One of my kids is studying law, and I’ve read a bit over her shoulder as she prepped for exams. Two critical things stand out: unlike in literature, words in the law have very specific meanings (lie, fraud, possess, assault), and intent matters quite a bit. The latter is very important, because people say things all the time they do not mean, such as “If Joe in Sales misses that deadline I’m gonna kill someone.” No one’s life is actually in danger, we all understand. Same for all those neighbors who were going to but never did move to Costa Rica if Trump was elected.
Misunderstanding words as moving from the general to the very specific when you pull them out of a conversation and try to bring them to court, and determining intent based on what you “believe,” are really at the root of the ever-growing string of failed legal actions against Trump (there are some 19 still pending.) We have, and this is just hitting the highlights, all of Russiagate, the Mueller Report, Impeachment I, Impeachment II, Stormy Daniels, failed accusations of real estate valuation fraud in New York and most recently, a grand jury seated to look into election fraud in Georgia.
For example, in Impeachment I, the Ukraine caper, the entire brouhaha hinged on Donald Trump’s own words in the transcript of his call with the Ukrainian president. But did they mean Trump was demanding foreign interference in the 2020 election? Or was he asking an ally to run down unethical actions by Joe Biden as a public service before he might become president? What was Trump’s intention when he said “A lot of people want to find out about that so whatever you can do with the attorney general would be great.” Later in the call Trump suggested some aid to Ukraine might be withheld, though not in specific reference to any investigation into Biden.
The people who brought the impeachment proceedings decided all that constituted an illegal solicitation of a foreign in-kind contribution to Trump’s re-election campaign, maybe even extortion. The allegation was referred to the Justice Department, which declined charges. Many Democrats though that unfair, failing to see the lack of anything coming of it (i.e., no investigation by Ukraine), the lack of anything withheld (the aid was eventually delivered) and overall the lack of intent to commit a crime by Trump. The legal definition tests for words like solicit and extort were not met and Justice correctly dumped the case and there was no conviction in the Senate.
Same story in New York, where the facts seemed to support Trump valued real estate at a lower price for tax purposes and a higher price when used as loan collateral. It’s called valuation and is legally done all the time. But some decided saying one thing to one person and another to another person to gain something was “fraud,” and everyone pursuing the case forgot that they also had to prove intent, that Trump lied with the intention to commit a crime and gain by ill begotten methods. The case rightfully collapsed.
Yep, same with the Stormy Daniels saga, where the facts seemed to be Trump, via Michael Cohen, paid money to Stormy to keep quiet about their affair. Sleazy enough, but paying someone as part of a non-disclosure agreement is not illegal. It would be a crime if the money was paid by Trump with the intent of influencing an election, which he suggested was not true, the cash-for-silence was maybe to protect his marriage. Campaign finance laws require proof a person was willfully violating the law. Prosecutors would have to demonstrate that willingness by Trump alongside showing his principal goal was to influence the election. If this kind of case would have ever reached court, Trump would have simply denied intent.
Another example can be found in the incitement allegations surrounding the speech Trump made just before his supporters entered the Capitol building January 6. A democracy can’t lock up everyone who stirs up a crowd. Speech which inspires, motivates, or warms the blood cannot be illegal as it is the very stuff of democracy. Trump thought the election was unfair and had a right to say so. Brandenburg v. Ohio refined the modern standard to 1) the speech explicitly or implicitly encourages the use of violence or lawless action; 2) the speaker intends their speech will result in the use of violence or lawless action, and 3) imminent violence or lawless action is the likely result of the speech. Brandenburg is the Supreme Court’s gold standard on what government may do about speech that seeks to incite others to lawlessness.
The key is always intent. You have to prove, not just speculate, the speaker wanted to cause violence. Listeners’ reaction to speech is not alone a basis for taking action against a speaker. You’d need to prove Trump wanted the crowd to attack the Capitol and set out to find the words to make that happen. It ain’t gonna fly for the January 6 Committee.
Which brings us to Georgia, where the NYT asks “Will Trump Face a Legal Reckoning in Georgia?” On January 2, 2020, facing an election loss, Trump called Georgia’s Secretary of State to demand he “find 11,780 votes,” one more than Joe Biden’s tally. Did Trump encourage the secretary to commit election fraud? That prosecution will fail, as did all of the ones above, for the same two reasons: words are not solely what they seem, and intent is hard to prove.
