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Category: Administration

Senate Clears Omnibus

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The Senate passed H.R. 244, the FY 2017 Omnibus appropriations bill today which will fund the government through Sept. 30. The $1.07 trillion legislation now goes to President Donald Trump for his signature. The Senate tally was 79-18 . The omnibus legislation includes the 11 unfinished appropriations bills and intelligence authorization legislation, as well as funding for retired coal miners’ health care, supplemental defense money and funding to avert a Medicaid shortfall in Puerto Rico.

Trump is expected to sign the legislation, which must be enacted before the current continuing resolution expires at midnight Friday

House Passes Omnibus, Senate Next

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The House just passed a sweeping FY 2017 Omnibus appropriations bill (H.R.244) to fund the government through Sept. 30. The House is sending the $1.07 trillion spending package over to the Senate for a vote later this week, likely Friday. The House vote was 309-118. The lengthy legislation comprises 11 unfinished appropriations bills, along with an intelligence authorization bill and other provisions.

The White House has formally backed the spending agreement, and the Senate is expected to clear the legislation as soon as Thursday. The bill must pass the Senate and be signed by midnight Friday or government funding under a continuing resolution would expire causing a shutdown.

White House Issues SAP on FY 2017 Omnibus

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Today, the White House has issued a Statement of Administrative Policy (SAP) on H.R. 244, the Consolidated Appropriations bill, also known as the FY 2017 Omnibus. While the White House says it is concerned that Congress did not go far enough in funding some priorities, it is a good first step, but priorities should be funded in FY 2018.

Long and short, no veto threat on this bill, but maybe the next one.

Read the SAP here. 

Trump Tax Plan Released

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The Trump Administration released its initial tax proposal. There are still lots of questions and items to be negotiated. The rollout came via a press conference held by Treasury Secretary Mnuchin and National Economic Council Director Gary Cohn. The highlights are below.

Personal Tax Reform

  • For individuals, income tax rates would be set at 10%, 25%, and 35%; these are different than Trump’s campaign proposal rates of 12%, 25%, and 33%, which were aligned with those in the House Blueprint on tax reform.
  • The plan calls to double the standard deduction, but repeals all itemized deductions for individuals aside from the mortgage interest and charitable contribution deductions (includes eliminating deduction for state and local taxes).
  • The plan calls for repeal of the Alternative Minimum Tax (AMT) and the estate tax immediately with no phase out.
  • The top capital gains and dividends rate would remain at 20%.
  • The 3.8% net investment income tax, enacted under the Affordable Care Act, would be repealed.
  •   It would provide tax relief for child and dependent care costs.

 

Business Tax Reform:

  • It calls for a 15% business tax rate (which has been very covered in the news).
  • There is a one-time tax on the repatriation of foreign earnings of US companies at an unspecified rate, which Treasury Secretary Steven Mnuchin said would be negotiated with Congress along with other details.
  • For the first time, the Administration called for a switch to a territorial system of taxing foreign earnings. Note, Trump had called for a worldwide system and elimination of deferral in 2015, during the campaign, but had not addressed his preference on the issue for some time. Today’s plan, as outlined by Secretary Mnuchin and during the press briefing, does not address the House border adjustability proposal.
  • Eliminate “tax breaks for special interests”

White House Rolls Back Shutdown Demands on Border Wall, Okays Subsidies

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Lawmakers on both sides of the aisle and Hill look closer to a deal as the Trump Administration has backed down on demands for a downpayment on the border wall in FY 2017. The decision by Trump to postpone a battle over wall funding until the fall, if necessary, came as a victory for Democrats who oppose a wall and a comfort for Republican negotiators who were given more freedom to maneuver to get a deal in place that would prevent a government shutdown. 

A bigger sticking point has been the ACA subsidies. This afternoon, the White House has said that it will continue paying Affordable Care Act cost-sharing subsidies, removing the biggest remaining hurdle in the negotiations to avoid a government shutdown.

Negotiations continue, but a short term CR may still be in order.