Business

No Image

NPR Launches New Tool To Monitor President Trump's Ethical Promises

Senior Business Editor Marilyn Geewax talks about NPR’s newly-launched Trump Ethics Monitor, a tool that helps track conflicts of interest between President Trump’s businesses and the White House.

MICHEL MARTIN, HOST:

Now let’s talk about a new tool that NPR’s digital team created. It’s the Trump Ethics Monitor. It’s a digital project on npr.org that lets us and you keep an eye on President Trump’s business interests and what he’s doing to rid himself of conflicts of interest related to them. Here to talk about this tool is Marilyn Geewax, NPR’s senior business editor. Marilyn, welcome back. Thanks so much for joining us once again.

MARILYN GEEWAX, BYLINE: Hi, Michel.

MARTIN: So very quickly, remind us of what President Trump has said about these ethical issues. I mean, he reminds us often, as does the chairman of the House Oversight Committee, that presidents are not subject to the same conflict of interest rules that other government employees and even Cabinet secretaries are. So what has he said about this?

GEEWAX: Right. Even though he, on the one hand, says he’s exempt from those conflict rules – and he is – he has made a number of assertions. And we went through a bunch of transcripts of the debates and White House statements to look for what has he said he would do, and we came up with 10 claims. And then we set out to find the documentation that he actually has lived up to his own word.

And what we found is that there are these assertions. And sometimes he says he’s done them, but we are still not seeing any evidence of them. For example, he said he would sell all of his stock. He said he’s done that. But there’s no paperwork. We would like to be able to link to a document. Where’s the receipt? You know, just show us.

He also said that he would release his taxes when his audit is completed, but he has not released a letter from the IRS saying he is being audited. So – and, of course, there’s also the issue that the IRS says you don’t have to wait for an audit to be done.

MARTIN: So how does the tool work? Can you kind of walk us through it?

GEEWAX: Well, we just quote the promise, what he has said in his own words or his attorney, and then you can click on it to see – what is the conflict that’s potentially the problem? What is the latest development in this? And you can draw your own conclusions.

MARTIN: Are there any areas in which President Trump has made progress?

GEEWAX: Yeah. I think you could say – he has said that he would step back from daily management of the business, and we can find documents to show that. But at the same time, he has – all he’s done with the businesses is collect them all up together and put them into a revocable trust. But he’s the sole beneficiary of that trust. So even if his sons are running the businesses, the daily management, ultimately the money comes back to him. So ethics experts say that’s nowhere near what is enough to end the conflict of interest.

MARTIN: Now, before we let you go, Marilyn, we just heard from NPR’s Scott Horsley, who is at a Trump rally in Florida today. And this is actually a campaign event geared toward – wait for it – the 2020 election. So…

GEEWAX: Ooh (laughter). We’re all so excited to look forward to another cycle of…

MARTIN: Exactly. So I wanted to know if there are – people have raised ethics questions about these campaign events during the previous campaign. What are those questions?

GEEWAX: Well, it’s very unusual to have a president who has so many for-profit businesses. So when he was a candidate, for example, his companies made something like nearly $13 million in rental, you know, for staging an event, and then the campaign would actually pay his businesses. So it’s kind of unclear over the next four years – every time he shows up at one of his properties, will he call that a campaign event and collect rent for that? It’s a strange situation.

And he can also, you know, take in donations right now. He’s already collecting money for 2020. So it’s just unusual. Other people in the past have waited at least two years into their term before they started running for re-election.

MARTIN: That’s Marilyn Geewax, NPR’s business editor. You can check out the Trump Ethics Monitor at npr.org. Marilyn, thank you.

GEEWAX: You’re welcome.

Copyright © 2017 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Let’s block ads! (Why?)


No Image

Episode 755: The Phone At The End Of The World

A Research In Motion Ltd. (RIM) Blackberry Z10.

David Paul Morris/Bloomberg via Getty Images

hide caption

toggle caption

David Paul Morris/Bloomberg via Getty Images

Some of this story may sound familiar. Some of it may sound downright bizarre.

In the late 2000s, Argentina was facing a slew of economic problems. The president was a charismatic populist with bold plans and the will to act. One of the things then-President Cristina Kirchner wanted to tackle: unemployment. So she set out to create manufacturing jobs in Argentina.

She made a rule in 2010 that if a company wanted to sell things in Argentina, they needed to make things in Argentina.

