Walmart cuts hundreds of corporate jobs after warnings of falling profits

The retail giant Walmart is laying off about 200 corporate workers, a source familiar with the situation told The Hill on Wednesday, a week after it reported inflation was affecting its overall profits. 

The layoffs come as consumer confidence dips and inflation reaches record highs.

Higher food and fuel costs are “affecting customers’ ability to spend on general merchandise categories and requiring more markdowns to move through the inventory,” the company wrote in a fiscal update last week. 

The layoffs won’t affect front-line workers, the source told The Hill, and are part of a restructuring effort the company hopes will create new jobs over time.

“We’re updating our structure and evolving select roles to provide clarity and better position the company for a strong future,” a Walmart spokesperson told The Hill on Wednesday, adding that the company is ramping up investment in arenas such as e-commerce, advertising sales, and health and wellness. 

The Wall Street Journal reported Wednesday that the corporate jobs affected include merchandising, global technology and real estate teams.

Source: TEST FEED1

Zelensky says he wants to talk about Russian invasion with China's Xi directly

Ukrainian President Volodymyr Zelensky said he wants to discuss the Russian invasion in his country with Chinese President Xi Jinping directly and said he hoped that China might “review” its attitude toward Russia in light of its invasion in Ukraine. 

“I would like to talk directly. I had one conversation with [President] Xi Jinping that was a year ago,” Zelensky said in an interview with the South China Morning Post published on Thursday.

“Since the beginning of the large-scale aggression on February 24, we have asked officially for a conversation, but we (haven’t had) any conversation with China even though I believe that would be helpful.” 

Zelensky called China a “very powerful state” and said that it had a “powerful economy,” asserting that Russia’s economy would seriously suffer should China take economic steps against Moscow over its invasion of Ukraine.

“I’m confident, I’m sure that without the Chinese market for the Russian Federation, Russia would be feeling complete economic isolation,” Zelensky told the Post. “That’s something that China can do – to limit the trade (with Russia) until the war is over.” 

China is trying to keep its sentiment regarding the Russian invasion “balanced,” Zelensky claimed, but he also suggested that the major Asian power had an obligation to do more as a permanent member of the U.N. Security Council.

“If we are operating without the legislation, then why should we have the Security Council at all, if any country … or several countries in the world, could simply decide to violate the rules militarily?” Zelensky told the publication. 

Source: TEST FEED1

Ivanka Trump and Donald Jr. deposed in New York AG probe: report

Former President Trump’s two children sat for depositions in the New York Attorney General’s probe into Trump’s business and finances, CNN reported Wednesday.

Ivanka Trump, 40, and Donald Trump Jr., 44, were subpoenaed along with their father earlier this year, and Trump’s multiple attempts to block the probe and the calls to testify have failed.

CNN reports that Trump Jr.’s deposition took place last Thursday, and Ivanka sat for hers on Wednesday. 

The depositions were initially scheduled for July 15, but New York Attorney General Letitia James (D) agreed to postpone when the former president’s first wife, Ivana Trump, passed away the day prior.

James’ office is conducting the investigation into whether the former president inflated the property value of his Trump Organization before investors and subsequently deflated them to get tax and loan benefits.

Trump has fought James’ subpoenas and attempts by her office to obtain related documents since the start of the probe, claiming that the investigation is a politically-motivated witch hunt.

The former president is expected to testify later this month, according to the new CNN report.

Source: TEST FEED1

McConnell manages midterm expectations after Trump-backed candidates win

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Senate Minority Leader Mitch McConnell (R-Ky.) is managing expectations about how many Senate seats are likely to flip in the midterm election after Trump-backed candidates who have perpetuated election fraud conspiracies advanced on Tuesday.  

McConnell previously predicted the 2022 midterms would be “very good” for Republicans, citing President Biden’s low approval rating and the historical trend of the president’s party losing seats in the middle of their first term in office.  

But the success of candidates backed by former President Trump, who have echoed his unfounded claims of widespread fraud in the 2020 election, and the erratic performance of other Senate GOP hopefuls have put a damper on expectations of a Republican tidal wave in November.  

McConnell sought to manage expectations Wednesday in an interview with Fox News’s Bret Baier when asked about the prospects of Republicans in several key races.  

