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Washington business owners fear socialist ‘millionaires tax’ is driving businesses out — and they’re next
SEATTLE—Business owners in Washington state are worried that the recently passed “millionaires tax” will drive economic activity out—and even target them next.
“There’s a lot of fear and trepidation with what’s going on in our government when it comes to taxes,” Matt Humphrey, a Seattle barber who has locations in the Ballard and Roosevelt areas, told Fox News Digital.
“This new millionaire’s tax is definitely going to impact us,” Humphrey said. “We’re afraid… they treat us a bit like an ATM when it comes to paying out taxes as a small business.”
Steve Gordon, principal of Gordon Truck Centers, a truck dealer in Pacific, Washington, said he is concerned that the millionaires tax will eventually make its way to those who are not in the millionaire income bracket.
“The income tax is the latest kind of battle that’s happened here recently,” Gordon said. “But while they frame it as it’s just a tax on millionaires, I mean that’s stacked on a whole bunch of other taxes and there’s nothing to keep it from expanding to regular citizens. And I think a lot of regular folks realize that what might be just for millionaires today supposedly will be coming for them later as they broaden that tax base.”
MAMDANI’S ESTATE TAX PLAN COULD DRIVE WEALTH OUT OF STATE, CRITICS WARN
Washington state Democrats last month passed the “millionaires tax,” which Democratic Gov. Bob Ferguson signed March 30. It’s the state’s first-ever income tax, celebrated by progressives and socialists and opposed by conservatives; the Wall Street Journal editorial board called it a “con” after its passage that will “inevitably capture the middle class.”
The new tax will impose a 9.9% income tax on households earning more than $1 million each year. T tax applies to any money earned after the first $1 million of someone’s annual income. It will take effect on Jan. 1, 2028, with the first payments due in April 2029, KOMO News reported.
“Adoption of the historic Millionaires’ Tax makes our tax system more fair, and means free meals for K-12 students, the largest tax break in state history for small businesses, eliminating the sales tax for baby diapers, and sending a check to nearly 500,000 working families to make life more affordable,” Ferguson said at the time.
His office touted that the new tax “sends significant revenue back to Washington families and small business owners.”
But not everyone is thrilled.
“They’re all concerned. Everybody’s concerned,” radio host Ari Hoffman told Fox News Digital.
“And it doesn’t matter what kind of business you have, because as I mentioned before with regards to Amazon, if you’re a barber and you were reliant on the Amazonians as your customers, now you don’t have them anymore. You don’t have a barbershop anymore. There were a lot of places that opened up in South Lake Union where Amazon was specifically for Amazon, and they had to close shortly thereafter.”
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570 KVI reported Wednesday that Socialist Seattle Mayor Katie Wilson is suggesting she might be pursuing additional taxes on the wealthy and big business.
“Speaking at a community forum Friday night, Wilson said her administration is exploring new ‘progressive revenue options’ to help close a projected $140 million city budget gap in 2027,” the outlet reported, quoting Wilson who said, “My team is very hard at work looking for progressive revenue options, taxing the rich, taxing big business in a way that we think will be politically viable and practical.”
The city of Seattle, according to the Tax Foundation, has the highest combined state and local sales tax rate, sitting at 10.35%.
The organization points out that Seattle surpassed the city of Tacoma, Washington, which had a 10.3 percent tax rate, when King County, where Seattle is located, adopted a 0.1% additional sales tax to generate additional revenue for nonprofits providing cultural programming.
“I pay two different B&O taxes, a state B&O tax, a city B&O, I pay sales tax,” Humphrey told Fox News Digital.
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“They want to tax me on all my equipment that I use here annually, that I’ve already paid sales tax on,” he said. “They come up with the highest minimum wage in the state, if not in the country, that I’m aware of. So the cost of labor, the other thing is our relationship with labor. They put us in a very vulnerable position when it comes to actually being an employer. It doesn’t favor the employer.”
