The Jim Bakker Show

Trump scraps key Obamacare subsidies, urges Democrats to fix ‘broken mess’

By Yasmeen Abutaleb and Jeff Mason

WASHINGTON (Reuters) – U.S. President Donald Trump on Friday urged Democrats to make a healthcare deal after cutting off Obamacare subsidies to health insurance companies for low-income patients in a forceful move that sparked threats of legal action and concern of chaos in insurance markets.

“ObamaCare is a broken mess,” Trump tweeted early on Friday. “Piece by piece we will now begin the process of giving America the great HealthCare it deserves!”

The decision is the most dramatic action Trump has taken yet to weaken the Affordable Care Act, President Barack Obama’s signature healthcare law, which extended insurance to 20 million Americans.

The move drew swift condemnation from Democrats and threats from state attorneys general in New York and California to file lawsuits. Trump, a Republican, urged opponents to reach out to him.

“The Democrats ObamaCare is imploding. Massive subsidy payments to their pet insurance companies has stopped. Dems should call me to fix!” Trump said in another tweet on Friday.

Trump has been frustrated by Republicans’ failure to repeal and replace the law known as Obamacare, thwarting a promise he made during his successful 2016 presidential campaign.

His decision is likely to please those among his political base who detest the Obamacare system, which many Republicans have attacked for years as an unneeded government intrusion in Americans’ healthcare.

In a nod to that same constituency, the president signed an executive order earlier on Thursday to make it easier for Americans to buy bare-bones health insurance plans exempt from Obamacare requirements.

Senate Democratic Leader Chuck Schumer and House Democratic Leader Nancy Pelosi derided the subsidies cut-off in a joint statement, saying Trump would single-handedly push Americans’ healthcare premiums higher.

“It is a spiteful act of vast, pointless sabotage leveled at working families and the middle class in every corner of America,” they said. “Make no mistake about it, Trump will try to blame the Affordable Care Act, but this will fall on his back and he will pay the price for it.”

Insurers and proponents of Obamacare have implored Trump for months to commit to making the payments, which are worth billions of dollars. Several insurers have cited uncertainty over the payments when hiking premiums for 2018 or exiting insurance markets altogether.

Healthcare stocks have edged lower in recent days. Ending the payments could hurt shares of insurers such as Anthem Inc, Molina Healthcare Inc, Cigna Corp and Centene Corp, which are offering plans on Obamacare markets for 2018.

Trump has made the payments, guaranteed to insurers under Obamacare to help lower out-of-pocket medical expenses for low-income consumers, each month since taking office in January. But he has repeatedly threatened to cut them off and disparaged them as a “bailout” for insurance companies.

For Kathryn Haydon and her husband, who bought insurance under the law’s marketplace three years ago as struggling college students in Arkansas, the subsidies reduced the cost of their $310 plan by about $250, leaving them to pay $60 each month.

“If the subsidy was not there, we would have gone without health insurance,” she said. “Our finances were extremely tight at the time for us… we would have just hoped there were no catastrophes.”

LAWSUITS

The White House said late on Thursday that it could not lawfully pay the subsidies anymore.

A White House statement said that based on guidance from the Justice Department, “the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare.”

“In light of this analysis, the Government cannot lawfully make the cost-sharing reduction payments,” it said.

New York Attorney General Eric T. Schneiderman said in a statement he was prepared to lead other attorneys general in a lawsuit.

“I will not allow President Trump to once again use New York families as political pawns in his dangerous, partisan campaign to eviscerate the Affordable Care Act at any cost,” he wrote.

The payments are the subject of a lawsuit brought by House Republicans against the Obama administration that alleged they were unlawful because they needed to be appropriated by Congress. A judge for the federal district court for the District of Columbia ruled in favor of the Republicans, and the Obama administration appealed the ruling.

The Trump administration took over the lawsuit and had delayed deciding whether to continue the Obama administration’s appeal or terminate the subsidies, but in April Trump began threatening to stop the payments.

That case became more complicated in August when a U.S. appeals court allowed 16 Democratic state attorneys general to defend the payments and have a say in the legal fight.

The political turbulence has affected insurers’ decisions.

