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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 number of migrants apprehended at the Southern border topped 100,000 for the second month in a row as the Trump administration manages an ever-increasing number of Central American families streaming to the U.S. that hardline policies have failed to stem.Border Patrol Chief Carla Provost told senators Wednesday that apprehension numbers were "off the charts," and she's had to divert agents to care for children. As she spoke, images of Border Patrol agents holding small children flashed behind her. In one, an agent feeds a little girl a bottle."We cannot address this crisis by shifting more resources," Provost said. "It's like holding a bucket under a faucet. It doesn't matter how many buckets we have if we can't turn off the flow."There were 109,144 migrants encountered in April, the highest since 2007, including more than 58,000 migrant parents and children and 8,800 unaccompanied children taken into custody, according to Homeland Security figures. Border apprehensions are a barometer for people coming illegally, and a data point President Donald Trump watches closely and rails against.Provost, a longtime border agent with more than 25 years of experience, said shifting resources will not address the crisis. She said she is worried about drugs and other contraband that is getting through as resources are moved to caring for children."I worry how much more is getting past us," she said. "We have been forced to put our national security at risk."Democratic senators said Trump's own failed immigration policies, including zero tolerance that led to family separations, helped contribute to the crisis at the border. Illinois Sen. Dick Durbin said Trump's immigration policies are cruel, unpredictable and ineffective.But lawmakers on both sides seem to agree more that there is a crisis at the border that needs to be resolved. Provost told senators at a Judiciary subcommittee hearing that border officials need laws changed to be able to detain families until their immigration cases are completed. She also said there needs to be changes to make it easier for children who have traveled alone to be returned to their countries. It's a similar refrain repeated by Homeland Security officials, including Acting Homeland Security Secretary Kevin McAleenan. The White House has asked for .5 billion more to help manage the number of migrants.Unauthorized border crossings have surged since the start of this year. In response, the U.S. government has made some asylum seekers pursue their cases while remaining in Mexico and dramatically limited how many people can request asylum at official crossings. An appeals court ruled late Tuesday that the administration could continue the program while litigation played out. Trump has also ordered agencies to consider charging fees to asylum seekers to pursue their cases once they enter.Administration officials have debated proposals to reduce how many immigrants pass their initial "credible fear" screening as part of the asylum process. Immigration agencies are considering toughening the standards of the interview and having Border Patrol agents conduct interviews instead of asylum officers due to a belief that the agents would be less sympathetic.Immigration agencies also allege that many adults and children who cross the U.S.-Mexico border are falsely posing as families so they can be released more quickly into the country. One practice they say is occurring is called "child recycling," in which immigrant youth pose as the children of multiple adults to get them through processing.Matthew Albence, acting director of U.S. Immigration and Customs Enforcement, said agents in recent weeks have identified 65 adults and children as fraudulent. Agents uncovered one case of a 7-year-old girl from Guatemala whose mother sent her three times to help other adults enter, Albence said.Adults are also posing as teenagers to avoid being deported or sent to ICE detention, he alleged."We have individuals that are 23 that are posing as 16-year-olds," he said.ICE said last week that it would start a rapid DNA pilot program in which adults suspected of not being the parents of children accompanying them could voluntarily be tested for a familial relationship. Immigrant advocates say they worry expanded DNA testing could violate the privacy of migrant families and children and that some parents may not fully understand the process when they agree to it.___Associated Press writer Nomaan Merchant contributed to this report from Houston. 4550

