The Jim Bakker Show

Congress secures tax deal, Trump backs 21-percent corporate rate

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – Congressional Republicans have reached a deal on final tax legislation, the U.S. Senate’s top Republican tax writer said on Wednesday, with President Donald Trump saying he would back a sharply lowered corporate tax rate of 21 percent.

The 21 percent rate would be slightly above a proposed 20-percent rate that Trump supported earlier, but still far below the present headline rate of 35 percent, a deep tax cut that U.S. corporations have been seeking for years.

As they finalized the biggest tax overhaul in 30 years, Republicans for weeks wavered on slashing the top income tax rate for the rich, but finally agreed to do it, despite Democrats’ criticism that the bill favors the wealthy and corporations, while offering little to the middle class.

The emerging congressional agreement includes a 21-percent corporate rate; a top individual income tax rate of 37 percent, down from the current 39.6 percent level; and a $10,000 cap on deducting state and local property or income tax payments, said sources familiar with the negotiations.

Although the president said a “final number” on the corporate rate had not been set, the Senate and House of Representatives were hurtling toward an agreement that would clear the way for final votes in both chambers next week.

“I think we’ve got a pretty good deal,” Senate Finance Committee Chairman Orrin Hatch told reporters as he prepared to join other Republicans for lunch with Trump.

Hatch’s remarks appeared to reinforce expectations that a final vote could begin in the Senate as early as Monday. Further details of the agreed legislation were not yet available.

Republicans have been urgently trying to finalize details of their bill without increasing its estimated impact on the federal deficit. As drafted, it is expected to add as much as $1.5 trillion to the $20-trillion national debt over 10 years.

At a tax event held by Democrats, Moody’s Analytics Chief Economist Mark Zandi said the Republican bill, if enacted, would cause interest rates to rise, meaning the benefits of a lower corporate tax rate would be “completely washed out.”

Stock markets have rallied for months in anticipation of lower taxes for businesses. The benchmark Dow Jones Industrial Average Index <.DJI> was up 0.5 percent at 24,628 in afternoon trading.

“The market is trading at all-time highs, its run-up has been really in anticipation of tax reform,” said Ken Polcari, NYSE floor division director at O’Neil Securities in New York.

CORKER UNDECIDED

Republican Senator Bob Corker, a fiscal hawk, on Wednesday said he was undecided on whether to support the bill. He told reporters: “My deficit concerns have not been alleviated.”

Asked at the lunch by reporters if he would sign a bill with a 21-percent corporate tax rate, Trump said: “I would … It’s very important for the country to get a vote next week.”

With their defeat on Tuesday in an Alabama special Senate election, Republicans were under increased pressure to complete their tax overhaul before Christmas and before a new Democratic Alabama senator can be formally seated in the Senate.

Democrat Doug Jones’ capture of the Alabama Senate seat came hours ahead of the final tax agreement being hammered out.

When Jones, who upset Republican Roy Moore in the deeply conservative Southern state, arrives in Washington, the Republicans’ already slim Senate majority will narrow to 51-49, further complicating Trump’s legislative agenda.

Fast action by Republicans on taxes would prevent Jones from upsetting the expected vote tallies on this bill since he will not likely be seated until late December or early January.

Senate Democratic Leader Chuck Schumer called on Republicans to delay a vote on overhauling the tax code for the first time in 30 years until Jones can be seated, but that was unlikely.

A one-percentage-point change in the corporate rate would give tax writers about $100 billion of revenues over a decade that could be used in many ways. One could be to repeal a federal tax on inheritances paid by wealthy Americans. Another might be to end the corporate alternative minimum tax.

Some Republicans also wanted a slightly higher corporate rate to pay for a higher child tax credit. Lawmakers had also debated capping a popular individual deduction for mortgage interest at $750,000 in home loan value, instead of $1 million.

If Trump can sign a tax bill by the end of the year, it would be the first major legislative victory for him and the Republicans since they took control of the White House and both chambers of Congress in January.

After his lunch with Republican lawmakers, Trump will speak on tax legislation alongside five middle class families who would benefit, senior administration officials said.

He wants to try to counter claims that the Republican tax plan would largely benefit corporations and the wealthy.

The nonpartisan Joint Committee on Taxation and Congressional Budget Office have both said wealthier taxpayers would gain disproportionately from the Republican proposals.

