Where Things Stand: It Was Hard To Spit Out, But Jim Jordan Confirmed He Spoke To Trump On Jan 6

Amid a stream of words delivered in his typical auctioneer fashion, Rep. Jim Jordan (R-OH) confirmed Wednesday afternoon that he did, in fact, talk to Trump on Jan. 6.

When exactly that conversation happened — before the insurrection, during the attack, after the fact, when Congress was certifying President Joe Biden’s win — couldn’t tell ya.

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DOJ Fires Fresh Warning Shot At States Curtailing Voting Rights Or Considering MAGA Audits

As new voter restrictions and bogus post-election “audits” sweep across the country, the Department of Justice sent a shot across the bow Wednesday, issuing two documents laying out federal law on election records and voting rights. 

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The Number of People With IRAs Worth $5 Million Or More Has Tripled, Congress Says

This story first appeared at ProPublica. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

The number of multimillion-dollar individual retirement accounts has soared in the past decade, as more wealthy Americans use the tax-advantaged vehicles to shield fortunes from income taxes, according to new data released by Congress today.

The data reveals for the first time the staggering amount of money socked away in tax-free mega Roth accounts: more than $15 billion held by just 156 Americans.

The new data also shows that the number of Americans with traditional and Roth IRAs worth over $5 million tripled, to more than 28,000, between 2011 and 2019.

The data was requested by Senate Finance Chairman Ron Wyden, D-Ore., and House Ways and Means Chairman Richard Neal, D-Mass., following ProPublica’s story last month exploring the rise of mega Roth IRAs. The story, based on confidential IRS data obtained by ProPublica, revealed that tech mogul Peter Thiel has the largest known Roth IRA, worth $5 billion as of 2019.

In a Senate Finance hearing on retirement on Wednesday, Wyden said such massive accounts underscore the country’s inequalities. “Individuals at the very top — at the very, very top — are able to game the rules to get ahead and basically abuse taxpayer-subsidized accounts with pricey accountants and lawyers,” Wyden said. “This increases the already existing retirement inequality between retirement haves and have-nots to an extreme level.”

Roth IRAs were established in 1997 to incentivize middle-class Americans to save for retirement. Congress imposed strict limits, including a cap on how much can be contributed to the accounts each year, which today stands at $6,000 for most Americans. The average Roth account was worth $39,108 at the end of 2018.

But a select set of the ultrawealthy have managed to get around limits set by Congress and transformed the vehicle into a powerful onshore tax shelter. One way they’ve done that is by buying nonpublic shares of companies with extremely low valuations. That allows them to tuck a huge volume of shares into a retirement account. Congressional investigators have previously found that the IRS has struggled to enforce rules around these investments, including whether the valuations are legitimate.

Once money is deposited into a Roth account, any proceeds from investment gains are tax free. So, for example, a Roth owner who sells a successful tech investment for a $1 million profit gets to keep all of the money, saving a potential $200,000 in federal taxes. The savings can then be reinvested, tax free, as long as the Roth holder waits till he or she is at least 59 and a half before withdrawing the money. Owners of traditional IRAs, by contrast, enjoy tax-free growth but must pay income tax on withdrawals. The Roth is considered the more powerful tax-avoidance tool for the wealthy.

The latest numbers come from analysts at Congress’ nonpartisan Joint Committee on Taxation. They update a widely cited study from the Government Accountability Office that released figures on large IRAs in 2011.

The new figures show that, as of 2019, nearly 3,000 taxpayers held Roth IRAs worth at least $5 million. (The total of more than 28,000 people holding IRAs of that size includes both traditional and Roth IRAs.) The aggregate value of those Roth IRAs was more than $40 billion.

Both Wyden and Neal said in statements that the new figures show the need for reform. Neal said that “IRAs are intended to help Americans achieve long-term financial security, not to enable those who already have extraordinary wealth to avoid paying their fair share in taxes and deepen existing inequalities in our nation.” Neal said earlier this month, in the wake of the ProPublica article, that the Ways and Means Committee would draft a bill to “stop IRAs from being exploited.”

For his part, Wyden said, “As the Finance Committee continues to develop proposals to make the tax code more fair, closing these loopholes will be a top priority.” Wyden first proposed an overhaul of IRA rules to prevent the accounts from being used as large tax shelters several years ago. One reform that is being discussed would prohibit investors from putting assets that are not available to ordinary Americans, such as shares of startup companies, into retirement accounts.

Wyden and Neal’s push for reforms comes as Congress is considering bipartisan retirement legislation. The bills are being pitched as helping ordinary Americans save for retirement, including by proposing to automatically enroll workers in employer-sponsored retirement plans. But they also include perks for the retirement and financial industries, such as relaxing rules in ways that are seen as a boon for insurers. And buried deep inside the two complex bills are provisions that could make it harder for the IRS to crack down on the ultrawealthy who dodge tax rules.