Washington State’s Business & Occupation (B&O) tax is the Evergreen State’s primary business tax. It is unusual because it is charged on gross receipts, or total revenue, rather than profit, meaning that businesses must pay the tax even if they lose money.
Several Washington cities have a higher minimum wage than Seattle’s $21.30 per hour, including Tukwila at $21.65 for large employers and Renton at $21.57.
“Amazon used to be bustling,” Hoffman told Fox News Digital. “It was like when I would go down there, I felt like it was in Manhattan. I couldn’t find a parking spot anywhere. And now, no problem, I can park wherever I want. It’s really sad.”
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On Feb. 24, Amazon told GeekWire that it would not renew its lease at 1915 Terry Ave in the Denny Triangle area of downtown Seattle, which had occupied the space for 12 years.
GeekWire reported that the company is growing its presence outside downtown Seattle in Bellevue, located in King County, Washington, across Lake Washington from Seattle.
It has opened new office buildings and plans to have 25,000 employees as part of its regional headquarters.
“I mean, I look at my own community,” Hoffman said. “When you had a lot of people who lived here specifically for the tech world, and in 2020 they were told they could work remotely, a lot of them went elsewhere and were still collecting a Seattle salary and then found jobs in those other places. They never came back. The jobs aren’t going to come back magically. These taxes, these policies are scaring people off and a lot of people are leaving.”
Starbucks is another company appearing to lessen its Seattle presence, confirming in March that it will be closing five additional stores in the city. That follows several closures in 2025, including the Starbucks Reserve Roastery on Capitol Hill.
Additionally, in a March post on LinkedIn, former Starbucks CEO Howard Schultz announced that he and his wife moved to Florida for their “retirement phase,” leaving Washington state after almost half a century.
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While Schultz did not mention the millionaires tax, some, like Gordon, speculate his departure could have been due to it.
“It was pretty ironic that Howard Schultz, who definitely has been a person of the Left nationally with his political profile, announced the day that they approved that income tax in our legislature, he made the announcement that he was leaving for tax-free Miami, Florida,” Gordon said.
“So I don’t think that was a coincidence,” he went on. “And for people that have watched Jeff Bezos leave and other prominent members of the Seattle business community, you start to see a trend there that’s unavoidable that the leaders of the businesses are leaving and the businesses themselves are relocating. Starbucks headquarters, for instance, has just opened up a new second headquarters in Tennessee and the speculation is they’re eventually going to move all of their employees out of their Seattle headquarters to Tennessee.”
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But State Rep. Shaun Scott of Seattle, a member of the Seattle Democratic Socialists of America since 2017, told Fox News Digital that he doesn’t want to engage in hypotheticals about the future of the millionaires tax trickling down to the less wealthy.
“Well, it’s very difficult to legislate with hypotheticals and to legislate thinking about what may happen 10, 15, 20 years down the line in a legislative body that I may not even actually be a part of,” Scott said.
“I believe that it is our role as state lawmakers to legislate according to the issues that are impacting us while anticipating ones that might come down the line,” he added.
Scott continued, “And the fact of the matter is that right now in Washington state we have galling wealth inequality. And underfunded public institutions. And the way that that is reconciled is through basic arithmetic. People who have more could afford to be paying more into the system. And when that happens, I think that Washington will be an even more competitive place to live, work, and do business than it is at present.”
CORPORATE AMERICA IS ON THE MOVE, AND THESE RED STATES ARE CASHING IN
Scott said he believes “taxing the rich” is popular among both Republicans and Democrats.
“Well, taxing the rich and the idea of taxing wealth in order to fund services that we all use, make no mistake about it, this is about as popular a policy position in Washington state as any other,” Scott said.
“As a matter of fact, it is, I would venture to say, the most popular position that somebody could take,” Scott added. “In the November 2024 election cycle here in Washington state, approaching two-thirds of Washington state voters statewide cast their ballots in favor of a capital gains tax upholding our capital gains tax, which funds early learning K-12 schools and child care in our state. So when you talk about taxing the rich in our state, that is something that is staunchly supported in very red conservative legislative districts as well as very progressive blue legislative districts like my own.”
