Category Archives: Industry Jobs Oil Economics

Microsoft and Their $100 BILLION Offshore

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While some domestic corporations do maintain headquarter offices in the United States, their money is often elsewhere to avoid the destructive tax code. But does Microsoft get an official pass or waiver from the Obama administration?

In September of 2014, Obama and Jack Lew at Treasury took decisive action.

Washington Post: The Obama administration took action Monday to discourage corporations from moving their headquarters abroad to avoid U.S. taxes, announcing new rules designed to make such transactions significantly less profitable.

The rules, which take effect immediately, will not block the practice, and Treasury Secretary Jack Lew again called on Congress to enact more far-reaching reforms. But in the meantime, he said, federal officials “cannot wait to address this problem,” which threatens to rob the U.S. Treasury of tens of billions of dollars.

“This action will significantly diminish the ability of inverted companies to escape U.S. taxation,” Lew told reporters. “For some companies considering deals, today’s action will mean that inversions no longer make economic sense.

“These transactions may be legal, but they’re wrong,” he added. “And the law should change.”

Tax analysts praised the new regulations, saying they will make it much harder for U.S. firms to bring cash earned abroad back to the United States tax-free — a major incentive in the relocations known as tax “inversions.” It was not immediately clear, however, whether the new rules would be sufficient to head off a wave of inversions expected to cascade over the American landscape in the weeks before the Nov. 4 midterm congressional elections.

Microsoft’s Offshore Profit Pile Surges Past $100 Billion Mark

Microsoft Corp.’s stockpile of offshore profits rose to $108 billion, with a 17 percent increase over the past year as the company continues reaping profits in low-tax foreign jurisdictions.

The company crossed the $100 billion mark, making it just the second U.S. corporation — after General Electric Co. — to do so, according to a securities filing July 31. Apple Inc. has more cash abroad than Microsoft, but it already has assumed for accounting purposes that it will pay tax on some of the stockpile and thus has less than $70 billion offshore that would affect earnings directly if repatriated.

What’s keeping Microsoft’s cash abroad is the U.S. tax code. The company would be required to pay the difference between its foreign taxes and the 35 percent U.S. corporate tax rate if it brought the money home.

To get its $108.3 billion back, Microsoft would have to pay the U.S. $34.5 billion in taxes. That equals a 31.9 percent rate, which suggests that the company has paid as little as 3.1 percent in taxes on its foreign income, because of operations in low-tax Ireland, Singapore and Puerto Rico.

The Internal Revenue Service and Microsoft are in the midst of an intense legal battle over the company’s transfer pricing, or intracompany transactions. The federal government is auditing the company’s returns as far back as 2004, and Microsoft has challenged the government’s hiring of outside lawyers.

Peter Wootton, a spokesman for Microsoft, declined to comment.

Repatriating Profits

Under current law, U.S. companies owe the full 35 percent rate on profits they earn around the world, but they don’t have to pay the U.S. until they repatriate the profits. That gives companies an incentive to book profits overseas and leave them there, and that’s just what they’ve done.

U.S. companies have more than $2 trillion amassed outside the U.S., according to a Bloomberg News review earlier this year of the securities filings of 304 companies.

Apple has more than $200 billion in cash stockpiled, with almost 90 percent of it overseas. As of its most recent annual report, Apple had $69.7 billion in profits on which it hasn’t assumed taxes.

U.S. lawmakers are looking for ways to get some of that cash back in the U.S. President Barack Obama supports a one-time 14 percent tax on stockpiled profits, with the proceeds going to highways and other infrastructure programs. Some Republicans favor a similar approach and are working on a detailed plan.

POTUS Far From Lame Duck, Progressive ‘To-Do’ Items

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The arrogance of Barack Obama continues. Just a week ago, he declared he could win a third term if he ran again.

“I actually think I’m a pretty good President. I think if I ran, I could win. But I can’t,” Obama ad-libbed during a speech in Ethiopia. “There’s a lot that I’d like to do to keep America moving. But the law is the law, and no person is above the law, not even the president.”

