Good morning, and welcome to The Epoch Times News Brief for Saturday, May 4, 2024. I’m Bill Thomas, and today, we’ve got a handful of intriguing stories for our weekend edition, from former President Donald Trump’s courtroom updates to a large SEC settlement, and a new twist in COVID-19 vaccine efficacy. Also, we have a story regarding Arkansas’s stance on federal education rules and a key IRS funding issue that you need to know about.
Trump Trial Witness Breaks Down in Tears
Hope Hicks, a former official in the Trump administration, testified in a Manhattan court that Michael Cohen, President Trump’s former attorney, made attempts to get involved in the campaign.Ms. Hicks confirmed that Mr. Cohen “went rogue” at times and took actions that the Trump campaign did not authorize. She also said that Mr. Cohen liked to call himself a “fixer,” or “Mr. Fix It.” Ms. Hicks broke down in tears during questioning about when she started working at the Trump Organization, and the judge called for a short break before she continued her testimony.
Ms. Hicks worked for President Trump’s 2016 campaign before becoming his aide, and was called to testify on Friday as part of the “hush-money” trial involving the former president.
Ms. Hicks also said Friday that she doesn’t believe Mr. Cohen personally paid off adult film performer Stormy Daniels, and she described him as a person who “seeks credit.”
During the proceedings Friday, Judge Juan Merchan told President Trump and his attorneys that he is able to testify in the case, responding to the former president who said just a day before that the judge’s gag order prevents him from doing so. The judge previously fined President Trump $9,000 for what he said were online posts that violated the gag order.
President Trump’s attorneys argue that the gag order violates his First Amendment rights, while President Trump himself criticized the trial as election interference.
The former president has denied allegations by Ms. Daniels and former model Karen McDougal, and he has pleaded not guilty.
Accounting Firm Whose Clients Included Trump Media to Shut Down After SEC Charges
BF Borgers CPA PC, a notable auditing firm with connections to high-profile clients such as Trump Media, has settled with the SEC for $12 million over the firm’s alleged failure to comply with the Public Company Accounting Oversight Board (PCAOB) standards in over 1,500 of its filings.The firm’s owner, Benjamin F. Borgers, is also implicated, agreeing to pay a $2 million civil penalty. Investigations revealed that about 75 percent of the firm’s filings from January 2021 to June 2023 did not meet PCAOB requirements. The firm also allegedly held fictitious planning meetings and reused old work papers.
Although BF Borgers and Mr. Borgers have settled the charges by consenting to the order, they’ve done so without admitting or denying the accusations. As part of the settlement, they face censure and are required to cease any further violations of securities laws.
Currently, BF Borgers has not issued any comments in response to these developments.
People With More COVID-19 Vaccine Doses More Likely to Contract COVID-19: Study
A new study from the Cleveland Clinic has revealed that individuals who received multiple COVID-19 vaccine doses were at a higher risk of contracting the virus compared to those who received fewer or no doses. Analysis showed that the risk of infection increased with each additional dose administered, with those receiving more than three doses being 2.5 times more likely to become infected.The increased risk persisted even after accounting for various factors. Although the reason for this finding remains unclear, researchers believe that the immunity developed from the vaccine might be weaker and less durable than from natural immunity, potentially heightening the risk of subsequent infections.
Despite these findings, the U.S. Centers for Disease Control and Prevention (CDC) maintains its recommendation for all individuals aged 6 months and older to receive COVID-19 vaccinations. However, the CDC has planned a meeting in mid-May to discuss whether to update the vaccine formulations to improve protection.
The study had certain limitations, including its use of a proxy to measure infection rates and not differentiating between symptomatic and asymptomatic infections. The authors of the study disclosed no conflicts of interest, and they also said that they received no funding.
