SPONSORED:

On The Money: Biden says 100 million relief payments will go out in next 10 days | White House hires Gene Sperling to be relief chief | Yellen eyes global minimum tax on multinationals

On The Money: Biden says 100 million relief payments will go out in next 10 days | White House hires Gene Sperling to be relief chief | Yellen eyes global minimum tax on multinationals
© Getty Images

Happy Monday and welcome back to On The Money, where we think as many things as possible should be named after Prince. 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, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @NJagoda and @NivElis.

ADVERTISEMENT

THE BIG DEAL—Biden says administration will surpass 100 million relief payments in next 10 days: Talk about a long bank statement: President BidenJoe BidenChinese apps could face subpoenas, bans under Biden executive order: report OVERNIGHT ENERGY:  EPA announces new clean air advisors after firing Trump appointees |  Senate confirms Biden pick for No. 2 role at Interior | Watchdog: Bureau of Land Management saw messaging failures, understaffing during pandemic Poll: Majority back blanket student loan forgiveness MORE said Monday that within the next 10 days, more than 100 million relief payments will have been delivered to Americans.

“Shots in arms and money in pockets. That is important,” Biden said in remarks at the White House. “The American Rescue Plan is already doing what it was designed to do – make a difference in people’s everyday lives.”

The breakdown:

  • The White House says it expects 158.5 million households to receive relief checks from the $1.9 trillion rescue package signed into law Thursday. 
  • The Treasury Department began sending out direct payments over the weekend, though some banks won’t process them until later in the week.

“It’s one thing to pass a historic piece of legislation like the American rescue plan and it’s quite another to implement it. The devil is in the details. It requires fastidious oversight to make sure the relief arrives quickly, equitably and efficiently with no waste or fraud,” Biden said Monday.

The Relief Chief: To that end, the White House is bringing on Gene Sperling, a former top economic adviser to former presidents Clinton and Obama, to oversee implementation of the legislation.

ADVERTISEMENT
  • Sperling, who is working remotely in California, will hold the title of White House American Rescue Plan coordinator and senior adviser to the president. 
  • He is expected to take on a role similar to the one Biden played as vice president when he oversaw implementation of the 2009 recovery bill during the Obama administration.

“Gene will be on the phone with mayors and governors, red states, blue states. A source of constant communication, a source of guidance and support, and above all a source of accountability for all of us to get the job done,” Biden said.

The PR blitz: While implementing the bill successfully is probably the best way to sell people on its merits, Biden and his administration are also hitting the road to sell the plan and make sure it doesn’t get less popular with age.

Administration officials say Democrats fell short during the Obama era of selling the 2009 economic recovery bill. Whether Democrats can maintain popularity for the newly enacted COVID-19 relief bill will play a key role in determining the party’s fortunes in the 2022 election.

The Hill’s Brett Samuels and Morgan Chalfant explain here.

The road ahead: The path of the economy is one thing working in Biden’s favor as he makes his pitch.

Economists say the U.S. is poised for rapid rebound thanks in part to the $1.9 trillion relief bill signed Thursday. 

  • Analysts are projecting gross domestic product (GDP) growth to between 5 and 7 percent in 2021, following a decline of 3.5 percent in 2020. The 6.2 percent unemployment rate, already much lower than its crisis peak of 14.7 percent, may fall below 4.1 percent by the end of the year, according to Goldman Sachs.
  • The U.S. added a robust 379,000 jobs in February, consumer and corporate sentiment are soaring higher, jobless claims came in below expectations last week, and inflation has stayed well below the Federal Reserve’s target range of 2 percent.

The Hill’s Niv Elis and I walk you through how much momentum Biden has, and where he needs to turn it, in this piece from the weekend.

LEADING THE DAY

Yellen proposing global minimum tax on multinationals: Treasury Secretary Janet YellenJanet Louise YellenOn The Money: Sanders: Democrats considering trillion spending package | Weekly jobless claims rise for first time since April End the ban on felon participation in the securities markets Watch live: Yellen testifies before House panel MORE is working with other countries on an agreement to update corporate tax rules to establish a global minimum tax as the Biden administration considers raising taxes on businesses in order to finance other priorities.

  • The Washington Post reported Monday that the effort could be one of Yellen's biggest accomplishments if an agreement is reached and could be critical to any push from Biden to raise taxes to offset the cost of future spending proposals.
  • Yellen is participating in ongoing negotiations at the Organization for Economic Cooperation and Development (OECD) about how to update global tax rules to reflect the digital economy. 
  • One pillar of the group's work is focused on a nonbinding global minimum tax.

The Hill’s Naomi Jagoda breaks it down here.

Yellen’s pending proposal come as President Biden is reportedly planning the first major hike in federal taxes in almost 30 years to fund the economic program set to follow the recently approved $1.9 trillion pandemic stimulus package, per Bloomberg.

The planned increases reportedly include: raising the corporate tax from 21 percent to 28 percent; increasing the income tax rate on people making more than $400,000; expanding the estate tax; paring back tax preferences on pass-through businesses such as limited-liability companies; and setting up a higher capital gains tax rate for individuals making at least $1 million.

ON TAP TOMORROW:

  • The Senate Health, Education, Labor and Pensions Committee holds a confirmation hearing on the nomination of Julie Su to serve as Deputy Secretary of Labor at 10 a.m.
  • The Senate Finance Committee holds a hearing on the impact of the U.S. tax code on domestic manufacturing at 10 a.m.
  • The American Bankers Association kicks off its 2021 Washington Summit at 1 p.m.
  • The Senate Banking Committee holds a hearing on the state of U.S. housing at 2 p.m

GOOD TO KNOW

  • Hundreds of workers at a reopened Tesla plant in California tested positive for COVID-19 between May and December, according to data released by a transparency website on Friday.
  • Volkswagen plans to cut as many as 4,000 jobs from its plant in Germany by offering partial retirement to its older employees, sources close to the matter told Reuters.
  • The Securities and Exchange Commission (SEC) will seek public comment on whether to require companies to make more extensive disclosures to investors about climate-related risks, acting Chairwoman Allison Herren Lee said Monday.

ODDS AND ENDS

  • A congressional watchdog is investigating reports that some recipients of a tax credit for “clean coal” production increased rather than cut pollution, Reuters first reported Monday.
  • Op-Ed: Desmond Lachman, resident fellow at the right-leaning American Enterprise Institute, tells the U.S. to beware “The Brazilian economic canary in the coal mine”