Tag Archives: consumer fraud

GOP tax bill: the devil is in the details to derailing this terrible bill

The House and Senate conference committee will be meeting this week to hash out the differences between the House and Senate GOP tax bills to come up with a conformed bill that still must be passed by both chambers to become law.

There is a scenario or two in which this terrible tax bill falls apart. Jim Newell writes at Slate, How the Tax Deal Could Fall Apart:

The biggest development this week was that negotiators, for the first time in the process, seriously looked at reinstating some version of the state and local income tax deduction. There appear to be two reasons for this. The first would be the sizable, and mercurial, California GOP delegation in the House. Eleven out of 14 of these members voted for the original House bill—an odd move, since one of the bill’s ambitions is to redistribute Californian wealth elsewhere. Rather than flex their leverage in the original fight, though, they put their faith in Majority Leader Kevin McCarthy to ensure it’s fixed in conference. The second reason—and the one that explains why Californians might prevail—is that they appear to have an even greater ally in this fight than McCarthy: President Trump. The Washington Post reported this week that Trump’s rich friends in New York have been bitching to him about the SALT elimination. That goes a long way.

Even a modest retention would be costly. Eliminating the deductibility of state and local income taxes is a major revenue-raiser in both the House and Senate bills. Other pay-fors that were included in both the House and Senate bills might not last in the joint negotiations as well. There is a flat-out error in the Senate bill regarding the corporate alternative minimum tax, and the Senate’s last-minute decision to keep the individual AMT is meeting resistance as well. The House bill, which more aggressively pursued deductions for graduate students and those with major medical expenses, is also expected to be tamed.

What all this means is that conference negotiators are under pressure to find some hundreds of billions of dollars in new revenue to keep the bill’s net cost within $1.5 trillion over the next decade.

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The Federal Vacancies Reform Act of 1998 is about to become a big effin’ deal

Andrew Rudalevige, the Thomas Brackett Reed Professor of Government at Bowdoin College, has an excellent summary of the legal battle over the director of the Consumer Financial Protection Bureau (CFPB). It’s the Game of Vacancies at the CFPB! Watch out for the bureaucratic duel of conflicting statutes.

It’s not exactly “Game of Thrones” – federal budget procedures make it difficult to acquire decent-sized dragons – but there is a monstrous battle over who should be head of the Consumer Financial Protection Bureau (CFPB).

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The Dodd-Frank Act, which created the CFPB, decreed that it should have a single Senate-confirmed director who would serve a fixed term and could not be fired by the president. It also funded the agency via the Federal Reserve instead of the regular budget process, limiting legislators’ ability to slash the CFPB’s budget during annual appropriations.

Most relevant to this week’s drama, the Dodd-Frank Act also states that the agency’s deputy director becomes its acting director in the event of a vacancy at the top. Last Friday, director Richard Cordray resigned, amid speculation that he might run for governor in Ohio. On his way out the door, he named his chief of staff, Leandra English, as deputy director – and thus, in short order, acting director.

FVRA vs. Dodd-Frank: Bureaucratic battle of the giant statutes

Or was she? President Trump turned to a different statute – the Federal Vacancies Reform Act of 1998. The FVRA allows a deputy to fill a temporary vacancy, but also provides that the president can instead appoint another executive branch official in that deputy’s place, so long as that official has also been confirmed by the Senate. And so as soon as Cordray’s resignation took effect, Trump named Office of Management and Budget director Mick Mulvaney to do double duty at CFPB.

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The manufactured ‘crisis’ over the Consumer Financial Protection Bureau

The latest attempt by Donald Trump to fill the D.C. swamp with his loyal cronies to destroy federal agencies he does not like is this manufactured “crisis” over who will head the Consumer Financial Protection Bureau.

This fake “populist” is actually a big supporter of the banksters of Wall Street, the The Predator Class whose unbridled avarice and greed led to The Mortgage Fraud Scandal, The Biggest In Human History, that nearly destroyed the U.S. economy and the world’s financial system.

Donald Trump, a grifter and con man himself, believes the banksters of Wall Street were the real victims in this financial scandal, and that they should be freed from the minimalist banking regulations enacted in the Dodd-Frank Act to allow them to once again prey on consumers victims again, something you would expect a grifter and con man to say. Casting Wall Street as Victim, Trump Leads Deregulatory Charge.

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The Twitter-troll-in-chief”s tweet is, of course, total bullshit, as Philip Bump of The Post explains. Trump once again rises to Wall Street’s defense:

This isn’t true: Banks have repeatedly set new quarterly records on incomes over the past several years, including in the second quarter of 2017. If that’s devastation, sign me up.

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Bloomberg News’s editorial board, in an editorial praising the watchdog agency, described some of its successes: “It created the first federal rules to make payday lending less predatory. It gave the public reams of valuable information, such as a database that allows consumers to compare credit-card agreements. Its practice of publishing complaints pushed financial institutions to be more responsive. Its investigation of Wells Fargo brought national attention to the fake-accounts issue.”

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