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Politics Overnight On The Money — Presented by Wells Fargo — GOP senator: It's 'foolish' to buy Treasury bonds

03:40  15 september  2021
03:40  15 september  2021 Source:   thehill.com

Astros select Marwin Gonzalez, option Josh James

  Astros select Marwin Gonzalez, option Josh James The Astros have selected the contract of Marwin Gonzalez.The Astros 40-man roster had a vacancy because Zack Greinke and Taylor Jones were recently placed on the COVID IL. Neither counts against the 40-man roster at this time.

Happy Monday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.

Dollars and Sense: Ida could be catalyst for debt ceiling deal

  Dollars and Sense: Ida could be catalyst for debt ceiling deal ANALYSIS — Lawmakers were set to return to Washington in September staring down the twin barrels of a potential debt ceiling breach and government shutdown, while various external crises — including devastating hurricanes — buffeted a first-year president with sagging approval ratings. The year was 2017. At this time four years ago, unless Congress gave the Treasury Department […] The post Dollars and Sense: Ida could be catalyst for debt ceiling deal appeared first on Roll Call.

Rick Scott wearing a suit and tie: Sen. Rick Scott (R-Fla.) leaves a meeting with Senate Republicans to discuss the bipartisan infrastructure bill on Wednesday, July 28, 2021. © Greg Nash Sen. Rick Scott (R-Fla.) leaves a meeting with Senate Republicans to discuss the bipartisan infrastructure bill on Wednesday, July 28, 2021.

Today's Big Deal: Republicans digging deeper in opposition to a debt ceiling increase, regardless of the consequences. We'll also look at a difficult road in the House for Biden's massive spending bill and the latest on inflation.

But first, find out why Angelina Jolie and I were in the same building today.

On The Money — The Democratic divide on taxes

  On The Money — The Democratic divide on taxes Happy Friday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.Today's Big Deal: Dueling tax plans among House and Senate Democrats. We'll also look at another debt default projection and the battle of Bernie and Joe.But first, a look at a very effective but inconvenient button.For The Hill, I'm Sylvan Lane. Write me atToday's Big Deal: Dueling tax plans among House and Senate Democrats. We'll also look at another debt default projection and the battle of Bernie and Joe.

For The Hill, I'm Sylvan Lane. Write me at slane@thehill.com or @SylvanLane. You can reach my colleagues on the Finance team Naomi Jagoda at njagoda@thehill.com or @NJagoda and Aris Folley at afolley@thehill.com or @ArisFolley.

Internet funding rule could favor rural areas over cities

  Internet funding rule could favor rural areas over cities Cities and urban counties across the U.S. are raising concerns that a recent rule from President Joe Biden's administration could preclude them from tapping into $350 billion of coronavirus relief aid to expand high-speed internet connections. Biden has set a goal of delivering fast, affordable internet to every American household. The massive American Rescue Plan took a step toward that by including broadband infrastructure among the primary uses for pandemic aid flowing to each city, county and state. But an interim rule published by the U.S. Treasury Department has narrowed the broadband eligibility.

McConnell says GOP 'united in opposition to raising the debt ceiling'

Roy Blunt, Mitch McConnell, Rick Scott, Joni Ernst are posing for a picture: Minority Leader Mitch McConnell (R-Ky.) addresses reporters after the weekly policy luncheon on Tuesday, September 14, 2021. © Provided by The Hill Minority Leader Mitch McConnell (R-Ky.) addresses reporters after the weekly policy luncheon on Tuesday, September 14, 2021.

Senate Democrats are widely expected to package legislation to raise the nation's debt ceiling with a government-funding measure, an effort aimed at putting maximum pressure on Republicans to support raising the borrowing limit or risk blame for a government shutdown.

But Senate Minority Leader Mitch McConnell (R-Ky.) on Tuesday said that Republicans will vote in unison to defeat any government funding bill that would also raise the nation's debt ceiling.

