Carolina Panthers owner Jerry Richardson, 81, selling team

9:01 PM ET

CHARLOTTE, N.C. — Carolina Panthers owner Jerry Richardson, amid allegations of workplace misconduct, announced Sunday night in a letter on the team website that he plans to put the NFL team he founded up for sale after the 2017 season.

The letter came after Sports Illustrated published a story saying the Panthers settled with at least four former employees regarding inappropriate workplace behavior by Richardson.

“I believe that it is time to turn the franchise over to new ownership,” Richardson wrote. “Therefore, I will put the team up for sale at the conclusion of this NFL season. We will not begin the sale process, nor will we entertain any inquiries, until the very last game is played.”

The SI article detailed accusations made against Richardson that include sexual harassment of multiple women and the use of a racial slur toward a scout who has since left the team.

Report: Panthers settled claims against owner

The Panthers and team owner Jerry Richardson settled claims against him that include sexual harassment of multiple women and the use of a racial slur toward a team scout, according to a report.

  • NFL takes over investigation of Panthers owner

    The NFL is now handling the investigation into the allegations of workplace misconduct by Panthers owner Jerry Richardson, a team spokesperson and the league confirmed Sunday.

  • The NFL on Sunday announced it was taking over an investigation the Panthers announce on Friday they were conducting into the allegations.

    Richardson, 81, allegedly made verbal comments about women’s appearances, inappropriately touched female employees and made advances to women that included asking whether he could shave their legs and for them to give him foot rubs.

    Along with the allegation of using a racial slur that led to a settlement with the scout, SI notes comments made by Richardson about black players’ appearances and his threat to discipline players who addressed social issues.

    According to SI, Richardson and the Panthers reached confidential settlements with complainants that included nondisclosure and non-disparagement clauses. The SI report describes the settlements’ value as “significant.”

    Richardson was awarded the franchise in October 1993. The Panthers played their first season in 1995. Richardson previously had a plan in place that called for the team to be sold within two years of his death.

    Richardson reached a deal with Charlotte officials in 2013 when the city agreed to pay $87.5 million in upgrades to Bank of America Stadium that would keep the Panthers there through June 2019.

    Bruton Smith, the owner of Speedway Motorsports Inc., that owns Charlotte Motor Speedway and other tracks on the NASCAR circuit, said last year he would be interested in purchasing the team.

    Forbes placed the value of the Panthers at $2.3 billion in September. Richardson and investors paid $206 million for the team in ’93.

    Charlotte-based sports marketing executive Max Muhleman, who helped Richardson bring the team to the Carolinas through the sale of personal seat licenses (PSLs) that financed the stadium, was sad to hear the news the team was being sold.

    “If that is his wish, he will leave one of sport’s most remarkable legacies for, hopefully, generations of Carolinas to come,” Muhleman told ESPN.com.

    The Panthers are 10-4 after Sunday’s 31-24 win over Green Bay and tied with New Orleans atop the NFC South. They are only two years removed from a 15-1 2015 regular-season in which they lost Super Bowl 50 24-10 to Denver.

    Carolina also reached the Super Bowl following the 2003 season, losing to New England.

    Richardson’s promised when purchased the team to bring the Carolinas a Super Bowl victory. He reiterated that in the letter.

    “I hope everyone in this organization, both on and off the field, will be firmly focused on just one mission: to play and win the Super Bowl,” Richardson wrote. “While I will no longer be the team owner, I will always be the Panthers Number One fan.”

    Trump criticizes how Mueller obtained transition emails, says no plans to fire special counsel

    President Trump appeared to back the claims of a lawyer for his presidential transition team that special counsel Robert S. Mueller III improperly obtained Trump associates’ emails, saying Sunday that “a lot of lawyers thought that was pretty sad.”

    Trump also said he has no plan to fire Mueller, who is investigating Russian interference in the presidential election, including the possibility of coordination with the Trump campaign. Mueller’s investigation has resulted in charges against two people and guilty pleas by two others, including former national security adviser Michael Flynn.

    “Not looking good. It’s not looking good,” Trump said when asked whether Mueller had received the transition documents improperly.

    A lawyer for Trump’s transition team contends that Mueller should not have been able to obtain a trove of emails from the period between Trump’s 2016 election victory and his Jan. 20 inauguration without the consent of transition officials.

    The batch of emails totaling thousands of pages of communications was provided to Mueller by the federal General Services Administration, the lawyer representing the organization known as Trump for America said in a letter delivered to congressional investigators Saturday.

    “This morning we sent a letter to Congress concerning the unauthorized sharing of private and transition emails with the Mueller team,” lawyer Kory Langhofer said in an interview Saturday.

    A spokesman for Mueller’s team rejected the allegations of impropriety.

    “When we have obtained emails in the course of our ongoing criminal investigation, we have secured either the account owner’s consent or appropriate criminal process,” said Peter Carr, a spokesman for Mueller’s office.

