Subject: Budget Update -- Regular Order or None at All?
From: Dana <[email-masked]>
To: Mike Pyle <[email-masked]>
Cc: Mike Schmidt <[email-masked]>
Date: Mon, 14 Mar 2016 19:32:58 -0400

Mike & Co. --

House and Senate leaders are pursuing different legislative strategies as Congress continues to make progress on a fiscal year 2017 budget for the U.S. government.  

One chamber is processing down the good governance path of regular order, with Appropriations subcommittee hearings by the dozens already held and a date certain for a budget resolution mark-up.  The other chamber has scheduled and cancelled a Budget Committee mark-up and has not rescheduled it. 

Which is which and why?  What is at stake?  More below.

Best,

Dana

-----------------------------------

Regular Budget Order or None at All?

The divide is a result of two unrelated factors -- the curious vote-a-rama and reconciliation features of the budget making process and the deep divide regarding strategic objectives within the GOP between the views that 

   •  the GOP should pass a budget through regular order to demonstrate its ability to govern and 

   •  the GOP should throw out the Obama-Boehner spending deal and enact a cost-slashing budget in line with the sequestration levels.  

The major bone of contention is the spending deal reached last year between President Obama and former Speaker Boehner, which increases spending roughly $30 billion this year.  While Senate Republicans seem increasingly content to abide by that deal House leadership has had no end of trouble getting their colleagues to toe the line.

Ryan, Price, and Brady (not to mention their Senate counterparts) are advocating the former while the House Freedom Caucus insists on the latter of these two approaches, it’s been a public and embarrassing battle for the House GOP so far.  In any other year the House Speaker may look for cooperation from Democrats, especially to save his promise for passing a budget.  But considering the political nature of the promise, to show that the GOP can govern, it might look like a surrender to turn to Democrats for help.

House Ways and Means Chair Kevin Brady has tried to break the stalemate by releasing a series of tax bills touted as a “budget savings” package.  The legislation will cut $16 billion in two years and $98 billion over ten.  The bills are expected to be market up this week.  

The Brady bill comes after the Freedom Caucus balked at a deal by Tom Price which would pass a budget resolution sticking to last year’s deal while allowing a separate vote to cut $30 billion in mandatory spending.  Holdouts against the Price deal claimed that they would not accept any deal which included passing a budget in line with the Obama-Boehner deal; Brady’s legislation doesn’t touch that issue at all, and hasn’t been made contingent on Freedom Caucus cooperation.  It’s hard to see how this package will sway the hardliners.

Meanwhile in the Senate

Senate Republicans have signaled they’re unlikely to act on a budget before the House, placing more pressure on Ryan et al.   So why are Senate Republicans so amenable to skipping out on a budget?  A number of their colleagues are up for reelection in difficult states, and being forced to cast embarrassing votes may hurt their chances.  Senate procedures allow 30 hours of open debate and unlimited amendments to budget resolutions, the so called “vote-a-rama,” so it’s a virtual certainty that politically sensitive votes will come up.

Senator Richard Shelby has noted that a budget wasn’t necessary since the Senate already had a total discretionary spending figure to shoot for.  Senator Corker echoed his statement, calling the budget “an unbelievable hoax” that he could live without.

In a move sure to upset budget hawks, Senate Majority Leader Mitch McConnell said of the Senate’s upcoming appropriations bill: “we will be using the top-line that was agreed to last year … We have the top-lines for this year and we’re going to go forward with appropriations.” 

Consequences of Failure

If the Senate and House don’t pass identical budgets then the GOP will lose its ability to pursue budget reconciliation, through which budget-related legislation can move through the Senate on a simple majority and avoid filibusters.  This was used last year to pass legislation repealing large swaths of ACA, though it was promptly vetoed by Obama.  The GOP would surely like to have that option available again to take one last swing at the outgoing administration.

The GOP has to ask itself: is it worth losing reconciliation to make a stand against spending levels?  It’s hard to believe that the majority will ever think they gain more ground politically by giving up on reconciliation in favor of making a budget statement.  After all, it’s hard to make failure look good.  

_________________________

Future/Recent Updates

•   Monday --  Budget Irresolution 
•   Tuesday --  Fed: Regulatory Update
•   Wednesday -- Fed: Monetary Update
•   Thursday --  The Fiduciary Rule
•   Friday -- Pre-Recess Review

  •   ERI/Housing
  •   EU/US Derivatives Deal
  •   Pension Crisis

Regular Budget Order or None  (Mar. 14)
Tax Bills on the Hill (Mar. 11)
Senate Banking Nominations (Mar. 10)
Survey of the SIFI Landscape  (Mar. 9)
Michigan and the Meaning of Flint  (Mar. 8) Puerto Rico's Debt Crisis  (Mar. 5)
Municipal Finance Caucus  (Mar. 4) 
Flint Bill:  Provisions & Prospects (Mar. 2) 
Top Tax Bills Handicapped  (Feb. 24)
Bigger than the Budget Battle  (Feb. 23)
Infrastructure Finance Update  (Feb. 18) 
Does DFA Fail on Too Big to Fail? (Feb. 17)
Below the Radar/Customs Bill  (Feb. 16) 
International Tax Status  (Feb. 11)
The Fed Holds Steady  (Feb. 10)
Obama's FY17 Budget  (Feb. 9) 
Tax Talk of the Town  (Feb. 3)
Defending Dodd-Frank  (Feb.2)

___________________________________

Mike & Co. --

Yesterday, House Ways and Means chair Kevin Brady released a “budget savings package designed to cut taxes."  Brady's gambit reflects the growing buyers remorse regarding the omnibus agreement within the Freedom Caucus.  Hard liners have objected to the spending levels set in the Obama-Boehner deal; this package is meant to buy their cooperation in the larger negotiations between parties.

It's one of a number of tax proposals getting attention and generating debate on the Hill.  A review of the tax issues on the table is below. 

Good weekends all.  Don't hesitate to let me know if there's an issue you think should be covered in an upcoming update. 

Best,

Dana

_______________________________

Tax Legislation in 2016

Tax reform advocates entered 2016 with a great deal of fanfare – optimistic talk of comprehensive, bipartisan, pro-growth tax reform abounded.  What’s happened since New Year’s Day?  A lot of interesting proposals have come forward to fix critical but narrow issues, and the bold talk of comprehensive reform has remained just that – talk.  

Given the developments since Paul Ryan and Kevin Brady called for comprehensive tax reform – Justice Scalia’s death, the rise of the Donald, and the stalled budget – it’s unlikely that sweeping legislation will take form.  More likely we’ll see smaller bills focused on particular issues.

International 

President Obama, Senator Wyden, and Rep Brady, long ago hammered home the need for international tax reform.  Their proposals include finding a way to repatriate foreign-held profits of US-based multinationals, dealing with corporate inversions, and setting up a new international tax code.

The key to reaching an agreement on the proposals below likely lies in determining where revenue will go after foreign earning are brought back to the US.  Brady has said before that he wouldn’t support a proposal in which any tax is levied on foreign earnings, while Wyden says the opposite – revenue is a requirement.  There is so much pressure for this to happen it’s hard to believe they can’t compromise. 

•   taxing foreign earnings:  Competing proposals exist between parties.  President Obama’s FY17 budget includes a 14 percent repatriation holiday with 19 percent tax thereafter on all foreign earnings.  Brady has said he’d rather these earnings come home with no tax attached, so that they can be used for investment.  Sen. Wyden proposes that the income be repatriated, taxed, and the revenue be used for infrastructure development.  A recent bill by Schumer and Brown (below) would tax the foreign income of any company that moves its headquarters overseas.  

•  preventing inversions:   Sen. Wyden proposes making the ownership minimum for a corporate inversion 50% (current law is 15%).  Reps Levin and Van Hollen have announced legislation to prevent “earnings stripping” by reducing the tax preference for interest payments.  

Sens. Schumer and Brown have announced they will introduce two pieces of legislation to tackle inversions – one to impose an exit tax on companies moving their address overseas, and another to limit earnings stripping.  The exit tax proposal enforces the full 35 percent tax rate on all foreign earnings for companies that move abroad; their earnings stripping legislation limits the tax-deducibility of interest payments to 25 oercent, down from the current 50 percent.  

•  territorial system: Brady has mentioned repeatedly that the US must adopt a territorial system to remain competitive, whereby earnings from abroad are not taxed in the US.  It’s been a perennial favorite of Republicans but likely will remain a non-starter for Democrats.  

Corporate Tax Reform

Many issues solved in international tax reform proposals would affect corporate tax reform efforts – often the two are considered indelibly linked.  Prominent policymakers agree that the corporate rate must be lowered, but the final size of the tax and how it is aimed differ.

Republican proposals generally have rates between 0 and 20 percent, with Democrats above those at 24 percent and 28 percent for Wyden and Obama respectively.  New rules on depreciations of assets – specifically replacing the Modified Accelerated Cost Recovery Systems with something less generous – are being floated as well.  Ending the tax-deductibility of debt is a dual-purpose proposal – useful for preventing inversions (see above) as well as encouraging businesses to fund themselves using equity rather than credit.

Earned Income Tax Credit

A favorite of both Democrats and Republicans – and notable of Paul Ryan and President Obama.  They were rumored to discuss the issue during their first meeting, this past February, after Ryan’s ascension to Speaker.  

The EITC is a part of Obama’s budget proposal for this year; he suggests to expand the EITC for childless workers and create a $500 “second earner” tax credit. The total cost would be $150 billion. Ryan has proposed something that is very similar. In addition to that, there have been five recent congressional proposals (introduced by Senators Sherrod Brown and Richard Durbin, by Rep. Richard Neal, by Rep. Charles Rangel, by Rep. Danny Davis, and by Senators Patty Murray, Jack Reed, and Sherrod Brown) that would substantially strengthen the EITC for childless workers. All of them, including Ryan’s and Obama’s, would lower the eligibility age to 21, and all would raise the maximum credit — the Obama and Ryan proposals to about $1,000 and the other proposals to somewhat higher amounts.

The recent focus on the issue makes it likely that something will be done on it soon. If Ryan and Obama can work together on this, it will be a bipartisan light in the gridlocked darkness. 

Carried Interest 

Senator Tammy Baldwin has released a proposal to tax carried interest as a regular income rather than capital gains.  Historically this has been a particularly divisive issue, with lawmakers on the right refusing to entertain the idea.  However, recently Republicans have begun to soften on this position – perhaps after seeing the populist sentiment inspired by their presidential candidates’ own call to end the loophole.  

Baldwin released her proposal in conjunction with Sander Levin, who released a version of the bill in the House as well.  

The Bottom Line

Any piece of tax reform legislation put forward which reduces revenues would have to find a way to offset its costs.  In light of the Obama-Boehner deal on spending limits for 2016 this may be a particularly important issue – especially as GOP leaders try to keep their right flank in order as they tussle over the spending rules.  Conversely, any reform which raises revenue will face strong calls from Republicans to fund tax cuts, and from Democrats to fund infrastructure or other initiatives.

As the year drags on the prospects for comprehensive reform dwindle further – they were never that great to begin with, despite enthusiasm from party leaders.  Even the more modest proposals laid out here may be too divisive to survive, especially in a political environment like this one.  Senators can’t be blamed for focusing their efforts on Supreme Court nominees, the budget, their own party candidates, and more.

_________________________________

Future/Recent Updates

•   Wednesday -- SIFI Landscape
•   Thursday--  Financial Nominations 
•   Friday -- Update on Tax Bills
•   Monday --  Budget Irresolution 
•   Tuesday --

•   ERI/Housing
•   EU/US Derivatives Deal
•   Pension Crisis

Tax Bills on the Hill (Mar. 11)
Senate Banking Nominations (Mar. 10)
Survey of the SIFI Landscape  (Mar. 9)
Michigan and the Meaning of Flint  (Mar. 8) Puerto Rico's Debt Crisis  (Mar. 5)
Municipal Finance Caucus  (Mar. 4) 
Flint Bill:  Provisions & Prospects (Mar. 2) 
Top Tax Bills Handicapped  (Feb. 24)
Bigger than the Budget Battle  (Feb. 23)
Infrastructure Finance Update  (Feb. 18) 
Does DFA Fail on Too Big to Fail? (Feb. 17)
Below the Radar/Customs Bill  (Feb. 16) 
International Tax Status  (Feb. 11)
The Fed Holds Steady  (Feb. 10)
Obama's FY17 Budget  (Feb. 9) 
Tax Talk of the Town  (Feb. 3)
Defending Dodd-Frank  (Feb.2)

___________________ 

Mike & Co. --

Federal Reserve governor Lael Brainard is under fire today for making a $750 donation to the Clinton campaign, with Republicans calling it proof positive that the Fed has “cozy ties” with the Executive branch.  

Brainard began her Fed term in 2014; preciously she was Treasury Undersecretary for International Affairs.  The former MIT Professor of Applied Economics and Brookings Fellow has served in half a dozen senior White House and Treasury positions.  

Sen. Shelby acted with alacrity: “Governor Brainard’s contributions to Hillary Clinton’s campaign call into question the political independence of the board,” he said in an emailed statement from his press office. 

Meanwhile, the same Senate Banking Committee Chair has announced he’s ready to hold hearings for some of the 16 nominations -- reviewed below -- which have languished under his tenure. 

Best,

Dana

__________________________________

Update:  Senate Banking Nom Queue

Senate Banking has the ignominious distinction of being the only Senate committee to have not acted on a single nominee before it in the 114th Congress.  There are currently 16 nominations waiting for Committee action.  These aren’t small time positions -- the logjam includes nominees to the Fed’s Board of Governors and senior Treasury, SEC, FDIC, and Ex-Im posts. 

For months, Chairman Shelby has defended his Committee’s inaction by citing two issues -- he was facing a live primary threat and President Obama has not yet nominated a Federal Reserve vice chair for supervision, a prerequisite. 

Logjam Lifting at Long Last?

Shelby's primary behind him, he has scheduled a March 15 hearing for two SEC nominees, Lisa Fairfax and Hester Peirce.  Fairfax teaches at George Washington University and Peirce is a senior research fellow at George Mason’s Mercatus Center. The Committee will not be considering either of the two Federal Reserve nominees, nor Adam Szubin, nominated for Treasury’s top post in terrorism and financial crimes.

Even if the Committee confirms the three nominee scheduled for its next hearing, it will have hardly made a dent in the queue. 

Nominations have continued despite the dearth of hearings on them.  On March 3, President Obama nominated Brian Quintenz and Chris Brummer to the Commodities Futures Trading Commission (CFTC).  Quintenz, a Republican, works for Saeculum Capital in D.C. and Brummer, a Democrat, is a professor at Georgetown University Law School.

Backlog at Banking

With 16 unfilled vacancies before it (Messrs. Quintenz and Brummer will make it  18), the Banking Committee has its work cut out for it.  The Chairman’s refusal  to consider any Fed nominee until Obama nominates a vice chair for supervision means that those two critical positions may remain unfilled longest.   Key vacancies exist at the Export-Import Bank as well, because the board does not have enough members to reach quorum it is unable to approve loans in excess of $10 million, severely hampering its impact on export promotion deals.

With so many nominees waiting to receive a hearing and the number legislative days the Senate remaining this session rapidly dwindling, it’s no surprise that the  Democrats on Banking have been pushing harder than ever for the Chairman to move forward quickly.  

In a letter sent to Sen. Shelby, Ranking Member Sherrod Brown and his colleagues wrote “For more than a year, the committee has failed to carry out one of its basic duties … Failure to act impairs agencies’ and offices’ ability to fulfill all of their functions.”

The pending list includes the nominations below:

Federal Reserve

•  Allan R. Landon, of Utah, to be a Member of the Board of Governors of the Federal Reserve System for the unexpired term of fourteen years from February 1, 2016 [PN 3]. (Reappointment)

•  Kathryn M. Dominguez, of Michigan, to be a Member of the Board of Governors of the Federal Reserve System for the unexpired term of fourteen years from February 1, 2004, vice Jeremy C. Stein, resigned. 

Federal Deposit Insurance Corporation

•   Jay Neal Lerner, of Illinois, to be Inspector General, Federal Deposit Insurance Corporation, vice Jon T. Rymer, resigned 

Treasury Department

•  Adam J. Szubin, of the District of Columbia, to be Under Secretary for Terrorism and Financial Crimes, vice David S. Cohen, resigned  

•  Amias Moore Gerety, of Connecticut, to be an Assistant Secretary of the Treasury, vice Cyrus Amir-Mokri, resigned 

Securities and Exchange Commission

•  Lisa M. Fairfax, of Maryland, to be a Member of the Securities and Exchange Commission for a term expiring June 5, 2020, vice Luis Aguilar, term expired

•  Hester Maria Peirce, of Ohio, to be a Member of the Securities and Exchange Commission for a term expiring June 5, 2021. (Reappointment) 

Export-Import Bank

•  John Mark McWatters, of Texas, to be a Member of the Board of Directors of the Export-Import Bank of the United States for a term expiring January 20, 2019, vice Sean Robert Mulvaney, term expired. ____________________________________

Reeder
Aw
Pm

•   Thurs --  Financial Reg. Nominations
•   Fri -- Update on Tax Bills
•   Mon --  Budget Irresolution 

•   ERI/Housing
•   EU/US Derivatives Deal
•   Pension Crisis

Senate Banking Nominations (Mar. 10)
Survey of the SIFI Landscape  (Mar. 9)
Michigan and the Meaning of Flint  (Mar. 8) Puerto Rico's Debt Crisis  (Mar. 5)
Municipal Finance Caucus  (Mar. 4) 
Flint Bill:  Provisions & Prospects (Mar. 2) 
Top Tax Bills Handicapped  (Feb. 24)
Bigger than the Budget Battle  (Feb. 23)
Infrastructure Finance Update  (Feb. 18) 
Does DFA Fail on Too Big to Fail? (Feb. 17)
Below the Radar/Customs Bill  (Feb. 16) 
International Tax Status  (Feb. 11)
The Fed Holds Steady  (Feb. 10)
Obama's FY17 Budget  (Feb. 9) 
Tax Talk of the Town  (Feb. 3)
Defending Dodd-Frank  (Feb.2)

___________________ 

Mike & Co. --

It may feel like Michigan-morning-after but by dint of Mississippi, HRC padded her delegate lead last night. 

On Monday,  President Obama held a financial regulatory summit in the Roosevelt Room of the White House.  Joined by the heads of the Fed, the FDIC, and the CFPB, Obama declared “I want to dispel the notion that exists both on the left and on the right that somehow, after the crisis, nothing happened," he said. “We did not just rebuild this, we rebuilt it better, and we’ve rebuilt it stronger.”

He has a strong argument.  You can't prove a negative and we will never know how many financial crises were averted by Dodd-Frank.  But metrics bear out the view that Americans and the economy have less to fear today from the Systemically Significant Financial Institutions (SIFIs) than at any time since the turn of the millennium.  More on the regulatory circumstances of SIFIs below.  

Best,

Dana

-------------------------------------------------

A Survey of the SIFI Landscape

The landscape for the eight SIFIs today -- Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, State Street, and Wells Fargo -- is worth looking at from various perspectives.  Presidential candidates on both sides have made a point of criticizing “too big to fail” banks, court proceedings are challenging regulators powers', members of Congress are debating whether to loosen Dodd-Frank Act SIFI rules, and a current Federal Reserve Bank president has spoken out in favor of breaking them up.  But do SIFIs pose the same threat they did in 2008?

The Power of DFA

President Obama hasn’t remained silent in the face of criticism of DFA.  After the Monday summit, Obama said that critics are spreading “cynicism”:  “It is popular … to suggest that the crisis happened and nothing changed.  That is not true.”  The President cited the 14 million new jobs created since his inauguration, proof, he said, that sensible regulations on Wall Street don’t stifle business growth.

Two major business news stories from 2015 support the President’s view:  

·   General Electric continued to sell off GE Capital, its $42 billion investment arm, hoping to exit SIFI status in Q1 2016 as a result of its divestiture.  

·   MetLife has been embroiled in a legal battle with the Financial Stability Oversight Council (FSOC) since the regulator announced in December 2014 that the insurance company was considered a SIFI – arguments were heard in New York this January. 

70 percent of DFA has been implemented by the regulatory agencies since it was passed.   Despite the constraints on SIFIs, they have by and large adapted well, making adjustments faster, earlier and more successfully” than their overseas counterparts. 

·   SIFIs now hold much more capital now than they did before the crisis – to the tune of $700 billion in additional capital, twice the amount prior to it

·   SIFIs have three times the liquidity they had before the crisis

·   Derivatives clearing houses force transparency on SIFI speculation, preventing over-exposure

·    SIFIs now post collateral on their derivatives trades

·    SIFIs submit to rigorous stress testing by the Federal Reserve and FDIC 

·    SIFIs are being forced to draft “living wills,” which have already forced some to streamline or simplify so they can wind down without requiring a bailout

Congressional Update

Congress is split between those who want to reduce regulatory pressure on big banks and those who would rather see it ramped up.  Sen. Shelby, Senate Banking Chair, introduced the Financial Regulatory Improvement Act of 2015, a grab-bag of exceptions and exemptions from regulations, mostly for banks with between $50 and $500 billion in assets.  In a similar vein, Sens Warner, Portman, and Collins introduced the Independent Agency Regulatory Analysis Act to require that regulators undertake a cost-benefit analysis of any rules they wish to implement.

On the flip side, Sens. McCain and Warren’s 21st Century Glass-Steagall Act proposes to split commercial and investment banks in a bid to finally kill off the TBTF problem.  Sens. Warren and Vitter teamed up early in 2015 to introduce a package of amendments to the Federal Reserve Act –- that bill notably would set forward stricter regulations when an entity is considered insolvent, and therefore ineligible for Federal Reserve loans, as well as require that the Fed lend money to distressed institutions at market rates.

The Regulators' Agenda 

Under Basel III requirements for large banks to satisfy Liquidity Coverage Ratios (LCR) were adopted by a number of national regulators, including the Federal Reserve.  While the Fed has floated a rule change allowing some municipal bonds to count as High Quality Liquid Assets (HQLA), that hasn’t stopped Rep. Luke Messer from proposing HR 2209 to force regulators allow a greater share of munis to count as HQLA (see Update, Feb. 18).

The Fed is also working on implementing a rule on Single-Counterparty Credit Limits (SCCL), setting boundaries on credit exposure between large banks or major counterparties.  The rule is meant to prevent banks from becoming overexposed to other financial institutions, preventing them from taking overly large losses in the event that the counterparty fails.  Analysts suspect that firms are nearly $100 billion over the limits imposed by this rule, but Yellen says it is necessary to set a “bright line” on credit exposure.

SIFIs Moving Forward

There is no doubt that the upcoming MetLife ruling will be a critical pivot point for how regulators interact with SIFIs.  If the FSOC is required to retract the firm’s SIFI status it will open the regulator up for a whole slew of challenges from other banks and institutions.  The fate of Congressional proposals to restrict regulator’s efforts, either by determining rules for them or by burdening them with regulations of their own, should be seen as the start of a potential sea change in the regulatory climate.  During his Monday meeting, President Obama warned of this: "If there is a significant challenge in terms of regulating Wall Street and regulating our financial sector it is primarily coming from certain members of Congress who are consistently pressuring independent regulators to back off.”

It is not a bad time to be a SIFI in America – it’s certainly much better to be one now than in 2010.  While DFA has forced restructuring and streamlining to occur, events like the GE Capital sell-off may prove to be exceptions that prove the rule rather than the new normal for SIFIs, especially if MetLife wins its case against regulators.  President Obama was right to point to Congress as the cause of regulatory gridlock; the political will seen after the economic collapse has largely evaporated, giving SIFIs far more breathing room and opening up opportunities to push through “regulatory reform” measures.

_____________________________________

Upcoming/Recent Updates

•   Thurs --  Financial Reg. Nominations
•   Fri -- Update on Tax Bills
•   Mon --

•   ERI/Housing
•   EU/US Derivatives Deal
•   Pension Crisis

Survey of the SIFI Landscape (Mar 8)
Michigan and the Meaning of Flint  (Mar 8) Puerto Rico's Debt Crisis  (Mar. 5)
Municipal Finance Caucus  (Mar. 4) 
Flint Bill:  Provisions & Prospects (Mar. 2) 
Top Tax Bills Handicapped  (Feb. 24)
Bigger than the Budget Battle  (Feb. 23)
Infrastructure Finance Update  (Feb. 18) 
Does DFA Fail on Too Big to Fail? (Feb. 17)
Below the Radar/Customs Bill  (Feb. 16) 
International Tax Status  (Feb. 11)
The Fed Holds Steady  (Feb. 10)
Obama's FY17 Budget  (Feb. 9) 
Tax Talk of the Town  (Feb. 3)
Defending Dodd-Frank  (Feb.2)

___________________ 

Mike & Co.  --

Tomorrow’s Michigan primary election may end up being "yugge" if it seriously opens up the possibility that Trump can put the state in play in November -- “A normal Republican cannot think of bringing in Michigan,” said Trump -- nothing any other GOP presidential candidate could do, now, or for the past 25 years. 

Flint crystallizes so many of the issues that give rise to this new tectonic possibility.  There had to be a debate in Flint because there had to be a debate about it... and the Secretary deserves far more credit than she's getting for making sure it happened. 

In Washington, the Senate is readying to vote on a bipartisan package for drinking water aid.  It’s not a slam dunk, however, as Mike Lee has maintained a hold on the bill, saying political grandstanding is taking the place of policy.  More on all this below. 

Best,

Dana
______________________________________

Flint -- Bills and Broad Strokes

The Michigan legislature approved in January a $28 million appropriation to provide immediate aid to Flint.  Some critics maintain that the need to do so demonstrates the sorry condition of the state’s tax policy.  

The tax base in Flint was eroded significantly during the 1980’s and 90’s as industry jobs left and the population fell.  To deal with the resulting fiscal imbalance the Flint city manager was instructed to cut costs – he did so partly by switching the source of Flint’s drinking water. The broad and deep cuts to state and local budgets affected basic public services most profoundly.  Now, as a direct cause of these cuts, the residents of Flint are grappling with an issue no American ever considered possible – they do not have access to fresh drinking water.

For all the talk of federal aid in infrastructure financing there must be a place made for regular tax payers.  These people bear a significant portion of direct funding for infrastructure projects both in their states and municipalities.  When those tax revenues are redirected, or when state spending is cut to the point that basic services can’t be provided then taxpayers are right to question what, in fact, their taxes are paying for.  

Congressional update:

At the insistence of Democrats, the Flint agreement has been attached to a Senate energy bill introduced by Sen. Murkowski, S. 2012, which is next in line in the Senate following the opioid addiction bill.  The energy bill will be voted on soon, providing that things moves quickly (not a sure bet, since Dems may want to vote on certain amendments to the opioid bill).  Despite these potential hang ups, Senate leadership hopes to wrap up the energy bill by the end of the week – giving them some breathing room before the Senate adjourns for Easter recess by March 21. 

While Sen. Cruz lifted his hold on the bill last week, Mike Lee has continued to block movement on the legislation.  Sen. Lee is claiming that federal aid is not necessary to deal with Flint: “The state of Michigan has an enormous budget surplus this year and a large rainy-day fund, totaling hundreds of millions of dollars," the Senator said in a statement.

Flint agreement:

The bill provides $250 million to assist the residents of Flint, Michigan and other American cities experiencing critical problems with their water supplies by increasing funding for Drinking Water Act State Revolving Funds and provide start-up funding for the new Water Infrastructure Finance and Innovation Act.  It includes:

·       $100 million for Drinking Water State Revolving Funds (SRFs) accessible by any state with a drinking water emergency.  It requires states to submit plans explaining how the money will be spent to address the emergency before funding is provided.   Funds that remain after 18 months will be distributed to all states under the existing SRF formula. 

·       $70 million in funding to back secured loans made under the new Water Infrastructure Finance and Innovation Act (WIFIA).  A federal investment of $70 million could support secured loans of up to $4.2 billion to address water and wastewater infrastructure needs across the country, according to Sen. Inhofe’s office.  All states and all communities with clean water and drinking water infrastructure needs are eligible for this assistance. 

·       $50 million for various in authorized health programs for national use to address and prevent impacts from exposure to lead. 

“Flint” is more than Flint

Flint is a crisis of governance – there is a disconnect in the relationship between citizens and government, and it bridges every demographic.  Just as the poor drink water so do the wealthy, and when a service as basic and fundamental is undermined to the point that an entire town of nearly a hundred thousands is poisoned by its own government, voters will express themselves, given the chance. 

Residents, customers, consumers, taxpayers –- citizens at the end of the day  –- are seeing their government in a significantly different light and thus far are voting differently this year accordingly. Donald Trump would not likely be able to put Michigan in play without this new perspective animation politics in Michigan as much as anywhere. 

_____________________________________

Upcoming/Recent Updates

•   Tues --  Financial Reg. Nominations
•   Wed --  SIFIs and the Fed
•   Thurs -- Update on Tax Bills

•   ERI/Housing
•   Intl Tax Reform
•   EU/US Derivatives Deal
•   Pension Crisis

Michigan and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis  (Mar. 5)
Municipal Finance Caucus  (Mar. 4) 
Flint Bill:  Provisions & Prospects (Mar. 2) 
Top Tax Bills Handicapped  (Feb. 24)
Bigger than the Budget Battle  (Feb. 23)
Infrastructure Finance Update  (Feb. 18) 
Does DFA Fail on Too Big to Fail? (Feb. 17)
Below the Radar/Customs Bill  (Feb. 16) 
International Tax Status  (Feb. 11)
The Fed Holds Steady  (Feb. 10)
Obama's FY17 Budget  (Feb. 9) 
Tax Talk of the Town  (Feb. 3)
Defending Dodd-Frank  (Feb. 2)
Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
The Fed Holds Rates, for Now  (Jan. 28)
Debate Myths Challenged  (Jan. 25)
Regulating the Regulators  (Jan. 21)
Sanders' Tax/Healthcare Policy  (Jan 20)
HRC's Tax Policy  (Jan. 17)
2016 Tax Agenda on the Hill  (Jan. 16)
Glass-Steagall, Take 2  (Jan. 13)
2016 Tax Policy Issues  (Jan. 8)
Sanders Proposals/GS & TBTF (Jan. 7)
Sanders' Fin Reg Proposals  (Jan. 5)
Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
Omnibus Situation  (Dec. 14)

------

Mike & Co. --
The February jobs report came out this morning better than expected.   Once again, the US economy maintained strong job growth without wage gains.  Wages fell 0.1 percent in February, but 242,000 positions were added to the economy, marking 72 months of uninterrupted job gains – the longest streak on record. 

Additionally, labor participation rose by 1.5 million Americans since November – making it the highest it has been in 16 years (62.9 percent of the overall share of Americans).

The report from Puerto Rico is not as sunny.  The territory is still waiting on a Congressional bill designed to handle the ongoing debt crisis on the island.  More  below.

Best,

Dana

______________________________________

Puerto Rico’s Time Bomb

The Puerto Rican debt crisis has been an ongoing concern for both Congress, Wall Street and the Obama administration for some years now – the territory’s bond ratings have been steadily dropping into the junk category and fell from A- in 2005 to CCC+ last April.  At the heart of the matter is $70 billion in bonds that Puerto Rico owes and says it cannot pay on. 

Because Puerto Rican bonds are tax exempt in all 50 states and the District of Columbia, making them incredibly popular investments for mutual funds, pensioners, and big banks.  Over 20 percent of mutual funds in the United States hold at least some Puerto Rican bonds, with $11.3 billion in portfolio, with a further $15 billion in bonds held by hedge funds.  Now that the territory’s bonds are in the “junk” category, pension funds and insurance firms are unable to hold them any longer.

The diverse list of bond holders has thrown a wrench into the plans of those who would rather allow Puerto Rico to default on its obligations – something which would require legislative action (the territory doesn’t have that luxury, unlike states).  If Puerto Rico is allowed to renege on its contractual agreements, the argument goes, then it creates a moral hazard for other entities to do the same rather than make the tough choices necessary to honor their obligations.  The fact that many of these bonds are essentially held by ordinary Americans (through mutual funds and pensions) makes the argument all that stronger for many representatives.  A state hasn’t declared bankruptcy since Arkansas did so in 1933.

Moral hazard is inherent in a debt restructuring deal; here, the path for Puerto Rico toward capital markets after anything of the sort would still be an especially painful one (see: Argentina).  Additionally, there are few serious proposals to grant the island full Chapter 9 status.  Most opt instead for some form of negotiated haircut agreement combined with extending maturities on the bonds; these proposals are likely to succeed, considering Puerto Rico is almost certainly unable to maintain its bond payment schedule without a restructuring agreement.

Administration Position

Testifying before the House Committee on Natural Resources on Feb 25, Treasury official Antonio Weiss warned lawmakers that Puerto Rico needs “an immediate solution” if it’s to survive past May 1, when a $470 million bond payment is due.  Soon after that, on July 1, a $1.9 billion bond payment will come due as well – Puerto Rican representatives have already declared they cannot meet those payments without assistance.

Weiss laid out the administration’s two-part plan: first the territory must be allowed to restructure its debt obligations, second a fiscal oversight board should be established to assist the island with managing its finances.  Importantly, Weiss stopped short of advocating for bankruptcy protection for Puerto Rico and told the committee that “an advisory board is not adequate to do the job” alone.  

House Democrats voiced concern over the financial oversight board, Rep. Luis Gutiérrez: “They’re saying that there’s a joint responsibility, but it seems to me that all of the responsibility is being weighed on the people of Puerto Rico.”  

Meanwhile Republicans claimed that any plan to restructure Puerto Rican debt was a non-starter; a few hours after the hearing the Republican Study Committee announced it would oppose any plan including such a provision.  "Changing the rules mid-game would be unfair to Puerto Rico’s creditors who entered into these arrangements with agreed upon terms and would delegitimize future transactions," said RSC Chairman Bill Flores.

Policy Options

Until recently the two parties have maintained starkly contrasting views on how to best deal with Puerto Rico’s debt crisis – Democrats have pushed for a forced debt restructuring, with some calling for the island to be granted Chapter 9 bankruptcy protections, meanwhile Republicans called for a financial oversight council to make the tough fiscal decisions necessary for Puerto Rico to maintain its debt obligations without reneging on its agreements.

The administration, through Weiss, has advocated a middle of the road approach. By adopting both proposals and avoiding the further edges of each (no bankruptcy, and no unaccountable board staffed by Wall Streeters), the administration hopes to find compromise between each group.  And it seems like it might work.

Finding Compromise

Recently, however, the conservative stance against debt restructuring has lessened – with some Republicans saying that they could support a PR bill as long as it doesn’t include Chapter 9 bankruptcy.  House Natural Resources chair Bob Bishop has been working on a bill for Puerto Rico that does include some element of debt restructuring, and recently said ““I’m sure RSC will be satisfied with what we do … to say that some element of [debt restructuring] could be in there, yeah.”          
The House is still sticking to its end of March deadline set by Speaker Ryan for putting forward a final bill on Puerto Rico on the floor for a vote. 

_____________________________________

Upcoming/Recent Updates

•   Thurs -- Municipal Finance Caucus
•   Fri -- Puerto Rico
•   Mon -- FY17
•   Tues -- 13 D Regs
•   Wed --  TBD

•   SBC Nominations
•   ERI/Housing
•   Intl Tax Reform
•   EU/US Derivatives Deal
•   Pension Crisis

Michigan and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis  (Mar. 5)
Municipal Finance Caucus  (Mar. 4) 
Flint Bill:  Provisions & Prospects (Mar. 2) 
Top Tax Bills Handicapped  (Feb. 24)
Bigger than the Budget Battle  (Feb. 23)
Infrastructure Finance Update  (Feb. 18) 
Does DFA Fail on Too Big to Fail? (Feb. 17)
Below the Radar/Customs Bill  (Feb. 16) 
International Tax Status  (Feb. 11)
The Fed Holds Steady  (Feb. 10)
Obama's FY17 Budget  (Feb. 9) 
Tax Talk of the Town  (Feb. 3)
Defending Dodd-Frank  (Feb. 2)
Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
The Fed Holds Rates, for Now  (Jan. 28)
Debate Myths Challenged  (Jan. 25)
Regulating the Regulators  (Jan. 21)
Sanders' Tax/Healthcare Policy  (Jan 20)
HRC's Tax Policy  (Jan. 17)
2016 Tax Agenda on the Hill  (Jan. 16)
Glass-Steagall, Take 2  (Jan. 13)
2016 Tax Policy Issues  (Jan. 8)
Sanders Proposals/GS & TBTF (Jan. 7)
Sanders' Fin Reg Proposals  (Jan. 5)
Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
Omnibus Situation  (Dec. 14)
FY 2016 Omnibus Talks (Dec. 10)
Customs Bill  (Dec. 8)
Tax Extender Negotiations  (Dec. 6) 
Brown on HFT  (Dec. 4)
Shelby 2.0 Update  (Dec. 3)

________

Mike & Co. --

In half an hour, the BLS jobs report for February is due to be released.  If you'd like an update or have any questions, please let me know. 

Meanwhile, amid the most fractious campaign in recent history comes an initiative in Congress that sounds, well, incongruous with the cacophany.  A broad and bipartisan group of House members is behind the official launch of a caucus this week dedicated to protecting and expanding the tax exemption enjoyed by municipal debt. 

You have to start somewhere and why not with incentives to address the nation's long-neglected infrastructure with tax breaks -- about the only kind of stimulus and jobs measure that can garner bipartisan support?   More on the new Municipal Finance Caucus below.  

Best,

Dana

_____________________________________
A New Caucus

On Tuesday, Reps. Randy Hultgren and Dutch Ruppersberger announced that they have formed the Municipal Finance Caucus to protect the tax-exempt status of municipal debt and reexamine the way it is treated in financial regulations.  In 2015, Hultgren and Ruppersberger sent a letter (reprinted below) to House leadership opposing the President’s proposed 28 percent cap on tax deductions for municipal bonds, signed by over 120 of their colleagues.  

Their announcement coincided with the National Association of State Treasurers’ legislative conference in D.C. The same group drafted another letter, signed by more than 600 state and local officials, which urges the leaders of the House Ways and Means Committee and the Senate Finance Committee to reject curbs to the muni exemption. 

Who’s in it?

Right now just the founding representatives have declared their official membership, but it’s foreseeable that some of the 120 representatives that signed the letter to House leadership in 2015 will join as well.  It’s also seen a s likely that some Senators will want to join the caucus, but the founders haven't made clear if bicameral membership is a priority.

Is it Bipartisan?

Since 2013 Hultgren and Ruppersberger have led bipartisan efforts to draft letters of support for municipal bonds.  The signatories to these letters include members from both sides of the aisle.  Rep. Ruppersberger focuses mostly on local government and is pretty moderate. Rep. Hultgren is a more orthodox conservative Republican. 

What’s the Purpose?

The Caucus plans to defend municipal bonds’ tax exempt status and advocate for regulatory changes which favor those bonds.  Proposals to limit the tax-exempt status of these bonds have been floated in recent years. 

In addition to calling for the bonds to maintain their tax preferred status, the Caucus will push for the passage of HR 2209, legislation considering municipal bonds as a High Quality Liquid Asset (HQLA) – a particularly contentious issue because of the disagreement over how flexible these liquidity rules should be from a systemic risk perspective. 

Positions Taken to Date

The Caucus founders have opposed Obama’s 2015 proposal to cap municipal bond tax exemption at 28 percent. Rep. Hultgren is also a co-sponsor of HR 2209 – the bill to set the liquidity for municipal bond assets at Level 2A (see Update, Feb. 18).  Hultgren said the liquidity rules are an example of how regulators misunderstand municipal bonds, specifically the frequent serial structure of the their issuances.

Many investors flock to municipal bonds for security. But some federal regulators trying to shore up the banking system aren't convinced the bonds would be easy to sell in a crisis. 

Division of Opinion

Division of opinion on HR 2099 falls along unusual lines, with Wall Street, Congress and municipal officials challenging bank regulators' skepticism toward municipal debt.   At issue are new rules aimed at ensuring banks can raise enough cash during a financial-market meltdown to fund their operations for 30 days. The requirements mean banks have to hold more cash or securities that are easily sellable. 

Regulators don't think it is the place of Congress to second guess how they size up securities. Fed Chairwoman Janet Yellen, at a congressional hearing Feb. 11, said legislation would "interfere with our supervisory judgments." 

Big banks such as Citigroup Inc. and Wells Fargo & Co. have sprung into action in lobbying Congress, along with municipal leaders who fret the rules will diminish bank bond-buying which could raise borrowing costs on infrastructure projects.

Hultgren also said the caucus will work to update the number of projects that could be financed by qualified small issue manufacturing bonds, a type of private-activity bond whose proceeds can be used to finance manufacturing facilities for small- and mid-sized manufacturers. The tax code provisions on small industrial development bonds have not been changed since the 1980s, he said. Hultgren sponsored a bill last year entitled “The Modernizing American Manufacturing Bonds Act,” which was focused on expanding opportunities for qualified small issue manufacturing bonds, particularly by changing the national volume cap set by Congress. 

What can be achieved?

Caucuses such as this one don't have the best reputation when it comes to getting things done.  But rules relating to the liquidity value of capital is one of the few policy  areas of any kind where there is bipartisan agreement.  Municipal bonds, in particular, have a universal appeal because of their direct link to local and state infrastructure projects.  At the very least, the caucus will spark some discussion about the best way to both reform existing methods for funding infrastructure investment and find new ways to fund it. 

_________________________________

Recent/Planned Updates

•   Thurs -- Municipal Finance Caucus
•   Fri -- Puerto Rico
•   Mon -- FY17
•   Tues -- 13 D Regs
•   Wed --  TBD

•   SBC Nominations
•   ERI/Housing
•   Intl Tax Reform
•   EU/US Derivatives Deal
•   Pension Crisis

Municipal Finance Caucus  (Mar. 4) 
Flint Bill:  Provisions & Prospects (Mar. 2) 
Top Tax Bills Handicapped  (Feb. 24)
Bigger than the Budget Battle  (Feb. 23)
Infrastructure Finance Update  (Feb. 18) 
Does DFA Fail on Too Big to Fail? (Feb. 17)
Below the Radar/Customs Bill  (Feb. 16) 
International Tax Status  (Feb. 11)
The Fed Holds Steady  (Feb. 10)
Obama's FY17 Budget  (Feb. 9) 
Tax Talk of the Town  (Feb. 3)
Defending Dodd-Frank  (Feb. 2)
Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
The Fed Holds Rates, for Now  (Jan. 28)
Debate Myths Challenged  (Jan. 25)
Regulating the Regulators  (Jan. 21)
Sanders' Tax/Healthcare Policy  (Jan 20)
HRC's Tax Policy  (Jan. 17)
2016 Tax Agenda on the Hill  (Jan. 16)
Glass-Steagall, Take 2  (Jan. 13)
2016 Tax Policy Issues  (Jan. 8)
Sanders Proposals/GS & TBTF (Jan. 7)
Sanders' Fin Reg Proposals  (Jan. 5)
Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29

