Judge refuses to block IRS from sharing tax data to identify and deport people illegally in U.S.

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A federal judge on Monday refused to block the Internal Revenue Service from sharing immigrants’ tax data with Immigration and Customs Enforcement for the purpose of identifying and deporting people illegally in the U.S.

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In a win for the Trump administration, U.S. District Judge Dabney Friedrich denied a preliminary injunction in a lawsuit filed by nonprofit groups. They argued that undocumented immigrants who pay taxes are entitled to the same privacy protections as U.S. citizens and immigrants who are legally in the country.

Friedrich, who was appointed by President Donald Trump, had previously refused to grant a temporary order in the case.

The decision comes less than a month after former acting IRS commissioner Melanie Krause resigned over the deal allowing ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records.

The IRS has been in upheaval over Trump administration decisions to share taxpayer data. A previous acting commissioner announced his retirement earlier amid a furor over Elon Musk’s Department of Government Efficiency gaining access to IRS taxpayer data.

The Treasury Department says the agreement with ICE will help carry out President Donald Trump’s agenda to secure U.S. borders and is part of his larger nationwide immigration crackdown, which has resulted in deportations, workplace raids and the use of an 18th century wartime law to deport Venezuelan migrants.

The acting ICE director has said working with Treasury and other departments is “strictly for the major criminal cases.”

Advocates, however, say the IRS-DHS information-sharing agreement violates privacy laws and diminishes the privacy of all Americans.

House GOP reveals Trump’s tax breaks for tips, overtime and car loans in bill, but costs run high

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By LISA MASCARO and KEVIN FREKING

WASHINGTON (AP) — House Republicans revealed the sweeping tax provisions for President Donald Trump’s big bill Monday, tallying at least $4.9 trillion in costs so far, partly paid for with reductions to Medicaid and other programs used by millions of Americans.

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The House Ways and Means Committee named its package ‘ ‘THE ONE, BIG, BEAUTIFUL BILL’’ in all capital letters, a nod to Trump himself. It seeks to extend the tax breaks approved during Trump’s first term — and boost the standard deduction, child tax credit and estate tax exemption — while adding new tax breaks on tipped wages, overtime pay, Social Security benefits and auto loans that Trump promised during his campaign for the White House.

There’s also a tripling of the state and local tax deduction, called SALT, from $10,000 up to $30,000 for couples, which certain high-tax state GOP lawmakers from New York and California already rejected as too meager. Private universities would be hit with hefty new tax on their endowments, as much as 21%, as the Trump administration goes after the Ivy League and other campuses.

Overall the package is touching off the biggest political debate over taxes, spending and the nation’s priorities in nearly a decade, echoing the GOP’s failed campaign to repeal and replace the Affordable Care Act, or Obamacare, in 2017. And the costs are only preliminary, and expected to soar.

“Republicans need to UNIFY,” Trump posted on social media before departing for a trip abroad to the Middle East.

Trump said when he returns to Washington, “we will work together on any and all outstanding issues, but there shouldn’t be many — The Bill is GREAT. We have no alternative, WE MUST WIN!”

But one key Republican, Sen. Josh Hawley of Missouri, implored his party not to touch Medicaid, arguing that cutting health care to pay for tax breaks is both “morally wrong and politically suicidal.”

“If Republicans want to be a working-class party — if we want to be a majority party — we must ignore calls to cut Medicaid and start delivering on America’s promise for America’s working people,” Hawley wrote in The New York Times.

Round-the-clock work ahead

As Republicans race toward House Speaker Mike Johnson’s Memorial Day deadline to pass Trump’s big bill of tax breaks and spending cuts, they are preparing to flood the zone with round-the-clock public hearings starting Tuesday and stitch the various sections together in what will become a massive package.

The politics ahead are uncertain. The bipartisan Joint Committee on Taxation said Monday that tax breaks would reduce revenue by $4.9 trillion over the decade — and that was before Trump’s new tax breaks were included.

Texas Rep. Chip Roy, a member of the conservative House Freedom Caucus, warned the price tag could climb to $20 trillion, piling onto the deficits and debt.

“I sure hope House & Senate leadership are coming up with a backup plan,” Roy posted on social media, “…. because I’m not here to rack up an additional $20 trillion in debt over 10 years.”

