Key Takeaways

  • Democrats appear to be closing in on deal that will include a $2T Build Back Better (BBB) proposal, and secure passage of $1T bipartisan infrastructure deal.
  • President Biden has played a key role in bringing progressive and moderate Democrats together on the deal. Progressives have had to reduce their goals to accommodate demands of moderates.
  • Personal and corporate tax increases have been reduced with focus on surcharge on very wealthy and strengthening rules governing offshore income for US corporations.
  • Fed: Jamming progressives on BBB may jeopardize Powell re-nomination as Administration seeks to heal wounds. Powell also victim of his own success with strong economy emerging from Covid recession.

Debt Ceiling, Budget Reconciliation, and VA Gov. Race

Over the weekend reports continue to emerge of Democratic leaders and the White House coming to an agreement on the President’s BBB domestic program that will be considered under the Budget Reconciliation process. Reconciliation allows for consideration in the Senate without the threat of a filibuster. There are reports that Democrats may try to add an increase to the debt ceiling on to the BBB Reconciliation bill.

Nationally Democrats are growing concerned that the split between moderate and...

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