On The Money: Mnuchin urges Congress to raise debt limit 'as soon as possible' | NY officials subpoena Trump Org's longtime insurer | Dems offer bill to tax financial transactions

On The Money: Mnuchin urges Congress to raise debt limit 'as soon as possible' | NY officials subpoena Trump Org's longtime insurer | Dems offer bill to tax financial transactions
© Getty Images

Happy Tuesday and welcome back to On The Money. 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.

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

 

THE BIG DEAL--Mnuchin asks Congress to raise debt ceiling 'as soon as possible'   Treasury Secretary Steven MnuchinSteven Terner MnuchinThe Hill's Morning Report - Trump says no legislation until Dems end probes Democrats seize on IRS memo in Trump tax battle No agreement on budget caps in sight ahead of Memorial Day recess MORE is urging congressional leaders to raise the federal debt limit "as soon as possible" as the department begins accounting maneuvers to prevent a default.

ADVERTISEMENT

Mnuchin wrote in a March 4 letter to top lawmakers that the Treasury Department had begun a "debt issuance suspension period" to avoid missing a debt payment, and asked for swift action to raise the cap on federal debt.

"I respectfully urge Congress to protect the full faith and credit of the United States by acting to increase the statutory debt limit as soon as possible," Mnuchin wrote to Speaker Nancy PelosiNancy Patricia D'Alesandro PelosiThe Hill's Morning Report - Trump says no legislation until Dems end probes Threat of impeachment takes oxygen out of 2019 agenda Trump denies 'tantrum' in meeting with Pelosi: 'It is all such a lie!' MORE (D-Calif.) and seven other congressional leaders. I've got more here on Mnuchin's request and what it means.

 

The backdrop:

 

The state of play: Members of both parties are eager to prevent the U.S. from defaulting on its debt, which could trigger a global economic meltdown. Even so, it's unclear how party leaders plan to raise the debt ceiling and whether it will be entangled in testy government funding negotiations.

 

ON TAP TOMORROW

 

LEADING THE DAY

New York state officials subpoena Trump Org's longtime insurance broker: State officials in New York have subpoenaed the longtime insurer for the Trump Organization, Aon, over claims that the Trump Organization and President Trump himself were involved in efforts to inflate the company's assets for insurance purposes.

The New York Times reports that Aon received a subpoena Monday, a sign of a state investigation into Trump's business ties.

The New York State Department of Financial Services, which has no prosecutorial power of its own but can refer potential instances of illegality to state attorneys, is reportedly overseeing the investigation.

The Trump Organization did not immediately return a request for comment from The Hill.

 

Dems offer legislation to tax financial transactions: Democrats on Tuesday introduced legislation in the House and Senate to tax financial transactions, as lawmakers in the party examine various ways to raise more revenue.

Legislation was introduced in the House by Rep. Peter DeFazioPeter Anthony DeFazioThe Hill's Morning Report - Presented by Pass USMCA Coalition - Deadline approaches for 2020 Dems Dems eye big infrastructure package, with or without Trump Dems, Trump pull T surprise on infrastructure MORE (D-Ore.), who has offered similar bills in the past, and in the upper chamber by Sen. Brian SchatzBrian Emanuel SchatzOvernight Defense: Trump officials say efforts to deter Iran are working | Trump taps new Air Force secretary | House panel passes defense bill that limits border wall funds Bullock: Running for Senate 'never really got me excited' Cruz asks Trump FAA pick to 'be pissed off' about Boeing crash deaths MORE (D-Hawaii).

The House bill has the backing of a number of members of the Congressional Progressive Caucus, including the group's co-chairs, Reps. Mark PocanMark William PocanDemocrats seize on IRS memo in Trump tax battle The Memo: Trump allies see impeachment push backfiring on Democrats House Democrats press leaders to start Trump impeachment MORE (D-Wis.) and Pramila JayapalPramila JayapalHouse Democrat: Seattle airport's ban on ICE detainee flights helps 'hold a lawless administration accountable' The Hill's Morning Report - Pelosi remains firm despite new impeachment push WHIP LIST: Democrats who support an impeachment inquiry against President Trump MORE (D-Wash.), and prominent freshman Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezOcasio-Cortez makes endorsement for Queens district attorney Lawmakers call for 'time out' on facial recognition tech Markey releases infrastructure suggestions that align with Green New Deal goals MORE (D-N.Y.).

Under the legislation, sales of stocks, bonds and derivatives would be taxed at a rate of 0.1 percent. The tax would apply to sales made in the U.S. or by U.S. persons, and initial securities issuances and short-term debt would be exempt. The Joint Committee on Taxation has estimated that a similar tax would raise $777 billion over 10 years. The Hill's Naomi Jagoda breaks it down here.

 

GOOD TO KNOW

 

ODDS AND ENDS