Democratic Party

Midterm Disinformation Has Taken Over Pennsylvania

WEST CHESTER, Pa. — Disinformation has long been a feature of American politics. Mudslinging, smear campaigns, dirty tricks. Yet wading through the muck ahead of this year’s midterm elections in one fiercely contested state, Pennsylvania, shows just how thoroughly it now warps the American democratic process.

In July, a tweet made the rounds spreading a falsehood about voting. “BREAKING: Pennsylvania will not be accepting mail-in ballots,” declared someone using an account called the Donald J. Trump Tracker.

In September, mysterious letters began arriving in mailboxes in Chester County, on the old Main Line west of Philadelphia, falsely telling people that their votes might not have been counted in the last election.

No, the Democratic candidate for United States Senate, Lt. Gov. John Fetterman, does not have tattoos of the Crips, the notorious street gang from Los Angeles, as Newt Gingrich said on Fox.

contentious primaries, Pennsylvanians have experienced a deluge of false or misleading posts, photographs and videos on social media, as well as increasingly partisan, bitter and at times unhinged claims on television, radio and live streams to a degree that no one recalled seeing before.

“I’m not saying the politics was ever, you know, perfect,” Michael Nutter, the mayor of Philadelphia from 2008 to 2016, said in an interview, lamenting the seemingly bottomless depth of the problem.

“I think what’s changed is you go back 100 years and you’d have had to put a whole lot more effort into spreading lies,” he said. “Now, you can just push a button.”

FactCheck.org.

A lot of attention has focused on a stroke that Mr. Fetterman suffered in May, just as he clinched the Democratic nomination. The stroke left him with an auditory processing disorder, a condition that affects the brain’s ability to filter and interpret sounds, which Republicans have said makes him unfit for office. His speech has also become more halting, and he stumbles over his words, as he did multiple times in the debate last week against his Republican opponent, Mehmet Oz, the television personality known as Dr. Oz.

Opponents used his verbal gaffes in misleading ways. A video montage by a Republican campaign operative, Greg Price, exaggerated the effects of the stroke, while a Twitter account impersonating BuzzFeed falsely claimed that Mr. Fetterman had apologized for urinating on a campaign staffer. Mr. Price did not respond to requests for comment.

Other false claims have, again, questioned the machines that count votes, while a recent flurry of posts on Telegram, the app created in Russia, have incorrectly accused the state’s top election official of not complying with legal rulings about mail-in ballots. ActiveFence, a cybersecurity company, said that these claims have spread across platforms, garnering tens of thousands of impressions.

Jill Greene, the state representative for Common Cause, the national good-government organization, said that the many unfounded and untruthful claims posed a challenge for voters.

pledged to remove or marginalize false posts ahead of the midterms.

A doctored post on Facebook, to cite one of scores of examples, showed Mr. Oz kneeling to kiss the star of Donald J. Trump along the Hollywood Walk of Fame. (In the original, he was kissing his own star.)

being repeatedly told that the American election process is deeply corrupted.

In fact, Mr. Mastriano’s candidacy has from its inception been propelled by his role in disputing the 2020 presidential election lost by Mr. Trump.

county by county, but election experts say they do not reflect factors as benign as changes in addresses.

“They’re in search of solutions to a problem that doesn’t exist,” Kyle Miller, a Navy veteran and state representative for Protect Democracy, a national advocacy organization, said in an interview in Harrisburg. “They are basing this on faulty data and internet rumors.”

Some Republican lawmakers have leaned on false claims to call for changes to rules about mail-in ballots and other measures intended to make it easier for people to vote. Several counties have already reversed some of the decisions, including the number and location of drop boxes for ballots.

Mr. Miller, among others, warned that the flurry of false claims about balloting could be a trial run for challenging the results of the presidential election in 2024, in which Pennsylvania could again be a crucial swing state.

In Chester County, a largely white region that borders Delaware and Maryland that is roughly split between Republicans and Democrats, the effort to sow confusion came the old-fashioned way: in the mail.

Letters dated Sept. 12 began arriving in mailboxes across the county, warning people that their votes in the 2020 presidential election might not have counted. “Because you have a track record of consistently voting, we find it unusual that your record indicates that you did not vote,” the letter, which was unsigned, said.

