September 11, 2024 What to expect in Washington (September 11) Democratic presidential candidate Vice President Kamala Harris and Republican candidate Former President Donald Trump opened their September 10 debate with discussion of the Harris proposals on housing, the Child Tax Credit (CTC), and startups, and Trump's proposal on tariffs and statements that the current Administration is responsible for inflation. VP Harris said: "I intend on extending a tax cut for those families of $6,000, which is the largest child tax credit that we have given in a long time, so that those young families can afford to buy a crib, buy a car seat, buy clothes for their children … My plan is to give a $50,000 tax deduction to start-up small businesses, knowing they are part of the backbone of America's economy." She said Trump intends to "provide a tax cut for billionaires and big corporations, which will result in $5 trillion to America's deficit." Referencing tariffs, she said, "My opponent has a plan that I call the Trump sales tax, which would be a 20 percent tax on everyday goods that you rely on to get through the month." Former President Trump responded: "First of all, I have no sales tax. That's an incorrect statement … We're doing tariffs on other countries." He said, "We've had a terrible economy because inflation … We have inflation like very few people have ever seen before. Probably the worst in our nation's history … This has been a disaster for people, for the middle class but for every class." VP Harris said, "When you look at his economic plan, it's all about tax breaks for the richest people. I am offering what I've described as an opportunity economy." A WCEY Alert, "2024 elections have major implications for TCJA tax cliff," is available here. Health care — Asked about the Affordable Care Act (ACA), Former President Trump said, "I had a choice to make — do I save it and make it as good as it can be, or do I let it rot? And I saved it. I did the right thing, but it's still never going to be great, and it's too expensive for people. And what we will do is we're looking at different plans. If we can come up with a plan that's going to cost our people, our population less money and be better health care than Obamacare, then I would absolutely do it. But until then, I'd run it as good as it can be run." He said, "I have concepts of a plan." VP Harris said, "I absolutely support and over the last four years as vice president, private healthcare options. But what we need to do is maintain and grow the Affordable Care Act." Regarding Republican efforts to repeal the ACA, she said, "And what the Affordable Care Act has done is eliminate the ability of insurance companies to deny people with preexisting conditions … As I have been vice president and we over the last four years have strengthened the Affordable Care Act, we have allowed for the first time Medicare to negotiate drug prices on behalf of you, the American people … And when I am president, we will do that for all people, understanding that the value I bring to this is that access to health care should be a right, and not just a privilege of those who can afford it. And the plan has to be to strengthen the Affordable Care Act, not get rid of it." A WCEY Alert, "2024 Elections and Health Policy," is available here. Tax - The House Ways & Means Committee today is marking up five bills:
Ahead of the Thursday, September 12 Senate Finance Committee hearing on "The 2025 Tax Policy Debate and Tax Avoidance Strategies," the staff of the Joint Committee on Taxation released a report, "Present Law and Background on The Income Taxation of High Income and High Wealth Taxpayers," which describes empirical information, legal background, and policy considerations related to topics to be considered in the hearing. Government funding — The House September 10 passed 209-206 a rule for consideration of bills including Speaker Mike Johnson's (R-LA) continuing resolution (CR) to extend government funding beyond September 30 and through March 28, 2025, along some farm programs, and that also includes some disaster relief and the SAVE Act, a bill intended to ensure only citizens are registered to vote in federal elections. Votes to pass the measure in the House are in doubt. The bill had already faced objections from Democrats opposed to the SAVE Act, and now opposition is growing from some Republicans who are opposed to CRs generally, some who feel the spending levels are too high, and others who want Defense funding settled sooner than 6 months from now. Some members of both parties are concerned the March 28 end date could obviate the need for a post-election lame-duck session. Former President Trump said on social media September 10 that Republicans should oppose a CR without "absolute assurances on Election Security." The expectation has been that, regardless of whether the House passes the CR, a compromise measure will need to be reached with the Democratic-led Senate prior to the September 30 expiration of government funding. Punchbowl News reported September 10, "The conventional wisdom is that Johnson will eventually need to swallow a clean CR in order to avoid a government shutdown. But Trump's comments could put the speaker in even more of a bind." The Washington Post reported, "Portions of the farm bill, the massive five-year agriculture policy legislation, expire Sept. 30, and others expire at the end of the year. Lawmakers considered attaching a one-year farm bill extension to the CR, but opted against it." On another issue eyed for potential inclusion in a CR, Politico reported House Appropriations Chair Tom Cole (R-OK) as saying September 9 that he does not envision Congress moving on Baltimore bridge funding until after the election in November. Other lawmakers have said there is urgency for providing the federal government's resources in response to the Francis Scott Key Bridge collapse. "I don't think we'll do something specific on Baltimore probably until after the elections. But again, we're very supportive of trying to help him [Gov. Wes Moore]," Cole said. Energy tax — The House rule also provides for consideration of the Ways & Means Committee-passed H.R. 7980, Rep. Carol Miller's (R-WV) bill addressing involvement by prohibited foreign entities for purposes of the new clean vehicle credit, tightening the Foreign Entity of Concern (FEOC) definition. Bloomberg Government reported, "The Biden administration is rushing to finish guidance before Jan. 20 on the new 45Z tax credit that rewards production of lower emitting transportation fuels, US Agriculture Secretary Tom Vilsack says. 'There's just a genuine effort and interest on behalf of the administration to get this done,' Vilsack tells members of the ethanol lobbying group Growth Energy on Tuesday." House — Ways and Means Committee Ranking Member Richard Neal (D-MA) announced Rep. Linda Sánchez's (D-CA) selection to serve as Ranking Member of the Subcommittee on Oversight, following the passing of Ways & Means member Rep. Bill Pascrell (D-NJ). "It's well past time for a woman to join the ranks of our Committee leadership, and I'm thrilled to announce that Congresswoman Linda Sánchez has broken this glass ceiling and will now serve as the Oversight Subcommittee Ranking Member," Neal said.
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