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Saturday, May 3, 2025

Trump officials explore challenging tax-exempt status of nonprofits, WSJ reports

 Officials in U.S. President Donald Trump’s administration are exploring ways of challenging the tax-exempt status of nonprofits, the Wall Street Journal reported on Saturday.

Internal Revenue Service lawyers have been exploring whether they could change the rules governing how nonprofit groups can be denied tax-exempt status, the Journal said, citing people familiar with the matter.

The IRS and the U.S. Treasury did not immediately respond to a Reuters request for a comment.

The meetings started taking place shortly after the Trump administration appointed Andrew De Mello as the new top interim lawyer at the IRS, the report added.

Another senior IRS official, Gary Shapley, separately said in at least one meeting that he was giving priority to investigating the tax-exempt status of a select group of nonprofit organizations, the report added.

U.S. President Donald Trump said on Friday his administration would revoke Harvard University’s tax-exempt status, returning to a threat he issued against it as part of his wider attack on elite universities he deems left-wing and anti-American.

https://www.investing.com/news/politics-news/trump-officials-explore-challenging-taxexempt-status-of-nonprofits-wsj-reports-4020954

FBI Reportedly Places Infamous Censorship Agent On 'Terminal Leave'

 Elvis Chan, the FBI’s Assistant Special Agent in Charge in San Francisco, has reportedly been placed on “terminal leave” and has not accessed agency systems for over a month, according to independent journalist Breanna Morello.

Chan has faced scrutiny for his alleged role in coordinating with social media platforms, including X (formerly Twitter), to censor conservatives during the 2020 presidential election, which saw President Joe Biden defeat President Donald Trump. In September 2023, House Judiciary Committee Chairman Jim Jordan (R-OH) issued a subpoena compelling Chan to testify about the FBI’s interactions with tech companies, which Jordan described as potential “coercion and collusion” to censor speech, according to the New York Post.

Chan, who served as a liaison to companies like Facebook and Twitter through the FBI’s Foreign Influence Task Force, did not attend a scheduled interview with the committee, prompting the subpoena, Jordan said, per the Post.

During a 2023 deposition with attorneys general from Louisiana and Missouri, Chan denied having “internal knowledge” of efforts to suppress a 2020 New York Post story about Hunter Biden’s laptop.

Morello notes:

The controversy surrounding Chan coincides with a 2023 ruling by the U.S. Fifth Circuit Court of Appeals, which found that the FBI, White House, U.S. Surgeon General, CDC, and CISA likely violated First Amendment rights by “coercing or significantly encouraging” social media platforms to censor content.

...

Chan, who identifies with “he/him” pronouns on his LinkedIn profile, still lists himself as the Assistant Special Agent in Charge at the FBI’s San Francisco Bay office, where he has served for over 19 years.

The FBI has not commented on Morello’s report.

The allegations against Chan come amid broader efforts by the Trump administration to protect free speech. In January, President Donald Trump signed an executive order prohibiting federal agencies from labeling citizen speech as “misinformation” or “disinformation.” Addressing the World Economic Forum, Trump said the order aimed to “safeguard free speech” and halt practices that “stifle the exchange of ideas.”

Last month, Secretary of State Marco Rubio announced the closure of the Global Engagement Center, a State Department entity criticized for its role in monitoring online speech. In an op-ed published in The Federalist, Rubio cited a 2020 GEC report that flagged speculation about COVID-19’s origins, including theories about a Wuhan lab, as part of a “Russian disinformation” campaign.
"Finally, as we recommit this country to its core constitutional free speech principles at home, we will remain vigilant abroad — not just against threats from adversaries such as Communist China but also from less expected countries where authoritarian censorship is gradually strangling true freedom of speech," Rubio added. "We are not afraid. At her birth, America was a lone beacon of freedom to the world. If necessary, we will happily be that lone beacon once again."

https://www.zerohedge.com/political/fbi-places-infamous-censorship-agent-terminal-leave-report

Warren Buffett's key comments at the Berkshire annual meeting

 Berkshire Hathaway Chairman and CEO Warren Buffett will preside over the company’s annual meeting. Track all of the day’s news and analysis here.

European Union To Ban Anonymous Crypto & Privacy Tokens By 2027

 by Zoltan Vardai via CoinTelegraph.com,

The European Union is set to impose sweeping Anti-Money Laundering (AML) rules that will ban privacy-preserving tokens and anonymous cryptocurrency accounts from 2027.

Under the new Anti-Money Laundering Regulation (AMLR), credit institutions, financial institutions and crypto asset service providers (CASPs) will be prohibited from maintaining anonymous accounts or handling privacy-preserving cryptocurrencies, such as Monero and Zcash.

