Tag Archives: Government

Kurds abandon territory in the face of Iraq government advance

Kurds abandon territory in the face of Iraq government advance

By Ahmed Rasheed and Mustafa Mahmoud

BAGHDAD/KIRKUK (Reuters) – The Baghdad government recaptured territory across the breadth of northern Iraq from Kurds on Tuesday, making startingly rapid gains in a sudden campaign that has shifted the balance of power in the country almost overnight.

In the second day of a lightning government advance to take back towns and countryside from forces of the Kurdish autonomous region, Kurdish troops known as Peshmerga pulled out of the long disputed Khanaqin area near the Iranian border.

Government troops took control of the last two oilfields in the vicinity of Kirkuk, a city of 1 million people that the Peshmerga abandoned the previous day in the face of the government advance. A Yazidi group allied to Baghdad also took control of the town of Sinjar.

The government advances have redrawn the map of northern Iraq, rolling back gains by the Kurds who infuriated Baghdad last month by holding a referendum on independence.

The Kurds govern three mountainous northern provinces in an autonomous region, and have also held a wide crescent of additional territory in northern Iraq, much of which they captured after helping drive out Islamic State fighters.

Prime Minister Haidar Abadi ordered his troops on Monday to raise their flag over all Kurdish-held territory outside the autonomous region itself. They achieved a swift victory in Kirkuk, reaching the centre of the city in less than a day.

The fighting in one of Iraq’s main oil-producing areas has helped return a risk premium to oil prices. After months of range-bound trading, benchmark Brent crude is now above $58 a barrel, up almost a third from its mid-year levels.

Oil officials in Baghdad said all the fields near Kirkuk were working normally on Tuesday after the last came under government control. Kirkuk is the base of Iraq’s Northern Oil Company, one of the two giant state energy firms that provide nearly all government revenue.

DILEMMA FOR WASHINGTON

The advances create a dilemma for Washington, which has armed and trained both sides in its successful campaign to drive Islamic State fighters out of Iraq.

“We don’t like the fact that they’re clashing,” U.S. President Donald Trump told reporters at the White House on Monday. “We’ve had for many years a very good relationship with the Kurds as you know, and we’ve also been on the side of Iraq.”

So far most of the advances appear to have come unopposed, with Kurds withdrawing before government forces move in. There have been reports of just one major clash, in the early hours of Monday on the outskirts of Kirkuk.

In Kirkuk, one of Iraq’s most diverse cities, members of the Turkmen ethnic group who have opposed Kurdish rule had celebrated on Monday, driving through the streets in convoys and firing weapons in the air.

By Tuesday, the once ubiquitous green, red and white Kurdish flag with a blazing yellow sun had vanished from the streets. U.S.-trained Iraqi special forces and local police patrolled to maintain order. Markets, shops and schools were open as normal.

Some Kurdish families who had left the city on Monday were already returning home. They said thousands of Kurdish fighters in convoys were lining up in a long queue attempting to flee Kirkuk towards the Kurdish regional capital Erbil, which clogged the road and made it difficult for civilians to leave.

For the Kurds, the loss of territory, particularly Kirkuk which Kurdish folklore views as the heart of their homeland, is a severe blow just three weeks after they voted to declare the independent state that had been their goal for decades.

“Our leaders abandoned us in the middle of nowhere. Our future is dark,” said Malla Bakhtiyar, a retired schoolteacher in Kirkuk.

He said he tried to escape on Monday but returned with his wife and sons after an Arab neighbour phoned, begging him not to leave and assuring him the city was safe.

University lecturer Salar Othman Ameen blamed the Kurdish authorities for calling the independence referendum prematurely.

“We feel broken now. The referendum was a catastrophic decision…Our Kurdish leadership was supposed to think of the consequences before moving along with independence vote. Now we have lost what we have achieved over three decades.”

The setbacks led to recriminations among the two main Kurdish political parties, which each control separate units of Peshmerga fighters. Officials in the KDP of Kurdish regional government leader Masoud Barzani accused the PUK of his longterm rival Jalal Talabani of “treason” for abandoning Kirkuk.

Talabani, who served as ceremonial Iraqi president in Baghdad from 2003-2014, died two weeks ago. His widow denied blame for the fall of Kirkuk and said her party had tried to avert the advance through contact with U.S. and Iraqi officials.

Barzani was expected to issue a statement calling on Kurdish factions to avoid “civil war”, according to Kurdish Rudaw TV.

The advances were a second major triumph for Abadi, the soft-spoken Iraqi prime minister, months after his forces recaptured Mosul from Islamic State. Abadi had faced threats from Iran-backed Shi’ite armed groups to take matters into their own hands if he did not act decisively to take on the Kurds.