> On Mar 2, 2016, at 9:39 PM, Dana <[email-masked]> wrote:
> 
> Mike & Co. --
> 
> I hope everyone's had a chance to reflect on the magnitude of yesterday's hard fought primary wins -- with gratitude to those who toiled in the field. 
> 
> On Saturday night, the campaign debate turns to Flint, Michigan -- to the town and the issues it has come to symbolize.   The town's water contamination and related problems finally move center stage. 
> 
> Congress has moved with uncommon alacrity and bipartisanship in recent weeks on legislation to direct funding to address the water issue in Flint and elsewhere.   Here, we look at the bill's provisions, its funding steam, and its prospects.  
> 
> Best,
> 
> Dana
> 
> The Flint Bill -- Provisions & Prospects
> A bipartisan deal has been reached in the Senate last week to aid the beleaguered city of Flint, Michigan as it tries to remedy its drinking water issues.  Sen. Inhofe, the lead GOP Senator on the bill, called it “common-sense," and noted that the spending is already programmed and involves no supplemental appropriation.   The bill may be ready to move forward after Sen. Cruz lifted a hold he had placed on the bill last week.  Sen. Mike Lee is still a hold-out. 
> The bill provides $250 million to assist the residents of Flint, Michigan and other American cities experiencing critical problems with their water supplies by increasing funding for Drinking Water Act State Revolving Funds and provide start-up funding for the new Water Infrastructure Finance and Innovation Act.  It also provides:
> •   $100 million for Drinking Water State Revolving Funds (SRFs) accessible by any state with a drinking water emergency.  It requires states to submit plans explaining how the money will be spent to address the emergency before funding is provided.   Funds that remain after 18 months will be distributed to all states under the existing SRF formula. 
> •   $70 million in funding to back secured loans made under the new Water Infrastructure Finance and Innovation Act (WIFIA).  A federal investment of $70 million could support secured loans of up to $4.2 billion to address water and wastewater infrastructure needs across the country, according to Sen. Inhofe’s office.  All states and all communities with clean water and drinking water infrastructure needs are eligible for this assistance. 
> •   $50 million for various in authorized health programs for national use to address and prevent impacts from exposure to lead. 
> Where will the money come from?   The package has been fully paid for -- it redirects appropriations by taking funds from the Advanced Technology Vehicles Manufacturing (ATVM) Fund, which offers loans for auto companies. 
> Does that matter?   Per Sen. Inhofe “[the ATVM is] a failed program that hasn’t been used in more than a year and has only issued five loans since 2008."
> More on ATVM: The ATVM program is authorized to award up to $25 billion in loans; there is no deadline for completing such loan commitments. Congress funded the program in 2009, when it appropriated $7.5 billion to cover the subsidy cost for the $25 billion in loans, as well as $10 million for program implementation. Since the start of the program, DOE has awarded $8.4 billion in loans to five companies. As of January 2015, ATVM has $16.6 billion in remaining loan authority. No new loans have been made since 2011. Two companies — Fisker and the Vehicle Production Group — were unable to make payments on their loans, and DOE auctioned the loans off in the fall of 2013. Tesla paid off all of its loan in 2013, nine years ahead of schedule. 
> Criticisms of ATVM: The unobligated funds remaining for the program have been a point of contention in recent appropriations debates. The House has voted several times to transfer some of the unused appropriation for the ATVM subsidy costs to other purposes. None of these transfers were enacted. Other legislators have sought to expand the program. Two recent federal reports call for rescinding the program’s unobligated balance: the FY2015 budget resolution reported by the House Budget Committee calls for outright rescission, and an April 2014 GAO report recommends Congress consider taking the same step unless DOE can generate new demand for the program.
> Legislative Strategy:   Architects of the bipartisan deal put out a hotline request to see if anyone would object to a series of procedural moves that would split Flint aid off the energy bill (S. 2012), attach it to a House bill (H.R. 4470) sponsored by Reps. Dan Kildee and Fred Upton, allow voice votes on 30 amendments to the energy bill, and allow roll call votes on eight additional amendments. Michigan Sens. Debbie Stabenow and Gary Peters said Democrats are on board, but in order to achieve unanimous consent, Republicans need to sign on. 
> Will it pass?  The Flint package and the energy bill amendments would come to a vote only after the Senate gets unanimous consent to some procedural maneuvers. Lee's hold went unnoticed earlier when GOP presidential candidate Sen. Ted Cruz had a hold of his own, which he has now lifted. The Senate had hoped to hold votes on Flint and end debate on the energy bill as early as next week.                                                
> What’s Next?   Sen. Stabenow, a key leader on the bill, predicted that “one way or another” the package would be voted on in the Senate this week.  And while the House hasn't decided what it will do if the Flint bill clears the Senate, Energy and Commerce Committee Chairman Fred Upton said it would move quickly.
> 
> The Obama administration, which declared Flint a federal emergency in January freeing up much-needed funds for the distressed city, has not issued an official stance on the Flint deal.  Early in the year the President also made available to the state of Michigan $80 million from a revolving fund for infrastructure repair and improvement.  
> 
> A number of important events are scheduled for the month of March, listed below.
> 
> •   March 3 -- Flint is supposed to begin its lead service line replacement project.
> 
> •   March 6 -- The 7th Democratic debate will take place in the city of Flint, MI.  
> 
> •  March 15 --  House Committee on Oversight and Government Reform will hold its next hearing on the Flint crisis.  On schedule is testimony on the Safe Drinking Water Act (SDWA) by various policy professionals.
> 
> •   March 17 --  Hearings resume on SDWA oversight, with Michigan Governor Rick Snyder and EPA Administrator Gina McCarthy scheduled to testify.
> 
> Upcoming/Recent Updates
> 
> •   Wed -- Flint 
> •   Thurs -- Municipal Finance Caucus
> •   Fri -- Puerto Rico
> 
> •   Budget Irresolution
> •  13 D Regs
> •   ERI/Housing
> •   Intl Tax Reform
> •   EU/US Derivatives Deal
> •   Pension Crisis
> 
> Flint Bill:  Provisions & Prospects (Mar. 2) 
> Top Tax Bills Handicapped  (Feb. 24)
> Bigger than the Budget Battle  (Feb. 23)
> Infrastructure Finance Update  (Feb. 18) 
> Does DFA Fail on Too Big to Fail? (Feb. 17)
> Below the Radar/Customs Bill  (Feb. 16) 
> International Tax Status  (Feb. 11)
> The Fed Holds Steady  (Feb. 10)
> Obama's FY17 Budget  (Feb. 9) 
> Tax Talk of the Town  (Feb. 3)
> Defending Dodd-Frank  (Feb. 2)
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
> The Fed Holds Rates, for Now  (Jan. 28)
> Debate Myths Challenged  (Jan. 25)
> Regulating the Regulators  (Jan. 21)
> Sanders' Tax/Healthcare Policy  (Jan 20)
> HRC's Tax Policy  (Jan. 17)
> 2016 Tax Agenda on the Hill  (Jan. 16)
> Glass-Steagall, Take 2  (Jan. 13)
> 2016 Tax Policy Issues  (Jan. 8)
> Sanders Proposals/GS & TBTF (Jan. 7)
> Sanders' Fin Reg Proposals  (Jan. 5)
> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
> Omnibus Situation  (Dec. 14)
> FY 2016 Omnibus Talks (Dec. 10)
> Customs Bill  (Dec. 8)
> Tax Extender Negotiations  (Dec. 6) 
> Brown on HFT  (Dec. 4)
> Shelby 2.0 Update  (Dec. 3)
> 
> 
> Mike & Co. 
> This has been a busy week in Washington especially on the tax front, with more to follow.  We've already seen a number of hearings and developments on the most salient current tax bills and related proposals in the last two days, which are  itemized and vetted for viability below.
> 
> Tomorrow, an assessment of which of these, as well as "must-pass" tax items such as the expiring extenders, will make it to Obama's desk by year-end and a review of Brookings' panel discussion, "Tax policy in 2016: What's new and what's next," with Ways and Means Chair Kevin Brady and Senate Finance ranking member Ron Wyden. 
> 
> Best,
> 
> Dana
> 
> ______________________________________
> 
> • International Tax Reform --
> 
> Probably the most likely tax legislation to pass in 2016, even though it's still called unlikely by key policymakers.  The two parties will have difficulty coming to an agreement on first what to do and then how to do it.  Narrower legislation is more likely to succeed than comprehensive reform.  Most viable bills in this area:
> 
> •  Earnings Stripping --  On the eve of today’s Ways and Means hearing regarding international tax reform,  ranking member Chris Van Hollen and senior member Sander Levin offered bills to constrain the practice whereby foreign parent companies extend large loans to their newly acquired U.S. partners and take advantage of the tax-deductible status of interest payment arrangement.  
> 
> •. Exit Tax Bills --  Bills seeking to reduce corporate inversions by making them too expensive to make business sense are likely to be introduced before next recess. 
> 
> •  Repatriation --  Ryan and Schumer have talked up the idea of introducing legislation to repatriate U.S. multinational profits that are held abroad.  A compromise will have to be struck between Democrats seeking reduced tax levels for this purpose and Republicans who cite moral hazard.  The Obama budget for FY2017 includes a proposal to allow overseas profits to come home at a special 14 percent trate, and all overseas profits thereafter be taxed at 19 percent. 
> 
> •  Broader Corporate Tax Reform  --   
> 
> Any successful across the board corporate tax reform would almost have to lower the nominal corporate tax rate of 35 percent.  -- the highest in the world.  Republicans are adamant that the high rate yields corporate inversions.  Ways and Means chair Brady has pointed to the corporate rate repeatedly as a sign that the U.S. has a “broken tax code that discourages investment and growth.” 
> 
> Brady has not yet released his own reform bill, but an op-ed of his published this morning gives an indication of what it will include:  “We must address the real root of the problem – our broken tax code that discourages investment and growth … Our sky-high 35 percent corporate tax rate bears much of the blame … We cannot allow American taxpayers to foot the bill for tax revenue grabs in Europe and elsewhere.”
> 
> Provisions to look for: a lower overall corporate tax rate, language to address European investigations on U.S. businesses dodging taxes abroad.  The bill likely won’t include language restricting inversions.  
> Senate Finance chair Hatch has suggested writing legislation to make dividends tax deductible for corporations, eliminating the so-called “double taxation” of hitting corporate earnings as well as dividend incomes from investors.  The proposal faces long odds. 
> 
> 
> •  Earned-Income Tax Credit (EITC) -- 
> 
> One tax provisions in the Obama FY17 budget that has been muted if not mooted this week is his proposal to expand the EITC for childless workers and create a $500 “second earner” tax credit.  The cost would be $150 billion over ten years. 
> 
> During his SOTU, Obama expressed his desire to work with Speaker Ryan on the issue:  “I also know Speaker Ryan has talked about his interest in tackling poverty. America is about giving everybody willing to work a chance, a hand up. And I’d welcome a serious discussion about strategies we can all support, like expanding tax cuts for low-income workers who don't have children.”
> 
> The credit is a long-standing darling of both progressives and the GOP establishment. Ryan and President Obama support extending it to childless workers.  But they face resistance from not just the hard right but from Sen. Hatch, who say it’s not “necessary” to expand the break. 
> 
> Upcoming/Recent Updates
> 
> 
> •  Derivatives Agreement w. EU
> •  Budget (Ir)Resolution
> •  Puerto Rico
> •  Econ. Revitalization/Housing
> 
> Top Tax Bills Handicapped  (Feb. 24)
> Bigger than the Budget Battle  (Feb. 23)
> Infrastructure Finance Update  (Feb. 18) 
> Does DFA Fail on Too Big to Fail? (Feb. 17)
> Below the Radar/Customs Bill  (Feb. 16) 
> International Tax Status  (Feb. 11)
> The Fed Holds Steady  (Feb. 10)
> Obama's FY17 Budget  (Feb. 9) 
> Tax Talk of the Town  (Feb. 3)
> Defending Dodd-Frank  (Feb. 2)
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
> The Fed Holds Rates, for Now  (Jan. 28)
> Debate Myths Challenged  (Jan. 25)
> Regulating the Regulators  (Jan. 21)
> Sanders' Tax/Healthcare Policy  (Jan 20)
> HRC's Tax Policy  (Jan. 17)
> 2016 Tax Agenda on the Hill  (Jan. 16)
> Glass-Steagall, Take 2  (Jan. 13)
> 2016 Tax Policy Issues  (Jan. 8)
> Sanders Proposals/GS & TBTF (Jan. 7)
> Sanders' Fin Reg Proposals  (Jan. 5)
> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
> Omnibus Situation  (Dec. 14)
> FY 2016 Omnibus Talks (Dec. 10)
> Customs Bill  (Dec. 8)
> Tax Extender Negotiations  (Dec. 6) 
> Brown on HFT  (Dec. 4)
> Shelby 2.0 Update  (Dec. 3)
> 
> ----
> 
> Mike and Co. --
> 
> The soap opera that is the federal budget making process saw sone minor prima donna pratfalls this week.  Nothing remotely on the scale of blocking the confirmation of a Supreme Justice.  But as Senate Budget's ranking member Sen. Cardin warned at a breakfast today, you can forget regular order on the budget -- after the President submits a nomination, all comity in the Senate will be gone until Election Day. 
> 
> Details and the latest below.  Taxes tomorrow (be still your heart, right?). 
> 
> Best,
> 
> Dana 
> 
> Story in the Senate
> 
> At the same DSCC  breakfast one month ago, Sen. Merkley announced that, to his surprise, Senate Budget Chair Mike Enzi was going to put out a manager's mark for an FY17 budget resolution for Committee markup, for February.  Today, Enzi withdrew his markup plans, without announcing a reschedule date.
> 
> To add to the growing problems within the GOP, the party, led by Senator Mitch McConnell, has declared all-out war on Obama’s impending Supreme Court nomination -- an "nomination abomination" -- making it even more difficult to predict how these budget deliberations will end. 
> 
> Histrionics of the House 
> 
> Even before Obama released his FY2017 budget proposal earlier this month, House Republicans made it a point to emphasize that it was DOA.  Now, GOP is running into some dead ends of its own. 
> 
> Speaker Ryan announced early on that he intended to pass the budget through regular order this year -- a process that hasn’t been successfully completed in a generation.  Due to internal dicisions and outside pressures, House Republicans have changed their tune.  
> 
> Yesterday, House Budget announced plans for a proposal next month to stick with the spending levels set by last fall’s deal with the White House while also giving members the chance to vote on other bills that would slash government spending. The compromise is meant to appease hard-right GOP members who vehemently opposed the Obama-Boehner budget agreement.  Per Ryan's office: “This proposal enjoys the overwhelming support of the committee members, and the chairman looks forward to sharing it with the broader Conference as we continue moving this process forward.”
> 
> The conservative Freedom Caucus so far has supported Speaker Ryan’s overtures for cooperation on the budget.  But the GOP's hard-right wing may not remain so understanding of the Speaker’s position, especially if their credentials are called into question by outside groups with sway over their base of support.   Heritage Action said Monday that the group would oppose any budget blueprint that sticks to the Obama-Boehner deal, which increases spending by about $30 billion.
> 
> Going Forward 
> 
> It won't be an easy road ahead on the budget.   The conservative caucus has several dozen members, which gives it the power to torpedo any budget proposal that lacks at least some Democratic support.  If it decides to back the new proposal put forth by Chair Tom Price of House Budget, it would be likely for GOP leaders to be able to move forward.  Some members have voiced their willingness to cooperate, but the pull of outside right-wing groups may prove to be too strong.
> 
> Meanwhile, Minority Whip Steny Hoyer said today that any Republican budget strategy that strays from the Obama-Boehner deal would be opposed by House Democrats. 
> 
> The House Budget plan is to submit the proposal honoring the spending limits agreed to last year, while allowing the hard-right GOP wing to vote on other bills which would slash spending, mollifying the more hawkish members.  
> 
> Dearth of Legislative Days
> 
> Lengthening the odds against Ryan, the House Budget is now working on a delayed schedule.  In mid-January, the House Budget Committee announced that it would be releasing its markup of the White House budget proposal early -– on February 25. However, that has also changed. Yesterday, The Committee announced that it was now delaying its markup till sometime in March.  The change is curious for a few reasons.  It raises the question of why the House Budget Committee said it would have the markup done so early in the first place. Moreover, it goes against the House Republicans message of “getting things done” during this Congress. 
> 
> Democrats are jumping on this delay already.  Nancy Pelosi said: “Yet again, it’s the Speaker’s own broken promises – and his own rhetoric – that are coming back to bite him.  Because while the Speaker pledged an end to dysfunctional House-Republican leadership, all the American people are seeing is more of the same.”  
> 
> One thing is looks increasingly likely: that the nomination will exert a tidal force on at least the budget deliberations and everything else, through the election.  
> 
> 
> 
> 
> 
> Upcoming/Recent Updates
> 
> •  Tax Talk
> •  Derivatives Agreement w. EU
> •  Puerto Rico
> •  Econ. Revitalization/Housing
> 
> Infrastructure Finance Update  (Feb. 18) 
> Does DFA Fail on Too Big to Fail? (Feb. 17)
> Below the Radar/Customs Bill  (Feb. 16) 
> International Tax Status  (Feb. 11)
> The Fed Holds Steady  (Feb. 10)
> Obama's FY17 Budget  (Feb. 9) 
> Tax Talk of the Town  (Feb. 3)
> Defending Dodd-Frank  (Feb. 2)
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
> The Fed Holds Rates, for Now  (Jan. 28)
> Debate Myths Challenged  (Jan. 25)
> Regulating the Regulators  (Jan. 21)
> Sanders' Tax/Healthcare Policy  (Jan 20)
> HRC's Tax Policy  (Jan. 17)
> 2016 Tax Agenda on the Hill  (Jan. 16)
> Glass-Steagall, Take 2  (Jan. 13)
> 2016 Tax Policy Issues  (Jan. 8)
> Sanders Proposals/GS & TBTF (Jan. 7)
> Sanders' Fin Reg Proposals  (Jan. 5)
> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
> Omnibus Situation  (Dec. 14)
> FY 2016 Omnibus Talks (Dec. 10)
> Customs Bill  (Dec. 8)
> Tax Extender Negotiations  (Dec. 6) 
> Brown on HFT  (Dec. 4)
> Shelby 2.0 Update  (Dec. 3)
> 
> 
> Mike & Co. --
> 
> One week ago, the House passed a bill that could alter and perhaps ease the way state and local infrastructure is financed in the capital markets, when HR.2209, a bill to "require the appropriate Federal banking agencies to treat certain municipal obligations as level 2A liquid assets, and for other purposes" was adopted by the House with a voice vote.  
> 
> Thought the bill has flown below the media radar, it is significant.  Municipal obligations, including bonds, are at the heart of infrastructure investment in America.  And infrastructure investment has been a large focus of this primary.  Both Democratic candidates have proposed multi-hundred billion dollar infrastructure investment proposals.
> 
> Details below...
> 
> Best,
> 
> Dana
> 
> Infrastructure is mostly funded at the state or local level through the use of municipal bonds.  Between 2003 and 2012, counties, states, and other localities invested $3.2 trillion in infrastructure through long-term tax-exempt municipal bonds, 2.5 times more than the federal investment.  
> 
> The Bill
> 
> HR 2209 requires federal banking regulators to include municipal bonds under the Liquidity Coverage Ratio (LCR).  The LCR is designed to ensure that financial institutions have the necessary assets available to handle a liquidity disruption.  Local officials have said that if the new rules aren’t changed, it will saddle them with higher borrowing costs by eliminating incentives banks have to purchase their bonds. Without bonds, these governments will lose a significant source of their funding.  Per Indiana State Treasurer Kelly Mitchell: “This bill helps ensure cash-strapped school districts and municipalities will continue to have access to bonds to finance projects they think are best for their communities.” 
> 
> Rep. Luke Messer, an Indiana Republican who wrote the bill:  “Put simply, our bill requires the federal government to recognize the obvious, that our municipal bonds are some of the safest investments in the world and that we shouldn’t have rules that give preferential treatment to corporate bonds or other countries’ bonds over our own.” 
> 
> After passing the House with unanimous bipartisan support, a companion bill is expected to be introduced in the Senate this year.  
> 
> Municipal Bond Issue
> 
> After the crisis of 2008, federal regulators adopted international banking standards that require banks to have enough "High-Quality Liquid Assets" to cover their cash outflows for 30 days in case of a future financial meltdown.  Now, municipal bonds are not considered liquid assets and therefore cannot be included under the  LCR.   As a result, financial institutions have been discouraged from holding municipal debt, which means that cash strapped municipalities and school districts may eventually be forced to reduce or even stop work on projects  financed with municipal bonds. 
> 
> Infrastructure Financing -- Alternative Financing
> 
> •   Tax-exempt bonds:  Exemption from federal taxes and many state and local taxes is possible through the use of municipal bonds.   In recent years, with the increasing use of PPPs, barriers to this tax exemption have arisen.  Treasury has reviewed relevant tax rules and based on their findings and have put forth a proposal for an expanded and permanent America Fast Forward Bond Program as an alternative to tax-exempt bonds.  Based on the successful Build America Bond program, “would provide an efficient borrowing subsidy to state and local governments while appealing to a broader investor base than traditional tax-exempt bonds [and] would cover a broad range of projects for which tax-exempt bonds can be used.” 
> 
> •  Obama’s budget proposal:  Obama has also put forth a plan to strengthen local and state government infrastructure projects. His plan relies on a new Federal credit program to support public-private partnerships within the Department of the Treasury. It will provide direct loans to US infrastructure projects developed through PPPs. The Obama Administration believes that private investment is crucial for infrastructure development moving forward, so there should be more flexibility in regards to what PPP is subject to. In addition to that, President Obama has proposed the taxable, direct-pay America Fast Forward bond program to help finance infrastructure.  
> 
> State Infrastructure Banks
> 
> Local governments receive financing in a number of ways.  Traditional sources such as tax revenues have been dwindling and local authorities have been relying on federal government loan programs, public-private partnerships, and State Revolving Funds (SRFs).  State Infrastructure Banks (SIBs) are a subset of SRFs -- the funds act like a bank, because they don’t own the infrastructure asset, but act as a lender or guarantor to the project sponsor. Per Brookings:  “SRFs rely on principal repayments, bonds, interest and fees to re-capitalize and replenish the fund as a perpetual source of debt financing.”
> 
> SIBs generate more investment per dollar than traditional federal and state grant programs.  They only exist in 33 states and 10 of those SIBs are currently inactive. A large problem may be compliance with federal regulations.  Brookings again: 
> 
> “We found that many SIB officials cite compliance with federal regulations as slowing down the investment process either because of environmental and contractual requirements or due to the lack of flexibility in projects that are not Title 23 or 49 eligible. For states with smaller projects, this may be prohibitively costly compared to the advantage of using the low-cost SIB financing.” 
> 
> Just being called a bank subjects SIBs to regulations that commercial banks are subject to.  SIBs are non-for-profit organizations with a goal of increasing infrastructure investment, so they don’t quite fit into the category of the average bank.  SIBs may be more successful outside this classification.  
> 
> For or Against Dodd-Frank
> 
> Before Dodd-Frank, particularly in the case of relatively small municipalities, many underwriters forged long-term relationships with municipalities and would provide financial advice before and after a bond issuance.  With Dodd-Frank, that relationship changed, with a new “municipal adviser” category that must register with the SEC and be regulated by the Municipal Securities Rulemaking Board (MSR).  Now, it is widely illegal to provide advice to governmental entities concerning the issuance of municipal bonds, the use of financial derivatives, and the investment of the proceeds of a bond issue to, or on behalf, of a municipal entity or an obligated person unless the adviser is registered with the SEC. 
> 
> HR 2209 appears to address a problem within Dodd-Frank, but it is unclear if it vitiates the law materially.  At face value, it appears to be more a technical fix. Dodd-Frank expanded regulations for banking institutions, but the entities that fund state and local governments are far unlike the TBTF institutions that Dodd-Frank was meant to regulate.   
> 
> Groups like Americans for Financial Reform oppose HR 2209: “While we sympathize with the belief that municipal debt was incorrectly treated under the initial LCR rule, we believe that it is inappropriate to classify such debt as a Level 2A asset. AFR therefore opposes this bill unless a more appropriate liquidity classification is used.”  AFR has previously said it supports treating municipal bonds as more liquid and does not approve the type of classification used in HR 2209, because it goes too far in its treatment of municipal debt as level 2A liquid assets and specifically with micromanaging regulators with this kind of detail and they prefer a Level 2B classification. 
> 
> The bill could provide relief for smaller institutions, so that they can fund infrastructure investment more easily. In terms of Dodd-Frank, it is yet to be decided if it is simply a necessary tweak or a criticism.                              
> 
> Looking Ahead
> 
> HR 2209 could end up being an important issue in the national infrastructure discussion.  It brings up questions about how far a state or local government can go before its activities begin to resemble an actual bank.  With the growth of PPPs, the private sector is being even more integrated into the process – should those companies be given tax exemptions, as well? 
> 
> 
> 
> Upcoming/Recent Updates
> 
> •  Derivatives Agreement w. EU
> •  Budget (Ir)Resolution
> •  Puerto Rico
> •  Econ. Revitalization/Housing
> 
> Infrastructure Finance Update  (Feb. 18) 
> Does DFA Fail on Too Big to Fail? (Feb. 17)
> Below the Radar/Customs Bill  (Feb. 16) 
> International Tax Status  (Feb. 11)
> The Fed Holds Steady  (Feb. 10)
> Obama's FY17 Budget  (Feb. 9) 
> Tax Talk of the Town  (Feb. 3)
> Defending Dodd-Frank  (Feb. 2)
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
> The Fed Holds Rates, for Now  (Jan. 28)
> Debate Myths Challenged  (Jan. 25)
> Regulating the Regulators  (Jan. 21)
> Sanders' Tax/Healthcare Policy  (Jan 20)
> HRC's Tax Policy  (Jan. 17)
> 2016 Tax Agenda on the Hill  (Jan. 16)
> Glass-Steagall, Take 2  (Jan. 13)
> 2016 Tax Policy Issues  (Jan. 8)
> Sanders Proposals/GS & TBTF (Jan. 7)
> Sanders' Fin Reg Proposals  (Jan. 5)
> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
> Omnibus Situation  (Dec. 14)
> FY 2016 Omnibus Talks (Dec. 10)
> Customs Bill  (Dec. 8)
> Tax Extender Negotiations  (Dec. 6) 
> Brown on HFT  (Dec. 4)
> Shelby 2.0 Update  (Dec. 3)
> 
> ----
> 
> 
> Mike & Co.  --
> 
> The newly-installed the Minneapolis Federal Reserve Bank and former Special Investigator overseeing the TARP program came to town yesterday advocating drastic action to head off a financial sector systemic risk crisis, calling for the nation's biggest banks to be broken up. 
> His speech, delivered at Brookings, got noticed, with lengthy coverage in the NYT, WSJ, and WaPo.  And perhaps with reason -- the TBTF (too big to fail) issue has dogged Congress and the administration for years and is one of the central ones in the Democratic presidential campaign this far. 
> 
> Or maybe it was just a slow news day.  You decide...
> 
> Best, 
> 
> Dana
> 
> 
> 
> A Peculiar Package of Proposals
> 
> Kashkari argued in the alternative that Dodd-Frank needs to be used and/or needs to be reformed.  He says the law as written does not solve the TBTF problem.  He also wants regulators to use the yet-untried tools at their disposal under the law.   “While significant progress has been made to strengthen our financial system, I believe the [Dodd-Frank] Act did not go far enough."  He then laid out three ideas meant to end TBTF once and for all.  
> 
> •  break up large banks into smaller, less connected, less important entities;
> 
> •  turn what remains of the large banks into public utilities by forcing them to hold so much capital that they can’t fail; and
> 
> •  tax leverage throughout the financial system "to reduce systemic risks wherever they lie."
> 
> •  Break up the Banks
> 
> From the perspective of current laws, breaking up big banks is already a policy avenue available to regulators.  The Federal Reserve, through the Financial Stability Oversight Council, can elect to take a number of actions to deal with banks that it feels are both systemically important and organized in an unstable way.  Section 121 of the Dodd-Frank Act gives the Board of Governors these powers.  
> 
> So this first proposal – break up big banks - has been covered here before but just for the sake of argument... which banks need to be broken up most urgently?  Few commentators believe there is an imminent threat demanding action.  
> 
> Unsurprisingly, the Fed doesn’t believe that banks are so hopeless that they need to be dissolved.  That doesn’t mean it’s not a possibility under current legislation, however.
> 
> •   Make Banks “Utilities”
> 
> The second proposal is to push capital requirements for banks so high that they “essentially turn into public utilities.”  Kashkari never explains how exactly high capital reserves turn banks into utilities, but that’s for another time.  
> 
> He is voicing his support for one of the oldest forms of banking regulations that we still use and use far more now in the Dodd-Frank era – he wants banks to hold more capital.  Supporters of the law may be heartened by his full-throated endorsement of the law on this score. 
> 
> •   Cribbing from Clinton?
> 
> The third proposal was just about lifted out of Secretary Clinton’s plan to regulate Wall Street –- though the reporting on the speech doesn’t much mention it much.  It is reasonable both from a policy and a political perspective. But he doesn't provide further details about his proposal after first outlining it.
> 
> Kashkari contra Yellen
> 
> Fed Chair Yellen has been an outspoken proponent of existing banking regulations, making it known that while the job of regulators is not done yet. we’re in a much better situation now than we were before DFA.  During her testimony before House Financial Services, Yellen fielded a question about why she had not yet broken up big banks, saying: “…we [at the Fed]vare using our powers to make sure that a systemically important institution could fail, and it would not be -- have systemic consequences for the country. We're doing that in a whole variety of ways.”  
> 
> The ways Yellen is referring to include enforcing Liquidity Coverage Ratios, capital reserve requirements, and a rule passed last November forcing the biggest banks to issue long-term debt equal to 18 percent of risk-weighted assets.  
> 
> Evidently it's not enough.  But it is nonetheless uncommon for a newly minted Federal Reserve Bank President to taking to task the Chair of the Federal Reserve’s Board of Governors.
> 
> 
> 
> Upcoming/Recent Updates
> 
> •  Municipal Bond Rule
> •  Budget (Ir)Resolution
> •  Puerto Rico
> •  Derivatives Agreement w. EU
> •  Econ. Revitalization/Housing
> 
> Does DFA Fail on Too Big to Fail? (Feb. 17)
> Below the Radar/Customs Bill  (Feb. 16) 
> International Tax Status  (Feb. 11)
> The Fed Holds Steady  (Feb. 10)
> Obama's FY17 Budget  (Feb. 9) 
> Tax Talk of the Town  (Feb. 3)
> Defending Dodd-Frank  (Feb. 2)
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
> The Fed Holds Rates, for Now  (Jan. 28)
> Debate Myths Challenged  (Jan. 25)
> Regulating the Regulators  (Jan. 21)
> Sanders' Tax/Healthcare Policy  (Jan 20)
> HRC's Tax Policy  (Jan. 17)
> 2016 Tax Agenda on the Hill  (Jan. 16)
> Glass-Steagall, Take 2  (Jan. 13)
> 2016 Tax Policy Issues  (Jan. 8)
> Sanders Proposals/GS & TBTF (Jan. 7)
> Sanders' Fin Reg Proposals  (Jan. 5)
> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
> Omnibus Situation  (Dec. 14)
> FY 2016 Omnibus Talks (Dec. 10)
> Customs Bill  (Dec. 8)
> Tax Extender Negotiations  (Dec. 6) 
> Brown on HFT  (Dec. 4)
> Shelby 2.0 Update  (Dec. 3)
> 
> 
> Mike & Co.  --
> 
> A national holiday, a snowstorm, and a congressional recess stilled DC yesterday and a quiet week is expected.  It gives us a chance to have a look at some developments thus far this year that have flown below the radar.
> 
> Today's item is the one bill on its way to the President’s desk -- the Customs bill -- and the caboose attached to it that extends the internet tax moratorium permanently  and may be the bill's important title... at least until the TPP comes up on the Senate floor. 
> 
> Best,
> 
> Dana
> 
> 
> 
> The Customs Bill:  Comity on the Hill
> 
> The Senate cleared the first overhaul of the Customs and Border Protection (CBP) agency in more than a decade in a 75-20 vote last Thursday, sending the bill to the President and ending months of wrangling over the measure.  The Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) retools CBP to increase its focus on blocking illegal trade and ensuring that legal trade moves smoothly.
> 
> The major facets of this legislation are:
> 
> •  new protections on intellectual property rights
> •  new tools to fight currency manipulation
> •. a permanent extension of the Internet Tax Freedom Act
> 
> Said Senate Finance ranking member Ron Wyden:  “This bill is about coming down hard on the trade cheats who are ripping off American jobs, and the truth is past trade policies were often too old, too slow or too weak for our country to fight back."
> 
> Wyden was perhaps the most outspoken Democrat in support of the bill, continuing his role as a strong backer of free trade legislation.  He was a key factor in getting Trade Promotion Authority legislation passed through Congress last summer, splitting from some of his colleagues in voicing support for that act.
> 
> Unusual Coalition
> 
> 27 Democrats, 47 Republicans, and 1 Independent voted affirmatively.  Industry groups including the National Retail Federation, as well as the U.S. Chamber of Commerce were supportive of the legislation.  National Association of Manufacturers’ president Jay Timmons said “if senators want to grow manufacturing in the United States, then they should pass this bill immediately.”
> 
> Notable “Nay” votes include Sens. Durbin and Reid, who both expressed disappointment that the legislation was a “watered down” version of a bill previously passed by the Senate.  ”I like that [Senate] version, and that strong language on currency manipulation,” Durbin said – that language required Commerce to consider “undervalued” currencies to be equivalent to countervailable subsidies.  “The conference report that’s back to us now and before the Senate at this moment is a much different bill."
> 
> Purpose and Provisions
> 
> House and Senate negotiators agreed on a final customs bill in December.   The House passed the measure 256-158 but the legislation stalled in the Senate over a provision added in conference that permanently extends a moratorium on Internet access taxes.
> 
> That provision is perhaps the most reported on section in the bill – it’s almost certainly the most popular - it applies to localities, states, and the federal government itself.   Sen. Lamar Alexander cited it though as explanation for his “nay” vote: "the federal government shouldn't be telling the states what their tax structure should be."
> 
> Another important provision, known as the ENFORCE Act, would require the CBP to more aggressively investigate complaints that companies are evading anti-dumping or countervailing duties on imports by mislabeling or disguising the shipments.
> 
> The bill includes a new Trade Enforcement Fund to bring trade cases through the WTO, to investigate the implementation of trade requirements by other countries, and to respond to complaints of trade violations.  It also creates a nine-member Advisory Committee on International Exchange Rate Policy, whose members must be comprised of individuals from the private sector who are selected by both chambers of Congress and the President (three members each).
> 
> Currency Manipulation
> 
> Currency manipulation has been a long-standing concern of American policy-makers and a particularly contentious issue in global trade relations; claims that China has been chronically undervaluing its currency have made the news for a number of years.  Advocates for stricter enforcement of currency manipulation provisions claim that undervalued currencies operate similarly to export subsidies – a prohibited practice within the World Trade Organization.
> 
> The final bill dropped a Senate provision that would have required the Commerce Department to treat undervalued currency as an illegal subsidy under U.S. countervailing duty law.  This provision would have opened the door for compensatory tariffs to be levied against goods which originate from countries which are found to purposely undervalue their currency in order to boost their exports. The bill does, however, include other measures that give the Treasury Department new tools to fight currency manipulation:
> 
> •  creates a special fund for the CBP to ensure trading partners follow the rules and to bring disputes before the WTO
> •  increases funding to the National Intellectual Property Rights Coordination Center
> •  establishes the Commercial Customs Operations Advisory Committee jointly between CBP and Treasury
> •  requires CBP to investigate claims from other agencies of evasion of anti-dumping or countervailing duties.
> 
> Relation to TPP
> 
> Sen. Majority Leader McConnell has said that the Senate will not vote on the Trans-Pacific Partnership before the November elections, so it may come as a surprise to see a bill which deals with enforcing trade deals like TPP pass both houses of Congress.  However this bill’s provisions for protecting IP rights, toughening countervailing duties, and tackling currency manipulation are a necessary prerequisite for agreements like TPP (or the far more nebulous TTIP).  The new age of trade agreements  will deal extensively in issues like intellectual property protection, trade in services, and high-tech product trading; types of commerce which are far more difficult to regulate compared to the trade of physical goods.
> 
> So, despite the fact that TPP won’t get a vote until after November (and perhaps not in 2016 at all), and may not pass even then, the protections set forward in the customs bill are necessary to allow American companies to continue to compete in the global marketplace.
> 
> Price of Passage
> 
> In order to include the permanent extension of the Internet Tax Freedom Act, McConnell had to promise that a vote would be held this year on the Marketplace Fairness Act.  That legislation grants states greater authority to collect sales taxes from online businesses who sell products within their borders.  While McConnell himself opposes the bill, it was the only way to get the customs bill (with the tax amendment attached) unstuck.
> 
> Just because McConnell has promised it will be brought to a vote doesn’t mean it will be a smooth process - the Senate passed the Marketplace Fairness Act in 2013 with 69 votes, and most of the lawmakers who voted for it are still in the chamber.  Some lawmakers like Kelly Ayotte, who is facing a tough reelection campaign this year, have vowed to fight tooth-and-nail against it.  Despite these detractors in the Senate, the real battle may occur in the House, where two competing proposals have been brought forward.  
> 
> 
> Upcoming/Recent Updates
> 
> •  Municipal Bond Rule
> •  Budget (Ir)Resolution
> •  Puerto Rico
> •  Derivatives Agreement w. EU
> •  Econ. Revitalization/Housing
> 
> Below the Radar/Customs Bill  (Feb. 16) 
> International Tax Status  (Feb. 11)
> The Fed Holds Steady  (Feb. 10)
> Obama's FY17 Budget  (Feb. 9) 
> Tax Talk of the Town  (Feb. 3)
> Defending Dodd-Frank  (Feb. 2)
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
> The Fed Holds Rates, for Now  (Jan. 28)
> Debate Myths Challenged  (Jan. 25)
> Regulating the Regulators  (Jan. 21)
> Sanders' Tax/Healthcare Policy  (Jan 20)
> HRC's Tax Policy  (Jan. 17)
> 2016 Tax Agenda on the Hill  (Jan. 16)
> Glass-Steagall, Take 2  (Jan. 13)
> 2016 Tax Policy Issues  (Jan. 8)
> Sanders Proposals/GS & TBTF (Jan. 7)
> Sanders' Fin Reg Proposals  (Jan. 5)
> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
> Omnibus Situation  (Dec. 14)
> FY 2016 Omnibus Talks (Dec. 10)
> Customs Bill  (Dec. 8)
> Tax Extender Negotiations  (Dec. 6) 
> Brown on HFT  (Dec. 4)
> Shelby 2.0 Update  (Dec. 3)
> 
> ----
> 
> 
> 
>> On Feb 11, 2016, at 7:47 PM, Dana <[email-masked]> wrote:
>> 
>> Mike & Co.  --
>> 
>> One thing the two parties agree is that international tax reform is a fiscally necessary issue to take up -- that Uncle Sam is leaving hundreds of billions of dollars on the table overseas annually.   But they would also generally agree that it is not going to get done this year.  
>> 
>> Under current law, those profits are subject only to federal taxes if they are returned, or repatriated, to the U.S. where they face a top rate of 35 percent.  Many companies avoid U.S. taxes on those earnings by simply leaving them overseas.
>> 
>> There is bipartisan activity on the issue in both houses of Congress. Obama has a major reform proposal on the table.  So is this the year, in the year of surprises?
>> 
>> Best,
>> 
>> Dana
>> 
>> Reforms in the area of international tax deal with both the repatriation of foreign-derived profits and the issue of corporate inversions.  Testifying today, Treasury Secretary Jack Lew encouraged the parties in Congress to overcome their differences on both, which he believes surmountable:  “I just want to underscore the urgency of dealing with inversions … We can’t wait a year to deal with this,” Lew said during a Senate Finance hearing on the Obama administration’s budget. Congress could pass narrow legislation on inversions, he said, even if broader reform of the international system is preferable. 
>> 
>> Stirrings in the Senate
>> 
>> Sen. Schumer also announced today that he is in contact with Speaker Ryan about coming to an agreement on repatriating corporate profits.  They were unable to come to an agreement last year on a similar measure put forth as part of a larger reform effort.  Schumer said today: “We’re trying to bridge over, of course, the divide between existing proposals.  I remain at the table ready to work.”  
>> 
>> One of the key differences between the parties concerns whether the money raised from tax reform should be turn into government revenue for more spending, or used to pay down the debt or pass tax cuts.  After the Senate Finance hearing yesterday, Chair Hatch said:  “I'm actually working on international, but I just don't think it's going to get done this year, because, you know, let's face it, the Democrats are going to want to raise revenue.  They want money to spend.”  
>> 
>> At that same hearing, Sen. Shelby pushed a corporate integration plan he is developing to eliminate the double taxation of corporate income by providing corporations a dividend deduction.  He's awaiting a score by the Joint Committee on Taxation.  Dividend deductions are usually quite expensive and regressive, so it will a feat to attract any Democratic support, especially for him. 
>> 
>> Brady's Push 
>> 
>> Meanwhile, Ways and Means Chair Kevin Brady has said that he wants a vote this year on moving the United States into a territorial tax system, which would permanently exempt US-based businesses from paying taxes on income earned abroad.  He also wants to lower the corporate rate to 20 percent.  In the face of these proposals it is difficult to see what sort of compromise can be found between Democrats and Republicans, as the former may be more preoccupied just keeping alive the idea that foreign profits should be taxed at all. “The goal of these reforms are not to generate more spending,” Brady said. “It’s to bring back real dollars to be reinvested in the United States.”
>> 
>> Brady has been advocating for international tax reform since he took over Ways and Means.  Last month, he spoke with Sen. Hatch and they were both committed to getting something done.  Senior Republicans believe the country’s international tax problems — inversions and Europe going after revenues from U.S. companies among them — are urgent.  But Brady strongly hinted that all that work would be aimed at setting things up for 2017, when Republicans want “pro-growth tax reform under a Republican president.” Perhaps that’s no huge shock, but it does seem to set up something of a disconnect, given all the talk of urgency.
>> 
>> Brady and his supporters have been pushing the idea that American money is either being taxed by other countries or being taken over by foreign competitors in an inversion -- typically, when an American company incorporates abroad so its earnings are no longer subject to American taxes.  Brady says the result is an erosion of our tax base and a lock-out effect of American capital being “trapped” abroad that can be solved by fixing our uncompetitive tax code.
>> 
>> Presidential Proposal
>> 
>> The President’s FY 2017 budget contains a surprising source of new revenue to pay for its spending programs – a major piece of international tax policy reform: a six-year, $478 billion public-works program for highway, bridge and transit upgrades, half of it to be financed with a one-time, 14 percent tax on U.S. companies’ overseas profits and a 19 percent rate thereafter.  The issue of companies holding foreign profits at locations abroad, where they are exempt from taxation until repatriated, has vexed policy makers on both sides for some time.  It’s estimated that these profits add up to nearly $2 trillion. 
>> 
>> The issue of companies holding foreign profits at locations abroad, thereby exempt from taxation unless those profits are brought home, has vexed policy makers on both sides for some time.  Microsoft Corp., Apple Inc., Google Inc. and five other tech firms now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas.  In keeping with the idea that Obama’s final budget is “more politics than policy,” these revenue-gaining proposals are meant to spark discussion more so than be a model for laws going forward. 
>> 
>> Upcoming/Recent Updates
>> 
>> •  Customs Bill
>> •  Municipal Bond Rule
>> •  Budget Irresolution 
>> 
>> International Tax Status  (Feb. 11)
>> The Fed Holds Steady  (Feb. 10)
>> Obama's FY17 Budget  (Feb. 9) 
>> Tax Talk of the Town  (Feb. 3)
>> Defending Dodd-Frank  (Feb. 2)
>> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
>> The Fed Holds Rates, for Now  (Jan. 28)
>> Debate Myths Challenged  (Jan. 25)
>> Regulating the Regulators  (Jan. 21)
>> Sanders' Tax/Healthcare Policy  (Jan 20)
>> HRC's Tax Policy  (Jan. 17)
>> 2016 Tax Agenda on the Hill  (Jan. 16)
>> Glass-Steagall, Take 2  (Jan. 13)
>> 2016 Tax Policy Issues  (Jan. 8)
>> Sanders Proposals/GS & TBTF (Jan. 7)
>> Sanders' Fin Reg Proposals  (Jan. 5)
>> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
>> Omnibus Situation  (Dec. 14)
>> FY 2016 Omnibus Talks (Dec. 10)
>> Customs Bill  (Dec. 8)
>> Tax Extender Negotiations  (Dec. 6) 
>> Brown on HFT  (Dec. 4)
>> Shelby 2.0 Update  (Dec. 3)
>> 
>> 
>>>> On Feb 10, 2016, at 7:41 PM, Dana <[email-masked]> wrote:
>>> 
>>> Mike & Co. --
>>> The Chair of the Federal Reserve went before House Financial Services to provide a report on the nation's economic condition, a kind of bi-annual checkup. No news was made, no fireworks went off and no market mood swings occurred.  As for the Fed's next move, it's wait-and-see a little while longer. 
>>> We thought it might happen in March, signs pointed to it.  Now, the guess is June (sound familiar?)  For details, don't wait, see below.
>>> Best, 
>>> Dana 
>>> ----------
>>> Economic Checkup
>>> Fed Chair Yellen testified before House Financial Services this morning for the Federal Reserve’s bi-annual Monetary Policy Report.  These appearances allow Yellen to explain the Fed’s, actually the Federal Open Market Committee (FOMC)’s, analysis and projections regarding America's economic performance as well as to signal the factors underlying its actions in the months ahead.  
>>> The rate change in December 2015 was the first time the Fed raised rates since 2006 -- some worry that even a modest increase in rates at this juncture would further slow already limited economic growth after years of uncertainty.
>>> The Basics
>>> The bottom line: the FOMC won’t rollback rates in March and it’s not likely to raise them either.  The Fed likes what it sees in the labor market, wage growth looks strong, and emerging market missteps continue to be a threat to the US economy but perhaps not an immediate one.  The next rate move is almost certain to be an increase but it could wait until June or later. 
>>> Yellen reiterated much of the FOMC statement from last month:  the labor market remains strong, but shows some signs of remaining slack, that the low inflation we have seen is caused by “transitory” effects (low energy prices), and that global market uncertainty creates some level of risk for slow growth at home and abroad.  Though Yellen did not make a prediction on how long these transitory market effects would last, a number of forecasts for oil prices show the dip lasting through 2016.
>>> Expanding on global growth issues, Yellen said "These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market, although declines in longer-term interest rates and oil prices could provide some offset," she added: "Foreign economic developments, in particular, pose risks to US economic growth." 
>>> 
>>> Partisan Review
>>> 
>>> The GOP is generally critical of "accommodative" (lower) Fed rates.   High-net-worth individuals benefit the most from high rates through dividends and interest from savings.  Low rates allow more growth for the middle- and lower-classes at the risk of inflation, tacitly supporting Democrats’ progressive fiscal policy goals.  Some conservative economists have gone so far as to blame low interest rates pushed by the Fed in the 1990’s for the market meltdown in 2007, claiming that cheap credit was the cause of the overheated housing market.
>>> 
>>> Strong Labor Market
>>> 
>>> Discussing the labor market in greater detail, Yellen pointed to the cumulative increase in employment since 2010 of 13 million jobs.  The rate in January fell to 4.9 percent, 0.8 points below its level one year ago; measures of labor market conditions such as the number of people who are working part-time but want to move to full-time positions and the number of individuals who want to work but haven’t searched recently are also decreasing steadily.  Regarding these broader labor market indicators Yellen testified that “… these measures remain above the levels seen prior to the recession, suggesting that some slack in labor markets remains. Thus, while labor market conditions have improved substantially, there is still room for further sustainable improvement."
>>> 
>>> Forward Guidance
>>> 
>>> As always, Yellen was careful not to give hints on what the Fed is planning to do in future meetings; speaking on the path forward for the Fed Funds rate Yellen said “Of course, monetary policy is by no means on a preset course. The actual path of the federal funds rate will depend on what incoming data tell us about the economic outlook, and we will regularly reassess what level of the federal funds rate is consistent with achieving and maintaining maximum employment and 2 percent inflation.”
>>> 
>>> Yellen was asked about the chances of the FOMC rolling back the rate hike it announced in December:  "I do not expect the FOMC is going to be soon in the situation where it's necessary to cut rates If the FOMC delayed the start of policy normalization for too long, it might have to tighten policy relatively abruptly in the future to keep the economy from overheating and inflation from significantly overshooting its objective. Such an abrupt tightening could increase the risk of pushing the economy into recession." 
>>> 
>>> Comment on Dodd-Frank
>>> 
>>> During the Q&A portion of her testimony, Yellen was asked about financial regulation, both in terms of breaking up the banks and enforcing the regulations brought on by Dodd-Frank. 
>>> 
>>> In response to being asked if the Fed is trying to break up the banks, she responded: "We are using our powers to make sure that a systemically important institution could fail, and it would not have systemic consequences for the country." Her answer was interesting, because she's not outright saying the banks will be broken up or reduced, just that the Fed is trying to ensure that even if they did fail, it wouldn't negatively effect the economy.
>>> 
>>> Yellen was also asked about the burden of new Dodd-Frank regulations on banks. She responded: "For our part, we're focused on doing everything that we conceivably can to minimize and reduce the burden on these banking organizations. We've been conducting an EGRPRA review to identify potential burdens that our regulations impose." An EGRPRA review is connected to the Economic Growth and Regulatory Paperwork Reduction Act, which requires regulations imposed on financial institutions to be reviewed by the agencies at least once every 10 years. The purpose is to prevent burdensome regulations that could hinder a bank's ability to serve its customers. 
>>> 
>>> The Bottom Line
>>> 
>>> Fed watchers make their living by trying to predict what the FOMC will or won’t do at their meetings, and on days when Yellen is scheduled to testify before Congress you can bet that they’re listening intently.  While Yellen was careful not to project the Fed’s moves, the general sentiment in the markets is that FOMC won’t be raising rates at its March meeting.  The CME Group FedWatch tool, which estimates FOMC rate hikes based on its futures prices, predicts a 95% probability that the Fed will maintain its current rate target in March.  Some forecasters go even further -- expecting that the funds rate won’t be raised all year. 
>>> 
>>> Traders see the ongoing economic struggles of emerging economies, particularly in China, as evidence that the Fed won’t continue with its scheduled 4 rate hikes this year.  Certainly, considering the testimony today that 1) continued emerging market uncertainty can weigh down the US economy and 2) that poor performance in the US economy would cause the Fed to change course on its rate hike schedule, a link between poor emerging market performance and fewer Fed rate hikes seems plausible.  Certainly the trading on Fed fund futures indicates that the markets believe this is the case.
>>> 
>>> -------
>>> 
>>> Recent Updates
>>> 
>>> The Fed Holds Steady  (Feb. 10)
>>> Obama's FY17 Budget  (Feb. 9) 
>>> Tax Talk of the Town  (Feb. 3)
>>> Defending Dodd-Frank  (Feb. 2)
>>> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
>>> The Fed Holds Rates, for Now  (Jan. 28)
>>> Debate Myths Challenged  (Jan. 25)
>>> Regulating the Regulators  (Jan. 21)
>>> Sanders' Tax/Healthcare Policy  (Jan 20)
>>> HRC's Tax Policy  (Jan. 17)
>>> 2016 Tax Agenda on the Hill  (Jan. 16)
>>> Glass-Steagall, Take 2  (Jan. 13)
>>> 2016 Tax Policy Issues  (Jan. 8)
>>> Sanders Proposals/GS & TBTF (Jan. 7)
>>> Sanders' Fin Reg Proposals  (Jan. 5)
>>> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
>>> Omnibus Situation  (Dec. 14)
>>> FY 2016 Omnibus Talks (Dec. 10)
>>> Customs Bill  (Dec. 8)
>>> Tax Extender Negotiations  (Dec. 6) o
>>> Brown on HFT  (Dec. 4)
>>> Shelby 2.0 Update  (Dec. 3)
>>> 
>>> ----
>>> 
>>> 
>>>> On Feb 9, 2016, at 7:42 PM, Dana <[email-masked]> wrote:
>>>> 
>>>> 
>>>> Mike & Co. --
>>>> Today, President Obama submitted his eighth and final budget proposal to Congress.  It tops the $4 trillion mark for the first time.   Despite the historical tendency for lame duck presidential budgets to be treated as scrap paper -- this one won't even be accorded the courtesy of a hearing in House Budget -- there are a few noteworthy proposals and initiatives which, if nothing else, are likely to generate discussion on the Hill and off.  
>>>> That’s the real purpose of this budget -- to help frame the debate in 2016 about where America is headed what the nation's priorities should be.  A number of the proposals in this budget resonate with issues and themes already being debated.  Candidates in particular seeking to emphasize support for or opposition to the President have a new set of proposals at their disposal. 
>>>> What is new and noteworthy in the White House budget and what's next for it?  Detail below. 
>>>> Special thanks to those of you in NH tonight.  Fingers crossed and stay tuned this way:   http://politi.co/20n5W2w 
>>>> Best,
>>>> Dana
>>>> ---------
>>>> The Obama Administration put forth a myriad of budget proposals revolving around a variety of issues.  Below are thoughts on some of the most significant of these from a fiscal and financial regulatory perspective: 
>>>> •  $10/Barrel Transportation Tax
>>>> A perennial favorite of Democrats has made a return in the Obama budget:  a $10.25 per barrel tax on oil, $319 billion in revenue from which will go toward funding “a 21st Century Clean Transportation Plan to upgrade the nation’s transportation system, improve resilience and reduce emissions."  The proposed tax is a simplified version of “carbon taxation” policies, which aim to tax energy producers and oil companies based on the level of pollution they produce; “cap and trade” was a similar policy idea but with more complicated implementation.  
>>>> The tax will be phased in over five years and levied against oil companies, with the revenue to help fund clean energy initiatives like expanding high-speed rail systems and also to increase national infrastructure spending.  The appeal of this flat-tax on oil is its simplicity –- there is nothing complicated about charging oil companies $10.25 per barrel of oil, meaning there’s no way for them to shirk the charge. 
>>>> Supporting the tax would lend candidates some environmental bonafides, but might be seen as a backdoor  tax on the middle-class. Though paid for by oil companies, the  price is expected to be passed along to consumers through higher prices.  The tax is expected to increase the price of gasoline by 25 cents per gallon.
>>>> •  Funding Fin. Reg. Like it Matters 
>>>> Obama proposes to double the budget for Wall Street regulators SEC and CFTC over ten years, beginning with an 11 percent increase for SEC and 32 percent for CFTC in 2017.  Clinton has a lot to like in this particular section – she’s the only candidate who has defended Dodd-Frank and is campaigning on proposals to strengthen current regulations, including through greater budgets for regulatory agencies.  Leaders for both regulators have complained that their responsibilities far outstrip their budget. 
>>>> The proposal is more realistic than the oil tax, although not necessarily something that will definitely be enacted.  The SEC has called for increased funding recently.  SEC chairman Mary Jo White asked at a House Financial Services Committee hearing in November for $1.8 billion in funding for fiscal 2017.  In a time when Republicans are looking to reduce regulatory burdens against banks, an increase in regulators’ budgets highlights the difference in priorities on Wall Street. 
>>>> •  Boosting R and D
>>>> The budget increases R&D funding by four percent for a total of $152 billion in 2017; among changes are a doubling of clean energy research and funding a $1 billion cancer “Moonshot” research program aimed at eliminating the disease. 
>>>> •   Apprenticeship Training Fund
>>>> The budget establishes a $2 billion mandatory Apprenticeship Training Fund – meant to double the number of apprenticeships across the United States.  Only HRC has talked about the need for increasing the number of apprenticeships in the country during the election, favoring a tax-credit policy rather than direct funding. 
>>>> Congressional Prospects
>>>> Obama’s proposal is not only a prelude to battle.  Lawmakers and the administration will have to strike some sort of deal to keep the government running when the current fiscal year ends on Sept. 30 — most likely a continuing resolution to keep the lights on through the election and early into 2017.  In a sign that Obama isn’t looking for a knock-down spending fight this year, the president’s proposal abides by the discretionary caps for fiscal 2017 set by last year’s bipartisan budget deal. 
>>>> Congressional leadership may have a fight on its hands even without Obama making waves – if the Freedom Caucus membership decides to make its displeasure on the budget known then it could cause rancor amongst the GOP.  In a year when the party is desperate to project an image of capable leadership, in part by passing a complete budget for the first time since 1997, a blow-up between Ryan and the back-benchers would amount to nothing less than catastrophe.
>>>> At a more granular level, Obama’s blueprint is a grab-bag of Democratic priorities.  The administration is once again calling for expanding early education in his 2017 budget, asking for more pre-K grants, a child care expansion and a small boost to Head Start.  The budget boosts spending for Obamacare Medicaid expansion by $2.6 billion over a decade, designed to be an enticement to the 19 holdout states that have yet to take effect.
>>>> Republicans and the Budget
>>>> 
>>>> The Republicans have a different plan for the budget this year, naturally.  Speaker Ryan has stated that he intends to pass the budget and all 12 appropriations through the house -- a feat that hasn't been accomplished in two decades.
>>>> 
>>>> The Republicans have a different plan for the budget this year, naturally.  Speaker Ryan has stated that he intends to pass the budget and all 12 appropriations through the house - a feat that hasn't been accomplished since 1997.  Although Ryan and the GOP House leadership hope to gain the faith of the American people back by bringing about the return of regular order, they face a tight calendar and the political implications of an election year -- not to mention internal opposition in the form of the Freedom Caucus.  Should the back-benchers feel their concerns aren’t being adequately addressed, they may try to disrupt the passage of appropriations bills.  The care and feeding of these members on budget matters may be turn out to be one of the toughest challenges Ryan will face this year.
>>>> 
>>>> -----------------
>>>> 
>>>> Recent Updates
>>>> 
>>>> Obama's FY17 Budget  (Feb. 9) 
>>>> Tax Talk of the Town  (Feb. 3)
>>>> Defending Dodd-Frank  (Feb. 2)
>>>> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
>>>> The Fed Holds Rates, for Now  (Jan. 28)
>>>> Debate Myths Challenged  (Jan. 25)
>>>> Regulating the Regulators  (Jan. 21)
>>>> Sanders' Tax/Healthcare Policy  (Jan 20)
>>>> HRC's Tax Policy  (Jan. 17)
>>>> 2016 Tax Agenda on the Hill  (Jan. 16)
>>>> Glass-Steagall, Take 2  (Jan. 13)
>>>> 2016 Tax Policy Issues  (Jan. 8)
>>>> Sanders Proposals/GS & TBTF (Jan. 7)
>>>> Sanders' Fin Reg Proposals  (Jan. 5)
>>>> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
>>>> Omnibus Situation  (Dec. 14)
>>>> FY 2016 Omnibus Talks (Dec. 10)
>>>> Customs Bill  (Dec. 8)
>>>> Tax Extender Negotiations  (Dec. 6) o
>>>> Brown on HFT  (Dec. 4)
>>>> Shelby 2.0 Update  (Dec. 3)
>>>> 
>>>>> On Feb 3, 2016, at 7:09 PM, Dana <[email-masked]> wrote:
>>>>> 
>>>>> Mike & Co. --
>>>>> 
>>>>> Upbeat tax talk is as common this time of year as predictions that this year the Cubs will win the World Series this fall.  The word is that Messrs. Ryan and McConnell want to run a smooth, efficient, maybe even a productive ship this year on the theory that voters will reward the GOP in November and that they will forget the record of the last seven years.  The Speaker and the President have had a recent meeting and mini-meeting of the minds on taxes.  That might create the right climate for passage of broad tax reform. 
>>>>> But really the gravitational pull is not toward gravitas, but away from the center, away from the Hill itself.  The GOP presidential nominee might very well have to run against any bipartisan ("Washington") compromise on tax policy, making for an embarrassing intraparty policy conflict at the time the leadership most needs to project unity.
>>>>> 
>>>>> Amid the turbulence of the broader campaign, where do the various tax discussions in the Hill stand, what bills night come up for votes, is there anything that might pass?
>>>>> Best,
>>>>> Dana
>>>>> ________________________________
>>>>> Forms of Reform under Discussion
>>>>> • Comprehensive -- Defined as involving a bipartisan trade-off between lowering taxes and broadening the base; closing exemptions, deductions, credits, etc.  Both Democratic candidates have outlined plans to reduce loopholes, such as the "Romney loophole" and the "Bermuda loophole," which allow very rich Americans to avoid paying their fair share. 
>>>>> • Corporate -- Many of the issues with the corporate tax system could be addressed through international tax reform, because so many companies earn capital abroad. However, corporate tax reform at home deals with issues like taxing dividends and leveling the playing field between small and large businesses. 
>>>>> • International - Deals with foreign earnings of American firms abroad. Specifically, current international tax reform aims at preventing inversions and coming up with a more successful way to tax foreign capital earned by American companies, as well as finding ways to encourage companies to move profits home from abroad.
>>>>> Forums for Tax Reform
>>>>> • Ways & Means:  Kevin Brady became Chair of the Committee in November 2015. He reportedly hopes to have an international tax reform proposal out of Ways and Means this year.  He says he wants to allow American companies to bring their foreign profits back and invest at home and to lower the corporate tax rate to less than 20 percent.
>>>>> Brady gave the opening statement at a hearing on “Reaching America’s Potential.”   For what it's worth, he laid out six goals for his committee in the coming months -- and they are ambitious:
>>>>> 
>>>>> · Tax reforms to boost investment and job creation;
>>>>> · Welfare reforms to help more people join the workforce and achieve the American dream.
>>>>> · Health reforms to truly make health care more affordable and accessible; 
>>>>> · Trade expansion to open more foreign markets to American goods and services;
>>>>> · Entitlement reforms to strengthen Medicare and Social Security for the long haul and;  
>>>>> · Government reforms to boost efficiency and effectiveness instead of stifling jobs and higher wages.
>>>>> 
>>>>> Brady’s statement that tax reform will come up in the coming weeks, coupled with Ryan’s recent visit with Obama (specifically to find areas of cooperation), may indicate a broad-based reform package making its way forward in 2016.  Another interesting bullet point is trade expansion, despite McConnell’s promise that TPP won’t be voted on before November. 
>>>>> • Senate Finance:   The Senate Finance Committee has its focus set on bipartisan working groups designed to produce tax reform on multiple levels -- individual, corporate, and international. However, there have been many challenges and stalemates along the way because of the stringent partisanship currently ailing the Senate. 
>>>>> This election has been defined, more so than others, by the massively diverse set of tax policies proposed by each candidates – from flat taxes, capital gains reforms, financial transaction taxes and more.  Sen. Hatch, Chair of Finance, has already called for reform efforts in 2016, targeting international corporate rates specifically – but it’s possible that Brady is trying to shift him and others toward more ambitious proposals.  Any high profile move Ryan makes here will likely be a controlling factor on tax policy.  
>>>>> • Between the Branches -- Speaker Ryan and Pres. Obama met yesterday to discuss a variety of issues, one of which was related to the Earned Income Tax Credit.  Both hope to expand the credit to include low-earning workers who DON'T have children.  It's unclear how successful their cooperation will be, but at the very least, they share a common goal. 
>>>>> Politico portrayed the meeting as campaign kabuki: “Rather than cut any deals with Obama, Ryan’s hoping to spend 2016 developing what he’s calling a detailed GOP agenda on poverty, taxes, health care and other issues he’s hoping will factor into the presidential campaign and provide a blueprint for House Republicans as they grapple with a new president next year.”  It’s not surprising to see this given the pressure this election will put on the new Speaker.  He needs to set a strong foundation for his own future, and helping Obama score a tax touchdown on him is not on the top of his list of objectives.  
>>>>> 
>>>>> During a statement before he met with Obama, Ryan said “We will take our conservative principles and we will apply those conservative principles to the problems of the day to offer our fellow citizens solutions to the problems in their daily lives …. These are not going to be things that we will be able to accomplish with this president still in the White House. It is an agenda for what we will do next year with a Republican president to get our country back on track. This is what 2016’s all about. It’s going to be a year of ideas.”
>>>>> 
>>>>> Political Realities
>>>>> William Gale and Aaron Krupkin, researchers at Brookings, recently wrote a paper titled “Major Tax Issues in 2016;” Keeping in mind both the current political climate and the probable environment for legislation in 2016, the two researchers write that “Comprehensive tax reform is easy to talk about, but hard to do. The pursuit of sweeping tax simplification is a noble goal, but quixotic.”  
>>>>> 
>>>>> At the end of the day 2016 is an election year and any legislative proposals that come forward during it will reflect that.  There are many exciting possibilities for tax reform in 2016, but there is also no reason to think that the political gridlock that has defined Washington for so long will ease up enough while both parties vie for control of the country by drawing contests. 
>>>>> ----------------
>>>>> Recent Updates
>>>>> 
>>>>> Tax Talk of the Town  (Feb. 3)
>>>>> Defending Dodd-Frank  (Feb. 2)
>>>>> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
>>>>> The Fed Holds Rates, for Now  (Jan. 28)
>>>>> Debate Myths Challenged  (Jan. 25)
>>>>> Regulating the Regulators  (Jan. 21)
>>>>> Sanders' Tax/Healthcare Policy  (Jan 20)
>>>>> HRC's Tax Policy  (Jan. 17)
>>>>> 2016 Tax Agenda on the Hill  (Jan. 16)
>>>>> Glass-Steagall, Take 2  (Jan. 13)
>>>>> 2016 Tax Policy Issues  (Jan. 8)
>>>>> Sanders Proposals/GS & TBTF (Jan. 7)
>>>>> Sanders' Fin Reg Proposals  (Jan. 5)
>>>>> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
>>>>> Omnibus Situation  (Dec. 14)
>>>>> FY 2016 Omnibus Talks (Dec. 10)
>>>>> Customs Bill  (Dec. 8)
>>>>> Tax Extender Negotiations  (Dec. 6) o
>>>>> Brown on HFT  (Dec. 4)
>>>>> Shelby 2.0 Update  (Dec. 3)
>>>>> 
>>>>> ----
>>>>> 
>>>>> 
>>>>>> On Feb 2, 2016, at 11:59 PM, Dana <[email-masked]> wrote:
>>>>>> 
>>>>>> Mike & Co. --
>>>>>> Congratulations, team.  Last night's narrow win in Iowa provided a big moral victory and took some of the win out of the challenger's sails.  It also means that, for at least several weeks, the Democratic nomination contest will continue apace.  And it is likely that Wall Street regulation will likely remain one the  campaign's central issues.  
>>>>>> At the heart of this debate is the Dodd-Frank Act (DFA).   Public opinion is still influenced in the main by memories of the 2008 financial crisis and the recession that followed, so the candidates' views on DFA get special attention.  
>>>>>> Below, we re-examine these views and try to clear up the misconceptions that make it hard for voters to identify the candidate best able to defend the protections that DFA provides millions of American consumers, investors, and workers. 
>>>>>> Best,
>>>>>> Dana
>>>>>> -----------------
>>>>>> The assertion that DFA doesn’t do enough to rein in Wall Street has become some sort of progressive shibboleth that as misleading as it is short-sighted and self-defeating.   
>>>>>> Polling shows the American public believes strong financial regulation is critically needed (74 percent of Democrats, 56 percent Independents, 46 percent Republicans, 64 percent all voters).  Polling has also shown that 66 percent of Americans are either “not very familiar” with or have “never heard of” Dodd-Frank.  It is difficult for reasonable dialogue to be conducted in an environment made up of strong support for regulatory reform on one hand and a lack of knowledge of what is in DFA on the other.
>>>>>> Any public debate on DFA is hampered by the complexity of the issues involved.  Additionally, there is a perception that it has failed in its objectives.  Beyond the fact that the law isn’t even fully implemented, major financial institutions have already begun restructuring in ways that indicate the law is working properly.   But how many voters know this?
>>>>>> Has Dodd-Frank Worked?
>>>>>> The Great Recession and the resulting Dodd-Frank Act changed the trajectory of the financial industry.  The law isn't perfect but it is having a stabilizing effect.  Some of the biggest firms on Wall Street -- MetLife, CitiGroup, General Electric -- have shrunk since the law was enacted and as a direct result of its regulations.  Those that haven't shrunk are under even more pressure to break up or reduce their size now than they were before Dodd-Frank.
>>>>>> The candidates are split concerning whether or not DFA is an full and sufficient model for regulating financial markets.  While HRC wants to preserve and protect the progress made by DFA while bolstering certain parts of the law, while Sanders considers the law to be well intentioned yet deeply flawed.  However, questions should be raised about judging the DFA’s efficacy right now - each candidate is forming an opinion on the act despite the fact that DFA hasn’t even reached maturity yet - only about 70 percent of DFA provisions have been implemented.  Beyond the implementation gap is the issue that the results of financial reform cannot be seen overnight.  A piece of legislation as large and multifaceted as Dodd-Frank might take a decade to ripen. 
>>>>>> Even as the greatest effects of DFA remain to be see, recent events indicate that DFA is working as it was intended to.  Any candidate who claims that DFA is in need of major overhaul needs to answer this question: What pressing need is there to overturn a law that has, to this point, largely accomplished its overarching objectives? 
>>>>>> 2016 Candidates and Dodd-Frank
>>>>>> The candidates in this year's primaries have given voters two choices: stick with Dodd-Frank and add some tweaks or repeal it/change it fundamentally. There is only one candidate in the former group - HRC. Every other candidate, including Bernie Sanders, intends to greatly change Dodd-Frank, or get rid of it all together, if elected. With that choice in mind, it is necessary to remember how monumental Dodd-Frank was and the political climate that it was passed in - one with a Democratic majority in both houses.   
>>>>>> DFA enjoyed widespread support in the years immediately following its passage; Clinton needs to ring the alarm bells that her opponents intend to kill off an effective tool for regulating Wall Street for the sake of trying out unproven strategies that are built more on ideology than policy.  
>>>>>> Obviously, most Republican candidates would prefer to do away with Dodd-Frank completely as it is greatly disliked by their biggest supporters. Bernie Sanders proposes something similar to Glass-Steagall, but also wants to create a list of the banks that are "too-big-too-fail" and "break them up." He outlined his intentions in legislation he proposed to Congress back in May 2015. Bloomberg Politics notes, "Similar to legislation he introduced in previous years, when Democrats controlled the U.S. Senate, the bill has little chance of advancing."  
>>>>>> So voters can decide on strengthening a law that is already working to reign in Wall Street's risks or abandoning it for either less regulation or poorly aimed regulations. Considering the historical record of these other reform ideas, how can voters be expected to take those suggestions seriously?
>>>>>> 
>>>>>> 
>>>>>>> On Jan 28, 2016, at 8:19 PM, Dana <[email-masked]> wrote:
>>>>>>> 
>>>>>>> Mike & Co. --
>>>>>>> 
>>>>>>> Ordinarily this time of year, you would perhaps start to spot leaks or hear scuttlebutt about the president's spending plans for the next fiscal year, in anticipation of the statutory February White House budget rollout.  No one noticed when the administration announced it would miss next week's legal budget submission deadline.  
>>>>>>> 
>>>>>>> With FY17 toplines set in the omnibus bill passed last month, you may hear little in the Beltway about the budget anytime soon (although the Chair did announce plans yesterday to introduce a budget resolution this year, to the surprise of many, including Majority Leader McConnell).  
>>>>>>> 
>>>>>>> Even on the campaign trail in the Granite State, with its famously flinty tax-o-phobes, nary a word is heard about the debt, let alone defaulting it, not this year.  
>>>>>>> 
>>>>>>> The federal budget, deficits, and the debt have not yet gotten much air play yet this campaign.  But if we lifted up the car hood, what would we see?  What is our medium-long term fiscal outlook, what would the impact on it of the candidates' proposals be, and what fiscal issues are most likely to arise in the primary debate?
>>>>>>> 
>>>>>>> Best,
>>>>>>> 
>>>>>>> Dana
>>>>>>> 
>>>>>>> --------------
>>>>>>> 
>>>>>>> CBO 10-year Deficit Projections
>>>>>>> 
>>>>>>> The CBO reported last week that it expects the annual deficit to grow from its current $450 billion to $1.3 trillion by 2016. Candidates issuing calls for increased spending, against this backdrop, may be called to account.  
>>>>>>> 
>>>>>>> Perhaps in recognition of this, both HRC and Sen. Sanders have recently and admirably detailed how they would use executive actions to enact parts of their revenue packages without Congressional support.  Both have proposed extensive new spending plans as part of their primary platform. however, it may be time for the candidates to get serious about the fiscal viability of these plans from a fiscal perspective.
>>>>>>> 
>>>>>>> Clinton -- Fiscal Stimulus?
>>>>>>> 
>>>>>>> HRC has proposed a tax package that will raise federal revenue by $500 billion over ten years, to be used for a $350 billion “College Compact” plan, for tax deductions on health care spending, and to fund an ambitious infrastructure investment package.  Her spending plans are split between those which provide short-term economic stimulus and those which are aimed at providing longer-term boost.  Her $250 billion plan to increase infrastructure investment in the country – paid for by reviving the “Build America Bonds” program and federal revenue --  works on two fronts.
>>>>>>> 
>>>>>>> First, hiring middle-class workers in construction, engineering, and the trades the plan puts more money into the hands of people who tend to spend that money quickly.  Second, improving roads, bridges, and tunnels in America the plan will make future transport of goods more reliable, speedy, and safe, all calculated to spur economic growth. 
>>>>>>> 
>>>>>>> The “College Compact” aims to forgive student loans, lower college tuition, and make community colleges tuition-free.  By removing the burden of debt from young graduates, HRC hopes to free those people up to begin consuming at a higher rate.  The current home-ownership rate for young Americans is distressingly low largely due to their debt burden after college, HRC would rather young Americans take debt on in an equity-building purchase than spend thirty years repaying their college degree.  
>>>>>>> 
>>>>>>> The Sanders Health Care Tax Bill
>>>>>>> 
>>>>>>> Sanders’ $14 trillion spending plan, his “Medicare for All” proposal, would require the single largest tax hike in the nation’s history, bringing taxes on the wealthy to levels not seen since Reagan.  These taxes, the size of which already makes them non-starters even among Democrats in Congress, are to be used to enact single-payer healthcare legislation – legislation which didn’t even get a vote during a Democratic majority in Obama’s first term.
>>>>>>> 
>>>>>>> Sanders must hope that the economic efficiency of a single-payer health care plan, which finds its savings in the reduced role of middle-men and insurance companies, will result in savings passed onto Americans – Americans who will, in their turn, spend those savings in the economy at large.
>>>>>>> 
>>>>>>> He has found political success in his promise to make colleges and universities in America tuition-free.  The impetus behind this plan is similar to that of Mrs. Clinton – students with lower debt burdens are going to spend a greater portion of their income on food and entertainment, as well as on equity-investments like homes.
>>>>>>> 
>>>>>>> Campaign Impact
>>>>>>> 
>>>>>>> The CBO’s federal budget projections released last week indicated that the annual federal deficit will grow to $1.3 trillion by 2026.  It’s unlikely that the CBO report will be linked to the candidates' spending plans in any meaningful way.  And to be fair, each candidate has put forward proposals to raise revenue equivalent to the costs of their plans (or at least to the extent that their own analyses can be trusted); this is often a rarity amongst politicians running for office and they should be applauded for doing so.  Because of this, both campaigns can claim that their proposals will not raise the federal deficit – it’s unlikely that those claims will remain unchallenged in the future.
>>>>>>> 
>>>>>>> Tax Foundation Analysis
>>>>>>> 
>>>>>>> Recent analyses by the Tax Foundation, a group which uses dynamic scoring methods to judge revenue, have found that Clinton’s plan will reduce economic output by 1 percent over a decade, while Sanders’ proposals will lower GDP by a staggering 9.5 percent.  Dynamic scoring is a controversial method of analyzing revenue estimates – it takes into account the supposed deleterious effects caused by tax increases and attempts to adjust growth the reflect those effects.
>>>>>>> 
>>>>>>> A CRS report published in 2014, however, stated that “A review of statistical evidence suggests that both labor supply and savings and investment are relatively insensitive to tax rates.” 
>>>>>>> 
>>>>>>> While each campaign will be inclined to argue that any analysis which mentions economic contraction as an effect of their plans is based on improper economics, it may not matter to voters whether they’re right or not.  American voters have always been tax-averse but will pay for what they want.  Maybe the biggest yet-unanswered question: do they want another overhaul of he nation's healthcare enough to pay a new record in tax increases?
>>>>>>> 
>>>>>>> Recent Updates
>>>>>>> 
>>>>>>> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)
>>>>>>> The Fed Holds Rates, for Now  (Jan. 28)
>>>>>>> Debate Myths Challenged  (Jan. 25)
>>>>>>> Regulating the Regulators  (Jan. 21)
>>>>>>> Sanders' Tax/Healthcare Policy  (Jan 20)
>>>>>>> HRC's Tax Policy  (Jan. 17)
>>>>>>> 2016 Tax Agenda on the Hill  (Jan. 16)
>>>>>>> Glass-Steagall, Take 2  (Jan. 13)
>>>>>>> 2016 Tax Policy Issues  (Jan. 8)
>>>>>>> Sanders Proposals/GS & TBTF (Jan. 7)
>>>>>>> Sanders' Fin Reg Proposals  (Jan. 5)
>>>>>>> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
>>>>>>> Omnibus Situation  (Dec. 14)
>>>>>>> FY 2016 Omnibus Talks (Dec. 10)
>>>>>>> Customs Bill  (Dec. 8)
>>>>>>> Tax Extender Negotiations  (Dec. 6) o
>>>>>>> Brown on HFT  (Dec. 4)
>>>>>>> Shelby 2.0 Update  (Dec. 3)
>>>>>>> 
>>>>>>> 
>>>>>>> 
>>>>>>>> On Jan 28, 2016, at 10:12 AM, Dana <[email-masked]> wrote:
>>>>>>>> 
>>>>>>>> Dear Mike & Co.,
>>>>>>>> 
>>>>>>>> Pre-primary endorsements from Party leaders in tight contests are rare and sometimes understated.  To wit, President Obama remarks this week that HRC is as prepared to be president as any non-Vice President as anyone: “I think that what Hillary presents is a recognition that translating values into governance and delivering the goods is ultimately the job of politics, making a real-life difference to people in their day-to-day lives.”
>>>>>>>> 
>>>>>>>> Yesterday, House Democratic leader Nancy starting doing precisely that, assessing the centerpiece of Sanders' platform:  "He's talking about a single-payer, and that's not going to happen. I mean, does anybody in this room think that we're going to be discussing a single-payer? ... We're not running on any platform of raising taxes." 
>>>>>>>> 
>>>>>>>> Far from the cauldron of Congress and the icy campaign trail was an announcement by the Fed with implications for the overall economy and for the election year ahead.  More on the Fed's statement and its implications below.  
>>>>>>>> 
>>>>>>>> Please let me know if you have any questions or issue coverage requests. 
>>>>>>>> 
>>>>>>>> Best,
>>>>>>>> 
>>>>>>>> Dana
>>>>>>>> 
>>>>>>>> -----------------
>>>>>>>> 
>>>>>>>> The Fed's Statement
>>>>>>>> 
>>>>>>>> The Federal Open Market Committee (FOMC) of the Federal Reserve decided yesterday not to raise rates in January.  Last month, the Fed voted to raise interest rates for the first time in nine years, setting its rate target between 0.25 and 0.5 percent.  Today's statement reaffirmed this decision, noting that recent market turbulence had not stayed the Fed from its plan to continue “only gradual increases in the federal funds rate.”  Speculation and hope are rife that the FOMC will hold off raising rates in March and wait until June.  
>>>>>>>> 
>>>>>>>> But the statement today indicated no change in the Fed’s plan for previously outlined  rate increases, four 0.25 percent increases this year, with total increases of one percent this year and next.  However, the FOMC is largely comprised of dovish voters, who may change tack if current market corrections continue.   
>>>>>>>> 
>>>>>>>> Market Reaction
>>>>>>>> 
>>>>>>>> The Dow Jones Industrial average is down from 17.759 on December 16 to 15,951 today; the S&P 500 has declined from 2,073 to 1,879 over the same period.  The 
>>>>>>>> Fed however expressed confidence in continuing economic growth, calling low inflation and the decline in energy prices “transitory” and predicting 2 percent inflation in the medium-term as energy prices rise again.  
>>>>>>>> 
>>>>>>>> In a nod to beleaguered investors, the Committee wrote that it “... is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook.”  So the Fed has, unusually, acknowledged the global scope of its deliberations.  FOMC also indicated a focus on “labor market indicators [which] will continue to strengthen."
>>>>>>>> 
>>>>>>>> For now, though inflation is running just 0.4 percent, well below its two percent target, the Fed has not disavowed its plan to raise rates four times this year.   This cannot be welcome to global equine markets.  Domestic and global capital markets have already lost roughly ten percent since the December rate hike.  Fed policy may be having a decelerating effect on growth and so could be a marginal drag on Democratic prospects.  
>>>>>>>> 
>>>>>>>> New FOMC Members
>>>>>>>> 
>>>>>>>> The FOMC is made up of rotating board of seven voting members taken from Board of Governors members as well as regional bank officials; these members rotate on an annual basis at the first meeting of each year.  The 2016 committee members are listed below (identified as"hawks," those favoring tight monetary policy or "doves," supporting more accommodative policy). 
>>>>>>>> 
>>>>>>>> Janet L. Yellen, Board of Governors, Chair (dove)
>>>>>>>> William C. Dudley, New York, Vice Chair (dove)
>>>>>>>> Lael Brainard, Board of Governors (dove)
>>>>>>>> James Bullard, St. Louis (hawk)
>>>>>>>> Stanley Fischer, Board of Governors (hawk)
>>>>>>>> Esther L. George, Kansas City (hawk)
>>>>>>>> Loretta J. Mester, Cleveland (hawk)
>>>>>>>> Jerome H. Powell, Board of Governors (swing)
>>>>>>>> Eric Rosengren, Boston (dove)
>>>>>>>> Daniel K. Tarullo, Board of Governors (dove)
>>>>>>>> 
>>>>>>>> New members this year are James Bullard, Esther George, Loretta Mester, and Eric Rosengren.  The FOMC consists of 12 voting members, with two nominees awaiting Senate confirmation.  A shift in the balance of power between hawks and doves may occur but the doves hold a slim majority for now.
>>>>>>>> 
>>>>>>>> Code Breaking
>>>>>>>> 
>>>>>>>> Fed watchers have made an art form out of reading between the lines of these policy releases, even the most benign of which can cause huge swings in markets (the Dow dropped over 200 points in the wake of today’s release).  Fed statements are famously difficult to parse but one point was unmistakable: the Fed is keeping a close eye on the labor market -- employment and participation rates, wages, etc. -- as a leading indicator for inflation and overall growth perhaps more than any other variable.  
>>>>>>>> 
>>>>>>>> Campaign Consequences
>>>>>>>> 
>>>>>>>> None of the candidates has commented on today’s release, not surprisingly, but the policy may draw ire from some on the right, who oppose fiat rate-targeting (though it took no action today) and the left, where lowering rather than raising rate is preferred (except for holders of fixed income securities).  
>>>>>>>> 
>>>>>>>> Sen.  Sanders, true to his reputation of standing far outside the Democratic fold, has long opposed the Fed for being too involved with the bankers they are meant to be regulating.  Sanders has called for reform measures at the Fed, including prohibiting people serving on bank boards from serving on the Fed at the same time. 
>>>>>>>> 
>>>>>>>> The Fed was confident that economic growth would continue on its steady pace, indicating strength in labor markets and downplaying both financial market reactions and diving commodities prices.  The FOMC sets monetary policy on a long-term basis; the full ramifications of their decisions aren’t felt until months or years out, so any contention that the economy is strong enough to handle higher interest rates is essentially an endorsement of macroeconomic policy in the last few years. Democratic candidates will need to hammer this point home - but it is yet to be seen if voters will understand the message that Democratic policies are responsible for the sunny outlook for the American economy, especially compared to Western Europe, Latin America, and Asia.
>>>>>>>> Below is the first sentence of the FOMC statement from yesterday, edited to reflect changes from last month's statement:
>>>>>>>> 
>>>>>>>> For immediate releaserelease at 2:00 p.m. EST
>>>>>>>> Information received since the Federal Open Market Committee met in OctoDecember suggests that economic activity has been expanding at a moderate pacelabor market conditions improved further even as economic growth slowed late last year. Household spending and business fixed investment have been increasing at solidmoderate rates in recent months, and the housing sector has improved further; however, net exports have been soft and inventory investment slowed. A range of recent labor market indicators, including ongoistrong job gains and declining unemployment, shows further improvement and confirms that underutilization of labor resources has diminished appreciably since early this year, points to some additional decline in underutilization of labor resources. Inflation has continued to run below the Committee's 2 percent longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports. Market-based measures of inflation compensation remain low; somedeclined further; survey-based measures of longer-term inflation expectations have edged downare little changed, on balance, in recent months.
>>>>>>>> 
>>>>>>>> --------------------
>>>>>>>> 
>>>>>>>> Recent Updates
>>>>>>>> 
>>>>>>>> The Fed Holds Rates, for Now  (Jan. 28)
>>>>>>>> Debate Myths Challenged  (Jan. 25)
>>>>>>>> Regulating the Regulators  (Jan. 21)
>>>>>>>> Sanders' Tax/Healthcare Policy  (Jan 20)
>>>>>>>> HRC's Tax Policy  (Jan. 17)
>>>>>>>> 2016 Tax Agenda on the Hill  (Jan. 16)
>>>>>>>> Glass-Steagall, Take 2  (Jan. 13)
>>>>>>>> 2016 Tax Policy Issues  (Jan. 8)
>>>>>>>> Sanders Proposals/GS & TBTF (Jan. 7)
>>>>>>>> Sanders' Fin Reg Proposals  (Jan. 5)
>>>>>>>> Year-End Review: Fiscal Policy (Jan. 1)  Year-End Review: Fin. Reg.  (Dec. 29)  Omnibus Review (Dec. 15)
>>>>>>>> Omnibus Situation  (Dec. 14)
>>>>>>>> FY 2016 Omnibus Talks (Dec. 10)
>>>>>>>> Customs Bill  (Dec. 8)
>>>>>>>> Tax Extender Negotiations  (Dec. 6) o
>>>>>>>> Brown on HFT  (Dec. 4)
>>>>>>>> Shelby 2.0 Update  (Dec. 3)