Vijay Boyapati, a former software engineer for Google, moved to Seattle in 2006 from California to escape high taxes there.
He told Fox News Digital that he sees taxes consistently rising in the state without “results.”
“Taxes have gone up constantly over the last decade. They’ve almost doubled from about ten years ago, but educational results are much worse, so the money isn’t producing the results that they say it will produce,” Boyapati said.
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“So the question really needs to be, why are we not getting better results? he asked. “I think we need to look at why our school systems are failing, why 8th graders, for instance, have like a 70% rate of illiteracy and really poor scores on math, those are really important things to look at and throwing more money at it hasn’t solved the problem, so I think we need to kind of address the problem first before throwing more at it.”
A June report from the Washington State Standard found that, “More than two-thirds of the state’s 4th graders failed to meet reading standards, and 70% of 8th graders weren’t proficient in math last year.”
Boyapati also said friends of his are leaving the state because of the tax climate.
“I have friends who’ve left to Texas, friends who left to Miami, friends who’ve left to Wyoming,” he said. “And it’s all for the same reason. It’s because Washington really went very far left in the last four years, and the policy changes have been really dramatic and that caused a lot of my friends to leave, unfortunately.”
Humphrey, the Ballard barber, said that he would warn others about something similar happening in their state.
“What I would say to the rest of the country is don’t let this happen to you,” Humphrey said.
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“Don’t become so compassionate around these issues that sound good and don’t not do your homework,” Humphrey added. “Please look. Look closely at the taxing of small businesses. You can’t, you know, what we’re doing here in the state – going against the Constitution for an income tax is a terrible decision, and it’s going to snowball right towards us, right? I’m next. I’m the next in line. I don’t make a million dollars a year for sure, but I’m in line for them to come after for a state income tax. And I guarantee you, I can’t afford that.”
In a statement to Fox News Digital about its Seattle presence, Starbucks said, “We regularly review how our coffeehouses serve their neighborhoods and if they are meeting customers where they are. Sometimes that means investing in updates or trying new formats.”
The company added, “Other times, it means making the difficult decision to close a location that no longer fits how people in that community live, work, or gather. These choices are never easy — especially here at home — but they’re an important part of focusing on what we do best and delivering on our Back to Starbucks strategy.”
An Amazon spokesperson told Fox News Digital in a statement that, “Amazon employees will be moving out of 1915 Terry Avenue at the end of May when our lease expires and relocating to other Puget Sound headquarter offices.”
Fox News Digital reached out to former Starbucks CEO Schultz, Seattle Mayor Katie Wilson, and Gov. Bob Ferguson for comment.
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Tucker Carlson Officially Makes Shock Announcement — He’s Out
A growing divide within the conservative movement is becoming increasingly difficult to ignore, as longtime commentator Tucker Carlson declared that he no longer considers himself a Republican, citing frustration with what he sees as the party’s abandonment of its America First roots.
Carlson made the remarks during a podcast appearance with hosts Travis Dhanraj and Karman Wong, where the discussion turned to the political landscape ahead of the upcoming midterm elections and whether voters remain satisfied with the direction of the Republican Party.
While Carlson made clear that he remains aligned with many conservative principles, he argued that some Republican leaders have drifted away from the priorities that helped fuel President Donald Trump’s rise and transformed the GOP into the dominant force it is today.
“I’m out,” Carlson said during the interview.
“And if I’m out, then I think a lot of other people are out.”
Carlson’s comments came as he discussed polling data and voter sentiment ahead of the next election cycle.
“I would not support the Republican party. There’s no chance I would support the Republican party,” he said.
The former Fox News host argued that certain Republican lawmakers had betrayed their voters by supporting policies he believes put foreign interests ahead of American priorities.
“How could I or any American voter support a political party that’s not loyal to the United States? That puts the interests of a foreign country above those of its own citizens?
“It’s not possible to vote for people like that, and I’m not going to.”