    The letter from Langhofer is the latest in a series of legal and public relations moves by Trump’s allies to attempt to undermine Mueller’s investigation and portray it as politically motivated.

    “It’s quite sad to see that. My people were very upset,” Trump told reporters at the White House about the transition emails upon his return from a weekend trip to Camp David.

    “I can’t imagine there’s anything on them, because as we said there’s no collusion,” Trump said. “There was no collusion whatsoever.”

    Some of the president’s supporters have urged him to fire Mueller, but the White House has consistently said there is no discussion about getting rid of the special counsel.

    Special Counsel Robert S. Mueller III departs after a meeting with members of the Senate Judiciary Committee on June 17. (J. Scott Applewhite/AP)

    “No, I’m not,” Trump responded Sunday when asked if he intended to fire Mueller.

    The letter from Langhofer, who was counsel to Trump for America, alleged that career employees of the GSA improperly provided privileged communications to investigators working for Mueller.

    Transition documents are private property, not government records, the transition team contends. The letter invokes federal law and what Langhofer calls decades of precedent to argue that Mueller overstepped.

    The transfer of transition documents is “unlawful conduct that undermines the Presidential Transition Act of 1963,” the letter said, “and will impair the ability of future presidential transition teams to candidly discuss policy and internal matters that benefit the country as a whole.”

    The letter was sent to the House Oversight and Government Reform Committee as well as the Senate Homeland Security and Governmental Affairs Committee.

    The Trump transition alleges that the handover was done by “career staff at the General Services Administration” and suggested that those employees may have had political motives.

    But some legal experts challenged Langhofer’s charge that anything improper occurred.

    Randall Eliason, a former federal prosecutor who teaches white collar crime at George Washington University Law School, said it was not at all surprising that Mueller’s team sought Trump transition emails. “It would be almost prosecutorial misconduct for them not to,” he said. He said it was also not surprising that Mueller would ask GSA for emails sent using government accounts.

    “It’s not your personal email. If it ends in .gov, you don’t have any expectation of privacy,” he said.

    But he said if Trump’s team had a valid legal claim, there is a standard avenue to pursue — they would file a sealed motion to the judge supervising the grand jury and ask the judge to rule the emails were improperly seized and provide a remedy, like requiring Mueller’s team to return the emails or excluding their use in the investigation.

    “You go to the judge and complain,” he said. “You don’t issue a press release or go to Congress. It appears from the outside that this is part of a pattern of trying to undermine Mueller’s investigation.”

    Eliason said he could think of “no apparent privilege” that would apply to emails sent between private citizens who have not yet joined the government, as Trump’s team suggested.

    Trump’s lawyers were given a courtesy notice that the transition team lawyer planned to register a complaint, according to a person familiar with the discussion. The transition team lawyer learned of the records being provided to Mueller by GSA on Tuesday when a member of the transition was being interviewed by investigators and was shown a copy of their own email using transition account.

    One White House adviser disputed pundits’ and lawyers’ claims that the only way the transition could object was to file a motion before the chief judge overseeing the grand jury.

    “This wasn’t a subpoena pursuant to a grand jury. GSA just turned them over,” the adviser said.

    The president’s lawyers are scheduled to meet with Muller’s team later this week for a status conference. His lawyers are expected to ask the special counsel if there are any other outstanding questions or materials that the team needs before it brings its probe to conclusion.

    Democrats were quick to challenge the charge that either GSA or Mueller’s team acted improperly.

    Rep. Elijah E. Cummings of Maryland, the senior Democrat on the Oversight and Government Reform Committee, said the 1963 Presidential Transition Act “simply does not support withholding transition team emails from criminal investigators.”

    “The President’s lawyers have said they want to fully comply with Special Counsel Mueller’s investigation, so it is odd that they now suggest they would have withheld key documents from federal investigators,” Cummings said in a statement.

    On Sunday, a Republican aide to the House Oversight and Government Reform Committee said the specific issues raised in Langhofer’s letter should be dealt with by the legal system — not Congress.

    “To the extent the letter raises issues on how to improve subsequent transitions, the Committee takes the letter under advisement,” the aide said in an email.

    The GSA provided facilities to the Trump transition team in the weeks before Trump’s Jan. 20 inauguration. Langhofer claims that GSA had assured Trump for America that while it retained copies of transition records, it would not release them without consulting the organization.

    GSA Deputy Counsel Lenny Loewentritt disputed Langhofer’s claim in an interview with BuzzFeed News Saturday. He told the news site that members of the transition team were informed that by using devices provided by GSA, materials “would not be held back in any law enforcement” requests.

    GSA did not respond to a request for comment from The Washington Post.

    Mueller’s team, Langhofer’s letter said, “has extensively used the materials in question, including portions that are susceptible to claims of privilege, and without notifying TFA or taking customary precautions to protect TFA’s rights and privileges.”