Anthem Inc, one of the largest remaining Obamacare insurers, in August scaled back its offerings in Nevada and Georgia and blamed the moves in part on uncertainty over the payments.

Blue Cross and Blue Shield of North Carolina earlier this year raised premiums by more than 20 percent, but said it would have only raised premiums by about 9 percent if Trump agreed to fund the payments.

The nonpartisan Congressional Budget Office estimated that cutting off the payments would cause premiums to rise 20 percent in 2018, and that 5 percent of Americans would live in areas that do not have an insurer in the individual market in 2018.

Trump has taken other steps to undermine Obamacare. Last week, his administration allowed businesses and non-profit organizations to seek exemptions from Obamacare’s mandate that employers provide birth control in health insurance with no co-payment.

The administration also slashed the Obamacare advertising and outreach budget and halved the open enrollment period.

(Additional reporting by Steve Holland, Brendan O’Brien and Susan Heavey and; Editing by Michael Perry and Bernadette Baum)

Trump strikes blow against Iran nuclear deal in major U.S. policy shift

By Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump struck a blow against the 2015 Iran nuclear agreement on Friday in defiance of other world powers, choosing not to certify that Tehran is complying with the deal and warning he might ultimately terminate it.

Trump announced the major shift in U.S. policy in a speech that detailed a more confrontational approach to Iran over its nuclear and ballistic missile programs and its support for extremist groups in the Middle East.

Trump said in an address at the White House that his goal is to ensure Iran’s never obtains a nuclear weapon.

“We will not continue down a path whose predictable conclusion is more violence more terror and the very real threat of Iran’s nuclear breakout,” Trump said.

While Trump did not pull the United States out of the agreement, aimed at preventing Iran from developing a nuclear bomb, he gave the U.S. Congress 60 days to decide whether to reimpose economic sanctions on Tehran that were lifted under the pact.

That would increase tension with Iran as well as put Washington at odds with other signatories of the accord such as Britain, France, Germany, Russia, China and the European Union.

Trump warned that if “we are not able to reach a solution working with Congress and our allies, then the agreement will be terminated.”

(Reporting by Steve Holland; Additional reporting by Makini Brice, Patricia Zengerle, Jonathan Landay, Warren Strobel and Arshad Mohammed in Washington, Andrea Shalal in Berlin, Dmitry Solovyov in Moscow, Parisa Hafezi in Ankara and Dan Williams in Jerusalem; Editing by Yara Bayoumy and Alistair Bell)

Trump expected to sign order side-stepping Obamacare rules

FILE PHOTO: U.S. President Donald Trump calls on Republican Senators to move forward and vote on a healthcare bill to replace the Affordable Care Act, as people negatively affected by the law stand behind him, in the Blue Room of the White House in Washington, U.S., July 24, 2017. REUTERS/Joshua Roberts

By Yasmeen Abutaleb

WASHINGTON (Reuters) – President Donald Trump was expected to sign an executive order on Thursday that would make it easier for Americans to buy bare-bones health insurance plans and circumvent rules put in place by Obamacare, though such an order could face legal challenges.

Stymied in Congress by the failure of Senate Republicans to roll back former President Barack Obama’s 2010 healthcare law, Trump’s executive order would represent his administration’s latest effort to undermine the law without legislation.

The order would allow small businesses and individuals to band together as associations to buy cheaper health plans that would be exempt from some Obamacare requirements. Among the requirements would be the mandate that all health plans cover 10 essential health benefits, including maternity and newborn care, prescription drugs, and mental health and addiction treatment.

The order would also change an Obama-era limit on the time span people can use short-term health insurance plans, which are cheaper but cover few medical benefits. Trump was expected to order an extension for the period that long short-term insurance can be used to about a year, versus three months under Obamacare.

Republicans, despite having control of the White House and both chambers of Congress, have for months been unable to make good on their seven-year promise to repeal Obamacare, which they view as a government intrusion into Americans’ healthcare.

Experts questioned whether Trump has the legal authority to expand association health plans and whether some plans, but not others, could be exempt from Obamacare rules.

The action could open Trump to legal challenges from Democratic state attorneys general, who have said they will sue Trump if he tries to destroy Obamacare, a law that brought health insurance coverage to millions of Americans.