Some companies didn’t play ball. Even though Argentina was a big and lucrative market, Apple said, ‘we’ll just sit this one out, we just won’t sell iPhones in Argentina at all.’ Other companies, though, decided to give it a try — to set up entirely new production operations within Argentina. One of them was the company that made Blackberry, the most popular phone in the country at the time. Making the high tech phones would mean good jobs for thousands of people.

President Kirchner didn’t just demand the phones were made in Argentina. She wanted the phones made in a very particular place in Argentina, all the way at the southernmost tip of the country. The government decided that is where she said the jobs should be created.

Article continues after sponsorship

Tierra del Fuego is home to penguins, grey skies and brutal winds. It’s the last stop for ships before making the final leg to Antarctica.

Today on the show, how a town at the ends of the earth wound up making Blackberry phones, and what happened to when a charismatic president launched a big plan to create jobs and boost manufacturing.

Music: “Call My Number” and “This Is Life.” Find us: Twitter/ Facebook.

Subscribe to our show on iTunes or PocketCast.

Let’s block ads! (Why?)


No Image

Boeing CEO Reportedly Listened In On Trump's F-35 Calls With Lockheed

NPR’s Robert Siegel speaks with Bloomberg reporter Anthony Capaccio about Trump’s calls to the general responsible for the Lockheed fighter jet program, with the Boeing CEO reportedly listening in.

ROBERT SIEGEL, HOST:

The F-35 is the most expensive weapon ever. It’s a fighter jet made by Lockheed Martin. President Trump has made it his personal mission to reduce its cost. Well, Bloomberg News reports today on one tactic the president has used. It’s the element of surprise. Last month, Trump made a phone call to the program’s manager, and listening in from Trump’s side was the CEO of Boeing, Lockheed Martin’s chief rival for military contracts.

Bloomberg Pentagon reporter Tony Capaccio joins us now having come from a hearing about the F-35 on Capitol Hill. Welcome to the program.

TONY CAPACCIO: Thank you.

SIEGEL: And tell us what you’ve learned about that phone call from Donald Trump.

CAPACCIO: Well, for one thing, the program manager, Air Force Lieutenant General Chris Bogdan – he confirmed to members that he did in fact receive two calls…

SIEGEL: At the hearing today.

CAPACCIO: …At the hearing today. And then afterwards, he talked to reporters. And what I picked up on was that he didn’t feel that the Boeing CEO’s listening in on the conversation – which was on speakerphone, by the way – was not inappropriate because nothing was discussed that was a decision point or that hadn’t already been publicly available.

SIEGEL: So General Bogdan says he didn’t find that inappropriate. What about Lockheed Martin?

CAPACCIO: We gave them the opportunity a couple times, and they declined to comment.

SIEGEL: You’ve been following the F-35 from its conception. I mean was it unusual for the CEO of the rival contractor to be on the room with the president – or the president-elect, in this case – talking to the person running the project?

CAPACCIO: I thought it was unusual, but given Trump’s operating style, he seems fairly impulsive. This was an example of an impulsive call.

SIEGEL: You’re saying the standard for unusual has moved in Washington.

CAPACCIO: It has. Now, I’ve been covering defense for about 30 years, and presidents do not call program managers.

SIEGEL: Yeah.

CAPACCIO: Defense secretaries do. Service secretaries do, but presidents don’t.

SIEGEL: Trump has taken credit for reducing the cost of the contract for the F-35 by $600 million. And in a press release earlier this month, Lockheed Martin said that Trump’s personal involvement in the program – this is a quote – “sharpened their focus on driving down the price.” Is Trump’s direct involvement making a big difference here, or was the price going to come down with or without him?

CAPACCIO: The price was going to come down with or without him. That contract – it was moving kind of like food through a snake. It was lurching over a year, and they were in the end game. Lockheed was agreeing to a lower price.

I can see where Mr. Trump’s involvement pushed it along because it became a national issue, whereas before, it was quietly negotiated behind closed doors. And the final Pentagon savings was $728 million, not 600. So I think he jumped on a train already moving, and he’s taking credit for probably pulling it into the station.

SIEGEL: Donald Trump was elected on the promise to drain the swamp. He ran as a disruptor. When he looks at defense contracting for big projects – I was going to say like the F-35, although I guess there is nothing quite like the F-35 – does he have a swamp in his sights when he talks – when he looks at these things?

CAPACCIO: The overall trend of weapons program overruns has decreased over the last four or five years. But this isn’t – you know, eternal vigilance is a good thing because companies and the Pentagon – sometimes they get a little too incestuous with each other, and they don’t – the Pentagon doesn’t oversee enough. They don’t slap the companies around enough, penalize them enough.

