Overnight finance_ winners and losers in _1.8t deal; fed finally hikes rates _ thehill
FUNDING BILL RELEASED… Congress rolled out bills to fund the government through next September and extend dozens of tax breaks while you were sleeping. Here’s what you need to know. ADVERTISEMENTOmnibus overview: House Speaker Paul Ryan announced the $1.1 trillion bill to fund the government to House Republicans in a meeting last night. Most of the policy attachments Republicans fought for didn’t make it. The text was posted online at 1:30 a. m. today and the House is expected to vote on it Friday. The Senate also plans to vote Friday, though every member would need to agree to speed
up the procedural process to do so. What made it in: Lifting the crude oil export ban–a Republican priority that Democrats gave up in exchange for tax breaks for wind and solar energy companies in the tax deal. Repealing controversial country-of-origin labeling (COOL) rules for imported meat: http://bit. ly/1T2cXTS An extension of benefits for 9/11 first responders. A slew of ObamaCare riders, including a two-year delay of the “Cadillac” tax on high-cost insurance plans, a delay of the menu calorie labeling rule, a one-year delay of a “premium” tax and a ban on a program that shields insurers from heavy losses.
What didn’t make it in: Most of the policy riders pushed by Wall Street. Big banks fought for several riders, including measures to rework Dodd-Frank financial reform and a delay of a contentious rule for financial advisers. The Hill’s Peter Schroeder breaks down what went wrong for the financial sector: http://bit. ly/1ZcIfLv. Congressional leadership’s pet projects.
Senate Majority Leader Mitch McConnell (R-Ky.) failed to get a rider scrapping coordinated spending limits between parties and candidates. His Senate counterpart, Minority Leader Harry Reid (D-Nev.), couldn’t secure an attachment to help Caesars Entertainment Corporation stay afloat. House Speaker Paul Ryan (R-Wis.) couldn’t land a rider to close an abortion loophole, and Minority Leader Nancy Pelosi (D-Calif.) struck out on a provision to allow cash-strapped Puerto Rico to declare bankruptcy. The Hill’s Alex Bolton wraps it up: http://bit. ly/2289c5w.
Limits on Syrian refugee resettlement in the United States, which will cost the bill Republican votes, according to Scott Wong, Alex Bolton and Mike Lillis: http://bit. ly/1P8O2yP. Any cuts to Planned Parenthood: http://bit. ly/1YiimwQ.
Lifting the gun research ban: http://bit. ly/1QNx0X0. …AND IT COMES WITH A MASSIVE TAX DEAL: Lawmakers also reached a deal on a $680 billion package of extensions for expiring tax breaks. The Hill’s Naomi Jagoda dove into the bill, and here’s what she found: http://bit. ly/1O6BLWv.
Almost two-dozen tax breaks are extended indefinitely. For individuals, these include the Earned Income Tax Credit, the Child Tax Credit (CTC), the American Opportunity Tax Credit, the deduction for classroom expenses used by teachers, the deduction for state and local sales taxes, and a tax exclusion related to mass transit. In return, Republicans asked for enforcement measures to prevent fraud. Indefinite extensions for businesses include a research and development tax credit, a property expensing credit, and a credit that allows companies to skirt taxes on overseas income. A two-year suspension of an ObamaCare tax on medical devices.
Controversial breaks for NASCAR, horse racing, and film and television productions. IRS reforms, some stemming from the political targeting scandal.
The winners and losers, from Naomi Jagoda and Lydia Wheeler: http://bit. ly/1P804qg. Winners: Big oil, unions, renewable energy, business/manufacturers and low and middle-income families. Losers: The e-cigarette and cigar industries, financial reformers, Wall Street, GMOs and environmental groups.
HAPPY WEDNESDAY and welcome to Overnight Finance, where we have 1.8 trillion reasons to thank our colleagues for almost 18 hours of diving through more than 2,000 pages of legislation. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill. com or tweet me @SylvanLane.
And if you like your newsletter, you can subscribe to it here: http://www. thehill. com/signup/48. WHITE HOUSE GIVES BLESSING TO OMNIBUS: White House press secretary Josh Earnest praised the funding bill this afternoon, indicating President Obama would sign it if it gets to his desk. The Hill’s Jordan Fabian reports: http://bit. ly/1I9D3Up.
“We feel good about the outcome, primarily because we got a compromise budget agreement,” said Earnest. In a statement formally endorsing the deal, the White House said it “urges the Congress to pass this legislation.” GOP SENATORS BALK: Alabama Sens. Richard Shelby and Jeff Sessions said they won’t back the omnibus since it lacked limits on Syrian refugee resettlement and immigration. Arizona Sen. John McCain he would vote no unless a provision that lifted restrictions on the use of Russian rocket engines was removed. Other Senate Republicans facing tight re-elections in 2016 are staying quiet for now. Jordain Carney breaks it down: http://bit. ly/1NxLPsd.