    This story has been updated to include analysis of Langhofer’s letter from a legal expert, a response from a key Democratic congressman and additional context.

    Mike DeBonis, Rosalind S. Helderman and Carol Leonnig contributed to this report.

    Rep. Ruben Kihuen won’t seek reelection amid sexual harassment allegations


    Rep. Ruben Kihuen. (Cliff Owen/AP)

    Rep. Ruben Kihuen (D-Nev.) will not seek reelection next year amid allegations that he sexually harassed women, making him the seventh  — and youngest — member of Congress felled by reports of misconduct since October.

    Once considered a rising star in Democratic politics, Kihuen announced Saturday that he will leave Congress at the end of his first term.

    “I want to state clearly again that I deny the allegations in question,” Kihuen, 37, said in a statement. “However, the allegations that have surfaced would be a distraction from a fair and thorough discussion of the issues in a reelection campaign. Therefore, it is in the best interests of my family and my constituents to complete my term in Congress and not seek reelection.”

    The announcement, first reported by the Las Vegas Review-Journal, came the day after the House Ethics Committee said it had launched an investigation into Kihuen’s behavior. He plans to cooperate with the probe and looks forward to “clearing my name,” according to his statement.

    Kihuen’s plan to not seek reelection is the latest sign of the reckoning over sexual harassment allegations on Capitol Hill. Leaders are grappling with how to address an increasing number of accusations against members and staff, as well as how to improve the system for reporting workplace violations in congressional offices.

    Kihuen has been accused of making unwanted advances toward multiple women, including an employee on his 2016 congressional campaign and a lobbyist during his time as a state legislator.

    After the first set of allegations, House Minority Leader Nancy Pelosi (D-Calif.) and the Democratic Congressional Campaign Committee called for him to step aside.

    “I’ve asked for him to resign. I’ve asked for him to resign right from the start,” Pelosi said Thursday at a news conference.

    Kihuen has faced growing pressure from leaders to step down as allegations continued to mount in recent days. Democrats hope to use sexual harassment as a cudgel against President Trump and Republicans in the 2018 election cycle, and are working to enforce a zero-tolerance policy within their ranks.

    On Friday, BuzzFeed reported that a woman who worked at Kihuen’s condo building in Las Vegas said he made inappropriate comments toward her and sent flirtatious text messages. And just after news of Kihuen’s plans broke Saturday, the Nevada Independent published allegations from a woman who works for a firm that did business with Kihuen’s campaign. She said he made unwanted advances, including rubbing her lower back and kissing her face several times at a fundraiser.

    BuzzFeed previously had reported that Kihuen’s former campaign finance director, identified only as “Samantha,” said he propositioned her for dates and twice touched her thighs without consent. When that story came out, Kihuen apologized for any behavior that made the woman feel uncomfortable.

    The second set of allegations came from an unnamed lobbyist, who told the Nevada Independent that Kihuen touched her thighs and buttocks without consent and sent her hundreds of suggestive text messages, which the Independent reviewed. The lobbyist said the two never dated.

    Kihuen, at that time, told the news outlet that he would not comment on his dating “relationships” as a state legislator.

    In his decision, Kihuen joins Rep. Blake Farenthold (R-Tex.), who announced Thursday that he won’t seek reelection amid allegations of sexual harassment. Farenthold has denied engaging in improper conduct, but faced mounting reports of misbehavior from former staff members. He settled a sexual harassment complaint with his former communications director in 2014.

    Other members to recently step aside over harassment allegations include Rep. John Conyers Jr. (D-Mich.), who resigned after multiple former aides accused him of unwanted advances and mistreatment, and Sen. Al Franken (D-Minn.), who said this month he would leave Capitol Hill in the “coming weeks” after several women said he touched them inappropriately. Both have denied wrongdoing.

    Rep. Trent Franks (R-Ariz.) announced he would resign effective Jan. 31, after House officials learned that he had asked two female employees to bear his child as a surrogate.

    Rep. Joe Barton (R-Tex.) last month announced that he will not seek another term after news reports revealed the longtime congressman had carried on extramarital relationships with multiple women before his 2015 divorce.

    Rep. Tim Murphy (R-Pa.) in October resigned after a news report claimed that the married Republican had asked a woman with whom he had an extramarital affair to get an abortion.

    Mike DeBonis contributed to this report.

    Head of Pentagon’s secret ‘UFO’ office sought to make evidence public

    Just before leaving his Defense Department job two months ago, intelligence officer Luis Elizondo quietly arranged to secure the release of three of the most unusual videos in the Pentagon’s secret vaults: raw footage from encounters between fighter jets and “anomalous aerial vehicles” — military jargon for UFOs.

