| | | | |  | | By Eugene Daniels and Ryan Lizza | | | With help from Eli Okun and Garrett Ross
| 
As President Joe Biden visits with Israeli leaders in the Middle East, back at his actual home, the news cycle is decidedly less rosy. | Evan Vucci/AP Photo | | | | |  | DRIVING THE DAY | | Israeli leaders greeted President JOE BIDEN "with a rapturous embrace, as if to prove that their love affair with the former president would not stand in the way of a close relationship with the new president," NYT's Peter Baker, Patrick Kingsley and Isabel Kershner write from Jerusalem. Israeli President ISAAC HERZOG to Biden (or, as he called him, "our brother Joseph"): "You are truly amongst family." It was, Biden told an interviewer, "like going home." Meanwhile, back at his actual home, the news cycle is decidedly less rosy for Biden. INFLATION hit a 41-year high on Tuesday, as the consumer price index accelerated to 9.1% in June. More from WSJ That, in turn, affects what might be Biden's last, best shot at a deal on … RECONCILIATION. Sen. JOE MANCHIN (D-W.Va.) said the new numbers make him "more cautious than I've ever been" in reconciliation talks, he told reporters. "Everything needs to be scrubbed, anything that can be inflationary." AP's Alan Fram: "It was unclear what impact Manchin's comments would have on his closed-door talks with Schumer, which have shown progress lately. But they suggested he believed the day's inflation report strengthened his leverage in that bargaining and, beyond that, in winning enough Democratic votes to push any agreement through the tightly divided Congress." Which brings us to an emerging source of anxiety for Dems in negotiations … TAXES. Democrats have long campaigned on raising tax rates on the wealthiest Americans and large corporations — and Manchin himself wants to use reconciliation to revisit the issue in the context of deficit reduction. But now, Dems are agonizing over the potential political pitfalls that come with raising taxes in an election year,as Burgess Everett and Sarah Ferris writes this morning. — The policy considerations: "There's relatively broad agreement on using any party-line bill to increase taxes on some high earning Americans who run so-called 'pass through' businesses to pay for Medicare solvency. But Democrats are undecided on including a proposed surtax on people making more than $10 million and an increase in minimum taxes on large corporations. And Manchin says he won't support any tax increases that aggravate inflation. "Democrats are aiming to raise $1 trillion to pay for their long-sought legislation; Medicare taxes and prescription drug reform get them roughly halfway there. They're warmer to a 15 percent corporate minimum tax than on surtaxes on individual high earners, according to a person briefed on the discussions, but no final decision has been made. Each would raise roughly $200 billion. The party is also considering other ways of raising revenue, including a new global tax deal and increased IRS enforcement, which is highly favored by moderates." — The political considerations: "Though tax increases on high-income Americans and big companies poll well, Republicans are eager to disregard that nuance and cast Democrats as broadly raising taxes amid inflation as well as a possible recession. The GOP plans to hammer any tax increases the Democrats include in their bill ahead of November's midterms." Sen. JON TESTER (D-Mont.): "I don't think raising taxes is a winner anywhere, OK?" Rep. DAN KILDEE (D-Mich.): "If we are explaining what we're talking about — people who are at the very top of the economy paying their fair share — that's not a hard argument." Rep. SUSIE LEE (D-Nev.): "I don't think tax increases would be popular." Rep. TOM MALINOWSKI (D-N.J.): "I've never met a Trump supporter in my district who believes that Amazon should pay no taxes. The idea of making Amazon pay taxes while lowering the cost of prescription drugs takes it from like 97 to like 99 percent [approval]." But even if the politics of an election-year tax hike and record-setting inflation are potentially toxic for Democrats, Biden does see one thing on the political horizon working in his favor … TRUMP 2024: In an Israeli TV interview, Biden was asked whether he thought he would face DONALD TRUMP for a rematch in 2024. "I'm not predicting [I will face him]," Biden told a reporter from Channel 12, per Bloomberg's Jordan Fabian and Jennifer Jacobs. "But I would not be disappointed." INSIDE TRUMP'S 2024 DECISION — As Trump tries to land on the best time to announce his 2024 candidacy, he is convening quiet confabs with some of his wealthiest and highest-profile supporters, Alex Isenstadt scoops. "The gatherings have taken place in Houston, Nashville and, last Friday evening, in Las Vegas, where billionaire casino mogul and longtime Trump friend PHIL RUFFIN implored the ex-president to launch another run for the White House soon. The consensus has been that Trump should run again — the only question being when he should announce, with most echoing Ruffin's view but others saying Trump would be better served by waiting until after the midterm elections." Behind the scenes: "The informal, off-the-record dinners are not designed to focus on the 2024 race and typically center on other issues — during one, South Carolina Sen. LINDSEY GRAHAM got into a contentious back-and-forth with country music star JOHN RICH over coronavirus vaccines, and the Las Vegas group talked about the Ultimate Fighting Championship." Good Thursday morning. Happy Bastille Day! Thanks for reading Playbook. Drop us a line: Rachael Bade , Eugene Daniels, Ryan Lizza.
