supreme court

WASHINGTON  — The Supreme Court on Thursday broadly upheld lawsuits by U.S. companies whose property was seized in Cuba prior to 1960, including claims against cruise ship lines that docked there in the past decade.

These suits do not seek compensation from Cubans but from those who “traffic in property which was confiscated by the Cuban government.”

In a 8-1 decision, the justices revived a $400-million judgment against four cruise lines whose ships stopped in Havana between 2016 and 2019.

All of them used docks that were built early in the 20th century by the Havana Docks Corporation, an American company.

Justice Clarence Thomas pointed to a rarely enforced 1996 law that authorized suits against those who “use property tainted by a past confiscation.”

Past presidents had suspended enforcement of the law, but President Trump allowed such claims to go forward.

That change in policy exposed “traffickers in confiscated property of United States nationals” to brings claims in federal courts, Thomas said.

The four cruise line companies — Caribbean Cruises, Norwegian Cruise Line Holdings, Carnival Corporation, and MSC Cruises — transported nearly a million paid passengers to Cuba, he wrote.

They paid the Cuban government tens of millions of dollars to do business in Cuba. They collectively earned hundreds of millions of dollars in revenue from voyages that included a stop in Havana, he said.

A federal judge in Florida ordered each of the cruise lines to pay $100 million in damages, but the U.S. appeals court in Atlanta blocked the decision by a 2-1 vote. It said Havana Docks Corporation had a contract to run the docks had expired in 2004.

Justice Elena Kagan made the same argument in dissent.

She said “the docks belonged to the Cuban Government — not Havana Docks — all along. What Havana Docks owned was only a property interest allowing it to use those docks for a specified time. And that time-limited interest expired in 2004 — more than a decade before the cruise lines ever used the docks.”

Still pending before the court is a similar claim from Exxon Mobil Corp., which was argued on the day in late February.

Tuesday night, America voted in primary elections and the big winner was President Trump.

One after another, his enemies — and by that I mean anyone who has ever done anything other than grovel — were defeated in elections across the country.

Rep. Thomas Massie, the Kentucky Republican, was perhaps the most high-profile to go down in flames. Massie, you may recall, joined with his California Democratic colleague Ro Khanna to campaign for the release of the Epstein files, which made Trump big-mad since his name is in them a lot.

The Trump-endorsed candidate Ed Gallrein won instead.

“You are ruled by the Epstein class that cares nothing about you,” former Georgia Rep. Marjorie Taylor Greene, also a victim of Trump’s ire, posted on social media after Massie’s loss. “Tonight the future of the Republican Party was destroyed.”

But was it? Or is it simply now crystal clear that it is a party that will follow its leader, no matter the consequence — even personal ruin? And if Trump still wields this much power over his base, what does it mean for the November general election?

“Republicans are united behind President Trump,” RNC spokesperson Kiersten Pels told Politico. “While the media tries to manufacture division, Republicans remain focused on delivering results for the American people and building momentum heading into 2026.”

As much as I’d like to believe Greene has a point (I can’t believe I’m saying that), all signs instead indicate Pels is, at least mostly, right — the Republican party is alive and well, by Trump’s standards, anyway, and may be gaining momentum for a November none of us will ever forget.

Tuesday’s proof

Gallrein wasn’t the only Trump-backed Republican to win voter approval. Trump also saw his candidates win in places including Idaho, Pennsylvania, Alabama and Georgia.

And in Texas, Trump threw down another retribution bomb by endorsing state Atty. Gen. Ken Paxton over incumbent Sen. John Cornyn. That race will go to a runoff next week, with Paxton’s chances significantly boosted.

And in case there’s any doubt on why Trump is choosing his favorites, just check out his reasoning in his own social media post for that endorsement. Spoiler: It has nothing to do with the good of the country or even the Grand Old Party.

Paxton, Trump wrote, is “someone who has always been extremely loyal to me,” even trying to help Trump overturn the 2020 election results. Meanwhile, Cornyn “was not supportive of me when times were tough.”

So personal loyalty is the name of the game, and Republicans seem more than willing to play it.

Still, there has been some chatter that ousted lawmakers including Louisiana Sen. Bill Cassidy, who just lost his primary to a Trump candidate, could gum up the works for Trump in their remaining months. Cassidy voted with Democrats this week on a war powers resolution to at least slow down Trump’s Iran offensive.

Personally, I wouldn’t bet on it. Recent polls have shown Trump’s approval ratings to be down in the dumps, but not with Republicans. They still love this guy.

A poll by Echelon Insights this week found that 74% of GOP voters view Trump favorably. That’s about the same percentage of people who love Costco and NASA, and who doesn’t love Costco and NASA?

Add to that a Wednesday poll from Quinnipiac University that found that while 64% of voters disapprove of the way Trump is handling the economy, 73% of Republicans actually approve — for real. They are OK with $6 gas and beef priced like gold.

