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Paul Krugman drops a bomb on Trump’s base — he just saddled you with $2 trillion more in debt

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New York Times columnist Paul Krugman outlined all the reasons why President Donald Trump’s tax cut failed — and how much it’s going to cost American taxpayers.

Krugman pointed out that although the 2017 tax cut is Trump’s only “significant piece of legislation” to date, it only delivered for the nation’s richest.

What’s more, the columnist argued, is that the theory behind the tax cut “has turned out to be a complete bust” that will leave American taxpayers saddled with an additional $2 trillion in debt.

“The Trumpist theory — which was, I’m sorry to say, endorsed by conservative economists who should have known better — was that there was a huge pile of money sitting outside the U.S. that companies would bring back and invest productively if given the incentive of lower tax rates,” Krugman wrote.

“But that pile of money,” he continued, “was an accounting fiction.”

What’s more: “the tax cut didn’t give corporations an incentive to build new factories and so on; all it did was induce them to shift their tax-avoidance strategies.”

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Krugman noted that Brad Setser of the Council on Foreign Relations pointed out the source of that disparity: upon first glance, it appears that American companies make huge profits via overseas subsidiaries, but a deeper inspection reveals that “the bulk of these reported profits are in a handful of small countries with low or zero tax rates, like Bermuda, Luxembourg and Ireland.”

“The companies obviously aren’t earning huge profits in these tiny economies,” he wrote. “they’re just using accounting gimmicks to assign profits earned elsewhere to subsidiaries that may have a few factories, but sometimes consist of little more than a small office, or even just a post-office box.”

It’s unsurprising, Krugman concluded, that “the investment boom Trump economists promised has never materialized.”

“Companies didn’t use their tax breaks to invest more,” he noted. “Mainly they used them to buy back their own stock. This in turn, put more money in the hands of investors, which gave the economy a temporary boost — although for 2018 as a whole, one of the biggest drivers of faster growth was, believe it or not, higher government spending.”

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In spite of the large debt figure, Krugman said he’s “not deeply worried” at the looming $2 trillion deficit created by the tax cuts.

“Given low borrowing costs, the costs and risks of federal debt are far less than the usual suspects — again, the same people who cheered on the Trump tax cut — have claimed,” he mused.

“But think of all the other things we could have done with $2 trillion — all the infrastructure we could have built and repaired, all the people who could have been given essential health care,” Krugman wrote. “What a colossal, corrupt waste.”

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Trump accuses newspaper of ‘virtual act of treason’ for reporting on a story that made him look awful

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President Donald Trump attacked an American newspaper for reporting a story that made him look bad.

"Do you believe that the Failing New York Times just did a story stating that the United States is substantially increasing Cyber Attacks on Russia. (sic) This is a virtual act of Treason by a once great paper so desperate for a story, any story, even if bad for our Country ... also, not true," the commander-in-chief tweeted on Saturday evening.

"Anything goes with our corrupt news media today," Trump argued.

"They will do, or say, whatever it takes, with not even the slightest thought of consequence," he continued.

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Alt-Right headed to court — the ‘serious injuries’ inflicted on two sisters could cost white nationalists $10 million

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Some of the most prominent members of the Alt-Right are being sued by two sisters for $10 million.

Sisters Tadrint and Micah Washington filed a lawsuit after being seriously injured in the fatal Unite the Right rally in Charlottesville, the Daily Progress reported Saturday.

"The suit has since been narrowed to Fields, Kessler, Spencer, the National Policy Institute, William Regnery II, AltRight Corp., Mike Peinovich, Michael Hill, Matthew Heimbach, the Traditionalist Worker Party, the League of the South, Bradley Griffin, Vanguard America, Augustus Invictus, Chris Cantwell, Andrew Anglin, Moonbase Holdings, Identity Europa, Nathan Damigo and Elliott Kline," the newspaper reported.

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Man barricaded himself in Alexandria Ocasio-Cortez’s office in Queens

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The New York Police Department responded to a Saturday break-in at the Queens office of Rep. Alexandria Ocasio-Cortez by a 27-year-old man.

"The alleged trespasser barricaded himself in the 3rd floor office, hiding in a utility closet until police convinced him to come out," WPIX-TV reports.

"The man was taken to an area hospital for an evaluation. Charges against him are pending," ABC 7 reported.

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