefit the junta, such as the national oil and gas company Myanma Oil and Gas Enterprise (MOGE).On Tuesday the US, UK, Australia and Canada announced more Myanmar sanctions, including on the managing director and deputy managing director of MOGE. But they stopped short of sanctioning MOGE itself.Last February the European Union became the first jurisdiction to announce sanctions against MOGE itself in light of the “intensifying human rights violations in Myanmar” and the “substantive resources” MOGE provides the junta.The EU sanctions prohibit European companies from working on Myanmar’s oil and gas field projects. But the US and UK have not yet introduced similar measures and such work – which may involve direct or indirect dealings with MOGE – is not prohibited.Among the findings, the leaked tax documents show that:
US oil services giant Halliburton’s Singapore-based subsidiary Myanmar Energy Services reported pre-tax profits of $6.3m in Myanmar in the year to September 2021, which includes eight months while the junta was in power.

Houston-headquartered oil services company Baker Hughes branch in Yangon reported pre-tax profits of $2.64m in the country in the six months to March 2022.

US firm Diamond Offshore Drilling reported $37m in fees to the Myanmar tax authority during the year to September 2021 and another $24.2m from then until March 2022.

Schlumberger Logelco (Yangon Branch), the Panama-based subsidiary of the US-listed world’s largest offshore drilling company, earned revenues of $51.7m in the year to September 2021 in Myanmar and as late as September 2022 was owed $200,000 in service fees from the junta’s energy ministry.
The services provided to Myanmar’s Asia-owned gas field operators by these companies gave vital support to MOGE, which is a major shareholder in all of the country’s most important oil and gas projects.MOGE collects taxes and royalties for the state on gas field projects, ensuring that the junta gets lucrative tax and royalty payments, as well as a vast share of profits. According to the junta’s own figures the oil and gas industry is its biggest source of foreign-currency revenue, bringing in $1.72bn in the six months to 31 March 2022 alone.Yadanar Maung, Justice For Myanmar spokesperson, called the situation “deplorable”.“Oilfield service companies in Myanmar have blood on their hands for operating in an industry that bankrolls the illegal Myanmar military junta, as it wages a campaign of terror against the people,” Maung said.“These companies have breached their international human rights responsibilities and may be complicit in the junta’s war crimes and crimes against humanity by servicing oil and gas projects that fund the junta’s atrocities.”Maung welcomed the latest sanctions but said “far more needs to be done.“So far, only the EU has sanctioned MOGE, which bankrolls the junta. We call on the US, UK, Canada and Australia to follow the EU and also sanction MOGE,” Maung said.Myanmar is one of the poorest countries in Asia but is also rich in oil and gas deposits. The country’s major projects export gas to China and Thailand, with around 20% of the gas retained for domestic use.The major gas projects in which MOGE has significant shareholdings are run by the South Korean corporation Posco International, Thailand’s PTTEP and Gulf Petroleum Myanmar, also from Thailand. Gulf Myanmar Petroleum, PTTEP and Posco were contacted for comment.Map of major oil and gas fields in MyanmarActivists argue that any role played by western gas field contractors in Myanmar’s gas and oil industry after the coup makes them complicit in the junta’s war of aggression. Some legal experts argue the contractors could face future legal issues from their activities in the country.Baker Hughes told the Guardian its contracts were signed before the coup and completed in early 2022. The company said it had not signed new contracts since the coup and had “a very limited number of personnel in the country to support critical safety and operations needs”.Halliburton, Schlumberger and Diamond Offshore Drilling did not respond to repeated requests for comment.Last January, France’s Total and US’s Chevron – which have long been criticised for their roles as gas project operators in the country – announced plans to exit Myanmar.Chevron told the Guardian that it had now sold its 41.1% interest in the Yadana Project to Et Martem Holdings, a wholly owned subsidiary of MTI Energy, a Canadian company.The situation is complicated by the US’s ambiguous stance on MOGE. Myanmar’s state-owned gems, pearl and timber industries have been sanctioned by the US but Washington has not yet tackled MOGE, the linchpin in the junta’s largest single source of foreign revenue.In 2021 the New York Times reported that the oil giant Chevron had led an intense lobbying effort against sanctions that would disrupt oil operations in the country. That report came after the UN’s special rapporteur on Myanmar, Tom Andrews, had told Congress that MOGE was “now effectively controlled by a murderous criminal enterprise” and called on it and other state entities to be sanctioned in order to “meaningfully degrade the junta’s sources of revenue”.Last January, the state department did specifically warn of the dangers of doing business in the country and cited MOGE as particularly problematic. MOGE and other state-owned enterprises “not only generate revenue for a military regime that is responsible for lethal attacks against the people of Burma, but many of them also are subject to allegations of corruption, child and forced labor, surveillance, and other human and labor rights abuses”, it warned.But while the US has put sanctions on the State Administration Council – the junta’s ruling body which controls MOGE through the ministry of energy – it has stopped short of imposing tougher sanctions on MOGE itself. And the US commerce department’s country commercial guide for Myanmar, last updated in July 2022, describes the “dynamic” oil and gas sector as a “best prospect industry” with “significant opportunities for US investors”.The Biden administration is understood to be struggling with a desire to implement stronger sanctions while maintaining good relations with Thailand, a strategic partner, and also a major buyer of Myanmar’s natural gas.Justice for Myanmr’s Maung said the Biden administration’s contradictory approach to Myanmar “has allowed US oil and gas corporations to continue business as usual in Myanmar, enabling the junta’s international crimes”.“While the Department of State has warned that dealing with MOGE risks money laundering, furthering corruption and contributing to serious human rights violations, the US Department of Commerce is advising US companies to seek profits in the oil and gas sectors in Myanmar and to compete for MOGE tenders,” Maung said. “We call on the US to stand with the people of Myanmar by imposing sanctions on MOGE and helping to cut the flow of funds to the junta.”Pressure is mounting on the Biden administration to act. Last year, the Democratic senators Jeff Merkley, Cory Booker, Dianne Feinstein, Edward Markey and Gary Peters wrote to the US treasury urging the Biden administration to impose sanctions to help stem the junta’s brutality, especially by cutting off revenues from MOGE. “MOGE sanctions are one of the most significant actions the United States could take to degrade the junta’s ability to operate,” they wrote.In December, the US House passed the National Defense Authorization Act (NDAA), which included a section outlining action on Myanmar that raised the possibility of Joe Biden imposing sanctions on MOGE but stopped short of issuing a stronger ruling.“At the end of last year, Congress made great progress in authorizing sanctions on Burma’s energy sector, which represents nearly half of the junta’s foreign currency income. The administration must use these authorities and work with regional partners to cut off the junta’s ability to fuel its brutal campaign against civilians,” Merkley told the Guardian.The European Union toughened its stance on MOGE in February 2022, expanding its sanctions against the junta, becoming the first jurisdiction to sanction MOGE itself and prohibiting the provision of technical assistance that directly or indirectly benefits the state-owned entity, with a narrow exemption for decommissioning a project.One European company, Dublin-based Gavin & Doherty Geosolutions, a specialist geotechnical engineering consultancy, secured a contract to work on Thai-owned PTTEP International’s Zawtika development project off the coast of Myanmar, according to August 2021 reports. The contract was announced before EU sanctions were imposed on MOGE but seven months after the coup. Gavin & Doherty declined repeated inquiries about the nature of the contract or whether it was still working in the country.MOGE owns a 20% of Zawtika and profits from the project flow directly to the junta.The tax documents suggest Intermoor, a subsidiary of UK-based Acteon, a subsea services company, also continued to profit from work in Myanmar until at least February 2022. The UK has issued sanctions against some individuals and entities in Myanmar. But like the US, it has so far stopped short of sanctioning MOGE and no UK sanctions prohibit working directly or indirectly with the junta-controlled entity.Filings to Myanmar’s tax authority by Diamond Offshore Drilling indicate it made repeated payments to Intermoor between October 2021 and February 2022 for work done on behalf of Posco International. Posco runs the Shwe gas project, which in 2020 Intermoor had publicly announced it was working on. MOGE has a 15% stake in Shwe, in addition to the revenue it gets from taxes and royalties.A Justice For Myanmar source, verified by the Guardian, has confirmed the presence of InterMoor personnel in Myanmar in 2021 and 2022.Neither Intermoor nor its parent company, Acteon Group responded to repeated requests to comment on this story.Despite US and UK reluctance to target MOGE, environmental lawyers claimed companies working on gas projects in Myanmar still faced legal risks from their activities.Ben Hardman, Myanmar policy and legal adviser at Earthrights, a Washington-based human rights and environmental non-profit, said: “Oil field service companies are not just working with international oil majors, they are supporting joint ventures with MOGE, a government agency that has effectively been taken hostage by the junta. When the companies submit an invoice, the junta ultimately pays a share of them and the support of these companies ensures that the junta can keep seizing revenues that flow through MOGE.“If these companies have an EU presence, they are at severe risk of breaching EU sanctions on MOGE. Companies in the US and the UK also face risks because both governments have sanctioned the junta’s State Administration Council, which controls MOGE’s management and revenues.”TopicsMyanmarMyanmar coupOil and gas companiesSouth and central AsiaUS politicsIrelandThailandnewsReuse this content More

