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Sinema blows up Dems’ plans to tax high earners, corporations

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Democrats have a Kyrsten Sinema problem when it comes to raising taxes.

As they seek to finalize President Joe Biden’s social spending plan by the end of the week, Sinema (D-Ariz.) remains opposed to one of the party’s chief goals of raising tax rates on high-income earners and corporations, a long-sought objective since former President Donald Trump signed his 2017 tax cut law.

Now, party leaders are working behind the scenes to target the wealthy and corporate America without crossing what increasingly appears like a red line to Sinema, according to Democratic lawmakers and aides following the bill.

Though Sen. Joe Manchin (D-W.Va.) has advocated raising rates on high-income earners, corporations and capital gains, Sinema has landed to the right of Manchin on tax policy. And Democrats need to choose, quickly, to keep trying to convince Sinema or to craft workarounds that she can accept.

“That’s not worked out in our caucus,” said Sen. Ben Cardin (D-Md.). “There is strong support in our caucus to raise the corporate rate. And it depends how you do it for high earners … I don’t think she’s opposed to some of the issues for high-income [taxpayers].”

The decision on taxes represents a fork in the road on one of Democrats’ primary political goals. Many lawmakers who now make up the front lines of the party’s thin majorities campaigned on raising the rates from where Trump left them, at 37 percent for high-earners and 21 percent for corporations.

And many Democrats have grown frustrated with how much control Sinema is exerting, and the secretive way she wields it.

“This is a guessing game with Senator Sinema. Yeah, we’re all supposed to be on the same team. And that means transparency, communication and collaboration. Without it, it makes this significantly more challenging,” said Rep. Veronica Escobar (D-Texas). “I don’t know what the red lines are for one U.S. senator who has an amazing amount of power.”

Sinema’s office declined to comment. Sinema has said she’s shared detailed proposals with the White House even as she stays mum publicly on her positions.

Democrats would raise nearly $600 billion in revenues for their social spending plan by lifting the corporate rate to 25 percent and the top income tax bracket to 39.6 percent, as Manchin has proposed. They could make up for that lost funding elsewhere if they booted those cash sources, but that would cause both a policy headache and a political one: Many liberals would view acceding to Sinema’s demands as a major climbdown from the party’s long-standing position.

Sen. Mark Kelly (D-Ariz.), who is up for reelection next year, said in an interview he was relatively comfortable with raising those tax rates targeting corporations and high-income Americans. Sinema is up for reelection in 2024 in their home state.

“Some corporations have paid little to no income tax for a long time now, and I was not in favor of the 2017 tax cuts that gave a windfall to the wealthiest Americans and biggest corporations,” Kelly said in an interview.

For Sinema, it’s not just tax rates that could change Democrats’ money-raising plans. She’s also, as of now, not directly on board with Democrats’ plan to reduce pharmaceutical prices through Medicare drug negotiation, which would bring in additional money for the party’s spending plans.

“On PhRMA and on revenue, I’m struggling to really grasp what her endgame is. But she insists: ‘I will get there, I’m not going to tank this. I will work out something,’” said one Democratic senator, addressing Sinema on condition of anonymity. “She has insisted repeatedly that she will come to an agreement that is going to work, that is within the rough scale currently under discussion with the president.”

Senators and aides said their goal is to at least have a workaround for Sinema’s tax position when they present a framework for the bigger bill as soon as this week. They are likely to leave the specifics of revenue-raising undecided until later this year, once they’ve mapped out the climate, education, child care and paid leave policies they want in the bill, according to an aide familiar with party strategy. But they need the broad contours of what Sinema will accept to move forward in the interim.

Among the options under discussion to satisfy Sinema include targeting hundreds of billionaires who don’t pay taxes on their unrealized gains — a move that’s known as “mark to market.” Party leaders are also discussing taxing stock buybacks, installing a minimum corporate tax and focusing more on international corporate tax reform. They also believe they can raise significant revenue through increased IRS enforcement and closing tax loopholes.

Many Democrats would rather not dance around their goals by enacting more complicated proposals than those Sinema has rejected. But they may have no other choice: Democrats said she’s the primary, and in some cases sole, impediment to raising the rates they’ve been campaigning against for years.

“There’s a lot of different policy ways to raise revenue on high-income people. And that’s what we’re discussing with her,” said a second Democratic senator who talked Sinema on condition of anonymity. For corporations, this senator added, “it’s similar.”

