Trump adds five conservatives to list of possible Supreme Court picks

Trump adds five conservatives to list of possible Supreme Court picks

By James Oliphant and Andrew Chung

WASHINGTON (Reuters) – In a move certain to please conservatives, President Donald Trump on Friday added five names to his list of candidates for a prospective U.S. Supreme Court vacancy as he presses ahead with a campaign to move the federal judiciary to the right.

Two of them are appellate judges who were nominated by Trump earlier this year and confirmed by the Senate: Amy Coney Barrett and Kevin Newsom. Another, Brett Kavanaugh, sits on the U.S. Court of Appeals in Washington, long viewed as a stepping-stone to the high court.

The others were Britt Grant, a Georgia Supreme Court justice, and Patrick Wyrick, a Oklahoma Supreme Court justice.

There is no current vacancy on the U.S. Supreme Court but three justices are 79 or older.

During his presidential campaign last year, Trump identified 20 conservative candidates for the Supreme Court. Upon taking office, he named Neil Gorsuch to the court to replace the late Justice Antonin Scalia, restoring the Supreme Court’s conservative majority. Gorsuch was confirmed by the Senate in April and has established himself as one of the Supreme Court’s most conservative justices.

Speaking at a Federalist Society conference of conservative legal advocates, White House Counsel Donald McGahn said Trump is “very committed” to appointing judges who are “committed originalists and textualists,” referring to a legal philosophy that relies on the actual wording of laws and the original meaning of the U.S. Constitution.

“They all have paper trails. They all are sitting judges. There is nothing unknown about them. What you see is what you get,” McGahn said.

The five jurists, all with strong conservative credentials, were added to the list with input from conservative leaders, and should another seat on the court open up, Trump will nominate a candidate from the updated list of 25, the White House said.

Leonard Leo, an advisor to the president on Supreme Court nominations, said Trump thought it was time to refresh the original list. “When you’re committed to picking from a list you want to make sure it’s as complete as possible,” Leo said in an interview.

Kavanaugh, who was appointed to the federal bench in 2006 by Republican former President George W. Bush, served as a White House counsel under Bush and worked as an assistant to Kenneth Starr, the independent counsel who investigated Democratic former President Bill Clinton during the Monica Lewinsky scandal.

Grant and Wyrick both joined state challenges to the Affordable Care Act, Democratic former President Barack Obama’s signature healthcare law, and Obama regulations aimed at reducing emissions from coal-burning power plants, said Carrie Severino, chief counsel of the Judicial Crisis Network, a conservative legal advocacy group.

KENNEDY IS PIVOTAL JUSTICE

The court currently consists of five conservatives and four liberals, with conservative Justice Anthony Kennedy sometimes joining with the liberals on high-profile issues such as gay rights and abortion.

At 81, Kennedy is the second-oldest justice on the court behind liberal Ruth Bader Ginsburg, 84, and some former Kennedy clerks have said he is considering retirement. Liberal Justice Stephen Breyer is 79.

Should any of those step down, Trump would get a historic opportunity to shape the court in a more conservative direction for decades to come. Supreme Court appointments are lifetime jobs.

Conservatives criticize the federal judiciary as too liberal, and Attorney General Jeff Sessions at the same conference lashed out at “activist judges.”

Trump already has taken steps to make the federal judiciary more conservative, with 14 judicial appointees already confirmed by the Senate and more in the pipeline.

Catherine Glenn Foster, president of the anti-abortion advocacy group Americans United for Life, said she was pleased with the new selections. “From their known records they tend to be strong on recognizing the protections for life,” she said in an interview.

On Friday, Republican Alabama Governor Kay Ivey said she would support her party’s Senate candidate Roy Moore, who has been accused by several women of unwanted sexual contact, because of the importance of keeping the Senate under Republican control should another Supreme Court vacancy arise.

