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POLITICO Playbook: NYT reports MIKE FLYNN might be cooperating with Mueller

BREAKING… AP: “State news: 184 killed in Egypt mosque attack”: “Egyptian state news agency MENA reports that 184 people have been killed in a bombing and shooting attack on a mosque in the volatile northern Sinai Peninsula, in what appeared to be the latest attack by the area’s local Islamic State affiliate. Citing official sources, MENA said 125 people were also wounded in the attack on the al-Rawdah mosque, largely attended by Sufi Muslims … Earlier, officials said militants in four off-road vehicles bombed the mosque and fired on worshippers during the sermon segment of Friday prayers.” http://bit.ly/2mZ3Uhv

ON FOX THIS MORNING — @brianstelter: “Post-Thanksgiving banner on @foxandfriends: ‘CRITICS GIVE NO THANKS TO TRUMP’”.

Story Continued Below

BIG NEWS — MIKE SCHMIDT, MATT APUZZO and MAGGIE HABERMAN: “A Split From Trump Indicates That Flynn Is Moving to Cooperate With Mueller”: “Lawyers for Michael T. Flynn, President Trump’s former national security adviser, notified the president’s legal team in recent days that they could no longer discuss the special counsel’s investigation, according to four people involved in the case — an indication that Mr. Flynn is cooperating with prosecutors or negotiating a deal. …

“The notification alone does not prove that Mr. Flynn is cooperating with Mr. Mueller. Some lawyers withdraw from information-sharing arrangements as soon as they begin negotiating with prosecutors. And such negotiations sometimes fall apart. … A deal with Mr. Flynn would give Mr. Mueller a behind-the-scenes look at the Trump campaign and the early tumultuous weeks of the administration. Mr. Flynn was an early and important adviser to Mr. Trump, an architect of Mr. Trump’s populist ‘America first’ platform and an advocate of closer ties with Russia.” http://nyti.ms/2BjaEKf

— per WaPo’s Carol Leonnig and Ros Helderman: “The call from Flynn lawyer Robert Kelner to Trump attorney John Dowd came Wednesday evening and is a potentially ominous sign for Trump and his close associates. Before this week, Kelner had been communicating with lawyers for Trump. … Jay Sekulow, an attorney for Trump, said, ‘This is not entirely unexpected.’ ‘No one should draw the conclusion that this means anything about General Flynn cooperating against the president,’ he said, adding, ‘It’s important to remember that General Flynn received his security clearance under the previous administration.’” http://wapo.st/2A7LXjw

**SUBSCRIBE to Playbook: http://politi.co/2lQswbh

GOOD FRIDAY MORNING. @realDonaldTrump at 7:10 a.m.: “After Turkey call I will be heading over to Trump National Golf Club, Jupiter, to play golf (quickly) with Tiger Woods and Dustin Johnson. Then back to Mar-a-Lago for talks on bringing even more jobs and companies back to the USA!” … at 7:04 a.m.: “Will be speaking to President Recep Tayyip Erdogan of Turkey this morning about bringing peace to the mess that I inherited in the Middle East. I will get it all done, but what a mistake, in lives and dollars (6 trillion), to be there in the first place!” … at 6:48 a.m.: “Can you believe that the disrespect for our Country, our Flag, our Anthem continues without penalty to the players. The Commissioner has lost control of the hemorrhaging league. Players are the boss!”

FRANKEN’S MEA CULPA — STAR TRIBUNE — “Sen. Al Franken vows to regain Minnesota’s trust after harassment allegations: Senator vows to work hard to regain trust and apologizes anew,” by Jennifer Brooks: “Sen. Al Franken plans to stay in the U.S. Senate and try to win back Minnesotans’ trust. … In Thursday evening’s statement, the senator wrote: ‘I’ve met tens of thousands of people and taken thousands of photographs, often in crowded and chaotic situations. I’m a warm person; I hug people. I’ve learned from recent stories that in some of those encounters, I crossed a line for some women — and I know that any number is too many.