Content-Type: multipart/alternative;
boundary=Apple-Mail-E202A4BC-AC43-4A6A-AD3D-BF2A48B02BE0
Subject: Update -- Michigan and the Meaning
<html><head><meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=
utf-8"></head><body dir=3D"auto"><div><span></span></div><div><meta http-equ=
iv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></span=
> </div><div><meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=
utf-8"><div><span></span></div><div><meta http-equiv=3D"content-type" conten=
t=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><meta http-equ=
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> </div><div><meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=
utf-8"><div><span></span></div><div><meta http-equiv=3D"content-type" conten=
t=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><meta http-equ=
iv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></span=
> </div><div><meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=
utf-8"><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);">Mike &amp; Co. --</span></p>=
<p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);"><br></span></p><div><p class=3D"Mso=
Normal" style=3D"margin: 0in 0in 12pt;">It may feel like Michigan-morning-af=
ter but by dint of Mississippi, HRC padded her delegate lead last night.&nbs=
p;</p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"=
background-color: rgba(255, 255, 255, 0);">On Monday, &nbsp;President Obama h=
eld a financial regulatory summit in the Roosevelt Room of the White House. &=
nbsp;Joined by the heads of the Fed, the FDIC, and the CFPB, Obama declared =E2=
=80=9CI want to dispel the notion that exists both on the left and on the ri=
ght that somehow, after the crisis, nothing happened," he said. =E2=80=9CWe d=
id not just rebuild this, we rebuilt it better, and we=E2=80=99ve rebuilt it=
stronger.=E2=80=9D</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0i=
n 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">He has a s=
trong argument. &nbsp;You can't prove a negative and we will never know how m=
any financial crises were averted by Dodd-Frank. &nbsp;But metrics bear out t=
he view that Americans and the economy have less to fear today from the Syst=
emically Significant Financial Institutions (SIFIs) than at any time since t=
he turn of the millennium. &nbsp;</span>More on the regulatory circumstances=
of SIFIs below. &nbsp;</p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 1=
2pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Best,<o:p></=
o:p></span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Dana<o:p></o:p></span></p=
> <p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><b style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">-----------------------------------------=
--------</b></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><b st=
yle=3D"background-color: rgba(255, 255, 255, 0);">A Survey of the SIFI Lands=
cape</b></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">The landscape for the eight=
SIFIs today -- Bank of America, Bank of New York Mellon, Citigroup, Goldman=
Sachs, JP Morgan Chase, Morgan Stanley, State Street, and Wells Fargo --&nb=
sp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">is worth=
looking at from various perspectives. &nbsp;Presidential candidates on both=
sides have made a point of criticizing =E2=80=9Ctoo big to fail=E2=80=9D ba=
nks, court proceedings are challenging regulators powers', members of Congre=
ss are debating whether to loosen Dodd-Frank Act SIFI rules, and a current Fe=
deral Reserve Bank president has spoken out in favor of breaking them up. &n=
bsp;But do SIFIs pose the same threat they did in 2008?</span></p><p class=3D=
"MsoNormal" style=3D"margin: 0in 0in 12pt;"><b style=3D"background-color: rg=
ba(255, 255, 255, 0);"><u>The Power of DFA</u><o:p></o:p></b></p><p class=3D=
"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"background-color:=
rgba(255, 255, 255, 0);">President Obama hasn=E2=80=99t remained silent in t=
he face of criticism of DFA. &nbsp;After the Monday&nbsp;</span><span style=3D=
"background-color: rgba(255, 255, 255, 0);">summit,</span><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">&nbsp;Obama said that critics are sp=
reading =E2=80=9Ccynicism=E2=80=9D: &nbsp;=E2=80=9CIt is popular =E2=80=A6 t=
o suggest that the crisis happened and nothing changed.&nbsp; That is not tr=
ue.=E2=80=9D&nbsp; The President cited&nbsp;</span><span style=3D"background=
-color: rgba(255, 255, 255, 0);">the 14 million new jobs created since his i=
nauguration, proof, he said, that sensible regulations on Wall Street don=E2=
=80=99t stifle business growth.</span></p><p class=3D"MsoNormal" style=3D"ma=
rgin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">Two major business news stories from 2015 support the President=E2=80=99s=
view: &nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt=
;"><b style=3D"background-color: rgba(255, 255, 255, 0);">=C2=B7 &nbsp; Gene=
ral Electric</b><span style=3D"background-color: rgba(255, 255, 255, 0);"> c=
ontinued to sell off GE Capital, its $42 billion investment arm, hoping to e=
xit SIFI status in Q1 2016 as a result of its divestiture. &nbsp;</span></p>=
<p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><b style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">=C2=B7 &nbsp; MetLife</b><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);"> has been embroiled in a legal batt=
le with the Financial Stability Oversight Council (FSOC) since the regulator=
announced in December 2014 that the insurance company was considered a SIFI=
=E2=80=93 arguments were heard in New York this January.&nbsp;</span></p><p=
class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">70 percent of DFA has been implemented by=
the regulatory agencies since it was passed. &nbsp; Despite the constraints=
on SIFIs, they have by and large adapted well, making&nbsp;adjustments fast=
er, earlier and more successfully=E2=80=9D than their overseas counterparts.=
&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">=C2=B7 &nbsp; SIFIs no=
w hold much more capital now than they did before the crisis =E2=80=93 to th=
e tune of $700 billion in additional capital, twice the amount prior to it</=
span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">=C2=B7 &nbsp; SIFIs have three t=
imes the liquidity they had before the crisis</span></p><p class=3D"MsoNorma=
l" style=3D"margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255=
, 255, 255, 0);">=C2=B7 &nbsp; Derivatives clearing houses force transparenc=
y on SIFI speculation, preventing over-exposure</span></p><p class=3D"MsoNor=
mal" style=3D"margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(2=
55, 255, 255, 0);">=C2=B7 &nbsp; &nbsp;SIFIs now post collateral on their de=
rivatives trades</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 1=
2pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=C2=B7 &nbsp=
; &nbsp;SIFIs submit to rigorous stress testing by the Federal Reserve and FD=
IC&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><s=
pan style=3D"background-color: rgba(255, 255, 255, 0);">=C2=B7 &nbsp; &nbsp;=
SIFIs are being forced to draft =E2=80=9Cliving wills,=E2=80=9D which have a=
lready forced some to streamline or simplify so they can wind down without r=
equiring a bailout</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in=
12pt;"><b style=3D"background-color: rgba(255, 255, 255, 0);"><u>Congressio=
nal Update</u><o:p></o:p></b></p><p class=3D"MsoNormal" style=3D"margin: 0in=
0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Congre=
ss is split between those who want to reduce regulatory pressure on big bank=
s and those who would rather see it ramped up. &nbsp;Sen.</span><span style=3D=
"background-color: rgba(255, 255, 255, 0);">&nbsp;Shelby, Senate Banking Cha=
ir, introduced the Financial Regulatory Improvement Act of 2015, a grab-bag o=
f exceptions and exemptions from regulations, mostly for banks with between $=
50 and $500 billion in assets.&nbsp; In a similar vein, Sens Warner, Portman=
, and Collins introduced the Independent Agency Regulatory Analysis Act&nbsp=
;to require that regulators undertake a cost-benefit analysis of any rules t=
hey wish to implement.</span></p><p class=3D"MsoNormal" style=3D"margin: 0in=
0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">On the=
flip side, Sens. McCain and Warren=E2=80=99s 21<span style=3D"font-size: 12=
px;">st&nbsp;</span>Century Glass-Steagall Act proposes to split commercial a=
nd investment banks in a bid to finally kill off the TBTF problem.&nbsp; Sen=
s. Warren and Vitter teamed up early in 2015 to introduce a package of amend=
ments to the Federal Reserve Act =E2=80=93- that bill notably would set forw=
ard stricter regulations when an entity is considered insolvent, and therefo=
re ineligible for Federal Reserve loans, as well as require that the Fed len=
d money to distressed institutions at market rates.<o:p></o:p></span></p><p c=
lass=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><b style=3D"background-co=
lor: rgba(255, 255, 255, 0);">The Regulators' Agenda&nbsp;<o:p></o:p></b></p=
> <p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">Under Basel III requirements for large=
banks to satisfy Liquidity Coverage Ratios (LCR) were adopted by a number o=
f national regulators, including the Federal Reserve.&nbsp; While the Fed ha=
s floated a rule change allowing some municipal bonds to count as High Quali=
ty Liquid Assets (HQLA), that hasn=E2=80=99t stopped Rep. Luke Messer from p=
roposing HR 2209 to force regulators allow a greater share of munis to count=
as HQLA (see Update, Feb. 18).<o:p></o:p></span></p><p class=3D"MsoNormal" s=
tyle=3D"margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 25=
5, 255, 0);">The Fed is also working on implementing a rule on Single-Counte=
rparty Credit Limits (SCCL), setting boundaries on credit exposure between l=
arge banks or major counterparties.&nbsp; The rule is meant to prevent banks=
from becoming overexposed to other financial institutions, preventing them f=
rom taking overly large losses in the event that the counterparty fails.&nbs=
p; Analysts suspect that firms are nearly $100 billion over the limits impos=
ed by this rule, but Yellen says it is necessary to set a =E2=80=9Cbright li=
ne=E2=80=9D on credit exposure.<o:p></o:p></span></p><p class=3D"MsoNormal" s=
tyle=3D"margin: 0in 0in 12pt;"><b style=3D"background-color: rgba(255, 255, 2=
55, 0);">SIFIs Moving Forward<o:p></o:p></b></p><p class=3D"MsoNormal" style=
=3D"margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">There is no doubt that the upcoming MetLife ruling will be a critic=
al pivot point for how regulators interact with SIFIs.&nbsp; If the FSOC is r=
equired to retract the firm=E2=80=99s SIFI status it will open the regulator=
up for a whole slew of challenges from other banks and institutions.&nbsp; T=
he fate of Congressional proposals to restrict regulator=E2=80=99s efforts, e=
ither by determining rules for them or by burdening them with regulations of=
their own, should be seen as the start of a potential sea change in the reg=
ulatory climate.&nbsp; During his Monday meeting, President Obama warned of t=
his: "If there is a significant challenge in terms of regulating Wall Street=
and regulating our financial sector it is primarily coming from certain mem=
bers of Congress who are consistently pressuring independent regulators to b=
ack off.=E2=80=9D<o:p></o:p></span></p><p class=3D"MsoNormal" style=3D"margi=
n: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=
It is not a bad time to be a SIFI in America =E2=80=93 it=E2=80=99s certainl=
y much better to be one now than in 2010.&nbsp; While DFA has forced restruc=
turing and streamlining to occur, events like the GE Capital sell-off may pr=
ove to be exceptions that prove the rule rather than the new normal for SIFI=
s, especially if MetLife wins its case against regulators.&nbsp; President O=
bama was right to point to Congress as the cause of regulatory gridlock; the=
political will seen after the economic collapse has largely evaporated, giv=
ing SIFIs far more breathing room and opening up opportunities to push throu=
gh =E2=80=9Cregulatory reform=E2=80=9D measures.</span></p></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><div dir=3D"ltr"><div dir=3D"ltr"><div dir=3D"ltr"><p cl=
ass=3D"MsoNormal" style=3D"margin-bottom: 17.25pt;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">_____________________________________</spa=
n></p></div><p class=3D"MsoNormal"><b><u style=3D"background-color: rgba(255=
, 255, 255, 0);">Upcoming/Recent Updates</u></b></p></div></div></div><div s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392);"><div><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">=E2=80=A2 &nbsp; Thurs -- &nbsp;Financial Reg. Nominations</sp=
an></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=
=A2 &nbsp; Fri -- Update on Tax Bills</span></div><div><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; Mon --</span></div><di=
v><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div=
> <div><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp=
;=E2=80=A2 &nbsp; ERI/Housing</span></div><div><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; EU/US Derivatives=
Deal</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0=
);">&nbsp; &nbsp;=E2=80=A2 &nbsp; Pension Crisis</span></div><div><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div><div><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Survey of the SIFI Landsc=
ape (Mar 8)</span></div><div><span style=3D"background-color: rgba(255, 255,=
255, 0);">Michigan and the Meaning of Flint &nbsp;(Mar 8) Puerto Rico's Deb=
t Crisis &nbsp;(Mar. 5)</span></div><div><span style=3D"background-color: rg=
ba(255, 255, 255, 0);">Municipal Finance Caucus &nbsp;(Mar. 4)&nbsp;</span><=
/div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Flint Bi=
ll: &nbsp;Provisions &amp; Prospects (Mar. 2)&nbsp;</span></div><div><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Top Tax Bills Handicapped=
&nbsp;(Feb. 24)</span></div><div><span style=3D"background-color: rgba(255,=
255, 255, 0);">Bigger than the Budget Battle &nbsp;(Feb. 23)</span></div><d=
iv><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Infrastruc=
ture Finance Update &nbsp;(Feb. 18)&nbsp;</span></div><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">Does DFA Fail on Too Big to Fail? (=
Feb. 17)</span></div><div><span style=3D"background-color: rgba(255, 255, 25=
5, 0);">Below the Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;</span></div><div>=
<span style=3D"background-color: rgba(255, 255, 255, 0);">International Tax S=
tatus &nbsp;(Feb. 11)</span></div><div><span style=3D"background-color: rgba=
(255, 255, 255, 0);">The Fed Holds Steady &nbsp;(Feb. 10)</span></div><div><=
span style=3D"background-color: rgba(255, 255, 255, 0);">Obama's FY17 Budget=
&nbsp;(Feb. 9)&nbsp;</span><div><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Tax Talk of the Town &nbsp;(Feb. 3)<br></span></div></div></di=
v></div><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><o:p styl=
e=3D"background-color: rgba(255, 255, 255, 0);"><span style=3D"background-co=
lor: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composi=
tion-fill-color: rgba(130, 98, 83, 0.0980392);">Defending Dodd-Frank &nbsp;(=
Feb.2)</span></o:p></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=
1pt;"><o:p style=3D"background-color: rgba(255, 255, 255, 0);"><br></o:p></p=
> <p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><o:p style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">___________________&nbsp;</o:p></p>=
<div><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</span>=
</div><div><span style=3D"background-color: rgba(255, 255, 255, 0); color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress;">Mike &amp; Co. &nbsp;--</sp=
an></div><div><span style=3D"background-color: rgba(255, 255, 255, 0); color=
: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterpress;"><br></span></div><div><s=
pan style=3D"background-color: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress;">Tomorrow=E2=80=99s Michigan primary elect=
ion may end up being "yugge" if it seriously opens up the possibility that T=
rump can put the state in play in November --&nbsp;=E2=80=9CA normal Republi=
can cannot think of bringing in Michigan,=E2=80=9D said Trump&nbsp;-- nothin=
g any other GOP presidential candidate could do, now, or for the past 25 yea=
rs.&nbsp;</span><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compo=
sition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-le=
tterpress; background-color: rgba(255, 255, 255, 0);"><br></span><p class=3D=
"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=
margin: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);"><br></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=
xt-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Flint crystallizes so many of th=
e issues that give rise to this new tectonic possibility. &nbsp;There had to=
be a debate in Flint because there had to be a debate about it... and the S=
ecretary deserves far more credit than she's getting for making sure it happ=
ened. &nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"><span style=3D"=
background-color: rgba(255, 255, 255, 0);"><br></span></p><p class=3D"MsoNor=
mal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=
: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">In Washington, the Senate is readying to vote on a bipartisan package for=
drinking water aid.&nbsp; It=E2=80=99s not a slam dunk, however, as Mike Le=
e has maintained a hold on the bill, saying political grandstanding is takin=
g the place of policy. &nbsp;More on all this below.&nbsp;</span></p><p clas=
s=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=
-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=
ess; margin: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);"><br></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">Best,</span></p><p class=3D=
"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=
margin: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);"><br></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=
xt-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Dana</span></p><p class=3D"MsoNo=
rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=
n: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">______________________________________</span></p><p class=3D"MsoNormal" s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in 0=
in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><br>=
</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress; margin: 0in 0in 0.0001pt;"><span style=3D"background-=
color: rgba(255, 255, 255, 0);"><br></span></p><p class=3D"MsoNormal" style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in 0in 12p=
t;"><b><u style=3D"background-color: rgba(255, 255, 255, 0);">Flint -- Bills=
and Broad Strokes</u></b></p><p class=3D"MsoNormal" style=3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2); text-decoration: -webkit-letterpress; margin: 0in 0in 12pt;"><span style=
=3D"background-color: rgba(255, 255, 255, 0);">The Michigan legislature appr=
oved in January a $28 million appropriation to provide immediate aid to Flin=
t.&nbsp; Some critics maintain that the need to do so demonstrates the sorry=
condition of the state=E2=80=99s tax policy.&nbsp;&nbsp;<o:p></o:p></span><=
/p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=
t-letterpress; margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(=
255, 255, 255, 0);">The tax base in Flint was eroded significantly during th=
e 1980=E2=80=99s and 90=E2=80=99s as industry jobs left and the population f=
ell.&nbsp; To deal with the resulting fiscal imbalance the Flint city manage=
r was instructed to cut costs =E2=80=93 he did so partly by switching the so=
urce of Flint=E2=80=99s drinking water. The broad and deep cuts to state and=
local budgets affected basic public services most profoundly.&nbsp; Now, as=
a direct cause of these cuts, the residents of Flint are grappling with an i=
ssue no American ever considered possible =E2=80=93 they do not have access t=
o fresh drinking water.<o:p></o:p></span></p><p class=3D"MsoNormal" style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in 0in 12p=
t;"><span style=3D"background-color: rgba(255, 255, 255, 0);">For all the ta=
lk of federal aid in infrastructure financing there must be a place made for=
regular tax payers.&nbsp; These people bear a significant portion of direct=
funding for infrastructure projects both in their states and municipalities=
.&nbsp; When those tax revenues are redirected, or when state spending is cu=
t to the point that basic services can=E2=80=99t be provided then taxpayers a=
re right to question what, in fact, their taxes are paying for.&nbsp;&nbsp;<=
o:p></o:p></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-=
decoration: -webkit-letterpress; margin: 0in 0in 12pt;"><b style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"><u>Congressional update</u>:<o:p></o:p></=
b></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=
bkit-letterpress; margin: 0in 0in 12pt;"><span style=3D"background-color: rg=
ba(255, 255, 255, 0);">At the insistence of Democrats, the Flint agreement h=
as been attached to a Senate energy bill introduced by Sen. Murkowski, S. 20=
12, which is next in line in the Senate following the opioid addiction bill.=
&nbsp; The energy bill will be voted on soon, providing that things moves qu=
ickly (not a sure bet, since Dems may want to vote on certain amendments to t=
he opioid bill).&nbsp; Despite these potential hang ups, Senate leadership h=
opes to wrap up the energy bill by the end of the week =E2=80=93 giving them=
some breathing room before the Senate adjourns for Easter recess by March 2=
1.&nbsp;<o:p></o:p></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2); text-decoration: -webkit-letterpress; margin: 0in 0in 12pt;"><span style=
=3D"background-color: rgba(255, 255, 255, 0);">While Sen. Cruz lifted his ho=
ld on the bill last week, Mike Lee has continued to block movement on the le=
gislation. &nbsp;Sen. Lee is claiming that federal aid is not necessary to d=
eal with Flint:&nbsp;=E2=80=9CThe state of Michigan has an enormous budget s=
urplus this year and a large rainy-day fund, totaling hundreds of millions o=
f dollars," the Senator said in a statement.<o:p></o:p></span></p><p class=3D=
"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=
margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255,=
0);"><b><u>Flint agreement</u>:</b><b><o:p></o:p></b></span></p><p class=3D=
"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=
margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255,=
0);">The bill provides $250 million to assist the residents of&nbsp;Flint, M=
ichigan and other American cities experiencing critical problems with their w=
ater supplies by&nbsp;increasing funding for Drinking Water Act State Revolv=
ing Funds and provide start-up funding for the new Water Infrastructure Fina=
nce and Innovation Act.&nbsp; It includes:<o:p></o:p></span></p><p class=3D"=
MsoListParagraphCxSpFirst" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=
composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=
it-letterpress; margin: 0in 0in 12pt 0.5in;"><span style=3D"background-color=
: rgba(255, 255, 255, 0);">=C2=B7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$=
100 million for Drinking Water State Revolving Funds (SRFs) accessible by an=
y state with a drinking water emergency.&nbsp; It requires states to submit p=
lans explaining how the money will be spent to address the emergency before f=
unding is provided. &nbsp;&nbsp;Funds that remain after 18 months will be di=
stributed to all states under the existing SRF formula.&nbsp;<o:p></o:p></sp=
an></p><p class=3D"MsoListParagraphCxSpMiddle" style=3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=
xt-decoration: -webkit-letterpress; margin: 0in 0in 12pt 0.5in;"><span style=
=3D"background-color: rgba(255, 255, 255, 0);">=C2=B7&nbsp;&nbsp;&nbsp;&nbsp=
;&nbsp;&nbsp;&nbsp;$70 million in funding to back secured loans made under t=
he new Water Infrastructure Finance and Innovation Act (WIFIA).&nbsp; A fede=
ral investment of $70 million could support secured loans of up to $4.2 bill=
ion to address water and wastewater infrastructure needs across the country,=
according to Sen. Inhofe=E2=80=99s office.&nbsp; All states and all communi=
ties with clean water and drinking water infrastructure needs are eligible f=
or this assistance.&nbsp;<o:p></o:p></span></p><p class=3D"MsoListParagraphC=
xSpLast" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; ma=
rgin: 0in 0in 12pt 0.5in;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">=C2=B7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$50 million for var=
ious in authorized health programs for national use to address and prevent i=
mpacts from exposure to lead.&nbsp;<o:p></o:p></span></p><p class=3D"MsoNorm=
al" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin:=
0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><b=
> <u>=E2=80=9CFlint=E2=80=9D is more than Flint</u></b><o:p></o:p></span></p>=
<p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=
etterpress; margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255=
, 255, 255, 0);">Flint is a crisis of governance =E2=80=93 there is a discon=
nect in the relationship between citizens and government, and it bridges eve=
ry demographic.&nbsp; Just as the poor drink water so do the wealthy, and wh=
en a service as basic and fundamental is undermined to the point that an ent=
ire town of nearly a hundred thousands is poisoned by its own government, vo=
ters will express themselves, given the chance.&nbsp;</span></p><p class=3D"=
MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=
-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; m=
argin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">Residents, customers, consumers, taxpayers =E2=80=93- citizens at the en=
d of the day &nbsp;=E2=80=93- are seeing their government in a significantly=
different light and thus far are voting differently this year accordingly.&=
nbsp;Donald Trump would not likely be able to put Michigan in play without t=
his new perspective animation politics in Michigan as much as anywhere.&nbsp=
;</span></p></div><div><div style=3D"text-decoration: -webkit-letterpress;">=
<div dir=3D"ltr"><div dir=3D"ltr"><div dir=3D"ltr"><p class=3D"MsoNormal" st=
yle=3D"margin-bottom: 17.25pt;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">_____________________________________</span></p></div><p class=
=3D"MsoNormal"><b><u style=3D"background-color: rgba(255, 255, 255, 0);">Upc=
oming/Recent Updates</u></b></p></div></div></div><div style=3D"text-decorat=
ion: -webkit-letterpress;"><div><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">=E2=80=A2 &nbsp; Tues -- &nbsp;Financial Reg. Nominations</spa=
n></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=
=A2 &nbsp; Wed -- &nbsp;SIFIs and the Fed</span></div><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; Thurs -- Update on=
Tax Bills</span></div><div><span style=3D"background-color: rgba(255, 255, 2=
55, 0);"><br></span></div><div><div><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; ERI/Housing</span></div></di=
v><div><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbs=
p;=E2=80=A2 &nbsp; Intl Tax Reform</span></div><div><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; EU/US Deriva=
tives Deal</span></div><div><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; Pension Crisis</span></div><div><span=
style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div><div><=
span style=3D"background-color: rgba(255, 255, 255, 0);">Michigan and the Me=
aning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span></div>=
<div><span style=3D"background-color: rgba(255, 255, 255, 0);">Municipal Fin=
ance Caucus &nbsp;(Mar. 4)&nbsp;</span></div><div><span style=3D"background-=
color: rgba(255, 255, 255, 0);">Flint Bill: &nbsp;Provisions &amp; Prospects=
(Mar. 2)&nbsp;</span></div><div><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Top Tax Bills Handicapped &nbsp;(Feb. 24)</span></div><div><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Bigger than the Budge=
t Battle &nbsp;(Feb. 23)</span></div><div><div><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">Infrastructure Finance Update &nbsp;(Feb. 18)&n=
bsp;</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0=
);">Does DFA Fail on Too Big to Fail? (Feb. 17)</span></div><div><span style=
=3D"background-color: rgba(255, 255, 255, 0);">Below the Radar/Customs Bill &=
nbsp;(Feb. 16)&nbsp;</span></div><div><span style=3D"background-color: rgba(=
255, 255, 255, 0);">International Tax Status &nbsp;(Feb. 11)</span></div><di=
v><span style=3D"background-color: rgba(255, 255, 255, 0);">The Fed Holds St=
eady &nbsp;(Feb. 10)</span></div><div><span style=3D"background-color: rgba(=
255, 255, 255, 0);">Obama's FY17 Budget &nbsp;(Feb. 9)&nbsp;</span><div><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">Tax Talk of the Town &=
nbsp;(Feb. 3)<br></span><div><span style=3D"background-color: rgba(255, 255,=
255, 0);">Defending Dodd-Frank &nbsp;(Feb. 2)<br></span><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Fiscal Pol: Deficit/Debt Dormanc=
y (Jan. 28)</span></div><div><span style=3D"background-color: rgba(255, 255,=
255, 0);">The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span></div><div><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Debate Myths Challeng=
ed &nbsp;(Jan. 25)</span></div><div><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">Regulating the Regulators &nbsp;(Jan. 21)</span></div><div=
> <span style=3D"background-color: rgba(255, 255, 255, 0);">Sanders' Tax/Heal=
thcare Policy &nbsp;(Jan 20)</span></div><div><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">HRC's Tax Policy &nbsp;(Jan. 17)<br></span><div>=
<span style=3D"background-color: rgba(255, 255, 255, 0);">2016 Tax Agenda on=
the Hill &nbsp;(Jan. 16)</span></div><div><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span></div><=
div><span style=3D"background-color: rgba(255, 255, 255, 0);">2016 Tax Polic=
y Issues &nbsp;(Jan. 8)</span></div><div><span style=3D"background-color: rg=
ba(255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (Jan. 7)</span></div>=
<div><span style=3D"background-color: rgba(255, 255, 255, 0);">Sanders' Fin R=
eg Proposals &nbsp;(Jan. 5)</span></div><div><span style=3D"background-color=
: rgba(255, 255, 255, 0);">Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Yea=
r-End Review: Fin. Reg.&nbsp;&nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)<=
/span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">O=
mnibus Situation &nbsp;(Dec. 14)</span></div></div></div></div></div></div><=
div><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></d=
iv><div><span style=3D"background-color: rgba(255, 255, 255, 0);">------</sp=
an></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"><br>=
</span></div></div></div><div><span style=3D"background-color: rgba(255, 255=
, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">Mike &am=
p; Co. --</span></div><div><div style=3D"color: rgba(0, 0, 0, 0.701961); -we=
bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress;"><div dir=3D"ltr"><div dir=3D"ltr"><div dir=3D"ltr"><p c=
lass=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">The February jobs report came out this morning b=
etter than expected. &nbsp; Once again,&nbsp;</span><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">the US economy maintained strong job growt=
h without wage gains. &nbsp;Wages fell 0.1 percent in February, but 242,000 p=
ositions were added to the economy, marking 72 months of uninterrupted job g=
ains =E2=80=93 the longest streak on record.&nbsp;</span></p><p class=3D"Mso=
Normal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">Additionally, labor participation rose by 1.5 million Amer=
icans since November =E2=80=93 making it the highest it has been&nbsp;in 16 y=
ears&nbsp;(62.9 percent of the overall share of Americans).</span></p><p cla=
ss=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color=
: rgba(255, 255, 255, 0);">The report from Puerto Rico is not as sunny. &nbs=
p;The territory is still waiting on a Congressional bill designed to handle t=
he ongoing debt crisis on the island. &nbsp;</span><span style=3D"background=
-color: rgba(255, 255, 255, 0);">More &nbsp;below.</span></p><p class=3D"Mso=
Normal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">Best,</span></p><p class=3D"MsoNormal" style=3D"margin: 12=
pt 0in;">Dana</p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;">________=
______________________________</p><p class=3D"MsoNormal" style=3D"margin: 12=
pt 0in;"><b style=3D"background-color: rgba(255, 255, 255, 0);">Puerto Rico=E2=
=80=99s Time Bomb</b></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;">=
<span style=3D"background-color: rgba(255, 255, 255, 0);">The Puerto Rican d=
ebt crisis has been an ongoing concern for both Congress, Wall Street and th=
e Obama administration for some years now =E2=80=93 the territory=E2=80=99s b=
ond ratings have been steadily dropping into the junk category and fell from=
A- in 2005 to CCC+ last April.&nbsp; At the heart of the matter is $70 bill=
ion in bonds that Puerto Rico owes and says it cannot pay on.&nbsp;</span></=
p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">Because Puerto Rican bonds are tax exempt=
in all 50 states and the District of Columbia, making them incredibly popul=
ar investments for mutual funds, pensioners, and big banks.&nbsp; Over 20 pe=
rcent of mutual funds in the United States hold at least some Puerto Rican b=
onds, with $11.3 billion in portfolio, with a further $15 billion in bonds h=
eld by hedge funds.&nbsp; Now that the territory=E2=80=99s bonds are in the =E2=
=80=9Cjunk=E2=80=9D category, pension funds and insurance firms are unable t=
o hold them any longer.</span></p><p class=3D"MsoNormal" style=3D"margin: 12=
pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">The diver=
se list of bond holders has thrown a wrench into the plans of those who woul=
d rather allow Puerto Rico to default on its obligations =E2=80=93 something=
which would require legislative action (the territory doesn=E2=80=99t have t=
hat luxury, unlike states).&nbsp; If Puerto Rico is allowed to renege on its=
contractual agreements, the argument goes, then it creates a moral hazard f=
or other entities to do the same rather than make the tough choices necessar=
y to honor their obligations.&nbsp; The fact that many of these bonds are es=
sentially held by ordinary Americans (through mutual funds and pensions) mak=
es the argument all that stronger for many representatives.&nbsp; A state ha=
sn=E2=80=99t declared bankruptcy since Arkansas did so in 1933.</span></p><p=
class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">Moral hazard is inherent in a debt restructur=
ing deal; here, the path for Puerto Rico toward capital markets after anythi=
ng of the sort would still be an especially painful one (see: Argentina).&nb=
sp; Additionally, there are few serious proposals to grant the island full C=
hapter 9 status. &nbsp;Most opt instead for some form of negotiated haircut a=
greement combined with extending maturities on the bonds; these proposals ar=
e likely to succeed, considering Puerto Rico is almost certainly unable to m=
aintain its bond payment schedule without a restructuring agreement.</span><=
/p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);"><b>Administration Position</b><b></b></s=
pan></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">Testifying before the House Committ=
ee on Natural Resources on Feb 25, Treasury official Antonio Weiss warned la=
wmakers that Puerto Rico needs =E2=80=9Can immediate solution=E2=80=9D if it=
=E2=80=99s to survive past&nbsp;May 1, when a $470 million bond payment is d=
ue.&nbsp; Soon after that,&nbsp;on&nbsp;July 1, a $1.9 billion bond payment w=
ill come due as well =E2=80=93 Puerto Rican representatives have already dec=
lared they cannot meet those payments without assistance.</span></p><p class=
=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Weiss laid out the administration=E2=80=99s two-part=
plan: first the territory must be allowed to restructure its debt obligatio=
ns, second a fiscal oversight board should be established to assist the isla=
nd with managing its finances.&nbsp; Importantly, Weiss stopped short of adv=
ocating for bankruptcy protection for Puerto Rico and told the committee tha=
t =E2=80=9Can advisory board is not adequate to do the job=E2=80=9D alone.&n=
bsp;&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">House Democrats voiced=
concern over the financial oversight board, Rep. Luis Guti=C3=A9rrez: =E2=80=
=9CThey=E2=80=99re saying that there=E2=80=99s a joint responsibility, but i=
t seems to me that all of the responsibility is being weighed on the people o=
f Puerto Rico.=E2=80=9D&nbsp;&nbsp;</span></p><p class=3D"MsoNormal" style=3D=
"margin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">Meanwhile Republicans claimed that any plan to restructure Puerto Rican de=
bt was a non-starter; a few hours after the hearing the Republican Study Com=
mittee announced it would oppose any plan including such a provision.&nbsp;&=
nbsp;"Changing the rules mid-game would be unfair to Puerto Rico=E2=80=99s c=
reditors who entered into these arrangements with agreed upon terms and woul=
d delegitimize future transactions," said RSC Chairman&nbsp;Bill Flores.</sp=
an></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><b style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">Policy Options</b></p><p class=3D"MsoNo=
rmal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(255,=
255, 255, 0);">Until recently the two parties have maintained starkly contr=
asting views on how to best deal with Puerto Rico=E2=80=99s debt crisis =E2=80=
=93 Democrats have pushed for a forced debt restructuring, with some calling=
for the island to be granted Chapter 9 bankruptcy protections, meanwhile Re=
publicans called for a financial oversight council to make the tough fiscal d=
ecisions necessary for Puerto Rico to maintain its debt obligations without r=
eneging on its agreements.</span></p><p class=3D"MsoNormal" style=3D"margin:=
12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">The ad=
ministration, through Weiss, has advocated a middle of the road approach. By=
adopting both proposals and avoiding the further edges of each (no bankrupt=
cy, and no unaccountable board staffed by Wall Streeters), the administratio=
n hopes to find compromise between each group.&nbsp; And it seems like it mi=
ght work.</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><b st=
yle=3D"background-color: rgba(255, 255, 255, 0);">Finding Compromise</b></p>=
<p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Recently, however, the conservative s=
tance against debt restructuring has lessened =E2=80=93 with some Republican=
s saying that they could support a PR bill as long as it doesn=E2=80=99t inc=
lude Chapter 9 bankruptcy.&nbsp; House Natural Resources chair Bob Bishop ha=
s been working on a bill for Puerto Rico that does include some element of d=
ebt restructuring, and recently said =E2=80=9C=E2=80=9CI=E2=80=99m sure RSC w=
ill be satisfied with what we do =E2=80=A6 to say that some element of [debt=
restructuring] could be in there, yeah.=E2=80=9D &nbsp; &nbsp; &nbsp; &nbsp=
; &nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 17.25pt;">=
<span style=3D"background-color: rgba(255, 255, 255, 0);">The House is still=
sticking to its end of March deadline set by Speaker Ryan&nbsp;for putting f=
orward a final bill on Puerto Rico on the floor for a vote.&nbsp;</span></p>=
<p class=3D"MsoNormal" style=3D"margin-bottom: 17.25pt;"><span style=3D"back=
ground-color: rgba(255, 255, 255, 0);">_____________________________________=
</span></p></div><p class=3D"MsoNormal"><b><u style=3D"background-color: rgb=
a(255, 255, 255, 0);">Upcoming/Recent Updates</u></b></p></div></div></div><=
div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><div><=
span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; Th=
urs -- Municipal Finance Caucus</span></div><div><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; Fri -- Puerto Rico</span></d=
iv><div>=E2=80=A2 &nbsp; Mon -- FY17</div><div>=E2=80=A2 &nbsp; Tues -- 13 D=
Regs</div><div>=E2=80=A2 &nbsp; Wed -- &nbsp;TBD</div><div><br></div><div><=
div><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=
=80=A2 &nbsp; SBC Nominations</span></div><div><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; ERI/Housing</span=
> </div></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">=
&nbsp; &nbsp;=E2=80=A2 &nbsp; Intl Tax Reform</span></div><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; EU=
/US Derivatives Deal</span></div><div><span style=3D"background-color: rgba(=
255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; Pension Crisis</span></div=
> <div><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span><=
/div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Michigan=
and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</=
span></div><div>Municipal Finance Caucus &nbsp;(Mar. 4)&nbsp;</div><div><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">Flint Bill: &nbsp;Prov=
isions &amp; Prospects (Mar. 2)&nbsp;</span></div><div><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">Top Tax Bills Handicapped &nbsp;(Feb. 2=
4)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);=
">Bigger than the Budget Battle &nbsp;(Feb. 23)</span></div><div><div><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Infrastructure Finance Up=
date &nbsp;(Feb. 18)&nbsp;</span></div><div><span style=3D"background-color:=
rgba(255, 255, 255, 0);">Does DFA Fail on Too Big to Fail? (Feb. 17)</span>=
</div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Below t=
he Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;</span></div><div><span style=3D"=
background-color: rgba(255, 255, 255, 0);">International Tax Status &nbsp;(Fe=
b. 11)</span></div><div><span style=3D"background-color: rgba(255, 255, 255,=
0);">The Fed Holds Steady &nbsp;(Feb. 10)</span></div><div><span style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">Obama's FY17 Budget &nbsp;(Feb. 9)=
&nbsp;</span><div><span style=3D"background-color: rgba(255, 255, 255, 0);">=
Tax Talk of the Town &nbsp;(Feb. 3)<br></span><div><span style=3D"background=
-color: rgba(255, 255, 255, 0);">Defending Dodd-Frank &nbsp;(Feb. 2)<br></sp=
an><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Fiscal Pol=
: Deficit/Debt Dormancy (Jan. 28)</span></div><div><span style=3D"background=
-color: rgba(255, 255, 255, 0);">The Fed Holds Rates, for Now &nbsp;(Jan. 28=
)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> Debate Myths Challenged &nbsp;(Jan. 25)</span></div><div><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Regulating the Regulators &nbsp;(Jan=
. 21)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0=
);">Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span></div><div><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">HRC's Tax Policy &nbsp;(Jan=
. 17)<br></span><div><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span></div><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Glass-Steagall, Take 2 &nbsp;(Ja=
n. 13)</span></div><div><span style=3D"background-color: rgba(255, 255, 255,=
0);">2016 Tax Policy Issues &nbsp;(Jan. 8)</span></div><div><span style=3D"=
background-color: rgba(255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (=
Jan. 7)</span></div><div><span style=3D"background-color: rgba(255, 255, 255=
, 0);">Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span></div><div><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);">Year-End Review: Fiscal Poli=
cy (Jan. 1) &nbsp;Year-End Review: Fin. Reg.&nbsp;&nbsp;(Dec. 29) &nbsp;Omni=
bus Review (Dec. 15)</span></div><div><span style=3D"background-color: rgba(=
255, 255, 255, 0);">Omnibus Situation &nbsp;(Dec. 14)</span></div><div><span=
style=3D"background-color: rgba(255, 255, 255, 0);">FY 2016 Omnibus Talks (=
Dec. 10)</span></div><div><span style=3D"background-color: rgba(255, 255, 25=
5, 0);">Customs Bill &nbsp;(Dec. 8)</span></div><div><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">Tax Extender Negotiations &nbsp;(Dec. 6)&=
nbsp;</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0=
);">Brown on HFT &nbsp;(Dec. 4)</span></div></div></div></div></div></div></=
div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><=
span style=3D"background-color: rgba(255, 255, 255, 0);">Shelby 2.0 Update &=
nbsp;(Dec. 3)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -web=
kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;"><br></span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=
mposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=
-letterpress;"><span style=3D"background-color: rgba(255, 255, 255, 0);">___=
_____</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=
etterpress;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><br><=
/span></div><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=
press;">Mike &amp; Co. --</span><br><div style=3D"color: rgba(0, 0, 0, 0.701=
961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=
oration: -webkit-letterpress;"><br></div><div style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress;">In half an hour, the BLS jobs report for =
February is due to be released. &nbsp;If you'd like an update or have any qu=
estions, please let me know.&nbsp;</div><div style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress;"><br></div><div style=3D"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
text-decoration: -webkit-letterpress;">Meanwhile, amid the most fractious c=
ampaign in recent history comes an initiative in Congress that sounds, well,=
incongruous with the cacophany. &nbsp;A broad and bipartisan group of House=
members is behind the official launch of a caucus this week dedicated to pr=
otecting and expanding the tax exemption enjoyed by municipal debt.&nbsp;</d=
iv><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=
lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><b=
r></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=
ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=
;">You have to start somewhere and why not with incentives to address the na=
tion's long-neglected infrastructure with tax breaks -- about the only kind o=
f stimulus and jobs measure that can garner bipartisan support? &nbsp; More o=
n the new Municipal Finance Caucus below. &nbsp;</div><div style=3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress;"><br></div><div style=3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress;">Best,</div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;"><br></div><div sty=
le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=
30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">Dana</div><di=
v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><br></di=
v><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">___=
__________________________________<br><div><p class=3D"MsoNormal" style=3D"m=
argin: 12pt 0in;"><font style=3D"background-color: rgba(255, 255, 255, 0);">=
<b>A New Caucus</b></font></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0=
in;"><font style=3D"background-color: rgba(255, 255, 255, 0);">On Tuesday, R=
eps. Randy Hultgren and Dutch Ruppersberger announced that they have formed t=
he Municipal Finance Caucus to protect the tax-exempt status of municipal de=
bt and reexamine the way it is treated in financial regulations. &nbsp;In 20=
15, Hultgren and Ruppersberger sent a letter (reprinted below) to House lead=
ership&nbsp;</font><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> opposing&nbsp;the President=E2=80=99s proposed 28 percent cap on tax deduct=
ions for municipal bonds,&nbsp;signed by over 120 of their colleagues. &nbsp=
;</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Their announcement coincided wit=
h the National Association of State Treasurers=E2=80=99 legislative conferen=
ce in D.C. The same group drafted another letter, signed by more than 600 st=
ate and local officials, which urges the leaders of the House Ways and Means=
Committee and the Senate Finance Committee to reject curbs to the muni exem=
ption.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><b=
style=3D"background-color: rgba(255, 255, 255, 0);">Who=E2=80=99s in it?</b=
> </p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">Right now just the founding representa=
tives have declared their official membership, but it=E2=80=99s foreseeable t=
hat some of the 120 representatives that signed the letter to House leadersh=
ip in 2015 will join as well.&nbsp; It=E2=80=99s also seen a s likely that s=
ome Senators will want to join the caucus, but the founders haven't made cle=
ar if bicameral membership is a priority.</span></p><p class=3D"MsoNormal" s=
tyle=3D"margin: 12pt 0in;"><b style=3D"background-color: rgba(255, 255, 255,=
0);">Is it Bipartisan?</b></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0=
in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Since 2013 Hu=
ltgren and Ruppersberger have led bipartisan efforts to draft letters of sup=
port for municipal bonds. &nbsp;The signatories to these letters include mem=
bers from both sides of the aisle. &nbsp;Rep. Ruppersberger focuses mostly o=
n local government and is pretty moderate. Rep. Hultgren is a more orthodox c=
onservative Republican.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"marg=
in: 12pt 0in;"><b style=3D"background-color: rgba(255, 255, 255, 0);">What=E2=
=80=99s the Purpose?</b></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in=
;"><span style=3D"background-color: rgba(255, 255, 255, 0);">The Caucus plan=
s to defend municipal bonds=E2=80=99 tax exempt status and advocate for regu=
latory changes which favor those bonds.&nbsp; Proposals to limit the tax-exe=
mpt status of these bonds have been floated in recent years.&nbsp;</span></p=
> <p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">In addition to calling for the bonds to ma=
intain their tax preferred status, the Caucus will push for the passage of H=
R 2209, legislation considering municipal bonds as a</span><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">&nbsp;High Quality Liquid Asset (</=
span><span style=3D"background-color: rgba(255, 255, 255, 0);">HQLA) =E2=80=93=
a particularly contentious issue because of the disagreement over how flexi=
ble these liquidity rules should be from a systemic risk perspective.&nbsp;<=
/span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><b style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Positions Taken to Date</b></p><p cl=
ass=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">The Caucus founders have opposed Obama=E2=80=99s=
2015 proposal to cap municipal bond tax exemption at 28 percent. Rep. Hultg=
ren is also a co-sponsor of HR 2209 =E2=80=93 the bill to set the liquidity f=
or municipal bond assets at Level 2A (see Update, Feb. 18).&nbsp; Hultgren s=
aid the liquidity rules are an example of how regulators misunderstand munic=
ipal bonds, specifically the frequent serial structure of the their issuance=
s.</span></p><p xml:lang=3D"en-us" style=3D"box-sizing: border-box; margin: 1=
em 0px; padding: 0px; border: 0px; vertical-align: baseline; word-wrap: brea=
k-word; word-break: normal;"><span style=3D"background-color: rgba(255, 255,=
255, 0);">Many investors flock to municipal bonds for security. But some fe=
deral regulators trying to shore up the banking system aren't convinced the b=
onds would be easy to sell in a crisis.&nbsp;</span></p><p xml:lang=3D"en-us=
" style=3D"box-sizing: border-box; margin: 1em 0px; padding: 0px; border: 0p=
x; vertical-align: baseline; word-wrap: break-word; word-break: normal;"><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);"><b>Division of Opinio=
n</b></span></p><p xml:lang=3D"en-us" style=3D"box-sizing: border-box; margi=
n: 1em 0px; padding: 0px; border: 0px; vertical-align: baseline; word-wrap: b=
reak-word; word-break: normal;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Division of opinion on HR 2099 falls along unusual lines, with=
Wall Street, Congress and municipal officials challenging bank regulators' s=
kepticism toward municipal debt. &nbsp;&nbsp;</span><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">At issue are new rules aimed at ensuring b=
anks can raise enough cash during a financial-market meltdown to fund their o=
perations for 30 days. The requirements mean banks have to hold more cash or=
securities that are easily sellable.</span><span style=3D"background-color:=
rgba(255, 255, 255, 0);">&nbsp;</span></p><p xml:lang=3D"en-us" style=3D"bo=
x-sizing: border-box; margin: 1em 0px; padding: 0px; border: 0px; vertical-a=
lign: baseline; word-wrap: break-word; word-break: normal;"><span style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">Regulators don't think it is the p=
lace of Congress to second guess how they size up securities. Fed Chairwoman=
Janet Yellen, at a congressional hearing Feb. 11, said legislation would "i=
nterfere with our supervisory judgments."&nbsp;</span></p><p class=3D"MsoNor=
mal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Big banks such as Citigroup Inc. and Wells Fargo &amp; Co. hav=
e sprung into action in lobbying Congress, along with municipal leaders who f=
ret the rules will diminish bank bond-buying which could raise borrowing cos=
ts on infrastructure projects.</span></p><p class=3D"MsoNormal" style=3D"mar=
gin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Hu=
ltgren also said the caucus will work to update the number of projects that c=
ould be financed by qualified small issue manufacturing bonds, a type of pri=
vate-activity bond whose proceeds can be used to finance manufacturing facil=
ities for small- and mid-sized manufacturers. The tax code provisions on sma=
ll industrial development bonds have not been changed since the 1980s, he sa=
id. Hultgren sponsored a bill last year entitled =E2=80=9CThe Modernizing Am=
erican Manufacturing Bonds Act,=E2=80=9D which was focused on expanding oppo=
rtunities for qualified small issue manufacturing bonds, particularly by cha=
nging the national volume cap set by Congress.&nbsp;</span></p><p class=3D"M=
soNormal" style=3D"margin: 12pt 0in;"><b style=3D"background-color: rgba(255=
, 255, 255, 0);">What can be achieved?</b></p><p class=3D"MsoNormal"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Caucuses such as this one=
don't have the best reputation when it comes to getting things done. &nbsp;=
But rules relating to the liquidity value of capital is one of the few polic=
y &nbsp;areas of any kind where there is bipartisan agreement. &nbsp;Municip=
al bonds, in particular, have a universal appeal because of their direct lin=
k to local and state infrastructure projects. &nbsp;At the very least, the c=
aucus will spark some discussion about the best way to both reform existing m=
ethods for funding infrastructure investment and find new ways to fund it.&n=
bsp;</span></p><p class=3D"MsoNormal"><span style=3D"background-color: rgba(=
255, 255, 255, 0);">_________________________________</span></p></div></div>=
<div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><div d=
ir=3D"ltr"><div dir=3D"ltr"><p class=3D"MsoNormal"><b><u style=3D"background=
-color: rgba(255, 255, 255, 0);">Recent/Planned Updates</u></b></p></div></d=
iv></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=
s;"><div><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2=
&nbsp; Thurs -- Municipal Finance Caucus</span></div><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; Fri -- Puerto Rico=
</span></div><div>=E2=80=A2 &nbsp; Mon -- FY17</div><div>=E2=80=A2 &nbsp; Tu=
es -- 13 D Regs</div><div>=E2=80=A2 &nbsp; Wed -- &nbsp;TBD</div><div><br></=
div><div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbs=
p; &nbsp;=E2=80=A2 &nbsp; SBC Nominations</span></div><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; ERI/H=
ousing</span></div></div><div><span style=3D"background-color: rgba(255, 255=
, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; Intl Tax Reform</span></div><div><=
span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=
=A2 &nbsp; EU/US Derivatives Deal</span></div><div><span style=3D"background=
-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; Pension Crisi=
s</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> <br></span></div><div>Municipal Finance Caucus &nbsp;(Mar. 4)&nbsp;</div><d=
iv><span style=3D"background-color: rgba(255, 255, 255, 0);">Flint Bill: &nb=
sp;Provisions &amp; Prospects (Mar. 2)&nbsp;</span></div><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Top Tax Bills Handicapped &nbsp;=
(Feb. 24)</span></div><div><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">Bigger than the Budget Battle &nbsp;(Feb. 23)</span></div><div><div=
> <span style=3D"background-color: rgba(255, 255, 255, 0);">Infrastructure Fi=
nance Update &nbsp;(Feb. 18)&nbsp;</span></div><div><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">Does DFA Fail on Too Big to Fail? (Feb. 17=
)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> Below the Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;</span></div><div><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">International Tax Status &=
nbsp;(Feb. 11)</span></div><div><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">The Fed Holds Steady &nbsp;(Feb. 10)</span></div><div><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">Obama's FY17 Budget &nbsp;=
(Feb. 9)&nbsp;</span><div><span style=3D"background-color: rgba(255, 255, 25=
5, 0);">Tax Talk of the Town &nbsp;(Feb. 3)<br></span><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">Defending Dodd-Frank &nbsp;(Feb. 2)=
<br></span><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Fi=
scal Pol: Deficit/Debt Dormancy (Jan. 28)</span></div><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">The Fed Holds Rates, for Now &nbsp;=
(Jan. 28)</span></div><div><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">Debate Myths Challenged &nbsp;(Jan. 25)</span></div><div><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);">Regulating the Regulators &n=
bsp;(Jan. 21)</span></div><div><span style=3D"background-color: rgba(255, 25=
5, 255, 0);">Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span></div><div>=
<span style=3D"background-color: rgba(255, 255, 255, 0);">HRC's Tax Policy &=
nbsp;(Jan. 17)<br></span><div><span style=3D"background-color: rgba(255, 255=
, 255, 0);">2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span></div><div><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Glass-Steagall, Take 2=
&nbsp;(Jan. 13)</span></div><div><span style=3D"background-color: rgba(255,=
255, 255, 0);">2016 Tax Policy Issues &nbsp;(Jan. 8)</span></div><div><span=
style=3D"background-color: rgba(255, 255, 255, 0);">Sanders Proposals/GS &a=
mp; TBTF (Jan. 7)</span></div><div><span style=3D"background-color: rgba(255=
, 255, 255, 0);">Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span></div><div>=
<span style=3D"background-color: rgba(255, 255, 255, 0);">Year-End Review: Fi=
scal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg.&nbsp;&nbsp;(Dec. 29</s=
pan></div></div></div></div></div></div></div></div><div><br>On Mar 2, 2016,=
at 9:39 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachasin@gma=
il.com</a>&gt; wrote:<br><br></div><blockquote type=3D"cite"><div><meta http=
-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></=
span></div><div><div><span></span></div><div><meta http-equiv=3D"content-typ=
e" content=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><meta=
http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><sp=
an></span></div><div><meta http-equiv=3D"content-type" content=3D"text/html;=
charset=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"content-t=
ype" content=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><me=
ta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><=
span></span></div><div><meta http-equiv=3D"content-type" content=3D"text/htm=
l; charset=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"content=
-type" content=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><=
meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div=
> <span></span></div><div><meta http-equiv=3D"content-type" content=3D"text/h=
tml; charset=3Dutf-8"><div><span></span></div><div><div><span></span></div><=
div><meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"=
> <div><span></span></div><div><meta http-equiv=3D"content-type" content=3D"t=
ext/html; charset=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"=
content-type" content=3D"text/html; charset=3Dutf-8"><div><span></span></div=
> <div><meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-=
8"><div><span></span></div><div><div><span></span></div><div><meta http-equi=
v=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></span>=
</div><div><meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=
utf-8"><div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=
n-fill-color: rgba(130, 98, 83, 0.0980392);"><div><div><span style=3D"text-d=
ecoration: -webkit-letterpress;">Mike &amp; Co. --</span></div><div><div sty=
le=3D"text-decoration: -webkit-letterpress;"><br></div><div style=3D"text-de=
coration: -webkit-letterpress;">I hope everyone's had a chance to reflect on=
the magnitude of yesterday's hard fought primary wins -- with gratitude to t=
hose who toiled in the field.&nbsp;</div><div style=3D"text-decoration: -web=
kit-letterpress;"><br></div><div style=3D"text-decoration: -webkit-letterpre=
ss;">On Saturday night, the campaign debate turns to Flint, Michigan -- to t=
he town and the issues it has come to symbolize. &nbsp; The town's water con=
tamination and related problems finally move center stage.&nbsp;</div><div s=
tyle=3D"text-decoration: -webkit-letterpress;"><br></div><div style=3D"text-=
decoration: -webkit-letterpress;">Congress has moved with uncommon alacrity a=
nd bipartisanship in recent weeks on legislation to direct funding to addres=
s the water issue in Flint and elsewhere. &nbsp; Here, we look at the bill's=
provisions, its funding steam, and its prospects. &nbsp;</div><div style=3D=
"text-decoration: -webkit-letterpress;"><br></div><div style=3D"text-decorat=
ion: -webkit-letterpress;">Best,</div><div style=3D"text-decoration: -webkit=
-letterpress;"><br></div><div style=3D"text-decoration: -webkit-letterpress;=
">Dana</div><div style=3D"text-decoration: -webkit-letterpress;"><br></div><=
div style=3D"text-decoration: -webkit-letterpress;"><div><div><div><hr style=
=3D"box-sizing: content-box; border-style: solid; border-color: gray; height=
: 0px;"></div></div></div></div><div style=3D"text-decoration: -webkit-lette=
rpress;"><div dir=3D"ltr"><div dir=3D"ltr"><p class=3D"MsoNormal" style=3D"m=
argin-bottom: 0.0001pt;"><b><u style=3D"background-color: rgba(255, 255, 255=
, 0);">The Flint Bill -- Provisions &amp; Prospects</u></b></p><p class=3D"M=
soNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-color=
: rgba(255, 255, 255, 0);">A bipartisan deal has been reached in the Senate l=
ast week to aid the beleaguered city of Flint, Michigan as it tries to remed=
y its drinking water issues.&nbsp; Sen. Inhofe, the lead GOP Senator on the b=
ill, called it =E2=80=9Ccommon-sense," and noted that the spending is alread=
y programmed and involves no supplemental appropriation. &nbsp; The bill may=
be ready to move forward after Sen. Cruz lifted a hold he had placed on the=
bill last week. &nbsp;Sen. Mike Lee is still a hold-out.&nbsp;</span></p><p=
class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">The bill provides $250 million to assi=
st the residents of Flint, Michigan and other American cities experiencing c=
ritical problems with their water supplies by&nbsp;increasing funding for Dr=
inking Water Act State Revolving Funds and provide start-up funding for the n=
ew Water Infrastructure Finance and Innovation Act. &nbsp;It also provides:<=
/span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; $100 mill=
ion for Drinking Water State Revolving Funds (SRFs) accessible by any state w=
ith a drinking water emergency.&nbsp; It requires states to submit plans exp=
laining how the money will be spent to address the emergency before funding i=
s provided. &nbsp;&nbsp;Funds that remain after 18 months will be distribute=
d to all states under the existing SRF formula.&nbsp;<br></span></p><p class=
=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-=
color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; $70 million in funding to b=
ack secured loans made under the new Water Infrastructure Finance and Innova=
tion Act (WIFIA).&nbsp; A federal investment of $70 million could support se=
cured loans of up to $4.2 billion to address water and wastewater infrastruc=
ture needs across the country, according to Sen. Inhofe=E2=80=99s office.&nb=
sp; All states and all communities with clean water and drinking water infra=
structure needs are eligible for this assistance.&nbsp;<br></span></p><p cla=
ss=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp; $50 million for various i=
n authorized health programs for national use to address and prevent impacts=
from exposure to lead.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"marg=
in-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0=
);"><b>Where will the money come from? &nbsp;&nbsp;</b>The package has been f=
ully paid for -- it redirects appropriations by taking funds from the Advanc=
ed Technology Vehicles Manufacturing (ATVM) Fund, which offers loans for aut=
o companies.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0=
.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><b>Does t=
hat matter?</b>&nbsp; &nbsp;Per Sen. Inhofe =E2=80=9C[the ATVM is] a failed p=
rogram that hasn=E2=80=99t been used in more than a year and has only issued=
five loans since 2008."</span></p><p class=3D"MsoNormal" style=3D"margin-bo=
ttom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><=
b>More on ATVM</b>: The ATVM program is authorized to award up to $25 billio=
n in loans; there is no deadline for completing such loan commitments. Congr=
ess funded the program in 2009, when it appropriated $7.5 billion to cover t=
he subsidy cost for the $25 billion in loans, as well as $10 million for pro=
gram implementation. Since the start of the program, DOE has awarded $8.4 bi=
llion in loans to five companies. As of January 2015, ATVM has $16.6 billion=
in remaining loan authority. No new loans have been made since 2011. Two co=
mpanies =E2=80=94 Fisker and the Vehicle Production Group =E2=80=94 were una=
ble to make payments on their loans, and DOE auctioned the loans off in the f=
all of 2013. Tesla paid off all of its loan in 2013, nine years ahead of sch=
edule.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001=
pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><b>Criticisms=
of ATVM:&nbsp;</b>The unobligated funds remaining for the program have been=
a point of contention in recent appropriations debates. The House has voted=
several times to transfer some of the unused appropriation for the ATVM sub=
sidy costs to other purposes. None of these transfers were enacted. Other le=
gislators have sought to expand the program. Two recent federal reports call=
for rescinding the program=E2=80=99s unobligated balance: the FY2015 budget=
resolution reported by the House Budget Committee calls for outright rescis=
sion, and an April 2014 GAO report recommends Congress consider taking<b>&nb=
sp;</b>the same step unless DOE can generate new demand for the program.</sp=
an></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><b style=3D=
"background-color: rgba(255, 255, 255, 0);">Legislative Strategy: &nbsp;&nbs=
p;</b><span style=3D"background-color: rgba(255, 255, 255, 0);">Architects o=
f the bipartisan deal put out a hotline request to see if anyone would objec=
t to a series of procedural moves that would split Flint aid off the energy b=
ill (S. 2012), attach it to a House bill (H.R. 4470) sponsored by Reps. Dan K=
ildee and Fred Upton, allow voice votes on 30 amendments to the energy bill,=
and allow roll call votes on eight additional amendments. Michigan Sens. De=
bbie Stabenow and Gary Peters said Democrats are on board, but in order to a=
chieve unanimous consent, Republicans need to sign on.&nbsp;</span></p><p cl=
ass=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"><b>Will it pass?</b>&nbsp; The Flint pack=
age and the energy bill amendments would come to a vote only after the Senat=
e gets unanimous consent to some procedural maneuvers. Lee's hold went unnot=
iced earlier when GOP presidential candidate Sen. Ted Cruz had a hold of his=
own, which he has now lifted. The Senate had hoped to hold votes on Flint a=
nd end debate on the energy bill as early as next week.&nbsp;&nbsp;</span><s=
pan style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp; &nbsp;=
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp=
; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</span><span=
style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</span></p><p cla=
ss=3D"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0);"><=
b>What=E2=80=99s Next?&nbsp;&nbsp;&nbsp;</b>Sen. Stabenow, a key leader on t=
he bill, predicted that =E2=80=9Cone way or another=E2=80=9D the package wou=
ld be voted on in the Senate this week.&nbsp; And while&nbsp;the House hasn'=
t decided what it will do if the Flint bill clears the Senate, Energy and Co=
mmerce Committee Chairman Fred Upton said it would move quickly.</span></p><=
p class=3D"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">The Obama administration, which declared Flint a federal emergency in Ja=
nuary freeing up much-needed funds for the distressed city, has not issued a=
n official stance on the Flint deal.&nbsp; Early in the year the President a=
lso made available to the state of Michigan $80 million from a revolving fun=
d for infrastructure repair and improvement.&nbsp;&nbsp;</span></p><p class=3D=
"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0);">A numb=
er of important events are scheduled for the month of March, listed below.</=
span></p><p class=3D"MsoNormal"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">&nbsp; =E2=80=A2&nbsp; &nbsp;<a href=3D"x-apple-data-detectors=
://15" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calend=
ar-event" x-apple-data-detectors-result=3D"15">March 3</a>&nbsp;--&nbsp;Flin=
t is supposed to begin its lead service line replacement project.</span></p>=
<p class=3D"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">&nbsp; =E2=80=A2&nbsp; &nbsp;<a href=3D"x-apple-data-detectors://16" x-a=
pple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x=
-apple-data-detectors-result=3D"16">March 6</a>&nbsp;--&nbsp;The 7<sup>th</s=
up>&nbsp;Democratic debate will take place in the city of Flint, MI.&nbsp;&n=
bsp;</span></p><p class=3D"MsoNormal"><span style=3D"background-color: rgba(=
255, 255, 255, 0);">&nbsp; =E2=80=A2 &nbsp;</span><b style=3D"background-col=
or: rgba(255, 255, 255, 0);"><a href=3D"x-apple-data-detectors://17" x-apple=
-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-ap=
ple-data-detectors-result=3D"17">March 15</a>&nbsp;--&nbsp;</b><span style=3D=
"background-color: rgba(255, 255, 255, 0);">&nbsp;House Committee on Oversig=
ht and Government Reform will hold its next hearing on the Flint crisis.&nbs=
p; On schedule is testimony on the Safe Drinking Water Act (SDWA) by various=
policy professionals.</span></p><p class=3D"MsoNormal"><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">&nbsp; =E2=80=A2&nbsp; &nbsp;<a href=3D=
"x-apple-data-detectors://18" x-apple-data-detectors=3D"true" x-apple-data-d=
etectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"18">March 1=
7</a>&nbsp;--&nbsp;<u>&nbsp;</u>Hearings resume on SDWA oversight, with Mich=
igan Governor Rick Snyder and EPA Administrator Gina McCarthy scheduled to t=
estify.</span></p><div><div><div><hr style=3D"box-sizing: content-box; borde=
r-style: solid; border-color: gray; height: 0px;"></div></div></div><p class=
=3D"MsoNormal"><b><u>Upcoming/Recent Updates</u></b></p></div></div></div></=
div><div><div><div>=E2=80=A2 &nbsp; Wed -- Flint&nbsp;</div><div>=E2=80=A2 &=
nbsp; Thurs -- Municipal Finance Caucus</div><div>=E2=80=A2 &nbsp; Fri -- Pu=
erto Rico</div><div><br></div><div>&nbsp; &nbsp;=E2=80=A2 &nbsp;&nbsp;<span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Budget Irresolution</span=
> </div><div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">&=
nbsp; &nbsp;=E2=80=A2 &nbsp;13 D Regs</span></div><div><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; ERI/Housi=
ng</span></div></div><div><span style=3D"background-color: rgba(255, 255, 25=
5, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; Intl Tax Reform</span></div><div><span=
style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &=
nbsp; EU/US Derivatives Deal</span></div><div><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">&nbsp; &nbsp;=E2=80=A2 &nbsp; Pension Crisis</sp=
an></div><div><br></div><div>Flint Bill: &nbsp;Provisions &amp; Prospects (M=
ar. 2)&nbsp;</div><div>Top Tax Bills Handicapped &nbsp;(Feb. 24)</div><div>B=
igger than the Budget Battle &nbsp;(Feb. 23)</div><div><div>Infrastructure Fi=
nance Update &nbsp;(Feb. 18)&nbsp;</div><div>Does DFA Fail on Too Big to Fai=
l? (Feb. 17)</div><div>Below the Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;</d=
iv><div>International Tax Status &nbsp;(Feb. 11)</div><div>The Fed Holds Ste=
ady &nbsp;(Feb. 10)</div><div>Obama's FY17 Budget &nbsp;(Feb. 9)&nbsp;<div>T=
ax Talk of the Town &nbsp;(Feb. 3)<br><div>Defending Dodd-Frank &nbsp;(Feb. 2=
)<br><div>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</div><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">The Fed Holds Rates, for Now &nb=
sp;(Jan. 28)</span></div><div>Debate Myths Challenged &nbsp;(Jan. 25)</div><=
div>Regulating the Regulators &nbsp;(Jan. 21)</div><div>Sanders' Tax/Healthc=
are Policy &nbsp;(Jan 20)</div><div><span style=3D"text-decoration: -webkit-=
letterpress;">HRC's Tax Policy &nbsp;(Jan. 17)</span><br><div>2016 Tax Agend=
a on the Hill &nbsp;(Jan. 16)</div><div>Glass-Steagall, Take 2 &nbsp;(Jan. 1=
3)</div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">2016 T=
ax Policy Issues &nbsp;(Jan. 8)</span></div><div><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (Jan. 7)</spa=
n></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Sande=
rs' Fin Reg Proposals &nbsp;(Jan. 5)</span></div><div><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">Year-End Review: Fiscal Policy (Jan. 1) &=
nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">Year-E=
nd Review: Fin. Reg.&nbsp;</span><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">&nbsp;(Dec. 29) &nbsp;</span><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Omnibus Review (Dec. 15)</span></div><div><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);">Omnibus Situation &nbsp;(Dec=
. 14)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0=
);">FY 2016 Omnibus Talks (Dec. 10)</span></div><div><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">Customs Bill &nbsp;(Dec. 8)</span></div><=
div><span style=3D"background-color: rgba(255, 255, 255, 0);">Tax Extender N=
egotiations &nbsp;(Dec. 6)&nbsp;</span></div><div><span style=3D"background-=
color: rgba(255, 255, 255, 0);">Brown on HFT &nbsp;(Dec. 4)</span></div><div=
> <span style=3D"background-color: rgba(255, 255, 255, 0);">Shelby 2.0 Update=
&nbsp;(Dec. 3)</span></div></div></div></div></div></div></div></div><div><=
span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div><d=
iv></div></div><div></div></div><p style=3D"box-sizing: border-box; margin: 0=
px;"><br></p><p style=3D"box-sizing: border-box; margin: 0px;">Mike &amp; Co=
.&nbsp;</p><div><p class=3D"MsoNormal"><span style=3D"background-color: rgba=
(255, 255, 255, 0);">This has been a busy week in Washington especially on t=
he tax front, with more to follow. &nbsp;We've already seen a number of hear=
ings and developments on the most salient current tax bills and related prop=
osals in the last two days, which are &nbsp;itemized and vetted for viabilit=
y below.</span></p><p class=3D"MsoNormal"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Tomorrow, an assessment of which of these, as well a=
s "must-pass" tax items such as the expiring extenders, will make it to Obam=
a's desk by year-end and a review of</span><span style=3D"background-color: r=
gba(255, 255, 255, 0);">&nbsp;</span><span style=3D"background-color: rgba(2=
55, 255, 255, 0);">Brookings' panel discussion,&nbsp;</span><span style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">"Tax policy in 2016: What's new an=
d what's next," with</span><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">&nbsp;Ways and Means Chair Kevin Brady&nbsp;</span><span style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">and Senate Finance ranking member R=
on Wyden.&nbsp;</span></p><div>Best,</div><div><br></div><div>Dana</div><div=
> <br></div><div>______________________________________</div><div><br></div><=
p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span class=3D=
"s4" style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;=E2=80=A2&nbs=
p;</span><span class=3D"s5" style=3D"background-color: rgba(255, 255, 255, 0=
); font-weight: bold;"><span class=3D"bumpedFont20"><u>International Tax Ref=
orm</u></span></span><span class=3D"s6" style=3D"background-color: rgba(255,=
255, 255, 0);"><span class=3D"bumpedFont20">&nbsp;--</span></span></p><p cl=
ass=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span class=3D"s6"=
style=3D"background-color: rgba(255, 255, 255, 0);"><span class=3D"bumpedFo=
nt20"><br></span></span></p><p class=3D"s2" style=3D"margin-top: 0px; margin=
-bottom: 0px;"><span class=3D"s6" style=3D"background-color: rgba(255, 255, 2=
55, 0);"><span class=3D"bumpedFont20">Probably the most likely tax legislati=
on to pass in 2016, even though it's still called unlikely by key policymake=
rs. &nbsp;The two parties will have difficulty coming to an agreement on fir=
st what to do and then how to do it.&nbsp; Narrower legislation is more like=
ly to succeed than comprehensive reform. &nbsp;Most viable bills in this are=
a:</span></span></p><p class=3D"s2" style=3D"margin-top: 0px; margin-bottom:=
0px;"><span class=3D"s6"><span class=3D"bumpedFont20" style=3D"background-c=
olor: rgba(255, 255, 255, 0);"><br></span></span></p><p class=3D"s8" style=3D=
"margin-top: 0px; margin-bottom: 0px; margin-left: 36px;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);"><span class=3D"s5" style=3D"font-wei=
ght: bold;"><span class=3D"bumpedFont20">=E2=80=A2 &nbsp;Earnings Stripping -=
- &nbsp;</span></span>On the eve of today=E2=80=99s Ways and Means hearing r=
egarding international tax reform, &nbsp;ranking member&nbsp;</span><span cl=
ass=3D"s6" style=3D"background-color: rgba(255, 255, 255, 0);"><span class=3D=
"bumpedFont20">Chris Van&nbsp;</span></span><span class=3D"s6" style=3D"back=
ground-color: rgba(255, 255, 255, 0);"><span class=3D"bumpedFont20">Hollen</=
span></span><span class=3D"s6" style=3D"background-color: rgba(255, 255, 255=
, 0);"><span class=3D"bumpedFont20">&nbsp;and senior member Sander Levin off=
ered bills to constrain the practice whereby foreign parent companies extend=
large loans to their newly acquired U.S. partners and take advantage of the=
tax-deductible status of interest payment arrangement. &nbsp;</span></span>=
</p><p class=3D"s8" style=3D"margin-top: 0px; margin-bottom: 0px; margin-lef=
t: 36px;"><span class=3D"s6"><span class=3D"bumpedFont20" style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);"><br></span></span></p><p class=3D"s8" styl=
e=3D"margin-top: 0px; margin-bottom: 0px; margin-left: 36px;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);"><span class=3D"s5" style=3D"font=
-weight: bold;"><span class=3D"bumpedFont20">=E2=80=A2. Exit Tax Bills -- &n=
bsp;</span></span><span class=3D"s6"><span class=3D"bumpedFont20">Bills seek=
ing to reduce corporate inversions by making them too expensive to make busi=
ness sense are likely to be introduced before next recess.&nbsp;</span></spa=
n></span></p><p class=3D"s8" style=3D"margin-top: 0px; margin-bottom: 0px; m=
argin-left: 36px;"><span class=3D"s5" style=3D"background-color: rgba(255, 2=
55, 255, 0); font-weight: bold;"><span class=3D"bumpedFont20"><br></span></s=
pan></p><p class=3D"s8" style=3D"margin-top: 0px; margin-bottom: 0px; margin=
-left: 36px;"><span class=3D"s5" style=3D"background-color: rgba(255, 255, 2=
55, 0);"><span class=3D"bumpedFont20"><b>=E2=80=A2 &nbsp;Repatriation -- &nb=
sp;</b>Ryan and Schumer&nbsp;</span></span><span class=3D"s6" style=3D"backg=
round-color: rgba(255, 255, 255, 0);"><span class=3D"bumpedFont20">have talk=
ed up the idea of introducing legislation to repatriate U.S. multinational p=
rofits that are held abroad.&nbsp; A compromise will have to be struck betwe=
en Democrats seeking reduced tax levels for this purpose and Republicans who=
cite moral hazard. &nbsp;</span></span><span class=3D"s5" style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"><span class=3D"bumpedFont20">The Obama<b>=
&nbsp;</b></span></span><span class=3D"s6" style=3D"background-color: rgba(2=
55, 255, 255, 0);"><span class=3D"bumpedFont20">budget for FY2017 includes a=
proposal to allow overseas profits to come home at a special 14 percent tra=
te, and all overseas profits thereafter be taxed at 19 percent.&nbsp;</span>=
</span></p><p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><s=
pan style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</span></p><p c=
lass=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span class=3D"s9=
" style=3D"background-color: rgba(255, 255, 255, 0);"><span class=3D"bumpedFo=
nt20"><b>=E2=80=A2 &nbsp;<u>Broader</u></b><u>&nbsp;</u><b style=3D"text-dec=
oration: underline;">Corporate Tax Reform</b><b>&nbsp; -- &nbsp;&nbsp;</b></=
span></span></p><p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px=
;"><span class=3D"s10" style=3D"background-color: rgba(255, 255, 255, 0);"><=
span class=3D"bumpedFont20"><br></span></span></p><p class=3D"s2" style=3D"m=
argin-top: 0px; margin-bottom: 0px;"><span class=3D"s10" style=3D"background=
-color: rgba(255, 255, 255, 0);"><span class=3D"bumpedFont20">Any successful=
across the board corporate tax reform would almost have to lower the nomina=
l corporate tax rate of 35 percent. &nbsp;-- the highest in the world. &nbsp=
;Republicans are adamant that the high rate yields corporate inversions.</sp=
an></span><span class=3D"s10" style=3D"background-color: rgba(255, 255, 255,=
0);"><span class=3D"bumpedFont20">&nbsp;&nbsp;</span></span><span class=3D"=
s10" style=3D"background-color: rgba(255, 255, 255, 0);"><span class=3D"bump=
edFont20">Ways and Means chair Brady</span></span><span class=3D"s9" style=3D=
"background-color: rgba(255, 255, 255, 0); font-weight: bold;"><span class=3D=
"bumpedFont20">&nbsp;</span></span><span class=3D"s10" style=3D"background-c=
olor: rgba(255, 255, 255, 0);"><span class=3D"bumpedFont20">has pointed to t=
he corporate rate repeatedly as a sign that the U.S. has a =E2=80=9Cbroken t=
ax code that discourages investment and growth</span></span><span class=3D"s=
11" style=3D"background-color: rgba(255, 255, 255, 0);"><span class=3D"bumpe=
dFont20">.=E2=80=9D</span></span><span class=3D"s11" style=3D"background-col=
or: rgba(255, 255, 255, 0);"><span class=3D"bumpedFont20">&nbsp;</span></spa=
n></p><p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);"><br></span></p><p class=3D=
"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">Brady has not yet released his own reform b=
ill, but an op-ed of his published this morning gives an indication of what i=
t will include: &nbsp;=E2=80=9C</span><span style=3D"background-color: rgba(=
255, 255, 255, 0);">We must address the real root of the problem =E2=80=93 o=
ur broken tax code that discourages investment and growth =E2=80=A6 Our&nbsp=
;sky-high 35 percent corporate tax rate bears much of the blame =E2=80=A6 We=
cannot allow American taxpayers to foot the bill for tax revenue grabs in E=
urope and elsewhere.=E2=80=9D</span></p><p class=3D"s2" style=3D"margin-top:=
0px; margin-bottom: 0px;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);"><br></span></p><p class=3D"s2" style=3D"margin-top: 0px; margin-bot=
tom: 0px;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Provisi=
ons to look for: a lower overall corporate tax rate, language to address Eur=
opean investigations on U.S. businesses dodging taxes abroad.&nbsp; The bill=
likely won=E2=80=99t include language restricting inversions. &nbsp;</span>=
</p><div dir=3D"ltr"><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);"><span class=3D"s10"><s=
pan class=3D"bumpedFont20">Senate Finance chair Hatch</span></span><span cla=
ss=3D"s9" style=3D"font-weight: bold;"><span class=3D"bumpedFont20">&nbsp;</=
span></span><span class=3D"s10"><span class=3D"bumpedFont20">has suggested w=
riting legislation to make dividends tax deductible for corporations, elimin=
ating the so-called =E2=80=9Cdouble taxation=E2=80=9D of hitting corporate e=
arnings as well as dividend incomes from investors. &nbsp;The proposal faces=
long odds.&nbsp;</span></span></span></p></div><p class=3D"s2" style=3D"mar=
gin-top: 0px; margin-bottom: 0px;"><span style=3D"background-color: rgba(255=
, 255, 255, 0);">&nbsp;</span></p><p class=3D"s2" style=3D"margin-top: 0px; m=
argin-bottom: 0px;"><span class=3D"s14" style=3D"background-color: rgba(255,=
255, 255, 0);"><b>=E2=80=A2&nbsp;</b>&nbsp;</span><span class=3D"s14" style=
=3D"background-color: rgba(255, 255, 255, 0); font-weight: bold;"><u>Earned-=
Income Tax Credit</u>&nbsp;(EITC) --&nbsp;</span></p><p class=3D"s2" style=3D=
"margin-top: 0px; margin-bottom: 0px;"><span class=3D"s15" style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"><br></span></p><p class=3D"s2" style=3D"m=
argin-top: 0px; margin-bottom: 0px;"><span class=3D"s15" style=3D"background=
-color: rgba(255, 255, 255, 0);">One tax provisions in the Obama FY17 budget=
that has been muted if not mooted this week is his proposal to expand the E=
ITC for childless workers and create a $500 =E2=80=9Csecond earner=E2=80=9D t=
ax credit. &nbsp;The cost would be $150 billion over ten years.&nbsp;</span>=
</p><p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);"><br></span></p><p class=3D"=
s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span style=3D"background=
-color: rgba(255, 255, 255, 0);">During his SOTU, Obama expressed his desire=
to work with Speaker Ryan on the issue: &nbsp;=E2=80=9CI also know Speaker R=
yan has talked about his interest in tackling poverty. America is about givi=
ng everybody willing to work a chance, a hand up. And I=E2=80=99d welcome a s=
erious discussion about strategies we can all support, like expanding tax cu=
ts for low-income workers who don't have children.=E2=80=9D</span></p><p cla=
ss=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span class=3D"s19"=
style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></p><p class=
=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span class=3D"s19" s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">The credit is a long-stan=
ding darling of both progressives and the GOP establishment. Ryan and Presid=
ent Obama support extending it to childless workers. &nbsp;But they face res=
istance from&nbsp;</span><span class=3D"s19" style=3D"background-color: rgba=
(255, 255, 255, 0);">not just the hard right but from Sen. Hatch, who say it=
=E2=80=99s not =E2=80=9Cnecessary=E2=80=9D to expand the break.&nbsp;</span>=
</p><p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"><span cla=
ss=3D"s19" style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></=
p><div class=3D"MsoNormal" align=3D"center" style=3D"text-decoration: -webki=
t-letterpress; text-align: center;"><hr size=3D"2" width=3D"100%" align=3D"c=
enter" style=3D"text-align: start;"></div><p class=3D"s2" style=3D"margin-to=
p: 0px; margin-bottom: 0px;"><span class=3D"s19" style=3D"background-color: r=
gba(255, 255, 255, 0);"></span></p><p class=3D"MsoNormal" style=3D"color: rg=
ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0=
980392); text-decoration: -webkit-letterpress;">Upcoming/Recent Updates</p><=
div><br></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> =E2=80=A2 &nbsp;Derivatives Agreement w. EU</span></div><div>=E2=80=A2 &nbs=
p;Budget (Ir)Resolution</div><div>=E2=80=A2 &nbsp;Puerto Rico</div><div>=E2=80=