| | | | A message from PhRMA: Inflation is causing pain for people across the country. As policymakers search for ways to help provide relief, some are erroneously tying inflation to prescription medicines. To make matters worse, this false premise is being used to build support for harmful policies.
It's important to make medicines affordable for patients, but let's get a few facts straight – starting with the fact that prescription drugs are not fueling inflation. | | | WHAT THE RIGHT IS READING — "Biden's Hiring Policy: No Business Experience Needed," by the WSJ Editorial Board: "Some familiarity with business is especially important given that President Biden and Vice President KAMALA HARRIS have spent their lives in law or politics. But the authors [of a report released Wednesday] found that Biden economic officialdom is dominated by careers in law (20), politics and government (21), and academia or policy-making (12). The main business experience is in venture capital or investing (five)." 2024 WATCH — John Harris on Virginia Gov. GLENN YOUNGKIN: "The Republican who wants to end the Trump Era — without taking on Trump" A MEDIA MUST-READ — CNN's Brian Stelter: "Two newspapers owned by Gannett, one in Indiana and one in Ohio, have humanized the new American reality about abortion now that Roe v. Wade has been reversed. And in doing so, they have highlighted the inhumanity of some partisan punditry. "On July 1, the Indianapolis Star reported that a 10-year-old girl in Ohio was pregnant, and because 'the Buckeye state had outlawed any abortion after six weeks,' the girl was brought to Indiana for an abortion. The source was Dr. CAITLIN BERNARD, an obstetrician-gynecologist in Indianapolis, who said she had conferred with a child abuse doctor in Ohio. … "In recent days, after President Biden cited the news report and denounced Ohio's abortion ban, many conservative media outlets and Republican office-holders poured skepticism on the case, and some personalities flatly said they did not believe the 10-year-old existed. Rep. JIM JORDAN tweeted: 'Another lie. Anyone surprised?' "You know what's coming next. On Wednesday, the Columbus Dispatch reported that a man has been charged in the case.'" Much more at the link — The Columbus Dispatch: "Arrest made in rape of Ohio girl that led to Indiana abortion drawing international attention" … Indy Star: "Ohio man charged in rape of 10-year-old that led to Indiana abortion" … The original Indy Star report from July 1 — How Fox is covering it: Discussion of suspect GERSON FUENTES' immigration status was a topic of much discussion on Fox News on Wednesday evening. Representative headline: "Ohio 10-year-old's alleged rapist is Guatemalan illegal immigrant: ICE source"
| | | | A message from PhRMA:   What's fueling inflation? Not prescription drugs. The administration's own economic data proves it. | | | | | BIDEN'S THURSDAY (all times Eastern): The president has already participated this morning in a bilateral meeting with Israeli Prime Minister YAIR LAPID and participated in the first meeting of the I2U2 group with the leaders of Israel, India and the United Arab Emirates.
7 a.m.: Biden will participate in a news conference with Lapid.
9:45 a.m.: Biden will meet with Herzog.
10:20 a.m.: Biden will meet with former PM BENJAMIN NETANYAHU.
11:20 a.m.: The president will attend a reception hosted by Herzog, where Biden will receive the Israeli Presidential Medal of Honor.
12:45 p.m.: Biden will greet U.S. athletes and view the opening ceremonies of the Maccabiah Games.
HARRIS' THURSDAY:
8:30 a.m.: The VP will depart D.C. en route to Orlando, Fla.
11:30 a.m.: Harris will deliver remarks at the 70th Boule of Alpha Kappa Alpha Sorority, Incorporated.
1:50 p.m.: Harris will hold a roundtable with Florida legislative leaders to discuss reproductive rights with HHS Secretary XAVIER BECERRA.
4 p.m.: Harris will travel to Tampa, Fla.
5:05 p.m.: Harris will meet with service members representing United States Central Command, United States Special Operations Command and the 6th Air Refueling Wing, and at 5:55 p.m. will receive a CENTCOM and SOCOM briefing.