“If elections were held tomorrow, I would vote with ten fingers for Abadi. He succeeded in keeping Iraq a single state,” said Adel Abdul Kareem, a Baghdad lawyer.

“When Kurdish leaders were threatening Baghdad, Abadi was always smiling,” he said. “We did not expect he was hiding a tornado behind this smile. He proved he was a smart leader, and with his wisdom he won against Masoud (Barzani) with a knockout in the second round.”

In Sinjar, home to the small Yazidi religious minority that faced genocide in 2014 when the area was captured by Islamic State fighters, a Yazidi group called Lalesh took control of the town after Kurdish Peshmerga withdrew.

“There was no violence. The Lalesh group moved after the Peshmerga pulled out,” said a resident reached by telephone.

The decision by the Kurds to hold an independence referendum had angered neighbours Turkey and Iran. Washington, friendly to the Kurds for decades, had also called on them to cancel the vote, fearing it could trigger war.

(Additional reporting by Maher Chmaytelli; writing by Peter Graff; Editing by Richard Balmforth)

Trump administration to order agencies to adopt new email security standards

Jeanette Manfra, Acting Deputy Undersecretary for Cybersecurity at the DHS, testifies about Russian interference in U.S. elections to the Senate Intelligence Committee in Washington, U.S., June 21, 2017.

By Dustin Volz

WASHINGTON (Reuters) – The Trump administration on Monday will order federal agencies to adopt common email security standards in an effort to better protect against hackers, a senior Department of Homeland Security official said.

DHS Assistant Secretary for Cybersecurity Jeanette Manfra, speaking at an event in New York, said the agency would issue a binding directive to require implementation of two cyber security measures, known as DMARC and STARTTLS, intended to guard against email spoofing and phishing attacks.

The new requirements are “discrete steps that have scalable, broad impact” that will improve federal government cyber security, Manfra said.

DMARC, or domain-based message authentication, reporting and conformance, is a popular technical standard that helps detect and block email impersonation, such as when a hacker might try to pose as a government official or agency.

STARTTLS is a form of encryption technology that protects email traveling between servers, making it more difficult for a third-party to intercept.

 

(Reporting by Dustin Volz; Editing by Chizu Nomiyama and Bill Trott)

 

Trump expected to make U.S. move against Iran nuclear deal -officials

FILE PHOTO: A general view of the Bushehr nuclear power plant, some 1,200 km (746 miles) south of Tehran October 26, 2010. REUTERS/IRNA/Mohammad Babaie/File Photo

By Steve Holland and Jonathan Landay

WASHINGTON (Reuters) – President Donald Trump is likely to take a major step against the international nuclear deal with Iran on Friday, laying out a more aggressive approach to Iranian activities in the Middle East that risks upsetting U.S. relations with European allies.

“It is time for the entire world to join us in demanding that Iran’s government end its pursuit of death and destruction,” Trump said in a White House statement that flagged key elements of the strategy.

He is to present his plan in a 12:45 p.m. EDT (1645 GMT)speech at the White House, the product of weeks of internal discussions between him and his national security team.

U.S. officials said Trump was expected to announce that he will not certify the 2015 nuclear accord between Iran and six world powers, one he has called the “worst deal ever” as it was not, in his view, in the U.S. national interest.

Trump found himself under immense pressure as he considered de-certifying the deal, a move that would ignore warnings from inside and outside his administration that to do so would risk undermining U.S. credibility abroad.

He had formally reaffirmed it twice before but aides said he was reluctant to do so a third time.

De-certification would not pull the United States out of the deal but would give the Congress 60 days to decide whether to reimpose sanctions on Tehran that were suspended under the pact, negotiated during the administration of President Barack Obama.

U.S. House of Representatives Homeland Security Committee Chairman Michael McCaul told Reuters he thinks Trump “is likely to not completely pull out of the deal, but decertify compliance.”

IRANIAN WARNING

If Washington quits the deal, that will be the end of it and global chaos could ensue, Iran’s influential parliament speaker, Ali Larijani, was quoted by the Russian news agency TASS as saying during a visit to St Petersburg on Friday.

U.N. nuclear inspectors say Iran is in compliance with the accord, which limited the scope of Iran’s nuclear program to help ensure it could not be put to developing bombs in exchange for a lifting of international sanctions on Tehran.

Trump says Tehran is in violation of the spirit of the agreement and has done nothing to rein in its ballistic missile program or its financial and military support for the Lebanese Shi’ite movement Hezbollah and other militant groups.

White House Chief of Staff John Kelly said on Thursday the U.S. approach toward Iran is to work with allies in the Middle East to contain Tehran’s activities.

“We have footprints on the ground, naval and Air Force is there to just demonstrate our resolve, our friendship, and try to deter anything that any country out there may do,” Kelly told reporters.

