Kleptocracy – immigrationcourtside.com

BESS LEVIN – THE LEVIN REPORT – After A Year Of Being One Of Trump’s Chief Toadies To Fulfill Dream Of Big Tax Cuts For Fat Cats That Cripple The Government, Screw The Needy, & Blow Up The Deficit, “Spineless Paul” Ryan Panics When Trump Goes Bonkers On Tariffs!

Levin writes for Vanity Fair:

“For his entire adult life and, let’s be honest, probably a good portion of his teen years, Paul Ryan has fantasized about tax cuts the way some people fantasize about having sex with a porn star. Not just any old tax cuts, of course, but the kind that disproportionately benefit corporate America and the upper-echelons of the ultra rich, while handing average Americans an extra buck fifty a paycheck and expecting an outpouring of gratitude in return. We know this because 1) he’s openly and unabashedly obsessed with Ayn Rand, and 2) just a few short months ago, the House Speaker released a sizzle reel highlighting his many urgent calls for tax cuts spanning nearly 20 years in office. In Donald Trump, a man who has never demonstrated conviction in anything other than enriching himself and other people named Trump, Ryan saw an opportunity for his longtime dream to become a reality. That’s why, for more than a year now, Ryan has put up with everything from the president demanding loyalty from the head of the F.B.I. (“he’s new at this!”) to his decision to give Nazis a free pass (“he’s learning!”) to his refusal to release his tax returns, even though Wisconsin’s first son could compel to do so (“tee-hee!”). And in December, Ryan’s commitment to holding his nose and looking the other way paid off, big time.

This week, though, we learned that there are, in fact, limits to what Ryan will put up with, and they involve imperiling the legacy of his tax bill and upsetting his corporate sugar daddies. In the wake of the president’s decision to announce that he plans to effectively start a trade war, Ryan’s spokeswoman, AshLee Strong, said in a statement on Monday: “We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan. The new tax-reform law has boosted the economy and we certainly don’t want to jeopardize those gains.” To be clear, most people outside of the G.O.P. already expect the long-term effects of the tax bill to be a deficit-busting mess. But with Trump’s call to slap steel and aluminum imports with 25% and 10% tariffs, more or less out of spite, the havoc wreaked on the economy could be even worse, with experts estimating 146,000 job losses, among other consequences. Presumably, Ryan was also inspired to find his voice on the issue—and to fire off at least one passive-aggressive tweet—on account of the fact that the Koch brothers, who donated half a million dollars to his fundraising committee after the bill passed, harshly condemned the tariffs. And as they teach lawmakers on their first day on Capitol Hill, one mustn’t upset one’s benefactors.

Trump, though, apparently could not care less about Ryan’s (or anyone else’s) concerns, telling reporters Monday “we’re not backing down” and that the tariffs are “100 percent” happening. The U.S., he said, has been “ripped off” by other countries for too long, and “we are going to take care of it.” Perhaps the one ray of hope in this otherwise terrifying situation? Because this whole thing was put together in such a half-assed, completely slipshod way, Trump’s advisers—the ones who support the tariffs—are already hedging their bets:

Peter Navarro, an adviser and the architect of many of Mr. Trump’s campaign-trade promises, confirmed on Sunday that the president would not exclude any country from the tariffs but said individual companies could apply for exemptions for certain products. . . . Navarro [also] left room for change in the timing of the tariffs, which the president said would be signed this week. “Toward the end of the week,” Mr. Navarro said in a separate appearance on CNN’s State of the Union, when asked when the tariffs would be announced. “At the latest, it would be the following week.”

Wilbur Ross, the secretary of commerce, also appeared to leave room for the president to change his mind. “Whatever his final decision is, is what will happen,” Mr. Ross said on NBC’s Meet the Press. “What he has said he has said. If he says something different, it’ll be something different.” “If he for some reason should change his mind, then it will change,” Mr. Ross added, noting that he had no reason to believe that the president would do so.

Or as a top Republican put it to Politico: “I’ve stopped worrying and reacting to the day-to-day because you get all stressed out about something, then you realize tomorrow morning by lunch that it’s never going to happen.”

Report: Trump’s personal lawyer couldn’t believe he wasn’t immediately reimbursed for $130,00 porn-star payment

It’s almost as though you can’t trust a guy who (allegedly!) had an affair with an adult film star named Stormy Daniels right after his wife gave birth to their son:

The lawyer, Michael Cohen, wired the money to a lawyer for former actress Stephanie Clifford, known professionally as Stormy Daniels, from an account at First Republic Bank. The money was received on Oct. 27, 2016, 12 days before the presidential election, another person familiar with the matter said…Mr. Cohen said he missed two deadlines earlier that month to make the $130,000 payment to Ms. Clifford because he couldn’t reach Mr. Trump in the hectic final days of the presidential campaign, the person said.