So imagine how blindsided America is about to be from now until January 2017. What more is planned? Normalizing relations with Bashir al Assad? Normalizing relations with North Korea? Suspending Border Patrol operations completely? Federalizing all national banks? Imposing more agency regulations on Americans and business? Making all interstate roads toll roads?

Lack of imagination now could prevent you from being prepared. Consider other countries that don’t impose government tyrannical policies and have a better competing edge. Cutting military personnel to roving 4 day work weeks? Replacing Ruth Bader Gingsberg on the Supreme Court with Cass Sunstein? Bailing out the City of Chicago to the tune of $7 billion?

Let us start with what is coming almost immediately.

Obama’s big climate rule ready for Monday launch

Politico: Supporters say they plan to be at the White House for the announcement of an EPA rule that will take on power plants’ pollution.

President Barack Obama is poised to push ahead with the nation’s most ambitious environmental regulation in decades — a crackdown on power plants’ greenhouse gas emissions that the administration hopes will put the U.S. in striking distance of achieving a global agreement to combat climate change.

Environmentalists supporting the rule say they plan to be at the White House for a Monday afternoon announcement that they hope will feature the president himself, as part of what’s shaping up to be a major sales pitch both within and outside the administration. Allies including Virginia environmental groups, elected officials and green-minded business groups have also scheduled media calls for 3 p.m. Monday to react to the news.

The White House has not confirmed the timing of the announcement.

The regulation is expected to ease up on a few of the most controversial provisions that the Environmental Protection Agency included in its draft proposals in the past two years. But it will still set up a years-long legal and political battle with congressional Republicans and other opponents, who call it the major weapon in Obama’s “War on Coal,” and it promises to become a major point of contention for the 2016 presidential race.

The regulation also puts a capstone on Obama’s efforts to secure a legacy as the president who made a serious assault on global warming, without waiting for action from Congress — though he will have to depend on his successors to carry it through. States will also play a big role, with six governors so far indicating they won’t comply with EPA’s mandates.

Environmentalists, who have been pressing for Obama to announce the rule personally, call it a crucial first step in cutting the pollution that scientists blame for boosting the Earth’s temperatures and lifting sea levels. But they say far steeper cuts will still be needed if the world is to avoid the worst effects of climate change.

“This is a huge part of the president’s commitment to reducing greenhouse gases,” said Carol Browner, Obama’s first-term climate czar, who left the White House several months after the administration’s attempt at comprehensive climate legislation failed in 2010. “He has viewed the issue of climate change as something he has responsibility for under the law — the moral and ethical responsibility domestically, but also globally.”

Opponents vow that the rule will not stand. “We believe it’s legally deficient on a number of fronts and believe it’s going to have a terrible impact on citizens across the country,” said West Virginia Attorney General Patrick Morrisey, one of several plaintiffs who won a Supreme Court victory this summer over an EPA mercury rule.

Future legal challenges against the climate rule are also likely to end up in front of the Supreme Court.

The broad strokes of the rule are expected to match the drafts that EPA has issued over the past two years: By 2030, existing power plants will have to put out an average of 30 percent less carbon dioxide than they did in 2005 — a goal the U.S. is about halfway to meeting. And the rule effectively bars the construction of new coal-fired power plants, the biggest source of carbon pollution in the U.S.

Together, the requirements would change the way the U.S. produces and uses electricity, continuing an ongoing wave of coal-plant shutdowns while offering legs up to natural gas, solar, wind and maybe nuclear.

For people closely following the rule, the major questions concern how much the final rule will differ from what EPA originally proposed in September 2013 and last June. Sources have said EPA will roll back an interim pollution-cutting deadline that states and power companies attacked as unworkable, to 2022 from 2020. The agency is also expected to abandon its proposal to require future coal-burning plants to capture and store their carbon pollution, an expensive mandate that opponents said would be vulnerable in court because it violates a 2005 energy law.

States are also expected to get an extra year to submit their compliance plans to EPA — 2018 instead of 2017.