For example, to the Democratic lay person “find” means commit election fraud to come up with votes. But well before anything goes to court, it will be made clear that “find” in this context can also mean, in just one example, recount all legal ballots to see if a mistake can be found which legitimately sends more votes to Trump. The other issue is again intent; to prove solicitation of election fraud, Georgia law requires a person intentionally “solicits, requests, commands, importunes or otherwise attempts to cause” another person to engage in election fraud. Trump and his associates need only to maintain they meant “find” as in recount, not as in cheat. Case closed.
In seeing the same mistakes made over and over, you’d start to think maybe the Democrats need some better lawyers. But don’t worry. Democratic lawyers know just as well as Republican lawyers none of these cases ever had a chance in a real court. Their purpose was purely political, to manufacture some headlines, to influence voters, to create the impression Trump has to be guilty of something if only he could be stopped from wriggling away. The goal is to convince voters to ignore the rule of law and take matters into their own hands in 2024 to stop Trump.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
If you had “Trump goes to jail” in the office pool, better double-down on “Trump Gets a Minor Civil Fine.”
The end of any possible criminal prosecution out of New York over Trump’s finances has come as the grand jury seated to find them has sunseted. The possibility of a civil penalty, likely a fine, looks poor but anything is possible. This is all a long way from predictions when these cases were initiated through the Southern District of New York (SDNY) that the walls were supposedly closing in. Dems, dragging all their Biden baggage along, are going to have to beat Trump at the ballot box, assuming anyone can afford the gas to drive out to vote.
We need not spend too much time on all the failures preceding those of the SDNY, though a list is educational: DNC server, Putin’s agent, all of Russiagate, Mueller Report, Impeachment I, Impeachment II, and Stormy Daniels. The January 6 campaign is floundering. The IRS has had Trump’s taxes in hands for decades without any criminal prosecutions, and the New Jersey Gaming Commission held Trump’s casino financials without incident. It is possible to conclude however much one might hate Trump, he just is not guilty of any crimes.
Each prosecutorial dream began with the certainty Trump did something wrong, that the evidence was growing, that some stooge would flip (and the mindless Godfather references), followed by… nothing much. The true believers will always believe, but for most Americans the over-stimulus followed by the let down followed by mumblings it all wasn’t fair again have grown tiresome. Yet there are always teachable moments, even in such farce, and the most recent failure in Manhattan to bring down Trump is one of those.
Like all of the capers, it begins with the premise Trump is sleazy and any success he enjoyed must be due to cheating. In the instant case, the DA claimed The Trump Organization had over-valued some properties to obtain loans from Deutsche Bank, and then under-valued those same properties to pay lower taxes to the city of New York. This is all that’s left in the civil action in New York against Trump. The investigation along these lines has been running since 2019, so far with no actionable results. The most recent legal move was a contempt citation against Trump over not turning over a couple of cell phones, that after Trump already complied with millions of pages of documents and 13 employees of the Trump Organization sent up for interview. The belief seems to be there must be something in there somewhere.
For anyone who has owned property in New York, either directly like Trump or via the co-op system like millions of middle class New Yorkers, none of this is a headline. It literally happens all the time. For example, Building A sits on land the City has taxed for hundreds of years. The value of that land in that context is hardly in contention. But if someone wanted to use that land as collateral for a loan, they might instead explain how the ground floor of the building is now ready for flush post-Covid clients to return. They might cite a new luxury building across the street, which will raise local real estate prices. They might show how the average tenant stays longer in their building then elsewhere, assuring stability. What something is worth — a building, a Pokeman card, a drink of water in the desert — is very much a negotiation between two sides. This is known as “valuation.” There are numerous methods of assessing the value of a property. In New York you have your assessed value, your transitional value (Tax Class 2, 3, and 4 only) and other variables such that there are lawyers who specialize in nothing else.
Banks, which look to the future to make sure their loan will be profitable, understand well what the DA is trying to avoid, that property valuation is inherently subjective. It is important to note Trump loan seller Deutsche Bank has raised no objections, made no claims of fraud, and has not asked the DA to look into all this. Nope, the Manhattan DA’s office itself scanned the skies over Gotham and decided they saw a crime. Some say it was a political action, because in almost every other value dispute case in New York history the issue was sorted out by negotiation, and at last resort, by a special civil court that does nothing else. No one can say Trump is the only instance where the City has jumped from valuation to a criminal case with a grand jury, but it is damn hard to find another modern example.
