Happy Monday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: digital-release.thehill.com/newsletter-signup.
Today’s Big Deal: President Biden and Sen. Joe Manchin (D-W.Va.) held a highly anticipated phone call on the future of the Democratic spending agenda. We’ll also look at the pressure to cement paid family leave and the child tax credit.
But first, news about the end of “Dr. Oz.”
For The Hill, I’m Sylvan Lane. Write me at slane@digital-release.thehill.com or @SylvanLane. You can reach my colleagues on the Finance team Naomi Jagoda at njagoda@digital-release.thehill.com or @NJagoda and Aris Folley at afolley@digital-release.thehill.com or @ArisFolley.
Let’s get to it.
Biden tries to budge Manchin
President Biden spoke to Sen. Joe Manchin (D-W.Va.) for the second time in a week on Monday in what is becoming an increasingly desperate last-minute effort to cajole him into voting for a sweeping climate and social spending bill before Christmas.
- Manchin told reporters after the call he and Biden had “a nice conversation” and that he is “engaged” with the president. He said he and Biden “were just talking” about “different iterations” of the legislation.
- Asked if the $2 trillion bill could pass by Christmas, Manchin replied, “Anything is possible.”
- He declined to say how long the call lasted or what he and the president discussed specifically, though his office released a statement describing the conversation as “productive.”
The backstory: As loyal readers know by now, the West Virginia senator has consistently been a point of friction for Senate Democrats, who must have unity among their 50 members to get Biden’s Build Back Better agenda through the upper chamber.
- Democratic senators say Manchin is dragging his feet on proceeding to the bill next week and identify him as the biggest obstacle to getting the legislation done before the expanded child tax credit expires at the end of the month.
- The nearly $2 trillion bill would extend that credit for a year.
But Manchin is concerned about spending more money before the federal government may have to respond to another shock to the economy, perhaps caused by the new omicron variant of the coronavirus or military aggression from China or Russia.
“The unknown right now is very, very great. I want to make sure we can handle it and take care of anything that does come at us,” he said.
Alexander Bolton and Morgan Chalfant have the latest here.
A MESSAGE FROM CITI
Tackling the startup world’s gender, race and ethnic funding gap.
With our $200 million Impact Investment Fund we are seeking opportunities to invest in businesses that are led or owned by women and minority entrepreneurs, helping to create equitable access to venture capital funding.
LEADING THE DAY
Manchin faces pressure from Gillibrand, other colleagues on paid family leave
Manchin is also facing mounting pressure from colleagues to back a federal paid family and medical leave plan backed by Democrats as the party seeks to finish work on the social spending package.
- Manchin has pushed back in recent months against efforts by his colleagues to advance the proposal for a universal paid leave program in a Democratic-only bill his party aims to pass through Congress without GOP support, insisting it should be done on a bipartisan basis.
- But a number of Democrats, particularly those who have struggled to find support for similar proposals and don’t want to miss this opportunity, aren’t giving up and are putting the pressure on
“My message to my colleague is if you ever want to meet the needs of your lowest income workers and your middle income workers, who are likely never to work at a fancy company that can afford paid leave, this is your one shot to deliver for them,” Sen. Kirsten Gillibrand (D-N.Y.), a longtime paid leave advocate, said at a press conference on Thursday.
Aris Folley breaks it down here.
GIVE AND TAKE
IRS, nonprofit groups raise awareness of special charitable tax break for 2021
The IRS and groups representing nonprofits on Monday spotlighted a special tax break that many households can claim for charitable donations made prior to the end of the year.
- Under a coronavirus relief law enacted in December 2020, taxpayers who claim the standard deduction can take a deduction for charitable contributions made in 2021.
- Single filers can deduct up to $300 in donations and married couples can deduct up to $600 on the 2021 tax returns that taxpayers will file early next year.
The IRS and nonprofit groups want to make sure that taxpayers are aware of the deduction, as many charities have been challenged by the pandemic. Some charities have seen a drop in their donations, and some charities have seen an increased need for their services.
Naomi has more here.
Good to Know
Preliminary Senate Finance Committee text for the social spending and climate bill released over the weekend retains a tax credit for union-made electric vehicles, despite objections to the provision by Sen. Joe Manchin (D-W.Va.).
A MESSAGE FROM CITI
Tackling the startup world’s gender, race and ethnic funding gap.
With our $200 million Impact Investment Fund we are seeking opportunities to invest in businesses that are led or owned by women and minority entrepreneurs, helping to create equitable access to venture capital funding.
{mosads}That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow.