OVERNIGHT MONEY: Talking Tax Reform

In its first hearing of the new Congress, the House Ways and Means Committee is set to hear testimony on tax reform from five witnesses – including the nation’s taxpayer advocate and the chief executive of Procter & Gamble. The hearing comes five days before President Obama’s State of the Union address, a moment where many tax policy followers are hoping for some insight into how strong a reform push the White House might make.

The idea of overhauling the nation’s tax code has attracted some recent support on both sides of the aisle. But that backing comes as the tax reform discussion remains at the 30,000-foot level, with few lawmakers having really delved into the nitty-gritty details.

With that in mind, watch out for what committee members say about revenue-neutrality and how comprehensively a reform they push for. 

Rep. Dave Camp (R-Mich.), the panel’s new chairman, is among the number of Republicans who have called for making broad changes to the tax code. Some on the GOP side have also said they don’t believe tax reform should result in an increase in tax revenue and that it’s too early to say whether a reform deal would have to be revenue-neutral.

What Else to Watch For:

Hu, Continued: President Hu Jintao of China is scheduled to address a Thursday luncheon hosted by the U.S.-China Business Council and the National Committee on U.S.-China Relations, in what is expected to be the Chinese president’s only public policy address during his time in Washington. Hu, who is also expected to meet congressional leaders on Thursday, is slated to be introduced by Henry Kissinger at the luncheon.

Rules Committee Tees up Symbolic Spending Vote…:  The House Republicans moved Wednesday to set up a symbolic spending cut vote on the House floor next Tuesday, the day of the State of the Union address. The spending resolution, which passed the Rules Committee, instructs the chairman of the Budget Committee to bring down spending to 2008 levels or less. It does not contain hard numbers, and the places where the cuts will come from is for appropriators to hash out by March 4. 

But the Study Committee Isn’t Waiting: The Republican Study Committee will unveil their own detailed list of cuts Thursday, with Rep. Jim Jordan (R-OH), the chairman of the RSC, Rep. Scott Garrett (R-N.J.), the head of the RSC’s task force on budget and spending, Rep. Jeff Flake (R-Ariz), Rep. John Campbell (R-Calif.) and Rep. Tom McClintock (R-Calif) scheduled to attend a 12:15 press conference. The cuts are expected to be drastic, and the RSC plan will likely goad other Republicans into deepening the cuts they are prepared to back. 

Talking to Mayors: The president and Vice President Joe Biden are scheduled to meet with a bipartisan group of mayors on Thursday to discuss the economy. Elsewhere, Rep. Nancy Pelosi (D-Calif.), the House minority leader, is expected to touch on that topic during a speech at a U.S. Conference of Mayors conference.

About that CFPB: Jon Leibowitz, the chairman of the Federal Trade Commission, is scheduled to speak on Thursday at the U.S. Chamber of Commerce about the overlap between his group and the consumer protection outfit created by the overhaul of financial regulations. 

Economic Indicators:

— The Labor Department is expected to release weekly figures on first-time claims for unemployment benefits, as well as fourth quarter 2010 numbers for usual weekly earnings of wage and salary workers.

— Freddie Mac is set to drop weekly mortgage rates, while the National Association of Realtors is scheduled to release existing home sales for December. 

— The Conference Board is slated to release December’s leading indicators.

— And the Energy Information Administration makes the Week in Petroleum public.

Breaking Wednesday:

Talking Trade: As expected, trade – and, by extension, China’s currency – turned out to be a central topic at what turned out to be a busy day at the White House for the American and Chinese presidents. 

On Wednesday, administration officials announced that China was signing $45 billion in contracts with American companies – including a $19 billion deal to purchase 200 airplanes from Boeing. China also agreed, according to the New York Times, to end a policy that gave its own technology firms a leg up in the chase for big government contracts. 

And while Obama may have pushed Hu on human rights, he also gave some love to the Chinese markets, telling Hu at one point during a joint news conference: “We want to sell you all kinds of stuff.”

A Presidential Uptick: A new Wall Street Journal/NBC News poll finds the public slightly more approving of the president’s handling of the economy. The poll found 45 percent generally approving of Obama’s work on the economy, with 50 percent disapproving. (Those numbers stood at 42 percent and 54 percent in December.)

Other interesting tidbits from the survey: Obama’s approval rating stood at 53 percent. The loss of manufacturing jobs, the decline of the middle class and the national debt were among the issues that left Americans most worried about the future. And more than half of respondents – 52 percent – said they most wanted to hear the president’s thoughts on the economy or federal spending during the State of the Union. 

What You Might Have Missed:

On the Money’s Wednesday:

— Congressional Black Caucus members want to make sure women and minorities are included as Treasury gets set to sell $75 billion in American International Group shares.

— Democrats on House Appropriations fill out their lineup card.

— The House Oversight panel says TARP will be the focus of its first hearing. 

— Geithner declines an invitation to testify at that first hearing. 

— Ways and Means Republicans to stimulus package: You failed.

— Housing starts fall to lowest level in over a year.

— And the Commodity Futures Trading Commission takes its act to Twitter.