On money – The democratic divide on taxes

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Happy Friday and welcome to On The Money, your evening guide to everything related to your bills, your bank account and your results. Subscribe here: thehill.com/newsletter-signup.

Today’s big deal: the dueling tax plans between House and Senate Democrats. We will also look at another projection of default and the battle of Bernie and Joe.

But first, a look at a very effective but impractical button.

For The Hill, I’m Sylvan Lane. Email me at [email protected] or @SylvanLane. You can reach my Finance team colleagues Naomi Jagoda at [email protected] or @NJagoda and Aris Folley at [email protected] or @ArisFolley.

Let’s go.

Senate, House Democrats split on taxes in $ 3.5 billion package

A rift begins to emerge between the chairmen of the two Capitol Hill tax drafting boards over the size and details of the Democratic plans to pay for President BidenJoe BidenPoll: Voters divided over whether they think Biden was trying to score political points with Afghanistan pullout Kansas approves use of M in federal funds to increase nurses’ wages CONTINUEDvast economic program of.

Chairman of the Senate Finance Committee Ron Wyden (D-Ore.) And Chairman of the House Ways and Means Committee Richard nealRichard Edmund NealOn The Money – The Democratic Tax Divide LIVE COVER: Ways and Means Starts Day 2 on the .5T Package (D-Mass.) Are taking different approaches to defining the funding mechanisms designed to fuel a $ 3.5 trillion bill just for Democrats.

  • Wyden has given much more detail on what is under consideration for the Senate tax plan and has publicly announced that he is prepared to raise any amount of taxes necessary to pay for the spending program.
  • Neal, on the other hand, has been much more circumspect in forecasting what the House’s tax package will look like, mirroring the harder path he must take to muster enough votes in a chamber where moderate and progressive Democrats are deeply divided.

“Bringing the Senate and the House together is a henchman’s task. I think this task is just as serious as bringing together Republicans and Democrats, ”said the representative. Bill pascrellWilliam (Bill) James Pascrell On the Money – The Democratic Divide on Taxes LIVE COVER: Ways and Means Begins Day 2 on .5T Package Senate and House Democrats split on taxes in package .5T PLUS (DN.J.), member of the House Ways and Means Committee. “We’re assuming some things here that we’re in the same boat as the Democrats in the Senate,” he added. Alexander Bolton from The Hill tells us why.

LEAD THE DAY

The United States could default on national debt as early as mid-October

The federal government is on track to default on the national debt between mid-October and mid-November without taking action to raise the debt ceiling, according to an analysis released Friday.

  • The Bipartisan Policy Center (BPC), a centrist think tank that closely monitors the debt limit, said the Treasury Department would likely be strapped for money to maintain U.S. solvency sometime after the start of the debt. exercise.
  • BPC originally predicted the so-called x-date would occur as early as early October, but delayed and reduced that window slightly after an unexpectedly large increase in federal revenues in the summer.

But BPC experts have warned that a potential slowdown and growing uncertainty driven by increasing COVID-19 cases could shift that window sooner, bringing the United States closer to an unprecedented national debt default.

“It’s not clear what the next month or two will bring in federal revenue, and that can make a big difference in terms of timing,” said Shai Akabas, director of economic policy at BPC.

“But what is also clear is that they don’t have much more time than at the end of the exercise,” he continued. I have the last one here.

BERNIE AGAINST. JOE

Manchin and Sanders ready to clash over Biden spending program

Sense. Joe manchinJoe Manchin On the money – Democratic division on taxes Reconciliation measure including repeal of advances in Arctic refuge drilling Wyden issues new tax proposals as Democrats work on .5T PLUS bill (DW.Va.) and Bernie sandersBernie Sanders On The Money – Democratic Division on Taxes 12:30 p.m. Report from The Hill: Biden expresses frustration with unvaccinated Americans Wyden releases new tax proposals as Democrats work on .5T PLUS bill (I-Vt.) Rush to a showdown over President Biden’s $ 3.5 trillion spending plan as they draw red lines around their legislative priorities.