    The videos, all taken from cockpit cameras, show pilots struggling to lock their radars on oval-shaped vessels that, on screen, look vaguely like giant flying Tic Tacs. The strange aircraft — no claims are made about their possible origins or makeup — appear to hover briefly before sprinting away at speeds that elicit gasps and shouts from the pilots.

    Elizondo, in an internal Pentagon memo requesting that the videos be cleared for public viewing, argued that the images could help educate pilots and improve aviation safety. But in interviews, he said his ultimate intention was to shed light on a little-known program Elizondo himself ran for seven years: a low-key Defense Department operation to collect and analyze reported UFO sightings.

    The existence of the program, known as the Advanced Aviation Threat Identification Program, was confirmed officially for the first time Saturday by a Pentagon spokesman. The acknowledgment came in response to media inquiries, which were generated in part by a start-up company Elizondo has joined since retirement. The private company specializes in promoting UFO research for scientific and entertainment purposes.

    Current and former Pentagon officials confirm that the Pentagon program has been in existence since 2007 and was formed for the purpose of collecting and analyzing a wide range of “anomalous aerospace threats” ranging from advanced aircraft fielded by traditional U.S. adversaries to commercial drones to possible alien encounters. It is a rare instance of ongoing government investigations into a UFO phenomenon that was the subject of multiple official inquiries in the 1950s and 1960s.

    Spending for the program totaled at least $22 million, according to former Pentagon officials and documents seen by The Washington Post, but the funding officially ended in 2012. “It was determined that there were other, higher priority issues that merited funding and it was in the best interest of the DOD to make a change,” Pentagon spokesman Tom Crosson explained in a statement.

    But officials familiar with the initiative say the collection effort continued as recently as last month. The program operated jointly out of the Pentagon and, at least for a time, an underground complex in Las Vegas managed by Bigelow Aerospace, a defense contractor that builds modules for space stations. It generated at least one report, a 490-page volume that describes alleged UFO sightings in the United States and numerous foreign countries over multiple decades.

    Neither the Pentagon nor any of the program’s managers have claimed conclusive proof of extraterrestrial visitors, but Elizondo, citing accounts and data collected by his office over a decade, argues that the videos and other evidence failed to generate the kind of high-level attention he believes is warranted. As part of his decision to leave the Pentagon, he not only sought the release of videos but also penned a letter to Defense Secretary Jim Mattis complaining that a potential security threat was being ignored.

    “Despite overwhelming evidence at both the classified and unclassified levels, certain individuals in the [Defense] Department remain staunchly opposed to further research on what could be a tactical threat to our pilots, sailors and soldiers, and perhaps even an existential threat to our national security,” Elizondo said in the letter, a copy of which was provided to The Post.

    The first public revelations of the program came in a video conference aired in October by To the Stars Academy of Arts and Sciences, the firm Elizondo joined as a consultant after retiring from his Pentagon job. The New York Times and Politico reported the existence of the program on their websites Saturday. The Washington Post conducted several confidential interviews over two months with Elizondo and Christopher Mellon, a former deputy assistant secretary of defense for intelligence who also is an officer of the private firm.

    Documents provided by the former officials included letters of support by former Senate majority leader Harry M. Reid (D-Nev.), a key backer of the initiative who helped secure funding for the program and sought to ensure a high degree of secrecy. Elizondo said knowledge of the program was limited, even within the Pentagon itself. He said the program had multiple enemies at senior levels of the department, from officials who were either skeptical or ideologically opposed to AATIP’s mission.

    “I was honored to serve at the DOD and took my mission of exploring unexplained aerial phenomena quite seriously,” Elizondo said. “In the end, however, I couldn’t carry out that mission, because the department — which was understandably overstretched — couldn’t give it the resources that the mounting evidence deserved.”

    It is difficult to draw conclusions about the nature of the unidentified vessels from the videos alone. Experts generally urged caution, explaining that reported UFO sightings often turn out of have innocuous explanations.

    A retired Navy pilot contacted by The Post who was involved in a 2004 encounter depicted in one of the videos confirmed that the images accurately reflected his recollection of the events. The pilot would only speak on the condition of anonymity.

    Elizondo, a 22-year veteran of the department who has held top security clearance and worked on secret counterintelligence missions, said he chose to join the private venture because he believed it was the best way to continue the work he was unable to complete as a government employee.

    “I left to find an environment where investigating these phenomena is priority number one,” he said.

    Words banned at multiple HHS agencies include ‘diversity’ and ‘vulnerable’

    The Trump administration has informed multiple divisions within the Department of Health and Human Services that they should avoid using certain words or phrases in official documents being drafted for next year’s budget.

    Officials at the Centers for Disease Control and Prevention, which is part of HHS, were given a list of seven prohibited words or phrases during a meeting Thursday with senior CDC officials who oversee the budget. The words to avoid: “vulnerable,” “entitlement,” “diversity,” “transgender,” “fetus,” “evidence-based” and “science-based.”

