💰 Trump tax trade

Plus: House GOP's diversity bet | Thursday, September 08, 2022

Open in app View in browser     Axios Sneak Peek By Alayna Treene, Hans Nichols and Zachary Basu · Sep 08, 2022 Welcome back to Sneak. Smart Brevity™ count: 1,017 words ... 4 minutes.     1 big thing: Dems' tax credit Hail Mary Sen. Sherrod Brown (D-Ohio) and other Democrats at a February press conference about the child tax credit. Photo: Win McNamee/Getty Images   The White House is engaging with Senate Democrats about making one last push for an enhanced child tax credit this year — and may dangle support for former President Trump's expired research and development tax credits in return for GOP votes, Axios' Hans Nichols report. Why it matters: Some Democrats see a year-end legislative horse-trade as their last chance to enshrine some version of President Biden's enhanced child tax credit into law before Republicans take one — or both — chambers of Congress. A compromise package would require 60 votes in the Senate, meaning that at least 10 Republicans would need to support it without any Democratic defections. In response to the Supreme Court decision on Roe v. Wade, some Republican senators, including Mitt Romney (R-Utah) and Marco Rubio (R-Fla.), have been floating pro-family policies like a cheaper and less expansive version of Biden's child tax credit. But, but, but: A Hail Mary tax package would face not only a ticking congressional clock but also potential opposition from Sen. Joe Manchin (D-W.Va.) — who may not be willing to support more deficit spending. Context: Republicans and Manchin let Biden's one-year child tax credit, which provided families with up to $3,600 per child, expire at the end of 2021. Business groups have been looking for opportunities all year to restore some of the R&D tax credits that were included in Trump's 2017 corporate tax reform package but were allowed to expire after four years. Driving the news: Biden officials have been in quiet conversations with Democratic senators, including Sen. Michael Bennet (D-Colo.) — one of the child tax credit's main champions — to discuss how to reach a deal. "It is a priority for the White House and it's absolutely a priority for me," Bennet told Axios. "We should have never allowed it to sunset, and I think we can find a way at the end of the year." "I would be very reluctant for us to extend things like the R&D tax credit for business enterprises, without extending this important tax cut for working families," he said. The big picture: Congress will return to Washington after November's election for a lame-duck session, in which funding the government, and potentially a debt-ceiling package, will be atop the agenda. But taking action on a child tax credit is clearly a priority for Democrats, who feel they have found a potential point of leverage over Republicans, according to Business Insider. What they're saying: "We're simply not going to help business, help big corporations, without helping the child tax credit," said Sen. Sherrod Brown (D-Ohio). "This administration is full in on this." "Would I like there to be a deal? Absolutely," said Sen. Mark Warner (D-Va.). "I think they are both good policies." "I've got a proposal that has a good deal of support on our side of the aisle," Romney told Axios. "I've had conversations with the White House. They say they have interest and we'd like to chat about it." Keep reading.     2. 🗳️ Georgia rivals' racism split-screen Sen. Raphael Warnock (left) and Herschel Walker. Photos: Anna Moneymaker; James Gilbert via Getty Images In what's still a U.S. rarity — a statewide general election between two Black nominees — Georgia's Republican Senate hopeful Herschel Walker is accusing incumbent Sen. Raphael Warnock of using racism "to divide us," Axios Atlanta's Emma Hurt reports. Why it matters: Walker's strategy in one of the most closely contested Senate races in the country may be an appeal to white voters as much as — or more than — voters of color. Driving the news: "Sen. Warnock believes America is a bad country full of racist people; I believe we're a great country full of generous people," Walker declares in his latest ad. Walker sought to turn the tables on Warnock on Twitter last week, with a reference to a famous line in the "I've been to the mountaintop" speech that Martin Luther King Jr. delivered on the eve of his 1968 assassination. Walker told Warnock "straighten your back — because Joe Biden is riding your back." Remember: In addition to his role as U.S. senator, Warnock is senior pastor at MLK's Ebenezer Baptist Church in Atlanta. Between the lines: Andra Gillespie, a political scientist at Emory University who specializes in political mobilization and race, said Walker's new ad doesn't appear to be geared toward Black voters. "If he hopes to over-perform the typical Republican candidate in the state amongst Black voters, this isn't the ad to do it," she told Axios. "Because most Blacks acknowledge racism, both structural and interpersonal." Instead, the message appears to be geared toward white voters, she said — specifically to "independents who are fatigued about talking about race." Keep reading.     3. 🏛️ House GOP's diversity bet Illustration: Aïda Amer/Axios   House Republicans are running more than 60 nominees of color on general election ballots nationwide, Axios' Sophia Cai reports: Among challengers and incumbents combined, nominees include 29 Latino, 26 Black, six Asian American Pacific Islander and at least three Indigenous candidates. Why it matters: GOP Leader Kevin McCarthy (R-Calif.) is looking for a sequel to a 2020 cycle in which he more than doubled the number of GOP women in Congress. Every seat the Republicans flipped was won by a woman, person of color or veteran. Yes, but: Democrats continue to outpace Republicans in terms of candidates' racial and ethnic diversity. 97 Democratic nominees are Black, 50 are Latino, 18 are AAPI and at least seven are Indigenous. Keep reading.     A message from Axios Get their attention     Professionals are busy — so we ensure our partners get their messages across quickly and effectively. How it's done: Smart Brevity Studio creates concise articles and visuals that get up to 5X more engagement than they do on other platforms. Find out more.     4. 🚨 Abortion, voting rights on ballot in Michigan Abortion rights protesters gather outside Michigan's State Capitol yesterday. Photo: Jeff Kowalsky/AFP via Getty Images   Voters will decide the legality of abortion in Michigan after the state Supreme Court ruled that a proposed constitutional amendment enshrining abortion rights should appear on the Nov. 8 ballot. The court also ruled that an initiative expanding voter access, including by requiring nine days of early in-person voting, should appear on the November ballot as well.     5. 👑 Parting shots President Biden with U.K. Ambassador Karen Pierce (left) and first lady Jill Biden. President Biden, who has ordered U.S. flags on public and federal property to be flown at half-staff until Queen Elizabeth II's burial, made a trip to the British Embassy to sign a condolence book for the U.K.'s longest-serving head of state. Via the White House     A message from Axios Get their attention     Professionals are busy — so we ensure our partners get their messages across quickly and effectively. How it's done: Smart Brevity Studio creates concise articles and visuals that get up to 5X more engagement than they do on other platforms. Find out more.   📬 Thanks for reading this week. We'll be back Sunday with a dispatch from the New Hampshire campaign trail. Are you a fan of this email format? It's called Smart Brevity®. Over 300 orgs use it — in a tool called Axios HQ — to drive productivity with clearer workplace communications.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: