Wednesday, July 21, 2021

‘Reckless tax and spending spree’: The GOP battle plan takes shape

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POLITICO Playbook

By Rachael Bade, Ryan Lizza, Tara Palmeri and Eugene Daniels

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DRIVING THE DAY

ABOUT LAST NIGHT — Senate Majority Leader CHUCK SCHUMER wanted today to be the GOP's moment to put up or shut up on the bipartisan infrastructure deal. But based on our conversations with sources involved Tuesday night, it probably won't be. Republicans will vote against a motion to proceed to the BIF if the text isn't done by the time of the vote. But members of the bipartisan group are optimistic that if the BIF is within striking distance — Schumer and President JOE BIDEN will have to give the deal a few more days to gel.

On Tuesday night, the bipartisan group met over tacos and wine from Surfside restaurant to hammer out the final sticking points. They think the pay-fors are done and that final text will be ready to go by Monday.

Sen. MITT ROMNEY (R-Utah) emerged from the meeting and said , "I think it may well be done tomorrow. … It will be a long, long time" — that qualifies as days in this context — "before we actually have a full bill of text, but we may have all the issues resolved by tomorrow." And Sen. JON TESTER (D-Mont.) told the Hill pool: "I really believe tomorrow, it will be done. We are so close."

Here's the upshot: Moderate Senate Democrats like Sen. KYRSTEN SINEMA (Ariz.) have been working on this deal for months. Given how close they are, it's unlikely they'd walk away just because a procedural vote on an artificial deadline fails. Schumer needs people like Sinema to move on from the BIF to the massive Democrats-only reconciliation bill.

RICCHETTI SPEAKS — One of the least seen and heard Biden advisers finally went on the record. STEVE RICCHETTI, who was passed over for the chief of staff role last November, has been the point man on the BIF, famously showing up in profiles recently pouring wine for senators during a late night of infrastructure negotiations. But unlike fellow top Biden advisers ANITA DUNN and RON KLAIN, Ricchetti almost never pops up on TV or Twitter, or appears on the record. On Tuesday, however, some eagle-eyed reporters spotted the mysterious Biden whisperer emerging from a BIF negotiating room and Ricchetti could not avoid their recorders. So after months of putting together this fragile deal — and on a day he was dispatched to the Capitol by the president of the United States to help save the agreement — what did this top White House official report to the media?

"I'm going to the bathroom," Ricchetti said.

Pressed by reporters, he added, "We're just gonna keep working."

SPEAKING OF RICCHETTI: "Lobbyist Jeff Ricchetti, Brother of Senior Biden Aide, Sees Bump in Fees, Clients," by WSJ's Julie Bykowicz

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GOP'S RECONCILIATION STRATEGY TAKES SHAPE — Over the weekend, aides to Senate Minority Leader MITCH MCCONNELL, Senate GOP Conference Chair JOHN BARRASSO (Wyo.) and NRSC Chair RICK SCOTT (Fla.) huddled to devise a counterattack against Democrats' $3.5 trillion reconciliation behemoth.

Expect to hear one phrase in particular from Republicans over and over this summer: "reckless tax and spending spree."

That's the top line of the messaging strategy congressional Republicans are rolling out this week. Other buzzwords the GOP will hammer home as Schumer and Speaker NANCY PELOSI whip votes on the package in the coming days: inflation. Out-of-control spending. Debt. Low wages.

There's a realization in GOP circles that they're powerless to stop Democrats from passing the legislation assuming they stick together. But the opposition is determined to make it as painful as possible, especially for vulnerable Democrats up for reelection in 2022. The aim is to directly link the Democrats-only legislation to the struggles of everyday Americans, especially rapidly rising prices.

Senate Republicans unveiled the strategy to GOP leadership offices Monday, including in a presentation for House Republicans, who approved of the top lines. On Tuesday, Barrasso shared the bullet points with the rest of the Senate GOP Conference.

"The Democrats seem to be determined to bankrupt America," Barrasso said afterward, invoking the "reckless tax and spending spree." "Democrats say, 'Well only some rich people and some businesses will end up paying for this.' The American people will not be deceived. They can see through this. They know they will be left holding the bill."