GOP senator: Buying Treasury bonds 'foolish' amid standoff over debt ceiling, taxes

  GOP senator: Buying Treasury bonds 'foolish' amid standoff over debt ceiling, taxes Sen. Rick Scott (R-Fla.) suggested Tuesday it was "foolish" to buy U.S. Treasury bonds amid a standoff between Republicans and Democrats over raising the debt ceiling and President Biden's sprawling economic agenda.In a Tuesday briefing with reporters, Scott asserted that Republican lawmakers will not vote to avert a default on the national debt and expressed doubts that Democrats could win enough political support to pass new tax hikes to offset spending.

"Republicans are united in opposition to raising the debt ceiling," McConnell declared when asked after a GOP conference meeting whether any Republicans would vote for a funding stopgap that expands the federal government's borrowing authority, which is expected to be exhausted in October.

McConnell explained that Republicans oppose raising the debt ceiling "not because it doesn't need to be done" but because doing so would pave the way for Democrats to pass a $3.5 trillion human infrastructure bill that would undo much of former President Trump's 2017 tax cut.

Fact check:

  • Raising or suspending the debt ceiling does not authorize or ban any new spending on its own, nor does it increase or decrease the size of the national debt.
  • Hiking the debt limit simply allows the U.S. to issue new Treasury bonds, which it cannot do right now, and generate cash to pay expenses already approved by Congress.
  • The U.S. has never defaulted on its debt and experts say any lapse in the full faith and credit of the federal government could trigger a financial system meltdown.
  • Countries, financial institutions and investors hold trillions of dollars in Treasury bonds that could plummet in value if the U.S. is unable to stay solvent.

"I'd like every single Republican senator to answer the question, 'Are they willing to let the government default?'" asked Senate Majority Leader Charles Schumer (D-N.Y.) on Tuesday.

On The Money — Presented by Wells Fargo — Democrats advance tax plan through hurdles

  On The Money — Presented by Wells Fargo — Democrats advance tax plan through hurdles Happy Wednesday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.Today's Big Deal: A key step toward passing a major tax overhaul through President Biden's multi-trillion infrastructure and social services bill. We'll also look at a bill to plunge the Fed into the fight over climate change and a plea from CEOs about the debt limit.But first, a weird conversation with an AI simulation of Jerome Powell.For The Hill, I'm Sylvan Lane. Write me at slane@thehill.com or @SylvanLane.

"Leader McConnell, as I said, is playing dangerous political games by not stepping up to the plate as he asked us to do and we did when Trump was president," he added.

Even so, other Republicans, including moderate Sens. Mitt Romney (Utah) and Rob Portman (Ohio), on Tuesday also ruled out voting for a government-funding resolution that also expands the nation's borrowing authority.

And that's why Sen. Rick Scott (R-Fla.) told reporters earlier today that it would be "foolish" to buy Treasury bonds - an asset considered to be almost as safe as cash-amid the standoff.

"If you buy Treasuries today, [you] don't understand that American taxpayers are not willing to raise taxes to pay for this," Scott said, though polling has shown solid support for aspects of Biden's tax plan

"If you're foolish enough right now to be buying this stuff, you're foolish,"

I have more on the showdown here.

On The Money — Presented by Wells Fargo — Pelosi plows full speed ahead on jam-packed agenda

  On The Money — Presented by Wells Fargo — Pelosi plows full speed ahead on jam-packed agenda Pelosi plows full speed ahead on jam-packed agenda Happy Friday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.Today's Big Deal: A busy week ahead for the House. We'll also look at an effort to bolster unemployment aid and more fallout from the GameStop short squeeze.But first, a look at an eventful week in photos.For The Hill, I'mHappy Friday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.

PRESENTED BY WELLS FARGO

D.C. diner rebuilds with help from nonprofit & Wells Fargo

a person standing in front of a store © Provided by The Hill

Flip-It LJ Diner owner Sandra Foote didn't think her Columbia Heights restaurant could survive COVID-19.

Former Democratic and GOP treasury secretaries warn of potential economic disaster as McConnell digs in on refusal to raise the debt limit

  Former Democratic and GOP treasury secretaries warn of potential economic disaster as McConnell digs in on refusal to raise the debt limit "Even a short-lived default could threaten economic growth," the group wrote in a letter. McConnell isn't budging on his refusal to help Democrats.In a letter sent to Congressional leaders, the group warned that failure to address the debt limit and a default could cause "serious economic and national security harm.