Granted, that’s down from 88% of Republicans loving this economy a month ago, but still, three-quarters of Trump’s base backs this dumpster fire of financial mismanagement and looting.

In the same poll, 80% of respondents said congressional Republicans should be doing more to work with Trump, while 13% said they should be standing up to him.

Folks, Republicans are not turning away from this president — they are embracing not a party, but his one-man rule, and doing it with a big, warm bear hug.

Get to November

What does all that mean for the November election? Not a whole lot of good for Democrats, but I’ll start with one possible bright spot: Texas.

Yes, Texas — where, if Paxton does beat Cornyn, Democrats will do a happy dance. That’s because Paxton is seen as the more extreme candidate, plagued by scandal, and would be running against the increasingly popular everyman-preacher man James Talarico. If Talarico prevails, he would be the first Democratic to win a statewide office in the Lone Star state since the 1990s.

But on the national front, there is very little reason to believe any Republicans will break with Trump, as voters or candidates. That means it will come down to gerrymandering and independents, neither of which is especially hopeful for Democrats.

In the Echelon poll, 68% of independent voters said they believed the country was on the “wrong track,” with more than one-third citing the economy as their most important issue. The Quinnipiac poll found that only 26% of independent voters who responded approve of how Trump is handling the job of president.

But.

Both polls found independent voters also did not approve of the job Democrats are doing in Congress — almost three-quarters had a bad impression. Despite all of the middle-ground voter animus toward Trump and those he backs, Democrats apparently have done almost nothing to capitalize on it.

The takeaway is that the voters who will decide November — at least in the remaining places where maps are not rigged — really don’t like any of their choices, and may just hold their noses and vote for whoever seems least-worst.

If he finds a way to bring prices down, that could be Trump‘s GOP.

What else you should be reading

The must-read: Trump’s Spring Revenge Tour Routed G.O.P. Foes. But Fall Headwinds Loom.
The deep dive: A gray wolf has entered Sequoia National Park for the first time in a century
The L.A. Times Special: San Diego attackers’ hate manifesto targeted many groups, sought ‘destruction of political system,’ sources say

Stay Golden,
Anita Chabria

Was this newsletter forwarded to you? Sign up here to get it in your inbox.

SACRAMENTO —  The Democrats’ mantra this election year — especially among wannabe governors — is that the richest Californians should “pay their fair share.” But by any objective measurement, they already do.

I’m referring to state taxes, not federal. It’s a valid argument that the most prosperous Americans should kick in more to the federal government, particularly after President Trump and the Republican Congress lowered taxes for the wealthy, who already had a pretty good deal.

But it’s a different story in California, where state government lives off the well-heeled. Yet, never-satisfied liberal Democrats and public employee unions constantly cry for more.

In fact, an unexpected surge of $16.8 billion in state tax revenue, mostly due to the stock market boom and capital gains earnings, is bailing out Gov. Gavin Newsom and allowing him to claim a balanced budget as he prepares to depart Sacramento and run for president in 2028.

The state Franchise Tax Board recently reported which income groups pony up the most taxes. The more money you earn, the steeper your income tax burden. Of course, that’s the way it should be. But California pushes its progressive tax system to the extreme.

We’ve got by far the highest state income tax rate in the nation at 13.3%.

In 2024, the latest year for which there’s complete data, the top 1% of California taxpayers accounted for 40% of the total state income tax revenue, the FTB reported. But they earned just 24% of the taxable income. To be in the top 1%, your annual earnings had to be at least $973,000.

The top 0.1% kicked in 21% of the tax, while earning 12% of the income. To be in that megarich class, you needed annual earnings of at least $4.7 million.

By contrast, middle-class families with incomes between $73,000 and $139,000 paid 9% of the state’s income tax take.

This doesn’t mean we should weep for the rich and demand more from the struggling lower middle class.

But the problem with Sacramento living off the wealthiest taxpayers is that they’re unreliable. Their fortunes flourish in boom times and fall when the economy busts. When the stock market sneezes, California state government catches pneumonia.

If the state treasury is overflowing, Democratic lawmakers tend to spend freely, expanding programs and creating new ones. Then when the cache inevitably shrinks in bad times, the policymakers’ usual response is to essentially turn their eyes.

Rather than sharply whack spending and raise taxes, they gimmick up the budget with borrowing, deferred spending and crossed fingers. And they dig the hole deeper.

For decades, under Democratic and Republican governors, we’ve sorely needed to update our archaic tax system to make it less volatile and more dependable.

A reform that makes lots of sense is to extend the sales tax to services primarily used by businesses. They could deduct the cost on their federal tax returns. And California state and local governments would steadily collect several billion dollars annually. Some income and sales tax rates could even be lowered.