The Senate’s effort to work around Sinema’s opposition isn’t sitting well with House Democrats. Members of the panel’s tax-writing committee left a lunch meeting Wednesday fuming after being informed that many priorities they fought for would likely be cut from the final spending deal, including the push to raise tax rates on corporations and the wealthy.

“If we talk about people paying their fair share of taxes — which they’re whittling down in order to get two people’s vote — I don’t blame Manchin or Kyrsten. I blame Schumer,” Rep. Bill Pascrell (D-N.J.) yelled in anger after the Ways and Means lunch.

Schumer did emphasize on Thursday morning that he aims to “cut taxes for working and middle-class Americans while asking the wealthy to pay their fair share.” Pascrell said Schumer has left many of the tough conversations to the last minute despite knowing for months about the red lines both Sinema and Manchin were communicating behind the scenes, on both spending and revenue.

“He’s the leader over there. Pelosi has carried the total burden and the other guy has picked up the pieces. That’s it,” Pascrell added.

Senior House Democrats said it’s unclear if a bill that doesn’t raise tax rates could even win the votes to clear the chamber, where Speaker Nancy Pelosi can only lose three members on any given bill. The issue makes a handful of the most vulnerable House Democrats queasy but is otherwise widely embraced by the caucus, especially influential progressives who say “taxing the rich” should be a no-brainer for the party.

House Ways and Means Committee Chair Richard Neal (D-Mass.) said Wednesday afternoon he would continue to fight for the “reasonable policy” despite Sinema’s entrenched opposition.

“I know it falls on deaf ears in some instances [but] the process that we undertook here was to do a markup. We didn’t have a new tax plan every half hour — we laid out a plan that was fully paid for, and we set our priorities.”

Bernie Becker, Nicholas Wu and Sarah Ferris contributed to this report.



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Russian Troops Dead After Getting ‘Treated’ to Poisoned Meals, Ukraine Officials Say

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Main Intelligence Directorate of Ukraine’s Defense Ministry / Facebook

In a show of hospitality, Ukrainian citizens in the besieged region of Kharkiv have reportedly been “treating” Russian troops local delicacies—laced with poison.

At least two troops from the 3rd Motor Rifle Division of the Russian Federation died immediately after eating stuffed buns served by the residents of Izium, a town about 80 miles southeast of Kharkiv, the Main Intelligence Directorate of Ukraine wrote Saturday in an announcement posted to Facebook.

Another 28 Russians are being treated in intensive care from eating the contaminated treats. The condition of these poisoned invaders has yet to be confirmed.

According to the Intelligence Directorate, several hundred Russian soldiers have also suffered severe illnesses from drinking poisoned alcohol while occupying the region. Ukrainian officials said that the Russian military is “writing off these cases as so-called ‘non-combat losses.’”

Though Russian troops have reportedly retreated from the capital of Kyiv. The New York Times reports that insurgent forces are still fighting to gain control of Izium, despite the locals’ culinary efforts. Control of the eastern town would allow Russians to strategically secure access to the occupied Donbas region.

Read more at The Daily Beast.

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Massive ship called Ever Forward is stuck in Chesapeake Bay

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Despite two failed attempts to free it this week, a sister container ship to the Ever Given that got stuck in the Suez Canal last year has been lodged in the Chesapeake Bay for 21 days — and now cargo holders have to pay to help free it.

Why it matters: The Ever Forward (yes, bask in the irony) is the largest ship to get stuck in the Chesapeake Bay and it’s carrying 5,000 containers of … stuff.

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What’s happening: The ship’s owner — Evergreen Marine Corp. — has invoked a maritime law dubbed “General Average,” under which people whose belongings are on a ship must share in the cost of freeing it.

Zoom in: It’s unclear what’s in the thousands of containers aboard the Ever Forward, but at least one cargo holder — a Bloomberg journalist who recently moved from Hong Kong to New York — has been sharing her experience waiting on her furniture.

  • “The entire contents of our apartment, all of our furniture, lots of books, things of sentimental value are all in a container stuck in the Chesapeake Bay,” Tracy Alloway told NBC Washington.

  • The U.S. Coast Guard, which is handling Ever Forward’s PR, per the Port of Baltimore, told Axios that “general cargo” is on the ship and referred further questions to Evergreen.