House Republicans have been huddling behind closed doors, working out final provisions in the 389-page bill.

The legislation proposes to increase the child tax credit from $2,000 to $2,500 for four years and adds new requirements focused on preventing undocumented immigrants from benefiting from the credit even if the children are U.S. citizens. The Center on Budget and Policy Priorities, a liberal think tank, estimates it would affect 4.5 million children who are U.S. citizens or lawful residents.

It would also boost the estate tax exemption, which is now $14 million, to $15 million and indexes future increases to inflation.

As for the president’s promises, the legislation includes Trump’s “no taxes on tips” pledge, providing a deduction for those workers in service industry and other jobs that have traditionally relied on tips. It directs the Treasury secretary to issue guidance to avoid businesses gaming the system.

The package also provides tax relief for automobile shoppers with a temporary deduction of up to $10,000 on car loan interest, applying the benefit only for those vehicles where the final assembly occurred in the United States. The tax break would expire at the end of Trump’s term.

For seniors, there would be a bolstered $4,000 deduction on Social Security wages for those with adjusted incomes no higher than $75,000 for individuals and $150,000 for couples.

But one hard-fought provision, the deduction for state and local taxes known as SALT, appears to be a work in progress. The legislation proposes lifting the cap to $15,000 for single filers and $30,000 for couples, but with a reduction at higher incomes — about $200,000 for singles and $400,000 for couples.

“Still a hell no,” wrote Rep. Nick LaLota, R-N.Y., on social media.

Battle over Medicaid

Meanwhile, dozens of House Republicans have told Johnson and GOP leaders they will not support cuts to Medicaid, which provides some 70 million Americans with health care, nor to green energy tax breaks that businesses back home have been relying on to invest in new wind, solar and renewable projects.

All told, 11 committees in the House have been compiling their sections of the package as Republicans seek at least $1.5 trillion in savings to help cover the cost of preserving the 2017 tax breaks, which are expiring at the end of the year. The Agriculture Committee, with its anticipated changes to food stamps, will the the last one, expected later Monday.

Late Sunday, House Republicans on the Energy and Commerce Committee unveiled the cost-saving centerpiece of the package, with at least $880 billion in cuts largely to Medicaid to help cover the cost of the tax breaks.

While Republicans insist they are simply rooting out “waste, fraud and abuse” to generate savings with new work and eligibility requirements, Democrats warn that millions of Americans will lose coverage. In the 15 years since Obamacare became law, Medicaid has only expanded as most states have tapped into federal funds.

A preliminary estimate from the nonpartisan Congressional Budget Office said the proposals would reduce the number of people with health care by 8.6 million.

To be eligible for Medicaid, there would be new “community engagement requirements” of at least 80 hours per month of work, education or service for able-bodied adults without dependents. People would also have to verify their eligibility to be in the program twice a year, rather than just once.

There are substantial cuts proposed for green energy programs and tax breaks, rolling back climate-change strategies from the Biden-era Inflation Reduction Act, including rescinding funds for a range of energy loans and investment programs while providing expedited permitting for natural gas development and oil pipelines.

Associated Press writers Amanda Seitz and Leah Askarinam contributed to this report.

Software update keeps Newark airport radar online but network concerns and flight limits remain

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By JOSH FUNK

A new software update prevented a third radar outage in the last two weeks at New Jersey’s busy Newark airport when a telecommunications line failed again over the weekend, Transportation Secretary Sean Duffy said Monday.

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At a news conference, Duffy also said the recent problems that have led to hundreds of cancellations and delays in Newark could have been avoided had action been taken by President Joe Biden’s administration to better equip the air traffic control facility in Philadelphia — particularly after issues with the hardware in October and November that should have set off alarms.

Duffy said the update the Federal Aviation Administration installed Friday night helped ensure the backup system worked on Sunday when there was another problem with the primary line coming into the air traffic control facility in Philadelphia. When a similar issue happened Friday and on April 28, the radar and communications systems went offline briefly, leaving controllers unable to see or talk to the planes.

The FAA restricted traffic into Newark Liberty International Airport after the first incident, partly because several air traffic controllers went out on trauma leave afterward, worsening the already short staffing. Those limits, designed to keep flights safe, combined with an ongoing runway construction project in Newark, led to all the cancellations and delays. Later this week, the FAA will meet with all the airlines to discuss making those limits last into the summer.

