The Excerpt podcast: A hot mess in Washington for Congress, White House and SCOTUS
On today's episode of The Excerpt podcast: Washington has been something of a mess lately. USA TODAY Washington Bureau Chief Susan Page explains. Former President Donald Trump threatens NATO. Israel kills at least 50 Palestinians, while freeing multiple hostages in a Gaza raid. USA TODAY Money & Personal Finance Reporter Medora Lee talks about death taxes. There's a repeat Super Bowl champion. Questions about taxes? Check out a Reddit AMA from noon-1 ET, where USA TODAY's Money reporters will have you covered.
Hit play on the player below to hear the podcast and follow along with the transcript beneath it. This transcript was automatically generated, and then edited for clarity in its current form. There may be some differences between the audio and the text.
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Taylor Wilson:
Good morning. I'm Taylor Wilson, and today is Monday, February 12th, 2024. This is The Excerpt. Today, a look at the latest hot mess in Washington. Plus, Trump threatens NATO, and a football dynasty may be brewing in Kansas City.
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It's a messy time in Washington. From the White House to the Supreme Court to Congress, it feels like an apt moment to check in with USA TODAY Washington Bureau Chief, Susan Page.
Hello, Susan. Thanks for hopping on The Excerpt today.
Susan Page:
Hey, Taylor. It's great to join you again.
Taylor Wilson:
Susan, you wrote about this hot mess that's brewing in Washington right now. I like that choice of words. There are a lot of angles to this. Let's start with Capitol Hill where there are all kinds of legislative fights popping up, and House Speaker Mike Johnson in particular has had a rough few weeks. Susan, what's the latest here?
Susan Page:
Well, he's lost back-to-back votes on big issues because of defections from his own members. This isn't because of Democratic opposition, it's because he's not holding his own team together. That raises questions about what he's going to be able to get through, if anything, this year, and whether he'll be able to survive as speaker. Although, the best thing he has going for him there is that there's not really an alternative. Can he find his footing? It's not clear at the moment whether he will.
Taylor Wilson:
And inside the White House, Susan, it's been a curious week for President Joe Biden. What happened with this Special Counsel investigation that essentially portrayed him as an elderly man?
Susan Page:
The Special Counsel's report was devastating. It portrayed him as a forgetful old man. He seemed kind of feeble, even on big issues like what years he was vice president or the date of the death of his son, Beau. So he went out before TV cameras on Thursday night to fight back, to question the conclusions and the observations of the Special Counsel. And in many ways he reinforced the perception that he lacks the mental acuity for the presidency. He, for instance, referred to the President of Egypt as the President of Mexico. It was not the performance that White House officials were hoping he would present at this crucial time. It really raised more questions about his health and his age than he faced before this report came out.
Taylor Wilson:
And Susan, the long awaited Supreme Court arguments over Trump ballot questions came last week. What kind of mess are you seeing on the High Court steps?
Susan Page:
At the moment, the High Court is trying to avoid making things worse. That is taking a stand that might affect the outcome of the selection. It was pretty clear that there is a majority, maybe even unanimity, that Colorado cannot push Trump off the ballot because of this previously obscure 14th amendment. But that's not the end of the story, because there is a tougher case coming down the road to the High Court, and that is Donald Trump's contention that he deserves presidential immunity. And that's in the case involving the January 6th insurrection. And that will be one that the Supreme Court will have a much tougher time dodging.
Taylor Wilson:
Susan, broadly speaking, what are the implications of some of this Washington mess that we're talking about?
Susan Page:
We know that Americans have seen their faith in big institutions erode in recent years, and I think the scene of this function in Washington is only going to reinforce that. It's also going to make it hard for the federal government to address some of the big issues we face, like what's happening on the southern border or the need for ammunition in Ukraine. So there are big repercussions here, global and political.
Taylor Wilson:
All right. Susan Page is USA TODAY's Washington Bureau Chief. Always a pleasure, Susan. Thanks so much.
Susan Page:
Thank you.
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Taylor Wilson:
Former President Donald Trump is again stirring fears over the future of NATO. Trump suggested he might not come to the aid of European nations if they're attacked by Russia and that he might even encourage Russia to "do whatever the hell they want." During a campaign rally in South Carolina on Saturday, Trump said his decision, if elected again, would be based on whether NATO members are contributing enough to the alliance. President Joe Biden, in a statement put out by his campaign, said that if Trump is able to regain power, he's "making it clear as day that he will abandon our NATO allies if Russia attacks." For his part, NATO Secretary General Jens Stoltenberg said Trump's comments could endanger lives.