Other potential changes could include making it easier for nuclear power plants and their carbon-free emissions to count toward meeting states’ cleanup targets, changing the way that energy-efficiency initiatives are included in calculating states’ reduction goals, and altering the way that EPA’s formulas treat green energy that is produced in one state but sold in another.

And EPA could tweak the complicated formulas that set widely varying cleanup targets for each state, which in last year’s draft ranged from cuts of 11 percent for North Dakota to 72 percent for Washington state. The raw numbers don’t necessarily reflect the degree of difficulty: Washington, for instance, could meet most of its goal by closing one coal plant that’s already scheduled for retirement, EPA has said.

The costs of the rule will be big — but so will the benefits, the administration contends. Last summer, EPA estimated that the portion dealing with existing power plants would bring $55 billion to $93 billion in economic benefits, compared with $7.3 billion to $8.8 billion in costs to the economy.

But EPA’s critics note that the rule comes amid troubling financial times for the coal industry, and might even arrive on the same day that a major coal producer — Virginia-based Alpha Natural Resources — is expected to file for bankruptcy protection. That follows several other high-profile coal company bankruptcy filings.

Environmental regulations like the carbon rule and a forthcoming Interior Department rule meant to protect Appalachian streams are only part of the reason coal has dropped from nearly 50 percent of the nation’s electricity in 2005 to 39 percent last year. Inexpensive natural gas, which burns more cleanly than coal does, has taken a greater share of the market. And in some regions, coal deposits are becoming increasingly more difficult and less economical to mine.

Meanwhile, Obama’s earlier attempts to tackle climate change have struggled too. The House passed a cap-and-trade bill in 2009, but it died in the Senate the following year despite the Democrats holding a large majority. The president also stumbled with an anticlimactic 2009 climate summit in Copenhagen, Denmark. But he revived climate change as a theme late in his 2012 reelection campaign, declaring that “climate change is not a hoax,” and in his second inaugural address, in which he said failing to take on the threat “would betray our children and future generations.”

The credibility of those promises will be at stake in December, when negotiators the U.S. and other nations gather in Paris to try to reach a global climate agreement.

The final rule is also timed for maximum momentum to take advantage of the final year and a half of Obama’s time in office. Litigation over the rule is likely to last through this decade and potentially into the 2020s, making the winner of the 2016 presidential race a key figure in Obama’s climate legacy.

While it remains unclear just how far a Republican president could roll back the regulation, all sides agree a GOP White House would spell significant trouble for the carbon rule. The GOP field of 2016 candidates opposes the rule: Wisconsin Gov. Scott Walker said it is “unworkable,” while former Florida Gov. Jeb Bush has called it “irresponsible and ineffective.”

Meanwhile, Democratic front-runner Hillary Clinton has pledged to protect the rule, while it garnered praise from rival Martin O’Malley and Bernie Sanders has called for even further climate action.

 

 

Activism for Planned Parenthood Runs Deep Including a Judge

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Obama Appointee And Bundler Blocks More Video Releases By Group Behind Planned Parenthood Sting

By   (<– great work)

A federal judge late Friday granted a temporary restraining order against the release of recordings made at an annual meeting of abortion providers. The injunction is against the Center for Medical Progress, the group that has unveiled Planned Parenthood’s participation in the sale of organs harvested from aborted children.

Judge William H. Orrick, III, granted the injunction just hours after the order was requested by the National Abortion Federation.

Orrick was nominated to his position by hardline abortion supporter President Barack Obama. He was also a major donor to and bundler for President Obama’s presidential campaign. He raised at least $200,000 for Obama and donated $30,800 to committees supporting him, according to Public Citizen.

Even though the National Abortion Federation filed its claim only hours before, Orrick quickly decided in their favor that the abortionists they represent would, ironically, be “likely to suffer irreparable injury, absent an ex parte temporary restraining order, in the form of harassment, intimidation, violence, invasion of privacy, and injury to reputation, and the requested relief is in the public interest.”

The restraining order is here.

More activism:

Then there is Hillary where Planned Parenthood was working for international policy. TWS:

Planned Parenthood emailed Hillary Clinton on her private email address. The revelation comes in the most recently released trove of Clinton’s emails.

