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  • Turmoil in courts on gun laws in wake of justices’ ruling

    Turmoil in courts on gun laws in wake of justices’ ruling

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    WASHINGTON (AP) — A landmark U.S. Supreme Court decision on the Second Amendment is upending gun laws across the country, dividing judges and sowing confusion over what firearm restrictions can remain on the books.

    The high court’s ruling that set new standards for evaluating gun laws left open many questions, experts say, resulting in an increasing number of conflicting decisions as lower court judges struggle to figure out how to apply it.

    The Supreme Court’s so-called Bruen decision changed the test that lower courts had long used for evaluating challenges to firearm restrictions. Judges should no longer consider whether the law serves public interests like enhancing public safety, the justices said.

    Under the Supreme Court’s new test, the government that wants to uphold a gun restriction must look back into history to show it is consistent with the country’s “historical tradition of firearm regulation.”

    Courts in recent months have declared unconstitutional federal laws designed to keep guns out of the hands of domestic abusers,felony defendants and people who use marijuana. Judges have shot down a federal ban on possessing guns with serial numbers removed and gun restrictions for young adults in Texas and have blocked the enforcement of Delaware’s ban on the possession of homemade “ghost guns.”

    In several instances, judges looking at the same laws have come down on opposite sides on whether they are constitutional in the wake of the conservative Supreme Court majority’s ruling. The legal turmoil caused by the first major gun ruling in a decade will likely force the Supreme Court to step in again soon to provide more guidance for judges.

    “There’s confusion and disarray in the lower courts because not only are they not reaching the same conclusions, they’re just applying different methods or applying Bruen’s method differently,” said Jacob Charles, a professor at Pepperdine University’s law school who focuses on firearms law.

    “What it means is that not only are new laws being struck down … but also laws that have been on the books for over 60 years, 40 years in some cases, those are being struck down — where prior to Bruen — courts were unanimous that those were constitutional,” he said.

    The legal wrangling is playing out as mass shootings continue to plague the country awash in guns and as law enforcement officials across the U.S. work to combat an uptick in violent crime.

    This week, six people were fatally shot at multiple locations in a small town in rural Mississippi and a gunman killed three students and critically wounded five others at Michigan State University before killing himself.

    Dozens of people have died in mass shootings so far in 2023, including in California, where 11 people were killed as they welcomed the Lunar New Year at a dance hall popular with older Asian Americans. Last year, more than 600 mass shootings occurred in the U.S. in which at least four people were killed or wounded, according to the Gun Violence Archive.

    The decision opened the door to a wave of legal challenges from gun-rights activists who saw an opportunity to undo laws on everything from age limits to AR-15-style semi-automatic weapons. For gun rights supporters, the Bruen decision was a welcome development that removed what they see as unconstitutional restraints on Second Amendment rights.

    “It’s a true reading of what the Constitution and the Bill of Rights tells us,” said Mark Oliva, a spokesman for the National Shooting Sports Foundation. “It absolutely does provide clarity to the lower courts on how the constitution should be applied when it comes to our fundamental rights.”

    Gun control groups are raising alarm after a federal appeals court this month said that under the Supreme Court’s new standards, the government can’t stop people who have domestic violence restraining orders against them from owning guns.

    The New Orleans-based 5th U.S. Circuit Court of Appeals acknowledged that the law “embodies salutary policy goals meant to protect vulnerable people in our society.” But the judges concluded that the government failed to point to a precursor from early American history that is comparable enough to the modern law. Attorney General Merrick Garland has said the government will seek further review of that decision.

    Gun control activists have decried the Supreme Court’s historical test, but say they remain confident that many gun restrictions will survive challenges. Since the decision, for example, judges have consistently upheld the federal ban on convicted felons from possessing guns.

    The Supreme Court noted that cases dealing with “unprecedented societal concerns or dramatic technological changes may require a more nuanced approach.” And the justices clearly emphasized that the right to bear arms is limited to law-abiding citizens, said Shira Feldman, litigation counsel for Brady, the gun control group.

    The Supreme Court’s test has raised questions about whether judges are suited to be poring over history and whether it makes sense to judge modern laws based on regulations — or a lack thereof— from the past.

    “We are not experts in what white, wealthy, and male property owners thought about firearms regulation in 1791. Yet we are now expected to play historian in the name of constitutional adjudication,” wrote Mississippi U.S. District Judge Carlton Reeves, who was appointed by President Barack Obama.

    Some judges are “really parsing the history very closely and saying ‘these laws aren’t analogous because the historical law worked in a slightly different fashion than the modern law’,” said Andrew Willinger, executive director of the Duke Center for Firearms Law.

    Others, he said, “have done a much more flexible inquiry and are trying to say ‘look, what is the purpose of this historical law as best I can understand it?’”