(Additional reporting by Jeff Mason, Steve Holland, Susan Cornwell, Richard Cowan, Makini Brice and Doina Chiacu; Editing by Kevin Drawbaugh and James Dalgleish)

Trump to make final tax push as Republican negotiators near deal

By Amanda Becker and Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump will make a final push on Wednesday to shepherd a Republican tax overhaul across the finish line, hosting congressional negotiators for lunch before a speech in which he will make closing arguments for the legislation.

Republican tax writers from the Senate and House of Representatives worked into Tuesday evening to reconcile differences between the separate plans passed by each chamber, as important details, including a final corporate tax rate, remained in flux.

Republican leaders are aiming to vote on the sweeping legislation before Christmas. That timetable became more crucial after Tuesday’s upset win by Democrat Doug Jones over Republican Roy Moore in Alabama’s special U.S. Senate election.

Jones’ victory trims the Republicans’ already narrow Senate majority to 51-49, which could make it more difficult for them to push through legislation.

Senate Democratic Leader Chuck Schumer on Wednesday will call on Republicans to delay the tax vote until the newest senator can be seated, likely in early January.

Republicans were still trying to finalize important details without increasing the deficit impact of legislation, which could add as much as $1.5 trillion to the national debt over the next decade, according to independent estimates.

Both House and Senate bills proposed slashing the corporate rate to 20 percent from 35 percent, but negotiators were discussing on Tuesday whether to raise that rate to 21 percent in the final bill, lawmakers said.

Tax writers were also still determining a top rate for individual taxpayers and weighing how to best scale back popular individual deductions for mortgage interest and local tax payments that the Senate and House bills treated differently.

“We’re still talking,” No. 2 Senate Republican John Cornyn said late Tuesday of a possible 21 percent corporate rate.

Trump is seeking to sign a tax bill by the end of the year to achieve Republicans’ first major legislative victory since they took control of both chambers of Congress and the White House in January.

After hosting Republican lawmakers for lunch, Trump will deliver his speech on tax legislation alongside five middle class families who would benefit, senior administration officials said.

He was expected to counter claims the Republican tax plan would largely benefit corporations and the wealthy by highlighting how it would also cut rates for lower- and middle-income taxpayers, who could see additional benefits, such as higher wages, result from the corporate rate cut, the officials said.

Independent government analyses by the nonpartisan Joint Committee on Taxation, which assists congressional tax writers, and the Congressional Budget Office, which examines the budget impact of legislation, both concluded that wealthier taxpayers would disproportionately benefit from the Republican proposals.

When asked who stands to benefit most from Republican tax legislation, more than half of American adults selected either the wealthy or large U.S. corporations, according to a Reuters/Ipsos poll released on Monday.

(Additional reporting by Susan Cornwell, Richard Cowan, Doina Chiacu; Editing by Cynthia Osterman and Steve Orlofsky)

FBI officials said Clinton ‘has to win’ race to White House: NYT

(Reuters) – Senior FBI officials who helped probe Donald Trump’s 2016 presidential campaign told a colleague that Democratic Presidential candidate Hillary Clinton had to win the race to the White House, the New York Times reported on Tuesday.

Peter Strzok, a senior FBI agent, said Clinton “just has to win” in a text sent to FBI lawyer Lisa Page, the Times reported.

The messages showed concern from Strzok and Page that a Trump presidency could politicize the FBI, the report said, citing texts turned over to Congress and obtained by the newspaper. http://nyti.ms/2AOHylP

Justice Department Inspector General Michael Horowitz is investigating the texts in a probe into FBI’s handling of its investigation into Clinton’s use of a private email server for official correspondence when she was Secretary of State under former President Barack Obama, the report added.

Strzok was removed from working on the Russia probe after media reports earlier this month suggested he had exchanged text messages that disparaged Trump and supported Clinton.

Strzok was involved in both the Clinton email and Russia investigations.

Republicans, including Trump, have in recent weeks ramped up their attacks on the FBI and questioned its integrity.

Special Counsel Robert Mueller and congressional committees are investigating possible links between Donald Trump’s campaign and Russia. Russia denies meddling in the 2016 U.S. elections.

The FBI, the Democratic National Committee and the White House did not respond to a request for comment outside regular business hours.

Reuters was unable to contact Peter Strzok and Lisa Page for comment.

