Steve Mnuchin previews tax reform - Axios
(Go: >> BACK << -|- >> HOME <<)

Featured

Steve Mnuchin previews tax reform

Stef Kight / Axios

Treasury Secretary Steve Mnuchin, in a conversation with me yesterday morning at the debut Axios News Shapers event, said the administration will plunge into whole-hog tax reform: "We're reforming both the personal and the corporate side. We're not cutting this up and doing little pieces at a time."

  • Mnuchin slid a bit on his earlier vow to finish tax reform by the August recess, saying that's always been the optimistic goal: "And if we don't, we'll get it done right afterwards." When I asked him if that meant it'd be done by fall, he replied: "Absolutely."
  • On tackling another complex issue after health care: "In a way, it's a lot simpler. It really is. It's a lot simpler because the goals of tax reform ... creating a middle-income tax cut, about creating personal tax simplification, and making U.S. businesses competitive. ... I think there is very, very strong support."
  • I asked him: "Pretend that I shop or work at Walmart. Make the case to me that the border adjustment tax is good for me." He didn't: "[T]here's certain aspects of that tax that are attractive, and there's certain aspects ... that are concerning. ... [O]ne of our concerns about it is that if the currency moves, then the Walmart shopper shouldn't be impacted. OK. But if the currency moves, that has an impact for our exporters."
Featured

Exxon to Trump: don’t bail on Paris

Koji Sasahara / AP

ExxonMobil is urging the White House to remain in the Paris climate change accord:

"We believe that the United States is well positioned to compete within the framework of the Paris agreement, with abundant low-carbon resources such as natural gas, and innovative private industries, including the oil, gas and petrochemical sectors."

Why it matters: Exxon's March 22 letter arrives as the White House is grappling with whether to abandon the 2015 climate pact. It notes that the U.S. gas boom has helped drive down the country's carbon emissions, adding that remaining in Paris can help the U.S. promote market access for gas under other nations' climate policies, among other reasons for staying in.

Our thought bubble: The support for the Paris deal from the likes of Exxon and ConocoPhillips highlights a divide between some powerful energy companies and conservative activists who want Trump to make good on his campaign pledge to abandon the deal.

The letter is from Peter Trelenberg, Exxon's environmental policy and planning manager, to David Banks, a top WH aide on international energy policy. It was first reported by the Financial Times.

Featured

The new Trumpcare strategy: keep talking

J. Scott Applewhite / AP

House Republican leaders revealed their plan this morning for bringing Obamacare repeal back to life: Keep talking about it until they get more votes. "We all share these goals, and we're just going to have to figure out how to get it done," House Speaker Paul Ryan told reporters after a meeting with the GOP conference. He said that "some of those who were in the no camp expressed a willingness to keep talking." House Majority Leader Kevin McCarthy said he came out of the meeting with "more confidence than ever that we will get it done."

Between the lines: Their comments confirmed that this is mostly an exercise in showing their supporters that they're not giving up — and maybe giving conservative or moderate holdouts some time to reconsider their position. Ryan said he would still want to use the budget reconciliation bill as the vehicle, but wouldn't commit to a timeline, "because we want to get it right."

The Senate shrugs: "If they get 216 votes, that's great, we'll take it up over here," Senate Majority Whip John Cornyn told Caitlin Owens.

Featured

Trump admin reportedly tried to block Sally Yates from testifying on Russia

J. David Ake / AP

The White House reportedly attempted to block former acting Attorney General Sally Yates, who was fired early on in the Trump administration, from testifying about ties between Trump campaign officials and Russia, the Washington Post reports.

Recently obtained letters reveal that the Department of Justice told Yates earlier this month that the administration was invoking its "presidential communication privilege" to prevent her from testifying before the House Intelligence Committee. The move came after Yates' attorney sent a letter stating that she was willing to testify, and would avoid discussing classified information that could compromise investigations. The letter was shared with the Intel Committee. The next day committee chairman Devin Nunes canceled the hearing altogether.

Earlier this year, reports surfaced that Yates had warned the White House that former National Security Advisor Michael Flynn could be subject to Russian blackmail due to his false accounts of his contact with the Russian ambassador.

Sean Spicer has called the report "entirely false": "The White House has taken no action to prevent Sally Yates from testifying and the Department of Justice specifically told her that it would not stop her and to suggest otherwise is completely irresponsible."

Featured

Paul Ryan talks health care reform, Nunes recusal

Speaker.gov / YouTube

At the GOP House Leadership press conference this morning, Paul Ryan told reporters that Republicans are "united around our agenda" and "not going to retrench into our corners" even after last week's failure to repeal Obamacare.