Zoom out: The Ever Forward has been idling near Baltimore, en route to Norfolk, since a wrong turn leaving Baltimore on March 13 ran the boat aground in shallow water (24 feet of water — when it needs 42 to float, per NBC Washington.)

  • The Ever Forward has been stuck thrice as long as its sister ship sat marooned between the Mediterranean and Red seas last year.

  • The ship is not disrupting trade — or blocking passage out of Baltimore Harbor, William Doyle, director of the Port of Baltimore tweeted.

  • Tuesday and Wednesday were the first attempts to refloat the boat using tug boats.

  • A third attempt will be coming soon, “using two anchored pulling barges from the stern and five tugs,” Doyle wrote on Twitter.

The big picture: You can stay informed on the progress via istheshipstillstuck.com, a website that went viral last year during the Suez fiasco.

  • The boat has become a tourist attraction and Downs Park (there’s a $6 entry fee) in Pasadena, Maryland is apparently the best place to see it.

By the numbers: Comparing giant, stuck container ships.

  • The Ever Forward — currently lodged in Baltimore en route to Norfolk for 21 days and counting — 1,095 feet long, 117,340 gross tons. Ran aground due to a wrong turn in the Bay.

  • The Ever Given — stuck in the Suez Canal for 6 days – 1,312 feet long, weighing in at 224,000 gross tons. Ran aground due to a large wind gust.

🗞 This article is by Axios Richmond’s Karri Peifer! Subscribe to the Axios Richmond newsletter (launching soon).

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California has $600M in unclaimed can, bottle deposits

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SACRAMENTO, Calif. (AP) — California is sitting on a $600 million pile of unclaimed nickel and dime deposits on recyclable cans and bottles and now wants to give some of that back to consumers.

To get the state’s nearly 40 million residents to recycle more and send more deposits back to them, Gov. Gavin Newsom’s administration unveiled a plan Friday to temporarily double to a dime the refund for a 12-ounce (355 milliliters) bottle or can. California already pays 10 cents on containers over 24 ounces (709 milliliters), and that would temporarily double to 20 cents.

The move would make California among the highest-paying recycling programs in the country. Rachel Machi Wagoner, director of the California Department of Resources Recycling and Recovery, said the effort would help California again become the recycling leader it was 35 years ago when it started its cash refund program.

When someone in California purchases a regular-sized soda, a 5-cent charge is applied that can be recouped if the container is brought back for recycling. Under Newsom’s plan, the deposit charge would remain the same but the return amount would double. The goal is to raise the recycling rate for beverage containers from 70% to at least 80%.

Oregon and Michigan already offer 10-cent refunds and advocacy groups say that amount for each glass or plastic bottle or aluminum can has been enough for consumers to recycle at least nine of every 10 containers.

The advocacy group Consumer Watchdog’s President Jamie Court, a frequent critic of the recycling program, called the plan “a very positive step” and “a bold proposal to give people their money back.”

“That money isn’t doing anybody any good sitting in the bank,” Court said. “We need a complete structural fix, but this is a good interim step.”

California’s proposal feeds the latest national effort to boost recycling as beverage distributors face increased pressure to include higher percentages of recycled material in their containers, National Stewardship Action Council executive director Heidi Sanborn said.

Just 10 of the 50 states have deposit programs now, but many are considering them — potentially creating a confusing patchwork and beverage labels crowded with different states’ deposit amounts, something she said distributors want to avoid.

California’s doubling of refunds would be temporary — a duration for the change has yet to be decided — and is expected to cost $100 million. If approved by the Legislature the refund increase would take effect sometime during the next fiscal year that starts July 1.

It’s uncertain if any boost in recycling would last once the higher price ends, Sanborn acknowledged, but she hopes instead California will decide to make the increase permanent. She’s also hopeful pressure from states will spur attempts by U.S. Rep. Alan Lowenthal of California and U.S. Senator Jeff Merkley of Oregon to craft a national bottle bill.

Newsom’s plan also attempts to ease a bottleneck that began years ago as more neighborhood recycling centers closed and Consumer Watchdog said many grocery stores also were refusing to take back empties in-store as required.

To increase access, Newsom’s administration proposes spending $100 million on grants to add about 2,000 automated recycling machines, also known as reverse vending machines, at high schools, colleges and retailers. Consumers dump their empty containers into the machines, which issue a refund.

Another $55 million would go for state-funded mobile recycling programs in rural areas and other places with few recycling options.