Experts said the association health plans could attract young, healthy people and leave a sicker, more expensive patient pool in the individual insurance markets created under the healthcare law, driving up premiums and effectively eroding the law’s protection for those with pre-existing conditions.

Conservative groups and lawmakers, including Republican Senator Rand Paul, who said he has worked with Trump for months on the expected order, and Republican Senator Ron Johnson, have cheered the expected order. Paul opposed the Senate’s most recent attempt to overhaul Obamacare because he said it left too many of Obamcare’s regulations and spending programs in place.

Trump has taken a number of steps since assuming power in January to weaken or undermine Obamacare. He has not committed to making billions of dollars of payments to insurers guaranteed under Obamacare, prompting many to exit the individual market or hike premiums for 2018.

The administration also halved the open enrollment period, which begins Nov. 1, and slashed the Obamacare advertising and outreach budget.

(Reporting by Yasmeen Abutaleb; Editing by Kevin Drawbaugh and Leslie Adler)

Trump suggests challenging TV network licenses over ‘fake news’

By David Shepardson

WASHINGTON (Reuters) – U.S. President Donald Trump suggested challenging licenses for NBC and other broadcast news networks following reports by NBC News that his secretary of state had called him a “moron” after a discussion of the U.S. nuclear arsenal.

“With all of the Fake News coming out of NBC and the Networks, at what point is it appropriate to challenge their License? Bad for country!” Trump, a Republican, wrote in a post on Twitter on Wednesday.

Trump and his supporters have repeatedly used the term “fake news” to cast doubt on media reports critical of his administration, often without providing any evidence to support their case that the reports were untrue.

Trump kept up his criticism of the media in an appearance with Canadian Prime Minister Justin Trudeau, saying: “It is frankly disgusting the press is able to write whatever it wants to write.”

In a tweet late on Wednesday, Trump said: “Network news has become so partisan, distorted and fake that licenses must be challenged and, if appropriate, revoked. Not fair to public!”

Any move to challenge media companies’ licenses, however, would likely face significant hurdles.

The Federal Communications Commission, an independent federal agency, does not license broadcast networks, but issues them to individual broadcast stations that are renewed on a staggered basis for eight-year periods.

Comcast Corp, which owns NBC Universal, also owns 11 broadcast stations, including outlets in New York, Washington, Los Angeles, San Francisco, Boston, Dallas and Chicago.

A Comcast spokeswoman referred questions to NBC, which did not immediately respond.

ABC, owned by Walt Disney Co, declined to comment.

Shares in media companies fell, potentially reflecting concerns the war of words could worsen. Comcast was down 0.8 percent, while Disney shed 1.4 percent. CBS Corp fell 1.2 percent and Twenty-First Century Fox slid 2.8 percent.

Recon Analytics analyst Roger Entner called the market response a “short-term irrational knee-jerk reaction” and said Trump faced essentially insurmountable hurdles to getting licenses pulled.

A spokesman for FCC Chairman Ajit Pai did not immediately comment.

Gordon Smith, the chief executive of the National Association of Broadcasters, defended the media’s free speech rights.

“It is contrary to this fundamental right for any government official to threaten the revocation of an FCC license simply because of a disagreement with the reporting of a journalist,” Smith said in a statement.

ABC, owned by Walt Disney Co, declined to comment.

Numerous Democrats criticized Trump and urged Pai to denounce Trump’s comments.

Senator Ed Markey wrote Pai on Wednesday asking him to “withstand any urges from President Trump to harm the news media and infringe upon the First Amendment,” a reference to the U.S. Constitution’s free speech and press freedom guarantee.

Democratic U.S. Representative Frank Pallone said Trump “seemed to threaten broadcasters’ licenses only because he disagreed with their reporting. This threat alone could intimidate the press and lead to skewed and unfair reporting.”

FCC Commissioner Jessica Rosenworcel responded to Trump by tweeting a link to an FCC fact sheet. “Not how it works,” she said on Twitter.

‘FAIRNESS DOCTRINE’

When reviewing licenses the FCC must determine if a renewal is in the public interest, according to an agency fact sheet on its website.