    A second HHS agency received similar guidance to avoid using “entitlement,” “diversity” and “vulnerable,” according to an official who took part in a briefing earlier in the week. Participants at that agency were also told to use “Obamacare” instead of ACA, or the Affordable Care Act, and to use “exchanges” instead of “marketplaces” to describe the venues where people can purchase health insurance.

    At the State Department, meanwhile, certain documents now refer to sex education as “sexual risk avoidance.”

    The colleague who provided the briefing at the second HHS agency relied on a document from the Office of Management and Budget detailing guidance for the fiscal 2019 budget, said the official in an interview Saturday. No explanations were given for the language changes. The HHS official spoke on the condition of anonymity because the language change information was supposed to be “close hold.” The person did not want to name the agency to protect the identity of officials involved in the talks.

    It’s not clear whether other federal agencies have been instructed to avoid certain words, and if so, to what extent, in preparing their budget documents for next year. Officials interviewed at the two HHS agencies said the language restriction was unusual and a departure from previous years.

    The OMB oversees the process that culminates in the president’s annual budget proposal to Congress. That budget document, usually several volumes, is generally shaped to reflect an administration’s priorities. An OMB spokesman did not respond to a request for comment.

    News of the directives to stop using these words and phrases drew outcry from scientific groups, researchers and advocacy organizations who took to Twitter and other social media.

    Rush Holt, chief executive of the American Association for the Advancement of Science, said: “Among the words forbidden to be used in CDC budget documents are ‘evidence-based’ and ‘science-based.’ I suppose one must not think those things either. Here’s a word that’s still allowed: ridiculous.”

    Mara Keisling, executive director of the National Center for Transgender Equality, noted that CDC’s own research suggests that transgender people face a higher risk of being infected with HIV.

    A CDC study published in August, which analyzed 9 million agency-funded HIV tests, determined that transgender women “had the highest percentage of confirmed positive results (2.7%) of any gender category.”

    “To pretend and insist that transgender people do not exist, and to allow this lie to infect public health research and prevention is irrational and very dangerous, and not just to transgender people,” Keisling said in an email.

    While HHS staffers were directly notified about how they must change the language they use when preparing budget documents, a shift is happening in other departments as well.

    At the State Department, for example, employees received a guidance document on Wednesday that outlined how they should develop country operating plans under the President’s Plan for Emergency AIDS Relief (PEPFAR) for 2018. This document repeatedly uses the phrase “sexual risk avoidance,” which has been defined in recent congressional funding bills as abstinence-only practices until marriage, as the primary form of sex education.

    Jen Kates, vice president and director of global health and HIV policy at the Kaiser Family Foundation, said in an interview Saturday that while the document does not specifically change how much money should be spent on abstinence-only programs under PEPFAR, the heavy emphasis on it could shift priorities on how money is spent overseas.

    “It’s a change, and the language in these documents does matter, because that’s what’s communicated to the teams in the field,” Kates said, adding that it’s “too early to tell” how this might translate into funding changes.

    According to a database compiled by the Foundation for AIDS Research, or Amfar, the amount of money that has been allotted for “Abstinence/Be Faithful” programs under PEPFAR fell from a high of $258.3 million in 2008 to $20.1 million in 2017. As a share of overall PEPFAR funding, this represented a decline from 7 percent to 1 percent.

    The same guidance document includes a line touting the efficacy of abstinence-only programs, referring to “abstinence as a highly effective form of prevention.”

    Several public health experts questioned that assertion, noting that multiple studies have shown that there is little evidence this form of education either delays sexual activity or reduces the number of sexual partners a person has. A nine-year congressionally mandated study concluded in 2007 that teenagers enrolled in abstinence-only programs were no more likely to refrain from having sex than those who did not enroll. Among those who did have sex, the study found, there was no difference in when they began to engage in this activity or how many partners teens in each group had.

    Jesse Boyer, senior policy manager at the Guttmacher Institute, said in an interview Saturday that the “rebranding” of abstinence programs with the term “sexual risk avoidance” would not make them more effective.

    “It’s the continual promotion of a coercive and ideological agenda over what the science and research tells us what young people need to lead healthy lives,” she said.

    A State Department spokeswoman declined to comment Saturday.

    The HHS official who received the briefing on language changes said the reaction among participants was similar to that at the CDC when budget analysts were informed they couldn’t use the seven words or phrases in drafting budget materials.

    “People were surprised, people were not thrilled,” the HHS official said. “We all kind of looked at each other and said, ‘Oh God.’ ”

    At the CDC, budget analysts were told they could use an alternative phrase instead of “evidence-based” or “science-based” in budget documents. That phrase is “CDC bases its recommendations on science in consideration with community standards and wishes,” said a budget analyst who took part in the 90-minute briefing. No alternatives were suggested for the other words.