“I think it’s going to be very tight. We have a 50-50 nation. And I think when this Senate race smoke clears, we’re likely to have a very, very close Senate still, with us up slightly or the Democrats up slightly,” McConnell said Wednesday evening on Fox’s “Special Report.” 

McConnell delivered his sober-sounding analysis when Baier asked him about Republican candidates such as J.D. Vance, Mehmet Oz and Herschel Walker struggling against their Democratic opponents in Ohio, Pennsylvania and Georgia, respectively, in recent polls.  

Trump endorsed all three candidates and appeared to help Vance and Oz clinch their primary victories.  

An analysis of the Ohio Senate race by FiveThirtyEight found Democratic Rep. Tim Ryan (Ohio) leading Vance by an average of 2 percentage points in recent polls.

In Pennsylvania, Democratic Lt. Gov. John Fetterman is leading celebrity doctor Oz by an average of 10 percentage points, and Sen. Raphael Warnock (D-Ga.) is leading former football star Walker by 3 percentage points.  

Two more Trump-backed candidates, investment firm executive Blake Masters and state Attorney General Eric Schmitt, won their primary races in Arizona and Missouri, respectively, on Tuesday. Both candidates have supported Trump’s claims of fraud in the 2020 election.  

Masters said last week that he would have objected to the certification of the 2020 presidential election results if he had been serving in Congress on Jan. 6, 2021, and Schmitt joined with 17 other Republican attorneys general in 2020 to overturn the election results.  

The emergence of Trump-allied candidates in key Senate races has given Democrats more hope that they can cling to their slim 50-50 majority.  

Democrats are also feeling energized by the backlash against the Supreme Court’s decision to overturn Roe v. Wade, the 1973 landmark abortion rights ruling.  

Abortion rights advocates scored a major victory Tuesday when voters in Kansas overwhelmingly rejected an amendment to remove protections for abortion rights in the state Constitution, voting 59 percent to 41 percent to keep the protections in place. 

Asked about how the court’s decision would impact Senate races in the fall, McConnell said, “I don’t think we really know until the end of the year.” 

“We’re in the process of finding that out,” he said. “There were a lot of people interested in the issue in Kansas. There’s no question about that.”  

More than 900,000 Kansans turned out to vote in Tuesday’s election, more than in any primary election since 2010, according to The Topeka Capital-Journal, a number that experts tied to interest in the abortion question.  

Source: TEST FEED1

Alex Jones's attorney 'messed up' and sent two years of texts to Sandy Hook parents' lawyers

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trial”,”image”:”https://m104216-ucdn.mp.lura.live/iupl_lin/A14/2C3/A142C38DF7F8478B272430542FCD479A.jpg?Expires=2082758400&KeyName=mcpkey1&Signature=Y3jpr7s3jxQmfZFg93IwDhRPTzs”,”token”:”eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJ2aWQiOiI3ODg0NTYyIiwiaXNzIjoicTI2MVhBbU9NZHFxUmYxcDdlQ283SVltTzFreVBtTUIiLCJleHAiOjE2NTk1ODI2Njd9.lKLDN2zP3OC3hyq3yGQLJFDuUyXakk7vD5xB2Z-RJqY”,”ad_unit_path”:””}],”duration”:5},”expectPreroll”:true,”titleVisible”:true,”pauseOnClick”:true,”trackTimePeriod”:60,”isPermutiveEnabled”:true});

The legal team for far-right conspiracy theorist Alex Jones accidentally sent two years of his phone records to the attorneys for parents of a Sandy Hook school shooting victim, cross-examination revealed Wednesday during his defamation trial. 

“Your attorneys messed up and sent me an entire digital copy of your entire cellphone with every text message you’ve sent for the past two years,” attorney Mark Bankston told Jones during a hearing to decide damages in the civil case.

“And that is how I know you lied to me when you said you didn’t have to text messages about Sandy Hook,” he added.

Jones has long touted a theory that the 2012 shooting that killed 20 children and six teachers at Sandy Hook Elementary School in Newtown, Conn., was a hoax.

He was found guilty by default in four defamation cases last year after failing to comply with court orders.

