Thursday December 12, 2019

House Democrat Issues Subpoenas for U.S. President Donald Trump Tax Returns

0
//
US
House Ways and Means Committee Chairman Richard Neal, D-Mass., who is demanding President Donald Trump's tax returns for six years, is joined at right by Rep. Tom Reed, R-N.Y., at a hearing on taxpayer noncompliance on Capitol Hill in Washington, May 9, 2019. VOA

A top House Democrat on Friday issued subpoenas for six years of President Donald Trump’s tax returns, giving Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig a deadline of next Friday to deliver them.

Ways and Means Committee Chairman Richard Neal, D-Mass., issued the subpoenas days after Mnuchin refused to comply with demands to turn over Trump’s returns. Mnuchin told the panel he wouldn’t provide Trump’s tax records because the panel’s request “lacks a legitimate legislative purpose,” as Supreme Court precedent requires.

Neal reminded the two Trump appointees in a Friday letter that federal law states that the Internal Revenue Service “shall furnish” the tax returns of any individual upon the request of the chairmen of Congress’ tax-writing committees and that Ways and Means “has never been denied” a request.

Donald Trump
Neal originally demanded access to Trump’s tax returns in early April. VOA

Refusals to comply

The White House and the Democratic-controlled House are waging a multifront battle over investigations into Trump, and the administration has been refusing to comply across the board — refusing to comply with subpoenas for the unredacted report by special counsel Robert Mueller and documents related to the testimony by former White House counsel Donald McGahn.

Neal originally demanded access to Trump’s tax returns in early April. He maintains that the committee is looking into the effectiveness of IRS mandatory audits of tax returns of all sitting presidents, a way to justify his claim that the panel has a potential legislative purpose. Democrats are confident in their legal justification and say Trump is stalling in an attempt to punt the issue past the 2020 election.

FILE - Treasury Secretary Steven Mnuchin testifies before a House Appropriations subcommittee, April 9, 2019, on Capitol Hill in Washington.
Treasury Secretary Steven Mnuchin testifies before a House Appropriations subcommittee, April 9, 2019, on Capitol Hill in Washington. VOA

In rejecting the request earlier, Mnuchin said he relied on the advice of the Justice Department. He concluded that the Treasury Department is “not authorized to disclose the requested returns and return information.” Mnuchin has also said that Neal’s request would potentially weaponize private tax returns for political purposes.

“While I do not take this step lightly, I believe this action gives us the best opportunity to succeed and obtain the requested material,” Neal said in a statement.

President won’t budge

Trump has privately made clear he has no intention of turning over the records. He is the first president since Watergate scandal of Richard Nixon’s presidency to decline to make his tax returns public, often claiming that he would release them if he were not under audit.

Also Read: Time To Ditch Up Your Dresses! Get Ready For All The New Summer Stuff

“What’s unprecedented is this secretary refusing to comply with our lawful … request. What’s unprecedented is a Justice Department that again sees its role as being bodyguard to the executive and not the rule of law,” said Rep. Bill Pascrell, D-N.J. “What’s unprecedented is an entire federal government working in concert to shield a corrupt president from legal accountability.”

But the president has told those close to him that the attempt to get his returns was an invasion of his privacy and a further example of what he calls the Democrat-led “witch hunt” — like Mueller’s Russia probe — meant to damage him. (VOA)

Next Story

Economy to Overcome Other Issues in 2020, says Trump

President Donald Trump is hoping that simple message in 2020 will help foil his eventual Democratic Party challenger. 

0
President Donald Trump
U.S. President Donald Trump attends a Keep America Great Rally at the Rupp Arena in Lexington, Kentucky, U.S. VOA

“It’s the economy, stupid” has been a catchphrase of U.S. presidential politics since the 1992 campaign, when Bill Clinton unseated incumbent George H.W. Bush. Nearly three decades later, U.S. President Donald Trump is hoping that simple message in 2020 will help foil his eventual Democratic Party challenger.

Trump — in tweets, at political rallies and in remarks to reporters — constantly emphasizes the performance of the U.S. economy, stock market surges, low unemployment rates and his tax cuts to boast he is doing a great job as president.

