Thursday, July 14, 2022

Layoff notices hit Senate service workers

Presented by Air Line Pilots Association Intl.: A play-by-play preview of the day's congressional news
Jul 14, 2022 View in browser
 
POLITICO Huddle

By Katherine Tully-McManus

Presented by

Air Line Pilots Association Intl.

TAXATION TREPIDATION — To tax hike or not to tax hike? That's a question squeezing Democrats.

A cornerstone of Democratic policy for decades has been a push to increase taxes for large corporations and highest echelons of individual earners. But as the move towards a taxes, energy and drug pricing package progresses, some are spooked at the prospect of increasing taxes in an election year with prices soaring.

Democrats are aiming to raise $1 trillion to pay for their long-awaited party-line bill. Prescription drug reform and Medicare taxes get them halfway there. Making up the rest is where it gets tricky.

Sen. Joe Manchin (D-W.Va.) is eyeing tax provisions in the party-line bill to address deficit reduction. But he has also raised alarms about inflation and doesn't want to see any tax increases that he perceives as aggravating the sky-high prices faced by consumers today.

"[Democrats are] 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," write Burgess and Sarah this morning.

Polling suggests that tax increases for the highest income Americans and big companies are popular, but the political reality is that Republicans would use even those popular increases to paint Democrats broadly as raising taxes while Americans are struggling with inflation.

A roundup of just some of what lawmakers told Sarah and Burgess about tax prospects:

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]."

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."

Sen. Jon Tester (D-Mont.): "I don't think raising taxes is a winner anywhere, OK?"

Rep. Susie Lee (D-Nev.): "I don't think tax increases would be popular."

Messaging morass: On the Hill and internally among Democrats, the bill is called "the reconciliation bill." But that reference to the complex budget procedure the bill will operate under isn't exactly accessible. Sen. Elizabeth Warren (D-Mass.) said she's okay with calling it the Joe Manchin Deficit Reduction Act, "if that's what it takes to get it done." She said "reconciliation" sounds like "some bad romance novel." Speaking of literature… Rep. Scott Peters (D-Calif.) has an idea: the "Waiting on Joe" Act (like Waiting for Godot, get it?)

RELATED: Manchin cites inflation concerns, roiling budget talks anew, from Alan Fram at The Associated Press

 

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.

 
 

GOOD MORNING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Thursday, July 14. Give some love to your Capitol cafeteria workers today. (More on that below.)

PASS THE CHIPS — Commerce Secretary Gina Raimondo is back on Capitol Hill today, along with other Biden administration officials, for an all-members House briefing on the bipartisan bill aimed at boosting U.S. competitiveness with China.

There is interest percolating in Congress as the conference committee reconciling the House and Senate version drags on, in moving the $52 billion in funding for semiconductor manufacturers as a standalone measure, instead of the sweeping package that has been under consideration for over a year. Raimondo has already publicly made the case to pass the chip measure solo.

TIME FOR A MAKEOVER — Move over, Modernization Committee. There are two separate bipartisan groups on Capitol Hill angling to modernize the 135-year-old law that governs the transition of presidential power, and the one in the Senate could be on the cusp of a deal.

The one in the House…that's the Select Committee on Jan. 6.

The goal: A group of GOP Senators, plus a handful of Democrats are trying to get a filibuster-proof majority to support an update to the 1887 law that Donald Trump's allies used to pressure then-Vice President Mike Pence to block certification of the 2020 election. And the Jan. 6 committee's plans to make recommendations on the topic is barely on their radar.

Status update: Sen. Susan Collins (R-Maine) said her group circulated text three weeks ago and aims to soon provide recommendations to the Senate Rules Committee, which would take up the bill. "We've been working for months on this issue and have really done a deep dive into the problems and ambiguities that exist in this 1887 law," Collins said. "My hope is that we will wrap up our work shortly … I suspect we will introduce a bill within the coming days."

Tick tock: Senators feel a need for speed. "My personal sense on this is, we need to move on this pretty quickly and certainly we need to get it done this year, if not this month," said Sen. Roy Blunt (R-Mo.), the top Republican on the Rules Committee, who is working with the bipartisan group. "I just don't see any reason to carry this discussion into the presidential cycle itself."

The Senate group isn't looking to compete or collide with the House select committee's efforts, but they wouldn't mind if the panel simply took up their proposal. Marianne has more details on the state-of-play: Senators in both parties want to prevent the next Jan. 6. They're not looking for the select panel's help.

FIRST IN HUDDLE: THIRD WAY'S BUY Centrist Democratic think tank Third Way is weighing in on Democrats' messaging ahead of the midterms, launching a $1.1 million ad campaign in twelve competitive House districts focused on energy policy. The ads aim to highlight efforts by Democrats to bring energy costs down, including investment in clean energy and acknowledging the pain voters are feeling with high prices.