The sender called itself “Data Insights,” based in the county seat of West Chester, though no known record of such a company exists, according to county officials. The letters did include copies of the recipients’ voting records. The letters urged recipients to write to the county commissioners or attend the commission’s meetings in the county seat of West Chester, in September and October. Dozens of recipients did.

The county administrator, Robert J. Kagel, tried to assure them that their votes were actually counted. He urged anyone concerned to contact the county’s voter services department.

Even so, at county meetings in September and October, speaker after speaker lined up to question the letter and the ballot process generally — and to air an array of grievances and conspiracy theories.

They included the discredited claims of the film “2000 Mules” that operatives have been stuffing boxes for mail-in ballots. One attendee warned that votes were being tabulated by the Communist Party of China or the World Economic Forum.

“I don’t know where my vote is,” another resident, Barbara Ellis of Berwyn, told the commissioners in October. “I don’t know if it was manipulated in the machines, in another country.”

As of Oct. 20, 59 people in Chester County had contacted officials with concerns raised in the letter, but in each case, it was determined that the voters’ ballots had been cast and counted, said Rebecca Brain, a county spokesman.

Who exactly sent the letters remains a mystery, which only fuels more conspiracy theories.

“It seems very official,” Charlotte Valyo, the chairwoman of the Democratic Party in the county, said of the letter. She described it as part of “an ongoing, constant campaign to undermine the confidence in our voting system.” The county’s Republican Party did not respond to a request for comment.

Disinformation may not be the only cause of the deepening partisan chasm in the state — or the nation — but it has undoubtedly worsened it. The danger, Ms. Valyo warned, was discouraging voting by sowing distrust in the ability of election officials to tally the votes.

“People might think, ‘Why bother, if they’re that messed up?’”

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How Disinformation Splintered and Became More Intractable

On the morning of July 8, former President Donald J. Trump took to Truth Social, a social media platform he founded with people close to him, to claim that he had in fact won the 2020 presidential vote in Wisconsin, despite all evidence to the contrary.

Barely 8,000 people shared that missive on Truth Social, a far cry from the hundreds of thousands of responses his posts on Facebook and Twitter had regularly generated before those services suspended his megaphones after the deadly riot on Capitol Hill on Jan. 6, 2021.

And yet Mr. Trump’s baseless claim pulsed through the public consciousness anyway. It jumped from his app to other social media platforms — not to mention podcasts, talk radio or television.

Within 48 hours of Mr. Trump’s post, more than one million people saw his claim on at least dozen other media. It appeared on Facebook and Twitter, from which he has been banished, but also YouTube, Gab, Parler and Telegram, according to an analysis by The New York Times.

gone mainstream among Republican Party members, driving state and county officials to impose new restrictions on casting ballots, often based on mere conspiracy theories percolating in right-wing media.

Voters must now sift through not only an ever-growing torrent of lies and falsehoods about candidates and their policies, but also information on when and where to vote. Officials appointed or elected in the name of fighting voter fraud have put themselves in the position to refuse to certify outcomes that are not to their liking.

a primary battleground in today’s fight against disinformation. A report last month by NewsGuard, an organization that tracks the problem online, showed that nearly 20 percent of videos presented as search results on TikTok contained false or misleading information on topics such as school shootings and Russia’s war in Ukraine.

continued to amplify “election denialism” in ways that undermined trust in the democratic system.

Another challenge is the proliferation of alternative platforms for those falsehoods and even more extreme views.

new survey by the Pew Research Center found that 15 percent of prominent accounts on those seven platforms had previously been banished from others like Twitter and Facebook.

F.B.I. raid on Mar-a-Lago thrust his latest pronouncements into the eye of the political storm once again.

study of Truth Social by Media Matters for America, a left-leaning media monitoring group, examined how the platform had become a home for some of the most fringe conspiracy theories. Mr. Trump, who began posting on the platform in April, has increasingly amplified content from QAnon, the online conspiracy theory.

He has shared posts from QAnon accounts more than 130 times. QAnon believers promote a vast and complex conspiracy that centers on Mr. Trump as a leader battling a cabal of Democratic Party pedophiles. Echoes of such views reverberated through Republican election campaigns across the country during this year’s primaries.

Ms. Jankowicz, the disinformation expert, said the nation’s social and political divisions had churned the waves of disinformation.

