Cops: Dad foils teen’s attack plot

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McCain threatens shutdown over defense spending

Story highlights

  • Sen. John McCain said he won’t support a continuing resolution over defense spending
  • His comments come as leaders are making a serious effort to negotiate FY 2017’s appropriations

The Arizona Republican told CNN he wouldn’t vote for a continuing resolution, a funding bill that maintains the previous spending levels. When asked how far he would go, McCain said he only had one vote, but that he wouldn’t rule out a shutdown.

“If that’s the only option. I will not vote for a CR no matter what the consequences because passing a CR destroys the ability of the military to defend this nation, and it puts the lives of the men and women in the military at risk,” McCain said. “I can’t do that to them.”

McCain’s comments come as leaders are making a serious effort to negotiate the remaining appropriations bills for Fiscal Year 2017 that would likely include some of the new military spending that McCain is pushing for.

Congressional leaders are up against a tight deadline. After last week’s failure to pass the health care bill out of the House, there are questions about how much leaders can get passed even if their goal remains to finish appropriations bills instead of passing a continuing resolution. Congress has to come to an agreement before the government runs out of money April 28.

Raising the stakes? Congress is on recess for two weeks in mid-April.

McCain has long been an advocate for increased military spending and has voted for continuing resolutions in the past, but this time, McCain says he just won’t do it and that the military would be set back by another CR.

“I will not vote for a CR. I don’t care what’s in it,” he said.

McCain’s comments may put pressure on leaders to see that some rank-and-file members are serious. They won’t accept just another, last minute continuing resolution. If that’s the only option, there could be a shutdown ahead.

First Look: Samsung’s Galaxy S8

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Study: Greatest rise in heroin use was among whites

More people die from drug overdoses than from guns or car accidents. At the peak of the AIDS epidemic in 1995, 43,115 people in the United States died from the disease.

Furthermore, since 1999, the number of overdoses from prescription opioids like oxycodone and hydrocodone, as well as illicit drugs like heroin, have quadrupled. In fact, heroin now accounts for one in four overdose deaths in the United States.

Now, a new study in the journal JAMA Psychiatry looks beyond the total number of overdose deaths to get a better picture of how heroin use patterns have changed since 2001. Since then, the number of people who have used heroin has increased almost five-fold, and the number of people who abuse heroin has approximately tripled.

The greatest increases in use occurred among white males.

Heroin use on the rise

The authors evaluated the responses of 79,402 individuals, as collected from the 2001-2002 and the 2012-2013 National Epidemiological Survey on Alcohol and Related Conditions, a longitudinal study conducted by the National Institutes of Health to evaluate alcohol and drug use and abuse. While heroin use between whites and non-whites was fairly similar in the 2001-2002 results, at 0.34% and 0.32% respectively, by 2012-2013 the percentage of whites who had used heroin jumped to 1.90%. Just 1.05% of non-whites in 2012-2013 used heroin. Heroin use also increased significantly among those with a high school education or less, as well as those who lived at less than 100% of the federal poverty line.

The authors of the new report write “these trends are concerning because increases in the prevalence of heroin use and use disorder have been occurring among vulnerable individuals who have few resources to overcome problems associated with use.”

According to a 2016 Surgeon General’s report on alcohol, drugs and health, only one in 10 of those with a substance use disorder receive any treatment.
“The good news is that among all drugs of abuse, heroin and opioids have by far the best treatment medications available. Methadone and buprenorphine have proven effectiveness data, they not only reduce the chances of dying from an opioid overdose by 50%, they support people being in recovery from their addiction and reduce health care costs and improve a wide array of other outcomes,” said Caleb Banta-Green, an associate professor of health services at the University of Washington. Banta-Green was not involved in the study.

Starting with prescription drugs

The study also confirmed the idea that many heroin users start by using prescription opioids like oxycodone and hydrocodone. Approximately one-third of all white heroin users reported using prescription drugs for non-medical purposes in 2001-2002. By 2013 more than half of all white heroin users started by initially using prescription drugs. For non-whites, the number of people who started by using prescription drugs before heroin actually dropped in the same time frame.