“Article 79 of the AMLR establishes strict prohibitions on anonymous accounts [...]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts,” according to the AML Handbook, published by European Crypto Initiative (EUCI).

The AML Handbook. Source: EUCI

The regulation is part of a broader AML framework that includes bank and payment accounts, passbooks and safe-deposit boxes, “crypto-asset accounts allowing anonymisation of transactions,” and “accounts using anonymity-enhancing coins.”

“The regulations (the AMLR, AMLD and AMLAR) are final, and what remains is the ‘fine print’ — aka the interpretation of some of the requirements through the so-called implementing and delegated acts,” according to Vyara Savova, senior policy lead at the EUCI.

She added that much of the implementation will come through so-called implementing and delegated acts, which are mostly handled by the European Banking Authority:

“This means that the EUCI is still actively working on these level two acts by providing feedback to the public consultations, as some of the implementation details are yet to be finalized.”

“However, the broader framework is final, so centralized crypto projects (CASPs under MiCA) need to keep it in mind when determining their internal processes and policies,” Savova said.

EU to increase oversight of crypto service providers

Under the new regulatory framework, CASPs operating in at least six member states will be under direct AML supervision.

In the initial stage, AMLA plans to select 40 entities, with at least one entity per member state, according to EUCI’s AML Handbook. The selection process is set to start on July 1, 2027.

AMLA will use “materiality thresholds” to ensure that only firms with “substantial operations presence in multiple jurisdictions are considered for direct supervision.”

The thresholds include a “minimum of 20,000 customers residing in the host member state,” or a total transaction volume of over 50 million euros ($56 million).

Other notable measures include mandatory customer due diligence on transactions above 1,000 euros ($1,100).

These updates come as the EU ramps up its regulatory oversight of the crypto industry, building on previous measures such as the Markets in Crypto-Assets Regulation (MiCA).

https://www.zerohedge.com/crypto/european-union-ban-anonymous-crypto-privacy-tokens-2027

The Wait Is The Price: Quiet Rationing Plagues Canadian Health Care

 by Vincent Geloso via the American Institute for Economic Research (AIER),

Last month, a video was trending on social media showing a Canadian woman explaining that she had a 13-month wait for a magnetic resonance imaging (MRI) test to check for a brain tumor.

On X, formerly known as Twitter, community notes popped up to say that the video was misleading. “Priority is decided by physicians, not the province,” wrote one commenter. Another noted that wait times did vary by province.

None of this, however, detracts from the core truths:

  • Canadian health care is not free and it has two prices: 

    • the taxes Canadians pay for it

    • and the wait times that make Canadians pay in the form of service rationing.

Canada’s publicly provided health care system actually requires rationing in order to contain costs. Because services are offered at no monetary price, demand exceeds the available supply of doctors, equipment, and facilities. If the different provinces (which operate most health care services) wanted to meet the full demand, each would have to raise taxes significantly to fund services. To keep expenditures down (managing the imbalance from public provision) and thus taxes as well, the system relies on rationing through wait times rather than prices.

The rationing keeps many patients away from care facilities or encourages them to avoid dealing with minor but nevertheless problematic ailments. These costs are not visible in taxes paid for health care, but they are true costs that matter to people.

All this may sound like an economist forcing everything into the “econ box,” but the point has also been acknowledged by key architects of public health care systems themselves. Claude Castonguay, who served as Quebec’s Minister of Health during the expansion of publicly provided care, conceded as much in his self-laudatory autobiography. The reality, he explains, is that eliminating rationing would imply significantly higher costs—costs that politicians are generally unwilling to justify through the necessary tax increases. Multiple government reports also take this as an inseparable feature of public provision—even though they do not say it as candidly as I am saying it here.

To illustrate the magnitude of rationing (and the trend), one can examine the evolution of the median number of weeks between referral by a general practitioner and receipt of treatment from 1993 to 2024. In most provinces (except one), the median wait time in 1993 was less than 12 weeks. Today, all provinces are close or exceed 30 weeks. In two provinces, New Brunswick and Prince Edward Island, the median wait times exceed 69 weeks. For some procedures, such as neurosurgery, the wait time (for all provinces) exceeds 46 weeks.

Estimating the full cost of health care rationing is far from straightforward. The central challenge lies in balancing data reliability with the breadth of conditions considered. While some procedures and ailments are well documented, they represent only a subset of those subject to rationing. For many other conditions, data quality is limited or inconsistent, making comprehensive analysis difficult. As a result, most empirical studies focus narrowly on areas where measurement is more robust, leaving much of the total cost unaccounted for.