Bankston argued Wednesday that Jones lied under oath about having searched his own phone for the texts and withheld the evidence in lawsuits brought by Sandy Hook families.

Jones replied that he’d given his phone over to his team. 

“This is your Perry Mason moment,” he told Bankston, making reference to the fictional TV lawyer who often presented dramatic evidence at trial that changed the proceedings.

Bankston is part of the legal team representing Neil Heslin and Scarlett Lewis, parents of 6-year-old Sandy Hook shooting victim Jesse Lewis.

The Washington Post reported that Bankston caught Jones in a similar contradiction about related emails, showing the court copies of emails sent by Jones despite his insistence that he does not use email.

Bankston also revealed evidence indicating that Jones had not been truthful about his financial situation, perhaps in an effort to skirt the $150 million in defamation damages that the Sandy Hook parents are seeking, The New York Times reported.

Jones’s company, Free Speech Systems, filed for bankruptcy at the start of the trial — and his far-right website Infowars did the same back in April.

Jones testified Wednesday that he now acknowledges that the Sandy Hook massacre was real.

He said that meeting the victims’ parents, whom he previously called “crisis actors,” changed his mind. “It’s 100 percent real,” Jones said, according to The Associated Press. 

Despite this concession, Jones continues to defend his actions and argues that the trial violates his free speech rights.

He arrived at the courthouse last week with “Save the 1st” written on a strip of duct tape over his mouth. 

Source: TEST FEED1

DOJ sues Navarro for White House emails, accuses him of 'wrongfully retaining them'

The Justice Department is suing Peter Navarro for emails from his time as former President Trump’s trade adviser, alleging that he used at least one nonadministration email account while working in the White House and was “wrongfully retaining” communications.

“While serving in the White House, Mr. Navarro used at least one non-official email account — an account hosted by the non-official service ProtonMail — to send and receive messages constituting Presidential records,” according to court documents filed on Wednesday.

“Mr. Navarro did not copy each email or message constituting Presidential records that was sent or received on his non-official account or accounts to his official government email account,” the court documents added.

The Justice Department said in the filing that nonofficial electronic accounts used to carry out official duties are considered presidential records and therefore must be forwarded to official accounts within 20 days of sending them.

The National Archives and Records Administration is also supposed to receive those communications before the president leaves office.

The court filing alleges that Navarro did not respond to the archivist about those communications that had not been improperly handled. 

It further alleged that Navarro “refused to return any Presidential records that he retained absent a grant of immunity for the act of returning such documents” after lawyers at the Department of Justice reached out to him about the matter.

“Mr. Navarro is wrongfully retaining Presidential records that are the property of the United States, and which constitute part of the permanent historical record of the prior administration,” the filing claimed.

Attorneys for Navarro refuted the Justice Department’s claims in a statement to The Hill, saying their client did ask for his communications to be preserved.

“Mr. Navarro has never refused to provide records to the government. As detailed in our recent letter to the Archives, Mr. Navarro instructed his lawyers to preserve all such records, and he expects the government to follow standard processes in good faith to allow him to produce records. Instead, the government chose to file its lawsuit today,” Navarro’s attorneys John Irving and John Rowley said. 

The development comes two months after Navarro was indicted by a grand jury for refusing to cooperate with the House select committee investigating the Jan. 6, 2021, Capitol riot. 

Source: TEST FEED1

DeSantis says monkeypox concern overblown: 'we are not doing fear'

Florida Gov. Ron DeSantis (R) rejected growing concerns over monkeypox during a press conference Wednesday, arguing that the media and politicians were unnecessarily stoking fear about the illness.

“I am so sick of politicians, and we saw this with COVID, trying to sow fear into the population,” the Republican governor said. “We had people calling, mothers worried about whether their kids could catch it at schools.”

“We are not doing fear,” he added. “And we are not going to go out and try to rile people up and try to act like people can’t live their lives as they’ve been normally doing, because of something.”

DeSantis, who has been a vocal critic of the Biden administration’s response to COVID-19, also slammed states imposing emergency measures in regards to monkeypox.

“You see some of these states declaring ‘States of Emergency.’ They’re going to abuse those emergency powers to restrict your freedom, I guarantee you that’s what will happen,” DeSantis said.

