On The Money: Lawmakers hammer Zuckerberg over Facebook controversies | GOP chair expects another funding stopgap | Senate rejects Dem measure on SALT deduction cap workarounds

On The Money: Lawmakers hammer Zuckerberg over Facebook controversies | GOP chair expects another funding stopgap | Senate rejects Dem measure on SALT deduction cap workarounds
© Aaron Schwartz

Happy Wednesday 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.

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THE BIG DEAL-- Libra in limbo as lawmakers hammer Zuckerberg over Facebook controversies: Facebook CEO Mark ZuckerbergMark Elliot ZuckerbergZuckerberg, Gates team up to contribute M for research into coronavirus treatments Health experts embrace social media to fight coronavirus Hillicon Valley: Facebook launches portal for coronavirus information | EU sees spike in Russian misinformation on outbreak | Senate Dem bill would encourage mail-in voting | Lawmakers question safety of Google virus website MORE on Wednesday fielded sharp criticism and tough questions about nearly all aspects of his company's business practices at a hearing about Facebook's new cryptocurrency project Libra.

The aggressive questioning underlined how difficult it will be for the Libra project to move past the baggage of Facebook's various controversies, which have angered lawmakers on both sides of the aisle.  

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During the House Financial Services Committee hearing, Zuckerberg found some allies in Republican lawmakers who praised the tech executive's "entrepreneurial spirit" and the "innovation" of the Libra coin.

But over the course of the day, Republicans and Democrats alike pummeled Zuckerberg over Facebook-related issues, including:

  • The continued presence of hate groups on the platform, 
  • The company's struggles to stave off foreign election interference, 
  • Its policies on disinformation, 
  • How the company treats its content moderators,
  • And why it hopes to move into the financial services space when it is already facing intensifying scrutiny of its market dominance.

"You have opened up a serious discussion about whether Facebook should be broken up," said Rep. Maxine WatersMaxine Moore WatersDemocrats eye additional relief checks for coronavirus Lawmakers shame ex-Wells Fargo directors for failing to reboot bank The Hill's Morning Report - Biden delivers another devastating blow to Sanders MORE (D-Calif.), chairwoman of the House Financial Services Committee.

The Hill's Emily Birnbaum and I take you there.

 

How Zuckerberg handled the heat: 

  • Zuckerberg remained serious and reserved throughout the six-hour hearing, and even seemed aggravated during particularly rough lines of questioning as the day wore on. 
  • Zuckerberg offered a staunch defense of the controversial cryptocurrency project, which has faced skepticism and pushback from regulators around the world since Facebook announced its plans over the summer. He said the cryptocurrency project could help bring financial services into the hands of billions of people worldwide.

"We've faced a lot of issues over the past few years," Zuckerberg conceded. "I'm sure there are a lot of people who wish it was anyone but Facebook who is helping to put this forward." 

"But there's a reason we care about this," he continued. "Facebook is about putting power in peoples' hands."

 

Reactions:

  • "I think we should advance. I think we should seek innovation. I'm not opposed to some of the things that you're trying to do," said Rep. Barry Loudermilk (R-Ga.). "I'm gravely, gravely concerned about the implications they may have."
  • "I actually don't know if Libra is actually going to work," Zuckerberg said. 

 

And to recap the hearing, check out our live blog on Zuckerberg's testimony

 

ON TAP TOMORROW:

 

LEADING THE DAY

GOP chairman expects another funding stopgap, potentially through March: Senate Appropriations Chairman Richard ShelbyRichard Craig ShelbyCoronavirus bill includes more than billion in SNAP funding White House billion emergency request balloons to 2 billion in Senate coronavirus stimulus talks Five sticking points to a T coronavirus deal MORE (R-Ala.) on Wednesday said that deadlock over spending negotiations would likely require Congress to pass a new funding stopgap measure, called a continuing resolution, to prevent a shutdown after Nov. 21.

"Unless a miracle happens around here with the House and Senate, we will have to put forth another CR," Shelby said.  

  • While the House has passed 10 of its 12 annual spending bills, the Senate has not yet succeeded in passing a single funding bill, largely due to disagreements over Trump's proposed border wall.
  • On Tuesday, the Senate introduced a package of four smaller, non-controversial spending bills and is expected to begin the process of voting on amendments next week.

Unlike the eight-week stopgap that extended funding past the start of the fiscal year on Oct. 1, Shelby said that rumors of a longer CR into February or March were "probably in the ballpark."

The Hill's Niv Elis explains why here.

 

Senate rejects Dem measure on SALT workarounds: The Senate on Wednesday rejected a Democratic effort to overturn IRS regulations blocking workarounds to a portion of President TrumpDonald John TrumpHealth insurers Cigna, Humana waive out-of-pocket costs for coronavirus treatment Puerto Rico needs more federal help to combat COVID-19 Fauci says April 30 extension is 'a wise and prudent decision' MORE's tax law that is disliked by high-tax states.