(Reporting by James Oliphant and Andrew Chung; Additional reporting by Lawrence Hurley and Eric Beech; Editing by Will Dunham)

IBM urged to avoid working on ‘extreme vetting’ of U.S. immigrants

IBM urged to avoid working on 'extreme vetting' of U.S. immigrants

By Dustin Volz

WASHINGTON (Reuters) – A coalition of rights groups launched an online petition on Thursday urging IBM Corp to declare that it will not develop technology to help the Trump administration carry out a proposal to identify people for visa denial and deportation from the United States.

IBM and several other technology companies and contractors, including Booz Allen Hamilton, LexisNexis and Deloitte [DLTE.UL], attended a July informational session hosted by immigration enforcement officials that discussed developing technology for vetting immigrants, said Steven Renderos, organizing director at petitioner the Center for Media Justice.

President Donald Trump has pledged to harden screening procedures for people looking to enter the country, and also called for “extreme vetting” of certain immigrants to ensure they are contributing to society, saying such steps are necessary to protect national security and curtail illegal immigration.

The rights group said the proposals run counter to IBM’s stated goals of protecting so-called “Dreamer” immigrants from deportation.

Asked about the petition and whether it planned to work to help vet and deport immigrants, an IBM spokeswoman said the company “would not work on any project that runs counter to our company’s values, including our long-standing opposition to discrimination against anyone on the basis of race, gender, sexual orientation or religion.”

The petition is tied to a broader advocacy campaign, also begun Thursday, that objects to the U.S. Immigration and Customs Enforcement’s (ICE) Extreme Vetting Initiative.

In an Oct. 5 email seen by Reuters, Christopher Padilla, IBM’s vice president of government affairs, cited the company’s opposition to discrimination in response to an inquiry about the vetting program from the nonprofit group Open Mic.

Padilla said the meeting IBM attended was only informational and it was “premature to speculate” whether the company would pursue business related to the Extreme Vetting Initiative.

Booz Allen Hamilton, LexisNexis and Deloitte did not immediately respond when asked about the campaign, which also highlighted their attendance at the July meeting.

ICE wants to use machine learning technology and social media monitoring to determine whether an individual is a “positively contributing member of society,” according to documents published on federal contracting websites.

More than 50 civil society groups and more than 50 technical experts sent separate letters on Thursday to the Department of Homeland Security saying the vetting program as described was “tailor-made for discrimination” and contending artificial intelligence was unable to provide the information ICE desired.

Opponents of Trump’s policies ranging from immigration to trade have been pressuring IBM and other technology companies to avoid working on proposals in these areas from the Republican president’s administration.

Shortly after the presidential election last year, for example, several internet firms pledged that they would not help Trump build a data registry to track people based on their religion or assist in mass deportations.

IBM is among dozens of technology companies to join a legal briefing opposing Trump’s decision to end the “Dreamer” program that protects from deportation about 900,000 immigrants brought illegally into the United States as children.

“While on the one hand they’ve expressed their support for Dreamers, they’re also considering building a platform that would make it easier to deport them,” Renderos said.

CREDO, Daily Kos, and Color of Change also organized the petition.

(Reporting by Dustin Volz in Washington, additional reporting by Salvador Rodriguez in San Francisco, Editing by Rosalba O’Brien and David Gregorio)

U.S. towns, cities fear taxpayer revolt if Republicans kill deduction

U.S. towns, cities fear taxpayer revolt if Republicans kill deduction

By Richard Cowan

WASHINGTON (Reuters) – From Pataskala, Ohio, to Conroe, Texas, local government leaders worry that if Republican tax-overhaul plans moving through the U.S. Congress become law, it will be harder for them to pave streets, put out fires, fight crime and pay teachers.

A tax plan approved by the House of Representatives on Thursday would sharply curtail a federal deduction that millions of Americans can now claim for tax payments to state, county, city and town governments.

Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.

The proposed repeal of the state and local tax (SALT) deduction is part of an “assault on local governments” by Republicans in Washington, said Elizabeth Kautz, the Republican mayor of Burnsville, Minnesota, near Minneapolis.