HOUSE DEMS OPPOSE TAX DEAL: House Democratic leaders had disavowed the tax package before the ink was dry. Now they’re urging their caucus to oppose it, but won’t whip against the bill, according to Minority Whip Steny Hoyer (D-Md.). No word if they’ll still Nae-Nae. Mike Lillis and Scott Wong explain why the Democrats are opposed: http://bit. ly/1QsIqk8. “[Hoyer] said ‘it’s not an official whip’ and acknowledged that a long list of popular tax breaks makes it likely that a number of Democrats will ultimately buck leaders to back the measure.
“‘Obviously, it’s difficult for members to vote against good stuff,’ Hoyer said. ‘But, of course, it totally takes the discipline out of the system, because it’s another thing you don’t have to pay for — the goodies. The candy comes and the spinach is never paid for.'” FED RAISES RATES: The Federal Reserve is raising interest rates for the first time in almost ten years. The 0.25 percent hike is fairly small, but significant after unprecedented steps to stimulate the economy after the 2008 financial crises. Fed Chairwoman Janet Yellen and other officials hinted at a hike for months, explaining that doing so would help curb inflation and stave off market bubbles.
The Hill’s Pete Schroeder breaks down what it all means: http://bit. ly/1QqMi5A. “Federal Reserve Chairwoman Janet Yellen struck a balancing act Wednesday. Speaking at a press conference, she painted the rate hike as a sign of how much the economy has strengthened since the Great Recession. At the same time, she downplayed the significance of the hike, repeatedly stressing that the Fed is in no rush to drive borrowing costs up significantly. “‘The economic recovery has clearly come a long way, although it is not yet complete,’ she said. ‘The committee judged a modest increase…
is now appropriate, recognizing that even after this increase, monetary policy remains accommodative.'” How Congress reacted: 2016 Democratic presidential candidate Sen. Bernie Sanders (I-Vt.): “Bad news for working families.” http://bit. ly/1T2aKHZ. House Financial Services Committee Chairman Jeb Hensarling (R-Texas): “Unsustainably low interest rates clearly didn’t solve the problem or else Americans today wouldn’t be stuck in the slowest, worst-performing economic recovery of our lifetimes.
” HFSC ranking member Rep. Maxine Waters (D-Calif.): “We still have a long way to go before the effects of the recovery are fully realized by millions of low-income and minority Americans.
” TRADE DEAL KILLS TECH TARIFFS: From The Hill’s Vicki Needham http://bit. ly/1m8cJji: “The United States and more than 50 countries on Wednesday notched a long-anticipated expansion of an agreement that will eventually phase out more than 200 tariffs on high-tech exports. The landmark deal on the Information Technology Agreement (ITA), the first major tariff-eliminating deal at the World Trade Organization in 18 years, could support upward of 60,000 U. S. jobs.” NEWT GINGRICH SLAMS CFPB DATA COLLECTION: Former Speaker Newt Gingrich (R-Ga.) came back to Capitol Hill to testify about the Consumer Financial Protection Bureau’s data collection projects. Gingrich advises the US Consumer Coalition, an anti-CFPB political non-profit. Here’s more from yours truly: http://bit. ly/1QsI2SU.
“The Government Accountability Office (GAO) found last year that the CFPB ran 12 data collection projects tapping into information from 75 million credit card accounts, 173 million mortgages, 10.7 million consumer credit reports, 5.5 million student loans and between 15 million and 40 million storefront payday loans. “Republicans, long critical of the agency, said its structure and a slew of recent data breaches put American consumers at risk. “The CFPB is collecting data ‘on a massive scale that rivals the NSA … but for a much less compelling reason,’ Gingrich said. ‘This should bother you no matter which side of the aisle you’re on, or what you think of the committee’s regulations.'” NIGHTCAP: People have opinions about Paul Ryan’s beard: http://nyti. ms/1UBmUIW. OVERNIGHT VINE-ANCE: Ben Carson had, uh, a little trouble pronouncing the name of RNC Chairman Reince Priebus at last night’s GOP debate: http://bit. ly/1OwWt2j.
Write us with tips, suggestions and news: slane@thehill. com, vneedham@thehill. com; pschroeder@thehill. com, and njagoda@thehill. com. Follow us on Twitter: @SylvanLane, @VickofTheHill; @PeteSchroeder; and @NJagoda.
Paul: Nobody read the $1.1… “I won’t vote for these enormous bills that no one has a chance to read.” Rand Paul: Trump will be ‘wiped… “Most of Donald Trump is nothing more than sort of bits of populism.” Obama’s proposed high-speed rail… Obama spoke frequently in his first term about developing the network. Poll: Trump holds sizable leads in… Among Democrats, Clinton leads in Iowa while Sanders holds the top spot in… Sanders sues Democratic Party The campaign wants access to its voter data files after the DNC suspended… Rubio misses spending bill vote Other presidential candidates in the Senate were present for the vote. Leader McConnell warns GOP voters…
He mentioned several Tea Party candidates while talking about the mistakes… House easily approves $1.1T… Ninety-five Republicans voted against the measure, as well as 18 Democrats.