Arizona’s top election official seeks investigation into Republican Kari LakeLosing gubernatorial candidate may have violated a state law that protects voter’s signatures, Democrat Adrian Fontes says The Arizona secretary of state, Adrian Fontes, asked the state attorney general Monday to investigate and potentially charge the losing Republican candidate for governor with a felony for sharing images of voters’ signatures online.Fontes, a Democrat, said GOP gubernatorial candidate Kari Lake may have violated a state law that protects a voter’s signature from being accessed or shared by anyone other than the voter or an “authorized government official in the scope of the official’s duties”. Violations of this law carry a class six felony charge, the lowest-level felony in Arizona.Revealed: Trump secretly donated $1m to discredited Arizona election ‘audit’ Read moreLake posted the voters’ signatures on Twitter on 23 January, claiming they were part of a “bombshell” that showed mismatching signatures that shouldn’t have been counted, a frequently repeated claim after Republican losses in 2020 and 2022. The signatures she posted were from 2020 ballots.In his letter to the Democratic attorney general, Kris Mayes, Fontes asked that Mayes “investigate and take appropriate enforcement action against Kari Lake”. Mayes’ office confirmed receipt of the referral but said it wouldn’t have further comment on the matter at this time.Despite her loss, Lake has continued to fundraise based on the false premise that she actually won the governor’s race and that the election results will be overturned. Lake’s run for governor focused heavily on the false assertion that the 2020 election was stolen. She held a rally in Scottsdale on Sunday when Donald Trump appeared by phone and said Lake will be “victorious” in her effort to overturn the 2022 election.Since Fontes’ referral became public, Lake has retweeted several accounts who called Fontes’ election into question and who have said the referral was proof that Lake was correct in her claims of a stolen election.Lake wasn’t the first to share voters’ signatures to make claims about their validity. The signatures have been shared by state lawmakers and election-denial groups in presentations at the state legislature, Votebeat’s Jen Fifield pointed out on Twitter, though it’s not clear how the confidentiality of the signatures was originally breached.TopicsArizonaThe fight for democracyUS politicsRepublicansDemocratsnewsReuse this content More