“My hope is that we look at being thoughtful about what we’re doing and not ram something through just to get something done before the year is out,” Kautz said of the plan being rushed through Congress by her own party.

In the United States, local governments run schools, operate police and fire departments and maintain streets, parks and libraries, among other essential services. The federal government’s role at that level is limited.

Cities, towns, counties and states collect their own property, sales and income taxes. Under existing law, payments of those taxes can be deducted, or subtracted from federal taxable income, lowering the amount of federal tax due.

The House tax bill just approved would eliminate the deduction for individuals and families of state and local income and sales tax, while capping property tax deductions at $10,000.

A bill being debated in the Senate, with Republican President Donald Trump’s support, would kill the SALT deduction entirely for individuals and families, although businesses would keep it. The fate of that bill is uncertain.

Ending the SALT tax break is part of a package of changes to deductions that would help Republicans raise more than $1.2 trillion in new federal tax revenues over 10 years.

That increase would help offset the $1.4 trillion in revenue that would be lost from cutting the corporate tax rate, another part of both the Senate and House plans.

POLICE CONCERNS

Chuck Canterbury, president of the Fraternal Order of Police, which represents 325,000 law enforcement officers nationwide, wrote a letter to congressional leaders on Tuesday.

“The FOP is very concerned that the partial or total elimination of SALT deductions will endanger the ability of our state and local government to fund these (law enforcement) agencies,” said the letter, distributed to reporters.

Emily Brock, a director at the Government Finance Officers Association, said if SALT deductions were killed by Congress, voters could revolt. “Can you blame an individual taxpayer?” she asked. “They try to minimize their individual tax liability.”

Those who want to curb the century-old SALT deduction argue it only motivates local governments to seek more tax increases and spend more money. “Maintaining the deduction encourages government overspending and taxation,” argues the American Legislative Exchange Council, a nonprofit group of conservative state legislators and private activists.

Various other groups are fighting on Capitol Hill to defend the SALT deduction, such as the National Association of Realtors and the U.S. Conference of Mayors.

BRADY’S DISTRICT

Steve Williams, chief financial officer for Conroe, Texas, said its rapid growth demanded new fire stations, schools, roads and public safety services.

Conroe is near Houston and in the congressional district of Republican Representative Kevin Brady, chairman of the House tax committee and a champion of restricting the SALT deduction.

“Tax reform comes with picking winners and losers and I think in the final analysis, the people in (congressional) District 8 will be losers,” Williams said.

Conroe is part of Montgomery County, which voted 75 percent to 22.5 percent for Trump over Democrat Hillary Clinton in the 2016 presidential election.

In Pataskala, Ohio, near the state capital, Columbus, city finance director Jamie Nicholson said the local police department needed a new station. It now works out of an early 1900s building with no holding cell for suspects who are under arrest. “They get handcuffed to a chair,” he said.

Given the past difficulty Pataskala has had convincing taxpayers to approve new taxes, he said, eliminating or paring back the SALT deduction might trigger demands for chopping local taxes and blow a huge hole in his budget.

Greg Cox, a Republican member of the San Diego County, California, Board of Supervisors, echoed similar concerns about the impact on his community.

He said the Republican plan was unfair partly because it let businesses keep the SALT deduction, while taking it away from individuals and families.

(Editing by Kevin Drawbaugh and Peter Cooney)

China says ‘dual suspension’ proposal still best for North Korea

China says 'dual suspension' proposal still best for North Korea

BEIJING (Reuters) – China said on Thursday a “dual suspension” proposal to handle North Korea was still the best option, after U.S. President Donald Trump said he and Chinese President Xi Jinping had rejected a “freeze for freeze” agreement.

North Korea’s rapid progress in developing nuclear weapons and missiles has fueled a surge in regional tension and U.N.-led sanctions appear to have failed to bite deeply enough to change its behavior.