New York Gov. Kathy Hochul (D) declared a disaster in her state last weekend over the outbreak. California Gov. Gavin Newsom and Illinois Gov. J.B. Pritzker, both Democrats, also declared states of emergency over the virus on Monday.

Rep. Charlie Crist (D-Fla.), who is running against DeSantis in the Florida gubernatorial race, criticized the governor’s comments on Twitter.

“While Governor DeSantis dismisses Monkeypox, at-risk Floridians still need better information, better testing, and access to vaccines for prevention,” Crist wrote.

The governor’s comments come as Florida has recorded 525 monkeypox cases, according to the Centers for Disease Control and Prevention (CDC). There are 6,617 confirmed cases throughout the U.S. as of Wednesday.

Source: TEST FEED1

Defense & National Security — Senate approves Sweden, Finland NATO bids

The Senate on Wednesday voted overwhelmingly to approve a resolution ratifying Sweden’s and Finland’s accession to the North Atlantic Treaty Organization, sending another signal that Congress remains unified in opposing Russian aggression toward Ukraine and Europe.   

We’ll detail the vote and the lone senator to oppose the Nordic countries’ bid to join the alliance, plus Speaker Nancy Pelosi’s (D-Calif.) message to Taiwan, the first Black four-star general in Marine Corps history and a new call for an investigation into Pentagon officials’ Jan. 6 texts that weren’t preserved. 

This is Defense & National Security, your nightly guide to the latest developments at the Pentagon, on Capitol Hill and beyond. For The Hill, I’m Ellen Mitchell. A friend forward this newsletter to you? Subscribe here.

Senate ratifies Sweden, Finland accession to NATO

The Senate on Wednesday voted 95-1 to approve a resolution ratifying Sweden’s and Finland’s accession to NATO, with every member of the Democratic caucus and most Republicans voting in support. It ratifies protocols of accession that alliance allies signed on July 5.   

The lone holdout: Sen. Josh Hawley (R-Mo.), who argued in a recent op-ed that the United States should focus on containing China instead of expanding the NATO alliance, was the only Republican to vote “no.” Sen. Rand Paul (R-Ky.) voted “present” on the resolution.   

“We cannot strengthen our deterrent posture in the Pacific if we’re sending more forces and resources to Europe to defend new allies. That’s the bottom line,” Hawley said on the floor before the vote.   

A top priority: The resolution was a top priority of Senate Republican Leader Mitch McConnell (R-Ky.), who visited Sweden and Finland in May as part of a congressional delegation that also met with Ukrainian President Volodymyr Zelensky.  

McConnell insisted the Senate ratify Sweden’s and Finland’s NATO membership before leaving for the month-long August recess.   

“There is just no question that admitting these robust democratic countries with modern economies and capable, interoperable militaries will only strengthen the most successful military alliance in human history,” McConnell said on the Senate floor.   

A mistake: He suggested that Republican colleagues who voted against expanding NATO made a mistake, arguing that standing up to Russian aggression will send a strong message to Chinese leaders.   

“Even closer cooperation with these partners will help us counter Russia and China. Their accession will make NATO stronger and America more secure,” he said.   

“If any Senator is looking for a defensible excuse to vote ‘no,’ I wish them good luck. This is a slam dunk for national security that deserves unanimous bipartisan support,” he added.   

A growing number: The Senate resolution supports Finland’s and Sweden’s decision to join NATO and calls on all NATO members to move quickly to complete the ratification process.   

The U.S. would be the 20th of 30 NATO countries to ratify the two nations’ entry. 

Strengthened resolve: Lawmakers say the Senate vote is the latest example of how Russian President Vladimir Putin’s invasion of Ukraine has strengthened the resolve of NATO members. They say that Putin wrongly thought he would divide Western allies. 

“Enlarging NATO is exactly the opposite of what Putin envisioned when he ordered his tanks to invade Ukraine. Indeed, he may have been trying to test the resolve of the alliance, and I am pleased that we have passed that test with overwhelming unity of vision and purpose,” said Senate Foreign Relations Committee Chairman Robert Menendez (D-N.J.).   