Ms. Clifford was owed the money in return for signing an agreement that bars her from discussing an alleged sexual encounter with Mr. Trump in 2006, people familiar with the matter said. After Mr. Trump’s victory, Mr. Cohen complained to friends that he had yet to be reimbursed for the payment to Ms. Clifford, the people said.

Honestly, finance departments should really provide expense-report templates for this kind of thing. (Asked for comment from the Wall Street Journal, Cohen responded: “Fake News.”)

You might want to sit down for this . . .

This might come as a shock, but there are whispers the Trump Organization is attempting to profit off the presidency:

In recent weeks, the Trump Organization has ordered the manufacture of new tee markers for golf courses that are emblazoned with the seal of the president of the United States. Under federal law, the seal’s use is permitted only for official government business. Misuse can be a crime.

Past administrations have policed usage vigilantly. In 2005 the Bush administration ordered the satirical news website The Onion to remove a replica of the seal. Grant M. Dixton, associate White House counsel, wrote in a letter to The Onion that the seal “is not to be used in connection with commercial ventures or products in any way that suggests presidential support or endorsement.”

Area man demands media leave the Trumps alone!

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Now is is a great time to re-read Andy Borowitz’s (all too true) satire on “Spineless Paul” that I reprinted on Courtside in December 2017:

https://www.newyorker.com/humor/borowitz-report/koch-brothers-and-nra-reach-timeshare-agreement-over-ownership-of-paul-ryan

“WASHINGTON (The Borowitz Report)—In a unique accord, the billionaire Koch brothers and the National Rifle Association have reached a timeshare agreement over the ownership of House Speaker Paul Ryan, representatives of both parties have confirmed.

Speaking on behalf of the Kochs, Charles Koch said that he contacted the N.R.A.’s executive director, Wayne LaPierre, with the timeshare proposal “so that we could all get the maximum enjoyment out of owning Paul.”

The arrangement is intended to minimize conflicts between the Kochs and the gun group that have arisen in the past when both co-owners have wanted to use Ryan at the same time, Koch said.

“I said to Wayne, ‘This is craziness,’ ” he said. “ ‘Let’s work something out where you get Paul half the year, and we’ll take him the other half.’ ”

Under the timeshare deal, the Kochs will have the exclusive use of Ryan during the months when tax cuts and environmental deregulation are put to a vote, while the N.R.A. will have him for the months when gun legislation is to be defeated.

Additionally, each co-owner is responsible for insuring that Ryan is well maintained and in good condition when the other’s period of using him commences.

Koch indicated that, if the timeshare agreement is a success, the two parties are likely to work out a similar deal for their longtime joint ownership of Senate Majority Leader Mitch McConnell.”

However, the deep corruption of the GOP and its leaders, from Trump on down, isn’t really something to laugh about. At some point, the “nickel and dime” income boost given to average Americans by the GOP’s totally bogus and unwarranted “tax cuts” for the rich will automatically expire (but, naturally, not for the rich) and the true bill for running up the deficit so the Koch Bros and others can get richer will come due. By that time, conveniently, Trump, Ryan, and hopefully McConnell will be out of office. But, the damage they are doing to our country will be left for others, likely the Democrats, to clean up. That’s what Kleptocracy is all about, folks. Steal what you can when you can and then get out of Dodge while the getting is good!

PWS

03-06-18

MAX BOOT @ WASHPOST: A KLEPTOCRACY OF GRIFTERS – THE TRUMP ADMINISTRATION — “[T]here have been more crooked regimes — but only in banana republics. The corruption and malfeasance of the Trump administration is unprecedented in U.S. history.”

https://www.washingtonpost.com/opinions/the-trump-administrations-no-good-very-bad-wednesday/2018/03/01/7dc60fd2-1d69-11e8-ae5a-16e60e4605f3_story.html

Max Boot reports from The Swamp for the Washington Post:

“One of the great non-mysteries of the Trump administration is why Cabinet members think they can behave like aristocrats at the court of the Sun King. The Department of Housing and Urban Development spent $31,000 for a dining set for Secretary Ben Carson’s office while programs for the poor were being slashed. The Environmental Protection Agency has been paying for Administrator Scott Pruitt to fly first class and be protected by a squadron of bodyguards so he doesn’t have to mix with the great unwashed in economy class. The Department of Veterans Affairs spent $122,334 for Secretary David Shulkin and his wife to take what looks like a pleasure trip to Europe last summer; Shulkin’s chief of staff is accused of doctoring emails and lying about what happened. The Department of Health and Human Services paid more than $400,000 for then-Secretary Tom Price to charter private aircraft — a scandal that forced his resignation.