“‘Some women have found my greetings or embraces for a hug or photo inappropriate, and I respect their feelings about that. I’ve thought a lot in recent days about how that could happen, and recognize that I need to be much more careful and sensitive in these situations. I feel terribly that I’ve made some women feel badly and for that I am so sorry, and I want to make sure that never happens again. And let me say again to Minnesotans that I’m sorry for putting them through this and I’m committed to regaining their trust.’ A spokesman said Franken will speak with the media on Sunday.” http://strib.mn/2Aai5mH

THE LATEST ON TAX REFORM — “GOP deficit hawks fear tax plan is secret budget-buster,” by Seung Min Kim: “The GOP has yet to resolve an internal clash over whether expiring tax cuts will really expire, potentially threatening the party’s push for a desperately-needed legislative achievement. On one side are the White House and top congressional Republicans, who argue that ultimately all the tax cuts in their plan will be extended, even the ones slated to lapse. But that’s exactly what the party’s small, but mighty, bloc of deficit hawks is afraid of.

“And as the Senate steams toward a vote next week on its massive tax overhaul, the fight over the bill’s true sticker price may be the deciding factor for the bill. It was bad enough, in the deficit hawks’ view, that key provisions in the House bill expire in five years and that lawmakers already assume they’ll get extended. But their concerns multiplied after the revised Senate GOP tax plan proposed winding down a host of popular tax cuts for individuals after 2025. The tax cuts were made temporary to trim the official cost of the bill, but deficit hawks fear Congress will simply extend them — further adding to the government’s red ink.” http://politi.co/2hPPMBQ

— FASCINATING, from Danny Vinik: “It sells pasta sauce, lemonade, and 31 kinds of salad dressing with Paul Newman’s face splashed prominently on the label. Its profits go entirely to charity. And, if the GOP tax bill passes, it will more or less have a section of the U.S. tax code all to itself.

“The Newman’s Own Foundation isn’t mentioned in the Senate or House tax bills by name, but appears to be the target of a specific carveout—among the many highly targeted breaks and exemptions in the new GOP tax plans.

“The unusual structure of the Newman’s Own Foundation, a nonprofit charity that wholly owns a for-profit food company, leaves it vulnerable to a punitive 200 percent tax that would break up the arrangement, and for the past nine years it has spent hundreds of thousands of dollars lobbying Congress to change U.S. law so it can be exempt.

“In this fall’s tax overhaul, it looks like Congress is complying. Both the House and Senate tax bills contain a small provision with an almost impenetrable title — an ‘exception to the private foundation excess business holdings rules for philanthropic business holdings’ — that would let the foundation keep owning the company without the tax penalty. The carveout, sponsored by Sen. John Thune (R-S.D.) and Rep. Dave Reichert (R-Wash.), could spare another 20 to 30 foundations that would face a similar fate in the future.” http://politi.co/2i2m0xs

COMING ATTRACTIONS — “Trump signals welfare reform is next, with details to come,” by AP’s Catherine Lucey: “Welfare reform was one of the defining issues of President Bill Clinton’s presidency, starting with a campaign promise to ‘end welfare as we know it,’ continuing with a bitter policy fight and producing an overhaul law that remains hotly debated 20 years later. Now, President Donald Trump wants to put his stamp on the welfare system. Trump, who has been signaling interest in the issue for some time, said Monday at a Cabinet meeting that he wants to tackle welfare reform after the tax overhaul he is seeking by the end of the year. He said changes were ‘desperately needed in our country’ and that his administration would soon offer plans.” http://bit.ly/2A3v1g4

****** A message from the Peter G. Peterson Foundation: As Washington debates tax reform, there’s talk of tax cuts that will give trillions of dollars back to American taxpayers. That sounds great. But if these tax cuts aren’t paid for, future generations will be stuck with the bill. Congress, tax reform should grow the economy. Not the debt. www.pgpf.org/tax-reform. ******

TALKER — NYT’S TOM FRIEDMAN in RIYADH, SAUDI ARABIA: “Saudi Arabia’s Arab Spring, at Last: The crown prince has big plans to bring back a level of tolerance to his society”: “I never thought I’d live long enough to write this sentence: The most significant reform process underway anywhere in the Middle East today is in Saudi Arabia. Yes, you read that right. Though I came here at the start of Saudi winter, I found the country going through its own Arab Spring, Saudi style.