Meanwhile, in the House: The House voted 394-18 last month for a companion resolution to express support for Finland and Sweden joining NATO. The 18 “no” votes were all Republicans.  

Read the full story here 

More from The Hill

Pelosi: US will not abandon Taiwan 

Speaker Nancy Pelosi (D-Calif.) gave a forceful defense of Taiwan on Wednesday following her meeting with Taiwanese President Tsai Ing-wen. 

“Our delegation came here to send an unequivocal message: America stands with Taiwan,” Pelosi said at a press conference. 

A major visit: Pelosi on Tuesday became the highest-ranking U.S. official to set foot in Taiwan in 25 years, angering Beijing, which views the self-governing, democratic island as part of its territory. 

No backing down: At the press conference, Pelosi said she respected the “One China” policy and the Taiwan Relations Act, which commits the United States to supporting Taiwan without a promise of direct engagement if China invades. 

“We want Taiwan to always have freedom with security,” Pelosi said. “And we’re not backing away from that.” 

Militaries scramble: Her trip has prompted a flurry of U.S. military activity in the region, and China has reportedly responded by placing two of its own aircraft carriers in the South China Sea and flying its planes near the median line dividing the Taiwan Strait from the sea. 

When asked about Beijing’s military activity surrounding her visit, Pelosi downplayed its importance. 

“There are certain insecurities on the part of the president of China as to his own political situation that he’s rattling a saber, I don’t know,” Pelosi said. 

A personal trip: The trip to Taiwan is deeply personal for Pelosi, who has long rallied against Chinese human rights issues that stretch back decades.  

“That’s one of the purposes of our trip: to show the world the success of the people of Taiwan,” Pelosi said. “Their courage to change their own country to become more democratic.” 

Read more here 

TAIWAN: CHINESE WAR DRILLS VIOLATE ISLAND’S SOVEREIGNTY  

Taiwan’s Ministry of National Defense on Wednesday condemned China’s plans to conduct live-fire drills following Pelosi’s visit to the island, saying the move violates Taiwan’s sovereignty. 

Beijing on Tuesday announced it would conduct military exercises, including live-fire drills, in six maritime regions and their air space off the coast of Taiwan between Thursday and Sunday local time, just days after Pelosi’s trip. 

‘Military intimidation’: Taiwan’s defense ministry called the move from China a threat to Taiwan’s ports and urban areas and described it as “military intimidation” by the Chinese Communist Party in a release on Wednesday

“The reckless behavior by Communist China of conducting live-fire drills in waters and skies close to Taiwan, some of which are in the neighboring waters of Taiwan, threatens international aviation routes, challenges the international order, damages the status quo in the Taiwan Strait and destroys regional security,” Sun Li-fang, spokesperson for Taiwan’s defense ministry, said at a press conference on Wednesday

He added that the exercises will not help Beijing’s “national image,” while another Taiwanese defense official argued the drills go against the rules of the United Nations. 

Read that story here 

Also from The Hill

Marine Corps gets its first Black four-star general

The Senate confirmed Marine Corps Lt. Gen. Michael Langley to command U.S. forces in Africa on Monday, making him the first Black four-star general in the Marine Corps’ history.  

The Marines said in a release that Langley will serve as the commander of U.S. Africa Command in Stuttgart, Germany. He has commanded Marines at every level from platoon to regiment and has served in Japan and Afghanistan. 

Langley’s credentials: The release states that Langley attended the University of Texas at Arlington and the U.S. Marine Corps Amphibious Warfare School and College of Naval Command and Staff. He also holds a master’s degree in national security strategic studies from the U.S. Naval War College and a degree in strategic studies from the U.S. Army War College.  

He was commissioned as a second lieutenant as an artillery officer in 1985, according to the release.  

President Biden nominated Langley in June. 

Read the story here 

Durbin calls on watchdog to probe ‘wiped’ texts

Senate Judiciary Chair Dick Durbin (D-Ill.) is calling for an investigation following news that the texts for top Department of Defense (DOD) officials were not preserved, losing their communications on Jan. 6.  

American Oversight, a group that had sued for the texts following a public records request, disclosed that DOD notified them in March that it “wiped” the phones of former acting Defense Secretary Chris Miller and former Army Secretary Ryan McCarthy in the days after the attack on the Capitol. 