    At the CDC, the briefing was led by a senior career civil servant in the office that oversees formulation of the agency’s budget. She opened the meeting by telling participants not to use the words “vulnerable,” “entitlement” and “diversity” because documents containing those words were being “flagged” by others higher up the chain in the budget process, and documents were being sent back to CDC for corrections.

    The civil servant then announced the additional words — “fetus,” “transgender,” “evidence-based” and “science-based” — that were not to be used. Another senior CDC budget person told the group that agency budget officials conducted a search across the agency’s budget documents and found that “evidence-based” and “science-based” were used so frequently that they were essentially meaningless, the analyst recalled.

    In a statement, HHS spokesman Matt Lloyd said: “The assertion that HHS has ‘banned words’ is a complete mischaracterization of discussions regarding the budget formulation process. HHS will continue to use the best scientific evidence available to improve the health of all Americans. HHS also strongly encourages the use of outcome and evidence data in program evaluations and budget decisions.”

    Lloyd declined to identify any specific inaccuracies in The Washington Post’s report about words that are prohibited in CDC budget documents. The CDC analyst said it was clear to participants that they were to avoid those words.

    “What would you call it when you’re told not to use those words?” the person said. “If that’s not a ban, maybe I need to improve my vocabulary.”

    The Winners and Losers in the Tax Bill

    BIG CORPORATIONS Industries like big retailers will benefit from the new corporate rate of 21 percent, since those companies pay relatively close to the full 35 percent rate. Other aspects of the corporate tax cuts will be enjoyed by an array of multinational industries, particularly technology and pharmaceutical companies, like Google, Facebook, Apple, Johnson Johnson and Pfizer. Such multinational companies have accumulated nearly $3 trillion offshore, mostly in tax haven subsidiaries, untouched by the United States taxman. The tax bill will force those companies to gradually bring that money home, but it will be taxed at rates ranging from 8 percent to 15.5 percent. That’s far lower than the current 35 percent tax rate on corporate profits and even lower than the new 21 percent rate.

    Plus, American companies will no longer owe full corporate taxes on future profits they say they earn abroad, providing more incentive to push income into tax haven subsidiaries. The law even includes provisions that could encourage companies to move workers abroad, despite pledges to do the opposite.

    MULTIMILLIONAIRES An exemption for estates that owe what Republicans call the “death tax” was lifted to $22 million from $11 million. That doesn’t matter much to billionaires like Charles Koch, but means a big tax cut for people with estates worth tens of millions of dollars.

    Plus, the top rate applying to wages and interest income would be cut to 37 percent from 39.6 percent.

    PRIVATE EQUITY MANAGERS During the campaign, Donald Trump railed against wealthy investment managers who, thanks to the so-called carried interest loophole, pay taxes on the majority of their pay at a lower capital gains rates. But the purported reform to this tax provision will affect few if any private equity managers, leaving the loophole intact.

    Photo

    Demonstrators protesting the tax plan last month. Thirteen million fewer Americans are projected to have health coverage.

    Credit
    Michael Reynolds/European Pressphoto Agency

    PRIVATE SCHOOLS AND THE PEOPLE WHO CAN AFFORD THEM Parents would be eligible to use a type of tax-preferred savings plan — known as a 529 plan — to save for their children’s’ elementary and secondary education. Right now, those savings plans are only eligible for college. But they would be expanded to allow for up to $10,000 a year for tuition at private and religious schools.

    THE LIQUOR BUSINESS Excise taxes for small brewers and distillers are reduced in the final agreement. Those industries are dominated by entrepreneurial small businesses often based in rural areas. They also have strong lobbyists, and many are based in states with powerful senators, like Senator Rob Portman of Ohio. Mr. Portman, who tucked a provision to help craft brewers into the Senate legislation, was part of the small team of lawmakers who merged the two bills into a final version.

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    ARCHITECTS AND ENGINEERS They were originally restricted in how much they could benefit from the new pass-through provision. If they structure their businesses a certain way, the final version will let them benefit fully.

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    TAX ACCOUNTANTS AND LAWYERS Mr. Trump once said his “dream” was to put tax preparation services out of business by simplifying the tax code. But the rushed legislation will probably have the opposite effect, as individuals try and make sense of the complicated new provisions, staggered dates and new rates. The uncertainty and confusion will probably create numerous new opportunities to game the system: tax preparers are sure to see a boom in business advising clients on how to restructure their employment and compensation arrangements to take advantage of the lower tax rates on income reported by corporations and pass-through entities.

    LOSERS

    PEOPLE BUYING HEALTH INSURANCE With the repeal of the individual mandate, some people who currently buy health insurance because they are required by law to do so are expected to go without coverage. According to the Congressional Budget Office, healthier people are more likely to drop their insurance, leaving insurers stuck with more people who are older and ailing. This is expected to make average insurance premiums on the individual market go up by about 10 percent. All told, 13 million fewer Americans are projected to have health coverage, according to the Congressional Budget Office.