The FCC said in the fact sheet it expects “station licensees to be aware of the important problems and issues facing their local communities and to foster public understanding by presenting programming that relates to those local issues.”

The agency does not issue similar licenses for cable networks such as CNN and MSNBC, or regulate internet news or other websites.

The FCC has said the First Amendment “expressly prohibits the commission from censoring broadcast matter” and that its role “in overseeing program content is very limited.”

In the early 1970s, then-President Richard Nixon and his top aides discussed using the FCC’s license renewal process as a way of punishing the Washington Post for its coverage of the Watergate burglary that ultimately brought down his presidency.

NBC News has reported on tensions between Trump and Secretary of State Rex Tillerson, and has said Trump sought a dramatic increase in the U.S. nuclear arsenal during a meeting with national security advisers in July. NBC reported Tillerson made his “moron” comment after that meeting.

Trump on Saturday also suggested he should get “equal time” because of what he described as late-night television hosts’ “anti-Trump” material.

The FCC’s equal time rules apply in limited cases to air time for political candidates and not to criticism of elected leaders.

Trump may have been referring to the “Fairness Doctrine” that was designed to ensure broadcasters present opposing viewpoints about public issues. Republican President Ronald Reagan’s administration eliminated it in 1987.

(Writing by Makini Brice and David Shepardson; Additional reporting by Roberta Rampton in Washington and Jessical Toonkel in New York; Editing by Frances Kerry, Paul Simao, Grant McCool)

Trump resists pressure to soften stance on Iran nuclear deal

By Steve Holland and John Walcott

WASHINGTON (Reuters) – President Donald Trump finds himself under immense pressure as he considers de-certifying the international nuclear deal with Iran, a move that would ignore warnings from inside and outside his administration that to do so would risk undermining U.S. credibility.

Trump is expected to unveil a broad strategy on confronting Iran this week, likely on Friday. There was always the chance he could still have a last-minute change of heart and certify Iran’s compliance with the 2015 accord, which he has called an “embarrassment” and the “worst deal ever negotiated.”

Senior U.S. officials, European allies and prominent U.S. lawmakers have told Trump that refusing to certify the deal would leave the U.S. isolated, concede the diplomatic high ground to Tehran, and ultimately risk the unraveling of the agreement.

Signed by the United States, Britain, France, Germany, Russia, China, the European Union and Iran, the deal relieved sanctions on Tehran in exchange for curbing its disputed nuclear program.

The International Atomic Energy Agency (IAEA) concluded that Iran secretly researched a nuclear warhead until 2009, which Tehran denies. Iran has always insisted that its nuclear program is for peaceful purposes and denies it has aimed to build an atomic bomb.

After Trump made clear three months ago he would not certify Iran’s compliance with the deal, his advisers moved to give him options to consider, a senior administration official said.

“They came up with a plan that protects the things they are concerned about but doesn’t recertify, which the president made clear he was not going to do. That ship has sailed,” according to the official, who spoke on condition of anonymity.

The official said Trump has been telling foreign leaders and U.S. lawmakers that his refusal to certify the Iran deal would not blow it up.

“He’s not walking away from it. The chances of him walking away from it go down if they work with him on making it better,” the official said.

White House officials said Trump is expected to announce a broad, more confrontational policy toward Iran directed at curbing its nuclear and ballistic missile programs and financial and military support for Hezbollah and other extremist groups.

Trump has said he believes the nuclear deal is too generous toward Iran and would not stop it from trying to develop a nuclear weapon.

He has criticized the agreement’s “sunset clauses,” under which some restrictions on Iran’s nuclear program would expire over time. He also wants to toughen language on ballistic missiles and inspections. The International Atomic Energy Agency says Iran is complying with the agreement.

FILE PHOTO: Women hold anti-U.S. banners during a demonstration outside the former U.S. embassy in Tehran November 4, 2015. REUTERS/Raheb Homavandi/TIMA/File Photo

NO RENEGOTIATION

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

Several diplomats have said Europe would be ready to discuss sanctioning Iran’s ballistic missile tests and forming a strategy to curb Iran’s influence in the region.

Officials have also said there could be room to open a new negotiation for what happens once some of the core terms of the deal begin expiring in 2025, although there is no reason to believe Iran would be ready to enter in such a negotiation. Iran has said it may exit the deal if the U.S. withdraws.