“Unlike the other Arab Springs — all of which emerged bottom up and failed miserably, except in Tunisia — this one is led from the top down by the country’s 32-year-old crown prince, Mohammed bin Salman, and, if it succeeds, it will not only change the character of Saudi Arabia but the tone and tenor of Islam across the globe. Only a fool would predict its success — but only a fool would not root for it.

“To better understand it I flew to Riyadh to interview the crown prince, known as ‘M.B.S.,’ who had not spoken about the extraordinary events here of early November, when his government arrested scores of Saudi princes and businessmen on charges of corruption and threw them into a makeshift gilded jail — the Riyadh Ritz-Carlton — until they agreed to surrender their ill-gotten gains. …

“It’s ‘ludicrous,’ he said, to suggest that this anticorruption campaign was a power grab. He pointed out that many prominent members of the Ritz crowd had already publicly pledged allegiance to him and his reforms, and that ‘a majority of the royal family’ is already behind him. This is what happened, he said: ‘Our country has suffered a lot from corruption from the 1980s until today. The calculation of our experts is that roughly 10 percent of all government spending was siphoned off by corruption each year, from the top levels to the bottom. Over the years the government launched more than one ‘war on corruption’ and they all failed. Why? Because they all started from the bottom up.’” http://nyti.ms/2hOMJK5

— “With Saudi Ties Fraying, Lebanese Premier’s Construction Empire Crumbles,” by WSJ’s Matthew Dalton in Paris and Nicolas Parasie in Dubai: “Saudi Arabia is at the nexus of Lebanese Prime Minister Saad Hariri’s two big problems: his precarious political future and the looming collapse of his construction empire, a business built on decades of support from the Saudi royal family. Saudi Oger, a Riyadh-based construction company wholly owned by the Hariri family, closed operations across Saudi Arabia this summer after the Saudi royal family slashed spending on lavish construction projects. The firm is now relying on the Saudi government—its main client—to pay millions of dollars in wages owed to the company’s former workers, say former employees. Saudi officials are also investigating the company’s finances.” http://on.wsj.com/2AtolZJ

–“Palestinians Deny Abbas Refused to Take Kushner’s Call Due to Tensions With U.S.,” by Haaretz’s Amir Tibon: “A senior Palestinian official denied on Thursday the report that Palestinian President Mahmoud Abbas refused to take a call from the White House this week, stating that it is completely false. Saeb Erekat, who has been the Palestinians’ chief negotiator in the latest round of Israeli-Palestinian peace talks, said that Abbas did not refuse to take a call from Jared Kushner … Erekat added that Abbas respects and appreciates Kushner.” http://bit.ly/2jiG7UH

FOR YOUR RADAR — “Germany’s Merkel gets a potential lifeline as center-left party says it’s willing to talk,” by WaPo’s Griff Witte in Berlin: “The impasse that has gripped German politics all week showed signs of breaking Friday as a main center-left party backed down from pledges that it would not consider teaming with Chancellor Angela Merkel to form a government. The shift gives Merkel a potential path out of a crisis that’s been called the worst of her 12-year tenure. It also lessens the chance that Germans will go back to the polls in early 2018 after an inconclusive September election left the country without an obvious formula for a stable government.” http://wapo.st/2jkIM05

–“Requiem for a Hit Man,” by WSJ’s Alan Cullison in Kiev and Thomas Grove in Tbilisi, Georgia: “Ukraine has become a magnet for hired guns as Kiev tries to fight its former master Moscow’s bid to reassert control. With a stalemate on the battlefront between Russian-backed rebels and the government, Moscow and Kiev appear to have turned to contract killings to settle scores and winnow the ranks of commanders in the war, Western diplomats say. Most of those killings have been carried out far from the almost daily volleys of artillery in eastern Ukraine, turning Kiev into a hotbed of spies and hit men.” http://on.wsj.com/2hNldMZ

DON JR. UPDATE – “‘Keep coming at me guys!!!’: Donald Trump Jr. meets Russia scrutiny with defiance,” by WaPo’s Drew Harwell: “Donald Trump Jr. had just posted a batch of private messages he exchanged with WikiLeaks during last year’s campaign, confirming reports that he communicated with the website that published stolen Democratic emails obtained by Russian military intelligence. ‘More nothing burgers from the media and others desperately trying to create a false narrative,’ the president’s oldest son wrote on Instagram. ‘Keep coming at me guys!!!’ …