=A2 &nbsp;Econ. Revitalization/Housing</div><div><br></div><div>Top Tax Bill=
s Handicapped &nbsp;(Feb. 24)</div><div>Bigger than the Budget Battle &nbsp;=
(Feb. 23)</div><div><div>Infrastructure Finance Update &nbsp;(Feb. 18)&nbsp;=
</div><div>Does DFA Fail on Too Big to Fail? (Feb. 17)</div><div>Below the R=
adar/Customs Bill &nbsp;(Feb. 16)&nbsp;</div><div>International Tax Status &=
nbsp;(Feb. 11)</div><div>The Fed Holds Steady &nbsp;(Feb. 10)</div><div>Obam=
a's FY17 Budget &nbsp;(Feb. 9)&nbsp;<div>Tax Talk of the Town &nbsp;(Feb. 3)=
<br><div>Defending Dodd-Frank &nbsp;(Feb. 2)<br><div>Fiscal Pol: Deficit/Deb=
t Dormancy (Jan. 28)</div><div><span style=3D"background-color: rgba(255, 25=
5, 255, 0);">The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span></div><div>D=
ebate Myths Challenged &nbsp;(Jan. 25)</div><div>Regulating the Regulators &=
nbsp;(Jan. 21)</div><div>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</div>=
<div><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=
-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"=
> HRC's Tax Policy &nbsp;(Jan. 17)</span><br style=3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><div=
style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392);">2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</di=
v><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392);">Glass-Steagall, Take 2 &nbsp;(Jan. 13)</d=
iv><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=
lor: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">2016 Tax Policy Issues &nbsp;(Jan. 8)</span></div><div sty=
le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=
30, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255=
, 0);">Sanders Proposals/GS &amp; TBTF (Jan. 7)</span></div><div style=3D"co=
lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Sa=
nders' Fin Reg Proposals &nbsp;(Jan. 5)</span></div><div style=3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Year-End R=
eview: Fiscal Policy (Jan. 1) &nbsp;</span><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Year-End Review: Fin. Reg.&nbsp;</span><span style=3D=
"background-color: rgba(255, 255, 255, 0);">&nbsp;(Dec. 29) &nbsp;</span><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Omnibus Review (Dec. 1=
5)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=
tion-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-co=
lor: rgba(255, 255, 255, 0);">Omnibus Situation &nbsp;(Dec. 14)</span></div>=
<div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">FY 2016 Omnibus Talks (Dec. 10)</span></div><div style=3D"colo=
r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=
, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Cus=
toms Bill &nbsp;(Dec. 8)</span></div><div style=3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Tax Extender Negotiations=
&nbsp;(Dec. 6)&nbsp;</span></div><div style=3D"color: rgba(0, 0, 0, 0.70196=
1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">Brown on HFT &nbsp;(Dec. 4)=
</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">Shelby 2.0 Update &nbsp;(Dec. 3)</span></div><di=
v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255=
, 255, 0);"><br></span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">----</span></div></div></div></d=
iv></div></div></div><div><span style=3D"background-color: rgba(255, 255, 25=
5, 0);"><br></span></div><p class=3D"MsoNormal"><span style=3D"background-co=
lor: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composi=
tion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lett=
erpress;">Mike and Co. --</span></p><p class=3D"MsoNormal" style=3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress;"><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">The soap opera that is the federal budget mak=
ing process saw sone minor&nbsp;prima donna&nbsp;pratfalls this week.&nbsp; N=
othing remotely on the scale of blocking the confirmation of a Supreme Justi=
ce.&nbsp; But as Senate Budget's ranking member Sen. Cardin warned at a brea=
kfast today, you can forget regular order on the budget -- after the Preside=
nt submits a nomination, all comity in the Senate will be gone until Electio=
n Day.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress;"><span style=3D"background-color: rgba(255=
, 255, 255, 0);">Details and the latest below.&nbsp; Taxes&nbsp;<span class=3D=
"" tabindex=3D"0"><span class=3D"">tomorrow (b</span></span>e still your hea=
rt, right?).&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration: -webkit-letterpress;"><span style=3D"background-color: rg=
ba(255, 255, 255, 0);">Best,</span></p><p class=3D"MsoNormal" style=3D"color=
: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterpress;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">Dana</span><span style=3D"background-color=
: rgba(255, 255, 255, 0);">&nbsp;</span></p><div class=3D"MsoNormal" align=3D=
"center" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; te=
xt-align: center;"></div><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpress;"><b><u style=3D"background-color: rgba(=
255, 255, 255, 0);">Story in the Senate</u></b></p><p class=3D"MsoNormal" st=
yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">At the same DSCC &nbsp;breakfast=
one month ago, Sen. Merkley announced that, to his surprise, Senate Budget C=
hair Mike Enzi was going to put out a manager's mark for an FY17 budget reso=
lution for Committee markup, for February. &nbsp;Today, Enzi withdrew his ma=
rkup plans, without announcing a reschedule date.</span></p><p class=3D"MsoN=
ormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">To add to the growing=
problems within the GOP, the party, led by Senator Mitch McConnell, has dec=
lared all-out war on Obama=E2=80=99s impending Supreme Court nomination -- a=
n&nbsp;"nomination abomination"&nbsp;-- making it even more difficult to pre=
dict how these budget deliberations will end.&nbsp;</span></p><p class=3D"Ms=
oNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><=
b><u>Histrionics of the House&nbsp;</u></b></p><p class=3D"MsoNormal" style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Even before Obama released his FY201=
7 budget proposal earlier this month, House Republicans made it a point to e=
mphasize that it was DOA.&nbsp; Now, GOP is running into some dead ends of i=
ts own.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=
xt-decoration: -webkit-letterpress;"><span style=3D"background-color: rgba(2=
55, 255, 255, 0);">Speaker Ryan announced early on that he intended to pass t=
he budget through regular order this year -- a process that hasn=E2=80=99t b=
een successfully completed in a generation.&nbsp; Due to internal dicisions a=
nd outside pressures, House Republicans have changed their tune. &nbsp;</spa=
n></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=
bkit-letterpress;"><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> Yesterday, House Budget announced plans for a&nbsp;proposal&nbsp;next month=
to stick with the spending levels set by&nbsp;last fall=E2=80=99s deal with=
the White House while also giving members the chance to vote&nbsp;on other b=
ills that would slash government spending</span><span style=3D"background-co=
lor: rgba(255, 255, 255, 0);">. The compromise is meant to appease hard-righ=
t GOP members who vehemently opposed the Obama-Boehner budget agreement.&nbs=
p; Per Ryan's office: =E2=80=9CThis proposal enjoys the overwhelming support=
of the committee members, and the chairman looks forward to sharing it with=
the broader Conference as we continue moving this process forward.=E2=80=9D=
</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress;"><span style=3D"background-color: rgba(255, 255, 255,=
0);">The conservative Freedom Caucus so far has supported Speaker Ryan=E2=80=
=99s overtures for cooperation on the budget. &nbsp;But the GOP's hard-right=
wing may not remain so understanding of the Speaker=E2=80=99s position, esp=
ecially if their credentials are called into question by outside groups with=
sway over their base of support. &nbsp; Heritage Action said&nbsp;<span cla=
ss=3D"" tabindex=3D"0"><span class=3D"">Monday</span></span>&nbsp;that the g=
roup would oppose any budget blueprint that sticks to the Obama-Boehner deal=
, which increases spending by about $30 billion.</span></p><p class=3D"MsoNo=
rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><b><=
u style=3D"background-color: rgba(255, 255, 255, 0);">Going Forward&nbsp;</u=
> </b></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -we=
bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">It won't be an easy road ahead on the budget. &nbsp; The conservative cau=
cus has several dozen members, which gives it the power to torpedo any budge=
t proposal that lacks at least some Democratic support.&nbsp; If it decides t=
o back the new proposal put forth by Chair Tom Price of House Budget, it wou=
ld be likely for GOP leaders to be able to move forward.&nbsp; Some members h=
ave voiced their willingness to cooperate, but the pull of outside right-win=
g groups may prove to be too strong.</span></p><p class=3D"MsoNormal" style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Meanwhile, Minority Whip&nbsp;Steny H=
oyer said&nbsp;today that any Republican budget strategy that strays from th=
e Obama-Boehner deal would be opposed by House Democrats.&nbsp;</span></p><p=
class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=
terpress;"><span style=3D"background-color: rgba(255, 255, 255, 0);">The Hou=
se Budget plan is to submit the proposal honoring the spending limits agreed=
to last year, while allowing the hard-right GOP wing to vote on other bills=
which would slash spending,&nbsp;mollifying the more hawkish&nbsp;members.&=
nbsp;&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress;"><b><u style=3D"background-color: rgba(255=
, 255, 255, 0);">Dearth of Legislative Days</u></b></p><p class=3D"MsoNormal=
" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">Lengthening the odds again=
st Ryan, the House Budget is now working on a delayed schedule.&nbsp; In mid=
-January, the House Budget Committee announced that it would be releasing it=
s markup of the White House budget proposal early -=E2=80=93&nbsp;<a></a><a h=
ref=3D"x-apple-data-detectors://2" x-apple-data-detectors=3D"true" x-apple-d=
ata-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"2">on=
&nbsp;</a><span class=3D""><span class=3D""><a href=3D"x-apple-data-detector=
s://2" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calend=
ar-event" x-apple-data-detectors-result=3D"2">February 25</a></span></span><=
a href=3D"x-apple-data-detectors://2" x-apple-data-detectors=3D"true" x-appl=
e-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"2"=
> .</a>&nbsp;However, that has also changed<b><i>.&nbsp;</i></b>Yesterday<b><=
i>,&nbsp;</i></b>The Committee announced that it was now delaying its markup=
till sometime in March.&nbsp; The change is curious for a few reasons.&nbsp=
; It raises the question of why the House Budget Committee said it would hav=
e the markup done so early in the first place. Moreover, it goes against the=
House Republicans message of =E2=80=9Cgetting things done=E2=80=9D during t=
his Congress.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2); text-decoration: -webkit-letterpress;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Democrats are jumping on this delay already.&nbsp; N=
ancy Pelosi said: =E2=80=9CYet again, it=E2=80=99s the Speaker=E2=80=99s own=
broken promises =E2=80=93 and his own rhetoric =E2=80=93 that are coming ba=
ck to bite him.&nbsp; Because while the Speaker pledged an end to dysfunctio=
nal House-Republican leadership, all the American people are seeing is more o=
f the same.=E2=80=9D &nbsp;</span></p><p class=3D"MsoNormal" style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392); text-decoration: -webkit-letterpress;"><span style=3D"background-=
color: rgba(255, 255, 255, 0);">One thing is looks increasingly likely: that=
the nomination will exert a tidal force on at least the budget deliberation=
s and everything else, through the election. &nbsp;</span></p><p class=3D"Ms=
oNormal"><br></p><div><span id=3D"docs-internal-guid-4733a1b7-ec8c-3344-1176=
-d4eb9086feb6"><hr style=3D"box-sizing: content-box; border-style: solid; bo=
rder-color: gray; height: 0px;"></span></div><p class=3D"MsoNormal"><br></p>=
<p class=3D"MsoNormal">Upcoming/Recent Updates</p><div><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;Tax Talk</span></div><d=
iv><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp=
;Derivatives Agreement w. EU</span></div><div>=E2=80=A2 &nbsp;Puerto Rico</d=
iv><div>=E2=80=A2 &nbsp;Econ. Revitalization/Housing</div><div><br><div>Infr=
astructure Finance Update &nbsp;(Feb. 18)&nbsp;</div><div>Does DFA Fail on T=
oo Big to Fail? (Feb. 17)</div><div>Below the Radar/Customs Bill &nbsp;(Feb.=
16)&nbsp;</div><div>International Tax Status &nbsp;(Feb. 11)</div><div>The =
Fed Holds Steady &nbsp;(Feb. 10)</div><div>Obama's FY17 Budget &nbsp;(Feb. 9=
)&nbsp;<div>Tax Talk of the Town &nbsp;(Feb. 3)<br><div>Defending Dodd-Frank=
&nbsp;(Feb. 2)<br><div>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</div><di=
v><span style=3D"background-color: rgba(255, 255, 255, 0);">The Fed Holds Ra=
tes, for Now &nbsp;(Jan. 28)</span></div><div>Debate Myths Challenged &nbsp;=
(Jan. 25)</div><div>Regulating the Regulators &nbsp;(Jan. 21)</div><div>Sand=
ers' Tax/Healthcare Policy &nbsp;(Jan 20)</div><div><span style=3D"color: rg=
ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0=
980392); text-decoration: -webkit-letterpress;">HRC's Tax Policy &nbsp;(Jan.=
17)</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-=
fill-color: rgba(130, 98, 83, 0.0980392);"><div style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);">=
2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</div><div style=3D"color: rgba(0=
, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=
92);">Glass-Steagall, Take 2 &nbsp;(Jan. 13)</div><div style=3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">2016 Tax Po=
licy Issues &nbsp;(Jan. 8)</span></div><div style=3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">Sanders Proposals/GS &=
amp; TBTF (Jan. 7)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Sanders' Fin Reg Proposals &nbsp=
;(Jan. 5)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=
composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">Year-End Review: Fiscal Policy (Jan. 1)=
&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">Year=
-End Review: Fin. Reg.&nbsp;</span><span style=3D"background-color: rgba(255=
, 255, 255, 0);">&nbsp;(<a href=3D"x-apple-data-detectors://20" x-apple-data=
-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-d=
ata-detectors-result=3D"20">Dec. 29</a>) &nbsp;</span><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">Omnibus Review (<a href=3D"x-apple-data-=
detectors://21" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D=
"calendar-event" x-apple-data-detectors-result=3D"21">Dec. 15</a>)</span></d=
iv><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=
lor: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">Omnibus Situation &nbsp;(<a href=3D"x-apple-data-detectors=
://22" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calend=
ar-event" x-apple-data-detectors-result=3D"22">Dec. 14</a>)</span></div><div=
style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255,=
255, 0);">FY 2016 Omnibus Talks (<a href=3D"x-apple-data-detectors://23" x-=
apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event"=
x-apple-data-detectors-result=3D"23">Dec. 10</a>)</span></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">Customs Bill &nbsp;(<a href=3D"x-apple-data-detectors://25" x-apple-data-d=
etectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-dat=
a-detectors-result=3D"25">Dec. 8</a>)</span></div><div style=3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Tax Extende=
r Negotiations &nbsp;(<a href=3D"x-apple-data-detectors://26" x-apple-data-d=
etectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-dat=
a-detectors-result=3D"26">Dec. 6</a>)&nbsp;</span></div><div style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Brown o=
n HFT &nbsp;(<a href=3D"x-apple-data-detectors://27" x-apple-data-detectors=3D=
"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-data-detectors=
-result=3D"27">Dec. 4</a>)</span></div><div style=3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">Shelby 2.0 Update &nbs=
p;(<a href=3D"x-apple-data-detectors://29" x-apple-data-detectors=3D"true" x=
-apple-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D=
"29">Dec. 3</a>)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><br></div><div=
> <div><span id=3D"docs-internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6"><=
hr style=3D"box-sizing: content-box; border-style: solid; border-color: gray=
; height: 0px;"><br></span></div></div></div></div></div></div></div><p clas=
s=3D"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0);">Mi=
ke &amp; Co. --</span></p><p class=3D"MsoNormal"><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">One week ago, the House passed a bill that co=
uld alter and perhaps ease the way state and local infrastructure is finance=
d in the capital markets, when HR.2209, a bill to&nbsp;"require the appropri=
ate Federal banking agencies to treat certain municipal obligations as level=
2A liquid assets, and for other purposes"&nbsp;was adopted by the House wit=
h a voice vote. &nbsp;</span></p><p class=3D"MsoNormal"><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">Thought the bill has flown below the m=
edia radar, it is significant. &nbsp;Municipal obligations, including bonds,=
are at the heart of infrastructure investment in America.&nbsp; And infrast=
ructure investment has been a large focus of this primary.&nbsp; Both Democr=
atic candidates have proposed multi-hundred billion dollar infrastructure in=
vestment proposals.</span></p><p class=3D"MsoNormal"><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">Details below...</span></p><p class=3D"Ms=
oNormal"><span style=3D"background-color: rgba(255, 255, 255, 0);">Best,</sp=
an></p><p class=3D"MsoNormal">Dana</p><div><span id=3D"docs-internal-guid-47=
33a1b7-ec8c-3344-1176-d4eb9086feb6" style=3D"background-color: rgba(255, 255=
, 255, 0);"><hr style=3D"box-sizing: content-box; border-style: solid; borde=
r-color: gray; height: 0px;"></span></div><p class=3D"MsoNormal" style=3D"ma=
rgin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">I=
nfrastructure is mostly funded at the state or local level through the use o=
f municipal bonds. &nbsp;Between 2003 and 2012, counties, states, and other l=
ocalities invested $3.2 trillion in infrastructure through long-term tax-exe=
mpt municipal bonds, 2.5 times more than the federal investment. &nbsp;</spa=
n></p><p class=3D"MsoNormal"><b><u>The Bill</u></b></p><p class=3D"MsoNormal=
"><span style=3D"background-color: rgba(255, 255, 255, 0);">HR 2209 requires=
federal banking regulators to include municipal bonds under the Liquidity C=
overage Ratio (LCR). &nbsp;The LCR is designed to ensure that financial inst=
itutions have the necessary assets available to handle a liquidity disruptio=
n. &nbsp;Local officials have said that if the new rules aren=E2=80=99t chan=
ged, it will saddle them with higher borrowing costs by eliminating incentiv=
es banks have to purchase their bonds. Without bonds, these governments will=
lose a significant source of their funding. &nbsp;Per Indiana State Treasur=
er Kelly Mitchell: =E2=80=9CThis bill helps ensure cash-strapped school dist=
ricts and municipalities will continue to have access to bonds to finance pr=
ojects they think are best for their communities.=E2=80=9D&nbsp;</span></p><=
p class=3D"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">Rep. Luke Messer, an Indiana Republican who wrote the bill: &nbsp;=E2=80=
=9CPut simply, our bill requires the federal government to recognize the obv=
ious, that our municipal bonds are some of the safest investments in the wor=
ld and that we shouldn=E2=80=99t have rules that give preferential treatment=
to corporate bonds or other countries=E2=80=99 bonds over our own.=E2=80=9D=
&nbsp;</span></p><p class=3D"MsoNormal"><span style=3D"background-color: rgb=
a(255, 255, 255, 0);">After passing the House with unanimous bipartisan supp=
ort, a companion bill is expected to be introduced in the Senate this year. &=
nbsp;</span></p><p class=3D"MsoNormal"><b><u style=3D"background-color: rgba=
(255, 255, 255, 0);">Municipal Bond Issue</u></b></p><p class=3D"MsoNormal">=
<span style=3D"background-color: rgba(255, 255, 255, 0);">After the crisis o=
f 2008, federal regulators adopted international banking standards that requ=
ire banks to have enough "High-Quality Liquid Assets" to cover their cash ou=
tflows for 30 days in case of a future financial meltdown. &nbsp;Now, munici=
pal bonds are not considered liquid assets and therefore cannot be included u=
nder the &nbsp;LCR. &nbsp; As a result, financial institutions have been dis=
couraged from holding municipal debt, which means that cash strapped municip=
alities and school districts may eventually be forced to reduce or even stop=
work on projects &nbsp;financed with municipal bonds.&nbsp;</span></p><p cl=
ass=3D"MsoNormal"><u><b><span style=3D"background-color: rgba(255, 255, 255,=
0);">Infrastructure Financing --&nbsp;</span></b><b style=3D"background-col=
or: rgba(255, 255, 255, 0);">Alternative Financing</b></u></p><p class=3D"Ms=
oNormal"><span style=3D"background-color: rgba(255, 255, 255, 0);"><b>=E2=80=
=A2 &nbsp;&nbsp;</b></span><i style=3D"background-color: rgba(255, 255, 255,=
0);">Tax-exempt bonds: &nbsp;</i><span style=3D"background-color: rgba(255,=
255, 255, 0);">Exemption from federal taxes and many state and local taxes i=
s possible through the use of municipal bonds. &nbsp; In recent years, with t=
he increasing use of PPPs, barriers to this tax exemption have arisen. &nbsp=
;Treasury has reviewed relevant tax rules and based on their findings and ha=
ve put forth a proposal for an expanded and permanent America Fast Forward B=
ond Program as an alternative to tax-exempt bonds. &nbsp;Based on the succes=
sful Build America Bond program, =E2=80=9Cwould provide an efficient borrowi=
ng subsidy to state and local governments while appealing to a broader inves=
tor base than traditional tax-exempt bonds [and] would cover a broad range o=
f projects for which tax-exempt bonds can be used.=E2=80=9D&nbsp;</span></p>=
<p class=3D"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">&nbsp;=E2=80=A2 &nbsp;</span><i style=3D"background-color: rgba(255, 255=
, 255, 0);">Obama=E2=80=99s budget proposal: &nbsp;</i><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">Obama has also put forth a plan to stre=
ngthen local and state government infrastructure projects. His plan relies o=
n a new Federal credit program to support public-private partnerships within=
the Department of the Treasury. It will provide direct loans to US infrastr=
ucture projects developed through PPPs. The Obama Administration believes th=
at private investment is crucial for infrastructure development moving forwa=
rd, so there should be more flexibility in regards to what PPP is subject to=
. In addition to that, President Obama has proposed the taxable, direct-pay A=
merica Fast Forward bond program to help finance infrastructure. &nbsp;</spa=
n></p><p class=3D"MsoNormal"><b style=3D"background-color: rgba(255, 255, 25=
5, 0);"><u>State Infrastructure Banks</u></b></p><p class=3D"MsoNormal"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">Local governments rece=
ive financing in a number of ways. &nbsp;Traditional sources such as tax rev=
enues have been dwindling and local authorities have been relying on federal=
government loan programs, public-private partnerships, and State Revolving =
Funds (SRFs). &nbsp;State Infrastructure Banks (SIBs) are a subset of SRFs -=
- the funds act like a bank, because they don=E2=80=99t own the infrastructu=
re asset, but act as a lender or guarantor to the project sponsor. Per Brook=
ings: &nbsp;=E2=80=9CSRFs rely on principal repayments, bonds, interest and f=
ees to re-capitalize and replenish the fund as a perpetual source of debt fi=
nancing.=E2=80=9D</span></p><p class=3D"MsoNormal"><span style=3D"background=
-color: rgba(255, 255, 255, 0);">SIBs generate more investment per dollar th=
an traditional federal and state grant programs. &nbsp;They only exist in 33=
states and 10 of those SIBs are currently inactive. A large problem may be c=
ompliance with federal regulations. &nbsp;Brookings again:&nbsp;</span></p><=
p class=3D"MsoNormal"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">=E2=80=9CWe found that many SIB officials cite compliance with federal r=
egulations as slowing down the investment process either because of environm=
ental and contractual requireme</span><span style=3D"background-color: rgba(=
255, 255, 255, 0);">nts or due to the lack of flexibility in projects that a=
re not Title 23 or 49 eligible. For states with smaller projects, this may b=
e prohibitively costly compared to the advantage of using the low-cost SIB f=
inancing.=E2=80=9D&nbsp;</span></p><p class=3D"MsoNormal"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Just being called a bank subjects SI=
Bs to regulations that commercial banks are subject to. &nbsp;SIBs are non-f=
or-profit organizations with a goal of increasing infrastructure investment,=
so they don=E2=80=99t quite fit into the category of the average bank. &nbs=
p;SIBs may be more successful outside this classification.&nbsp;</span><span=
style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</span></p><p cla=
ss=3D"MsoNormal"><b><u style=3D"background-color: rgba(255, 255, 255, 0);">Fo=
r or Against Dodd-Frank</u></b></p><p class=3D"MsoNormal"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Before Dodd-Frank, particularly in t=
he case of relatively small municipalities, many underwriters forged long-te=
rm relationships with municipalities and would provide financial advice befo=
re and after a bond issuance. &nbsp;With Dodd-Frank, that relationship chang=
ed, with a new =E2=80=9Cmunicipal adviser=E2=80=9D category that must regist=
er with the SEC and be regulated by the Municipal Securities Rulemaking Boar=
d (MSR).&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">No=
w, it is widely illegal to provide advice to governmental entities concernin=
g the issuance of municipal bonds, the use of financial derivatives, and the=
investment of the proceeds of a bond issue to, or on behalf, of a municipal=
entity or an obligated person unless the adviser is registered with the SEC=
.&nbsp;</span></p><p class=3D"MsoNormal"><span style=3D"background-color: rg=
ba(255, 255, 255, 0);">HR 2209 appears to address a problem within Dodd-Fran=
k, but it is unclear if it vitiates the law materially. &nbsp;At face value,=
it appears to be more a technical fix. Dodd-Frank expanded regulations for b=
anking institutions, but the entities that fund state and local governments a=
re far unlike the TBTF institutions that Dodd-Frank was meant to regulate. &=
nbsp;&nbsp;</span></p><p class=3D"MsoNormal"><span style=3D"background-color=
: rgba(255, 255, 255, 0);">Groups like Americans for Financial Reform oppose=
HR 2209: =E2=80=9CWhile we sympathize with the belief that municipal debt w=
as incorrectly treated under the initial LCR rule, we believe that it is ina=
ppropriate to classify such debt as a Level 2A asset. AFR therefore opposes t=
his bill unless a more appropriate liquidity classification is used.=E2=80=9D=
&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">AFR h=
as previously said it supports treating municipal bonds as more liquid and d=
oes not approve the type of classification used in HR 2209, because it goes t=
oo far in its treatment of municipal debt as level 2A liquid assets and spec=
ifically with micromanaging regulators with this kind of detail and they pre=
fer a Level 2B classification.&nbsp;</span></p><p class=3D"MsoNormal"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">The bill could provide re=
lief for smaller institutions, so that they can fund infrastructure investme=
nt more easily. In terms of Dodd-Frank, it is yet to be decided if it is sim=
ply a necessary tweak or a criticism.&nbsp;</span><span style=3D"background-=
color: rgba(255, 255, 255, 0);">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &n=
bsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</span></p><p cl=
ass=3D"MsoNormal"><b><u style=3D"background-color: rgba(255, 255, 255, 0);">=
Looking Ahead</u></b></p><p class=3D"MsoNormal"><span style=3D"background-co=
lor: rgba(255, 255, 255, 0);">HR 2209 could end up being an important issue i=
n the national infrastructure discussion. &nbsp;It brings up questions about=
how far a state or local government can go before its activities begin to r=
esemble an actual bank. &nbsp;With the growth of PPPs, the private sector is=
being even more integrated into the process =E2=80=93 should those companie=
s be given tax exemptions, as well?&nbsp;</span></p><p class=3D"MsoNormal"><=
span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></p></di=
v><div><span id=3D"docs-internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6" s=
tyle=3D"background-color: rgba(255, 255, 255, 0);"><hr style=3D"box-sizing: c=
ontent-box; border-style: solid; border-color: gray; height: 0px;"></span></=
div><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;">Upcoming/Recent Updat=
es</p><div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=
=80=A2 &nbsp;Derivatives Agreement w. EU</span></div><div>=E2=80=A2 &nbsp;Bu=
dget (Ir)Resolution</div><div>=E2=80=A2 &nbsp;Puerto Rico</div><div>=E2=80=A2=
&nbsp;Econ. Revitalization/Housing</div><div><br><div>Infrastructure Financ=
e Update &nbsp;(Feb. 18)&nbsp;</div><div>Does DFA Fail on Too Big to Fail? (=
Feb. 17)</div><div>Below the Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;</div><=
div>International Tax Status &nbsp;(Feb. 11)</div><div>The Fed Holds Steady &=
nbsp;(Feb. 10)</div><div>Obama's FY17 Budget &nbsp;(Feb. 9)&nbsp;<div>Tax Ta=
lk of the Town &nbsp;(Feb. 3)<br><div>Defending Dodd-Frank &nbsp;(Feb. 2)<br=
> <div>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</div><div><span style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">The Fed Holds Rates, for Now &nbsp=
;(Jan. 28)</span></div><div>Debate Myths Challenged &nbsp;(Jan. 25)</div><di=
v>Regulating the Regulators &nbsp;(Jan. 21)</div><div>Sanders' Tax/Healthcar=
e Policy &nbsp;(Jan 20)</div><div><span style=3D"color: rgba(0, 0, 0, 0.7019=
61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-deco=
ration: -webkit-letterpress;">HRC's Tax Policy &nbsp;(Jan. 17)</span><br sty=
le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=
30, 98, 83, 0.0980392);"><div style=3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83, 0.0980392);">2016 Tax Agenda on=
the Hill &nbsp;(Jan. 16)</div><div style=3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);">Glass-Steaga=
ll, Take 2 &nbsp;(Jan. 13)</div><div style=3D"color: rgba(0, 0, 0, 0.701961)=
; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=
=3D"background-color: rgba(255, 255, 255, 0);">2016 Tax Policy Issues &nbsp;=
(Jan. 8)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (Jan. 7)=
</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span>=
</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=
-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba=
(255, 255, 255, 0);">Year-End Review: Fiscal Policy (Jan. 1) &nbsp;</span><s=
pan style=3D"background-color: rgba(255, 255, 255, 0);">Year-End Review: Fin=
. Reg.&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> &nbsp;(Dec. 29) &nbsp;</span><span style=3D"background-color: rgba(255, 255=
, 255, 0);">Omnibus Review (Dec. 15)</span></div><div style=3D"color: rgba(0=
, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=
92);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Omnibus Situ=
ation &nbsp;(Dec. 14)</span></div><div style=3D"color: rgba(0, 0, 0, 0.70196=
1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">FY 2016 Omnibus Talks (Dec.=
10)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compo=
sition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-=
color: rgba(255, 255, 255, 0);">Customs Bill &nbsp;(Dec. 8)</span></div><div=
style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255,=
255, 0);">Tax Extender Negotiations &nbsp;(Dec. 6)&nbsp;</span></div><div s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">Brown on HFT &nbsp;(Dec. 4)</span></div><div style=3D"color: rgba(0=
, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=
92);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Shelby 2.0 U=
pdate &nbsp;(Dec. 3)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961=
); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">----</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392);"><br></div></div></div></=
div></div></div></div><div><span style=3D"background-color: rgba(255, 255, 2=
55, 0);"><br></span></div><div><span style=3D"background-color: rgba(255, 25=
5, 255, 0);">Mike &amp; Co. &nbsp;--</span></div><div><div><span id=3D"docs-=
internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6"><p dir=3D"ltr" style=3D"=
margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"background-color: rgba(=
255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"margin-top: 0pt; m=
argin-bottom: 0pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">The newly-installed&nbsp;the Minneapolis Federal Reserve Bank and former S=
pecial Investigator&nbsp;overseeing the TARP program came to town yesterday a=
dvocating drastic action to head off a financial sector systemic risk crisis=
, calling for&nbsp;the nation's biggest banks to be broken up.&nbsp;</span><=
/p></span></div></div><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">His speech, delivered=
</span><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;at Br=
ookings, got noticed, with lengthy coverage in the NYT, WSJ, and WaPo.&nbsp;=
And perhaps with reason -- the TBTF (too big to fail) issue has dogged Cong=
ress and the administration for years and is one of the central ones</span><=
span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;in the Democr=
atic presidential campaign this far.&nbsp;</span></p><div><span id=3D"docs-i=
nternal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6"><p dir=3D"ltr" style=3D"m=
argin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline=
; background-color: rgba(255, 255, 255, 0);">Or maybe it was just a slow new=
s day. &nbsp;You decide...</span></p><p dir=3D"ltr" style=3D"margin-top: 0pt=
; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; background-c=
olor: rgba(255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"margin=
-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; bac=
kground-color: rgba(255, 255, 255, 0);">Best,&nbsp;</span></p><span style=3D=
"background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D=
"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseli=
ne; background-color: rgba(255, 255, 255, 0);">Dana</span></p><p dir=3D"ltr"=
style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-alig=
n: baseline; background-color: rgba(255, 255, 255, 0);"><br></span></p><hr s=
tyle=3D"box-sizing: content-box; border-style: solid; border-color: gray; he=
ight: 0px;"></span></div><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;">=
<br></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><b style=3D"backg=
round-color: rgba(255, 255, 255, 0);"><u>A Peculiar Package of Proposals</u>=
</b></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">Kashkari argued in the alternative t=
hat Dodd-Frank needs to be used and/or needs to be reformed. &nbsp;He says t=
he law as written does not solve the TBTF problem. &nbsp;He also wants regul=
ators to use the yet-untried tools at their disposal under the law. &nbsp;&n=
bsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=9C=
While significant progress has been made to strengthen our financial system,=
I believe the [Dodd-Frank] Act did not go far enough." &nbsp;He then laid o=
ut three ideas meant to end TBTF once and for all. &nbsp;</span></p><p class=
=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">=E2=80=A2 &nbsp;break up large banks into smaller, l=
ess connected, less important entities;</span></p><p class=3D"MsoNormal" sty=
le=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255=
, 0);">=E2=80=A2 &nbsp;turn what remains of the large banks into public util=
ities by forcing them to hold so much capital that they can=E2=80=99t fail; a=
nd</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;tax leverage thr=
oughout the financial system "to reduce systemic risks wherever they lie."</=
span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><b style=3D"back=
ground-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;<u>Break&nbsp;up the B=
anks</u></b></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in; vertical-a=
lign: baseline;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=46rom=
the perspective of current laws, breaking up big banks is already a policy a=
venue available to regulators.&nbsp; The Federal Reserve, through the Financ=
ial Stability Oversight Council, can elect to take a number of actions to de=
al with banks that it feels are both systemically important and organized in=
an unstable way.&nbsp; Section 121 of the Dodd-Frank Act gives the Board of=
Governors these powers.&nbsp;</span><span style=3D"background-color: rgba(2=
55, 255, 255, 0);">&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 1=
2pt 0in; vertical-align: baseline;"><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">So this first proposal =E2=80=93 break up big banks - has&=
nbsp;been covered here before but just for the sake of argument... which ban=
ks need to be broken up most urgently? &nbsp;Few commentators believe there i=
s an imminent threat demanding action. &nbsp;</span></p><p class=3D"MsoNorma=
l" style=3D"margin: 12pt 0in; vertical-align: baseline;"><span style=3D"back=
ground-color: rgba(255, 255, 255, 0);">Unsurprisingly, the Fed doesn=E2=80=99=
t believe that banks are so hopeless that they need to be dissolved. &nbsp;T=
hat doesn=E2=80=99t mean it=E2=80=99s not a possibility under current legisl=
ation, however.</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in; v=
ertical-align: baseline;"><b style=3D"background-color: rgba(255, 255, 255, 0=
);">=E2=80=A2 &nbsp;&nbsp;</b><b style=3D"background-color: rgba(255, 255, 2=
55, 0);"><u>Make Banks =E2=80=9CUtilities=E2=80=9D</u></b></p><p class=3D"Ms=
oNormal" style=3D"margin: 12pt 0in; vertical-align: baseline;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">The second proposal is to push c=
apital requirements for banks so high that they =E2=80=9Cessentially turn in=
to public utilities.=E2=80=9D&nbsp; Kashkari never explains how exactly high=
capital reserves turn banks into utilities, but that=E2=80=99s for another t=
ime.&nbsp;&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;=
vertical-align: baseline;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">He is voicing his support for one of the oldest forms of banking re=
gulations that we still use and use far more now in the Dodd-Frank era =E2=80=
=93 he wants banks to hold more capital. &nbsp;Supporters of the law may be h=
eartened by his full-throated endorsement of the law on this score.&nbsp;</s=
pan></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in; vertical-align: ba=
seline;"><b style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &n=
bsp;&nbsp;</b><b style=3D"background-color: rgba(255, 255, 255, 0);"><u>Crib=
bing from Clinton?</u></b></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0=
in; vertical-align: baseline;"><span style=3D"background-color: rgba(255, 25=
5, 255, 0);">The third proposal was just about lifted out of Secretary Clint=
on=E2=80=99s plan to regulate Wall Street =E2=80=93- though the reporting on=
the speech doesn=E2=80=99t much mention it much.&nbsp; It is reasonable bot=
h from a policy and a political perspective. But he doesn't provide further d=
etails about </span><span style=3D"background-color: rgba(255, 255, 255, 0);=
">his proposal after first outlining it.</span></p><p class=3D"MsoNormal" st=
yle=3D"margin: 12pt 0in; vertical-align: baseline;"><b style=3D"background-c=
olor: rgba(255, 255, 255, 0);">Kashkari contra Yellen</b></p><p class=3D"Mso=
Normal" style=3D"margin: 12pt 0in; vertical-align: baseline;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Fed Chair Yellen has been an out=
spoken proponent of existing banking regulations, making it known that while=
the job of regulators is not done yet. we=E2=80=99re in a much better situa=
tion now than we were before DFA. &nbsp;</span><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">During her testimony before House Financial Ser=
vices, Yellen fielded a question about why she had not yet broken up big ban=
ks, saying</span><span style=3D"background-color: rgba(255, 255, 255, 0);">:=
&nbsp;=E2=80=9C=E2=80=A6we [at the Fed]vare using our powers to make sure th=
at a systemically important institution could fail, and it would not be -- h=
ave systemic consequences for the country. We're doing that in a whole varie=
ty of ways.=E2=80=9D&nbsp;&nbsp;</span></p><p class=3D"MsoNormal" style=3D"m=
argin: 12pt 0in; vertical-align: baseline;"><span style=3D"background-color:=
rgba(255, 255, 255, 0);">The ways Yellen is referring to include enforcing L=
iquidity Coverage Ratios, capital reserve requirements, and a rule passed la=
st November forcing the biggest banks to issue long-term debt equal to 18 pe=
rcent of risk-weighted assets. &nbsp;</span></p><p class=3D"MsoNormal" style=
=3D"margin: 12pt 0in; vertical-align: baseline;">Evidently it's not enough. &=
nbsp;But it is nonetheless uncommon for<span style=3D"background-color: rgba=
(255, 255, 255, 0);">&nbsp;a newly minted Federal Reserve Bank President to t=
aking to task the Chair of the Federal Reserve=E2=80=99s Board of Governors.=
</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in; vertical-align:=
baseline;"><br></p><div>Upcoming/Recent Updates<div><br></div><div>=E2=80=A2=
&nbsp;Municipal Bond Rule</div><div>=E2=80=A2 &nbsp;Budget (Ir)Resolution</=
div><div>=E2=80=A2 &nbsp;Puerto Rico</div><div>=E2=80=A2 &nbsp;Derivatives A=
greement w. EU</div><div>=E2=80=A2 &nbsp;Econ. Revitalization/Housing<br><di=
v><br></div><div>Does DFA Fail on Too Big to Fail? (Feb. 17)</div><div>Below=
the Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;</div><div>International Tax St=
atus &nbsp;(Feb. 11)</div><div>The Fed Holds Steady &nbsp;(Feb. 10)</div><di=
v>Obama's FY17 Budget &nbsp;(Feb. 9)&nbsp;<div>Tax Talk of the Town &nbsp;(Fe=
b. 3)<br><div>Defending Dodd-Frank &nbsp;(Feb. 2)<br><div>Fiscal Pol: Defici=
t/Debt Dormancy (Jan. 28)</div><div><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span></div><=
div>Debate Myths Challenged &nbsp;(Jan. 25)</div><div>Regulating the Regulat=
ors &nbsp;(Jan. 21)</div><div>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)<=
/div><div><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=
-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=
ess;">HRC's Tax Policy &nbsp;(Jan. 17)</span><br style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);">=
<div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392);">2016 Tax Agenda on the Hill &nbsp;(Jan. 16)=
</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=
-color: rgba(130, 98, 83, 0.0980392);">Glass-Steagall, Take 2 &nbsp;(Jan. 13=
)</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgb=
a(255, 255, 255, 0);">2016 Tax Policy Issues &nbsp;(Jan. 8)</span></div><div=
style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255,=
255, 0);">Sanders Proposals/GS &amp; TBTF (Jan. 7)</span></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span></div><div style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Year-E=
nd Review: Fiscal Policy (Jan. 1) &nbsp;</span><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">Year-End Review: Fin. Reg.&nbsp;</span><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;(Dec. 29) &nbsp;</sp=
an><span style=3D"background-color: rgba(255, 255, 255, 0);">Omnibus Review (=
Dec. 15)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">Omnibus Situation &nbsp;(Dec. 14)</span>=
</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=
-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba=
(255, 255, 255, 0);">FY 2016 Omnibus Talks (Dec. 10)</span></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">Customs Bill &nbsp;(Dec. 8)</span></div><div style=3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><=
span style=3D"background-color: rgba(255, 255, 255, 0);">Tax Extender Negoti=
ations &nbsp;(Dec. 6)&nbsp;</span></div><div style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Brown on HFT &nbsp;(D=
ec. 4)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">Shelby 2.0 Update &nbsp;(Dec. 3)</span></d=
iv></div></div></div></div></div></div><div><p dir=3D"ltr" style=3D"margin-t=
op: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; backg=
round-color: rgba(255, 255, 255, 0);"><br></span></p><hr style=3D"box-sizing=
: content-box; border-style: solid; border-color: gray; height: 0px;"><br></=
div><div>Mike &amp; Co. &nbsp;--</div><div><span id=3D"docs-internal-guid-47=
33a1b7-ec8c-3344-1176-d4eb9086feb6"><br><p dir=3D"ltr" style=3D"background-c=
olor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span st=
yle=3D"vertical-align: baseline;">A national holiday, a snowstorm, and a con=
gressional recess stilled DC yesterday and a quiet week is expected.&nbsp; I=
t gives us a chance to have a look at some developments thus far this year t=
hat have flown below the radar.</span></p><br><p dir=3D"ltr" style=3D"backgr=
ound-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><s=
pan style=3D"vertical-align: baseline;">Today's item is the one bill on its w=
ay to the President=E2=80=99s desk -- the Customs bill -- and the caboose at=
tached to it that extends the internet tax moratorium permanently &nbsp;and m=
ay be the bill's important title... at least until the TPP comes up on the S=
enate floor.&nbsp;</span></p><p dir=3D"ltr" style=3D"background-color: rgba(=
255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vert=
ical-align: baseline;"><br></span></p><p dir=3D"ltr" style=3D"background-col=
or: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span styl=
e=3D"vertical-align: baseline;">Best, </span></p><br><p dir=3D"ltr" style=3D=
"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0=
pt;"><span style=3D"vertical-align: baseline;">Dana</span></p><p dir=3D"ltr"=
style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-=
bottom: 0pt;"><span style=3D"vertical-align: baseline;"><br></span></p><p di=
r=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt=
; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline;"><br></span>=
</p><hr style=3D"box-sizing: content-box; border-style: solid; border-color:=
gray; height: 0px;"><p dir=3D"ltr" style=3D"background-color: rgba(255, 255=
, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><br></p><p dir=3D"ltr" styl=
e=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-botto=
m: 0pt;"><span style=3D"font-weight: 700; vertical-align: baseline;">The Cus=
toms Bill: &nbsp;Comity on the Hill</span></p><br><p dir=3D"ltr" style=3D"ba=
ckground-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=
"><span style=3D"vertical-align: baseline;">The Senate cleared the first ove=
rhaul of the Customs and Border Protection (CBP) agency in more than a decad=
e in a 75-20 vote last Thursday, sending the bill to the President and endin=
g months of wrangling over the measure.&nbsp; The </span><a href=3D"http://w=
ww.finance.senate.gov/legislation/details/hr-644" style=3D"text-decoration: n=
one;"><span style=3D"text-decoration: underline; vertical-align: baseline;">=
Trade Facilitation and Trade Enforcement Act of 2015</span></a><span style=3D=
"vertical-align: baseline;"> (H.R. 644) retools CBP to increase its focus on=
blocking illegal trade and ensuring that legal trade moves smoothly.</span>=
</p><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin=
-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline;"> &=
nbsp;</span></p><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255=
, 0); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: b=
aseline;">The major facets of this legislation are: </span></p><br><p dir=3D=
"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; ma=
rgin-bottom: 0pt;"><span style=3D"vertical-align: baseline;">=E2=80=A2 &nbsp=
;new protections on intellectual property rights</span></p><p dir=3D"ltr" st=
yle=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bot=
tom: 0pt;"><span style=3D"vertical-align: baseline;">=E2=80=A2 &nbsp;new too=
ls to fight currency manipulation</span></p><p dir=3D"ltr" style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><spa=
n style=3D"vertical-align: baseline;">=E2=80=A2. a permanent extension of th=
e Internet Tax Freedom Act</span></p><br><p dir=3D"ltr" style=3D"background-=
color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span s=
tyle=3D"vertical-align: baseline;">Said Senate Finance ranking member Ron Wy=
den: &nbsp;=E2=80=9CThis bill is about coming down hard on the trade cheats w=
ho are ripping off American jobs, and the truth is past trade policies were o=
ften too old, too slow or too weak for our country to fight back."</span></p=
> <br><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margi=
n-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline;">W=
yden was perhaps the most outspoken Democrat in support of the bill, continu=
ing his role as a strong backer of free trade legislation.&nbsp; He was a ke=
y factor in getting Trade Promotion Authority legislation passed through Con=
gress last summer, splitting from some of his colleagues in voicing support f=
or that act.</span></p><br><p dir=3D"ltr" style=3D"background-color: rgba(25=
5, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-w=
eight: 700; text-decoration: underline; vertical-align: baseline;">Unusual C=
oalition</span></p><br><p dir=3D"ltr" style=3D"background-color: rgba(255, 2=
55, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><a href=3D"http://www.sen=
ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?&amp;congress=
=3D114&amp;session=3D2&amp;vote=3D00022" style=3D"text-decoration: none;"><s=
pan style=3D"text-decoration: underline; vertical-align: baseline;">27 Democ=
rats, 47 Republicans, and 1 Independent voted affirmatively</span></a><span s=
tyle=3D"vertical-align: baseline;">.&nbsp; Industry groups including the Nat=
ional Retail Federation, as well as the U.S. Chamber of Commerce were suppor=
tive of the legislation. &nbsp;National Association of Manufacturers=E2=80=99=
president Jay Timmons said =E2=80=9Cif senators want to grow manufacturing i=
n the United States, then they should pass this bill immediately.=E2=80=9D</=
span></p><br><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0=
); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: base=
line;">Notable =E2=80=9CNay=E2=80=9D votes include Sens. Durbin and Reid, wh=
o both expressed disappointment that the legislation was a =E2=80=9Cwatered d=
own=E2=80=9D version of a bill previously passed by the Senate. &nbsp;=E2=80=
=9DI like that [Senate] version, and that strong language on currency manipu=
lation,=E2=80=9D Durbin said =E2=80=93 that language required Commerce to co=
nsider =E2=80=9Cundervalued=E2=80=9D currencies to be equivalent to counterv=
ailable subsidies. &nbsp;=E2=80=9CThe conference report that=E2=80=99s back t=
o us now and before the Senate at this moment is a much different bill."</sp=
an></p><br><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0);=
margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-weight: 700; text=
-decoration: underline; vertical-align: baseline;">Purpose and Provisions</s=
pan></p><br><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0)=
; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: basel=
ine;">House and Senate negotiators agreed on a final customs bill in Decembe=
r. &nbsp; The House passed the measure 256-158 but the legislation stalled i=
n the Senate over a provision added in conference that permanently extends a=
moratorium on Internet access taxes. </span></p><br><p dir=3D"ltr" style=3D=
"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0=
pt;"><span style=3D"vertical-align: baseline;">That provision is perhaps the=
most reported on section in the bill =E2=80=93 it=E2=80=99s almost certainl=
y the most popular - it applies to localities, states, and the federal gover=
nment itself. &nbsp; Sen. Lamar Alexander cited it though as explanation for=
his =E2=80=9Cnay=E2=80=9D vote: "t</span><span style=3D"background-color: r=
gba(255, 255, 255, 0);">he federal government shouldn't be telling the state=
s what their tax structure should be."</span></p><br><p dir=3D"ltr" style=3D=
"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0=
pt;"><span style=3D"vertical-align: baseline;">Another important provision, k=
nown as the ENFORCE Act, would require the CBP to more aggressively investig=
ate complaints that companies are evading anti-dumping or countervailing dut=
ies on imports by mislabeling or disguising the shipments.</span></p><br><p d=
ir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0p=
t; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline;">The bill i=
ncludes a new Trade Enforcement Fund to bring trade cases through the WTO, t=
o investigate the implementation of trade requirements by other countries, a=
nd to respond to complaints of trade violations. &nbsp;It</span><span style=3D=
"background-color: rgba(255, 255, 255, 0);">&nbsp;also creates a nine-member=
Advisory Committee on International Exchange Rate Policy, whose members mus=
t be comprised of individuals from the private sector who are selected by bo=
th chambers of Congress and the President (three members each).</span></p><b=
r><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-t=
op: 0pt; margin-bottom: 0pt;"><span style=3D"font-weight: 700; text-decorati=
on: underline; vertical-align: baseline;">Currency Manipulation</span></p><b=
r><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-t=
op: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline;">Curr=
ency manipulation has been a long-standing concern of American policy-makers=
and a particularly contentious issue in global trade relations; claims that=
China has been chronically undervaluing its currency have made the news for=
a number of years.&nbsp; Advocates for stricter enforcement of currency man=
ipulation provisions claim that undervalued currencies operate similarly to e=
xport subsidies =E2=80=93 a prohibited practice within the World Trade Organ=
ization.</span></p><br><p dir=3D"ltr" style=3D"background-color: rgba(255, 2=
55, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-a=
lign: baseline;">The final bill dropped a Senate provision that would have r=
equired the Commerce Department to treat undervalued currency as an illegal s=
ubsidy under U.S. countervailing duty law.&nbsp; This provision would have o=
pened the door for compensatory tariffs to be levied against goods which ori=
ginate from countries which are found to purposely undervalue their currency=
in order to boost their exports. The bill does, however, include other meas=
ures that give the Treasury Department new tools to fight currency manipulat=
ion:</span></p><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255,=
0); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"background-co=
lor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;creates a s=
pecial fund for the CBP to ensure trading partners follow the rules and to b=
ring disputes before the WTO</span></p><p dir=3D"ltr" style=3D"background-co=
lor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;increases f=
unding to the National Intellectual Property Rights Coordination Center</spa=
n></p><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); marg=
in-top: 0pt; margin-bottom: 0pt;"><span style=3D"background-color: rgba(255,=
255, 255, 0);">=E2=80=A2 &nbsp;establishes the Commercial Customs Operation=
s Advisory Committee jointly between CBP and Treasury</span></p><p dir=3D"lt=
r" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margi=
n-bottom: 0pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=
=80=A2 &nbsp;requires CBP to investigate claims from other agencies of evasi=
on of anti-dumping or countervailing duties.</span></p><br><p dir=3D"ltr" st=
yle=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bot=
tom: 0pt;"><span style=3D"vertical-align: baseline;"><u><b>Relation to TPP</=
b></u></span></p><br><p dir=3D"ltr" style=3D"background-color: rgba(255, 255=
, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-ali=
gn: baseline;">Sen. Majority Leader McConnell has said that the Senate will n=
ot vote on the Trans-Pacific Partnership before the November elections, so i=
t may come as a surprise to see a bill which deals with enforcing trade deal=
s like TPP pass both houses of Congress.&nbsp; However this bill=E2=80=99s p=
rovisions for protecting IP rights, toughening countervailing duties, and ta=
ckling currency manipulation are a necessary prerequisite for agreements lik=
e TPP (or the far more nebulous TTIP).&nbsp; The new age of trade agreements=
&nbsp;will deal extensively in issues like intellectual property protection=
, trade in services, and high-tech product trading; types of commerce which a=
re far more difficult to regulate compared to the trade of physical goods. <=
/span></p><br><p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0=
); margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: base=
line;">So, despite the fact that TPP won=E2=80=99t get a vote until after No=
vember (and perhaps not in 2016 at all), and may not pass even then, the pro=
tections set forward in the customs bill are necessary to allow American com=
panies to continue to compete in the global marketplace.</span></p><br><p di=
r=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt=
; margin-bottom: 0pt;"><span style=3D"font-weight: 700; text-decoration: und=
erline; vertical-align: baseline;">Price of Passage</span></p><br><p dir=3D"=
ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; mar=
gin-bottom: 0pt;"><span style=3D"vertical-align: baseline;">In order to incl=
ude the permanent extension of the Internet Tax Freedom Act, McConnell had t=
o promise that a vote would be held this year on the Marketplace Fairness Ac=
t.&nbsp; That legislation grants states greater authority to collect sales t=
axes from online businesses who sell products within their borders.&nbsp; Wh=
ile McConnell himself opposes the bill, it was the only way to get the custo=
ms bill (with the tax amendment attached) unstuck.</span></p><br><span style=
=3D"background-color: rgba(255, 255, 255, 0); vertical-align: baseline;">Jus=
t because McConnell has promised it will be brought to a vote doesn=E2=80=99=
t mean it will be a smooth process - the Senate passed the Marketplace Fairn=
ess Act in 2013 with 69 votes, and most of the lawmakers who voted for it ar=
e still in the chamber.&nbsp; Some lawmakers like Kelly Ayotte, who is facin=
g a tough reelection campaign this year, have vowed to fight tooth-and-nail a=
gainst it.&nbsp; Despite these detractors in the Senate, the real battle may=
occur in the House, where two competing proposals have been brought forward=
. &nbsp;</span></span></div><div><br></div><div><hr style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; box-sizing: content-box; border-style: solid; border-color: gray; height: 0=
px;"><br>Upcoming/Recent Updates<div><br></div><div>=E2=80=A2 &nbsp;Municipa=
l Bond Rule</div><div>=E2=80=A2 &nbsp;Budget (Ir)Resolution</div><div>=E2=80=
=A2 &nbsp;Puerto Rico</div><div>=E2=80=A2 &nbsp;Derivatives Agreement w. EU<=
/div><div>=E2=80=A2 &nbsp;Econ. Revitalization/Housing<br><div><br></div><di=
v>Below the Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;</div><div>International=
Tax Status &nbsp;(Feb. 11)</div><div>The Fed Holds Steady &nbsp;(Feb. 10)</=
div><div>Obama's FY17 Budget &nbsp;(Feb. 9)&nbsp;<div>Tax Talk of the Town &=
nbsp;(Feb. 3)<br><div>Defending Dodd-Frank &nbsp;(Feb. 2)<br><div>Fiscal Pol=
: Deficit/Debt Dormancy (Jan. 28)</div><div><span style=3D"background-color:=
rgba(255, 255, 255, 0);">The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span=
> </div><div>Debate Myths Challenged &nbsp;(Jan. 25)</div><div>Regulating the=
Regulators &nbsp;(Jan. 21)</div><div>Sanders' Tax/Healthcare Policy &nbsp;(=
Jan 20)</div><div><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=
letterpress;">HRC's Tax Policy &nbsp;(Jan. 17)</span><br style=3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80392);"><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 98, 83, 0.0980392);">2016 Tax Agenda on the Hill &nbsp;=
(Jan. 16)</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=
tion-fill-color: rgba(130, 98, 83, 0.0980392);">Glass-Steagall, Take 2 &nbsp=
;(Jan. 13)</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">2016 Tax Policy Issues &nbsp;(Jan. 8)</span><=
/div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=
color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(=
255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (Jan. 7)</span></div><di=
v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255=
, 255, 0);">Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span></div><div style=
=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">Year-End Review: Fiscal Policy (Jan. 1) &nbsp;</span><span style=3D"back=
ground-color: rgba(255, 255, 255, 0);">Year-End Review: Fin. Reg.&nbsp;</spa=
n><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;(Dec. 29) &=
nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">Omnibu=
s Review (Dec. 15)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Omnibus Situation &nbsp;(Dec. 14=
)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">FY 2016 Omnibus Talks (Dec. 10)</span></div><di=
v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255=
, 255, 0);">Customs Bill &nbsp;(Dec. 8)</span></div><div style=3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Tax Exten=
der Negotiations &nbsp;(Dec. 6)&nbsp;</span></div><div style=3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Brown on HFT=
&nbsp;(Dec. 4)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"=
background-color: rgba(255, 255, 255, 0);">Shelby 2.0 Update &nbsp;(Dec. 3)<=
/span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=
n-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color=
: rgba(255, 255, 255, 0);"><br></span></div><div style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);">=
<span style=3D"background-color: rgba(255, 255, 255, 0);">----</span></div><=
div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392);"><br></div></div></div></div></div></div><br>=
</div><div><br>On Feb 11, 2016, at 7:47 PM, Dana &lt;<a href=3D"mailto:danac=
[email-masked]">[email-masked]</a>&gt; wrote:<br><br></div><blockquot=
e type=3D"cite"><div><meta http-equiv=3D"content-type" content=3D"text/html;=
charset=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"content-t=
ype" content=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><me=
ta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><=
span></span></div><div><div>Mike &amp; Co. &nbsp;--</div><div><div style=3D"=
color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98=
, 83, 0.0980392); text-decoration: -webkit-letterpress;"><br></div><div styl=
e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=
0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">One thing the t=
wo parties agree is that international tax reform is a fiscally necessary is=
sue to take up -- that Uncle Sam is leaving hundreds of billions of dollars o=
n the table overseas annually. &nbsp; But they would also generally agree th=
at it is not going to get done this year. &nbsp;</div><div style=3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress;"><br></div><div style=3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress;">Under current law, tho=
se profits are subject only to federal taxes if they are returned, or repatr=
iated, to the U.S. where they face a top rate of 35 percent. &nbsp;Many comp=
anies avoid U.S. taxes on those earnings by simply leaving them overseas.</d=
iv><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=
lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><b=
r></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=
ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=
;">There is bipartisan activity on the issue in both houses of Congress. Oba=
ma has a major reform proposal on the table. &nbsp;So is this the year, in t=
he year of surprises?</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -we=
bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress;"><br></div><div style=3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=
on: -webkit-letterpress;">Best,</div><div style=3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=
coration: -webkit-letterpress;"><br></div><div style=3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=
xt-decoration: -webkit-letterpress;">Dana</div><div style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration: -webkit-letterpress;"><br></div><div style=3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=
0392); text-decoration: -webkit-letterpress;"><div><div class=3D"block block=
-thehill-blocks ntv844166-128893-60429" id=3D"ntv844166-128893-60429" style=3D=
"box-sizing: border-box; margin-bottom: 23px;"><hr style=3D"box-sizing: cont=
ent-box; border-style: solid; border-color: gray; height: 0px;"><p class=3D"=
" style=3D"box-sizing: border-box; margin: 0px 0px 15px; font-weight: bold;"=
> </p></div></div><div><div></div></div></div><div style=3D"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
text-decoration: -webkit-letterpress;">Reforms in the area of international=
tax deal with both the repatriation of foreign-derived profits and the issu=
e of corporate inversions. &nbsp;Testifying today, Treasury Secretary Jack L=
ew encouraged the parties in Congress to overcome their differences on both,=
which he believes surmountable: &nbsp;=E2=80=9CI just want to underscore th=
e urgency of dealing with inversions =E2=80=A6 We can=E2=80=99t wait a year t=
o deal with this,=E2=80=9D Lew said during a Senate Finance hearing on the O=
bama administration=E2=80=99s budget. Congress could pass narrow legislation=
on inversions, he said, even if broader reform of the international system i=
s preferable.&nbsp;</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -w=
ebkit-letterpress;"><br></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><b style=3D"te=
xt-decoration: -webkit-letterpress;"><u>Stirrings in the Senate</u></b></div=
> <div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392);"><b style=3D"text-decoration: -webkit-lette=
rpress;"><u><br></u></b></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress;">Sen. Schumer also announced today that he is in cont=
act with Speaker Ryan about coming to an agreement on repatriating corporate=
profits. &nbsp;They were unable to come to an agreement last year on a simi=
lar measure put forth as part of a larger reform effort. &nbsp;Schumer said t=
oday: =E2=80=9CWe=E2=80=99re trying to bridge over, of course, the divide be=
tween existing proposals. &nbsp;I remain at the table ready to work.=E2=80=9D=
&nbsp;</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=
press;"><br></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=
etterpress;">One of the key differences between the parties concerns whether=
the money raised from tax reform should be turn into government revenue for=
more spending, or used to pay down the debt or pass tax cuts. &nbsp;After t=
he Senate Finance hearing yesterday, Chair Hatch said: &nbsp;=E2=80=9CI'm ac=
tually working on international, but I just don't think it's going to get do=
ne this year, because, you know, let's face it, the Democrats are going to w=
ant to raise revenue. &nbsp;They want money to spend.=E2=80=9D &nbsp;</div><=
div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><br></=
div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">A=
t that same hearing, Sen. Shelby pushed a corporate integration plan he is d=
eveloping to eliminate the double taxation of corporate income by providing c=
orporations a dividend deduction. &nbsp;He's awaiting a score by the Joint C=
ommittee on Taxation. &nbsp;Dividend deductions are usually quite expensive a=
nd regressive, so it will a feat to attract any Democratic support, especial=
ly for him.&nbsp;</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit=
-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -web=
kit-letterpress;"><br></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><b style=3D"tex=
t-decoration: -webkit-letterpress;"><u>Brady's Push&nbsp;</u></b></div><div s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><br></div><=
div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">Meanwh=
ile, Ways and Means Chair Kevin Brady has said that he wants a vote this yea=
r on moving the United States into a territorial tax system, which would per=
manently exempt US-based businesses from paying taxes on income earned abroa=
d. &nbsp;He also wants to lower the corporate rate to 20 percent. &nbsp;In t=
he face of these proposals it is difficult to see what sort of compromise ca=
n be found between Democrats and Republicans, as the former may be more preo=
ccupied just keeping alive the idea that foreign profits should be taxed at a=
ll. =E2=80=9CThe goal of these reforms are not to generate more spending,=E2=
=80=9D Brady said. =E2=80=9CIt=E2=80=99s to bring back real dollars to be re=
invested in the United States.=E2=80=9D</div><div style=3D"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
text-decoration: -webkit-letterpress;"><br></div><div style=3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392); text-decoration: -webkit-letterpress;">Brady has been advocating for i=
nternational tax reform since he took over Ways and Means. &nbsp;Last month,=
he spoke with Sen. Hatch and they were both committed to getting something d=
one. &nbsp;Senior Republicans believe the country=E2=80=99s international ta=
x problems =E2=80=94 inversions and Europe going after revenues from U.S. co=
mpanies among them =E2=80=94 are urgent. &nbsp;But Brady strongly hinted tha=
t all that work would be aimed at setting things up for 2017, when Republica=
ns want =E2=80=9Cpro-growth tax reform under a Republican president.=E2=80=9D=
Perhaps that=E2=80=99s no huge shock, but it does seem to set up something o=
f a disconnect, given all the talk of urgency.</div><div style=3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80392); text-decoration: -webkit-letterpress;"><br></div><div style=3D"color=
: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterpress;">Brady and his supporters=
have been pushing the idea that American money is either being taxed by oth=
er countries or being taken over by foreign competitors in an inversion -- t=
ypically, when an American company incorporates abroad so its earnings are n=
o longer subject to American taxes. &nbsp;Brady says the result is an erosio=
n of our tax base and a lock-out effect of American capital being =E2=80=9Ct=
rapped=E2=80=9D abroad that can be solved by fixing our uncompetitive tax co=
de.</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=
s;"><br></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392);"><b style=3D"text-decoration: -=
webkit-letterpress;"><u>Presidential Proposal</u></b></div><div style=3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress;"><br></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;">The President=E2=80=
=99s FY 2017 budget contains a surprising source of new revenue to pay for i=
ts spending programs =E2=80=93 a major piece of international tax policy ref=
orm: a six-year, $478 billion public-works program for highway, bridge and t=
ransit upgrades, half of it to be financed with a one-time, 14 percent tax o=
n U.S. companies=E2=80=99 overseas profits and a 19 percent rate thereafter.=
&nbsp;The issue of companies holding foreign profits at locations abroad, w=
here they are exempt from taxation until repatriated, has vexed policy maker=
s on both sides for some time. &nbsp;It=E2=80=99s estimated that these profi=
ts add up to nearly $2 trillion.&nbsp;</div><div style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpress;"><br></div><div style=3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2); text-decoration: -webkit-letterpress;">The issue of companies holding fo=
reign profits at locations abroad, thereby exempt from taxation unless those=
profits are brought home, has vexed policy makers on both sides for some ti=
me. &nbsp;Microsoft Corp., Apple Inc., Google Inc. and five other tech firms=
now account for more than a fifth of the $2.10 trillion in profits that U.S=
. companies are holding overseas. &nbsp;In keeping with the idea that Obama=E2=
=80=99s final budget is =E2=80=9Cmore politics than policy,=E2=80=9D these r=
evenue-gaining proposals are meant to spark discussion more so than be a mod=
el for laws going forward.&nbsp;</div><br><div style=3D"text-decoration: -we=
bkit-letterpress;"><div><div class=3D"block block-thehill-blocks ntv844166-1=
28893-60429" id=3D"ntv844166-128893-60429" style=3D"box-sizing: border-box; m=
argin-bottom: 23px;"><hr style=3D"box-sizing: content-box; border-style: sol=
id; border-color: gray; height: 0px;"><p class=3D"" style=3D"box-sizing: bor=
der-box; margin: 0px 0px 15px; font-weight: bold;"></p></div></div><div><div=
> </div></div></div></div><div><span style=3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=
on: -webkit-letterpress;">Upcoming/Recent Updates</span><div style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392); text-decoration: -webkit-letterpress;"><br></div><div style=3D"co=
lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress;">=E2=80=A2 &nbsp;Custom=
s Bill</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=
n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=
ress;">=E2=80=A2 &nbsp;Municipal Bond Rule</div><div style=3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2); text-decoration: -webkit-letterpress;">=E2=80=A2 &nbsp;Budget Irresoluti=
on&nbsp;<br><div><br></div><div>International Tax Status &nbsp;(Feb. 11)</di=
v><div>The Fed Holds Steady &nbsp;(Feb. 10)</div><div>Obama's FY17 Budget &n=
bsp;(Feb. 9)&nbsp;<div>Tax Talk of the Town &nbsp;(Feb. 3)<br><div>Defending=
Dodd-Frank &nbsp;(Feb. 2)<br><div>Fiscal Pol: Deficit/Debt Dormancy (Jan. 2=
8)</div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">The Fe=
d Holds Rates, for Now &nbsp;(Jan. 28)</span></div><div>Debate Myths Challen=
ged &nbsp;(Jan. 25)</div><div>Regulating the Regulators &nbsp;(Jan. 21)</div=
> <div>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</div><div>HRC's Tax Poli=
cy &nbsp;(Jan. 17)<br><div>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</div>=
<div>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</div><div><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">2016 Tax Policy Issues &nbsp;(Jan. 8)</s=
pan></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">San=
ders Proposals/GS &amp; TBTF (Jan. 7)</span></div><div><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">Sanders' Fin Reg Proposals &nbsp;(Jan. 5=
)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> Year-End Review: Fiscal Policy (Jan. 1) &nbsp;</span><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">Year-End Review: Fin. Reg.&nbsp;</span><=
span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;(Dec. 29) &nb=
sp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">Omnibus R=
eview (Dec. 15)</span></div><div><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Omnibus Situation &nbsp;(Dec. 14)</span></div><div><span style=
=3D"background-color: rgba(255, 255, 255, 0);">FY 2016 Omnibus Talks (Dec. 1=
0)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);=
">Customs Bill &nbsp;(Dec. 8)</span></div><div><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">Tax Extender Negotiations &nbsp;(Dec. 6)&nbsp;<=
/span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">B=
rown on HFT &nbsp;(Dec. 4)</span></div><div><span style=3D"background-color:=
rgba(255, 255, 255, 0);">Shelby 2.0 Update &nbsp;(Dec. 3)</span></div></div=
> </div></div></div><div><span style=3D"background-color: rgba(255, 255, 255,=
0);"><br></span></div><div><span style=3D"background-color: rgba(255, 255, 2=
55, 0);"><br></span></div></div>On Feb 10, 2016, at 7:41 PM, Dana &lt;<a hre=
f=3D"mailto:[email-masked]">[email-masked]</a>&gt; wrote:<br><br=
> </div><blockquote type=3D"cite"><div><meta http-equiv=3D"content-type" cont=
ent=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><meta http-e=
quiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></sp=
an></div><div><meta http-equiv=3D"content-type" content=3D"text/html; charse=
t=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"content-type" co=
ntent=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><div><span=
style=3D"background-color: rgba(255, 255, 255, 0);">Mike &amp; Co. --</span=
> <br><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">The Chair of the Federal Reserve=
went before House Financial Services to provide a report on the nation's ec=
onomic condition, a kind of bi-annual checkup. No news was made, no firework=
s went off and no market mood swings occurred.&nbsp; As for the Fed's next m=
ove, it's wait-and-see a little while longer.&nbsp;</span></p><p class=3D"Ms=
oNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-color:=
rgba(255, 255, 255, 0);">We thought it might happen in March, signs pointed=
to it.&nbsp; Now, the guess is June (sound familiar?) &nbsp;For details, do=
n't wait, see below.</span></p><p class=3D"MsoNormal" style=3D"margin-bottom=
: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Best,=
</span><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</spa=
n></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Dana&nbsp;</span></p><p class=3D=
"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">----------</span></p><p class=3D"MsoNormal" sty=
le=3D"margin-bottom: 0.0001pt;"><b><u style=3D"background-color: rgba(255, 2=
55, 255, 0);">Economic Checkup</u></b></p><p class=3D"MsoNormal" style=3D"ma=
rgin-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255,=
0);">Fed Chair Yellen testified before House Financial Services this mornin=
g for the Federal Reserve=E2=80=99s bi-annual Monetary Policy Report.&nbsp; T=
hese appearances allow Yellen to explain the Fed=E2=80=99s, actually the Fed=
eral Open Market Committee (FOMC)=E2=80=99s, analysis and projections regard=
ing America's economic performance as well as to signal the factors underlyi=
ng its actions in the months ahead. &nbsp;<br></span></p><p class=3D"MsoNorm=
al" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-color: rgba=
(255, 255, 255, 0);">The rate change in December 2015 was the first time the=
Fed raised rates since 2006 -- some worry that even a modest increase in ra=
tes at this juncture would&nbsp;further&nbsp;slow&nbsp;already limited&nbsp;=
economic&nbsp;growth&nbsp;after years of uncertainty.</span></p><p class=3D"=
MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);"><b><u>The Basics</u></b><br></span></p><p class=3D=
"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">The bottom line: the FOMC won=E2=80=99t rollbac=
k rates in March and it=E2=80=99s not likely to raise them either.&nbsp; The=
Fed likes what it sees in the labor market, wage growth looks strong, and e=
merging market missteps continue to be a threat to the US economy but perhap=
s not an immediate one.&nbsp; The next rate move is almost certain to be an i=
ncrease but it could wait until June or later.&nbsp;</span></p><p class=3D"M=
soNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-color=
: rgba(255, 255, 255, 0);">Yellen reiterated much of the FOMC statement from=
last month: &nbsp;the labor market remains strong, but shows some signs of r=
emaining slack, that the low inflation we have seen is caused by =E2=80=9Ctr=
ansitory=E2=80=9D effects (low energy prices), and that global market uncert=
ainty creates some level of risk for slow growth at home and abroad.&nbsp; T=
hough Yellen did not make a prediction on how long these transitory market e=
ffects would last, a number of forecasts for oil prices show the dip lasting=
through 2016.</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 11pt=
;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Expanding on gl=
obal growth issues, Yellen said "These developments, if they prove persisten=
t, could weigh on the outlook for economic activity and the labor market, al=
though declines in longer-term interest rates and oil prices could provide s=
ome offset," she added: "Foreign economic developments, in particular, pose r=
isks to US economic growth."&nbsp;</span></p><p class=3D"MsoNormal" style=3D=
"margin-bottom: 11pt;"><b><u style=3D"background-color: rgba(255, 255, 255, 0=
);">Partisan Review</u></b></p><p class=3D"MsoNormal" style=3D"margin-bottom=
: 11pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">The GOP i=
s generally critical of "accommodative" (lower) Fed rates.&nbsp;&nbsp; High-=
net-worth individuals benefit the most from high rates through dividends and=
interest from savings.&nbsp;&nbsp;Low rates allow more growth for the middl=
e- and lower-classes&nbsp;at the risk of inflation,&nbsp;tacitly supporting D=
emocrats=E2=80=99 progressive fiscal policy goals.&nbsp;&nbsp;Some conservat=
ive economists have gone so far as to blame low interest rates pushed by the=
Fed in the 1990=E2=80=99s for the market meltdown in 2007, claiming that ch=
eap credit was the cause of the overheated housing market.</span></p><p clas=
s=3D"MsoNormal" style=3D"margin-bottom: 11pt;"><b><u style=3D"background-col=
or: rgba(255, 255, 255, 0);">Strong Labor Market</u></b></p><p class=3D"MsoN=
ormal" style=3D"margin-bottom: 11pt;"><span style=3D"background-color: rgba(=
255, 255, 255, 0);">Discussing the labor market in greater detail, Yellen po=
inted to the cumulative increase in employment since 2010 of 13 million jobs=
.&nbsp; The rate in January fell to 4.9 percent, 0.8 points below its level o=
ne year ago; measures of labor market conditions such as the number of peopl=
e who are working part-time but want to move to full-time positions and the n=
umber of individuals who want to work but haven=E2=80=99t searched recently a=
re also decreasing steadily.&nbsp; Regarding these broader labor market indi=
cators Yellen testified that =E2=80=9C=E2=80=A6&nbsp;these measures remain a=
bove the levels seen prior to the recession, suggesting that some slack in l=
abor markets remains. Thus, while labor market conditions have improved subs=
tantially, there is still room for further sustainable improvement."</span><=
/p><p class=3D"MsoNormal" style=3D"margin-bottom: 11pt;"><b><u style=3D"back=
ground-color: rgba(255, 255, 255, 0);">Forward Guidance</u></b></p><p class=3D=
"MsoNormal" style=3D"margin-bottom: 11pt;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">As always, Yellen was careful not to give hints on w=
hat the Fed is planning to do in future meetings; speaking on the path forwa=
rd for the Fed Funds rate Yellen said =E2=80=9COf course, monetary policy is=
by no means on a preset course. The actual path of the federal funds rate w=
ill depend on what incoming data tell us about the economic outlook, and we w=
ill regularly reassess what level of the federal funds rate is consistent wi=
th achieving and maintaining maximum employment and 2 percent inflation.=E2=80=
=9D</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 11pt;"><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">Yellen was asked about the=
chances of the FOMC rolling back the rate hike it announced in December: &n=
bsp;"I do not expect the FOMC is going to be soon in the situation where it'=
s necessary to cut rates If the FOMC delayed the start of policy normalizati=
on for too long, it might have to tighten policy relatively abruptly in the f=
uture to keep the economy from overheating and inflation from significantly o=
vershooting its objective. Such an abrupt tightening could increase the risk=
of pushing the economy into recession."&nbsp;</span></p><p class=3D"MsoNorm=
al" style=3D"margin-bottom: 11pt;"><b><u style=3D"background-color: rgba(255=
, 255, 255, 0);">Comment on Dodd-Frank</u></b></p><p class=3D"MsoNormal" sty=
le=3D"margin-bottom: 11pt;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">During the Q&amp;A portion of her testimony, Yellen was asked about=
financial regulation, both in terms of breaking up the banks and enforcing t=
he regulations brought on by Dodd-Frank.&nbsp;</span></p><p class=3D"MsoNorm=
al" style=3D"margin-bottom: 11pt;"><span style=3D"background-color: rgba(255=
, 255, 255, 0);">In response to being asked if the Fed is trying to break up=
the banks, she responded:&nbsp;"We are using our powers to make sure that a=
systemically important institution could fail, and it would not have system=
ic consequences for the country." Her answer was interesting, because she's n=
ot outright saying the banks will be broken up or reduced, just that the Fed=
is trying to ensure that even if they did fail, it wouldn't negatively effe=
ct the economy.</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 11p=
t;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Yellen was als=
o asked about the burden of new Dodd-Frank regulations on banks. She respond=
ed: "For our part, we're focused on doing everything that we conceivably can=
to minimize and reduce the burden on these banking organizations. We've bee=
n conducting an EGRPRA&nbsp;review to identify potential burdens that our re=
gulations impose." An EGRPRA review is connected to the Economic Growth and R=
egulatory Paperwork Reduction Act, which requires regulations imposed on fin=
ancial institutions to be reviewed by the agencies at least once every 10 ye=
ars. The purpose is to prevent&nbsp;burdensome&nbsp;regulations that could h=
inder a&nbsp;bank's ability to serve its customers.&nbsp;</span></p><p class=
=3D"MsoNormal" style=3D"margin-bottom: 11pt;"><b><u style=3D"background-colo=
r: rgba(255, 255, 255, 0);">The Bottom Line</u></b></p><p class=3D"MsoNormal=
" style=3D"margin-bottom: 11pt;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Fed watchers make their living by trying to predict what the FO=
MC will or won=E2=80=99t do at their meetings, and on days when Yellen is sc=
heduled to testify before Congress you can bet that they=E2=80=99re listenin=
g intently.&nbsp; While Yellen was careful not to project the Fed=E2=80=99s m=
oves, the general sentiment in the markets is that FOMC won=E2=80=99t be rai=
sing rates at its March meeting.&nbsp; The CME Group FedWatch tool, which es=
timates FOMC rate hikes based on its futures prices, predicts a 95% probabil=
ity that the Fed will maintain its current rate target in March.&nbsp; Some f=
orecasters go even further -- expecting that the funds rate won=E2=80=99t be=
raised all year.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bot=
tom: 11pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Trader=
s see the ongoing economic struggles of emerging economies, particularly in C=
hina, as evidence that the Fed won=E2=80=99t continue with its scheduled 4 r=
ate hikes this year.&nbsp; Certainly, considering the testimony today that 1=
) continued emerging market uncertainty can weigh down the US economy and 2)=
that poor performance in the US economy would cause the Fed to change cours=
e on its rate hike schedule, a link between poor emerging market performance=
and fewer Fed rate hikes seems plausible.&nbsp; Certainly the trading on Fe=
d fund futures indicates that the markets believe this is the case.</span></=
p><p class=3D"MsoNormal" style=3D"margin-bottom: 11pt;"><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">-------</span></p>Recent Updates<div><=
br></div><div>The Fed Holds Steady &nbsp;(Feb. 10)</div><div>Obama's FY17 Bu=
dget &nbsp;(Feb. 9)&nbsp;<div>Tax Talk of the Town &nbsp;(Feb. 3)<br><div>De=
fending Dodd-Frank &nbsp;(Feb. 2)<br><div>Fiscal Pol: Deficit/Debt Dormancy (=
Jan. 28)</div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span></div><div>Debate Myths C=
hallenged &nbsp;(Jan. 25)</div><div>Regulating the Regulators &nbsp;(Jan. 21=
)</div><div>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</div><div><span st=
yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">HRC's Tax Po=