Why would Cabinet members act any differently when they are serving in the least ethical administration in our history? The “our” is important, because there have been more crooked regimes — but only in banana republics. The corruption and malfeasance of the Trump administration is unprecedented in U.S. history. The only points of comparison are the Gilded Age scandals of the Grant administration, Teapot Dome under the Harding administration, and Watergate and the bribe-taking of Vice President Spiro Agnew during the Nixon administration. But this administration is already in an unethical league of its own. The misconduct revealed during just one day this week — Wednesday — was worse than what presidents normally experience during an entire term.

The day began with a typically deranged tweet from President Trump: “Why is A.G. Jeff Sessions asking the Inspector General to investigate potentially massive FISA abuse. . . . Why not use Justice Department lawyers? DISGRACEFUL!” Translation: Trump is exercised that the Justice Department is following its normal procedures. Sessions fired back: “As long as I am the Attorney General, I will continue to discharge my duties with integrity and honor.” Translation: The president is asking him to act without “integrity and honor.”

This is part of a long pattern of the president pressuring the “beleaguered” Sessions — a.k.a. “Mr. Magoo” — to misuse his authority to shut down the special counsel investigation of Trump and to launch investigations of Trump’s political foes. Because Sessions won’t do that, Trump has tried to force him from office. The president does not recognize that he is doing anything improper. He thinks the attorney general should be his private lawyer. The poor man has no idea of what the “rule of law” even means, as he showed at a White House meeting Wednesday on gun control, during which he said: “Take the guns first, go through due process second.” This from a supposed supporter of the Second Amendment.

But wait. Wednesday’s disgraceful news was only beginning. Later in the day the New York Times reported that Jared Kushner’s family company had received hundreds of millions of dollars in loans from companies whose executives met with him in his capacity as a senior White House aide. The previous day, The Post had reported that officials in the United Arab Emirates, China, Israel and Mexico had discussed how they could manipulate the president’s son-in-law “by taking advantage of his complex business arrangements, financial difficulties and lack of foreign policy experience.” Oh, and don’t forget that during the transition in 2016, while Kushner was trying to refinance a family-owned office building, he met with a Russian bankerclose to the Kremlin and with executives of a Chinese insurance company that has since been taken over by the Chinese government.

President Trump’s nepotism has compromised U.S. standing in the world, says Post editorial page editor Fred Hiatt. (The Washington Post)

Little wonder that the previous week Kushner lost his top-secret security clearance. The wonder is that a senior aide with such dodgy business dealings was allowed access for a full year to the government’s most sensitive secrets — and that he still works in the White House. This is the kind of nepotism that plagues dictatorships and is a defining characteristic of Trump’s kleptocratic rule.

Of course, we are still only scratching the surface of administration scandals. This is a president, after all, whose communications director quit on Wednesday after admitting to lying (but insists her resignation was unrelated); whose senior staff included an alleged wife-beater; whose former national security adviser and deputy campaign manager have pleaded guilty to felonies; whose onetime campaign chairman faces 27 criminal charges, including conspiracy against the United States; whose attorney paid off a porn star; and whose son mixed family and government business on a trip to India. Given the ethical direction set by this president, it’s a wonder that his Cabinet officers aren’t stealing spoons from their official dining rooms. Come to think of it, maybe someone should look into that.”

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The total ugliness, dishonesty, corruption, and lack of accountability of the Trumpsters is hard to contemplate. Everybody mentioned in this article probably belongs in jail. Other than that, though, they’re a great bunch of guys. Check those pockets and briefcases for the spoons! Draining The Swamp indeed!

PWS

03-02-18

PROFESSOR ERIC S. YELLEN IN WASHPOST: TRUMP & GOP’S MOST OUTRAGEOUS WHITE NATIONALIST RACIST PROPOSAL TO DESTROY AMERICA MIGHT NOT EVEN HAVE BEEN HIS RESTRICTIONIST IMMIGRATION PLAN — DESTROYING THE CAREER CIVIL SERVICE PROMISES RETURN TO CORRUPT POLITICAL SPOILS SYSTEM WE ABANDONED NEARLY 150 YEARS AGO! — “Calls for government accountability have long merged racism and anti-government rhetoric but have traditionally stopped short of resurrecting the spoils system.”

https://www.washingtonpost.com/news/made-by-history/wp/2018/02/05/the-corrupt-racist-proposal-from-the-state-of-the-union-address-that-everyone-missed/

Yellen writes:

“President Trump continued his efforts to drive the United States back to the 19th century during his State of the Union address last week.

Standing in front of a divided Congress, with possible obstruction charges looming over him and facing governance struggles produced by his ineffective leadership, the president sought to undermine a 135-year-old law protecting federal civil servants from the whims of tyrants and hacks. “I call on the Congress to empower every Cabinet secretary with the authority to reward good workers — and to remove federal employees who undermine the public trust or fail the American people,” he said.