6:55 p.m.: The VP will tour the CENTCOM Joint Operations Center.
7:35 p.m.: Harris will depart Tampa to return to D.C.
THE HOUSE will meet at 10 a.m. Speaker NANCY PELOSI will hold her weekly news conference at 12:30 p.m.
THE SENATE is in. | | | | | | HAVE QUESTIONS ABOUT ROE BEING OVERTURNED? JOIN WOMEN RULE ON 7/21: Now that the Supreme Court has overturned Roe v. Wade , abortion policy is in the hands of the states and, ultimately, voters. Join POLITICO national political correspondent Elena Schneider for a Women Rule "ask me anything" conversation featuring a panel of reporters from our politics and health care teams who will answer your questions about how the court's decision could play out in different states, its impact on the midterms and what it means for reproductive rights in the U.S. going forward. SUBMIT YOUR QUESTIONS AND REGISTER HERE. | | | | | PHOTO OF THE DAY
|  Friends, family and mourners of the victims of the Highland Park, Illinois and Uvalde, Texas mass shooting rallied near the U.S. Capitol on Wednesday calling on lawmakers to enact stricter gun control legislation. | Kevin Dietsch/Getty Images | | | PLAYBOOK READS | | CONGRESS SENATE NEARS DEAL ON ELECTORAL COUNT ACT — Remember the Senate's bipartisan Electoral Count Act talks? Well, "senators involved in the months-long effort say they're getting close to a deal," Marianne LeVine reports this morning. Just don't credit the Jan. 6 committee for any breakthroughs: "Republican senators emphasized in interviews that the select panel's work had little influence on their separate negotiations." What about the timeline? "Even if the group can finalize language in the coming days — it held a pivotal meeting Wednesday evening — the timing for final passage of their bill is far from clear" as the chamber moves toward Dems' reconciliation package. PLAYBOOK METRO SECTION — @jamiedupree: "The House has voted to give the Mayor of Washington, D.C. the power to call up National Guard troops in the city. Currently, only the President can authorize the use of those forces. That was an issue on Jan. 6 when deployment of those troops was delayed for hours." THE TRUTH IS OUT THERE — "House votes to make it easier to report UFOs," by Bryan Bender and Lawrence Ukenye ALL POLITICS THE OUTLIER — "How one House Republican voted to impeach Trump and (maybe) kept his seat," by Olivia Beavers in Hanford, Calif.: "If Rep. DAVID VALADAO survives in November after crossing the former president — and that's a big if — he'll have perfected a rare recipe." 2022 WATCH — "Teachers union wants Democrats to fight back against Republicans' critical race theory attacks," by NBC's Jonathan Allen SURVEY SAYS — More findings from the first NYT/Siena College poll of the midterms cycle were reported on Wednesday. And there's a certain bipartisan thread: pessimism. "A majority of American voters across nearly all demographics and ideologies believe their system of government does not work, with 58 percent … saying that the world's oldest independent constitutional democracy needs major reforms or a complete overhaul," NYT's Reid Epstein writes. An interesting nugget: "The poll found that Fox News viewers were more optimistic than any other demographic about the country's ability to get on the right track over the next decade: Seventy-two percent were hopeful for such a scenario." — Related read: "Young Voters Are Fed Up With Their (Much) Older Leaders," by NYT's Maya King and Jonathan Weisman GEORGIA ON MY MIND — Here's an interesting dynamic to watch in the Peach State, via the Atlanta Journal-Constitution's Greg Bluestein: There could be a decent chunk of voters who back Democratic Sen. RAPHAEL WARNOCK and Republican Gov. BRIAN KEMP. "That dynamic is backed by public polling averages that indicate the governor is outperforming Walker by about 4 percentage points — and that Warnock is garnering more support than Abrams by roughly the same margin."