Carlson’s remarks highlight a growing debate inside conservative circles over the future direction of the Republican Party.
At the center of the disagreement is not President Trump himself, but rather how some Republicans have approached foreign policy, military intervention, and America’s role overseas.
Trump built his political movement on the promise of putting American interests first, securing the border, rebuilding the economy, restoring energy independence, and avoiding the endless foreign conflicts that frustrated many voters for decades.
Many of Trump’s supporters continue to view the America First agenda as one of the defining achievements of his political movement.
Carlson suggested that some Republicans have lost sight of those principles.
“I think I’ve voted Republican my entire life,” Carlson said.
“I’ve been a consistent defender for 35 years, of the Republican party. I mean, a very consistent defender.”
“But there’s no defending this because it’s immoral and it’s exactly the opposite of what a political party in a democracy is charged with doing — which is representing its own voters, its own citizens, its own nation.”
“And they’re not doing that,” Carlson concluded.
The comments come amid an ongoing debate among conservatives regarding foreign policy, particularly following recent tensions involving Iran and the broader Middle East.
Carlson has been one of the most vocal advocates of a non-interventionist approach that emphasizes American interests above foreign entanglements. Other conservatives, including commentators and lawmakers aligned with a more traditional hawkish worldview, have argued that a strong American presence abroad remains necessary to protect national security.
The disagreement intensified after military operations involving Iran earlier this year, with Carlson and several other prominent voices warning against policies they believe could lead to deeper involvement in overseas conflicts.
Despite those disagreements, Carlson has generally continued to support many of Trump’s domestic policies, including border security, immigration enforcement, energy production, and efforts to prioritize American workers and taxpayers.
The broader divide illustrates the ongoing evolution of the Republican Party under Trump’s influence.
For decades, the GOP was largely defined by traditional establishment conservatives who favored aggressive foreign policy and intervention abroad. Trump’s rise fundamentally reshaped that coalition, bringing millions of working-class voters, independents, and populist conservatives into the party.
Today, debates like the one Carlson has raised reflect a larger question facing Republicans: how closely the party will adhere to the America First principles that helped fuel Trump’s political success.
Whether Carlson ultimately returns to the Republican fold remains to be seen. But his comments underscore a reality that many political observers have noted in recent years: the future of the conservative movement is increasingly being shaped by debates over foreign policy, national sovereignty, and what it truly means to put America first.
As those discussions continue, one thing remains clear: the America First movement that transformed Republican politics is still driving much of the conversation inside the conservative movement today.
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Top Fox News Host Suffers Deranged Meltdown On LIVE TV — Doesn’t End Well…
A growing divide within the conservative movement spilled into public view this weekend as Fox News host Mark Levin launched a blistering attack on President Donald Trump’s Iran strategy, accusing the administration of pressuring Israel while pursuing a diplomatic agreement designed to permanently prevent Iran from obtaining a nuclear weapon.
The dispute comes as the Trump administration continues negotiations with Tehran following a series of devastating military strikes that crippled Iran’s nuclear infrastructure, eliminated key regime leaders, and left the Islamic Republic in one of the weakest positions it has faced in decades.
President Trump and Vice President JD Vance have argued that the administration is negotiating from a position of overwhelming strength after demonstrating a willingness to use military force when necessary. Their goal, they say, is simple: ensure Iran never obtains a nuclear weapon while avoiding another endless war in the Middle East.
Levin, however, remains deeply skeptical.
During a fiery monologue that lasted more than 17 minutes on Saturday, the longtime conservative commentator accused members of the administration of unfairly targeting Israel while becoming too optimistic about Iran’s intentions.
“I want to say to people in and out of the administration: stop trashing, smearing, bullying the little state of Israel. Stop cozying up to and telling us that the enemy regime in Iran is now more rational, more moderate, and a regime that we can deal with,” Levin demanded. “When just a few months ago they slaughtered 50,000 people, they’re still hanging young people today and, if they had a nuclear missile today, they’d fire it into our country as sure as I’m alive.”