While this plea sounds sensible, it actually represents a historic threat to the U.S. government and to some of its most vulnerable citizens. Recognizing that threat requires understanding two crucial and related pieces of context — first, how the law Trump seeks to dissolve came into being, and second, how the effort to undermine it fits into a larger pattern of racist ideas driving the Trump administration’s actions.

Why can’t a Cabinet secretary simply fire federal employees? Before 1883, they did just that on a regular basis. Federal employees came and went on the orders of political appointees with each electoral cycle. Every four years, federal workers sat waiting with bags packed to find out if their party would hold on to power and they onto their livelihoods.

Claiming these spoils of victory enabled a president and his Cabinet secretaries to hand out high-paying, desirable jobs to political supporters. Abraham Lincoln famously — or infamously — cleaned house in 1861 to reward his new political party whose members had not tasted federal salaries since the collapse of the Whig party a decade earlier.

But in the 1870s, consistency and competence in the federal bureaucracy became more important as the nation’s political and commercial life grew more complex. Americans became increasingly aware of political corruption (see: the Grant administration) and its drag on government and commercial efficiency. When, in July 1881, President James A. Garfield was assassinated by disgruntled office seeker Charles Guiteau, the push for reform gained enough momentum to force Congress to rein in the patronage system.

The Pendleton Civil Service Reform Act of 1883 cost its namesake, Sen. George H. Pendleton (Ohio), his job in a political backlash against the new anti-spoils system. Nevertheless, the Pendleton Act was a major step forward for good government, and over the next quarter-century the majority of ordinary and largely essential civil service positions became disconnected from political machinations, filled instead through a standard set of hiring practices and exams, and protected from arbitrary firing.

The system was never perfect, and political affiliation has continued to matter for employment prospects in Washington right up through the present. Still, today the U.S. government does have something resembling what political scientists call an “autonomous” civil service — that is, a federal bureaucracy sheltered from political winds.

The result is a more stable and experienced government workforce, a Congress that gets accurate reports from its research bureaus and federal departments that provide a certain level of regulatory consistency for citizens and businesses at home and around the world.

Trump’s upending of decades of civil service protections is not about accountability. Such changes would clearly risk a return to more corrupt and less competent government. Even worse, Trump’s proposal and the rhetoric surrounding it also threaten to undermine a second set of crucial reforms that occurred thanks to the civil rights movement.

During the 1960s, the civil rights movement pushed the government to guarantee racial equality in federal employment. This effort was more successful than attempts to transform the private workforce, largely because of federal training programs, standardized hiring procedures and fixed pay scales that weeded out bias, aggressive anti-discrimination measures and historic mentorship and seniority lines dating to the Johnson administration. Today, African Americans are 30 percent more likely to work in civil service than white Americans. Black men and women, just 13 percent of the U.S. population and with an unemployment rate double that of white Americans, make up about 18 percent of the federal workforce.

Over the past 30 years, conservative valorization of “market solutions” has been accompanied by deeply racialized notions of government inefficiency that aims to undermine these civil rights achievements by invoking the image of a wasteful, corrupt public workforce — one viewed by many Americans as dominated by African Americans. Commentator Pat Buchanan, for example, claimed that federal offices under the Obama administration operated according to a “racial spoils system.” For Buchanan and many others, the drive for a leaner government merges with a racist suspicion of black workers — what they see as the most rotten part of the bureaucracy.

Moreover, the president’s attack on the stability of government jobs comes at a rough time for public servants, who have been battered by austerity measures that have made jobs scarcer.

These measures have also deepened the racial disparity in the public workforce, which, along with the growing racial wealth gap that deprives nonwhite Americans of stability and mobility, transforms Trump’s assault on the Pendleton Act from merely historically ignorant and potentially corrupt into something more. It becomes a nod to the same racist worldview that produces the profound suspicion of people of color that has defined much of Trump’s political life.

Continuous conflation of blackness and wastefulness in American governance, a conflation pushed by writers and politicians like Buchanan and Trump, marks African Americans as incapable of earning “the public’s trust” through good governance, a stain that persists into today’s politics, from assumptions of black voting malfeasance to questions about President Barack Obama’s birth certificate.

And that returns us to Trump’s rise to the presidency. Calls for government accountability have long merged racism and anti-government rhetoric but have traditionally stopped short of resurrecting the spoils system. Then again, politicians have traditionally veiled their positions in generous and moderately realistic visions of humanity to maintain moral ground and the capacity to govern. In his latest call for the gutting of civil service reforms, Trump seems hellbent on surrendering both.

Eric S. Yellin is an associate professor at the University of Richmond and author of “Racism in the Nation’s Service: Government Workers and the Color Line in Woodrow Wilson’s America”

Follow @EricSYellin

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As I have mentioned several times before, my more than four decades of working in the field of immigration, and my 21 years of judging individual asylum cases have given me an outstanding chance to study virtually all of the current political and government systems in the world.