De-certifying would not withdraw the United States from the deal but it would give the U.S. Congress 60 days to decide whether to reimpose the sanctions on Tehran that were suspended under the agreement.

One U.S. official involved in administration said that declining to certify Iran’s compliance would probably leave all of the parties to the deal on one side and the United States on the other.

“That means that while the French and others are also interested in curbing Iran’s destabilizing activities, they may be less likely to follow (the U.S.) lead at the risk of the agreement blowing up,” the official said.

British Prime Minister Theresa May and French President Emmanuel Macron both spoke to Trump this week to express their concerns about the potential decision not to recertify the Iran deal.

“If the feeling is that the United States no longer supports the agreement, then the political reality is that the agreement will be in serious jeopardy and its implementation will be very difficult,” a senior French diplomat said.

Two other U.S. officials, who also requested anonymity, said Trump’s bellicose rhetoric on a number of fronts is troubling both many of his own aides and some of America’s closest allies, a few of whom have asked U.S. officials privately if Trump’s real objective is attacking Iran’s nuclear facilities.

One of the officials said that like the heated rhetoric with North Korea on its nuclear program, the Iran discussion has vexed White House Chief of Staff John Kelly, Defense Secretary Jim Mattis and Secretary of State Rex Tillerson “who have tried to advise the President that there are significant risks in the course he’d prefer to pursue.”

“At the end of the day, though, everyone recognizes that he’s the decider.”

Trump allies who oppose the deal have watched the president closely to see if he might buckle under pressure.

“He’s not going to re-certify,” said Sebastian Gorka, a former Trump national security aide. “I’m not worried. His gut instinct is absolutely right.”

(Reporting by Steve Holland and John Walcott; additional reporting by John Irish in Paris; Editing by Caren Bohan, Yara Bayoumy and Grant McCool)

Supreme Court tosses one of two travel ban challenges

FILE PHOTO - An international traveler arrives after U.S. President Donald Trump's executive order travel ban at Logan Airport in Boston, Massachusetts, U.S. January 30, 2017. REUTERS/Brian Snyder

By Lawrence Hurley

WASHINGTON (Reuters) – The U.S. Supreme Court on Tuesday threw out an appeals court ruling that struck down President Donald Trump’s previous temporary travel ban targeting several Muslim-majority nations countries that has now expired.

In a one-page order, the court acted in one of two cases pending before the nine justices over Trump’s travel ban, a case from Maryland brought by the American Civil Liberties Union, which sued to stop the ban contained in a March executive order.

For now, the court did not act on a separate challenge brought by the state of Hawaii, which the court had also agreed to hear. That case also features a challenge to a separate 120-day refugee ban, which has not yet expired.

That case could yet be dismissed once the refugee ban expires on Oct. 24, meaning the court remains unlikely to issue a final ruling on whether the ban was lawful.

The justices were unanimous in deciding against ruling in the Maryland case, although one of the liberal justices, Sonia Sotomayor, noted that she would not have wiped out the appeals court ruling.

The justices had been scheduled to hear arguments in the case on Tuesday, but removed it from their calendar after Trump’s 90-day ban expired on Sept. 24 and was replaced with a reworked ban.

The expired ban had targeted people from Iran, Libya, Syria, Yemen, Somalia and Sudan. The new open-ended ban, scheduled to take effect on Oct. 18, removed Sudan from the list while blocking people from Chad and North Korea and certain government officials from Venezuela from entering the United States.

The Trump administration has urged the court to dismiss both cases while the challengers have asked the justices to rule on the issue.

The Supreme Court in June agreed to take up the two cases and allowed the travel ban, which had been blocked by lower courts, to go into effect with certain changes.

Among the issues raised is whether the travel ban discriminated against Muslims in violation of the U.S. Constitution’s prohibition on the government favoring or disfavoring a particular religion.

The new ban, Trump’s third including one issued in January that was blocked by lower courts, could affect tens of thousands of potential immigrants and visitors to the United States. Opponents have already challenged it in court.

Trump had promised as a candidate “a total and complete shutdown of Muslims entering the United States.”