It's an odd throwback to traditional Republican vs. Democrats battle lines before former President DONALD TRUMP ditched the GOP's small-government orthodoxy. Trump oversaw some of the biggest increases in national spending in years, but they're a fraction of the total Democrats are tossing around these days.

Inflation is at its highest level in a dozen years, and polling shows that rising prices are a major concern among voters. Plus, Democrats will have to raise the already $28 trillion debt ceiling within the next few months, feeding into GOP talking points.

Other parts of the messaging plan: Republicans are also preparing to pounce on several provisions they're expecting to be included in the reconciliation package, including a repeal of the state and local tax deduction that will benefit higher-income owners in cities, electric vehicle subsidies for pricey cars, and climate and immigration provisions.

During the Senate lunch, Barrasso cited internal polling from the Senate Opportunity Fund showing that nearly two-thirds of voters agreed with the statement: "Families are already paying for Democrats' inflation from the gas pump to the grocery store. Now they want to drown the country in another tax and spending spree." Republicans think the numbers will only continue to move in their favor as the summer messaging wars heat up.

WHAT SCHUMER IS READING — While he navigates the tricky dynamics of BIF and reconciliation, Schumer today will be discussing and circulating to colleagues a rosy economic report from Moody's chief economist MARK ZANDI, who has long been one of the Dems' favorite wonks. We're told Zandi analyzed the twin legislative packages and concluded:

"Greater investments in public infrastructure and social programs will lift productivity and labor force growth, and the attention on climate change will help forestall its increasingly corrosive economic effects. Moreover, the policies being considered would direct the benefits of the stronger growth to lower-income Americans and address the long-running skewing of the income and wealth distribution. Passage of legislation is far from certain but failing to pass legislation would certainly diminish the economy's prospects."

On fears of inflation, he adds that "[t]his concern cannot be dismissed, but it is likely misplaced." Expect to hear a lot about the Zandi analysis today from Democrats.

Other notable infrastructure headlines: "Inside Schumer's infrastructure gamble," by Burgess Everett and Marianne LeVine … "Senate Republicans poised to block vote on infrastructure bill Wednesday but negotiations will continue," CNN … "Big infrastructure bill in peril; GOP threatens filibuster," AP

Good Wednesday morning, and thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri.

I SPY — London Playbook hears that following the death of British teenager HARRY DUNN in a traffic collision in 2019, and the subsequent outing of the fleeing driver ANNE SACOOLAS as a high-ranking CIA agent by the British press, the senior journalists who exposed Sacoolas have mysteriously not been invited to tonight's big bash: the Independence Day party at the U.S. ambassador's residence at Winfield House. Was it something they said?

SURVEY SAYS — Some interesting nuggets from our latest POLITICO/Morning Consult weekly poll …

— Barely over a third of respondents, 35%, said the child tax credit should "definitely" or "probably" be made permanent. Over half, 52%, said it probably or definitely should not. The partisan breakdown: Fifty-five percent of Democrats say make it permanent vs. just 16% of Republicans and 29% of independents.

— Biden is above water with a 52% to 45% favorable to unfavorable rating. VP KAMALA HARRIS is slightly below at 45% favorable, 47% unfavorable.

— Even with Trump out of office, voters profess to be very engaged in politics. More than seven in 10 said they are "somewhat," "very" or "extremely" enthusiastic about voting in the midterms next year. The enthusiasm spans both parties equally. Toplines Crosstabs

 

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BIDEN'S WEDNESDAY:

— 10:30 a.m.: The president will receive the President's Daily Brief.

— 2:25 p.m.: Biden will depart the White House en route to Hebron, Ky., where he is scheduled to arrive at 4:10 p.m.

— 5:40 p.m.: Biden will visit the IBEW/NECA Electrical Training Center in Cincinnati, where he will discuss his Build Back Better agenda.

— 8 p.m.: The president will participate in a CNN town hall at Mount St. Joseph University in Cincinnati.

— 10 p.m.: Biden will depart from Hebron to return to the White House, where he is scheduled to arrive at 11:35 p.m.

Press secretary JEN PSAKI will gaggle aboard Air Force One en route to Cincinnati.