WASHINGTON, D.C. – Tuesday is the last day for small businesses to apply for a loan through the Paycheck Protection Program.About 4.8 million businesses received a PPP loan, with a total of 9 billion lent out. But as of Tuesday, there's still more than 0 billion left in the pot.As to why that is, the Small Business and Entrepreneurship Council says there's a few reasons, like concerns over how much would actually be forgiven, constantly changing rules, and strict limits to how the money can be used.“Not all businesses are the same. So, you know you've got businesses with high overhead, maybe few on payroll,” said Karen Kerrigan, President and CEO of the SBE Council. “This program really didn't align with their needs.”Business owners and advocacy groups complain that the money in the PPP was not fully put to work because it created obstacles that stopped countless small businesses from applying.A report from a research group says the program’s shortcomings also made it more difficult for minority businesses to get loans.The owners of a Colorado brewery who got a PPP loan say it helped, but only goes so far."It didn't solve the problems. What it did was sustain us for a few more months."The SBE Council is working with lawmakers on both sides of the aisle for further policy solutions. They're pushing to broaden what expenses can be forgiven, especially when it comes to technology.Through a survey, the group found 87% of small businesses said they wouldn't have been able to survive without cloud-based services.“We know that consumers are on social media and technology platforms looking for new businesses, looking for new brands, looking for new things that they need, and that's where small businesses can really fill that gap,” said Kerrigan.The Small Business Administration says it will be up to Congress to decide what to do with leftover funds from the PPP. 1900

WASHINGTON (AP) — Their hopes fading for Senate control, Democrats had a disappointing election night as Republicans swatted down an onslaught of challengers and fought to retain their majority.Former Colorado Governor John Hickenlooper defeated incumbent Sen. Cory Gardner, while ex-college football coach Tommy Tuberville won back Alabama’s Senate seat for the GOP, defeating Sen. Doug Jones.Later in the evening, Mark Kelly, a NASA astronaut, and husband to former Rep. Gabrielle Giffords defeated Sen. Martha McSally.Republicans also held their own in high-profile races in South Carolina, Texas, Kansas, Iowa, and Montana, narrowing the political map.Respectively, Sen. Lindsey Graham won against Democratic challenger Jaime Harrison, Sen. John Cornyn defeated Mary Hegar, Roger Marshall won against Barbara Bollier, Sen. Joni Ernst defeated Theresa Greenfield, and Sen. Steve Daines beat Gov. Steve Bullock.It was a jarring outcome for Democrats who had devised an expanded political map, eager to provide a backstop against President Donald Trump and his party’s grip on the Senate.The races attracted an unprecedented outpouring of small-dollar donations from Americans apparently voting with their pocketbooks to propel long-shot campaigns.Democrats did retain their Senate seats in Oregon, New Mexico, Minnesota, Illinois, New Hampshire, Massachusetts, Rhode Island, New Jersey, and Virginia.Both parties saw paths to victory, but options are becoming more limited.As of about 2:30 a.m. Wednesday, there were still some Senate races to be called. Races in these states still hadn’t been called by The Associated Press: Michigan, Maine, North Carolina, Alaska, and Georgia.The outcomes might not be known until the days to come.And in Georgia's special election, Republican Sen. Kelly Loeffler and Democrat Raphael Warnock have advanced to a Jan. 5 runoff for Loeffler’s Senate seat. They’re the top two finishers in a crowded field that also included Republican Rep. Doug Collins. But no candidate was able to get the 50% threshold needed in order to win outright.Loeffler, a wealthy businesswoman, was appointed last year to replace retiring Sen. Johnny Isakson. Warnock is pastor of the Atlanta church where the Rev. Martin Luther King Jr. preached. He’s trying to become Georgia’s first Black U.S. senator.The voters’ choices will force a rethinking of Democratic Party strategy, messaging, and approach from the Trump era. 2444

WASHINGTON (AP) — U.S. health officials believe the coronavirus mutation that set off alarms in parts of Britain is no more apt to cause serious illness or be resistant to vaccines than the strain afflicting people in the United States. That's according to Dr. Anthony Fauci of the National Institute of Allergy and Infectious Diseases. Even so, he says the variant still must be taken “very seriously" and is being studied intensively by U.S. officials now. Fauci endorsed the decision of U.S. officials to require negative COVID-19 tests before letting people from Britain enter the U.S. and declined to weigh in on whether that step should have been taken sooner. 674