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Trump under fire over ‘huge tax cut for the rich’

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  • As Poll indicates Trump, worst U.S. leader in 100 days

The Trump administration unveiled what it called the biggest tax cuts “in history” on Wednesday, in a move that will simplify the US tax system, slash taxes for businesses large and small – including Trump’s own – eliminate inheritance taxes and set the president on a collision course with Congress over the likely $2tn-plus cost of the proposal.

Critics immediately called it “basically a huge tax cut for the rich”.

The plan would cut the US’s individual income tax brackets from seven to three (10%, 25% and 35%) and slash US corporate tax rates from 35% to 15%. “We have a once-in-a-generation opportunity to do something really big,” said Gary Cohn, chief economic adviser to Donald Trump. “This is about growing the economy, creating jobs.”

Cohn and Steven Mnuchin, the treasury secretary, were short on details of the plan that, if passed, would be the largest overhaul of the US tax system since the Reagan era. “We are moving as quickly as we can,” said Mnuchin.

The announcement comes amid a continuing row over Trump’s own taxes, with members of his own party asking for him to release his returns before pressing ahead with tax reforms. Trump has long claimed he might release these documents at the end of what he says is a long-running audit, but Mnuchin said on Wednesday that the president “has no intention” of releasing his tax returns to the public.

As well as slashing costs for his own businesses, the new proposals will also cut the alternative minimum tax (AMT), a tax designed to stop the super-wealthy from taking so many tax deductions that they avoid paying anything. Leaked documents have shown that in 2005 Trump paid $31m in tax thanks to the AMT.

Mnuchin and Cohn were pressed on how Trump would benefit from the proposals, but they avoided the questions. “What this is about is creating job and economic growth,” Mnuchin said. He described the proposals as “the biggest tax cut and the largest tax reform in the history of our country”.

The president will not be the only Trump administration official to benefit from the tax cuts. His cabinet is the richest in history and includes several billionaires.

The proposal also gets rid of almost all tax deductions, including those for state and local taxes. This creates a significant increase in tax for residents of high-tax states such as California and New York. It does leave in place existing tax dedications for charitable donations and home mortgage payments.

Mnuchin refused to commit as to whether the tax cuts would end up being revenue neutral, saying the administration was “working on a lot of details”. However, he said he felt confident that the tax cuts would “pay for [themselves] through growth, reduction of deductions, and closing loopholes”. The treasury secretary did insist, though, that “the deficit is a problem and the president is concerned about that”.

Trump has long heralded tax cuts, particularly on corporations, as a major component of his economic plan. In his joint address to Congress in February, the president previewed his proposals, saying: “My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone.” He added: “It will be a big, big cut.”

In the meantime, as the 100-day mark of Donald Trump’s presidency approaches, a new CNN/ORC poll finds the President reaches this milestone holding on to the lowest approval rating of any newly-elected president at this stage, amid sharp partisan divides and a failure to capitalise on post-election strengths.

Overall, 44% say they approve of Trump’s handling of the presidency, 54% disapprove. That’s about the same as in each of the two previous CNN/ORC polls taken after his inauguration.

That 44% marker puts Trump last among approval ratings for newly-elected presidents at the 100-day point since modern polling began, a trendline that runs back to Dwight Eisenhower.

Trump is last by a significant margin, trailing Bill Clinton’s previous low by 11 points. The poll finds declining ratings for Trump’s handling of two issues that have been top priorities since he took office — health care and immigration. About 6 in 10 Americans disapprove of Trump’s handling of each of those issues, and both have tilted more negative since early March.

His numbers have held steady, however, on his handling of foreign affairs, national security and the role of commander-in-chief, after taking several high-profile actions on those fronts during the last month. Assessing his overall use of the military, most (52%) say he’s used it responsibly since taking office. Two measures of the country’s progress have shown signs of improvement since Trump took the helm. Most, 54%, now say things in the country are going well, up from 46% in February.

That matches last year’s high of 54%, reached in October. Likewise, almost 6 in 10 now say economic conditions in the country are good, an uptick compared with mid-January, and the highest mark on that question since May 2007.

Behind the overall increases in these numbers, however, there have been sharp partisan shifts, with the share of Democrats offering a positive assessment dropping since Barack Obama left office while the share of Republicans on the positive side has risen rapidly. Still, majorities offer negative impressions of Trump’s presidency so far across a range of questions about his handling of the job.

Guardian with additional report Vanguard

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Israeli Parliament Passes Law Banning UNRWA From Operating In Israel

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Israeli Parliament Passes Law Banning UNRWA From Operating In Israel

The Israeli parliament, the Knesset, has passed a law prohibiting the United Nations Relief and
Works Agency for Palestine Refugees in the Near East (UNRWA) from operating in Israel.

According to local media reports, the new law, which received support from 92 out of 120 parliament members, passed despite opposition from the United States and several European countries.

The law stipulates that UNRWA will not operate any representation, provide services, or conduct any activities, directly or indirectly, within Israeli territory.

“As it is proven that UNRWA and its employees participate and are involved in terrorist activity against Israel.

“It is proposed to establish that Israel will act to stop all activities of the agency in its territory,” the explanatory notes to the law read.

In a post on X, Philippe Lazzarini, commissioner-general of UNRWA, said the vote by the Israeli Parliament against UNRWA “is
unprecedented and sets a dangerous precedent.”

“It opposes the UN Charter and violates the State of Israel’s obligations under international law.

“These bills would only deepen the suffering of Palestinians, especially in Gaza where people have been going through more than a year of sheer hell,” he wrote. 

– Xinhua

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Lebanese Military Reports Troops Killed In Israel-Hezbollah Conflict

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Lebanese Military Reports Troops Killed In Israel-hezbollah Conflict

…As EU ministers sanction Iran over missiles supplied to Russia

Four soldiers from the Lebanese army have died in the conflict between the Hezbollah militia and Israel, and a further 12 Lebanese soldiers have been killed while not on duty, army sources told DPA.