European allies warn of a split with the United States over the nuclear agreement, in part because they are benefiting economically from a relaxation of sanctions.

A variety of European allies, including the leaders of Britain and France, have personally appealed to Trump to re-certify the nuclear accord for the sake of allied unity.

Germany’s government pledged on Friday to work for continued unity if Trump de-certified the deal as Berlin remain convinced the agreement was an important tool to prevent Iran developing nuclear weapons.

Foreign Minister Sigmar Gabriel underscored German views in a telephone call with U.S. Secretary of State Rex Tillerson late on Thursday, his spokeswoman Maria Adebahr told reporters.

Gabriel said on Thursday U.S. behavior was driving a wedge between Europe and its close ally United States and bringing Europeans closer to Russia and China. “It’s imperative that Europe sticks together on this issue,” said Gabriel.

Russian President Vladimir Putin’s spokesman, Dmitry Peskov, said on Friday that if the United States withdrew from the deal, “this will damage the atmosphere of predictability, security, stability and non-proliferation in the entire world”.

U.S. MOVE AGAINST REVOLUTIONARY GUARDS

McCaul said he expected Trump also to announce some kind of action against the Iranian Revolutionary Guard Corps, the country’s most powerful security force. Trump is under a legal mandate to impose U.S. economic sanctions on the Revolutionary Guards as a whole by Oct. 31 or waive them.

U.S. sanctions could seriously hurt the IRGC as it controls large swaths of Iran’s economy. The Guards’ foreign paramilitary and espionage wing, the Quds Force, is under U.S. sanctions, as is the Quds Force commander, other officials and associated individuals and entities.

The 2015 nuclear agreement, signed by the United States, Britain, France, Germany, Russia, China, the European Union and Iran, has been denounced by Trump as “an embarrassment” and “the worst deal ever.”

European officials have categorically ruled out renegotiating the deal but have said they share Trump’s concerns about Iran’s destabilizing influence in the Middle East.

China has said it hopes the agreement will stay intact.

Israel, Iran’s arch-adversary in the Middle East, welcomed Trump’s anticipated announcement on Friday but voiced doubt that the tougher tack by Washington could turn around the Islamic Republic.

The International Atomic Energy Agency concluded that Iran secretly researched a nuclear warhead until 2009, which Tehran denies. Iran has always insisted its uranium enrichment activity is for civilian energy purposes, not for atomic bombs.

The threat of new U.S. action has prompted a public display of unity from rival factions among Iran’s rulers. Iran will react sharply to any U.S. move against the nuclear deal with global powers, Foreign Minister Mohammad Javad Zarif told the Iranian parliament on Wednesday.

(Reporting by Steve Holland and Jonathan Landay in Washington; additional reporting by Warren Strobel in Washington, Andrea Shalal in Berlin Dmitry Solovyov in Moscow and Dan Williams in Jerusalem; Editing by Yara Bayoumy and Mark Heinrich)

Michigan governor denies misleading U.S. House on Flint water

Michigan Governor Rick Snyder is seen at a bill signing event in Detroit, Michigan, U.S. on June 20, 2014. Picture taken on June 20, 2014. REUTERS/Rebecca Cook

By David Shepardson

(Reuters) – Michigan Governor Rick Snyder denied Thursday that he had misled a U.S. House of Representatives committee last year over testimony on Flint’s water crisis after lawmakers asked if his testimony had been contradicted by a witness in a court hearing.

The House Oversight and Government Reform Committee wrote Snyder earlier Thursday asking him about published reports that one of his aides, Harvey Hollins, testified in a court hearing last week in Michigan that he had notified Snyder of an outbreak of Legionnaires’ disease linked to the Flint water crisis in December 2015, rather than 2016 as Snyder had testified.

“My testimony was truthful and I stand by it,” Snyder told the committee in a letter, adding that his office has provided tens of thousands of pages of records to the committee and would continue to cooperate fully.

Last week, prosecutors in Michigan said Dr. Eden Wells, the state’s chief medical executive who already faced lesser charges, would become the sixth current or former official to face involuntary manslaughter charges in connection with the crisis.

The charges stem from more than 80 cases of Legionnaires’ disease and at least 12 deaths that were believed to be linked to the water in Flint after the city switched its source from Lake Huron to the Flint River in April 2014.

Wells was among six current and former Michigan and Flint officials charged in June. The other five, including Michigan Health and Human Services Director Nick Lyon, were charged at the time with involuntary manslaughter stemming from their roles in handling the crisis.

The crisis in Flint erupted in 2015 when tests found high amounts of lead in blood samples taken from children in the predominantly black city of about 100,000.