For the New York DA to “win” a political case like this, some written decision by a no-name magistrate judge’s tax court saying Trump should pay some more property tax is far from enough. So, they had to imagine the case as a criminal one, and that’s where everything falls apart (as with obstruction, as with incitement.) Though the law differs with obstruction and incitement to some extent, basically to win these as a criminal cases the DA has to prove criminal intent. So prosecutors would have had to prove not just that Trump inflated the value of his assets, but that he intended to break the law doing so. Even harder is to show the valuation was Trump’s personal decision, near impossible to do with massive, complex corporations where the actual decision maker is traditionally obscured exactly to avoid such liability.
Prosecutors fell victim to their own prejudices. They had hoped to “flip” Allen Weisselberg, the Trump Organization’s longtime finance chief by drumming up equally weak criminal tax charges against him. Those charges have to do with Weisselberg accepting car service and apartment payments from Trump and allegedly not declaring them properly as income on his taxes. These cases are again typically settled with a fine (though Weisselberg maintains innocence) not jail. The infamous Al Capone tax case is infamous because it was so unique. Weisselberg, with his years of financial experience, has a pretty good idea he is not going to jail and thus has little incentive to rat out Trump if indeed he had anything to rat about.
That pretty much left prosecutors with Michael Cohen, the guy who pleaded guilty to nine criminal offenses, including lying to Congress, tax fraud, and campaign finance violations. Cohen would have faced questions of personal bias, given his own multiple lawsuits against Trump. He would have faced questions about whether he received a benefit from prosecutors, early release from prison, for cooperating. If a liar like Cohen is your only witness on Trump’s intent, you really have no witnesses.
There are still 19 cases pending against Trump, including a number of civil suits. Maybe one of them will land a blow. But none have the potential to be the knock-out punch Dems thought was an easy route to winning 2024.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
Who is making the cascading series of bad decisions about tourism and why are they determined to damage the Number 2 industry in Hawaii? With over a year’s pause to review things like sustainability and overuse why are we only now having such conversations even as we drift from problem to problem?
Tourism is a part of our islands same as the ocean and volcanos. It won’t go away, should not go away if we wish for people to have jobs, and properly managed creates little pollution and lots of revenue alongside a lot of jobs, from restaurant servers to corporate executives. Let’s look at how that has worked out in the hands of incompetent leadership.
-Hawaii is the only state still with COVID entrance requirements. Their ever-changing nature has created confusion in the marketplace. It is easier for visitors to go somewhere else. The crisis has passed yet Hawaii’s government alone clings to its emergency powers.
-Once in Hawaii, the visitor is subject to the last remaining set of comprehensive restrictions, also ever-changing. Rules on masks and gatherings fall into 42 different categories and run dozens and dozens of pages. There are separate rules for botanical gardens and bowling alleys. No one can follow them all, and so visitors are assaulted with constant and often conflicting pleas to cooperate. Even the mayor of Honolulu admits they are unenforceable.
-The ever-changing rules on how many people may gather indoors/outdoor are a death sentence to big-money tourism such as weddings, Asian group tours, and conventions. These need to be planned months or even years in advance, and can in one decision brings hundreds of visitors in. What planner is ready to trust Hawaii to have the same rules in place a year from now (Delta variant!) as today?
-Same for other events planners. Concert promoters looking to fill arenas once again said Tier 5 does not do much for them. Rick Bartalini, the promoter who recently brought Mariah Carey and Diana Ross to the Blaisdell said, “Tier 5 is not a realistic solution to reopen the large scale event industry in the state of Hawaii.”
-The latest rules, which appear to require restaurants to verify vaccination status before seating guests, are so ridiculous major restaurants are simply (finally) refusing to comply. They protest turning their hosts into “cops” and scaring away customers. Never mind the ridiculousness of demanding a minimum wage server check to see if a COVID test was the proper molecular type before reading the day’s specials. Coupled with the labor shortage which makes reservations hard to get, why would a visitor want to try a night out?
-Why would a visitor want to try a night out when bars are still required to stop serving at midnight (is COVID more active after dark?!?) super fun beach vacation, guys.
-In their arrogance, leaders of the state House and Senate said the summer surge in tourists shows that Hawaii no longer needs to be marketed as a tourist destination. They then fundamentally changed the Hawaii Tourism Authority’s funding and left its future uncertain. While Hawaii may be the only product in history which requires no advertising, competitor New York City launched a $30 million “NYC Reawakens” tourism campaign. Florida has numerous advertising campaigns underway, including a $2 million one focused on Orlando alone.