Video: Ways and Means Committee members debate $3.5 trillion spending bill (CNBC)

Wells Fargo's Open for Business Fund provided a grant to the nonprofit District Bridges, which then helped Sandra cover bills.

LEADING THE DAY

House is no easy road for Biden, Democrats on $3.5T package

Democrats say getting the $3.5 trillion social spending plan through the House is going to be a tough road, with Speaker Nancy Pelosi (D-Calif.) only being able to afford three defections to get the measure passed.

While debate in the Senate has received more attention, centrists are also vocally wary of the plan in the lower chamber, while progressives aren't interested in bending at all.

Some are already privately urging President Biden to be even more involved in the negotiations on the package with Pelosi, arguing a showing of support for his own agenda will be crucial to getting the bill signed into law. The Hill's Hanna Trudo explains here.

A MESSAGE FROM WELLS FARGO

How a D.C. florist is rebuilding with PPP loans

a woman sitting at a table with a vase of flowers © Provided by The Hill

Le Printemps floral shop in D.C. was able to stay open during the pandemic with two Paycheck Protection Program (PPP) loans booked through Wells Fargo.

85% of PPP loans booked through the bank went to companies with fewer than 10 employees.

MAYBE YOU CAN BUY MY CAR?

Inflation cools in August as price growth misses expectations

Consumer prices rose 0.3 percent in August and 5.3 percent over the past 12 months, according to data released Tuesday by the Labor Department.

Monthly growth in the consumer price index (CPI), a closely watched gauge of inflation, fell for the second consecutive month, dropping from a July increase of 0.5 percent. (Economists expected the CPI to grow by 0.4 percent last month.)

Annual growth in the CPI - one of several ways to measure yearly inflation - also fell from a 5.4 percent rate in July, the highest rate since August 2008.

What happened?

  • Prices for airline fares, used cars and trucks, and motor vehicle insurance all fell in August after skyrocketing through most of the spring and summer.
  • The CPI for used autos, which drove much of the summer's increase in inflation, fell 1.5 percent in August but is still 31.9 percent higher than the same point in 2020.

I break it all down here.

AOC'S MET GALA DRESS, BUT IN LEGISLATION

House Democrats' plan would impose biggest tax increases on high earners: analysis

House Democrats' tax proposals would impose the biggest tax increases on households with income of at least $1 million, according to an analysis released Monday by the Joint Committee on Taxation (JCT).

The analysis takes into account Democrats' proposals to raise taxes on high-income individuals and corporations and to extend the expansion of tax credits for low- and middle-income households.

  • In 2023, households with income of more than $1 million would see federal taxes increase by 10.6 percent, and they would see their average tax rate increase from 30.2 percent under current law to 37.3 percent.
  • Households with income of less than $200,000 would see their taxes decrease, the JCT said.

Much of Democrats' proposed expansion of the child tax credit would expire after 2025 - the same time the individual tax provisions in Republicans' 2017 tax law would expire. Naomi has the details here.

Good to Know

Securities and Exchange Commission Chairman Gary Gensler said Tuesday that the rapid proliferation of cryptocurrencies and investment products tied to them resembled the "wild west."

Here's what else have our eye on:

  • Opening weekend of the 2021 NFL season saw a record-breaking number of gamblers placing online bets as more states move to legalize sports betting.
  • Job searches are expected to increase in the fall as more schools resume in-person learning amid the ongoing pandemic, Indeed's Hiring Lab forecasted in its latest survey.

That's it for today. Thanks for reading and check out The Hill's Finance page for the latest news and coverage. We'll see you tomorrow.

Former Democratic and GOP treasury secretaries warn of potential economic disaster as McConnell digs in on refusal to raise the debt limit .
"Even a short-lived default could threaten economic growth," the group wrote in a letter. McConnell isn't budging on his refusal to help Democrats.In a letter sent to Congressional leaders, the group warned that failure to address the debt limit and a default could cause "serious economic and national security harm.

usr: 2
This is interesting!