Consumers are very upset that “they are unable to return their bottles and cans and get their money back as promised,” said Sanborn, who also heads California’s Statewide Commission on Recycling Markets & Curbside Recycling.

Sanborn blamed the closure of many California recycling centers on the state’s failure to quickly adjust its complicated payment formula to meet changing market conditions.

Many of California’s recyclables go to China, which toughened standards in 2017 on accepting contaminated material, including plastics. The move “totally slammed the recycling industry” nationwide, said Kate O’Neill, a University of California, Berkeley, environmental science professor and author of the 2019 book “Waste.”

The U.S. market is recovering now with the addition of domestic recycling facilities, but there still is a problem matching supply to demand, O’Neill said.

Recycling officials had expected beverage consumption to drop during the pandemic, as it does during most economic downturns, Wagoner said. Instead, container sales in California increased by 2.5 billion over three years, to 27 billion last fiscal year, meaning a record number of deposits flowing into the state’s recycling fund.

The number of refundable containers recycled in California meanwhile hit a record high of more than 18.8 billion in 2021 — but that still left plenty of money on the table.

Repeated attempts to improve the state’s recycling system have struggled in the Legislature, even as California tries to boost its recycling rates, minimize food waste, and work toward a circular-use economy.

Wagoner said Friday’s proposal is an interim step while the administration continues talks with lawmakers over permanent fixes.

Democratic state Sen. Bob Wieckowski said he tried a bill last year with proposals similar to what the administration is now suggesting, “and they didn’t want to hear about it.” He anticipates people now hoarding their recyclables until the double redemption period, then facing long lines once it begins.

His proposal this year would put more responsibility on producers to recycle their containers.

“It has a little gimmicky nature to it,” Wieckowski said of the state’s plan. “We have 45 Band-Aids on this program, and sometime you have to get out of the Band-Aid business.”



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Fort Lauderdale police arrest Black hotel clerk who called for help

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New body camera video released by the Fort Lauderdale Police Department shows officers pushing a Black hotel employee before arresting him. The employee, Raymond Rachal, was the person to call the police after an incident in the lobby where Rachal claims a man was yelling racial slurs at him.



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Police investigating ‘appalling’ incident recorded inside a Wilmington High School bathroom

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Police and school officials in Wilmington are investigating a “serious and disturbing physical altercation” inside a boys’ bathroom this week that left the superintendent of schools “appalled,” not only because of the incident, but because some students recorded video and posted it online.

The video is difficult to watch.

In a letter to the school community dated March 30th, Superintendent Glenn Brand said the incident happened on Tuesday and investigators are working to identify the students involved.

The recording sent to Boston 25 indicates a student was picked up inside the bathroom and had his head forced into a toilet inside a stall in the bathroom. The video below has been blurred due to the ages of those involved.

“I am truly appalled by the actions of these students which are unacceptable and do not represent the core values of this educational community,” said Supt. Brand. ”It is my expectation that each and every one of our students has the right to attend a school that is safe and supportive. While I recognize that the vast number of our students consistently make appropriate choices to support such an environment, we will have zero tolerance for those that do not.”

“The Wilmington Public School prioritizes, above all else, the safety, well-being and respect of all of our students and staff,” said Supt. Brand.

“It is therefore with tremendous disappointment that I write to inform you of a serious and disturbing physical altercation that occurred in one of the boys’ bathrooms (Tuesday),” said Brand. “Not only is the incident itself concerning, but also that some of our students recorded the altercation and posted this online.”

“All students who are found culpable will be held fully accountable and appropriate disciplinary action will be taken as well as the removal of appropriate privileges that are afforded to those students,” said Supt. Brand. “I assure you that we will pursue relevant legal actions should such be deemed warranted following the investigation.”

The superintendent also alluded to other recent trouble at the school.

“This incident comes in the wake of a number of other concerns recently involving troubling student behavior. Everyone has an obligation to help foster the type of school environments that our students deserve, including our staff, families and most importantly, our students themselves,” said Brand.

A statement posted to the school’s website on Friday by the Wilmington High School Student Class Officers, called the incident “horrific.”

“If a picture is worth a thousand words then a video is worth a million, yet many of us were left speechless by the thoughtless actions of others that transpired earlier this week in one of our school bathrooms,” according to the statement. “These horrific actions perpetrated by an embarrassing group of individuals do not represent who we are as a student body. We are honor roll students, college bound-career focused seniors, varsity athletes, robotic champions and so much more. Our image should not be clouded by these individuals.”