The concern: “The disappearance of this critical information could jeopardize efforts to learn the full truth about Jan. 6. I don’t know whether the failure to preserve these critical government texts from Jan. 6 is the result of bad faith, stunning incompetence, or outdated records management policies, but we must get to the bottom of it,” Durbin said, noting that he would ask DOD’s Office of Inspector General (OIG) to investigate the matter. 

Earlier: The disclosure follows news that numerous officials at the Department of Homeland Security (DHS) also had their messages erased during the transition, including former acting Secretary Chad Wolf and his deputy Ken Cuccinelli. Both had their phones reset following the inauguration, losing any texts from Jan. 6 in the process. 

DOD provided a similar explanation. 

“DOD and Army conveyed to Plaintiff that when an employee separates from DOD or Army he or she turns in the government-issued phone, and the phone is wiped. For those custodians no longer with the agency, the text messages were not preserved and therefore could not be searched,” the agencies wrote in a March court filing. 

Why it matters: The effort to obtain Pentagon texts could have shed light on why the National Guard faced delays in getting approval to go to the Capitol as it was under siege. 

The suit sought the military leaders’ communications with former President Trump, former Vice President Mike Pence and Trump’s chief of staff Mark Meadows. The request also asked for communications from Kash Patel, Miller’s chief of staff; Paul Ney, the Defense Department general counsel; and James E. McPherson, the Army’s general counsel. 

Read the full story here.

ON TAP FOR TOMORROW

  • The Center for Strategic and International Studies will hold a virtual discussion on “Toward a Fourth Taiwan Strait Crisis?” at 9 a.m.  
  • The Mitchell Institute for Aerospace Studies will host a virtual talk on “National Reconnaissance Office (NRO), United States Space Force and U.S. Space Command collaboration, current threats, and space acquisitions,” with National Reconnaissance Office Director Christopher Scolese, at 10 a.m.   
  • A Senate Foreign Relations subcommittee will hold a hearing on China’s role in the Middle East at 10:30 a.m.   
  • The Institute for Policy Studies will host a virtual book discussion on “Whatever Happened to the Peace Dividend, and Can We Get One Back?” at 12:30 p.m.  
  • The Heritage Foundation will hold a discussion on “A Matter of Survival: The Future of Taiwan Arms Sales,” at 2 p.m. 

WHAT WE’RE READING

That’s it for today! Check out The Hill’s Defense and National Security pages for the latest coverage. See you tomorrow!

VIEW FULL VERSION HERE

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Ron Johnson suggests Medicare, Social Security be approved on annual basis

Sen. Ron Johnson (R-Wis.) said Wednesday that Social Security and Medicare should be up for congressional approval each year, instead of staying under their current status as federal entitlement programs.

“Social Security and Medicare, if you qualify for the entitlement, you just get it no matter what the cost,” Johnson said in an interview that aired Tuesday on “The Regular Joe Show” podcast.

The Wisconsin senator, who is up for reelection in a highly-contested race this fall that will help determine which party holds the majority next year, argued that the mandatory spending status of funding for the federal programs should be switched to discretionary spending, “so it’s all evaluated.”

“Our problem in this country is that more than 70 percent of our federal budget, of our federal spending, is all mandatory spending. It’s on automatic pilot. It never — you just don’t do proper oversight. You don’t get in there and fix the programs going bankrupt. It’s just on automatic pilot,” Johnson said.

“As long as things are on automatic pilot, we just continue to pile up debt.”

He argued that funding for the programs should instead come before Congress for annual approval.

The Hill has reached out to Johnson’s office for comment.

Social Security benefits are available to U.S. retirees and Medicare health insurance is available to citizens who are over the age of 65 or disabled. American workers’ taxes fund the programs, with workers paying into the federal programs. In the case of Social Security, benefits are linked in part to one’s earnings, which help determine a monthly payment.

Democrats quickly pounced on Johnson’s remarks, suggesting the majority party thinks they could hurt Johnson in his reelection bid.

Senate Majority Leader Charles Schumer (D-N.Y.) said Johnson’s comments showed that the programs could be cut by Republicans.