First lady JILL BIDEN will travel to Anchorage, Alaska, where she will tour Alaska Native Medical Center and promote vaccines. At 3:30 p.m. AKDT (7:30 p.m. EDT), she will depart for Tokyo for the 2021 Summer Olympics.

HARRIS' WEDNESDAY: The VP will meet with poll workers and other election officials at 2:45 p.m. in the VP's Ceremonial Office.

THE SENATE will meet at 10:30 a.m., with votes on the nominations of BONNIE JENKINS as undersecretary of State for arms control and international security and JENNIFER ABRUZZO as NLRB general counsel throughout the day. The chamber will vote on cloture on the motion to proceed to the INVEST in America Act in the afternoon. Agriculture Secretary TOM VILSACK will testify before the Judiciary Committee about immigrant farmworkers at 10 a.m.

THE HOUSE will meet at 10 a.m. and at noon take up the PFAS Action Act of 2021, with first and last votes expected between 2 and 3 p.m.

 

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

 
 
PLAYBOOK READS

President Joe Biden speaks during a meeting with his Cabinet in the Cabinet Room at the White House in Washington, Tuesday, July 20, 2021.

PHOTO OF THE DAY: President Joe Biden and VP Kamala Harris lead a Cabinet meeting at the White House on Tuesday afternoon. | Susan Walsh/AP Photo

WHITE HOUSE

A BIG WIN FOR THE LEFT — "Biden Names Tech Foe Jonathan Kanter as DOJ Antitrust Chief," by Bloomberg Law's Justin Sink

HEAD-SCRATCHER — CBS posted a story Tuesday night reporting that Harris has been in touch with Republican senators about voting rights legislation, which the VP has been tasked with handling for Biden. "I have spoken to Republican senators — both elected Republicans and Republican leaders," Harris told the outlet. "I've talked with [Sen. LISA] MURKOWSKI about this issue," Harris said.

Or not. The next passage of the piece was this: "Harris' office later clarified that the two had discussed infrastructure, not voting rights. A spokesperson for Murkowski did not respond to a request for comment. S. 1 is not a bill that Murkowski favors — she has previously called the For the People Act a 'partisan, federal takeover of the election system.'" OK then.

CONGRESS

FIRST IN PLAYBOOK: SCOTT AND MCCARTHY LEAD CUBA LETTER — Rick Scott and House Minority Leader KEVIN MCCARTHY are leading 143 congressional Republicans in a letter to member nations of the Organization of American States and EU as well as Secretary of State ANTONY BLINKEN regarding the unrest in Cuba. The missive requests that member states and the U.S. hold the regime accountable by forming a criminal tribunal for human rights abuses, end financial support, coordinate humanitarian assistance and do everything in their power to reconnect Cubans with internet access.

This is an issue that has divided the Democratic Party in elections and will put the spotlight on Biden over how he addresses a matter of huge concern especially to Florida Latinos. Read the letter here

COVID-19 ON CAPITOL HILL — "'It's a nightmare': Covid Delta variant rocks a recovering Capitol complex," by Sarah Ferris and Katherine Tully-McManus: "House Minority Leader Kevin McCarthy's trip to Israel got postponed. Nearly half of House members are masked on the floor again. One Senate Democrat even floated a 'proof of vaccination' card to enter the Capitol.

"As Covid infections have crept back onto the Hill, they've shattered the sense of calm that had just begun to settle across the complex after the deadly pandemic and insurrection. After a weekslong trudge toward normalcy, fears are now spiking over the highly contagious Delta variant, which the Capitol physician confirmed Tuesday has been reported in Capitol office buildings. Several fully vaccinated individuals on the Hill have tested positive for the virus — including the first known member of Congress since January — spurring a heightened sense of unease for the thousands of people who traverse the Capitol complex each day."

PELOSI PREVAILS — "An appeals court tosses a G.O.P. lawsuit against Pelosi over House proxy voting," NYT

NO DICE — "3 GOP House members lose appeals over $500 mask fines," by AP's Meg Kinnard: "On Tuesday, the U.S. House Ethics Committee released statements noting that U.S. Reps. MARJORIE TAYLOR GREENE of Georgia, THOMAS MASSIE of Kentucky and RALPH NORMAN of South Carolina had failed in their appeals of $500 fines issued in May."