The controversies over how best to respond to the Covid-19 pandemic deepened distrust of government and medical experts, especially among conservatives. Mr. Trump’s refusal to accept the outcome of the 2020 election led to, but did not end with, the Capitol Hill violence.

“They should have brought us together,” Ms. Jankowicz said, referring to the pandemic and the riots. “I thought perhaps they could be kind of this convening power, but they were not.”

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Democrats Spent $2 Trillion to Save the Economy. They Don’t Want to Talk About It.

“We in Georgia found ourselves trying to claw back from a historic pandemic, the likes of which we haven’t seen in our lifetime, which created an economic shutdown,” he said. “And now, seeing the economy open up, we’ve experienced major supply chain issues, which have contributed to rising costs.”

Direct pandemic payments were begun under Mr. Trump and continued under Mr. Biden, with no serious talk of another round after the ones delivered in the rescue plan. Most Democrats had hoped the one-year, $100 billion child credit in the rescue plan would be made permanent in a new piece of legislation.

But the credit expired, largely because Senator Joe Manchin III, Democrat of West Virginia and a key swing vote, opposed its inclusion in what would become the Inflation Reduction Act, citing concerns the additional money would exacerbate inflation.

Senator Michael Bennet, Democrat of Colorado, was one of the Senate’s most vocal cheerleaders for that credit and an architect of the version included in the rescue plan. His campaign has aired Spanish-language radio ads on the credit in his re-election campaign, targeting a group his team says is particularly favorable toward it, but no television ads. In an interview last week outside a Denver coffee shop, Mr. Bennet conceded the expiration of the credit has sapped some of its political punch.

“It certainly came up when it was here, and it certainly came up when it went away,” he said. “But it’s been some months since that was true. I think, obviously, we’d love to have that right now. Families were getting an average of 450 bucks a month. That would have defrayed a lot of inflation that they’re having to deal with.”

Mr. Biden’s advisers say the rescue plan and its components aren’t being deployed on the trail because other issues have overwhelmed them — from Mr. Biden’s long list of economic bills signed into law as well as the Supreme Court decision overturning Roe v. Wade that has galvanized the Democratic base. They acknowledge the political and economic challenge posed by rapid inflation, but say Democratic candidates are doing well to focus on direct responses to it, like the efforts to reduce costs of insulin and other prescription drugs.

Ms. Lake, the Democratic pollster, said talking more about the child credit could help re-energize Democratic voters for the midterms. Mr. Warnock’s speech in Dunwoody — an admittedly small sample — suggested otherwise.

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The Perennial Importance Of National Voter Registration Day

As states log record turnout in primaries this year, history shows an upward trend, with registration and turnout climbing for midterm elections.

Coast to coast, from sports leagues to unions, there was an aggressive push Tuesday to get voters registered.

Just seven weeks before the critical midterm elections, operatives from both parties are trying to ensure their voters will be the ones showing up.

As states log record turnout in primaries this year, history shows an upward trend, with registration climbing for midterm elections and turnout spiking even faster.

It’s a trend activists hope to continue in an election season that will set the course for a Republican party trying to find its footing post-Trump, and a Democratic party seeking validation for an ambitious vision of the future.

It’s a complicated picture in a midterm election like no other, yet just like every vote before it, it’s one that all boils down to who gets registered and who shows up.

: newsy.com

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Closing Arguments In Trial Of 2 Men In Plot To Kidnap Mich. Governor

By Associated Press
August 22, 2022

Adam Fox and Barry Croft Jr. are charged with conspiring to kidnap Michigan Gov. Gretchen Whitmer in 2020 over their disgust with COVID restrictions.

Jurors will hear closing arguments Monday in the retrial of two men charged with conspiring to kidnap Michigan Gov. Gretchen Whitmer in 2020.

Adam Fox and Barry Croft Jr. declined to testify Friday as defense lawyers rested their case in federal court in Grand Rapids, Michigan.

The government has portrayed Fox and Croft as leaders of a wild plan to snatch Whitmer at her vacation home in Elk Rapids, Michigan, and trigger chaos across the U.S.

Fox, Croft and their allies were furious about COVID-19 restrictions and generally disgusted by government, prosecutors say.

Kent County Sheriff’s Office via AP

Defense lawyers, however, say Fox and Croft were a bumbling, foul-mouthed, marijuana-smoking pair exercising free speech and incapable of leading anything as extraordinary as an abduction of a public official. They say FBI agents and informants fed their outrage and pulled them into their web.