So a fresh set of eyes coming in is always a good thing. But you have to remember, as the president-elect and president, that these acquisition programs and the – who gets picked are governed by rules and regulations that can be challenged in court if the loser thinks…

SIEGEL: Yup.

CAPACCIO: …They were treated unfairly.

SIEGEL: That’s Tony Capaccio, a Pentagon reporter for Bloomberg News. Thanks for talking with us.

CAPACCIO: Thank you.

(SOUNDBITE OF NATE SMITH SONG, “BOUNCE: PARTS 1 + 2”)

Copyright © 2017 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Let’s block ads! (Why?)


No Image

Boeing Employees Vote Against Unionizing In South Carolina

Workers assemble Boeing 787s at the company’s plant in North Charleston, S.C., in 2015. Results of a vote released Wednesday show workers have rejected union representation.

Bruce Smith/AP

hide caption

toggle caption

Bruce Smith/AP

Updated 10 p.m. ET

The International Association of Machinists says workers at Boeing’s South Carolina plant have voted not to unionize.

In a video on the union’s Facebook page, lead organizer Mike Evans says the workers have decided “at this time they don’t need representation,” and he says the IAM respects the process. He tells workers that the company should “pay attention to your issues and make Boeing a better place, not just for a few, but for everybody.”

Boeing released a statement saying that 74 percent of employees who voted rejected the union, adding:

“”We will continue to move forward as one team,” said Joan Robinson-Berry, vice president and general manager of BSC. “We have a bright future ahead of us and we’re eager to focus on the accomplishments of this great team and to developing new opportunities.

“Friday we will mark the most recent incredible accomplishment in the proud history of the BSC team with the rollout of the first 787-10,” said Robinson-Berry. “It is great to have this vote behind us as we come together to celebrate that event.”

President Trump is expected to visit the plant on Friday for that event.

Article continues after sponsorship

Alexandra Olgin of South Carolina Public Radio reported that the IAM had promised “nearly 3,000 workers at Boeing respect, wages and consistency. The IAM reports it represents 35,000 workers at 24 Boeing locations around the country.”

“The state has the lowest union membership rate in the country,” Alexandra reported for NPR’s All Things Considered. “Around Charleston, Boeing [had] billboards, T-shirts and ads criticizing the IAM. And the union [countered] with its own rallies and ads.”

Let’s block ads! (Why?)


No Image

Indian IT Outsourcers Anxious Over Potential Changes To H1-B Visas

Members of the Indian media watch Rajiv Bansal, then the CFO of Infosys, during the announcement of the company’s first quarter results in July 2014 in Bangalore. Indian software services firms draw tens of billions of dollars in revenue from U.S. contracts each year, and that’s partly reliant exporting computer science talent on H1-B visas.

Manjunath Kiran/AFP/Getty Images

hide caption

toggle caption

Manjunath Kiran/AFP/Getty Images

With the Trump administration vowing to tighten rules for skilled workers entering the United States, India’s software services companies are worried. Indian IT giants outsource tens of thousands of tech specialists to the United States each year, and limiting the visa program that brings them in could disrupt their multibillion-dollar industry.

Congress and the White House have targeted what is arguably the most coveted of U.S. visas: the H1-B. It’s “a kind of temporary work visa that allows professionals from other countries to work in the United States for a designated U.S. employer,” explains Stephen Yale-Loehr, a Cornell University immigration law professor.

Yale-Loehr says that with the economy strengthening, the program is in particularly big demand. Last year, U.S. companies that sought to bring highly skilled workers to the U.S. filed 236,000 petitions that went into a lottery for just 85,000 H1-B visas, the legal cap. The bulk of the winners: Indian computer specialists, many of them graduates of U.S. universities.

Yale-Loehr says that places like Europe and Australia have special visas to attract such talent, but that the United States doesn’t.

Article continues after sponsorship

“We have to shoehorn high-tech workers into categories like the H1-B, and it’s getting more difficult every year,” he says.

For many H1-B holders, the temporary work visa — issued for a maximum of six years — has been a stepping stone to obtaining a green card. That grants permanent residence in the U.S., and in turn provides a path to citizenship.

But newly introduced legislation in Congress and drafts of executive orders reportedly circulating in the Trump White House that could limit the H1-B program.

Executives from the software services firms will travel to Washington this month to lobby against measures that threaten one of India’s most successful industries — which last year earned 60 percent of its $108 billion in export revenues from the U.S.

