What to Know in Washington: Buffet Predicts Tax Rise for Deficit
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Taxes are likely to rise as lawmakers look to narrow the federal deficit, Warren Buffett said, as Washington prepares for major tax negotiations next year.
The Berkshire Hathaway chair and CEO, speaking Saturday at the company’s closely watched annual meeting in Omaha, sidestepped directly commenting on the partisan fight over corporate taxes taking shape. But he said his company will pay whatever the rate is, whether the current 21% or something higher.
“With present fiscal policies, I think that something has to give,” Buffett said. “Higher taxes are quite likely, and if the government wants to take a greater share of your income or mine or Berkshire’s, they can do it. And they may decide that some day they don’t want the fiscal deficit to be this large.”
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Tax changes enacted under then-President Donald Trump in 2017 lowered the corporate rate to 21% from 35%, along with a series of other changes. Those included several tax cuts affecting individual filers that are poised to expire, teeing up talks next year on what changes to make — negotiations that could lead to a change in the corporate rate. President Joe Biden has called for raising the corporate rate to 28%. Read More
BIDEN’S AGENDA
- The president will return to the White House around 11 a.m. from Wilmington, Del., where he’ll present the Commander-in-Chief’s Trophy to the United States Military Academy Army Black Knights around noon.
- Biden will have lunch with King Abdullah II of Jordan around 1p.m.
- He and First Lady Jill Biden will host a Cinco de Mayo reception in the Rose Garden around 5:15 pm.
- Press Secretary Karine Jean-Pierre will hold a briefing around 1:30 p.m.
CONGRESS’ SCHEDULE
- The House will meet at 2 p.m. to consider a number of bills under suspension.
- Senators return tomorrow.
- For the full detailed agenda, read BGOV’s Congress Tracker.
From BGOV’s Hill Reporters
A bill intended to keep kids safe ONLINE would do more harm than good and Congress should not include it in must-pass aviation legislation, technology and LGBTQ+ rights groups urged Senate leaders, Oma Seddiq reports.
- Senators have been angling to attach a slate of bipartisan proposals to aviation legislation expected to be one of the last major bills Congress takes up before the 2024 election.
- Sens. Marsha Blackburn (R-Tenn.) and Richard Blumenthal (D-Conn.) filed an amendment last week to include their Kids Online Safety Act in the measure to reauthorize the FAA. Read More
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A new Democrat will take one of the MOST DIFFICULT JOBS on the Hill, helping lead talks to fund the Homeland Security Department, after Rep. Henry Cuellar (D-Texas) relinquishes the position, Jack Fitzpatrick reports.
- Cuellar will relinquish his role as ranking member of the House Appropriations Homeland Security Subcommittee after federal officials charged him and his wife with bribery.
- Rep. Lauren Underwood (D-Ill.) becomes the youngest current ranking member of an appropriations subcommittee. Read More
Also Read:
- House Democrat Cuellar Charged With Taking Foreign Bribes
- Bribery Charge Against Congressman Implicates Mexico’s Azteca
Also Happening on the Hill
Biden VETOED a measure that would have overturned the National Labor Relations Board’s new standard lowering the bar for whether two companies are joint employers, sharing obligations to negotiate with unions as well as joint liability for labor violations. Read More
Rep. VICTORIA SPARTZ — the first and only member of Congress born in Ukraine — has voted both for and against aid to her native country. She’s also announced her retirement and filed for re-election.
- The only Indiana House member in danger of losing in Tuesday’s primaries, Spartz is talking to fellow Republicans one-on-one and in TV commercials, working to blunt the criticism of rivals. Read More
Defense and Foreign Policy
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A HAMAS delegation has reportedly arrived in Cairo for new talks aimed at reaching a cease-fire in Gaza, where the war between the Iran-backed militant group and Israel is nearing the seven-month mark. Read More
- By many measures, the NEW PALESTINIAN AUTHORITY in the West Bank is just what the US and others want for a future Palestinian state that could extend its rule to a post-war Gaza: a modern, technocratic group focused on solving problems. Read More
- The Biden administration will enter into a DEFENSE PACT with SAUDI ARABIA only if the kingdom normalizes relations with Israel, National Security Adviser Jake Sullivan insisted, the Financial Times reported. Read More
- Israeli officials seized AL JAZEERA equipment on Sunday, hours after the nation’s cabinet approved a decision to shutter the Qatar-based TV news network’s operations in the Jewish state – an unprecedented step toward an international media outlet. Read More
Russia’s vast new $25 billion liquefied natural gas operation is sitting virtually idle, the first piece of Russia’s energy production complex to be effectively curbed by US restrictions. Read More
Israel Tells Civilians to Leave Rafah as It Weighs Attack
Israel’s military has told civilians to move out of parts of Rafah, a possible prelude to a long-expected attack on the Gazan city.
More News We’re Reading
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HOPE HICKS, a former top aide to DONALD TRUMP, wept on the witness stand Friday after dramatic testimony about the 2016 campaign’s panic over explosive stories detailing the former president’s alleged extramarital affairs. Read More
Adams Vows Peaceful NYC Graduations as Colleges Face Disruptions
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Noncompete Limits Pursued by States to Boost Health Workforce
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Mental Health Parity Test Raises Cost Control Concerns for Plans
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Yellen Says Fundamentals Still Point to Slowing Inflation
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Investors waiting for an update of how Donald Trump’s media startup is faring will have to wait a bit longer — months by some accounts — before getting a look at financial results.
To contact the reporters on this story: Brandon Lee in Washington at blee@bgov.com; Jeannie Baumann in Washington at jbaumann@bloombergindustry.com
To contact the editors responsible for this story: Kayla Sharpe at ksharpe@bloombergindustry.com; Giuseppe Macri at gmacri@bgov.com
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