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Spending plan clears $ 2T tax hurdle

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Spending plan clears $ 2 trillion tax hurdle — — The Democratic Party’s $ 3.5 trillion plan to dramatically expand the federal social safety net clears the first big hurdle as the Houseways and Means Commission approves a new $ 2.1 trillion tax to support its payments. Did. However, the breakdown of 24-19 votes can cause problems in the final passage of the bill. Brian Farrer’s ReportMost are targeted at businesses and wealthy individuals, after moderate Democrats have opposed all Republicans in the panel and opposed tax-raising bags.

Democrats can afford to lose just three votes on the floor. Florida representative Stephanie MurphyDemocratic supporters of the Commission urged the leader to “pre-meet” plans to anticipate later changes to avoid voting for tax increases that could later be abolished by the Senate. “Every time we discuss a non-legal clause, there will be wasted moments that will delay the coveted support for the American people,” Murphy said. “The House and Senate Democrats need to work together in a cautious and thoughtful way to pass the bill through both houses and where President Biden can sign the law.”

One issue the Commission avoided:State Democrats with high property taxes in California and New York think of a state and local tax deduction cap of $ 10,000 wanting an ax.Brian is the Speaker of the House Nancy Pelosi It is expected to present a plan on what to do with the cap, which is the product of President Donald Trump’s 2017 tax law. The bill goes to the rules committee before proceeding to the House proceedings rules.

Happy thursday — Ben White is back soon!Send him a hint [email protected] Also @morningmoneyben To Aubrey Eliza Weaver [email protected] Also @AubreeEWeaver..And you can always contact me with any housing and consumer finance tips [email protected]..

Weekly unemployment claims at 8:30 am … August retail sales, 8:30 am

Yellen’s agenda crushed into vacancies – Bloomberg’s Saleh Morsin: “Treasurer Janet Yellen has one of Washington’s biggest to-do lists. Announces the arrival of global tax reform, works on Wall Street on climate change, and rescues Covid. The fund will distribute billions of dollars. Still, her efforts are hampered by a top-ranked vacancy in the Treasury, where only three officials, including herself, have been confirmed by the Senate. Of the remaining 17 major jobs that need to be, 10 have candidates stuck in the Democratic House of Representatives, while the rest are unnamed.

“Priority such as” Top-to-bottom review Government sanctions When Work to strengthen The resilience of the US Treasury market, which was almost seized in March 2020 amid a surge in global cash dollars, is progressing much slower than expected, according to people familiar with the matter. “

FHFA proposes relaxation of capital rules for Fannie Mae and Freddie May — Housing regulators proposed on Wednesday to ease the capital requirements of the mortgage giant. This is the latest move to revoke the restrictions imposed on government-controlled businesses during the Trump era. Under the proposed rules, the companies behind about half of the U.S. mortgage market need to hold total capital equivalent to about 3% of their assets, rather than the 4% set by the Trump administration last year. there is. On a dollar basis, this means that Fannie Mae and Freddie May together need to hold $ 220 billion instead of $ 294 billion to protect against losses, based on total assets as of March 31, this year. increase.

FHFA has proposed releasing billions of dollars in Fannie Mae and Freddie May The day after suspending other Trump era restrictions In a move that gave businesses more freedom to buy higher-risk mortgages. FHFA Deputy Director Sandra Thompson, appointed by Biden in June after dismissing Trump-era director Mark Calabria, plans to expand affordable homes and address the racial gap in home ownership. I gave priority.

Neil, Biden administration discussing bank reporting requirements — Our Bernie Becker: “Houseways and Means Chair” Richard neale The Democratic Party said Wednesday that it was discussing with the Biden administration how to increase bank reporting requirements in budget adjustments.
“Finance Secretary Janet Yellen and IRS Commissioner Chuck Retig sent a letter to Neil this week in support of a proposal from President Joe Biden. We will collect more with uncollected taxes. ..

“The purpose of this reporting system is to help the IRS pursue high-end breaches by providing top management with information about disproportionately uncertain income flows.” Yellen wrote.

JP MORGAN Supports Emerging Markets-Market Stock Prices After Poor Execution — Reuters: “Investment bank JP Morgan urged investors to stock up on emerging economy stocks every time they fell, saying that Japan’s change of prime minister should boost the yen and Nikkei if it had history.

“Signs that the delta wave of the Covid-19 virus is receding Bank analysts said Wednesday’s global asset allocation report meant that the “risk” situation remained. “We will increase the overweight (purchase recommendation) in EM and Japan this month, given the expected boost in Japan due to recent poor performance and changes in the political system.”

IP: How the US Denied Economic Reaction to COVID — WSJ’s Greg Ip: “Since Covid-19 arrived on the American coast, we’ve had countless problems, but this week we’ve got proof that it really worked. It’s an economic policy response. The Pandemic shutdown initially had the worst impact on the US economy since the Great Crisis. During last year’s financial crisis, both employment and output were lower than in 2008.

“Still, poverty has diminished on its broadest scale. The numbers reported by the Census Bureau this week clarify why. Based on cash income such as wages and social security, the proportion of poor households rose from 10.5% in 2019 to 11.4% last year. Incentives, food stamps and tax credits reduced market share from 11.8% to 9.1%.

SEC Gives Whistleblowers $ 110 Million in Second Largest Payment — Bloomberg’s Matt Robinson: “The US Securities and Exchange Commission has awarded tipsters whose information led to enforcement action $ 110 million, with total payments under the authorities’ whistleblower program exceeding $ 1 billion. According to a statement on Wednesday, the second-largest tipster award to date includes $ 40 million from the SEC and $ 70 million from a related lawsuit filed by another agency. Under the Whistleblower Program, tipsters can be paid for information that encourages sanctions by another agency. ”

Technology and energy companies raise stock prices — AP’s Damian J. Troise and Alex Veiga: “Technology and energy companies raised stock prices in trading Wednesday afternoon, raising benchmark S & P 500 to this week’s rise. The S & P 500 Index is 2:41 EST. It rose 0.8% at the minute. The average of 30 Dow Industries stocks rose 245 points (0.7%) to 34,821, and the NASDAQ Composite Index rose 0.7%. Profit was broad, 80% of Benchmark S & P 500 shares. That’s up. Healthcare and financial stocks also showed solid growth. Only utility companies were delayed. ”

The Federal Reserve requires all employees to have COVID shots — Reuters Ann Safir: “The Federal Reserve Bank in Washington and the Federal Reserve Bank in the region will require all nearly 23,000 employees to be vaccinated with Covid-19. The Fed of Philadelphia will require Wednesday’s note. Informed staff of the new mission at the end of 12 Fed banks that require vaccination as a requirement for employment. The Federal Reserve Board of Washington also announced that employees will be fully vaccinated by November 30. A US Federal Reserve spokesman told Reuters Wednesday.



Spending plan clears $ 2T tax hurdle

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