Happy Tuesday and welcome back to On The Money for the last time in Donald Trump’s tenure. I’m Sylvan Lane, and here’s your nightly guide to everything to do with your bills, bank account, and bottom line.
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THE BIG DEAL – Yellen advocates high spending at confirmation hearing: Candidate for finance minister Janet YellenJanet Louise YellenOn The Money: Retail Sales Down in Recent Signs of Economic Slowdown | Fast Food Workers Strike Over Minimum Wage US Officials Raise Concerns Over Mexico’s Handling Of Energy Permits The Hill’s Morning Report – How Many Republicans Will Vote for Trump’s Impeachment? On The Money: Sanders To Be Gatekeeper For Major Biden Proposals Senate Majority Gives Biden Path To Student Loan Forgiveness Verification Negotiation For Yellen Expected Next Tuesday MORE urged Senators Tuesday “Act big” to economic relief and warned that the pandemic-ravaged economy would suffer profound, long-term damage without adequate government assistance.
During her confirmation hearing before the Senate Finance Committee, Yellen said it was crucial to approve more support for vulnerable households and small businesses despite the high financial cost of tackling the dual health and economic crisis.
“Neither the president-elect nor I propose this aid package without recognizing the country’s debt burden,” said Yellen. “But right now, with interest rates at historic lows, the smartest thing to do is to trade big. In the long run, I believe the benefits will far outweigh the costs, especially when it comes to helping people who have had problems for a long time. “
Naomi Jagoda from the hill, Niv Elis and I bring you to the hearing here.
GOP concerns, but little resistance: Yellen seems like a safe bet to confirm. She has deep references, has already been screened for high-level positions, and received bipartisan praise. Although the Republicans showed little opposition to her nomination, they heavily criticized the scale and scope of Yellen’s plans to support the economy.
“I look forward to working with you, but I must admit that the government’s proposed stimulus package contours will make it difficult to do so,” Sen said. Pat ToomeyPatrick (Pat) Joseph ToomeyGovernment used the Patriot Act to collect website visitor logs in 2019 (R-Pa.).
“The only organizational principle I can see is that it seems to spend as much money as possible, apparently to spend it.”
Read more from Yellen’s confirmation hearing:
Lead the day
Both tax hike proposals are facing a bumpy road: President-elect Joe Biden and the Democrats in Congress have signaled plans to increase taxes on wealthy individuals and corporations, but significant hurdles remain even with Democratic majorities in the House and Senate.
The Democratic expansion of Senate outflows in Georgia this month, which gives Democrats control of the Senate for the first time since 2014, increases the likelihood that tax proposals will advance through Congress. However, due to the low profit margins in both the House and Senate, introducing tax increases will prove difficult.
“It will not be easy to get them to agree on a legislative proposal,” said Jorge Castro, former congressional assistant and advisor to the IRS commissioner during the Obama administration who now works at Miller & Chevalier in tax law. Naomi explains why here.
Uphill struggle with minimum wage increase: Biden is too before blowback by some Republicans for proposing an increase in the federal minimum wage to $ 15 per hour.
Biden received praise from progressives for including a policy to increase the federal minimum wage for the first time in over a decade in his $ 1.9 trillion aid package unveiled Thursday.
However, some lawmakers across the aisle were quick to criticize this component of his plan, arguing that it would hinder rather than aid recovery. Level it collapses here.
Cloud of debt hangs over Trump’s post-presidency: President Trump faces an increasingly challenging financial future after leaving the White House on Wednesday.
- Trump faces hundreds of millions of dollars in debt, most of which will mature within the next four years, and the legacy of his presidency may leave him with few options to pay it off.
- After the riot at the Capitol, the New York City government and the PGA of America withdrew from business deals with the Trump Organization and stole future revenue from the debt-laden president.
- Three banks have announced that they will sever ties with him – including Deutsche Bank, his largest creditor – and limit his ability to refinance debt.
A full picture of Trump’s financial health can be compiled without the tax returns and other financial documents he hasn’t published in years. Even so, experts say that based on what is known about his assets and obligations, the president could face a flurry of lawsuits and debt collection attempts that could ultimately lead to personal bankruptcy. I have more here.
GOOD TO KNOW
- President Trump concludes his term in office a significant increase on the stock market, but has not matched the equity gains among the predecessors of former Presidents Obama and Clinton.
- The supermarket chain Aldi announced on Tuesday that it would have up to front-line employees in the US four hours of paid vacation So they can get two doses of the coronavirus vaccine.
- President-elect Joe Biden selected two experienced regulators Head of the Securities and Exchange Commission (SEC) and the Consumer Financial Protection Bureau (CFPB).
- A coalition of 40 antimonopoly groups is urging the new Biden administration not to appoint former big tech employees Key roles of antitrust law In the government.
BITS AND PIECES