The difference between the U.S. and the corrupt states that send us refugees is not necessarily the words of our Constitution. Almost all countries have snazzy sounding constitutions that aren’t worth the paper on which they are written.

The main difference is that the U.S. has a basically honest, dedicated, professional, largely apolitical Career Civil Service that works hard to make sure that the words of our Constitution are translated into actions. Most refugee sending countries have a Trump-like “spoils system” where notwithstanding the words of the constitution and laws, the government is corrupt and run primarily for the benefit of the dictator and his relatives and friends or for the ruling class and their cronies.

When the government changes (usually, although not always, violently) the “new” group, even if it once had a “reform platform,” merely views it as “their turn” to loot and pillage the country and the common people for their own benefit and that of their supporters, be it tribe, ethnic group, or party.

The Trump Administration and the “modern GOP” already have all of the earmarks of a kleptocracy. Letting them destroy our Career Civil Service, the “Jewel in the Crown” of American democracy, would lead to the end of our nation as we have known it.

PWS

02-05-18

THINK THE TRUMP GOP TAX GIVEAWAY TO THE FAT CATS WAS OUTRAGEOUS? – WAIT TILL YOU GET A LOAD OF TRUMP’S LATEST SCAMS!

https://www.vanityfair.com/news/2018/01/trumps-infrastructure-plan-should-scare-the-crap-out-of-you

Bess Levin at Vanity Fair with the “Levin Report:”

“WHY TRUMP’S INFRASTRUCTURE PLAN SHOULD SCARE THE CRAP OUT OF YOU

The president wants to apply his hotel-licensing model to a $1.5 trillion government initiative.

If you only paid attention to the words that tumbled out of his mouth, you might believe that Donald Trump was a successful real-estate developer, just like you might also think he’s a “stable genius” with a “winning temperament” who had a shot with Princess Diana. In reality, none of these things are true. In the wake of multiple bankruptcies, the Trump Organization shifted from developing properties on its own to licensing its founder’s name to others for multi-million-dollar fees, in what Forbes once called a “low-effort, low-risk, high-reward cash flow proposition.” With no capital on the line, Trump was free to sit back with a taco bowl, take a cut of the profit, and deal with none of the consequences if and when a project ran into trouble. And now, he wants to apply the same model to a $1.5 trillion infrastructure deal.

In his State of the Union speech last night, Trump said that he was “calling on Congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment we need,” noting that “every federal dollar should be leveraged by partnering with State and local governments and, where appropriate, tapping into private sector investment—to permanently fix the infrastructure deficit.” Previously, the administration had said it would put in $200 billion and would expect the private sector, along with state and local governments, to pony up $800 billion for a nice, round $1 trillion plan. Now they’re apparently going to have to dig a little deeper, for no other apparent reason than because Trump thinks $1.5 trillion sounds better. That might seem like a great deal for the federal government, except for the fact that by allocating a mere $200 billion—when you take the White House’s proposed infrastructure cuts into account, it comes out as even less—they’ll have to prioritize corporate profits over the actual needs of the public.

In order to get a return on their investment, which is—understandably!—the only reason private companies will want to get involved here, the government will naturally offer them lucrative tax breaks. But, as The Washington Post points out, unlike typical public-private partnerships wherein the government is the ultimate owner of the road or bridge constructed by a private company, it’ll all be under private ownership.

“PriveCo Equity Partners [get] a gigantic tax incentive to build the bridge, which the company now owns—and which will charge tolls on [it] in perpetuity. Taxpayers could shell out nearly as much in tax incentives to the private company as we would have spent to just build the bridge, and then on top of that you’ll have to pay tolls to cross it—forever. As long as the bridge stands, people are paying extra so PriveCo Equity Partners can make a profit.”

And because Trump & Co. will pay for no more than 20 percent of any given project, states and localities that don’t have the extra funds will most likely be shit out of luck. As the Post’s Paul Waldman notes, “the focus on private investment . . . will naturally privilege projects that can generate a profit for private companies, which probably won’t be the most sorely needed upgrades.” According to a new report released this week by the left-leaning Democracy Forward, under the rubric for judging grant applicants, a whopping 70 percent of a project’s score “would be based on the availability of non-federal revenue,” whereas the “economic and social returns” it could generate make up 5 percent. Sorry, Flint, Michigan! You don’t really need new pipes, right?

Of course, this was all by design. Less scary than the fact that Trump’s friends might financially benefit from the plan is the promise (threat?) he made last night that “any bill must . . . streamline the permitting and approval process,” by which he means gut environmental protections and put public health at risk. On the bright side, no one actually believes that President Hard Hat’s plan will come to fruition, at least not in its current form. “Not to be morbid, but an infrastructure catastrophe could move the needle . . . and spur congressional action,” political strategist Chris Kruegertold Business Insider. “Barring some kind of morbid catalyst, [the plan’s passage] seems extremely unlikely.”

