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Overnight Finance: GOP chair floats phasing in border tax | Treasury offers first proposal to roll back Dodd-Frank | Mnuchin's idea of a 'good shutdown'

Overnight Finance: GOP chair floats phasing in border tax | Treasury offers first proposal to roll back Dodd-Frank | Mnuchin's idea of a 'good shutdown'
© Greg Nash

GOP chairman suggests phasing in border tax: House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyOvernight Health Care — Presented by the Coalition for Affordable Prescription Drugs — Some ObamaCare premiums to decrease next year | Sanders hits back at Trump over 'Medicare for all' | Panel to investigate rising maternal mortality rates House committee to investigate rising maternal mortality rates How the Trump tax law passed: The final stretch MORE (R-Texas) on Tuesday said that the GOP border-adjustment proposal could be phased in over five years, as concerns about the tax plan mount from lawmakers and business groups.

"My current thinking on border adjustment -- after listening to our businesses large and small and our members -- is a very gradual five-year transition," Brady said at The Wall Street Journal-CFO Network annual meeting.

The border-adjustment proposal was a key part of the tax plan House Republicans released last year. Under the proposal, imports would be subject to U.S. taxes and exports would be exempt.

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Brady has argued that the proposal, championed by House Speaker Paul RyanPaul Davis RyanElection Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout Will the Federal Reserve make a mistake by shifting to inflation? Sanders: Democrats ‘absolutely’ have chance to win back rural America  MORE (R-Wis.), is the best way to prevent companies from moving their jobs and headquarters overseas.

But retailers, Trump administration officials, conservative groups and many GOP lawmakers worry it would amount to a tax increase for consumers. The Hill's Naomi Jagoda reports: http://bit.ly/2rfeXkh.

 

Treasury releases first proposal to roll back Dodd-Frank: The Treasury Department on Monday proposed several changes to Obama-era banking regulations, the first specifics on how President TrumpDonald John TrumpTrump to fundraise for 3 Republicans running for open seats: report Trump to nominate former Monsanto exec to top Interior position White House aides hadn’t heard of Trump's new tax cut: report MORE would try to "dismantle" the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Treasury's proposal includes dozens of recommendations ranging from legislative fixes to be adapted by Congress to ways regulators could loosen rules on banks with the hopes of boosting economic growth. 

"Properly structuring regulation of the U.S. financial system is critical to achieve the administration's goal of sustained economic growth and to create opportunities for all Americans to benefit from a stronger economy," said Treasury Secretary Steven Mnuchin. "We are focused on encouraging a market environment where consumers have more choices, access to capital and safe loan products -- while ensuring taxpayer-funded bailouts are truly a thing of the past." 

Trump had long promised to "dismantle" Dodd-Frank without providing details on what he'd like to change. The Monday report contains the first proposals offered by the administration on how to reshape financial regulation. I break them down here: http://bit.ly/2reYm02.

 

Mnuchin talks 'good shutdown': Treasury Secretary Steve Mnuchin said Tuesday that there could be good reasons for shutting down the government, echoing a statement President Trump made in a Tweet in May.

Mnuchin was asked a direct question about Trump's tweet earlier this year that "Our country needs a good 'shutdown' in September to fix mess!'"

Trump made the remarks after a spending deal was reached to fund the government through September. Many outside observers wrote that Democrats got the better of Trump in that negotiation. Republicans had feared they would be blamed for a shutdown.

"It's an unfortunate outcome," Mnuchin said when Sen. Tim KaineTimothy (Tim) Michael KaineAmerica’s ball cap industry is in trouble Overnight Defense: Trump says 'rogue killers' could be behind missing journalist | Sends Pompeo to meet Saudi king | Saudis may claim Khashoggi killed by accident | Ex-VA chief talks White House 'chaos' | Most F-35s cleared for flight Democrats torch Trump for floating 'rogue killers' to blame for missing journalist MORE (D-Va.) asked what a good shutdown would comprise during a Senate Budget Committee hearing on Tuesday.

"At times there could be a good shutdown, at times there may not be a good shutdown," Mnuchin said. "There could be reasons at various times why that is the right outcome." The Hill's Niv Elis explains: http://bit.ly/2reOGCr.