One bill proposes more than doubling the minimum wage of H1-B holders, which by law is set at $60,000. Critics argue the H1-B has been misused to displace American workers, and that there has been an incentive to prefer Indian IT workers because they are cheaper.

Shailesh Chitnis, with the data mining and analysis company Compile, says that while the median salary for all H1-B holders is $71,000, most but not all Indian outsourcers pay below that. If they had to double salaries, Chitnis says, Indian IT companies would have to change their 20-year-old business model.

“Because these organizations are not going to be bringing in people at $120,000 to fill those jobs — it would simply be too expensive,” he says. “They’ll have to look at some other alternatives.”

But Shevendra Singh with India’s National Association of Software Services Companies, or NASSCOM, refutes allegations that Indian companies are dislocating American workers or supplying low-paid labor. Singh says there is demand in the U.S. for Indian technical talent because of a severe shortage of qualified Americans with degrees in science, technology, engineering and math.

“The crux of the issue is the STEM skill shortage in the U.S.,” Singh says.

In its 2012 report, the U.S. president’s Council of Advisors on Science and Technology found that “fewer than 40-percent of students who enter college intending to major in a STEM field complete a STEM degree.” The council concluded that by 2022, economic forecasts suggested a need to produce “approximately 1 million more college graduates in STEM fields than expected under current assumptions.”

R. Chandrashekhar, president of NASSCOM, says that if the skills aren’t available in the U.S. — and companies can’t bring workers in — the jobs either won’t get done or they will go out of the country and be done remotely.

“Talent has become more important than investment or trade,” he says. “And those who consciously cut themselves off from the global supply chains of talent are depriving themselves of a good thing.”

Chandrashekhar notes that the intermingling of American and Indian ingenuity helped build Silicon Valley, and saysprotectionist impulses could weaken the United States, and what makes it unique.

“America is No. 1,” Chandrashekhar says. “What has really helped them to rise, absolutely, to the top, is that they have attracted talent from across the world. … It would be really a pity if that was reversed without thinking it through.”

Immigration expert Yale-Loehr, co-author of a 21-volume treatise on immigration law, agrees that the United States faces a crisis in maintaining its innovative and competitive edge, and says it should be inviting more, not less, IT talent to its shores.

“In a globalized economy, the best and the brightest want to work in the best places — and if they’re unable work in the United States, or it takes too long or is too difficult, they’ll find a place in Canada or Europe or India where their talents can be appreciated,” he says.

If implemented, Yale-Loehr says the draft executive order would initiate a review of the H1-B program but likely have no direct, immediate impact.

However, he says “it sends a strong signal that we no longer like foreign workers — we’re all about only U.S. workers.

“That is eventually going to hurt us.”

Let’s block ads! (Why?)


No Image

Episode 754: I'm So Happy For You!

Valentine’s Day candy.

Melissa Deakin Photography/Getty Images

hide caption

toggle caption

Melissa Deakin Photography/Getty Images

Regret. Self-loathing. Jealousy. Love. Happy Valentine’s Day! We have it all.

When we’re not making podcasts, we’re reading and watching and listening to stories on other podcasts and magazines and websites. And when we love something, we always ask, “Why didn’t we do that?”

Today on the show, we bring you the little stories that we love so much we wish we had thought of them ourselves.

Our valentines go out to:

  • Ann Wroe, The Economist’s obituary writer, who reveals the secret of distilling a life into a page.
  • Timothy W. Martin’s story about a pension fund manager who does nothing all day, and is beating everyone.
  • Ernie Smith, the founder of Tedium, who makes the boring fascinating.
  • Ryan Staake, who directed the video for Young Thug’s ‘Wyclef Jean’out of more or less, nothing.
  • Tanner Braungardt, a young, Kansas-based YouTube star who has built a miniature media empire out of his friends and his obsession with back flips and trampolines.
  • Reductress, a satirical women’s magazine. Kind of like The Onion meets Cosmo.
Article continues after sponsorship

*Note: We got the whole idea from Bloomberg BusinessWeek’s annual “Jealousy List.” Yeah, we were jealous of it.

Music: “Hep Cat“, “Run for the Levee” and “Move On.” Find us: Twitter/ Facebook.

Let’s block ads! (Why?)


No Image

The Week Of Blurred Lines Between President Trump And Businessman Trump

In the past week, Trump adviser Kellyanne Conway used a news interview to encourage people to buy Ivanka Trump products, and President Trump hosted Japan’s Shinzo Abe at his Mar-a-Lago resort.