Boston 25 spoke with Wilmington Police Chief Joe Desmond about the incident.

“Obviously there were a lot of kids in the bathroom and this young man was taken and physically dragged into the bathroom,” said Desmond.

The chief says the students pick the student up and lower him head down into the toilet. “It clearly looks like an assault as far as where I come from,” said Desmond.

Police are also looking to see if this incident rises to the level of a hate crime or civil rights violation. Chief Desmond says they have at least three recordings and they are working with the school to identify everyone involved.

“Kids should be able to go to school and feel safe and feel supported and not worried about being picked on or God forbid this incident is horrible. That poor kid” it’s terrible,” said concerned parent Roberta Biscan.

The school superintendent is scheduling bystander training that will be mandatory for all students. According to police, the case is moving quickly and charges are likely to be filed.

Watch for updates on Boston 25.

This is a developing story. Check back for updates as more information becomes available.

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Why this huge catfish was released by a fisherman who didn’t even bother to weigh it

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Ivan Garren from Cleveland, Tennessee caught a huge catfish Thursday while fishing in Wolftever Creek.

Garren, who used skipjack as bait, was fishing in a depth of about six feet when he hooked the monster.

He did not weigh or measure the fish but estimated it was about 38 pounds. He wanted to get the fish back in the water as soon as possible after taking a couple of pictures.

More: A 500-pound black bear made its home near a Tennessee college. Here’s how TWRA relocated it

Ivan Garren caught this big catfish in Wolftever Creek in Hamilton County.

“I release all big fish for other people to enjoy,” Garren said.

As big as the fish was, Garren said he has caught bigger.

Wolftever Creek is located in Hamilton County near Middle Valley, Tennessee. It is known for having a large population of catfish, largemouth and smallmouth bass and crappie.

Ivan Garren caught this big catfish in Wolftever Creek in Hamilton County.

Ivan Garren caught this big catfish in Wolftever Creek in Hamilton County.

Reach Mike Organ at 615-259-8021 or on Twitter @MikeOrganWriter.

This article originally appeared on Nashville Tennessean: Tennessee fisherman releases huge catfish without weighing



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The Judds reunite for CMT Music Awards performance

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NASHVILLE, Tenn. (AP) — The Judds, one of the most successful duos in country music in the 1980s, are reuniting to perform on the CMT Music Awards, their first major awards show performance together in more than two decades.

The mother-and-daughter duo of Naomi and Wynonna will perform their hit “Love Will Build a Bridge” on the awards show on April 11, airing on CBS and Paramount+, during an outdoor shoot in front of the Country Music Hall of Fame and Museum in Nashville, Tennessee.

It’s a fitting backdrop for the five-time Grammy winners, who will be inducted into the Country Music Hall of Fame in May.

“It feels both surreal and what a thrill it is. What a thrill to finally get her back on the stage because she’s been waiting for 20-plus years,” Wynonna told the AP of her mother, Naomi. “As a daughter and as an artist, it’s a win-win.”

Originally from Kentucky, Naomi was working as a nurse in the Nashville area when she and Wynonna started singing together professionally. Their unique harmonies, together with elements of acoustic music, bluegrass and blues, made them stand out in the genre at the time.

The Judds won nine Country Music Association Awards and seven from the Academy of Country Music and had more than a dozen No. 1 hits, including “Mama, He’s Crazy” and “Grandpa (Tell Me ’bout the Good Old Days).”

In 1990, Naomi Judd announced her retirement from performing due to chronic hepatitis. Wynonna has continued her solo career and they have occasionally reunited for special performances.

“To have all the incredible opportunities that I have had, being reminded of all that, just makes me very humbled and I just want to bask in the moment,” Naomi Judd told the AP.

This is also their first ever performance together at the CMT Music Awards. Country star Kacey Musgraves will introduce the pair prior to the performance.

“Music is the bridge between mom and me, and it it bonds us together. Even in the not easy times,” said Wynonna Judd. “We show up and we sing because that’s what love is about, right? So what a beautiful celebration.”

Hosted by country singer Kelsea Ballerini and actor Anthony Mackie, the fan-voted awards show will also feature performances by Ballerini, Kane Brown, Miranda Lambert, Luke Combs, Maren Morris, Cody Johnson, Little Big Town, Keith Urban, Carly Pearce and more.



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