Happy Monday 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-inscription.
The big deal today: Democrats are upping the ante on the tax chicken game. We’ll also see how Wall Street reacts to worrying work for global markets and President BidenJoe BidenCapitol’s fencing begins to drop after ‘Justice for J6′ rally Senate MP rejects Democrats’ immigration plan Biden pushes Democrats back on taxes MOREpressure on taxes.
But first, some elements adjacent to social justice ice cream news.
For The Hill, I’m Sylvan Lane. Email me at [email protected] or @SylvanLane. You can reach my colleagues from the Finance team Naomi Jagoda at [email protected] or @NJagoda and Aris Folley at [email protected] Where @ArisFolley.
Democrats aim to suspend debt ceiling with bill to avoid government shutdown
House Democrats will combine a short-term government spending bill with a debt limit suspension, a package expected to fall to the ground this week, the president said Nancy PelosiNancy PelosiBiden pushes Democrats back on taxes Yarmuth and Clyburn suggest .5T package could be lightened From partisan fights and follies, or why Democrats should follow Manchin, not Sanders MORE (D-Calif.) Announced Monday.
The move comes after weeks of debate over how best to increase the government’s borrowing limit and avoid default in the face of opposition from Senate Republicans, who are threatening to oppose the measure in protest. President Biden’s spending plans.
Combining the increased debt limit with the continuing resolution, which will extend government funding until December, Pelosi dares Senate Minority Leader Mitch mcconnellAddison (Mitch) Mitchell McConnellTrump Seeks Challenger For McConnell As Senate GOP Leader: President Budget Report: Tackling Debt Ceiling “A Ridiculous Position To Be” Buckle Your Belt For More Trump, With The kind permission of the Democratic Party MORE (R-Ky.) To sink the package and risk a government shutdown on October 1.
Mike Lillis from The Hill explains here.
The background: Congress has until Oct. 1 to pass a short-term funding bill to avoid a shutdown and a few weeks later to raise the federal debt ceiling. While Republicans should support the former, they have ruled out supporting an increase in the debt ceiling and want Democrats to do so through the budget reconciliation process, which would take time on the ground and scold their huge debt ceiling. expenses.
Senate Minority Leader Mitch McConnell (R-Ky.) Made this clear in remarks in the Senate shortly after Pelosi and Schumer’s announcement.
“Senate Republicans would support a clean, ongoing resolution that included appropriate disaster relief and targeted aid to Afghans. We will not support legislation that increases the debt ceiling ”, McConnell said of the Senate floor.
What shall we do now? Unless Republicans abandon their position en masse for some unknown reason, the bill to be passed by the House is likely to die in the Senate, meaning Congress will have to pass a “clean” RC by October. After this point, who knows?
Learn more about the debt ceiling battle: Five questions and answers on the fight against the debt ceiling
LEAD THE DAY
Stocks crash as debt ceiling deadlock, global threats scare Wall Street
Stocks closed with losses on Monday as numerous concerns about the strength of the economy led to a wide sell-off on Wall Street.
- The Dow Jones Industrial Average closed with a loss of 593 points on Monday, falling 1.7% after losing as much as 900 points earlier.
- The Nasdaq composite closed with a loss of 2.2% and the S&P 500 index closed with a loss of 1.7%, each also gaining ground before the closing bell.
- Investors and analysts attributed Monday’s sell-off to a flurry of concerns over the global economy, including the potential economic impact of the delta variant and how it could affect the Federal Reserve’s plans to reduce stimulus measures.
- The gradual collapse of Chinese real estate giant Evergrande, which investors fear could cause a larger credit crunch in China, has also weighed on the market.
“Investors are eager for a significant pullback in the stock market. Now we could finally get one, ”wrote Lindsey Bell, chief investment strategist for Ally Invest.
AN IMPRESSIVE TIME
Biden pushes back Democrats on taxes
President Biden is pushing to prevent Congressional Democrats from reduce his tax proposals, as lawmakers work on a $ 3.5 trillion social spending program to advance the president’s economic agenda.
- The White House and Congressional Democrats both want to raise taxes on the wealthy and businesses, and strengthen law enforcement, to fund investments in areas such as child care, health care and the climate. .
- But legislation that the House Ways and Means Committee approved on Wednesday raised some taxes less than what Biden had previously proposed, and left out some of Biden’s proposals.
It remains to be seen whether the administration can get lawmakers to be more aggressive about raising and enforcing taxes, given the slim Democrats’ majority in Congress. Naomi explain why here.
NOTHING BETTER THAN BEING AT HOME
Biden administration launches new national initiative to tackle homelessness
The Biden administration on Monday launched a new national initiative to tackle homelessness, which will work with local governments to help those suffering from the national housing crisis.
The initiative, dubbed “House America,” will call on heads of government in cities, counties, states and tribes across the country to publicly commit to reducing homelessness in their regions.
The federal government will then provide advice and support to help local jurisdictions provide permanent housing for homeless people and build new affordable housing options for those in difficulty, according to Bloomberg.
Good to know
The pharmaceutical industry is in on the verge of defeat a major Democratic proposal that would allow the federal government to negotiate drug prices.
Here’s what else we have on our minds:
- A group of Senate Democrats are calling on the Federal Trade Commission (FTC) to develop new rules to protect data confidentiality in a context of stalled progress on a national framework.
- The progressive group Tax March announced on Monday that it was leading a new $ 2 million campaign to pressure GOP lawmakers in major states and districts to support President Biden’s economic agenda.
That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. Well see you tomorrow.