In 2008, the Canadian Medical Association (CMA) released a study estimating the economic cost of wait times for four major procedures: total joint replacement, cataract surgery, coronary artery bypass graft (CABG), and MRI scans. For the year 2007, the CMA estimated that the cost of waiting amounted to $14.8 billion (CAD). Relative to the size of the Canadian economy at the time, this represented approximately 1.3 percent of GDP. That study did not include, as one former president of the CMA noted, $4.4 billion in foregone government revenues resulting from reduced economic activity. It also does not include the cost of waiting times for new medications.

These procedures do not capture the full scope of delays in the system and only a few procedures—and the analysis focused only on an arbitrary definition of “excessive” wait times. In 2013, the Conference Board of Canada found that adding an extra two additional ailments boosted the cost from $14.8 billion to $20.1 billion.

Another study used a similar method, but considered the cost in terms of lost wages and leisure. It arrived at a figure, for 2023, of $10.6 billion or $8,730 per patient waiting.

One study attempted to estimate the cost of rationing in terms of lives lost. 

This may seem callous, but lives lost means lost productivity—a way to approximate the cost of wait times. One study found that one extra week of delay in the period between meeting with a GP and a surgical procedure increased death rates for female patients by 3 per 100,000 population. Given that the loss of a life is estimated at $6.5 million (CAD), this is not a negligible social cost in terms of mortality.

And all of this for what? One could argue that these wait times come with good care once obtained. That is not true either. 

Adjusting for the age of population, Canada ranks (out of 30):

  • #28 in doctors

  • #24 in care beds

  • #25 in MRI units

  • #26 in CT scanners

In one comparative study examining care outcomes—such as cancer treatment, patient safety, and procedural success—“Canada performed well on five indicators of clinical quality, but its results on the remaining six were rated as either average or poor.” This is despite, after again adjusting for population age structure, Canada ranking as the highest spender among a group of 30 comparable countries. The reality is that, whatever nuances one wishes to introduce—whether in good faith, pedantically, or simply to troll—the core message of the viral video remains accurate: Canadian health care works well for those who can afford to wait. To which I might add: wait very long.

https://www.zerohedge.com/medical/wait-price-quiet-rationing-plagues-canadian-health-care

Sex Offenders Make Up Large Share of Homeless Population, New Report Shows

 Most Americans understand the link between homelessness and crime. But activists and academics reject the connection, insisting that the homeless pose no elevated crime threat. A new report from the Cicero Institute complicates their argument, revealing that a large share of the nation’s homeless population is composed of registered sex offenders.

The report, covering 41 states, compared counts of sex offenders listed as “homeless” or “address unknown” on state registries with the federal Point-in-Time Count database to determine what proportion of a state’s homeless population appears on its sex-offender registry.

The results are alarming. Sex offenders account for more than 20 percent of the unsheltered homeless population in 20 states, and more than 10 percent in 32 states. In eight states—Connecticut, Delaware, Illinois, Massachusetts, North Carolina, Nebraska, Rhode Island, and Wisconsin—more than 50 percent of the unsheltered homeless population is on the sex-offender registry.

The median state’s share of sex offenders among its unsheltered population was 20 percent—higher than the proportions of families (5 percent), elderly (5 percent), veterans (5 percent), and transgender- or gender-nonconforming-identifying (1 percent) and HIV-positive persons (1 percent) combined.

Many sex offenders struggle to find work and therefore to afford housing. But that’s not the only reason that they are overrepresented on the streets: such offenders also have higher rates of cognitive impairmentssubstance abuse, and severe mental illness, each associated with higher rates of homelessness. And many shelters refuse to admit sex offenders, making them even more likely than other homeless subgroups to be unsheltered and living on the streets.

Many other misconceptions exist about sex offenders and the registry. For example, reform advocates assert that individuals often get registered for relatively low-level crimes, like public urination. Lourdes Portillo, a researcher at the UCSF Benioff Homelessness and Housing Initiative, suggested that the lack of public bathrooms could land some homeless people on the registry.

This is misleading. Prosecution and registration for indecent exposure, the category within which public urination is classified, is comparatively rare as an isolated offense without a criminal sexual motivation. Most states’ registries consist primarily of people who have committed serious offenses like rape or the sexual abuse of a child.

Sociologists often claim that sex offenders are not especially dangerous. That claim is also misleading—and even less relevant when it comes to homeless sex offenders, who have a heightened risk of recidivism. It’s true that, according to the Bureau of Justice Statistics, sex offenders have the second-lowest recidivism rate by offense type, after murderers. But there are strong reasons to be skeptical of these figures: incidents of sexual violence are grossly underreported. Moreover, sex offenders commit new sex crimes after their release at two to four times the rate of other offenders, suggesting a distinct pattern of specialization.