licy &nbsp;(Jan. 17)</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -web=
kit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><div style=3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392);">2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);">Glass-Steagall, Take 2 &nbsp;(Jan. 13)</div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">2016 Tax Policy Issues &nbsp;(Jan. 8)</span></div><div style=3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Sanders P=
roposals/GS &amp; TBTF (Jan. 7)</span></div><div style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);">=
<span style=3D"background-color: rgba(255, 255, 255, 0);">Sanders' Fin Reg P=
roposals &nbsp;(Jan. 5)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701=
961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Year-End Review: Fiscal P=
olicy (Jan. 1) &nbsp;</span><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">Year-End Review: Fin. Reg.&nbsp;</span><span style=3D"background-co=
lor: rgba(255, 255, 255, 0);">&nbsp;(Dec. 29) &nbsp;</span><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">Omnibus Review (Dec. 15)</span></di=
v><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255=
, 255, 255, 0);">Omnibus Situation &nbsp;(Dec. 14)</span></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);=
">FY 2016 Omnibus Talks (Dec. 10)</span></div><div style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Customs Bill &n=
bsp;(Dec. 8)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">Tax Extender Negotiations &nbsp;(Dec=
. 6) o</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">Brown on HFT &nbsp;(Dec. 4)</span></div><d=
iv style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255=
, 255, 0);">Shelby 2.0 Update &nbsp;(Dec. 3)</span></div><div style=3D"color=
: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);"><br>=
</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">----</span></div><div style=3D"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
"><br></div></div></div></div></div></div><div><br></div><div>On Feb 9, 2016=
, at 7:42 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachasin@gm=
ail.com</a>&gt; wrote:<br><br></div><blockquote type=3D"cite"><div><meta htt=
p-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span><=
/span></div><div><div><span></span></div><div><meta http-equiv=3D"content-ty=
pe" content=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><met=
a http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><s=
pan></span></div><div><meta http-equiv=3D"content-type" content=3D"text/html=
; charset=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"content-=
type" content=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><m=
eta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div>=
<span></span></div><div><meta http-equiv=3D"content-type" content=3D"text/ht=
ml; charset=3Dutf-8"><div><br>Mike &amp; Co. --<br><p class=3D"MsoNormal" st=
yle=3D"margin-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Today, President Obama submitted his eighth and final budget p=
roposal to Congress.&nbsp; It tops the $4 trillion mark for the first time. &=
nbsp;&nbsp;Despite the historical tendency for lame duck presidential budget=
s to be treated as scrap paper -- this one won't even be accorded the courte=
sy of a hearing in House Budget -- there are a few noteworthy proposals and i=
nitiatives which, if nothing else, are likely to generate discussion on the H=
ill and off. &nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bottom:=
0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">That=E2=
=80=99s the real purpose of this budget -- to help frame the debate in 2016 a=
bout where America is headed what the nation's priorities should be.&nbsp; A=
number of the proposals in this budget resonate with issues and themes alre=
ady being debated.&nbsp; Candidates in particular seeking to emphasize suppo=
rt for or opposition to the President have a new set of proposals at their d=
isposal.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.00=
01pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">What is new=
and noteworthy in the White House budget and what's next for it? &nbsp;Deta=
il below.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0=
001pt;">Special thanks to those of you in NH tonight. &nbsp;Fingers crossed a=
nd stay tuned this way: &nbsp;&nbsp;<a href=3D"http://politi.co/20n5W2w">htt=
p://politi.co/20n5W2w</a>&nbsp;</p><p class=3D"MsoNormal" style=3D"margin-bo=
ttom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">B=
est,</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Dana</span></p><p cla=
ss=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">---------</span></p><p class=3D"MsoNormal"=
style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">The Obama Administration put forth a myriad of budget prop=
osals revolving around a variety of issues. &nbsp;Below are thoughts on some=
of the most significant of these from a fiscal and financial regulatory per=
spective:&nbsp;</span></p><blockquote style=3D"margin: 0px 0px 0px 40px; bor=
der: none; padding: 0px;"><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0=
001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &=
nbsp;<b><u>$10/Barrel Transportation Tax</u></b></span></p><p class=3D"MsoNo=
rmal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"background-color: rg=
ba(255, 255, 255, 0);">A perennial favorite of Democrats has made a return i=
n the Obama budget: </span><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">&nbsp;a $10.25 per barrel tax on oil, $319 billion in revenue from w=
hich will go toward funding =E2=80=9Ca 21st Century Clean Transportation Pla=
n to upgrade the nation=E2=80=99s transportation system, improve resilience a=
nd reduce emissions." &nbsp;The proposed tax is a simplified version of =E2=80=
=9Ccarbon taxation=E2=80=9D policies, which aim to tax energy producers and o=
il companies based on the level of pollution they produce; =E2=80=9Ccap and t=
rade=E2=80=9D was a similar policy idea but with more complicated implementa=
tion. &nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001=
pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">The tax will b=
e phased in over five years and levied against oil companies, with the reven=
ue to help fund clean energy initiatives like expanding high-speed rail syst=
ems and also to increase national infrastructure spending.&nbsp; The appeal o=
f this flat-tax on oil is its simplicity =E2=80=93- there is nothing complic=
ated about charging oil companies $10.25 per barrel of oil, meaning there=E2=
=80=99s no way for them to shirk the charge.&nbsp;</span></p><span class=3D"=
im" style=3D"background-color: rgba(255, 255, 255, 0);"><p class=3D"MsoNorma=
l" style=3D"margin-bottom: 0.0001pt;">Supporting the tax would lend candidat=
es some environmental bonafides, but might be seen as a backdoor &nbsp;tax<s=
pan style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;on the middle-=
class. Though paid for by oil companies, the &nbsp;price is expected to be p=
assed along to consumers through higher prices.&nbsp; The tax is expected to=
increase the price of gasoline by 25 cents per gallon.</span></p></span><p c=
lass=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;<b><u>Funding Fin. Reg. L=
ike it Matters</u></b>&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margi=
n-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">Obama proposes to double the budget for Wall Street regulators SEC and CFT=
C over ten years, beginning with an 11 percent increase for SEC and 32 perce=
nt for CFTC in 2017.&nbsp;&nbsp;Clinton has a lot to like in this particular=
section =E2=80=93 she=E2=80=99s the only candidate who has defended Dodd-Fra=
nk and is campaigning on proposals to strengthen current regulations, includ=
ing through greater budgets for&nbsp;regulatory agencies.&nbsp; Leaders for b=
oth regulators have complained that their responsibilities far outstrip thei=
r budget.&nbsp;</span></p><span style=3D"background-color: rgba(255, 255, 25=
5, 0);"><span class=3D"im"><p class=3D"MsoNormal" style=3D"margin-bottom: 0.=
0001pt;">The proposal is more realistic than the oil tax, although not neces=
sarily something that will definitely be enacted. &nbsp;The SEC has called f=
or increased funding recently.&nbsp; SEC chairman Mary Jo White asked at a H=
ouse Financial Services Committee hearing in November for $1.8 billion in fu=
nding for fiscal 2017. &nbsp;In a time when Republicans are looking to reduc=
e regulatory burdens against banks, an increase in regulators=E2=80=99 budge=
ts highlights the difference in priorities on Wall Street.&nbsp;</p></span><=
span class=3D"im"><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;">=
=E2=80=A2 &nbsp;<b><u>Boosting R and D</u></b></p></span><span class=3D"im">=
<p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;">The budget increas=
es R&amp;D funding by four percent for a total of $152 billion in 2017; amon=
g changes are a doubling of clean energy research and funding a $1 billion c=
ancer =E2=80=9CMoonshot=E2=80=9D research program aimed at eliminating the d=
isease.&nbsp;</p></span><span class=3D"im"><p class=3D"MsoNormal" style=3D"m=
argin-bottom: 0.0001pt;">=E2=80=A2 &nbsp;&nbsp;<b><u>Apprenticeship Training=
Fund</u></b></p></span><span class=3D"im"><p class=3D"MsoNormal" style=3D"m=
argin-bottom: 0.0001pt;">The budget establishes a $2 billion mandatory Appre=
nticeship Training Fund =E2=80=93 meant to double the number of apprenticesh=
ips across the United States.&nbsp; Only HRC has talked about the need for i=
ncreasing the number of apprenticeships in the country during the election, f=
avoring a tax-credit policy rather than direct funding.&nbsp;</p></span></sp=
an></blockquote><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><b=
> <u style=3D"background-color: rgba(255, 255, 255, 0);">Congressional Prospe=
cts</u></b></p><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Obama=E2=80=99s propo=
sal is not only a prelude to battle.&nbsp; Lawmakers and the administration w=
ill have to strike some sort of deal to keep the government running when the=
current fiscal year ends&nbsp;<a></a><a href=3D"x-apple-data-detectors://9"=
x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-eve=
nt" x-apple-data-detectors-result=3D"9">on&nbsp;</a><span class=3D"" tabinde=
x=3D"0"><span class=3D""><a href=3D"x-apple-data-detectors://9" x-apple-data=
-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-d=
ata-detectors-result=3D"9">Sept. 30</a></span></span>&nbsp;=E2=80=94 most li=
kely a continuing resolution to keep the lights on through the election and e=
arly into 2017.&nbsp; In a sign that Obama isn=E2=80=99t looking for a knock=
-down spending fight this year, the president=E2=80=99s proposal abides by t=
he discretionary caps for fiscal 2017 set by last year=E2=80=99s bipartisan b=
udget deal.&nbsp;</span></p><span class=3D"im" style=3D"background-color: rg=
ba(255, 255, 255, 0);"><p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001=
pt;">Congressional leadership may have a fight on its hands even without Oba=
ma making waves =E2=80=93 if the Freedom Caucus membership decides to make i=
ts displeasure on the budget known then it could cause rancor amongst the GO=
P.&nbsp; In a year when the party is desperate to project an image of capabl=
e leadership, in part by passing a complete budget for the first time since 1=
997, a blow-up between Ryan and the back-benchers would amount to nothing le=
ss than catastrophe.</p></span><p class=3D"MsoNormal" style=3D"margin-bottom=
: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">At a m=
ore granular level, Obama=E2=80=99s blueprint is a grab-bag of Democratic pr=
iorities.&nbsp; The administration is once again calling for expanding early=
education in his 2017 budget, asking for more pre-K grants, a child care ex=
pansion and a small boost to Head Start.&nbsp; The budget boosts spending fo=
r Obamacare Medicaid expansion by $2.6 billion over a decade, designed to be=
an enticement to the 19 holdout states that have yet to take effect.</span>=
</p><div><p class=3D"MsoNormal"><b><u style=3D"background-color: rgba(255, 2=
55, 255, 0);">Republicans and the Budget</u></b></p></div><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">The Republicans have a different=
plan for the budget this year, naturally.&nbsp; Speaker Ryan has stated tha=
t he intends to pass the budget and all 12 appropriations through the house -=
- a feat that hasn't been accomplished in two decades.</span></div><div><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div><div>=
<span style=3D"background-color: rgba(255, 255, 255, 0);">The Republicans ha=
ve a different plan for the budget this year, naturally.&nbsp; Speaker Ryan h=
as stated that he intends to pass the budget and all 12 appropriations throu=
gh the house - a feat that hasn't been accomplished since 1997.&nbsp; Althou=
gh Ryan and the GOP House leadership hope to gain the faith of the American p=
eople back by bringing about the return of regular order, they face a tight c=
alendar and the political implications of an election year -- not to mention=
internal opposition<b>&nbsp;</b>in the form of the Freedom Caucus.&nbsp; Sh=
ould the back-benchers feel their concerns aren=E2=80=99t being adequately a=
ddressed, they may try to disrupt the passage of appropriations bills. &nbsp=
;The care and feeding of these members on budget matters may be turn out to b=
e one of the toughest challenges Ryan will face this year.</span></div><div>=
<span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div><=
div>-----------------</div><br></div><div><span style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpress;">Recent Updates</span><div style=3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress;"><br></div><div style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;">Obama's FY17 Budge=
t &nbsp;(Feb. 9)&nbsp;<div>Tax Talk of the Town &nbsp;(Feb. 3)<br><div>Defen=
ding Dodd-Frank &nbsp;(Feb. 2)<br><div>Fiscal Pol: Deficit/Debt Dormancy (Ja=
n. 28)</div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">T=
he Fed Holds Rates, for Now &nbsp;(Jan. 28)</span></div><div>Debate Myths Ch=
allenged &nbsp;(Jan. 25)</div><div>Regulating the Regulators &nbsp;(Jan. 21)=
</div><div>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</div><div>HRC's Tax=
Policy &nbsp;(Jan. 17)<br><div>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)<=
/div><div>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</div><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">2016 Tax Policy Issues &nbsp;(Jan. 8=
)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> Sanders Proposals/GS &amp; TBTF (Jan. 7)</span></div><div><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">Sanders' Fin Reg Proposals &nbsp;(J=
an. 5)</span></div><div><span style=3D"background-color: rgba(255, 255, 255,=
0);">Year-End Review: Fiscal Policy (Jan. 1) &nbsp;</span><span style=3D"ba=
ckground-color: rgba(255, 255, 255, 0);">Year-End Review: Fin. Reg.&nbsp;</s=
pan><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;(Dec. 29=
) &nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">Omn=
ibus Review (Dec. 15)</span></div><div><span style=3D"background-color: rgba=
(255, 255, 255, 0);">Omnibus Situation &nbsp;(Dec. 14)</span></div><div><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">FY 2016 Omnibus Talks (=
Dec. 10)</span></div><div><span style=3D"background-color: rgba(255, 255, 25=
5, 0);">Customs Bill &nbsp;(Dec. 8)</span></div><div><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">Tax Extender Negotiations &nbsp;(Dec. 6) o=
</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">=
Brown on HFT &nbsp;(Dec. 4)</span></div><div><span style=3D"background-color=
: rgba(255, 255, 255, 0);">Shelby 2.0 Update &nbsp;(Dec. 3)</span></div></di=
v></div></div></div></div><div><br>On Feb 3, 2016, at 7:09 PM, Dana &lt;<a h=
ref=3D"mailto:[email-masked]">[email-masked]</a>&gt; wrote:<br><=
br></div><blockquote type=3D"cite"><div><meta http-equiv=3D"content-type" co=
ntent=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><meta http=
-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></=
span></div><div><meta http-equiv=3D"content-type" content=3D"text/html; char=
set=3Dutf-8"><div><span style=3D"-webkit-text-size-adjust: auto; background-=
color: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-compo=
sition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-le=
tterpress;">Mike &amp; Co. --</span><br><p style=3D"color: rgba(0, 0, 0, 0.7=
01961); text-decoration: -webkit-letterpress; -webkit-text-size-adjust: auto=
; box-sizing: border-box; margin: 0px;"><span style=3D"background-color: rgb=
a(255, 255, 255, 0);"><br></span></p><p style=3D"color: rgba(0, 0, 0, 0.7019=
61); text-decoration: -webkit-letterpress; -webkit-text-size-adjust: auto; b=
ox-sizing: border-box; margin: 0px;"><span style=3D"background-color: rgba(2=
55, 255, 255, 0);">Upbeat tax talk is as common this time of year as predict=
ions that this year the Cubs will win the World Series this fall. &nbsp;The w=
ord is that Messrs. Ryan and McConnell want to run a smooth, efficient, mayb=
e even a productive ship this year on the theory that voters will reward the=
GOP in November and that they will forget the record of the last seven year=
s. &nbsp;The Speaker and the President have had a recent meeting and mini-me=
eting of the minds on taxes.</span><span style=3D"background-color: rgba(255=
, 255, 255, 0);">&nbsp; That might create the right climate for passage of b=
road tax reform.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=
0392); text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;"><span=
style=3D"background-color: rgba(255, 255, 255, 0);">But really the gravitat=
ional pull is not toward gravitas, but away from the center, away from the H=
ill itself. &nbsp;The GOP presidential nominee might very well have to run a=
gainst any bipartisan ("Washington") compromise on tax policy, making for an=
embarrassing intraparty policy conflict at the time the leadership most nee=
ds to project unity.<br><br>Amid the turbulence of the broader campaign, whe=
re do the various tax discussions in the Hill stand, what bills night come u=
p for votes, is there anything that might pass?</span></p><p class=3D"MsoNor=
mal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=
-bottom: 0.0001pt;">Best,</p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;">Dana</p><p=
class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=
terpress; margin-bottom: 0.0001pt;">________________________________</p><p c=
lass=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=
rpress; margin-bottom: 0.0001pt;"><b><u style=3D"background-color: rgba(255,=
255, 255, 0);">Forms of Reform under Discussion</u></b></p><p class=3D"MsoN=
ormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; marg=
in-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0=
);"><b>=E2=80=A2 Comprehensive</b>&nbsp;-- Defined as involving a bipartisan=
trade-off between lowering taxes and broadening the base; closing exemption=
s, deductions, credits, etc.&nbsp; Both Democratic candidates have outlined p=
lans to reduce loopholes, such as the "Romney loophole" and the "Bermuda loo=
phole," which allow very rich Americans to avoid paying their fair share.&nb=
sp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961)=
; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorat=
ion: -webkit-letterpress; margin-bottom: 0.0001pt;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">=E2=80=A2&nbsp;<b>Corporate --</b>&nbsp;Ma=
ny of the issues with the corporate tax system could be addressed through in=
ternational tax reform, because so many companies earn capital abroad. Howev=
er, corporate tax reform at home deals with issues like taxing dividends and=
leveling the playing field between small and large businesses.&nbsp;</span>=
</p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=
composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=
it-letterpress; margin-bottom: 0.0001pt;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">=E2=80=A2&nbsp;<b>International&nbsp;</b>- Deals wit=
h foreign earnings of American firms abroad. Specifically, current internati=
onal tax reform aims at preventing inversions and coming up with a more succ=
essful way to tax foreign capital earned by American companies, as well as f=
inding ways to encourage companies to move profits home from abroad.</span><=
/p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=
t-letterpress; margin-bottom: 0.0001pt;"><b><u style=3D"background-color: rg=
ba(255, 255, 255, 0);">Forums for Tax Reform</u></b></p><p class=3D"MsoNorma=
l" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bo=
ttom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><=
b>=E2=80=A2 Ways &amp; Means: &nbsp;</b>Kevin Brady became Chair of the Comm=
ittee in November 2015. He reportedly hopes to have an international tax ref=
orm proposal out of Ways and Means this year. &nbsp;He says he wants to allo=
w American companies to bring their foreign profits back and invest at home a=
nd to lower the corporate tax rate to less than 20 percent.</span></p><p cla=
ss=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=
n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=
ress; margin-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Brady gave the opening statement at a hearing on =E2=80=9CReac=
hing America=E2=80=99s Potential.=E2=80=9D &nbsp; For what it's worth, he la=
id out six goals for his committee in the coming months -- and they are ambi=
tious:</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.7019=
61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-deco=
ration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);"><br></span></p><p class=3D"MsoNo=
rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=
n: 0in 0in 0.0001pt 47.25pt;"><span style=3D"background-color: rgba(255, 255=
, 255, 0);">=C2=B7&nbsp;<i>Tax reforms to&nbsp;boost investment and job crea=
tion;</i></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.7=
01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=
ecoration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">=C2=B7&nbsp;<i>Welfare refo=
rms to&nbsp;help more people join the workforce and achieve the American dre=
am.</i></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701=
961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=
oration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"><span style=
=3D"background-color: rgba(255, 255, 255, 0);">=C2=B7&nbsp;<i>Health reforms=
to truly make health care more affordable and accessible;&nbsp;</i></span><=
/p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=
t-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"><span style=3D"background-=
color: rgba(255, 255, 255, 0);">=C2=B7&nbsp;<i>Trade expansion&nbsp;to&nbsp;=
open&nbsp;more foreign&nbsp;markets to American&nbsp;goods and services;</i>=
</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">=C2=B7&nbsp;<i>Entitlement reforms t=
o strengthen Medicare and Social Security for the long haul and;&nbsp;&nbsp;=
</i></span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961=
); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=
tion: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">=C2=B7&nbsp;<i>Government reform=
s to boost&nbsp;efficiency&nbsp;and&nbsp;effectiveness instead of stifling j=
obs and higher wages.</i></span></p><p class=3D"MsoNormal" style=3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.=
25pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</spa=
n></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=
bkit-letterpress; margin-bottom: 0.0001pt;"><span style=3D"background-color:=
rgba(255, 255, 255, 0);">Brady=E2=80=99s statement that tax reform will com=
e up in the coming weeks, coupled with Ryan=E2=80=99s recent visit with Obam=
a (specifically to find areas of cooperation), may indicate a broad-based re=
form package making its way forward in 2016.&nbsp; Another interesting bulle=
t point is trade expansion, despite McConnell=E2=80=99s promise that TPP won=
=E2=80=99t be voted on before November.&nbsp;</span></p><p class=3D"MsoNorma=
l" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bo=
ttom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">&=
nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=
=A2&nbsp;</span><b style=3D"background-color: rgba(255, 255, 255, 0);">Senat=
e Finance:</b><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbs=
p; &nbsp;The Senate Finance Committee has its focus set on bipartisan workin=
g groups designed to produce tax reform on multiple levels -- individual, co=
rporate, and international. However, there have been many challenges and sta=
lemates along the way because of the stringent partisanship currently ailing=
the Senate.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;"><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);">This election has been defin=
ed, more so than others, by the massively diverse set of tax policies propos=
ed by each candidates =E2=80=93 from flat taxes, capital gains reforms, fina=
ncial transaction taxes and more.&nbsp; Sen. Hatch, Chair of Finance, has al=
ready called for reform efforts in 2016, targeting international corporate r=
ates specifically =E2=80=93 but it=E2=80=99s possible that Brady is trying t=
o shift him and others toward more ambitious proposals. &nbsp;Any high profi=
le move Ryan makes here will likely be a controlling factor on tax policy. &=
nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.70196=
1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decor=
ation: -webkit-letterpress; margin-bottom: 0.0001pt;"><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);"><b>=E2=80=A2&nbsp;Between the Branches -=
-&nbsp;</b>Speaker Ryan and Pres. Obama met yesterday to discuss a variety o=
f issues, one of which was related to the Earned Income Tax Credit. &nbsp;Bo=
th hope to expand the credit to include low-earning workers who DON'T have c=
hildren. &nbsp;It's unclear how successful their cooperation will be, but at=
the very least, they share a common goal.&nbsp;</span></p><p class=3D"MsoNo=
rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=
n-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">Politico portrayed the meeting as campaign kabuki: =E2=80=9CRather than c=
ut any deals with Obama, Ryan=E2=80=99s hoping to spend 2016 developing what=
he=E2=80=99s calling a detailed GOP agenda on poverty, taxes, health care a=
nd other issues he=E2=80=99s hoping will factor into the presidential campai=
gn and provide a blueprint for House Republicans as they grapple with a new p=
resident next year.=E2=80=9D&nbsp; It=E2=80=99s not surprising to see this g=
iven the pressure this election will put on the new Speaker. &nbsp;He needs t=
o set a strong foundation for his own future, and helping Obama score a tax t=
ouchdown on him is not on the top of his list of objectives. &nbsp;</span></=
p><p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=
: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">&nbsp;</span></p><p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=
etterpress; margin: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba=
(255, 255, 255, 0);">During a statement before he met with Obama, Ryan said =E2=
=80=9CWe will take our conservative principles and we will apply those conse=
rvative principles to the problems of the day to offer our fellow citizens s=
olutions to the problems in their daily lives =E2=80=A6. These are not going=
to be things that we will be able to accomplish with this president still i=
n the White House. It is an agenda for what we will do next year with a Repu=
blican president to get our country back on track. This is what 2016=E2=80=99=
s all about. It=E2=80=99s going to be a year of ideas.=E2=80=9D</span></p><p=
style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0i=
n 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">&=
nbsp;</span></p><p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=
rpress; margin: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255=
, 255, 255, 0);"><b><u>Political Realities</u></b><b><u></u></b></span></p><=
p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 6=
pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">William G=
ale and Aaron Krupkin, researchers at Brookings, recently wrote a paper titl=
ed =E2=80=9CMajor Tax Issues in 2016;=E2=80=9D Keeping in mind both the curr=
ent political climate and the probable environment for legislation in 2016, t=
he two researchers write that =E2=80=9CComprehensive tax reform is easy to t=
alk about, but hard to do. The pursuit of sweeping tax simplification is a n=
oble goal, but quixotic.=E2=80=9D &nbsp;</span></p><p class=3D"MsoNormal" st=
yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bottom=
: 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">At th=
e end of the day 2016 is an election year and any legislative proposals that=
come forward during it will reflect that.&nbsp; There are many exciting pos=
sibilities for tax reform in 2016, but there is also no reason to think that=
the political gridlock that has defined Washington for so long will ease up=
enough while both parties vie for control of the country by drawing contest=
s.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=
coration: -webkit-letterpress; margin-bottom: 0.0001pt;">----------------</p=
> <p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=
letterpress; margin-bottom: 0.0001pt;">Recent Updates</p><div><br></div><div=
> Tax Talk of the Town &nbsp;(Feb. 3)<br><div>Defending Dodd-Frank &nbsp;(Feb=
. 2)<br><div>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</div><div><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);">The Fed Holds Rates, for No=
w &nbsp;(Jan. 28)</span></div><div>Debate Myths Challenged &nbsp;(Jan. 25)</=
div><div>Regulating the Regulators &nbsp;(Jan. 21)</div><div>Sanders' Tax/He=
althcare Policy &nbsp;(Jan 20)</div><div><span style=3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=
xt-decoration: -webkit-letterpress;">HRC's Tax Policy &nbsp;(Jan. 17)</span>=
<br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392);"><div style=3D"color: rgba(0, 0, 0, 0.701961)=
; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);">2016 Tax Ag=
enda on the Hill &nbsp;(Jan. 16)</div><div style=3D"color: rgba(0, 0, 0, 0.7=
01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);">Glass=
-Steagall, Take 2 &nbsp;(Jan. 13)</div><div style=3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">2016 Tax Policy Issues=
&nbsp;(Jan. 8)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"=
background-color: rgba(255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (=
Jan. 7)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=
mposition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">Sanders' Fin Reg Proposals &nbsp;(Jan. 5)=
</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">Year-End Review: Fiscal Policy (Jan. 1) &nbsp;</=
span><span style=3D"background-color: rgba(255, 255, 255, 0);">Year-End Revi=
ew: Fin. Reg.&nbsp;</span><span style=3D"background-color: rgba(255, 255, 25=
5, 0);">&nbsp;(Dec. 29) &nbsp;</span><span style=3D"background-color: rgba(2=
55, 255, 255, 0);">Omnibus Review (Dec. 15)</span></div><div style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Omnibu=
s Situation &nbsp;(Dec. 14)</span></div><div style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">FY 2016 Omnibus Talks=
(Dec. 10)</span></div><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit=
-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">Customs Bill &nbsp;(Dec. 8)</span></di=
v><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255=
, 255, 255, 0);">Tax Extender Negotiations &nbsp;(Dec. 6) o</span></div><div=
style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255,=
255, 0);">Brown on HFT &nbsp;(Dec. 4)</span></div><div style=3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=
0392);"><span style=3D"background-color: rgba(255, 255, 255, 0);">Shelby 2.0=
Update &nbsp;(Dec. 3)</span></div><div style=3D"color: rgba(0, 0, 0, 0.7019=
61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);"><br></span></div><div styl=
e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=
0, 98, 83, 0.0980392);"><span style=3D"background-color: rgba(255, 255, 255,=
0);">----</span></div></div></div></div><br></div><div><br>On Feb 2, 2016, a=
t 11:59 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachasin@gmai=
l.com</a>&gt; wrote:<br><br></div><blockquote type=3D"cite"><div><meta http-=
equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></s=
pan></div><div><meta http-equiv=3D"content-type" content=3D"text/html; chars=
et=3Dutf-8"><div><span style=3D"background-color: rgba(255, 255, 255, 0); co=
lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392);">Mike &amp; Co. --</span><br><p class=3D"MsoNormal" style=3D"=
color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98=
, 83, 0.0980392); margin-bottom: 0.0001pt;">Congratulations, team. &nbsp;<sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Last night's narrow&n=
bsp;win in Iowa&nbsp;</span>provided a big moral victory and took some of th=
e win out of the challenger's sails. &nbsp;It also means<span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">&nbsp;that, for at least several weeks=
, the Democratic nomination contest will continue apace. &nbsp;And it is lik=
ely that Wall Street regulation will likely remain one the &nbsp;campaign's c=
entral issues. &nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392); margin-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">At the heart of this debate is the Dodd-Frank Act (DFA). &nbsp=
; Public opinion is still influenced in the main by memories of the 2008 fin=
ancial crisis and the recession that followed, so the candidates' views on D=
FA get special attention.&nbsp;&nbsp;</span></p><p class=3D"MsoNormal" style=
=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"><span style=3D"background-co=
lor: rgba(255, 255, 255, 0);">Below, we re-examine these views and try to cl=
ear up the misconceptions that make it hard for&nbsp;</span><span style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">voters to identify the candidate b=
est able to defend the protections that&nbsp;</span><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">DFA provides millions of American consumer=
s, investors, and workers.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"c=
olor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=
83, 0.0980392); margin-bottom: 0.0001pt;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Best,</span></p><p class=3D"MsoNormal" style=3D"colo=
r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=
, 0.0980392); margin-bottom: 0.0001pt;"><span style=3D"background-color: rgb=
a(255, 255, 255, 0);">Dana</span></p><p class=3D"MsoNormal" style=3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); margin-bottom: 0.0001pt;"><span style=3D"background-color: rgba(25=
5, 255, 255, 0);">-----------------</span></p><p class=3D"MsoNormal" style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); margin-bottom: 0.0001pt;"><span style=3D"background-color=
: rgba(255, 255, 255, 0);">The assertion that DFA doesn=E2=80=99t do enough t=
o rein in Wall Street has become some sort of progressive shibboleth that as=
misleading as it is short-sighted and self-defeating. &nbsp;&nbsp;</span></=
p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=
mposition-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;=
"><span style=3D"background-color: rgba(255, 255, 255, 0);">Polling shows th=
e American public believes strong financial regulation is critically needed (=
74 percent of Democrats, 56 percent Independents, 46 percent Republicans, 64=
percent all voters). &nbsp;</span><span style=3D"background-color: rgba(255=
, 255, 255, 0);">Polling has also shown that 66 percent of Americans are eit=
her =E2=80=9Cnot very familiar=E2=80=9D with or have =E2=80=9Cnever heard of=
=E2=80=9D Dodd-Frank. &nbsp;It&nbsp;is difficult for reasonable dialogue to b=
e conducted in an environment made up of strong support for regulatory refor=
m on one hand and a lack of knowledge of what is in DFA on the other.</span>=
</p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=
composition-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001p=
t;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Any public deb=
ate on DFA is hampered by the complexity of the issues involved. &nbsp;Addit=
ionally, there is a perception that it has failed in its objectives. &nbsp;B=
</span><span style=3D"background-color: rgba(255, 255, 255, 0);">eyond the f=
act that the law isn=E2=80=99t even fully implemented, major financial insti=
tutions have already begun restructuring</span><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">&nbsp;in ways that indicate the law is working p=
roperly.&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">&nbsp; But how many voters know this?</span></p><p class=3D"MsoNormal" st=
yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"><b><u style=3D"background=
-color: rgba(255, 255, 255, 0);">Has Dodd-Frank Worked?</u></b></p><p class=3D=
"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"><span style=
=3D"background-color: rgba(255, 255, 255, 0);">The Great Recession and the r=
esulting Dodd-Frank Act changed the trajectory of the financial industry. &n=
bsp;The law isn't perfect but it is having a stabilizing effect. &nbsp;Some o=
f the biggest firms on Wall Street -- MetLife, CitiGroup, General Electric -=
- have shrunk since the law was enacted and as a direct result of its regula=
tions. &nbsp;Those that haven't shrunk are under even more pressure to break=
up or reduce their size now than they were before Dodd-Frank.</span></p><p c=
lass=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">The candidates are spl=
it concerning whether or not DFA is an full and sufficient model for regulat=
ing financial markets. &nbsp;While HRC wants to preserve and protect the pro=
gress made by DFA while bolstering certain parts of the law, while Sanders c=
onsiders the law to be well intentioned yet deeply flawed.&nbsp; However, qu=
estions should be raised about judging the DFA=E2=80=99s efficacy right now -=
each candidate is forming an opinion on the act despite the fact that DFA h=
asn=E2=80=99t even reached maturity yet - only about 70 percent of DFA provi=
sions have been implemented.&nbsp;&nbsp;Beyond the implementation gap is the=
issue that the results of financial reform cannot be seen overnight.&nbsp; A=
piece of legislation as large and multifaceted as Dodd-Frank might take a d=
ecade to ripen.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392); margin-bottom: 0.0001pt;"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">Even as the greatest effects of DFA remain to be see, recent e=
vents indicate that DFA is working as it was intended to.&nbsp; Any candidat=
e who claims that DFA is in need of major overhaul needs to answer this ques=
tion: What pressing need is there to overturn a law that has, to this point,=
largely accomplished its overarching objectives?</span><span style=3D"backg=
round-color: rgba(255, 255, 255, 0);">&nbsp;</span></p><p class=3D"MsoNormal=
" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"><b><u style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);">2016 Candidates and Dodd-Frank</u></b><=
/p><p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt=
;"><span style=3D"background-color: rgba(255, 255, 255, 0);">The candidates i=
n this year's primaries have given voters two choices: stick with Dodd-Frank=
and add some tweaks or repeal it/change it fundamentally. There is only one=
candidate in the former group - HRC. Every other candidate, including Berni=
e Sanders, intends to greatly change Dodd-Frank, or get rid of it all togeth=
er, if elected. With that choice in mind, it is necessary to remember how mo=
numental Dodd-Frank was and the political climate that it was passed in - on=
e with a Democratic majority in both houses. &nbsp;</span><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">&nbsp;</span></p><p class=3D"MsoNorm=
al" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"><span style=3D"back=
ground-color: rgba(255, 255, 255, 0);">DFA enjoyed widespread support in the=
years immediately following its passage;&nbsp;Clinton needs to ring the ala=
rm bells that her opponents intend to kill off an effective tool for regulat=
ing Wall Street for the sake of trying out unproven strategies that are buil=
t more on ideology than policy.&nbsp;</span><span style=3D"background-color:=
rgba(255, 255, 255, 0);">&nbsp;</span></p><p class=3D"MsoNormal" style=3D"c=
olor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=
83, 0.0980392); margin-bottom: 0.0001pt;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Obviously, most Republican candidates would prefer t=
o do away with Dodd-Frank completely as it is greatly disliked by their bigg=
est supporters. Bernie Sanders proposes something similar to Glass-Steagall,=
but also wants to create a list of the banks that are "too-big-too-fail" an=
d "break them up." He outlined his intentions in legislation he proposed to C=
ongress back in May 2015. Bloomberg Politics notes, "Similar to legislation h=
e introduced in previous years, when Democrats controlled the U.S. Senate, t=
he bill has little chance of advancing." &nbsp;</span></p><p class=3D"MsoNor=
mal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">So voters can decide on strengthenin=
g a law that is already working to reign in Wall Street's risks or abandonin=
g it for either less regulation or poorly aimed regulations. Considering the=
historical record of these other reform ideas, how can voters be expected t=
o take those suggestions seriously?</span></p><br></div><div><br>On Jan 28, 2=
016, at 8:19 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachasin=
@gmail.com</a>&gt; wrote:<br><br></div><blockquote type=3D"cite"><div><meta h=
ttp-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span=
> </span></div><div><meta http-equiv=3D"content-type" content=3D"text/html; c=
harset=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"content-typ=
e" content=3D"text/html; charset=3Dutf-8"><div><span></span></div><div><meta=
http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);">Mike &amp; Co. --</sp=
an><br><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span>=
<p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D=
"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);">Ordina=
rily this time of year, you would perhaps start to spot leaks or hear scuttl=
ebutt about the president's spending plans for the next fiscal year, in anti=
cipation of the statutory February White House budget rollout. &nbsp;No one n=
oticed when the administration announced it would miss next week's legal bud=
get submission deadline. &nbsp;</span></p><p dir=3D"ltr" style=3D"margin-top=
: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; backgro=
und-color: rgba(255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"m=
argin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline=
; background-color: rgba(255, 255, 255, 0);">With FY17 toplines set in the o=
mnibus bill passed last month, you may hear little in the Beltway about the b=
udget anytime soon (although the Chair did announce plans yesterday to intro=
duce a budget resolution this year, to the surprise of many, including Major=
ity Leader McConnell). &nbsp;</span></p><p dir=3D"ltr" style=3D"margin-top: 0=
pt; margin-bottom: 0pt;"><span style=3D"background-color: rgba(255, 255, 255=
, 0);"><br></span></p><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom=
: 0pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Even on th=
e campaign trail in the Granite State, with its famously flinty tax-o-phobes=
, nary a word is heard about the debt, let alone defaulting it, not this yea=
r. &nbsp;</span></p><span style=3D"background-color: rgba(255, 255, 255, 0);=
"><br></span><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><=
span style=3D"vertical-align: baseline; background-color: rgba(255, 255, 255=
, 0);">The federal budget, deficits, and the debt have not yet gotten much a=
ir play yet this campaign. &nbsp;But if we lifted up the car hood, what woul=
d we see?&nbsp; What is our medium-long term fiscal outlook, what would the i=
mpact on it of the candidates' proposals be, and what fiscal issues are most=
likely to arise in the primary debate?</span></p><span style=3D"background-=
color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D"margin-to=
p: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; backgr=
ound-color: rgba(255, 255, 255, 0);">Best,</span></p><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D"margin=
-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; bac=
kground-color: rgba(255, 255, 255, 0);">Dana</span></p><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D"marg=
in-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; b=
ackground-color: rgba(255, 255, 255, 0);">--------------</span></p><span sty=
le=3D"background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" s=
tyle=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-weight: 70=
0; text-decoration: underline; vertical-align: baseline; background-color: r=
gba(255, 255, 255, 0);">CBO 10-year Deficit Projections</span></p><p dir=3D"=
ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-weig=
ht: 700; text-decoration: underline; vertical-align: baseline; background-co=
lor: rgba(255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"margin-=
top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; back=
ground-color: rgba(255, 255, 255, 0);">The CBO reported last week that it ex=
pects the annual deficit to grow from its current $450 billion to $1.3 trill=
ion by 2016. Candidates issuing calls for increased spending, against this b=
ackdrop, may be called to account. &nbsp;</span></p><p dir=3D"ltr" style=3D"=
margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baselin=
e; background-color: rgba(255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" s=
tyle=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align:=
baseline; background-color: rgba(255, 255, 255, 0);">Perhaps in recognition=
of this, both HRC and Sen. Sanders have recently and admirably detailed how=
they would use executive actions to enact parts of their revenue packages w=
ithout Congressional support. &nbsp;</span><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Both have proposed extensive new spending plans as p=
art of their primary platform. however, it may be time for the candidates to=
get serious about the fiscal viability of these plans from a fiscal perspec=
tive.</span></p><span style=3D"background-color: rgba(255, 255, 255, 0);"><b=
r></span><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span=
style=3D"font-weight: 700; text-decoration: underline; vertical-align: base=
line; background-color: rgba(255, 255, 255, 0);">Clinton -- Fiscal Stimulus?=
</span></p><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></s=
pan><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span styl=
e=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);">HR=
C has proposed a tax package that will raise federal revenue by $500 billion=
over ten years, to be used for a $350 billion =E2=80=9CCollege Compact=E2=80=
=9D plan, for tax deductions on health care spending, and to fund an ambitio=
us infrastructure investment package. &nbsp;</span><span style=3D"background=
-color: rgba(255, 255, 255, 0);">Her spending plans are split between those w=
hich provide short-term economic stimulus and those which are aimed at provi=
ding longer-term boost.&nbsp; Her $250 billion plan to increase infrastructu=
re investment in the country =E2=80=93 paid for by reviving the =E2=80=9CBui=
ld America Bonds=E2=80=9D program and federal revenue -- &nbsp;works on two f=
ronts.</span></p><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt=
;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></p>=
<p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">First, hiring middle-class worke=
rs in construction, engineering, and the trades the plan puts more money int=
o the hands of people who tend to spend that money quickly.&nbsp; Second, im=
proving roads, bridges, and tunnels in America the plan will make future tra=
nsport of goods more reliable, speedy, and safe, all calculated to spur econ=
omic growth.&nbsp;</span></p><span style=3D"background-color: rgba(255, 255,=
255, 0);"><br></span><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom=
: 0pt;"><span style=3D"vertical-align: baseline; background-color: rgba(255,=
255, 255, 0);">The =E2=80=9CCollege Compact=E2=80=9D aims to forgive studen=
t loans, lower college tuition, and make community colleges tuition-free. &n=
bsp;By removing the burden of debt from young graduates, HRC hopes to free t=
hose people up to begin consuming at a higher rate.&nbsp; The current home-o=
wnership rate for young Americans is distressingly low largely due to their d=
ebt burden after college, HRC would rather young Americans take debt on in a=
n equity-building purchase than spend thirty years repaying their college de=
gree. &nbsp;</span></p><span style=3D"background-color: rgba(255, 255, 255, 0=
);"><br></span><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"=
> <span style=3D"font-weight: 700; text-decoration: underline; vertical-align=
: baseline; background-color: rgba(255, 255, 255, 0);">The Sanders Health Ca=
re Tax Bill</span></p><span style=3D"background-color: rgba(255, 255, 255, 0=
);"><br></span><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"=
> <span style=3D"vertical-align: baseline; background-color: rgba(255, 255, 2=
55, 0);">Sanders=E2=80=99 $14 trillion spending plan, his =E2=80=9CMedicare f=
or All=E2=80=9D proposal, would require the single largest tax hike in the n=
ation=E2=80=99s history, bringing taxes on the wealthy to levels not seen si=
nce Reagan.&nbsp; These taxes, the size of which already makes them non-star=
ters even among Democrats in Congress, are to be used to enact single-payer h=
ealthcare legislation =E2=80=93 legislation which didn=E2=80=99t even get a v=
ote during a Democratic majority in Obama=E2=80=99s first term. </span></p><=
span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D=
"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical=
-align: baseline; background-color: rgba(255, 255, 255, 0);">Sanders must ho=
pe that the economic efficiency of a single-payer health care plan, which fi=
nds its savings in the reduced role of middle-men and insurance companies, w=
ill result in savings passed onto Americans =E2=80=93 Americans who will, in=
their turn, spend those savings in the economy at large. </span></p><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr"=
style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-alig=
n: baseline; background-color: rgba(255, 255, 255, 0);">He has found politic=
al success in his promise to make colleges and universities in America tuiti=
on-free.&nbsp; The impetus behind this plan is similar to that of Mrs. Clint=
on =E2=80=93 students with lower debt burdens are going to spend a greater p=
ortion of their income on food and entertainment, as well as on equity-inves=
tments like homes. </span></p><span style=3D"background-color: rgba(255, 255=
, 255, 0);"><br></span><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-botto=
m: 0pt;"><span style=3D"font-weight: 700; text-decoration: underline; vertic=
al-align: baseline; background-color: rgba(255, 255, 255, 0);">Campaign Impa=
ct</span></p><span style=3D"background-color: rgba(255, 255, 255, 0);"><br><=
/span><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span st=
yle=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);">=
The CBO=E2=80=99s federal budget projections released last week indicated th=
at the annual federal deficit will grow to $1.3 trillion by 2026.&nbsp; It=E2=
=80=99s unlikely that the CBO report will be linked to the candidates' spend=
ing plans in any meaningful way.&nbsp; And to be fair, each candidate has pu=
t forward proposals to raise revenue equivalent to the costs of their plans (=
or at least to the extent that their own analyses can be trusted); this is o=
ften a rarity amongst politicians running for office and they should be appl=
auded for doing so.&nbsp; Because of this, both campaigns can claim that the=
ir proposals will not raise the federal deficit =E2=80=93 it=E2=80=99s unlik=
ely that those claims will remain unchallenged in the future. </span></p><sp=
an style=3D"background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"=
ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-weig=
ht: 700; vertical-align: baseline; background-color: rgba(255, 255, 255, 0);=
"><u>Tax Foundation Analysis </u></span></p><span style=3D"background-color:=
rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D"margin-top: 0pt=
; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; background-c=
olor: rgba(255, 255, 255, 0);">Recent analyses by the Tax Foundation, a grou=
p which uses dynamic scoring methods to judge revenue, have found that Clint=
on=E2=80=99s plan will reduce economic output by 1 percent over a decade, wh=
ile Sanders=E2=80=99 proposals will lower GDP by a staggering 9.5 percent.&n=
bsp; Dynamic scoring is a controversial method of analyzing revenue estimate=
s =E2=80=93 it takes into account the supposed deleterious effects caused by=
tax increases and attempts to adjust growth the reflect those effects.</spa=
n></p><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></span><=
p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"=
vertical-align: baseline; background-color: rgba(255, 255, 255, 0);">A CRS r=
eport published in 2014, however, stated that =E2=80=9CA review of statistic=
al evidence suggests that both labor supply and savings and investment are r=
elatively insensitive to tax rates.=E2=80=9D&nbsp;</span></p><p dir=3D"ltr" s=
tyle=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align:=
baseline; background-color: rgba(255, 255, 255, 0);"><br></span></p><p dir=3D=
"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical=
-align: baseline; background-color: rgba(255, 255, 255, 0);">While each camp=
aign will be inclined to&nbsp;</span><span style=3D"background-color: rgba(2=
55, 255, 255, 0);">argue that any analysis which mentions economic contracti=
on as an effect of their plans is based on improper economics, it may not ma=
tter to voters whether they=E2=80=99re right or not. &nbsp;American voters h=
ave always been tax-averse but will pay for what they want. &nbsp;Maybe the b=
iggest yet-unanswered question: do they want another overhaul of he nation's=
healthcare enough to pay a new record in tax increases?</span></p><p dir=3D=
"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"ma=
rgin-top: 0pt; margin-bottom: 0pt;"><span style=3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=
coration: -webkit-letterpress;">Recent Updates</span></p><div style=3D"color=
: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterpress;"><br><div>Fiscal Pol: Def=
icit/Debt Dormancy (Jan. 28)</div><div><span style=3D"background-color: rgba=
(255, 255, 255, 0);">The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span></di=
v><div>Debate Myths Challenged &nbsp;(Jan. 25)</div><div>Regulating the Regu=
lators &nbsp;(Jan. 21)</div><div>Sanders' Tax/Healthcare Policy &nbsp;(Jan 2=
0)</div><div>HRC's Tax Policy &nbsp;(Jan. 17)<br><div>2016 Tax Agenda on the=
Hill &nbsp;(Jan. 16)</div><div>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</div>=
<div><span style=3D"background-color: rgba(255, 255, 255, 0);">2016 Tax Poli=
cy Issues &nbsp;(Jan. 8)</span></div><div><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (Jan. 7)</span></div=
> <div><span style=3D"background-color: rgba(255, 255, 255, 0);">Sanders' Fin=
Reg Proposals &nbsp;(Jan. 5)</span></div><div><span style=3D"background-col=
or: rgba(255, 255, 255, 0);">Year-End Review: Fiscal Policy (Jan. 1) &nbsp;<=
/span><span style=3D"background-color: rgba(255, 255, 255, 0);">Year-End Rev=
iew: Fin. Reg.&nbsp;</span><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">&nbsp;(Dec. 29) &nbsp;</span><span style=3D"background-color: rgba(=
255, 255, 255, 0);">Omnibus Review (Dec. 15)</span></div><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Omnibus Situation &nbsp;(Dec. 14=
)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> FY 2016 Omnibus Talks (Dec. 10)</span></div><div><span style=3D"background-=
color: rgba(255, 255, 255, 0);">Customs Bill &nbsp;(Dec. 8)</span></div><div=
> <span style=3D"background-color: rgba(255, 255, 255, 0);">Tax Extender Nego=
tiations &nbsp;(Dec. 6) o</span></div><div><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Brown on HFT &nbsp;(Dec. 4)</span></div><div><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Shelby 2.0 Update &nbsp;(=
Dec. 3)</span></div><div><span style=3D"background-color: rgba(255, 255, 255=
, 0);"><br></span></div><div><br></div></div></div></div><div><br></div><div=
> On Jan 28, 2016, at 10:12 AM, Dana &lt;<a href=3D"mailto:[email-masked]=
om">[email-masked]</a>&gt; wrote:<br><br></div><blockquote type=3D"cit=
e"><div><meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dut=
f-8"><div><span></span></div><div><div><span></span></div><div><meta http-eq=
uiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"><div><span></spa=
n></div><div><meta http-equiv=3D"content-type" content=3D"text/html; charset=
=3Dutf-8"><div><span></span></div><div><meta http-equiv=3D"content-type" con=
tent=3D"text/html; charset=3Dutf-8"><div><p dir=3D"ltr" style=3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=
0392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom:=
0pt;"><span style=3D"vertical-align: baseline; background-color: rgba(255, 2=
55, 255, 0);">Dear Mike &amp; Co.,</span></p><span style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration: -webkit-letterpress; background-color: rgba(255, 255, 255=
, 0);"><br></span><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=
-webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"v=
ertical-align: baseline; background-color: rgba(255, 255, 255, 0);">Pre-prim=
ary endorsements from Party leaders in tight contests are rare and sometimes=
understated.&nbsp; To wit, President Obama remarks this week that HRC is as=
prepared to be president as any non-Vice President as anyone</span><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">: =E2=80=9CI think that wh=
at Hillary presents is a recognition that translating values into governance=
and delivering the goods is ultimately the job of politics, making a real-l=
ife difference to people in their day-to-day lives.=E2=80=9D</span></p><p di=
r=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=
color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; m=
argin-top: 0pt; margin-bottom: 0pt;"><span style=3D"background-color: rgba(2=
55, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><=
span style=3D"vertical-align: baseline; background-color: rgba(255, 255, 255=
, 0);"></span></p><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=
-webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"v=
ertical-align: baseline; background-color: rgba(255, 255, 255, 0);">Yesterda=
y, House Democratic leader Nancy starting doing precisely that, assessing th=
e centerpiece of Sanders' platform: &nbsp;"He's talking about a single-payer=
, and that's not going to happen. I mean, does anybody in this room think th=
at we're going to be discussing a single-payer? ... We're not running on any=
platform of raising taxes."&nbsp;</span></p><p dir=3D"ltr" style=3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bott=
om: 0pt;"><br></p><p dir=3D"ltr" style=3D"text-decoration: -webkit-letterpre=
ss; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: bas=
eline; background-color: rgba(255, 255, 255, 0);">Far from the cauldron of C=
ongress and the icy campaign trail was an announcement by the Fed with impli=
cations for the overall economy and for the election year ahead.&nbsp; More o=
n the Fed's statement and its implications below. &nbsp;</span></p><p dir=3D=
"ltr" style=3D"text-decoration: -webkit-letterpress; margin-top: 0pt; margin=
-bottom: 0pt;"><span style=3D"vertical-align: baseline; background-color: rg=
ba(255, 255, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"text-decoratio=
n: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Please let me know if you have a=
ny questions or issue coverage requests.&nbsp;</span></p><p dir=3D"ltr" styl=
e=3D"text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0=
pt;"><span style=3D"vertical-align: baseline; background-color: rgba(255, 25=
5, 255, 0);"><br></span></p><p dir=3D"ltr" style=3D"text-decoration: -webkit=
-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">Best,</span></p><p dir=3D"ltr" style=3D"te=
xt-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><s=
pan style=3D"background-color: rgba(255, 255, 255, 0);"><br></span></p><p di=
r=3D"ltr" style=3D"text-decoration: -webkit-letterpress; margin-top: 0pt; ma=
rgin-bottom: 0pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> Dana</span></p><div><br></div><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;">----=
-------------</p><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=
etterpress; background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"=
ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=
-top: 0pt; margin-bottom: 0pt;"><span style=3D"text-decoration: underline; v=
ertical-align: baseline; background-color: rgba(255, 255, 255, 0);"><b>The Fe=
d's Statement</b></span></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress; background-color: rgba(255, 255, 255, 0);"><br></span=
> <p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=
-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=
ess; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: ba=
seline; background-color: rgba(255, 255, 255, 0);">The Federal Open Market C=
ommittee (FOMC) of the Federal Reserve decided yesterday not to raise rates i=
n January.&nbsp; Last month, the Fed voted to raise interest rates for the f=
irst time in nine years, setting its rate target between 0.25 and 0.5 percen=
t.&nbsp; Today's statement reaffirmed this decision, noting that recent mark=
et turbulence had not stayed the Fed from its plan to continue =E2=80=9Conly=
gradual increases in the federal funds rate.=E2=80=9D &nbsp;Speculation and=
hope are rife that the FOMC will hold off raising rates in March and wait u=
ntil June. &nbsp;</span></p><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.7=
01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=
ecoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span s=
tyle=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"=
> <br></span></p><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -web=
kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"ver=
tical-align: baseline; background-color: rgba(255, 255, 255, 0);">But the st=
atement today indicated no change in the Fed=E2=80=99s plan for previously o=
utlined &nbsp;rate increases, four 0.25 percent increases this year, with to=
tal increases of one percent this year and next.&nbsp; However, the FOMC is l=
argely comprised of dovish voters, who may change tack if current market cor=
rections continue. &nbsp;&nbsp;</span></p><span style=3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpress; background-color: rgba(255, 255, 255, 0=
);"><br></span><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -w=
ebkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"text=
-decoration: underline; vertical-align: baseline; background-color: rgba(255=
, 255, 255, 0);"><b>Market Reaction</b></span></p><span style=3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=
0392); text-decoration: -webkit-letterpress; background-color: rgba(255, 255=
, 255, 0);"><br></span><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961=
); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=
tion: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=
=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);">The=
Dow Jones Industrial average is down from 17.759 on December 16 to 15,951 t=
oday; the S&amp;P 500 has declined from 2,073 to 1,879 over the same period.=
&nbsp; The&nbsp;</span></p><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=
coration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span s=
tyle=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"=
> Fed however expressed confidence in continuing economic growth, calling low=
inflation and the decline in energy prices =E2=80=9Ctransitory=E2=80=9D and=
predicting 2 percent inflation in the medium-term as energy prices rise aga=
in. &nbsp;</span></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=
composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=
it-letterpress; background-color: rgba(255, 255, 255, 0);"><br></span><p dir=
=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; ma=
rgin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline;=
background-color: rgba(255, 255, 255, 0);">In a nod to beleaguered investor=
s, the Committee wrote that it =E2=80=9C... is closely monitoring global eco=
nomic and financial developments and is assessing their implications for the=
labor market and inflation, and for the balance of risks to the outlook.=E2=
=80=9D &nbsp;So the Fed has, unusually, acknowledged the global scope of its=
deliberations.&nbsp; FOMC also indicated a focus on =E2=80=9Clabor market i=
ndicators [which] will continue to strengthen."</span></p><span style=3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress; background-color: rgba(=
255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><spa=
n style=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0=
);">For now, though inflation is running just 0.4 percent, well below its tw=
o percent target, the Fed has not disavowed its plan to raise rates four tim=
es this year. &nbsp;&nbsp;This cannot be welcome to global equine markets. &=
nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);">Domest=
ic and global capital markets have already lost roughly ten percent since th=
e December rate hike. &nbsp;Fed policy&nbsp;may be having a decelerating eff=
ect on growth and so could be a marginal drag on Democratic prospects. &nbsp=
;</span></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=
press; background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0=
pt; margin-bottom: 0pt;"><span style=3D"text-decoration: underline; vertical=
-align: baseline; background-color: rgba(255, 255, 255, 0);"><b>New FOMC Mem=
bers</b></span></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=
mposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=
-letterpress; background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D=
"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=
n-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; ba=
ckground-color: rgba(255, 255, 255, 0);">The FOMC is made up of rotating boa=
rd of seven voting members taken from Board of Governors members as well as r=
egional bank officials; these members rotate on an annual basis at the first=
meeting of each year.&nbsp; The 2016 committee members are listed below (id=
entified as"hawks," those favoring tight monetary policy or "doves," support=
ing more accommodative policy).&nbsp;</span></p><span style=3D"color: rgba(0=
, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=
92); text-decoration: -webkit-letterpress; background-color: rgba(255, 255, 2=
55, 0);"><br></span><ul style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=
letterpress; margin-top: 0pt; margin-bottom: 0pt;"><li dir=3D"ltr" style=3D"=
list-style-type: disc; vertical-align: baseline; margin-left: 15px;"><p dir=3D=
"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><font color=3D"rgba(0, 0=
, 0, 0.7019607843137254)"><span style=3D"background-color: rgba(255, 255, 25=
5, 0);"><a href=3D"http://www.federalreserve.gov/aboutthefed/bios/board/yell=
en.htm" style=3D"text-decoration: none;"><span style=3D"text-decoration: und=
erline; vertical-align: baseline;">Janet L. Yellen</span></a><span style=3D"=
vertical-align: baseline;">, Board of Governors, Chair (dove)</span></span><=
/font></p></li><li dir=3D"ltr" style=3D"list-style-type: disc; vertical-alig=
n: baseline; margin-left: 15px;"><p dir=3D"ltr" style=3D"margin-top: 0pt; ma=
rgin-bottom: 0pt;"><font color=3D"rgba(0, 0, 0, 0.7019607843137254)"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);"><a href=3D"http://www.fed=
eralreserve.gov/aboutthefed/bios/banks/pres02.htm" style=3D"text-decoration:=
none;"><span style=3D"text-decoration: underline; vertical-align: baseline;=
">William C. Dudley</span></a><span style=3D"vertical-align: baseline;">, Ne=
w York, Vice Chair (dove)</span></span></font></p></li><li dir=3D"ltr" style=
=3D"list-style-type: disc; vertical-align: baseline; margin-left: 15px;"><p d=
ir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><font color=3D"rgb=
a(0, 0, 0, 0.7019607843137254)"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);"><a href=3D"http://www.federalreserve.gov/aboutthefed/bios/boar=
d/brainard.htm" style=3D"text-decoration: none;"><span style=3D"text-decorat=
ion: underline; vertical-align: baseline;">Lael Brainard</span></a><span sty=
le=3D"vertical-align: baseline;">, Board of Governors (dove)</span></span></=
font></p></li><li dir=3D"ltr" style=3D"list-style-type: disc; font-weight: 7=
00; vertical-align: baseline; margin-left: 15px;"><p dir=3D"ltr" style=3D"ma=
rgin-top: 0pt; margin-bottom: 0pt;"><font color=3D"rgba(0, 0, 0, 0.701960784=
3137254)"><span style=3D"background-color: rgba(255, 255, 255, 0);"><a href=3D=
"http://www.federalreserve.gov/aboutthefed/bios/banks/pres08.htm" style=3D"t=
ext-decoration: none;"><span style=3D"text-decoration: underline; vertical-a=
lign: baseline;">James Bullard</span></a><span style=3D"vertical-align: base=
line;">, St. Louis (hawk)</span></span></font></p></li><li dir=3D"ltr" style=
=3D"list-style-type: disc; vertical-align: baseline; margin-left: 15px;"><p d=
ir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"><font color=3D"rgb=
a(0, 0, 0, 0.7019607843137254)"><span style=3D"background-color: rgba(255, 2=
55, 255, 0);"><a href=3D"http://www.federalreserve.gov/aboutthefed/bios/boar=
d/fischer.htm" style=3D"text-decoration: none;"><span style=3D"text-decorati=
on: underline; vertical-align: baseline;">Stanley Fischer</span></a><span st=
yle=3D"vertical-align: baseline;">, Board of Governors (hawk)</span></span><=
/font></p></li><li dir=3D"ltr" style=3D"list-style-type: disc; font-weight: 7=
00; vertical-align: baseline; margin-left: 15px;"><p dir=3D"ltr" style=3D"ma=
rgin-top: 0pt; margin-bottom: 0pt;"><font color=3D"rgba(0, 0, 0, 0.701960784=
3137254)"><span style=3D"background-color: rgba(255, 255, 255, 0);"><a href=3D=
"http://www.federalreserve.gov/aboutthefed/bios/banks/pres10.htm" style=3D"t=
ext-decoration: none;"><span style=3D"text-decoration: underline; vertical-a=
lign: baseline;">Esther L. George</span></a><span style=3D"vertical-align: b=
aseline;">, Kansas City (hawk)</span></span></font></p></li><li dir=3D"ltr" s=
tyle=3D"list-style-type: disc; font-weight: 700; vertical-align: baseline; m=
argin-left: 15px;"><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0=
pt;"><font color=3D"rgba(0, 0, 0, 0.7019607843137254)"><span style=3D"backgr=
ound-color: rgba(255, 255, 255, 0);"><a href=3D"http://www.federalreserve.go=
v/aboutthefed/bios/banks/pres04.htm" style=3D"text-decoration: none;"><span s=
tyle=3D"text-decoration: underline; vertical-align: baseline;">Loretta J. Me=
ster</span></a><span style=3D"vertical-align: baseline;">, Cleveland (hawk)<=
/span></span></font></p></li><li dir=3D"ltr" style=3D"list-style-type: disc;=
vertical-align: baseline; margin-left: 15px;"><p dir=3D"ltr" style=3D"margi=
n-top: 0pt; margin-bottom: 0pt;"><font color=3D"rgba(0, 0, 0, 0.701960784313=
7254)"><span style=3D"background-color: rgba(255, 255, 255, 0);"><a href=3D"=
http://www.federalreserve.gov/aboutthefed/bios/board/powell.htm" style=3D"te=
xt-decoration: none;"><span style=3D"text-decoration: underline; vertical-al=
ign: baseline;">Jerome H. Powell</span></a><span style=3D"vertical-align: ba=
seline;">, Board of Governors (swing)</span></span></font></p></li><li dir=3D=
"ltr" style=3D"list-style-type: disc; font-weight: 700; vertical-align: base=
line; margin-left: 15px;"><p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bo=
ttom: 0pt;"><font color=3D"rgba(0, 0, 0, 0.7019607843137254)"><span style=3D=
"background-color: rgba(255, 255, 255, 0);"><a href=3D"http://www.federalres=
erve.gov/aboutthefed/bios/banks/pres01.htm" style=3D"text-decoration: none;"=
> <span style=3D"text-decoration: underline; vertical-align: baseline;">Eric R=
osengren</span></a><span style=3D"vertical-align: baseline;">, Boston (dove)=
</span></span></font></p></li><li dir=3D"ltr" style=3D"list-style-type: disc=
; vertical-align: baseline; margin-left: 15px;"><p dir=3D"ltr" style=3D"marg=
in-top: 0pt; margin-bottom: 0pt;"><font color=3D"rgba(0, 0, 0, 0.70196078431=
37254)"><span style=3D"background-color: rgba(255, 255, 255, 0);"><a href=3D=
"http://www.federalreserve.gov/aboutthefed/bios/board/tarullo.htm" style=3D"=
text-decoration: none;"><span style=3D"text-decoration: underline; vertical-=
align: baseline;">Daniel K. Tarullo</span></a><span style=3D"vertical-align:=
baseline;">, Board of Governors (dove)</span></span></font></p></li></ul><s=
pan style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; backgro=
und-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D"color=
: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-b=
ottom: 0pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><span=
style=3D"vertical-align: baseline;">New members this year are&nbsp;</span><=
span style=3D"font-weight: 700; vertical-align: baseline;">James Bullard, Es=
ther George, Loretta Mester,</span><span style=3D"vertical-align: baseline;"=
> &nbsp;and&nbsp;</span><span style=3D"font-weight: 700; vertical-align: base=
line;">Eric Rosengren.</span><span style=3D"vertical-align: baseline;">&nbsp=
;&nbsp;The FOMC consists of 12 voting members, with two nominees awaiting Se=
nate confirmation.&nbsp; A shift in the balance of power between hawks and d=
oves may occur but the doves hold a slim majority for now.</span></span></p>=
<span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; backg=
round-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin=
-bottom: 0pt;"><span style=3D"text-decoration: underline; vertical-align: ba=
seline; background-color: rgba(255, 255, 255, 0);"><b>Code Breaking</b></spa=
n></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=
background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; ma=
rgin-bottom: 0pt;"><span style=3D"vertical-align: baseline; background-color=
: rgba(255, 255, 255, 0);">Fed watchers have made an art form out of reading=
between the lines of these policy releases, even the most benign of which c=
an cause huge swings in markets (the Dow dropped over 200 points in the wake=
of today=E2=80=99s release).&nbsp; Fed statements are famously difficult to=
parse but one point was unmistakable: the Fed is keeping a close eye on the=
labor market -- employment and participation rates, wages, etc. -- as a lea=
ding indicator for inflation and overall growth perhaps more than any other v=
ariable. &nbsp;</span></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -we=
bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress; background-color: rgba(255, 255, 255, 0);"><br></span><p=
dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=
ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=
; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"text-decoration: unde=
rline; vertical-align: baseline; background-color: rgba(255, 255, 255, 0);">=
<b>Campaign Consequences</b></span></p><span style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress; background-color: rgba(255, 255, 255, 0);"=
> <br></span><p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=
composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=
it-letterpress; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"vertica=
l-align: baseline; background-color: rgba(255, 255, 255, 0);">None of the ca=
ndidates has commented on today=E2=80=99s release, not surprisingly, but the=
policy may draw ire from some on the right, who oppose fiat rate-targeting (=
though it took no action today) and the left, where lowering rather than rai=
sing rate is preferred (except for holders of fixed income securities). &nbs=
p;</span></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=
rpress; background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr"=
style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top=
: 0pt; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; backgro=
und-color: rgba(255, 255, 255, 0);">Sen.&nbsp; Sanders, true to his reputati=
on of standing far outside the Democratic fold, has long opposed the Fed for=
being too involved with the bankers they are meant to be regulating.&nbsp; S=
anders has called for reform measures at the Fed, including prohibiting peop=
le serving on bank boards from serving on the Fed at the same time.&nbsp;</s=
pan></p><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=
s; background-color: rgba(255, 255, 255, 0);"><br></span><p dir=3D"ltr" styl=
e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=
0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt=
; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; background-c=
olor: rgba(255, 255, 255, 0);">The Fed was confident that economic growth wo=
uld continue on its steady pace, indicating strength in labor markets and do=
wnplaying both financial market reactions and diving commodities prices.&nbs=
p; The FOMC sets monetary policy on a long-term basis; the full ramification=
s of their decisions aren=E2=80=99t felt until months or years out, so any c=
ontention that the economy is strong enough to handle higher interest rates i=
s essentially an endorsement of macroeconomic policy in the last few years. D=
emocratic candidates will need to hammer this point home - but it is yet to b=
e seen if voters will understand the message that Democratic policies are re=
sponsible for the sunny outlook for the American economy, especially compare=
d to Western Europe, Latin America, and Asia.</span></p><p dir=3D"ltr" style=
=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 11pt=
; margin-bottom: 0pt;"><span style=3D"vertical-align: baseline; background-c=
olor: rgba(255, 255, 255, 0);">Below is the first sentence of the FOMC state=
ment from yesterday, edited to reflect changes from last month's statement:<=
/span></p><div><div><div dir=3D"ltr"><span id=3D"docs-internal-guid-d5a88007=
-7fec-b922-12e4-5ebf8ff54494"><span style=3D"vertical-align: baseline; backg=
round-color: rgba(255, 255, 255, 0);"><div><br></div></span></span></div></d=
iv><div><div class=3D"statements" style=3D"margin: 0px; padding: 0px 0.5em; b=
order: 0px; vertical-align: baseline;"><div class=3D"diff_statement_holder" s=
tyle=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-va=
riant: inherit; vertical-align: baseline;"><div class=3D"statement_sheet wid=
get bordered" style=3D"margin: 5px 0px; padding: 5px; border: 1px solid rgb(=
221, 221, 221); font-style: inherit; font-variant: inherit; vertical-align: b=
aseline; overflow: auto; word-break: break-word; -webkit-hyphens: auto; bord=
er-top-left-radius: 2px; border-top-right-radius: 2px; border-bottom-right-r=
adius: 2px; border-bottom-left-radius: 2px; -webkit-box-shadow: rgb(221, 221=
, 221) 1px 1px 1px; box-shadow: rgb(221, 221, 221) 1px 1px 1px;"><div class=3D=
"statement_text" style=3D"margin: 0px; padding: 0px; border: 0px; font-style=
: inherit; font-variant: inherit; vertical-align: baseline; overflow-x: hidd=
en;"><p style=3D"margin: 0.5em; padding: 0px; border: 0px; font-style: inher=
it; font-variant: inherit; vertical-align: baseline;"><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);"><span style=3D"margin: 0px; padding: 0px=
; border: 0px; font-style: inherit; font-variant: inherit; vertical-align: b=
aseline;">For&nbsp;</span><del style=3D"margin: 0px; padding: 0px; border: 0=
px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">i=
mmediate release</del><ins style=3D"margin: 0px; padding: 0px; border: 0px; f=
ont-style: inherit; font-variant: inherit; vertical-align: baseline; text-de=
coration: none;">release&nbsp;<a href=3D"x-apple-data-detectors://14" x-appl=
e-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-a=
pple-data-detectors-result=3D"14">at 2:00 p.m. EST</a></ins></span></p><p st=
yle=3D"margin: 0.5em; padding: 0px; border: 0px; font-style: inherit; font-v=
ariant: inherit; vertical-align: baseline;"><span style=3D"background-color:=
rgba(255, 255, 255, 0);"><span style=3D"margin: 0px; padding: 0px; border: 0=
px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">I=
nformation received since the Federal Open Market Committee met in&nbsp;</sp=
an><del style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit=
; font-variant: inherit; vertical-align: baseline;">Octo</del><ins style=3D"=
margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: i=
nherit; vertical-align: baseline; text-decoration: none;">Decem</ins><span s=
tyle=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-va=
riant: inherit; vertical-align: baseline;">ber suggests that&nbsp;</span><de=
l style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font=
-variant: inherit; vertical-align: baseline;">economic activity has been exp=
anding at a moderate pace</del><ins style=3D"margin: 0px; padding: 0px; bord=
er: 0px; font-style: inherit; font-variant: inherit; vertical-align: baselin=
e; text-decoration: none;">labor market conditions improved further even as e=
conomic growth slowed late last year</ins><span style=3D"margin: 0px; paddin=
g: 0px; border: 0px; font-style: inherit; font-variant: inherit; vertical-al=
ign: baseline;">. Household spending and business fixed investment have been=
increasing at&nbsp;</span><del style=3D"margin: 0px; padding: 0px; border: 0=
px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">s=
olid</del><ins style=3D"margin: 0px; padding: 0px; border: 0px; font-style: i=
nherit; font-variant: inherit; vertical-align: baseline; text-decoration: no=
ne;">moderate</ins><span style=3D"margin: 0px; padding: 0px; border: 0px; fo=
nt-style: inherit; font-variant: inherit; vertical-align: baseline;">&nbsp;r=
ates in recent months, and the housing sector has improved further; however,=
net exports have been soft</span><ins style=3D"margin: 0px; padding: 0px; b=
order: 0px; font-style: inherit; font-variant: inherit; vertical-align: base=
line; text-decoration: none;">&nbsp;and inventory investment slowed</ins><sp=
an style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; fon=
t-variant: inherit; vertical-align: baseline;">. A range of recent labor mar=
ket indicators, including&nbsp;</span><del style=3D"margin: 0px; padding: 0p=
x; border: 0px; font-style: inherit; font-variant: inherit; vertical-align: b=
aseline;">ongoi</del><ins style=3D"margin: 0px; padding: 0px; border: 0px; f=
ont-style: inherit; font-variant: inherit; vertical-align: baseline; text-de=
coration: none;">stro</ins><span style=3D"margin: 0px; padding: 0px; border:=
0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"=
> ng job gains</span><del style=3D"margin: 0px; padding: 0px; border: 0px; fo=
nt-style: inherit; font-variant: inherit; vertical-align: baseline;">&nbsp;a=
nd declining unemployment, shows further improvement and confirms that under=
utilization of labor resources has diminished appreciably since early this y=
ear</del><ins style=3D"margin: 0px; padding: 0px; border: 0px; font-style: i=
nherit; font-variant: inherit; vertical-align: baseline; text-decoration: no=
ne;">, points to some additional decline in underutilization of labor resour=
ces</ins><span style=3D"margin: 0px; padding: 0px; border: 0px; font-style: i=
nherit; font-variant: inherit; vertical-align: baseline;">. Inflation has co=
ntinued to run below the Committee's 2 percent longer-run objective, partly r=
eflecting declines in energy prices and in prices of non-energy imports. Mar=
ket-based measures of inflation compensation&nbsp;</span><del style=3D"margi=
n: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: inheri=
t; vertical-align: baseline;">remain low; some</del><ins style=3D"margin: 0p=
x; padding: 0px; border: 0px; font-style: inherit; font-variant: inherit; ve=
rtical-align: baseline; text-decoration: none;">declined further;</ins><span=
style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-=
variant: inherit; vertical-align: baseline;">&nbsp;survey-based measures of l=
onger-term inflation expectations&nbsp;</span><del style=3D"margin: 0px; pad=
ding: 0px; border: 0px; font-style: inherit; font-variant: inherit; vertical=
-align: baseline;">have edged down</del><ins style=3D"margin: 0px; padding: 0=
px; border: 0px; font-style: inherit; font-variant: inherit; vertical-align:=
baseline; text-decoration: none;">are little changed, on balance, in recent=
months</ins><span style=3D"margin: 0px; padding: 0px; border: 0px; font-sty=
le: inherit; font-variant: inherit; vertical-align: baseline;">.</span></spa=
n></p></div></div></div></div></div></div><p dir=3D"ltr" style=3D"text-decor=
ation: -webkit-letterpress; margin-top: 11pt; margin-bottom: 0pt;"><span sty=
le=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"><=
/span></p><div><div><span style=3D"background-color: rgba(255, 255, 255, 0);=
"><br></span></div><div><span style=3D"text-decoration: -webkit-letterpress;=
background-color: rgba(255, 255, 255, 0);">--------------------</span></div=
> </div><br><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=
n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=
ress;">Recent Updates</span><div style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=
-webkit-letterpress;"><br></div><div style=3D"color: rgba(0, 0, 0, 0.701961=
); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=
tion: -webkit-letterpress;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span></div><div style=
=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">Debate Myths Ch=
allenged &nbsp;(Jan. 25)</div><div style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress;">Regulating the Regulators &nbsp;(Jan. 21)</div><div s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">Sanders' Ta=
x/Healthcare Policy &nbsp;(Jan 20)</div><div style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress;">HRC's Tax Policy &nbsp;(Jan. 17)<br><div>=
2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</div><div>Glass-Steagall, Take 2=
&nbsp;(Jan. 13)</div><div><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">2016 Tax Policy Issues &nbsp;(Jan. 8)</span></div><div><span style=3D=
"background-color: rgba(255, 255, 255, 0);">Sanders Proposals/GS &amp; TBTF (=
Jan. 7)</span></div><div><span style=3D"background-color: rgba(255, 255, 255=
, 0);">Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span></div><div><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);">Year-End Review: Fiscal Poli=
cy (Jan. 1) &nbsp;</span><span style=3D"background-color: rgba(255, 255, 255=
, 0);">Year-End Review: Fin. Reg.&nbsp;</span><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">&nbsp;(Dec. 29) &nbsp;</span><span style=3D"back=
ground-color: rgba(255, 255, 255, 0);">Omnibus Review (Dec. 15)</span></div>=
<div><span style=3D"background-color: rgba(255, 255, 255, 0);">Omnibus Situa=
tion &nbsp;(Dec. 14)</span></div><div><span style=3D"background-color: rgba(=
255, 255, 255, 0);">FY 2016 Omnibus Talks (Dec. 10)</span></div><div><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">Customs Bill &nbsp;(Dec. 8=
)</span></div><div><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> Tax Extender Negotiations &nbsp;(Dec. 6) o</span></div><div><span style=3D"=
background-color: rgba(255, 255, 255, 0);">Brown on HFT &nbsp;(Dec. 4)</span=
> </div><div><span style=3D"background-color: rgba(255, 255, 255, 0);">Shelby=
2.0 Update &nbsp;(Dec. 3)</span></div></div></div></div></div></div></div><=
/div></blockquote></div></div></div></div></blockquote></div></div></blockqu=
ote></div></div></div></blockquote></div></div></div></div></div></div></div=
> </div></blockquote></div></div></div></div></div></blockquote></div></div><=
/div></div></blockquote></div></div></div></div></div></div></div></div></di=
v></div></div></div></div></div></div></div></div></div></div></blockquote><=
/div></div></div></div></div></div></div></div></body></html>=

