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WASHINGTON (AP) — The Trump administration has laid down rules aimed at preventing residents in high-tax states from avoiding a new cap on widely popular state and local tax deductions. The action over the new Republican tax law pits the government against high-tax, heavily Democratic states in an election-year showdown.The Treasury Department's rules released Thursday target moves by states like New York, New Jersey and California — where residents could see substantial increases in their federal tax bills next spring because of the ,000 cap on state and local deductions. Experts say the issue likely will have to be resolved by the federal courts.Four states — Connecticut, Maryland, New Jersey and New York — already have sued the federal government over the deduction cap, asserting it's aimed at hurting a group of Democratic states and tramples on their constitutional budget-making authority.A dozen states have taken or are considering measures to get around the cap. Most of the workarounds take advantage of federal deductions for charitable contributions — which aren't capped — in place of the old deductions for paying state and local income taxes. So people's state and local taxes exceeding ,000, which can't be deducted, are turned into deductible charitable donations.The new rules' "dollar-for-dollar" limit also applies to many other states that already have charitable funds offering tax breaks, senior Treasury officials said. Those states include solidly Republican ones and others with relatively low taxes. In those programs, donors to schools, hospitals or land conservation programs can get their state taxes reduced in return — plus a charitable deduction on their federal tax returns.The limit means taxpayers only can deduct as a charitable contribution the portion of their donation for which they don't also get a state tax credit.But some experts said the Treasury rules seem to be designed to protect those existing charitable programs in some states. An exception to the "dollar-for-dollar" requirement "plainly appears to be designed to protect certain ... pre-existing state regimes," said Daniel Rosen, a tax lawyer at Baker McKenzie who is a former IRS official.Treasury said it expects that only about 1 percent of all U.S. taxpayers would see a reduction of their tax credits for donations to private-school voucher fund. Several states — Alabama, Arizona, Georgia, Montana and South Carolina — allow taxpayers who donate to private-school funds to get a 100 percent credit against their state taxes, according to data compiled by the Institute on Taxation and Economic Policy.___HOW DO THE LIMITS WORK UNDER THE NEW RULES?Dollar-for-dollar: When a taxpayer receives a benefit in return for donating to charity, the taxpayer should only be able to deduct the net value of the donation as a charitable contribution, Treasury says.An example: You donate ,000 to a charity in a state that offers a 70 percent tax credit, so 0 in this case. You would only be able to claim a 0 charitable deduction on your federal return.There is an exception. If the state tax credits don't exceed 15 percent of the amount donated, so up to a 0 state tax credit on a ,000 donation, the taxpayer could claim the full amount as a charitable deduction.___WHY IS THIS IMPORTANT?Taxpayers could have less incentive to donate without getting a deduction or having the deduction reduced.All states rely on property and income taxes to fund an array of services such as education, health care and public safety. Advocates for restoring the full state and local deductions say that the reduced property tax deduction brings a decrease in the value of taxpayers' homes, possibly spurring residents of high-tax states to move elsewhere and crimping funding for local programs.___WHAT'S HAPPENING IN THE HIGH-TAX STATES?Measures designed to work around the ,000 cap have been adopted in Connecticut, New Jersey, New York and Oregon, and introduced or explored publicly by officials in California, Illinois, Maryland, Nebraska, Rhode Island, Virginia, Washington and the District of Columbia.New York Gov. Andrew Cuomo, a Democrat, has called the state-local deduction cap an "assault" on New York by Trump and Republican lawmakers in Washington.In some key "blue" states:—Connecticut has a new law establishing a state charitable fund; donors can get tax credits in exchange for giving.—In New Jersey, where high local property taxes are the major issue, the state is allowing local schools and governments to use the charitable workaround. But so far, no towns have notified authorities that they've set up funds to receive contributions — because state regulators haven't issued the necessary rules, experts say.—New York is offering three options: One like Connecticut's, one like New Jersey's and another to let employers pay payroll taxes for employees, who would receive credits to cancel out the income taxes they would have paid otherwise.—In Maryland, about 500,000 residents — over 18 percent of state taxpayers — will together lose .5 billion in state and local deductions, according to state estimates.___Mulvihill reported from Cherry Hill, New Jersey. Associated Press writer Michael Catalini in Trenton, New Jersey, contributed to this report. 5305