MTG WATCH — When asked at an event whether she was vaccinated, Greene said the question was a violation of her HIPAA rights. The clip

ROUND TWO — "Fauci blasts Rand Paul's Wuhan lab funding claim: 'You do not know what you're talking about,'" NBC: "Sen. RAND PAUL, R-Ky., and Dr. ANTHONY FAUCI, one of the government's top public health experts, got into a heated exchange at a Senate hearing Tuesday after Paul accused Fauci of lying to Congress about the role the National Institutes of Health played in funding research in Wuhan, China. 'Senator Paul, you do not know what you're talking about, quite frankly, and I want to say that officially,' Fauci said. 'You do not know what you're talking about.'"

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JAN. 6 AND ITS AFTERMATH

UNDER REVIEW — "Pentagon watchdog to review 'nuclear football' safety procedures after January 6 incident," by CNN's Barbara Starr and Ellie Kaufman: "The Department of Defense inspector general is launching a review of the Pentagon's and White House's ability to keep the 'nuclear football' secure during a crisis, following an incident on January 6 when rioters came within 100 feet of the backup 'football.'

"The inspector general will evaluate the policies and procedures around the Presidential Emergency Satchel, also known as the 'nuclear football,' in the event that it is 'lost, stolen, or compromised,' according to an announcement from the DoD IG's office."

BENNIE THOMPSON LATEST — "Capitol attack committee chair vows to investigate Trump: 'Nothing is off limits,'" by The Guardian's Hugo Lowell

— @kyledcheney: "Rep. Bennie Thompson has withdrawn from his lawsuit accusing Trump of conspiring with the Proud Boys to overturn the 2020 election. He says his role chairing the select committee investigating the causes of 1/6 could present 'the appearance of a conflict.'"

TRUMP CARDS

MEET AND GREET — "Trump: Liz Cheney opponents to meet with him pre-endorsement," by AP's Mead Gruver: "Trump will meet with them in Bedminster, New Jersey, home of the Trump National Golf Club Bedminster, where he has moved for the summer. He didn't specify who would be there.

"Cheney has 'some very interesting candidates running against her' but the field of opponents should eventually be narrowed down to just one, Trump said in the statement. Quite a few candidates who don't win Trump's endorsement or are otherwise disfavored would need to drop out for a single candidate to oppose Cheney in the 2022 GOP primary."

IN HOT WATER — "Trump adviser Tom Barrack arrested on foreign-agent charges," by Josh Gerstein: "TOM BARRACK, 74, is accused of failing to register as a foreign agent, conspiracy, obstruction of justice and four counts of making false statements to the FBI. Prosecutors say Barrack used his insider access to White House officials that he gained through roles like his position as chair of Trump's inaugural committee to give the UAE 'non-public information about the views and reactions of senior U.S. government officials following a White House meeting between senior U.S. officials and senior UAE officials.'"

 

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PLAYBOOKERS

BETTING ON INFRASTRUCTURE: Guests at a dinner party hosted by the Chamber of Commerce's Suzanne Clark and The Hill's Steve Clemons played a guessing game Tuesday night on the odds that the bipartisan infrastructure bill actually passes in the coming week. One lawmaker said there was a 51% chance it passes, another said 70%. It might sound like cocktail fodder, if not for the wattage of power and influence at the dinner party at Cafe Milano. SPOTTED: Sens. Shelley Moore Capito (R-W.Va.), John Barrasso (R-Wyo.) and Tim Scott (R-S.C.), Reps. Josh Gottheimer (D-N.J.) and Debbie Dingell (D-Mich.), Charles Capito, Tom Fanning, Ed Gillespie, Jeff Knittle, Chip Paucek, Steve Lombardo, Sudip Parikh, Karan Bhatia, Charles Dent, Daniel Poneman, Jane Adams, Anthea Hartig, Courtney McBride, James Astill, Jamie Smith, Betsy Woodruff Swan and Jonathan Swan, Molly Ball, Robb Harleston and Neil Irwin.