Content-Type: multipart/alternative;
 boundary=Apple-Mail-722142D5-257B-4FFA-BEFB-ED8CE09D5CCD
Subject: Update -- Senate Banking Nominatio
<html><head><meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=
utf-8"></head><body dir=3D"auto"><div><span></span></div><div><div><span></s=
pan></div><div><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=
terpress;">Mike &amp; Co. --</span></div><div style=3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=
-decoration: -webkit-letterpress;"><div><p class=3D"MsoNormal" style=3D"marg=
in: 0in 0in 0.0001pt;"><o:p style=3D"background-color: rgba(255, 255, 255, 0=
);">&nbsp;</o:p></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><=
span style=3D"background-color: rgba(255, 255, 255, 0);">Federal Reserve gov=
ernor Lael Brainard is under fire today for making a $750 donation to the Cl=
inton campaign, with Republicans calling it proof positive that the Fed has =E2=
=80=9Ccozy ties=E2=80=9D with the Executive branch.&nbsp;&nbsp;</span></p><p=
class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"backgrou=
nd-color: rgba(255, 255, 255, 0);">Brainard began her Fed term in 2014; prec=
iously she was&nbsp;Treasury&nbsp;Undersecretary for International Affairs. &=
nbsp;The former&nbsp;</span><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">MIT Professor of Applied Economics and Brookings Fellow has served i=
n half a dozen senior White House and Treasury positions. &nbsp;</span></p><=
p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"backgro=
und-color: rgba(255, 255, 255, 0);">Sen. Shelby acted with alacrity: =E2=80=9C=
Governor Brainard=E2=80=99s contributions to Hillary Clinton=E2=80=99s campa=
ign call into question the political independence of the board,=E2=80=9D he s=
aid in an emailed statement from his press office.&nbsp;</span></p><p class=3D=
"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"background-color:=
rgba(255, 255, 255, 0);">Meanwhile, the same Senate Banking Committee Chair=
has announced he=E2=80=99s ready to hold hearings for some of the 16 nomina=
tions -- reviewed below -- which have languished under his tenure.&nbsp;<o:p=
> </o:p></span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;">Bes=
t,</p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;">Dana</p><p clas=
s=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;">____________________________=
______</p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><b style=3D=
"background-color: rgba(255, 255, 255, 0);"><u>Update: &nbsp;Senate Banking N=
om Queue</u></b></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><=
span style=3D"background-color: rgba(255, 255, 255, 0);">Senate Banking</spa=
n><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;has the ig=
nominious distinction of being the only Senate committee to have not acted o=
n a single nominee before it in the 114th<span style=3D"font-size: 12px;">&n=
bsp;C</span></span><span style=3D"background-color: rgba(255, 255, 255, 0);"=
> ongress.&nbsp; There are currently 16 nominations waiting for Committee act=
ion. &nbsp;These aren=E2=80=99t small time positions -- the logjam includes n=
ominees to the Fed=E2=80=99s Board of Governors and senior&nbsp;</span><span=
style=3D"background-color: rgba(255, 255, 255, 0);">Treasury, SEC, FDIC, an=
d Ex-Im posts.&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0=
in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">For mont=
hs, Chairman Shelby has defended his Committee=E2=80=99s inaction by citing t=
wo issues -- he was facing a live primary threat and President Obama has not=
yet nominated a Federal Reserve vice chair for supervision, a prerequisite.=
&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><b><=
u>Logjam Lifting at Long Last?</u></b></p><p class=3D"MsoNormal" style=3D"ma=
rgin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">Shelby's primary behind him, he has scheduled a&nbsp;<a href=3D"x-apple-d=
ata-detectors://2" x-apple-data-detectors=3D"true" x-apple-data-detectors-ty=
pe=3D"calendar-event" x-apple-data-detectors-result=3D"2">March 15</a><span s=
tyle=3D"font-size: 12px;">&nbsp;</span>hearing for two SEC nominees, Lisa Fa=
irfax and Hester Peirce.&nbsp;&nbsp;</span><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Fairfax teaches at George Washington University and P=
eirce is a senior research fellow at George Mason=E2=80=99s Mercatus Center.=
The Committee will not be considering either of the two Federal Reserve nom=
inees, nor Adam Szubin, nominated for Treasury=E2=80=99s top post in terrori=
sm and financial crimes.</span></p><p class=3D"MsoNormal" style=3D"margin: 0=
in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Even=
if the Committee confirms the three nominee scheduled for its next hearing,=
it will have hardly made a dent in the queue.&nbsp;</span></p><p class=3D"M=
soNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);">Nominations have continued despite the dearth of hea=
rings on them.&nbsp; On March 3<span style=3D"font-size: 12px;">,&nbsp;</spa=
n>President Obama nominated Brian Quintenz and Chris Brummer to the Commodit=
ies Futures Trading Commission (CFTC).&nbsp; Quintenz, a Republican, works f=
or Saeculum Capital in D.C. and Brummer, a Democrat, is a professor at Georg=
etown University Law School.</span></p><p class=3D"MsoNormal" style=3D"margi=
n: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=
<b><u>Backlog at Banking</u></b></span></p><p class=3D"MsoNormal" style=3D"m=
argin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0=
);">With 16 unfilled vacancies before it (Messrs. Quintenz and Brummer will m=
ake it &nbsp;18), the Banking Committee has its work cut out for it. &nbsp;T=
he Chairman=E2=80=99s refusal&nbsp;</span><span style=3D"background-color: r=
gba(255, 255, 255, 0);">&nbsp;to consider any Fed nominee until Obama nomina=
tes a vice chair for supervision means that those two critical positions may=
remain unfilled longest. &nbsp; Key vacancies exist at the Export-Import Ba=
nk as well, because the board does not have enough members to reach quorum i=
t is unable to approve loans in excess of $10 million, severely hampering it=
s impact on export promotion deals.</span></p><p class=3D"MsoNormal" style=3D=
"margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255,=
0);">With so many nominees waiting to receive a hearing and the number legi=
slative days the Senate remaining this session rapidly dwindling, it=E2=80=99=
s no surprise that the &nbsp;Democrats on Banking have been pushing harder t=
han ever for the Chairman to move forward quickly.&nbsp;&nbsp;</span></p><p c=
lass=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"background=
-color: rgba(255, 255, 255, 0);">In a letter sent to Sen. Shelby, Ranking Me=
mber Sherrod Brown and his colleagues wrote =E2=80=9CFor more than a year, t=
he committee has failed to carry out one of its basic duties =E2=80=A6 Failu=
re to act impairs agencies=E2=80=99 and offices=E2=80=99 ability to fulfill a=
ll of their functions.=E2=80=9D</span></p><p class=3D"MsoNormal" style=3D"ma=
rgin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">The pending list includes the nominations&nbsp;</span><span style=3D"back=
ground-color: rgba(255, 255, 255, 0);">below:</span></p><p class=3D"MsoNorma=
l" style=3D"margin: 0in 0in 12pt;"><span style=3D"background-color: rgba(255=
, 255, 255, 0);"><u><b>Federal Reserve</b></u></span></p><p class=3D"MsoNorm=
al" style=3D"margin: 0in 0in 12pt;"><b style=3D"background-color: rgba(255, 2=
55, 255, 0);">=E2=80=A2 &nbsp;Allan R. Landon</b><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">, of Utah, to be a Member of the Board of Gov=
ernors of the Federal Reserve System for the unexpired term of fourteen year=
s from February 1, 2016 [PN 3].&nbsp;(Reappointment)</span></p><p class=3D"M=
soNormal" style=3D"margin: 0in 0in 12pt;"><span style=3D"background-color: r=
gba(255, 255, 255, 0);"><b>=E2=80=A2 &nbsp;</b></span><b style=3D"background=
-color: rgba(255, 255, 255, 0);">Kathryn M. Dominguez</b><span style=3D"back=
ground-color: rgba(255, 255, 255, 0);">, of Michigan, to be a Member of the B=
oard of Governors of the Federal Reserve System for the unexpired term of fo=
urteen years from February 1, 2004, vice Jeremy C. Stein, resigned.</span><s=
pan style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</span></p><p c=
lass=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><b style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);"><u>Federal Deposit Insurance Corporation</=
u></b></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);"><br></span></p><p class=3D=
"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><span style=3D"background-co=
lor: rgba(255, 255, 255, 0);"><b>=E2=80=A2</b>&nbsp;&nbsp;&nbsp;</span><b st=
yle=3D"background-color: rgba(255, 255, 255, 0);">Jay Neal Lerner</b><span s=
tyle=3D"background-color: rgba(255, 255, 255, 0);">, of Illinois, to be Insp=
ector General, Federal Deposit Insurance Corporation, vice Jon T. Rymer, res=
igned&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001=
pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</span>=
</p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);"><b><u>Treasury Department</u><o:=
p></o:p></b></span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=
1pt;"><b style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</b></p><=
p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);"><b>=E2=80=A2&nbsp;</b>&nbsp;</span><=
b style=3D"background-color: rgba(255, 255, 255, 0);">Adam J. Szubin</b><spa=
n style=3D"background-color: rgba(255, 255, 255, 0);">, of the District of C=
olumbia, to be Under Secretary for Terrorism and Financial Crimes, vice Davi=
d S. Cohen, resigned&nbsp;</span><span style=3D"background-color: rgba(255, 2=
55, 255, 0);">&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0=
in 0.0001pt;"><b style=3D"background-color: rgba(255, 255, 255, 0);"><br></b=
> </p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><b style=3D"=
background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;Amias Moore Geret=
y</b><span style=3D"background-color: rgba(255, 255, 255, 0);">, of Connecti=
cut, to be an Assistant Secretary of the Treasury, vice Cyrus Amir-Mokri, re=
signed&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=
1pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;</span=
> </p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><b style=3D"=
background-color: rgba(255, 255, 255, 0);"><u>Securities and Exchange Commis=
sion</u><o:p></o:p></b></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0=
.0001pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><br></sp=
an></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"><span styl=
e=3D"background-color: rgba(255, 255, 255, 0);"><b>=E2=80=A2</b>&nbsp;&nbsp;=
</span><b style=3D"background-color: rgba(255, 255, 255, 0);">Lisa M. Fairfa=
x</b><span style=3D"background-color: rgba(255, 255, 255, 0);">, of Maryland=
, to be a Member of the Securities and Exchange Commission for a term expiri=
ng&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);"><a h=
ref=3D"x-apple-data-detectors://8" x-apple-data-detectors=3D"true" x-apple-d=
ata-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"8">Ju=
ne 5, 2020</a></span><span style=3D"background-color: rgba(255, 255, 255, 0)=
;">, vice Luis Aguilar, term expired</span></p><p class=3D"MsoNormal" style=3D=
"margin: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 2=
55, 0);"><br></span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.00=
01pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &=
nbsp;</span><b style=3D"background-color: rgba(255, 255, 255, 0);">Hester Ma=
ria Peirce</b><span style=3D"background-color: rgba(255, 255, 255, 0);">, of=
Ohio, to be a Member of the Securities and Exchange Commission for a term e=
xpiring&nbsp;</span><span style=3D"background-color: rgba(255, 255, 255, 0);=
"><a href=3D"x-apple-data-detectors://9" x-apple-data-detectors=3D"true" x-a=
pple-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D=
"9">June 5, 2021</a></span><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">. (Reappointment)&nbsp;</span></p><p class=3D"MsoNormal" style=3D"m=
argin: 0in 0in 0.0001pt;"><span style=3D"background-color: rgba(255, 255, 25=
5, 0);"><br></span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=
1pt;"><span style=3D"background-color: rgba(255, 255, 255, 0);"><b><u>Export=
-Import Bank</u></b></span></p><p class=3D"MsoNormal" style=3D"margin: 0in 0=
in 0.0001pt;"><b style=3D"background-color: rgba(255, 255, 255, 0);">&nbsp;<=
/b></p></div></div><div><meta http-equiv=3D"content-type" content=3D"text/ht=
ml; charset=3Dutf-8"><div><span></span></div><span style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; background-color: rgba(255, 255, 255, 0);"><b>=E2=80=A2</b>&nbsp;&nbsp;</s=
pan><b style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 255, 255, 0);"=
> John Mark McWatters</b><span style=3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83, 0.0980392); background-color: r=
gba(255, 255, 255, 0);">, of Texas, to be a Member of the Board of Directors=
of the Export-Import Bank of the United States for a term expiring&nbsp;</s=
pan><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=
color: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 255, 255, 0=
);"><a href=3D"x-apple-data-detectors://10" x-apple-data-detectors=3D"true" x=
-apple-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D=
"10">January 20, 2019</a></span><span style=3D"color: rgba(0, 0, 0, 0.701961=
); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); background-=
color: rgba(255, 255, 255, 0);">, vice</span><span class=3D"apple-converted-=
space" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=
or: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 255, 255, 0);"=
> &nbsp;</span><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=
tion-fill-color: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 2=
55, 255, 0);">Sean Robert Mulvaney, term expired.&nbsp;</span><span style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;">__________________=
__________________</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><br style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=
press;"><b><u>Reeder</u></b></span></div><div><span style=3D"text-decoration=
: -webkit-letterpress;"><b><u>Aw</u></b></span></div><div><span style=3D"tex=
t-decoration: -webkit-letterpress;"><b><u>Pm</u></b></span></div><div><br st=
yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -we=
bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress;">=E2=80=A2 &nbsp;&nbsp;Thurs -- &nbsp;Financial Reg. Nom=
inations</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2); text-decoration: -webkit-letterpress;">=E2=80=A2 &nbsp;&nbsp;Fri -- Upda=
te on Tax Bills</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress;">=E2=80=A2 &nbsp;&nbsp;Mon -=
- &nbsp;Budget Irresolution&nbsp;</span><br style=3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><br s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=
-webkit-letterpress;">&nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><=
br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=
on: -webkit-letterpress;">&nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;EU/US Derivative=
s Deal</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=
n-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration: -webkit-letterpress;">&nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;P=
ension Crisis</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392);"><br style=3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=
0392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=
s;">Senate Banking Nominations (Mar. 10)</span><br style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
;"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">S=
urvey of the SIFI Landscape &nbsp;(Mar. 9)</span><br style=3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=
-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"=
> Michigan and the Meaning of Flint &nbsp;(Mar. 8) Puerto Rico's Debt Crisis &=
nbsp;(Mar. 5)</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"color: rg=
ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0=
980392); text-decoration: -webkit-letterpress;">Municipal Finance Caucus &nb=
sp;(Mar. 4)</span><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=
letterpress;">&nbsp;</span><br style=3D"color: rgba(0, 0, 0, 0.701961); -web=
kit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"co=
lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress;">Flint Bill: &nbsp;Prov=
isions &amp; Prospects (Mar. 2)</span><span style=3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-=
decoration: -webkit-letterpress;">&nbsp;</span><br style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
;"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">T=
op Tax Bills Handicapped &nbsp;(Feb. 24)</span><br style=3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
;"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">B=
igger than the Budget Battle &nbsp;(Feb. 23)</span><br style=3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=
ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=
;">Infrastructure Finance Update &nbsp;(Feb. 18)</span><span style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392); text-decoration: -webkit-letterpress;">&nbsp;</span><br style=3D"=
color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98=
, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=
mposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=
-letterpress;">Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=
t-letterpress;">Below the Radar/Customs Bill &nbsp;(Feb. 16)</span><span sty=
le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=
30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">&nbsp;</span>=
<br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
rgba(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961=
); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=
tion: -webkit-letterpress;">International Tax Status &nbsp;(Feb. 11)</span><=
br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=
on: -webkit-letterpress;">The Fed Holds Steady &nbsp;(Feb. 10)</span><br sty=
le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=
30, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -web=
kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterpress;">Obama's FY17 Budget &nbsp;(Feb. 9)</span><span style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;">&nbsp;</span><br s=
tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=
-webkit-letterpress;">Tax Talk of the Town &nbsp;(Feb. 3)</span><br style=3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"><span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=
t-letterpress;">Defending Dodd-Frank &nbsp;(Feb.2)</span><br style=3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392);"><br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=
-fill-color: rgba(130, 98, 83, 0.0980392);"><span style=3D"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
text-decoration: -webkit-letterpress;">___________________</span><span styl=
e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=
0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;">&nbsp;</span><=
br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"><br style=3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"><div><span>Mik=
e &amp; Co. --</span><br><span></span><br><span>It may feel like Michigan-mo=
rning-after but by dint of Mississippi, HRC padded her delegate lead last ni=
ght. </span><br><span></span><br><span>On Monday, &nbsp;President Obama held=
a financial regulatory summit in the Roosevelt Room of the White House. &nb=
sp;Joined by the heads of the Fed, the FDIC, and the CFPB, Obama declared =E2=
=80=9CI want to dispel the notion that exists both on the left and on the ri=
ght that somehow, after the crisis, nothing happened," he said. =E2=80=9CWe d=
id not just rebuild this, we rebuilt it better, and we=E2=80=99ve rebuilt it=
stronger.=E2=80=9D</span><br><span></span><br><span>He has a strong argumen=
t. &nbsp;You can't prove a negative and we will never know how many financia=
l crises were averted by Dodd-Frank. &nbsp;But metrics bear out the view tha=
t Americans and the economy have less to fear today from the Systemically Si=
gnificant Financial Institutions (SIFIs) than at any time since the turn of t=
he millennium. &nbsp;More on the regulatory circumstances of SIFIs below. &n=
bsp;</span><br><span></span><br><span>Best,</span><br><span></span><br><span=
> Dana</span><br><span></span><br><span>-------------------------------------=
------------</span><br><span></span><br><span>A Survey of the SIFI Landscape=
</span><br><span></span><br><span>The landscape for the eight SIFIs today --=
Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morg=
an Chase, Morgan Stanley, State Street, and Wells Fargo -- is worth looking a=
t from various perspectives. &nbsp;Presidential candidates on both sides hav=
e made a point of criticizing =E2=80=9Ctoo big to fail=E2=80=9D banks, court=
proceedings are challenging regulators powers', members of Congress are deb=
ating whether to loosen Dodd-Frank Act SIFI rules, and a current Federal Res=
erve Bank president has spoken out in favor of breaking them up. &nbsp;But d=
o SIFIs pose the same threat they did in 2008?</span><br><span></span><br><s=
pan>The Power of DFA</span><br><span></span><br><span>President Obama hasn=E2=
=80=99t remained silent in the face of criticism of DFA. &nbsp;After the Mon=
day summit, Obama said that critics are spreading =E2=80=9Ccynicism=E2=80=9D=
: &nbsp;=E2=80=9CIt is popular =E2=80=A6 to suggest that the crisis happened=
and nothing changed. &nbsp;That is not true.=E2=80=9D &nbsp;The President c=
ited the 14 million new jobs created since his inauguration, proof, he said,=
that sensible regulations on Wall Street don=E2=80=99t stifle business grow=
th.</span><br><span></span><br><span>Two major business news stories from 20=
15 support the President=E2=80=99s view: &nbsp;</span><br><span></span><br><=
span>=C2=B7 &nbsp;&nbsp;General Electric continued to sell off GE Capital, i=
ts $42 billion investment arm, hoping to exit SIFI status in Q1 2016 as a re=
sult of its divestiture. &nbsp;</span><br><span></span><br><span>=C2=B7 &nbs=
p;&nbsp;MetLife has been embroiled in a legal battle with the Financial Stab=
ility Oversight Council (FSOC) since the regulator announced in December 201=
4 that the insurance company was considered a SIFI =E2=80=93 arguments were h=
eard in New York this January. </span><br><span></span><br><span>70 percent o=
f DFA has been implemented by the regulatory agencies since it was passed. &=
nbsp;&nbsp;Despite the constraints on SIFIs, they have by and large adapted w=
ell, making adjustments faster, earlier and more successfully=E2=80=9D than t=
heir overseas counterparts. </span><br><span></span><br><span>=C2=B7 &nbsp;&=
nbsp;SIFIs now hold much more capital now than they did before the crisis =E2=
=80=93 to the tune of $700 billion in additional capital, twice the amount p=
rior to it</span><br><span></span><br><span>=C2=B7 &nbsp;&nbsp;SIFIs have th=
ree times the liquidity they had before the crisis</span><br><span></span><b=
r><span>=C2=B7 &nbsp;&nbsp;Derivatives clearing houses force transparency on=
SIFI speculation, preventing over-exposure</span><br><span></span><br><span=
> =C2=B7 &nbsp;&nbsp;&nbsp;SIFIs now post collateral on their derivatives tra=
des</span><br><span></span><br><span>=C2=B7 &nbsp;&nbsp;&nbsp;SIFIs submit t=
o rigorous stress testing by the Federal Reserve and FDIC </span><br><span><=
/span><br><span>=C2=B7 &nbsp;&nbsp;&nbsp;SIFIs are being forced to draft =E2=
=80=9Cliving wills,=E2=80=9D which have already forced some to streamline or=
simplify so they can wind down without requiring a bailout</span><br><span>=
</span><br><span>Congressional Update</span><br><span></span><br><span>Congr=
ess is split between those who want to reduce regulatory pressure on big ban=
ks and those who would rather see it ramped up. &nbsp;Sen. Shelby, Senate Ba=
nking Chair, introduced the Financial Regulatory Improvement Act of 2015, a g=
rab-bag of exceptions and exemptions from regulations, mostly for banks with=
between $50 and $500 billion in assets. &nbsp;In a similar vein, Sens Warne=
r, Portman, and Collins introduced the Independent Agency Regulatory Analysi=
s Act to require that regulators undertake a cost-benefit analysis of any ru=
les they wish to implement.</span><br><span></span><br><span>On the flip sid=
e, Sens. McCain and Warren=E2=80=99s 21st Century Glass-Steagall Act propose=
s to split commercial and investment banks in a bid to finally kill off the T=
BTF problem. &nbsp;Sens. Warren and Vitter teamed up early in 2015 to introd=
uce a package of amendments to the Federal Reserve Act =E2=80=93- that bill n=
otably would set forward stricter regulations when an entity is considered i=
nsolvent, and therefore ineligible for Federal Reserve loans, as well as req=
uire that the Fed lend money to distressed institutions at market rates.</sp=
an><br><span></span><br><span>The Regulators' Agenda </span><br><span></span=
> <br><span>Under Basel III requirements for large banks to satisfy Liquidity=
Coverage Ratios (LCR) were adopted by a number of national regulators, incl=
uding the Federal Reserve. &nbsp;While the Fed has floated a rule change all=
owing some municipal bonds to count as High Quality Liquid Assets (HQLA), th=
at hasn=E2=80=99t stopped Rep. Luke Messer from proposing HR 2209 to force r=
egulators allow a greater share of munis to count as HQLA (see Update, Feb. 1=
8).</span><br><span></span><br><span>The Fed is also working on implementing=
a rule on Single-Counterparty Credit Limits (SCCL), setting boundaries on c=
redit exposure between large banks or major counterparties. &nbsp;The rule i=
s meant to prevent banks from becoming overexposed to other financial instit=
utions, preventing them from taking overly large losses in the event that th=
e counterparty fails. &nbsp;Analysts suspect that firms are nearly $100 bill=
ion over the limits imposed by this rule, but Yellen says it is necessary to=
set a =E2=80=9Cbright line=E2=80=9D on credit exposure.</span><br><span></s=
pan><br><span>SIFIs Moving Forward</span><br><span></span><br><span>There is=
no doubt that the upcoming MetLife ruling will be a critical pivot point fo=
r how regulators interact with SIFIs. &nbsp;If the FSOC is required to retra=
ct the firm=E2=80=99s SIFI status it will open the regulator up for a whole s=
lew of challenges from other banks and institutions. &nbsp;The fate of Congr=
essional proposals to restrict regulator=E2=80=99s efforts, either by determ=
ining rules for them or by burdening them with regulations of their own, sho=
uld be seen as the start of a potential sea change in the regulatory climate=
. &nbsp;During his Monday meeting, President Obama warned of this: "If there=
is a significant challenge in terms of regulating Wall Street and regulatin=
g our financial sector it is primarily coming from certain members of Congre=
ss who are consistently pressuring independent regulators to back off.=E2=80=
=9D</span><br><span></span><br><span>It is not a bad time to be a SIFI in Am=
erica =E2=80=93 it=E2=80=99s certainly much better to be one now than in 201=
0. &nbsp;While DFA has forced restructuring and streamlining to occur, event=
s like the GE Capital sell-off may prove to be exceptions that prove the rul=
e rather than the new normal for SIFIs, especially if MetLife wins its case a=
gainst regulators. &nbsp;President Obama was right to point to Congress as t=
he cause of regulatory gridlock; the political will seen after the economic c=
ollapse has largely evaporated, giving SIFIs far more breathing room and ope=
ning up opportunities to push through =E2=80=9Cregulatory reform=E2=80=9D me=
asures.</span><br><span></span><br><span>___________________________________=
__</span><br><span></span><br><span>Upcoming/Recent Updates</span><br><span>=
</span><br><span>=E2=80=A2 &nbsp;&nbsp;Thurs -- &nbsp;Financial Reg. Nominat=
ions</span><br><span>=E2=80=A2 &nbsp;&nbsp;Fri -- Update on Tax Bills</span>=
<br><span>=E2=80=A2 &nbsp;&nbsp;Mon --</span><br><span></span><br><span> &nb=
sp;&nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br><span> &nbsp;&nbsp;=E2=80=
=A2 &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span> &nbsp;&nbsp;=E2=80=A2=
&nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Survey of the S=
IFI Landscape (Mar 8)</span><br><span>Michigan and the Meaning of Flint &nbs=
p;(Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><br><span>Municipal=
Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions=
&amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(=
Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span=
> <br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Do=
es DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Cu=
stoms Bill &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(=
Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><spa=
n>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &=
nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb.2)</span><br><=
span></span><br><span>___________________ </span><br><span></span><br><span>=
Mike &amp; Co. &nbsp;--</span><br><span></span><br><span>Tomorrow=E2=80=99s M=
ichigan primary election may end up being "yugge" if it seriously opens up t=
he possibility that Trump can put the state in play in November -- =E2=80=9C=
A normal Republican cannot think of bringing in Michigan,=E2=80=9D said Trum=
p -- nothing any other GOP presidential candidate could do, now, or for the p=
ast 25 years. </span><br><span></span><br><span>Flint crystallizes so many o=
f the issues that give rise to this new tectonic possibility. &nbsp;There ha=
d to be a debate in Flint because there had to be a debate about it... and t=
he Secretary deserves far more credit than she's getting for making sure it h=
appened. </span><br><span></span><br><span>In Washington, the Senate is read=
ying to vote on a bipartisan package for drinking water aid. &nbsp;It=E2=80=99=
s not a slam dunk, however, as Mike Lee has maintained a hold on the bill, s=
aying political grandstanding is taking the place of policy. &nbsp;More on a=
ll this below. </span><br><span></span><br><span>Best,</span><br><span></spa=
n><br><span>Dana</span><br><span>______________________________________</spa=
n><br><span></span><br><span></span><br><span>Flint -- Bills and Broad Strok=
es</span><br><span></span><br><span>The Michigan legislature approved in Jan=
uary a $28 million appropriation to provide immediate aid to Flint. &nbsp;So=
me critics maintain that the need to do so demonstrates the sorry condition o=
f the state=E2=80=99s tax policy. &nbsp;</span><br><span></span><br><span>Th=
e tax base in Flint was eroded significantly during the 1980=E2=80=99s and 9=
0=E2=80=99s as industry jobs left and the population fell. &nbsp;To deal wit=
h the resulting fiscal imbalance the Flint city manager was instructed to cu=
t costs =E2=80=93 he did so partly by switching the source of Flint=E2=80=99=
s drinking water. The broad and deep cuts to state and local budgets affecte=
d basic public services most profoundly. &nbsp;Now, as a direct cause of the=
se cuts, the residents of Flint are grappling with an issue no American ever=
considered possible =E2=80=93 they do not have access to fresh drinking wat=
er.</span><br><span></span><br><span>For all the talk of federal aid in infr=
astructure financing there must be a place made for regular tax payers. &nbs=
p;These people bear a significant portion of direct funding for infrastructu=
re projects both in their states and municipalities. &nbsp;When those tax re=
venues are redirected, or when state spending is cut to the point that basic=
services can=E2=80=99t be provided then taxpayers are right to question wha=
t, in fact, their taxes are paying for. &nbsp;</span><br><span></span><br><s=
pan>Congressional update:</span><br><span></span><br><span>At the insistence=
of Democrats, the Flint agreement has been attached to a Senate energy bill=
introduced by Sen. Murkowski, S. 2012, which is next in line in the Senate f=
ollowing the opioid addiction bill. &nbsp;The energy bill will be voted on s=
oon, providing that things moves quickly (not a sure bet, since Dems may wan=
t to vote on certain amendments to the opioid bill). &nbsp;Despite these pot=
ential hang ups, Senate leadership hopes to wrap up the energy bill by the e=
nd of the week =E2=80=93 giving them some breathing room before the Senate a=
djourns for Easter recess by March 21. </span><br><span></span><br><span>Whi=
le Sen. Cruz lifted his hold on the bill last week, Mike Lee has continued t=
o block movement on the legislation. &nbsp;Sen. Lee is claiming that federal=
aid is not necessary to deal with Flint: =E2=80=9CThe state of Michigan has=
an enormous budget surplus this year and a large rainy-day fund, totaling h=
undreds of millions of dollars," the Senator said in a statement.</span><br>=
<span></span><br><span>Flint agreement:</span><br><span></span><br><span>The=
bill provides $250 million to assist the residents of Flint, Michigan and o=
ther American cities experiencing critical problems with their water supplie=
s by increasing funding for Drinking Water Act State Revolving Funds and pro=
vide start-up funding for the new Water Infrastructure Finance and Innovatio=
n Act. &nbsp;It includes:</span><br><span></span><br><span>=C2=B7 &nbsp;&nbs=
p;&nbsp;&nbsp;&nbsp;&nbsp;$100 million for Drinking Water State Revolving Fu=
nds (SRFs) accessible by any state with a drinking water emergency. &nbsp;It=
requires states to submit plans explaining how the money will be spent to a=
ddress the emergency before funding is provided. &nbsp;&nbsp;Funds that rema=
in after 18 months will be distributed to all states under the existing SRF f=
ormula. </span><br><span></span><br><span>=C2=B7 &nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;$70 million in funding to back secured loans made under the new Wat=
er Infrastructure Finance and Innovation Act (WIFIA). &nbsp;A federal invest=
ment of $70 million could support secured loans of up to $4.2 billion to add=
ress water and wastewater infrastructure needs across the country, according=
to Sen. Inhofe=E2=80=99s office. &nbsp;All states and all communities with c=
lean water and drinking water infrastructure needs are eligible for this ass=
istance. </span><br><span></span><br><span>=C2=B7 &nbsp;&nbsp;&nbsp;&nbsp;&n=
bsp;&nbsp;$50 million for various in authorized health programs for national=
use to address and prevent impacts from exposure to lead. </span><br><span>=
</span><br><span>=E2=80=9CFlint=E2=80=9D is more than Flint</span><br><span>=
</span><br><span>Flint is a crisis of governance =E2=80=93 there is a discon=
nect in the relationship between citizens and government, and it bridges eve=
ry demographic. &nbsp;Just as the poor drink water so do the wealthy, and wh=
en a service as basic and fundamental is undermined to the point that an ent=
ire town of nearly a hundred thousands is poisoned by its own government, vo=
ters will express themselves, given the chance. </span><br><span></span><br>=
<span>Residents, customers, consumers, taxpayers =E2=80=93- citizens at the e=
nd of the day &nbsp;=E2=80=93- are seeing their government in a significantl=
y different light and thus far are voting differently this year accordingly.=
Donald Trump would not likely be able to put Michigan in play without this n=
ew perspective animation politics in Michigan as much as anywhere. </span><b=
r><span></span><br><span>_____________________________________</span><br><sp=
an></span><br><span>Upcoming/Recent Updates</span><br><span></span><br><span=
> =E2=80=A2 &nbsp;&nbsp;Tues -- &nbsp;Financial Reg. Nominations</span><br><s=
pan>=E2=80=A2 &nbsp;&nbsp;Wed -- &nbsp;SIFIs and the Fed</span><br><span>=E2=
=80=A2 &nbsp;&nbsp;Thurs -- Update on Tax Bills</span><br><span></span><br><=
span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br><span> &nbsp;&=
nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax Reform</span><br><span> &nbsp;&nbsp;=E2=80=
=A2 &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span> &nbsp;&nbsp;=E2=80=A2=
&nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Michigan and th=
e Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><b=
r><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill:=
&nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Ha=
ndicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbs=
p;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </=
span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>B=
elow the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International T=
ax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 1=
0)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax T=
alk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Fe=
b. 2)</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br>=
<span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br><span>Debate My=
ths Challenged &nbsp;(Jan. 25)</span><br><span>Regulating the Regulators &nb=
sp;(Jan. 21)</span><br><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</=
span><br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><span>2016 Tax Age=
nda on the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Steagall, Take 2 &nbsp=
;(Jan. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br><=
span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><span>Sanders' Fin R=
eg Proposals &nbsp;(Jan. 5)</span><br><span>Year-End Review: Fiscal Policy (=
Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Revie=
w (Dec. 15)</span><br><span>Omnibus Situation &nbsp;(Dec. 14)</span><br><spa=
n></span><br><span>------</span><br><span></span><br><span>Mike &amp; Co. --=
</span><br><span>The February jobs report came out this morning better than e=
xpected. &nbsp;&nbsp;Once again, the US economy maintained strong job growth=
without wage gains. &nbsp;Wages fell 0.1 percent in February, but 242,000 p=
ositions were added to the economy, marking 72 months of uninterrupted job g=
ains =E2=80=93 the longest streak on record. </span><br><span></span><br><sp=
an>Additionally, labor participation rose by 1.5 million Americans since Nov=
ember =E2=80=93 making it the highest it has been in 16 years (62.9 percent o=
f the overall share of Americans).</span><br><span></span><br><span>The repo=
rt from Puerto Rico is not as sunny. &nbsp;The territory is still waiting on=
a Congressional bill designed to handle the ongoing debt crisis on the isla=
nd. &nbsp;More &nbsp;below.</span><br><span></span><br><span>Best,</span><br=
> <span></span><br><span>Dana</span><br><span></span><br><span>______________=
________________________</span><br><span></span><br><span>Puerto Rico=E2=80=99=
s Time Bomb</span><br><span></span><br><span>The Puerto Rican debt crisis ha=
s been an ongoing concern for both Congress, Wall Street and the Obama admin=
istration for some years now =E2=80=93 the territory=E2=80=99s bond ratings h=
ave been steadily dropping into the junk category and fell from A- in 2005 t=
o CCC+ last April. &nbsp;At the heart of the matter is $70 billion in bonds t=
hat Puerto Rico owes and says it cannot pay on. </span><br><span></span><br>=
<span>Because Puerto Rican bonds are tax exempt in all 50 states and the Dis=
trict of Columbia, making them incredibly popular investments for mutual fun=
ds, pensioners, and big banks. &nbsp;Over 20 percent of mutual funds in the U=
nited States hold at least some Puerto Rican bonds, with $11.3 billion in po=
rtfolio, with a further $15 billion in bonds held by hedge funds. &nbsp;Now t=
hat the territory=E2=80=99s bonds are in the =E2=80=9Cjunk=E2=80=9D category=
, pension funds and insurance firms are unable to hold them any longer.</spa=
n><br><span></span><br><span>The diverse list of bond holders has thrown a w=
rench into the plans of those who would rather allow Puerto Rico to default o=
n its obligations =E2=80=93 something which would require legislative action=
(the territory doesn=E2=80=99t have that luxury, unlike states). &nbsp;If P=
uerto Rico is allowed to renege on its contractual agreements, the argument g=
oes, then it creates a moral hazard for other entities to do the same rather=
than make the tough choices necessary to honor their obligations. &nbsp;The=
fact that many of these bonds are essentially held by ordinary Americans (t=
hrough mutual funds and pensions) makes the argument all that stronger for m=
any representatives. &nbsp;A state hasn=E2=80=99t declared bankruptcy since A=
rkansas did so in 1933.</span><br><span></span><br><span>Moral hazard is inh=
erent in a debt restructuring deal; here, the path for Puerto Rico toward ca=
pital markets after anything of the sort would still be an especially painfu=
l one (see: Argentina). &nbsp;Additionally, there are few serious proposals t=
o grant the island full Chapter 9 status. &nbsp;Most opt instead for some fo=
rm of negotiated haircut agreement combined with extending maturities on the=
bonds; these proposals are likely to succeed, considering Puerto Rico is al=
most certainly unable to maintain its bond payment schedule without a restru=
cturing agreement.</span><br><span></span><br><span>Administration Position<=
/span><br><span></span><br><span>Testifying before the House Committee on Na=
tural Resources on Feb 25, Treasury official Antonio Weiss warned lawmakers t=
hat Puerto Rico needs =E2=80=9Can immediate solution=E2=80=9D if it=E2=80=99=
s to survive past May 1, when a $470 million bond payment is due. &nbsp;Soon=
after that, on July 1, a $1.9 billion bond payment will come due as well =E2=
=80=93 Puerto Rican representatives have already declared they cannot meet t=
hose payments without assistance.</span><br><span></span><br><span>Weiss lai=
d out the administration=E2=80=99s two-part plan: first the territory must b=
e allowed to restructure its debt obligations, second a fiscal oversight boa=
rd should be established to assist the island with managing its finances. &n=
bsp;Importantly, Weiss stopped short of advocating for bankruptcy protection=
for Puerto Rico and told the committee that =E2=80=9Can advisory board is n=
ot adequate to do the job=E2=80=9D alone. &nbsp;</span><br><span></span><br>=
<span>House Democrats voiced concern over the financial oversight board, Rep=
. Luis Guti=C3=A9rrez: =E2=80=9CThey=E2=80=99re saying that there=E2=80=99s a=
joint responsibility, but it seems to me that all of the responsibility is b=
eing weighed on the people of Puerto Rico.=E2=80=9D &nbsp;</span><br><span><=
/span><br><span>Meanwhile Republicans claimed that any plan to restructure P=
uerto Rican debt was a non-starter; a few hours after the hearing the Republ=
ican Study Committee announced it would oppose any plan including such a pro=
vision. &nbsp;"Changing the rules mid-game would be unfair to Puerto Rico=E2=
=80=99s creditors who entered into these arrangements with agreed upon terms=
and would delegitimize future transactions," said RSC Chairman Bill Flores.=
</span><br><span></span><br><span>Policy Options</span><br><span></span><br>=
<span>Until recently the two parties have maintained starkly contrasting vie=
ws on how to best deal with Puerto Rico=E2=80=99s debt crisis =E2=80=93 Demo=
crats have pushed for a forced debt restructuring, with some calling for the=
island to be granted Chapter 9 bankruptcy protections, meanwhile Republican=
s called for a financial oversight council to make the tough fiscal decision=
s necessary for Puerto Rico to maintain its debt obligations without renegin=
g on its agreements.</span><br><span></span><br><span>The administration, th=
rough Weiss, has advocated a middle of the road approach. By adopting both p=
roposals and avoiding the further edges of each (no bankruptcy, and no unacc=
ountable board staffed by Wall Streeters), the administration hopes to find c=
ompromise between each group. &nbsp;And it seems like it might work.</span><=
br><span></span><br><span>Finding Compromise</span><br><span></span><br><spa=
n>Recently, however, the conservative stance against debt restructuring has l=
essened =E2=80=93 with some Republicans saying that they could support a PR b=
ill as long as it doesn=E2=80=99t include Chapter 9 bankruptcy. &nbsp;House N=
atural Resources chair Bob Bishop has been working on a bill for Puerto Rico=
that does include some element of debt restructuring, and recently said =E2=
=80=9C=E2=80=9CI=E2=80=99m sure RSC will be satisfied with what we do =E2=80=
=A6 to say that some element of [debt restructuring] could be in there, yeah=
.=E2=80=9D &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span><br>=
<span>The House is still sticking to its end of March deadline set by Speake=
r Ryan for putting forward a final bill on Puerto Rico on the floor for a vo=
te. </span><br><span></span><br><span>_____________________________________<=
/span><br><span></span><br><span>Upcoming/Recent Updates</span><br><span></s=
pan><br><span>=E2=80=A2 &nbsp;&nbsp;Thurs -- Municipal Finance Caucus</span>=
<br><span>=E2=80=A2 &nbsp;&nbsp;Fri -- Puerto Rico</span><br><span>=E2=80=A2=
&nbsp;&nbsp;Mon -- FY17</span><br><span>=E2=80=A2 &nbsp;&nbsp;Tues -- 13 D R=
egs</span><br><span>=E2=80=A2 &nbsp;&nbsp;Wed -- &nbsp;TBD</span><br><span><=
/span><br><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;SBC Nominations</span><br=
> <span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br><span> &nbsp=
;&nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax Reform</span><br><span> &nbsp;&nbsp;=E2=
=80=A2 &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span> &nbsp;&nbsp;=E2=80=
=A2 &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Michigan and=
the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span=
> <br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bi=
ll: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills=
Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &=
nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18)=
</span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><spa=
n>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>Internationa=
l Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb=
. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Ta=
x Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp=
;(Feb. 2)</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span>=
<br><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br><span>Debat=
e Myths Challenged &nbsp;(Jan. 25)</span><br><span>Regulating the Regulators=
&nbsp;(Jan. 21)</span><br><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 2=
0)</span><br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><span>2016 Tax=
Agenda on the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Steagall, Take 2 &=
nbsp;(Jan. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><=
br><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><span>Sanders' Fi=
n Reg Proposals &nbsp;(Jan. 5)</span><br><span>Year-End Review: Fiscal Polic=
y (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Re=
view (Dec. 15)</span><br><span>Omnibus Situation &nbsp;(Dec. 14)</span><br><=
span>FY 2016 Omnibus Talks (Dec. 10)</span><br><span>Customs Bill &nbsp;(Dec=
. 8)</span><br><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br><sp=
an>Brown on HFT &nbsp;(Dec. 4)</span><br><span>Shelby 2.0 Update &nbsp;(Dec.=
3)</span><br><span></span><br><span>________</span><br><span></span><br><sp=
an>Mike &amp; Co. --</span><br><span></span><br><span>In half an hour, the B=
LS jobs report for February is due to be released. &nbsp;If you'd like an up=
date or have any questions, please let me know. </span><br><span></span><br>=
<span>Meanwhile, amid the most fractious campaign in recent history comes an=
initiative in Congress that sounds, well, incongruous with the cacophany. &=
nbsp;A broad and bipartisan group of House members is behind the official la=
unch of a caucus this week dedicated to protecting and expanding the tax exe=
mption enjoyed by municipal debt. </span><br><span></span><br><span>You have=
to start somewhere and why not with incentives to address the nation's long=
-neglected infrastructure with tax breaks -- about the only kind of stimulus=
and jobs measure that can garner bipartisan support? &nbsp;&nbsp;More on th=
e new Municipal Finance Caucus below. &nbsp;</span><br><span></span><br><spa=
n>Best,</span><br><span></span><br><span>Dana</span><br><span></span><br><sp=
an>_____________________________________</span><br><span>A New Caucus</span>=
<br><span></span><br><span>On Tuesday, Reps. Randy Hultgren and Dutch Rupper=
sberger announced that they have formed the Municipal Finance Caucus to prot=
ect the tax-exempt status of municipal debt and reexamine the way it is trea=
ted in financial regulations. &nbsp;In 2015, Hultgren and Ruppersberger sent=
a letter (reprinted below) to House leadership opposing the President=E2=80=
=99s proposed 28 percent cap on tax deductions for municipal bonds, signed b=
y over 120 of their colleagues. &nbsp;</span><br><span></span><br><span>Thei=
r announcement coincided with the National Association of State Treasurers=E2=
=80=99 legislative conference in D.C. The same group drafted another letter,=
signed by more than 600 state and local officials, which urges the leaders o=
f the House Ways and Means Committee and the Senate Finance Committee to rej=
ect curbs to the muni exemption. </span><br><span></span><br><span>Who=E2=80=
=99s in it?</span><br><span></span><br><span>Right now just the founding rep=
resentatives have declared their official membership, but it=E2=80=99s fores=
eeable that some of the 120 representatives that signed the letter to House l=
eadership in 2015 will join as well. &nbsp;It=E2=80=99s also seen a s likely=
that some Senators will want to join the caucus, but the founders haven't m=
ade clear if bicameral membership is a priority.</span><br><span></span><br>=
<span>Is it Bipartisan?</span><br><span></span><br><span>Since 2013 Hultgren=
and Ruppersberger have led bipartisan efforts to draft letters of support f=
or municipal bonds. &nbsp;The signatories to these letters include members f=
rom both sides of the aisle. &nbsp;Rep. Ruppersberger focuses mostly on loca=
l government and is pretty moderate. Rep. Hultgren is a more orthodox conser=
vative Republican. </span><br><span></span><br><span>What=E2=80=99s the Purp=
ose?</span><br><span></span><br><span>The Caucus plans to defend municipal b=
onds=E2=80=99 tax exempt status and advocate for regulatory changes which fa=
vor those bonds. &nbsp;Proposals to limit the tax-exempt status of these bon=
ds have been floated in recent years. </span><br><span></span><br><span>In a=
ddition to calling for the bonds to maintain their tax preferred status, the=
Caucus will push for the passage of HR 2209, legislation considering munici=
pal bonds as a High Quality Liquid Asset (HQLA) =E2=80=93 a particularly con=
tentious issue because of the disagreement over how flexible these liquidity=
rules should be from a systemic risk perspective. </span><br><span></span><=
br><span>Positions Taken to Date</span><br><span></span><br><span>The Caucus=
founders have opposed Obama=E2=80=99s 2015 proposal to cap municipal bond t=
ax exemption at 28 percent. Rep. Hultgren is also a co-sponsor of HR 2209 =E2=
=80=93 the bill to set the liquidity for municipal bond assets at Level 2A (=
see Update, Feb. 18). &nbsp;Hultgren said the liquidity rules are an example=
of how regulators misunderstand municipal bonds, specifically the frequent s=
erial structure of the their issuances.</span><br><span></span><br><span>Man=
y investors flock to municipal bonds for security. But some federal regulato=
rs trying to shore up the banking system aren't convinced the bonds would be=
easy to sell in a crisis. </span><br><span></span><br><span>Division of Opi=
nion</span><br><span></span><br><span>Division of opinion on HR 2099 falls a=
long unusual lines, with Wall Street, Congress and municipal officials chall=
enging bank regulators' skepticism toward municipal debt. &nbsp;&nbsp;At iss=
ue are new rules aimed at ensuring banks can raise enough cash during a fina=
ncial-market meltdown to fund their operations for 30 days. The requirements=
mean banks have to hold more cash or securities that are easily sellable. <=
/span><br><span></span><br><span>Regulators don't think it is the place of C=
ongress to second guess how they size up securities. Fed Chairwoman Janet Ye=
llen, at a congressional hearing Feb. 11, said legislation would "interfere w=
ith our supervisory judgments." </span><br><span></span><br><span>Big banks s=
uch as Citigroup Inc. and Wells Fargo &amp; Co. have sprung into action in l=
obbying Congress, along with municipal leaders who fret the rules will dimin=
ish bank bond-buying which could raise borrowing costs on infrastructure pro=
jects.</span><br><span></span><br><span>Hultgren also said the caucus will w=
ork to update the number of projects that could be financed by qualified sma=
ll issue manufacturing bonds, a type of private-activity bond whose proceeds=
can be used to finance manufacturing facilities for small- and mid-sized ma=
nufacturers. The tax code provisions on small industrial development bonds h=
ave not been changed since the 1980s, he said. Hultgren sponsored a bill las=
t year entitled =E2=80=9CThe Modernizing American Manufacturing Bonds Act,=E2=
=80=9D which was focused on expanding opportunities for qualified small issu=
e manufacturing bonds, particularly by changing the national volume cap set b=
y Congress. </span><br><span></span><br><span>What can be achieved?</span><b=
r><span></span><br><span>Caucuses such as this one don't have the best reput=
ation when it comes to getting things done. &nbsp;But rules relating to the l=
iquidity value of capital is one of the few policy &nbsp;areas of any kind w=
here there is bipartisan agreement. &nbsp;Municipal bonds, in particular, ha=
ve a universal appeal because of their direct link to local and state infras=
tructure projects. &nbsp;At the very least, the caucus will spark some discu=
ssion about the best way to both reform existing methods for funding infrast=
ructure investment and find new ways to fund it. </span><br><span></span><br=
> <span>_________________________________</span><br><span></span><br><span>Re=
cent/Planned Updates</span><br><span></span><br><span>=E2=80=A2 &nbsp;&nbsp;=
Thurs -- Municipal Finance Caucus</span><br><span>=E2=80=A2 &nbsp;&nbsp;Fri -=
- Puerto Rico</span><br><span>=E2=80=A2 &nbsp;&nbsp;Mon -- FY17</span><br><s=
pan>=E2=80=A2 &nbsp;&nbsp;Tues -- 13 D Regs</span><br><span>=E2=80=A2 &nbsp;=
&nbsp;Wed -- &nbsp;TBD</span><br><span></span><br><span> &nbsp;&nbsp;=E2=80=A2=
&nbsp;&nbsp;SBC Nominations</span><br><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&n=
bsp;ERI/Housing</span><br><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax R=
eform</span><br><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;EU/US Derivatives D=
eal</span><br><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;Pension Crisis</span>=
<br><span></span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><b=
r><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><sp=
an>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the=
Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update=
&nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17=
)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><s=
pan>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds S=
teady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </s=
pan><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending D=
odd-Frank &nbsp;(Feb. 2)</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (=
Jan. 28)</span><br><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span>=
<br><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br><span>Regulating=
the Regulators &nbsp;(Jan. 21)</span><br><span>Sanders' Tax/Healthcare Poli=
cy &nbsp;(Jan 20)</span><br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br=
> <span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Ste=
agall, Take 2 &nbsp;(Jan. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(=
Jan. 8)</span><br><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><=
span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br><span>Year-End Revi=
ew: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29</=
span><br><span></span><br><blockquote type=3D"cite"><span>On Mar 2, 2016, at=
9:39 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachasin@gmail.=
com</a>&gt; wrote:</span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><span>Mike &amp; Co. --</spa=
n><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><=
blockquote type=3D"cite"><span>I hope everyone's had a chance to reflect on t=
he magnitude of yesterday's hard fought primary wins -- with gratitude to th=
ose who toiled in the field. </span><br></blockquote><blockquote type=3D"cit=
e"><span></span><br></blockquote><blockquote type=3D"cite"><span>On Saturday=
night, the campaign debate turns to Flint, Michigan -- to the town and the i=
ssues it has come to symbolize. &nbsp;&nbsp;The town's water contamination a=
nd related problems finally move center stage. </span><br></blockquote><bloc=
kquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"=
> <span>Congress has moved with uncommon alacrity and bipartisanship in recen=
t weeks on legislation to direct funding to address the water issue in Flint=
and elsewhere. &nbsp;&nbsp;Here, we look at the bill's provisions, its fund=
ing steam, and its prospects. &nbsp;</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Best=
,</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockq=
uote><blockquote type=3D"cite"><span>Dana</span><br></blockquote><blockquote=
type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span=
> The Flint Bill -- Provisions &amp; Prospects</span><br></blockquote><blockq=
uote type=3D"cite"><span>A bipartisan deal has been reached in the Senate la=
st week to aid the beleaguered city of Flint, Michigan as it tries to remedy=
its drinking water issues. &nbsp;Sen. Inhofe, the lead GOP Senator on the b=
ill, called it =E2=80=9Ccommon-sense," and noted that the spending is alread=
y programmed and involves no supplemental appropriation. &nbsp;&nbsp;The bil=
l may be ready to move forward after Sen. Cruz lifted a hold he had placed o=
n the bill last week. &nbsp;Sen. Mike Lee is still a hold-out. </span><br></=
blockquote><blockquote type=3D"cite"><span>The bill provides $250 million to=
assist the residents of Flint, Michigan and other American cities experienc=
ing critical problems with their water supplies by increasing funding for Dr=
inking Water Act State Revolving Funds and provide start-up funding for the n=
ew Water Infrastructure Finance and Innovation Act. &nbsp;It also provides:<=
/span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp=
;$100 million for Drinking Water State Revolving Funds (SRFs) accessible by a=
ny state with a drinking water emergency. &nbsp;It requires states to submit=
plans explaining how the money will be spent to address the emergency befor=
e funding is provided. &nbsp;&nbsp;Funds that remain after 18 months will be=
distributed to all states under the existing SRF formula. </span><br></bloc=
kquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;$70 million in f=
unding to back secured loans made under the new Water Infrastructure Finance=
and Innovation Act (WIFIA). &nbsp;A federal investment of $70 million could=
support secured loans of up to $4.2 billion to address water and wastewater=
infrastructure needs across the country, according to Sen. Inhofe=E2=80=99s=
office. &nbsp;All states and all communities with clean water and drinking w=
ater infrastructure needs are eligible for this assistance. </span><br></blo=
ckquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;$50 million fo=
r various in authorized health programs for national use to address and prev=
ent impacts from exposure to lead. </span><br></blockquote><blockquote type=3D=
"cite"><span>Where will the money come from? &nbsp;&nbsp;The package has bee=
n fully paid for -- it redirects appropriations by taking funds from the Adv=
anced Technology Vehicles Manufacturing (ATVM) Fund, which offers loans for a=
uto companies. </span><br></blockquote><blockquote type=3D"cite"><span>Does t=
hat matter? &nbsp;&nbsp;Per Sen. Inhofe =E2=80=9C[the ATVM is] a failed prog=
ram that hasn=E2=80=99t been used in more than a year and has only issued fi=
ve loans since 2008."</span><br></blockquote><blockquote type=3D"cite"><span=
> More on ATVM: The ATVM program is authorized to award up to $25 billion in l=
oans; there is no deadline for completing such loan commitments. Congress fu=
nded the program in 2009, when it appropriated $7.5 billion to cover the sub=
sidy cost for the $25 billion in loans, as well as $10 million for program i=
mplementation. Since the start of the program, DOE has awarded $8.4 billion i=
n loans to five companies. As of January 2015, ATVM has $16.6 billion in rem=
aining loan authority. No new loans have been made since 2011. Two companies=
=E2=80=94 Fisker and the Vehicle Production Group =E2=80=94 were unable to m=
ake payments on their loans, and DOE auctioned the loans off in the fall of 2=
013. Tesla paid off all of its loan in 2013, nine years ahead of schedule. <=
/span><br></blockquote><blockquote type=3D"cite"><span>Criticisms of ATVM: T=
he unobligated funds remaining for the program have been a point of contenti=
on in recent appropriations debates. The House has voted several times to tr=
ansfer some of the unused appropriation for the ATVM subsidy costs to other p=
urposes. None of these transfers were enacted. Other legislators have sought=
to expand the program. Two recent federal reports call for rescinding the p=
rogram=E2=80=99s unobligated balance: the FY2015 budget resolution reported b=
y the House Budget Committee calls for outright rescission, and an April 201=
4 GAO report recommends Congress consider taking the same step unless DOE ca=
n generate new demand for the program.</span><br></blockquote><blockquote ty=
pe=3D"cite"><span>Legislative Strategy: &nbsp;&nbsp;Architects of the bipart=
isan deal put out a hotline request to see if anyone would object to a serie=
s of procedural moves that would split Flint aid off the energy bill (S. 201=
2), attach it to a House bill (H.R. 4470) sponsored by Reps. Dan Kildee and =
Fred Upton, allow voice votes on 30 amendments to the energy bill, and allow=
roll call votes on eight additional amendments. Michigan Sens. Debbie Stabe=
now and Gary Peters said Democrats are on board, but in order to achieve una=
nimous consent, Republicans need to sign on. </span><br></blockquote><blockq=
uote type=3D"cite"><span>Will it pass? &nbsp;The Flint package and the energ=
y bill amendments would come to a vote only after the Senate gets unanimous c=
onsent to some procedural maneuvers. Lee's hold went unnoticed earlier when G=
OP presidential candidate Sen. Ted Cruz had a hold of his own, which he has n=
ow lifted. The Senate had hoped to hold votes on Flint and end debate on the=
energy bill as early as next week. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs=
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n=
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs=
p;&nbsp;&nbsp;</span><br></blockquote><blockquote type=3D"cite"><span>What=E2=
=80=99s Next? &nbsp;&nbsp;Sen. Stabenow, a key leader on the bill, predicted=
that =E2=80=9Cone way or another=E2=80=9D the package would be voted on in t=
he Senate this week. &nbsp;And while the House hasn't decided what it will d=
o if the Flint bill clears the Senate, Energy and Commerce Committee Chairma=
n Fred Upton said it would move quickly.</span><br></blockquote><blockquote t=
ype=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>T=
he Obama administration, which declared Flint a federal emergency in January=
freeing up much-needed funds for the distressed city, has not issued an off=
icial stance on the Flint deal. &nbsp;Early in the year the President also m=
ade available to the state of Michigan $80 million from a revolving fund for=
infrastructure repair and improvement. &nbsp;</span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span>A number of important events are scheduled for the month of March, lis=
ted below.</span><br></blockquote><blockquote type=3D"cite"><span></span><br=
> </blockquote><blockquote type=3D"cite"><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;M=
arch 3 -- Flint is supposed to begin its lead service line replacement proje=
ct.</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bloc=
kquote><blockquote type=3D"cite"><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;March 6 -=
- The 7th Democratic debate will take place in the city of Flint, MI. &nbsp;=
</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockqu=
ote><blockquote type=3D"cite"><span> &nbsp;=E2=80=A2 &nbsp;March 15 -- &nbsp=
;House Committee on Oversight and Government Reform will hold its next heari=
ng on the Flint crisis. &nbsp;On schedule is testimony on the Safe Drinking W=
ater Act (SDWA) by various policy professionals.</span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;March 17 -- &nbsp;Hearings resume on SD=
WA oversight, with Michigan Governor Rick Snyder and EPA Administrator Gina M=
cCarthy scheduled to testify.</span><br></blockquote><blockquote type=3D"cit=
e"><span></span><br></blockquote><blockquote type=3D"cite"><span>Upcoming/Re=
cent Updates</span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;Wed --=
Flint </span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nb=
sp;&nbsp;Thurs -- Municipal Finance Caucus</span><br></blockquote><blockquot=
e type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;Fri -- Puerto Rico</span><br></b=
lockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquot=
e type=3D"cite"><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;Budget Irresolution=
</span><br></blockquote><blockquote type=3D"cite"><span> &nbsp;&nbsp;=E2=80=A2=
&nbsp;13 D Regs</span><br></blockquote><blockquote type=3D"cite"><span> &nb=
sp;&nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br></blockquote><blockquot=
e type=3D"cite"><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax Reform</sp=
an><br></blockquote><blockquote type=3D"cite"><span> &nbsp;&nbsp;=E2=80=A2 &=
nbsp;&nbsp;EU/US Derivatives Deal</span><br></blockquote><blockquote type=3D=
"cite"><span> &nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;Pension Crisis</span><br></b=
lockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquot=
e type=3D"cite"><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) <=
/span><br></blockquote><blockquote type=3D"cite"><span>Top Tax Bills Handica=
pped &nbsp;(Feb. 24)</span><br></blockquote><blockquote type=3D"cite"><span>=
Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br></blockquote><blockq=
uote type=3D"cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) </spa=
n><br></blockquote><blockquote type=3D"cite"><span>Does DFA Fail on Too Big t=
o Fail? (Feb. 17)</span><br></blockquote><blockquote type=3D"cite"><span>Bel=
ow the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquot=
e type=3D"cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></b=
lockquote><blockquote type=3D"cite"><span>The Fed Holds Steady &nbsp;(Feb. 1=
0)</span><br></blockquote><blockquote type=3D"cite"><span>Obama's FY17 Budge=
t &nbsp;(Feb. 9) </span><br></blockquote><blockquote type=3D"cite"><span>Tax=
Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type=3D"=
cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><bloc=
kquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span=
> <br></blockquote><blockquote type=3D"cite"><span>The Fed Holds Rates, for N=
ow &nbsp;(Jan. 28)</span><br></blockquote><blockquote type=3D"cite"><span>De=
bate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote typ=
e=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></block=
quote><blockquote type=3D"cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(=
Jan 20)</span><br></blockquote><blockquote type=3D"cite"><span>HRC's Tax Pol=
icy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type=3D"cite"><span>2=
016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquot=
e type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blo=
ckquote><blockquote type=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8=
)</span><br></blockquote><blockquote type=3D"cite"><span>Sanders Proposals/G=
S &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type=3D"cite"><span=
> Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquot=
e type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End=
Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br>=
</blockquote><blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 1=
4)</span><br></blockquote><blockquote type=3D"cite"><span>FY 2016 Omnibus Ta=
lks (Dec. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Customs=
Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type=3D"cite"><span>=
Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote=
type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blo=
ckquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote t=
ype=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>M=
ike &amp; Co. </span><br></blockquote><blockquote type=3D"cite"><span>This h=
as been a busy week in Washington especially on the tax front, with more to f=
ollow. &nbsp;We've already seen a number of hearings and developments on the=
most salient current tax bills and related proposals in the last two days, w=
hich are &nbsp;itemized and vetted for viability below.</span><br></blockquo=
te><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Tomorrow, an assessment of which of these, as well as "must-pas=
s" tax items such as the expiring extenders, will make it to Obama's desk by=
year-end and a review of Brookings' panel discussion, "Tax policy in 2016: W=
hat's new and what's next," with Ways and Means Chair Kevin Brady and Senate=
Finance ranking member Ron Wyden. </span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Best,</=
span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquot=
e><blockquote type=3D"cite"><span>Dana</span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>__=
____________________________________</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span> =E2=
=80=A2 International Tax Reform --</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Probabl=
y the most likely tax legislation to pass in 2016, even though it's still ca=
lled unlikely by key policymakers. &nbsp;The two parties will have difficult=
y coming to an agreement on first what to do and then how to do it. &nbsp;Na=
rrower legislation is more likely to succeed than comprehensive reform. &nbs=
p;Most viable bills in this area:</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2=
&nbsp;Earnings Stripping -- &nbsp;On the eve of today=E2=80=99s Ways and Me=
ans hearing regarding international tax reform, &nbsp;ranking member Chris V=
an Hollen and senior member Sander Levin offered bills to constrain the prac=
tice whereby foreign parent companies extend large loans to their newly acqu=
ired U.S. partners and take advantage of the tax-deductible status of intere=
st payment arrangement. &nbsp;</span><br></blockquote><blockquote type=3D"ci=
te"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2.=
Exit Tax Bills -- &nbsp;Bills seeking to reduce corporate inversions by mak=
ing them too expensive to make business sense are likely to be introduced be=
fore next recess. </span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Repatr=
iation -- &nbsp;Ryan and Schumer have talked up the idea of introducing legi=
slation to repatriate U.S. multinational profits that are held abroad. &nbsp=
;A compromise will have to be struck between Democrats seeking reduced tax l=
evels for this purpose and Republicans who cite moral hazard. &nbsp;The Obam=
a budget for FY2017 includes a proposal to allow overseas profits to come ho=
me at a special 14 percent trate, and all overseas profits thereafter be tax=
ed at 19 percent. </span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Broade=
r Corporate Tax Reform &nbsp;-- &nbsp;&nbsp;</span><br></blockquote><blockqu=
ote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><s=
pan>Any successful across the board corporate tax reform would almost have t=
o lower the nominal corporate tax rate of 35 percent. &nbsp;-- the highest i=
n the world. &nbsp;Republicans are adamant that the high rate yields corpora=
te inversions. &nbsp;Ways and Means chair Brady has pointed to the corporate=
rate repeatedly as a sign that the U.S. has a =E2=80=9Cbroken tax code that=
discourages investment and growth.=E2=80=9D </span><br></blockquote><blockq=
uote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><=
span>Brady has not yet released his own reform bill, but an op-ed of his pub=
lished this morning gives an indication of what it will include: &nbsp;=E2=80=
=9CWe must address the real root of the problem =E2=80=93 our broken tax cod=
e that discourages investment and growth =E2=80=A6 Our sky-high 35 percent c=
orporate tax rate bears much of the blame =E2=80=A6 We cannot allow American=
taxpayers to foot the bill for tax revenue grabs in Europe and elsewhere.=E2=
=80=9D</span><br></blockquote><blockquote type=3D"cite"><span></span><br></b=
lockquote><blockquote type=3D"cite"><span>Provisions to look for: a lower ov=
erall corporate tax rate, language to address European investigations on U.S=
. businesses dodging taxes abroad. &nbsp;The bill likely won=E2=80=99t inclu=
de language restricting inversions. &nbsp;</span><br></blockquote><blockquot=
e type=3D"cite"><span>Senate Finance chair Hatch has suggested writing legis=
lation to make dividends tax deductible for corporations, eliminating the so=
-called =E2=80=9Cdouble taxation=E2=80=9D of hitting corporate earnings as w=
ell as dividend incomes from investors. &nbsp;The proposal faces long odds. <=
/span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquo=
te><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>=E2=80=A2 &nbsp;Earned-Income Tax Credit (EITC) -- </span><br><=
/blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockqu=
ote type=3D"cite"><span>One tax provisions in the Obama FY17 budget that has=
been muted if not mooted this week is his proposal to expand the EITC for c=
hildless workers and create a $500 =E2=80=9Csecond earner=E2=80=9D tax credi=
t. &nbsp;The cost would be $150 billion over ten years. </span><br></blockqu=
ote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=
=3D"cite"><span>During his SOTU, Obama expressed his desire to work with Spe=
aker Ryan on the issue: &nbsp;=E2=80=9CI also know Speaker Ryan has talked a=
bout his interest in tackling poverty. America is about giving everybody wil=
ling to work a chance, a hand up. And I=E2=80=99d welcome a serious discussi=
on about strategies we can all support, like expanding tax cuts for low-inco=
me workers who don't have children.=E2=80=9D</span><br></blockquote><blockqu=
ote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><s=
pan>The credit is a long-standing darling of both progressives and the GOP e=
stablishment. Ryan and President Obama support extending it to childless wor=
kers. &nbsp;But they face resistance from not just the hard right but from S=
en. Hatch, who say it=E2=80=99s not =E2=80=9Cnecessary=E2=80=9D to expand th=
e break. </span><br></blockquote><blockquote type=3D"cite"><span></span><br>=
</blockquote><blockquote type=3D"cite"><span>Upcoming/Recent Updates</span><=
br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span>=E2=80=A2 &nbsp;Derivatives Agreement w. EU</span><br></blockquote><=
blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Budget (Ir)Resolution</span><=
br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Puerto Rico<=
/span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Econ.=
Revitalization/Housing</span><br></blockquote><blockquote type=3D"cite"><sp=
an></span><br></blockquote><blockquote type=3D"cite"><span>Top Tax Bills Han=
dicapped &nbsp;(Feb. 24)</span><br></blockquote><blockquote type=3D"cite"><s=
pan>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br></blockquote><bl=
ockquote type=3D"cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) <=
/span><br></blockquote><blockquote type=3D"cite"><span>Does DFA Fail on Too B=
ig to Fail? (Feb. 17)</span><br></blockquote><blockquote type=3D"cite"><span=
> Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><block=
quote type=3D"cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br=
> </blockquote><blockquote type=3D"cite"><span>The Fed Holds Steady &nbsp;(Fe=
b. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Obama's FY17 B=
udget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type=3D"cite"><span=
> Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type=
=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><=
blockquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</=
span><br></blockquote><blockquote type=3D"cite"><span>The Fed Holds Rates, f=
or Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type=3D"cite"><spa=
n>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote=
type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></b=
lockquote><blockquote type=3D"cite"><span>Sanders' Tax/Healthcare Policy &nb=
sp;(Jan 20)</span><br></blockquote><blockquote type=3D"cite"><span>HRC's Tax=
Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type=3D"cite"><sp=
an>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><block=
quote type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br><=
/blockquote><blockquote type=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Ja=
n. 8)</span><br></blockquote><blockquote type=3D"cite"><span>Sanders Proposa=
ls/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type=3D"cite"><=
span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><block=
quote type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year=
-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span>=
<br></blockquote><blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(De=
c. 14)</span><br></blockquote><blockquote type=3D"cite"><span>FY 2016 Omnibu=
s Talks (Dec. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Cus=
toms Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type=3D"cite"><s=
pan>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockq=
uote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote>=
<blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br><=
/blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockqu=
ote type=3D"cite"><span>----</span><br></blockquote><blockquote type=3D"cite=
"><span></span><br></blockquote><blockquote type=3D"cite"><span>Mike and Co.=
--</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bloc=
kquote><blockquote type=3D"cite"><span>The soap opera that is the federal bu=
dget making process saw sone minor prima donna pratfalls this week. &nbsp;No=
thing remotely on the scale of blocking the confirmation of a Supreme Justic=
e. &nbsp;But as Senate Budget's ranking member Sen. Cardin warned at a break=
fast today, you can forget regular order on the budget -- after the Presiden=
t submits a nomination, all comity in the Senate will be gone until Election=
Day. </span><br></blockquote><blockquote type=3D"cite"><span></span><br></b=
lockquote><blockquote type=3D"cite"><span>Details and the latest below. &nbs=
p;Taxes tomorrow (be still your heart, right?). </span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span>Best,</span><br></blockquote><blockquote type=3D"cite"><span></span>=
<br></blockquote><blockquote type=3D"cite"><span>Dana </span><br></blockquot=
e><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Story in the Senate</span><br></blockquote><blockquote type=3D"=
cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>At the s=
ame DSCC &nbsp;breakfast one month ago, Sen. Merkley announced that, to his s=
urprise, Senate Budget Chair Mike Enzi was going to put out a manager's mark=
for an FY17 budget resolution for Committee markup, for February. &nbsp;Tod=
ay, Enzi withdrew his markup plans, without announcing a reschedule date.</s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span>To add to the growing problems within the G=
OP, the party, led by Senator Mitch McConnell, has declared all-out war on O=
bama=E2=80=99s impending Supreme Court nomination -- an "nomination abominat=
ion" -- making it even more difficult to predict how these budget deliberati=
ons will end. </span><br></blockquote><blockquote type=3D"cite"><span></span=
> <br></blockquote><blockquote type=3D"cite"><span>Histrionics of the House <=
/span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquo=
te><blockquote type=3D"cite"><span>Even before Obama released his FY2017 bud=
get proposal earlier this month, House Republicans made it a point to emphas=
ize that it was DOA. &nbsp;Now, GOP is running into some dead ends of its ow=
n. </span><br></blockquote><blockquote type=3D"cite"><span></span><br></bloc=
kquote><blockquote type=3D"cite"><span>Speaker Ryan announced early on that h=
e intended to pass the budget through regular order this year -- a process t=
hat hasn=E2=80=99t been successfully completed in a generation. &nbsp;Due to=
internal dicisions and outside pressures, House Republicans have changed th=
eir tune. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span></sp=
an><br></blockquote><blockquote type=3D"cite"><span>Yesterday, House Budget a=
nnounced plans for a proposal next month to stick with the spending levels s=
et by last fall=E2=80=99s deal with the White House while also giving member=
s the chance to vote on other bills that would slash government spending. Th=
e compromise is meant to appease hard-right GOP members who vehemently oppos=
ed the Obama-Boehner budget agreement. &nbsp;Per Ryan's office: =E2=80=9CThi=
s proposal enjoys the overwhelming support of the committee members, and the=
chairman looks forward to sharing it with the broader Conference as we cont=
inue moving this process forward.=E2=80=9D</span><br></blockquote><blockquot=
e type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><spa=
n>The conservative Freedom Caucus so far has supported Speaker Ryan=E2=80=99=
s overtures for cooperation on the budget. &nbsp;But the GOP's hard-right wi=
ng may not remain so understanding of the Speaker=E2=80=99s position, especi=
ally if their credentials are called into question by outside groups with sw=
ay over their base of support. &nbsp;&nbsp;Heritage Action said Monday that t=
he group would oppose any budget blueprint that sticks to the Obama-Boehner d=
eal, which increases spending by about $30 billion.</span><br></blockquote><=
blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"c=
ite"><span>Going Forward </span><br></blockquote><blockquote type=3D"cite"><=
span></span><br></blockquote><blockquote type=3D"cite"><span>It won't be an e=
asy road ahead on the budget. &nbsp;&nbsp;The conservative caucus has severa=
l dozen members, which gives it the power to torpedo any budget proposal tha=
t lacks at least some Democratic support. &nbsp;If it decides to back the ne=
w proposal put forth by Chair Tom Price of House Budget, it would be likely f=
or GOP leaders to be able to move forward. &nbsp;Some members have voiced th=
eir willingness to cooperate, but the pull of outside right-wing groups may p=
rove to be too strong.</span><br></blockquote><blockquote type=3D"cite"><spa=
n></span><br></blockquote><blockquote type=3D"cite"><span>Meanwhile, Minorit=
y Whip Steny Hoyer said today that any Republican budget strategy that stray=
s from the Obama-Boehner deal would be opposed by House Democrats. </span><b=
r></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><bloc=
kquote type=3D"cite"><span>The House Budget plan is to submit the proposal h=
onoring the spending limits agreed to last year, while allowing the hard-rig=
ht GOP wing to vote on other bills which would slash spending, mollifying th=
e more hawkish members. &nbsp;</span><br></blockquote><blockquote type=3D"ci=
te"><span></span><br></blockquote><blockquote type=3D"cite"><span>Dearth of L=
egislative Days</span><br></blockquote><blockquote type=3D"cite"><span></spa=
n><br></blockquote><blockquote type=3D"cite"><span>Lengthening the odds agai=
nst Ryan, the House Budget is now working on a delayed schedule. &nbsp;In mi=
d-January, the House Budget Committee announced that it would be releasing i=
ts markup of the White House budget proposal early -=E2=80=93 on February 25=
. However, that has also changed. Yesterday, The Committee announced that it=
was now delaying its markup till sometime in March. &nbsp;The change is cur=
ious for a few reasons. &nbsp;It raises the question of why the House Budget=
Committee said it would have the markup done so early in the first place. M=
oreover, it goes against the House Republicans message of =E2=80=9Cgetting t=
hings done=E2=80=9D during this Congress. </span><br></blockquote><blockquot=
e type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><spa=
n>Democrats are jumping on this delay already. &nbsp;Nancy Pelosi said: =E2=80=
=9CYet again, it=E2=80=99s the Speaker=E2=80=99s own broken promises =E2=80=93=
and his own rhetoric =E2=80=93 that are coming back to bite him. &nbsp;Beca=
use while the Speaker pledged an end to dysfunctional House-Republican leade=
rship, all the American people are seeing is more of the same.=E2=80=9D &nbs=
p;</span><br></blockquote><blockquote type=3D"cite"><span></span><br></block=
quote><blockquote type=3D"cite"><span>One thing is looks increasingly likely=
: that the nomination will exert a tidal force on at least the budget delibe=
rations and everything else, through the election. &nbsp;</span><br></blockq=
uote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote typ=
e=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=
=A2 &nbsp;Tax Talk</span><br></blockquote><blockquote type=3D"cite"><span>=E2=
=80=A2 &nbsp;Derivatives Agreement w. EU</span><br></blockquote><blockquote t=
ype=3D"cite"><span>=E2=80=A2 &nbsp;Puerto Rico</span><br></blockquote><block=
quote type=3D"cite"><span>=E2=80=A2 &nbsp;Econ. Revitalization/Housing</span=
> <br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><b=
lockquote type=3D"cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) <=
/span><br></blockquote><blockquote type=3D"cite"><span>Does DFA Fail on Too B=
ig to Fail? (Feb. 17)</span><br></blockquote><blockquote type=3D"cite"><span=
> Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><block=
quote type=3D"cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br=
> </blockquote><blockquote type=3D"cite"><span>The Fed Holds Steady &nbsp;(Fe=
b. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Obama's FY17 B=
udget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type=3D"cite"><span=
> Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type=
=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><=
blockquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</=
span><br></blockquote><blockquote type=3D"cite"><span>The Fed Holds Rates, f=
or Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type=3D"cite"><spa=
n>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote=
type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></b=
lockquote><blockquote type=3D"cite"><span>Sanders' Tax/Healthcare Policy &nb=
sp;(Jan 20)</span><br></blockquote><blockquote type=3D"cite"><span>HRC's Tax=
Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type=3D"cite"><sp=
an>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><block=
quote type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br><=
/blockquote><blockquote type=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Ja=
n. 8)</span><br></blockquote><blockquote type=3D"cite"><span>Sanders Proposa=
ls/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type=3D"cite"><=
span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><block=
quote type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year=
-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span>=
<br></blockquote><blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(De=
c. 14)</span><br></blockquote><blockquote type=3D"cite"><span>FY 2016 Omnibu=
s Talks (Dec. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Cus=
toms Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type=3D"cite"><s=
pan>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockq=
uote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote>=
<blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br><=
/blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockqu=
ote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><s=
pan>Mike &amp; Co. --</span><br></blockquote><blockquote type=3D"cite"><span=
> </span><br></blockquote><blockquote type=3D"cite"><span>One week ago, the H=
ouse passed a bill that could alter and perhaps ease the way state and local=
infrastructure is financed in the capital markets, when HR.2209, a bill to "=
require the appropriate Federal banking agencies to treat certain municipal o=
bligations as level 2A liquid assets, and for other purposes" was adopted by=
the House with a voice vote. &nbsp;</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Thou=
ght the bill has flown below the media radar, it is significant. &nbsp;Munic=
ipal obligations, including bonds, are at the heart of infrastructure invest=
ment in America. &nbsp;And infrastructure investment has been a large focus o=
f this primary. &nbsp;Both Democratic candidates have proposed multi-hundred=
billion dollar infrastructure investment proposals.</span><br></blockquote>=
<blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"=
cite"><span>Details below...</span><br></blockquote><blockquote type=3D"cite=
"><span></span><br></blockquote><blockquote type=3D"cite"><span>Best,</span>=
<br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><bl=
ockquote type=3D"cite"><span>Dana</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Infrast=
ructure is mostly funded at the state or local level through the use of muni=
cipal bonds. &nbsp;Between 2003 and 2012, counties, states, and other locali=
ties invested $3.2 trillion in infrastructure through long-term tax-exempt m=
unicipal bonds, 2.5 times more than the federal investment. &nbsp;</span><br=
> </blockquote><blockquote type=3D"cite"><span></span><br></blockquote><block=
quote type=3D"cite"><span>The Bill</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>HR 2209=
requires federal banking regulators to include municipal bonds under the Li=
quidity Coverage Ratio (LCR). &nbsp;The LCR is designed to ensure that finan=
cial institutions have the necessary assets available to handle a liquidity d=
isruption. &nbsp;Local officials have said that if the new rules aren=E2=80=99=
t changed, it will saddle them with higher borrowing costs by eliminating in=
centives banks have to purchase their bonds. Without bonds, these government=
s will lose a significant source of their funding. &nbsp;Per Indiana State T=
reasurer Kelly Mitchell: =E2=80=9CThis bill helps ensure cash-strapped schoo=
l districts and municipalities will continue to have access to bonds to fina=
nce projects they think are best for their communities.=E2=80=9D </span><br>=
</blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockq=
uote type=3D"cite"><span>Rep. Luke Messer, an Indiana Republican who wrote t=
he bill: &nbsp;=E2=80=9CPut simply, our bill requires the federal government=
to recognize the obvious, that our municipal bonds are some of the safest i=
nvestments in the world and that we shouldn=E2=80=99t have rules that give p=
referential treatment to corporate bonds or other countries=E2=80=99 bonds o=
ver our own.=E2=80=9D </span><br></blockquote><blockquote type=3D"cite"><spa=
n></span><br></blockquote><blockquote type=3D"cite"><span>After passing the H=
ouse with unanimous bipartisan support, a companion bill is expected to be i=
ntroduced in the Senate this year. &nbsp;</span><br></blockquote><blockquote=
type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span=
> Municipal Bond Issue</span><br></blockquote><blockquote type=3D"cite"><span=
> </span><br></blockquote><blockquote type=3D"cite"><span>After the crisis of=
2008, federal regulators adopted international banking standards that requi=
re banks to have enough "High-Quality Liquid Assets" to cover their cash out=
flows for 30 days in case of a future financial meltdown. &nbsp;Now, municip=
al bonds are not considered liquid assets and therefore cannot be included u=
nder the &nbsp;LCR. &nbsp;&nbsp;As a result, financial institutions have bee=
n discouraged from holding municipal debt, which means that cash strapped mu=
nicipalities and school districts may eventually be forced to reduce or even=
stop work on projects &nbsp;financed with municipal bonds. </span><br></blo=
ckquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote t=
ype=3D"cite"><span>Infrastructure Financing -- Alternative Financing</span><=
br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blo=
ckquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;Tax-exempt bonds: &nbsp;Ex=
emption from federal taxes and many state and local taxes is possible throug=
h the use of municipal bonds. &nbsp;&nbsp;In recent years, with the increasi=
ng use of PPPs, barriers to this tax exemption have arisen. &nbsp;Treasury h=
as reviewed relevant tax rules and based on their findings and have put fort=
h a proposal for an expanded and permanent America Fast Forward Bond Program=
as an alternative to tax-exempt bonds. &nbsp;Based on the successful Build A=
merica Bond program, =E2=80=9Cwould provide an efficient borrowing subsidy t=
o state and local governments while appealing to a broader investor base tha=
n traditional tax-exempt bonds [and] would cover a broad range of projects f=
or which tax-exempt bonds can be used.=E2=80=9D </span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span> =E2=80=A2 &nbsp;Obama=E2=80=99s budget proposal: &nbsp;Obama has al=
so put forth a plan to strengthen local and state government infrastructure p=
rojects. His plan relies on a new Federal credit program to support public-p=
rivate partnerships within the Department of the Treasury. It will provide d=
irect loans to US infrastructure projects developed through PPPs. The Obama A=
dministration believes that private investment is crucial for infrastructure=
development moving forward, so there should be more flexibility in regards t=
o what PPP is subject to. In addition to that, President Obama has proposed t=
he taxable, direct-pay America Fast Forward bond program to help finance inf=
rastructure. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span><=
/span><br></blockquote><blockquote type=3D"cite"><span>State Infrastructure B=
anks</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blo=
ckquote><blockquote type=3D"cite"><span>Local governments receive financing i=
n a number of ways. &nbsp;Traditional sources such as tax revenues have been=
dwindling and local authorities have been relying on federal government loa=
n programs, public-private partnerships, and State Revolving Funds (SRFs). &=
nbsp;State Infrastructure Banks (SIBs) are a subset of SRFs -- the funds act=
like a bank, because they don=E2=80=99t own the infrastructure asset, but a=
ct as a lender or guarantor to the project sponsor. Per Brookings: &nbsp;=E2=
=80=9CSRFs rely on principal repayments, bonds, interest and fees to re-capi=
talize and replenish the fund as a perpetual source of debt financing.=E2=80=
=9D</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bloc=
kquote><blockquote type=3D"cite"><span>SIBs generate more investment per dol=
lar than traditional federal and state grant programs. &nbsp;They only exist=
in 33 states and 10 of those SIBs are currently inactive. A large problem m=
ay be compliance with federal regulations. &nbsp;Brookings again: </span><br=
> </blockquote><blockquote type=3D"cite"><span></span><br></blockquote><block=
quote type=3D"cite"><span>=E2=80=9CWe found that many SIB officials cite com=
pliance with federal regulations as slowing down the investment process eith=
er because of environmental and contractual requirements or due to the lack o=
f flexibility in projects that are not Title 23 or 49 eligible. For states w=
ith smaller projects, this may be prohibitively costly compared to the advan=
tage of using the low-cost SIB financing.=E2=80=9D </span><br></blockquote><=
blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"c=
ite"><span>Just being called a bank subjects SIBs to regulations that commer=
cial banks are subject to. &nbsp;SIBs are non-for-profit organizations with a=
goal of increasing infrastructure investment, so they don=E2=80=99t quite f=
it into the category of the average bank. &nbsp;SIBs may be more successful o=
utside this classification. &nbsp;</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>For or A=
gainst Dodd-Frank</span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span>Before Dodd-Frank, part=
icularly in the case of relatively small municipalities, many underwriters f=
orged long-term relationships with municipalities and would provide financia=
l advice before and after a bond issuance. &nbsp;With Dodd-Frank, that relat=
ionship changed, with a new =E2=80=9Cmunicipal adviser=E2=80=9D category tha=
t must register with the SEC and be regulated by the Municipal Securities Ru=
lemaking Board (MSR). &nbsp;Now, it is widely illegal to provide advice to g=
overnmental entities concerning the issuance of municipal bonds, the use of f=
inancial derivatives, and the investment of the proceeds of a bond issue to,=
or on behalf, of a municipal entity or an obligated person unless the advis=
er is registered with the SEC. </span><br></blockquote><blockquote type=3D"c=
ite"><span></span><br></blockquote><blockquote type=3D"cite"><span>HR 2209 a=
ppears to address a problem within Dodd-Frank, but it is unclear if it vitia=
tes the law materially. &nbsp;At face value, it appears to be more a technic=
al fix. Dodd-Frank expanded regulations for banking institutions, but the en=
tities that fund state and local governments are far unlike the TBTF institu=
tions that Dodd-Frank was meant to regulate. &nbsp;&nbsp;</span><br></blockq=
uote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote typ=
e=3D"cite"><span>Groups like Americans for Financial Reform oppose HR 2209: =E2=
=80=9CWhile we sympathize with the belief that municipal debt was incorrectl=
y treated under the initial LCR rule, we believe that it is inappropriate to=
classify such debt as a Level 2A asset. AFR therefore opposes this bill unl=
ess a more appropriate liquidity classification is used.=E2=80=9D &nbsp;AFR h=
as previously said it supports treating municipal bonds as more liquid and d=
oes not approve the type of classification used in HR 2209, because it goes t=
oo far in its treatment of municipal debt as level 2A liquid assets and spec=
ifically with micromanaging regulators with this kind of detail and they pre=
fer a Level 2B classification. </span><br></blockquote><blockquote type=3D"c=
ite"><span></span><br></blockquote><blockquote type=3D"cite"><span>The bill c=
ould provide relief for smaller institutions, so that they can fund infrastr=
ucture investment more easily. In terms of Dodd-Frank, it is yet to be decid=
ed if it is simply a necessary tweak or a criticism. &nbsp;&nbsp;&nbsp;&nbsp=
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<=
/span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquo=
te><blockquote type=3D"cite"><span>Looking Ahead</span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span>HR 2209 could end up being an important issue in the national infras=
tructure discussion. &nbsp;It brings up questions about how far a state or l=
ocal government can go before its activities begin to resemble an actual ban=
k. &nbsp;With the growth of PPPs, the private sector is being even more inte=
grated into the process =E2=80=93 should those companies be given tax exempt=
ions, as well? </span><br></blockquote><blockquote type=3D"cite"><span></spa=
n><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><=
blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"c=
ite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2=
&nbsp;Derivatives Agreement w. EU</span><br></blockquote><blockquote type=3D=
"cite"><span>=E2=80=A2 &nbsp;Budget (Ir)Resolution</span><br></blockquote><b=
lockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Puerto Rico</span><br></blockq=
uote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Econ. Revitalization/Ho=
using</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bl=
ockquote><blockquote type=3D"cite"><span>Infrastructure Finance Update &nbsp=
;(Feb. 18) </span><br></blockquote><blockquote type=3D"cite"><span>Does DFA =
Fail on Too Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type=3D=
"cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></block=
quote><blockquote type=3D"cite"><span>International Tax Status &nbsp;(Feb. 1=
1)</span><br></blockquote><blockquote type=3D"cite"><span>The Fed Holds Stea=
dy &nbsp;(Feb. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Ob=
ama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type=3D=
"cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></=
blockquote><blockquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy=
(Jan. 28)</span><br></blockquote><blockquote type=3D"cite"><span>The Fed Ho=
lds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type=3D=
"cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote>=
<blockquote type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</s=
pan><br></blockquote><blockquote type=3D"cite"><span>Sanders' Tax/Healthcare=
Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type=3D"cite"><spa=
n>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type=3D=
"cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockqu=
ote><blockquote type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</=
span><br></blockquote><blockquote type=3D"cite"><span>2016 Tax Policy Issues=
&nbsp;(Jan. 8)</span><br></blockquote><blockquote type=3D"cite"><span>Sande=
rs Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type=3D=
"cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquot=
e><blockquote type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &n=
bsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15=
)</span><br></blockquote><blockquote type=3D"cite"><span>Omnibus Situation &=
nbsp;(Dec. 14)</span><br></blockquote><blockquote type=3D"cite"><span>FY 201=
6 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type=3D"cite"><=
span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type=3D"=
cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote=
> <blockquote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blo=
ckquote><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</sp=
an><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote>=
<blockquote type=3D"cite"><span>----</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></sp=
an><br></blockquote><blockquote type=3D"cite"><span>Mike &amp; Co. &nbsp;--<=
/span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquo=
te><blockquote type=3D"cite"><span>The newly-installed the Minneapolis Feder=
al Reserve Bank and former Special Investigator overseeing the TARP program c=
ame to town yesterday advocating drastic action to head off a financial sect=
or systemic risk crisis, calling for the nation's biggest banks to be broken=
up. </span><br></blockquote><blockquote type=3D"cite"><span>His speech, del=
ivered at Brookings, got noticed, with lengthy coverage in the NYT, WSJ, and=
WaPo. &nbsp;And perhaps with reason -- the TBTF (too big to fail) issue has=
dogged Congress and the administration for years and is one of the central o=
nes in the Democratic presidential campaign this far. </span><br></blockquot=
e><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Or maybe it was just a slow news day. &nbsp;You decide...</span=
> <br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><b=
lockquote type=3D"cite"><span>Best, </span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Dana=
</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockqu=
ote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>A Pe=
culiar Package of Proposals</span><br></blockquote><blockquote type=3D"cite"=
> <span></span><br></blockquote><blockquote type=3D"cite"><span>Kashkari argu=
ed in the alternative that Dodd-Frank needs to be used and/or needs to be re=
formed. &nbsp;He says the law as written does not solve the TBTF problem. &n=
bsp;He also wants regulators to use the yet-untried tools at their disposal u=
nder the law. &nbsp;&nbsp;=E2=80=9CWhile significant progress has been made t=
o strengthen our financial system, I believe the [Dodd-Frank] Act did not go=
far enough." &nbsp;He then laid out three ideas meant to end TBTF once and f=
or all. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span></span=
> <br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;break up l=
arge banks into smaller, less connected, less important entities;</span><br>=
</blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockq=
uote type=3D"cite"><span>=E2=80=A2 &nbsp;turn what remains of the large bank=
s into public utilities by forcing them to hold so much capital that they ca=
n=E2=80=99t fail; and</span><br></blockquote><blockquote type=3D"cite"><span=
> </span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;tax=
leverage throughout the financial system "to reduce systemic risks wherever=
they lie."</span><br></blockquote><blockquote type=3D"cite"><span></span><b=
r></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Break up the B=
anks</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blo=
ckquote><blockquote type=3D"cite"><span>=46rom the perspective of current la=
ws, breaking up big banks is already a policy avenue available to regulators=
. &nbsp;The Federal Reserve, through the Financial Stability Oversight Counc=
il, can elect to take a number of actions to deal with banks that it feels a=
re both systemically important and organized in an unstable way. &nbsp;Secti=
on 121 of the Dodd-Frank Act gives the Board of Governors these powers. &nbs=
p;</span><br></blockquote><blockquote type=3D"cite"><span></span><br></block=
quote><blockquote type=3D"cite"><span>So this first proposal =E2=80=93 break=
up big banks - has been covered here before but just for the sake of argume=
nt... which banks need to be broken up most urgently? &nbsp;Few commentators=
believe there is an imminent threat demanding action. &nbsp;</span><br></bl=
ockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote=
type=3D"cite"><span>Unsurprisingly, the Fed doesn=E2=80=99t believe that ba=
nks are so hopeless that they need to be dissolved. &nbsp;That doesn=E2=80=99=
t mean it=E2=80=99s not a possibility under current legislation, however.</s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;Make Banks =E2=80=9CU=
tilities=E2=80=9D</span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span>The second proposal is t=
o push capital requirements for banks so high that they =E2=80=9Cessentially=
turn into public utilities.=E2=80=9D &nbsp;Kashkari never explains how exac=
tly high capital reserves turn banks into utilities, but that=E2=80=99s for a=
nother time. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span><=
/span><br></blockquote><blockquote type=3D"cite"><span>He is voicing his sup=
port for one of the oldest forms of banking regulations that we still use an=
d use far more now in the Dodd-Frank era =E2=80=93 he wants banks to hold mo=
re capital. &nbsp;Supporters of the law may be heartened by his full-throate=
d endorsement of the law on this score. </span><br></blockquote><blockquote t=
ype=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=
=80=A2 &nbsp;&nbsp;Cribbing from Clinton?</span><br></blockquote><blockquote=
type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span=
> The third proposal was just about lifted out of Secretary Clinton=E2=80=99s=
plan to regulate Wall Street =E2=80=93- though the reporting on the speech d=
oesn=E2=80=99t much mention it much. &nbsp;It is reasonable both from a poli=
cy and a political perspective. But he doesn't provide further details about=
his proposal after first outlining it.</span><br></blockquote><blockquote t=
ype=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>K=
ashkari contra Yellen</span><br></blockquote><blockquote type=3D"cite"><span=
> </span><br></blockquote><blockquote type=3D"cite"><span>Fed Chair Yellen ha=
s been an outspoken proponent of existing banking regulations, making it kno=
wn that while the job of regulators is not done yet. we=E2=80=99re in a much=
better situation now than we were before DFA. &nbsp;During her testimony be=
fore House Financial Services, Yellen fielded a question about why she had n=
ot yet broken up big banks, saying: =E2=80=9C=E2=80=A6we [at the Fed]vare us=
ing our powers to make sure that a systemically important institution could f=
ail, and it would not be -- have systemic consequences for the country. We'r=
e doing that in a whole variety of ways.=E2=80=9D &nbsp;</span><br></blockqu=
ote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=
=3D"cite"><span>The ways Yellen is referring to include enforcing Liquidity C=
overage Ratios, capital reserve requirements, and a rule passed last Novembe=
r forcing the biggest banks to issue long-term debt equal to 18 percent of r=
isk-weighted assets. &nbsp;</span><br></blockquote><blockquote type=3D"cite"=
> <span></span><br></blockquote><blockquote type=3D"cite"><span>Evidently it'=
s not enough. &nbsp;But it is nonetheless uncommon for a newly minted Federa=
l Reserve Bank President to taking to task the Chair of the Federal Reserve=E2=
=80=99s Board of Governors.</span><br></blockquote><blockquote type=3D"cite"=
> <span></span><br></blockquote><blockquote type=3D"cite"><span></span><br></=
blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquo=
te type=3D"cite"><span>Upcoming/Recent Updates</span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span>=E2=80=A2 &nbsp;Municipal Bond Rule</span><br></blockquote><blockquote=
type=3D"cite"><span>=E2=80=A2 &nbsp;Budget (Ir)Resolution</span><br></block=
quote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Puerto Rico</span><br>=
</blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Derivatives Agr=
eement w. EU</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2=
&nbsp;Econ. Revitalization/Housing</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Does DFA=
Fail on Too Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type=3D=
"cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></block=
quote><blockquote type=3D"cite"><span>International Tax Status &nbsp;(Feb. 1=
1)</span><br></blockquote><blockquote type=3D"cite"><span>The Fed Holds Stea=
dy &nbsp;(Feb. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Ob=
ama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type=3D=
"cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></=
blockquote><blockquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy=
(Jan. 28)</span><br></blockquote><blockquote type=3D"cite"><span>The Fed Ho=
lds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type=3D=
"cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote>=
<blockquote type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</s=
pan><br></blockquote><blockquote type=3D"cite"><span>Sanders' Tax/Healthcare=
Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type=3D"cite"><spa=
n>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type=3D=
"cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockqu=
ote><blockquote type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</=
span><br></blockquote><blockquote type=3D"cite"><span>2016 Tax Policy Issues=
&nbsp;(Jan. 8)</span><br></blockquote><blockquote type=3D"cite"><span>Sande=
rs Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type=3D=
"cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquot=
e><blockquote type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &n=
bsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15=
)</span><br></blockquote><blockquote type=3D"cite"><span>Omnibus Situation &=
nbsp;(Dec. 14)</span><br></blockquote><blockquote type=3D"cite"><span>FY 201=
6 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type=3D"cite"><=
span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type=3D"=
cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote=
> <blockquote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blo=
ckquote><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</sp=
an><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote>=
<blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"=
cite"><span>Mike &amp; Co. &nbsp;--</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>A natio=
nal holiday, a snowstorm, and a congressional recess stilled DC yesterday an=
d a quiet week is expected. &nbsp;It gives us a chance to have a look at som=
e developments thus far this year that have flown below the radar.</span><br=
> </blockquote><blockquote type=3D"cite"><span></span><br></blockquote><block=
quote type=3D"cite"><span>Today's item is the one bill on its way to the Pre=
sident=E2=80=99s desk -- the Customs bill -- and the caboose attached to it t=
hat extends the internet tax moratorium permanently &nbsp;and may be the bil=
l's important title... at least until the TPP comes up on the Senate floor. <=
/span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquo=
te><blockquote type=3D"cite"><span>Best,</span><br></blockquote><blockquote t=
ype=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>D=
ana</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bloc=
kquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote t=
ype=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>T=
he Customs Bill: &nbsp;Comity on the Hill</span><br></blockquote><blockquote=
type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span=
> The Senate cleared the first overhaul of the Customs and Border Protection (=
CBP) agency in more than a decade in a 75-20 vote last Thursday, sending the=
bill to the President and ending months of wrangling over the measure. &nbs=
p;The Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) retool=
s CBP to increase its focus on blocking illegal trade and ensuring that lega=
l trade moves smoothly.</span><br></blockquote><blockquote type=3D"cite"><sp=
an></span><br></blockquote><blockquote type=3D"cite"><span>The major facets o=
f this legislation are:</span><br></blockquote><blockquote type=3D"cite"><sp=
an></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;n=
ew protections on intellectual property rights</span><br></blockquote><block=
quote type=3D"cite"><span>=E2=80=A2 &nbsp;new tools to fight currency manipu=
lation</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2. a p=
ermanent extension of the Internet Tax Freedom Act</span><br></blockquote><b=
lockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"ci=
te"><span>Said Senate Finance ranking member Ron Wyden: &nbsp;=E2=80=9CThis b=
ill is about coming down hard on the trade cheats who are ripping off Americ=
an jobs, and the truth is past trade policies were often too old, too slow o=
r too weak for our country to fight back."</span><br></blockquote><blockquot=
e type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><spa=
n>Wyden was perhaps the most outspoken Democrat in support of the bill, cont=
inuing his role as a strong backer of free trade legislation. &nbsp;He was a=
key factor in getting Trade Promotion Authority legislation passed through C=
ongress last summer, splitting from some of his colleagues in voicing suppor=
t for that act.</span><br></blockquote><blockquote type=3D"cite"><span></spa=
n><br></blockquote><blockquote type=3D"cite"><span>Unusual Coalition</span><=
br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blo=
ckquote type=3D"cite"><span>27 Democrats, 47 Republicans, and 1 Independent v=
oted affirmatively. &nbsp;Industry groups including the National Retail Fede=
ration, as well as the U.S. Chamber of Commerce were supportive of the legis=
lation. &nbsp;National Association of Manufacturers=E2=80=99 president Jay T=
immons said =E2=80=9Cif senators want to grow manufacturing in the United St=
ates, then they should pass this bill immediately.=E2=80=9D</span><br></bloc=
kquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote t=
ype=3D"cite"><span>Notable =E2=80=9CNay=E2=80=9D votes include Sens. Durbin a=
nd Reid, who both expressed disappointment that the legislation was a =E2=80=
=9Cwatered down=E2=80=9D version of a bill previously passed by the Senate. &=
nbsp;=E2=80=9DI like that [Senate] version, and that strong language on curr=
ency manipulation,=E2=80=9D Durbin said =E2=80=93 that language required Com=
merce to consider =E2=80=9Cundervalued=E2=80=9D currencies to be equivalent t=
o countervailable subsidies. &nbsp;=E2=80=9CThe conference report that=E2=80=
=99s back to us now and before the Senate at this moment is a much different=
bill."</span><br></blockquote><blockquote type=3D"cite"><span></span><br></=
blockquote><blockquote type=3D"cite"><span>Purpose and Provisions</span><br>=
</blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockq=
uote type=3D"cite"><span>House and Senate negotiators agreed on a final cust=
oms bill in December. &nbsp;&nbsp;The House passed the measure 256-158 but t=
he legislation stalled in the Senate over a provision added in conference th=
at permanently extends a moratorium on Internet access taxes.</span><br></bl=
ockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote=
type=3D"cite"><span>That provision is perhaps the most reported on section i=
n the bill =E2=80=93 it=E2=80=99s almost certainly the most popular - it app=
lies to localities, states, and the federal government itself. &nbsp;&nbsp;S=
en. Lamar Alexander cited it though as explanation for his =E2=80=9Cnay=E2=80=
=9D vote: "the federal government shouldn't be telling the states what their=
tax structure should be."</span><br></blockquote><blockquote type=3D"cite">=
<span></span><br></blockquote><blockquote type=3D"cite"><span>Another import=
ant provision, known as the ENFORCE Act, would require the CBP to more aggre=
ssively investigate complaints that companies are evading anti-dumping or co=