The more corrosive river water caused lead to leach from pipes and into the drinking water. Lead levels in Flint’s drinking water have since fallen below levels considered dangerous by federal regulators, state officials have said.

(Reporting by David Shepardson; Editing by Jonathan Oatis)

Allies press Catalan leader to declare full independence, ignore Madrid deadlines

People walk under a huge Catalan flag during Spain's National Day in Barcelona. REUTERS/Gonzalo Fuentes

By Isla Binnie and Paul Day

MADRID (Reuters) – Catalan leader Carles Puigdemont came under pressure from one of his key allies on Friday to declare full independence and ignore a threat of direct rule from the Spanish government.

Puigdemont made a symbolic declaration of independence on Tuesday night, only to suspend it seconds later and call for negotiations with Madrid. [nL8N1ML2NZ]

Spain’s Prime Minister Mariano Rajoy has given him until Monday to clarify his position – and then until Thursday to change his mind if he insists on a split – threatening to suspend Catalonia’s autonomy if he chooses independence.

But far-left Catalan political group CUP called on Puigdemont to make an unequivocal declaration of independence in defiance of the deadlines.

“If (the central Madrid government) wants to continue to threaten and gag us, they should do it to the Republic that has already been claimed,” the party said.

The CUP only holds 10 seats in the 135-seat Catalan parliament. But Puigdemont’s minority government relies on its support to push through legislation and cannot win a majority vote in the regional parliament without its backing.

The wealthy region’s intention to break away after a referendum has plunged Spain into its worst political crisis since an attempted military coup in 1981.

Sources close to the Catalan government said Puigdemont and his team were working on an answer to Rajoy though they declined to say what line he might take.

The CUP statement echoes the position expressed late on Thursday by influential pro-independence civic group Asamblea Nacional Catalana which said: “Given the negative position of Spain toward dialogue, we ask the regional parliament to raise the suspension (on the declaration of independence).”

But the leader of Puigdemont’s party, Artur Mas, who served as the region’s president until 2016 and is still believed to influence key decisions, said on Friday declaring independence was not the only way forward.

“If a state proclaims itself independent and cannot act as such, it’s an independence that is merely aesthetic,” he told Catalan television TV3.

“The external factor must be taken into account in the decisions that will be made from now on,” he said.

The European Union, the United States and most other world powers have made it clear they wanted Catalonia to remain within Spain.

“If we allow Catalonia – and it is none of our business – to separate, others will do the same. I do not want that,” Jean Claude Juncker said in a speech at Luxembourg University.

(This refiled version of the story adds dropped word in paragraph six).

(Writing by Julien Toyer; Editing by Andrew Heavens)

North Korea’s ‘princess’ now one of the secretive state’s top policy makers

Kim Yo Jong, sister of North Korean leader Kim Jong Un, attends an opening ceremony of a newly constructed residential complex in Ryomyong street in Pyongyang, North Korea

By Hyonhee Shin and Soyoung Kim

SEOUL (Reuters) – The promotion of North Korean leader Kim Jong Un’s 28-year-old sister to the country’s top decision-making body is a sign he is strengthening his position by drawing his most important people closer to the center of power, experts and officials say.

Kim Yo Jong was named as an alternate member of the politburo within the ruling Workers’ Party of Korea – the opaque, all-powerful party organ where top state affairs are decided, the North’s official media said on Sunday.

It makes her only the second woman in patriarchal North Korea to join the exclusive club after Kim Kyong Hui, who held powerful roles when her brother Kim Jong Il ruled the country.

“Since she is a female, Kim Jong Un likely does not see her as a threat and a challenge to his leadership,” said Moon Hong-sik, research fellow at the Institute for National Security Strategy. “As the saying goes ‘blood is thicker than water,’ Kim Jong Un thinks Kim Yo Jong can be trusted.”

Unlike her aunt, who was promoted to the politburo in 2012 after serving more than three decades in the party, Kim Yo Jong has risen to power at an unprecedented pace.

Kim Kyong Hui has not been seen since her husband, Jang Song Thaek, once regarded as the No.2 leader in Pyongyang, was executed in 2013. South Korea’s spy agency believes she is now in a secluded place near Pyongyang undergoing a treatment for an unidentified disease, according to an August briefing to parliament.

Jang and his wife are not the only relatives to fall from Kim Jong Un’s favor.

Kim Jong Un’s estranged half-brother, Kim Jong Nam, was killed with a toxic nerve agent at a Malaysian airport in February. Two women are on trial for the murder, which South Korean and U.S. officials believe Kim Jong Un’s regime was behind.

Kim Jong Nam, who lived in exile in Macau, had criticized his family’s dynastic rule and his brother had issued a standing order for his execution, according to some South Korean lawmakers.