The ads will run on Facebook and YouTube for Reps. Chris Pappas (NH-01), Elissa Slotkin (MI-07), Teresa Leger Fernandez (NM-03), Susan Wild (PA-07), Stephen Horsford (NV4), Abigail Spanberger (VA-07), Susie Lee (NV-03), Kim Schrier (WA-08), Sharice Davids (KS-03), Mikie Sherril (NJ-11), Marcy Kaptur (OH-09), and Andy Kim (NJ-03).

A message from Air Line Pilots Association Intl.:

Hearing a lot about a pilot shortage? Don't believe it. Airlines are cutting service to improve profits and are blaming the cuts on a "pilot shortage." They've even suggested more savings by reducing safety training for pilots. In reality, there are 1.5 certified pilots for every pilot job. Don't let airlines put profits over passengers' safety. Get the facts about pilot supply.

 

POWERFUL ALLIES VALIDATE VALADAO — Most Republicans who voted to impeach Donald Trump after Jan. 6 haven't been able to escape the former president's long and vindictive reach, but Rep. David Valadao (R-Calif.) is flying under Trump's radar and his allies in the House are working to keep him off Trump's bad list.

His district in California's Central Valley got bluer during redistricting and he has a prominent Democratic challenger. He needs both Trump voters and moderates behind him to win in November, but is happy having the president sit out the race.

As Valadao sees it, the Republicans he's alienated and Democrats he may have won over with his pro-impeachment stance makes for "a little bit of a wash."

The McCarthy Factor: House Minority Leader Kevin McCarthy's (R-Calif.) district borders Valadao's and the minority leader has gone to bat to urge Trump to not get involved, multiple people told Olivia.

McCarthy told POLITICO that the primary challenge against Valadao was "probably helpful" because some GOP voters angry about the incumbent's impeachment vote could let off some steam in the primary before pivoting to support him in the general.

"It is a hard seat. Remember, we lost it and only won it back with him," McCarthy said in an interview. "He's a worker — no fanfare, just gets the job done." More from Olivia: How one House Republican voted to impeach Trump and (maybe) kept his seat

CALL MULDER AND SCULLY "The House on Wednesday voted to create a secure government system for reporting UFOs and to compel current and former officials to reveal what they might know about the mysterious phenomena by promising to protect them from reprisal," write Bryan Bender and Lawrence Ukenye. It was a bipartisan amendment to the National Defense Authorization Act and passed by voice vote without debate.

LYING IN HONOR — Hershel "Woody" Williams, the last Medal of Honor recipient from World War II, will lie in honor today at the Capitol. There is an arrival ceremony of his casket at 10:30 a.m. and a ceremony with Congressional leadership and wreath presentations by Sens. Joe Manchin (D-W.Va.) and Shelley Moore Capito (R-W.Va.), Williams' home-state senators. Following the departure of Williams' remains from the Capitol at 3:30 p.m., there is a public wreath laying ceremony at the World War II Memorial.

HARASSMENT ON THE HOUSE STEPS — Rep. Alexandria Ocasio-Cortez (D-N.Y.) spoke out on social media about her experience last night with racial and sexual harassment from far-right activist Alex Stein on the House steps as she made her way to votes. Stein called her his "favorite big booty Latina" and a "hot tamale" while accusing her of wanting to "kill babies" and continually commenting on her butt.

Protestors, political activists and even aggressive "trackers" from opposing parties are fixtures of Capitol Hill, following and shouting at lawmakers. But Ocasio-Cortez drew contrast between political and protest activity and sexualized approaches, lamenting that a nearby Capitol Police officer didn't intervene.

"This wasn't about a political opinion, protest or anything like that. He was engaged in very clearly sexually threatening aggressive behavior right in front on the Capitol steps in front of an officer and he wasn't even asked to take a step back," Ocasio-Cortez said in an Instagram video. "Like, this officer was just cool with it."

 

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HUDDLE HOTDISH

DOZENS OF SENATE DINING WORKERS FACE LAYOFFS  — Workers who feed the Senate are on a carousel of uncertainty again, as layoffs loom for cooks, cashiers and other Senate food service workers.

Your Huddle host met up with some of the fifty-six employees of Restaurant Associates, the food service contractor for the Senate, who are facing layoffs on July 28 despite stopgap funding from the Architect of the Capitol that was supposed to last until Sept. 30.

Yes, again: In April, the Senate dining workers won a temporary reprieve from layoffs when Rules Committee Chair Amy Klobuchar (D-Minn.) and Sen. Elizabeth Warren (D-Mass.) secured $3.75 million from the Architect of the Capitol's office to prevent 81 workers from being laid off. That funding was supposed to last through Sept. 30, but workers were hit with the two-week notice yesterday.