(Reporting by Kanishka Singh in Bengaluru; Editing by Sunil Nair)

Democrat Jones wins U.S. Senate seat in Alabama in blow to Trump

By Rich McKay

BIRMINGHAM, Ala. (Reuters) – Democrat Doug Jones won a bitter fight for a U.S. Senate seat in deeply conservative Alabama on Tuesday, dealing a political blow to President Donald Trump in a race defined by sexual misconduct accusations against Republican candidate Roy Moore.

The stunning upset makes Jones the first Democrat elected to the U.S. Senate from Alabama in a quarter-century and will trim the Republicans’ already narrow Senate majority to 51-49, opening the door for Democrats to possibly retake the chamber in next year’s congressional elections.

Jones, who cast himself on the campaign trail as the candidate who could reach across the aisle and get things done in Washington, is expected to take office early in January, after the results are certified.

His election was not expected to affect pending votes in Congress on funding the government or overhauling the U.S. tax code, as Republican congressional leaders have vowed action on those bills before Christmas.

With 99 percent of the vote counted, Jones led by 1.5 percentage points over Moore, who refused to concede.

Alabama Secretary of State John Merrill said it was “highly unlikely” the outcome would change. “The people of Alabama have spoken,” he told CNN.

The ugly campaign drew national attention and split the Republican Party following accusations by several women that Moore sexually assaulted or pursued them when they were teens and he was in his 30s.

Moore, 70, a Christian conservative twice removed from the state Supreme Court in Alabama for ignoring federal law, denied the allegations and said he did not know any of the women involved.

Trump endorsed Moore even as other party leaders in Washington walked away. Jones, 63, a former federal prosecutor, portrayed the campaign as a referendum on decency and promised the state’s voters he would not embarrass them in Washington.

“I have always believed that the people of Alabama have more in common than divides us,” Jones told cheering supporters at his Birmingham victory party.

Trump, who congratulated Jones in a tweet late Tuesday night, on Wednesday tried to cast the win in a different light.

The president had joined establishment Republicans in the primary by backing Luther Strange, who filled the seat when Jeff Sessions left to serve as Trump’s attorney general. After Moore won the Republican nomination, Trump wholeheartedly endorsed Moore.

“The reason I originally endorsed Luther Strange (and his numbers went up mightily), is that I said Roy Moore will not be able to win the General Election. I was right! Roy worked hard but the deck was stacked against him!” Trump said on Twitter.

Network exit polls, however, showed Trump was not a factor in the decision for about half of Alabama voters.

“It had zero to do with Donald Trump,” Republican U.S. Representative Bradley Byrne of Alabama told MSNBC on Wednesday. The race was “a purely weird, unique election” not a harbinger of the 2018 midterm elections.

But U.S. Senator Chris Van Hollen, who heads the Democratic Senatorial Campaign Committee, called the victory in one of the most conservative states in the nation “a political earthquake.”

“You see voters who are fed up, and they want to send the message that they don’t like Trumpism,” Van Hollen said on MSNBC on Wednesday. “This was a big rejection of the ugly, divisive politics that Donald Trump has brought to the country.”

Former President Barack Obama, a Democrat, recorded robo-calls for Jones to help turn out African-Americans, who, according to network exit polls, constituted about 30 percent of those voting on Tuesday.

As a U.S. attorney Jones helped win the convictions in 2001 and 2002 of members of the Ku Klux Klan for the 1963 bombing of a Birmingham church that killed four little girls.

The sexual misconduct allegations against Moore came at a time when many powerful men, including Trump, have faced similar accusations.

John Laine, 65, a retired book editor from Birmingham who backed Jones, said he thought many Republicans crossed over and voted for a Democrat for the first time in their lives.

“The reason is that people just couldn’t stomach any more of Roy Moore,” he said.

(Additional reporting by Andy Sullivan in Montgomery, Ala.; Writing by John Whitesides; Editing by Richard Balmforth and Jeffrey Benkoe)

Voters head to polls in Alabama race with high stakes for Trump

By Andy Sullivan

MONTGOMERY, Ala. (Reuters) – Voters in Alabama were headed to the polls on Tuesday in a hard-fought U.S. Senate race in which President Donald Trump has endorsed fellow Republican Roy Moore, whose campaign has been clouded by allegations of sexual misconduct toward teenagers.