LOURDES GARCIA-NAVARRO, HOST:

President Trump spent yesterday golfing with Japanese Prime Minister Shinzo Abe in Florida. The visit has been controversial because Abe’s staying at Mar-a-Lago, the president’s resort in Palm Beach. It’s the latest example of the blurred lines between Trump’s businesses and his role as president. We’re joined by NPR’s Jim Zarroli, who’s been covering the story. Hey, Jim.

JIM ZARROLI, BYLINE: Good morning.

GARCIA-NAVARRO: OK. What’s the problem with President Trump hosting a world leader at Mar-a-Lago?

ZARROLI: Well, this is a property that Trump owns. It’s one of his flagship properties. You know, George W. Bush used to have world leaders – people visiting him at his ranch in Texas. But this is different because this is a working business that Trump owns. So the question that comes up is, who is paying for it? And is Donald Trump making money off an official state visit?

And then, really, this is just one more example of the problems that ethics experts have been talking about ever since Trump was elected. He has a lot of businesses, and he’s going to have a lot of opportunities to profit off the presidency.

GARCIA-NAVARRO: All right. Well, who is paying for this particular visit? Has Trump responded to the criticism?

ZARROLI: Yeah. He came out and said he would pay for the rooms himself, which addresses part of the problem but not all of it because, even if he does pay for the rooms, this is really good publicity for Mar-a-Lago. It’s worldwide publicity. It’s the kind of publicity that money can’t buy. So ethics experts say he is still benefiting from having the prime minister there. And that’s a problem.

GARCIA-NAVARRO: All right. The president also owns a hotel in Washington, D.C. And that’s raised more ethical concerns. This week, NPR’s Peter Overby reported that President Trump has put the hotel into what’s called a revocable trust. What is that? What does it mean? And is that hotel no longer an issue?

ZARROLI: Yeah. The D.C. hotel has been a particular problem because it is owned by the federal government. It’s a former post office. And Trump leased the building from the General Services Administration. And the lease says that the president or vice president or elected official isn’t supposed to be on the lease. So there’s a problem there right away.

Now, to address this, the president has turned over the management of the hotel to one of his sons. He’s also placed the hotel in the revocable trust. That’s meant to sort of create a barrier between the property itself and the president. But it doesn’t really do that because the profits of the hotel still flow to the trust, which flows to Trump himself. And as the name implies, he can revoke it at any time he wants. So that doesn’t really address the ethical issues.

And there’s still a big question mark about – you know, what is the General Services Administration going to do? How are they going to handle this? There have been reports that the Trump Organization is in negotiations with the GSA to try to come up with some kind of solution to the problem. It’s not clear what they’re going to do.

You know, in the past, they’ve sort of come up with some half solutions to address issues like this – haven’t always been, you know, satisfying to ethics people. But we may see some kind of resolution to this, you know – and soon.

GARCIA-NAVARRO: All right. NPR’s Jim Zarroli, thanks so much for joining us.

ZARROLI: You’re welcome.

(SOUNDBITE OF THE BAD PLUS’S “NEVER STOP”)

Copyright © 2017 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

A worker cleaned the windows of the Ivanka Trump Collection in the lobby of Trump Tower in New York last month.

Andrew Harnik/AP

hide caption

toggle caption

Andrew Harnik/AP

Updated at 8 p.m. ET

Kellyanne Conway, a top adviser to President Trump, may have violated federal ethics rules Thursday when she urged shoppers to buy Ivanka Trump’s retail brand, following the decision by several retail companies to drop the line because of poor sales.

“Go buy Ivanka’s stuff, is what I was [saying] — I hate shopping and I’m going to go get some myself today,” Conway said in an interview on Fox & Friends.

“This is just [a] wonderful line,” she added. “I’m going to give a free commercial here. Go buy it today, everybody. You can find it online.”

Her comments drew sharp criticism from the chairman of the House Oversight Committee, Republican Jason Chaffetz. “That is absolutely wrong, wrong, wrong. It is over the top,” Chaffetz told reporters.

Chaffetz and the committee’s ranking minority member, Democrat Elijah Cummings, asked the U.S. Office of Government Ethics in a letter to determine whether disciplinary action should be brought against Conway.

“Conway’s statements clearly violate the ethical principles for federal employees and are unacceptable,” the letter said.

“In this case, there is an additional challenge, which is that the President, as the ultimate disciplinary authority for White House employees, has an inherent conflict of interest since Conway’s statements relate to his daughter’s private business,” it said.

White House press secretary Sean Spicer said Thursday that Conway had been “counseled” over her remarks.

