On The Money: Trump says he won't give up tax returns | Likely Dem chair vows to subpoena | Stocks rally on Dem House takeover | Tough midterm for many GOP tax writers

On The Money: Trump says he won't give up tax returns | Likely Dem chair vows to subpoena | Stocks rally on Dem House takeover | Tough midterm for many GOP tax writers
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THE BIG DEAL--Trump says he will refuse to release tax returns as long as they are under audit: President TrumpDonald John TrumpWatergate prosecutor says that Sondland testimony was 'tipping point' for Trump In private moment with Trump, Justice Kennedy pushed for Kavanaugh Supreme Court nomination: book Obama: 'Everybody needs to chill out' about differences between 2020 candidates MORE on Wednesday said he won't turn over his tax returns as long as they are under audit, setting up a potential fight with Democrats who are expected to demand the documents once they assume the majority in the House.

At a press conference at the White House, Trump was asked if he would comply with expected Democratic requests for his tax returns.

"They're under audit. They have been for a long time," Trump said, claiming that the documents are "extremely complex" and that people "wouldn't understand" them.

"If I were finished with the audit, I would have an open mind to it," Trump added. "When that happens, if that happens, I would certainly have an open mind to it."


The background:

  • The president broke with decades of precedent when he opted not to release his tax returns during the 2016 presidential campaign.
  • He has repeatedly claimed they are under audit, and therefore cannot be released, though the IRS has said that audits don't preclude people from releasing their own tax information.

The power play: Democrats are expected to demand Trump's tax returns at the start of the next session of Congress after winning back the House majority in Tuesday's midterms.

Under federal tax law, the chairmen of congressional tax committees can request tax returns from the Treasury Department and review them in a closed session before voting to make all or parts of the returns public.

Rep. Richard NealRichard Edmund NealOn The Money: Trump signs short-term spending bill to avoid shutdown | Pelosi casts doubt on USMCA deal in 2019 | California high court strikes down law targeting Trump tax returns Democrats press Trump officials over drop in ObamaCare signups amid website problems Pelosi casts doubt on USMCA deal in 2019 MORE (D-Mass.), who's expected to become chairman of the House Ways and Means Committee in January, said Wednesday that he expects the panel to request President Trump's tax returns.


What comes next: The decision on whether to release Trump's tax returns would fall to Treasury Secretary Steven MnuchinSteven Terner MnuchinTrump signs short-term spending bill to avert shutdown Trump awards Jon Voight, others National Medal of Arts Senate approves stopgap bill to prevent shutdown MORE.

Mnuchin told The New York Times earlier this month that he would work with the department's general counsel and the general counsel for the IRS to address any requests should Democrats win the House.

If the Trump administration refuses to provide Democrats with the tax returns, or stalls in providing them, the matter could end up in court.



Many authors of GOP tax law will not be returning to Congress: Many of the House Republicans who were on the powerful Ways and Means Committee when the GOP passed its tax-cut law last year will not be returning to Congress in 2019.

Half of the 24 Republicans who served in 2017 on the Ways and Means panel -- which has jurisdiction over health and trade issues in addition to taxes -- will not be back in the House next year, according to election results as of 10 a.m. Wednesday

Four GOP members of the committee are projected to lose their races: Reps. Peter Roskam Peter James RoskamFeehery: How Republicans can win back the suburbs Ex-GOP Rep. Roskam joins lobbying firm Blue states angry over SALT cap should give fiscal sobriety a try MORE (Ill.), Erik PaulsenErik Philip PaulsenTwo swing-district Democrats raise impeachment calls after whistleblower reports Hopes dim for passage of Trump trade deal Fight over Trump's new NAFTA hits key stretch MORE (Minn.), Carlos CurbeloCarlos Luis CurbeloRepublicans can't exploit the left's climate extremism without a better idea Progressive Latino group launches first incumbent protection campaign The Memo: Bad polls for Trump shake GOP MORE (Fla.) and Mike Bishop (Mich.). Roskam, Paulsen and Curbelo represent districts that Hillary ClintonHillary Diane Rodham ClintonDemocratic strategist laments 'low bar' for Biden debate performance Wasserman Schultz makes bid for House Appropriations Committee gavel Trump to hold campaign rally in Pennsylvania next month MORE won in 2016, while Bishop's district went for President Trump by single digits. The Hill's Naomi Jagoda breaks it down here.


Stocks open with solid gains after Dems win House: U.S. stocks rose Wednesday as trading opened for the first time since Democrats clinched control of the House in Tuesday's midterm elections.

The Dow Jones Industrial average opened roughly 200 points higher, while the Standard and Poor's 500 and Nasdaq composite started Wednesday with gains of 0.88 percent and 0.82 percent each.

The Dow closed with a gain of 545 points (Up 2.13 percent), the S&P closed 58 points higher (2.12 percent) and the Nasdaq finished up 195 points (2.64 percent).

Voters in two red states approve minimum wage hikes: Voters in two red states -- Arkansas and Missouri -- approved ballot measures to raise the minimum wage.

Together the ballot measures will lead to raises for more than 1 million workers. The Arkansas measure will incrementally raise the minimum wage from the current level of $8.50 to $11 by 2021. In Missouri, the wage will rise in stages from $7.85 to $12 by 2023. The Hill's Niv Elis tells us more here.


SEC hits Citibank with $38.7 million fine: Citibank is agreeing to pay $38.7 million to settle SEC charges it improperly handled what are known as "pre-released" American Depositary Receipts (ADRs).

"ADRs – U.S. securities that represent foreign shares of a foreign company – require a corresponding number of foreign shares to be held in custody at a depositary bank," according to the agency.

But the SEC alleged that Citibank had given brokers ADRs even when the brokers and their customers did not have the required number of foreign shares.


"Our charges against Citibank are the latest in our ongoing investigative effort to hold accountable Wall Street institutions that participated in an industry-wide fraud," Sanjay Wadhwa, senior associate director of the SEC office in New York, said in a release. "Our investigation into these practices has revealed that banks and brokerage firms profited while ADR holders were unaware of how the market was being abused."

Citibank did not admit or deny the SEC's charges but will pay the $38.7 million settlement, which includes $13.5 million in penalties.