Moore, 70, a former Alabama Supreme Court chief justice, is battling Democrat Doug Jones, 63, a former U.S. attorney who is hoping to pull off an upset victory in the deeply conservative Southern state.

Polls opened at 7 a.m. (1300 GMT) in the Alabama special election for the seat vacated by Republican Jeff Sessions, who became U.S. attorney general in the Trump administration.

The Alabama contest has divided the Republican Party on whether it is better to support Moore in order to maintain their slim majority in the U.S. Senate or shun him because of the sexual allegations.

Trump has strongly backed Moore but several other Republicans, including Senate Majority Leader Mitch McConnell, have distanced themselves from the candidate.

“Roy Moore will always vote with us. VOTE ROY MOORE!” Trump said in a Twitter post in which he criticized Jones as a potential “puppet” of the Democratic congressional leadership.

Moore has been accused by multiple women of pursuing them when they were teenagers and he was in his 30s, including one woman who said he tried to initiate sexual contact with her when she was 14. Moore has denied any misconduct. Reuters has not independently verified any of the accusations.

On the eve of Tuesday’s election, Moore was joined on the campaign trail by Steve Bannon, Trump’s former chief strategist and an executive at the right-wing Breitbart News site. Bannon framed the Alabama election as a showdown between establishment elites and populist power and excoriated Republicans who declined to support Moore.

“There’s a special place in hell for Republicans who should know better,” he said.

COURTING EVANGELICALS

Moore has made conservative Christian beliefs a centerpiece of his campaign and sought to energize evangelicals in Alabama. He has said homosexual activity should be illegal and has argued against removing segregationist language from the state constitution.

Moore told the rally on Monday: “I want to make America great again with President Trump. I want America great, but I want America good, and she can’t be good until we go back to God.”

Without mentioning Moore by name, Republican former Secretary of State Condoleezza Rice, an African-American who grew up in Alabama, issued a statement on Monday calling the special election “one of the most significant in Alabama’s history.”

She urged Alabama voters to “reject bigotry, sexism, and intolerance.”

A Fox News Poll conducted on Thursday and released on Monday put Jones ahead of Moore, with Jones potentially taking 50 percent of the vote and Moore 40 percent. Fox said 8 percent of voters were undecided and 2 percent supported another candidate.

An average of recent polls by the RealClearPolitics website showed Moore ahead by a slight margin of 2.2 percentage points.

No Democrat has held a U.S. Senate seat from Alabama in more than 20 years. In 2016, Trump won the state by 28 percentage points over Democrat Hillary Clinton.

Jones has touted a record that includes prosecuting former Ku Klux Klan members responsible for the 1963 bombing of a black church in Birmingham, Alabama, in which four girls were killed.

He spent the past week rallying African-Americans, the most reliably Democratic voters in the state, and hammering Moore in television ads. He has told supporters that his campaign is a chance to be on the “right side of history for the state of Alabama.”

If Jones wins on Tuesday, Republicans would control the Senate by a slim 51-49 margin, giving Democrats momentum ahead of the November 2018 congressional elections, when control of both chambers of Congress will be at stake.

Moore’s campaign has cast Jones as a liberal out of step with Alabama voters, seizing on the Democrat’s support of abortion rights.

Moore, who was twice removed from the state Supreme Court for refusing to abide by federal law, may find a chilly reception in Washington if he wins. Republican leaders have said

Moore could face an ethics investigation if Alabama voters send him to the U.S. Senate.

Democrats have signaled they may use Moore’s election to tar Republicans as insensitive to women’s concerns at a time when allegations of sexual harassment have caused many prominent men working in politics, entertainment, media and business to lose their jobs.

(Additional reporting by Julia Harte and Susan Heavey in Washington; Writing by Caren Bohan; Editing by Peter Cooney and Bill Trott)

Bill letting people bring concealed guns across state lines passes U.S. House

By Lisa Lambert

WASHINGTON (Reuters) – People would be able to bring legal, concealed guns into any U.S. state under legislation the House of Representatives approved on Wednesday that would also bolster the national background check system and require a study of the “bump stocks” used in October’s Las Vegas mass shooting.

The country’s long-standing fight over gun ownership has grown more heated since a single person killed 58 people and injured more than 500 at a music festival in Las Vegas, Nevada, the deadliest mass shooting carried out by an individual in U.S. history. Stephen Paddock boosted his firearms with bump stocks to shoot thousands of bullets over 10 minutes.