    INDIVIDUAL TAXPAYERS IN THE FUTURE To stay under the $1.5 trillion limit for new deficits lawmakers set for themselves, they opted to make the cuts for individuals and families temporary, expiring at the end of 2025 — even as the corporate tax cuts will be permanent. Republicans are counting on a future Congress to extend the lower rates, as has happened in the past. But there are no guarantees, and that could mean a big tax increase down the road. What is more, the use of a different, less generous measure of inflation would push taxpayers into higher tax brackets more quickly.

    THE ELDERLY A 2010 law requires that any legislation that adds to the federal deficit be paid for by spending cuts, increases in revenue or other offsets. Some cuts would be automatic, and the biggest program to be affected is Medicare, the health insurance program for the elderly and disabled. Dozens of other programs are likely to be cut as well, but Medicare, which would face a 4 percent cut, is by far the biggest. Republicans say that this rule will be waived and the cuts will be averted, but that will take a bipartisan deal.

    LOW-INCOME FAMILIES Low-income families who claim the earned-income tax credit will lose out on at least $19 billion over the coming decade under the bill because of the change in the way inflation is calculated. And a new requirement that families claiming the child tax credit provide a Social Security number is projected to mean a big reduction in the families claiming it, since those who are not in the United States legally would be prohibited, even if their children were born in the United States.

    OWNERS OF HIGH-END HOMES Under current law, the interest on mortgages for first and second homes is deductible for the first $1 million of the loan. The overhaul would cut that to the first $750,000 and eliminate the owner’s ability in the current law to deduct the interest on a home-equity loan up to $100,000. This could drive down home prices in some high-end markets; good for prospective buyers but bad for prospective sellers.

    PEOPLE IN HIGH PROPERTY TAX, HIGH INCOME STATES Homeowners in high-tax states like New York, New Jersey and California could be big losers, particularly if they have high property taxes. Their ability to deduct their local property taxes and state and local income taxes from their federal tax bills is now capped at $10,000. In some cases, that could be offset by the lower tax rates that all taxpayers will owe on their ordinary income.

    PUERTO RICO Puerto Rico had sought an exemption from new taxes, citing the frail state of its economy nearly three months after Hurricane Maria. But no such luck. The tax bill treats affiliates of American companies on the island as if Puerto Rico were a foreign country and imposes a 12.5 percent tax on intellectual property. Puerto Rico’s governor, Ricardo A. Rosselló, said the tax would hurt the biomedical and technology affiliates that make up about a third of Puerto Rico’s tax base.

    THE INTERNAL REVENUE SERVICE The tax collection agency has been underfunded and understaffed for years. Now, it will have a raft of new tax rules to deal with that will require upgrading its software, printing new manuals and explaining to confused taxpayers how things work. All this is expected to take place while the commission is working under the supervision of an interim commissioner, who is expected to be replaced sometime next year.


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    Hundreds of homes in Montecito threatened as winds push Thomas fire toward coast; new evacuations

    New evacuation orders were issued in Santa Barbara County on Saturday as the Thomas fire took aim at the hills above Montecito, with some wind gusts reported up to 65 mph.

    Trump lawyer says Mueller obtained transition emails illegally

    A lawyer for President TrumpDonald John TrumpHouse Democrat slams Donald Trump Jr. for ‘serious case of amnesia’ after testimony Skier Lindsey Vonn: I don’t want to represent Trump at Olympics Poll: 4 in 10 Republicans think senior Trump advisers had improper dealings with Russia MORE‘s transition team said Saturday that Robert Mueller’s special counsel office obtained tens of thousands of emails from the Trump transition organization illegally, Reuters reports.

    Kory Langhofer, counsel to Trump for America (TFA), wrote a letter to several congressional committees claiming that Mueller’s team improperly obtained thousands of emails from the General Services Administration (GSA), where the Trump transition team housed its staffers during the transition.

    Langhofer’s letter accuses Mueller’s team of “unlawfully produc[ing] TFA’s private materials, including privileged communications, to the Special Counsel’s Office,” according to Reuters.

    The illegally obtained documents include “tens of thousands of emails,” the letter adds.

    The move from Mueller’s team to obtain the emails from the GSA stymied efforts from transition officials, who were prepared for Mueller’s request for the emails and had separated messages they believed contained privileged information. Mueller now has access to all of them.

    Langhofer’s letter, which was sent to the Senate Homeland Security and Governmental Affairs Committee and the House Oversight and Government Reform Committee, calls on the committees “to protect future presidential transitions from having their private records misappropriated by government agencies, particularly in the context of sensitive investigations intersecting with political motives.”

    Mueller’s investigation entered a new phase earlier this month when former national security adviser Michael Flynn pleaded guilty to lying to the FBI about his contacts with Russia.