 

More Mnuchin: Treasury Secretary Steven Mnuchin and liberal Vermont Senator Bernie SandersBernard (Bernie) SandersHarris presses young people to vote early in Iowa trip Dems lower expectations for 'blue wave' Election Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout MORE (I) engaged in a testy exchange over President Donald Trump's campaign promise to enact a "21st Century Glass-Steagall Act," a financial regulation separating commercial and investment banking.

Our Niv Elis has the exchange here: http://bit.ly/2slnkOA

 

Happy Tuesday and welcome to Overnight Finance. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

Pelosi blasts start of appropriations: Congressional appropriators will kick off their process of marking up spending bills Monday evening, despite not having a top-line budget number to guide their spending.

Normally, appropriators start marking up spending bills after the passage of a budget resolution, which sets the amounts appropriators divvy up to various programs.

When the House appropriations subcommittee on Military Construction takes up the bill on Military Construction and Veterans Affairs Appropriations Monday at 7 p.m., it will be working to distribute portions of a budget without knowing how big that overall budget is.

House Minority Leader Nancy Pelosi (D-Calif.) on Monday said the process was "irresponsible."

"Instead of working constructively, Republicans' markup is just pushing us deeper into the destructive uncertainty and chaos over the budget. Marking up one discretionary bill without any sense of the whole is irresponsible and counterproductive," Pelosi said: http://bit.ly/2rfdx9c.

 

Dem hits Treasury secretary over tax breaks for the rich: The top Democrat on the Senate Finance Committee on Tuesday accused Treasury Secretary Steve Mnuchin of reneging on a past promise that the Trump administration's tax reform proposal would not include an absolute tax cut for the wealthy, warning that such a backtrack would stifle a bipartisan deal.

"We will not get bipartisan tax reform when the secretary of Treasury walks back a pledge to have no absolute tax cuts for the wealthy," Sen. Ron WydenRonald (Ron) Lee WydenOvernight Health Care — Presented by Purdue Pharma — Trump says GOP will support pre-existing condition protections | McConnell defends ObamaCare lawsuit | Dems raise new questions for HHS on child separations Republicans should prepare for Nancy Pelosi to wield the gavel US to open trade talks with Japan, EU, UK MORE (D-Ore.) said during a Finance panel hearing. 

Mnuchin said Monday during the hearing that while the administration hoped to avoid a tax cut for the wealthy, doing so would not be the paramount rule of tax reform efforts: http://bit.ly/2rf50mF.

 

Verizon completes Yahoo purchase; Marissa Mayer resigns: Verizon has completed its $4.48 billion purchase of Yahoo on Tuesday, and Marissa Mayer, the website's CEO, resigned.

Verizon will be combining its portions of the Yahoo business with its AOL subsidiary to create a new entity called Oath.

Oath will comprise the Huffington Post, Yahoo Sports, AOL, Tumblr, Yahoo Finance, Yahoo Mail and other brands. The remainder of the Yahoo business will be rebranded as Altaba.

Former AOL CEO Tim Armstrong will head the new subsidiary: http://bit.ly/2rf2ixF.

 

Koch-backed group expands tax ads: Americans for Prosperity (AFP) on Tuesday announced that it is expanding its six-figure ad campaign on tax reform to target senators in addition to members of the House.

The group, which is tied to the wealthy GOP donors Charles and David Koch, launched ads earlier this month that are focused on members of the House Ways and Means Committee. Now, AFP said it is launching digital ads urging senators to "fix our broken tax code."

The ads will target about 10 senators, including Democrats Claire McCaskillClaire Conner McCaskillDemocrats slide in battle for Senate Overnight Health Care — Presented by Purdue Pharma —Senate debates highlight fight over pre-existing conditions | Support grows for Utah Medicaid expansion measure | Arkansas health official defends work requirements McCaskill campaign says ‘intern’ who filmed campaign had access to voter data MORE (Mo.), Sherrod BrownSherrod Campbell BrownOn The Money: Deficit hits six-year high of 9 billion | Yellen says Trump attacks threaten Fed | Affordable housing set for spotlight in 2020 race Lawmakers, Wall Street shrug off Trump's escalating Fed attacks The Hill's Morning Report — Presented by PhRMA — Dem victories in `18 will not calm party turbulence MORE (Ohio) and Bill NelsonClarence (Bill) William NelsonElection Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout Poll: Nelson leads Scott by 6 points in Florida Senate race Poll: Nelson tied with Scott in Florida Senate race MORE (Fla.). All three serve on the tax-writing Senate Finance Committee and are up for re-election in 2018 in states that President Trump won.