“It has FBI fingerprints all over it,” Christopher Gibbons said.

The jury heard secretly recorded conversations and read violent social media posts, some written before the FBI got involved. Two undercover agents and an informant testified for hours, explaining how the men trained in Wisconsin and Michigan and visited Elk Rapids to see Whitmer’s home.

Other witnesses included Ty Garbin and Kaleb Franks, who pleaded guilty and insisted the group was not entrapped.

Fox and Croft are on trial for a second time after a jury in April couldn’t reach a unanimous verdict but acquitted two other men.

Croft, 46, is from Bear, Delaware. Fox, 39, was living in the basement of a vacuum shop in the Grand Rapids area.

Whitmer, a Democrat, has blamed then-President Donald Trump for stoking mistrust and fomenting anger over coronavirus restrictions and refusing to condemn hate groups and right-wing extremists like those charged in the plot.

She said Sunday that she hasn’t been following the retrial, but that she remains concerned about “violent rhetoric in this country.”

“This is a dangerous trend that is happening. We cannot let it become normalized and I do hope that anyone that’s out there plotting to hurt their fellow Americans is held accountable,” Whitmer said at the Michigan Democratic Party’s convention in Lansing.

Trump recently called the kidnapping plan a “fake deal.”

Additional reporting by The Associated Press.

: newsy.com

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Expansion of Clean Energy Loans Is ‘Sleeping Giant’ of Climate Bill

Tucked into the Inflation Reduction Act that President Biden signed last week is a major expansion of federal loan programs that could help the fight against climate change by channeling more money to clean energy and converting plants that run on fossil fuels to nuclear or renewable energy.

The law authorizes as much as $350 billion in additional federal loans and loan guarantees for energy and automotive projects and businesses. The money, which will be disbursed by the Energy Department, is in addition to the more well-known provisions of the law that offer incentives for the likes of electric cars, solar panels, batteries and heat pumps.

The aid could breathe life into futuristic technologies that banks might find too risky to lend to or into projects that are just short of the money they need to get going.

failure of Solyndra, a solar company that had borrowed about $500 million from the Energy Department, to criticize the Obama administration’s climate and energy policies.

Backers of the program have argued that despite defaults like Solyndra, the program has been sustainable overall. Of the $31 billion the department has disbursed, about 40 percent has been repaid and interest payments in the fiscal year that ended on Sept. 30, 2021, totaled $533 million — more money than the failed Solyndra loan.

The Energy Department’s loan programs began in 2005 under the George W. Bush administration but expanded significantly in the Obama era. The department provided a crucial loan that helped Tesla expand when it only sold expensive two-door electric sports cars; the company is now the world’s most valuable automaker.

Under the Trump administration, which played down the risks of climate change, the department’s loan office was much less active. The Biden team has been working to change that. Last month, the department said it planned to loan $2.5 billion to General Motors and LG Energy Solution to build electric-car battery factories in Michigan, Ohio and Tennessee.

complicate the qualification process.

Plug-In Hybrids: After falling behind all-electric cars, U.S. sales of plug-in hybrids have been surging. The high cost of electric cars and gasoline have given them an opening.

Car Crashes: Tesla and other automakers capture data from their vehicles to operate their products. Experts say the collected information could also improve road safety.

A Frustrating Hassle: The electric vehicle revolution is nearly here, but its arrival is being slowed by a fundamental problem: The chargers where people refuel these cars are often broken.

One beneficiary of the new loan money could be the Palisades Power Plant, a nuclear facility on Lake Michigan near Kalamazoo, Mich., that closed in May. The plant had struggled to compete in the PJM energy market, which serves homes and businesses in 13 states, including Michigan, New Jersey and Pennsylvania, and Washington, D.C.

The Biden administration has made nuclear power a focal point of its efforts to eliminate carbon dioxide emissions from the power sector by 2035. The administration has offered billions of dollars to help existing facilities like the Diablo Canyon Power Plant — a nuclear operation on California’s coast that is set to close by the end of 2025 — stay open longer. It is also backing new technologies like small modular reactors that the industry has long said would be cheaper, safer and easier to build than conventional large nuclear reactors.

The owner of the Palisades facility, Holtec International, said it was reviewing the loan program and other opportunities for its own small reactors as well as bringing the shuttered plant back online.