    Firearm rights and gun control groups are closely watching many pending cases, including several challenging state laws banning certain semi-automatic weapons and high-capacity magazines.

    A federal judge in Chicago on Friday denied a bid to block an Illinois law that bans the sale of so-called assault weapons and high-capacity magazines, finding the law to be constitutional under the Supreme Court’s new test. A state court, however, already has partially blocked the law — allowing some gun dealers to continue selling the weapons — amid a separate legal challenge.

    Already, some gun laws passed in the wake of the Supreme Court decision have been shot down. A judge declared multiple portions of New York’s new gun law unconstitutional, including rules that restrict carrying firearms in public parks and places of worship. An appeals court later put that ruling on hold while it considers the case. And the Supreme Court has allowed New York to enforce the law for now.

    Some judges have upheld a law banning people under indictment for felonies from buying guns while others have declared it unconstitutional.

    A federal judge issued an order barring Delaware from enforcing provisions of a new law outlawing the manufacture and possession of so-called “ghost guns” that don’t have serial numbers and can be nearly impossible for law enforcement officials to trace. But another judge rejected a challenge to California’s “ghost gun” regulations.

    In the California case, U.S. District Judge George Wu, who was nominated by President George W. Bush, appeared to take a dig at how other judges are interpreting the Supreme Court’s guidance.

    The company that brought the challenge —“and apparently certain other courts” — would like to treat the Supreme Court’s decision “as a ‘word salad,’ choosing an ingredient from one side of the ‘plate’ and an entirely-separate ingredient from the other, until there is nothing left whatsoever other than an entirely-bulletproof and unrestrained Second Amendment,” Wu wrote in his ruling.

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    Richer reported from Boston.

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  • Trump’s returns shed light on tax offsets, foreign accounts

    Trump’s returns shed light on tax offsets, foreign accounts

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    Democrats in Congress released thousands of pages of former President Donald Trump’s tax returns Friday, providing the most detailed picture to date of his finances over a six-year period, including his time in the White House, when he fought to keep the information private in a break with decades of precedent.

    The documents include individual returns from Trump and his wife, Melania, along with Trump’s business entities from 2015-2020. They show how Trump used the tax code to lower his tax obligation and reveal details about foreign accounts, charitable contributions and the performance of some of his highest-profile business ventures, which had largely remained shielded from public scrutiny.

    The disclosure marks the culmination of a yearslong legal fight that has played out everywhere from the presidential campaign to Congress and the Supreme Court as Trump persistently rejected efforts to share details about his financial history — counter to the practice of transparency followed by all his predecessors in the post-Watergate era. The records release comes just days before Republicans retake control of the House and weeks after Trump announced another campaign for the White House.

    The records show how Trump limited his tax liability by offsetting his income against corporate losses as well as millions of dollars in business expenses, asset depreciation and other deductions.

    While Trump paid $641,931 in federal income taxes in 2015, the year he began his campaign for president, he paid just $750 in 2016 and 2017, according to a report released last week by Congress’ nonpartisan Joint Committee on Taxation. He paid nearly $1 million in 2018, but only $133,445 in 2019 and nothing in 2020, the year he unsuccessfully sought reelection.

    The records also detail Trump’s foreign holdings.

    Trump, according to the filings, reported having bank accounts in China, Ireland and the United Kingdom in 2015 through 2017, even as he was commander in chief. Starting in 2018, however, he only reported an account in the U.K. The returns also show that Trump claimed foreign tax credits for taxes he paid on various business ventures around the world, including licensing arrangements for use of his name on development projects and his golf courses in Scotland and Ireland.

    In several years, Trump appears to have paid more in foreign taxes than he did in net U.S. federal income taxes, with income reported in countries including Azerbaijan, China, India, Indonesia, Panama, the Philippines, St. Martin, Turkey and the United Arab Emirates.

    The documents also show that Trump’s charitable donations often represented only a sliver of his income. In 2020, the year the coronavirus ravaged the economy, Trump reported no charitable donations at all. In 2019 and 2018 he reported writing checks for about $500,000 in donations. In earlier years the numbers were higher — $1.8 million in 2017 and $1.1 million in 2016.

    It’s unclear whether the reported sums included Trump’s $400,000 annual presidential salary, which he had said, as a candidate, that he would forgo and which he claimed he donated to various federal departments.

    Jeff Hoopes, an accounting professor at the University of North Carolina’s Kenan-Flagler Business School, described Trump’s returns as “large and complicated” with “hundreds of entities scattered all over the globe.”

    He noted that many of those entities are slightly unprofitable, which he described as “pretty magical as far as the tax code.”

    “It’s hard to know if someone’s really bad at business or really good at tax planning, because they both look like the same thing,” he said.

    Daniel Shaviro, a taxation professor at New York University, cited the large financial losses from so many of Trump’s businesses, despite their often healthy sales, as something that should raise suspicions from auditors. “There’s fishy looking stuff here.”