An accompanying editorial by Bertha Madras, a psychologist at McLean Hospital in Massachusetts and former deputy director in the White House’s Office of National Drug Control and Policy pointed to the shift in treating pain as a major factor in understanding the current crisis. She noted that in the past two decades, the number of opioid prescriptions has risen three-fold.

“This shift in practice norms was fueled by acceptance of low quality evidence that opioids are a relatively benign remedy for managing chronic pain,” she wrote. “These vast opioid supplies created a risk for diversion, opioid misuse and disorder, and overdose death.”

The study did not find any significant difference when looking at what age groups were using heroin, but heroin dependency and addiction was significantly higher for those below the age of 45 than those above. That should be a cause of concern, said Banta-Green, who noted that one of the costs of overdoses and abuse to society is lost productivity.

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A county-by-county study released Wednesday by the Robert Wood Johnson Foundation, calculated that drug overdose deaths resulted in a 778 years of potential life lost for every hundred thousand people. This report also found that most of the increase in premature deaths in 15- to 44-year-olds is due to drug overdoses. And while no community is immune to this crisis, suburbs, which used to have the lowest rates of premature deaths from drug overdoses now have the highest rates.

The authors of the longitudinal study note that “heroin use appears to have become more socially acceptable among suburban and rural white individuals, perhaps because its effects seem so similar to those of widely available [prescription opioids].”

The findings of these new reports are in line with earlier research over the past two decades about increasing heroin and opioid overdoses. “The trend isn’t a surprise — the takeaway is what matters. Heroin use disorder is a serious medical condition with which individuals are likely to struggle for the rest of their life. We need to give them the tools they need to survive and thrive,” said Banta-Green.

3 ways Mexico could pay for the wall

But is there any way for Mexico to fund a border wall without officials there dipping into their country’s coffers?

Let’s crunch the numbers on a few possible options that have made the rounds in Washington:

1. Tapping into money immigrants send home

Mexican immigrants sent nearly $27 billion home in 2016, according to the country’s central bank. And most of that money came from people living in the United States.

Generally, immigrants report that the money they send funds things like food, clothing, housing and education for their families. What if some of it went to building a wall on the border?

On the campaign trail, Trump said he’d change the Patriot Act and cut off a portion of remittances to Mexico unless the country agreed to pony up. Since then, a less aggressive approach has circulated in some policy circles: taxing wire transfers, the most common way immigrants send money home.

That idea is unpopular with money transfer companies and immigrant rights advocates.

And Mexican authorities have vowed to do everything they can to ensure that no one messes with the money immigrants send. It’s Mexico’s largest source of income — higher even than the amount of money it earns from oil exports. Even though remittances are a small portion of Mexico’s GDP, they have a big impact in some of the country’s poorest communities.

In the Mexican state of Michoacán, for example, migrant remittances made up almost 10% of the state’s gross domestic product in 2015, according to data from the Bank of Mexico and BBVA Bancomer.

Past proposals to tax remittances have never gotten off the ground in Washington. But at least one US state has taken this approach.

In 2009, Oklahoma started charging a fee on individual wire transfers of $5 plus 1% on any amount over $500. Since then, the measure — which applies to funds sent through licensed money transmitters like Western Union and MoneyGram — has raised more than $67.2 million for a fund at the state’s Bureau of Narcotics and Dangerous Drugs Control, according to state tax records.

The case: For those who resent that undocumented immigrants not only live in the United States, but also send money out of the country, a remittance tax is an attractive option, as the National Review’s Jim Geraghty has noted.

“In their eyes,” he wrote in 2015, “illegal immigrants from Mexico effectively steal from the United States by entering the country, offering unethical employers a labor force that isn’t covered by wage, workplace safety, and other laws, getting paid under the table, and then sending the money out of the country.”

The catch: Wire transfer companies don’t ask for or track the immigration status of people who use them. If they did, analysts say undocumented immigrants simply would find other ways to send money. So it’s likely a tax would end up applying to anyone who sends remittances — something critics say would unfairly punish Americans and immigrants who came to the country legally. Oklahoma tried to get around this by creating a tax credit for its fees; but critics argue that many people eligible for credits don’t take them.