“There are a number of hurdles to restarting the facility that would need to be bridged,” the company said in a statement, “but we will work with the state, federal government, and a yet to be identified third-party operator to see if this is a viable option.”

Rye Development, a company based in West Palm Beach, Fla., that is working on several projects in the Pacific Northwest.

geothermal power; old coal power plants as sites for large batteries; and old coal mines for solar farms. Such conversions could reduce the need to build projects on undeveloped land, which often takes longer because they require extensive environmental review and can face significant local opposition.

“We’re in a heap of trouble in siting the many millions of acres of solar we need,” Mr. Reicher said. “It’s six to 10 million acres of land we’ve got to find to site the projected build out of utility scale solar in the United States. That’s huge.”

Other developers are hoping the government will help finance technologies and business plans that are still in their infancy.

Timothy Latimer is the chief executive and co-founder of Fervo Energy, a Houston company that uses the same horizontal drilling techniques as oil and gas producers to develop geothermal energy. He said that his firm can produce clean energy 24 hours a day or produce more or less energy over the course of a day to balance out the intermittent nature of wind and solar power and spikes in demand.

Mr. Latimer claims that the techniques his firm has developed will lower the cost for geothermal power, which in many cases is more expensive than electricity generated from natural gas or solar panels. He has projects under development in Nevada, Utah, Idaho and California and said that the new loan authority could help the geothermal business expand much more quickly.

“It’s been the talk of the geothermal industry,” Mr. Latimer said. “I don’t think we were expecting good news a month ago, but we’re getting more ready for prime time. We have barely scratched the surface with the amount of geothermal that we can develop in the United States.”

For all the potential of the new law, critics say that a significant expansion of government loans and loan guarantees could invite more waste and fraud. In addition to Solyndra, the Energy Department has acknowledged that several solar projects that received its loans or loan guarantees have failed or never got off the ground.

A large nuclear plant under construction in Georgia, Vogtle, has also received $11.5 billion in federal loan guarantees. The plant has been widely criticized for years of delays and billions of dollars in cost overruns.

“Many of these projects are funded based on political whim rather than project quality,” said Gary Ackerman, founder and former executive director of the Western Power Trading Forum, a coalition of more than 100 utilities and other businesses that trade in energy markets. “That leads to many stranded assets that never live up to their promises and become examples of government waste.”

But Jamie Carlson, who was a senior adviser to the energy secretary during the Obama administration, said the department learned from its mistakes and developed a better approach to reviewing and approving loan applications. It also worked more closely with businesses seeking money to ensure that they were successful.

“It used to be this black box,” said Ms. Carlson, who is now an executive at SoftBank Energy. “You just sat in purgatory for like 18 months and sometimes up to two years.”

Ms. Carlson said the department’s loans serve a vital function because they can help technologies and companies that have demonstrated some commercial success but need more money to become financially viable. “It’s there to finance technologies that are proven but perhaps to banks that are perceived as more risky,” she said.

Energy executives said they were excited because more federal loans and loan guarantees could turbocharge their plans.

“The projects that can be done will go faster,” said William W. Funderburk Jr., a former commissioner at the Los Angeles Department of Water and Power who now runs a water and energy company. “This is a tectonic plate shift for the industry — in a good way.”

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Sen. Becca Balint Wins Vermont’s Democratic Primary For U.S. House

By Associated Press
August 10, 2022

Balint defeated Lt. Gov. Molly Gray, a more centrist candidate who was supported by the state’s Democratic establishment.

The leader of Vermont’s state Senate, Becca Balint, won the Democratic Party primary on Tuesday for Vermont’s lone seat in the U.S. House of Representatives, meaning she could become the first woman and the first openly gay person to represent the state in Congress.

In deep-blue Vermont, it’s likely the Democratic candidate will also clinch the general election in November. A win by Balint, who is white, would help erase what some consider to be the blot on the liberal state’s reputation of only being represented by white men.

Balint garnered support from the progressive wing of the state party, including the independent Sen. Bernie Sanders, and national progressive leaders such as Rep. Pramila Jayapal of Washington, chair of the Congressional Progressive Caucus. Balint had campaigned with Sanders late last month.

Balint defeated Lt. Gov. Molly Gray, a more centrist candidate who was supported by the state’s Democratic establishment, including retiring U.S. Sen. Patrick Leahy and former governors Howard Dean and Madeleine Kunin.

