On The Money: Falling impeachment support raises pressure for Dems on trade | Trump escalates fight over tech tax | Biden eyes minimum tax for corporations | Fed's top regulator under pressure over Dodd-Frank rules

On The Money: Falling impeachment support raises pressure for Dems on trade | Trump escalates fight over tech tax | Biden eyes minimum tax for corporations | Fed's top regulator under pressure over Dodd-Frank rules
© Greg Nash

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THE BIG DEAL— Falling impeachment support raises pressure for Democrats on trade: The drop in support for impeachment in the polls is increasing pressure on Democrats to strike a deal on the U.S.-Mexico-Canada Agreement (USMCA).

House Democrats have been eager to prove that impeachment is not getting in the way of legislative progress, a point Republicans have repeatedly pressed.

But with the presidential election less than a year away, the political ramifications of the impeachment process are at the front of Democrats’ minds. Progress on a popular bipartisan issue could help assuage moderate voters. The Hill’s Niv Elis explains why here.

 

The polling: Polling on impeachment has found that a majority of respondents support the process, but support has dropped from key groups of independents as public hearings got underway. An Emerson poll in November found 43 percent of voters overall supporting impeachment compared with 45 percent opposed. That represented a 6-point swing from the poll's survey in October.

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Pelosi’s pitch: 

  • Republicans have repeatedly accused Democrats of playing politics with the USMCA, especially in the face of impeachment.
  • Trump has also bashed Pelosi on impeachment, calling her “grossly incompetent” and accusing her of using it as a carrot for skeptical, centrist Democrats to whip votes on impeachment.
  • But Pelosi has been adamant that impeachment would not affect USMCA talks, or vice versa, and that the tracks are totally separate. “They have nothing to do with each other,” she said as the impeachment process kicked off.

 

The problem: But even as final details on enforcement mechanisms, labor, environment and pharmaceuticals come together, Democrats must make the political decision of whether, how and when to finalize the deal.

Democratic strategist Tim Lim, a partner at NEWCO Strategies, said “There’s a real source of strife and tension coming from it, which is ‘do Democrats want to give Trump a major legislative victory going into an election cycle,’ or ‘do we do the same thing Republicans did to President Obama.’”

 

ON TAP TOMORROW

  • Federal Housing Administration Commissioner Brian Montgomery testifies before a House Financial Services subcommittee, 2 p.m.

 

LEADING THE DAY

Trump escalates fight over tax on tech giants: The long-running fight between the U.S. and Europe over how to tax American tech giants is heating up.

  • The Trump administration on Monday proposed retaliating against France for a tax on digital services, floating $2.4 billion in tariffs, and Paris is vowing to hit back. 
  • The dispute is raising pressure on international negotiators to develop a framework for taxing tech companies whose businesses span the globe.
  • But as the complicated talks unfold, the U.S. is threatening to launch more investigations. 

The Hill’s Naomi Jagoda and Emily Birnbaum explain here

 

Read more: Treasury Secretary Steven Mnuchin is raising concerns about ideas being considered in international discussions over how to address the tax challenges of the digital economy.

 

Biden planning minimum tax to prevent corporations from paying zero taxes: Democratic presidential candidate Joe BidenJoe BidenThe media have fallen out of love with Bernie, but have voters? Top Zelensky aide refutes Sondland testimony The great AI debate: What candidates are (finally) saying about artificial intelligence MORE is planning to pay for his policy proposals in part with a new tax aimed at preventing large corporations from paying zero in taxes, Bloomberg News reported Wednesday.

Under a proposal Bloomberg obtained, the former vice president would call for a 15 percent minimum tax on corporations' book income, which can differ from the income reported on federal income tax returns. The proposal is targeted at businesses with more than $100 million in net income in the United States that paid zero or negative federal income taxes.

The Biden campaign estimates that the proposal would raise $400 billion in federal revenue over 10 years, Bloomberg reported.

 

GOOD TO KNOW

  • The Federal Reserve’s top regulatory official took heat from lawmakers in both parties Wednesday over the impact of post-financial crisis regulations and the central bank’s efforts to loosen them. 
  • A bipartisan group of House and Senate members on Wednesday introduced legislation that would allow new parents to pull forward child tax credits to finance a leave from work or pay for child-related expenses.