Washington Weekly - June 22

This Week:

The House and Senate are in session.

Federal:

Ways and Means:  Last week, the powerful House Ways and Means Committee started markup of its long-awaited tax bill, better known as the Build It In America Act.  The multi-faceted approach to tax cuts would see a $240 billion reduction in taxes over the next ten years.  The funding would largely come from culling $216 billion in green tax credits from last year’s Inflation Reduction Act (IRA). In addition, many of the sunsetting provisions of the 2017 tax bill would be extended and many of the tax increases instituted in the last Congress would be undone.  The threshold for businesses reporting contractor expenses would increase to $5,000 (from $600) and expense deductions would increase to $2.5 million (currently $1 million).  Along with an improved tax package for businesses, personal taxes would be affected as well, with the personal deduction increased to $2,000 for individuals and $4,000 for couples. Democrats in both chambers are unlikely to go along with any of it, especially since they see the basis for any tax deal including an increase in the child tax credit.  This would be difficult to achieve given the cost of an increase and the large share of the population that would claim it.  Keep in mind that this is a starting point and there will be ongoing negotiations to try and get a deal done this session. 

Appropriations: As House appropriators continue bill markup on discretionary spending, the Senate is scheduled to vote this week on the toplines for each of the 12 bills that will be reported out of the chamber.  These numbers will likely be more in line with what the Biden Administration is seeking and in stark contrast to the House, where last week Speaker McCarthy authorized appropriations chairs to revert to FY2022 spending levels, which are substantially below the levels agreed to in the debt limit deal last month.  This is one of the early stages of a long road to the end of the fiscal year, where disagreements may need to be worked out at the deadline.    

Politics:

The GOP 12: Former Rep. Will Hurd (R-TX) announced his candidacy for President this week.   The former CIA officer had retired from his seat before the 2020 Election Cycle and becomes the third Black Republican to enter the race.  He has been a staunch critic of former President Trump and has cited his work since his retirement from Congress in helping the Republican Party become more diverse.  During his time in Congress, he was recognized as a centrist who had defeated a Democrat incumbent to win his border district and becoming outspoken on immigration, education, and healthcare issues. 

Delaware: Senate seats in Delaware rarely open (then-Sen. Joe Biden held his seat from 1973-2009), so when there’s a vacancy, it’s a significant event.  Sen. Tom Carper (D), who has served as a Senator from The First State since 2001, announced last month that he would not run for re-election in 2024.  As expected, Delaware’s sole member of Congress, Rep. Lisa Blunt Rochester (D), announced her candidacy for the seat this week.  She holds the distinction of being the first woman and first person of color to represent Delaware in Congress.  Sen. Carper has already provided his endorsement of Congresswoman Rochester’s candidacy.

President Biden Job Approval (RCP Average): 42% Approve – 54% Disapprove. The House currently has a composition of 222 Republicans to 212 Democrats. The Senate is comprised of 51 Democrats and 49 Republicans. Special Elections: Democratic: (RI-1 Primary: 9/5/2023; General: 11/7/2023).  Republican: (UT-2 Primary: 9/5/2023; General: 11/21/2023). Rep. Chris Stewart (UT-2) will resign on September 15, 2023.