“Faced with deepening scrutiny of contacts he had in 2016 with people tied to Russia, the 39-year-old has adopted a provocative response: defiance. In public appearances and on Twitter, Trump Jr. has taken an increasingly caustic tone, mocking critics and shoving himself into the scrum of the country’s most polarizing debates. It’s an unorthodox legal strategy for someone under scrutiny by congressional investigators, whose every word could be used against him. But the approach fits with the real estate executive’s growing public persona as a right-wing provocateur and ardent defender of Trumpism.” http://wapo.st/2hPNxyq

BEYOND THE BELTWAY — “States prepare to shut down children’s health programs if Congress doesn’t act,” by WaPo’s Colby Itkowitz and Sandhya Somashekhar: “Officials in nearly a dozen states are preparing to notify families that a crucial health insurance program for low-income children is running out of money for the first time since its creation two decades ago, putting coverage for many at risk by the end of the year. Congress missed a Sept. 30 deadline to extend funding for CHIP, as the Children’s Health Insurance Program is known. Nearly 9 million youngsters and 370,000 pregnant women nationwide receive care because of it. Many states have enough money to keep their individual programs afloat for at least a few months, but five could run out in late December if lawmakers do not act. Others will start to exhaust resources the following month.” http://wapo.st/2jjhFCp

COMING ATTRACTIONS — We’ll sit down next week with SEN. MARCO RUBIO (R-FLA.) on Wednesday at 8 a.m. at the Liaison Hotel on Capitol Hill (415 New Jersey Ave., NW). Sign up! Cameras welcome. This will fill up fast. http://bit.ly/playbookrubio

PHOTO DU JOUR: President Donald Trump, with first lady Melania Trump, speaks to members of the U.S. Coast Guard at the Lake Worth Inlet Station, on Thanksgiving Day in Riviera Beach, Fla. | Alex Brandon | AP Photo

NOT THE ONION — COX MEDIA — “Troopers: Naked couple crashes car while having sex; baby was in back seat,” by Bob D’Angelo: “The man was driving on Highway 7 near La Grande in Pierce County [in Washington state], naked and having sex with a woman who also was naked, when he missed a curve, went off the road and struck a tree, State Patrol spokeswoman Brooke Bova said.

“The crash occurred Wednesday at 6 p.m. troopers said. Witnesses told troopers both the man and woman were naked when they got out of the car, The Everett Herald reported. Troopers said they were also both impaired. The woman wasn’t wearing a seat belt. She was taken to the hospital with several broken bones. The 3-month-old child in the back seat was not injured. The man was arrested and booked into Pierce County Jail on suspicion of driving under the influence, vehicular assault and child endangerment, the Herald reported. Troopers said the man has three prior DUI convictions.” http://on-ajc.com/2i3dY7f

TRUMP INC. – “Final Nights at the Trump SoHo Before Trump Checks Out,” by NYT’s Sarah Maslin Nir: “On Wednesday night, Trump SoHo appeared in some ways to be still living up to the excess of its eponym. … But the glitter masked a challenging reality, according to a longtime member of the staff who asked not to be named because employees had signed a nondisclosure agreement. After LeBron James publicly refused to stay at the hotel last year, the corporate clients and 20 or so sports teams that had been regular guests almost entirely disappeared, the staff member said. Porters whose base salaries were once buoyed by up to $60,000 a year in gratuities have earned half as much in tips. Many employees, some of whom are immigrants from countries targeted by Mr. Trump’s policies, quit.” http://nyti.ms/2jWAUWw

K STREET FILES — “Will a Corporate Tax Cut Lift Worker Pay? A Union Wants It in Writing,” by NYT’s Jim Tankersley: “Labor groups … are seizing on the administration’s economic analysis that the tax cut will translate into an extra $4,000 in take-home pay for workers. This week, the Communications Workers of America asked several companies that employ its members to promise to give workers a pay increase if the cut in the corporate tax rate goes through. The request, while unlikely to be heeded, highlights a critical question over who would benefit the most from the tax bill: shareholders or workers? … The companies largely declined to comment or dismissed the letter as a stunt.” http://nyti.ms/2i69PQ1

