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Nothing is needed more than to replace the activist U.S. Attorney General Eric Holder. But be careful what you ask for. Loretta Lynch has been visiting the halls of Congress for the normal pre-confirmation hearing interviews and there are some in Congress that are already voicing concerns. Those concerns have cause.
On the heels of the death of Eric Garners in New York after his arrest by the New York Police Department, Lynch visited the Garner family to discuss the federal prosecution. Additionally of note, it was Lynch’s office that indicted Congressman Michael Grimm of Staten Island over an IRS matter, when other congressmen such as Charlie Rangel got a pass.
So when it comes to the hearing for her confirmation, the questions posed to Lynch will be carefully crafted to determine her approach to enforcing the law will be a departure from that of Eric Holder’s. Here is a clue as to the reasons for concern.
David Vitter believes that Loretta Lynch, President Obama’s attorney-general nominee, might be even more dangerous than Eric Holder, the man she will replace if confirmed. The Louisiana senator met privately with Lynch this week in his capacity as a Republican member of the Senate Judiciary Committee. He tells NRO that Lynch, the U.S. Attorney for the Eastern District of New York, is quieter and more restrained than Holder, which he worries will deflect attention from some of the Justice Department’s more outrageous actions and policies.
Vitter’s warning about Lynch should not be taken lightly. While he previously said that Holder has directly attacked his state more than any other attorney general has, Vitter thinks Lynch may pose an even greater threat. In their extensive one-on-one meeting, Vitter says, Lynch would not answer several of his questions about her position on the president’s executive action on immigration. His Republican colleagues have refrained from raising questions about her nomination, which has puzzled him, given the intense debate the executive action is inspiring in the Capitol. “I mean, she would say nothing; if I asked her if the sky was blue, I don’t think she would have committed to it in the meeting,” Vitter says. “I found her responses in the conversation about executive amnesty not just frustrating . . . but sort of unbelievable.”
Vitter says that when he asked Lynch directly about her legal assessment of the president’s executive action, she made a vague statement suggesting that Obama was within his legal rights when he exercised prosecutorial discretion to defer or delay the deportation of millions of illegal immigrants. But when Vitter pressed her about the legality of producing new documents and work permits to satisfy the action, which he says has no basis in law, she clammed up.
Conservative watchdogs have also recognized Lynch’s potential to maintain or expand many of the most troubling policies begun under Holder. Peter Flaherty, president of the National Legal and Policy Center, says that while Republicans should be slow to confirm any of President Obama’s nominees so long as he persists with executive action on immigration, Lynch is a particularly ill-chosen candidate. “What’s not realized is that Lynch is kind of Eric Holder’s hand-picked successor,” Flaherty tells NRO. “I expect her to be an activist just like Holder.” Hans von Spakovsky, a senior legal fellow at the Heritage Foundation, agrees and says Lynch’s time as an adviser to Holder has shown that she does not think he has done anything wrong. “I think she will be an Eric Holder mini-me,” von Spakovsky says. “They don’t need another Eric Holder clone running the Justice Department.”
With that in mind, conservatives in the Senate will look to use Lynch’s confirmation hearing as leverage to fight the president’s executive action on immigration. But Vitter says he’s not sure how many Republicans on the Judiciary Committee will support his effort to block Lynch’s nomination. He gets the sense that opposition to the president’s executive action is waning among his Republican colleagues as a result of pressure from the party’s leaders, and he’s none too pleased about it. “I think it’s really stupid, quite frankly, and being particularly gutless when you look at the American people’s position on this,” Vitter says. “It’s an important place to take a stand because this is a key nomination in the middle of this issue.”
Judiciary Committee chairman Chuck Grassley is sympathetic to Vitter’s desire to quash the executive action on immigration, but he may not agree with his method. Grassley spokeswoman Beth Levine says the senator had a pleasant conversation with Lynch when the two met last month, and he’s reserving judgment until Lynch has the opportunity to come before the committee.
Republicans’ chances of blocking Lynch’s confirmation will depend upon her performance before the Judiciary Committee. “You’ve got to get her to say something absolutely outrageous during the hearings, because most people don’t follow this stuff that closely,” GOP strategist Ford O’Connell tells NRO. “You cannot just go in there and go, ‘I can’t stand you, the Obama administration stinks.’” O’Connell says that if Republicans appear to be picking on an African-American woman and using her confirmation hearing to voice their grievances with the Obama administration, then public opinion could quickly turn against them. He adds that he thinks Republicans will ultimately cut a deal with the White House and confirm her. Republicans should use Lynch’s confirmation hearing, he suggests, to fight the executive action, since they probably won’t be able to extract much from the White House in return for approving her nomination.