Here’s the email from Laurie Rubiner, vice president of public policy and advocacy, sent directly to Clinton. Exact copy here.

UNCLASSIFIED U.S. Department of State Case No. F 2014 20439 Doc No. C05764008 Date: 07/31/2015

RELEASE IN PART B6
From:  Abedin, Huma <[email protected]ov
>
Sent: Friday, July 31, 2009 8:09 PM
To: Rubiner, Laurie; H
Cc: preines pverveer
Subject: RE: Kenya
Laurie — She isn t doing any specific health or womens events in Kenya but I ve also shared your email with policy team at state and embassy staff in Nairobi helping to plan the trip to see if there is any way to address this.
From: Rubiner, Laurie
Sent: Friday, July 31, 1009 1:26
PM
To: hdr22@clintonemail.com Cc: Abedin, Huma; preines
Subject: Kenya
pverveer
Secretary Clinton —
I understand you are going to Kenya next week and while I know the trip is primarily focused on trade issues, I wanted to flag an issue for you because I know it is near and dear to your heart.
Kenya has one of the strictest anti-abortion laws in Africa — it is illegal unless a woman’s life is at risk and
criminalizes both the woman and the provider. Two years ago, Kenyan authorities imprisoned a doctor and
two nurses, falsely accusing them of providing illegal abortions. After a year in prison, the providers were found innocent and released, but it galvanized the legal and provider community who formed a coalition to make abortion less restrictive.
It will come as no surprise to you that, as a result of their abortion law, Kenya has one of the highest maternal mortality rates in all of Africa, with an estimated 800 women a day seeking the procedure, often through dangerous means.
Kenya is restarting a long-stalled constitutional review process and they hope to produce a final Constitution by next year. Religious groups are on a concerted crusade to include new language in the Constitution which would codify that life begins at conception . The current Constitution is largely silent on the issue. If this fetal personhood amendment goes forward, it would place Kenya in the small community of nations with such a provision. It would clearly mark Kenya as out of stop with countries attempting to institutionalize the African Union’s Maputo Protocol, one of the most progressive regional documents on women, development and reproductive rights, and with the vast majority of African countries in general. For a country trying to regain the momentum of stability and success it enjoyed until recently, such a policy imposition would be a regression for women’s rights and for the country writ large. I went to Kenya last month to work with the coalition that has formed to strategize against the Constitutional amendment and to work toward a less restrictive abortion law. I also visited several of our clinics and providers in Nairobi and in nearby villages where Planned Parenthood has programs to train providers in post abortion care. You have seen this a million times in your travels around the world, so I don’t need to tell you how poignant the stories were of the lives saved and lost, the bravery in standing u
to constant government harassment, and the fear of what this potential Constitutional amendment will mean to the provision of safe medical services. I know it is asking a lot, but if there is any way that you could draw attention to this issue when you are in Kenya, you would be even more of my personal hero than you already are. It is our hope that if Kenya knows the world is watching they may be more careful in how they proceed. Of course we would be

happy to help you in any way if you decide you want to do something on this while you are there. There is also a Congressional delegation going to Kenya the week of August 8
th
and we are working on them to have a side
meeting on this issue as well. As always, thank you so much for all you do. We are all so grateful that you are there All best, Laurie Laurie Rubiner Vice President of Public Policy and Advocacy Planned Parenthood Federation of America
(202) 973-4863(202) 973-4863 office
349
UNCLASSIFIED U.S. Department of State Case No. F 2014 20439 Doc No. C05764008 Date: 07/31/2015
 
    

Ah, but hold on, it goes all the way to the White House too.

FB and CNS: On Thursday, the White House came to the defense of Planned Parenthood calling the stream of damning videos against the organization “fraudulent.” The talking points used by the White House came straight from Planned Parenthood itself.

Now, according to the visitor log, it was discovered that the president of Planned Parenthood has made 39 visits to the Obama White House since he’s taken office.