SPOTTED on the U.S. Chamber's rooftop overlooking the White House on Tuesday evening for a reception hosted by Clark for Washington policy leaders/heads of D.C. offices from major U.S. companies: Jane Adams, Danielle Burr, Susan Fox, Brian Huseman and Mark Isakowitz. (Clark must be tired today: This was separate from the dinner party.)

SPOTTED: Mike Pompeo and Steven Mnuchin having dinner together at Cafe Milano on Tuesday night. … Reps. Hakeem Jeffries (D-N.Y.), Sara Jacobs (D-Calif.), Marilyn Strickland (D-Wash.), Carolyn Bourdeaux (D-Ga.), Troy Carter (D-La.), Melanie Stansbury (D-N.M.), Kathy Manning (D-N.C.) and Jake Auchincloss (D-Mass.) at Charlie Palmer Steakhouse on Tuesday night.

MAD SKILLS — @RepCheri Bustos: "I might not have @PressSec's arm, but I caught a foul ball tonight! Glad I brought my glove to the game - thanks for a great evening @Nationals!" With pic

FIRST IN PLAYBOOK — Jeffrey Clark, Jenin Younes and Sheng Li have joined the New Civil Liberties Alliance. Clark will be chief of litigation and director of strategy and is the former assistant A.G. Younes will be litigation counsel and previously was an appellate public defender in New York City. Li will be litigation counsel and previously was counselor to the administrator of wage and hour at the Labor Department.

TRANSITIONS — Rich Luchette is joining Precision Strategies as a comms principal. He most recently was comms director for Rep. David Cicilline (D-R.I.). … Kelly Montgomery is now press secretary for Rep. Dan Kildee (D-Mich.). She previously was an account manager at Subject Matter. …

… Brian Dutoi is now comms branch chief in CBP's Trade Transformation Office. He previously was director of executive support at USDA's Foreign Agricultural Service. … Joel Wiginton is now a principal for the Raben Group's government affairs and policy counsel practice. He is currently a fellow and supervising attorney at the Georgetown University Law Center, and is a Clinton White House alum.

WELCOME TO THE WORLD — Mike Burns, deputy assistant secretary for public affairs at HUD, and Lauren Burns, director of sales operations at ReliaQuest, welcomed Owen Michael Burns on Tuesday. He joins big brother Jack and big sister Madeline. Pic

— Haley Draznin, reporter/producer at financial media digital video platform Real Vision, founder and producer of HayNow Media and a CNN alum, and Jason Leibowitz, CEO of LeboBTC Cryptocurrency Ledger Group, welcomed Brody Jack Leibowitz on Friday. PicAnother pic

HAPPY BIRTHDAY: House Majority Whip Jim Clyburn (D-S.C.) … Senate GOP Conference Chair John Barrasso (R-Wyo.) … Rep. Cori Bush (D-Mo.) … Fox News' Peter DoocyMick Mulvaney … CNN's Mark PrestonDavid Stacy … Google's Ali-Jae Henke … SoftBank's Christin Tinsworth BakerSteve LerchNancy LeaMond of AARP … Samantha Summers of Whirlpool … Jennifer W. Siciliano of Inova Health System … Ibex Partners' Michael SessumsTrita ParsiDave Noble … Edelman's Athena JohnsonLaurie CiprianoKatherine Schneider ... Jahan WilcoxAmanda Carey ElliottJen BluesteinGreg Richardson ... retired Gen. Dick Tubb ... Wendy Wilkinson ... Meaghan Wolff … Government Publishing Office Director Hugh HalpernRoshan Patel of the Democratic Lieutenant Governors Association … Garrett Ventry … RNC's Brian ParnitzkeOtto HeckBob Shrum … former Reps. Phil Roe (R-Tenn.), Jimmy Duncan (R-Tenn.), Ed Towns (D-N.Y.), John Salazar (D-Colo.) and Bobby Bright (D-Ala.) … John Negroponte … former Connecticut Gov. Dan Malloy … Amazon's Amber Talley

Send Playbookers tips to playbook@politico.com. Playbook couldn't happen without our editor Mike Zapler, deputy editor Zack Stanton and producers Allie Bice, Eli Okun and Garrett Ross.

 

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