****** A message from the Peter G. Peterson Foundation: Washington is debating tax reform. There’s talk of substantial tax cuts that will give trillions of dollars back to American taxpayers. That sounds great. But if these tax cuts aren’t paid for, future generations will be stuck with the bill. Congress is right to pursue tax reform – the code is outdated, complex and unfair. Tax reform done right should be permanent, because businesses and individuals need certainty to plan and invest. It should be based on realistic, independent projections and assumptions about the effect on our economy and our fiscal outlook. And it should enjoy bipartisan support, so that it’s durable over time. Lawmakers should use the valuable opportunity presented by tax reform both to improve our fiscal outlook and strengthen the economy at the same time. Congress, tax reform should grow the economy. Not the debt. Learn more at www.pgpf.org/tax-reform. ******

FRONT PAGE of the BOSTON GLOBE — “Number of foreign students coming to U.S. colleges drops,” by Laura Krantz: “The price of Saudi Arabian oil has plummeted. Brazil is recovering from recession. Anti-immigrant rhetoric has spooked young people across the globe. These are just a few factors that led to a historic drop in the number of new foreign college students who came to study in the United States last year, the first decline in a decade, according to a study released this month.

“While Massachusetts fared well compared to the nation as a whole — it continued to see an increase in foreign students — the rise was less robust than in the past. And if the trend continues, schools could face a significant financial challenge. Colleges in Massachusetts, like the rest of the country, rely on full tuition-paying foreign students to sustain their budgets in an era when Americans are increasingly unwilling, or unable, to pay expensive tuition.” http://bit.ly/2jUm4zS

VALLEY TALK – “New Uber CEO Knew of Hack for Months,” by WSJ’s Greg Bensinger and Robert McMillan: “While the massive data breach at Uber Technologies Inc. didn’t happen under the watch of its new chief executive, more than two months elapsed before he notified affected customers and drivers of the incident, people familiar with the matter said. CEO Dara Khosrowshahi learned of the breach, which Uber said happened in October 2016 and affected some 57 million accounts, about two weeks after he officially took the helm on Sept. 5 … Mr. Khosrowshahi said he immediately ordered an investigation, which he wanted to complete before making the matter public. About three weeks ago, though, Uber disclosed the investigation and the broad outlines of the breach to SoftBank Group Corp., which is considering a multibillion-dollar investment in the ride-hailing company.” http://on.wsj.com/2zng4Cg

BEN SHAPIRO PROFILE – “Ben Shapiro, a Provocative ‘Gladiator,’ Battles to Win Young Conservatives,” by NYT’s Sabrina Tavernise: “Mr. Shapiro, conservative thinker, entertainer, trash talker and destroyer of weak arguments, has been called the voice of the conservative millennial movement. He represents the tastes of an emerging political class: If Rush Limbaugh is someone your dad listens to on his car radio, Mr. Shapiro, 33, a graduate of Harvard Law School, is the cool kid’s philosopher, dissecting arguments with a lawyer’s skill and references to Aristotle. He exists in places that young people inhabit — podcasts, Facebook, Twitter and YouTube. His podcast, The Ben Shapiro Show, is downloaded 10 million times every month. Seventy percent of his audience is under the age of 40.” http://nyti.ms/2jiDAdb

SPOTTED: Andrea Mitchell and Alan Greenspan in Dan Snyder’s box last night at the Giants vs. Redskins game, which the Redskins won 20-10

TV TONIGHT – PBS’ “Washington Week”: NYT’s Peter Baker, NBC’s Andrea Mitchell, ABC veteran Ann Compton, TIME’s Michael Duffy

SUNDAY SO FAR – CNN’s “State of the Union” (guest-anchored by Dana Bash): Sens. Lindsey Graham (R-S.C.) and Dick Durbin (D-Ill.) … Tom Steyer. Panel: Nina Turner, David Urban, Bakari Sellers and Bill Kristol