Levin also rejected any suggestion that Israel should allow outside governments to dictate its security decisions.
“I don’t know what’s going on, but if people think they can bully a little country, Israel — a people that have existed 4,000 years through the Babylonians and the Persians, through the Romans and the Third Reich — into surrendering their defense and their decision on how to secure their country, they get another thing coming,” Levin continued. “I think it’s outrageous.”
The criticism did not stop there.
Levin also used social media to question several administration policies, including reports surrounding a Boeing 747 gifted by Qatar and modified for use supporting presidential airlift operations.
“If it’s legal and other countries do it so be it. Do you think wealthy countries should be able to lavish gifts on our government?” Levin wrote.
His sharpest criticism, however, focused on the administration’s efforts to secure a broader peace agreement with Iran and its proxies.
“Item #1 in the MOU provides there’s an immediate and permanent end to the war and that includes Hezbollah in Lebanon. Iran is Hezbollah,” Levin posted. “What’s the enforcement mechanism? Nothing. Israel defends itself after constant attacks from Hezbollah and is admonished for it. Its interests are not aligned with ours, we’re told. It’s endangering the peace deal. This is beyond nuts.”
In another post, Levin argued that current ceasefire efforts were coming at Israel’s expense.
“Apparently as long as Israeli soldiers are killed the ceasefire is holding,” Levin claimed.
The administration has strongly rejected suggestions that it is abandoning Israel or weakening its support for America’s closest ally in the Middle East.
President Trump responded directly Sunday with a warning aimed squarely at Iran and its regional proxies.
“Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!” Trump posted on Truth Social.
For supporters of the administration, that message demonstrates exactly why they remain confident in Trump’s approach. They argue that no modern president has shown a greater willingness to confront Iran militarily while simultaneously seeking a diplomatic resolution that serves American interests.
Vice President JD Vance and Secretary of State Marco Rubio have both emphasized that any final agreement would require Iran to permanently abandon its nuclear ambitions, submit to extensive inspections, and comply with strict verification requirements before receiving any economic benefits.
Administration officials also note that no sanctions have been lifted, no frozen assets have been released, and no direct payments have been authorized.
Instead, they argue that Trump has successfully put Iran in a position where the regime must choose between compliance and continued isolation.
The disagreement highlights a broader debate that has been developing inside the Republican Party for years.
Traditional foreign-policy hawks often favor maintaining maximum military pressure and remain deeply skeptical of negotiations with hostile regimes.
Trump’s America First coalition generally supports overwhelming military strength but prefers leveraging that strength into favorable deals that avoid long-term military entanglements.
Supporters of the president argue that Trump’s strategy reflects the same formula that has defined much of his foreign policy: peace through strength.
Strike hard when necessary. Demonstrate unquestionable resolve. Negotiate from a position of power. And avoid the costly nation-building efforts and endless conflicts that frustrated many Americans for decades.
As negotiations continue, the debate between Levin and the Trump administration reflects a larger question facing conservatives: how best to secure American interests abroad while staying true to the America First principles that have reshaped the Republican Party.
For now, President Trump appears committed to proving that military strength and diplomacy are not opposing strategies—but complementary tools for achieving lasting peace and protecting America’s national security.
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It’s Over! The House Votes 396-13 — Trump Just Won!
In a rare display of bipartisan cooperation, the U.S. House of Representatives overwhelmingly passed the amended 21st Century ROAD to Housing Act this week, advancing a package of reforms designed to tackle America’s housing affordability crisis while delivering on several key priorities championed by President Donald Trump.
The legislation passed by a decisive 396-13 vote, reflecting broad agreement that soaring housing costs, rising rents, and limited inventory have pushed homeownership out of reach for millions of Americans.
Supporters say the bill addresses one of the country’s most pressing economic challenges by cutting red tape, increasing housing supply, strengthening lending opportunities, and helping ensure that American families—not large corporations—have a fair shot at buying homes.