In a statement, Balint thanked her opponents in the primary and said she was “humbled and honored by this victory.”

“Tonight is a big step forward for our state. Vermont has chosen a bold, progressive vision for the future, and I will be proud to represent us in Congress,” Balint said. “We can preserve democracy, tackle climate change, bridge inequality, and make the health care system work for all of us. I know that we will.”

In a concession speech, Gray said she’d called Balint to congratulate her on the win.

“While my disappointment is profound, so too is my gratitude for his opportunity,” Gray said. “This was a tough race with deeply qualified candidates making their case to Vermonters.”

Vermont voters also chose Democratic U.S. Rep. Peter Welch to replace Leahy, who has held the seat since 1975 and was the last of Congress’s so-called Watergate babies. Welch’s decision to run for the Senate seat opened up his seat in the House, the first time since 2006 that there have been any openings in Vermont’s three-member congressional delegation.

Welch easily defeated two little-known candidates to move on to the general election in November. During his years in Congress, Welch has been one of Vermont’s top vote-getters and would be an odds-on favorite to win the general election.

Welch will face retired U.S. Army officer Gerald Malloy, who defeated former U.S. Attorney Christina Nolan in Tuesday’s Republican primary for the Senate seat. Malloy says he believes he can win in November, although no Republican has represented the state in Washington since 2001 when the late Sen. Jim Jeffords left the GOP to become an independent, switching control of the Senate from Republican to Democratic.

Incumbent Republican Gov. Phil Scott also cruised to his party’s primary victory, defeating two candidates as he seeks a fourth term. The lone candidate for the Democratic nomination is activist Brenda Siegel, of Newfane. Last fall she spent 27 nights sleeping on the steps of the Vermont Statehouse to highlight the state’s homelessness challenge.

Liam Madden, a Marine Corps veteran who describes himself as a non-traditional candidate, won the GOP primary, defeating Ericka Redic of Burlington and Anya Tynio of Charletson.

Madden says he’s an independent, and has said he considered declining the nomination if he won — until he learned that would allow the party to choose a replacement for the November ballot.

Additional reporting by The Associated Press.

: newsy.com

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Wisconsin GOP Picks Trump-Backed Michels In Governor Primary

By Associated Press

and Newsy Staff
August 10, 2022

Tim Michels defeated former Lt. Gov. Rebecca Kleefisch and will face Democratic Gov. Tony Evers in the November midterm elections.

Tim Michels, a wealthy businessman endorsed by former President Donald Trump, won the Republican primary for Wisconsin governor on Tuesday and will face Democratic Gov. Tony Evers in a contest that could reshape elections in the marquee battleground.

Michels defeated former Lt. Gov. Rebecca Kleefisch, who was endorsed by former Vice President Mike Pence and had backing from establishment Republicans, including ex-Gov. Scott Walker.

In his victory speech, Michels said the race will be about “standing up for the hardworking people of Wisconsin. They have been left behind by the Democratic Party that just wants to focus on the social issues.”

He promised to focus on jobs and the economy.

Evers’ campaign called Michels “the most extreme and divisive nominee possible, one that will tell Donald Trump anything just to keep his endorsement.”

Both Michels and Kleefisch falsely claimed the 2020 presidential election was rigged, a lie Trump has pushed in an effort to overturn his loss to Joe Biden.

Michels said decertifying the results of the 2020 contest was not a priority but said “everything will be on the table.”

He supports other changes to voting and elections, including dismantling the bipartisan commission that runs Wisconsin elections.

Additional reporting by The Associated Press.

: newsy.com

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How a New Corporate Minimum Tax Could Reshape Business Investments

WASHINGTON — At the center of the new climate and tax package that Democrats appear to be on the verge of passing is one of the most significant changes to America’s tax code in decades: a new corporate minimum tax that could reshape how the federal government collects revenue and alter how the nation’s most profitable companies invest in their businesses.

The proposal is one of the last remaining tax increases in the package that Democrats are aiming to pass along party lines in coming days. After months of intraparty disagreement over whether to raise taxes on the wealthy or roll back some of the 2017 Republican tax cuts to fund their agenda, they have settled on a longstanding political ambition to ensure that large and profitable companies pay more than $0 in federal taxes.