On a vote of 231 to 198, the Republican-led House approved the Concealed Carry Reciprocity Act, which would require states to recognize each others’ permits for carrying hidden and loaded firearms while in public.

States’ requirements on concealed guns vary widely. Some states deny permits to people who have committed domestic violence or other crimes. Eight do not require permits at all.

Supporters of the bill, which still must be approved by the Senate, say states recognize each others’ drivers licenses and other permits, making concealed-carry permits the exception.

Detractors say the bill tramples states’ rights and that gun permits differ from drivers’ licenses, which are generally uniform across the country. They also say that, under the legislation, gun owners will only have to abide by requirements of the most lenient states.

The bill passed eight days before the fifth anniversary of the Sandy Hook shooting in which 20 children and six adults perished. So far this year, 14,412 people have died and 29,277 have been injured in firearm-related incidents in the United States, according to the Gun Violence Archive. About 8 percent of them were children and teenagers.

Bill supporters also pointed to last month’s Texas shooting, where a man fired his rifle on a fleeing gunman who had just killed 26 worshippers at a church. The gunman was later found dead in his car.

“We know that citizens who carry a concealed firearm are not only better prepared to act in their own self-defense, but also in the defense of others,” said House Judiciary Committee Chairman Bob Goodlatte, a Republican.

The legislation also included a bipartisan measure to strengthen the National Instant Criminal Background Check System. Meanwhile, the Justice Department has already begun studying bump stocks, and could soon ban them.

(Reporting by Lisa Lambert; Editing by James Dalgleish)

Pro-Kurdish opposition leader goes on trial in Turkey on terrorism-related charges

By Ece Toksabay

ANKARA (Reuters) – The jailed leader of Turkey’s pro-Kurdish opposition went on trial on Thursday, 13 months after his arrest on terrorism-related charges, facing up to 142 years in prison in a case closely watched by rights groups and Western governments.

Selahattin Demirtas, the co-leader of the Peoples’ Democratic Party (HDP), was not allowed to appear in court for security reasons and refused to take part via video link. A state prosecutor demanded he remain in jail during the trial.

A former human rights lawyer, Demirtas was arrested on Nov. 4 last year, one of more than a dozen HDP lawmakers who were arrested in a crackdown following last year’s attempted coup.

A crowd of several hundred gathered to show support for Demirtas in snowy weather outside the court near the capital Ankara. They joined hands and danced around small fires, singing songs in Kurdish. “Demirtas is our honor,” they chanted.

Demirtas and other detained HDP members are mostly accused of links to the Kurdistan Workers Party (PKK) militant group, which has conducted a decades-old insurgency in which 40,000 people have been killed. The group is deemed a terrorist organization by the United States, Turkey and Europe. All of the accused deny the charges.

The HDP is the third-largest party in Turkey’s parliament. The party’s other co-leader, Figen Yuksekdag, also jailed pending trial on terrorism charges, was remanded in custody by an Ankara court on Wednesday.

PROTESTS BANNED

Demirtas is held in a jail in the northwestern city of Edirne. The case was to be held within the city of Ankara itself but was moved to the Sincan prison complex outside the capital, two days before the trial, because of security concerns.

European parliamentarians, Western diplomats and rights group representatives attended the session in the small court room with a capacity of 120 people. The HDP said 1,250 lawyers sought to defend Demirtas.

The HDP said in a statement the indictment largely consists of press releases and speeches Demirtas has made at conferences, panels and similar legal and political activities.

The charges aimed at Demirtas included “establishing a terrorist organization”, “spreading terror group propaganda” and “praising crimes and criminals”.

Authorities banned protests across Ankara province for the three days until Friday for security reasons after the HDP called for protests to mark the hearing of Demirtas and other party officials, the governor’s office said in a statement.

About 150,000 people have been sacked or suspended and roughly 50,000 people have been jailed pending trial since last year’s failed coup. Rights groups and some Western allies say Erdogan has used the putsch as an excuse to quash dissent. The HDP says as many as 5,000 of its members have been detained.

Erdogan says such measures were necessary given the danger represented by the putsch in which 250 people were killed.