Critics also say a tax on remittances would likely push Mexicans to find other ways to get cash over the border.

“In the paranoid atmosphere that’s been created by certain anti-immigrant statements, I think it would make people even more reluctant to use official channels,” says David Landsman, executive director of the New York-based National Money Transmitters Association.

The chances: The numbers might add up, but it’s still a tough sell. Congress is loathe to levy taxes in general, though a tax reform package to be discussed this year could offer an opportunity. Congressional leaders have priorities in that package that they will not want derailed if a plan to tax remittances becomes too controversial. Relations between the US and Mexico would also surely factor into the debate.

2. Seizing money from drug cartels

US Rep. Jim Sensenbrenner, R-Wisconsin, introduced a proposal last month titled the BUILD WALL Act of 2017. Its aim: to use money seized from drug traffickers to fund security at the border.

The case: Sensenbrenner’s proposal calls for the US Attorney General to study ways the Justice Department can increase assets seized from cartels. He dubbed the approach “a creative solution to a complex problem.”

Drug cartels send between $19 billion and $29 billion annually back to Mexico, according to US federal officials. And using money from criminals rather than law-abiding US taxpayers to foot the bill for anything sounds like an easy sell.
The catch: Authorities on the southwest US border have already seized a large amount of money heading to Mexico: more than $57 million in four years, according to US Customs and Border Protection (CBP). But it’s just a fraction of the smuggled money officials believe is crossing the border — and just a fraction of the estimated cost of a wall. And currently, at least some of the money seized from cartels is already spoken for. Currency CBP seizes that is forfeited goes into a Treasury Department fund that’s used for law enforcement initiatives across the country. The amount of money seized has also decreased in recent years. A recent CBP report noted “significant decreases in both the number of seizures and the average dollar value” of the amounts seized.
The chances: Harder than it sounds. Passing legislation in Congress is always difficult, and this year a lot of time is already expected to be eaten up by Obamacare repeal, tax reform and budgeting. Any bill perceived to be an element of Trump’s border security efforts will become controversial, as Democrats seek to oppose his immigration policies and have deemed the wall a poison pill in any legislation. Plus, asset seizure tiptoes into criminal justice reform, its own area of disagreement on the Hill.

3. A border tax

In January, Trump administration officials suggested a 20% tariff on imports from Mexico could be used to pay for a border wall. The idea was floated early on in Trump’s presidency, and in some circles, it sank. After the proposal drew a swift uproar from lawmakers on both sides of the aisle, White House officials who’d touted it later said it was just an idea.

If such a plan is put into place, a vast array of items — including cars, mechanical equipment, produce and household goods — would be subject to a levy.

The case: When it comes to exports and imports, there’s a lot of money in play. Mexico is the United States’ third largest goods trading partner, with an estimated $295 billion in imports from Mexico crossing the border in 2015.
“By doing it that way we can do $10 billion a year and easily pay for the wall, just through that mechanism alone. That’s really going to provide the funding,” White House spokesman Sean Spicer said in January.

Later that day, he sent a softer message, saying the border tax idea was intended to be just one example of paying for the wall. “I just want to be clear that we’re not being prescriptive in saying that is the only way,” he said, “nor is the rate prescriptive.”

The catch: Critics say such a tax would punish consumers more than anyone else, it would violate NAFTA and it could spur a trade war. Republican Sen. Lindsey Graham quickly dismissed the idea, posting a tweet that played off the President’s own Twitter style.

“Simply put,” Graham wrote, “any policy proposal which drives up costs of Corona, tequila, or margaritas is a big-time bad idea. Mucho Sad.”

The chances: Low. Lawmakers are already engaged in a heated debate over a proposed border adjustment tax, which would tax imports from around the world while exempting exports from US taxes. While House Speaker Paul Ryan and like-minded Republicans are in favor, the proposal still faces a heavy set of opposition from inside and outside the party. Tacking on a Mexico-specific tax is unlikely to get much traction, as we saw with Spicer’s swift walkback of the trial balloon earlier this year.

CNN’s Jeremey Diamond, Theodore Schleifer and Patrick Gillespie contributed to this report. Illustration by Kenneth Fowler.