Two soldiers were recently killed by Israeli fire while on duty at a military post in Kafra in the south of the country, the Lebanese army said.

Lebanon’s military was seen as weak and under-resourced.

It was not directly involved in the conflict between Israel and Iran-backed Hezbollah.

It has partially withdrawn from positions along the country’s southern border with Israel since the Israeli ground offensive began two weeks ago.

The army did, however, return fire when one of its bases in Bint Jbeil in the south came under Israeli attack. 

In another development, the EU foreign ministers adopted sanctions on Iran for supplying Russia with ballistic missiles for use in Ukraine on Monday.

Diplomats told DPA that the EU sanctions target companies and individuals involved in Iran’s ballistic missile programme and the delivery of these and other weapons to Russia.

The European Union had previously warned Iran several times against passing on ballistic missiles to Moscow and views the step as breaching a new taboo.

Iran has vehemently denied supplying Russia with the weapons.

According to Tehran, the country has a strategic cooperation with Moscow, although this is not related to the war in Ukraine.

Tehran maintains that providing military aid to warring parties is inhumane.

One of the targets is the Iranian state airline Iran Air.

Britain, Germany and France have already announced they are working on sanctions targeting the company.

The EU sanctions, including a freeze on assets held in the bloc and a travel ban on individuals, will enter into force upon their publication in the EU Official Journal, a register of EU laws.

EU foreign ministers are meeting to debate the escalating conflict in the Middle East and the EU’s efforts to support Ukraine against the Russian invasion, despite Hungarian resistance.

The bloc also plans to hit Russian actors and organizations accused of destabilizing Moldova’s democracy and security with new sanctions ahead of a crunch referendum on EU membership later this month.

The role of Iran and its regional proxies Hezbollah in Lebanon and Hamas in Gaza will be in focus at the foreign ministers’ meeting in Luxembourg.

The EU is struggling to find a response that could help stop the conflict from spiralling into a full-scale regional war in the Middle East.

Top EU diplomat Josep Borrell voiced frustration over the bloc’s discordance on an increasingly tense Middle East conflict, especially concerning criticism of Israel.

“It takes too long to say some things which are quite evident,” he said upon arrival.

“It’s quite evident that we should be against Israeli attacks against UNIFIL, especially because our soldiers are there.”

He referred to a joint EU statement on recent attacks on the UN peacekeeping mission in southern Lebanon, issued on the eve of the gathering.

Borrell also said that EU countries are at odds over arms deliveries to Israel after Spain called for an embargo.

“Member states are strongly divided,” he said, adding that other EU countries are in favour of delivering more weapons to Israel.

Another major issue is Hungary’s over-a-year blockade of a key EU military aid policy for Ukraine, the European Peace Facility (EPF), worth €6.6 billion ($7.2 billion).

Budapest does not want to send arms to Ukraine, believing that doing so only prolongs the war.

“Frankly speaking, it’s a lot of time, it’s a lot of money, and it’s undermining our political will of supporting Ukraine on any front,” an EU official said in a sign of growing EU impatience with Hungary.

The bloc’s diplomatic arm, the European External Action Service, has devised a plan to make contributions to the EPF fund voluntary instead of mandatory, as a technical workaround to Hungary’s opposition.

An EU diplomat said that Hungary has shown a willingness to agree to this solution.

New Ukrainian Foreign Minister Andrii Sybiha spoke with EU foreign ministers via video link.

Borrell welcomed his contribution in a post on X and promised new deliveries of weapons for Ukraine.

British Foreign Minister David Lammy is also in Luxembourg, the first time a British foreign minister has attended a gathering of EU foreign ministers alone since Britain left the EU in 2020.

– dpa

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Israeli Intelligence Says It Has Foiled Hezbollah Attack On Official; Expands Gaza Military Operation Goals

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Israeli Intelligence Says It Has Foiled Hezbollah Attack On Official; Expands Gaza Military Operation Goals

Israel’s domestic intelligence service Shin Bet claimed it had foiled a bomb attack by the Lebanese Shiite militia Hezbollah targeting a former senior Israeli security official.

The attack had been planned for the coming days, according to Shin Bet.

An explosive device had been equipped with a remote detonator and connected to a camera and a mobile phone, which would have allowed the bomb to be detonated from Lebanon by Hezbollah.

This is according to the statement released.

The intelligence service also accused Hezbollah of being responsible for an attempted attack in a park in Tel Aviv in September last year.

At the end of July, an Israeli attack on a house in a suburb of the Lebanese capital Beirut killed a high-ranking commander of the Shiite militia, Fuad Shukr. Hezbollah responded by threatening retaliation. 

In the meantime, Xinhua reported on Tuesday that Israel has expanded its goals of the military operation in Gaza to include the safe return of northern Israel residents who were evacuated.

The evacuation was due to the conflict ongoing with Hezbollah along the Israel-Lebanon border.

A statement from his office said the decision was approved during an overnight meeting of Prime Minister Benjamin Netanyahu’s security cabinet.

The ministers updated the goals “to include the following clause: the safe return of northern residents to their homes,’’ the statement said.

On Monday, Israeli Defence Minister, Yoav Gallant, told White House special envoy Amos Hochstein, who arrived in Tel Aviv to discuss efforts toward de-escalation between Israel and Hezbollah.

Gallant said that the window for a diplomatic resolution was closing.

Military action is the only way to achieve calm on the northern border, said Gallant.

Tens of thousands of residents on both sides of the border have been displaced due to the fighting.

Hezbollah has said it would cease fire if Israel and Hamas agree to end the fighting. 

– dpa

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