Trump Vows Corporate Tax, IRA Cuts: What to Know in Washington

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One corporate tax cut isn’t good enough for Donald Trump, and he’s eyeing Joe Biden’s landmark legislative achievement for the chopping block too. But first, you should know:

Lobbyists say they — and Congress — have a “bonkers” to-do list to tackle before the election.
Redistricting in five states is altering how the math for control of Congress adds up this year.
Kamala Harris leads Trump in the latest Emerson College poll and has widened her fundraising lead.

Trump Vows 15% Corporate Tax and IRA Cuts

Donald Trump pledged to cut the corporate tax rate, slash regulations, and audit the federal government while pitching his agenda to Wall Street and corporate leaders in New York.

Trimming the corporate tax rate to 15% for companies that make their products in the US was the plan centerpiece, and a large reduction from the current 21% from Trump’s own 2017 tax law. Big companies would pay far lower rates than smaller, privately-held businesses, where rates are as high as 37%.

The Economic Club of New York event speech went out to big corporate executives, business leaders, and economists — including hedge fund billionaire John Paulson, Cantor Fitzgerald CEO Howard Lutnick, and Key Square Group’s Scott Bessent — all Trump supporters.

Trump’s proposed cut threatens to spark a major fight in Washington as Congress negotiates extending portions of Trump’s tax law expiring in 2025. It’s also in opposition to Vice President Kamala Harris’s proposal to raise the rate to 28%.

He also vowed to:

create a task force to review federal expenditures;
eliminate 10 regulations for every new regulation;
declare a national emergency on energy to spur domestic production and approve more oil and gas extraction; and
usher in lower interest rates, hit other countries with trade levies and funnel that money into a sovereign wealth fund — which could invest in manufacturing hubs, defense, and medical research. Read More

Also on Trump’s chopping block: unspent funding from Democrats’ signature climate law, which Trump pledged to rescind in the most definitive remarks yet on his plans for the Inflation Reduction Act. A full repeal of the law would require Congress’ approval. Trump could slow walk spending or rewrite guidance on tax credits to make them harder to use. Read More

Voters Weigh In: Both Trump’s proposal to end all federal taxes on tipped income, and Kamala Harris’ more targeted version for hospitality workers, have won broad bipartisan support with a majority of swing-state voters, according to a Bloomberg News/Morning Consult poll. Read More

Lobbyists, Lawmakers Back Next Week for ‘Bonkers’ To-Do List

Lobbyists and lawmakers returning to the Capitol next week have a packed list of priorities including campaign messaging items, defense, farm, and tax measures — all topped by a government funding bill.

With only 13 legislative days before lawmakers hit the campaign trail full time, September is going to be “bonkers,” according to K&L Gates lobbyist Karishma Shah Page.

Uncertainty over who’ll control Congress and the White House after November elections means the coming weeks may be the last opportunity to push through clients’ legislative priorities before readjusting to the new political landscape.

Much of the main action between Congress and K Street will take place at political fundraisers. Lobbyists said the fundraising invites are pouring in for gatherings and meals in D.C. Sen. Ted Cruz (R-Texas) has one scheduled for Sept. 18 at the Capital Grille, while lawmakers from Rep. Gregory Meeks (D-N.Y.) to Sen. Dan Sullivan (R-Alaska) slated fundraisers tied to Washington Nationals, Commanders, and Mystics games this month.

Lawmakers and lobbyists will squeeze in those events while figuring out how to keep the government open after Sept. 30, with defense authorization, farm bill, and House bills targeting China waiting in the wings. Expect plenty of election-year partisan squabbles. Read More

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Senate Abortion Vote is Fodder in Ayotte’s Race for NH Governor

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Biden Looks to Tie Infrastructure Cash to Pro-Union Policies

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Newly Revised Districts Will Matter for House Control

The math behind control of Congress is getting an altered equation this fall after five states revised House district lines, either because a court said they must or judges said they could.

Redistricting litigation handed both parties wins. Democrats are favored to net a seat in New York and capture new Black-majority districts in Alabama and Louisiana. But those gains could easily be offset by pro-Republican alterations in North Carolina, neutralizing any new advantage.

“When you add everything up, I think there’s one more Trump seat in the country than there was in 2022,” National Republican Redistricting Trust Executive Director Adam Kincaid said in an interview.

But there’s no such thing as a small advantage when a net difference of four could put the Democrats in charge, creating either a firewall against, or allies for, the next president’s agenda.

BGOV’s Greg Giroux offers a look at what’s different for 2024 elections and how state delegations are on track to change after re-redistricting, based on race ratings by the Cook Political Report with Amy Walter. Read More

What Else We’re Reading

Delta, Other Airline Loyalty Programs Are Being Probed by US

The rewards programs of the four largest US air carriers — Delta Air Lines Inc., American Airlines Group Inc., United Airlines Holdings Inc. and Southwest Airlines Co. — are being probed by the US Department of Transportation, the agency announced Thursday.

Tampons Face Fresh Investigations by FDA Over Toxic Metals

The US Food and Drug Administration is studying the metals found in tampons after lawmakers urged the agency to take a closer look at the products’ safety.

Supreme Court Shadow Docket Harbors War Over Biden Air Rules

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Yellen Defends Clean-Energy Bill in Battleground North Carolina

US Treasury Secretary Janet Yellen made the case to preserve one of the Biden administration’s key legislative achievements on a Thursday visit to the political battleground state of North Carolina, hailing an increase in investments in clean energy and manufacturing.

To contact the editor responsible for this story: Kayla Sharpe at ksharpe@bloombergindustry.com

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