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Thin ice for new acting AG? Trump says ‘I don’t know’ him

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WASHINGTON — Matthew Whitaker’s future at the helm of the Justice Department appeared uncertain at best Friday as President Donald Trump denied even knowing the man he had named acting attorney general just two days earlier. The Senate’s top Republican predicted a permanent replacement could be named soon for Whitaker, who is now overseeing the Trump-Russia probe.

The comments from Trump and Senate Majority Leader Mitch McConnell came as Whitaker’s past business ties and remarks on special counsel Robert Mueller’s Russia investigation and other topics were drawing scrutiny from Democrats and ethics groups.

Speaking to reporters Friday, Trump said, “I don’t know Matt Whitaker.” That contradicted Trump’s remarks on Fox News last month, when he called Whitaker “a great guy” and said, “I mean, I know Matt Whitaker.”

McConnell, meanwhile, said, “I think this will be a very interim AG.” Another Republican senator, Susan Collins of Maine, said she was concerned by some of Whitaker’s past comments and called for legislation that would place limits on his ability to fire special counsel Mueller. That would include specifying that only a Senate-confirmed Justice Department official — which Whitaker is not — could dismiss Mueller.

Whitaker, a Republican Party loyalist and chief of staff to just-ousted Attorney General Jeff Sessions, was elevated Wednesday after his boss was forced from his job by Trump. The new position handed him oversight of Mueller’s investigation into possible ties between Russia and Trump’s 2016 presidential campaign.

Since Wednesday, Whitaker has faced pressure from Democrats to recuse himself from overseeing Mueller based on critical comments he made about the investigation before joining the Justice Department last year.

Those included an op-ed article in which he said Mueller would be straying outside his mandate if he investigated Trump family finances and a talk radio interview in which he maintained there was no evidence of collusion between the Kremlin and the Trump campaign. He also tweeted an ex-prosecutor’s opinion piece that described a “Mueller lynch mob,” which he said was “worth a read.”

There have also been reports about Whitaker’s past comments questioning the power and reach of the federal judiciary, and about his ties to an invention-promotion company that was accused of misleading consumers. The Wall Street Journal on Friday published an email revealing an FBI investigation into the company, World Patent Marketing Inc. The July 10, 2017, email was from an FBI victims’ specialist to someone who the newspaper said was an alleged victim of the company. A Justice Department spokeswoman told the Journal that Whitaker was “not aware of any fraudulent activity.”

Also Friday, The Associated Press reported that Whitaker repeatedly chided presidential candidate Hillary Clinton in public statements during 2016 while he was speaking for a group that is barred by its tax-exempt status from supporting or opposing political candidates during a campaign.

Whitaker himself stayed out of the public debate Friday. He sent a department-wide note after his appointment in which he said, “As we move forward, I am committed to leading a fair Department with the highest ethical standards, that upholds the rule of law, and seeks justice for all Americans.”

Legal scholars are debating the constitutionality of his appointment, with some lawyers saying it is illegal because he has not been confirmed by the Senate.

Despite Trump’s current distancing himself from Whitaker, two Republicans close to the president said he had enjoyed Whitaker’s TV appearances and the two had struck a bond. Those TV appearances included one on CNN in which Whitaker suggested that the Mueller probe could be starved of resources.Trump told associates that he felt Whitaker would be “loyal” and would not have recused himself from the Russia pr obe as Sessions had done, according to the Republicans, who were not authorized to speak publicly about private conversations and commented only on condition of anonymity.

On Friday, Trump said he had not spoken with Whitaker about Mueller’s investigation, which until now has been overseen by Deputy Attorney General Rod Rosenstein. Later in the day, Trump tweeted that he did not know Whitaker personally, but several Republican leaders in Iowa respected him. “I feel certain he will make an outstanding Acting Attorney General!”

Rosenstein told reporters Friday that based on his experiences with Whitaker, “I think he’s a superb choice for attorney general.”

Of the scrutiny Whitaker is facing, Trump said, “It’s a shame that no matter who I put in they go after.”

“He was very, very highly thought of, and still is highly thought of, but this only comes up because anybody that works for me, they do a number on them,” Trump said.

In Kentucky, meanwhile, McConnell said he expects Trump to nominate a new permanent attorney general “pretty quickly.” McConnell said he expects Whitaker to be “a very interim” appointee.

“The president has said repeatedly he’s not going to dismiss the Mueller investigation,” McConnell told reporters at Kentucky’s Capitol. “He’s said repeatedly it’s going to be allowed to finish. That also happens to be my view.”

Trump has not said whom he will nominate to permanently replace Sessions.

Former New Jersey Gov. Chris Christie is said to be a candidate, along with Labor Secretary Alex Acosta and Health and Human Services Secretary Alex Azar, among others.

Trump told reporters he has not discussed the post with Christie, who he said was “a friend of mine” and “a good man.”

____

Associated Press writer Bruce Schreiner contributed to this report from Frankfort, Kentucky.

Eric Tucker And Jonathan Lemire, The Associated Press






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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

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From the Canadian Taxpayers Federation

By Carson Binda 

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

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From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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