 

Public Face Of AZ Audit Plans To Quit Because Auditors Won’t Let Him See What They’re Up To

UPDATE: On Friday July 30, Senate President Karen Fann (R) and Ken Bennett put out a joint statement indicating that they had reached an agreement and that Bennett would continue to serve as the Senate’s liaison to the audit after all.

 

The face of the Arizona Senate’s “audit” of Maricopa County’s 2020 election results says he is stepping down, claiming he’s been shut out of the process and that he won’t put a rubber stamp on a report whose underlying data he hasn’t seen. 

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Twitter Suspends Several Accounts Promoting MAGA Audits, Including AZ Audit’s Official Page

Twitter has suspended several accounts related to politicized “audits” of 2020 election results around the country, including the official account of the audit in Arizona.

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Out of Patience with the CDC? Grow the F Up

I will get to some points about the CDC’s updated masking policy in a moment. But first a few points about the CDC’s decision-making generally. I thought the earlier decision to end the masking guidance for the vaccinated was a mistake. I think the CDC was trying to balance the evolving science with immense public pressure to offer what amounts to a reward for vaccination, to declare the pandemic over or show the benefits of vaccination.

But after yesterday’s updated policy or reversal I kept seeing comments on Twitter, headlines in OpEds and comments from people on TV saying, “That’s it!” “That’s the final nail in the coffin of the CDC’s credibility!” Or ‘the experts’ or Fauci or whoever else. “First it was no masks! Now masks are back! Which is it??!?!!?”

Really people need to get the f*#$ over themselves.

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The Right Wing Media Wurlitzer Blew A Fuse Over The First Jan. 6 Hearing

A lot of things happened. Here are some of the things.

Noise, Denialism, and False Equivalency:

Join me for a moment as we peruse the right-wing media treatment of the first hearing of the Jan. 6 select committee.

  • What hearing? OAN leads obliquely with Capitol security funding and tucks in a mention of GOP bellyaching about the committee (click for full view):

  • Fox News was in rare form all evening long, with Brit Hume calling Jan. 6 largely “peaceful”:

  • Tucker Carlson mocked any display of emotion, calling members of Congress “emotionally fragile” and “unstable.” Said Carlson: “They certainly cry a lot.”

  • Laura Ingraham handed out acting awards to the police officers who testified:

  • Sean Hannity’s 12-minute opening segment devoted a whopping 4 minutes to falsely equating Jan. 6 with the “violent riots” of the summer of 2020.
  • Fox News is fronting this morning with Rep. Jim Jordan (R-OH), the Pelosi-rejected wannabe committee member (click for full view):

What Really Happened?

For a quick recap on the emotionally charged, tightly orchestrated opening hearing:

Deranged

What officers are still enduring:

Big News Out Of DOJ

Two important new developments on the legal underpinnings for holding the Jan. 6 plotters to account:

  • The Justice Department formally took the position that Rep. Mo Brooks (R-AL) is not immune to the lawsuit filed by Rep. Eric Swalwell (D-CA) over Jan. 6.
    • Brooks spoke at the Jan. 6 rally immediately before the Capitol attack.
    • Tough language from DOJ that Brooks was at the rally campaigning, not acting in the scope of his role as a federal officeholder:

Inciting or conspiring to foment a violent attack on the United States Congress is not within the scope of employment of a Representative — or any federal employee.

  • DOJ has also cleared the way for Trump administration officials to testify to the committees investigating Jan. 6.
    •  The Jan. 6 investigations are “an exceptional situation in which the congressional need for information outweighs the Executive Branch’s interest in maintaining confidentiality,” DOJ wrote in a letter to former Trump administration officials.
    • Senate Judiciary Committee Chair Dick Durbin (D-IL):

The Committee has been pushing DOJ for this waiver for months. Now that we have it, we’ll proceed to interview relevant witnesses ASAP so we can get to the bottom of this plot to enlist DOJ in Donald Trump’s efforts to overturn the 2020 election.

Trump Thwarts CDC Message

The new mask guidance from the CDC set the former president off:

  • A new Trump statement defying the updated guidance:

We won’t go back. We won’t mask our children. Joe Biden and his Administration learned nothing from the last year. Brave Americans learned how to safely and responsibly live and fight back. Don’t surrender to COVID. Don’t go back! Why do Democrats distrust the science? Don’t let this happen to our children or our Country.

  • What Trump’s flock sees:

Trump-Endorsed Candidate Loses

Trump had endorsed the widow of Rep. Ron Wright (R-TX), who died of COVID-19, but she lost to Republican state Rep. Jake Ellzey in a special election in the Texas 6th.

Trump-Backed Candidate Allegedly Assaulted Trump Press Secretary

Max Miller, the former aide to President Trump now trying to unseat an Ohio congressman who voted for impeachment, allegedly assaulted former White House Press Secretary Stephanie Grisham, according to a new report in Politico. Miller strenuously denied the claim.

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