Overnight Finance: Congress scrambles on spending bill

SHUTDOWN WATCH: Congress has four days to strike a deal to keep the government funded past Friday, Dec. 11, and renew a set of expiring tax breaks. But House Speaker Paul Ryan (R-Wis.) says he isn’t sure that will get done in time. That could force Congress to pass a short-term measure extending funding while negotiators hammer out the details for a long-term bill.

“It might take us more than just this week to get these issues put together correctly,” Ryan told a hometown radio station on Monday.

{mosads}Lawmakers are still squabbling over contentious policy attachments on refugees, environmental rules and financial regulations. The Hill’s Cristina Marcos has more: http://bit.ly/1IQeW83.

TAX DEAL IN THE WORKS: Lawmakers are also hammering out extensions for dozens of expiring tax breaks. With a price tag near $800 billion over 10 years, Senate Republicans are holding out for reforms meant to curb improper payments. Democrats are asking to make two credits–the Child Tax Credit and the Earned Income Tax Credit–permanent parts of the tax code. The Hill’s Vicki Needham has the details: http://bit.ly/1NS7hxs.

HAPPY MONDAY, and welcome to Overnight Finance. I’m Sylvan Lane, your new nightly guide to everything affecting your bills, bank accounts and bottom line.

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Today’s top stories: Hillary Clinton’s warning to Wall Street, revenge of the tax preparers, more fire power for the IRS, FAA funding and some seriously un-“COOL” tariffs.

HILLARY PROMISES HEAVY HAND ON WALL STREET: Hillary Clinton promised to implement tougher rules on Wall Street and fought back bipartisan criticism of her regulatory plan in a Monday op-ed for the New York Times.

Clinton criticized Republican attempts to trash parts of post-recession financial regulation and vowed to go after bad-acting financial executives. She also defended her opposition to Glass-Steagall, a law that made banks separate traditional banking and investment activities, that was repealed by her husband. She’s the only Democratic presidential candidate who won’t bring it back–and liberals aren’t happy. The Hill’s Peter Schroeder breaks it down: http://bit.ly/1jKGSUk

“Clinton argued the [Glass-Steagall law] would not have helped avert the financial crisis, and would fail to address the ‘shadow banking’ sector that currently falls outside traditional financial rules.

“‘We need to tackle excessive risk wherever it lurks, not just in the banks,’ she wrote.

“Clinton’s ties to Wall Street have been a frequent target of political challengers, and the hefty donations and speaking fees she has commanded from the sector has left lingering skepticism among many on the left.”

Clinton’s op-ed earned a social media shout-out from Sen. Elizabeth Warren (D-Mass.), who praised the Democratic candidate’s call “to fight back against Republicans trying to sneak Wall Street giveaways.” From The Hill’s Ben Kamisar: http://bit.ly/1YUYOLK.

NEW BILL GIVES IRS MORE FIREPOWER: A group of Republican senators is pushing a bill that would make it easier to fire high-ranking IRS employees for poor performance or misconduct. That includes threatening to audit someone for personal gain, falsifying or destroying records and not filing timely tax returns. The Hill’s Naomi Jagoda has the details: http://bit.ly/1QrRLqX.

“The IRS Accountability Act of 2015 would apply to agency employees in senior executive positions. The lawmakers have expressed outrage that the IRS commissioner has not yet used its existing firing authority to dismiss employees involved in targeting taxpayers for their political orientation.

“‘For too long the American people have been told there was nothing the IRS Commissioner could do to hold IRS employees who targeted conservative and religious organizations accountable for their actions,” Sen. Tim Scott (R-S.C.), one of the bill’s sponsors, said in a news release. ‘That’s not good enough for the American people and that’s not good enough for me…'”

TAX PREPPERS FIGHT BACK ON IRS RULES: The American Institute of Certified Public Accountants (AICPA) is taking on a pending House bill that would place more rules on tax preparers. Here’s more from Naomi: http://bit.ly/1jKJ8uN.

“The group is looking to beat back the Tax Return Preparer Competency Act, which was introduced last week by Reps. Diane Black (R-Tenn.) and Patrick Meehan (R-Pa.). The legislation would require professional tax return preparers to submit to background checks and take examinations and continuing-education classes.

“We believe the Tax Return Preparer Competency Act allows the IRS to over-regulate professional, credentialed tax return preparers and their staff without providing adequate value to taxpayers or additional protection to the public,” the AICPA said in the letter sent Friday to Ways and Means Committee Chairman Kevin Brady (R-Texas) and ranking member Rep. Sandy Levin (D-Mich.).

NOT ‘COOL’, MAN: If Congress doesn’t repeal a country-of-origin labeling (COOL) rule for imported meat, Canada and Mexico are ready to hit the United States with taxes on more than $1 billion in exports. Vicki Needham explains what’s at stake for steak: http://bit.ly/1TUPS6c.

“The World Trade Organization on Monday authorized Canada and Mexico to tax a wide variety of U.S. exports to cover costs they have incurred over years of implementing the country-of-origin labeling (COOL) rule.

“The decision forces lawmakers to either move quickly to scrap the regulations or put U.S. businesses in jeopardy of paying much more to send their products to two of the nation’s biggest trading partners…

“The COOL rule, which requires labels on meat to show where livestock is born, raised and slaughtered, was first authorized in the 2002 and 2008 farm bills. The WTO decision essentially ends a seven-year dispute over the COOL rule that affects beef and pork products.”

HERE COMES THE PLANE: After passing a five-year highway funding bill, Congress will soon turn to FAA funding. It runs out on March 31, and a group that lobbies for airlines wants lawmakers to get cracking. The Hill’s Keith Laing sets the scene: http://bit.ly/1SKecH4

“Lawmakers are expected to pivot quickly to the FAA bill … The measure, which includes funding for air traffic controllers, is expected to contain a controversial proposal to privatize some functions of the nation’s flight navigation system…

“Lawmakers brought themselves some more time to deal with the issue of aviation funding during the highway bill debate when they passed a six-month extension of the FAA’s funding, which had been set to expire on Sept. 30. Three months of the extra time was diverted to finishing work on the multiyear highway bill, however, and now lawmakers are scrambling to get back up to speed on aviation funding.”

NIGHTCAP: Time magazine announced its eight finalists for the 2015 Person of the Year today. The shortlist includes Islamic State leader Abu Bakr al-Baghdadi, Black Lives Matter activists, Olympian Caitlyn Jenner, Uber CEO Travis Kalanick, German Chancellor Angela Merkel, Russian President and shirtless horseman Vladimir Putin, Iranian President Hassan Rouhani and author Donald Trump. http://ti.me/1OQkbJr

Notably absent: National League champion, ageless wonder and MLB pitcher Bartolo Colon.

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