California also has the nation’s highest state sales tax rate at 7.25%. Combining state and local sales tax rates, we have the seventh-highest at 8.99%.

Taxing deductible business services makes sense to many politicians — but only privately. They’re too weak-kneed to seriously consider it in public. There’d be winners and losers and high political risks.

When Xavier Becerra, the current Democratic front-runner in the June 2 gubernatorial primary, entered the race a year ago, I asked him about extending the sales tax to services, as all other states do. He wanted nothing to do with it.

“We need to stabilize our tax system in California with a more steady source of revenue,” he told me. “But I’m not a fan of the sales tax to begin with. It lands on working families.”

He was not interested in exploring a possible tax on services that didn’t hit working families.

Becerra, a former California attorney general and U.S. health secretary, added: “Before we start exploring new taxes, we should explore existing budget spending. We have to scrub the budget.”

In revising his new budget proposal last week, Newsom proposed $5.1 billion in modest tax hikes on businesses — even as unanticipated revenue was surging. He asked the Legislature for a limit on corporate tax credits and a tax on digital software.

He also proposed to trim $3.7 billion from Medi-Cal healthcare for the poor.

Newsom proposed spending $349.9 billion in the next fiscal year and asserted that budgets would be balanced for 18 months. But after that, he and practically everyone else in Sacramento foresee deficit spending without extensive fiscal restructuring.

But you don’t hear a peep about that from leading Democratic candidates running to replace Newsom. Most are talking about imposing significantly higher business taxes to pay for new or expanded programs.

Billionaire hedge fund founder Tom Steyer wants to close “the corporate tax loophole.” What he’s talking about is gutting Proposition 13’s property tax breaks for commercial holdings. He’d make it easier to reassess when partners sell their portions of a property — a commonly called “split roll” that would treat commercial property differently than residential.

That was tried in 2020 and rejected by voters.

Steyer also supports the billionaire tax that’s expected to be on the November ballot. It would impose a one-time 5% tax on the net worth of California’s 200-plus billionaires.

To their credit, no other gubernatorial candidate supports this misguided proposal. Practically all the $100-billion windfall would flow solely into healthcare while causing fed-up super wealthy to flee the state.

Former Orange County Rep. Katie Porter would raise taxes on the most profitable corporations to pay for free child care and college tuition. They’re both good causes but of questionable fiscal feasibility right now.

Rather than pushing rich investors and job creators out of state, we should be encouraging them to stick it out in California and continue to pay their fair share.

What else you should be reading

The must-read: Who won and who lost in Thursday night’s California gubernatorial debate? Our columnists weigh in
TikTok dough: The Steyer campaign pays influencers. Their posts don’t always make that clear
The L.A. Times Special: Steyer campaign staffer linked to video of rival Katie Porter berating staff

Until next week,
George Skelton

—
Was this newsletter forwarded to you? Sign up here to get it in your inbox.

May 15 (UPI) — The Texas Supreme Court refused to remove state Rep. Gene Wu, D-Houston, from office, despite the efforts of Gov. Greg Abbott after the 2025 redistricting showdown.

Chief Justice Jimmy Blacklock, who once worked as an Abbott aide, wrote that the courts “have uniformly recognized that it is not their role to resolve disputes between the other two branches that those branches can resolve for themselves.”

“The courts’ institutional ‘reluctance … to involve themselves in contests of factional political power,’ a reluctance we reiterate and reinforce today, is a check on the judicial power ‘of ancient standing,’ not an optional preference we are at liberty to discard,” Blacklock wrote.

The fight stems from August 2025 when Texas began an effort to redistrict the state’s congressional seats to create more Republican-leaning districts. Democrats in the state’s legislature fled Texas to prevent a quorum in the House. They eventually returned, and the measure passed.

Texas House Democratic Caucus Chairman Gene Wu led the charge during the exodus of his party members, drawing the ire of Abbott. The governor had threatened to expel any Texas House members who fled the state, of whom there were more than 50.

Wu posted on X Friday: “Texas House Democrats refused to be complicit as Texas Republicans delivered Donald Trump the extra congressional seats he begged for, and now, Gov. Abbott’s final attempt at revenge has been put to rest.”

Texas House Democrats posted: “Today, we won. We’re not going anywhere.”

Republicans hold 24 of Texas’ 38 seats in the U.S. House, with one vacancy. The new map is expected to add five Republican representatives from the state.

Blacklock indicated the matter could be considered in the future.

“Whatever wrong may have been committed by the absent House members, the Texas Constitution’s internal political remedies, none of which involve the judicial branch, were sufficient to the task of restoring the House’s ability to do business,” Blacklock wrote. “Should those remedies unexpectedly prove inadequate in a future case, we might have occasion to consider whether any judicial remedy could ever be available in circumstances such as these.”