The notice letter given to workers on Wednesday by Restaurant Associates said the architect's office could not promise that funds obligated to cover the company's shortfall would cover payroll through the end of Sept., "nor does the AOC guarantee additional funds will be made available; thus, the contractor shall manage payroll and staffing to begin to right-size their organization as soon as possible."

A handful of workers spoke briefly to POLITICO after being told that their jobs were not on the chopping block, but they awaited news about the status of their friends and colleagues who were in a hastily-called meeting.That 3 p.m. meeting is where the workers found out they only have two weeks left working in the Senate.

Elusive answers: Many workers were bracing for uncertainty in the fall when they expected the short-term funding to run out, but were blindsided Wednesday. Restaurant Associates told workers that the Architect of the Capitol told them to "right size" their workforce on Capitol Hill. While many eateries on the Senate side remain closed, those that are open have been bustling, with lines for food and payment.

Your Huddle Host met up with a half-dozen Senate dining workers after the meeting where they received layoff notices. Some are being offered positions at another dining facility across the city also operated by Restaurant Associates parent company at George Washington University. But the staff voiced concerns about pay cuts, seven-day-per-week schedules, night and weekend shifts and losing seniority that they've built in the Senate.

"We want to work the jobs we have, that we've had for years, here," one worker told your Huddle host.

The contract workers voted last fall to organize a union and joined Unite Here Local 23. They are currently bargaining with Restaurant Associates for their first union contract, but that can't move forward until the Senate revamps its official agreement with the company. Some see the move to shift workers to GW as a union-busting tactic: "they are trying to break us and split us up before we get our contract," bargaining committee member Quentin Blackman said Wednesday.

Speaking up: The small group put those concerns into action, seeking out Klobuchar, who has led ongoing discussions with the Architect of the Capitol to overhaul the structure of the contract. They made their way to her Dirksen office, along with your Huddle host, where Blackman and others conveyed their concerns and urged action on a long-term solution.

Klobuchar's staff escalated the update from the workers, getting Rules Committee staff on the phone and giving the workers face time with senior staff who spoke with the group. They later met with Senate Rules Committee aides, who have a direct hand in oversight of the Architect of the Capitol and Senate contracts. Further meetings are expected in the coming days.

SENATE DEMS DROP DIVERSITY DATA Senate Democrats have released the latest results of the Senate Democratic Caucus' Diversity Initiative Survey, first started in 2017.

While concerns about paths for advancement of staff of color persist, the data shows that more chiefs of staff and communications directors are non-white than ever before in the survey: 10 Dem offices have chiefs of staff who are people of color, two identifying as African-American, two as Asian American Pacific Islander, one as Native American/Hawaiian native and five Latino.

A total of 40 percent of Senate Democratic staff identified as nonwhite. Latinos have their highest representation in Democratic offices since 2017, at 14 percent.

There is much, much more data to dig into.

QUICK LINKS 

Democrats stand between Biden and sale of U.S. fighter jets to Turkey, from Andrew Desiderio

Seattle man faces hate crime charge after he's accused of threatening Rep. Pramila Jayapal, from Dareh Gregorian at NBC News

TODAY IN CONGRESS

The House convenes at 10 a.m.

The Senate convenes at 10 a.m. and will vote at 11:45 a.m. and 1:45 p.m. The Senate will vote on cloture on the nomination of Julianna Childs to be United States Circuit Judge for the District of Columbia Circuit.

 

A message from Air Line Pilots Association Intl.:

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AROUND THE HILL

10 a.m. House Select Modernization of Congress Committee hearing on constituent services (Rayburn 2118).

12:15 p.m. Sens. Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass.), and Cory Booker (D-N.J.) hold a press conference on corporate price gouging (Senate Swamp).

12:30 p.m. Speaker Nancy Pelosi (D-Calif.) holds her weekly press conference (Studio A).

TRIVIA

WEDNESDAY'S WINNER: Conley Lowrance correctly answered that the son of the founder of the Lutheran Church in America with a particularly distinguished career in Congress was Frederick Augustus Conrad Muhlenberg, the first speaker of the House.

TODAY'S QUESTION: Which president hated his painted portrait so much that he eventually burned it?

The first person to correctly guess gets a mention in the next edition of Huddle. Send your answers to ktm@politico.com.

GET HUDDLE emailed to your phone each morning.

Follow Katherine on Twitter @ktullymcmanus

A message from Air Line Pilots Association Intl.:

Airlines have invented a "pilot shortage" to justify cost cutting service reductions to smaller communities across the country. Airline profits are being prioritized over passenger service. The fact is America has 1.5 certified pilots for every pilot job. That's more than enough. But now airlines are recommending cuts to essential pilot safety training – just to put more pilots in service. This is the same training that has reduced airline fatalities by 99.8% since they were increased in 2010. There is no pilot shortage—don't be fooled. Proper training and diligence will maintain air travel's record as the safest mode of transportation. Get the facts about pilot supply.

 
 

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