(Writing by Daren Butler; Editing by David Dolan and Andrew Heavens)

Trump warns of government shutdown threat ahead of meeting with lawmakers

By Richard Cowan

WASHINGTON (Reuters) – President Donald Trump on Wednesday again raised the possibility of a U.S. government shutdown by week’s end – blaming Democrats for that possible outcome – one day before he is due to host Republican and Democratic congressional leaders for talks on a spending bill.

Trump’s warning came as some of the most conservative members of the House of Representatives pushed for increases in military spending along with either a freeze or reduction in domestic programs.

Their bid is likely to be rejected by Democrats, who make up a minority in Congress, and could further complicate behind-the-scenes negotiations by congressional leaders that have been going on for months aimed at figuring out government spending for the fiscal year that began on Oct. 1.

A temporary spending bill passed by Congress is due to run out on Friday. If Congress cannot agree on a measure to continue the funding, parts of the federal government could shut down.

As a condition of backing a new spending measure, Democrats have demanded legislative protections for the nearly 700,000 undocumented immigrants who were brought into the United States. But Trump has criticized that demand, saying it could set the stage for an impasse.

“The Democrats are really looking at something that is very dangerous for our country,” Trump told reporters at the White House. “They are looking at shutting down.”

In response, House Democratic leader Nancy Pelosi tweeted: “President Trump is the only person talking about a government shutdown. Democrats are hopeful the president will be open to an agreement to address the urgent needs of the American people and keep government open.”

The jockeying so close to Friday’s midnight deadline added suspense in Washington while Republican congressional leaders labored to demonstrate that they can govern and spare the country the chaos of a government shutdown at Christmas time that likely would not sit well with voters.

(Additional reporting by Steve Holland, Susan Heavey and Susan Cornwell; Editing by Bill Trott)

Senate poised for vote on tax bill negotiations with House

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – A top U.S. Senate Republican voiced optimism that congressional negotiators will reach a deal on a sweeping tax overhaul ahead of a Dec. 22 deadline, as senators prepared to vote on Wednesday to authorize talks with the House to bridge differences between their rival bills.

The Republican-led House of Representatives and Senate must work out differences on issues ranging from business taxes to the repeal of the Obamacare mandate that Americans obtain health insurance or face a penalty before lawmakers can pass a final version.

A Senate measure to go to a conference with the House, which is widely expected to pass, follows similar House action this week. Senate aides said the vote would be held at 3 p.m. (2000 GMT).

John Cornyn, the No. 2 Senate Republican, said he was optimistic House and Senate tax negotiators would be able to work out an agreement before their self-imposed Dec. 22 deadline to send the bill to Republican President Donald Trump to sign into law.

“Given the similarities between the House and the Senate bills, I think there are some obvious targets where they need to focus their attention but obviously they won’t be rewriting the bills,” Cornyn said.

While there are significant differences between the House and Senate versions, both would deliver deep cuts in corporate income taxes and tax benefits to the wealthiest Americans as well as tax cuts to many middle-income people.

Passage of the tax bill would provide a badly needed legislative victory for Trump and Republicans after their failure earlier this year to enact legislation repealing President Barack Obama’s signature healthcare law.

Trump and Republicans see enacting the tax overhaul that they promised voters as crucial to their strategy for the 2018 U.S. congressional elections, when all 435 seats in the House of Representatives and 33 seats in the 100-member Senate will be up for election.

Democrats have been united against the bill, calling it a handout to corporations and the rich that would drive up the federal deficit.

Potential sticking points in the two versions of the legislation include the Senate’s decision to retain alternative minimum taxes for corporations and individuals. The House version repealed both taxes.

The bills also differ on their treatment of so-called pass-through enterprises including small businesses, the expensing of business capital investments, international corporate taxes, mortgage deductions and the child tax credit.

Republicans will also have to resolve a difference on the corporate income tax rate. Both chambers cut the rate to 20 percent from 35 percent, but the Senate’s bill delays the cut for a year.

The march toward passing tax legislation faced a risk earlier this week of becoming enmeshed in House Republican infighting over a separate spending measure. Members of the conservative House Freedom Caucus had threatened to vote against conference negotiations to gain leverage in the discussions with Republican leaders over the spending bill.

But House Freedom Caucus members have since vowed to insulate tax legislation from the politics of spending.

“We’ve got to get across the finish line on tax reform. Any distraction from that is a problem,” House Freedom Caucus Chairman Mark Meadows told reporters.