Judge rules Mick Mulvaney will have to work hard to destroy the C.F.P.B.

Since the day the Consumer Financial Protection Bureau was formed, Republicans have been raving about how it’s an unconstitutional menace that must be stopped. Unfortunately for people like Representative Jeb Hensarling, who thinks the bureau is a “dictator,” a court has more or less declared that this argument is bullshit:

The structure of the Consumer Financial Protection Bureau is constitutional, an appeals court ruled Wednesday in a blow to President Donald Trump’s efforts to ease regulations on the financial system.

The U.S. Court of Appeals for the District of Columbia Circuit made the ruling in a battle over whether the president could remove the director at will. The court in October had upheld a challenge to the structure but agreed to rehear the case.

Republicans had challenged the C.F.P.B. structure on grounds that the director’s position was unaccountable to the executive branch.

On the bright side, now that the C.F.P.B.’s acting director is a guy who thinks the place shouldn’t exist, he can simply chip away at it from the inside. It’ll require a little more effort and creativity, but if anybody is up to the challenge, it’s Mick “The C.F.P.B. is a sick, sad joke” Mulvaney.

You get a Twinkie! And you get a Twinkie!

Hostess Brands is using its tax bill savings to reward employees with snacks:

The company, which makes Twinkies, Ding Dongs and Ho Hos, is providing its employees one-time payments of $1,250—with $750 in cash and $500 in the form of a 401(k) contribution. In taking the step, Hostess cited last month’s tax legislation, which slashed the rate for U.S. corporations.

It’s also offering a year’s worth of free food to workers—though they won’t be able to eat all the Ding Dongs they like. A representative from each of Hostess’s bakeries will choose a product each week, and the employees will be able to take home a multipack of that item. The company also makes Hostess CupCakes, Fruit Pies, and Donettes.”

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Gotta love it!

Billions for the fat cats, “Twinkies” for the workers. And, while working his infrastructure scam, Trump and his GOP kleptocrats will be trashing our environment and destroying our health care. I suppose they all will eventually move to a (“Whites Only” — Sorry Ben & Tim) “tax haven” somewhere offshore leaving the rest of us sick and dying in a looted country with an “infrastructure” that nobody needs any more!

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Meanwhile, over at Bloomberg News, reporter Ben Penn exposes a Trump Administration scheme to allow management to steal billions of dollars from waitresses and waiters! That’s right, folks, Trump’s GOP kleptocrats are busy scheming to transfer wealth from the lowest rungs on the economic ladder to the well-to-do! When the Labor Department’s own internal analysis exposed this “ripoff in the making,” the Trumpsters did what any good kleptocrat would do — tried to hide the results from the public (so much for the Trump White House claim of “transparency” in the release of “Vladi’s Agent Devon’s” memo).

https://bnanews.bna.com/daily-labor-report/labor-dept-ditches-data-showing-bosses-could-skim-waiters-tips

“Labor Dept. Ditches Data Showing Bosses Could Skim Waiters’ Tips

Posted Feb. 1, 2018, 6:01 AM

DOL says it couldn’t estimate tip pool rule’s full economic effects

Sources reveal the agency did conduct an analysis showing up to billions in wages transferred

Public has until Feb. 5 to comment on proposal

Labor Department leadership scrubbed an unfavorable internal analysis from a new tip pooling proposal, shielding the public from estimates that showed employees could lose out on billions of dollars in gratuities, four current and former DOL sources tell Bloomberg Law.

The agency shelved the economic analysis, compiled by DOL staff, from a December proposal to scrap an Obama administration rule. The proposal would permit tip pooling arrangements that involve restaurant servers and other workers who make tips and back-of-the-house workers who don’t. It sparked outrage from worker advocates who said the move would permit management to essentially skim gratuities by participating in the pools themselves.

Senior department political officials—faced with a government analysis showing that workers could lose billions of dollars in tips as a result of the proposal—ordered staff to revise the data methodology to lessen the expected impact, several of the sources said. Although later calculations showed progressively reduced tip losses, Labor Secretary Alexander Acosta and his team are said to have still been uncomfortable with including the data in the proposal. The officials disagreed with assumptions in the analysis that employers would retain their employees’ gratuities, rather than redistribute the money to other hourly workers. They wound up receiving approval from the White House to publish a proposal Dec. 5 that removed the economic transfer data altogether, the sources said.

The move to drop the analysis means workers, businesses, advocacy groups, and others who want to weigh in on the tip pool proposal will have to do so without seeing the government’s estimate first. The public notice-and-comment period for the proposal is set to end Feb. 5.

The new revelation lends credence to concerns from Democrats and labor organizers that the proposed rule will short change workers. It also raises questions about how much the DOL intends to take public feedback into account in shaping a final version of the rule.