(Reporting by Lawrence Hurley; Editing by Leslie Adler)

Trump says likely to sign new healthcare order this week

U.S. President Donald Trump meets with former U.S. Secretary of State Henry Kissinger in the Oval Office of the White House in Washington, U.S., October 10, 2017. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – President Donald Trump said on Tuesday he would sign a measure, likely this week, to allow people in the United States to buy healthcare across state lines.

“They’ll be able to buy, they’ll be able to cross state lines and they will get great competitive healthcare, and it will cost the United States nothing,” Trump told reporters in the Oval Office during a meeting with former Secretary of State Henry Kissinger.

“With Congress the way it is, I decided to take it upon myself, so we’ll be announcing that soon as far as the signing’s concerned, but it’s largely worked out,” he said.

Republicans in Congress have failed to make good on Trump’s campaign promise to repeal and replace the Affordable Care Act, President Barack Obama’s signature healthcare law, also known as Obamacare.

Trump has suggested before that he was eying an executive order that would allow individuals to purchase insurance across state lines through so-called health associations, which Republican Senator Rand Paul has advocated.

(Reporting by Jeff Mason; Editing by James Dalgleish)

Iran has ‘all options on table’ if U.S. blacklists Revolutionary Guards

FILE PHOTO: Members of the Iranian revolutionary guard march during a parade to commemorate the anniversary of the Iran-Iraq war (1980-88), in Tehran September 22, 2011. REUTERS/Stringer/File Photo

LONDON (Reuters) – Iran told the United States on Tuesday that it will keep “all options on table” if President Donald Trump designates its elite Revolutionary Guards (IRGC) as a terrorist organization.

It came hours after the government said Washington itself would be aiding terrorism if it took such an action.

U.S. President Donald Trump is expected to announce this week his final decision on how he wants to contain Iran’s regional influence.

Trump is also expected to “decertify” a landmark 2015 deal Iran struck with world powers to curb its nuclear program in return for the lifting of most international sanctions. Trump’s announcement would stop short of pulling out of the agreement, punting that decision to Congress which would have 60 days to decide whether to reimpose sanctions.

He is also expected to designate Iran’s most powerful security force, the Islamic Revolutionary Guards Corps, as a terrorist organization.

U.S. sanctions on the IRGC could affect conflicts in Iraq and Syria, where Tehran and Washington both support warring parties that oppose the Islamic State militant group.

“The Americans are too small to be able to harm the Revolutionary Guards,” Ali Akbar Velayati, the top adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei was quoted as saying by ISNA. “We have all options on the table. Whatever they do, we will take reciprocal measures,” he added.

The Iranian nuclear deal, agreed in 2015 and supported by European countries, Russia and China, lifted international sanctions on Iran in return for it agreeing to curbs on its nuclear program.

“FIRM, DECISIVE AND CRUSHING”

Washington maintains separate unilateral sanctions on Iran over its missile program and allegations that it supports terrorism in the Middle East. It already blacklists some individuals and entities for supporting IRGC activities, but not the Guards themselves.

The Guards have a vast economic empire in Iran. Designating them terrorists could make it more difficult for some Iranian businesses to take advantage of the lifting of sanctions to interact with global banks, which are required to verify that their clients are not on terrorism blacklists.

Iran’s rial has dropped against the U.S. dollar in recent days in a sign of concern about Trump’s policy. The rial was quoted in the free market around 40,400 to the dollar, currency exchangers in Tehran told Reuters, compared to 39,200 last week. Several exchangers said they had stopped selling dollars from Monday and were waiting to assess the trend in the market.

An Iranian government spokesman said that the world should be “thankful” to the Revolutionary Guards for fighting against the Islamic State and other terrorist groups.

“By taking a stance against the Revolutionary Guards and designating it a terrorist group, the Americans would be joining the terrorists’ camp,” Mohammad Baqer Nobakht said in a weekly news conference broadcast live on state television.

IRGC commander Mohammad Ali Jafari said on Sunday that if Washington designated the Guards a terrorist organization, they “will consider the American army to be like Islamic State all around the world.”

Iran’s Foreign Ministry spokesman Bahram Qasemi said on Monday that Tehran would give a “firm, decisive and crushing” response if the United States goes ahead with such a plan.