Planned Parenthood president Cecile Richards made her first trip to the White House on Obama’s first day in office. Since then, she has met with numerous other former and current White House advisers, such as Obama’s former senior adviser David Plouffe (four times) and Valerie Jarrett (five times). Richards also attended Barack Obama’s second inaugural reception.

The Push Pull of Illegal Immigration

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By Daniel Horowitz:

In part: This week, Rep. Babin introduced the Resettlement Accountability National Security Act (H.R. 3314), which places an immediate moratorium on the refugee resettlement program until Congress reauthorizes it with a joint resolution.  The idea behind this legislation is to give the Government Accountability Office (GAO), the legislative arm of Congress, time to research the cost and scope of the program so that the people’s representatives can finally audit this unaccountable, costly, and security-challenged program.

America has served as a beacon of freedom for millions of people who have come as refugees since World War II to escape tyranny and seek the American dream.  In the past, refugees from Europe, the former Soviet Union, and Southeast Asia – just to name a few – have contributed immensely to our culture and economy.

the refugee resettlement program has become an insidious tool used by the elites to remake American society and burden the states with a huge fiscal drain.

But in recent years, much like the rest of our immigration system, the refugee resettlement program has become an insidious tool used by the elites to remake American society and burden the states with a huge fiscal drain.  Worse, it has in many ways become a refugee resettlement program for thousands of national security risks from predominantly Muslim countries from volatile parts of the world without a proper vetting system in place.  With Obama seeking to fundamentally remake America during his final 18 months in office, and with the increasing pressure to bring in more Muslim refugees from Syria, Rep. Brian Babin (R-TX) has stepped up to the plate by introducing the first piece of legislation to reinsert the people’s voice into the refugee process.  Much more here.

Illegal immigration prevention spending in Central America backfires, entices migrants

Money squandered as confusing and lenient policies encourage border crossings

The U.S. government paid for a classroom full of computers in El Salvador, but the Salvadoran government never bothered to hire a teacher, investigators said Wednesday — one of a series of bungles in the Obama administration’s plan to flood Central America with U.S. money to try to stem another surge of illegal immigration.

In an expansive report on last summer’s surge, the Government Accountability Office said confusing and lenient U.S. policies pushed illegal immigrants to make the crossing, and even cited administration officials who said President Obama’s 2012 deportation amnesty for so-called Dreamers did entice some of the surge.

Trying to get a handle on the flood, Mr. Obama has requested hundreds of millions of dollars to try to bolster society in Honduras, Guatemala and El Salvador, the three countries chiefly responsible for the surge, but GAO investigators said corruption or incompetence among the Central American governments may hinder those efforts.

In the U.S., meanwhile, Homeland Security officials poured money into public relations campaigns to try to warn would-be crossers against attempting it, but the government has no idea if those efforts worked, the GAO said.

“Carrying out ineffective campaigns could lead to higher levels of migration to the United States, which is not only potentially costly in terms of U.S. taxpayer resources but costly and dangerous to the migrants and their families,” the GAO said in its report.

Both the State Department and Homeland Security admitted they need to do a better job collecting information and evaluating what they’re doing.

The report comes a year after the surge of illegal immigrant children and families reshaped the immigration debate, drawing attention to a still-porous border and helping  sidetrack President Obama’s hopes of getting Congress to approve a bill legalizing illegal immigrants already in the country.

The surge, which totaled nearly 70,000 children traveling without a parent in fiscal year 2014, plus more than 60,000 children and parents traveling together, overwhelmed the Obama administration, which was left struggling for answers.

Initially officials blamed dangerous and economically depressed conditions in three key Central American nations for pushing illegal immigrants north, but eventually Homeland Security officials admitted that confusing and lenient policies — at least as far as illegal immigrants were concerned — were serving as a magnet to draw illegal immigrants.

In Wednesday’s report, State Department officials in Guatemala said folks there believed that if they could get to the U.S. they could qualify for Mr. Obama’s 2012 deportation amnesty — known officially as Deferred Action for Childhood Arrivals, or DACA. In reality, that amnesty only applied to illegal immigrants who had been in the U.S. for some time already, though Mr. Obama has already announced a major expansion of the amnesty.