Arkansas Gov. Sanders Issues Executive Order Defying Biden Admin’s Title IX Rule
Arkansas Gov. Sarah Huckabee Sanders has recently issued an executive order that challenges the Biden administration’s decision to extend Title IX protections to include transgender students.In her order, Ms. Sanders directs state educational institutions to adhere to the traditional understanding of sex, which she describes as an “immutable characteristic of the human body” firmly “rooted in biology and the created order.”
The governor also criticizes the Biden administration for putting the interests of “its left-wing base over students’ safety and best interests” by redefining “sex” under Title IX to include “gender identity.”
Ms. Sanders said in her order that the new rule’s expanded definition of sex to include sexual orientation and gender identity was “plainly ridiculous.” She said it would “lead to males unfairly competing in women’s sports; receiving access to women’s and girls’ locker rooms, bathrooms, and private spaces; and competing for women’s scholarships.”
Arkansas lawmakers have passed several laws in the past few years to protect sex-designated restrooms, ensure that students don’t share sleeping quarters with members of the opposite sex, guarantee fairness in women’s sports by barring the inclusion of males, and prevent the use of preferred pronouns at public schools and state-supported education institutions.
Under the executive order, Arkansas state schools and colleges are mandated to uphold these state laws.
Title IX is a landmark 1972 civil rights law that aims to eliminate discrimination based on sex in federally funded educational programs and to provide equal opportunities for women. The new rule, which redefines “sex” to include gender identity, was announced on April 19. Schools and colleges that fail to comply with this new rule may lose federal funding.
Ms. Sanders said her state would sue the Biden administration “for any financial loss, including loss of funding, incurred by the state due to the passage of the Biden administration’s un-scientific agendas.”
Over a dozen Republican-led states have filed lawsuits against the U.S. Department of Education, arguing that the new Title IX regulations are unlawful.
IRS Warns Low- to Middle-Income Taxpayers Could Make Up Bulk of Tax Audits
In a recent report, the IRS raised a flag about potential funding shortfalls, which might lead to an increase in tax audits, especially for lower- and middle-income taxpayers.The agency said that with the $80 billion funding from the Inflation Reduction Act (IRA), it has improved services and increased its focus on auditing the wealthiest taxpayers by hiring more enforcement staff such as accountants, engineers, economists, data scientists, attorneys, and tax experts with specialized skills.
However, the IRS warns that without continued funding, it may have to cut back on these staff members, which could shift more audit scrutiny towards less complex, lower-income tax returns.
Currently, the IRS aims to focus its enforcement efforts on large corporations, complex partnerships, and high-income individuals. It has pledged not to increase audit rates for small businesses and households earning less than $400,000 annually.
Despite these assurances, a 2023 report by the Treasury Inspector General for Tax Administration warned that the agency may be incapable of making income-based categorizations appropriately.
The IRS initially received $79.4 billion for these initiatives, but a part of this funding was later rescinded. The majority of the remaining funds, $44.2 billion, is set aside for enforcement activities, while only $3.2 billion is allocated for taxpayer service.
This year alone, the IRS plans to add over 5,500 tax enforcement agents in three categories—special agents, revenue officers, and revenue agents.
The Treasury Department estimates that with sustained funding, the IRS could bring in an additional $851 billion over the next decade. IRA funding is set to expire by 2031.
The Biden administration has proposed to extend this funding through fiscal year 2034. However, Republicans have criticized how the agency has used IRA funding, noting the relatively small amount of money used for taxpayer services.
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Finally, as we do each and every day on the News Brief program, we wrap things up with a very “notable” quote.
A world-famous doctor once said: “You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.”
The famous doctor who said that was the legendary Dr. Seuss. He was an American children’s author and cartoonist, and he’s famous for writing and illustrating more than 60 books, including “The Cat in the Hat,” “Green Eggs and Ham,” and “How the Grinch Stole Christmas.” Reading a Dr. Seuss book is the best medicine for whatever ails you!
For all of us here at The Epoch Times News Brief, I’m Bill Thomas, thanks a million for joining us today! Have an incredible weekend, and we’ll see you right back here next time for another edition of The Epoch Times News Brief.