Conway, interviewed later Thursday, again on Fox, said she would have no comment on the counseling but had “spent an awful lot of time with the president of the United States this afternoon and he supports me 100 percent.”

Federal ethics rules bar executive branch employees from profiting off their positions, but the statute exempts the president.

Conway, however, is a White House employee, and her comments urging people to buy the products appear to violate the rules, says Kathleen Clark, professor of law at Washington University in St. Louis.

“The ethics regulation says government employees must not endorse any product, service or enterprise,” Clark told NPR in an interview. She added:

“The broader rule is that government employees shouldn’t use public office for private gain. They shouldn’t use it for their own personal private gain or for somebody else’s private gain. Public office should be used for the good of the public, for the good of the country, for the good of the government, rather than singling out her boss’s daughter’s enterprise and encouraging people to shop Ivanka.”

Clark also noted that Trump’s tweet Wednesday about his daughter was retweeted by someone from the official White House account @POTUS.

“That was a violation of the ethics regulation if it was done by anybody other than the president or the vice president. But even if the president himself did that, it was improper, because there he is using a government resource for his own personal vendetta,” she said.

Meanwhile, the progressive group Public Citizen urged the U.S. Office of Government Ethics to investigate whether Conway’s comments violated the rules.

“Anyone harboring illusions that there was some separation between the Trump administration and the Trump family businesses has had their fantasy shattered,” said Robert Weissman, the organization’s president.

“Kellyanne Conway’s self-proclaimed advertisement for the Ivanka Trump fashion line demonstrates again what anyone with common sense already knew: President Trump and the Trump administration will use the government apparatus to advance the interests of the family businesses.”

In the Fox interview, Conway suggested retailers are dropping the line because of politics.

“They’re using her, who’s been a champion for women in power and women in the workplace, to get to him. I think people can see through that,” she said.

T.J. Maxx and Marshalls told employees last week to stop using signs promoting Ivanka Trump’s brand and mix in her products with others the store sells to make them less prominent.

Nordstrom has also said that it would no longer sell Ivanka Trump jewelry and clothing because sales have been disappointing. Neither the company nor Ivanka Trump’s brand released any sales figures.

The line is still carried by other retailers.

After Nordstrom’s decision, President Trump himself tweeted that his daughter “has been treated so unfairly” by the chain, and his son Donald retweeted an article Thursday about angry store customers cutting up their credit cards.

It’s not clear how shoppers will react to the clothing controversy.

Outside a Marshalls store in Washington, D.C., a housewife from Argentina wasn’t impressed by all the controversy.

“If I like it, I buy it. If I don’t, I don’t,” said Andrea Ponzio, 47. “It doesn’t mean I wouldn’t buy it because of any politics.”

NPR intern Lucia Maffei contributed to this report.

Let’s block ads! (Why?)


No Image

Trump, GOP At Odds Over “Border Adjustment” Tax

President Donald Trump, Commerce Secretary nominee Wilbur Ross and senior advisor Jared Kushner attend a meeting with Senate and House legislators, in the Roosevelt Room at the White House, February 2, 2017 in Washington, D.C. Lawmakers included in the meeting were Sen. Orrin Hatch (R-UT), Rep. Kevin Brady (R-TX), Sen. Ron Wyden (D-OR) and Rep. Richard Neal (D-MA).

Drew Angerer/Getty Images

hide caption

toggle caption

Drew Angerer/Getty Images

On Thursday, President Donald Trump told airline executives visiting the White House that tax relief for corporate America is on the way.

“We’re going to be announcing something, I would say over the next two or three weeks,” said Trump, adding that it would be “phenomenal.”

But there’s at least one big issue that stands in the way. It’s called the border adjustment tax. House Republican leaders want it, but the President and some other Republicans are skeptical.

There’s no doubt that President Trump and House Republican leaders are interested in a border tax. The question is what kind. Trump wants to tax imports to punish individual countries, like Mexico, and pay for his border wall.

House Republican leaders have a much more dramatic idea. They would levy what they call a “border adjustment tax” of 20 percent on imports from all countries.

Texas Rep. Kevin Brady, chairman of the House Ways and Means Committee, is a big supporter of this approach. In an interview with NPR, Brady said that right now, “American companies and workers are competing with one hand tied behind their backs, because our tax code is so outdated.”

Article continues after sponsorship

Brady says many of our trading partners use a value-added tax (VAT) that taxes U.S. goods and services, while subsidizing their own exports. Brady argue that unfairly penalizes U.S. products.

