POLITICO Playbook: Except for every sticking point, Dems are close to a deal
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DRIVING THE DAY
SCOOP: SCOTT VS. SCHUMER IN TV AD WARS — A local TV station in Nevada took down a pro-CATHERINE CORTEZ MASTO ad Tuesday after the NRSC complained it included “flagrantly false” information about the vulnerable senator’s GOP challenger.
In its first ad of the cycle, Senate Majority PAC ran a spot praising the Nevada Democrat and suggesting Republican ADAM LAXALT opposed the child tax credit, “relief” for Nevada’s economy and lowering prescription drug costs for seniors. NRSC Chair RICK SCOTT (R-Fla.) wrote a memo to the stations airing the ad, refuting the points and threatening legal action.
The CHUCK SCHUMER-aligned SMP, through prominent Democratic lawyer MARC ELIAS’ law firm, wrote back to defend the ad’s assertions. But one station’s lawyers sided with Scott. “I have consulted with our attorneys and while this is a difficult decision, we will be pulling the ad as of tomorrow unless new documentation or information comes in that changes the course of our decision,” an executive at Reno’s CBS affiliate, KTVN 2 News, wrote to both parties. (The ad is still airing on other stations in Nevada.)
Committees often send “takedown” requests, but it’s rare that they prevail. Expect this victory to embolden Scott to aggressively target other ads by Democrats. The memos (found here, here and here) also offer a glimpse into how each side is going to spin provisions in the pandemic relief and reconciliation bills to voters.
DEAL OR NO DEAL? — President JOE BIDEN was hoping to announce a deal on his legislative agenda before he heads to Europe on Thursday. But it’s Wednesday already, and so far this week, it’s been two baby steps forward, one giant leap backward for Democrats. We’re not saying a deal won’t materialize; odds are it will — eventually. Here’s a look at the state of play:
THE BABY STEPS …
— Progress on taxes: Democrats (including Manchinema) are on board with a key revenue raiser: a 15% corporate minimum tax on about 200 companies with at least $1 billion in profits. It would generate as much as $400 billion, roughly a quarter of the cost of the reconciliation bill. Bloomberg’s Laura Davison explains the proposal in this piece.
— A Medicaid workaround for JOE MANCHIN: The party also appears to have come up with a solution to the West Virginia senator’s opposition to expanding coverage for 2 million low-income Americans in red states that refused to take Obamacare’s Medicaid expansion. The proposal is a huge priority for House Majority Whip JIM CLYBURN (D-S.C.) and Sen. RAPHAEL WARNOCK (D-Ga.), whose state falls in the so-called Medicaid gap. Alice Miranda Ollstein has more.
— Climate $$$: Biden has proposed at least $500 billion in tax incentives to transition to cleaner energy. That’s a huge sum of money that even progressives will find it tough to complain about. Axios’ Alayna Treene has the deets.
THE LEAP BACKWARD …
— Billion-dollar problems: House Democrats are panning Sen. RON WYDEN’s (D-Ore.) plan to slap levies on unrealized asset gains for billionaires. Speaker NANCY PELOSI was dismissive of the idea, and House Ways and Means Chair RICHIE NEAL(D-Mass.) is privately fuming about it. If it falls through, so would $250 billion. And with Sen. KYRSTEN SINEMA (D-Ariz.) opposed to raising income tax rates on the wealthy or increasing the corporate tax rate, Democrats have some work to do. The details of Wyden’s plan, via Brian Faler
— Unhappy Bernie: Sen. BERNIE SANDERS (I-Vt.) also drew a red line Tuesday, insisting that his Medicare benefits expansion be included in the bill. We don’t know how this gets resolved since Manchin has been saying he won’t expand a program that’s already going bankrupt. More from The Hill’s Jordain Carney
— Manchin vs. IRS. Manchin also insisted Tuesday he won’t back any bill that forces banks to report to the IRS how much money flows in and out of individuals’ accounts. Without the provision, senior Democrats will have to find another pay-for. Our Pro Tax colleagues with more
— Pelosi vs. Jayapal: Democrats are still dogged by the same sequencing problem that thwarted their plans for a late September vote. Pelosi says an agreed-upon framework for the reconciliation package should be enough to forge ahead with a vote on the separate $1.2 trillion bipartisan infrastructure bill. But Congressional Progressive Caucus leader PRAMILA JAYAPAL (D-Wash.) says that won’t cut it: She wants a vote on reconciliation first, or at least legislative text.
The two met to discuss this issue Tuesday, but it didn’t appear to go well. After the meeting, Pelosi was asked about Jayapal’s insistence that a framework isn’t good enough to allow a BIF vote. “I think it is,” the speaker shot back. When CNN’s Manu Raju tweeted the exchange, White House chief of staff RON KLAIN retweeted it, suggesting he’s in line with Pelosi on this one after siding with progressives throughout much of this process.
THE TAKEAWAY: “We are just missing two things: What exactly is going to be in the bill and how we’re going to pay for it?” Rep. BRENDAN BOYLE (D-Pa.) told Bloomberg’s Laura Litvan. “Other than that, we are good to go.”
Or, as Sen. JEFF MERKLEY (D-Ore.) put it to NBC’s Sahil Kapur and Leigh Ann Caldwell: “There’s just huge pieces of this that are not nailed down. So each time I hear ‘Well, it’s almost done,’ I don’t know what the hell people are talking about.”
Good Wednesday morning, and thanks for reading Playbook. Our headline of the day comes via WaPo: “Woman sues Kellogg over lack of strawberries in strawberry Pop-Tarts, seeks $5 million.” There goes our supposed fruit intake. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri.
HAPPENING TODAY — Biden’s ambitious domestic agenda is in political limbo as the White House tries to reach a deal among congressional Democrats to vote on a bipartisan infrastructure bill. Sen. MARK WARNER (D-Va.), who helped write the bill, will join Ryan today at 9:30 a.m. for a live interview to discuss the fate of Biden’s legislative agenda, including the more comprehensive reconciliation package as well as Virginia’s tight gubernatorial race and what its outcome could mean for the Democratic Party. Sign up here
BIDEN’S WEDNESDAY:
— 8:30 a.m.: The president will take part in the virtual East Asia Summit.
— 9:45 a.m.: Biden will receive the President’s Daily Brief.
Press secretary JEN PSAKI will brief at 1 p.m. The White House Covid-19 response team and public health officials will brief at 2:30 p.m.
THE SENATE will meet at 10 a.m., with votes on judicial and DOJ nominations throughout the day. A.G. MERRICK GARLAND will testify before the Judiciary Committee at 10 a.m.
THE HOUSE will meet at noon to take up several bills. CIA Director WILLIAM BURNS, DNI AVRIL HAINES and others will testify before the Intelligence Committee at 9:30 a.m. CFPB Director ROHIT CHOPRA will testify before the Financial Services Committee at 10 a.m.
PLAYBOOK READS
DISTURBING STAT OF THE DAY — In a new POLITICO/Morning Consult poll, 35% of voters — including three in five Republicans — say the 2020 election should definitely or probably be overturned.
While the vast majority of Democrats (86%) and a majority (51%) of independents say the election was free and fair, just 26% of Republicans agree — the latest evidence of how deep DONALD TRUMP’s lies about the election have permeated the GOP. Toplines … Crosstabs
CONGRESS
SINEMATOGRAPHY — Hank Stephenson writes for POLITICO Magazine that “the details of Sinema’s transformation lay in her time in the [Arizona] state legislature, where she learned to distance herself from progressives and made alliances with Republicans that she still leans on today.”
THE MAINSTREAMING OF POLITICAL VIOLENCE — A California man was arrested last week for allegedly making a death threat against Rep. MATT GAETZ (R-Fla.) after the Jan. 6 insurrection, report Josh Gerstein, Marc Caputo and Kyle Cheney. EUGENE HUELSMAN was released on a $20,000 bond. The indictment
FLAKE, MCCAIN CONFIRMED — The Senate on Tuesday evening voted to confirm a handful of Biden ambassador nominations — including former Arizona Sen. JEFF FLAKE to be ambassador to Turkey and CINDY MCCAIN to be the ambassador to the U.N. Agencies for Food and Agriculture. More details from AP
ALL POLITICS
GOP RALLIES BEHIND HERSCHEL — Senate Minority Leader MITCH MCCONNELL is officially endorsing former NFL star HERSCHEL WALKER in the Georgia Republican Senate primary, joining the other Republican leader, Trump, in doing so. Alex Isenstadt has the story this morning. The nod comes after deep concern among establishment Republicans that Walker’s past — including accusations of domestic violence — would undermine the party’s chances in one of its top takeover targets. McConnell, according to a CNN report in August, was actively looking for other options to run instead. “But those concerns have abated in recent days, with Republican officials saying they have been impressed with Walker’s fundraising abilities and the campaign team he has put together,” Isenstadt writes.