–NBC’s “Meet the Press”: House Minority Leader Nancy Pelosi … Anita Hill … Gretchen Carlson. Panel: Michael Gerson, Hugh Hewitt, Heather McGhee and Katy Tur

–“Fox News Sunday”: Carly Fiorina … Sen. John Thune (R-S.D.). Panel: Marc Lotter, Catherine Lucey, Guy Benson and Marie Harf

–CBS’ “Face the Nation”: Discussion on presidential leadership: Ron Chernow, Robert Dallek, Nancy Koehn and Mark Updegrove … Walter Isaacson. Political panel: Jamelle Bouie, Susan Page and Reihan Salam

ENGAGED – Brian Fung, tech reporter for the Washington Post, proposed to Elizabeth Lamme, a certified nurse midwife at Medstar Washington Hospital Center who is also on the D.C. Board of Nursing. “We met online. … I proposed on Sunday surrounded by our friends at the top of a long, chilly hike at Strickler Knob, near Luray, Va.” Instapic http://bit.ly/2A4gwcA … http://bit.ly/2zyB8Ky

WELCOME TO THE WORLD — Jennifer Lavoie, corporate communications manager at JPMorgan Chase & Co., and Jeff Lavoie, SVP at Dyal Capital Partners, welcomed Olivia Sara Lavoie. Pic http://bit.ly/2BiHpqN

BIRTHDAY OF THE DAY: Jared Cohen, founder and president of Jigsaw, advisor to the executive chairman of Alphabet and a CFR senior fellow. A fun fact about Jared: “I’m working on a book about the ‘accidental presidents,’ or the presidents who took office when their predecessor died unexpectedly. It’s the culmination of a lifelong fascination with presidential history, and it’s been a great excuse to geek out on memorabilia and original documents from American history.” Read his Playbook Plus Q&A: http://politi.co/2A2GZXn

BIRTHDAYS: Sally Susman, EVP for corporate affairs at Pfizer (hat tip: Hilary Rosen) … former Agriculture Secretary Dan Glickman is 73 … Marlin Fitzwater, former press secretary for Presidents Reagan and George H.W. Bush, is 75 … Politico’s Kelsey Miller, Darius Tahir and Katharine Davis … Cristina Cox … Mark Steitz, founder and senior principal of TSD Communications … LCV alum Rachel Kriegsman … Sherry Ettleson … NYT’s Marc Santora … Jeff Ballabon, former CBS News head of comms. … Lee Godown, VP of global markets – policy for GM (h/t Jon Haber) … Meaghan Smith, VP at SKDKnickerbocker and an Obama HHS alum (h/t Kelley McCormick) … Kathleen Hall Jamieson, director of the Annenberg Public Policy Center at Penn and a “frequent commentator on presidential communication and politics” (h/t Michael Rozansky) … Ginger Stanley … Ben Burger, partner at SRCPmedia … AP’s Nasser Karimi … Chris Putala … former Rep. Chet Edwards (D-Tex.) is 66 … former Rep. Ron Dellums (D-Calif.) is 82 …

… Alejandro Mayorkas, former DHS deputy secretary now a partner at WilmerHale, is 58 (h/t Todd Breasseale) … Simcha Lyons … Steven Lowy is 55 … Kavya Balaraman … Matt Chisholm, Rand Paul alum … Jordana Merran … Brent Swander … Benjamin Deitchman … Robin Lyons … Patrick Burchette, partner at Holland & Knight, is 41 … Hugh Grindstaff … Frank Ahrens, VP at BGR Public Relations, is 53 … Suzy DeFrancis … Richard Metzler … Rachel Witkin, associate producer for MSNBC’s “Hardball” … Terry Walsh of The Strategy Group … Maria Ory … Marceline White … Cullen White … Matt Sauvage … Lindsey Schulte … Susan Lyon … Patrick Reimherr … Jonathan Lang … Jed Link … Amanda Anderson … Jim Landry … Dave Rapallo … Andrew Fuentes … Meghan Graf … Jeremy Pevner … Jonathan Black … former NFL Commissioner Paul Tagliabue is 77 … Kathy McGough … Brooke Jamison … Ned McCann … Tim Raftis … John Kamis … Gordon Fischer … Peter McAvoy (h/ts Teresa Vilmain)

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