We have the details on how Schumer and Manchin secretly worked to revive the Climate Bill and the Tax Expenditures. We’ll also look at the most recent data on inflation and huge oil big profits.
But first, find out if the Democrats or the Republicans won the most important baseball game.
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Inside the secret Manchin-Schumer deal
Sen. Joe Manchin (DW.Va.) and Senate Majority Leader Charles Schumer (DN.Y.) reached their agreement on a major tax and climate package Tuesday night, but kept it secret — giving the Democrats just enough time to pass a $280 billion chip and science bill that Republicans would otherwise have blocked.
The announcement of the deal, which would generate $739 billion in new tax revenue, fund a slew of new climate provisions and cut $300 billion from the federal deficit, came as a complete surprise to their Senate colleagues.
“I would say it’s somewhere between a surprise and a shock,” said Sen. Chris Murphy (D-Conn.).
- Less than two weeks earlier, talks between Schumer and Manchin fell apart dramatically and the Democratic leader accused Manchin of “walking away”.
- The two met again in secret on July 19 and finally reached an agreement on Tuesday evening before Wednesday’s announcement.
- They agreed to pay for climate and health care investments with a minimum 15% corporate tax on large corporations, strengthening tax compliance enforcement by the IRS and closing the interest loophole. doors.
Alexander Bolton details the top secret negotiations here.
The Democrats are not off the hook yet: They are still waiting to hear from Sen. Kyrsten Sinema (D-Arizona), who was kicked out of last-stage negotiations between Manchin and Schumer and opposed closing the interest tax loophole last year. postponed. Sinema’s office said she was reviewing the text and would need to see what would come out of the parliamentary process.
HIGHER AND HIGHER
The Fed’s inflation gauge jumped in June as gasoline prices soared
A spike in gasoline prices in June fueled much higher inflation and a decline in household purchasing power, according to data released Friday by the Bureau of Economic Analysis (BEA).
- The personal consumption expenditure (PCE) price index, a key gauge of inflation, rose 1% in June and 6.8% a year last month, according to the BEA.
- The monthly inflation rate increased by 0.6% in May and the annual inflation rate rose to 6.3% that month.
Economists expected the PCE price index to show another big jump in inflation in June, a month when the average cost of a gallon of gasoline in the United States topped $5.
- The war in Ukraine and the resulting sanctions imposed on Russia have limited the world’s supply of oil and natural gas, as well as food and other raw materials, which has made prices higher and more volatile. .
- High energy and food prices can also spur inflation across the economy as businesses try to cover higher transportation, manufacturing and ingredient costs.
But it wasn’t just “Putin’s price hike,” as the White House likes to call it. Excluding food and energy prices, the PCE price index rose 0.6% over the month. It had risen just 0.3% each month since February.
Sylvan has more here.
Major oil companies post record profits
ExxonMobil, Chevron and Shell posted record profits in the second quarter of 2022 as the companies reported earnings this week.
The gains come as the world has seen extremely high oil and gasoline prices.
- Exxon said Friday that between April and June of this year, it made
$17.9 billion, compared to about $5.5 billion from January to March.
- Chevron, meanwhile, made $11.6 billion, down from about $6 billion last quarter.
- Shell made $11.5 billion, compared to $9.1 billion in the previous quarter.
Rachel Frazin has the numbers here.
McCarthy hits out at Pelosi for lawmaker ban on stock trading
House Minority Leader Kevin McCarthy (R-California) swept Speaker Nancy Pelosi (D-California) on Friday following reports that Democratic lawmakers are considering introducing a ban on trading. of actions by lawmakers next month.
During his Friday press conference, McCarthy said it was not “appropriate” for Pelosi to write the bill regarding the ban on stock trading by congressional lawmakers, pointing to the investments his husband, Paul Pelosi, a venture capitalist, has made. According to Insider, the couple achieved the vast majority of their wealth through financial transactions made by Paul Pelosi.
Good to know
A new poll has found overwhelming support from bipartisan voters for two key antitrust bills that face an increasingly tight deadline to pass this year.
Asked about the American Innovation and Choice Online Act, a bipartisan bill that would prevent tech giants from favoring their own products and services over those of their rivals, nearly 73% of respondents said they were in favor of the bill.
Here’s what else we’ve got our eyes on:
- A group representing gig workers has criticized a House bill that it says would misclassify workers in a way that would strip them of basic labor protections.
That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. We’ll see you next week.
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