    Shaviro also cited examples of suspicious or sloppy math even in smaller businesses, such as an aviation firm dubbed “DT Endeavor I LLC,” which in 2020 reported both sales and expenses of $160,144. Such exact matches are unusual, Shaviro said. Yet the form also reported an $18,923 loss.

    “The return doesn’t say, ‘Guess what? I’m committing fraud,’” Shaviro said, “but there are red flags.”

    The release marks the latest setback for Trump, who has been mired in investigations, including federal and state inquiries into his efforts to overturn the 2020 election. The Department of Justice also has been investigating reams of classified documents found at his Mar-a-Lago club and possible efforts to obstruct the investigation.

    In a statement Friday, Trump lashed out at Democrats and the Supreme Court for the release.

    “It’s going to lead to horrible things for so many people,” he said. “The radical, left Democrats have weaponized everything, but remember, that is a dangerous two-way street!”

    He said the returns demonstrated “how proudly successful I have been and how I have been able to use depreciation and various other tax deductions” to build his businesses.

    The returns were released by the House Ways and Means Committee, which held a party-line vote last week to make the returns public after years of legal wrangling.

    The returns detail how Trump used tax law to minimize his liability, including carrying forward massive losses from previous years. Trump said during his 2016 campaign that paying little or no income tax in some years “makes me smart.”

    In 2020, more than 150 of Trump’s business entities listed negative qualified business income, which the IRS defines as “the net amount of qualified items of income, gain, deduction and loss from any qualified trade or business.” In total for that tax year, combined with nearly $9 million in carryforward loss from previous years, Trump’s qualified losses amounted to more than $58 million.

    Another of Trump’s money losers: the ice rink his company operated until last year in New York City’s Central Park. Trump reported a total of $2.6 million in losses from Wollman Rink over the six years made public. The rink, an early Trump Organization jewel run through a contract with New York City’s government, reported a loss of $1.3 million in 2015 despite taking in $9.3 million in revenue, according to the tax returns. The rink turned a $298,000 profit in 2016, but was back to melting cash in each of the next four years.

    “Trump seems to be creating huge losses that are suspicious or questionable under current law,” said Steven Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, who said he had spent 20 years preparing taxes for corporations and wealthy individuals and “never saw anyone lose money as regularly and as large as Trump lost money year after year.”

    “To me, Trump’s business operations were phenomenally unsuccessful and I struggle to figure out how much of it is attributable to Trump’s unluckiness as a businessman and how much of it is attributable to Trump’s inflation,” he said.

    Aspects of Trump’s finances had been shrouded in mystery since his days as an up-and-coming Manhattan real estate developer in the 1980s.

    Trump, known for building skyscrapers and hosting a reality TV show before winning the White House, did offer limited details about his holdings and income on mandatory disclosure forms and financial statements he provided to banks to secure loans and to financial magazines to justify his ranking on lists of billionaires.

    Trump’s longtime accounting firm has since disavowed the statements, and New York’s attorney general has filed a lawsuit alleging Trump and his Trump Organization fraudulently inflated asset values on the statements. Trump and his company have denied wrongdoing.

    In October 2018, The New York Times published a Pulitzer Prize-winning series based on leaked tax records that contradicted the image Trump had tried to sell of himself as a self-made businessman. It showed that Trump received a modern-day equivalent of at least $413 million from his father’s real estate holdings, with much of that money coming from what the Times called “tax dodges” in the 1990s.

    A second series in 2020 showed that Trump paid no income taxes at all in 10 of the previous 15 years because he generally lost more money than he made.

    In its report last week, the Ways and Means Committee indicated the Trump administration may have disregarded a requirement mandating audits of a president’s tax filings.

    The IRS only began to audit Trump’s 2016 tax filings on April 3, 2019 — more than two years into his presidency — when the Ways and Means chairman, Rep. Richard Neal, D-Mass., asked the agency for information related to the returns.

    Every president and major-party candidate since Richard Nixon has voluntarily made at least summaries of their tax information available to the public.

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    Associated Press writers Gary Fields, Paul Wiseman and Farnoush Amiri in Washington, Meg Kinnard in Columbia, South Carolina, and Nicholas Riccardi in Denver contributed to this report.

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  • Trump’s tax returns to be discussed by congressional panel

    Trump’s tax returns to be discussed by congressional panel

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    WASHINGTON — The Democratic-controlled House Ways and Means Committee is expected to vote Tuesday on whether to publicly release years of Donald Trump ’s tax returns, which the former president has long tried to shield.

    Committee Chairman Richard Neal, D-Mass., has kept a close hold on the panel’s actions, including whether the panel will meet in a public or private session. And if lawmakers move forward with plans to release the returns, it’s unclear how quickly that would happen.

    But after a yearslong battle that ultimately resulted in the Supreme Court clearing the way last month for the Treasury Department to send the returns to Congress, Democrats are under pressure to act aggressively. The committee received six years of tax returns for Trump and some of his businesses. And with just two weeks left until Republicans formally take control of the House, Tuesday’s meeting could be the last opportunity for Democrats to disclose whatever information they have gleaned.

    Trump has long had a complicated relationship with his personal income taxes.

    As a presidential candidate in 2016, he broke decades of precedent by refusing to release his tax forms to the public. He bragged during a presidential debate that year that he was “smart” because he paid no federal taxes and later claimed he wouldn’t personally benefit from the 2017 tax cuts he signed into law that favored people with extreme wealth, asking Americans to simply take him at his word.

    Tax records would have been a useful metric for judging his success in business. The image of a savvy businessman was key to a political brand honed during his years as a tabloid magnet and star of “The Apprentice” television show. They also could reveal any financial obligations — including foreign debts — that could influence how he governed.

    But Americans were largely in the dark about Trump’s relationship with the IRS until October 2018 and September 2020, when The New York Times published two separate series based on leaked tax records.

    The Pulitzer Prize-winning 2018 articles showed how Trump received a modern equivalent of at least $413 million from his father’s real estate holdings, with much of that money coming from what the Times called “tax dodges” in the 1990s. Trump sued the Times and his niece, Mary Trump, in 2021 for providing the records to the newspaper. In November, Mary Trump asked an appeals court to overturn a judge’s decision to reject her claims that her uncle and two of his siblings defrauded her of millions of dollars in a 2001 family settlement.

    The 2020 articles showed that Trump paid just $750 in federal income taxes in 2017 and 2018. Trump paid no income taxes at all in 10 of the past 15 years because he generally lost more money than he made.

    The articles exposed deep inequities in the U.S. tax code as Trump, a reputed multi-billionaire, paid little in federal income taxes. IRS figures indicate that the average tax filer paid roughly $12,200 in 2017, about 16 times more than the former president paid.

    Details about Trump’s income from foreign operations and debt levels were also contained in the tax filings, which the former president derided as “fake news.”

    At the time of the 2020 articles, Neal said he saw an ethical problem in Trump overseeing a federal agency that he has also battled with legal filings.

    “Now, Donald Trump is the boss of the agency he considers an adversary,” Neal said in 2020. “It is essential that the IRS’s presidential audit program remain free of interference.”

    The Manhattan district attorney’s office also obtained copies of Trump’s tax records in February 2021 after after a protracted legal fight that included two trips to the Supreme Court.

    The office, then led by District Attorney Cyrus Vance Jr., had subpoenaed Trump’s accounting firm in 2019, seeking access to eight years of Trump’s tax returns and related documents.

    The DA’s office issued the subpoena after Trump’s former personal lawyer Michael Cohen told Congress that Trump had misled tax officials, insurers and business associates about the value of his assets. Those allegations are the subject of a fraud lawsuit that New York Attorney General Letitia James filed against Trump and his company in September.

    Trump’s longtime accountant, Donald Bender, testified at the Trump Organization’s recent criminal trial that Trump reported losses on his tax returns every year for a decade, including nearly $700 million in 2009 and $200 million in 2010.

    Bender, a partner at Mazars USA LLP who spent years preparing Trump’s personal tax returns, said Trump’s reported losses from 2009 to 2018 included net operating losses from some of the many businesses he owns through his Trump Organization.

    The Trump Organization was convicted earlier this month on tax fraud charges for helping some executives dodge taxes on company-paid perks such as apartments and luxury cars.

    The current Manhattan district attorney, Alvin Bragg, told The Associated Press in an interview last week that his office’s investigation into Trump and his businesses continues.

    “We’re going to follow the facts and continue to do our job,” Bragg said.

    Trump, who refused to release his returns during his 2016 presidential campaign and his four years in the White House while claiming that he was under IRS audit, has argued there is little to be gleaned from the tax returns even as he has fought to keep them private.

    “You can’t learn much from tax returns, but it is illegal to release them if they are not yours!” he complained on his social media network last weekend.

    Republicans, meanwhile, have railed against the potential release, arguing that it would set a dangerous precedent.

    Rep. Kevin Brady of Texas, the Ways and Means Committee’s Republican leader, accused Democrats on the committee of “unleashing a dangerous new political weapon that reaches far beyond President Trump, and jeopardizes the privacy of every American.”

    “Going forward, partisans in Congress have nearly unlimited power to target political enemies by obtaining and making public their private tax returns to embarrass and destroy them,” Brady said in a statement. “We urge Democrats, in their rush to target former President Trump, not to unleash this dangerous new political weapon on the American people.”

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    Kinnard reported from Columbia, South Carolina. Associated Press writers Michael R. Sisak and Jill Colvin in New York contributed this report.

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