In Honduras, meanwhile, American officials said residents believed the U.S. would allow pregnant women and mothers traveling with children to stay.

To try to counter those impressions, Homeland Security and State Department officials mounted a massive information campaign warning of the dangers of the journey  and telling illegal immigrants they wouldn’t qualify for Mr. Obama’s deportation amnesty. And here at home, the administration opened new detention space to hold the families crossing the border in an effort to ship them back home sooner and deter other would-be crossers.

But GAO investigators said the surge had already begun to ease by the time the anti-crossing public relations campaign began, suggesting that tactic didn’t help.

The story continues by clicking here.

 

 

 

Secret White House Meetings on Cuba, Shooting From the Hip

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To date, agenda items are in place for normalizing relations with Cuba, while the larger needs list to have business and economic conditions and interactions are far from successful or  advancing mostly due to distrust in the banking industry.

In part from the Miami Herald:

During a White House briefing last week with business people, academics and others who have been supportive of the normalization process, briefers said that a revision and clarification of some banking and travel rules would come out shortly. They also asked business executives to keep the feedback coming on the evolving rules.

Pompano-based Stonegate is the first U.S. bank to engage with Cuba under the regulations that came out in January.

But banks in general are very nervous about Cuba, said Ted Piccone, a senior fellow at the Brookings Institution. “Part of it is the banking culture is very conservative, but the banks also have seen that they can be heavily penalized if they don’t abide by the letter of the law.”

 

Meanwhile, as U.S. business pioneers try to strike deals, they must also contend with a Cuban system that doesn’t necessarily mesh with U.S. business practices, limited Internet service, and a Cuban bureaucracy that often seems more interested in going slow than expediting business.

Beyond the sluggish bureaucracy, the government also is testing the shifting currents with caution.

Carlos Alzugaray, a retired Cuban diplomat, points out there are reasons the government wants to go slow and not risk losing political control by allowing too swift an economic transformation or rapprochement with the United States.

Secretive White House meeting reveals Obama’s plan to visit Cuba in 2016

Washington Examiner: A secretive White House meeting on Cuba last week revealed that President Obama is mulling a visit the island nation next year, and also discussed the controversial idea of the Cuban government opening consular offices in Miami.

After hailing embassy openings in Washington and Havana last week, the White House held an off-schedule, private meeting on Wednesday with U.S. officials involved in the administration’s Cuba policy. Nearly 80 activist members of the Cuban-American community from Florida and across the United States — mostly Democrats — were also there.

Valerie Jarrett, one of Obama’s closest advisers, was on hand, along with White House deputy national security adviser Ben Rhodes and Roberta Jacobson, assistant secretary of State for the western hemisphere.

The White House Monday at first declined to talk about the meeting, and referred questions about it to the State Department. A State Department spokesman then referred the same questions to the Cuban embassy, which was already closed for the day.

On Tuesday, a White House official told the Washington Examiner that the briefing took place as part of the administration’s ongoing efforts to reach out and engage the Cuban-American community on the president’s efforts to normalize relations with the island nation.

“The president has been very clear that he supports measures to improve travel and commerce and further increase people-to-people contact, support civil society in Cuba, support the growth of Cuba’s nascent private sector and enhance the free flow of information to, from, and among the Cuban people,” the White House official said. “The president has also called on Congress to begin the work of ending the embargo.”

On Obama’s plans to travel to Cuba, the official said there are no announcements.

But according to sources familiar with the meeting, Rhodes told the group that President Obama is considering visiting the island nation next year, and will make an assessment early next year depending on progress in U.S.-Cuba relations.

While that historic visit would likely help Obama cement his legacy as the president who started to open up bilateral relations, it could be marred by or even delayed by Cuba’s arrest of dissidents. Those arrests have continued despite Obama’s gestures to Cuba, and could put Obama at risk of appearing to be too friendly with a country that often arrests members of political or religious groups dozens at a time.