-COVID restrictions saw tourism disappear, and car rental companies sold off their inventory such that visitors can’t find a car, and the news is running features on people renting U-Hauls to visit the North Shore. A rental car company fails to renew a car registration? The HPD tickets the tourist who rented it so they can tell their friends at home how to expect to be treated.
-Uber and Lyft sent their prices skyrocketing. Local people stepped up and started renting out their own vehicles to solve the shortage and make visitors happy. The state’s move? Tax the new business to death, same as AirBnB, in hopes of protecting the old brick and mortar firms who have fewer customers anyway because of the government’s COVID shenanigans. If that play seems familiar, it was a version of the one used to sink the SuperFerry and push intra-island travel money into the airlines’ hands. Or the one which quickly ended Lime’s electric scooters, which remain popular as a traffic solution across the country, just somehow not in Hawaii.
-How to get to your hotel from the airport? Well, the HART will be completed in approximately… never. The Bus does not allow luggage. So as in most third world airports the tired traveler starts his journey being overcharged for a taxi or car.
-Hawaii has never been a budget destination, but taxes and costs for visitors keep climbing, and will reach a point where they consider other options. For visitors settling into a traditional hotel room, there’s a 10.25% Occupancy/Transient Accommodation Tax, followed by the 4.712% State Tax. Most places now stack on a “resort fee” of $35-50, plus usurious parking fees of $30-40 a night. The state’s move post-COVID? Grab more of the existing hotel tax for itself, and allow the counties to add on their own 3% tax. The final price for a room can easily double for guests.
-Meanwhile, because of COVID and at those prices, most hotels won’t change the towels or bed sheets during a stay. Then wait until visitors find out must-see Hanauma Bay is now $25 a person plus $10 parking if they can even pry a reservation away from the tour companies. Diamond Head is headed the same way.
-The operations manager for Roberts Hawaii, the agency hired by the state to handle Safe Travels screening and verify documents summed up Hawaii’s image today, saying “People gonna vent, aggravated, not prepared, in shock after spending so much money. People got to accept these changes, it is challenge, it is a challenge to come to Hawaii.”
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
Twitterless, Donald Trump will soon disappear into obscurity or some commentator job, basically about the same. It will be for the fullness of history to judge his term, but it is certain the summation will be it was four years of lies and barely Constitutional actions that have forever dented America’s democracy. Lies and actions by Democrats and the media, of course. For Trump himself, history will show he accomplished little and personally mattered in the grander sweep even less.
COVID was a global event. U.S. deaths (91 per 100,000 people) for example, are lower than in Belgium (158), Italy (107), Spain (102), Britain (97), and Argentina (92), none of which were presided over by Donald Trump. It seemed hard to point a finger based on those numbers, so the finger was pointed at mask shortages, ventilator shortages, hospital shortages, racism, and Republican-run superspreader events. The vaccine which was going to take years to develop instead took months. We never needed the Navy hospital ships. We never needed the hospital tent facilities set up in Central Park. We never needed the mass graves. We never ran out of ventilators.
The irony is that if anything in the last four years might have opened the door to a more authoritarian president it could have been COVID. Trump, had he really had authoritarianism in mind, could have federalized the National Guard to secure hospitals (or whatever fiction the public would have accepted, and in March of last year they would have accepted pretty much anything.) He could have created some sort of WPA-like body to decide nationally who could work and who could not. He could have demanded censorship to “prevent panic.” It was all on the table, and Trump did none of it. Not exactly Kim Jong Un-level material.
So what did happen? Trump is the first president since WWII not to start a new war. U.S. military fatalities during the Obama term were 1,912. Trump’s number to date is only 123. ISIS is gone. He was the first president in some 20 years to conduct active diplomacy with North Korea. For the first time in a quarter-century, Arab nations normalized relations with Israel, the Abraham Accords. Actually quite a bit of diplomacy from a guy popularly credited with destroying it. Record stock market highs. Trump appointed 227 conservative judges, more than a quarter of the total, including three to the Supreme Court.
Some things did change under Trump. The media gave up any pretense of objectivity, and the majority of Americans welcomed it. They came to imagine tearing down some old statues or seeing a gay couple in a Target ad were real social progress. Public shaming by a mob — canceling — became a fine way to deal with thought crimes. Humiliation and name calling took the place of commentary. Terms of Service replaced the 1A. Corporate censorship of people and ideas is firmly now the norm, welcomed by a large number of Americans.