Many leading economists, from President Reagan’s former White House adviser, Martin Feldstein, to liberal economist Paul Krugman, say that’s a mistaken understanding of how the VAT tax works. They say U.S. companies are not disadvantaged.

Nevertheless, Brady and House Speaker Paul Ryan have proposed a 20 percent “border adjustment tax” that they believe is necessary to level the playing field.

“Foreign products shouldn’t get a tax break in our tax code.” says Brady. “Our proposal eliminates those tax incentives and creates true competition in the U.S.”

And here’s the bonus … and one of the keys to tax reform. A 20 percent tax on all imports would produce an estimated $1.2 trillion dollars over 10 years, enough to offset much of the loss in revenue from the big reduction in tax rates that Republicans want, including dropping from a 35 percent rate to 20 percent for corporations.

But, rate cuts without that revenue, would mean a major increase in federal deficits, causing heartburn for the party’s deficit hawks.

Now critics, including some aligned with big Republican contributors like the Koch brothers, say, ‘Wait a minute.’ To a great extent, U.S. consumers will bear the brunt of a tax on imports. They’ll end up paying higher prices for things like imported cars, clothes and food. Businesses that import products could also be hurt, including businesses from retailers and petroleum refineries, including those owned by Koch Industries.

Rep. Brady disagrees.

He points to economic theory that suggests the U.S. dollar would rise and offset the added cost for U.S. consumers. But another heavyweight critic, former Republican presidential candidate Steve Forbes, scoffed at that idea in an interview this week on CNBC.

He expressed disbelief at “the idea that these guys in Washington know what the dollar is going to do in the exchange market,” when there are “zillions of factors” determining exchange rates. “I mean the volumes … in currencies each day is over $5.3 trillion,” said Forbes. “These guys are going to figure that out in its intricacies?”

And, Forbes said, the border adjustment tax is raising unnecessary divisions among Republicans and threatening the effort to cut taxes.

“So drop it,” Forbes says. “Do a straight vanilla tax cut. We’ve done that before and it works.”

Most important among the skeptics is President Trump. He has said he “doesn’t love the border adjustment tax,” calling it “too complicated.”

Brady believes he’s making progress on winning over the President. But he acknowledges if he can’t convince Trump to accept the border adjustment tax, with its $1.2 trillion dollars in revenue, the big tax cuts Republicans want for businesses and individuals could be in danger.

Let’s block ads! (Why?)


No Image

Mike Ilitch, Little Caesars Founder, Detroit Tigers And Red Wings Owner, Dies

Owner Mike Ilitch of the Detroit Red Wings celebrates with the Stanley Cup in 2008 after the team defeated the Pittsburgh Penguins in six games. The team won four NHL titles under his ownership. His Detroit Tigers teams made it to two World Series. Dave Sandford/Getty Images hide caption

toggle caption

Dave Sandford/Getty Images

Mike Ilitch, founder of Little Caesars Pizza and a former minor-league baseball player who went on to own the Detroit Tigers and Red Wings, has died, reports WDET’s Pat Batcheller.

Ilitch, born in Detroit to Macedonian immigrants, opened his first pizza store with his wife, Marian, in the Detroit suburb of Garden City in 1959, Pat reports; today Little Caesars’ parent company says it’s the world’s largest carryout pizza chain.

Business was so good that Ilitch eventually was able to purchase the Detroit Red Wings hockey team in 1982, and a decade later baseball’s Detroit Tigers — the same team he once had a minor-league contract with, Pat reports. He acquired the Tigers from business rival Tom Monaghan, whose own Domino’s Pizza got its start in Ypsilanti, Mich., a year later and less than 25 miles from Ilitch’s first store.

Christopher Ilitch, one of Mike and Marian Ilitch’s seven children, will take over operations for the businesses, the Detroit Free Press reports.

NPR thanks our sponsors

Let’s block ads! (Why?)


No Image

In Austin, A Boom In Short-Term Rentals Brings A Backlash

Austin is phasing out and banning short-term rentals, causing some owners to fight back. Other homeowners will be glad to see them go. In East Austin, this type of rental property is mixed in with regular homeowners Jorge Sanhueza-Lyon/KUT News hide caption

toggle caption

Jorge Sanhueza-Lyon/KUT News

Kristen Hotopp stands in the front yard of her well-worn East Austin home, where she has lived for the past 17 years. She points across the street at an attractive, nearly new, two-story home — by far the nicest on the block.

“There are two units on this lot,” Hotopp says. “There’s a house in the back that’s smaller and a house upfront. We’re getting investors descending upon the area and buying up a lot of these properties.”