Vitter, who is running to replace Louisiana governor Bobby Jindal later this year, is champing at the bit to oppose Lynch’s nomination. He says he has proposed blocking the nomination partly as an alternative to fighting over whether to fully fund the Department of Homeland Security, which is largely responsible for the implementation of the president’s executive action. DHS funding is scheduled to run out at the end of February, after a deal cut in December excluded the department from longer-term appropriations that fund the rest of the federal government. Vitter says he still supports legislation to withhold funding for the president’s executive action, but he thinks many of his Republican colleagues are “scared to death” of even talking about defunding any portion of the federal government.
Alabama senator Jeff Sessions, another tireless opponent of the president’s executive action on the Judiciary Committee, is a likely ally in Vitter’s effort to block Lynch’s nomination. “No senator should vote to confirm anyone to this position who does not firmly reject the president’s planned executive amnesty — or any other scheme to circumvent our nation’s immigration laws — and who does not pledge to serve the laws and people of the United States,” Sessions toldBreitbart in September. Republican Judiciary Committee members Ted Cruz and Mike Lee have pledged to give Lynch a fair hearing, but have also said she must answer questions about whether or not the president’s executive action was constitutional and legal.
Lynch did not answer requests for comment made to her U.S. Attorney’s office in New York. Grassley’s spokeswoman says the chairman is planning on scheduling the hearing for the end of this month or early February. Lynch’s confirmation will be the first key battleground over executive action for the Republican-led Senate, which rode to victory in November partly on the strength of their opposition to amnesty. Republican senators’ approach to Lynch’s hearing could determine whether they have any chance of slowing the president’s executive action, which makes their relative silence on her nomination all the more deafening.
The State of the Union speech is right around the corner and Barack Obama flying Air Force 1 into overdrive pushing items he wants to take credit for including lower gas prices.
The Veterans Affairs system is still broken. Though the House and Senate passed the start of good reform last year, the bureaucracy still needs major reforms so that veterans get the care they need in time. But the President still hasn’t taken the time to offer a long-term plan to fix the VA. President Obama needs to change his priorities.
It’s time for the White House to stop blocking bipartisan bills that the people want and get to work on real solutions and genuine reform. Don’t drive past the problems, Mr. President. Start helping us fix them.
In the first two days of the new Congress, President Obama has already issued three veto threats against bipartisan bills. Despite the bills having strong support on both sides of the aisle, President Obama has indicated that he will veto bills restoring the 40-hour workweek under Obamacare, approving the Keystone XL pipeline, and delaying a part of the flawed Dodd-Frank regulations.
President visits Ford’s Michigan Assembly Plant today
“I would strongly advise American consumers to continue to think about how you save money at the pump because it is good for the environment, it’s good for family pocketbooks and if you go back to old habits and suddenly gas is back at $3.50, you are going to not be real happy,” the President told The Detroit News in a phone interview, ahead of his visit to Ford’s Michigan Assembly Plant today.
“The American people should not believe that … demand for oil by China and India and all these emerging countries is going to stay flat,” Obama told The Detroit News. “Just demographics tell us demand is going to continue to grow, that over the long term it will grow faster than supply and we have to be smart about our energy policy,” he said.
Obama is using the stop at the Ford facility in Wayne, Michigan to tout his administration’s auto industry bailout. The facility, where Ford produces the Focus and C-Max, is currently idle due to slow sales.
One Estimate Puts Lost Tax Revenue at Close to $20 Billion Over a Decade
How much revenue does the U.S. Treasury stand to lose from corporate tax inversions? It is difficult to say precisely, but one estimate puts the figure at close to $20 billion. Calculating how much the U.S. Treasury would lose is nearly impossible because of a dearth of reliable tax data from companies’ public filings and the variables in how companies can structure their businesses, tax experts say. One way companies seek to reduce their U.S. tax bills by reincorporating overseas is to transfer pretax income from their U.S. operations to their foreign parent companies through intercompany debt, says corporate tax consultant Robert Willens. But it is difficult to know how large of an impact that will have for a given company because of limits on how much interest companies can deduct from their taxable income. There is also a risk that companies act too aggressively attract scrutiny from the Internal Revenue Service. Another variable is the cash many companies keep overseas to avoid U.S. taxes. The cash only becomes taxable once it is brought back to the U.S. to pay dividends to shareholders or is used for other purposes. But companies don’t always disclose how much cash they bring back home or when.