Eduardo Jose Padron, the current president of Miami-Dade College who came to the U.S. as a refugee at the age of 15, used the White House meeting to ask about the state of human rights in Cuba, and State Department officials acknowledged that it is a dangerous time for dissidents on the island, one participant told the Examiner.

Andy Gomez, a retired assistant provost and dean of the University of Miami’s School of International Studies, said that so far, the Castro regime doesn’t appear to be changing its ways. Gomez previously served on the Brookings Institution’s Cuba Task Force from 2008 to 2010, and told the Washington Examiner Cuba needs to demonstrate a stronger commitment to human rights before Obama travels there or the U.S. agrees to allow it to open a consulate in Florida.

“Up until now, the Cuban government hasn’t even brought Cuban coffee to the table … I don’t see any signs of the Cuban government loosening up their control,” he said.

Pope Francis’s visit to Cuba, scheduled for later in September, he said, would be a good time for the Cuban government to release more political prisoners and demonstrate a true commitment to improving relations.

The idea of a consular office of the Cuban government in Florida is one that is already stirring debate among Cuban-Americans. During a question-and-answer session in the White House meeting, one participant asked about the chances for opening a Cuban consulate in Miami, according to a source who was there.

The White House responded that it was up to the Cuban government to decide when and where it would open the consulate.

But that response has only spurred more questions and concerns since the meeting, some of which deal with how it might hurt Hillary Clinton’s White House bid. The opening of an outpost in the heavily anti-Castro area of Miami could further anger Florida’s politically powerful Cuban-American community and create a backlash for Democrats that could hurt Clinton’s Florida presidential campaign operations.

“The consulate in Miami would create a bittersweet taste in the Cuban-American community, including those supporting these [normalization] changes,” said Gomez. “It would also hurt any chances of Hillary Clinton making inroads and gaining support among Miami’s Cuban-Americans.”

“I don’t think President Obama would do that to Hillary Clinton,” he added, noting that he believes a better place for the consulate would be in Tampa or Key West.

Ever since Obama’s December announcement to try to normalize relations with Cuba, South Florida’s major cities have fiercely debated the opening of a consulate, which would provide passport and visas services and emergency aide to visiting Cuban citizens, as well as other resources.

Officials have strongly objected to such an outpost in Miami-Dade County, home to nearly a million Cubans, the largest concentration in the world next to Havana.

But city leadership in Tampa, which has roughly 80,000 Cuban-Americans, is embracing the idea, viewing it as an economic opportunity for the city.

While recent polls have documented a generational shift in Cuban-American feelings about the Obama’s administration’s decision to re-engage with the Castro government, the political leadership in Miami is still heavily anti-Castro, dominated by descendants of those who fled the 1959 communist revolution regime, and some who had their property taken by Castro.

Rep. Ileana Ros-Lehtinen, R-Fla., who vehemently opposes Obama’s decision to restore ties, is strongly against a consulate in Miami. Two other Florida GOP congressmen, Mario Diaz-Balart and Carlos Curbelo, also are opposed, along with Miami Mayor Tomas Regalado.

Ros-Lehtinen said opening a consulate in Miami is another Obama administration effort to “legitimize an illegitimate regime.”

“Placing a Cuban consulate in Miami is nothing but an insult to so many who have been arrested, imprisoned, maimed, and tortured by the Castros and their ruthless thugs,” she told the Examiner. “This administration has done nothing but give dictators concession after concession yet what do we have to show for it? More arrests of pro-democracy activists in Cuba, a continued harboring of fugitives from American justice, and total disrespect for the suffering of victims of autocratic despots.”

Ros-Lehtinen also argues that any Cuban consulate would serve as a headquarters for espionage.

But others argue that South Florida Cuban-Americans are in real need of consular services and don’t view the opening as a serious problem.

“I would hope that it would make things easier for those traveling back home, about 400,000 are traveling back to Cuba a year,” said Jorge Duany, director of the Cuban Research Institute at Florida International University. “Right now, it’s very expensive and cumbersome to apply for a visa and make all kinds of travel arrangements.”