“They’re saying the quiet part out loud. MAGA Republicans want to put Social Security and Medicare on the chopping block,” Schumer wrote, referring to the Trump campaign slogan Make American Great Again.

Source: TEST FEED1

On The Money — All eyes on Sinema with Biden plan in the balance

The biggest suspense story in Washington, D.C., has everything to do with a certain senator from Arizona. We’ll also look at the budget impact of the Schumer-Manchin deal and hard times for renters 

But first, the Senate has voted to expand NATO. 

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan LaneAris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.

Sinema leaves Democrats in suspense

Sen. Kyrsten Sinema (D-Ariz.) has Democrats and Republicans on the edge of their seats. 

With the clock ticking down to the August recess, Senate Majority Leader Charles Schumer (D-N.Y.) desperately wants to pass a bill that would tackle climate change and make significant changes to the tax code. But Schumer doesn’t have the votes — at least not yet. 

  • Schumer says he’s working on Sinema and hopes she’ll be a “yes” on the motion to proceed to the measure, but the Arizona centrist hasn’t said whether she backs it.  
  • Seven days later after the bill was introduced, Senate Democrats still don’t know where Sinema stands. Her office says she is reviewing the legislation and waiting for the Senate parliamentarian’s review of the text.  
  • That means senators may not know how Sinema will vote until they bring the more than 700-page bill to the floor on Thursday or Friday.  

The Hill’s Alexander Bolton has more here

Read more: GOP targets Sinema while going all out to block Democratic bill

LORD HAVE MERCY 

How landlords are evading taxes and fueling the housing crisis 

Opaque ownership laws that make it easier for property owners to avoid paying taxes are compounding a national housing crisis fueled by inflation and a shortage of low- and moderate-income homes.   

  • Limited liability companies — or LLCs — are a common way for landlords to own the real estate on which they can charge rents.  
  • But LLCs often hide the identities of the people that stand behind them, allowing property owners to be shielded from legal consequences when they fail to pay their property taxes.   

Properties can then go into tax foreclosure and be effectively taken off the market in cities where housing is in short supply, further driving up prices and forcing renters to live far away from where they work.  

Studies have “linked LLC ownership to property disinvestment, tax abandonment, even completely walking away from properties,” Princeton sociology professor Matthew Desmond told the Senate Banking, Housing and Urban Affairs Committee on Tuesday.   

“One of the landlords I spent time with in Milwaukee, I asked her, ‘What happened to this house that I spent a lot of time with?’ And she said, ‘I just gave it back to the city.’ And what she meant was, she just stopped paying taxes on it and let it go into tax foreclosure,” Desmond said.  

The Hill’s Tobias Burns has more here. 

BIDEN ON A BUDGET 

Democrats’ plan would decrease deficit by more than $100B: CBO 

The Congressional Budget Office (CBO) on Wednesday released estimates for Democrats’ sprawling reconciliation plan, forecasting the legislation would lead to a net deficit decrease of more than $100 billion over roughly the next decade, far less than had been initially projected. 

The estimates from the nonpartisan budget scorekeeper come as Democrats are moving quickly to pass the mammoth bill, dubbed the Inflation Reduction Act, later this week. 

The CBO’s estimates projected the tax, healthcare and climate plan would reduce the deficit between 2022-2031 by more than $101 billion. 

Here’s more from The Hill’s Aris Folley. 

Good to Know

Industry lobbying could imperil a comprehensive privacy bill that would fundamentally shift the way companies collect user data online.   

Since its introduction in June, the American Data Privacy and Protection Act has been one of the most lobbied bills in Congress, drawing attention from more than
180 corporate clients, including Amazon, Disney and Target, according to data from research group OpenSecrets.  

Here’s what else we have our eye on: 

  • The West Virginia Coal Association and several other state-based coal industry groups on Wednesday blasted the tax and climate deal that Sen. Joe Manchin (D-W.Va.) agreed to last week, warning it will “severely threaten American coal” and an estimated 381,000 jobs.   
  • The Department of Transportation proposed a new rule on Wednesday that clarifies when airlines owe passengers refunds as part of an effort to strengthen refund enforcement.  

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow. 

VIEW FULL VERSION HERE

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