On The Money: Stocks jump as Trump prepares to return to White House | IRS extends deadline for non-filers to register for stimulus payments | Top Fed official warns failure to pass more COVID-19 relief could slow recovery

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THE BIG DEAL—Stocks jump as Trump prepares to return to White House: Stocks closed with gains Monday after President TrumpDonald John TrumpState Department revokes visa of Giuliani-linked Ukrainian ally: report White House Gift Shop selling ‘Trump Defeats COVID’ commemorative coin Biden says he should not have called Trump a clown in first debate MORE announced that he would be discharged from Walter Reed hospital later in the day.

The Dow Jones Industrial Average jumped 466 points, or 1.7 percent, and the S&P 500 increased 60 points, or 1.8 percent. The tech-heavy NASDAQ performed even better, with a 257-point increase, or 2.3 percent.

  • Trump, who announced Friday that he has COVID-19, said he’d return to the White House, where he will continue to receive medical attention from a full team of medical professionals.
  • His announcement came before the stock market closed at 4 p.m.
  • Trump departed Walter Reed National Military Medical Center shortly after 6:30 p.m.

The background: Trump’s apparent eagerness to downplay the severity of the virus raised questions as to what led to the decision. 

  • His tweet announcing his discharge urged people not to be “afraid” of the virus that has killed more than 210,000 Americans, and comes a day after he drew criticism for taking a drive to wave to supporters outside the hospital instead of staying isolated.
  • Trump’s diagnosis has also cast a shadow on the stock market, which had been bracing for volatile election aftermath and a potential Joe BidenJoe BidenState Department revokes visa of Giuliani-linked Ukrainian ally: report Biden says he should not have called Trump a clown in first debate Biden inquired about calling Trump after coronavirus diagnosis MORE presidency.

LEADING THE DAY

IRS extends deadline for non-filers to register for stimulus payments: The IRS announced Monday that it is extending the deadline for people who aren’t typically required to file tax returns to register for their coronavirus relief payments.

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The agency said it is moving the deadline for non-filers to use an IRS web tool from Oct. 15 to Nov. 21, giving people an extra five weeks to submit their information.

“We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities,” IRS Commissioner Charles Rettig said in a statement.

The Hill’s Naomi Jagoda tells us what it means here.

  • Under legislation enacted in late March, most Americans are eligible for one-time payments of up to $1,200 per adult and $500 per child. The vast majority of eligible Americans received their payments earlier this year.
  • Reaching non-filers has been a challenge for the IRS as it has worked to get the stimulus payments to everyone who is eligible. 
  • Non-filers typically have very low incomes.

Top Fed official warns failure to pass more COVID-19 relief could slow recovery: Federal Reserve Bank of Chicago President Charles Evans says that a failure of the White House and Congress to approve more coronavirus stimulus funding could reignite “recessionary dynamics” that will hinder the recovery from the recession.

In a Monday speech, Evans said another economic rescue package “will play an enormously powerful role” in helping struggling households and businesses survive until the coronavirus pandemic is under control. He added that sufficient relief, including support for state and local governments, would help unemployment fall from 7.9 percent as of September to 4 percent by 2023.

Without further aid, Evans warned, “recessionary dynamics will gain more traction and lead to a slower trajectory back to maximum employment.”

I explain why here.

  • Evans’s warning is the latest attempt from top Fed officials to nudge the White House and Congress closer to a long-sought deal on a follow-up to the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act that President Trump signed in late March.
  • Economists credit the CARES Act with shielding the U.S. from some of the economic blow at the onset of the pandemic through expanded and enhanced unemployment benefits, direct payments to U.S. households, emergency loans to small businesses and aid to state and local governments.
  • But the pace of the recovery has slowed notably as much of that aid expired and washed out of the economy over the summer.

GOOD TO KNOW

  • A watchdog group on Monday called for President Trump’s top trade adviser to be fired for violating a law that bans federal employees for engaging in political activity in their professional capacity.
  • Wayne LaPierre, the longtime head of the National Rifle Association (NRA), is under investigation by the IRS on suspicion of criminal tax fraud, the Wall Street Journal reported Monday.
  • New York Times: “Tidjane Thiam made Credit Suisse profitable again. But the Swiss rejected him as an outsider, and a sudden scandal took him down.”
  • A coalition of progressive groups on Monday launched an initiative to make the case that the tax code is too favorable to the wealthy after The New York Times’s bombshell report on President Trump’s taxes.
  • Voters consider the economy their top issue in the presidential election, according to newly released Gallup polling.

ODDS AND ENDS

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  • The CEOs of Google, Facebook and Twitter are set to testify before the Senate later this month, spokespeople for the companies confirmed to The Hill on Monday.
  • Regal Cinemas, the nation’s second-largest theater chain, will close its doors across the country as the film industry continues to be hard hit by the coronavirus pandemic.
  • Op-Ed: Adriana Kugler, a professor at Georgetown University, argues why Congress must take “swift action” or have a worse jobless rate this winter”

CEOs of Google, Facebook and Twitter to testify before Senate

The CEOs of Google, Facebook and Twitter are set to testify before the Senate later this month, spokespeople for the companies confirmed to The Hill on Monday.

The appearance before the Senate Commerce Committee will be the second time that top tech executives appear before Congress this year, following this summer’s major hearing before a House antitrust subcommittee.

Google’s Sundar Pichai, Facebook’s Mark ZuckerbergMark Elliot ZuckerbergHillicon Valley: CEOs of Google, Facebook and Twitter to testify before Senate | European Union police agency warns of increase in cybercrime | Twitter to remove posts hoping for Trump’s death CEOs of Google, Facebook and Twitter to testify before Senate Trump’s luck finally runs out MORE and Twitter’s Jack Dorsey will appear before the powerful Senate committee on Oct. 28, just days before the general election.