GOP congressman: Senate should oversee Russia probe

Story highlights

  • “It is unfortunate we are where we are in the House,” he said.
  • Democrats have repeatedly called for Devin Nunes to step down

“What I think should happen right now is the Senate is going to lead this discussion, this investigation on the Russian meddling into the election,” Rep. Charlie Dent said Wednesday on CNN’s “Newsroom,” referring the Senate intelligence committee’s probe. “I think that’s where it is.”

“It is unfortunate we are where we are in the House. It seems like there is not going to be a House report on intelligence, on the Russian meddling, so we have to turn our eyes to the Senate,” Dent added.

Key House Democrats have called on Intelligence Committee Chairman Devin Nunes to recuse himself from an investigation into alleged ties between the Trump campaign and Russia, widening a stunning partisan split over the probe.

Nunes had worked closely on the House investigation into ties between top aides to the campaign of President Donald Trump and Russian officials. But the California Republican has been heavily criticized following a visit to the White House grounds one day before going to the President and the public with possible evidence that his transition aides’ communications were picked up in surveillance by US intelligence.

Nunes has repeatedly defended his actions and some Republicans, including House Speaker Paul Ryan, have said they have “full confidence” in his ability to oversee the probe.

But Dent said that there doesn’t appear to be enough cooperation among the House Intelligence Committee to more forward.

“My sense is right now the House is in a situation where the House has been overly politicized,” Dent, a Pennsylvania Republican, said. “It doesn’t seem like there is much cooperation on either side and it seems like Sens. (Richard) Burr and (Mark) Warner are doing a good job of running a fair investigation and I think that’s where we will have to look right now to get a real report on this.”

Dent stopped short of saying that the House committee should end their investigation.

“I think the House should try,” he said. “But at this moment, I’m not optimistic just given the tone and the tenor and the various shots being taken by both sides.”

“It sounds to me they are getting into a stalemate position,” he added.

Outrage grows over Congress’ Internet privacy vote

Outrage is growing at Republicans following a controversial vote Tuesday to repeal Internet privacy protections that were approved by the Federal Communications Commission in the final days of the Obama administration.

Privacy advocates, consumer groups and the tech community are all attacking the decision. It was quickly panned by both the editorial board of The New York Times and by commenters on conservative media outlet Breitbart News.

“This is one of very few Obama-era regulations that should have stayed,” one commenter wrote on Breitbart Tuesday night. Another responded: “totally agreed! this is an attack against freedom.”

The rules, which had not yet gone into effect, would have required Internet service providers to get your permission before collecting and sharing your data. The providers have data on your web browsing history, app usage and geo-location.

Providers would also have been required to notify customers about the types of information collected and shared.

Fight for the Future, a digital rights group that helped organize protests for net neutrality, is planning to put up billboards naming the legislators who voted to repeal.

“Congress should know by now that when you come for the Internet, the Internet comes for you,” Evan Greer, campaign director of Fight for the Future, said in a statement before the vote. “These billboards are just the beginning.”

Related: Worried about companies spying on your browsing? Here’s what you can do

The tech industry, which has been relatively quiet on issues like net neutrality under the new administration, also expressed dismay at the vote.

Vijaya Gadde, general counsel at Twitter, tweeted it’s “time to start using a VPN at home” in response to the news. A VPN, or virtual private network, is one option to protect your online identity.

“You better believe the big ISP’s already have teams & plans in place to capitalize on this ruling,” Erica Baker, an engineer at Slack, wrote on Twitter.

Some frustrated Internet users have even gone so far as to launch a crowdfunding page to buy up Internet data belonging to members of Congress.

The Senate voted along party lines to undo the rules last week. The resolution now goes to Trump’s desk. The White House said Tuesday it “strongly supports” the repeal.

Nonetheless, groups are now calling on Trump to make good on his populist campaign rhetoric by vetoing the legislation.

“It does provide an opportunity for President Trump,” the Consumer Federation of America, a nonprofit organization, said in a statement Tuesday. “He can show that he is on the side of the people by vetoing this measure.”

The ACLU echoed that sentiment in a statement: “President Trump now has the opportunity to … show he is not just a president for CEOs but for all Americans.”

