WEEKEND WORK WARNING: If Congress wants put a bow on a long-term spending bill before next Monday, it might have do it during the weekend, said Majority Leader Kevin McCarthy (R-Calif.).
McCarthy, who controls the House floor schedule, said he’s “seriously looking” at keeping lawmakers in town beyond Thursday (a.k.a Congressional Friday) to wrap up a bill to keep government funded past Dec. 11. Congress would need to pass a short-term funding extension to keep the lights on as it finishes off the stalled bill.
Lawmakers expected to have a draft ready yesterday, but are bogged down in negotiations over controversial policy attachments. Democrats are raising the specter of another government shutdown if Republicans don’t back off some demands. Republicans promise there won’t be another shutdown. The Hill’s Scott Wong and Mike Lillis have the details: http://bit.ly/1HTh2cz.
WHITE HOUSE TELLS CONGRESS TO GET IT TOGETHER: White House press secretary Josh Earnest said this afternoon that President Obama is willing to give Congress a couple of days past the Dec. 11 deadline to hammer-out a long-term deal–but not much longer.
“If members of Congress need an extra day or two to pass legislation, that the president would ensure the government would not shut down,” Earnest said, “but the president is not going to sign a piece of legislation to give them more time to negotiate on a set of ideological riders.”
Those riders are a sticking point for House Democrats, who said everything was moving along until GOP leadership stalled the talks with plans to tie the funding bill to separate tax break extension. Here’s more from Mike Lillis: http://bit.ly/1m91hUZ.
“Right now it is a nonstarter,” said House Minority Leader Nancy Pelosi (D-Calif.) “But we’re hopeful, we’re hopeful that we can find a path on it.”
HAPPY TUESDAY and welcome to Overnight Finance, where we’re still trying to figure out which house Donald Trump would have been sorted into at Hogwarts. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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Tonight’s highlights include Senate Minority Leader Harry Reid‘s power play for a home-state business, a bump in the road to a massive tax deal, and another trade win in reach for Obama.
DEM TAX PRIORITY DEFLATED: Congressional Democrats wanted to index two tax breaks to inflation as part of a broader bill, but the Senate Finance Committee chairman said that at least one isn’t going to happen.
Sen. Orrin Hatch (R-Utah) told reporters that tying the Child Tax Credit (CTC) to inflation was “a nonstarter” in negotiations to continue dozens of tax breaks set to expire this month.
Ways and Means Chairman Rep. Kevin Brady (R-Texas) also has ready a two-year extension of the tax breaks just in case. The Hill’s Naomi Jagoda explains: http://bit.ly/1NU6hsR.
“House Democratic Leader Nancy Pelosi (Calif.) said in a letter to colleagues Monday that indexing the CTC is important to members of the caucus, given the cost of making several business tax breaks permanent… Hatch, however, argued that Pelosi might have to give up something to win a deal that would permanently expand the CTC and Earned Income Tax Credit, which helps low-income families.
“‘She’s a very good legislator, and she knows that I don’t fool around, and that I won’t put something up that isn’t good,’ he said.”
REID RANKLES DEMS WITH CASINO RIDER: The Senate minority leader irked liberals in his caucus by throwing his weight behind a provision to help keep Nevada-based gaming giant Caesars Entertainment Corporation out of bankruptcy.
Reid is pushing an amendment to the pending government funding bill that would let Caesars restructure debt incurred by a subsidiary out of court. Critics say it’s another case of a lawmaker sneaking something past their colleagues and into a bill. Supporters say it could protect up to 30,000 union jobs in Nevada. The Hill’s Alex Bolton reads the cards for us: http://bit.ly/1M1Bdjb.
“Liberals led by Senate Democratic Whip Dick Durbin (D-Ill.) worked to pull a similar provision out of the multiyear highway bill passed by Congress last week… Durbin and his liberal allies were incensed because the provision would have also helped a subsidiary of Education Management Corporation, one of the largest providers of private post-secondary education in the country.
“But Reid may win the day because the rider has been amended to carve out Education Management, the bête noire of liberals, to affect only Caesars, according to a lobbyist familiar with it.”
CUSTOMS DEAL CLOSE: House and Senate lawmakers are polishing off a customs enforcement measure, another key part of Obama’s trade agenda. They say they’re aiming to finish the measure this week and send it over to the White House, but top Democrats aren’t sold yet.
Rep. Sander Levin (Mich.), the Ways and Means Committee’s top Democrat, said he isn’t “optimistic that this committee will produce a product I can support,” adding that trade agreement enforcement provisions “are being oversold.” The Hill’s Vicki Needham reports: http://bit.ly/1ID9BWX.
“Overall, the measure reauthorizes the U.S. Customs and Border Protection agency, streamlines trade rules that aim to keep importers from skirting U.S. antidumping and countervailing duties, adds new protections for intellectual property rights and provides more tools to identify and address currency manipulation.
“‘Too often, companies sneak counterfeit goods past our borders,” [top Senate Finance Committee Democrat Sen. Ron] Wyden (Ore.) said. ‘Foreign governments spy on our businesses and enforcers. They bully our firms into relocating jobs and turning over intellectual property.'”
TAKES ON A PLANE: U.S. trade officials are challenging China’s tax breaks for domestically produced aircraft, claiming it’s undermining international competition. U.S. Trade Representative Michael Froman said Tuesday that the United States has started dispute settlement consultations at the World Trade Organization (WTO). Vicki Needham gets us on board: http://bit.ly/1TZIarH.
“The United States is arguing that China is exempting its own aircraft from a value-added tax (VAT) while imposing those taxes on imported aircraft, which trade officials argue breaks WTO rules prohibiting discriminatory tax treatment based on where the product is made.
“‘China’s discriminatory, unfair tax policy is harmful to American workers and American businesses of all sizes in the critical aviation industry, from parts suppliers to manufacturers of small and medium-sized aircraft,’ Froman said.”
GO CHECK YOUR ODOMETER: Federal transportation projects are funded by a tax on gasoline. Since it hasn’t been raised since 1993 and vehicles are becoming more fuel efficient, some transportation advocates are praising the recently passed highway bill for allocating $95 billion to test mileage-based fee systems. The Hill’s Keith Laing has more: http://bit.ly/1lN2UHo.
“Transportation advocates in Washington have suggested moving to a mileage-based fee system, as receipts from the gas tax have dwindled in recent years — but to no avail.
“The plan, known in transportation circles as Vehicle Miles Traveled (VMT), has faced opposition over privacy concerns in Washington, when it has been floated as an alternative to the gas tax that is currently used to pay for infrastructure projects.
“The gas tax has been the normal source for transportation projects since it’s inception in the 1930s. The tax has not been increased since 1993, however, and the pace of infrastructure expenses is outpacing it, as cars become more fuel efficient.”
NIGHTCAP: espnW teamed up with Marvel to celebrate 25 powerful women in the world of sports and draw them up as superheroes. While the list was mainly athletes, Sens. Claire McCaskill (D-Mo.) and Kirsten Gillibrand (D-N.Y.) won honors for their Campus Accountability and Safety Act, and Attorney general Loretta Lynchgot a shout out for spearheading the indictment of 14 FIFA officials.
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