WYDEN ASKS STATES ABOUT COMPANIES TIED TO PANAMA PAPERS: Senate Finance Committee ranking member Ron Wyden (D-Ore.) is asking officials in Nevada and Wyoming about anonymous shell companies in their states with ties to the law firm at the center of the Panama Papers leaks.
“I have become increasingly concerned about the use of anonymous shell companies as vehicles for terrorist financing, tax evasion, and fraud targeting major government programs within the committee’s jurisdiction,” Wyden said Tuesday in letters to the Nevada and Wyoming secretaries of state.
{mosads}The Panama Papers are documents from the law firm Mossack Fonesca, which helps create shell companies in tax havens.
On Monday, the International Consortium of Investigative Journalists, which coordinated reporting on the documents, made information from the papers available in a searchable database. The database contains information about more than 200,000 entities in 21 jurisdictions, including Nevada, the ICIJ said.
Wyden’s letters cited news reports that stated that more than 1,000 Nevada entities and 24 Wyoming businesses have been linked to Mossack Fonesca and affiliates.
“It’s clear you don’t need to go outside the U.S. to set up anonymous shell companies,” he said in a statement. Naomi Jagoda has more: http://bit.ly/1TzmSPo.
TRUMP TRIES TO ASSURE GOP ON TAXES: Donald Trump sought to clarify his position on tax cuts Monday after making comments that raised questions about where he stands on the issue.
In interviews over the weekend, Trump had suggested that lowering tax rates for the wealthy would be negotiable if he were elected president, seemingly defying the GOP’s long-held position that rates should be lowered for everyone.
The questions about Trump’s tax-cutting bona fides are emerging just days before he comes to Capitol Hill for a crucial visit with Speaker Paul Ryan (R-Wis.) and other congressional Republicans. The Hill’s Naomi Jagoda sets the stage: http://bit.ly/24LxsOE.
KERRY: SANCTIONS NO EXCUSE TO AVOID IRAN: Secretary of State John Kerry said on Tuesday that global businesses are using U.S. economic sanctions on Iran to avoid dealing with Tehran.
“If they don’t want to do business or they don’t see a good business deal, they shouldn’t say, ‘Oh, we can’t do it because of the United States,'” he told reporters in London, according to The Associated Press. “We sometimes get used as an excuse in the process.”
Kerry said that international businesses could engage with their Iranian counterparts, provided they are no longer designated for sanctions.
“It’s just not as complicated as some people think,” he said, the AP reported.
Kerry also said that Iran deserves the economic sanctions relief promised in last year’s landmark nuclear agreement with the U.S.
“Iran has a right to the benefits of the agreement that they signed up to,” he said. “If people by confusion or misinterpretation or in some case disinformation are being misled, it’s appropriate for us to try to clarify that.” Here’s more from The Hill’s Mark Hensch: http://bit.ly/1T2YWbb.
NATIONAL SECURITY EXPERTS CONCERNED ABOUT LONG-TERM DEBT: A bipartisan group of prominent national security figures are calling on U.S. leaders to reduce the country’s long-term debt, which they consider the greatest threat to the nation’s security.
“As individuals who have served the nation in both international and domestic leadership roles, we continue to believe that our long-term debt is the single greatest threat to our national security,” the group said in a statement Tuesday, first obtained by The Hill.
The group warns that federal debt is projected to climb to 131 percent of the nation’s GDP over the next 25 years.
“This debt burden would slow economic growth, reduce income levels, and harm our national security posture,” they added. “It would inevitably constrain funding for a strong military and effective diplomacy, and draw resources away from the investments that are essential for our economic strength and leading role among nations.”
The group, Coalition for Fiscal and National Security, is chaired by retired Navy Adm. Mike Mullen, former chairman of the Joint Chiefs of Staff, and includes former Secretaries of State Madeleine Albright and Henry Kissinger, former Defense Secretaries Robert Gates and Leon Panetta, and former National Security Advisers Zbigniew Brzezinski and Brent Scowcroft.
The Hill’s Kristina Wong tell us what the group is proposing: http://bit.ly/1sbeCPW.
HAPPY TUESDAY and welcome to Overnight Finance, where we’re regretting missing Jeff Flake’s cups-of-dirt. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
Tonight’s highlights include mixed news for the U.S. Postal Service, expanded Medicare from Hillary Clinton and a new debt push from Puerto Rico’s governor.
See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.
ON TAP TOMORROW:
- Securities Industry and Financial Markets Association seminar on implementation of the administration’s new fiduciary rule for retirement advisers, 8 a.m. http://bit.ly/1T51J5r
- House Energy and Commerce Health Subcommittee: Hearing titled “Health Care Solutions: Increasing Patient Choice and Plan Innovation,” 10 a.m. http://1.usa.gov/1TvNEbF
- House Energy and Commerce Subcommittee: Hearing titled “Daily Fantasy Sports: Issues and Perspectives,” 10:15 a.m. http://1.usa.gov/1Znhof0
- House Small Business Committee: Hearing titled “Inspiring Entrepreneurs: Learning from the Experts,” 11 a.m. http://1.usa.gov/1TvO29S
- Information Technology and Innovation Foundation event titled, “The Role of Payment Networks in Enabling Fintech Innovation and What Policymakers Can Do to Support It,” 12 p.m. http://bit.ly/270CyVG
- House Ways and Means Health Subcommittee: Hearing on the Implementation of Medicare Access & CHIP Reauthorization Act of 2015, 2 p.m. http://1.usa.gov/1WetBoA
- House Appropriations Defense Subcommittee: Subcommittee Markup — FY 2017 Defense Appropriations Bill, 5:30 p.m. http://1.usa.gov/1Znklfk
CLINTON PROPOSES EXPANDING MEDICARE: Hillary Clinton is stepping to the left on healthcare, expressing support for allowing people younger than 65 to buy into Medicare.