Washington aims to put more pressure on the IRGC, especially over its missile program. Trump said in September that recent IRGC missile tests illustrated the weakness of the nuclear deal reached by his predecessor Barack Obama.

Iranian Foreign Minister Mohammad Javad Zarif said Iran purposefully excluded its military capability from the nuclear deal, as “it is not intended as leverage or a bargaining chip in future negotiations”.

In an article published in the Atlantic on Monday Zarif added: “No party or country need fear our missiles … unless it intends to attack our territory.”

(Reporting by Bozorgmehr Sharafedin; editing by Jeremy Gaunt and Peter Graff)

Kim Jong Un praises nuclear program, promotes sister

By James Pearson

SEOUL (Reuters) – North Korea’s leader Kim Jong Un said his nuclear weapons were a “powerful deterrent” that guaranteed its sovereignty, state media reported on Sunday, hours after U.S. President Donald Trump said “only one thing will work” in dealing with the isolated country.

Trump did not make clear to what he was referring, but his comments seemed to be a further suggestion that military action was on his mind.

In a speech to a meeting of the powerful Central Committee of the ruling Workers’ Party on Saturday, a day before Trump’s most recent comments, state media said Kim had addressed the “complicated international situation”.

North Korea’s nuclear weapons are a “powerful deterrent firmly safeguarding the peace and security in the Korean peninsula and Northeast Asia,” Kim said, referring to the “protracted nuclear threats of the U.S. imperialists.”

In recent weeks, North Korea has launched two missiles over Japan and conducted its sixth nuclear test, and may be fast advancing toward its goal of developing a nuclear-tipped missile capable of hitting the U.S. mainland.

North Korea is preparing to test-launch such a missile, a Russian lawmaker who had just returned from a visit to Pyongyang was quoted as saying on Friday.

Donald Trump has previously said the United States would “totally destroy” North Korea if necessary to protect itself and its allies.

The situation proved that North Korea’s policy of “byungjin”, meaning the parallel development of nuclear weapons and the economy was “absolutely right”, Kim Jong Un said in the speech.

“The national economy has grown on their strength this year, despite the escalating sanctions,” said Kim, referring to U.N. Security Council resolutions put in place to curb Pyongyang’s nuclear and missile program.

SISTER PROMOTION

The meeting also handled some personnel changes inside North Korea’s secretive and opaque ruling center of power, state media said.

Kim Jong Un’s sister, Kim Yo Jong, was made an alternate member of the politburo – the top decision-making body over which Kim Jong Un presides.

Alongside Kim Jong Un himself, the promotion makes Kim Yo Jong the only other millennial member of the influential body.

Her new position indicates the 28-year-old has become a replacement for Kim Jong Un’s aunt, Kim Kyong Hui, who had been a key decision maker when former leader Kim Jong Il was alive.

“It shows that her portfolio and writ is far more substantive than previously believed and it is a further consolidation of the Kim family’s power,” said Michael Madden, a North Korea expert at Johns Hopkins University’s 38 North website.

In January, the U.S. Treasury blacklisted Kim Yo Jong along with other North Korean officials over “severe human rights abuses”.

Kim Jong Sik and Ri Pyong Chol, two of the three men behind Kim’s banned rocket program, were also promoted.

State media announced that several other high ranking cadres were promoted to the Central Committee in what the South Korean unification ministry said could be an attempt by North Korea to navigate a way through its increasing isolation.

“The large-scale personnel reshuffle reflects that Kim Jong Un is taking the current situation seriously, and that he’s looking for a breakthrough by promoting a new generation of politicians,” the ministry said in a statement.

North Korea’s foreign minister Ri Yong Ho, who named Donald Trump “President Evil” in a bombastic speech to the U.N. General Assembly last month, was promoted to full vote-carrying member of the politburo.

“Ri can now be safely identified as one of North Korea’s top policy makers,” said Madden.

“Even if he has informal or off the record meetings, Ri’s interlocutors can be assured that whatever proposals they proffer will be taken directly to the top,” he said.

(Additional reporting by Yuna Park in SEOUL; Editing by Christian Schmollinger and John Stonestreet)

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)

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