    In a statement, the former Trump aide pledged to cooperate fully with the investigation, which has also ensnared other campaign officials including Trump’s former campaign chairman, Paul Manafort.

    What’s Next After the Repeal of Net Neutrality

    Are there benefits for consumers?

    To be sure, there are programs that consumers may like. ATT already offers its customers free streaming of DirecTV, which it owns. Other carriers like T-Mobile offer free streaming of apps like YouTube and Netflix, a practice known as “zero-rating,” which at one time was viewed as a potential net neutrality violation. More programs like that could come along.

    But it’s hard to see prices going down for internet service because of the end of net neutrality. Many economists say the only way prices could fall is through more competition in the broadband industry, which is now dominated by a handful of companies.

    What protections do consumers have?

    The net neutrality rules, passed in 2015 during the Obama administration, were intended to be a protective measure for consumers as more Americans migrated to the internet for communications. The regulations were also meant to make sure new and small companies, as well as media companies, could sell their goods and distribute information without restrictions from broadband companies.

    Ajit Pai, the current chairman of the F.C.C., said transparency would act as the primary measure against wrongdoing. The agency will require broadband companies to disclose if they are blocking or throttling or setting up fast lanes for certain traffic. Mr. Pai, a Republican nominated to the chairmanship by President Trump, said that the disclosure would give consumers full knowledge of what they would be getting into and that if they didn’t like the practices, they could switch providers.

    As part of the changes approved on Thursday, the F.C.C. handed oversight duties for the broadband carriers to the Federal Trade Commission. The F.C.C. said the F.T.C.’s broad antitrust and consumer protection laws were best suited to stop any harmful business practices. The F.T.C. has to monitor nearly every sector of the economy and is most likely to go after alleged bad actors when they are brought forward in a complaint, a costly and time-consuming process.

    What have the internet service providers said?

    Comcast, ATT and the major trade groups for broadband and cable providers say they don’t and will not block or throttle sites. They say they won’t engage in most forms of paid prioritization, the practice of charging sites more for faster delivery of streams and downloads.

    With legal challenges against the F.C.C. expected, many telecom experts say that the companies will largely to stick to those promises for at least the next year and that any changes to service will be subtle.

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    Is there any chance the 2015 rules will come back?

    The net neutrality debate has flared up multiple times over the last decade or so, ending in different places depending on the political party in power.

    Many Democrats on Capitol Hill have called for passing the Obama-era rules through legislation, instead of leaving the rule making in the hands of the F.C.C. Numerous Republicans have also suggested passing a law, though they generally argue for much lighter restrictions than the 2015 rules. Some Democratic lawmakers have also said they would overturn the F.C.C. action through a congressional review act, which would require a majority vote to abolish new agency rules. Given the Republican control in Washington, and the general gridlock in Washington, any sort of legislative resolution appears unlikely.

    Most certainly, there will be lawsuits, including by public interest groups such as Public Knowledge and the National Hispanic Media Coalition and by several state attorneys general, including those from New York and Pennsylvania. The suits are expected to be filed after the rules become official, which could be well into January or later.

    What are the potential legal arguments?

    Lawsuits will most likely claim, perhaps among other things, that the F.C.C. acted hastily and capriciously by abandoning the rules just two years after they were created. For instance, Eric Schneiderman, the New York attorney general, has said the F.C.C. should have delayed its vote on the ground that the law enforcement office found many public comments on net neutrality were fraudulent.

    And what about the F.C.C.? What is its main legal defense?

    It will probably argue that rolling back rules essentially returns the regulatory environment to the way it was before 2015, when there was little evidence of consumer harm.

    The agency is also likely to argue that it followed all the necessary procedures for making a regulatory change. The plan to overturn net neutrality was first announced in April by Mr. Pai.

    In a news conference on Thursday, after he had won the vote to overturn the rules, Mr. Pai said he was prepared for the legal challenges, using a tone of defiance and some sarcasm.

    “I’m shocked, shocked, that people are going to challenge this decision in court,” he said.

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    Female Kansas congressional candidate drops out over sexual harassment claim by male subordinate

    Given the months-long stream of allegations of sexual harassment by powerful people, the big political news in Kansas on Friday sounded numbingly familiar: A prominent Democratic congressional candidate quit the 2018 race after journalists unearthed a former subordinate’s claim of sexual harassment.

    But there was a twist. The candidate is a woman, Andrea Ramsey, and the alleged victim is a man who said she fired him for refusing her sexual advances more than a decade ago.

    Ramsey appears to be the first prominent woman accused of wrongdoing in the “Me Too” era, which ignited after prominent Hollywood actresses accused movie mogul Harvey Weinstein of sexual assault and abuse.

    In a Facebook post on Friday, Ramsey said the accusation against her was a “lie” by a disgruntled former employee.