VA. GOV RACE
BIDEN HITS THE TRAIL — The president joined TERRY MCAULIFFE in Arlington on Tuesday night, blasting GLENN YOUNGKIN as “an acolyte of Donald Trump” and warning that extremism “can come in a smile and a fleece vest.” Biden stayed away from focusing on his agenda, and spent more time bashing Trump and Youngkin. More from the Richmond Times-Dispatch
BEYOND THE BELTWAY
CULTURE WARS IN TEXAS — Gov. GREG ABBOTT signed a bill Monday that “requires student athletes who compete in interscholastic competition to play on sports teams that correspond with the sex listed on their birth certificate at or near their time of birth.” More from Texas Tribune’s Allyson Waller
JAN. 6 AND ITS AFTERMATH
EASTMAN IN THE HOT SEAT — The Jan. 6 select committee is planning to subpoena JOHN EASTMAN, the conservative lawyer who advised Trump on how to subvert the 2020 election, if he doesn’t cooperate voluntarily, WaPo’s Jackie Alemany reports.
NEW THIS MORNING — The committee “is temporarily backing off a request for about 50 pages of Trump White House records,” Kyle Cheney writes. Sources tell Kyle that committee members “want to avoid a complicated and possibly protracted negotiation over documents related to the Capitol attack that might be legitimately shielded by executive privilege, attorney-client privilege or other reasons,” and are looking to defer the requests to a later date.
PLAYBOOKERS
Huma Abedin writes in her new book that she was sexually assaulted by a U.S. senator.
Kyrsten Sinema’s sartorial choices made waves yet again — this time over the denim vest she donned while presiding over the Senate. Technically, wearing denim in the chamber is a no-no, but Burgess Everett says he’s seen that and much more casual attire there.
Paul Manafort sold his 10-bedroom house in the Hamptons for a little above the $10 million asking price.
TV TONIGHT — CNN’s Dana Bash will host a new “Special Report” airing at 9 p.m. about the fight for voting rights and Donald Trump’s big lie about the 2020 election
THE RETURN TO NORMALCY — The Diplomatic Sauna Society, the famed club hosted by the Finnish Embassy, will reconvene in person this week for the first time since the pandemic started. We’re told the society will adhere to strict Covid measures and keep its guest list short and exclusive.
SPOTTED: Mark Zuckerberg and Priscilla Chan at Palo Alto Creamery on Monday night in downtown Palo Alto.
OUT AND ABOUT — On Tuesday night Roy Pfautch — ordained minister and longtime donor, lobbyist and public affairs consultant — hosted one of the biggest indoor D.C. parties since the pandemic began. Several hundred guests, including nearly thirty senators and more than two dozen House members, gathered at the Renwick Gallery to honor Japanese Ambassador Koji Tomita and Noriko Tomita. (All guests at the GOP-heavy event were required to submit proof of vaccination.) It is rare these days to see the likes of Sens. Mazie Hirono (D-Hawaii) and Tom Cotton (R-Ark.) socialize together, but it is almost surreal to see them in the same room standing and singing “God Bless America.” SPOTTED: Sens. John Barrasso (R-Wyo.), Roy Blunt (R-Mo.), Mike Braun (R-Ind.), Shelley Moore Capito (R-W.Va.), Bill Cassidy (R-La.), Susan Collins (R-Maine), Chris Coons (D-Del.), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Bill Hagerty (R-Tenn.), Mike Lee (R-Utah), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Chris Murphy (D-Conn.), Jack Reed (D-R.I.), Jim Risch (R-Idaho), Ben Sasse (R-Neb.), Rick Scott (R-Fla.), Tina Smith (D-Minn.), Debbie Stabenow (D-Mich.), Thom Tillis (R-N.C.), Pat Toomey (R-Pa.), Roger Wicker (R-Miss.) and Todd Young (R-Ind.), House Minority Leader Kevin McCarthy, Reps. Cori Bush (D-Mo.), Debbie Dingell (D-Mich.), French Hill (R-Ark.), Darrell Issa (R-Calif.), Tom Malinowski (D-N.J.), Brad Schneider (D-Ill.) and Ann Wagner (R-Mo.), Rahm Emanuel, Pamela Brown, Adam Wright, Elaine Chao, John Negroponte, Bret Baier, Kevin Chaffee, Roxanne Roberts, Tom McDevitt and many more.