Even though the radar system stayed online Sunday, controllers were worried because of the two previous outages, so Duffy said they stopped all traffic at Newark airport for about 45 minutes as a precaution.

Duffy said he will request an investigation into last year’s move of Newark air traffic controllers from New York to Philadelphia to determine why more wasn’t done to ensure there wouldn’t be problems. Philadelphia is about 85 miles (137 kilometers) southwest of Newark.

“The Biden-Buttigieg FAA bungled this move without properly hardening the telecom lines feeding the data, which was already well-known to be error-prone,” Duffy said. “Without addressing the underlying infrastructure, they added more risk to the system.”

Duffy also said the FAA should have set up a new radar system for Newark in Philadelphia instead of piping the signal in from New York for controllers.

Duffy and President Donald Trump have said that the problems in Newark are a prime example of why they developed a multibillion-dollar plan to overhaul that nation’s air traffic control system, unveiled last week. Duffy blames the Biden administration for failing to do that, but those problems go back decades, even before the first Trump administration.

An advisor to former Transportation Secretary Pete Buttigieg said Duffy should spend more time trying to deal with the nation’s problems, and he defended the Biden administration’s efforts to bolster air traffic controller hiring and make a down payment on dealing with some of the infrastructure problems.

“Secretary Duffy has a tough job. But he needs to spend more time doing what the American people are paying him to do — fix problems — and less time blaming others,” said Chris Meagher.

Duffy laid out an extensive plan to replace the nation’s outdated air traffic control system last week, including installing 4,600 new high-speed data connections and replacing 618 radars, but didn’t put a price tag on the plan other than to say it will cost billions.

The FAA has installed new fiber optic lines at Newark airport and New York’s Kennedy International and LaGuardia airports to replace old copper wires since the first outage, but plans to spend the next two weeks testing those new lines out before switching over to them.

In the Weeds: Immigrants & NY’s Legalized Cannabis Industry

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While the state has celebrated the growth of its newest legal economy, many feel left out—no one more so than non-citizen immigrants. This story comes to us from Feet in 2 Worlds, an independent media outlet and journalism training program that empowers the voices of immigrant journalists.

Strains of cannabis outside of their cases but behind glass at the legal Emerald Dispensary in Bushwick, Brooklyn, NY. (Photo Credit: Iggy Monda.)

This story comes to us from Feet in 2 Worlds, an independent media outlet and journalism training program that empowers the voices of immigrant journalists.

As a way to welcome the new year, New York Gov. Kathy Hochul declared on the final day of 2024 that New York State’s budding cannabis industry had hit a milestone: it had produced $1 billion in retail sales. And that every single green bill made was legal and clean.

New York was only the 15th state to legalize adult-use cannabis, when it did so in March 2021 with the signing of the Marihuana Regulation and Taxation Act (MRTA). But New York State’s politicians and entrepreneurs had higher dreams than the 14 states that had legalized recreational cannabis before them. They saw a future where the state would become the capital of cannabis in more ways than one. 

The announcement of $1 billion in sales was the state’s way of declaring that it is catching up to other big players like California and Michigan, while pushing forward equity in the space.

Besides legalizing recreational cannabis, what New York State did with the passing of the MRTA was promise to prioritize people who had been arrested for cannabis-related offenses and targeted by police. For decades, police disproportionately arrested Black and Latino people more often than white people. The NYPD made 4,081 criminal possession of marijuana arrests in 2018. Only 287 of those arrests were of white people, while Black and Latino people accounted for 3,627 of them.

“What we do know, and we kind of talked about a lot, is everyone uses cannabis at the same rates,” said Dasheed Dawson, New York City’s first cannabis czar, who resigned at the end of March following sexual harassment accusations. “It is just certain populations — Black, Indigenous, Latinx, immigrant populations — that have been disproportionately criminalized for that same use.”

In response, the state of New York wanted to make sure that the people who were harmed most by prior drug policies had a fair, inclusive opportunity to participate.

“One of the main goals of New York State legalizing cannabis was to make sure we were leading with equity, and equity was at the center and the heart of everything we did,” said Taylor Randi Lee, the Press Secretary for the New York State Office of Cannabis Management. That state office was established on the same day adult-use cannabis was legalized. 