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The hearing set to focus on Section 230 of the Communications Decency Act, which is considered the bedrock of the modern internet.

The 1996 law, which has come under increased scrutiny since President TrumpDonald John TrumpState Department revokes visa of Giuliani-linked Ukrainian ally: report White House Gift Shop selling ‘Trump Defeats COVID’ commemorative coin Biden says he should not have called Trump a clown in first debate MORE targeted it in an executive order in May, gives internet companies immunity from lawsuits for content posted on their sites by third parties and allows them to make “good faith” efforts to moderate content.

The threat of having that protection revoked has increasingly been proposed as a cudgel to compel platforms to make changes by lawmakers, especially ones on the right.

The hearing, which will also address data privacy and media consolidation, comes after Democrats initially resisted efforts to subpoena the CEOs.

The Commerce Committee voted unanimously to authorize subpoenas for the three executives last week. All three CEOS agreed to testify voluntarily.

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Ex-Nevada state treasurer may challenge Heller in 2018

Nevada’s former state treasurer says she’s considering a run against Sen. Dean HellerDean Arthur HellerOn The Trail: Democrats plan to hammer Trump on Social Security, Medicare Lobbying World Democrats spend big to put Senate in play MORE (R-Nev.) in 2018, the latest in a number of Democrats showing interest in taking on the vulnerable Republican.

“I’m evaluating the race,” Kate Marshall told the Nevada Independent in a Tuesday interview.

Heller is considered the most vulnerable GOP senator up for reelection next year and the only one running in a state that Democratic nominee Hillary ClintonHillary Diane Rodham ClintonWhite House accuses Biden of pushing ‘conspiracy theories’ with Trump election claim Biden courts younger voters — who have been a weakness Trayvon Martin’s mother Sybrina Fulton qualifies to run for county commissioner in Florida MORE carried in 2016. Senate Democrats will largely be on defense in the 2018 midterm elections, protecting 25 seats, while Republicans only need to defend nine.

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Marshall served as state treasurer from 2007 to 2015. She unsuccessfully ran in a 2011 congressional special election, as well as for Nevada secretary of State in 2014.

Sen. Catherine Cortez Masto (D-Nev.), who won a competitive open seat race last year, is reportedly backing Marshall.

Asked if she met Senate Minority Leader Charles SchumerChuck SchumerOvernight Health Care: US showing signs of retreat in battle against COVID-19 | Regeneron begins clinical trials of potential coronavirus antibody treatment | CMS warns nursing homes against seizing residents’ stimulus checks Schumer requests briefing with White House coronavirus task force as cases rise Schumer on Trump’s tweet about 75-year-old protester: He ‘should go back to hiding in the bunker’ MORE (D-N.Y.) about a possible campaign, Marshall demurred.

“It’s a comprehensive process, and I am still reviewing,” she said.

Rep. Dina Titus (D-Nev.) is also considering a run against Heller, saying in a recent interview that she’s spoken to some people about a potential Senate campaign.

“It’s going to be interesting. I’m thinking about it,” Titus told KNPR, a Nevada NPR affiliate station. “Some people have talked to me about the possibility. It’s a hard decision.”

If she passes on a Senate bid, Titus said she’ll run for reelection to her safe House seat and said that she’s starting to gain “clout” in the lower chamber.

Other Democrats who have been floated as potential contenders are freshman Reps. Jacky Rosen (D-Nev.) and Ruben Kihuen (D-Nev.).

Elizabeth Warren Blasts Tax Plan as 'Giant Wet Kiss' to Corporate America

Denouncing a “rigged” system that favors corporations over middle-class Americans, Sen. Elizabeth Warren (D-Mass.) said in a “must-watch” speech on Wednesday that any reform of the U.S. corporate tax code must force big businesses to “substantially increase” the amount of federal tax they pay. 

Warren’s address at the National Press Club in Washington, D.C. “staked out the left-wing position on corporate tax reform,” Politico said, an issue Congress is expected to take on in 2016. She lambasted three proposals currently getting attention on Capitol Hill, including one supported by President Barack Obama.

“When I look at the details, I see the same rigged game—a game where Congress hands out billions in benefits to well-connected corporations, while people who really could use a break…are left holding the bag.”
—Sen. Elizabeth Warren

She described that “deemed repatriation” plan—which would allow U.S. companies to pay less tax on profits generated abroad if that money is repatriated to the U.S.—as “a giant wet kiss for the tax dodgers who have already parked $2.1 trillion overseas.”

“When I look at the details, I see the same rigged game,” she said, “a game where Congress hands out billions in benefits to well-connected corporations, while people who really could use a break…are left holding the bag.”

Warren pushed back on corporate claims that U.S. taxes are too high, citing a White House study that found companies’ contribution to government tax revenue had dropped from $3 out of every $10 in the 1950s to $1 out of every $10 today.

“Only one problem with the over-taxation story: It’s not true,” she said. “There is a problem with the corporate tax code, but that isn’t it. It’s not that taxes are far too high for giant corporations, as the lobbyists claim. No, the problem is that the revenue generated from corporate taxes is far too low.”

For example, a recent analysis by the coalition Americans for Tax Fairness showed that drug giant Pfizer, in a bid to justify a Big Pharma mega-merger that would allow it to dodge taxes through what’s known as a corporate inversion, had dramatically overstated its corporate tax rates and was in fact paying just a fraction of what it claimed. 

As Common Dreams has previously reported, America’s Fortune 500 companies are notorious for “playing by different rules” when it comes to the federal tax system—adept at manipulating that system to avoid paying even a dime in tax on billions of dollars in U.S. profits.

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