  • The two veteran lawmakers are on opposite ends of the Senate Democratic caucus, without a close working relationship and with a few high-profile public splits in their past.
  • But the White House and Democratic leaders will have to find a way to bring them together and meet their competing demands, or suffer a massive defeat of the party’s main goals.

“They really reflect in terms of the representation of different ends of the Democratic coalition. … They are, in a way, avatars of the two wings of the Democratic Party, ”said Democratic strategist Joel Payne.

The backstory: Asked about the relationship between the two, a former Manchin collaborator added: “There is no relationship. … They do not speak. But there were still a lot of flashpoints:

  • Manchin supporters quickly refer to a photo Sanders’ wife Jane Sanders took during a 2017 conference with Manchin’s main opponent at the time, Paula Jean Swearengin.
  • Manchin, two years later, vowed he would “absolutely not” support Sanders if he were the Democratic presidential candidate in 2020.
  • In a caucus call late last year, they clashed over the size of a second round of coronavirus stimulus checks and were also on the other side of the fight against minimum wage earlier this year.

Jordain Carney and Aris Folley of The Hill break it down here.

POISONED WELLS

Wells Fargo to Pay $ 250 Million in Mortgage Breach

Wells Fargo agreed to pay a $ 250 million fine on Thursday after the Office of the Comptroller of the Currency (OCC) accused the company of failing to improve oversight of its mortgage business and failing to comply with an agreement 2018 aimed at correcting decades of internal failures.

Under a consent order issued by the OCC, the bank agreed to take several steps to improve risk management and customer protection in its mortgage lending operations, three years after Wells Fargo paid a record fine for a series of damaging failures.

The background: Wells Fargo accepted a 2018 consent order with the OCC and agreed to pay a $ 1 billion fine after failing to make promised adjustments to customer interest rates on mortgages and loans automobiles, and forced millions of auto loan customers to purchase unnecessary insurance products.

  • Wells Fargo was fined $ 100 million by the Consumer Financial Protection Bureau in 2016 for opening millions of bank accounts and credit cards to customers without their consent.
  • Two years later, the Federal Reserve banned Wells Fargo from growing beyond $ 1.95 trillion in assets amid the unauthorized accounts scandal, mortgage monitoring issues and billing. hidden fees from veterans for refinancing their home loans.

The bank is still operating below that cap after senior executives repeatedly failed and even ignored requests from Fed officials to take more aggressive action to overhaul its internal controls.

The coming week

On Monday

  • The House Financial Services Committee start a markup housing-related parts of the Democratic infrastructure, climate and social services bill at 12 noon, one of many increases that occur in House committees.

Tuesday

Wednesday

  • Senate Banking Committee votes on Brian Eddie Nelson’s appointments as Under Secretary of the Treasury for Terrorism and Financial Crimes; Elizabeth Rosenberg as Assistant Secretary for Terrorist Financing; Julia Ruth Gordon as Assistant Secretary of Housing and Urban Development; David Uejio as Deputy Secretary for Housing and Urban Development; and Solomon Jeffrey Greene as Deputy Secretary of Housing and Urban Development at 9:30 a.m.

GOOD TO KNOW

Powerful business groups whose members are directly affected by President Biden’s recently announced coronavirus vaccine requirement have applauded Biden’s efforts to boost vaccinations, but said the administration needed to provide more details on his plan.

Here’s what else we have on our minds:

  • Apple is not an illegal monopoly but has engaged in illegal anti-competitive behavior, a California federal judge ruled on Friday in the high-profile case brought by Epic Games.
  • Tech trade groups representing Facebook, Twitter and Google are pledging to fight what Texas calls a crackdown on conservative “censorship” on social media.
  • Harvard University President Larry Bacow on Thursday announced that he would withdraw his $ 42 billion investment from the fossil fuel industries, making it one of the richest and most prestigious institutions in the to do.

That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. See you on Monday.



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