China and Russia have proposed that the United States and South Korea stop major military exercises in exchange for North Korea halting its weapons programs.

China formally calls the idea the “dual suspension” proposal.

Speaking on his return from Asia on Wednesday, Trump said he and Xi had rejected a “freeze for freeze” agreement, but it was not clear if he was referring to the “dual suspension” idea, which China’s foreign minister announced in March.

Asked how China understood Trump’s remarks, and if he agreed with Trump’s characterization of what Trump said he agreed with Xi, Chinese Foreign Ministry spokesman Geng Shuang said only through talks that addressed all sides legitimate security concerns could there be a peaceful resolution.

“We believe that the ‘dual suspension’ proposal is the most feasible, fair and sensible plan in the present situation,” Geng told a daily news briefing.

“Not only can it relieve the present tense situation, it can also resolve all parties most pressing security concerns, and provide an opportunity and create conditions to resume talks, and find a breakthrough point to get out of trouble,” he added.

The “dual suspension” is just a first step and not the end point, Geng said.

“We hope that all sides can conscientiously treat and proactively consider China’s proposal, and at the same time we welcome relevant parties to put forward proposals that can benefit the promotion of a peaceful resolution for the peninsula nuclear issue.”

North Korea says it needs to develop its weapons to protect itself from what it sees as U.S. aggression. It sees U.S.-South Korean military exercises as preparations for invasion.

South Korea and the United States, which has about 28,000 troops in South Korea, say their exercises are “defensive in nature”.

(Reporting by Ben Blanchard; Editing by Robert Birsel)

U.S. jobless claims unexpectedly rise; import prices up modestly

U.S. jobless claims unexpectedly rise; import prices up modestly

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits unexpectedly rose last week in part as a backlog of applications from Puerto Rico continued to be processed, but the underlying trend pointed to tightening labor market conditions.

Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 249,000 for the week ended Nov. 11, the Labor Department said on Thursday. It was the second straight weekly increase.

The claims backlog in Puerto Rico is being cleared as some of the infrastructure damaged by hurricanes Irma and Maria is restored. Economists polled by Reuters had forecast claims falling to 235,000 in the latest week.

A labor department official said while the backlog in Puerto Rico was being processed, claims-taking procedures continued to be severely disrupted in the Virgin Islands.

Last week marked the 141st straight week that claims remained below the 300,000 threshold, which is associated with a strong labor market. That is the longest such stretch since 1970, when the labor market was smaller.

The labor market is near full employment, with the jobless rate at a 17-year low of 4.1 percent. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 6,500 to 237,750 last week.

U.S. financial markets were little moved by the data.

The low level of claims suggests strong job growth despite hurricane-related disruptions in September. Employment gains could, however, slow as companies struggle to find qualified workers, which economists expect will boost sluggish wage growth.

The claims report also showed the number of people still receiving benefits after an initial week of aid dropped 44,000 to 1.86 million in the week ended Nov. 4, the lowest level since December 1973. The four-week moving average of the so-called continuing claims fell 9,000 to 1.89 million, the lowest reading since January 1974.

In another report on Thursday, the Labor Department said import prices gained 0.2 percent last month as an increase in the cost of imported petroleum and capital goods was offset by a decline in food prices. That followed a 0.8 percent jump in September.

In the 12 months through October, import prices increased 2.5 percent, slowing after a 2.7 percent rise in September.

Last month, prices for imported petroleum increased 1.7 percent after surging 6.3 percent in September. Import prices excluding petroleum edged up 0.1 percent after shooting up 0.4 percent the prior month. Import prices excluding petroleum rose 1.4 percent in the 12 months through October.

A weak dollar, which has this year lost 5.4 percent of its value against the currencies of the United States’ main trading partners, could keep import prices outside petroleum supported.

Imported capital goods prices rose 0.2 percent last month, while the cost of imported food fell 0.2 percent.