| | | | A message from PhRMA:   What's fueling inflation? Not prescription drugs. The administration's own economic data proves it. | | | JAN. 6 AND ITS AFTERMATH WHO TRUMP TRIED TO CALL — CNN's Ryan Nobles, Dana Bash, Annie Grayer and Zachary Cohen scooped some of the details about the witness whom Rep. LIZ CHENEY (R-Wyo.) said Trump recently tried to contact: A White House support staffer who "was not someone who routinely communicated" with him. "The call was made after former Trump White House aide CASSIDY HUTCHINSON testified publicly to the committee. The White House staffer was in a position to corroborate part of what Hutchinson had said under oath, according to the sources." THE PANEL-DOJ CONNECTION — The Jan. 6 select committee has "engaged" the Justice Department in its investigation of false pro-Trump presidential electors, panel Chair BENNIE THOMPSON (D-Miss.) told reporters on Wednesday. "He added that DOJ is particularly interested in the transcripts of the interviews the committee has conducted with some of the false electors themselves," Kyle Cheney and Nicholas Wu report. — More hearings in store? When asked whether the July 21 hearing that the committee has scheduled would be its final public presentation, Thompson said: "I'm hoping it is, but something could come up, just like the Hutchinson situation that warranted what we felt was an immediate hearing." (h/t NBC's Scott Wong) WHO'S WATCHING — WaPo's Travis Andrews, Roxanne Roberts and Jada Yuan have a fun story as the three reporters sat with the Jan. 6 hearing "superfans" for the latest installment on Tuesday. The locales: (1) "In Georgetown, with poodles," 85-year-old ELLEN CHARLES; (2) "At Howard, with student activists," 21-year-old CHANNING HILL: "'It's like watching "Dateline"!'"; (3) "In New York, with promotional buzz," 33-year-old documentarian ALEX HOLDER and his editor MARCOS AZEVEDO, who just released their "Unprecedented" docu-series on Discovery+. DOWN IN GEORGIA — "South Carolina U.S. Sen. Lindsey Graham urged a federal judge to kill a Fulton County subpoena seeking his testimony before the special grand jury examining potential criminal interference in Georgia's 2020 elections," the Atlanta Journal-Constitution's Tamar Hallerman reports. THE WHITE HOUSE JUST POSTED — "White House debates declaring abortion access a 'health emergency,'" by WaPo's Yasmeen Abutaleb and Ashley Parker POTUS ABROAD — "The one word Biden won't say in Israel," by Alexander Ward, Nahal Toosi and Jonathan Lemire: "Try as he might, the president can't escape the impact that Donald Trump had in the region." — But Biden did have some to say about Iran, per the AP : "'The only thing worse than the Iran that exists now is an Iran with nuclear weapons,' Biden said. Asked about using military force against Iran, Biden said, 'If that was the last resort, yes.'" BEYOND THE BELTWAY MONKEYPOX LATEST — "Nearly 800,000 doses of monkeypox vaccine may be in U.S. by end of July," by WaPo's Lena Sun and Laurie McGinley AMERICA AND THE WORLD COUP D'É—WHAT DID HE SAY? — "John Bolton said he planned foreign coups. The global outcry was swift," by WaPo's Adam Taylor and Ana Vanessa Herrero JUST POSTED — "WNBA's Griner heads back to Russian court after guilty plea," AP
| | | | INTRODUCING POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don't miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY. | | | | | | | PLAYBOOKERS | | A statue of Mary McLeod Bethune was unveiled in Statuary Hall at the Capitol. Ronny Jackson went public with a personal email Barack Obama sent him in 2020 criticizing him for questioning Joe Biden's cognitive health. OUT AND ABOUT — The French Embassy hosted a cocktail hour on Wednesday for a celebration ahead of Bastille Day at the residence of French Ambassador Philippe Étienne . Deputy Secretary of State Wendy Sherman delivered a keynote address, describing the long history of alliance between the U.S. and France, and noted how they similarly stand "united against [Vladimir] Putin's war of aggression" in Ukraine. Guests were treated to charcuterie and macarons, and a live band played in the garden around the corner from a replica of the Statue of Liberty symbolically wrapped in the Ukrainian flag. Pic … Another pic … SPOTTED: Rep. French Hill (R-Ark.), Bruce Stokes, D.C. Secretary of State Kimberly Bassett, Maryland Secretary of State John Wobensmith, Will Smith, Amanda Sloat, Julie Fisher, Alice Russo, Megan Beyer, Lyndon Boozer, Marie and Ed Royce, Bart Gordon, Jane Harman, Stuart Holliday and Christina Sevilla. — SPOTTED on Wednesday afternoon at the Foundation for Defense of Democracies, which hosted Michael Gordon on his new book "Degrade