untervailing duties on imports by mislabeling or disguising the shipments.</=
span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquot=
e><blockquote type=3D"cite"><span>The bill includes a new Trade Enforcement =
Fund to bring trade cases through the WTO, to investigate the implementation=
of trade requirements by other countries, and to respond to complaints of t=
rade violations. &nbsp;It also creates a nine-member Advisory Committee on I=
nternational Exchange Rate Policy, whose members must be comprised of indivi=
duals from the private sector who are selected by both chambers of Congress a=
nd the President (three members each).</span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Cu=
rrency Manipulation</span><br></blockquote><blockquote type=3D"cite"><span><=
/span><br></blockquote><blockquote type=3D"cite"><span>Currency manipulation=
has been a long-standing concern of American policy-makers and a particular=
ly contentious issue in global trade relations; claims that China has been c=
hronically undervaluing its currency have made the news for a number of year=
s. &nbsp;Advocates for stricter enforcement of currency manipulation provisi=
ons claim that undervalued currencies operate similarly to export subsidies =E2=
=80=93 a prohibited practice within the World Trade Organization.</span><br>=
</blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockq=
uote type=3D"cite"><span>The final bill dropped a Senate provision that woul=
d have required the Commerce Department to treat undervalued currency as an i=
llegal subsidy under U.S. countervailing duty law. &nbsp;This provision woul=
d have opened the door for compensatory tariffs to be levied against goods w=
hich originate from countries which are found to purposely undervalue their c=
urrency in order to boost their exports. The bill does, however, include oth=
er measures that give the Treasury Department new tools to fight currency ma=
nipulation:</span><br></blockquote><blockquote type=3D"cite"><span></span><b=
r></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;creates a spe=
cial fund for the CBP to ensure trading partners follow the rules and to bri=
ng disputes before the WTO</span><br></blockquote><blockquote type=3D"cite">=
<span>=E2=80=A2 &nbsp;increases funding to the National Intellectual Propert=
y Rights Coordination Center</span><br></blockquote><blockquote type=3D"cite=
"><span>=E2=80=A2 &nbsp;establishes the Commercial Customs Operations Adviso=
ry Committee jointly between CBP and Treasury</span><br></blockquote><blockq=
uote type=3D"cite"><span>=E2=80=A2 &nbsp;requires CBP to investigate claims f=
rom other agencies of evasion of anti-dumping or countervailing duties.</spa=
n><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><=
blockquote type=3D"cite"><span>Relation to TPP</span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span>Sen. Majority Leader McConnell has said that the Senate will not vote o=
n the Trans-Pacific Partnership before the November elections, so it may com=
e as a surprise to see a bill which deals with enforcing trade deals like TP=
P pass both houses of Congress. &nbsp;However this bill=E2=80=99s provisions=
for protecting IP rights, toughening countervailing duties, and tackling cu=
rrency manipulation are a necessary prerequisite for agreements like TPP (or=
the far more nebulous TTIP). &nbsp;The new age of trade agreements &nbsp;wi=
ll deal extensively in issues like intellectual property protection, trade i=
n services, and high-tech product trading; types of commerce which are far m=
ore difficult to regulate compared to the trade of physical goods.</span><br=
> </blockquote><blockquote type=3D"cite"><span></span><br></blockquote><block=
quote type=3D"cite"><span>So, despite the fact that TPP won=E2=80=99t get a v=
ote until after November (and perhaps not in 2016 at all), and may not pass e=
ven then, the protections set forward in the customs bill are necessary to a=
llow American companies to continue to compete in the global marketplace.</s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span>Price of Passage</span><br></blockquote><bl=
ockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cit=
e"><span>In order to include the permanent extension of the Internet Tax Fre=
edom Act, McConnell had to promise that a vote would be held this year on th=
e Marketplace Fairness Act. &nbsp;That legislation grants states greater aut=
hority to collect sales taxes from online businesses who sell products withi=
n their borders. &nbsp;While McConnell himself opposes the bill, it was the o=
nly way to get the customs bill (with the tax amendment attached) unstuck.</=
span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquot=
e><blockquote type=3D"cite"><span>Just because McConnell has promised it wil=
l be brought to a vote doesn=E2=80=99t mean it will be a smooth process - th=
e Senate passed the Marketplace Fairness Act in 2013 with 69 votes, and most=
of the lawmakers who voted for it are still in the chamber. &nbsp;Some lawm=
akers like Kelly Ayotte, who is facing a tough reelection campaign this year=
, have vowed to fight tooth-and-nail against it. &nbsp;Despite these detract=
ors in the Senate, the real battle may occur in the House, where two competi=
ng proposals have been brought forward. &nbsp;</span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span></span><br></blockquote><blockquote type=3D"cite"><span>Upcoming/Recen=
t Updates</span><br></blockquote><blockquote type=3D"cite"><span></span><br>=
</blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Municipal Bond R=
ule</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;B=
udget (Ir)Resolution</span><br></blockquote><blockquote type=3D"cite"><span>=
=E2=80=A2 &nbsp;Puerto Rico</span><br></blockquote><blockquote type=3D"cite"=
> <span>=E2=80=A2 &nbsp;Derivatives Agreement w. EU</span><br></blockquote><b=
lockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Econ. Revitalization/Housing</=
span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquot=
e><blockquote type=3D"cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 1=
6) </span><br></blockquote><blockquote type=3D"cite"><span>International Tax=
Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type=3D"cite"><sp=
an>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote t=
ype=3D"cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquot=
e><blockquote type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span>=
<br></blockquote><blockquote type=3D"cite"><span>Defending Dodd-Frank &nbsp;=
(Feb. 2)</span><br></blockquote><blockquote type=3D"cite"><span>Fiscal Pol: D=
eficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type=3D"ci=
te"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquot=
e><blockquote type=3D"cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</s=
pan><br></blockquote><blockquote type=3D"cite"><span>Regulating the Regulato=
rs &nbsp;(Jan. 21)</span><br></blockquote><blockquote type=3D"cite"><span>Sa=
nders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquo=
te type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquo=
te><blockquote type=3D"cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 1=
6)</span><br></blockquote><blockquote type=3D"cite"><span>Glass-Steagall, Ta=
ke 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type=3D"cite"><span>=
2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote typ=
e=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockq=
uote><blockquote type=3D"cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5=
)</span><br></blockquote><blockquote type=3D"cite"><span>Year-End Review: Fi=
scal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;=
Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type=3D"cite"><s=
pan>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote typ=
e=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquo=
te><blockquote type=3D"cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) <=
/span><br></blockquote><blockquote type=3D"cite"><span>Brown on HFT &nbsp;(D=
ec. 4)</span><br></blockquote><blockquote type=3D"cite"><span>Shelby 2.0 Upd=
ate &nbsp;(Dec. 3)</span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><span>----</span><br></block=
quote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>On Feb 11, 2016, at 7:47 PM, Dana &lt;<a href=3D"mailto:danachasin@gmail=
.com">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>Mike &amp; Co. &nbsp;--</span><br></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>One thing th=
e two parties agree is that international tax reform is a fiscally necessary=
issue to take up -- that Uncle Sam is leaving hundreds of billions of dolla=
rs on the table overseas annually. &nbsp;&nbsp;But they would also generally=
agree that it is not going to get done this year. &nbsp;</span><br></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>Under current law, those profits are subject only to fede=
ral taxes if they are returned, or repatriated, to the U.S. where they face a=
top rate of 35 percent. &nbsp;Many companies avoid U.S. taxes on those earn=
ings by simply leaving them overseas.</span><br></blockquote></blockquote><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>T=
here is bipartisan activity on the issue in both houses of Congress. Obama h=
as a major reform proposal on the table. &nbsp;So is this the year, in the y=
ear of surprises?</span><br></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Best,</span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an></span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><span>Dana</span><br></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Reforms in t=
he area of international tax deal with both the repatriation of foreign-deri=
ved profits and the issue of corporate inversions. &nbsp;Testifying today, T=
reasury Secretary Jack Lew encouraged the parties in Congress to overcome th=
eir differences on both, which he believes surmountable: &nbsp;=E2=80=9CI ju=
st want to underscore the urgency of dealing with inversions =E2=80=A6 We ca=
n=E2=80=99t wait a year to deal with this,=E2=80=9D Lew said during a Senate=
Finance hearing on the Obama administration=E2=80=99s budget. Congress coul=
d pass narrow legislation on inversions, he said, even if broader reform of t=
he international system is preferable. </span><br></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Stirrings in the Senate</span><br></blockquote></blockquote><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sen. Schumer a=
lso announced today that he is in contact with Speaker Ryan about coming to a=
n agreement on repatriating corporate profits. &nbsp;They were unable to com=
e to an agreement last year on a similar measure put forth as part of a larg=
er reform effort. &nbsp;Schumer said today: =E2=80=9CWe=E2=80=99re trying to=
bridge over, of course, the divide between existing proposals. &nbsp;I rema=
in at the table ready to work.=E2=80=9D &nbsp;</span><br></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><span>One of the key differences between the parties concerns whether the m=
oney raised from tax reform should be turn into government revenue for more s=
pending, or used to pay down the debt or pass tax cuts. &nbsp;After the Sena=
te Finance hearing yesterday, Chair Hatch said: &nbsp;=E2=80=9CI'm actually w=
orking on international, but I just don't think it's going to get done this y=
ear, because, you know, let's face it, the Democrats are going to want to ra=
ise revenue. &nbsp;They want money to spend.=E2=80=9D &nbsp;</span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an></span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><span>At that same hearing, Sen. Shelby pushed a corporate i=
ntegration plan he is developing to eliminate the double taxation of corpora=
te income by providing corporations a dividend deduction. &nbsp;He's awaitin=
g a score by the Joint Committee on Taxation. &nbsp;Dividend deductions are u=
sually quite expensive and regressive, so it will a feat to attract any Demo=
cratic support, especially for him. </span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquo=
te></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Br=
ady's Push </span><br></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><span></span><br></blockquote></blockquote><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Meanwhile, Ways and Means C=
hair Kevin Brady has said that he wants a vote this year on moving the Unite=
d States into a territorial tax system, which would permanently exempt US-ba=
sed businesses from paying taxes on income earned abroad. &nbsp;He also want=
s to lower the corporate rate to 20 percent. &nbsp;In the face of these prop=
osals it is difficult to see what sort of compromise can be found between De=
mocrats and Republicans, as the former may be more preoccupied just keeping a=
live the idea that foreign profits should be taxed at all. =E2=80=9CThe goal=
of these reforms are not to generate more spending,=E2=80=9D Brady said. =E2=
=80=9CIt=E2=80=99s to bring back real dollars to be reinvested in the United=
States.=E2=80=9D</span><br></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Brady has been advoca=
ting for international tax reform since he took over Ways and Means. &nbsp;L=
ast month, he spoke with Sen. Hatch and they were both committed to getting s=
omething done. &nbsp;Senior Republicans believe the country=E2=80=99s intern=
ational tax problems =E2=80=94 inversions and Europe going after revenues fr=
om U.S. companies among them =E2=80=94 are urgent. &nbsp;But Brady strongly h=
inted that all that work would be aimed at setting things up for 2017, when R=
epublicans want =E2=80=9Cpro-growth tax reform under a Republican president.=
=E2=80=9D Perhaps that=E2=80=99s no huge shock, but it does seem to set up s=
omething of a disconnect, given all the talk of urgency.</span><br></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span><=
/span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><span>Brady and his supporters have been pushing the idea that A=
merican money is either being taxed by other countries or being taken over b=
y foreign competitors in an inversion -- typically, when an American company=
incorporates abroad so its earnings are no longer subject to American taxes=
. &nbsp;Brady says the result is an erosion of our tax base and a lock-out e=
ffect of American capital being =E2=80=9Ctrapped=E2=80=9D abroad that can be=
solved by fixing our uncompetitive tax code.</span><br></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>Presidential Proposal</span><br></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Presid=
ent=E2=80=99s FY 2017 budget contains a surprising source of new revenue to p=
ay for its spending programs =E2=80=93 a major piece of international tax po=
licy reform: a six-year, $478 billion public-works program for highway, brid=
ge and transit upgrades, half of it to be financed with a one-time, 14 perce=
nt tax on U.S. companies=E2=80=99 overseas profits and a 19 percent rate the=
reafter. &nbsp;The issue of companies holding foreign profits at locations a=
broad, where they are exempt from taxation until repatriated, has vexed poli=
cy makers on both sides for some time. &nbsp;It=E2=80=99s estimated that the=
se profits add up to nearly $2 trillion. </span><br></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>The issue of companies holding foreign profits at locations abroad, there=
by exempt from taxation unless those profits are brought home, has vexed pol=
icy makers on both sides for some time. &nbsp;Microsoft Corp., Apple Inc., G=
oogle Inc. and five other tech firms now account for more than a fifth of th=
e $2.10 trillion in profits that U.S. companies are holding overseas. &nbsp;=
In keeping with the idea that Obama=E2=80=99s final budget is =E2=80=9Cmore p=
olitics than policy,=E2=80=9D these revenue-gaining proposals are meant to s=
park discussion more so than be a model for laws going forward. </span><br><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span></span><br></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><span>Upcoming/Recent Updates</span><br></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><=
br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><span>=E2=80=A2 &nbsp;Customs Bill</span><br></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Mu=
nicipal Bond Rule</span><br></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Budget Irresolution </sp=
an><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><span>International Tax Status &nbsp;(Feb. 11)</sp=
an><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Obama's =
FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb=
. 3)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Fed Holds=
Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><span>Debate Myths Challenged &n=
bsp;(Jan. 25)</span><br></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</s=
pan><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=
=3D"cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></bl=
ockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>2016 Tax Agenda on th=
e Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13=
)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>S=
anders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sanders' Fin Reg P=
roposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote><blockquote type=
=3D"cite"><blockquote type=3D"cite"><span>Year-End Review: Fiscal Policy (Ja=
n. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (=
Dec. 15)</span><br></blockquote></blockquote><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><span>Customs Bill &nbsp;(Dec=
. 8)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp=
;(Dec. 3)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><span></span><br></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>On Feb 10,=
2016, at 7:41 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachas=
[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Mike &amp; Co. --</span><br></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><span>The Chair of the Federal Reserve went before House Financial Ser=
vices to provide a report on the nation's economic condition, a kind of bi-a=
nnual checkup. No news was made, no fireworks went off and no market mood sw=
ings occurred. &nbsp;As for the Fed's next move, it's wait-and-see a little w=
hile longer. </span><br></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>We th=
ought it might happen in March, signs pointed to it. &nbsp;Now, the guess is=
June (sound familiar?) &nbsp;For details, don't wait, see below.</span><br>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>Best, </span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>Dana </span><br></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><span>----------</span><br></blockquote></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Economic Checkup</span><br></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><span>Fed Chair Yellen testified before House Financial Services this m=
orning for the Federal Reserve=E2=80=99s bi-annual Monetary Policy Report. &=
nbsp;These appearances allow Yellen to explain the Fed=E2=80=99s, actually t=
he Federal Open Market Committee (FOMC)=E2=80=99s, analysis and projections r=
egarding America's economic performance as well as to signal the factors und=
erlying its actions in the months ahead. &nbsp;</span><br></blockquote></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span>The rate change in December 2015 was the first t=
ime the Fed raised rates since 2006 -- some worry that even a modest increas=
e in rates at this juncture would further slow already limited economic grow=
th after years of uncertainty.</span><br></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><span>The Basics</span><br></blockquote></blockquote></blockquote><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>The bottom line: the FOMC won=E2=80=99t rollback rates in March and it=E2=
=80=99s not likely to raise them either. &nbsp;The Fed likes what it sees in=
the labor market, wage growth looks strong, and emerging market missteps co=
ntinue to be a threat to the US economy but perhaps not an immediate one. &n=
bsp;The next rate move is almost certain to be an increase but it could wait=
until June or later. </span><br></blockquote></blockquote></blockquote><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>Yellen reiterated much of the FOMC statement from last month: &nbsp;the l=
abor market remains strong, but shows some signs of remaining slack, that th=
e low inflation we have seen is caused by =E2=80=9Ctransitory=E2=80=9D effec=
ts (low energy prices), and that global market uncertainty creates some leve=
l of risk for slow growth at home and abroad. &nbsp;Though Yellen did not ma=
ke a prediction on how long these transitory market effects would last, a nu=
mber of forecasts for oil prices show the dip lasting through 2016.</span><b=
r></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Expanding on global growth i=
ssues, Yellen said "These developments, if they prove persistent, could weig=
h on the outlook for economic activity and the labor market, although declin=
es in longer-term interest rates and oil prices could provide some offset," s=
he added: "Foreign economic developments, in particular, pose risks to US ec=
onomic growth." </span><br></blockquote></blockquote></blockquote><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></=
span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span>Partisan Review</spa=
n><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>The GOP is generally critical of "accommo=
dative" (lower) Fed rates. &nbsp;&nbsp;High-net-worth individuals benefit th=
e most from high rates through dividends and interest from savings. &nbsp;Lo=
w rates allow more growth for the middle- and lower-classes at the risk of i=
nflation, tacitly supporting Democrats=E2=80=99 progressive fiscal policy go=
als. &nbsp;Some conservative economists have gone so far as to blame low int=
erest rates pushed by the Fed in the 1990=E2=80=99s for the market meltdown i=
n 2007, claiming that cheap credit was the cause of the overheated housing m=
arket.</span><br></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br><=
/blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span>Strong Labor Market</span><br><=
/blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span>Discussing the labor market in greater detail, Ye=
llen pointed to the cumulative increase in employment since 2010 of 13 milli=
on jobs. &nbsp;The rate in January fell to 4.9 percent, 0.8 points below its=
level one year ago; measures of labor market conditions such as the number o=
f people who are working part-time but want to move to full-time positions a=
nd the number of individuals who want to work but haven=E2=80=99t searched r=
ecently are also decreasing steadily. &nbsp;Regarding these broader labor ma=
rket indicators Yellen testified that =E2=80=9C=E2=80=A6 these measures rema=
in above the levels seen prior to the recession, suggesting that some slack i=
n labor markets remains. Thus, while labor market conditions have improved s=
ubstantially, there is still room for further sustainable improvement."</spa=
n><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>Forward Guidance</span><br></blockquote><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><span></span><br></blockquote></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>As always, Yellen was careful not to give hints on what the Fed=
is planning to do in future meetings; speaking on the path forward for the =
Fed Funds rate Yellen said =E2=80=9COf course, monetary policy is by no mean=
s on a preset course. The actual path of the federal funds rate will depend o=
n what incoming data tell us about the economic outlook, and we will regular=
ly reassess what level of the federal funds rate is consistent with achievin=
g and maintaining maximum employment and 2 percent inflation.=E2=80=9D</span=
> <br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>Yellen was asked about the chances of the =
FOMC rolling back the rate hike it announced in December: &nbsp;"I do not ex=
pect the FOMC is going to be soon in the situation where it's necessary to c=
ut rates If the FOMC delayed the start of policy normalization for too long,=
it might have to tighten policy relatively abruptly in the future to keep t=
he economy from overheating and inflation from significantly overshooting it=
s objective. Such an abrupt tightening could increase the risk of pushing th=
e economy into recession." </span><br></blockquote></blockquote></blockquote=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><span></span><br></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Comment on D=
odd-Frank</span><br></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>During the Q&amp;A portion of=
her testimony, Yellen was asked about financial regulation, both in terms o=
f breaking up the banks and enforcing the regulations brought on by Dodd-Fra=
nk. </span><br></blockquote></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><span>In response to being asked if th=
e Fed is trying to break up the banks, she responded: "We are using our powe=
rs to make sure that a systemically important institution could fail, and it=
would not have systemic consequences for the country." Her answer was inter=
esting, because she's not outright saying the banks will be broken up or red=
uced, just that the Fed is trying to ensure that even if they did fail, it w=
ouldn't negatively effect the economy.</span><br></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span></span><br></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Yellen was also asked about the burden of new Dodd-Frank regulations on ban=
ks. She responded: "For our part, we're focused on doing everything that we c=
onceivably can to minimize and reduce the burden on these banking organizati=
ons. We've been conducting an EGRPRA review to identify potential burdens th=
at our regulations impose." An EGRPRA review is connected to the Economic Gr=
owth and Regulatory Paperwork Reduction Act, which requires regulations impo=
sed on financial institutions to be reviewed by the agencies at least once e=
very 10 years. The purpose is to prevent burdensome regulations that could h=
inder a bank's ability to serve its customers. </span><br></blockquote></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span></span><br></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><span>The Bottom Line</span><br></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><span></span><br></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Fed watcher=
s make their living by trying to predict what the FOMC will or won=E2=80=99t=
do at their meetings, and on days when Yellen is scheduled to testify befor=
e Congress you can bet that they=E2=80=99re listening intently. &nbsp;While Y=
ellen was careful not to project the Fed=E2=80=99s moves, the general sentim=
ent in the markets is that FOMC won=E2=80=99t be raising rates at its March m=
eeting. &nbsp;The CME Group FedWatch tool, which estimates FOMC rate hikes b=
ased on its futures prices, predicts a 95% probability that the Fed will mai=
ntain its current rate target in March. &nbsp;Some forecasters go even furth=
er -- expecting that the funds rate won=E2=80=99t be raised all year. </span=
> <br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>Traders see the ongoing economic struggles=
of emerging economies, particularly in China, as evidence that the Fed won=E2=
=80=99t continue with its scheduled 4 rate hikes this year. &nbsp;Certainly,=
considering the testimony today that 1) continued emerging market uncertain=
ty can weigh down the US economy and 2) that poor performance in the US econ=
omy would cause the Fed to change course on its rate hike schedule, a link b=
etween poor emerging market performance and fewer Fed rate hikes seems plaus=
ible. &nbsp;Certainly the trading on Fed fund futures indicates that the mar=
kets believe this is the case.</span><br></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><span></span><br></blockquote></blockquote></blockquote><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>------=
-</span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></bloc=
kquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Recent Updates</span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></bl=
ockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote typ=
e=3D"cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span=
> <br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span>Tax Talk of the Town &nb=
sp;(Feb. 3)</span><br></blockquote></blockquote></blockquote><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Defendi=
ng Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 2=
8)</span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Debate Myths Cha=
llenged &nbsp;(Jan. 25)</span><br></blockquote></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote></bloc=
kquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</s=
pan><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>HRC's Tax Policy &nbs=
p;(Jan. 17)</span><br></blockquote></blockquote></blockquote><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>2016 Ta=
x Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockqu=
ote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)<=
/span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sanders Proposals/G=
S &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year=
-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span>=
<br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(=
Dec. 14)</span><br></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>FY 2016 Omn=
ibus Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><spa=
n>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)=
</span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></block=
quote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>----</span><br></blockquote></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><span></span><br></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span></span><br></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>On Feb 9, 2016, at 7:42 PM, Dana &lt;<a href=3D"mailto:danachas=
[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span=
> <br></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>Mike &amp; Co. --</span><br></blockquote><=
/blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Today=
, President Obama submitted his eighth and final budget proposal to Congress=
. &nbsp;It tops the $4 trillion mark for the first time. &nbsp;&nbsp;Despite=
the historical tendency for lame duck presidential budgets to be treated as=
scrap paper -- this one won't even be accorded the courtesy of a hearing in=
House Budget -- there are a few noteworthy proposals and initiatives which,=
if nothing else, are likely to generate discussion on the Hill and off. &nb=
sp;</span><br></blockquote></blockquote></blockquote></blockquote><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><span>That=E2=80=99s the real purpose of this budget -- to=
help frame the debate in 2016 about where America is headed what the nation=
's priorities should be. &nbsp;A number of the proposals in this budget reso=
nate with issues and themes already being debated. &nbsp;Candidates in parti=
cular seeking to emphasize support for or opposition to the President have a=
new set of proposals at their disposal. </span><br></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>What is new an=
d noteworthy in the White House budget and what's next for it? &nbsp;Detail b=
elow. </span><br></blockquote></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span>Special thanks to those of you in NH tonight. &nb=
sp;Fingers crossed and stay tuned this way: &nbsp;&nbsp;<a href=3D"http://po=
liti.co/20n5W2w">http://politi.co/20n5W2w</a> </span><br></blockquote></bloc=
kquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Best,</span=
> <br></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Dana</span><br></blockquote></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>---------</span><br></blockquote></blo=
ckquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=
=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Obam=
a Administration put forth a myriad of budget proposals revolving around a v=
ariety of issues. &nbsp;Below are thoughts on some of the most significant o=
f these from a fiscal and financial regulatory perspective: </span><br></blo=
ckquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
span>=E2=80=A2 &nbsp;$10/Barrel Transportation Tax</span><br></blockquote></=
blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>A per=
ennial favorite of Democrats has made a return in the Obama budget: &nbsp;a $=
10.25 per barrel tax on oil, $319 billion in revenue from which will go towa=
rd funding =E2=80=9Ca 21st Century Clean Transportation Plan to upgrade the n=
ation=E2=80=99s transportation system, improve resilience and reduce emissio=
ns." &nbsp;The proposed tax is a simplified version of =E2=80=9Ccarbon taxat=
ion=E2=80=9D policies, which aim to tax energy producers and oil companies b=
ased on the level of pollution they produce; =E2=80=9Ccap and trade=E2=80=9D=
was a similar policy idea but with more complicated implementation. &nbsp;<=
/span><br></blockquote></blockquote></blockquote></blockquote><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>The tax will be phased in over five years and levied agai=
nst oil companies, with the revenue to help fund clean energy initiatives li=
ke expanding high-speed rail systems and also to increase national infrastru=
cture spending. &nbsp;The appeal of this flat-tax on oil is its simplicity =E2=
=80=93- there is nothing complicated about charging oil companies $10.25 per=
barrel of oil, meaning there=E2=80=99s no way for them to shirk the charge.=
</span><br></blockquote></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span>Supporting the tax would lend candidates some environme=
ntal bonafides, but might be seen as a backdoor &nbsp;tax on the middle-clas=
s. Though paid for by oil companies, the &nbsp;price is expected to be passe=
d along to consumers through higher prices. &nbsp;The tax is expected to inc=
rease the price of gasoline by 25 cents per gallon.</span><br></blockquote><=
/blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=E2=80=
=A2 &nbsp;Funding Fin. Reg. Like it Matters </span><br></blockquote></blockq=
uote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Obama propo=
ses to double the budget for Wall Street regulators SEC and CFTC over ten ye=
ars, beginning with an 11 percent increase for SEC and 32 percent for CFTC i=
n 2017. &nbsp;Clinton has a lot to like in this particular section =E2=80=93=
she=E2=80=99s the only candidate who has defended Dodd-Frank and is campaig=
ning on proposals to strengthen current regulations, including through great=
er budgets for regulatory agencies. &nbsp;Leaders for both regulators have c=
omplained that their responsibilities far outstrip their budget. </span><br>=
</blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><span>The proposal is more realistic than the oil tax, although not nece=
ssarily something that will definitely be enacted. &nbsp;The SEC has called f=
or increased funding recently. &nbsp;SEC chairman Mary Jo White asked at a H=
ouse Financial Services Committee hearing in November for $1.8 billion in fu=
nding for fiscal 2017. &nbsp;In a time when Republicans are looking to reduc=
e regulatory burdens against banks, an increase in regulators=E2=80=99 budge=
ts highlights the difference in priorities on Wall Street. </span><br></bloc=
kquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>=E2=80=A2 &nbsp;Boosting R and D</span><br></blockquote></blockquote></b=
lockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><span>The budget increase=
s R&amp;D funding by four percent for a total of $152 billion in 2017; among=
changes are a doubling of clean energy research and funding a $1 billion ca=
ncer =E2=80=9CMoonshot=E2=80=9D research program aimed at eliminating the di=
sease. </span><br></blockquote></blockquote></blockquote></blockquote><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;Apprenticeship Training Fu=
nd</span><br></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>The budget establishes a $2 billion mandatory Apprent=
iceship Training Fund =E2=80=93 meant to double the number of apprenticeship=
s across the United States. &nbsp;Only HRC has talked about the need for inc=
reasing the number of apprenticeships in the country during the election, fa=
voring a tax-credit policy rather than direct funding. </span><br></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
Congressional Prospects</span><br></blockquote></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><span>Obama=E2=80=99s proposal is not o=
nly a prelude to battle. &nbsp;Lawmakers and the administration will have to=
strike some sort of deal to keep the government running when the current fi=
scal year ends on Sept. 30 =E2=80=94 most likely a continuing resolution to k=
eep the lights on through the election and early into 2017. &nbsp;In a sign t=
hat Obama isn=E2=80=99t looking for a knock-down spending fight this year, t=
he president=E2=80=99s proposal abides by the discretionary caps for fiscal 2=
017 set by last year=E2=80=99s bipartisan budget deal. </span><br></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
Congressional leadership may have a fight on its hands even without Obama ma=
king waves =E2=80=93 if the Freedom Caucus membership decides to make its di=
spleasure on the budget known then it could cause rancor amongst the GOP. &n=
bsp;In a year when the party is desperate to project an image of capable lea=
dership, in part by passing a complete budget for the first time since 1997,=
a blow-up between Ryan and the back-benchers would amount to nothing less t=
han catastrophe.</span><br></blockquote></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><span>At a more granular level, Obama=E2=80=99=
s blueprint is a grab-bag of Democratic priorities. &nbsp;The administration=
is once again calling for expanding early education in his 2017 budget, ask=
ing for more pre-K grants, a child care expansion and a small boost to Head S=
tart. &nbsp;The budget boosts spending for Obamacare Medicaid expansion by $=
2.6 billion over a decade, designed to be an enticement to the 19 holdout st=
ates that have yet to take effect.</span><br></blockquote></blockquote></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Republicans and the B=
udget</span><br></blockquote></blockquote></blockquote></blockquote><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><span></span><br></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>The Republicans have a differ=
ent plan for the budget this year, naturally. &nbsp;Speaker Ryan has stated t=
hat he intends to pass the budget and all 12 appropriations through the hous=
e -- a feat that hasn't been accomplished in two decades.</span><br></blockq=
uote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><spa=
n></span><br></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>The Republicans have a different plan for the budget t=
his year, naturally. &nbsp;Speaker Ryan has stated that he intends to pass t=
he budget and all 12 appropriations through the house - a feat that hasn't b=
een accomplished since 1997. &nbsp;Although Ryan and the GOP House leadershi=
p hope to gain the faith of the American people back by bringing about the r=
eturn of regular order, they face a tight calendar and the political implica=
tions of an election year -- not to mention internal opposition in the form o=
f the Freedom Caucus. &nbsp;Should the back-benchers feel their concerns are=
n=E2=80=99t being adequately addressed, they may try to disrupt the passage o=
f appropriations bills. &nbsp;The care and feeding of these members on budge=
t matters may be turn out to be one of the toughest challenges Ryan will fac=
e this year.</span><br></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><span></span><br></blockquote></blockquote></bloc=
kquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span>-----------------</spa=
n><br></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>Recent Updates</span><br></blockquote></bl=
ockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span>=
<br></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote></bl=
ockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Tax Tal=
k of the Town &nbsp;(Feb. 3)</span><br></blockquote></blockquote></blockquot=
e></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Defending Dodd-Frank &nbsp;=
(Feb. 2)</span><br></blockquote></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</sp=
an><br></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockq=
uote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><spa=
n>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Regulating the=
Regulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><span>Sanders' Tax/Healthcare Poli=
cy &nbsp;(Jan 20)</span><br></blockquote></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span=
> <br></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockqu=
ote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>2016 Tax Policy I=
ssues &nbsp;(Jan. 8)</span><br></blockquote></blockquote></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan.=
7)</span><br></blockquote></blockquote></blockquote></blockquote><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br>=
</blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin=
. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote=
> </blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Om=
nibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span>FY 2016 Omnibus Talks (D=
ec. 10)</span><br></blockquote></blockquote></blockquote></blockquote><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote></blockquo=
te></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Brown on HFT &=
nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><span></span><br></blockquote></blockquote></blockquote></blockquote><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>On Feb 3, 2016, at=
7:09 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachasin@gmail.=
com</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><spa=
n></span><br></blockquote></blockquote></blockquote></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Mike &amp; Co.=
--</span><br></blockquote></blockquote></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>Upbeat tax talk is as common t=
his time of year as predictions that this year the Cubs will win the World S=
eries this fall. &nbsp;The word is that Messrs. Ryan and McConnell want to r=
un a smooth, efficient, maybe even a productive ship this year on the theory=
that voters will reward the GOP in November and that they will forget the r=
ecord of the last seven years. &nbsp;The Speaker and the President have had a=
recent meeting and mini-meeting of the minds on taxes. &nbsp;That might cre=
ate the right climate for passage of broad tax reform. </span><br></blockquo=
te></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>But really the gravitational pull is n=
ot toward gravitas, but away from the center, away from the Hill itself. &nb=
sp;The GOP presidential nominee might very well have to run against any bipa=
rtisan ("Washington") compromise on tax policy, making for an embarrassing i=
ntraparty policy conflict at the time the leadership most needs to project u=
nity.</span><br></blockquote></blockquote></blockquote></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Amid the turbulence of the b=
roader campaign, where do the various tax discussions in the Hill stand, wha=
t bills night come up for votes, is there anything that might pass?</span><b=
r></blockquote></blockquote></blockquote></blockquote></blockquote><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>Best,</span><br></blockqu=
ote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Dana</span><br></blockquote></blockqu=
ote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span>________________________________</span><br></bloc=
kquote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Forms of Reform under Discussion</spa=
n><br></blockquote></blockquote></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>=E2=80=A2 Comprehensi=
ve -- Defined as involving a bipartisan trade-off between lowering taxes and=
broadening the base; closing exemptions, deductions, credits, etc. &nbsp;Bo=
th Democratic candidates have outlined plans to reduce loopholes, such as th=
e "Romney loophole" and the "Bermuda loophole," which allow very rich Americ=
ans to avoid paying their fair share. </span><br></blockquote></blockquote><=
/blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span>=E2=80=A2 Corporate -- Many of the issues with the corp=
orate tax system could be addressed through international tax reform, becaus=
e so many companies earn capital abroad. However, corporate tax reform at ho=
me deals with issues like taxing dividends and leveling the playing field be=
tween small and large businesses. </span><br></blockquote></blockquote></blo=
ckquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=
=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><span>=E2=80=A2 International - Deals with foreign earnings of A=
merican firms abroad. Specifically, current international tax reform aims at=
preventing inversions and coming up with a more successful way to tax forei=
gn capital earned by American companies, as well as finding ways to encourag=
e companies to move profits home from abroad.</span><br></blockquote></block=
quote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span>Forums for Tax Reform</span><br></blockquote></=
blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>=E2=80=A2 Ways &amp; Means: &nbsp;Kevin Br=
ady became Chair of the Committee in November 2015. He reportedly hopes to h=
ave an international tax reform proposal out of Ways and Means this year. &n=
bsp;He says he wants to allow American companies to bring their foreign prof=
its back and invest at home and to lower the corporate tax rate to less than=
20 percent.</span><br></blockquote></blockquote></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Brady=
gave the opening statement at a hearing on =E2=80=9CReaching America=E2=80=99=
s Potential.=E2=80=9D &nbsp;&nbsp;For what it's worth, he laid out six goals=
for his committee in the coming months -- and they are ambitious:</span><br=
> </blockquote></blockquote></blockquote></blockquote></blockquote><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></=
blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>=C2=B7 Tax reforms to boost investment and=
job creation;</span><br></blockquote></blockquote></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=C2=
=B7 Welfare reforms to help more people join the workforce and achieve the A=
merican dream.</span><br></blockquote></blockquote></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=C2=
=B7 Health reforms to truly make health care more affordable and accessible;=
</span><br></blockquote></blockquote></blockquote></blockquote></blockquote=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=C2=B7 Trade ex=
pansion to open more foreign markets to American goods and services;</span><=
br></blockquote></blockquote></blockquote></blockquote></blockquote><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span>=C2=B7 Entitlement refor=
ms to strengthen Medicare and Social Security for the long haul and; &nbsp;<=
/span><br></blockquote></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><span>=C2=B7 Government=
reforms to boost efficiency and effectiveness instead of stifling jobs and h=
igher wages.</span><br></blockquote></blockquote></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></spa=
n><br></blockquote></blockquote></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Brady=E2=80=99s state=
ment that tax reform will come up in the coming weeks, coupled with Ryan=E2=80=
=99s recent visit with Obama (specifically to find areas of cooperation), ma=
y indicate a broad-based reform package making its way forward in 2016. &nbs=
p;Another interesting bullet point is trade expansion, despite McConnell=E2=80=
=99s promise that TPP won=E2=80=99t be voted on before November. </span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span> =E2=80=A2 Senate Finance: &=
nbsp;&nbsp;The Senate Finance Committee has its focus set on bipartisan work=
ing groups designed to produce tax reform on multiple levels -- individual, c=
orporate, and international. However, there have been many challenges and st=
alemates along the way because of the stringent partisanship currently ailin=
g the Senate. </span><br></blockquote></blockquote></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Th=
is election has been defined, more so than others, by the massively diverse s=
et of tax policies proposed by each candidates =E2=80=93 from flat taxes, ca=
pital gains reforms, financial transaction taxes and more. &nbsp;Sen. Hatch,=
Chair of Finance, has already called for reform efforts in 2016, targeting i=
nternational corporate rates specifically =E2=80=93 but it=E2=80=99s possibl=
e that Brady is trying to shift him and others toward more ambitious proposa=
ls. &nbsp;Any high profile move Ryan makes here will likely be a controlling=
factor on tax policy. &nbsp;</span><br></blockquote></blockquote></blockquo=
te></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>=E2=80=A2 Between the Branches -- Speaker Ryan and Pres. Obama m=
et yesterday to discuss a variety of issues, one of which was related to the=
Earned Income Tax Credit. &nbsp;Both hope to expand the credit to include l=
ow-earning workers who DON'T have children. &nbsp;It's unclear how successfu=
l their cooperation will be, but at the very least, they share a common goal=
. </span><br></blockquote></blockquote></blockquote></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Politico portr=
ayed the meeting as campaign kabuki: =E2=80=9CRather than cut any deals with=
Obama, Ryan=E2=80=99s hoping to spend 2016 developing what he=E2=80=99s cal=
ling a detailed GOP agenda on poverty, taxes, health care and other issues h=
e=E2=80=99s hoping will factor into the presidential campaign and provide a b=
lueprint for House Republicans as they grapple with a new president next yea=
r.=E2=80=9D &nbsp;It=E2=80=99s not surprising to see this given the pressure=
this election will put on the new Speaker. &nbsp;He needs to set a strong f=
oundation for his own future, and helping Obama score a tax touchdown on him=
is not on the top of his list of objectives. &nbsp;</span><br></blockquote>=
</blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>During a statement before he met with Obama, Ryan said =E2=
=80=9CWe will take our conservative principles and we will apply those conse=
rvative principles to the problems of the day to offer our fellow citizens s=
olutions to the problems in their daily lives =E2=80=A6. These are not going=
to be things that we will be able to accomplish with this president still i=
n the White House. It is an agenda for what we will do next year with a Repu=
blican president to get our country back on track. This is what 2016=E2=80=99=
s all about. It=E2=80=99s going to be a year of ideas.=E2=80=9D</span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><span>Political Realities</span><br></blockquote></=
blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>William Gale and Aaron Krupkin, researcher=
s at Brookings, recently wrote a paper titled =E2=80=9CMajor Tax Issues in 2=
016;=E2=80=9D Keeping in mind both the current political climate and the pro=
bable environment for legislation in 2016, the two researchers write that =E2=
=80=9CComprehensive tax reform is easy to talk about, but hard to do. The pu=
rsuit of sweeping tax simplification is a noble goal, but quixotic.=E2=80=9D=
&nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>At the end of the day 2016 i=
s an election year and any legislative proposals that come forward during it=
will reflect that. &nbsp;There are many exciting possibilities for tax refo=
rm in 2016, but there is also no reason to think that the political gridlock=
that has defined Washington for so long will ease up enough while both part=
ies vie for control of the country by drawing contests. </span><br></blockqu=
ote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>----------------</span><br></blockquo=
te></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Recent Updates</span><br></blockquote=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></=
blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockqu=
ote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</=
span><br></blockquote></blockquote></blockquote></blockquote></blockquote><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>Fiscal Pol: Defici=
t/Debt Dormancy (Jan. 28)</span><br></blockquote></blockquote></blockquote><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)=
</span><br></blockquote></blockquote></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Regulating the R=
egulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquot=
e></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span=
> <br></blockquote></blockquote></blockquote></blockquote></blockquote><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span>2016 Tax Agenda on the=
Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote></blockquote></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockqu=
ote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br><=
/blockquote></blockquote></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>Sanders Proposals/GS &amp; TB=
TF (Jan. 7)</span><br></blockquote></blockquote></blockquote></blockquote></=
blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sande=
rs' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Re=
view: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></b=
lockquote></blockquote></blockquote></blockquote></blockquote><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 1=
4)</span><br></blockquote></blockquote></blockquote></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>FY 2016 Omnibu=
s Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquot=
e></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(De=
c. 3)</span><br></blockquote></blockquote></blockquote></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>----</span><br></blockquote=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></=
blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span></span><br></blockquote></blockquote></blockquote></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><span>On Feb 2, 2016, at 11:59 PM, Dana &lt;<a href=
=3D"mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><=
br></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span>Mike &amp; Co. --</span><br></blockquote=
> </blockquote></blockquote></blockquote></blockquote></blockquote><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
Congratulations, team. &nbsp;Last night's narrow win in Iowa provided a big m=
oral victory and took some of the win out of the challenger's sails. &nbsp;I=
t also means that, for at least several weeks, the Democratic nomination con=
test will continue apace. &nbsp;And it is likely that Wall Street regulation=
will likely remain one the &nbsp;campaign's central issues. &nbsp;</span><b=
r></blockquote></blockquote></blockquote></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>At the heart of this debate is the Dodd-Frank Act (DFA). &nbsp;=
&nbsp;Public opinion is still influenced in the main by memories of the 2008=
financial crisis and the recession that followed, so the candidates' views o=
n DFA get special attention. &nbsp;</span><br></blockquote></blockquote></bl=
ockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>Below, we re-exami=
ne these views and try to clear up the misconceptions that make it hard for v=
oters to identify the candidate best able to defend the protections that DFA=
provides millions of American consumers, investors, and workers. </span><br=
> </blockquote></blockquote></blockquote></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Best,</span><br></blockquote></blockquote></blockquote></blockq=
uote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Dana</span><br></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>-----------=
------</span><br></blockquote></blockquote></blockquote></blockquote></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span>The assertion that DFA doesn=E2=80=99t do enoug=
h to rein in Wall Street has become some sort of progressive shibboleth that=
as misleading as it is short-sighted and self-defeating. &nbsp;&nbsp;</span=
> <br></blockquote></blockquote></blockquote></blockquote></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Polling shows the American public believes strong financial reg=
ulation is critically needed (74 percent of Democrats, 56 percent Independen=
ts, 46 percent Republicans, 64 percent all voters). &nbsp;Polling has also s=
hown that 66 percent of Americans are either =E2=80=9Cnot very familiar=E2=80=
=9D with or have =E2=80=9Cnever heard of=E2=80=9D Dodd-Frank. &nbsp;It is di=
fficult for reasonable dialogue to be conducted in an environment made up of=
strong support for regulatory reform on one hand and a lack of knowledge of=
what is in DFA on the other.</span><br></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span>Any public debate on DFA=
is hampered by the complexity of the issues involved. &nbsp;Additionally, t=
here is a perception that it has failed in its objectives. &nbsp;Beyond the f=
act that the law isn=E2=80=99t even fully implemented, major financial insti=
tutions have already begun restructuring in ways that indicate the law is wo=
rking properly. &nbsp;&nbsp;But how many voters know this?</span><br></block=
quote></blockquote></blockquote></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
span>Has Dodd-Frank Worked?</span><br></blockquote></blockquote></blockquote=
> </blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><span>The Great Recession and th=
e resulting Dodd-Frank Act changed the trajectory of the financial industry.=
&nbsp;The law isn't perfect but it is having a stabilizing effect. &nbsp;So=
me of the biggest firms on Wall Street -- MetLife, CitiGroup, General Electr=
ic -- have shrunk since the law was enacted and as a direct result of its re=
gulations. &nbsp;Those that haven't shrunk are under even more pressure to b=
reak up or reduce their size now than they were before Dodd-Frank.</span><br=
> </blockquote></blockquote></blockquote></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>The candidates are split concerning whether or not DFA is an fu=
ll and sufficient model for regulating financial markets. &nbsp;While HRC wa=
nts to preserve and protect the progress made by DFA while bolstering certai=
n parts of the law, while Sanders considers the law to be well intentioned y=
et deeply flawed. &nbsp;However, questions should be raised about judging th=
e DFA=E2=80=99s efficacy right now - each candidate is forming an opinion on=
the act despite the fact that DFA hasn=E2=80=99t even reached maturity yet -=
only about 70 percent of DFA provisions have been implemented. &nbsp;Beyond=
the implementation gap is the issue that the results of financial reform ca=
nnot be seen overnight. &nbsp;A piece of legislation as large and multifacet=
ed as Dodd-Frank might take a decade to ripen. </span><br></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote><blockquote type=
=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Even a=
s the greatest effects of DFA remain to be see, recent events indicate that D=
FA is working as it was intended to. &nbsp;Any candidate who claims that DFA=
is in need of major overhaul needs to answer this question: What pressing n=
eed is there to overturn a law that has, to this point, largely accomplished=
its overarching objectives? </span><br></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span>2016 Candidates and Dodd=
-Frank</span><br></blockquote></blockquote></blockquote></blockquote></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span>The candidates in this year's primaries have gi=
ven voters two choices: stick with Dodd-Frank and add some tweaks or repeal i=
t/change it fundamentally. There is only one candidate in the former group -=
HRC. Every other candidate, including Bernie Sanders, intends to greatly ch=
ange Dodd-Frank, or get rid of it all together, if elected. With that choice=
in mind, it is necessary to remember how monumental Dodd-Frank was and the p=
olitical climate that it was passed in - one with a Democratic majority in b=
oth houses. &nbsp;&nbsp;</span><br></blockquote></blockquote></blockquote></=
blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>DFA enjoyed widespread suppor=
t in the years immediately following its passage; Clinton needs to ring the a=
larm bells that her opponents intend to kill off an effective tool for regul=
ating Wall Street for the sake of trying out unproven strategies that are bu=
ilt more on ideology than policy. &nbsp;</span><br></blockquote></blockquote=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Obviously, mo=
st Republican candidates would prefer to do away with Dodd-Frank completely a=
s it is greatly disliked by their biggest supporters. Bernie Sanders propose=
s something similar to Glass-Steagall, but also wants to create a list of th=
e banks that are "too-big-too-fail" and "break them up." He outlined his int=
entions in legislation he proposed to Congress back in May 2015. Bloomberg P=
olitics notes, "Similar to legislation he introduced in previous years, when=
Democrats controlled the U.S. Senate, the bill has little chance of advanci=
ng." &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>So voters can decide on strengthening a la=
w that is already working to reign in Wall Street's risks or abandoning it f=
or either less regulation or poorly aimed regulations. Considering the histo=
rical record of these other reform ideas, how can voters be expected to take=
those suggestions seriously?</span><br></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span><=
/span><br></blockquote></blockquote></blockquote></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>On Jan 28, 2016, at 8:19 PM, D=
ana &lt;<a href=3D"mailto:[email-masked]">[email-masked]</a>&gt;=
wrote:</span><br></blockquote></blockquote></blockquote></blockquote></bloc=
kquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>Mike &amp; Co. --</span><=
br></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquot=
e></blockquote></blockquote></blockquote></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Ordinarily this time of year, you wou=
ld perhaps start to spot leaks or hear scuttlebutt about the president's spe=
nding plans for the next fiscal year, in anticipation of the statutory Febru=
ary White House budget rollout. &nbsp;No one noticed when the administration=
announced it would miss next week's legal budget submission deadline. &nbsp=
;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>With FY17 toplines set in t=
he omnibus bill passed last month, you may hear little in the Beltway about t=
he budget anytime soon (although the Chair did announce plans yesterday to i=
ntroduce a budget resolution this year, to the surprise of many, including M=
ajority Leader McConnell). &nbsp;</span><br></blockquote></blockquote></bloc=
kquote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>E=
ven on the campaign trail in the Granite State, with its famously flinty tax=
-o-phobes, nary a word is heard about the debt, let alone defaulting it, not=
this year. &nbsp;</span><br></blockquote></blockquote></blockquote></blockq=
uote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan></span><br></blockquote></blockquote></blockquote></blockquote></blockqu=
ote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The federal=
budget, deficits, and the debt have not yet gotten much air play yet this c=
ampaign. &nbsp;But if we lifted up the car hood, what would we see? &nbsp;Wh=
at is our medium-long term fiscal outlook, what would the impact on it of th=
e candidates' proposals be, and what fiscal issues are most likely to arise i=
n the primary debate?</span><br></blockquote></blockquote></blockquote></blo=
ckquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span></span><br></blockquote></blockquote></blockquote></blockquote></bloc=
kquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Best,</span=
> <br></blockquote></blockquote></blockquote></blockquote></blockquote></bloc=
kquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Dana</span><br></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span></span><br></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>--------------</span><br></blockquote></blockquote></blockquote=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>C=
BO 10-year Deficit Projections</span><br></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>T=
he CBO reported last week that it expects the annual deficit to grow from it=
s current $450 billion to $1.3 trillion by 2016. Candidates issuing calls fo=
r increased spending, against this backdrop, may be called to account. &nbsp=
;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Perhaps in recognition of t=
his, both HRC and Sen. Sanders have recently and admirably detailed how they=
would use executive actions to enact parts of their revenue packages withou=
t Congressional support. &nbsp;Both have proposed extensive new spending pla=
ns as part of their primary platform. however, it may be time for the candid=
ates to get serious about the fiscal viability of these plans from a fiscal p=
erspective.</span><br></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></s=
pan><br></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><span>Clinton -- Fiscal=
Stimulus?</span><br></blockquote></blockquote></blockquote></blockquote></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></spa=
n><br></blockquote></blockquote></blockquote></blockquote></blockquote></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><span>HRC has proposed a t=
ax package that will raise federal revenue by $500 billion over ten years, t=
o be used for a $350 billion =E2=80=9CCollege Compact=E2=80=9D plan, for tax=
deductions on health care spending, and to fund an ambitious infrastructure=
investment package. &nbsp;Her spending plans are split between those which p=
rovide short-term economic stimulus and those which are aimed at providing l=
onger-term boost. &nbsp;Her $250 billion plan to increase infrastructure inv=
estment in the country =E2=80=93 paid for by reviving the =E2=80=9CBuild Ame=
rica Bonds=E2=80=9D program and federal revenue -- &nbsp;works on two fronts=
.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>First, hiring middle-class w=
orkers in construction, engineering, and the trades the plan puts more money=
into the hands of people who tend to spend that money quickly. &nbsp;Second=
, improving roads, bridges, and tunnels in America the plan will make future=
transport of goods more reliable, speedy, and safe, all calculated to spur e=
conomic growth. </span><br></blockquote></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><spa=
n></span><br></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The =E2=80=9C=
College Compact=E2=80=9D aims to forgive student loans, lower college tuitio=
n, and make community colleges tuition-free. &nbsp;By removing the burden of=
debt from young graduates, HRC hopes to free those people up to begin consu=
ming at a higher rate. &nbsp;The current home-ownership rate for young Ameri=
cans is distressingly low largely due to their debt burden after college, HR=
C would rather young Americans take debt on in an equity-building purchase t=
han spend thirty years repaying their college degree. &nbsp;</span><br></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></block=
quote></blockquote></blockquote></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><span>The Sanders Health Care Tax Bill</span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>Sanders=E2=80=99 $14 trillion spending pl=
an, his =E2=80=9CMedicare for All=E2=80=9D proposal, would require the singl=
e largest tax hike in the nation=E2=80=99s history, bringing taxes on the we=
althy to levels not seen since Reagan. &nbsp;These taxes, the size of which a=
lready makes them non-starters even among Democrats in Congress, are to be u=
sed to enact single-payer healthcare legislation =E2=80=93 legislation which=
didn=E2=80=99t even get a vote during a Democratic majority in Obama=E2=80=99=
s first term.</span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span><=
/span><br></blockquote></blockquote></blockquote></blockquote></blockquote><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sanders must ho=
pe that the economic efficiency of a single-payer health care plan, which fi=
nds its savings in the reduced role of middle-men and insurance companies, w=
ill result in savings passed onto Americans =E2=80=93 Americans who will, in=
their turn, spend those savings in the economy at large.</span><br></blockq=
uote></blockquote></blockquote></blockquote></blockquote></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><span>He has found political success in his promise to ma=
ke colleges and universities in America tuition-free. &nbsp;The impetus behi=
nd this plan is similar to that of Mrs. Clinton =E2=80=93 students with lowe=
r debt burdens are going to spend a greater portion of their income on food a=
nd entertainment, as well as on equity-investments like homes.</span><br></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><span>Campaign Impact</span><br></blockquote></bl=
ockquote></blockquote></blockquote></blockquote></blockquote></blockquote><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote><blockquote type=
=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>The CBO=E2=80=99s federal budget projections released las=
t week indicated that the annual federal deficit will grow to $1.3 trillion b=
y 2026. &nbsp;It=E2=80=99s unlikely that the CBO report will be linked to th=
e candidates' spending plans in any meaningful way. &nbsp;And to be fair, ea=
ch candidate has put forward proposals to raise revenue equivalent to the co=
sts of their plans (or at least to the extent that their own analyses can be=
trusted); this is often a rarity amongst politicians running for office and=
they should be applauded for doing so. &nbsp;Because of this, both campaign=
s can claim that their proposals will not raise the federal deficit =E2=80=93=
it=E2=80=99s unlikely that those claims will remain unchallenged in the fut=
ure.</span><br></blockquote></blockquote></blockquote></blockquote></blockqu=
ote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>Tax Foundation Analysis</=
span><br></blockquote></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span>Recent analyses by the Tax Foun=
dation, a group which uses dynamic scoring methods to judge revenue, have fo=
und that Clinton=E2=80=99s plan will reduce economic output by 1 percent ove=
r a decade, while Sanders=E2=80=99 proposals will lower GDP by a staggering 9=
.5 percent. &nbsp;Dynamic scoring is a controversial method of analyzing rev=
enue estimates =E2=80=93 it takes into account the supposed deleterious effe=
cts caused by tax increases and attempts to adjust growth the reflect those e=
ffects.</span><br></blockquote></blockquote></blockquote></blockquote></bloc=
kquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>A CRS report published in=
2014, however, stated that =E2=80=9CA review of statistical evidence sugges=
ts that both labor supply and savings and investment are relatively insensit=
ive to tax rates.=E2=80=9D </span><br></blockquote></blockquote></blockquote=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>W=
hile each campaign will be inclined to argue that any analysis which mention=
s economic contraction as an effect of their plans is based on improper econ=
omics, it may not matter to voters whether they=E2=80=99re right or not. &nb=
sp;American voters have always been tax-averse but will pay for what they wa=
nt. &nbsp;Maybe the biggest yet-unanswered question: do they want another ov=
erhaul of he nation's healthcare enough to pay a new record in tax increases=
?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Recent Updates</span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 2=
8)</span><br></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Fed Hold=
s Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote></block=
quote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 2=
1)</span><br></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sanders' Tax=
/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockquote></bloc=
kquote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></block=
quote></blockquote></blockquote></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</=
span><br></blockquote></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Glass-Steagall, T=
ake 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></blockquote></blo=
ckquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></blockq=
uote></blockquote></blockquote></blockquote></blockquote></blockquote><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span=
> <br></blockquote></blockquote></blockquote></blockquote></blockquote></bloc=
kquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span>Sanders' Fin Reg Pro=
posals &nbsp;(Jan. 5)</span><br></blockquote></blockquote></blockquote></blo=
ckquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. R=
eg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span>=
<br></blockquote></blockquote></blockquote></blockquote></blockquote></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>FY 2016 Omnibus Talks=
(Dec. 10)</span><br></blockquote></blockquote></blockquote></blockquote></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Custo=
ms Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquote></bl=
ockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(De=
c. 3)</span><br></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote><=
/blockquote></blockquote></blockquote></blockquote></blockquote></blockquote=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></=
blockquote></blockquote></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>On Jan 28, 2016, at 10:12 A=
M, Dana &lt;<a href=3D"mailto:[email-masked]">[email-masked]</a>=
&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Dear Mike &amp;=
Co.,</span><br></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><span></span><br></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Pre-primary endorseme=
nts from Party leaders in tight contests are rare and sometimes understated.=
&nbsp;To wit, President Obama remarks this week that HRC is as prepared to b=
e president as any non-Vice President as anyone: =E2=80=9CI think that what H=
illary presents is a recognition that translating values into governance and=
delivering the goods is ultimately the job of politics, making a real-life d=
ifference to people in their day-to-day lives.=E2=80=9D</span><br></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan></span><br></blockquote></blockquote></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span>Yesterday, House Democratic leader Nancy starti=
ng doing precisely that, assessing the centerpiece of Sanders' platform: &nb=
sp;"He's talking about a single-payer, and that's not going to happen. I mea=
n, does anybody in this room think that we're going to be discussing a singl=
e-payer? ... We're not running on any platform of raising taxes." </span><br=
> </blockquote></blockquote></blockquote></blockquote></blockquote></blockquo=
te></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>Far from the cauldron of Congress and t=
he icy campaign trail was an announcement by the Fed with implications for t=
he overall economy and for the election year ahead. &nbsp;More on the Fed's s=
tatement and its implications below. &nbsp;</span><br></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Please let me know if you have any questions or issue coverage r=
equests. </span><br></blockquote></blockquote></blockquote></blockquote></bl=
ockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><span>Best,</span><br><=
/blockquote></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>Dana</span><br></blockquote></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>-----------------</span><br></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>The Fed's Statement</span><br></blockquote></blockquote></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Fe=
deral Open Market Committee (FOMC) of the Federal Reserve decided yesterday n=
ot to raise rates in January. &nbsp;Last month, the Fed voted to raise inter=
est rates for the first time in nine years, setting its rate target between 0=
.25 and 0.5 percent. &nbsp;Today's statement reaffirmed this decision, notin=
g that recent market turbulence had not stayed the Fed from its plan to cont=
inue =E2=80=9Conly gradual increases in the federal funds rate.=E2=80=9D &nb=
sp;Speculation and hope are rife that the FOMC will hold off raising rates i=
n March and wait until June. &nbsp;</span><br></blockquote></blockquote></bl=
ockquote></blockquote></blockquote></blockquote></blockquote></blockquote><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><span>But the statement today indicated no change in the Fed=E2=80=99s pl=
an for previously outlined &nbsp;rate increases, four 0.25 percent increases=
this year, with total increases of one percent this year and next. &nbsp;Ho=
wever, the FOMC is largely comprised of dovish voters, who may change tack i=
f current market corrections continue. &nbsp;&nbsp;</span><br></blockquote><=
/blockquote></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
</span><br></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><span>Market Reaction</span><br></blockquote></blockquote=
> </blockquote></blockquote></blockquote></blockquote></blockquote></blockquo=
te><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>The Dow Jones Industrial average is down from 17.759 on Decembe=
r 16 to 15,951 today; the S&amp;P 500 has declined from 2,073 to 1,879 over t=
he same period. &nbsp;The </span><br></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>Fed however expressed con=
fidence in continuing economic growth, calling low inflation and the decline=
in energy prices =E2=80=9Ctransitory=E2=80=9D and predicting 2 percent infl=
ation in the medium-term as energy prices rise again. &nbsp;</span><br></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><span></span><br></blockquote></blockquote></blockquote></blockquote></bl=
ockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>In a nod to beleaguered investors, the Com=
mittee wrote that it =E2=80=9C... is closely monitoring global economic and f=
inancial developments and is assessing their implications for the labor mark=
et and inflation, and for the balance of risks to the outlook.=E2=80=9D &nbs=
p;So the Fed has, unusually, acknowledged the global scope of its deliberati=
ons. &nbsp;FOMC also indicated a focus on =E2=80=9Clabor market indicators [=
which] will continue to strengthen."</span><br></blockquote></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></bl=
ockquote></blockquote></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><span>For now, though inflation is running just 0.4 percent, well below i=
ts two percent target, the Fed has not disavowed its plan to raise rates fou=
r times this year. &nbsp;&nbsp;This cannot be welcome to global equine marke=
ts. &nbsp;Domestic and global capital markets have already lost roughly ten p=
ercent since the December rate hike. &nbsp;Fed policy may be having a decele=
rating effect on growth and so could be a marginal drag on Democratic prospe=
cts. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>New FOMC Member=
s</span><br></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><span></span><br></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>The FOMC is made up of ro=
tating board of seven voting members taken from Board of Governors members a=
s well as regional bank officials; these members rotate on an annual basis a=
t the first meeting of each year. &nbsp;The 2016 committee members are liste=
d below (identified as"hawks," those favoring tight monetary policy or "dove=
s," supporting more accommodative policy). </span><br></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Janet L. Yellen, Board of Governors, Chair (dove)</span><br></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><span>William C. Dudley, New York, Vice Chair (dove)</span><br></blockq=
uote></blockquote></blockquote></blockquote></blockquote></blockquote></bloc=
kquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<span>Lael Brainard, Board of Governors (dove)</span><br></blockquote></bloc=
kquote></blockquote></blockquote></blockquote></blockquote></blockquote></bl=
ockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>James=
Bullard, St. Louis (hawk)</span><br></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><span>Stanley Fischer, Board of=
Governors (hawk)</span><br></blockquote></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Esther L. George, Kansas City (hawk)<=
/span><br></blockquote></blockquote></blockquote></blockquote></blockquote><=
/blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>Loretta J. Mester, Cleveland (hawk)</span><br></block=
quote></blockquote></blockquote></blockquote></blockquote></blockquote></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>Jerome H. Powell, Board of Governors (swing)</span><br></blockquote><=
/blockquote></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
Eric Rosengren, Boston (dove)</span><br></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span>Daniel K. Tarullo, Boa=
rd of Governors (dove)</span><br></blockquote></blockquote></blockquote></bl=
ockquote></blockquote></blockquote></blockquote></blockquote><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>New m=
embers this year are James Bullard, Esther George, Loretta Mester, and Eric R=
osengren. &nbsp;The FOMC consists of 12 voting members, with two nominees aw=
aiting Senate confirmation. &nbsp;A shift in the balance of power between ha=
wks and doves may occur but the doves hold a slim majority for now.</span><b=
r></blockquote></blockquote></blockquote></blockquote></blockquote></blockqu=
ote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>Code Breaking</span><br></blockquote><=
/blockquote></blockquote></blockquote></blockquote></blockquote></blockquote=
> </blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
</span><br></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><span>Fed watchers have made an art form out of reading b=
etween the lines of these policy releases, even the most benign of which can=
cause huge swings in markets (the Dow dropped over 200 points in the wake o=
f today=E2=80=99s release). &nbsp;Fed statements are famously difficult to p=
arse but one point was unmistakable: the Fed is keeping a close eye on the l=
abor market -- employment and participation rates, wages, etc. -- as a leadi=
ng indicator for inflation and overall growth perhaps more than any other va=
riable. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote=
> </blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote>=
</blockquote></blockquote></blockquote></blockquote></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Campaign Con=
sequences</span><br></blockquote></blockquote></blockquote></blockquote></bl=
ockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><span>None of the candi=
dates has commented on today=E2=80=99s release, not surprisingly, but the po=
licy may draw ire from some on the right, who oppose fiat rate-targeting (th=
ough it took no action today) and the left, where lowering rather than raisi=
ng rate is preferred (except for holders of fixed income securities). &nbsp;=
</span><br></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><span></span><br></blockquote></blockquote></blockquote><=
/blockquote></blockquote></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Sen. &nbsp;Sanders, true to=
his reputation of standing far outside the Democratic fold, has long oppose=
d the Fed for being too involved with the bankers they are meant to be regul=
ating. &nbsp;Sanders has called for reform measures at the Fed, including pr=
ohibiting people serving on bank boards from serving on the Fed at the same t=
ime. </span><br></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><span></span><br></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>The Fed was confident=
that economic growth would continue on its steady pace, indicating strength=
in labor markets and downplaying both financial market reactions and diving=
commodities prices. &nbsp;The FOMC sets monetary policy on a long-term basi=
s; the full ramifications of their decisions aren=E2=80=99t felt until month=
s or years out, so any contention that the economy is strong enough to handl=
e higher interest rates is essentially an endorsement of macroeconomic polic=
y in the last few years. Democratic candidates will need to hammer this poin=
t home - but it is yet to be seen if voters will understand the message that=
Democratic policies are responsible for the sunny outlook for the American e=
conomy, especially compared to Western Europe, Latin America, and Asia.</spa=
n><br></blockquote></blockquote></blockquote></blockquote></blockquote></blo=
ckquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=
=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>Below is the first sentence of the FOMC statement from ye=
sterday, edited to reflect changes from last month's statement:</span><br></=
blockquote></blockquote></blockquote></blockquote></blockquote></blockquote>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><=
/blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><span>For immediate releaserelease at 2:00 p.=
m. EST</span><br></blockquote></blockquote></blockquote></blockquote></block=
quote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><span>Information received since the Federal Open M=
arket Committee met in OctoDecember suggests that economic activity has been=
expanding at a moderate pacelabor market conditions improved further even a=
s economic growth slowed late last year. Household spending and business fix=
ed investment have been increasing at solidmoderate rates in recent months, a=
nd the housing sector has improved further; however, net exports have been s=
oft and inventory investment slowed. A range of recent labor market indicato=
rs, including ongoistrong job gains and declining unemployment, shows furthe=
r improvement and confirms that underutilization of labor resources has dimi=
nished appreciably since early this year, points to some additional decline i=
n underutilization of labor resources. Inflation has continued to run below t=
he Committee's 2 percent longer-run objective, partly reflecting declines in=
energy prices and in prices of non-energy imports. Market-based measures of=
inflation compensation remain low; somedeclined further; survey-based measu=
res of longer-term inflation expectations have edged downare little changed,=
on balance, in recent months.</span><br></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>--------------------</span><br></blockquote></blockquote></blockquote></=
blockquote></blockquote></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Rec=
ent Updates</span><br></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></b=
lockquote></blockquote></blockquote></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Fed Holds R=
ates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span>Debate Myths Challenge=
d &nbsp;(Jan. 25)</span><br></blockquote></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan.=
21)</span><br></blockquote></blockquote></blockquote></blockquote></blockqu=
ote></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</=
span><br></blockquote></blockquote></blockquote></blockquote></blockquote></=
blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blo=
ckquote></blockquote></blockquote></blockquote></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Glass=
-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></bloc=
kquote></blockquote></blockquote></blockquote></blockquote></blockquote><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>2016 Tax Policy Is=
sues &nbsp;(Jan. 8)</span><br></blockquote></blockquote></blockquote></block=
quote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan.=
7)</span><br></blockquote></blockquote></blockquote></blockquote></blockquo=
te></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span>=
<br></blockquote></blockquote></blockquote></blockquote></blockquote></block=
quote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: =
Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockqu=
ote></blockquote></blockquote></blockquote></blockquote></blockquote></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote><=
/blockquote></blockquote></blockquote></blockquote></blockquote></blockquote=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>FY 2016 Omnib=
us Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote></blockq=
uote></blockquote></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br=
> </blockquote></blockquote></blockquote></blockquote></blockquote></blockquo=
te></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquo=
te></blockquote></blockquote></blockquote></blockquote></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockq=
uote></blockquote></blockquote></blockquote></blockquote></blockquote><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span>Shelby 2.0 Update &n=
bsp;(Dec. 3)</span><br></blockquote></blockquote></blockquote></blockquote><=
/blockquote></blockquote></blockquote></blockquote><span></span><br><span>Co=
ntent-Type: multipart/alternative;</span><br><span> &nbsp; &nbsp;boundary=3D=
Apple-Mail-E202A4BC-AC43-4A6A-AD3D-BF2A48B02BE0</span><br><span>Subject: Upd=
ate -- Michigan and the Meaning</span><br><span>&lt;html&gt;&lt;head&gt;&lt;=
meta http-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3D=3D</=
span><br><span>utf-8"&gt;&lt;/head&gt;&lt;body dir=3D3D"auto"&gt;&lt;div&gt;=
&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equ=3D</span><=
br><span>iv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt=
;&lt;div&gt;&lt;span&gt;&lt;/span=3D</span><br><blockquote type=3D"cite"><sp=
an>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" content=3D3=
D"text/html; charset=3D3D=3D</span><br></blockquote><span>utf-8"&gt;&lt;div&=
gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"=
content-type" conten=3D</span><br><span>t=3D3D"text/html; charset=3D3Dutf-8"=
&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http=
-equ=3D</span><br><span>iv=3D3D"content-type" content=3D3D"text/html; charse=
t=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span=3D</span><br><blockquote ty=
pe=3D"cite"><span>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-ty=
pe" content=3D3D"text/html; charset=3D3D=3D</span><br></blockquote><span>utf=
-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta h=
ttp-equiv=3D3D"content-type" conten=3D</span><br><span>t=3D3D"text/html; cha=
rset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&g=
t;&lt;meta http-equ=3D</span><br><span>iv=3D3D"content-type" content=3D3D"te=
xt/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span=3D</span><br=
> <blockquote type=3D"cite"><span>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D=
3D"content-type" content=3D3D"text/html; charset=3D3D=3D</span><br></blockqu=
ote><span>utf-8"&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 0=
.0001pt;"&gt;&lt;span styl=3D</span><br><span>e=3D3D"background-color: rgba(=
255, 255, 255, 0);"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;/p&gt;=3D</span=
> <br><span>&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 0.0001pt;"=
&gt;&lt;span style=3D3D"ba=3D</span><br><span>ckground-color: rgba(255, 255,=
255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;div&gt;&lt;p class=3D3D"M=
so=3D</span><br><span>Normal" style=3D3D"margin: 0in 0in 12pt;"&gt;It may fe=
el like Michigan-morning-af=3D</span><br><span>ter but by dint of Mississipp=
i, HRC padded her delegate lead last night.&amp;nbs=3D</span><br><span>p;&lt=
;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;=
span style=3D3D"=3D</span><br><span>background-color: rgba(255, 255, 255, 0)=
;"&gt;On Monday, &amp;nbsp;President Obama h=3D</span><br><span>eld a financ=
ial regulatory summit in the Roosevelt Room of the White House. &amp;=3D</sp=
an><br><span>nbsp;Joined by the heads of the Fed, the FDIC, and the CFPB, Ob=
ama declared =3DE2=3D</span><br><span>=3D80=3D9CI want to dispel the notion t=
hat exists both on the left and on the ri=3D</span><br><span>ght that someho=
w, after the crisis, nothing happened," he said. =3DE2=3D80=3D9CWe d=3D</spa=
n><br><span>id not just rebuild this, we rebuilt it better, and we=3DE2=3D80=
=3D99ve rebuilt it=3D</span><br><span> stronger.=3DE2=3D80=3D9D&lt;/span&gt;=
&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0i=3D</span><br=
> <span>n 12pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255,=
0);"&gt;He has a s=3D</span><br><span>trong argument. &amp;nbsp;You can't p=
rove a negative and we will never know how m=3D</span><br><span>any financia=
l crises were averted by Dodd-Frank. &amp;nbsp;But metrics bear out t=3D</sp=
an><br><span>he view that Americans and the economy have less to fear today f=
rom the Syst=3D</span><br><span>emically Significant Financial Institutions (=
SIFIs) than at any time since t=3D</span><br><span>he turn of the millennium=
. &amp;nbsp;&lt;/span&gt;More on the regulatory circumstances=3D</span><br><=
span> of SIFIs below. &amp;nbsp;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D=
3D"margin: 0in 0in 1=3D</span><br><span>2pt;"&gt;&lt;span style=3D3D"backgro=
und-color: rgba(255, 255, 255, 0);"&gt;Best,&lt;o:p&gt;&lt;/=3D</span><br><s=
pan>o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"mar=
gin: 0in 0in 12pt;"&gt;&lt;span s=3D</span><br><span>tyle=3D3D"background-co=
lor: rgba(255, 255, 255, 0);"&gt;Dana&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt=
;/p=3D</span><br><blockquote type=3D"cite"><span>&lt;p class=3D3D"MsoNormal"=
style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D3D"backgrou=3D</span><br=
> </blockquote><span>nd-color: rgba(255, 255, 255, 0);"&gt;------------------=
-----------------------=3D</span><br><span>--------&lt;/b&gt;&lt;/p&gt;&lt;p=
class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;b st=3D</spa=
n><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;A Survey o=
f the SIFI Lands=3D</span><br><span>cape&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;span sty=3D</span><br><=
span>le=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The landscape for=
the eight=3D</span><br><span> SIFIs today -- Bank of America, Bank of New Y=
ork Mellon, Citigroup, Goldman=3D</span><br><span> Sachs, JP Morgan Chase, M=
organ Stanley, State Street, and Wells Fargo --&amp;nb=3D</span><br><span>sp=
;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=
&gt;is worth=3D</span><br><span> looking at from various perspectives. &amp;=
nbsp;Presidential candidates on both=3D</span><br><span> sides have made a p=
oint of criticizing =3DE2=3D80=3D9Ctoo big to fail=3DE2=3D80=3D9D ba=3D</spa=
n><br><span>nks, court proceedings are challenging regulators powers', membe=
rs of Congre=3D</span><br><span>ss are debating whether to loosen Dodd-Frank=
Act SIFI rules, and a current Fe=3D</span><br><span>deral Reserve Bank pres=
ident has spoken out in favor of breaking them up. &amp;n=3D</span><br><span=
> bsp;But do SIFIs pose the same threat they did in 2008?&lt;/span&gt;&lt;/p&=
gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal" style=3D3D"margin: 0in 0i=
n 12pt;"&gt;&lt;b style=3D3D"background-color: rg=3D</span><br><span>ba(255,=
255, 255, 0);"&gt;&lt;u&gt;The Power of DFA&lt;/u&gt;&lt;o:p&gt;&lt;/o:p&gt=
;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal" style=3D=
3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D"background-color:=3D</span>=
<br><span> rgba(255, 255, 255, 0);"&gt;President Obama hasn=3DE2=3D80=3D99t r=
emained silent in t=3D</span><br><span>he face of criticism of DFA. &amp;nbs=
p;After the Monday&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D=3D</span><br><s=
pan>"background-color: rgba(255, 255, 255, 0);"&gt;summit,&lt;/span&gt;&lt;s=
pan style=3D3D"bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0);=
"&gt;&amp;nbsp;Obama said that critics are sp=3D</span><br><span>reading =3D=
E2=3D80=3D9Ccynicism=3DE2=3D80=3D9D: &amp;nbsp;=3DE2=3D80=3D9CIt is popular =3D=
E2=3D80=3DA6 t=3D</span><br><span>o suggest that the crisis happened and not=
hing changed.&amp;nbsp; That is not tr=3D</span><br><span>ue.=3DE2=3D80=3D9D=
&amp;nbsp; The President cited&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"bac=
kground=3D</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;the 14 millio=
n new jobs created since his i=3D</span><br><span>nauguration, proof, he sai=
d, that sensible regulations on Wall Street don=3DE2=3D</span><br><span>=3D8=
0=3D99t stifle business growth.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNo=
rmal" style=3D3D"ma=3D</span><br><span>rgin: 0in 0in 12pt;"&gt;&lt;span styl=
e=3D3D"background-color: rgba(255, 255, 255, 0)=3D</span><br><span>;"&gt;Two=
major business news stories from 2015 support the President=3DE2=3D80=3D99s=
=3D</span><br><span> view: &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"margin: 0in 0in 12pt=3D</span><br><span>;"&gt;&lt;b s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DC2=3DB7 &amp;nbsp=
; Gene=3D</span><br><span>ral Electric&lt;/b&gt;&lt;span style=3D3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"&gt; c=3D</span><br><span>ontinued to sell=
off GE Capital, its $42 billion investment arm, hoping to e=3D</span><br><s=
pan>xit SIFI status in Q1 2016 as a result of its divestiture. &amp;nbsp;&lt=
;/span&gt;&lt;/p&gt;=3D</span><br><span>&lt;p class=3D3D"MsoNormal" style=3D=
3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D3D"backgroun=3D</span><br><span>d=
-color: rgba(255, 255, 255, 0);"&gt;=3DC2=3DB7 &amp;nbsp; MetLife&lt;/b&gt;&=
lt;span style=3D3D"ba=3D</span><br><span>ckground-color: rgba(255, 255, 255,=
0);"&gt; has been embroiled in a legal batt=3D</span><br><span>le with the =
Financial Stability Oversight Council (FSOC) since the regulator=3D</span><b=
r><span> announced in December 2014 that the insurance company was considere=
d a SIFI=3D</span><br><span> =3DE2=3D80=3D93 arguments were heard in New Yor=
k this January.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p=3D</span><br><span> cl=
ass=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D=
"backgrou=3D</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;70 percen=
t of DFA has been implemented by=3D</span><br><span> the regulatory agencies=
since it was passed. &amp;nbsp; Despite the constraints=3D</span><br><span>=
on SIFIs, they have by and large adapted well, making&amp;nbsp;adjustments f=
ast=3D</span><br><span>er, earlier and more successfully=3DE2=3D80=3D9D than=
their overseas counterparts.=3D</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;=
/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;s=
pa=3D</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);=
"&gt;=3DC2=3DB7 &amp;nbsp; SIFIs no=3D</span><br><span>w hold much more capi=
tal now than they did before the crisis =3DE2=3D80=3D93 to th=3D</span><br><=
span>e tune of $700 billion in additional capital, twice the amount prior to=
it&lt;/=3D</span><br><span>span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" st=
yle=3D3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D=3D</span><br><span>"b=
ackground-color: rgba(255, 255, 255, 0);"&gt;=3DC2=3DB7 &amp;nbsp; SIFIs hav=
e three t=3D</span><br><span>imes the liquidity they had before the crisis&l=
t;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorma=3D</span><br><span>l" style=3D=
3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D"background-color: rgba(255=3D=
</span><br><span>, 255, 255, 0);"&gt;=3DC2=3DB7 &amp;nbsp; Derivatives clear=
ing houses force transparenc=3D</span><br><span>y on SIFI speculation, preve=
nting over-exposure&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNor=3D</span><=
br><span>mal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D"backg=
round-color: rgba(2=3D</span><br><span>55, 255, 255, 0);"&gt;=3DC2=3DB7 &amp=
;nbsp; &amp;nbsp;SIFIs now post collateral on their de=3D</span><br><span>ri=
vatives trades&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"=
margin: 0in 0in 1=3D</span><br><span>2pt;"&gt;&lt;span style=3D3D"background=
-color: rgba(255, 255, 255, 0);"&gt;=3DC2=3DB7 &amp;nbsp=3D</span><br><span>=
; &amp;nbsp;SIFIs submit to rigorous stress testing by the Federal Reserve a=
nd FD=3D</span><br><span>IC&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;s=3D</span><br><span>pa=
n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DC2=3DB7 &amp;n=
bsp; &amp;nbsp;=3D</span><br><span>SIFIs are being forced to draft =3DE2=3D8=
0=3D9Cliving wills,=3DE2=3D80=3D9D which have a=3D</span><br><span>lready fo=
rced some to streamline or simplify so they can wind down without r=3D</span=
> <br><span>equiring a bailout&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorm=
al" style=3D3D"margin: 0in 0in=3D</span><br><span> 12pt;"&gt;&lt;b style=3D3=
D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Congressio=3D</span=
> <br><span>nal Update&lt;/u&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p&gt;&l=
t;p class=3D3D"MsoNormal" style=3D3D"margin: 0in=3D</span><br><span> 0in 12p=
t;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Con=
gre=3D</span><br><span>ss is split between those who want to reduce regulato=
ry pressure on big bank=3D</span><br><span>s and those who would rather see i=
t ramped up. &amp;nbsp;Sen.&lt;/span&gt;&lt;span style=3D3D=3D</span><br><sp=
an>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;Shelby, Senate B=
anking Cha=3D</span><br><span>ir, introduced the Financial Regulatory Improv=
ement Act of 2015, a grab-bag o=3D</span><br><span>f exceptions and exemptio=
ns from regulations, mostly for banks with between $=3D</span><br><span>50 a=
nd $500 billion in assets.&amp;nbsp; In a similar vein, Sens Warner, Portman=
=3D</span><br><span>, and Collins introduced the Independent Agency Regulato=
ry Analysis Act&amp;nbsp=3D</span><br><span>;to require that regulators unde=
rtake a cost-benefit analysis of any rules t=3D</span><br><span>hey wish to i=
mplement.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margi=
n: 0in=3D</span><br><span> 0in 12pt;"&gt;&lt;span style=3D3D"background-colo=
r: rgba(255, 255, 255, 0);"&gt;On the=3D</span><br><span> flip side, Sens. M=
cCain and Warren=3DE2=3D80=3D99s 21&lt;span style=3D3D"font-size: 12=3D</spa=
n><br><span>px;"&gt;st&amp;nbsp;&lt;/span&gt;Century Glass-Steagall Act prop=
oses to split commercial a=3D</span><br><span>nd investment banks in a bid t=
o finally kill off the TBTF problem.&amp;nbsp; Sen=3D</span><br><span>s. War=
ren and Vitter teamed up early in 2015 to introduce a package of amend=3D</s=
pan><br><span>ments to the Federal Reserve Act =3DE2=3D80=3D93- that bill no=
tably would set forw=3D</span><br><span>ard stricter regulations when an ent=
ity is considered insolvent, and therefo=3D</span><br><span>re ineligible fo=
r Federal Reserve loans, as well as require that the Fed len=3D</span><br><s=
pan>d money to distressed institutions at market rates.&lt;o:p&gt;&lt;/o:p&g=
t;&lt;/span&gt;&lt;/p&gt;&lt;p c=3D</span><br><span>lass=3D3D"MsoNormal" sty=
le=3D3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D3D"background-co=3D</span><b=
r><span>lor: rgba(255, 255, 255, 0);"&gt;The Regulators' Agenda&amp;nbsp;&lt=
;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p=3D</span><br><blockquote type=3D"cite">=
<span>&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&gt;&lt;s=
pan style=3D3D"backg=3D</span><br></blockquote><span>round-color: rgba(255, 2=
55, 255, 0);"&gt;Under Basel III requirements for large=3D</span><br><span> b=
anks to satisfy Liquidity Coverage Ratios (LCR) were adopted by a number o=3D=
</span><br><span>f national regulators, including the Federal Reserve.&amp;n=
bsp; While the Fed ha=3D</span><br><span>s floated a rule change allowing so=
me municipal bonds to count as High Quali=3D</span><br><span>ty Liquid Asset=
s (HQLA), that hasn=3DE2=3D80=3D99t stopped Rep. Luke Messer from p=3D</span=
> <br><span>roposing HR 2209 to force regulators allow a greater share of mun=
is to count=3D</span><br><span> as HQLA (see Update, Feb. 18).&lt;o:p&gt;&lt=
;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" s=3D</span><br><=
span>tyle=3D3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D"background-colo=
r: rgba(255, 25=3D</span><br><span>5, 255, 0);"&gt;The Fed is also working o=
n implementing a rule on Single-Counte=3D</span><br><span>rparty Credit Limi=
ts (SCCL), setting boundaries on credit exposure between l=3D</span><br><spa=
n>arge banks or major counterparties.&amp;nbsp; The rule is meant to prevent=
banks=3D</span><br><span> from becoming overexposed to other financial inst=
itutions, preventing them f=3D</span><br><span>rom taking overly large losse=
s in the event that the counterparty fails.&amp;nbs=3D</span><br><span>p; An=
alysts suspect that firms are nearly $100 billion over the limits impos=3D</=
span><br><span>ed by this rule, but Yellen says it is necessary to set a =3D=
E2=3D80=3D9Cbright li=3D</span><br><span>ne=3DE2=3D80=3D9D on credit exposur=
e.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" s=
=3D</span><br><span>tyle=3D3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D3D"bac=
kground-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;SIFIs Moving =
Forward&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal=
" style=3D</span><br><span>=3D3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;There i=
s no doubt that the upcoming MetLife ruling will be a critic=3D</span><br><s=
pan>al pivot point for how regulators interact with SIFIs.&amp;nbsp; If the =
FSOC is r=3D</span><br><span>equired to retract the firm=3DE2=3D80=3D99s SIFI=
status it will open the regulator=3D</span><br><span> up for a whole slew o=
f challenges from other banks and institutions.&amp;nbsp; T=3D</span><br><sp=
an>he fate of Congressional proposals to restrict regulator=3DE2=3D80=3D99s e=
fforts, e=3D</span><br><span>ither by determining rules for them or by burde=
ning them with regulations of=3D</span><br><span> their own, should be seen a=
s the start of a potential sea change in the reg=3D</span><br><span>ulatory c=
limate.&amp;nbsp; During his Monday meeting, President Obama warned of t=3D<=
/span><br><span>his: "If there is a significant challenge in terms of regula=
ting Wall Street=3D</span><br><span> and regulating our financial sector it i=
s primarily coming from certain mem=3D</span><br><span>bers of Congress who a=
re consistently pressuring independent regulators to b=3D</span><br><span>ac=
k off.=3DE2=3D80=3D9D&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p cla=
ss=3D3D"MsoNormal" style=3D3D"margi=3D</span><br><span>n: 0in 0in 12pt;"&gt;=
&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3D</span>=
<br><span>It is not a bad time to be a SIFI in America =3DE2=3D80=3D93 it=3D=
E2=3D80=3D99s certainl=3D</span><br><span>y much better to be one now than i=
n 2010.&amp;nbsp; While DFA has forced restruc=3D</span><br><span>turing and=
streamlining to occur, events like the GE Capital sell-off may pr=3D</span>=
<br><span>ove to be exceptions that prove the rule rather than the new norma=
l for SIFI=3D</span><br><span>s, especially if MetLife wins its case against=
regulators.&amp;nbsp; President O=3D</span><br><span>bama was right to poin=
t to Congress as the cause of regulatory gridlock; the=3D</span><br><span> p=
olitical will seen after the economic collapse has largely evaporated, giv=3D=
</span><br><span>ing SIFIs far more breathing room and opening up opportunit=
ies to push throu=3D</span><br><span>gh =3DE2=3D80=3D9Cregulatory reform=3DE=
2=3D80=3D9D measures.&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;div style=3D3D=3D=
</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 9=3D</span><br><span>8, 83, 0.0980392);"&gt;&lt;div dir=3D3D=
"ltr"&gt;&lt;div dir=3D3D"ltr"&gt;&lt;div dir=3D3D"ltr"&gt;&lt;p cl=3D</span=
> <br><span>ass=3D3D"MsoNormal" style=3D3D"margin-bottom: 17.25pt;"&gt;&lt;sp=
an style=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 255, 0);"=
&gt;_____________________________________&lt;/spa=3D</span><br><span>n&gt;&l=
t;/p&gt;&lt;/div&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D3D=
"background-color: rgba(255=3D</span><br><span>, 255, 255, 0);"&gt;Upcoming/=
Recent Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div=
&gt;&lt;div s=3D</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba=3D</span><br><span>(130, 98, 83, 0.09803=
92);"&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</sp=
an><br><span>55, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; Thurs -- &amp;nbsp;=
Financial Reg. Nominations&lt;/sp=3D</span><br><span>an&gt;&lt;/div&gt;&lt;d=
iv&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DE=
2=3D80=3D</span><br><span>=3DA2 &amp;nbsp; Fri -- Update on Tax Bills&lt;/sp=
an&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"backgr=3D</span><br><span>o=
und-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; Mon --&lt;=
/span&gt;&lt;/div&gt;&lt;di=3D</span><br><span>v&gt;&lt;span style=3D3D"back=
ground-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div=3D=
</span><br><blockquote type=3D"cite"><span>&lt;div&gt;&lt;span style=3D3D"ba=
ckground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp=3D</span><b=
r></blockquote><span>;=3DE2=3D80=3DA2 &amp;nbsp; ERI/Housing&lt;/span&gt;&lt=
;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-col=3D</span><br><span>or=
: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp=
; EU/US Derivatives=3D</span><br><span> Deal&lt;/span&gt;&lt;/div&gt;&lt;div=
&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br=
> <span>);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Pension Crisis=
&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span styl=3D</span><br><span>e=3D3D"=
background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/di=
v&gt;&lt;div&gt;&lt;span s=3D</span><br><span>tyle=3D3D"background-color: rg=
ba(255, 255, 255, 0);"&gt;Survey of the SIFI Landsc=3D</span><br><span>ape (=
Mar 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-col=
or: rgba(255, 255,=3D</span><br><span> 255, 0);"&gt;Michigan and the Meaning=
of Flint &amp;nbsp;(Mar 8) Puerto Rico's Deb=3D</span><br><span>t Crisis &a=
mp;nbsp;(Mar. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"back=
ground-color: rg=3D</span><br><span>ba(255, 255, 255, 0);"&gt;Municipal Fina=
nce Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;&lt;/span&gt;&lt;=3D</span><br><span>=
/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255,=
0);"&gt;Flint Bi=3D</span><br><span>ll: &amp;nbsp;Provisions &amp;amp; Pros=
pects (Mar. 2)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=3D</s=
pan><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Top Ta=
x Bills Handicapped=3D</span><br><span> &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;=
/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255,=3D</span>=
<br><span> 255, 255, 0);"&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 2=
3)&lt;/span&gt;&lt;/div&gt;&lt;d=3D</span><br><span>iv&gt;&lt;div&gt;&lt;spa=
n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Infrastruc=3D</sp=
an><br><span>ture Finance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/span&gt;&=
lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"ba=3D</span><br><span>ckground-col=
or: rgba(255, 255, 255, 0);"&gt;Does DFA Fail on Too Big to Fail? (=3D</span=
> <br><span>Feb. 17)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"b=
ackground-color: rgba(255, 255, 25=3D</span><br><span>5, 0);"&gt;Below the R=
adar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;=
div&gt;=3D</span><br><span>&lt;span style=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;International Tax S=3D</span><br><span>tatus &amp;nbsp;(Feb=
. 11)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-colo=
r: rgba=3D</span><br><span>(255, 255, 255, 0);"&gt;The Fed Holds Steady &amp=
;nbsp;(Feb. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=3D</span><br><span>s=
pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Obama's FY17 Bu=
dget=3D</span><br><span> &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;/span&gt;&lt;div&gt=
;&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 25=
5, 0);"&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt=
;/div&gt;&lt;/div&gt;&lt;/di=3D</span><br><span>v&gt;&lt;/div&gt;&lt;p class=
=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 0.0001pt;"&gt;&lt;o:p styl=3D</s=
pan><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span s=
tyle=3D3D"background-co=3D</span><br><span>lor: rgba(255, 255, 255, 0); colo=
r: rgba(0, 0, 0, 0.701961); -webkit-composi=3D</span><br><span>tion-fill-col=
or: rgba(130, 98, 83, 0.0980392);"&gt;Defending Dodd-Frank &amp;nbsp;(=3D</s=
pan><br><span>Feb.2)&lt;/span&gt;&lt;/o:p&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=
ormal" style=3D3D"margin: 0in 0in 0.000=3D</span><br><span>1pt;"&gt;&lt;o:p s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/o:p&g=
t;&lt;/p=3D</span><br><blockquote type=3D"cite"><span>&lt;p class=3D3D"MsoNo=
rmal" style=3D3D"margin: 0in 0in 0.0001pt;"&gt;&lt;o:p style=3D3D"ba=3D</spa=
n><br></blockquote><span>ckground-color: rgba(255, 255, 255, 0);"&gt;_______=
____________&amp;nbsp;&lt;/o:p&gt;&lt;/p&gt;=3D</span><br><span>&lt;div&gt;&=
lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&=
lt;/span&gt;=3D</span><br><span>&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"b=
ackground-color: rgba(255, 255, 255, 0); color: r=3D</span><br><span>gba(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=3D</spa=
n><br><span>0980392); text-decoration: -webkit-letterpress;"&gt;Mike &amp;am=
p; Co. &amp;nbsp;--&lt;/sp=3D</span><br><span>an&gt;&lt;/div&gt;&lt;div&gt;&=
lt;span style=3D3D"background-color: rgba(255, 255, 255, 0); color=3D</span>=
<br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=
0, 98, 83,=3D</span><br><span> 0.0980392); text-decoration: -webkit-letterpr=
ess;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;s=3D</span><br><s=
pan>pan style=3D3D"background-color: rgba(255, 255, 255, 0); color: rgba(0, 0=
, 0, 0=3D</span><br><span>.701961); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); text=3D</span><br><span>-decoration: -webkit-letterpre=
ss;"&gt;Tomorrow=3DE2=3D80=3D99s Michigan primary elect=3D</span><br><span>i=
on may end up being "yugge" if it seriously opens up the possibility that T=3D=
</span><br><span>rump can put the state in play in November --&amp;nbsp;=3DE=
2=3D80=3D9CA normal Republi=3D</span><br><span>can cannot think of bringing i=
n Michigan,=3DE2=3D80=3D9D said Trump&amp;nbsp;-- nothin=3D</span><br><span>=
g any other GOP presidential candidate could do, now, or for the past 25 yea=
=3D</span><br><span>rs.&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-compo=3D</span><br><span>sition-fill-color: rg=
ba(130, 98, 83, 0.0980392); text-decoration: -webkit-le=3D</span><br><span>t=
terpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&=
gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal" style=3D3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fil=3D</span><br><span>l-color: rgba(1=
30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=3D</span><br><=
span> margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rg=
ba(255, 255, 2=3D</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&=
gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0,=3D</span><br>=
<span> 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=
2); te=3D</span><br><span>xt-decoration: -webkit-letterpress; margin: 0in 0i=
n 0.0001pt;"&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: rg=
ba(255, 255, 255, 0);"&gt;Flint crystallizes so many of th=3D</span><br><spa=
n>e issues that give rise to this new tectonic possibility. &amp;nbsp;There h=
ad to=3D</span><br><span> be a debate in Flint because there had to be a deb=
ate about it... and the S=3D</span><br><span>ecretary deserves far more cred=
it than she's getting for making sure it happ=3D</span><br><span>ened. &amp;=
nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rg=
ba(0, 0, 0, 0=3D</span><br><span>.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text=3D</span><br><span>-decoration: -webkit-le=
tterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D"=3D</span><br><=
span>background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&l=
t;/p&gt;&lt;p class=3D3D"MsoNor=3D</span><br><span>mal" style=3D3D"color: rg=
ba(0, 0, 0, 0.701961); -webkit-composition-fill-color=3D</span><br><span>: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=3D=
</span><br><span>: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D"background-colo=
r: rgba(255, 255, 255, 0)=3D</span><br><span>;"&gt;In Washington, the Senate=
is readying to vote on a bipartisan package for=3D</span><br><span> drinkin=
g water aid.&amp;nbsp; It=3DE2=3D80=3D99s not a slam dunk, however, as Mike L=
e=3D</span><br><span>e has maintained a hold on the bill, saying political g=
randstanding is takin=3D</span><br><span>g the place of policy. &amp;nbsp;Mo=
re on all this below.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p clas=3D</span><b=
r><span>s=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=
-composition=3D</span><br><span>-fill-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpr=3D</span><br><span>ess; margin: 0in 0in 0.0=
001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><br><s=