Economists and political analysts are divided on whether that message will enable the incumbent to stay in office beyond January 2021.

Culture war, partisan split

Ever since Clinton, “we’ve all kind of assumed that should be true. And I think for the most part, it is,” said Ryan McMaken, senior editor and economist at the Mises Institute, a politics and economics research group in Alabama. He cautioned, though, that Trump finds himself on one side of a culture war that his predecessors did not have to confront, as well as a deep partisan divide on consumer confidence.

Walmart Supercentre
Balo Balogun labels items in preparation for a holiday sale at a Walmart Supercenter, in Las Vegas. Black Friday once again kicks off the start of the holiday shopping season. But it will be the shortest season since 2013 because of Thanksgiving falling on the fourth Thursday in November, the latest possible date it can be. VOA

Policy analyst James Pethokoukis at the Washington-based American Enterprise Institute, a public policy research group, also is cautious about the economy prevailing over all other issues.

“Just having a strong economy is not going to guarantee you re-election,” he said. “People often point back to the 2000 election, which occurred after a decade of tremendous economic growth any way you want to measure it — gross domestic product, jobs and wage growth. And yet, [Clinton’s vice president] Al Gore still lost that election to George W. Bush.”

McMaken questioned whether voters in key swing states — such as Wisconsin, Michigan, Pennsylvania and Ohio — who cast ballots for Trump in 2016 were experiencing enough of the touted economic performance to vote again for the president.

Overall, however, “it’s not a bad economy to run on if you’re Donald Trump,” said Pethokoukis.

Trump, said to have concerns about the direction of the economy ahead of next November’s election, will likely push for more tax cuts, passage of a renegotiated North American trade pact and continued pressure on the country’s central banking system, the Federal Reserve, to lower interest rates.

A LB Steel LLC's employee manufactures a component
A LB Steel LLC’s employee manufactures a component for new Amtrak Acela trains built in partnership with Alstom in Harvey, Illinois, U.S. VOA

Trouble ahead?

There are rumblings of economic storm clouds on the horizon. The impact can be seen in Trump’s trade war with China, which has hurt U.S. farmers and raised prices for consumer goods. It’s also reflected in the Institute for Supply Management’s Manufacturing Index, an underperforming U.S. Private Sector Job Quality Index and a ballooning record national debt, in addition to the worrying level of money owed to creditors by middle-class Americans.

“We’ve actually been in a sort of a manufacturing recession, seen a shrinkage of factory jobs, the exact kinds of jobs that I’m sure that people voting for the president thought would be a lot better now,” said Pethokoukis.

So far, none of this has prompted a major stock market correction.

“There seems to be a lot of adaptations in the markets to Trump’s America. That may work to his advantage,” said the Mises Institute’s McMaken.

Analysts note a lack of emphasis on economic platforms so far by the leading Democratic U.S. presidential candidates seeking to oust Trump next year.

But such a platform is likely to be touted when the opposition party holds its convention next July in Milwaukee and picks its campaign ticket. Pethokoukis suggested the Democratic Party should devise a plan with a goal to boost American worker productivity, which has flatlined for years.

The great divide

McMaken pointed out that the widening chasm between the well-off and those struggling economically in the United States makes Trump vulnerable — something emphasized by left-leaning Democratic presidential contenders such as Bernie Sanders and Elizabeth Warren.

Donald Trump says the economy isn't doing well
Tents and tarps erected by homeless people are shown along sidewalks and streets in the skid row area of downtown Los Angeles, California, U.S. VOA

“On the ground level, I would say just in general, the economy isn’t doing as well,” concluded McMaken.

ALSO READ: Greed For Power May Demolish The Democracy

Amid an impeachment drive by the Democrats, Trump is repeatedly hammering on a specific message to those questioning his suitability for office while being impressed with the performance of their pension accounts during his presidency.

“Love me or hate me, you’ve got to vote for me,” Trump said at a rally in New Hampshire in August, warning that Americans’ investments portfolios would go “down the tubes” if he lost next year’s election. (VOA)