“I’m also in favor of what’s called the public option, so that people can buy into Medicare at a certain age,” Clinton said at a campaign event in Virginia on Monday, in comments first reported by Bloomberg News.
While Medicare recipients currently need to be at least 65, Clinton proposed lowering that age to “55 or 50,” for people who buy into the program.
The comments come as Clinton and her Democratic primary opponent, Bernie Sanders, fiercely debate the idea of single-payer healthcare.
Sanders is proposing a government-run health insurance system for everyone that he casts as “Medicare for All.” Clinton calls his plan too costly and unworkable. http://bit.ly/1T7YTg2.
POSTAL REVENUES RISE BUT AGENCY FACES CHALLENGES: The U.S. Postal Service’s operating revenue rose 4.7 percent to $17.7 billion in second quarter of fiscal 2016, driven by a double-digit gain in shipping and package volume along with price increases.
The USPS reported a profit of $576 million, up from $313 million in the same period last year, but the agency still posted a net loss of $2 billion, more than the $1.5 billion for the same period last year, prompting a call for Congress to take action.
“While we have been successful in achieving controllable income during the quarter, we are still reporting net losses and contending with long-term financial challenges,” said Postmaster General and CEO Megan Brennan.
“We continue to focus on improving operating efficiencies, speeding the pace of innovation and increasing revenues for the postal service,” Brennan said in a statement.
The reported profit excludes the agency’s requirement to prepay retiree health benefits as well as increases in workers’ compensation expenses because of interest rate changes, “a factor outside of management’s control,” USPS said.
“Our financial situation is serious but solvable,” Brennan said. The Hill’s Vicki Needham explains: http://bit.ly/1UQHJTu.
PUERTO RICO GOV TO MEET CREDITORS IN NY, LAWMAKERS IN DC: From Morning Consult, “Puerto Rico Gov. Alejandro García Padilla is meeting with creditors in New York before heading to Washington to lobby lawmakers on Capitol Hill, according to the San Juan-based newspaper El Nuevo Día.
García will continue pushing for congressional legislation that allows the commonwealth to restructure its debt, the newspaper reported. The governor’s office hasn’t announced the trip.
García’s visit follows a Monday meeting in San Juan with Treasury Secretary Jack Lew. The House Natural Resources Committee is slated to release new legislation on the debt crisis tomorrow.” http://bit.ly/1VSfPYt.
US FIGHTS CHINESE CHICKEN TARIFFS: The United States is launching a challenge to China’s continued high tariffs on U.S. chicken imports.
U.S. Trade Representative Michael Froman said Tuesday that the United States is making its case at the World Trade Organization (WTO) because Beijing has failed to bring its anti-dumping and countervailing duties on imports of U.S. chicken broiler products into compliance with global trade rules.
“These unfair and unjustified taxes are in direct violation of China’s international commitments and tilt the playing field further against America’s poultry farmers,” Froman said.
“American farmers deserve a fair shot to compete and win in the global economy, and this administration will continue to hold China responsible when they attempt to disadvantage our farmers, businesses and workers.”
China has maintained high duties on American poultry exports despite a WTO report nearly three years ago finding that the tariffs breached WTO rules. Vicki Needham breaks it down: http://bit.ly/1qce4aC.
BEATING THE DRUM ON HEALTHCARE: One could say a Southern California pre-med student who became director of a boutique D.C. lobbying shop marches to the beat of her own drum. And that would suit Ilisa Halpern Paul just fine.
“I had a lifelong desire to take up an instrument,” Halpern Paul told The Hill in a recent interview from her downtown office. “My husband two and a half years ago called my bluff. He bought me a drum kit.”
Now, Halpern Paul can describe herself as a budding rock drummer in addition to her titles of mother of twin boys and lobbying director of the District Policy Group, which is nestled within the law firm Drinker Biddle & Reath.
“I’m an enthusiastic beginner,” she says of her drum skills. “It’s great stress relief.” The Hill’s Peter Schroeder tells us more: http://bit.ly/24J5EHg.
PRIVATE EQUITY LOBBYING GROUP CHANGES NAME: The leading lobbying group for the private equity industry announced Tuesday that it is changing its name from the Private Equity Growth Capital Council to the American Investment Council (AIC).
The group said in a news release that the name change comes as private equity firms are becoming increasingly diverse and broadening their focus. AIC has an updated mission, which is to “advance access to capital, job creation, retirement security, innovation, and economic growth in the United States by promoting responsible long-term investment.”
The renaming and expanded mission also come a few months after Mike Sommers, who had been chief of staff to former Speaker John Boehner (R-Ohio), became president and chief executive officer of the group: http://bit.ly/1OmuHGL.
Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com; pschroeder@digital-staging.thehill.com, and njagoda@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill; @PeteSchroeder; and @NJagoda.