Key Takeaways

  • House starts to assemble massive $3.5T Budget Reconciliation Bill with opposition growing from moderate Democrats in both House and Senate. Tax increases for both corporate and personal taxes part of Reconciliation Bill. New Democratic proposal would increase corp. tax to 26.5% and capital gains to 25%.
  • Speaker Pelosi needs to navigate path for Senate passed bipartisan infrastructure bill and Budget Reconciliation.
  • Market risk issues on the table in DC center on government shutdown and debt ceiling. Potential shutdown at end of fiscal year on October 1.
  • Democrats plan to avoid debt ceiling crisis by adding it to government funding bill. Republicans could vote against bill but not filibuster the government funding bill that has debt ceiling resolution. If Rs filibuster bill they may take blame for government default. Democrats say there are multiple ways to increase debt ceiling other than government funding bill; but these alternatives are well kept secret.

Bipartisan Infrastructure Bill

The Senate returns today and the House next week as both chambers face a daunting list of must-pass bills to keep the government open and running and deal with infrastructure and Budget Reconciliation.

While the House will not be in session this week the spotligh...

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