 

IN A PONYTAIL AND BLACK SUITS

The smartly dressed Kim Yo Jong, her hair usually pulled back in a ponytail and mostly seen in black suits and black-heeled shoes, made her first debut on state media in December 2011, seen standing tearfully next to Kim Jong Un at the funeral of their father.

Since then, Kim has made several appearances with her brother, giggling at concerts, riding a white horse, smiling as she receives flowers on his behalf at state functions.

Her youth and bubbly personality seen in state media are in stark contrast to the usually glum generals and aging party cadres who follow Kim Jong Un on official duties.

Having previously only occasionally appeared in the background, the young heiress has moved to the front and center of media photos more recently, assisting her brother at numerous high-profile state events.

At a massive military parade in April to mark the 105th birth anniversary of founding father Kim Il Sung, she was seen rushing out from behind pillars to bring paperwork to her brother as he prepared to give an address.

The same month, she stood alongside him during the unveiling ceremony of a construction project in Pyongyang.

In March 2016, she accompanied Kim Jong Un to a field guidance for nuclear scientists, where he claimed successful miniaturisation of nuclear warheads.

“Kim Yo Jong’s official inclusion in the 30-strong exclusive club of North Korea’s chief policy makers means her role within the regime will be expanded further,” Cheong Seong-chang, senior fellow at the Sejong Institute south of Seoul.

North Korean leader Kim Jong Un and his sister Kim Yo Jong attend an opening ceremony of a newly constructed residential complex in Ryomyong street in Pyongyang, North Korea

FILE PHOTO: North Korean leader Kim Jong Un and his sister Kim Yo Jong attend an opening ceremony of a newly constructed residential complex in Ryomyong street in Pyongyang, North Korea April 13, 2017. REUTERS/Damir Sagolj/File Photo

BEHIND THE VEIL

Apart from her age, little is known about Kim Yo Jong. She was publicly identified for the first time in February 2011 when a South Korean TV station caught her at a Eric Clapton concert in Singapore with her other brother, Kim Jong Chol.

The three, who all reportedly went to school in Switzerland, are full blood siblings, born to Kim Jong Il’s fourth partner, Ko Yong Hui.

Kim Jong Chol, the oldest of Kim Jong Il’s sons, does not involve himself in politics, leading a quiet life in Pyongyang where he plays guitar in a band, according to Thae Yong Ho, North Korea’s former deputy ambassador in London who defected to the South.

In 2014, Kim Yo Jong was made vice director of the Workers’ Party’s Propaganda and Agitation Department, which handles ideological messaging through the media, arts and culture.

The position led the U.S. Treasury Department to blacklist her along with six other North Korean officials in January for “severe human rights abuses” and censorship that concealed the regime’s “inhumane and oppressive behavior”.

Last year, South Korea’s former spy chief said Kim Yo Jong was seen “abusing power”, punishing propaganda department executives for “minor mistakes”.

In a North Korean state media photo in January 2015, she was spotted wearing a ring on her fourth finger during a visit to a child care center.

South Korean intelligence officials say Kim might have wed a schoolmate from the prestigious Kim Il Sung University, but there has been no confirmation of whether she is indeed married or to whom.

 

(Additional reporting by James Pearson and Haejin Choi in Seoul; Editing by Lincoln Feast)

 

Discord among Republicans already weighs on Trump’s tax plan

U.S. President Donald Trump meets with a bipartisan group of members of Congress, including U.S. Representative Josh Gottheimer (D-NJ) (L) and Representative Tom Reed (R-NY) (R), at the White House in Washington, U.S. September 13, 2017. REUTERS/Jonathan Ernst

By Amanda Becker and David Morgan

WASHINGTON (Reuters) – Disagreement among U.S. congressional Republicans is already swirling around a tax cut plan unveiled days ago by President Donald Trump, who has proposed repealing the tax on inheritances and eliminating a deduction for state and local tax payments.

The discord shows the difficulty of overhauling the complex U.S. tax code. This task has defied Washington since 1986, the last time a comprehensive rewrite was completed despite lobbyists who defend each tax break.

Trump has yet to score a major legislative win since taking office in January and is pushing hard for a tax code revamp. But his plan is meeting the same internal Republican tensions between moderates and conservatives that have sunk his efforts this year to repeal the Obamacare health law.

“There’s a lot of give and take,” Trump economic adviser Gary Cohn told Fox Business Network on Friday.

Members of the administration “have been meeting everyday with the tax writers trying to figure out where they need to end up to get the votes … we’re going to make sure the president gets what he asks for,” he added.

One obstacle is the projected fiscal impact of the plan, which would slash U.S. revenues and expand the federal deficit and the national debt, which now exceeds $20 trillion.

Republican lawmakers from high-tax states such as New York exited meetings this week with Kevin Brady, chairman of the House of Representatives’ tax-writing committee, saying there would be some sort of compromise on repealing the deduction for state and local tax payments.

Separately, some Republican senators were questioning the repeal of a 40 percent inheritance tax levied on estate assets worth more than $5.5 million, or $11 million for married couples. That tax affects only about 0.2 percent of estates, according to the Tax Policy Center, a Washington think tank.

“That is not a priority for me as we seek to craft this tax bill,” Senator Susan Collins, who has often been a key Republican vote, said in a statement on Thursday.

Republicans want to use a procedure known as budget reconciliation to pass eventual tax legislation, which allows passage with a simple majority in the 100-seat Senate. Republicans hold 52 Senate seats and can only afford to lose support from two senators, with Vice President Mike Pence able to cast a tie-breaking vote. Democrats will likely oppose the legislation.

One Republican fiscal hawk, Senator Bob Corker, has already said he cannot support tax legislation that adds to the annual federal deficit.

“We remain very bearish on any tax legislation passing this year – or next,” Cowen and Co analyst Chris Krueger said in a Friday research note.

The Trump plan, made public last week, calls for up to $6 trillion in tax cuts over 10 years. Without accompanying spending reductions, the budget would hugely expand the deficit, according to some estimates.

The administration contends tax cuts would spur so much economic growth that the resulting new revenues would help offset the cost.

In addition, Republicans are proposing “revenue raisers,” such as ending the deduction for payments of state and local tax, known as SALT. Doing that would raise about $1.3 trillion over a decade, the Tax Policy Center said.

Almost 30 percent of taxpayers currently deduct state and local taxes. In New Jersey, for example, 41 percent of tax filers, meaning individuals or married couples, claimed the deduction, which averaged $17,850, according to a Government Finance Officers Association analysis of Internal Revenue Service data.

Although the deduction disproportionately benefits people in high-tax states and localities, individuals in all states claim it. In Georgia, for example, 33 percent of tax filers claim an average deduction of $9,158, the report said.

Republican Representative Chris Collins of New York, a Trump ally, told reporters earlier this week that lawmakers from high-tax states, such as his own, were discussing “ways to level the playing field,” including capping the amount of the deduction or putting other limits on it.

“There are many districts with Republican members where state and local deduction is used by a large portion of the taxpayers,” said Frank Sammartino, a senior fellow at the Tax Policy Center. “So it’s not surprising that it’s not strictly a blue state/red state thing.”

Senate Democratic leader Chuck Schumer called the state and local tax deduction the “Achilles’ heel” of tax reform and said his party would oppose any move to repeal it. He dismissed compromise plans as unfeasible.

Brady said on Thursday that at this point there has been no change to the framework, but tax writers are “listening very carefully” to lawmakers’ concerns.

“It’s got to be frustrating when you’re in a state where local and state officials really put the screws to taxpayers,” Brady told reporters. “We are determined to provide tax relief to every American, regardless of where they live.”

(Additional reporting by Richard Cowan; Writing by Amanda Becker; Editing by Leslie Adler and Lisa Von Ahn)

Republicans seek to hasten tax reform with budget action

The U.S. flag flies in front of the Capitol Dome. REUTERS/Joshua Roberts

By David Morgan

WASHINGTON (Reuters) – The Republican-controlled U.S. Congress moved to hasten its overhaul of the U.S. tax code on Thursday by moving closer to agreement on a budget resolution, a procedural step that would help advance eventual tax legislation.

The House of Representatives voted 219-206 to adopt a fiscal 2018 spending blueprint containing a legislative tool that would let Republicans bypass Democrats and pass a tax bill by a simple majority vote in the Senate, where they hold 52 of 100 seats.

Separately, the Republican-led Senate Budget Committee was expected to approve its own budget resolution later on Thursday and send it to the full Senate for a vote, likely in two weeks.

President Donald Trump and top Republicans in Congress are determined to enact tax legislation before January. House Republicans could unveil tax legislation by the end of October.

“We are closer than ever to finishing what we have started for the American people,” said House tax committee Chairman Kevin Brady, whose panel is crafting an initial tax bill.

But the Republican plan to slash taxes by up to $6 trillion for corporations, small businesses and individuals has run into difficulties since it was announced last week.

It has been assailed by Democrats as a strategy for benefiting the wealthiest Americans while hiking taxes on some middle class Americans and cutting spending on social programs including the Medicare and Medicaid healthcare programs.

Republican lawmakers are also pushing back on a proposal to help pay for tax cuts by eliminating popular tax deductions. Some Republican fiscal hawks have also warned they will not back a tax reform package that adds to the federal deficit.