CNNMoney (New York) First published March 29, 2017: 11:29 AM ET

Will Trump switch to iPhone from Android?

Trump’s social media director, Dan Scavino, said late Tuesday on Twitter that the president has been tweeting from “his new iPhone” for the past couple of weeks. But a tweet bearing the hallmarks of Trump’s combative style came from an Android device as recently as Saturday.

The matter has potential national security implications.

During the early weeks of his presidency, Trump came under scrutiny over reports he was continuing to use his old, unsecured Android phone to send tweets to the 27 million followers of his @realDonaldTrump account.

“The national security risks of compromising a smartphone used by a senior government official, such as the President of the United States, are considerable,” two Democratic senators wrote in a letter to Defense Secretary James Mattis last month asking for more information about the president’s mobile devices.

At the time of his inauguration, Trump was reported to have traded in his Android phone, believed to be a Samsung, for a secure device. But @realDonaldTrump tweets marked as coming from “Twitter for Android” kept appearing.

The concern, according to the senators, is that hackers may be able to break into an unsecured device and “turn on audio recording and camera features, as well as engaging surveillance tools that allow location and other information tracking features.”

Related: Senate Democrats want answers about Trump’s phone

Earlier this month, the Android-marked tweets dried up for a while and more iPhone tweets appeared. Some news organizations suggested the president might have switched phones.

But on Saturday, a typical Trump tweet with the Android tag popped up, declaring that “ObamaCare will explode.”

The White House declined to say whether any of the devices being used by Trump were secure.

“We don’t discuss the security measures that are or have taken place,” press secretary Sean Spicer told CNNMoney by email Wednesday.

Related: The Presidential Records Act and @realdonaldtrump

Intelligence officials went to great lengths to provide former President Barack Obama with a secure BlackBerry that he could use to communicate with his advisers.

Security researchers say it’s tougher to compromise iPhones than Android devices, but not impossible.

Trump used an iPhone early in his campaign, a time when he also criticized Apple (AAPL, Tech30) for making products overseas. In February 2016, he called for a boycott of Apple products over the tech giant’s refusal to help the FBI break into an iPhone used by one of the San Bernardino attackers.

“I use both iPhone & Samsung. If Apple doesn’t give info to authorities on the terrorists I’ll only be using Samsung until they give info,” he tweeted. Apple didn’t back down, and Trump eventually appeared to stop tweeting from an iPhone.

Related: Trump voters to president: Stop Twitter rants

Some observers had used Trump’s iPhone abstinence as a way of guessing which tweets from the @realdonaldtrump account he’d actually written himself.

Android-marked tweets, believed to be direct from Trump, tended to be angrier and use all caps liberally. More restrained tweets, often promoting Trump events, would be posted from an iPhone, presumably by aides.

Now, both styles of tweet are coming from iPhones, with a little Android still mixed in.

CNNMoney (Hong Kong) First published March 29, 2017: 11:08 AM ET

Amazon to start collecting state sales taxes

On Saturday Amazon (AMZN, Tech30) will start collecting sales taxes on purchases in the last four states where it wasn’t doing so: Hawaii, Idaho, Maine and New Mexico. Four other states — Delaware, Montana, New Hampshire and Oregon — have no sales tax, while a fifth, Alaska, doesn’t have a statewide tax, but it does have municipal sales taxes.

Typically, an online retailer only has to collect sales tax in states where they have a physical presence, such as a storefront or a distribution center. That loophole cost states $17.2 billion in lost sales taxes last year, according to the National Conference of State Legislatures.

Related: Jeff Bezos tests giant robot suit

“The way we are consuming things is so different. Because of that, the states’ sales tax revenue is not keeping pace,” said Max Behlke, director of budget and tax policy for the NCSL. “States have to modernize [sales taxes] to the 21st century. If they can’t collect sales taxes, it’ll mean higher state income taxes or property taxes.”

Embattled brick-and-mortar retailers have long complained about what they argue is the unfair advantage held by their online rivals. But various bills to require online retailers to collect all the different sales taxes have stalled in Congress, despite bipartisan support.

