Business & Economy

On The Money – Senate moves forward with Schumer-Manchin deal

The Senate is beginning consideration of Democrats’ massive tax, health care and climate plan, teeing up a weekend of around-the-clock votes. We’ll also look at what three former IRS chiefs have to say about the bill, an update on the nation’s jobless claims and more. 

But first, see which Democrats are dodging questions about Biden’s 2024 bid. 

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan LaneAris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.

First vote set up for Schumer-Manchin deal 

Senate Majority Leader Charles Schumer (D-N.Y.) announced that the Senate will begin consideration of a $740 billion budget reconciliation package that would reform the tax code and tackle climate change on Saturday afternoon, setting up a weekend of around-the-clock votes.   

“For the information of Senators, the Senate will next convene on Saturday at noon. The next vote will be at 12:30 p.m. on Saturday, on a motion to discharge a nomination. We expect to vote on the motion to proceed to the reconciliation legislation on Saturday afternoon,” Schumer announced on the floor.   

The context: Sinema is still negotiating to make changes to the legislation, according to people familiar with the discussion, but it appears Schumer is optimistic he can strike a deal with her before the package comes to final vote on the floor.   

Alexander Bolton lays it out here

Read more: What does a ‘vote-a-rama’ have to do with Biden’s agenda? 

CATCHING CHEATS 

Ex-IRS heads say reconciliation bill will help agency target wealthy tax cheats

Three former heads of the Internal Revenue Service (IRS) are throwing their support behind a Democratic effort to boost funding for the tax agency to help target higher-income individuals and corporations they say “illegally evade their tax obligations.” 

Fred Goldberg, who headed the agency under then-President George H. W. Bush, joined Charles Rossotti and John Koskinen, who led the IRS under the Clinton and Obama administrations, respectively, in signing onto a statement released Thursday backing the reconciliation spending bill effort.  

Aris has more here

NEW JOBS DATA

Jobless claims tick higher as layoffs rise 

New applications for jobless benefits ticked higher during the final week of July, according to data released Thursday by the Labor Department. 

In the week ending July 30, initial claims for unemployment insurance rose to 260,000, up by 6,000 from the previous week. While claims still remain near pre-pandemic lows, they’ve risen to the highest level since November as the job market slows down. 

Sylvan has the details here.

KEEP YOUR MONEY 

Inflation Reduction Act drops most of Biden’s proposals to tax the rich 

The deal struck last week by Sens. Charles Schumer (D-N.Y.) and Joe Manchin (D-W.Va.), a slimmed-down version of the Build Back Better Act, leaves out most of President Biden’s proposals to pull in greater government revenues from rich taxpayers.  

Increases in individual income tax rates for high earners, increases in the estate tax, increased taxes on capital gains like stock and property holdings, a tax on billionaires, a plan to build out the net investment income tax and a surtax on high-income households are plans that have been scrapped from the Inflation Reduction Act.  

“The administration proposed many, many tax increases that aren’t reflected in this legislation,” UCLA tax economist and former tax analyst for the Treasury Department Kimberly Clausing said on a call with reporters.   

Here’s more from Tobias Burns. 

Good to Know

Senate Majority Leader Charles Schumer (D-N.Y.) plans to call Sens. Amy Klobuchar (D-Minn.) and Chuck Grassley’s (R-Iowa) antitrust bill targeting tech giants to a floor vote, according to a spokesperson for the top Democrat. 

“Sen. Schumer is working with Sen. Klobuchar and other supporters to gather the needed votes and plans to bring it up for a vote,” the spokesperson said in a statement.  

Here’s what else we have our eye on: 

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow. 

VIEW FULL VERSION HERE