— The U.S. Travel Association hosted a reception Tuesday night at the Mellon Auditorium following the group’s daylong Future of Travel Mobility summit. SPOTTED: Sens. Roy Blunt (R-Mo.) and Amy Klobuchar (D-Minn.), Reps. Debbie Wasserman Schultz (D-Fla.), Carol Miller (R-W.Va.), William Timmons (R-S.C.), Ed Perlmutter (D-Colo.), Raja Krishnamoorthi (D-Ill.), Peter Meijer (R-Mich.) and Jimmy Panetta (D-Calif.), Roger Dow, Tori Emerson Barnes and Heather Wingate.
— At the Library of Congress Lavine/Ken Burns Prize for Film virtual awards ceremony Tuesday night, lawmakers shared their favorite documentaries, and “Gradually, Then Suddenly: The Bankruptcy Of Detroit” by filmmakers Sam Katz and James McGovern took home the $200,000 top prize for historical documentary filmmaking. SPOTTED: Ken Burns, Librarian of Congress Carla Hayden, Jeannie and Jonathan Lavine, Senate Majority Leader Chuck Schumer, Sens. Roy Blunt (R-Mo.), Cory Booker (D-N.J.), Lisa Murkowski (R-Alaska), Jeanne Shaheen (D-N.H.), Roger Wicker (R-Miss.), Elizabeth Warren (D-Mass.), Gary Peters (D-Mich.) and Alex Padilla (D-Calif.), and Reps. Rodney Davis (R-Ill.), Tom Cole (R-Okla.), Hank Johnson (D-Ga.), Jake Auchincloss (D-Mass.) and Ritchie Torres (D-N.Y.).
FIRST IN PLAYBOOK — FWIW and Arena have teamed up and launched a weekly Substack that gives tips to win a political campaign and highlights the progressive players who actually push the buttons. It’s called Campaigner, and the first newsletter comes out today.
STAFFING UP — Jennifer Song is now an adviser and counsel to the director at the CFPB. She previously was policy director at the Democratic Attorneys General Association.
TRANSITIONS — Lucy Hynes is now senior counsel at the Senate Agriculture Committee, handling CFTC issues for Chair Debbie Stabenow (D-Mich.). She most recently was counsel to CFTC Commissioner Dan Berkovitz. … Tara Hupman is now chief counsel at the House Natural Resources Committee. She previously was senior counsel at the House Transportation & Infrastructure Committee, and is a Senate Small Business Committee alum. … Kris Fetterman is joining Seven Letter as a director. He most recently was at Pivotal Ventures, and is a Rosa DeLauro alum. …
… Wes Fisher is now senior director of government affairs at the Pet Industry Joint Advisory Council. He previously was director of federal and state affairs at the National Automatic Merchandising Association. … Katherine Duveneck is now director of policy at Compass Point Research & Trading. She previously was a legislative assistant for Sen. Ben Sasse (R-Neb.). … Nicole Tardif is joining the Lukens Company as director of client services. She previously was director of comms at Stand Together/Americans for Prosperity Action.
TRUMP ALUMNI — Blake Deeley is now legislative director for Rep. Dan Meuser (R-Pa.). He most recently was special assistant to the president for domestic policy in the Trump White House.
HAPPY BIRTHDAY: Rep. Lori Trahan (D-Mass.) … Matt Drudge … Vanity Fair’s Michael Calderone … Richard Clarke of Good Harbor … Stuart Roy of Strategic Action Public Affairs … Phil Anderson of Navigators Global … Jon Doggett of the National Corn Growers Association … Chris Vlasto … Mike McCurry of Public Strategies Washington and Wesley Theological Seminary … Clark Reid of Commerce … Judy Smith of Smith & Co. … Zoe Chace of “This American Life” … Lora Ries of the Heritage Foundation … Lori Otto Punke … Christian Stellakis of the Herald Group … Sara Latham … Red Balloon Security’s Andrew Taub … Kenneth Katzman … Christina Mountz Donnelly … Emily Vander Weele of Weber Shandwick ... George Landrith … Tara Hupman of House Natural Resources … Leslie Churchwell of Rep. Steven Palazzo’s (R-Miss.) office … Jack Kalavritinos of JK Strategies … Nina Easton
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