Some companies say they were never going to repatriate the cash anyway, so they aren’t depriving the U.S. tax base of revenue by moving out of the country. Report: 1 million corporations closed, 60,000 a year; taxes blamed America has lost 1 million corporations since their height during the Reagan era, in part driven out of business by the industrialized world’s highest corporate tax rate, according to a new report from the nonpartisan Tax Foundation. The just-issued research revealed that the number of traditional “C” corporations has fall to a “historically low level” and wiped out the corporate tax base, resulting in the federal government relying much more on individual income taxes to fund its operation. “There is now more net business income taxed under the individual income tax system than the traditional corporate tax code, a trend that does not appear to be stopping any time soon,” said the report provided to Secrets. It said that corporate closings have recently picked up steam and now 60,000 a year are shut down. A driver in the loss of traditional corporations has been the ever-rising corporate tax rate, an issue Washington has been ducking for years. The Tax Foundation said that many corporate titans have taken matters into their own hands by restructuring as “pass through” operations which allows profits to be taxed at lower individual rates. “More than 60 percent of U.S. business profits are now taxed under the individual income tax code rather than the corporate tax code, which explains why the U.S. collects a relatively small amount of tax revenue from corporations despite having the developed world’s highest corporate tax rate,” said the foundation. “Although this kind of do-it-yourself tax reform is beneficial to the overall economy because it lowers the tax burden on business investment, something is nevertheless lost,” said Tax Foundation Chief Economist William McBride in a statement. “Pass-through businesses do not offer the same ability to invite investment from thousands of shareholders or easily transfer shares. That means the decline of the traditional corporate sector represents an economic distortion that is hobbling American industrial capacity and job growth. No other developed country has such a distorted business sector,” he added.
America has lost 1 million corporations since their height during the Reagan era, in part driven out of business by the industrialized world’s highest corporate tax rate, according to a new report from the nonpartisan Tax Foundation.
The just-issued research revealed that the number of traditional “C” corporations has fall to a “historically low level” and wiped out the corporate tax base, resulting in the federal government relying much more on individual income taxes to fund its operation.
“There is now more net business income taxed under the individual income tax system than the traditional corporate tax code, a trend that does not appear to be stopping any time soon,” said the report provided to Secrets.
It said that corporate closings have recently picked up steam and now 60,000 a year are shut down.
A driver in the loss of traditional corporations has been the ever-rising corporate tax rate, an issue Washington has been ducking for years.
The Tax Foundation said that many corporate titans have taken matters into their own hands by restructuring as “pass through” operations which allows profits to be taxed at lower individual rates.
“More than 60 percent of U.S. business profits are now taxed under the individual income tax code rather than the corporate tax code, which explains why the U.S. collects a relatively small amount of tax revenue from corporations despite having the developed world’s highest corporate tax rate,” said the foundation.
“Although this kind of do-it-yourself tax reform is beneficial to the overall economy because it lowers the tax burden on business investment, something is nevertheless lost,” said Tax Foundation Chief Economist William McBride in a statement.
“Pass-through businesses do not offer the same ability to invite investment from thousands of shareholders or easily transfer shares. That means the decline of the traditional corporate sector represents an economic distortion that is hobbling American industrial capacity and job growth. No other developed country has such a distorted business sector,” he added.
Then comes Congress with threats:
The Senate’s chief tax writer, Ron Wyden, wants U.S. companies looking to move abroad for a lower tax bill to understand one thing: “[T]hey won’t profit from abandoning the U.S.”
The Democrat’s comments, made in a Wall Street Journal op-ed last week, came amidst a spate of proposed mergers between major American companies and foreign rivals that would end up in their reducing their U.S. tax bill.
The proposed merger that’s gotten the most attention of late: The so far unsuccessful bid by Pfizer (PFE) for British pharmaceutical maker AstraZeneca (AZN).
Today, a U.S. company can move to a more tax-friendly country in a process known as “inversion” if the foreign partner owns more than 20% of the stock in the merged entity, among other requirements.
Wyden wants to raise that threshold to at least 50%, and he would like to make such a provision retroactive to May 8, 2014.
Last April, Attorney General at the Department of Justice in cadence with the Obama doctrine announced broader criteria for non-violent offenders serving sentences for narcotic crimes. This announcement set the table for the release of up to 200,000 criminals and the sentencing judges were never consulted nor were the police officers as part of the debate prior to this decision.
Almost a year later, Eric Holder’s ‘Smart on Crime’ operation has received thousands of applications for clemency and few cases have either been reviewed or granted. Questions are numerous most of all was this a ploy? It seems the Justice Department has turned to the ACLU. Another outsourcing operation to a complicit organization.