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Israel has carried out a series of overnight strikes on Gaza, killing at least 50 Palestinians, according to health officials in the territory. Israel's military said it also rescued two of the more than 100 hostages thought to be held by Hamas. Rafah is on the southern edge of the Gaza Strip near the border with Egypt. 1.4 million Palestinians have fled there, leaving violence in other parts of Gaza during Israel strikes in recent months following a Hamas attack on Israel in October. Israel indicated Rafah is the last remaining Hamas stronghold in Gaza. Yesterday, the White House said that President Joe Biden warned Israeli Prime Minister Benjamin Netanyahu that Israel should not carry out a military operation against Hamas in Rafah without a plan to protect civilians. You can stay up on all the latest with usatoday.com.
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You can't escape taxes even in death. I spoke with USA TODAY Money and Personal Finance Reporter, Medora Lee, to learn more about the estate and inheritance taxes.
Medora, thanks for hopping on The Excerpt today.
Medora Lee:
Thanks for having me.
Taylor Wilson:
So, you wrote about these different types of death taxes. Let's start with estate tax. What exactly is this and who has to pay it?
Medora Lee:
So the estate taxes, if you have a very large estate and you pass away before they distribute your assets to your heirs, if it's above a certain amount, the estate will have to pay taxes on whatever's above the exemption amount. And the exemption amount is really big, so a lot of people probably won't hit it, but it's always good to know just in case. And the exemption amount is, for 2023, $12.92 million per person. And in 2024, it goes up to 13.61 million.
Taylor Wilson:
So then, what's the difference here between estate tax and inheritance tax?
Medora Lee:
Good question. Because a lot of people use that interchangeably, but they are not the same. So, the estate tax is taxed on the estate and the estate pays it before assets are distributed. The inheritance tax is paid by the person who inherits an asset, and those are usually state taxes. There's no federal inheritance tax. The estate tax can be federal or state. Some states do have it. If the state in which the person dies has an inheritance tax and you inherit a decent amount of money or assets, you might have to pay a tax on whatever's above the exemption threshold, which is different in every state. The one exception to that is if you are a spouse. Spouses never have to pay that. And also, if you're a child or grandchild, you may be exempt from this inheritance tax or you might have to just pay a partial tax, a smaller amount.
Taylor Wilson:
How can folks avoid these taxes when they're in these situations?
Medora Lee:
The best thing is to manage your assets before death. And part of that might include giving away some of your assets to potential beneficiaries before your death. You can gift some away every year. I think the annual gift exclusion amount in 2023 was $17,000 a year, and it increases to $18,000 a year in 2024. And you can give away as many of those as you want. So 17,000 for your sister, $17,000 for you. So you can get rid of money pretty quickly that way. And that doesn't count towards your lifetime exemption of 12.92 million in 2023. So that's additional. Or you could try to move to a state without an inheritance or an estate tax. I don't know if that fits your lifestyle, but you can try that.
Then the last thing that people can suggest is setting up something called an irrevocable trust. You give up some control over your assets, because the trust becomes the official owner of those assets and you can't change it or cancel it, but no trust assets transferred upon your death are estate or inheritance taxed.
Taylor Wilson:
Medora Lee covers money and personal finance for USA TODAY. Thank you, Medora.
Medora Lee:
Thank you. Have a good day.
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Taylor Wilson:
The Kansas City Chiefs are Super Bowl champions again. They beat the San Francisco 49ers yesterday, 25 to 22, in a come-from-behind win that required an overtime game-winning touchdown from quarterback and now three time Super Bowl MVP, Patrick Mahomes. The thrilling finish marked just the second overtime game ever in Super Bowl history. Things started out well enough for San Francisco and they led 10 to 3 at halftime, but the Chiefs grew into the game in the second half and pulled out their second straight championship. They've also now won three of the last five.
Meanwhile, Usher lit up the stage and social media with a nostalgic halftime show. And yes, Taylor Swift was in attendance to see boyfriend Travis Kelce lift the trophy, after she flew back from her shows in Japan. And as always, plenty of commercials made waves. Check out admeter.usatoday.com for more. Plus, USA TODAY Sports has you covered with all the big game aftermath, including a look at where this era of Kansas City Chiefs football ranks among the all-time great teams.
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And before we go, tax season is here, an often stressful and confusing time. But journalists from USA TODAY's Money Team are here to help. Since November, our personal finance team has published over 40 stories, answering the most common filing questions, and they're bringing their expertise to a Reddit Ask Me Anything later today. You can check it out from noon to 1:00 Eastern at r/tax on reddit.com. We also have a link in today's show notes.
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Thanks for listening to The Excerpt. You can get the podcast wherever you get your audio. And if you're on a smart speaker, just ask for The Excerpt. I'm Taylor Wilson, back tomorrow with more of The Excerpt from USA TODAY.
This article originally appeared on USA TODAY: The Excerpt podcast: A hot mess in Congress, White House and SCOTUS