  • Obamacare repeal and replacement is "too important" for "an artificial timeline," but Republicans will "work together and listen together until [they] get this right," Ryan said.
  • Ryan also said that House Intel Chair Devin Nunes should not recuse himself from the ongoing Russia investigation and added that he doesn't know Nunes' source.
Featured

TPG ends Strauss Coffee saga

(AP Photo/Rick Bowmer)

Private equity firm TPG Capital has agreed to sell its 25.1% stake in listed Israeli coffee producer Strauss Coffee back to the company for around $279 million, via a two-part transaction that will completely wrap up by the end of August.

Why it's a big deal: Because this marks the end of a protracted saga between TPG and Strauss, which first got together via a $293 million TPG investment back in 2008. At issue was Todd Morgan, a TPG employee and the firm's rep on Strauss Coffee's board, before he was later named CEO. In early 2014, however, Morgan was fired over TPG's objections, which became public via a court fight.

Bottom line: "With 14,830 employees, food and beverages manufacturer and marketer Strauss is Israel's second largest company." ― Yossi Nissan

Featured

House GOP: We're bringing back zombie Trumpcare ... somehow

J. Scott Applewhite) / AP

House Republican leaders told the GOP conference this morning that they're going to keep plugging away on Obamacare repeal — using the budget reconciliation bill, just like before. The one thing Republicans couldn't describe after the meeting: an actual plan for doing it.

What they're doing: "it's just reevaluating more than anything else," Republican Study Committee chairman Mark Walker told reporters. "Is this something that we're going to leave on the American people? Specifically, Obamacare. Or is this something we're willing to come back to the table and say what can we do to get this thing done? That's the reality of it."

What it means: Republicans are upset that Ryan said Obamacare is "the law of the land," and the GOP leadership is now aligning with Vice President Mike Pence's message from this weekend, when he said the Trump administration is still committed to repealing Obamacare. But that doesn't mean they have a serious plan to do it. More likely, Republicans will need a cooling-off period.

Featured

Consumer confidence hits highest level since 2001

Gene J. Puskar/AP

Consumer confidence hit a 16-year high, the Conference Board announced Tuesday, well above economist's expectations. The S&P 500 and Dow Jones turned positive following the news, after trading slightly down in early trading Tuesday.

Why it matters: 70% U.S. GDP is consumer spending, so survey data showing that consumers feel this good is bullish for the U.S. economy. The release dovetails with recent employment data showing very strong job growth, and these two forces should combine to power the U.S. economy to faster growth in 2017.

Featured

Flashback: McConnell on tax reform and infrastructure

J. Scott Applewhite / AP

The Trump administration is looking at concurrently tackling tax reform and infrastructure, as Axios' Jonathan Swan scooped last night. Back in January, National Journal Alex Rogers asked Senate Majority Leader Mitch McConnell what he thought about tying the two together. Quotables:

  • "I'm not interested in doing anything like the stimulus... It's like withdrawing the funds from the bank and lighting a match to it and adding that much to the deficit."
  • "Whatever we do needs to be credibly paid for... the way transportation projects really, actually occur is at the state level. They're the ones who build roads, repair roads and actually spend the gas-tax money..."
  • McConnell's questions: What is the administration going to recommend? How big is it? How do we pay for it? How is it going to be structured?
Featured

The French voter divide on Islam

Michel Spingler / AP

Ahead of next month's French presidential election, a new Ipsos poll has found that 61% of French voters believe that Islam is incompatible with French society.

  • This isn't a new development. Ipsos found that 74% of French voters held a negative view of Islam in French society in January 2013. That dropped to 53% after January 2015's Charlie Hebdo shooting, but has ticked back up since.
  • There's a clear divide between supporters of the two frontrunners. 57% of those supporting centrist Emmanuel Macron hold a positive view of Islam compared to only 13% of right-wing populist Marine Le Pen's supporters.
Featured

Facebook looks to wipe out Snapchat

Facebook announced Tuesday it's adding even more Snapchat-like features, including a camera feature that will let users post photos to Facebook directly through a camera button on its app. Snapchat, which recently rebranded itself as a "camera company," pioneered the direct-to-app photo-taking technique when it launched in 2011.

Facebook says it's also adding more filters and animations, and a "stories" feature that nearly mimics Snapchat's 24-hour disappearing posts feature that it launched in 2014.

Why it matters: Many argue that Facebook's Snapchat-like features are not as good as Snapchat's original ones, but it doesn't matter. As Business Insider points out, they don't have to be perfect. "Zuck only needs half a percent of his users to prefer his copycat tool and he will have deprived Spiegel of 10% of his potential future users. That's a serious dent."