To accomplish this, Democrats have recreated a policy that was last employed in the 1980s: trying to capture tax revenue from companies that report a profit to shareholders on their financial statements while bulking up on deductions to whittle down their tax bills.

reduce their effective tax rates well below the statutory 21 percent. It was originally projected to raise $313 billion in tax revenue over a decade, though the final tally is likely to be $258 billion once the revised bill is finalized.

would eliminate this cap and extend the tax credit until 2032; used cars would also qualify for a credit of up to $4,000.

Energy industry. The bill would provide billions of dollars in rebates for Americans who buy energy efficient and electric appliances as well as tax credits for companies that build new sources of emissions-free electricity, such as wind turbines and solar panels. The package also sets aside $60 billion to encourage clean energy manufacturing in the United States. The bill also requires businesses to pay a financial penalty per metric ton for methane emissions that exceed federal limits starting in 2024.

Because of that complexity, the corporate minimum tax has faced substantial skepticism. It is less efficient than simply eliminating deductions or raising the corporate tax rate and could open the door for companies to find new ways to make their income appear lower to reduce their tax bills.

Similar versions of the idea have been floated by Mr. Biden during his presidential campaign and by Senator Elizabeth Warren, Democrat of Massachusetts. They have been promoted as a way to restore fairness to a tax system that has allowed major corporations to dramatically lower their tax bills through deductions and other accounting measures.

According to an early estimate from the nonpartisan Joint Committee on Taxation, the tax would most likely apply to about 150 companies annually, and the bulk of them would be manufacturers. That spurred an outcry from manufacturing companies and Republicans, who have been opposed to any policies that scale back the tax cuts that they enacted five years ago.

Although many Democrats acknowledge that the corporate minimum tax was not their first choice of tax hikes, they have embraced it as a political winner. Senator Ron Wyden of Oregon, the chairman of the Senate Finance Committee, shared Joint Committee on Taxation data on Thursday indicating that in 2019, about 100 to 125 corporations reported financial statement income greater than $1 billion, yet their effective tax rates were lower than 5 percent. The average income reported on financial statements to shareholders was nearly $9 billion, but they paid an average effective tax rate of just 1.1 percent.

“Companies are paying rock-bottom rates while reporting record profits to their shareholders,” Mr. Wyden said.

told the Senate Finance Committee last year. “This behavioral response poses serious risks for financial accounting and the capital markets.”

Other opponents of the new tax have expressed concerns that it would give more control over the U.S. tax base to the Financial Accounting Standards Board, an independent organization that sets accounting rules.

“The potential politicization of the F.A.S.B. will likely lead to lower-quality financial accounting standards and lower-quality financial accounting earnings,” Ms. Hanlon and Jeffrey L. Hoopes, a University of North Carolina professor, wrote in a letter to members of Congress last year that was signed by more than 260 accounting academics.

the chief economist of the manufacturing association. “Arizona’s manufacturing voters are clearly saying that this tax will hurt our economy.”

Ms. Sinema has expressed opposition to increasing tax rates and had reservations about a proposal to scale back the special tax treatment that hedge fund managers and private equity executives receive for “carried interest.” Democrats scrapped the proposal at her urging.

When an earlier version of a corporate minimum tax was proposed last October, Ms. Sinema issued an approving statement.

“This proposal represents a common sense step toward ensuring that highly profitable corporations — which sometimes can avoid the current corporate tax rate — pay a reasonable minimum corporate tax on their profits, just as everyday Arizonans and Arizona small businesses do,” she said. In announcing that she would back an amended version of the climate and tax bill on Thursday, Ms. Sinema noted that it would “protect advanced manufacturing.”

That won plaudits from business groups on Friday.

“Taxing capital expenditures — investments in new buildings, factories, equipment, etc. — is one of the most economically destructive ways you can raise taxes,” Neil Bradley, chief policy officer of the U.S. Chamber of Commerce, said in a statement. He added, “While we look forward to reviewing the new proposed bill, Senator Sinema deserves credit for recognizing this and fighting for changes.”

Emily Cochrane contributed reporting.

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U.S. Sues Idaho Over Abortion Law

Federal prosecutors believe Idaho’s ban would force doctors to violate a federal law that requires medical facilities to provide emergency treatment.