(Additional reporting by Richard Cowan; Editing by Caren Bohan and Will Dunham)

Supreme Court lets Trump’s latest travel ban go into full effect

By Lawrence Hurley

WASHINGTON (Reuters) – The U.S. Supreme Court on Monday handed a victory to President Donald Trump by allowing his latest travel ban targeting people from six Muslim-majority countries to go into full effect even as legal challenges continue in lower courts.

The nine-member court, with two liberal justices dissenting, granted his administration’s request to lift two injunctions imposed by lower courts that had partially blocked the ban, which is the third version of a contentious policy that Trump first sought to implement a week after taking office in January.

The high court’s action means that the ban will now go fully into effect for people from Chad, Iran, Libya, Somalia, Syria and Yemen seeking to enter the United States. The Republican president has said the travel ban is needed to protect the United States from terrorism by Islamic militants.

In a statement, Attorney General Jeff Sessions called the Supreme Court’s action “a substantial victory for the safety and security of the American people.” Sessions said the Trump administration was heartened that a clear majority of the justices “allowed the president’s lawful proclamation protecting our country’s national security to go into full effect.”

The ban was challenged in separate lawsuits by the state of Hawaii and the American Civil Liberties Union. Both sets of challengers said the latest ban, like the earlier ones, discriminates against Muslims in violation of the U.S. Constitution and is not permissible under immigration laws.

Trump had promised as a candidate to impose “a total and complete shutdown of Muslims entering the United States.” Last week he shared on Twitter anti-Muslim videos posted by a far-right British party leader.

“President Trump’s anti-Muslim prejudice is no secret – he has repeatedly confirmed it, including just last week on Twitter,” ACLU lawyer Omar Jadwat said.

“It’s unfortunate that the full ban can move forward for now, but this order does not address the merits of our claims. We continue to stand for freedom, equality and for those who are unfairly being separated from their loved ones,” Jadwat added.

Lower courts had previously limited the scope of the ban to people without either certain family connections to the United States or formal relationships with U.S.-based entities such as universities and resettlement agencies.

Trump’s ban also covers people from North Korea and certain government officials from Venezuela, but the lower courts had already allowed those provisions to go into effect.

The high court said in two similar one-page orders that lower court rulings that partly blocked the latest ban should be put on hold while federal appeals courts in San Francisco and Richmond, Virginia weigh the cases. Both courts are due to hear arguments in those cases this week.

The Supreme Court said the ban will remain in effect regardless of what the appeals courts rule, at least until the justices ultimately decide whether to take up the issue on the merits, which they are highly likely to do. The court’s order said the appeals courts should decide the cases “with appropriate dispatch.”

“We agree a speedy resolution is needed for the sake of our universities, our businesses and most of all, for people marginalized by this unlawful order,” Hawaii Attorney General Douglas Chin said.

Justices Ruth Bader Ginsburg and Sonia Sotomayor said they would have denied the administration’s request.

STRONG SIGNAL

Monday’s action sent a strong signal that the court is likely to uphold the ban on the merits when the case likely returns to the justices in the coming months.

There are some exceptions to the ban. Certain people from each targeted country can still apply for a visa for tourism, business or education purposes, and any applicant can ask for an individual waiver.

The San Francisco-based 9th U.S. Circuit Court of Appeals will hear arguments on the merits of Hawaii’s challenge on Wednesday in Seattle. The 4th U.S. Circuit Court of Appeals will arguments on the merits of case spearheaded by the ACLU on Friday in Richmond.

Trump issued his first travel ban targeting several Muslim-majority countries in January, then issued a revised one in March after the first was blocked by federal courts. The second one expired in September after a long court fight and was replaced with the present version.

The Trump administration said the president put the latest restrictions in place after a worldwide review of the ability of each country in the world to issue reliable passports and share data with the United States.

The administration argues that a president has broad authority to decide who can come into the United States, but detractors say the expanded ban violates a law forbidding the government from discriminating based on nationality when issuing immigrant visas.

The administration has said the ban is not discriminatory and pointed out that many Muslim-majority countries are unaffected by it.

(Reporting by Lawrence Hurley; Additional reporting by Mica Rosenberg in New York, Roberta Rampton aboard Air Force One and Yasmeen Abutaleb in Washington; Editing by Will Dunham)

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