The legislation combines elements of previous House and Senate proposals and seeks to address housing shortages that have contributed to record-high home prices in many parts of the country.
House Financial Services Committee Chairman French Hill praised the measure as a practical, results-oriented solution focused on expanding opportunities for working Americans.
“This bill prioritizes American families by expanding homeownership, enhancing affordability, reducing burdensome regulations that drive up costs, and increasing housing supply nationwide,” Chairman Hill stated.
“Importantly, it delivers on President Trump’s call to limit institutional investors from competing with the American people as they seek to purchase a home,” Hill added.
The legislation includes a variety of reforms aimed at accelerating housing construction and reducing barriers that have slowed development for years.
Among its key provisions, the bill streamlines federal permitting requirements, reduces lengthy environmental review processes for certain redevelopment and infill housing projects, and encourages innovative housing solutions such as modular and manufactured homes.
The measure also provides grants to local governments willing to modernize zoning laws and remove restrictions that limit new construction.
Supporters argue that restrictive zoning policies, excessive permitting delays, and government bureaucracy have significantly contributed to America’s housing shortage.
Rather than relying on massive new federal spending programs, the legislation focuses on empowering local communities, encouraging private-sector investment, and removing obstacles that make housing more expensive.
The bill also raises loan limits for multifamily housing developments, creating incentives for apartment construction and expanding options for renters and first-time buyers alike.
Additional provisions strengthen rural housing initiatives, expand support for veterans seeking housing, modernize financing for smaller mortgage loans, and increase the role community banks can play in local lending markets.
Community banks have long argued that excessive regulations have made it more difficult for them to serve homebuyers and construction projects in their local communities.
Democratic Rep. Maxine Waters acknowledged the seriousness of the housing crisis despite broader political disagreements.
“America is in the middle of a full-blown affordable housing and homelessness crisis, and working families are burdened by skyrocketing rents and a housing market that is pushing homeownership further out of reach,” Waters said.
One of the most notable aspects of the legislation is its effort to curb the growing influence of large institutional investors in the housing market.
For years, investment firms and corporate landlords have purchased thousands of single-family homes, often outbidding families and first-time homebuyers. Critics argue that this trend has driven up prices while transforming communities into rental markets dominated by large corporations.
The legislation includes targeted restrictions designed to discourage large institutional investors from acquiring additional single-family homes.
That approach aligns closely with President Trump’s housing agenda.
Throughout his second administration, Trump has repeatedly argued that homeownership should remain a cornerstone of the American Dream and that government policies should prioritize families over Wall Street investors.
In his National Homeownership Month proclamation earlier this month, Trump emphasized the importance of restoring affordability and expanding opportunities for future homeowners.
“During National Homeownership Month, my Administration recommits to making housing more affordable so that young Americans and hardworking families can raise children, build memories, and create a future in a home of their own,” Trump said.
The president has frequently blamed the housing crisis on “reckless spending, burdensome regulations, and failed housing policies” implemented under previous administrations, as well as “mass illegal immigration and large institutional investors” that have increased pressure on housing supply.
Trump has also taken executive actions aimed at reducing institutional ownership of single-family homes, lowering mortgage costs, and strengthening federal housing programs.
“Under my leadership, America will be a Nation where homes belong to families — not corporations,” Trump said.
At the same time, Trump has emphasized the importance of protecting the value of homes already owned by millions of Americans.
“I don’t want to drive housing prices down. I want to drive housing prices up for people that own their homes. Existing housing, people who own their homes, we’re going to keep them wealthy. We’re going to keep those prices up. We’re not going to destroy the value of their homes so that somebody that didn’t work very hard can buy a home,” Trump said during a Cabinet meeting earlier this year.
He has also repeatedly summarized his housing philosophy with a simple message:
“Homes are built for people, not for corporations, and America will not become a nation of renters.”
With overwhelming bipartisan support in the House and growing concern over affordability nationwide, supporters hope the legislation will mark a significant step toward restoring homeownership opportunities and ensuring that the American Dream remains within reach for future generations.
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