WASHINGTON (AP) — The official serving as President Donald Trump’s eyes and ears at the Justice Department has been banned from the building after trying to pressure staffers to give up sensitive information about election fraud and other matters she could relay to the White House, three people familiar with the matter tell The Associated Press.Heidi Stirrup, an ally of top Trump adviser Stephen Miller, was quietly installed at the Justice Department as a White House liaison a few months ago. She was told within the last two weeks to vacate the building after top Justice officials learned of her efforts to collect insider information about ongoing cases and the department’s work on election fraud, the people said.Stirrup is accused of approaching staffers in the department demanding they give her information about investigations, including election fraud matters, the people said. They spoke on condition of anonymity because they were not authorized to publicly discuss the matter.The effort came as Trump continues to level baseless claims that he won the election and alleges without evidence that massive voting fraud was responsible for his defeat to President-elect Joe Biden.Stirrup had also extended job offers to political allies for positions at some of the highest levels of the Justice Department without consulting any senior department officials or the White House counsel’s office and also attempted to interfere in the hiring process for career staffers, a violation of the government’s human resources policies, one of the people said.The Justice Department declined to comment. Attempts to reach Stirrup for comment were not immediately successful. 1686

WASHINGTON, D.C. – During a Thursday afternoon press conference, President Donald Trump defended the controversial comments he made during a Bob Woodward interview.In his new book, “Rage,” Woodward reports that Trump admitted he knew weeks before the country’s first COVID-19 death that the virus was dangerous, airborne, highly contagious and “more deadly than even your strenuous flus,” CNN and the Washington Post report.And in audio released of their March 19 interview, Trump is heard saying, “I wanted to always play it down. I still like playing it down, because I don’t want to create a panic.”Trump said Thursday that if Woodward thought him downplaying COVID-19 was bad, he should have reported his comments earlier."If Bob Woodward thought what I said was bad, then he should have immediately, right after I said it, gone out to the authorities, so they can prepare and let them know," he told reporters who asked why he lied to the American public.The president said he didn’t want to cause a panic.“You don’t want me jumping up and down, saying there’s going to be great death, and really causing some serious problems for the country,” said Trump.When asked if he will downplay COVID-19 again, Trump said, “I don’t want to jump up and down, and start screaming ‘death,’ ‘death,’ because that’s not what it’s about. We have to lead a country.”Watch the press conference below:Apart from Woodward’s book, Trump said that there will be a signing at the White House next week between United Arab Emirates (UAE) and Israel. He added that, “we could have another country added into that.”Trump also took the opportunity to attack his general election opponent, former Vice President Joe Biden, on the Obama administration’s handling of the swine flu. The president believes “countless more Americans would have died” if the Democratic nominee was president during the COVID-19 pandemic.Additionally, Trump touched on students returning to universities, where large outbreaks have been reported and schools have been forced to quarantine students and turn to online learning.“Based on the recent data from more than 20 colleges, not a single who student who has tested positive has been hospitalized,” said Trump.The press conference came after a The event comes after an active morning on Twitter, during which Trump talked about a variety of things, including Kim Jong Un’s “good health” and his interview with Woodward.Meanwhile, the country’s COVID-19 death toll is nearing 200,000 and Congress remains at a standstill regarding a fifth coronavirus rescue package.Thursday, Senate Democrats scuttled a scaled-back GOP package, saying the measure shortchanges too many pressing needs caused by the pandemic. The vote for the bill was 52-47, showcasing the partisan divide leading up to the general election.It’s likely lawmakers won’t settle on a deal before Election Day, The Associated Press reports. 2920

WASHINGTON (AP) — President Donald Trump has welcomed Poland's president to the White House, and sending more U.S. troops to Poland to bolster NATO's eastern flank against Russian aggression is at the top of their agenda.Even before Andrzej Duda arrived, the U.S. ambassador to Poland said the U.S. will send another 1,000 troops to Poland — over and above the 1,000 declared last year.But the troops might not necessarily be transferred from Germany, where Trump is planning to withdraw about 10,000 U.S. troops.This is Duda’s third visit to Washington since Trump took office and the first head of state visit at the White House since the pandemic began.Trump and Duda are expected to hold a joint press conference at about 3:30 p.m. ET at the White House. Watch it live below: 787

WASHINGTON, D.C. -- Michelle Obama is going after President Donald Trump in a scathing new video that accuses him of “willful mismanagement” of the coronavirus crisis and of racism. She calls on Black and all young voters not to “waste” their votes.In the video, released Tuesday by Joe Biden’s campaign, Mrs. Obama notes that more Americans have died from COVID-19 than died in the Iraq, Afghanistan, Vietnam and Korean wars combined. She charges that with respect to the virus, “our commander in chief, sadly, has been missing in action.”The former first lady accuses Trump of being “racist” when he and other Republicans are “lying about how minorities will destroy the suburbs,” which she says is meant to “distract from his breathtaking failures.”She also calls on undecided voters “to think about all those folks like me and my ancestors” and have some empathy for what it’s like “to walk around your own country scared that someone’s unjustified fear of you could put you in harm’s way.”And to Black and brown voters, and all young voters, who are considering sitting out the election, Mrs. Obama urges them to make a plan to vote, because “we don’t have the luxury to assume that things are going to turn out okay.”You can watch the video below: 1262