The current and former DOL sources, hailing from both political parties, were all independently briefed by people involved in the rulemaking. They spoke on the condition of anonymity to prevent retaliation against themselves and others.

The Labor Department “works to provide the public accurate analysis based on informed assumptions” a DOL spokesman told Bloomberg Law in an email. The spokesman noted that the department asked the public to comment with suggestions about how to quantify the rule’s impact as part of the proposal. “As previously stated, after receiving public comment, the Department intends to publish an informed cost benefit analysis as part of any final rule.”

The DOL did not address Bloomberg Law’s inquiry as to why the agency did not include the completed transfer analysis in the proposed rule.

The department has previously defended criticism of the proposal by saying the move would lead to higher pay for some low-wage workers who don’t traditionally earn tips, such as dishwashers. The DOL has also argued that managers would be dissuaded from stealing tips, out of fear of employee turnover and decreased morale. The department further noted that it included in the proposal a qualitative analysis, which doesn’t include dollar figures.

OMB Involvement Unclear

Former career and political officials at the DOL and the White House Office of Management and Budget, joined by business and employee-side regulatory attorneys, all told Bloomberg Law that scrapping a completed analysis from a significant proposal would mark a troubling departure from the government’s mission. Agencies and OMB are expected to ensure that all available data are brought to bear during notice-and-comment rulemaking, the sources said.

White House Office of Management and Budget’s regulatory review staff was familiar with the data, before the proposed rule was released, sources said. It’s not clear whether OMB Director Mick Mulvaney approved the deletion of the numbers or whether Neomi Rao, who runs OMB’s Office of Information and Regulatory Affairs, was involved in the decision.

“We do not comment on the interagency review process,” an OMB senior official told Bloomberg Law in an email responding to a series of questions directed at OIRA.

Representatives for the White House and Mulvaney did not respond to requests for comment.

“I have to wonder about the internal pressure brought to bear on OIRA in this case, because historically OIRA’s position has been that analysis is a good thing,” Stuart Shapiro, a career policy analyst at OIRA in the Clinton and Bush presidencies,” told Bloomberg Law. “It helps us make better decisions, it helps us increase the transparency of the regulatory effort.” Shapiro, who reviewed labor regulations in his tenure at the office, is now a Rutgers University professor researching the regulatory process.

Bloomberg Law has filed a Freedom of Information Act request for the transfer report, which is being processed by the DOL’s Wage and Hour Division.

Transparency in Question

The proposal rescinds a 2011 rule that asserted tips are the property of workers who earn them. That revision of the Fair Labor Standards Act covered scenarios in which restaurants and other employers supplemented tipped workers’ earnings by paying at least the full minimum wage.

Since the rule’s release in December, worker advocacy groups and Obama administration officials have vehemently opposed it. They point to language that permits companies to keep gratuities for themselves, provided they pay workers at least the federal minimum wage of $7.25 per hour and don’t apply a tip credit that allows them to pay as little as $2.13 per hour, depending on the state.

The left-leaning think tank Economic Policy Institute attempted to fill the data void by producing an analysis of its own. EPI predicts the proposed rule on tips would lead to $5.8 billion changing hands from workers to businesses, rather than being redistributed among employees as the DOL leadership suggested.

Some worker advocacy attorneys say the absence of the data might violate administrative law.

The existence of economic data has not been previously reported. It comes as President Donald Trump’s labor secretary and OIRA administrator have said they are committed to good government and transparent notice-and-comment rulemaking as they implement the White House demands to cut unnecessary regulations issued during the Obama administration.

Some attorneys have theorized that the Trump administration fast-tracked this rescission to moot the restaurant industry’s request that the U.S. Supreme Court grant review and invalidate the Obama tipping rule.

Acosta Optics

News of the scrapped analysis comes as Acosta has tried to avoid being cast as putting business interests above employees in various legal and regulatory moves.

David Weil, Wage and Hour Division administrator under President Barack Obama, called the new tip rule a boon for the restaurant industry,

“I think it is simply a statement of fact that Secretary Acosta and the people in the political side of the Labor Department who pushed that rule, which was a wonderful Christmas present to the National Restaurant Association, didn’t want the public to understand what kind of transfer we’re talking about,” Weil told Bloomberg Law in December, before the news of an existing analysis publicly surfaced.

Democrats have also placed their thumb on the scale when it comes to regulatory analyses, Leon Sequeira, who ran the DOL policy office in the George W. Bush administration, said.

“Economic analysis is a political football in every administration,” Sequeira told Bloomberg Law. He said the Obama administration DOL provided inadequate cost-benefit analyses that understated the compliance costs on businesses. “If the agency feels that it doesn’t have sufficient information to perform as robust an analysis as some may like, then that’s the precise purpose of the proposed rulemaking—to say to all of these critics, if you’ve got a better idea or different analysis or additional information, by all means send it in.”

