Men may die, but the fabrics of free institutions remains unshaken.
- Chester A. Arthur
IN CASE OF EMERGENCY: DO NOT BREAK GLASS: Democrats and Republicans alike continue to send positive signals over next week's funding deadline negotiations. Senate Minority Leader Schumer indicated that a quiet agreement has been reached among leadership, and as long as no poison pills are included, it could be smooth sailing. However as the deadline looms just as lawmakers return to Washington, it is looking more likely that there will be a one or two week extension so Congress can have more time to work on a larger funding package. While leaders on both sides of aisle on both sides of the Hill have made significant progress, President Trump may weigh in with a number of projects he wants funded through the spending bill. Some of these projects are requirements for defense and the border wall, while Democrats are ready to fight over Obamacare insurer reimbursements that President Trump has floated canceling. The process is going along smoothly right now, but expect that to change as soon as
poison pills are introduced into the mix.
NOT SO CHARITABLE: As the tax reform process gets moving, the Trump Administration is looking at capping tax deductions for charitable contributions. While this isn’t set in stone yet, Treasury Secretary Steven Mnuchin and other senior advisors are considering the proposal which would raise more revenue by targeting wealthier taxpayers. This would be in line with Mnuchin’s claims that there would be no tax cut for the upper class. Easier said than done. When President Obama tried in put a cap on charitable deductions for the top tax bracket, nonprofit groups spent more than $20 million lobbying against it and we would expect much more of the same to prevent the cap from being instituted.
PRACTICE ROUND:The GA-6 election was a wake up call for both Republicans and Democrats as talk of 2018 midterm elections begins in earnest. While Democrats have reason to feel hopeful that they almost flipped the seat, this is the second special election in as many weeks where they had momentum stymied at the last minute. If Democrats want to take back the House next year, they will have to start winning these races. Close isn’t going to cut it. On the Republican side, they need to find a way to stop the hemorrhaging in an environment with a president with low approval ratings. Price’s seat in GA-6 has been won handily by Republicans going back to 1979, yet they had to spend $7 million just to force a runoff. With Rep. Jason Chaffetz retiring at the end of this term, and other Republicans likely to follow, many Republican seats will be in play, and they’ll need to be better prepared to defend them.
DISMANTLING THE DEAL?: Secretary of State Rex Tillerson slammed the Iran deal even while confirming that Iran has remained compliant, and the Administration is going to review whether the lifting of sanctions was in the country’s national security interests. The review will be a joint effort with Congress and could potentially mean the end of the “worst deal ever negotiated.” This could spell bad news for some American companies that have jumped at the opportunity to invest in Iran.
PARIS IS ALWAYS A GOOD IDEA: While President Trump is deciding whether to follow through on his campaign promise to withdraw from the Paris climate deal, he is facing a surprising foe, oil and gas producers. Companies such as Exxon Mobil, Royal Dutch Shell, and BP have endorsed the pact claiming that they are in better position to compete on the global stage if the country remains in the agreement. This may reopen freshly-healed wounds between Jared Kushner and Steve Bannon given the former’s support of the deal along with Ivanka Trump - while Bannon and EPA Administrator Scott Pruitt have called on the president to follow through on his campaign promise and exit the deal.
FCC IN HYPERDRIVE TOMORROW: Our Senior Telecom & Media Policy Analyst Paul Glenchur writes that at tomorrow’s open meeting, the FCC will clear away regulatory obstacles, boosting carriers, broadcasters and small cell enablers. You can read the full piece here.