Homeless individuals are generally more likely to commit crimes than non-homeless people. The San Diego District Attorney’s office found that homeless individuals were hundreds of times more likely than the general population to commit crimes like robbery, arson, and assault. A large study of homelessness by UCSF’s Benioff Initiative found that nearly eight in ten homeless people reported going to jail, and more than three in ten had been in prison. The literature on recidivism indicates that homeless offenders are much more likely than non-homeless offenders to commit new crimes.

Despite these risks, the U.S. Department of Housing and Urban Development allows publicly funded programs to include sex offenders in facilities and services that help women, children, and other vulnerable populations. This misguided policy may be one reason why homeless people have such high rates of sexual victimization—they are forced to live around sexual victimizers.

More research is needed to determine which policy interventions can best mitigate sex-offender homelessness. While many criminologists point to residence restrictions and community-notification policies as potential drivers of homelessness, the scholarly literature is inconclusive, partly because these policies are not consistently enforced.

Meantime, policymakers should use available tools of social control to reduce the public-safety risks posed by large numbers of sex offenders living on the street. They can enforce prohibitions against street camping and failing to register or provide an address; restrict the parole of sex offenders lacking a housing plan; and expand the use of sex-offender civil-commitment laws.

The prevalence of unhoused sex offenders should motivate municipalities to adopt a more assertive approach to street homelessness. Failure to act leaves communities—including vulnerable homeless individuals—less safe.

Friday, May 2, 2025

Richard Grenell’s Favorite Yet ‘Unsexy’ Role: Registering California Voters

 The night before former Vice President Kamala Harris re-emerged on the political scene in a speech rallying Democrats to “lock in” to fight President Trump, one of Trump’s top lieutenants issued a warning.

If Harris attempts to rehabilitate her political career by running for governor of California, Richard Grenell, Trump’s envoy for special missions, reiterated his plans to consider jumping into the race himself.

“If she runs, I think Republicans have to rethink the fact that we have a shot,” he told a crowd at a private event in Calabasas, California, Tuesday night. “Yes, if she runs, I’m going to take a hard look at it.”

Right now, Grenell is serving as Trump’s interim director of the John F. Kennedy Center for the Performing Arts and longtime foreign policy adviser. In February, Grenell was instrumental in freeing five Americans held hostage in Venezuela, and over the last day, his name, along with several others, has been floated as a possible replacement for former National Security Adviser Mike Waltz. Trump announced Thursday that Waltz would be leaving the post to become United Nations ambassador in a major shakeup of his national security team.

Grenell, who refers to himself as the president’s “fixer,” is a close Trump confidante who has served in a variety of roles, including acting director of national intelligence and ambassador to Germany during Trump’s first term. Earlier this year, Grenell, known for his blunt talk and contentious approach to foreign policy, served as Trump’s emissary during the devastating California wildfires, strongly backing his calls to attach conditions to any federal disaster aid to help Los Angeles rebuild.

During the presidential transition, Grenell was a contender for secretary of state, but that role went to Marco Rubio. Now the roving envoy role gives Grenell the freedom to keep his options open and enter the crowded California gubernatorial field if the political dynamics seem right.

Even if Trump taps Grenell to fill the national security adviser role, he still has time to determine whether to jump into the California governor’s race. The election is more than a year and a half away, and candidates have until March 2026 to file their paperwork.

Over the last few weeks, as speculation swirled about Harris’ intentions, several candidates on both sides of the aisle have joined the race, including conservative commentator and Fox News contributor Steve Hilton and Biden’s Health and Human Services Secretary Xavier Becerra. The pool includes Republican and former Riverside Sheriff Chad Bianco, and several Democrats: Rep. Katie Porter, Lt. Gov. Eleni Kounalakis, State Senate President Pro Tem Toni Atkins, former Los Angeles Mayor Antonio Villaraigosa, former State Controller Betty Yee, State Superintendent of Public Instruction Tony Thurmond, and entrepreneur Stephen Cloobeck.

Whoever decides to run, the Democratic supermajority-controlled state is a long shot for Republicans. No GOP candidate has won statewide since Gov. Arnold Schwarzenegger’s landslide re-election in 2007. Without a Hollywood blockbuster movie star or another widely recognized personality in the mix, a Republican candidate for governor faces long odds.