The Trump tax plan would add about $2.4 trillion to the deficit over the next decade, said the nonpartisan Tax Policy Center, a Washington tax think tank, at a time when the national debt already exceeds $20 trillion.

“Where is all that money coming from?” Representative John Yarmuth, the top Democrat on the House Budget Committee, asked on the House floor. “If you’re listening to this and you’re not a millionaire, probably from you.”

In the Senate, Democrats sought to hamstring the Republican budget resolution with amendments that would prevent tax legislation from benefiting the wealthy, raising taxes on the middle class and adding to the deficit. Democrats also called for an end to reconciliation, the legislative procedure that would sideline them in a Senate vote.

Republicans also faced the danger of the sort of internal infighting that torpedoed their repeated attempts to repeal the Affordable Care Act, known as Obamacare.

Eighteen House Republicans joined 188 Democrats to vote against the budget resolution, leaving the measure to pass by only one vote more than the minimum necessary.

The vote also set up a potential clash between House and Senate Republicans.

The House resolution requires tax reform to be revenue neutral, meaning that it would not lose revenues and add to the deficit. The Senate plan allows tax legislation to add $1.5 trillion to the deficit over a decade before raising enough revenues to cover the cost of tax cuts.

(Reporting by David Morgan; additional reporting by Amanda Becker; editing by Kevin Drawbaugh and Nick Zieminski)

U.S. lawmakers want to restrict internet surveillance on Americans

U.S. lawmakers want to restrict internet surveillance on Americans

By Dustin Volz

(Reuters) – A bipartisan group of U.S. lawmakers unveiled legislation on Wednesday that would overhaul aspects of the National Security Agency’s warrantless internet surveillance program in an effort to install additional privacy protections.

The bill, which will be formally introduced as soon as Thursday, is likely to revive debate in Washington over the balance between security and privacy, amid concerns among some lawmakers in both parties that the U.S. government may be too eager to spy on its own citizens.

The legislation, written by the House of Representatives Judiciary Committee, is seen by civil liberties groups as the best chance in Congress to reform the law, known as Section 702 of the Foreign Intelligence Surveillance Act, before its expiration on Dec. 31.

Senior U.S. intelligence officials consider Section 702 to be among the most vital tools they have to thwart threats to national security and American allies.

It allows U.S. intelligence agencies to eavesdrop on and store vast amounts of digital communications from foreign suspects living outside the United States.

But the program, classified details of which were exposed in 2013 by former NSA contractor Edward Snowden, also incidentally scoops up communications of Americans, including if they communicate with a foreign target living overseas. Those communications can then be subject to searches without a warrant by the Federal Bureau of Investigation.

A discussion draft of the legislation, a copy of which was seen by Reuters, partially restricts the FBI’s ability to access American data collected under Section 702 by requiring the agency to obtain a warrant when seeking evidence of a crime.

That limit would not apply, however, to requests of data that involve counterterrorism or counter-espionage.

The narrower restriction on what some have called a “backdoor search loophole” has disappointed some civil liberties groups. Several organizations sent a letter this week saying they would not support legislation that did not require a warrant for all queries of American data collected under Section 702.

The legislation would also renew the program for six years and codify the National Security Agency’s decision earlier this year to halt the collection of communications that merely mentioned a foreign intelligence target. But that codification would end in six years as well, meaning NSA could potentially resume the activity in 2023.

The spy agency has said it lost some operational capability by ending so-called “about” collection due to privacy compliance issues and has lobbied against a law that would make its termination permanent.

Republican senators introduced a bill earlier this year to renew Section 702 without changes and make it permanent, a position backed by the White House and intelligence agencies.

But that effort is expected to face major resistance in the House, where an influential conservative bloc of Republicans earlier this year said it opposed renewal unless major changes were made, reflecting disagreement within the majority party.

Separately, Senators John Cornyn, the No. 2 Republican in the chamber, and Democratic Senator Dianne Feinstein are working on Section 702 legislation that may also be introduced this week and include fewer reforms.

Democratic Senator Ron Wyden and Republican Senator Rand Paul are also planning to introduce a bill that would require a warrant for any query of Section 702 involving data belonging to an American.

(Reporting by Dustin Volz; Editing by Peter Cooney and Lisa Shumaker)

Tillerson says he never considered resigning

U.S. Secretary of State Rex Tillerson makes a statement to the media that he is not going to resign, at the State Department in Washington, U.S., October 4, 2017. REUTERS/Yuri Gripas

By Doina Chiacu and Yara Bayoumy

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson said on Wednesday he had never considered resigning and that he was committed to Donald Trump’s agenda but declined to directly address whether he had referred to the president as a “moron” as NBC News has reported.