The Senate voted against the Democrats' resolution, introduced by Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerJoe Biden can't lead the charge from his home in Delaware Texas man arrested for allegedly threatening Democrats over coronavirus bill Pelosi not invited by Trump to White House coronavirus relief bill's signing MORE (D-N.Y.), by a vote of 43-52. It was a mostly party-line vote, with Sen. Michael BennetMichael Farrand BennetDemocrats eye additional relief checks for coronavirus Hillicon Valley: Facebook launches portal for coronavirus information | EU sees spike in Russian misinformation on outbreak | Senate Dem bill would encourage mail-in voting | Lawmakers question safety of Google virus website We need a massive economic response to counter the threat of the coronavirus MORE (Colo.), a 2020 presidential candidate, the only Democrat to vote against the resolution and Sen. Rand PaulRandal (Rand) Howard PaulCapitol Police officer tests positive for coronavirus Coronavirus in Congress: Lawmakers who have tested positive Pennsylvania congressman tests positive for coronavirus MORE (Ky.) the only Republican to vote in favor.

While Democrats' effort was unsuccessful, it is notable because it's the first time they forced a vote to overturn IRS rules relating to Trump's tax law. The vote highlights how Democrats from high-tax states -- such as New York, New Jersey and California -- view the tax law's cap on the state and local tax (SALT) deduction as a top priority and the challenges they face in doing away with it.

"As bad as the Trump tax bill is for the whole country, it's even worse for states like New Jersey," Sen. Bob MenendezRobert (Bob) MenendezHillicon Valley: Facebook launches portal for coronavirus information | EU sees spike in Russian misinformation on outbreak | Senate Dem bill would encourage mail-in voting | Lawmakers question safety of Google virus website Democratic senators press Google over privacy of coronavirus screening site Menendez calls for 'Marie Yovanovitch bill' to protect foreign service employees MORE (D-N.J.) said on the Senate floor ahead of the vote.

The details: The tax law Trump signed in December 2017 imposed a cap on the SALT deduction of $10,000.

Republicans capped the deduction in order to raise revenue to pay for tax cuts elsewhere in the law, and because they viewed the deduction as subsidizing higher state taxes. They have noted that analysts have estimated that most people got a tax cut for 2018 under Trump's law, even in high-tax states.

But efforts to repeal the SALT deduction cap have also faced criticism among progressives, because analysts across the ideological spectrum have estimated that repealing the SALT deduction cap would primarily benefit high-income taxpayers.

The Hill's Naomi Jagoda has more on the vote and the complicated politics here.

 

House committee advances measure taxing nicotine in vaping products: The House Ways and Means Committee approved legislation Wednesday that would impose a federal tax on the nicotine used in liquid vaping products.

The panel approved the measure in a mostly party-line vote of 24 to 15, with Rep. Lloyd DoggettLloyd Alton DoggettTexas lawmakers call for investigation into CDC's handling of released coronavirus patient in San Antonio Ocasio-Cortez knocks Pence: 'Utterly irresponsible to put him in charge of US coronavirus response' Pelosi trashes Trump address: 'He shredded the truth, so I shredded his speech' MORE (D-Texas) voting present. Two Republicans, Reps. Tom RiceHugh (Tom) Thompson RiceHouse GOP scores rare floor victory by outmaneuvering Democrats on tax bill Providing more information on the prescription drug supply chain will help lower costs for all On The Money: Lawmakers hammer Zuckerberg over Facebook controversies | GOP chair expects another funding stopgap | Senate rejects Dem measure on SALT deduction cap workarounds MORE (S.C.) and Vern BuchananVernon Gale BuchananMORE (Fla.), voted with Democrats, while Rep. Stephanie MurphyStephanie MurphyPelosi scrambles to secure quick passage of coronavirus aid Sunday shows preview: State governors and top medical officials prepare for next week of COVID-19 response Members of House GOP leadership self-quarantining after first lawmakers test positive MORE (D-Fla.) joined Republicans in opposing the measure.

The move comes amid growing concerns over the health effects of vaping, as a respiratory illness linked to vaping products spreads across the country.

"A whole generation of our children are getting addicted to nicotine" through the use of vaping products, said Rep. Tom Suozzi (D-N.Y.) said at Wednesday's markup. "For young people especially, who have less money and therefore higher price elasticity, taxes on vaping products are an effective way to decrease usage."

The Hill's Naomi Jagoda has more here.

 

GOOD TO KNOW

  • An attorney for President Trump told a federal appeals court Wednesday that Trump could not be prosecuted even if he shot someone on Fifth Avenue in New York amid a legal fight over his financial records that seems destined for the Supreme Court.
  • President Trump announced Wednesday that his administration would lift sanctions on Turkey after Ankara agreed to stop an offensive in northern Syria and agreed to a permanent cease-fire. 
  • Unemployment may be hovering near a 50-year low, but only 40 percent of America's workers say in a new survey that they are working in "good" jobs.

 

ODDS AND ENDS