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WASHINGTON, D.C. – President Donald Trump considered the idea of selling Puerto Rico in 2017, according to The New York Times who recently spoke with Elaine Duke, the former acting homeland security secretary.Duke said Trump put the idea forward after the island was devastated by Hurricane Maria.She told the newspaper that Trump approached the disaster as a “businessman” and asked if the U.S. could divest it.Duke says the idea was never seriously considered or discussed.Trump has previously taken aim at Puerto Rican officials for their management of the billions in relief funds his administration has appropriated for storm recovery.The president has accused the island's leaders of spending some of that money for reasons other than hurricane clean-up. 768

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 U.S. economy rebounded at a record pace of 33.1% in the July-September quarter, unchanged from the first estimate a month ago.But a resurgence in the coronavirus is expected to slow growth sharply in the current quarter, with some analysts even raising the specter of a double-dip recession.Last week, the number of Americans applying for unemployment benefits rose to 778,000. That’s up from 748,000 the week before, according to the Department of Labor.The Commerce Department reported Wednesday that the overall increase in the gross domestic product, the country’s total output of goods and services, remained the same as its first estimate although some components were revised.Bigger gains in business investment, housing and exports were offset by downward revisions to state and local government spending, business inventories and consumer spending.The Associated Press found that the 33.1% gain was the largest quarterly gain on record, surpassing the old mark of a 16.7% increase in 1950. 1028

Wendy Vitter, one of President Donald Trump's judicial nominees, refused on Wednesday to say whether a landmark civil rights opinion was correctly decided, triggering outrage and renewed criticism of the President's efforts to reshape the judiciary.At issue was Brown v. the Board of Education -- a seminal opinion that held that state laws requiring separate but equal schools violated the Constitution."I don't mean to be coy," Vitter, who is up for a seat on the US District Court for the Eastern District of Louisiana, said at her confirmation hearing, "but I think I can get into a difficult, difficult area when I start commenting on Supreme Court decisions -- which are correctly decided and which I may disagree with." 734

WELLINGTON, New Zealand — New Zealand Prime Minister Jacinda Ardern has become the latest world leader to congratulate President-elect Joe Biden on his election victory, saying she offered to share her nation’s expertise on dealing the coronavirus. New Zealand's response to the pandemic is largely seen as among the world's most succesful. The country of 5 million people has only reported about 2,000 cases of the virus and has only seen five deaths.Ardern was re-elected last month, largely on the back of her administration's successful response.Ardern said the tone of the 20-minute phone call Monday was warm and that Biden spoke very favorably about how New Zealand was handling the pandemic. Ardern said the two also discussed trade issues and climate change, and talked about Biden’s Irish heritage and his fond memories of visiting New Zealand a few years ago. She said she invited him to come visit again. 924