The top U.S. diplomat, whose tenure has been dogged with rumors about unhappiness with Trump’s policies and rhetoric, said he was committed to Trump’s agenda as much today as he was when he first accepted the offer to serve as secretary of state.

Tillerson spoke after NBC reported that Vice President Mike Pence and other top officials had intervened to persuade him not to resign this summer as tensions rose between Trump and Tillerson.

“The vice president has never had to persuade me to remain as secretary of state because I have never considered leaving this post,” Tillerson said in a hastily prepared news conference at the State Department.

“My commitment to the success of our president and our country is as strong as it was the day I accepted his offer to serve as secretary of state,” Tillerson said.

In a session with Trump’s national security team and Cabinet officials at the Pentagon, Tillerson openly criticized the president and referred to him as a “moron,” NBC reported, citing three officials familiar with the incident.

Tillerson, who said he had not spoken to Trump on Wednesday, sidestepped the issue when taking questions after his statement:

“I’m not going to deal with petty stuff like that,” he said, adding, “I’m not from this place (Washington), but the places I come from we don’t deal with that kind of petty nonsense.”

Tillerson, the former CEO of Exxon and former president of the Boy Scouts, also said of Trump: “He’s smart. He demands results.”

Trump appeared to undercut Tillerson over the weekend when the president tweeted that he told him that he was “wasting his time” trying to negotiate with North Korean leader Kim Jong Un over Pyongyang’s nuclear and missile programs.

Tillerson offered a vigorous defense of both the U.S. president and his foreign policy even though the White House and State Department have at times appeared to differ on policy.

“President Trump’s foreign policy goals break the mold of what people traditionally think is achievable on behalf of our country,” Tillerson said.

TRUMP CONFIDENT IN TILLERSON

The White House said Trump has confidence in Tillerson.

“As we’ve said many times before, if the president doesn’t have confidence in somebody, that person will not remain in that position,” White House spokeswoman Sarah Sanders told reporters on Air Force One.

Pence, in a statement, said he never discussed with Tillerson the prospect of the secretary of state’s resignation.

In a tweet, Trump called on NBC to apologize for its story.

NBC News anchor Hallie Jackson said on air after Trump’s tweets: “NBC will not be issuing an apology to America as the president is calling for because again … the secretary did not refute directly some of the key points” in the story.

Several NBC journalists who reported the story also stood by their piece, saying on MSNBC that their reporting was true.

Defense Secretary Jim Mattis has played down any tensions between Trump and Tillerson over their apparent split, most recently over North Korea.

Tillerson’s insistence that he completely supports Trump’s agenda runs counter to what some administration officials have privately described as him chafing against some of the president’s pronouncements and off-the-cuff decisions, sometimes contrary to advice from senior advisers.

“… this was a stunning and unprecedented statement by a secretary of state in response to a news report about his comments about the president,” said Aaron David Miller, a former Middle East negotiator for both Republican and Democratic administrations and now an analyst at the Wilson Center think tank in Washington.

One U.S. official said the view of many within the administration was that despite Tillerson’s denial of having contemplated resignation, “it’s only a matter of time” before he does consider it.

The official, speaking on condition of anonymity, said there was no reason to believe that Trump would give up his habit of publicly contradicting Tillerson and that each time speculation on his future would resurface.

Tillerson has often found himself at odds with the president on a range of issues, according to current and former U.S. officials and media reports.

He has taken a more hawkish view on Russia and tried to mediate a dispute among key U.S. Mideast allies after four Arab nations boycotted Qatar over its alleged extremist ties.

Tillerson also appeared to distance himself from Trump’s response to the violence in Charlottesville, Virginia this summer, saying at the time “the president speaks for himself” when asked about Trump’s values.

Senator Bob Corker, a Tennessee Republican, said Tillerson was working under very difficult circumstances because there are a number of people in the administration who are undermining his authority by trying to act as secretary of state on a daily basis. He declined to name names.

Corker, chairman of the Senate Foreign Relations committee, said he had never heard Tillerson make the kind of comment of calling someone a moron.

Asked whether he supported Tillerson, Corker said:

“As a team, Tillerson, Mattis and (White House Chief of Staff John) Kelly help separate us from chaos, so I absolutely support ‘em. Absolutely.”

Tillerson was confirmed by only 56-43 at his Senate confirmation hearing in January, an unusually low confirmation for a secretary of state.

Many members of Congress, including Republicans, strongly object to Tillerson’s plans to slash the State Department and foreign aid budgets.

(Additional reporting by Susan Heavey, Matt Spetalnick, Mohammad Zargham, Patricia Zengerle, Tim Ahmann, Steve Holland, Jeff Mason and Susan Cornwell in Washington; Writing by Yara Bayoumy; Editing by Jeffrey Benkoe and James Dalgleish)