Those left of center developed striking political amnesia. After decades of complaining about police brutality, they wanted more of it when directed at conservatives at the Capitol. They want censorship, against Trump, against ideas they disagree with, against whatever “hate speech” is defined as today. They want corporate speech police. They want a president who has voted for and helped run wars for the last ten years. They demanded new anti-democratic standards, Because Trump means any means is allowed if it justifies the end. They believed accusations of mental illness against a sitting president by doctors who never met him, a tried Soviet and Maoist tactic, are part of legitimate political discourse. Nancy Pelosi was still invoking this days before Biden’s inauguration, screeching for a resignation, the 25th Amendment, outright impeachment — something! — a bit of vengeance blithely supported by far too many Americans. Third World moves, bro.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
I don’t support Trump. I don’t support Clinton. But what I really don’t support is shoddy journalism, and that’s what is all awhirl regarding the leak of three pages of Trumps’ federal tax return from 21 years ago.
Trump the Tax Cheat?
The New York Times is running front-page amok (italics added here) with the exclusive that Trump declared a $916 million loss on his 1995 income tax returns, a tax deduction so substantial, the writers claim, it could have allowed him to avoid paying any federal income taxes for up to 18 years.
The Times continues “Although Mr. Trump’s taxable income in subsequent years is as yet unknown, a $916 million loss in 1995 would have been large enough to wipe out more than $50 million a year in taxable income over 18 years… [the loss] could have eliminated any federal income taxes… for each episode of The Apprentice, or the roughly $45 million he was paid between 1995 and 2009 when he was chairman or chief executive of the publicly traded company he created to assume ownership of his troubled Atlantic City casinos.”
How To Do Journalism With No Information
Let’s pause for a moment: all the Times has is three pages of Trump’s lengthy tax filing from 1995. None of the schedules are there, nothing that details the profits and losses. Everything the Times writes otherwise is speculation, extrapolation, and that word, “could,” over and over.
The newspaper even uncorks a statement that would get any undergrad booted out of her first journalism class “In the absence of any disclosures from Mr. Trump, The New York Times and other news outlets have attempted to fill in the gaps.”
Pro-Clinton Vox takes it another step, stating without any evidence “Trump still isn’t releasing his returns. And here’s what that means: whatever is in his returns is worse than what the New York Times is telling the world is in his returns. The Trump campaign has decided it prefers the picture the Times is painting — a picture where Trump didn’t pay taxes for 18 years — to the picture Trump’s real records would paint.”
Summary: in the absence of information, 2016-era journalists can just make up whatever they like.
How Taxes Work for Grownups
But all that aside, let’s go back to the shoddy journalism.
For all of the Times’ hyperbole, it seems to miss, or just not bother to state, the obvious: what Trump did, deduct business losses from gains to reduce his tax burden, and likely spread those losses over a period of years, is exactly what every business does. In fact, the tax forms even give you little boxes to insert those numbers in to take the deduction.
There is literally nothing to see here.
I know of no person who actively seeks to maximize the taxes s/he pays.
Instead, every taxpayer does what the tax laws intend, take deductions to lessen the amount they pay in taxes. I do it, you do it, the Clintons do it. There are the business loss deductions, the capital loss deductions, the business expense deductions, the mortgage interest deductions and on and on and on. If you follow the tax law, then the amount at the end of the return is what your “fair share” is.
Even the Times’ story has to sorta, kinda admit that, assuming you make it deep into the text, that “Tax experts consulted by The Times said nothing in the 1995 documents suggested any wrongdoing by Mr. Trump.”
That line seems significant, especially given what came before it on the front page.
And yep, most of these deductions are only available to the rich, at least in dollar amounts that matter. We can argue separately how messed up the tax system is (a subject the Times may consider covering at some point), but we cannot argue that what Trump did is not the way the system is. Neither can Clinton.
But the funnest of fun parts here is while the Times, and Clinton, reluctantly point out that nothing Trump did was illegal, they both make it clear they think what he did was ethically wrong, a bad thing worthy of slinging around. Given the parallels to the emails (not illegal!) and the Clinton Foundation (not illegal!), that seems thin ice to skate on.
BONUS: Coincidentally, it was only at last Monday’s presidential debate that Hillary Clinton said Trump was refusing to release his tax returns so voters would not know “he’s paid nothing in federal taxes.” Then, what do you know, a few days later an excerpt of those returns just pops into the New York Times’ Inbox. Small world.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.