AFP and other groups in the Koch network are calling on lawmakers to pass tax-reform legislation that follows five principles: simplicity, efficiency, equitability, predictability and no new burdens on taxpayers. They oppose the border adjustment tax proposal in the House Republicans' tax plan. Here's more from Naomi Jagoda: http://bit.ly/2reQN9A.

 

Senate rejects effort to block Saudi arms sale: The Senate on Tuesday narrowly rejected an effort to block part of President Trump's $110 billion arms sale to Saudi Arabia. 

Senators voted 47-53 on advancing the resolution, falling short of the simple majority needed to move forward. GOP Sens. Mike LeeMichael (Mike) Shumway LeeCongress raises pressure on Saudi Arabia Senators pledge action on Saudi journalist’s disappearance Bernie Sanders: US should pull out of war in Yemen if Saudis killed journalist MORE (Utah), Rand PaulRandal (Rand) Howard PaulPaul to Saudi government: 'It takes a lot of damn gall' to lecture US Congress raises pressure on Saudi Arabia The Hill's 12:30 Report — Trump says he is cutting foreign aid over caravan | Lawmakers point fingers at Saudi crown prince | DNC chair downplays 'blue wave' talk MORE (Ky.) Todd YoungTodd Christopher YoungMnuchin pulls out of Saudi conference On The Money: Treasury official charged with leaking info on ex-Trump advisers | Trump to seek 5 percent budget cut from Cabinet members | Mnuchin to decide by Thursday on attending Saudi conference Mnuchin to decide by Thursday whether to attend Saudi conference MORE (Ind.) and Dean HellerDean Arthur HellerGOP-affiliated voters outperforming Democrats in key states’ early voting: report Democrats slide in battle for Senate Biden: American values being 'shredded' under Trump MORE (Nev.) voted with most Democrats to advance it.

Democratic Sens. Joe DonnellyJoseph (Joe) Simon DonnellyDemocrats slide in battle for Senate Conservatives bankrolled and dominated Kavanaugh confirmation media campaign Donnelly parodies 'Veep' in new campaign ad MORE (Ind.), Claire McCaskill (Mo.), Bill Nelson (Fla.), Joe ManchinJoseph (Joe) ManchinElection Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout The Hill's Morning Report — Presented by PhRMA — Early ballots pouring in with 15 days to the midterms Manchin wrestles with progressive backlash in West Virginia MORE (W.Va.) and Mark WarnerMark Robert WarnerDems can use subpoena power to reclaim the mantle of populism Is there a difference between good and bad online election targeting? Collusion judgment looms for key Senate panel MORE (Va.) voted against moving the measure.

The motion faced an uphill climb in the Senate, despite growing concerns about Saudi Arabia's involvement in Yemen's civil war.

Top Republicans, including Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellElection Countdown: Takeaways from heated Florida governor's debate | DNC chief pushes back on 'blue wave' talk | Manchin faces progressive backlash | Trump heads to Houston rally | Obama in Las Vegas | Signs of huge midterm turnout Sanders: Democrats ‘absolutely’ have chance to win back rural America  Trump privately ready to blame Ryan and McConnell if Republicans lose midterms: report MORE (R-Ky.), signaled ahead of the vote that they were opposed to the motion, arguing that reneging on the arms agreement would undercut a key U.S. ally. The Hill's Jordain Carney has more here: http://bit.ly/2rYg8r7

 

Uber CEO taking leave of absence: Travis Kalanick will be taking an indefinite leave of absence from his post as CEO of Uber, he told employees in an email Tuesday.

"For the last eight years my life has always been about Uber," Kalanick wrote in the email, which was sent to reporters by a spokeswoman.

"Recent events have brought home for me that people are more important than work, and that I need to take some time off of the day-to-day to grieve my mother, whom I buried on Friday, to reflect, to work on myself, and to focus on building out a world-class leadership team.

Kalanick's decision to step down comes as the company undergoes massive changes and amid reports that Uber's board was considering suspending the embattled CEO. The company is struggling to deal with allegations of widespread sexual harassment, one of a number of controversies and missteps that have dogged the company in recent months. The Hill's tech team, Harper Neidig and Ali Breland, have more here: http://bit.ly/2rXYiV8

 

Write us with tips, suggestions and news: slane@thehill.comvneedham@thehill.comnjagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill@NJagoda and @NivElis