The report also showed export prices were unchanged in October as the biggest monthly increase in the price of agricultural exports in nearly 1-1/2 years was eclipsed by a drop in nonagricultural prices. Export prices rose 0.7 percent in September. They increased 2.7 percent year-on-year last month after rising 2.8 percent in September.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Nearly 1.5 million people signed up for Obamacare plans so far: officials

Nearly 1.5 million people signed up for Obamacare plans so far: officials

WASHINGTON (Reuters) – More than 800,000 people signed up for Obamacare individual health insurance plans in the second week of open enrollment, U.S. government health officials said on Wednesday, bringing the total number of sign-ups to nearly 1.5 million so far.

There is particular scrutiny of how Affordable Care Act programs are faring after a year in which President Donald Trump has sought to undermine Obamacare, especially after his fellow Republicans in Congress failed to pass legislation to repeal and replace the law.

More people have signed up for Obamacare plans in the first two weeks of 2018 open enrollment than in the same time period last year, and the sign-ups include about 345,000 new consumers, according to the latest figures from the U.S. Centers for Medicare and Medicaid Services.

But the Trump administration halved the 2018 open enrollment period to six weeks, slashed the Obamacare advertising budget by 90 percent and cut funding for groups that help people enroll in Obamacare insurance, so it is still unclear whether there will be the same level of participation as in years past.

The Congressional Budget Office has forecast that 11 million people will buy plans in 2018, 1 million more than were enrolled in 2017.

Republicans, who control the White House, Senate and U.S. House of Representatives, failed this summer to push through legislation to overturn the 2010 law, former Democratic President Barack Obama’s top domestic policy achievement.

Repealing Obamacare has long been a goal of Republicans and it was one of Trump’s main election campaign promises. Frustrated by inaction in Congress, the president has taken steps through executive and regulatory actions to undercut the law, and has promised to let the healthcare program “implode.”

Republicans including House Speaker Paul Ryan have said they will try again next year to repeal the law, which has extended health insurance coverage to 20 million more Americans but which has long been seen by Republicans as costly government overreach.

The Senate this week added a repeal of Obamacare’s individual mandate, the requirement that most Americans purchase health insurance or else pay a penalty, to its version of an overhaul of the U.S. tax code that is working its way through Congress.

(Reporting by Yasmeen Abutaleb; Editing by Frances Kerry)

U.S. consumer prices edge up; retail sales unexpectedly increase

U.S. consumer prices edge up; retail sales unexpectedly increase

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer prices barely rose in October as the boost to gasoline prices from hurricane-related disruptions to Gulf Coast oil refineries was unwound, but rising rents and healthcare costs pointed to a gradual buildup of underlying inflation.

Low inflation is, however, helping to underpin consumer spending. Other data on Wednesday showed an unexpected increase in retail sales last month as heavy price discounting by automobile manufacturers lifted purchases of motor vehicles.

Rising retail sales and steadily firming underlying price pressures likely will keep the Federal Reserve on course to raise interest rates next month.

The Labor Department said its Consumer Price Index edged up 0.1 percent last month after jumping 0.5 percent in September. That lowered the year-on-year increase in the CPI to 2.0 percent from 2.2 percent in September. The increases were in line with economists’ expectations.

Gasoline prices fell 2.4 percent after surging 13.1 percent in September, which was the largest gain since June 2009. September’s jump in gasoline prices followed Hurricane Harvey, which struck Texas in late August and disrupted production at oil refineries in the Gulf Coast region.

Food prices were unchanged after nudging up 0.1 percent in September. Excluding the volatile food and energy components, consumer prices rose 0.2 percent in October amid a pickup in the cost of rental accommodation, healthcare costs, tobacco and a range of other goods and services.

The so-called core CPI gained 0.1 percent in September. October’s increase lifted the year-on-year increase in the core CPI to 1.8 percent. The year-on-year core CPI had increased by 1.7 percent for five straight months.

The slight pickup in the monthly core CPI could offer some comfort to Fed officials amid concerns that stubbornly low inflation might reflect not only temporary factors but developments that could prove more persistent.

The Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, has consistently undershot the U.S. central bank’s 2 percent target for more than five years. The Fed has lifted borrowing costs twice this year and has projected three rate increases in 2018.

Prices of U.S. Treasuries fell and the U.S. dollar <.DXY> pared losses against a basket of currencies after the data. U.S. stock index futures extended losses.

RENTS, HEALTHCARE COSTS RISE

Last month, owners’ equivalent rent of primary residence climbed 0.3 percent, quickening after September’s 0.2 percent increase. The cost of hospital services increased 0.5 percent and prices for doctor visits rose 0.2 percent. There were also increases in prices for wireless phone services, airline fares, education and motor vehicle insurance.

Prices for used cars and trucks rose 0.7 percent, ending nine straight months of declines. New motor vehicle prices, however, fell for a second consecutive month as manufacturers resorted to deep discounting to eliminate an inventory overhang.

In a separate report on Wednesday, the Commerce Department said retail sales increased 0.2 percent last month. Data for September was revised to show sales jumping 1.9 percent, which was the largest gain since March 2015, rather than the previously reported 1.6 percent advance.

Retail sales increased 4.6 percent on an annual basis.

Economists polled by Reuters had forecast that retail sales would be unchanged in October. The slowdown in retail sales last month from September’s robust pace largely reflected an unwinding of the boost to building materials and gasoline prices after recent hurricanes.

Receipts at auto dealerships increased 0.7 percent after soaring 4.6 percent in September, supported by the deep price discounting by manufacturers. Sales at gardening and building material stores fell 1.2 percent last month after surging 3.0 percent in September.

Receipts at service stations decreased 1.2 percent in October. That followed a 6.4 percent gain in September. Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.3 percent last month after climbing 0.5 percent in September.

These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. Last month’s increase in core retail sales indicated a healthy pace of consumer spending at the start of the fourth quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 2.4 percent annualized rate in the third quarter.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Trump administration to release rules on disclosing cyber flaws: source

Trump administration to release rules on disclosing cyber flaws: source

By Dustin Volz

WASHINGTON (Reuters) – The Trump administration is expected to publicly release on Wednesday its rules for deciding whether to disclose cyber security flaws or keep them secret, a national security official told Reuters.

The move is an attempt by the U.S. government to address criticism that it too often jeopardizes internet security by stockpiling the cyber vulnerabilities it detects in order to preserve its ability to launch its own attacks on computer systems.

The revised rules, expected to be published on whitehouse.gov, are intended to make the process for how various federal agencies weigh the costs of keeping a flaw secret more transparent, said the official, who spoke on condition of anonymity because the rules were not yet public.

Under former President Barack Obama, the U.S. government created an inter-agency review, known as the Vulnerability Equities Process, to determine what to do with flaws unearthed primarily by the National Security Agency.

The process is designed to balance law enforcement and U.S. intelligence desires to hack into devices with the need to warn manufacturers so that they can patch holes before criminals and other hackers take advantage of them.

The new Trump administration rules will name the agencies involved in the process and include more of them than before, such as the Departments of Commerce, Treasury and State, the official said.

Rob Joyce, the White House cyber security coordinator, has previewed the new rules in recent public appearances.

“It will include the criteria that the panel weighs, and it will also include the participants,” Joyce said last month at a Washington Post event. He said the Trump administration wanted to end the “smoke-filled room mystery” surrounding the process.

Some security experts have long criticized the process as overly secretive and too often erring against disclosure.

The criticism grew earlier this year when a global ransomware attack known as WannaCry infected computers in at least 150 countries, knocking hospitals offline and disrupting services at factories.

The attack was made possible because of a flaw in Microsoft’s Windows software that the NSA had used to build a hacking tool for its own use.

But in a breach U.S. investigators are still working to understand, that tool and others ended up in the hands of a mysterious group called the Shadow Brokers, which then published them online.