“It’s at the final stage, when the agency makes its final decision, that folks need to be concerned about evaluating the rulemaking,” said Sequeira, now a management-side employment attorney in Washington.

The More Data the Better

The DOL insisted in the rule proposal that uncertain employer responses make it difficult to produce reliable estimates of managers participating in tip pools and how customers might change their tipping habits. Former agency officials said, however, that the regulation breaks from protocol because it is still the department’s duty to release a best attempt at the data in the proposed rule.

“To punt on that and say we’ll let the public come up with the economic analysis, that’s really not how the process is intended to work,” Michael Hancock, a former assistant administrator at the WHD, told Bloomberg Law. “The agency has an obligation to provide its best judgment on what the likely impact is economically, and that will give the public an opportunity to comment on that.”

The DOL proposal explained that an analysis of potential benefits and transfers is too speculative at this stage. “The Department is unable to quantify how customers will respond to proposed regulatory changes, which in turn would affect total tipped income and employer behavior,” the agency stated.

One trade association executive, who had no prior knowledge of a shelved analysis, told Bloomberg Law that when it comes to rulemaking, the more information the better. “I would just be troubled if the agency had done economic work that’s directly relevant to rulemaking, and for any reason chose not to include that, because the public has a right to know everything about the rule,” said the source, who spoke on condition of anonymity to address an issue that doesn’t affect the trade association’s members.

The National Restaurant Association, by far the trade group most invested in the rulemaking, has been a massive supporter of the effort. An economic analysis isn’t relevant to this discussion because the 2011 version of the rule didn’t include that type of analysis either, Angelo Amador, the NRA’s senior vice president and regulatory counsel, told Bloomberg Law in December. Plus, Amador said he believes he has the law on his side.

“I do not see how an economic analysis has an impact either way on something that they don’t have the authority to do,” he said. The NRA has litigated the Obama rule since 2011 and has filed a request for review that is pending before the U.S. Supreme Court. Two circuit courts have called the rule an abuse of agency rulemaking authority.

Tough to Estimate

In reality, both business and employee-side sources told Bloomberg Law that it’s difficult to arrive at a confident estimate on this rule change, because of many possible employer and customer reactions, and interactions with a maze of state and local minimum wage laws.

The new methods ordered by the DOL leadership on the tip pool rule reduced the transfer total by changing the industries affected and how the rule would interact with state laws, which dropped the total, a few sources said.

Hancock, whose 20-year career at the WHD spanned three presidents from both parties, said that during the approximately 15-20 economically significant rules he’s worked on, he never once witnessed the agency excluding the cost-benefit analysis from a significant regulation. Lack of data accuracy is no excuse, Hancock said.

“If their view is they’re not really confident with the data you have, you put it out there, you identify those areas where you have uncertainty about the data, and invite the public to fill in those gaps,” said Hancock, who is now of counsel at plaintiff-side firm Cohen Milstein in New York.

The Labor Department’s policy shop played a central role in the tip pooling proposal, as is customary for significant rules. Sequeira, who was heavily involved with the WHD and other agencies in developing regulatory economic analyses in the prior Republican DOL, stopped short of saying whether the DOL behaved inappropriately in this circumstance.

“It’s hard to say,” Sequeira said. “That’s the age-old conspiracy theory with virtually every regulatory proposal that comes out.”

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Kleptocracy, secrecy, anti-democracy, Putinism are at work every day the corrupt Trump Administration and the GOP enablers are in power. The Con-Man-In-Chief!

PWS

02-02-18

SATURDAY SATIRE: DAVOS REPORT: TRUMP WOWS INTERNATIONAL FAT CATS WITH PROMISE THAT AMERICA WILL LEAD THE WORLD TO NEW HEIGHTS OF INCOME INEQUALITY — “Starving The Poor To Feed The Rich Will End Poverty,” Says Leader Of World’s Most Powerful Kleptocracy!

“God loves the greedy and selfish, for they shall inherit the earth, the sun, the planets, and the entire universe.”

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WARNING: THIS IS “FAKE NEWS” BUT COMES WITH MY ABSOLUTE, UNCONDITIONAL, MONEY BACK GUARANTEE THAT IT CONTAINS MORE TRUTH THAN THE AVERAGE TRUMP TWEET OR SARAH HUCKABEE SANDERS NEWS BRIEFING!

PWS

01-27-18

SNL SCORES DIRECT HIT WITH “TRUMPSTER CHRISTMAS” — SIMULTANEOUSLY VERY FUNNY AND VERY FRIGHTENING!

http://verifiedpolitics.com/snl-just-mocked-trumps-ousted-staffers-hilarious-christmas-sketch-watch/

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How did we go from being the World’s Greatest Democracy to a “Grade B” Reality Show fast becoming “The World’s Biggest Third World Kleptocracy.”

Where are the Kardashians when their country needs them?

PWS

12-18-17

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