Global Taxation, Cryptocurrency Regulation, and $3.5 Trillion Dollar Spending Bill.

Tax Policy:

August 25: Senate Democrats release more details of international tax plan

A trio of Senate Democrats on Wednesday released additional details of their proposal to overhaul international taxation, as Democrats turn their attention to drafting a wide-ranging bill that advances President Biden’s economic agenda.

Senate Finance Committee Chairman Ron Wyden (D-Ore.) and committee members Sherrod Brown (D-Ohio) and Mark Warner (D-Va.) released draft legislation that builds on a proposal they released in April. The draft bill is aimed at increasing taxes on multinational corporations and raising revenue to pay for Biden’s social spending proposals.

“Our draft legislation would generate critical revenue to pay for priorities in Democrats’ reconciliation bill, and encourage additional investment in our country and its workers,” Wyden said in a statement.

Crypto:

August 29: Crypto debate set to return in force

The debate over regulating cryptocurrency is set to heat up when lawmakers reconvene in Washington, as industry leaders and members of both parties double down on their objections to the current language in the bipartisan infrastructure bill.

And beyond revising the infrastructure provision after failed efforts, further attempts to regulate cryptocurrency may bring together unlikely allies in Congress — and draw battle lines within parties.

“Rather than trying to ignore or suppress cryptocurrency and related technologies, regulators and legislators alike need to recognize that open, public networks are here to stay. Our laws and regulations must adapt to these developments,” Sen. Pat Toomey (R-Pa.) said in a statement Thursday.

Spending Bill:

August 30: Business groups aim to divide Democrats on $3.5T spending bill

Business lobbyists are increasingly optimistic that they can water down tax hikes and other measures in Democrats’ $3.5 trillion spending plan opposed by corporate America.

Their confidence was boosted last week by an agreement struck between Speaker Nancy Pelosi (D-Calif.) and 10 centrist House Democrats that ensures a Sept. 27 vote on the bipartisan $1 trillion infrastructure bill passed by the Senate earlier this month.

By agreeing to a stand-alone vote, Pelosi softened her stance that both bills must be passed together, a priority for progressives in her caucus. Business groups see that as a huge win, believing that progressives will lose some leverage over components of the reconciliation package if the House passes the $1 trillion infrastructure bill first.

August 27: Democrats brace for new spending fights over Biden agenda

The House this week adopted a $3.5 trillion budget plan that paves the way for lawmakers to pass the forthcoming legislation without any Republican votes. But the approval of the budget measure came after Speaker Nancy Pelosi (D-Calif.) was pressured into striking a deal with a group of moderate Democrats who were threatening to derail the party’s spending plans.

Democrats are now expecting further challenges in getting consensus in their caucus as they draft and attempt to advance the spending bill. Congressional Democratic leaders and top committee members will need to balance the priorities of moderates and progressives, as well as House members and senators since nearly every Democrat will need to vote for the bill in order for it to pass.

August 24: House Passes $3.5 Trillion Budget Plan for Vast Expansion of Safety Net

WASHINGTON — A divided House on Tuesday approved a $3.5 trillion budget blueprint that would pave the way for a vast expansion of social safety net and climate programs, as Democrats overcame sharp internal rifts to advance a critical piece of President Biden’s ambitious domestic agenda.

COVID and the Economy:

August 31: U.S. Consumer Confidence Falls to Six-Month Low on Delta Variant

U.S. consumer confidence dropped in August to a six-month low, suggesting concerns over the delta variant and elevated prices are weighing on Americans’ views of the economy now and in the coming months. 

The latest spike in Covid-19 infections has already curbed restaurant reservations, airline travel, and hotel occupancy. At the same time, Americans are paying more at the grocery store and at the gas pump, which may be further weighing on sentiment.