Suspected North Korean hackers spotted the Windows flaw and repurposed it to unleash the WannaCry attack, according to cyber experts. North Korea has routinely denied involvement in cyber attacks against other countries.

 

(Reporting by Dustin Volz; editing by Grant McCool)

 

Senate Finance chairman revises tax plan to end Obamacare mandate

Senate Finance chairman revises tax plan to end Obamacare mandate

WASHINGTON (Reuters) – The head of the U.S. Senate Finance Committee proposed major changes to a Republican tax reform plan, adding a repeal of Obamacare’s health insurance mandate and making corporate tax cuts permanent while ending individual cuts in 2025.

In a statement late on Tuesday, committee chairman Orrin Hatch said the proposed changes would also slightly lower some individual tax rates and includes a repeal of the alternative minimum tax but only through 2025, when it would be reinstated.

The 226-page amendment comes as the Senate continues to craft its version of tax reform alongside the U.S. House of Representatives, which is finalizing its own bill. The two plans must be reconciled and merged into a final plan that can pass both chambers before it goes to President Donald Trump to sign into law.

Republicans, who control Congress and the White House but have yet to pass any major legislation, are eager for a legislative victory ahead of the 2018 midterm elections and are pushing hard to pass tax cuts by the end of the year.

It was not immediately clear how many of Hatch’s colleagues will support the plan in the Senate, where Republicans hold a slimmer 52-48 majority than in the House.

Democrats have dismissed the Republican plans as giveaways to corporations and the wealthy that would swell the nation’s deficit. If Democrats remain united in opposition, Republicans cannot lose more than two senators from their ranks and still have enough votes to pass tax legislation.

The inclusion of the healthcare provision, however, could add to the uncertainty, given that Republicans earlier this year failed to make good on their pledge to repeal and replace former President Barack Obama’s 2010 healthcare overhaul.

Hatch’s changes would end one of the more unpopular provisions in Obama’s Affordable Care Act that require Americans to obtain health insurance or pay a penalty. The nonpartisan Congressional Budget Office estimated that the change would increase the number of uninsured by 13 million people by 2027.

“By scrapping this unpopular tax from an unworkable law, we not only ease the financial burdens already associated with the mandate, but also generate additional revenue to provide more tax relief to these individuals,” Hatch said in a statement.

But several key moderate Republicans, including Senators Susan Collins and John McCain, expressed uncertainty on Tuesday over tying the tax bill to the healthcare provision details.

Hatch’s plan would also expand access to deductions for so-called “pass-through” businesses and increase the child tax credit to $2,000 from the earlier proposed $1,650, Hatch said. The current tax credit for children is $1,000.

(Reporting by David Alexander; Editing by Jeffrey Benkoe)

U.S. hate crimes rise for second straight year: FBI

U.S. hate crimes rise for second straight year: FBI

WASHINGTON (Reuters) – The number of hate crimes committed in the United States rose in 2016 for the second consecutive year, with African-Americans, Jews and Muslims targeted in many of the incidents, the FBI said on Monday in an annual report.

There were 6,121 hate crime incidents recorded last year, an almost 5 percent rise from 2015 and a 10 percent increase from 2014, the Federal Bureau of Investigation’s Hate Crimes Statistics report said. It did not give a reason for the rise.

Black Americans were targeted in about half the 3,489 incidents based on race, ethnicity or ancestry, the report said, followed by whites who were targeted in 720.

About half the 1,273 incidents that involved religion were against Jews. Muslims were targeted in 307 religion-based crimes, up 19 percent from 2015 and double the number in 2014.

There were 1,076 incidents involving lesbian, gay, bisexual or transgender people, with almost two-thirds of those targeting gay men.

The hate crimes recorded last year included nine murders and 24 rapes, the report said. Of the 5,770 known offenders, 46 percent were white and 26 percent were African-American.

The report was based on data voluntarily submitted by about 15,000 law enforcement agencies.

(Reporting by Ian Simpson; editing by Grant McCool)