Still, a late March poll showing Californians warming to the idea of a Republican governor is stirring hopes amid the GOP. Nearly 50% of likely California voters said they are now considering voting for a Republican for governor in 2026, with 71% expressing dissatisfaction over Gov. Gavin Newsom’s and legislative leaders’ records on addressing California’s high cost of living. Such a large field of Democratic gubernatorial candidates could divide Democratic and independent voters, giving a conservative or independent candidate a potential opening, but only if the number of right-leaning candidates in the race remains limited.  

So far, Grenell has said he’s focused on paving the way for conservative candidates across the state rather than throwing his own hat in the ring. He says his political action committee, Fix California, which he founded in 2021, registered 200,000 new conservative voters last year alone.

The group’s registration efforts have corresponded with a significant uptick in Republican voter registrations in recent years – some 775,000 new Republicans were added to the voter rolls since 2019, according to the California Republican Party. Over the last year, GOP voter registrations have increased by more than 100,000 while Democrats have declined by tens of thousands, according to reports from the California secretary of state.

The California GOP did not invest in those efforts, however, and several state conservative activists have said the credit goes to Grenell and Fix California.

Last year’s voter registration drive was particularly successful in flipping Congressional District 41 from blue, helping longtime California GOP Rep. Ken Calvert hold on to his seat in a tight re-election last year.

Grenell said he aims to replicate the results of Stacey Abrams’ Fair Fight organization’s five-year digital voter-registration program that made once-red Georgia a swing state, and similar efforts in Florida and Ohio. Fix California officials have identified 1.4 million Californians that it wants to register to vote by the 2026 midterm elections to help Trump maintain a Republican majority, avoid another round of impeachment efforts in Congress, and give a conservative candidate a better shot at a gubernatorial win.

“I do a lot of jobs, but Fix California is one of my favorites,” Grenell told supporters Wednesday night. “I don’t get paid. … I do all this work because I think that the only way to save this state is to do something that’s very unsexy – just register people to vote.”

Trump has thrown his support behind Fix California’s efforts, raising $3 million in one Los Angeles fundraiser in 2021, while first lady Melania Trump headlined another event which raked in $1 million, Grenell said.

Some 50% of Californians aren’t registered to vote, and of the 50% who are, only roughly 40% go and vote in any given election, Grenell said.

“You can’t have this small group of the same people who vote and pick our leaders,” Grenell added. “We have to expand the pool, and I believe that if we can do that, we can change Sacramento.”

There’s a good chance, he added, that those sitting on the sidelines in California, where Democrats hold all statewide elected offices and supermajorities in the legislature, are “commonsense conservatives” who don’t believe their vote will count or “aren’t charged up or they just want to mind their own business.”

Grenell is challenging all right-leaning candidates in the governor’s race to spend half of all money they raise on voter registration drives. “I’m tired of people running, raising millions of dollars, losing, and walking away with their own lists,” he said. “They lose, they walk away, and the next person has to start all over.”

Katie Zacharia, who serves as senior adviser to Fix California, says that the group’s efforts could be instrumental in helping Republicans win back swing California House seats because newly registered voters are highly likely to vote in the next election. Two Republican House members, former Reps. Michelle Steel and John Duarte, lost to Democratic challengers Derek Tran and Adam Gray, respectively, by less than one percentage point in November, while two other Republicans lost by just three percentage points.

“Statistically, 80% of those who are newly registered turn out,” Zacharia told RealClearPolitics.

In the aftermath of the devastating wildfires, Grenell suggests that Los Angeles County, with its 9.78 million population, is prime territory to pick up registrations from conservatives and independents fed up with the Democrats’ record of failed leadership.

Grenell predicted that Angelenos would support the strings he’s pressing Trump to attach to any release of federal wildfire disaster money to the state. Congress is set to consider that disaster relief package in the late spring or summer.

He also said he’s fighting to implement conditions for those federal funds “come hell or high water.” Grenell is pressing Trump to demand that state Democrats gut the California Environmental Quality Act, a series of regulations requiring state agencies to mitigate the environmental impacts of their work, and the elimination of the California Coastal Commission, which highly regulates building and development near beaches and coastlines.

Newsom earlier this year waived many aspects of both for the post-wildfire rebuilding process in Los Angeles, but eliminating the wide-ranging environmental laws in California is an ambitious, highly unlikely task, considering the supermajority control of both houses of the state legislature. California Attorney General Rob Bonta is already fighting several of Trump’s sweeping executive orders threatening its federal funding in court.

Yet, the wildfires shined such an intense national spotlight on California government mismanagement this year that Grenell believes there’s a unique but fleeting opportunity to shift California politics.

“Unless we shift the paradigm of voter registration, we are not going to win, but we do have a chance,” Grenell said. “The fires have given us an unbelievable moment. We cannot miss this moment.”