and Destroy: The Inside Story of the War Against the Islamic State, from Barack Obama to Donald Trump": Tom Bowman, Dan Lamothe, Tom Watkins, Wesley Morgan and Thom Shanker. The panel included Gordon, Michele Flournoy, retired Lt. Gen. Sean MacFarland and Brad Bowman. — The Friends of the Global Fight Against AIDS, Tuberculosis and Malaria hosted a congressional reception at Capitol View on Wednesday night, where Pelosi, Graham and Reps. Barbara Lee (D-Calif.), Kay Granger (R-Texas) and Michael McCaul (R-Texas) were honored, and former President George W. Bush and Bill Gates gave virtual remarks. SPOTTED: Rep. Jim Himes (D-Conn.), John Nkengasong, French Ambassador Philippe Étienne, Peter Sands, Loyce Pace, Jeff Sturchio, Martha Roby, Eric Goosby, Mark Dybul, Nicole Sexton, Maurine Murenga, Chris Collins, Mark Lagon, Shannon Kellman, Jirair Ratevosian, Nidhi Bouri and Liz Schrayer. FIRST IN PLAYBOOK — Sens. Rob Portman (R-Ohio) and Chris Murphy (D-Conn.) will face off in an Oxford-style debate Aug. 1. It's the second in a series hosted by the Bipartisan Policy Center, the Orrin G. Hatch Foundation and the Edward M. Kennedy Institute for the U.S. Senate; the first was last month between Sens. Bernie Sanders (I-Vt.) and Lindsey Graham (R-S.C.). — Alex Pfeiffer has launched the comms consulting firm Pfeiffer Public Affairs, which focuses on conservative media. He most recently spent four and a half years at Fox News' "Tucker Carlson Tonight," where he was investigative and editorial producer, and is a former White House correspondent at the Daily Caller. — Tim Starks is joining WaPo to author its Cybersecurity 202 newsletter. He most recently was a senior editor covering cybersecurity at CyberScoop, and is a POLITICO alum. TRANSITIONS — Katherine (Kitty) Close is now director of government relations at the Basic Education Coalition. She previously was foreign policy adviser for Rep. Lois Frankel (D-Fla.). … Matthew Brownlee is now director of federal affairs for NGVAmerica. He most recently was senior legislative assistant for Rep. Markwayne Mullin (R-Okla.). … Gordon Johndroe is joining American Airlines as managing director of comms. He most recently was VP of global media relations and public affairs at Boeing, and is a Bush White House, NSC, State Department and DHS alum. … … Retired Cmdr. Scott Suozzi is now director of military outreach at the U.S. Global Leadership Coalition. He previously was an adviser at the Gary Sinise Foundation and an associate dean at Johns Hopkins. … Sherman Greer is now head of U.S. state and local government relations at ServiceNow. He previously was associate VP for government relations, advancement and community affairs at Southwest Tennessee Community College. … Vanessa Valdez is now an associate at D&P Creative Strategies. She previously was a legislative correspondent in Sen. Jon Ossoff's (D-Ga.) office. HAPPY BIRTHDAY: National Retail Federation's Matthew Shay … Media Research Center's Brent Bozell … The Washington Free Beacon's Eliana Johnson … ABC's Devin Dwyer … The New Republic's Daniel Strauss … Raytheon's Mary Lee … James Davis … Rhonda Foxx … Ammon Simon … Mike Panetta of the Beekeeper Group … Meta's Nkechi Nneji … Axios' Caitlin Owens … Tigercomm's Mike Casey … Edda Collins Coleman of Cogent Strategies … POLITICO's Kenneth Steele and Mark Cavanagh … Chicago Sun-Times' Tina Sfondeles … Tony Hanagan of Senate Minority Leader Mitch McConnell's office … Jordan Sekulow ... Corey Solow … former Reps. Patrick Kennedy (D-R.I.) and Tom Latham (R-Iowa) … FBI's Sarah Ruane … LinkedIn's Dan Horowitz … Gail Ross … David Shortell … WSJ's Nicole Friedman … former New Mexico Gov. Susana Martinez … Martha Coakley … Caroline Kelly … U.S. Chamber of Commerce's David Weissman … Dalton Dismukes … Elizabeth Bennett … Ted Goodman Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn't happen without our editor Mike Zapler, deputy editor Zack Stanton and producers Setota Hailemariam and Bethany Irvine.
| | | | A message from PhRMA: What's fueling inflation? Not prescription drugs. The administration's own economic data proves it.
Even though medicines aren't fueling inflation, there are still patients who struggle to afford their treatments. But their challenges largely stem from a broken insurance system that too often forces patients to pay more for medicines than insurance companies pay.
The current system isn't fair for patients, but government price setting won't help. There is a better way to help lower drug costs for patients, while preserving choice, access and future innovation. | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
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