I contend that the strongest of all governments is that which is most free.
- William Henry Harrison
PRESIDENTIAL PIVOT? President Trump’s first address to a Joint Session of Congress exuded the presidential aura that he may have been missing in the first month of his presidency. His aides have been touting a more optimistic tone for days and Trump largely delivered some of the same policy proposals albeit with a softer edge. In what we think is his best speech since launching his candidacy in 2015, he outlined his continued push for tax reform, using our tax dollars to rebuild our infrastructure over foreign aid and the largest increase in military funding as a part of his plan to eradicate ISIS. Trump even extended an olive branch to Democrats calling for a joint effort to make childcare affordable and cracking open the window on immigration reform. While acknowledging Speaker Ryan’s plans for a tax credit to help pay for healthcare, he didn’t acknowledge Medicaid expansion which is a sticking point for many on Capitol Hill. And, Trump’s plans for health care reform are likely not going to help Republicans in their struggle to replace the ACA given his call for a new law that “expands choice, increases access, lowers costs, and provides better health care” will make the Republican’s job that much harder. We are hosting a call on Trump’s agenda with the former Chief of Staff to Speaker Paul Ryan today at 11 am. You can find the details here
BAT BOARDROOM BATTLE: The border tax debate has extended from the halls of the Capitol to the board rooms of some of America’s biggest corporations. Exporters, like Boeing and GE, and pharmaceutical companies back the BAT, but that pits them against retailers like Wal-Mart and Target. Businesses who support the BAT think the tax will help limit corporate inversions which will level the playing field between American and foreign companies and will strengthen the dollar offsetting price of the tax. Retailers are skeptical of this and also fear that even if a strong dollar is the case, it won’t happen immediately. Since Wal-Mart is the largest employer in 20 states, retailers should have an influential advantage in the lobbying war ahead.
A SORRY STATE: The excitement over Trump’s budget proposal was quickly extinguished when Senate Majority Leader Mitch McConnell said that the cuts to the State Department’s budget would likely not clear the Senate. McConnell did qualify his statement that his opinion doesn’t represent the entire Republican Caucus, but Senators Lindsey Graham and John McCain have already spoken out against the proposal. We’ll save the lack of enthusiasm for the absence of entitlement cuts for another day...
SWAPPING OUT SUBSIDIES:The now-leaked Republican ACA replacement plan would swap the law’s income-based subsidies with tax credits that vary by age. Premium subsidies would start at $2,000 a year for adults under 30 and increase to a maximum of $4,000 a year for people over 60. The chart below shows a comparison for three cities by the ACA tax credit versus the Republican proposal:
MOMENTUM FOR AT&T/TIME WARNER (T, TWX): Our Senior Telecom and Media Policy Analyst Paul Glenchur writes that the FCC confirms it will not review the deal and the president softens his tone toward the merger. You can read the full analysis here.
CONGRESSIONAL OVERRIDE OF 2018 MEDICARE PAYMENT TAKES EXCITEMENT OUT OF ANNUAL PAYMENT UPDATES: Our Senior Health Policy Analyst writes that time has come for the post-acute sector to pay their share of the costs for MACRA with a 1% payment update in 2018. You can read the full analysis here.
ALERT: TRUMP EXECUTIVE ORDER CHANGING RFS COMPLIANCE IMMINENT: Our Senior Energy Policy Analyst Joseph McMonigle writes that the EO is a big win for merchant refiners, but EPA rulemaking still necessary to make changes. You can read the full piece here.