For years Amazon was one of the leaders in the fight to keep online purchases tax free. But as it has moved to offer faster and faster deliveries, it has expanded its network of distribution centers and started collecting sales taxes in more and more states.

“Their business model has changed. To have same day or next day delivery, you need distribution centers nearby,” said Behlke.

By the end of last year, Amazon was collecting sales taxes in 29 states and Washington D.C. Since that list included all of the largest states, that meant it was effectively collecting sales tax from 86% of the nation’s population. The site has been rapidly adding the remaining states to the list of places where it collects taxes this year, bringing the total to 41 states plus Washington. And as of April 1, it will collect from all 45 states that have a statewide sales tax.

Related: There’s a bubble in brick-and-mortar stores, and it’s bursting

Amazon did not respond to a request for comment on the change in policy.

And there is still one big sales-tax loophole left on Amazon: Shoppers don’t have to pay sales tax when they buy from one of the site’s many third-party vendors.

Those vendors have huge sales in their own right. Amazon says it has more than 100,000 vendors who sell more than $100,000 each annually, which means total sales of more than $10 billion. Amazon says that nearly half the items it sells are from third-party vendors.

“Whatever a state is getting in sales tax from Amazon, it should probably be getting about twice that much,” said Behlke.

CNNMoney (New York) First published March 29, 2017: 2:59 PM ET

This skyscraper is out of this world

Clouds Architecture Office has unveiled plans for a futuristic skyscraper dubbed the “Analemma Tower.” The building would hover majestically above the ground because it would be attached — wait for it — to an actual asteroid, in space, that is forcibly put into orbit around the earth.

If that’s not enough to digest, consider that your exact address in this pendulous pad could be anywhere on Earth. The tower will be suspended via high-strength cabling from an asteroid and placed in “eccentric geosynchronous orbit”. In other words, it would be always moving — residents and visitors would take a daily journey between the northern and southern hemispheres with a prolonged visit over a main “home” point like New York City or Dubai (it’s always New York City or Dubai, isn’t it?)

In 2015 the European Space Agency’s Rosetta Mission successfully landed on the surface of the comet Churyumov-Geraismenko showing that it is possible to interact with such smaller bodies in space. NASA’s “Asteroid Redirect Mission” is scheduled to send a robot to collect a boulder off an asteroid and then place that boulder into a stable orbit around the moon.

In like fashion, CAO plans to use an asteroid harnessed with high strength cabling reaching towards earth to hold the skyscraper along its journey.

Analemma Tower’s designer Ostap Rudakevych told CNN that the tower could be made of durable and lightweight materials such as carbon fiber and aluminum. Advances in cable engineering would be needed to achieve the cable strength required to support the structure. Power would come from space based solar panels that have a constant exposure to sunlight. Water for the tower will be captured from clouds and rainwater and maintained in a semi-closed loop system.

As proposed the top of the tower sits at 32,000m and would be expected to reach speeds of 300mph as it travels through the sky.

How you would hang out

The design leaves some pretty important questions to be answered, like, “What do I do if I want to also have a life on the ground?” “Won’t my family and friends miss me because they will only have a finite window each day in which to see me, and even then, I will be floating above the earth, unable to make contact?”

The upper reaches of Analemma would extend beyond the troposphere

The upper reaches of Analemma would extend beyond the troposphere

The upper reaches of Analemma would extend beyond the troposphere

If you have to ask these questions then, we hate to say it, you are probably not ready to live in a huge mobile asteroid tower, but the designers have your back nonetheless.

Rudakevych said he envisions large passenger drones allowing people to move back and forth between the tower and earth’s surface along with cutting edge electro-magnetic elevators moving people throughout the this fantastic vision.

Currently the proposal calls for the tower to be mid-air over Dubai which has a long history of building tall and stylish skyscrapers at a fraction of the cost of U.S. based construction.

When asked what inspired such a project, Rudakevych said, “Since humans have emerged from caves our buildings have been growing ever taller and lighter. We believe that some day buildings will break free from earths surface, releasing us from harmful floods, earthquakes and tsunamis. Analemma Tower is a speculative idea for how this might be achieved some time in the future.”