Like many fast-growing regions, the state of Texas is grappling with the growing market for short-term home and condo rentals like those listed on Airbnb and HomeAway. That has especially been true in Austin.

Even though Hotopp’s working-class neighborhood is close to Sixth Street and other Austin music districts, she has lived quietly with her husband and young son. But that changed two years ago when the new house across the street turned out to be a short-term-rental property. Suddenly, the good times on Sixth Street were rolling back to her block at 2 a.m.

Article continues after sponsorship

“You have large groups of people there screaming in the middle of the night,” Hotopp says. “They’re here to party. They bring people back with them to the property when the bars close downtown and it just becomes kind of an all-night thing.”

The parade of loud, inebriated, door-slamming renters got old quick. Hotopp complained to city officials more than 30 times.

Over the past five years, experiences like Hotopp’s have become a rallying cry for Austin’s well-organized and politically powerful neighborhood associations.

“We believe they’re essentially commercial hotels embedded in our neighborhoods,” says David King, president of the Austin Neighborhoods Council, which represents nearly 100 neighborhood associations.

Fifty years ago Austin was a sleepy college town flowing to the seasonal rhythm of its state university. Now, it’s an economic and cultural powerhouse and burgeoning tourist destination. Austin’s property values and taxes are through the roof. The city’s musicians and working class are being priced out.

In 2012, the City Council moved to regulate — requiring short-term-rental owners to get a permit, pay hotel taxes and limiting density to no more than 3 percent of any given neighborhood. But Mayor Pro Tem Kathie Tovo says these regulations didn’t go far enough.

“You know we have a housing shortage here in Austin,” Tovo says. “We are working on issues related to affordability and then to have a policy on the books that takes available housing stock and makes it unavailable for renters, for property owners is not in the best interest of Austin residents.”

So last year the council voted to ban these so-called Type 2 rentals. Current licensed operators will be phased out. And that has triggered lawsuits and legislative action in response.

“We sued because the city ordinance goes too far and tramples on the constitutional rights of our clients who both own and operate short-term rentals and also serve as guests of short-term-rental properties,” says Rob Henneke, director at the Texas Public Policy Foundation, an influential conservative think tank in Austin.

The lawsuit is against the city of Austin, and the state of Texas has gotten involved. Henneke says that as suburbia exploded across the nation’s landscape in the 1950s, it became an American folkway for single-family-home owners to disdain renters, with a mindset of, “If they can’t afford to buy, they’re not our type of people.”

Henneke argues now that the attempt to discriminate involves not the renter’s color or class but the duration of the rental.

“Occupying a house as a short-term renter is completely consistent as a residential activity and fits within the purpose of single-family residential zoning,” he says.

Joel Rasmussen, 46, and his wife bought their duplex in the Travis Heights neighborhood after they fell in love with the midcentury modern style. They also bought the ones next to it.

The hills of South Austin are full of these modest, charming homes. On the outside, there’s nothing to distinguish Rasmussen’s units from the neighbors’, but inside is an upscale boutique.

“Vaulted ceilings, lots of natural light coming in from the outside — people really love this textured wall,” Rasmussen says. “It has a very kind of Jetsons or 1960s feel. It’s actually recycled bamboo panels.”

The two-bedroom, one bath goes for $195 a night and guests park under the carport, not on the street. Rasmussen says he has never had a complaint and that even the neighbors sometimes put their visitors in his rentals because the homes in the area run small.

“In fact, the neighbors that live just on the other side of that property have two children,” Rasmussen says. “When baby No. 1 was born, Mom and Dad came and stayed for three weeks, and when baby No. 2 was born the grandparents came again and stayed for three weeks to welcome the grandbabies.”

In Rasmussen’s unit next door, Kathy Arena sits outside reading a book on the wraparound deck in Austin’s warm winter sun. She’s from Cedarburg, Wis., and, along with her husband, has escaped the frozen tundra to bask for a winter’s month in Austin’s glow for the past three years.

“It’s just been so smooth and we’ve stayed in the same place each time,” Arena says. “So, another thing I like about Austin is all ages commingle. Everyone is so nice to everybody. We’ve made all sorts of new friends here.”

The battle over whether these types of short-term-rental properties should be allowed is being fought in court and the Texas Legislature. A bill has been filed by Republican State Sen. Kelly Hancock that would prohibit Texas cities from banning them outright. And as the rulings in state courts have been contradictory, it’s likely the Texas Supreme Court will have to have the final word.

Let’s block ads! (Why?)