New York State made a commitment to expunge non-violent cannabis-related convictions. And the state promised that the first group of people to be issued retail cannabis licenses would be those who had been previously convicted for a non-violent cannabis offense—namely those in the Black and Latino communities. This type of license was called a Conditional Adult-Use Retail Dispensary (CAURD) License.

“When I read that rule right there, I was like, oh snap, this law is written for me,” said Coss Marte, one of New York’s first CAURD holders. Marte grew up on the Lower East Side of Manhattan, where drugs were a common part of everyday life. He was incarcerated three times in his life for cannabis offenses and at least once for possession of cocaine.

Once out of prison and following the passage of the MRTA, Marte not only acquired his CAURD license to sell cannabis recreationally in his Lower East Side and two other dispensary locations all named CONBUD, but he was also able to expunge his prior cannabis offenses.

“Why wouldn’t you go support a Coss Marte?” asked Solonje Burnett, an entrepreneur and consultant who runs a business called Weed Auntie. “Why wouldn’t you go to these guys who were actually arrested for either having weed or distributing weed when it was illegal?”

For Burnett, supporting businesses run by members of society who were imprisoned for cannabis offenses is beneficial for a myriad of reasons. For one, it’s healthier. According to Burnett, the people who were always selling cannabis know what product is the best quality. Legal cannabis dispensaries—unlike their unlicensed counterparts—have to be tested and approved before they can be sold. And, Burnett says, licensed stores won’t sell anything that could be potentially dangerous.

“Me going to this dispensary, even though it might be a little bit more expensive [than an unlicensed store, helps to] prop up a safe industry for my community,” says Burnett.

Secondly, Burnett and politicians will argue that supporting owners like Marte creates jobs for local communities that have been affected by state and city enforcement in the past.

“The governor’s office mandates that 50 percent of adult use cannabis licenses go to social economic and equity licensees,” added Taylor Randi Lee. “I’m proud to say that New York State’s at 54 percent.”

The MRTA was considered by many advocates to be one of the most progressive legalization efforts of cannabis in the country. But while it focuses on disenfranchised communities and even veterans and farmers, it largely leaves immigrants out of the picture.

And that’s because while cannabis is now legal to smoke and sell in the state of New York, it is still illegal at the federal level. That means an immigrant who is not a citizen can be charged with cannabis-related crimes, even if they are in a legal state or territory. So, while citizens in these locations can smoke and sell legally without worrying about legal consequences, non-citizen immigrants take the risk of losing their chance at citizenship or residency, or facing deportation.

“We have this two-tier system of justice, right? There’s one for citizens and one for immigrants,” said Benita Jain, senior advisor and federal policy counsel with the Immigrant Defense Project.

Rows of cannabis products behind glass at the legal Emerald Dispensary in Bushwick, Brooklyn, NY. (Photo Credit: Iggy Monda)

The federal government has linked cannabis with immigrants since even before the country first criminalized it.

The United States had been producing cannabis since the 17th century when it was more colloquially known as hemp. It was such a common crop that the country’s first president—George Washington—was growing it, and colonial Virginia even passed a law requiring every farmer to grow it. If they didn’t, they risked being jailed. In the 19th century, major cities, like New York, would allow for the operation of hash parlors, where people could smoke as if they were drinking at a bar.

But in November 1910, Mexican citizen Francisco Madero made a call to arms to overthrow the Mexican government, spurring on the Mexican Revolution. A result of that fighting were Mexicans immigrating to the United States.

Coincidentally, around the same time, at the beginning of the 20th century — when cannabis-like products were legal and being used in the U.S. — newspapers printed stories about violence around the border. The common thread in these stories were that immigrants from Mexico were routinely high and hurting American citizens, including “upper-class white women.” Some accused these immigrants of gifting cannabis to schoolchildren.

Other newspaper articles also targeted immigrants from India and the West Indies as a source of all the “dangerous” cannabis that was coming into the country and seducing the white population into smoking along with them. The prejudicial rhetoric continued for decades.

The movement to make cannabis illegal federally picked up in the 1930s. The first two dominos to fall were the creation of the Federal Bureau of Narcotics and the naming of Harry J. Anslinger as its commissioner in 1930. Anslinger made it his mission to outlaw cannabis by any means necessary, and to do so he had to convince the public that cannabis would make the average man dangerous — even when 29 out of 30 scientists told him that his hypothesis had no scientific backing.