The Justice Department on Tuesday filed a lawsuit that challenges Idaho’s restrictive abortion law, arguing that it conflicts with a federal law requiring doctors to provide pregnant women medically necessary treatment that could include abortion.

The federal government brought the lawsuit seeking to invalidate the state’s “criminal prohibition on providing abortions as applied to women suffering medical emergencies,” Attorney General Merrick Garland said.

The announcement is the first major action by the Justice Department challenging a state trigger law since the Supreme Court overturned Roe v. Wade in June. The court’s decision has led some states to enact restrictive abortion laws and is likely to lead to abortion bans in roughly half the states in the U.S.

The Justice Department brought the suit because federal prosecutors believe Idaho’s law would force doctors to violate the Emergency Medical Treatment and Labor Act, a federal law that requires anyone coming to a medical facility for emergency treatment to be stabilized and treated, Garland said.

“Idaho’s law would make it a criminal offense for doctors to provide the emergency medical treatment that federal law requires,” Garland said.

Idaho, like many Republican-led states, has several anti-abortion laws on the books, creating a legal quagmire now that the U.S. Supreme Court has overturned the landmark abortion rights case Roe v. Wade.

The law targeted by the Justice Department criminalizes all abortions, subjecting anyone who performs or attempts to perform an abortion to a felony punishable by between two and five years in prison.

People who are charged under the law could defend themselves against the criminal allegations by arguing that the abortion was done to save a pregnant person from death, or that it was done after the pregnant person reported that they were a victim of rape or incest to a law enforcement agency — and provided a copy of that report to the abortion provider.

“Under the Idaho law, once effective, any state or local prosecutor can subject a physician to indictment, arrest, and prosecution merely by showing that an abortion has been performed, without regard to the circumstances,” the Department of Justice wrote in the lawsuit. “The law then puts the burden on the physician to prove an ‘affirmative defense’ at trial.”

Advocates for sexual assault survivors have said the rape and incest exception is essentially useless, because Idaho’s public record law doesn’t allow law enforcement agencies to release reports when a case is still under investigation — a process that generally takes weeks or months.

Dr. Caitlin Gustafson, a family physician, and a regional Planned Parenthood organization have already sued over the abortion ban and two other anti-abortion laws in the Idaho Supreme Court, which is expected to hear arguments in the case on Wednesday. In the lawsuit, Gustafson contends that the exception for medical emergencies is vague and impossible to interpret.

“It would be very difficult, if not impossible, for me to implement the medical exception and provide care to a pregnant person whose life may be at risk,” wrote Gustafson, noting that some serious pregnancy-related medical conditions like preeclampsia can cause death though it is not guaranteed to do so.

Idaho Gov. Brad Little, a Republican, said the U.S. Supreme Court gave states the ability to regulate abortion, “end of story.” He promised to work with the state’s attorney general, Lawrence Wasden, to defend the law.

“The U.S. Justice Department’s interference with Idaho’s pro-life law is another example of Biden overreaching yet again,” Little said in a prepared statement.

Wasden, also a Republican, said the lawsuit was “politically motivated” and said the Justice Department should have reached out to Idaho some time over the past six weeks to work out the issue.

“Instead of complying with the requirements of this provision,” Wasden said, referencing the Emergency Medical Treatment and Labor Act, “or even attempting to engage Idaho in a meaningful dialogue on the issue, the federal government has chosen to waste taxpayer dollars on an unnecessary lawsuit.”

Idaho Democratic Party Chair Lauren Necochea praised the Justice Department’s lawsuit in a prepared statement, saying the state’s Republican politicians “would rather let a pregnancy kill a person than allow them to receive an abortion.”

“Idaho’s radical abortion ban gives health care providers an impossible choice: withhold medically necessary care or face prison time,” Necochea said. “In states where these bans have gone into effect, providers are waiting for medical conditions to worsen before assisting their pregnant patients, increasing the risk of sepsis and other life-threatening complications. This is immoral.”

The U.S. Department of Health and Human Services last month informed hospitals that they must provide abortion services if the woman’s life is at risk, saying federal law on emergency treatment guidelines preempt state abortion bans if the bans don’t have adequate exceptions for medical emergencies.

In response, the state of Texas sued the federal government, contending that the guidance from the Biden administration is unlawful and that the Emergency Medical Treatment and Labor Act does not cover abortions. That case is still pending.

Additional reporting by The Associated Press.

: newsy.com

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