In 1937, he testified before Congress his belief on the dangers of the plant, but instead of using more colloquial words such as cannabis and hash, Anslinger adopted the word “marihuana” so as to use a more Spanish-sounding term that he could link with Mexicans. In his testimony, he quoted from a particularly prejudiced-laden letter from a newspaper editor that read: 

“I wish I could show you what a small marihuana cigaret can do to one of our degenerate Spanish-speaking residents. That’s why our problem is so great; the greatest percentage of our population is composed of Spanish-speaking persons, most of who are low mentally, because of social and racial conditions.”

His testimony paved the way for the Marihuana Tax Act of 1937, which taxed cannabis so heavily that it made any recreational use impractical. Ironically, this legislation was enacted almost two decades after Mexico itself had already outlawed cannabis.

Anslinger may not have been able to criminalize cannabis, but his mission was completed by President Richard Nixon. In 1970, Nixon signed the Controlled Substances Act, which classified cannabis as a Schedule I drug, meaning it would be treated as an illegal substance with the highest potential for abuse and without medical benefits. It set the stage for the War on Drugs he launched the following year, which has sustained until today.

The federal government has recently began discussing whether or not it should reschedule cannabis away from Schedule I and to Schedule III, allowing it to be more accessible. And states are trying to reverse policies of 20th century American leaders — policies that have led to millions of people being arrested within the Black, Latino, and immigrant communities. This all comes as a result of a majority of Americans accepting that cannabis is not a danger to a majority of people. 

But while dozens of states have legalized adult-use cannabis, Benita Jain said that immigration laws have only been reinforced by presidents such as Ronald Reagan and Bill Clinton.

“As a result of immigration laws passed in 1996, but even before that for drug-related convictions,” said Jain, “a broad range of convictions can trigger immigration detention, can result in a person being denied lawful permanent residency, can result in someone with lawful permanent residency being subject to deportation, or being unable to apply for citizenship.”

Donald Trump is now this country’s president. As a result, deportations are on the mind of many in this country, including Burnett—or the Weed Auntie.

“I’m really, really worried about what’s going to happen in 2025 with our deportation dictator coming into power,” said Burnett. “That is his modus operandi.” 

President Trump has been relatively positive about cannabis being legalized across the country, but his deportation policies are as clear as day. He isn’t the first president to deport thousands, and won’t be the first to proceed with deportations based on substances like cannabis. Just between 2002 and 2020, the U.S. deported over 47,000 people for marijuana use or possession.

And so if a non-citizen immigrant wants to join the legal cannabis economy, they must either sell illegally or take great care in taking on a position that doesn’t require being directly involved with the product. But even that comes with risks.

“Proximity is a risk factor,” said Jain. She mentioned stories of auditing work for a cannabis business, installations of security cameras, and even delivery drivers leading to federal scrutiny. “Our sense is that the closer a person who’s working in the industry is to the actual substance, the more risk they face.”

Even if the political leaders in the nation’s capital reschedule cannabis away from Schedule I, it wouldn’t help non-citizen immigrants as much as one might think. Jain says while that would be a boon to corporations and business owners looking for more tax benefits, immigrants would need more drastic action from the government if they wish to legally participate in this new cannabis economy, as a seller or consumer.

“What we need to do,” said Jain, “is to deschedule marijuana completely, and then have the immigration laws also catch up to us to that.”

Podcast credits: Hosted by Shaka Tafari. Produced by Iggy Monda. Edited by Lushik Lotus-Lee. Additional editing by Mia Warren and Quincy Surasmith. Fact Checking by Julie Schwietert Collazo. Engineering by Jocelyn Gonzales. Original theme music by Gautam Srikishan. Additional music from Blue Dot Sessions. “The Hustle” show logo by Daniel Robles. Special thanks to Scott Foletta and Solonje Burnett.

Feet in 2 Worlds is supported by the John D. and Catherine T. MacArthur Foundation, The Ford Foundation, the Fernandez Pave the Way Foundation, an anonymous donor, and contributors to our annual NewsMatch campaign.

The post In the Weeds: Immigrants & NY’s Legalized Cannabis Industry appeared first on City Limits.