pan>55, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNo=
rmal" style=3D3D"color: rgba(0, 0=3D</span><br><span>, 0, 0.701961); -webkit=
-composition-fill-color: rgba(130, 98, 83, 0.0980392)=3D</span><br><span>; t=
ext-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span s=
ty=3D</span><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=
Best,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal" s=
tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D</span><=
br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=
terpress;=3D</span><br><span> margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;&lt;br&=
gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=
(0, 0, 0,=3D</span><br><span> 0.701961); -webkit-composition-fill-color: rgb=
a(130, 98, 83, 0.0980392); te=3D</span><br><span>xt-decoration: -webkit-lett=
erpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D=3D</span><br><spa=
n>"background-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;/p&gt;=
&lt;p class=3D3D"MsoNo=3D</span><br><span>rmal" style=3D3D"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-colo=3D</span><br><span>r: rgba(130,=
98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=3D</span><b=
r><span>n: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(=
255, 255, 255, 0=3D</span><br><span>);"&gt;_________________________________=
_____&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" s=3D</span><br><span=
> tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba=3D</span><br><span>(130, 98, 83, 0.0980392); text-decoration: -webkit-le=
tterpress; margin: 0in 0=3D</span><br><span>in 0.0001pt;"&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;=3D</span><br><sp=
an>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=
(0, 0, 0, 0.701961); -=3D</span><br><span>webkit-composition-fill-color: rgb=
a(130, 98, 83, 0.0980392); text-decoration=3D</span><br><span>: -webkit-lett=
erpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D"background-=3D</s=
pan><br><span>color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;=
/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D=3D</span><br><span>"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D</span><b=
r><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in=
0in 12p=3D</span><br><span>t;"&gt;&lt;b&gt;&lt;u style=3D3D"background-colo=
r: rgba(255, 255, 255, 0);"&gt;Flint -- Bills=3D</span><br><span> and Broad S=
trokes&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"c=
olor: rgba(0,=3D</span><br><span> 0, 0, 0.701961); -webkit-composition-fill-=
color: rgba(130, 98, 83, 0.098039=3D</span><br><span>2); text-decoration: -w=
ebkit-letterpress; margin: 0in 0in 12pt;"&gt;&lt;span style=3D</span><br><sp=
an>=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The Michigan legislat=
ure appr=3D</span><br><span>oved in January a $28 million appropriation to p=
rovide immediate aid to Flin=3D</span><br><span>t.&amp;nbsp; Some critics ma=
intain that the need to do so demonstrates the sorry=3D</span><br><span> con=
dition of the state=3DE2=3D80=3D99s tax policy.&amp;nbsp;&amp;nbsp;&lt;o:p&g=
t;&lt;/o:p&gt;&lt;/span&gt;&lt;=3D</span><br><span>/p&gt;&lt;p class=3D3D"Ms=
oNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=3D</span><br><=
span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webki=3D</span><br><span>t-letterpress; margin: 0in 0in 12pt;"&gt;&lt;span s=
tyle=3D3D"background-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;=
The tax base in Flint was eroded significantly during th=3D</span><br><span>=
e 1980=3DE2=3D80=3D99s and 90=3DE2=3D80=3D99s as industry jobs left and the p=
opulation f=3D</span><br><span>ell.&amp;nbsp; To deal with the resulting fis=
cal imbalance the Flint city manage=3D</span><br><span>r was instructed to c=
ut costs =3DE2=3D80=3D93 he did so partly by switching the so=3D</span><br><=
span>urce of Flint=3DE2=3D80=3D99s drinking water. The broad and deep cuts t=
o state and=3D</span><br><span> local budgets affected basic public services=
most profoundly.&amp;nbsp; Now, as=3D</span><br><span> a direct cause of th=
ese cuts, the residents of Flint are grappling with an i=3D</span><br><span>=
ssue no American ever considered possible =3DE2=3D80=3D93 they do not have a=
ccess t=3D</span><br><span>o fresh drinking water.&lt;o:p&gt;&lt;/o:p&gt;&lt=
;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D=3D</span><br><spa=
n>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130,=
9=3D</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpres=
s; margin: 0in 0in 12p=3D</span><br><span>t;"&gt;&lt;span style=3D3D"backgro=
und-color: rgba(255, 255, 255, 0);"&gt;For all the ta=3D</span><br><span>lk o=
f federal aid in infrastructure financing there must be a place made for=3D<=
/span><br><span> regular tax payers.&amp;nbsp; These people bear a significa=
nt portion of direct=3D</span><br><span> funding for infrastructure projects=
both in their states and municipalities=3D</span><br><span>.&amp;nbsp; When=
those tax revenues are redirected, or when state spending is cu=3D</span><b=
r><span>t to the point that basic services can=3DE2=3D80=3D99t be provided t=
hen taxpayers a=3D</span><br><span>re right to question what, in fact, their=
taxes are paying for.&amp;nbsp;&amp;nbsp;&lt;=3D</span><br><span>o:p&gt;&lt=
;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color=
: rgba(0, 0, 0, 0.=3D</span><br><span>701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-=3D</span><br><span>decoration: -webki=
t-letterpress; margin: 0in 0in 12pt;"&gt;&lt;b style=3D3D"backgrou=3D</span>=
<br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Congressional updat=
e&lt;/u&gt;:&lt;o:p&gt;&lt;/o:p&gt;&lt;/=3D</span><br><span>b&gt;&lt;/p&gt;&=
lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webki=
=3D</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -we=3D</span><br><span>bkit-letterpress; margin: 0in 0in 12p=
t;"&gt;&lt;span style=3D3D"background-color: rg=3D</span><br><span>ba(255, 2=
55, 255, 0);"&gt;At the insistence of Democrats, the Flint agreement h=3D</s=
pan><br><span>as been attached to a Senate energy bill introduced by Sen. Mu=
rkowski, S. 20=3D</span><br><span>12, which is next in line in the Senate fo=
llowing the opioid addiction bill.=3D</span><br><span>&amp;nbsp; The energy b=
ill will be voted on soon, providing that things moves qu=3D</span><br><span=
> ickly (not a sure bet, since Dems may want to vote on certain amendments to=
t=3D</span><br><span>he opioid bill).&amp;nbsp; Despite these potential han=
g ups, Senate leadership h=3D</span><br><span>opes to wrap up the energy bil=
l by the end of the week =3DE2=3D80=3D93 giving them=3D</span><br><span> som=
e breathing room before the Senate adjourns for Easter recess by March 2=3D<=
/span><br><span>1.&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&l=
t;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0,=3D</span><br><span> 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=3D</=
span><br><span>2); text-decoration: -webkit-letterpress; margin: 0in 0in 12p=
t;"&gt;&lt;span style=3D</span><br><span>=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;While Sen. Cruz lifted his ho=3D</span><br><span>ld on the b=
ill last week, Mike Lee has continued to block movement on the le=3D</span><=
br><span>gislation. &amp;nbsp;Sen. Lee is claiming that federal aid is not n=
ecessary to d=3D</span><br><span>eal with Flint:&amp;nbsp;=3DE2=3D80=3D9CThe=
state of Michigan has an enormous budget s=3D</span><br><span>urplus this y=
ear and a large rainy-day fund, totaling hundreds of millions o=3D</span><br=
> <span>f dollars," the Senator said in a statement.&lt;o:p&gt;&lt;/o:p&gt;&l=
t;/span&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal" style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D</span><br><spa=
n>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=
s;=3D</span><br><span> margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D"backgro=
und-color: rgba(255, 255, 255,=3D</span><br><span> 0);"&gt;&lt;b&gt;&lt;u&gt=
;Flint agreement&lt;/u&gt;:&lt;/b&gt;&lt;b&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&=
gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal" st=
yle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D</span><b=
r><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lett=
erpress;=3D</span><br><span> margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D"b=
ackground-color: rgba(255, 255, 255,=3D</span><br><span> 0);"&gt;The bill pr=
ovides $250 million to assist the residents of&amp;nbsp;Flint, M=3D</span><b=
r><span>ichigan and other American cities experiencing critical problems wit=
h their w=3D</span><br><span>ater supplies by&amp;nbsp;increasing funding fo=
r Drinking Water Act State Revolv=3D</span><br><span>ing Funds and provide s=
tart-up funding for the new Water Infrastructure Fina=3D</span><br><span>nce=
and Innovation Act.&amp;nbsp; It includes:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&=
gt;&lt;/p&gt;&lt;p class=3D3D"=3D</span><br><span>MsoListParagraphCxSpFirst"=
style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D</span><br><span>comp=
osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D<=
/span><br><span>it-letterpress; margin: 0in 0in 12pt 0.5in;"&gt;&lt;span sty=
le=3D3D"background-color=3D</span><br><span>: rgba(255, 255, 255, 0);"&gt;=3D=
C2=3DB7&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp=
;$=3D</span><br><span>100 million for Drinking Water State Revolving Funds (=
SRFs) accessible by an=3D</span><br><span>y state with a drinking water emer=
gency.&amp;nbsp; It requires states to submit p=3D</span><br><span>lans expl=
aining how the money will be spent to address the emergency before f=3D</spa=
n><br><span>unding is provided. &amp;nbsp;&amp;nbsp;Funds that remain after 1=
8 months will be di=3D</span><br><span>stributed to all states under the exi=
sting SRF formula.&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/sp=3D</span><br><spa=
n>an&gt;&lt;/p&gt;&lt;p class=3D3D"MsoListParagraphCxSpMiddle" style=3D3D"co=
lor: rgba(0, 0, 0,=3D</span><br><span> 0.701961); -webkit-composition-fill-c=
olor: rgba(130, 98, 83, 0.0980392); te=3D</span><br><span>xt-decoration: -we=
bkit-letterpress; margin: 0in 0in 12pt 0.5in;"&gt;&lt;span style=3D</span><b=
r><span>=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DC2=3DB7&amp;n=
bsp;&amp;nbsp;&amp;nbsp;&amp;nbsp=3D</span><br><span>;&amp;nbsp;&amp;nbsp;&a=
mp;nbsp;$70 million in funding to back secured loans made under t=3D</span><=
br><span>he new Water Infrastructure Finance and Innovation Act (WIFIA).&amp=
;nbsp; A fede=3D</span><br><span>ral investment of $70 million could support=
secured loans of up to $4.2 bill=3D</span><br><span>ion to address water an=
d wastewater infrastructure needs across the country,=3D</span><br><span> ac=
cording to Sen. Inhofe=3DE2=3D80=3D99s office.&amp;nbsp; All states and all c=
ommuni=3D</span><br><span>ties with clean water and drinking water infrastru=
cture needs are eligible f=3D</span><br><span>or this assistance.&amp;nbsp;&=
lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoListParagra=
phC=3D</span><br><span>xSpLast" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-c=3D</span><br><span>olor: rgba(130, 98, 83, 0.09803=
92); text-decoration: -webkit-letterpress; ma=3D</span><br><span>rgin: 0in 0=
in 12pt 0.5in;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=3D=
</span><br><span>55, 0);"&gt;=3DC2=3DB7&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nb=
sp;&amp;nbsp;&amp;nbsp;&amp;nbsp;$50 million for var=3D</span><br><span>ious=
in authorized health programs for national use to address and prevent i=3D<=
/span><br><span>mpacts from exposure to lead.&amp;nbsp;&lt;o:p&gt;&lt;/o:p&g=
t;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorm=3D</span><br><span>al" sty=
le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=3D</=
span><br><span> rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=
rpress; margin:=3D</span><br><span> 0in 0in 12pt;"&gt;&lt;span style=3D3D"ba=
ckground-color: rgba(255, 255, 255, 0);"&gt;&lt;b=3D</span><br><blockquote t=
ype=3D"cite"><span>&lt;u&gt;=3DE2=3D80=3D9CFlint=3DE2=3D80=3D9D is more than=
Flint&lt;/u&gt;&lt;/b&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;=3D<=
/span><br></blockquote><span>&lt;p class=3D3D"MsoNormal" style=3D3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-comp=3D</span><br><span>osition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=3D</span><br><span>e=
tterpress; margin: 0in 0in 12pt;"&gt;&lt;span style=3D3D"background-color: r=
gba(255=3D</span><br><span>, 255, 255, 0);"&gt;Flint is a crisis of governan=
ce =3DE2=3D80=3D93 there is a discon=3D</span><br><span>nect in the relation=
ship between citizens and government, and it bridges eve=3D</span><br><span>=
ry demographic.&amp;nbsp; Just as the poor drink water so do the wealthy, an=
d wh=3D</span><br><span>en a service as basic and fundamental is undermined t=
o the point that an ent=3D</span><br><span>ire town of nearly a hundred thou=
sands is poisoned by its own government, vo=3D</span><br><span>ters will exp=
ress themselves, given the chance.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cla=
ss=3D3D"=3D</span><br><span>MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701=
961); -webkit-composition-fill=3D</span><br><span>-color: rgba(130, 98, 83, 0=
.0980392); text-decoration: -webkit-letterpress; m=3D</span><br><span>argin:=
0in 0in 12pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255,=
0=3D</span><br><span>);"&gt;Residents, customers, consumers, taxpayers =3DE=
2=3D80=3D93- citizens at the en=3D</span><br><span>d of the day &amp;nbsp;=3D=
E2=3D80=3D93- are seeing their government in a significantly=3D</span><br><s=
pan> different light and thus far are voting differently this year according=
ly.&amp;=3D</span><br><span>nbsp;Donald Trump would not likely be able to pu=
t Michigan in play without t=3D</span><br><span>his new perspective animatio=
n politics in Michigan as much as anywhere.&amp;nbsp=3D</span><br><span>;&lt=
;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;div&gt;&lt;div style=3D3D"text-decoratio=
n: -webkit-letterpress;"&gt;=3D</span><br><span>&lt;div dir=3D3D"ltr"&gt;&lt=
;div dir=3D3D"ltr"&gt;&lt;div dir=3D3D"ltr"&gt;&lt;p class=3D3D"MsoNormal" s=
t=3D</span><br><span>yle=3D3D"margin-bottom: 17.25pt;"&gt;&lt;span style=3D3=
D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0);"&gt;________=
_____________________________&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;p class=3D=
</span><br><span>=3D3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D3D"background-co=
lor: rgba(255, 255, 255, 0);"&gt;Upc=3D</span><br><span>oming/Recent Updates=
&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div st=
yle=3D3D"text-decorat=3D</span><br><span>ion: -webkit-letterpress;"&gt;&lt;d=
iv&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><br><span>5=
5, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; Tues -- &amp;nbsp;Financial Reg. N=
ominations&lt;/spa=3D</span><br><span>n&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3D</span>=
<br><span>=3DA2 &amp;nbsp; Wed -- &amp;nbsp;SIFIs and the Fed&lt;/span&gt;&l=
t;/div&gt;&lt;div&gt;&lt;span style=3D3D"ba=3D</span><br><span>ckground-colo=
r: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; Thurs -- Update on=
=3D</span><br><span> Tax Bills&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;=
&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D3D=
"background-color: rgba(25=3D</span><br><span>5, 255, 255, 0);"&gt;&amp;nbsp=
; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; ERI/Housing&lt;/span&gt;&lt;/div&gt;&=
lt;/di=3D</span><br><span>v&gt;&lt;div&gt;&lt;span style=3D3D"background-col=
or: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbs=3D</span><br><span>p;=3D=
E2=3D80=3DA2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&=
lt;span style=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 255,=
0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; EU/US Deriva=3D</sp=
an><br><span>tives Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;&amp;nb=
sp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Pension Crisis&lt;/span&gt;&lt;/div=
&gt;&lt;div&gt;&lt;span=3D</span><br><span> style=3D3D"background-color: rgb=
a(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=3D=
</span><br><span>span style=3D3D"background-color: rgba(255, 255, 255, 0);"&=
gt;Michigan and the Me=3D</span><br><span>aning of Flint (Mar 8) Puerto Rico=
's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;/div&gt;=3D</span><br><spa=
n>&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&=
gt;Municipal Fin=3D</span><br><span>ance Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;=
&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-=3D</span=
> <br><span>color: rgba(255, 255, 255, 0);"&gt;Flint Bill: &amp;nbsp;Provisio=
ns &amp;amp; Prospects=3D</span><br><span> (Mar. 2)&amp;nbsp;&lt;/span&gt;&l=
t;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</s=
pan><br><span>55, 255, 0);"&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)=
&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=3D</span><br><span>an style=3D3D"=
background-color: rgba(255, 255, 255, 0);"&gt;Bigger than the Budge=3D</span=
> <br><span>t Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&=
lt;div&gt;&lt;span style=3D3D"background-col=3D</span><br><span>or: rgba(255=
, 255, 255, 0);"&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18)&amp;n=3D=
</span><br><span>bsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=
"background-color: rgba(255, 255, 255, 0=3D</span><br><span>);"&gt;Does DFA =
Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=
an style=3D</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0);"=
&gt;Below the Radar/Customs Bill &amp;=3D</span><br><span>nbsp;(Feb. 16)&amp=
;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-col=
or: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;International Tax Status=
&amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;/div&gt;&lt;di=3D</span><br><span>v&gt;=
&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The Fed Ho=
lds St=3D</span><br><span>eady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;/div&gt;&=
lt;div&gt;&lt;span style=3D3D"background-color: rgba(=3D</span><br><span>255=
, 255, 255, 0);"&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;/spa=
n&gt;&lt;div&gt;&lt;spa=3D</span><br><span>n style=3D3D"background-color: rg=
ba(255, 255, 255, 0);"&gt;Tax Talk of the Town &amp;=3D</span><br><span>nbsp=
;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D3D"background-co=
lor: rgba(255, 255,=3D</span><br><span> 255, 0);"&gt;Defending Dodd-Frank &a=
mp;nbsp;(Feb. 2)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D3D=3D</sp=
an><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Fiscal Pol: Defi=
cit/Debt Dormanc=3D</span><br><span>y (Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;=
div&gt;&lt;span style=3D3D"background-color: rgba(255, 255,=3D</span><br><sp=
an> 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&g=
t;&lt;/div&gt;&lt;div&gt;&lt;sp=3D</span><br><span>an style=3D3D"background-=
color: rgba(255, 255, 255, 0);"&gt;Debate Myths Challeng=3D</span><br><span>=
ed &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3=
D"background-color: rgba(25=3D</span><br><span>5, 255, 255, 0);"&gt;Regulati=
ng the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;/div&gt;&lt;div=3D</sp=
an><br><blockquote type=3D"cite"><span>&lt;span style=3D3D"background-color:=
rgba(255, 255, 255, 0);"&gt;Sanders' Tax/Heal=3D</span><br></blockquote><sp=
an>thcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;s=
pan style=3D3D"background-colo=3D</span><br><span>r: rgba(255, 255, 255, 0);=
"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;/span&gt;&lt;div&gt;=3D=
</span><br><span>&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;2016 Tax Agenda on=3D</span><br><span> the Hill &amp;nbsp;(Jan. 16)&l=
t;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: r=3D=
</span><br><span>gba(255, 255, 255, 0);"&gt;Glass-Steagall, Take 2 &amp;nbsp=
;(Jan. 13)&lt;/span&gt;&lt;/div&gt;&lt;=3D</span><br><span>div&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Polic=3D</s=
pan><br><span>y Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt=
;&lt;span style=3D3D"background-color: rg=3D</span><br><span>ba(255, 255, 25=
5, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div=
&gt;=3D</span><br><span>&lt;div&gt;&lt;span style=3D3D"background-color: rgb=
a(255, 255, 255, 0);"&gt;Sanders' Fin R=3D</span><br><span>eg Proposals &amp=
;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"backgr=
ound-color=3D</span><br><span>: rgba(255, 255, 255, 0);"&gt;Year-End Review:=
Fiscal Policy (Jan. 1) &amp;nbsp;Yea=3D</span><br><span>r-End Review: Fin. R=
eg.&amp;nbsp;&amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;=3D</=
span><br><span>/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"backgroun=
d-color: rgba(255, 255, 255, 0);"&gt;O=3D</span><br><span>mnibus Situation &=
amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&=
gt;&lt;/div&gt;&lt;/div&gt;&lt;=3D</span><br><span>div&gt;&lt;span style=3D3=
D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/=
d=3D</span><br><span>iv&gt;&lt;div&gt;&lt;span style=3D3D"background-color: r=
gba(255, 255, 255, 0);"&gt;------&lt;/sp=3D</span><br><span>an&gt;&lt;/div&g=
t;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&=
gt;&lt;br&gt;=3D</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/d=
iv&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255=3D</spa=
n><br><span>, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: r=3D</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress;"&gt;Mike &amp;am=3D</span><br><span>p; Co. --&lt;/spa=
n&gt;&lt;/div&gt;&lt;div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961=
); -we=3D</span><br><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0=
980392); text-decoration: -=3D</span><br><span>webkit-letterpress;"&gt;&lt;d=
iv dir=3D3D"ltr"&gt;&lt;div dir=3D3D"ltr"&gt;&lt;div dir=3D3D"ltr"&gt;&lt;p c=
=3D</span><br><span>lass=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&l=
t;span style=3D3D"background-col=3D</span><br><span>or: rgba(255, 255, 255, 0=
);"&gt;The February jobs report came out this morning b=3D</span><br><span>e=
tter than expected. &amp;nbsp; Once again,&amp;nbsp;&lt;/span&gt;&lt;span st=
yle=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;t=
he US economy maintained strong job growt=3D</span><br><span>h without wage g=
ains. &amp;nbsp;Wages fell 0.1 percent in February, but 242,000 p=3D</span><=
br><span>ositions were added to the economy, marking 72 months of uninterrup=
ted job g=3D</span><br><span>ains =3DE2=3D80=3D93 the longest streak on reco=
rd.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"Mso=3D</span><br><span>=
Normal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"background-colo=
r: rgba(25=3D</span><br><span>5, 255, 255, 0);"&gt;Additionally, labor parti=
cipation rose by 1.5 million Amer=3D</span><br><span>icans since November =3D=
E2=3D80=3D93 making it the highest it has been&amp;nbsp;in 16 y=3D</span><br=
> <span>ears&amp;nbsp;(62.9 percent of the overall share of Americans).&lt;/s=
pan&gt;&lt;/p&gt;&lt;p cla=3D</span><br><span>ss=3D3D"MsoNormal" style=3D3D"=
margin: 12pt 0in;"&gt;&lt;span style=3D3D"background-color=3D</span><br><spa=
n>: rgba(255, 255, 255, 0);"&gt;The report from Puerto Rico is not as sunny.=
&amp;nbs=3D</span><br><span>p;The territory is still waiting on a Congressi=
onal bill designed to handle t=3D</span><br><span>he ongoing debt crisis on t=
he island. &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background=3D</span><b=
r><span>-color: rgba(255, 255, 255, 0);"&gt;More &amp;nbsp;below.&lt;/span&g=
t;&lt;/p&gt;&lt;p class=3D3D"Mso=3D</span><br><span>Normal" style=3D3D"margi=
n: 12pt 0in;"&gt;&lt;span style=3D3D"background-color: rgba(25=3D</span><br>=
<span>5, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=
ormal" style=3D3D"margin: 12=3D</span><br><span>pt 0in;"&gt;Dana&lt;/p&gt;&l=
t;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;________=3D</span=
> <br><span>______________________________&lt;/p&gt;&lt;p class=3D3D"MsoNorma=
l" style=3D3D"margin: 12=3D</span><br><span>pt 0in;"&gt;&lt;b style=3D3D"bac=
kground-color: rgba(255, 255, 255, 0);"&gt;Puerto Rico=3DE2=3D</span><br><sp=
an>=3D80=3D99s Time Bomb&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" styl=
e=3D3D"margin: 12pt 0in;"&gt;=3D</span><br><span>&lt;span style=3D3D"backgro=
und-color: rgba(255, 255, 255, 0);"&gt;The Puerto Rican d=3D</span><br><span=
> ebt crisis has been an ongoing concern for both Congress, Wall Street and t=
h=3D</span><br><span>e Obama administration for some years now =3DE2=3D80=3D=
93 the territory=3DE2=3D80=3D99s b=3D</span><br><span>ond ratings have been s=
teadily dropping into the junk category and fell from=3D</span><br><span> A-=
in 2005 to CCC+ last April.&amp;nbsp; At the heart of the matter is $70 bil=
l=3D</span><br><span>ion in bonds that Puerto Rico owes and says it cannot p=
ay on.&amp;nbsp;&lt;/span&gt;&lt;/=3D</span><br><span>p&gt;&lt;p class=3D3D"=
MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"backgrou=3D<=
/span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Because Puerto Rican b=
onds are tax exempt=3D</span><br><span> in all 50 states and the District of=
Columbia, making them incredibly popul=3D</span><br><span>ar investments fo=
r mutual funds, pensioners, and big banks.&amp;nbsp; Over 20 pe=3D</span><br=
> <span>rcent of mutual funds in the United States hold at least some Puerto R=
ican b=3D</span><br><span>onds, with $11.3 billion in portfolio, with a furt=
her $15 billion in bonds h=3D</span><br><span>eld by hedge funds.&amp;nbsp; N=
ow that the territory=3DE2=3D80=3D99s bonds are in the =3DE2=3D</span><br><s=
pan>=3D80=3D9Cjunk=3DE2=3D80=3D9D category, pension funds and insurance firm=
s are unable t=3D</span><br><span>o hold them any longer.&lt;/span&gt;&lt;/p=
&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12=3D</span><br><span>pt 0=
in;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Th=
e diver=3D</span><br><span>se list of bond holders has thrown a wrench into t=
he plans of those who woul=3D</span><br><span>d rather allow Puerto Rico to d=
efault on its obligations =3DE2=3D80=3D93 something=3D</span><br><span> whic=
h would require legislative action (the territory doesn=3DE2=3D80=3D99t have=
t=3D</span><br><span>hat luxury, unlike states).&amp;nbsp; If Puerto Rico i=
s allowed to renege on its=3D</span><br><span> contractual agreements, the a=
rgument goes, then it creates a moral hazard f=3D</span><br><span>or other e=
ntities to do the same rather than make the tough choices necessar=3D</span>=
<br><span>y to honor their obligations.&amp;nbsp; The fact that many of thes=
e bonds are es=3D</span><br><span>sentially held by ordinary Americans (thro=
ugh mutual funds and pensions) mak=3D</span><br><span>es the argument all th=
at stronger for many representatives.&amp;nbsp; A state ha=3D</span><br><spa=
n>sn=3DE2=3D80=3D99t declared bankruptcy since Arkansas did so in 1933.&lt;/=
span&gt;&lt;/p&gt;&lt;p=3D</span><br><span> class=3D3D"MsoNormal" style=3D3D=
"margin: 12pt 0in;"&gt;&lt;span style=3D3D"background-c=3D</span><br><span>o=
lor: rgba(255, 255, 255, 0);"&gt;Moral hazard is inherent in a debt restruct=
ur=3D</span><br><span>ing deal; here, the path for Puerto Rico toward capita=
l markets after anythi=3D</span><br><span>ng of the sort would still be an e=
specially painful one (see: Argentina).&amp;nb=3D</span><br><span>sp; Additi=
onally, there are few serious proposals to grant the island full C=3D</span>=
<br><span>hapter 9 status. &amp;nbsp;Most opt instead for some form of negot=
iated haircut a=3D</span><br><span>greement combined with extending maturiti=
es on the bonds; these proposals ar=3D</span><br><span>e likely to succeed, c=
onsidering Puerto Rico is almost certainly unable to m=3D</span><br><span>ai=
ntain its bond payment schedule without a restructuring agreement.&lt;/span&=
gt;&lt;=3D</span><br><span>/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"marg=
in: 12pt 0in;"&gt;&lt;span style=3D3D"backgro=3D</span><br><span>und-color: r=
gba(255, 255, 255, 0);"&gt;&lt;b&gt;Administration Position&lt;/b&gt;&lt;b&g=
t;&lt;/b&gt;&lt;/s=3D</span><br><span>pan&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=
ormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"ba=3D</span><br>=
<span>ckground-color: rgba(255, 255, 255, 0);"&gt;Testifying before the Hous=
e Committ=3D</span><br><span>ee on Natural Resources on Feb 25, Treasury off=
icial Antonio Weiss warned la=3D</span><br><span>wmakers that Puerto Rico ne=
eds =3DE2=3D80=3D9Can immediate solution=3DE2=3D80=3D9D if it=3D</span><br><=
span>=3DE2=3D80=3D99s to survive past&amp;nbsp;May 1, when a $470 million bo=
nd payment is d=3D</span><br><span>ue.&amp;nbsp; Soon after that,&amp;nbsp;o=
n&amp;nbsp;July 1, a $1.9 billion bond payment w=3D</span><br><span>ill come=
due as well =3DE2=3D80=3D93 Puerto Rican representatives have already dec=3D=
</span><br><span>lared they cannot meet those payments without assistance.&l=
t;/span&gt;&lt;/p&gt;&lt;p class=3D</span><br><span>=3D3D"MsoNormal" style=3D=
3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"background-color: r=3D</span><b=
r><span>gba(255, 255, 255, 0);"&gt;Weiss laid out the administration=3DE2=3D=
80=3D99s two-part=3D</span><br><span> plan: first the territory must be allo=
wed to restructure its debt obligatio=3D</span><br><span>ns, second a fiscal=
oversight board should be established to assist the isla=3D</span><br><span=
> nd with managing its finances.&amp;nbsp; Importantly, Weiss stopped short o=
f adv=3D</span><br><span>ocating for bankruptcy protection for Puerto Rico a=
nd told the committee tha=3D</span><br><span>t =3DE2=3D80=3D9Can advisory bo=
ard is not adequate to do the job=3DE2=3D80=3D9D alone.&amp;n=3D</span><br><=
span>bsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D=
3D"margin: 12pt 0in;"&gt;&lt;spa=3D</span><br><span>n style=3D3D"background-=
color: rgba(255, 255, 255, 0);"&gt;House Democrats voiced=3D</span><br><span=
> concern over the financial oversight board, Rep. Luis Guti=3DC3=3DA9rrez: =3D=
E2=3D80=3D</span><br><span>=3D9CThey=3DE2=3D80=3D99re saying that there=3DE2=
=3D80=3D99s a joint responsibility, but i=3D</span><br><span>t seems to me t=
hat all of the responsibility is being weighed on the people o=3D</span><br>=
<span>f Puerto Rico.=3DE2=3D80=3D9D&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&g=
t;&lt;p class=3D3D"MsoNormal" style=3D3D=3D</span><br><span>"margin: 12pt 0i=
n;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=3D</spa=
n><br><span>"&gt;Meanwhile Republicans claimed that any plan to restructure P=
uerto Rican de=3D</span><br><span>bt was a non-starter; a few hours after th=
e hearing the Republican Study Com=3D</span><br><span>mittee announced it wo=
uld oppose any plan including such a provision.&amp;nbsp;&amp;=3D</span><br>=
<span>nbsp;"Changing the rules mid-game would be unfair to Puerto Rico=3DE2=3D=
80=3D99s c=3D</span><br><span>reditors who entered into these arrangements w=
ith agreed upon terms and woul=3D</span><br><span>d delegitimize future tran=
sactions," said RSC Chairman&amp;nbsp;Bill Flores.&lt;/sp=3D</span><br><span=
> an&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&g=
t;&lt;b style=3D3D"backgr=3D</span><br><span>ound-color: rgba(255, 255, 255,=
0);"&gt;Policy Options&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNo=3D</span><=
br><span>rmal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"backgrou=
nd-color: rgba(255,=3D</span><br><span> 255, 255, 0);"&gt;Until recently the=
two parties have maintained starkly contr=3D</span><br><span>asting views o=
n how to best deal with Puerto Rico=3DE2=3D80=3D99s debt crisis =3DE2=3D80=3D=
</span><br><span>=3D93 Democrats have pushed for a forced debt restructuring=
, with some calling=3D</span><br><span> for the island to be granted Chapter=
9 bankruptcy protections, meanwhile Re=3D</span><br><span>publicans called f=
or a financial oversight council to make the tough fiscal d=3D</span><br><sp=
an>ecisions necessary for Puerto Rico to maintain its debt obligations witho=
ut r=3D</span><br><span>eneging on its agreements.&lt;/span&gt;&lt;/p&gt;&lt=
;p class=3D3D"MsoNormal" style=3D3D"margin:=3D</span><br><span> 12pt 0in;"&g=
t;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The ad=3D=
</span><br><span>ministration, through Weiss, has advocated a middle of the r=
oad approach. By=3D</span><br><span> adopting both proposals and avoiding th=
e further edges of each (no bankrupt=3D</span><br><span>cy, and no unaccount=
able board staffed by Wall Streeters), the administratio=3D</span><br><span>=
n hopes to find compromise between each group.&amp;nbsp; And it seems like i=
t mi=3D</span><br><span>ght work.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"Mso=
Normal" style=3D3D"margin: 12pt 0in;"&gt;&lt;b st=3D</span><br><span>yle=3D3=
D"background-color: rgba(255, 255, 255, 0);"&gt;Finding Compromise&lt;/b&gt;=
&lt;/p&gt;=3D</span><br><span>&lt;p class=3D3D"MsoNormal" style=3D3D"margin-=
bottom: 0.0001pt;"&gt;&lt;span style=3D3D"bac=3D</span><br><span>kground-col=
or: rgba(255, 255, 255, 0);"&gt;Recently, however, the conservative s=3D</sp=
an><br><span>tance against debt restructuring has lessened =3DE2=3D80=3D93 w=
ith some Republican=3D</span><br><span>s saying that they could support a PR=
bill as long as it doesn=3DE2=3D80=3D99t inc=3D</span><br><span>lude Chapte=
r 9 bankruptcy.&amp;nbsp; House Natural Resources chair Bob Bishop ha=3D</sp=
an><br><span>s been working on a bill for Puerto Rico that does include some=
element of d=3D</span><br><span>ebt restructuring, and recently said =3DE2=3D=
80=3D9C=3DE2=3D80=3D9CI=3DE2=3D80=3D99m sure RSC w=3D</span><br><span>ill be=
satisfied with what we do =3DE2=3D80=3DA6 to say that some element of [debt=
=3D</span><br><span> restructuring] could be in there, yeah.=3DE2=3D80=3D9D &=
amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp=3D</span><br><span>; &amp;nbsp;&lt=
;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 17=
.25pt;"&gt;=3D</span><br><span>&lt;span style=3D3D"background-color: rgba(25=
5, 255, 255, 0);"&gt;The House is still=3D</span><br><span> sticking to its e=
nd of March deadline set by Speaker Ryan&amp;nbsp;for putting f=3D</span><br=
> <span>orward a final bill on Puerto Rico on the floor for a vote.&amp;nbsp;=
&lt;/span&gt;&lt;/p&gt;=3D</span><br><span>&lt;p class=3D3D"MsoNormal" style=
=3D3D"margin-bottom: 17.25pt;"&gt;&lt;span style=3D3D"back=3D</span><br><spa=
n>ground-color: rgba(255, 255, 255, 0);"&gt;________________________________=
_____=3D</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;p class=3D3D=
"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D3D"background-color: rgb=3D</span><br>=
<span>a(255, 255, 255, 0);"&gt;Upcoming/Recent Updates&lt;/u&gt;&lt;/b&gt;&l=
t;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;=3D</span><br><span>div styl=
e=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=3D</s=
pan><br><span> rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=
press;"&gt;&lt;div&gt;&lt;=3D</span><br><span>span style=3D3D"background-col=
or: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; Th=3D</span><br><=
span>urs -- Municipal Finance Caucus&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=
span style=3D3D"background-c=3D</span><br><span>olor: rgba(255, 255, 255, 0)=
;"&gt;=3DE2=3D80=3DA2 &amp;nbsp; Fri -- Puerto Rico&lt;/span&gt;&lt;/d=3D</s=
pan><br><span>iv&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp; Mon -- FY17&lt;/di=
v&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp; Tues -- 13 D=3D</span><br><span> R=
egs&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp; Wed -- &amp;nbsp;TBD&lt=
;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;=3D</span><br><span=
> div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&a=
mp;nbsp; &amp;nbsp;=3DE2=3D</span><br><span>=3D80=3DA2 &amp;nbsp; SBC Nomina=
tions&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-col=3D=
</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D=
80=3DA2 &amp;nbsp; ERI/Housing&lt;/span=3D</span><br><blockquote type=3D"cit=
e"><span>&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-c=
olor: rgba(255, 255, 255, 0);"&gt;=3D</span><br></blockquote><span>&amp;nbsp=
; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;&lt;/div&=
gt;&lt;div&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: rgba=
(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; EU=3D=
</span><br><span>/US Derivatives Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt=
;span style=3D3D"background-color: rgba(=3D</span><br><span>255, 255, 255, 0=
);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Pension Crisis&lt;/sp=
an&gt;&lt;/div=3D</span><br><blockquote type=3D"cite"><span>&lt;div&gt;&lt;s=
pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/=
span&gt;&lt;=3D</span><br></blockquote><span>/div&gt;&lt;div&gt;&lt;span sty=
le=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Michigan=3D</span><br>=
<span> and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;nbsp;=
(Mar. 5)&lt;/=3D</span><br><span>span&gt;&lt;/div&gt;&lt;div&gt;Municipal Fi=
nance Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;&lt;/div&gt;&lt;div&gt;&lt;spa=3D</=
span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Fl=
int Bill: &amp;nbsp;Prov=3D</span><br><span>isions &amp;amp; Prospects (Mar.=
2)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"backgr=3D=
</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Top Tax Bills Handi=
capped &amp;nbsp;(Feb. 2=3D</span><br><span>4)&lt;/span&gt;&lt;/div&gt;&lt;d=
iv&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=3D</span=
> <br><span>"&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&g=
t;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span s=3D</span><br><span>tyle=3D3D"=
background-color: rgba(255, 255, 255, 0);"&gt;Infrastructure Finance Up=3D</=
span><br><span>date &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&l=
t;div&gt;&lt;span style=3D3D"background-color:=3D</span><br><span> rgba(255,=
255, 255, 0);"&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;=3D=
</span><br><span>&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color=
: rgba(255, 255, 255, 0);"&gt;Below t=3D</span><br><span>he Radar/Customs Bi=
ll &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span=
style=3D3D"=3D</span><br><span>background-color: rgba(255, 255, 255, 0);"&g=
t;International Tax Status &amp;nbsp;(Fe=3D</span><br><span>b. 11)&lt;/span&=
gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 25=
5, 255,=3D</span><br><span> 0);"&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)=
&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"b=3D</span><br><span=
> ackground-color: rgba(255, 255, 255, 0);"&gt;Obama's FY17 Budget &amp;nbsp;=
(Feb. 9)=3D</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;div&gt;&lt;span style=
=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3D</span><br><span>Tax T=
alk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span=
style=3D3D"background=3D</span><br><span>-color: rgba(255, 255, 255, 0);"&g=
t;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;/sp=3D</span><br><spa=
n>an&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255,=
0);"&gt;Fiscal Pol=3D</span><br><span>: Deficit/Debt Dormancy (Jan. 28)&lt;=
/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background=3D</span><br>=
<span>-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;=
nbsp;(Jan. 28=3D</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=
an style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D</span><br><block=
quote type=3D"cite"><span>Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/sp=
an&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"bac=3D</span><br></blockquo=
te><span>kground-color: rgba(255, 255, 255, 0);"&gt;Regulating the Regulator=
s &amp;nbsp;(Jan=3D</span><br><span>. 21)&lt;/span&gt;&lt;/div&gt;&lt;div&gt=
;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br><s=
pan>);"&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt=
;/div&gt;&lt;div&gt;&lt;span sty=3D</span><br><span>le=3D3D"background-color=
: rgba(255, 255, 255, 0);"&gt;HRC's Tax Policy &amp;nbsp;(Jan=3D</span><br><=
span>. 17)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D3D"background-c=
olor: rgba(255, 255, 255, 0)=3D</span><br><span>;"&gt;2016 Tax Agenda on the=
Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=
3D=3D</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Glass-S=
teagall, Take 2 &amp;nbsp;(Ja=3D</span><br><span>n. 13)&lt;/span&gt;&lt;/div=
&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255,=3D<=
/span><br><span> 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&=
gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"=3D</span><br><span>background=
-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (=3D=
</span><br><span>Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255=3D</span><br><span>, 0);"&gt;Sanders=
' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&l=
t;span styl=3D</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;Year-End Review: Fiscal Poli=3D</span><br><span>cy (Jan. 1) &amp;nbsp=
;Year-End Review: Fin. Reg.&amp;nbsp;&amp;nbsp;(Dec. 29) &amp;nbsp;Omni=3D</=
span><br><span>bus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;s=
pan style=3D3D"background-color: rgba(=3D</span><br><span>255, 255, 255, 0);=
"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&g=
t;&lt;span=3D</span><br><span> style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;FY 2016 Omnibus Talks (=3D</span><br><span>Dec. 10)&lt;/span&gt;=
&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
5=3D</span><br><span>5, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;=
&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"backgrou=3D</span><br><span>nd-co=
lor: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6=
)&amp;=3D</span><br><span>nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br><span>);"&gt;=
Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div=
&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/=3D</span><br><span>div&gt;&lt;=
div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=3D=
</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=
t-letterpress;"&gt;&lt;=3D</span><br><span>span style=3D3D"background-color:=
rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;=3D</span><br><span>nbsp=
;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.=
701961); -web=3D</span><br><span>kit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -=3D</span><br><span>webkit-letterpress;"&gt=
;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=3D</span><br><=
span>;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-co=3D</span><br><span>mposition-fill-color: rgb=
a(130, 98, 83, 0.0980392); text-decoration: -webkit=3D</span><br><span>-lett=
erpress;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&=
gt;___=3D</span><br><span>_____&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"c=
olor: rgba(0, 0, 0, 0.701961); -webkit-comp=3D</span><br><span>osition-fill-=
color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=3D</span><br=
> <span>etterpress;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;&lt;br&gt;&lt;=3D</span><br><span>/span&gt;&lt;/div&gt;&lt;span s=
tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D</span><br><sp=
an>on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=
ter=3D</span><br><span>press;"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&g=
t;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701=3D</span><br><span>961); -we=
bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=3D</span=
> <br><span>oration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div s=
tyle=3D3D"color: rgba(0, 0, 0, 0=3D</span><br><span>.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83, 0.0980392); text=3D</span><br><span>-dec=
oration: -webkit-letterpress;"&gt;In half an hour, the BLS jobs report for =3D=
</span><br><span>February is due to be released. &amp;nbsp;If you'd like an u=
pdate or have any qu=3D</span><br><span>estions, please let me know.&amp;nbs=
p;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0=3D</span><br><span>.=
701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=3D=
</span><br><span>-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt=
;&lt;div style=3D3D"color: rgba(0, 0,=3D</span><br><span> 0, 0.701961); -web=
kit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=3D</span><br><span=
> text-decoration: -webkit-letterpress;"&gt;Meanwhile, amid the most fractio=
us c=3D</span><br><span>ampaign in recent history comes an initiative in Con=
gress that sounds, well,=3D</span><br><span> incongruous with the cacophany.=
&amp;nbsp;A broad and bipartisan group of House=3D</span><br><span> members=
is behind the official launch of a caucus this week dedicated to pr=3D</spa=
n><br><span>otecting and expanding the tax exemption enjoyed by municipal de=
bt.&amp;nbsp;&lt;/d=3D</span><br><span>iv&gt;&lt;div style=3D3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-co=3D</span><br><span>lor: rgba=
(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;b=3D=
</span><br><span>r&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-composition-fi=3D</span><br><span>ll-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit-letterpress=3D</span><br><span>;"&gt=
;You have to start somewhere and why not with incentives to address the na=3D=
</span><br><span>tion's long-neglected infrastructure with tax breaks -- abo=
ut the only kind o=3D</span><br><span>f stimulus and jobs measure that can g=
arner bipartisan support? &amp;nbsp; More o=3D</span><br><span>n the new Mun=
icipal Finance Caucus below. &amp;nbsp;&lt;/div&gt;&lt;div style=3D3D"color:=
r=3D</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color=
: rgba(130, 98, 83, 0.=3D</span><br><span>0980392); text-decoration: -webkit=
-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"col=3D</span><br>=
<span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130,=
98, 8=3D</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpres=
s;"&gt;Best,&lt;/div&gt;&lt;div style=3D3D=3D</span><br><span>"color: rgba(0=
, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D</span><br>=
<span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt=
;&lt;/div&gt;&lt;div sty=3D</span><br><span>le=3D3D"color: rgba(0, 0, 0, 0.7=
01961); -webkit-composition-fill-color: rgba(1=3D</span><br><span>30, 98, 83=
, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Dana&lt;/div&gt;&lt;=
di=3D</span><br><span>v style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: r=3D</span><br><span>gba(130, 98, 83, 0.0980392); tex=
t-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/di=3D</span><br><span>=
v&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-=
fill-col=3D</span><br><span>or: rgba(130, 98, 83, 0.0980392); text-decoratio=
n: -webkit-letterpress;"&gt;___=3D</span><br><span>_________________________=
_________&lt;br&gt;&lt;div&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"m=3D</s=
pan><br><span>argin: 12pt 0in;"&gt;&lt;font style=3D3D"background-color: rgb=
a(255, 255, 255, 0);"&gt;=3D</span><br><span>&lt;b&gt;A New Caucus&lt;/b&gt;=
&lt;/font&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0=
=3D</span><br><span>in;"&gt;&lt;font style=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;On Tuesday, R=3D</span><br><span>eps. Randy Hultgren and Du=
tch Ruppersberger announced that they have formed t=3D</span><br><span>he Mu=
nicipal Finance Caucus to protect the tax-exempt status of municipal de=3D</=
span><br><span>bt and reexamine the way it is treated in financial regulatio=
ns. &amp;nbsp;In 20=3D</span><br><span>15, Hultgren and Ruppersberger sent a=
letter (reprinted below) to House lead=3D</span><br><span>ership&amp;nbsp;&=
lt;/font&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D=
</span><br><blockquote type=3D"cite"><span>opposing&amp;nbsp;the President=3D=
E2=3D80=3D99s proposed 28 percent cap on tax deduct=3D</span><br></blockquot=
e><span>ions for municipal bonds,&amp;nbsp;signed by over 120 of their colle=
agues. &amp;nbsp=3D</span><br><span>;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D=3D</span><b=
r><span>"background-color: rgba(255, 255, 255, 0);"&gt;Their announcement co=
incided wit=3D</span><br><span>h the National Association of State Treasurer=
s=3DE2=3D80=3D99 legislative conferen=3D</span><br><span>ce in D.C. The same=
group drafted another letter, signed by more than 600 st=3D</span><br><span=
> ate and local officials, which urges the leaders of the House Ways and Mean=
s=3D</span><br><span> Committee and the Senate Finance Committee to reject c=
urbs to the muni exem=3D</span><br><span>ption.&amp;nbsp;&lt;/span&gt;&lt;/p=
&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;b=3D</s=
pan><br><span> style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Who=3D=
E2=3D80=3D99s in it?&lt;/b=3D</span><br><blockquote type=3D"cite"><span>&lt;=
/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span s=
tyle=3D3D"backg=3D</span><br></blockquote><span>round-color: rgba(255, 255, 2=
55, 0);"&gt;Right now just the founding representa=3D</span><br><span>tives h=
ave declared their official membership, but it=3DE2=3D80=3D99s foreseeable t=
=3D</span><br><span>hat some of the 120 representatives that signed the lett=
er to House leadersh=3D</span><br><span>ip in 2015 will join as well.&amp;nb=
sp; It=3DE2=3D80=3D99s also seen a s likely that s=3D</span><br><span>ome Se=
nators will want to join the caucus, but the founders haven't made cle=3D</s=
pan><br><span>ar if bicameral membership is a priority.&lt;/span&gt;&lt;/p&g=
t;&lt;p class=3D3D"MsoNormal" s=3D</span><br><span>tyle=3D3D"margin: 12pt 0i=
n;"&gt;&lt;b style=3D3D"background-color: rgba(255, 255, 255,=3D</span><br><=
span> 0);"&gt;Is it Bipartisan?&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorma=
l" style=3D3D"margin: 12pt 0=3D</span><br><span>in;"&gt;&lt;span style=3D3D"=
background-color: rgba(255, 255, 255, 0);"&gt;Since 2013 Hu=3D</span><br><sp=
an>ltgren and Ruppersberger have led bipartisan efforts to draft letters of s=
up=3D</span><br><span>port for municipal bonds. &amp;nbsp;The signatories to=
these letters include mem=3D</span><br><span>bers from both sides of the ai=
sle. &amp;nbsp;Rep. Ruppersberger focuses mostly o=3D</span><br><span>n loca=
l government and is pretty moderate. Rep. Hultgren is a more orthodox c=3D</=
span><br><span>onservative Republican.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p=
class=3D3D"MsoNormal" style=3D3D"marg=3D</span><br><span>in: 12pt 0in;"&gt;=
&lt;b style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;What=3DE2=3D<=
/span><br><span>=3D80=3D99s the Purpose?&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"margin: 12pt 0in=3D</span><br><span>;"&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The Caucus plan=3D</s=
pan><br><span>s to defend municipal bonds=3DE2=3D80=3D99 tax exempt status a=
nd advocate for regu=3D</span><br><span>latory changes which favor those bon=
ds.&amp;nbsp; Proposals to limit the tax-exe=3D</span><br><span>mpt status o=
f these bonds have been floated in recent years.&amp;nbsp;&lt;/span&gt;&lt;/=
p=3D</span><br><blockquote type=3D"cite"><span>&lt;p class=3D3D"MsoNormal" s=
tyle=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"backgroun=3D</span><br><=
/blockquote><span>d-color: rgba(255, 255, 255, 0);"&gt;In addition to callin=
g for the bonds to ma=3D</span><br><span>intain their tax preferred status, t=
he Caucus will push for the passage of H=3D</span><br><span>R 2209, legislat=
ion considering municipal bonds as a&lt;/span&gt;&lt;span style=3D3D"ba=3D</=
span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;High Qu=
ality Liquid Asset (&lt;/=3D</span><br><span>span&gt;&lt;span style=3D3D"bac=
kground-color: rgba(255, 255, 255, 0);"&gt;HQLA) =3DE2=3D80=3D93=3D</span><b=
r><span> a particularly contentious issue because of the disagreement over h=
ow flexi=3D</span><br><span>ble these liquidity rules should be from a syste=
mic risk perspective.&amp;nbsp;&lt;=3D</span><br><span>/span&gt;&lt;/p&gt;&l=
t;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;b style=3D3D"=
bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Positions T=
aken to Date&lt;/b&gt;&lt;/p&gt;&lt;p cl=3D</span><br><span>ass=3D3D"MsoNorm=
al" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"background-colo=3D<=
/span><br><span>r: rgba(255, 255, 255, 0);"&gt;The Caucus founders have oppo=
sed Obama=3DE2=3D80=3D99s=3D</span><br><span> 2015 proposal to cap municipal=
bond tax exemption at 28 percent. Rep. Hultg=3D</span><br><span>ren is also=
a co-sponsor of HR 2209 =3DE2=3D80=3D93 the bill to set the liquidity f=3D<=
/span><br><span>or municipal bond assets at Level 2A (see Update, Feb. 18).&=
amp;nbsp; Hultgren s=3D</span><br><span>aid the liquidity rules are an examp=
le of how regulators misunderstand munic=3D</span><br><span>ipal bonds, spec=
ifically the frequent serial structure of the their issuance=3D</span><br><s=
pan>s.&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D3D"en-us" style=3D3D"box-sizin=
g: border-box; margin: 1=3D</span><br><span>em 0px; padding: 0px; border: 0p=
x; vertical-align: baseline; word-wrap: brea=3D</span><br><span>k-word; word=
-break: normal;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255,=3D<=
/span><br><span> 255, 0);"&gt;Many investors flock to municipal bonds for se=
curity. But some fe=3D</span><br><span>deral regulators trying to shore up t=
he banking system aren't convinced the b=3D</span><br><span>onds would be ea=
sy to sell in a crisis.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D3D"=
en-us=3D</span><br><span>" style=3D3D"box-sizing: border-box; margin: 1em 0p=
x; padding: 0px; border: 0p=3D</span><br><span>x; vertical-align: baseline; w=
ord-wrap: break-word; word-break: normal;"&gt;&lt;sp=3D</span><br><span>an s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Division of=
Opinio=3D</span><br><span>n&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D=
3D"en-us" style=3D3D"box-sizing: border-box; margi=3D</span><br><span>n: 1em=
0px; padding: 0px; border: 0px; vertical-align: baseline; word-wrap: b=3D</=
span><br><span>reak-word; word-break: normal;"&gt;&lt;span style=3D3D"backgr=
ound-color: rgba(255, 2=3D</span><br><span>55, 255, 0);"&gt;Division of opin=
ion on HR 2099 falls along unusual lines, with=3D</span><br><span> Wall Stre=
et, Congress and municipal officials challenging bank regulators' s=3D</span=
> <br><span>kepticism toward municipal debt. &amp;nbsp;&amp;nbsp;&lt;/span&gt=
;&lt;span style=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 25=
5, 0);"&gt;At issue are new rules aimed at ensuring b=3D</span><br><span>ank=
s can raise enough cash during a financial-market meltdown to fund their o=3D=
</span><br><span>perations for 30 days. The requirements mean banks have to h=
old more cash or=3D</span><br><span> securities that are easily sellable.&lt=
;/span&gt;&lt;span style=3D3D"background-color:=3D</span><br><span> rgba(255=
, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D3D"en-=
us" style=3D3D"bo=3D</span><br><span>x-sizing: border-box; margin: 1em 0px; p=
adding: 0px; border: 0px; vertical-a=3D</span><br><span>lign: baseline; word=
-wrap: break-word; word-break: normal;"&gt;&lt;span style=3D3D"b=3D</span><b=
r><span>ackground-color: rgba(255, 255, 255, 0);"&gt;Regulators don't think i=
t is the p=3D</span><br><span>lace of Congress to second guess how they size=
up securities. Fed Chairwoman=3D</span><br><span> Janet Yellen, at a congre=
ssional hearing Feb. 11, said legislation would "i=3D</span><br><span>nterfe=
re with our supervisory judgments."&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cl=
ass=3D3D"MsoNor=3D</span><br><span>mal" style=3D3D"margin: 12pt 0in;"&gt;&lt=
;span style=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0=
);"&gt;Big banks such as Citigroup Inc. and Wells Fargo &amp;amp; Co. hav=3D=
</span><br><span>e sprung into action in lobbying Congress, along with munic=
ipal leaders who f=3D</span><br><span>ret the rules will diminish bank bond-=
buying which could raise borrowing cos=3D</span><br><span>ts on infrastructu=
re projects.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"ma=
r=3D</span><br><span>gin: 12pt 0in;"&gt;&lt;span style=3D3D"background-color=
: rgba(255, 255, 255, 0);"&gt;Hu=3D</span><br><span>ltgren also said the cau=
cus will work to update the number of projects that c=3D</span><br><span>oul=
d be financed by qualified small issue manufacturing bonds, a type of pri=3D=
</span><br><span>vate-activity bond whose proceeds can be used to finance ma=
nufacturing facil=3D</span><br><span>ities for small- and mid-sized manufact=
urers. The tax code provisions on sma=3D</span><br><span>ll industrial devel=
opment bonds have not been changed since the 1980s, he sa=3D</span><br><span=
> id. Hultgren sponsored a bill last year entitled =3DE2=3D80=3D9CThe Moderni=
zing Am=3D</span><br><span>erican Manufacturing Bonds Act,=3DE2=3D80=3D9D wh=
ich was focused on expanding oppo=3D</span><br><span>rtunities for qualified=
small issue manufacturing bonds, particularly by cha=3D</span><br><span>ngi=
ng the national volume cap set by Congress.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=
&lt;p class=3D3D"M=3D</span><br><span>soNormal" style=3D3D"margin: 12pt 0in;=
"&gt;&lt;b style=3D3D"background-color: rgba(255=3D</span><br><span>, 255, 2=
55, 0);"&gt;What can be achieved?&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNor=
mal"&gt;&lt;span s=3D</span><br><span>tyle=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;Caucuses such as this one=3D</span><br><span> don't have th=
e best reputation when it comes to getting things done. &amp;nbsp;=3D</span>=
<br><span>But rules relating to the liquidity value of capital is one of the=
few polic=3D</span><br><span>y &amp;nbsp;areas of any kind where there is b=
ipartisan agreement. &amp;nbsp;Municip=3D</span><br><span>al bonds, in parti=
cular, have a universal appeal because of their direct lin=3D</span><br><spa=
n>k to local and state infrastructure projects. &amp;nbsp;At the very least,=
the c=3D</span><br><span>aucus will spark some discussion about the best wa=
y to both reform existing m=3D</span><br><span>ethods for funding infrastruc=
ture investment and find new ways to fund it.&amp;n=3D</span><br><span>bsp;&=
lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"bac=
kground-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;_____________=
____________________&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;=3D</span=
> <br><span>&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color=3D</span><br><span>: rgba(130, 98, 83, 0.0980392); text-dec=
oration: -webkit-letterpress;"&gt;&lt;div d=3D</span><br><span>ir=3D3D"ltr"&=
gt;&lt;div dir=3D3D"ltr"&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;b&gt;&lt;u st=
yle=3D3D"background=3D</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;R=
ecent/Planned Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/d=3D</sp=
an><br><span>iv&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701=
961); -webkit-composition-f=3D</span><br><span>ill-color: rgba(130, 98, 83, 0=
.0980392); text-decoration: -webkit-letterpres=3D</span><br><span>s;"&gt;&lt=
;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3D=
E2=3D80=3DA2=3D</span><br><span> &amp;nbsp; Thurs -- Municipal Finance Caucu=
s&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"ba=3D</span><br><sp=
an>ckground-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; Fri=
-- Puerto Rico=3D</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=3DE2=
=3D80=3DA2 &amp;nbsp; Mon -- FY17&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp=
;nbsp; Tu=3D</span><br><span>es -- 13 D Regs&lt;/div&gt;&lt;div&gt;=3DE2=3D8=
0=3DA2 &amp;nbsp; Wed -- &amp;nbsp;TBD&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/=
=3D</span><br><span>div&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D3D"backgro=
und-color: rgba(255, 255, 255, 0);"&gt;&amp;nbs=3D</span><br><span>p; &amp;n=
bsp;=3DE2=3D80=3DA2 &amp;nbsp; SBC Nominations&lt;/span&gt;&lt;/div&gt;&lt;d=
iv&gt;&lt;span style=3D3D"ba=3D</span><br><span>ckground-color: rgba(255, 25=
5, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; ERI/H=3D</sp=
an><br><span>ousing&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255=3D</span><br><span>, 255, 0);"&gt;=
&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;=
&lt;/div&gt;&lt;div&gt;&lt;=3D</span><br><span>span style=3D3D"background-co=
lor: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3D</span><b=
r><span>=3DA2 &amp;nbsp; EU/US Derivatives Deal&lt;/span&gt;&lt;/div&gt;&lt;=
div&gt;&lt;span style=3D3D"background=3D</span><br><span>-color: rgba(255, 2=
55, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Pension Cri=
si=3D</span><br><span>s&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0);"=3D</span><br><blockquote type=3D=
"cite"><span>&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Municipal Finance=
Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;&lt;/div&gt;&lt;d=3D</span><br></blockqu=
ote><span>iv&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=
;"&gt;Flint Bill: &amp;nb=3D</span><br><span>sp;Provisions &amp;amp; Prospec=
ts (Mar. 2)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=
=3D</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Top Tax B=
ills Handicapped &amp;nbsp;=3D</span><br><span>(Feb. 24)&lt;/span&gt;&lt;/di=
v&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=3D</s=
pan><br><span>55, 0);"&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&=
lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div=3D</span><br><blockquote type=3D"=
cite"><span>&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;Infrastructure Fi=3D</span><br></blockquote><span>nance Update &amp;nbsp;(=
Feb. 18)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"ba=
ckgroun=3D</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Does DFA Fai=
l on Too Big to Fail? (Feb. 17=3D</span><br><span>)&lt;/span&gt;&lt;/div&gt;=
&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D=
</span><br><blockquote type=3D"cite"><span>Below the Radar/Customs Bill &amp=
;nbsp;(Feb. 16)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=3D</=
span><br></blockquote><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;International Tax Status &amp;=3D</span><br><span>nbsp;(Feb. 11)&lt;/=
span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(25=
5, 2=3D</span><br><span>55, 255, 0);"&gt;The Fed Holds Steady &amp;nbsp;(Feb=
. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span st=3D</span><br><span>yle=3D=
3D"background-color: rgba(255, 255, 255, 0);"&gt;Obama's FY17 Budget &amp;nb=
sp;=3D</span><br><span>(Feb. 9)&amp;nbsp;&lt;/span&gt;&lt;div&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 25=3D</span><br><span>5, 0);"&gt;T=
ax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;=
span style=3D3D"ba=3D</span><br><span>ckground-color: rgba(255, 255, 255, 0)=
;"&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)=3D</span><br><span>&lt;br&gt;&=
lt;/span&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;Fi=3D</span><br><span>scal Pol: Deficit/Debt Dormancy (Jan. 28)&=
lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"ba=3D</span><br><span=
> ckground-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &a=
mp;nbsp;=3D</span><br><span>(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt=
;span style=3D3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0=
);"&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;/div&gt;&=
lt;div&gt;&lt;span styl=3D</span><br><span>e=3D3D"background-color: rgba(255=
, 255, 255, 0);"&gt;Regulating the Regulators &amp;n=3D</span><br><span>bsp;=
(Jan. 21)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-=
color: rgba(255, 25=3D</span><br><span>5, 255, 0);"&gt;Sanders' Tax/Healthca=
re Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=3D</span><b=
r><span>&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;HR=
C's Tax Policy &amp;=3D</span><br><span>nbsp;(Jan. 17)&lt;br&gt;&lt;/span&gt=
;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255=3D</span><br=
> <span>, 255, 0);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/sp=
an&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=3D</span><br><span>an style=3D3D"backgro=
und-color: rgba(255, 255, 255, 0);"&gt;Glass-Steagall, Take 2=3D</span><br><=
span> &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=
3D"background-color: rgba(255,=3D</span><br><span> 255, 255, 0);"&gt;2016 Ta=
x Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=
an=3D</span><br><span> style=3D3D"background-color: rgba(255, 255, 255, 0);"=
&gt;Sanders Proposals/GS &amp;a=3D</span><br><span>mp; TBTF (Jan. 7)&lt;/spa=
n&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255=3D=
</span><br><span>, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(J=
an. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=3D</span><br><span>&lt;span style=
=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fi=3D</=
span><br><span>scal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg.&amp=
;nbsp;&amp;nbsp;(Dec. 29&lt;/s=3D</span><br><span>pan&gt;&lt;/div&gt;&lt;/di=
v&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt=
;&lt;div&gt;&lt;br&gt;On Mar 2, 2016,=3D</span><br><span> at 9:39 PM, Dana &=
amp;lt;&lt;a href=3D3D"<a href=3D"mailto:[email-masked]">mailto:danach=
[email-masked]</a>"&gt;danachasin@gma=3D</span><br><span><a href=3D"http://i=
l.com">il.com</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&l=
t;blockquote type=3D3D"cite"&gt;&lt;div&gt;&lt;meta http=3D</span><br><span>=
-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;=
div&gt;&lt;span&gt;&lt;/=3D</span><br><span>span&gt;&lt;/div&gt;&lt;div&gt;&=
lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equi=
v=3D3D"content-typ=3D</span><br><span>e" content=3D3D"text/html; charset=3D3=
Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;me=
ta=3D</span><br><span> http-equiv=3D3D"content-type" content=3D3D"text/html;=
charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;sp=3D</span><br><span>an&gt;&lt;/span&=
gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" content=3D3=
D"text/html;=3D</span><br><span> charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&g=
t;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-t=3D<=
/span><br><span>ype" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&g=
t;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;me=3D</span><br><span>=
ta http-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&=
gt;&lt;div&gt;&lt;=3D</span><br><span>span&gt;&lt;/span&gt;&lt;/div&gt;&lt;d=
iv&gt;&lt;meta http-equiv=3D3D"content-type" content=3D3D"text/htm=3D</span>=
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div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content=3D</span><br><span>-type"=
content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/s=
pan&gt;&lt;/div&gt;&lt;div&gt;&lt;=3D</span><br><span>meta http-equiv=3D3D"c=
ontent-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div=3D</span>=
<br><blockquote type=3D"cite"><span>&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt=
;div&gt;&lt;meta http-equiv=3D3D"content-type" content=3D3D"text/h=3D</span>=
<br></blockquote><span>tml; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt=
;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/di=
v&gt;&lt;=3D</span><br><span>div&gt;&lt;meta http-equiv=3D3D"content-type" c=
ontent=3D3D"text/html; charset=3D3Dutf-8"=3D</span><br><blockquote type=3D"c=
ite"><span>&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;me=
ta http-equiv=3D3D"content-type" content=3D3D"t=3D</span><br></blockquote><s=
pan>ext/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;=
/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"=3D</span><br><span>content-type=
" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/=
span&gt;&lt;/div=3D</span><br><blockquote type=3D"cite"><span>&lt;div&gt;&lt=
;meta http-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-=
=3D</span><br></blockquote><span>8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&=
lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;di=
v&gt;&lt;meta http-equi=3D</span><br><span>v=3D3D"content-type" content=3D3D=
"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;=3D</s=
pan><br><span>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" c=
ontent=3D3D"text/html; charset=3D3D=3D</span><br><span>utf-8"&gt;&lt;div&gt;=
&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=3D</sp=
an><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;div&gt;&lt;=
div&gt;&lt;span style=3D3D"text-d=3D</span><br><span>ecoration: -webkit-lett=
erpress;"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;di=
v sty=3D</span><br><span>le=3D3D"text-decoration: -webkit-letterpress;"&gt;&=
lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"text-de=3D</span><br><span>coration:=
-webkit-letterpress;"&gt;I hope everyone's had a chance to reflect on=3D</s=
pan><br><span> the magnitude of yesterday's hard fought primary wins -- with=
gratitude to t=3D</span><br><span>hose who toiled in the field.&amp;nbsp;&l=
t;/div&gt;&lt;div style=3D3D"text-decoration: -web=3D</span><br><span>kit-le=
tterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"text-decoration: -we=
bkit-letterpre=3D</span><br><span>ss;"&gt;On Saturday night, the campaign de=
bate turns to Flint, Michigan -- to t=3D</span><br><span>he town and the iss=
ues it has come to symbolize. &amp;nbsp; The town's water con=3D</span><br><=
span>tamination and related problems finally move center stage.&amp;nbsp;&lt=
;/div&gt;&lt;div s=3D</span><br><span>tyle=3D3D"text-decoration: -webkit-let=
terpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"text-=3D</span><br><s=
pan>decoration: -webkit-letterpress;"&gt;Congress has moved with uncommon al=
acrity a=3D</span><br><span>nd bipartisanship in recent weeks on legislation=
to direct funding to addres=3D</span><br><span>s the water issue in Flint a=
nd elsewhere. &amp;nbsp; Here, we look at the bill's=3D</span><br><span> pro=
visions, its funding steam, and its prospects. &amp;nbsp;&lt;/div&gt;&lt;div=
style=3D3D=3D</span><br><span>"text-decoration: -webkit-letterpress;"&gt;&l=
t;br&gt;&lt;/div&gt;&lt;div style=3D3D"text-decorat=3D</span><br><span>ion: -=
webkit-letterpress;"&gt;Best,&lt;/div&gt;&lt;div style=3D3D"text-decoration:=
-webkit=3D</span><br><span>-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div s=
tyle=3D3D"text-decoration: -webkit-letterpress;=3D</span><br><span>"&gt;Dana=
&lt;/div&gt;&lt;div style=3D3D"text-decoration: -webkit-letterpress;"&gt;&lt=
;br&gt;&lt;/div&gt;&lt;=3D</span><br><span>div style=3D3D"text-decoration: -=
webkit-letterpress;"&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;hr style=3D</sp=
an><br><span>=3D3D"box-sizing: content-box; border-style: solid; border-colo=
r: gray; height=3D</span><br><span>: 0px;"&gt;&lt;/div&gt;&lt;/div&gt;&lt;/d=
iv&gt;&lt;/div&gt;&lt;div style=3D3D"text-decoration: -webkit-lette=3D</span=
> <br><span>rpress;"&gt;&lt;div dir=3D3D"ltr"&gt;&lt;div dir=3D3D"ltr"&gt;&lt=
;p class=3D3D"MsoNormal" style=3D3D"m=3D</span><br><span>argin-bottom: 0.000=
1pt;"&gt;&lt;b&gt;&lt;u style=3D3D"background-color: rgba(255, 255, 255=3D</=
span><br><span>, 0);"&gt;The Flint Bill -- Provisions &amp;amp; Prospects&lt=
;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"M=3D</span><br><span>soNormal" s=
tyle=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color=3D=
</span><br><span>: rgba(255, 255, 255, 0);"&gt;A bipartisan deal has been re=
ached in the Senate l=3D</span><br><span>ast week to aid the beleaguered cit=
y of Flint, Michigan as it tries to remed=3D</span><br><span>y its drinking w=
ater issues.&amp;nbsp; Sen. Inhofe, the lead GOP Senator on the b=3D</span><=
br><span>ill, called it =3DE2=3D80=3D9Ccommon-sense," and noted that the spe=
nding is alread=3D</span><br><span>y programmed and involves no supplemental=
appropriation. &amp;nbsp; The bill may=3D</span><br><span> be ready to move=
forward after Sen. Cruz lifted a hold he had placed on the=3D</span><br><sp=
an> bill last week. &amp;nbsp;Sen. Mike Lee is still a hold-out.&amp;nbsp;&l=
t;/span&gt;&lt;/p&gt;&lt;p=3D</span><br><span> class=3D3D"MsoNormal" style=3D=
3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backg=3D</span><br><span=
> round-color: rgba(255, 255, 255, 0);"&gt;The bill provides $250 million to a=
ssi=3D</span><br><span>st the residents of Flint, Michigan and other America=
n cities experiencing c=3D</span><br><span>ritical problems with their water=
supplies by&amp;nbsp;increasing funding for Dr=3D</span><br><span>inking Wa=
ter Act State Revolving Funds and provide start-up funding for the n=3D</spa=
n><br><span>ew Water Infrastructure Finance and Innovation Act. &amp;nbsp;It=
also provides:&lt;=3D</span><br><span>/span&gt;&lt;/p&gt;&lt;p class=3D3D"M=
soNormal" style=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;span st=3D</span><br><=
span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &=
amp;nbsp; $100 mill=3D</span><br><span>ion for Drinking Water State Revolvin=
g Funds (SRFs) accessible by any state w=3D</span><br><span>ith a drinking w=
ater emergency.&amp;nbsp; It requires states to submit plans exp=3D</span><b=
r><span>laining how the money will be spent to address the emergency before f=
unding i=3D</span><br><span>s provided. &amp;nbsp;&amp;nbsp;Funds that remai=
n after 18 months will be distribute=3D</span><br><span>d to all states unde=
r the existing SRF formula.&amp;nbsp;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p c=
lass=3D</span><br><span>=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;=
"&gt;&lt;span style=3D3D"background-=3D</span><br><span>color: rgba(255, 255=
, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; $70 million in funding to b=3D</sp=
an><br><span>ack secured loans made under the new Water Infrastructure Finan=
ce and Innova=3D</span><br><span>tion Act (WIFIA).&amp;nbsp; A federal inves=
tment of $70 million could support se=3D</span><br><span>cured loans of up t=
o $4.2 billion to address water and wastewater infrastruc=3D</span><br><span=
> ture needs across the country, according to Sen. Inhofe=3DE2=3D80=3D99s off=
ice.&amp;nb=3D</span><br><span>sp; All states and all communities with clean=
water and drinking water infra=3D</span><br><span>structure needs are eligi=
ble for this assistance.&amp;nbsp;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p cla=
=3D</span><br><span>ss=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&=
gt;&lt;span style=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 2=
55, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp; $50 million for various i=3D</span><b=
r><span>n authorized health programs for national use to address and prevent=
impacts=3D</span><br><span> from exposure to lead.&amp;nbsp;&lt;/span&gt;&l=
t;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"marg=3D</span><br><span>in-bo=
ttom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255=
, 0=3D</span><br><span>);"&gt;&lt;b&gt;Where will the money come from? &amp;=
nbsp;&amp;nbsp;&lt;/b&gt;The package has been f=3D</span><br><span>ully paid=
for -- it redirects appropriations by taking funds from the Advanc=3D</span=
> <br><span>ed Technology Vehicles Manufacturing (ATVM) Fund, which offers lo=
ans for aut=3D</span><br><span>o companies.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=
&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0=3D</span><br><span>.=
0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;&lt;b&gt;Does t=3D</span><br><span>hat matter?&lt;/b&gt;&amp;nbsp; &amp;nb=
sp;Per Sen. Inhofe =3DE2=3D80=3D9C[the ATVM is] a failed p=3D</span><br><spa=
n>rogram that hasn=3DE2=3D80=3D99t been used in more than a year and has onl=
y issued=3D</span><br><span> five loans since 2008."&lt;/span&gt;&lt;/p&gt;&=
lt;p class=3D3D"MsoNormal" style=3D3D"margin-bo=3D</span><br><span>ttom: 0.0=
001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt=
;&lt;=3D</span><br><span>b&gt;More on ATVM&lt;/b&gt;: The ATVM program is au=
thorized to award up to $25 billio=3D</span><br><span>n in loans; there is n=
o deadline for completing such loan commitments. Congr=3D</span><br><span>es=
s funded the program in 2009, when it appropriated $7.5 billion to cover t=3D=
</span><br><span>he subsidy cost for the $25 billion in loans, as well as $1=
0 million for pro=3D</span><br><span>gram implementation. Since the start of=
the program, DOE has awarded $8.4 bi=3D</span><br><span>llion in loans to f=
ive companies. As of January 2015, ATVM has $16.6 billion=3D</span><br><span=
> in remaining loan authority. No new loans have been made since 2011. Two c=
o=3D</span><br><span>mpanies =3DE2=3D80=3D94 Fisker and the Vehicle Producti=
on Group =3DE2=3D80=3D94 were una=3D</span><br><span>ble to make payments on=
their loans, and DOE auctioned the loans off in the f=3D</span><br><span>al=
l of 2013. Tesla paid off all of its loan in 2013, nine years ahead of sch=3D=
</span><br><span>edule.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"Mso=
Normal" style=3D3D"margin-bottom: 0.0001=3D</span><br><span>pt;"&gt;&lt;span=
style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Criticism=
s=3D</span><br><span> of ATVM:&amp;nbsp;&lt;/b&gt;The unobligated funds rema=
ining for the program have been=3D</span><br><span> a point of contention in=
recent appropriations debates. The House has voted=3D</span><br><span> seve=
ral times to transfer some of the unused appropriation for the ATVM sub=3D</=
span><br><span>sidy costs to other purposes. None of these transfers were en=
acted. Other le=3D</span><br><span>gislators have sought to expand the progr=
am. Two recent federal reports call=3D</span><br><span> for rescinding the p=
rogram=3DE2=3D80=3D99s unobligated balance: the FY2015 budget=3D</span><br><=
span> resolution reported by the House Budget Committee calls for outright r=
escis=3D</span><br><span>sion, and an April 2014 GAO report recommends Congr=
ess consider taking&lt;b&gt;&amp;nb=3D</span><br><span>sp;&lt;/b&gt;the same=
step unless DOE can generate new demand for the program.&lt;/sp=3D</span><b=
r><span>an&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom=
: 0.0001pt;"&gt;&lt;b style=3D3D=3D</span><br><span>"background-color: rgba(=
255, 255, 255, 0);"&gt;Legislative Strategy: &amp;nbsp;&amp;nbs=3D</span><br=
> <span>p;&lt;/b&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255,=
0);"&gt;Architects o=3D</span><br><span>f the bipartisan deal put out a hot=
line request to see if anyone would objec=3D</span><br><span>t to a series o=
f procedural moves that would split Flint aid off the energy b=3D</span><br>=
<span>ill (S. 2012), attach it to a House bill (H.R. 4470) sponsored by Reps=
. Dan K=3D</span><br><span>ildee and Fred Upton, allow voice votes on 30 ame=
ndments to the energy bill,=3D</span><br><span> and allow roll call votes on=
eight additional amendments. Michigan Sens. De=3D</span><br><span>bbie Stab=
enow and Gary Peters said Democrats are on board, but in order to a=3D</span=
> <br><span>chieve unanimous consent, Republicans need to sign on.&amp;nbsp;&=
lt;/span&gt;&lt;/p&gt;&lt;p cl=3D</span><br><span>ass=3D3D"MsoNormal" style=3D=
3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backgrou=3D</span><br><s=
pan>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Will it pass?&lt;/b&gt;&a=
mp;nbsp; The Flint pack=3D</span><br><span>age and the energy bill amendment=
s would come to a vote only after the Senat=3D</span><br><span>e gets unanim=
ous consent to some procedural maneuvers. Lee's hold went unnot=3D</span><br=
> <span>iced earlier when GOP presidential candidate Sen. Ted Cruz had a hold=
of his=3D</span><br><span> own, which he has now lifted. The Senate had hop=
ed to hold votes on Flint a=3D</span><br><span>nd end debate on the energy b=
ill as early as next week.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;s=3D</span><b=
r><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nb=
sp; &amp;nbsp; &amp;nbsp;=3D</span><br><span> &amp;nbsp; &amp;nbsp; &amp;nbs=
p; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nb=
sp; &amp;nbsp=3D</span><br><span>; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbs=
p; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp;&lt;/span&gt;&lt;sp=
an=3D</span><br><span> style=3D3D"background-color: rgba(255, 255, 255, 0);"=
&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cla=3D</span><br><span>ss=3D3D"Ms=
oNormal"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;&lt;=3D</span><br><span>b&gt;What=3DE2=3D80=3D99s Next?&amp;nbsp;&amp;nbsp=
;&amp;nbsp;&lt;/b&gt;Sen. Stabenow, a key leader on t=3D</span><br><span>he b=
ill, predicted that =3DE2=3D80=3D9Cone way or another=3DE2=3D80=3D9D the pac=
kage wou=3D</span><br><span>ld be voted on in the Senate this week.&amp;nbsp=
; And while&amp;nbsp;the House hasn'=3D</span><br><span>t decided what it wi=
ll do if the Flint bill clears the Senate, Energy and Co=3D</span><br><span>=
mmerce Committee Chairman Fred Upton said it would move quickly.&lt;/span&gt=
;&lt;/p&gt;&lt;=3D</span><br><span>p class=3D3D"MsoNormal"&gt;&lt;span style=
=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br><span>);"&gt;The O=
bama administration, which declared Flint a federal emergency in Ja=3D</span=
> <br><span>nuary freeing up much-needed funds for the distressed city, has n=
ot issued a=3D</span><br><span>n official stance on the Flint deal.&amp;nbsp=
; Early in the year the President a=3D</span><br><span>lso made available to=
the state of Michigan $80 million from a revolving fun=3D</span><br><span>d=
for infrastructure repair and improvement.&amp;nbsp;&amp;nbsp;&lt;/span&gt;=
&lt;/p&gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal"&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0);"&gt;A numb=3D</span><br><span>e=
r of important events are scheduled for the month of March, listed below.&lt=
;/=3D</span><br><span>span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;s=
pan style=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0);=
"&gt;&amp;nbsp; =3DE2=3D80=3DA2&amp;nbsp; &amp;nbsp;&lt;a href=3D3D"x-apple-=
data-detectors=3D</span><br><span>://15" x-apple-data-detectors=3D3D"true" x=
-apple-data-detectors-type=3D3D"calend=3D</span><br><span>ar-event" x-apple-=
data-detectors-result=3D3D"15"&gt;March 3&lt;/a&gt;&amp;nbsp;--&amp;nbsp;Fli=
n=3D</span><br><span>t is supposed to begin its lead service line replacemen=
t project.&lt;/span&gt;&lt;/p&gt;=3D</span><br><span>&lt;p class=3D3D"MsoNor=
mal"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D</span=
> <br><span>);"&gt;&amp;nbsp; =3DE2=3D80=3DA2&amp;nbsp; &amp;nbsp;&lt;a href=3D=
3D"x-apple-data-detectors://16" x-a=3D</span><br><span>pple-data-detectors=3D=
3D"true" x-apple-data-detectors-type=3D3D"calendar-event" x=3D</span><br><sp=
an>-apple-data-detectors-result=3D3D"16"&gt;March 6&lt;/a&gt;&amp;nbsp;--&am=
p;nbsp;The 7&lt;sup&gt;th&lt;/s=3D</span><br><span>up&gt;&amp;nbsp;Democrati=
c debate will take place in the city of Flint, MI.&amp;nbsp;&amp;n=3D</span>=
<br><span>bsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span=
style=3D3D"background-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&g=
t;&amp;nbsp; =3DE2=3D80=3DA2 &amp;nbsp;&lt;/span&gt;&lt;b style=3D3D"backgro=
und-col=3D</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D3D"x=
-apple-data-detectors://17" x-apple=3D</span><br><span>-data-detectors=3D3D"=
true" x-apple-data-detectors-type=3D3D"calendar-event" x-ap=3D</span><br><sp=
an>ple-data-detectors-result=3D3D"17"&gt;March 15&lt;/a&gt;&amp;nbsp;--&amp;=
nbsp;&lt;/b&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: rgb=
a(255, 255, 255, 0);"&gt;&amp;nbsp;House Committee on Oversig=3D</span><br><=
span>ht and Government Reform will hold its next hearing on the Flint crisis=
.&amp;nbs=3D</span><br><span>p; On schedule is testimony on the Safe Drinkin=
g Water Act (SDWA) by various=3D</span><br><span> policy professionals.&lt;/=
span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"backg=3D=
</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; =3DE2=3D=
80=3DA2&amp;nbsp; &amp;nbsp;&lt;a href=3D3D=3D</span><br><span>"x-apple-data=
-detectors://18" x-apple-data-detectors=3D3D"true" x-apple-data-d=3D</span><=
br><span>etectors-type=3D3D"calendar-event" x-apple-data-detectors-result=3D=
3D"18"&gt;March 1=3D</span><br><span>7&lt;/a&gt;&amp;nbsp;--&amp;nbsp;&lt;u&=
gt;&amp;nbsp;&lt;/u&gt;Hearings resume on SDWA oversight, with Mich=3D</span=
> <br><span>igan Governor Rick Snyder and EPA Administrator Gina McCarthy sch=
eduled to t=3D</span><br><span>estify.&lt;/span&gt;&lt;/p&gt;&lt;div&gt;&lt;=
div&gt;&lt;div&gt;&lt;hr style=3D3D"box-sizing: content-box; borde=3D</span>=
<br><span>r-style: solid; border-color: gray; height: 0px;"&gt;&lt;/div&gt;&=
lt;/div&gt;&lt;/div&gt;&lt;p class=3D</span><br><span>=3D3D"MsoNormal"&gt;&l=
t;b&gt;&lt;u&gt;Upcoming/Recent Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/di=
v&gt;&lt;/div&gt;&lt;/div&gt;&lt;/=3D</span><br><span>div&gt;&lt;div&gt;&lt;=
div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp; Wed -- Flint&amp;nbsp;&lt;/div&=
gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;=3D</span><br><span>nbsp; Thurs -- Munici=
pal Finance Caucus&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp; Fri -- P=
u=3D</span><br><span>erto Rico&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&=
lt;div&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp;&amp;nbsp;&lt;span s=
=3D</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=
Budget Irresolution&lt;/span=3D</span><br><blockquote type=3D"cite"><span>&l=
t;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(2=
55, 255, 255, 0);"&gt;&amp;=3D</span><br></blockquote><span>nbsp; &amp;nbsp;=
=3DE2=3D80=3DA2 &amp;nbsp;13 D Regs&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;s=
pan style=3D3D"backgr=3D</span><br><span>ound-color: rgba(255, 255, 255, 0);=
"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; ERI/Housi=3D</span><br>=
<span>ng&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"=
background-color: rgba(255, 255, 25=3D</span><br><span>5, 0);"&gt;&amp;nbsp;=
&amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;&lt;/div&g=
t;&lt;div&gt;&lt;span=3D</span><br><span> style=3D3D"background-color: rgba(=
255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;=3D</span><=
br><span>nbsp; EU/US Derivatives Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt=
;span style=3D3D"background-colo=3D</span><br><span>r: rgba(255, 255, 255, 0=
);"&gt;&amp;nbsp; &amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp; Pension Crisis&lt;/sp=
=3D</span><br><span>an&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;d=
iv&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (M=3D</span><br><=
span>ar. 2)&amp;nbsp;&lt;/div&gt;&lt;div&gt;Top Tax Bills Handicapped &amp;n=
bsp;(Feb. 24)&lt;/div&gt;&lt;div&gt;B=3D</span><br><span>igger than the Budg=
et Battle &amp;nbsp;(Feb. 23)&lt;/div&gt;&lt;div&gt;&lt;div&gt;Infrastructur=
e Fi=3D</span><br><span>nance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/div&g=
t;&lt;div&gt;Does DFA Fail on Too Big to Fai=3D</span><br><span>l? (Feb. 17)=
&lt;/div&gt;&lt;div&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;=
nbsp;&lt;/d=3D</span><br><span>iv&gt;&lt;div&gt;International Tax Status &am=
p;nbsp;(Feb. 11)&lt;/div&gt;&lt;div&gt;The Fed Holds Ste=3D</span><br><span>=
ady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Budget &amp;nbsp;=
(Feb. 9)&amp;nbsp;&lt;div&gt;T=3D</span><br><span>ax Talk of the Town &amp;n=
bsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2=3D</=
span><br><span>)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan.=
28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=3D</span><br><span>"backgroun=
d-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nb=3D=
</span><br><span>sp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myth=
s Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;=3D</span><br><span>div&gt;R=
egulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' T=
ax/Healthc=3D</span><br><span>are Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;d=
iv&gt;&lt;span style=3D3D"text-decoration: -webkit-=3D</span><br><span>lette=
rpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;d=
iv&gt;2016 Tax Agend=3D</span><br><span>a on the Hill &amp;nbsp;(Jan. 16)&lt=
;/div&gt;&lt;div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 1=3D</span><br><s=
pan>3)&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255,=
255, 255, 0);"&gt;2016 T=3D</span><br><span>ax Policy Issues &amp;nbsp;(Jan=
. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-c=3D<=
/span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;=
amp; TBTF (Jan. 7)&lt;/spa=3D</span><br><span>n&gt;&lt;/div&gt;&lt;div&gt;&l=
t;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Sande=3D</sp=
an><br><span>rs' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&g=
t;&lt;div&gt;&lt;span style=3D3D"backgro=3D</span><br><span>und-color: rgba(=
255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;=3D</spa=
n><br><span>nbsp;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255=
, 255, 255, 0);"&gt;Year-E=3D</span><br><span>nd Review: Fin. Reg.&amp;nbsp;=
&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><br>=
<span>55, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span s=
tyle=3D3D"background-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;=
Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span styl=3D=
</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibu=
s Situation &amp;nbsp;(Dec=3D</span><br><span>. 14)&lt;/span&gt;&lt;/div&gt;=
&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D</s=
pan><br><span>);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt=
;&lt;div&gt;&lt;span style=3D3D"backgrou=3D</span><br><span>nd-color: rgba(2=
55, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&g=
t;&lt;=3D</span><br><span>div&gt;&lt;span style=3D3D"background-color: rgba(=
255, 255, 255, 0);"&gt;Tax Extender N=3D</span><br><span>egotiations &amp;nb=
sp;(Dec. 6)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=
"background-=3D</span><br><span>color: rgba(255, 255, 255, 0);"&gt;Brown on H=
FT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div=3D</span><br><blockquo=
te type=3D"cite"><span>&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;Shelby 2.0 Update=3D</span><br></blockquote><span> &amp;nbsp;(De=
c. 3)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&g=
t;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;=3D</span><br><span>spa=
n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/sp=
an&gt;&lt;/div&gt;&lt;d=3D</span><br><span>iv&gt;&lt;/div&gt;&lt;/div&gt;&lt=
;div&gt;&lt;/div&gt;&lt;/div&gt;&lt;p style=3D3D"box-sizing: border-box; mar=
gin: 0=3D</span><br><span>px;"&gt;&lt;br&gt;&lt;/p&gt;&lt;p style=3D3D"box-s=
izing: border-box; margin: 0px;"&gt;Mike &amp;amp; Co=3D</span><br><span>.&a=
mp;nbsp;&lt;/p&gt;&lt;div&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D=
3D"background-color: rgba=3D</span><br><span>(255, 255, 255, 0);"&gt;This ha=
s been a busy week in Washington especially on t=3D</span><br><span>he tax f=
ront, with more to follow. &amp;nbsp;We've already seen a number of hear=3D<=
/span><br><span>ings and developments on the most salient current tax bills a=
nd related prop=3D</span><br><span>osals in the last two days, which are &am=
p;nbsp;itemized and vetted for viabilit=3D</span><br><span>y below.&lt;/span=
&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"background-=
color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;Tomorrow, an assessme=
nt of which of these, as well a=3D</span><br><span>s "must-pass" tax items s=
uch as the expiring extenders, will make it to Obam=3D</span><br><span>a's d=
esk by year-end and a review of&lt;/span&gt;&lt;span style=3D3D"background-c=
olor: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt=
;&lt;span style=3D3D"background-color: rgba(2=3D</span><br><span>55, 255, 25=
5, 0);"&gt;Brookings' panel discussion,&amp;nbsp;&lt;/span&gt;&lt;span style=
=3D3D"b=3D</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;"Tax=
policy in 2016: What's new an=3D</span><br><span>d what's next," with&lt;/s=
pan&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=3D</span><br><=
span>55, 0);"&gt;&amp;nbsp;Ways and Means Chair Kevin Brady&amp;nbsp;&lt;/sp=
an&gt;&lt;span style=3D3D"b=3D</span><br><span>ackground-color: rgba(255, 25=
5, 255, 0);"&gt;and Senate Finance ranking member R=3D</span><br><span>on Wy=
den.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;div&gt;Best,&lt;/div&gt;&lt;div&gt;=
&lt;br&gt;&lt;/div&gt;&lt;div&gt;Dana&lt;/div&gt;&lt;div=3D</span><br><block=
quote type=3D"cite"><span>&lt;br&gt;&lt;/div&gt;&lt;div&gt;_________________=
_____________________&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;=3D</s=
pan><br></blockquote><span>p class=3D3D"s2" style=3D3D"margin-top: 0px; marg=
in-bottom: 0px;"&gt;&lt;span class=3D3D=3D</span><br><span>"s4" style=3D3D"b=
ackground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;=3DE2=3D80=3DA2&amp;n=
bs=3D</span><br><span>p;&lt;/span&gt;&lt;span class=3D3D"s5" style=3D3D"back=
ground-color: rgba(255, 255, 255, 0=3D</span><br><span>); font-weight: bold;=
"&gt;&lt;span class=3D3D"bumpedFont20"&gt;&lt;u&gt;International Tax Ref=3D<=
/span><br><span>orm&lt;/u&gt;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D3D"s=
6" style=3D3D"background-color: rgba(255,=3D</span><br><span> 255, 255, 0);"=
&gt;&lt;span class=3D3D"bumpedFont20"&gt;&amp;nbsp;--&lt;/span&gt;&lt;/span&=
gt;&lt;/p&gt;&lt;p cl=3D</span><br><span>ass=3D3D"s2" style=3D3D"margin-top:=
0px; margin-bottom: 0px;"&gt;&lt;span class=3D3D"s6"=3D</span><br><span> st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D3D"b=
umpedFo=3D</span><br><span>nt20"&gt;&lt;br&gt;&lt;/span&gt;&lt;/span&gt;&lt;=
/p&gt;&lt;p class=3D3D"s2" style=3D3D"margin-top: 0px; margin=3D</span><br><=
span>-bottom: 0px;"&gt;&lt;span class=3D3D"s6" style=3D3D"background-color: r=
gba(255, 255, 2=3D</span><br><span>55, 0);"&gt;&lt;span class=3D3D"bumpedFon=
t20"&gt;Probably the most likely tax legislati=3D</span><br><span>on to pass=
in 2016, even though it's still called unlikely by key policymake=3D</span>=
<br><span>rs. &amp;nbsp;The two parties will have difficulty coming to an ag=
reement on fir=3D</span><br><span>st what to do and then how to do it.&amp;n=
bsp; Narrower legislation is more like=3D</span><br><span>ly to succeed than=
comprehensive reform. &amp;nbsp;Most viable bills in this are=3D</span><br>=
<span>a:&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"s2" style=3D3D"=
margin-top: 0px; margin-bottom:=3D</span><br><span> 0px;"&gt;&lt;span class=3D=
3D"s6"&gt;&lt;span class=3D3D"bumpedFont20" style=3D3D"background-c=3D</span=
> <br><span>olor: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/spa=
n&gt;&lt;/p&gt;&lt;p class=3D3D"s8" style=3D3D=3D</span><br><span>"margin-to=
p: 0px; margin-bottom: 0px; margin-left: 36px;"&gt;&lt;span style=3D3D"bac=3D=
</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D=
3D"s5" style=3D3D"font-wei=3D</span><br><span>ght: bold;"&gt;&lt;span class=3D=
3D"bumpedFont20"&gt;=3DE2=3D80=3DA2 &amp;nbsp;Earnings Stripping -=3D</span>=
<br><span>- &amp;nbsp;&lt;/span&gt;&lt;/span&gt;On the eve of today=3DE2=3D8=
0=3D99s Ways and Means hearing r=3D</span><br><span>egarding international t=
ax reform, &amp;nbsp;ranking member&amp;nbsp;&lt;/span&gt;&lt;span cl=3D</sp=
an><br><span>ass=3D3D"s6" style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;&lt;span class=3D3D=3D</span><br><span>"bumpedFont20"&gt;Chris Van&am=
p;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D3D"s6" style=3D3D"back=3D<=
/span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D3=
D"bumpedFont20"&gt;Hollen&lt;/=3D</span><br><span>span&gt;&lt;/span&gt;&lt;s=
pan class=3D3D"s6" style=3D3D"background-color: rgba(255, 255, 255=3D</span>=
<br><span>, 0);"&gt;&lt;span class=3D3D"bumpedFont20"&gt;&amp;nbsp;and senio=
r member Sander Levin off=3D</span><br><span>ered bills to constrain the pra=
ctice whereby foreign parent companies extend=3D</span><br><span> large loan=
s to their newly acquired U.S. partners and take advantage of the=3D</span><=
br><span> tax-deductible status of interest payment arrangement. &amp;nbsp;&=
lt;/span&gt;&lt;/span&gt;=3D</span><br><span>&lt;/p&gt;&lt;p class=3D3D"s8" s=
tyle=3D3D"margin-top: 0px; margin-bottom: 0px; margin-lef=3D</span><br><span=
> t: 36px;"&gt;&lt;span class=3D3D"s6"&gt;&lt;span class=3D3D"bumpedFont20" s=
tyle=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;=
&lt;br&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"s8" styl=3D</=
span><br><span>e=3D3D"margin-top: 0px; margin-bottom: 0px; margin-left: 36px=
;"&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: rgba(255, 25=
5, 255, 0);"&gt;&lt;span class=3D3D"s5" style=3D3D"font=3D</span><br><span>-=
weight: bold;"&gt;&lt;span class=3D3D"bumpedFont20"&gt;=3DE2=3D80=3DA2. Exit=
Tax Bills -- &amp;n=3D</span><br><span>bsp;&lt;/span&gt;&lt;/span&gt;&lt;sp=
an class=3D3D"s6"&gt;&lt;span class=3D3D"bumpedFont20"&gt;Bills seek=3D</spa=
n><br><span>ing to reduce corporate inversions by making them too expensive t=
o make busi=3D</span><br><span>ness sense are likely to be introduced before=
next recess.&amp;nbsp;&lt;/span&gt;&lt;/spa=3D</span><br><span>n&gt;&lt;/sp=
an&gt;&lt;/p&gt;&lt;p class=3D3D"s8" style=3D3D"margin-top: 0px; margin-bott=
om: 0px; m=3D</span><br><span>argin-left: 36px;"&gt;&lt;span class=3D3D"s5" s=
tyle=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0); font=
-weight: bold;"&gt;&lt;span class=3D3D"bumpedFont20"&gt;&lt;br&gt;&lt;/span&=
gt;&lt;/s=3D</span><br><span>pan&gt;&lt;/p&gt;&lt;p class=3D3D"s8" style=3D3=
D"margin-top: 0px; margin-bottom: 0px; margin=3D</span><br><span>-left: 36px=
;"&gt;&lt;span class=3D3D"s5" style=3D3D"background-color: rgba(255, 255, 2=3D=
</span><br><span>55, 0);"&gt;&lt;span class=3D3D"bumpedFont20"&gt;&lt;b&gt;=3D=
E2=3D80=3DA2 &amp;nbsp;Repatriation -- &amp;nb=3D</span><br><span>sp;&lt;/b&=
gt;Ryan and Schumer&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D3D"s=
6" style=3D3D"backg=3D</span><br><span>round-color: rgba(255, 255, 255, 0);"=
&gt;&lt;span class=3D3D"bumpedFont20"&gt;have talk=3D</span><br><span>ed up t=
he idea of introducing legislation to repatriate U.S. multinational p=3D</sp=
an><br><span>rofits that are held abroad.&amp;nbsp; A compromise will have t=
o be struck betwe=3D</span><br><span>en Democrats seeking reduced tax levels=
for this purpose and Republicans who=3D</span><br><span> cite moral hazard.=
&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D3D"s5" style=3D3D"back=
grou=3D</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=
=3D3D"bumpedFont20"&gt;The Obama&lt;b&gt;=3D</span><br><span>&amp;nbsp;&lt;/=
b&gt;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D3D"s6" style=3D3D"background=
-color: rgba(2=3D</span><br><span>55, 255, 255, 0);"&gt;&lt;span class=3D3D"=
bumpedFont20"&gt;budget for FY2017 includes a=3D</span><br><span> proposal t=
o allow overseas profits to come home at a special 14 percent tra=3D</span><=
br><span>te, and all overseas profits thereafter be taxed at 19 percent.&amp=
;nbsp;&lt;/span&gt;=3D</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=
3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;s=3D</span><b=
r><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nb=
sp;&lt;/span&gt;&lt;/p&gt;&lt;p c=3D</span><br><span>lass=3D3D"s2" style=3D3=
D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D3D"s9=3D</span><=
br><span>" style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span=
class=3D3D"bumpedFo=3D</span><br><span>nt20"&gt;&lt;b&gt;=3DE2=3D80=3DA2 &a=
mp;nbsp;&lt;u&gt;Broader&lt;/u&gt;&lt;/b&gt;&lt;u&gt;&amp;nbsp;&lt;/u&gt;&lt=
;b style=3D3D"text-dec=3D</span><br><span>oration: underline;"&gt;Corporate T=
ax Reform&lt;/b&gt;&lt;b&gt;&amp;nbsp; -- &amp;nbsp;&amp;nbsp;&lt;/b&gt;&lt;=
/=3D</span><br><span>span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"s2" sty=
le=3D3D"margin-top: 0px; margin-bottom: 0px=3D</span><br><span>;"&gt;&lt;spa=
n class=3D3D"s10" style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&=
lt;=3D</span><br><span>span class=3D3D"bumpedFont20"&gt;&lt;br&gt;&lt;/span&=
gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"s2" style=3D3D"m=3D</span><br><sp=
an>argin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D3D"s10" style=3D=
3D"background=3D</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;&lt;spa=
n class=3D3D"bumpedFont20"&gt;Any successful=3D</span><br><span> across the b=
oard corporate tax reform would almost have to lower the nomina=3D</span><br=
> <span>l corporate tax rate of 35 percent. &amp;nbsp;-- the highest in the w=
orld. &amp;nbsp=3D</span><br><span>;Republicans are adamant that the high ra=
te yields corporate inversions.&lt;/sp=3D</span><br><span>an&gt;&lt;/span&gt=
;&lt;span class=3D3D"s10" style=3D3D"background-color: rgba(255, 255, 255,=3D=
</span><br><span> 0);"&gt;&lt;span class=3D3D"bumpedFont20"&gt;&amp;nbsp;&am=
p;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D3D"=3D</span><br><span>s10=
" style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D=
3D"bump=3D</span><br><span>edFont20"&gt;Ways and Means chair Brady&lt;/span&=
gt;&lt;/span&gt;&lt;span class=3D3D"s9" style=3D3D=3D</span><br><span>"backg=
round-color: rgba(255, 255, 255, 0); font-weight: bold;"&gt;&lt;span class=3D=
3D=3D</span><br><span>"bumpedFont20"&gt;&amp;nbsp;&lt;/span&gt;&lt;/span&gt;=
&lt;span class=3D3D"s10" style=3D3D"background-c=3D</span><br><span>olor: rg=
ba(255, 255, 255, 0);"&gt;&lt;span class=3D3D"bumpedFont20"&gt;has pointed t=
o t=3D</span><br><span>he corporate rate repeatedly as a sign that the U.S. h=
as a =3DE2=3D80=3D9Cbroken t=3D</span><br><span>ax code that discourages inv=
estment and growth&lt;/span&gt;&lt;/span&gt;&lt;span class=3D3D"s=3D</span><=
br><span>11" style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;sp=
an class=3D3D"bumpe=3D</span><br><span>dFont20"&gt;.=3DE2=3D80=3D9D&lt;/span=
&gt;&lt;/span&gt;&lt;span class=3D3D"s11" style=3D3D"background-col=3D</span=
> <br><span>or: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D3D"bumpedFont20"=
&gt;&amp;nbsp;&lt;/span&gt;&lt;/spa=3D</span><br><span>n&gt;&lt;/p&gt;&lt;p c=
lass=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span s=
=3D</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=
&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span><br><span>"s2" st=
yle=3D3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span style=3D3D"backgr=
oun=3D</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Brady has not ye=
t released his own reform b=3D</span><br><span>ill, but an op-ed of his publ=
ished this morning gives an indication of what i=3D</span><br><span>t will i=
nclude: &amp;nbsp;=3DE2=3D80=3D9C&lt;/span&gt;&lt;span style=3D3D"background=
-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;We must address the r=
eal root of the problem =3DE2=3D80=3D93 o=3D</span><br><span>ur broken tax c=
ode that discourages investment and growth =3DE2=3D80=3DA6 Our&amp;nbsp=3D</=
span><br><span>;sky-high 35 percent corporate tax rate bears much of the bla=
me =3DE2=3D80=3DA6 We=3D</span><br><span> cannot allow American taxpayers to=
foot the bill for tax revenue grabs in E=3D</span><br><span>urope and elsew=
here.=3DE2=3D80=3D9D&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"s2" style=3D3D"m=
argin-top:=3D</span><br><span> 0px; margin-bottom: 0px;"&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;&lt;br&=
gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"s2" style=3D3D"margin-top: 0px; m=
argin-bot=3D</span><br><span>tom: 0px;"&gt;&lt;span style=3D3D"background-co=
lor: rgba(255, 255, 255, 0);"&gt;Provisi=3D</span><br><span>ons to look for:=
a lower overall corporate tax rate, language to address Eur=3D</span><br><s=
pan>opean investigations on U.S. businesses dodging taxes abroad.&amp;nbsp; T=
he bill=3D</span><br><span> likely won=3DE2=3D80=3D99t include language rest=
ricting inversions. &amp;nbsp;&lt;/span&gt;=3D</span><br><span>&lt;/p&gt;&lt=
;div dir=3D3D"ltr"&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0i=
n;"&gt;&lt;spa=3D</span><br><span>n style=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;&lt;span class=3D3D"s10"&gt;&lt;s=3D</span><br><span>pan cl=
ass=3D3D"bumpedFont20"&gt;Senate Finance chair Hatch&lt;/span&gt;&lt;/span&g=
t;&lt;span cla=3D</span><br><span>ss=3D3D"s9" style=3D3D"font-weight: bold;"=
&gt;&lt;span class=3D3D"bumpedFont20"&gt;&amp;nbsp;&lt;/=3D</span><br><span>=
span&gt;&lt;/span&gt;&lt;span class=3D3D"s10"&gt;&lt;span class=3D3D"bumpedFo=
nt20"&gt;has suggested w=3D</span><br><span>riting legislation to make divid=
ends tax deductible for corporations, elimin=3D</span><br><span>ating the so=
-called =3DE2=3D80=3D9Cdouble taxation=3DE2=3D80=3D9D of hitting corporate e=
=3D</span><br><span>arnings as well as dividend incomes from investors. &amp=
;nbsp;The proposal faces=3D</span><br><span> long odds.&amp;nbsp;&lt;/span&g=
t;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;p class=3D3D"s2" style=
=3D3D"mar=3D</span><br><span>gin-top: 0px; margin-bottom: 0px;"&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255=3D</span><br><span>, 255, 255, 0);"&gt;=
&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"s2" style=3D3D"margin-top:=
0px; m=3D</span><br><span>argin-bottom: 0px;"&gt;&lt;span class=3D3D"s14" s=
tyle=3D3D"background-color: rgba(255,=3D</span><br><span> 255, 255, 0);"&gt;=
&lt;b&gt;=3DE2=3D80=3DA2&amp;nbsp;&lt;/b&gt;&amp;nbsp;&lt;/span&gt;&lt;span c=
lass=3D3D"s14" style=3D</span><br><span>=3D3D"background-color: rgba(255, 25=
5, 255, 0); font-weight: bold;"&gt;&lt;u&gt;Earned-=3D</span><br><span>Incom=
e Tax Credit&lt;/u&gt;&amp;nbsp;(EITC) --&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&l=
t;p class=3D3D"s2" style=3D3D=3D</span><br><span>"margin-top: 0px; margin-bo=
ttom: 0px;"&gt;&lt;span class=3D3D"s15" style=3D3D"backgrou=3D</span><br><sp=
an>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&l=
t;p class=3D3D"s2" style=3D3D"m=3D</span><br><span>argin-top: 0px; margin-bo=
ttom: 0px;"&gt;&lt;span class=3D3D"s15" style=3D3D"background=3D</span><br><=
span>-color: rgba(255, 255, 255, 0);"&gt;One tax provisions in the Obama FY1=
7 budget=3D</span><br><span> that has been muted if not mooted this week is h=
is proposal to expand the E=3D</span><br><span>ITC for childless workers and=
create a $500 =3DE2=3D80=3D9Csecond earner=3DE2=3D80=3D9D t=3D</span><br><s=
pan>ax credit. &amp;nbsp;The cost would be $150 billion over ten years.&amp;=
nbsp;&lt;/span&gt;=3D</span><br><span>&lt;/p&gt;&lt;p class=3D3D"s2" style=3D=
3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span sty=3D</span><br><span>=
le=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt=
;&lt;/p&gt;&lt;p class=3D3D"=3D</span><br><span>s2" style=3D3D"margin-top: 0=
px; margin-bottom: 0px;"&gt;&lt;span style=3D3D"background=3D</span><br><spa=
n>-color: rgba(255, 255, 255, 0);"&gt;During his SOTU, Obama expressed his d=
esire=3D</span><br><span> to work with Speaker Ryan on the issue: &amp;nbsp;=
=3DE2=3D80=3D9CI also know Speaker R=3D</span><br><span>yan has talked about=
his interest in tackling poverty. America is about givi=3D</span><br><span>=
ng everybody willing to work a chance, a hand up. And I=3DE2=3D80=3D99d welc=
ome a s=3D</span><br><span>erious discussion about strategies we can all sup=
port, like expanding tax cu=3D</span><br><span>ts for low-income workers who=
don't have children.=3DE2=3D80=3D9D&lt;/span&gt;&lt;/p&gt;&lt;p cla=3D</spa=
n><br><span>ss=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&gt;=
&lt;span class=3D3D"s19"=3D</span><br><span> style=3D3D"background-color: rg=
ba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D</s=
pan><br><span>=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&gt;=
&lt;span class=3D3D"s19" s=3D</span><br><span>tyle=3D3D"background-color: rg=
ba(255, 255, 255, 0);"&gt;The credit is a long-stan=3D</span><br><span>ding d=
arling of both progressives and the GOP establishment. Ryan and Presid=3D</s=
pan><br><span>ent Obama support extending it to childless workers. &amp;nbsp=
;But they face res=3D</span><br><span>istance from&amp;nbsp;&lt;/span&gt;&lt=
;span class=3D3D"s19" style=3D3D"background-color: rgba=3D</span><br><span>(=
255, 255, 255, 0);"&gt;not just the hard right but from Sen. Hatch, who say i=
t=3D</span><br><span>=3DE2=3D80=3D99s not =3DE2=3D80=3D9Cnecessary=3DE2=3D80=
=3D9D to expand the break.&amp;nbsp;&lt;/span&gt;=3D</span><br><span>&lt;/p&=
gt;&lt;p class=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&gt;=
&lt;span cla=3D</span><br><span>ss=3D3D"s19" style=3D3D"background-color: rg=
ba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/=3D</span><br><span>p&=
gt;&lt;div class=3D3D"MsoNormal" align=3D3D"center" style=3D3D"text-decorati=
on: -webki=3D</span><br><span>t-letterpress; text-align: center;"&gt;&lt;hr s=
ize=3D3D"2" width=3D3D"100%" align=3D3D"c=3D</span><br><span>enter" style=3D=
3D"text-align: start;"&gt;&lt;/div&gt;&lt;p class=3D3D"s2" style=3D3D"margin=
-to=3D</span><br><span>p: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D3D"s=
19" style=3D3D"background-color: r=3D</span><br><span>gba(255, 255, 255, 0);=
"&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rg=
=3D</span><br><span>ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0=3D</span><br><span>980392); text-decoration: -webkit-le=
tterpress;"&gt;Upcoming/Recent Updates&lt;/p&gt;&lt;=3D</span><br><span>div&=
gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rg=
ba(255, 255, 255, 0);"=3D</span><br><blockquote type=3D"cite"><span>=3DE2=3D=
80=3DA2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;/div&gt;&lt;di=
v&gt;=3DE2=3D80=3DA2 &amp;nbs=3D</span><br></blockquote><span>p;Budget (Ir)R=
esolution&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Puerto Rico&lt;/di=
v&gt;&lt;div&gt;=3DE2=3D80=3D</span><br><span>=3DA2 &amp;nbsp;Econ. Revitali=
zation/Housing&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;Top Ta=
x Bill=3D</span><br><span>s Handicapped &amp;nbsp;(Feb. 24)&lt;/div&gt;&lt;d=
iv&gt;Bigger than the Budget Battle &amp;nbsp;=3D</span><br><span>(Feb. 23)&=
lt;/div&gt;&lt;div&gt;&lt;div&gt;Infrastructure Finance Update &amp;nbsp;(Fe=
b. 18)&amp;nbsp;=3D</span><br><span>&lt;/div&gt;&lt;div&gt;Does DFA Fail on T=
oo Big to Fail? (Feb. 17)&lt;/div&gt;&lt;div&gt;Below the R=3D</span><br><sp=
an>adar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/div&gt;&lt;div&gt;Int=
ernational Tax Status &amp;=3D</span><br><span>nbsp;(Feb. 11)&lt;/div&gt;&lt=
;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obam=3D=
</span><br><span>a's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax T=
alk of the Town &amp;nbsp;(Feb. 3)=3D</span><br><span>&lt;br&gt;&lt;div&gt;D=
efending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Defic=
it/Deb=3D</span><br><span>t Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;spa=
n style=3D3D"background-color: rgba(255, 25=3D</span><br><span>5, 255, 0);"&=
gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;=
&lt;div&gt;D=3D</span><br><span>ebate Myths Challenged &amp;nbsp;(Jan. 25)&l=
t;/div&gt;&lt;div&gt;Regulating the Regulators &amp;=3D</span><br><span>nbsp=
;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(J=
an 20)&lt;/div&gt;=3D</span><br><span>&lt;div&gt;&lt;span style=3D3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill=3D</span><br><span>-color: r=
gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"=3D</span=
> <br><blockquote type=3D"cite"><span>HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt=
;/span&gt;&lt;br style=3D3D"color: rgba(0, 0, 0, 0.=3D</span><br></blockquot=
e><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392=
);"&gt;&lt;div=3D</span><br><span> style=3D3D"color: rgba(0, 0, 0, 0.701961)=
; -webkit-composition-fill-color: rg=3D</span><br><span>ba(130, 98, 83, 0.09=
80392);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/di=3D</span>=
<br><span>v&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=
mposition-fill-col=3D</span><br><span>or: rgba(130, 98, 83, 0.0980392);"&gt;=
Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/d=3D</span><br><span>iv&gt;&l=
t;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=
=3D</span><br><span>lor: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D=
3D"background-color: rgba(25=3D</span><br><span>5, 255, 255, 0);"&gt;2016 Ta=
x Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div sty=3D</s=
pan><br><span>le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=
ll-color: rgba(1=3D</span><br><span>30, 98, 83, 0.0980392);"&gt;&lt;span sty=
le=3D3D"background-color: rgba(255, 255, 255=3D</span><br><span>, 0);"&gt;Sa=
nders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div s=
tyle=3D3D"co=3D</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 8=3D</span><br><span>3, 0.0980392);"&gt;&lt;=
span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Sa=3D</span><b=
r><span>nders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;=
&lt;div style=3D3D"color: rgb=3D</span><br><span>a(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83, 0.09=3D</span><br><span>80392);=
"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-=
End R=3D</span><br><span>eview: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&g=
t;&lt;span style=3D3D"background-color: r=3D</span><br><span>gba(255, 255, 2=
55, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D=
3D=3D</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nb=
sp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;sp=3D</span><br><span>an style=3D3D"=
background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (Dec. 1=3D</spa=
n><br><span>5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composi=3D</span><br><span>tion-fill-color: rgba(130, 9=
8, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-co=3D</span><br><span>=
lor: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/s=
pan&gt;&lt;/div&gt;=3D</span><br><span>&lt;div style=3D3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color=3D</span><br><span>: rgba(130, 9=
8, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D<=
/span><br><span>55, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt=
;&lt;/div&gt;&lt;div style=3D3D"colo=3D</span><br><span>r: rgba(0, 0, 0, 0.7=
01961); -webkit-composition-fill-color: rgba(130, 98, 83=3D</span><br><span>=
, 0.0980392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;Cus=3D</span><br><span>toms Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/=
div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.70=3D</span><br><span>1961)=
; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span=
s=3D</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;Tax Extender Negotiations=3D</span><br><span> &amp;nbsp;(Dec. 6)&amp;nbsp;=
&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=3D<=
/span><br><span>1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=
392);"&gt;&lt;span sty=3D</span><br><span>le=3D3D"background-color: rgba(255=
, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)=3D</span><br><span>&lt;/=
span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-compositi=3D</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);=
"&gt;&lt;span style=3D3D"background-colo=3D</span><br><span>r: rgba(255, 255=
, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;=
&lt;di=3D</span><br><span>v style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: r=3D</span><br><span>gba(130, 98, 83, 0.0980392);=
"&gt;&lt;span style=3D3D"background-color: rgba(255, 255=3D</span><br><span>=
, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: r=
gba(0, 0, 0, 0.701961); -=3D</span><br><span>webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D=3D</span><br><span>"bac=
kground-color: rgba(255, 255, 255, 0);"&gt;----&lt;/span&gt;&lt;/div&gt;&lt;=
/div&gt;&lt;/div&gt;&lt;/d=3D</span><br><span>iv&gt;&lt;/div&gt;&lt;/div&gt;=
&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
5=3D</span><br><span>5, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;p cla=
ss=3D3D"MsoNormal"&gt;&lt;span style=3D3D"background-co=3D</span><br><span>l=
or: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composi=3D=
</span><br><span>tion-fill-color: rgba(130, 98, 83, 0.0980392); text-decorat=
ion: -webkit-lett=3D</span><br><span>erpress;"&gt;Mike and Co. --&lt;/span&g=
t;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: r=3D</span><br><sp=
an>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.=3D</span><br><span>0980392); text-decoration: -webkit-letterpress;"&gt;&=
lt;span style=3D3D"background-c=3D</span><br><span>olor: rgba(255, 255, 255,=
0);"&gt;The soap opera that is the federal budget mak=3D</span><br><span>in=
g process saw sone minor&amp;nbsp;prima donna&amp;nbsp;pratfalls this week.&=
amp;nbsp; N=3D</span><br><span>othing remotely on the scale of blocking the c=
onfirmation of a Supreme Justi=3D</span><br><span>ce.&amp;nbsp; But as Senat=
e Budget's ranking member Sen. Cardin warned at a brea=3D</span><br><span>kf=
ast today, you can forget regular order on the budget -- after the Preside=3D=
</span><br><span>nt submits a nomination, all comity in the Senate will be g=
one until Electio=3D</span><br><span>n Day.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=
&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0=3D</span><br><=
span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
text=3D</span><br><span>-decoration: -webkit-letterpress;"&gt;&lt;span styl=
e=3D3D"background-color: rgba(255=3D</span><br><span>, 255, 255, 0);"&gt;Det=
ails and the latest below.&amp;nbsp; Taxes&amp;nbsp;&lt;span class=3D3D=3D</=
span><br><span>"" tabindex=3D3D"0"&gt;&lt;span class=3D3D""&gt;tomorrow (b&l=
t;/span&gt;&lt;/span&gt;e still your hea=3D</span><br><span>rt, right?).&amp=
;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: r=
gba(0, 0=3D</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392)=3D</span><br><span>; text-decoration: -webkit-le=
tterpress;"&gt;&lt;span style=3D3D"background-color: rg=3D</span><br><span>b=
a(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNor=
mal" style=3D3D"color=3D</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-=
composition-fill-color: rgba(130, 98, 83,=3D</span><br><span> 0.0980392); te=
xt-decoration: -webkit-letterpress;"&gt;&lt;span style=3D3D"backgroun=3D</sp=
an><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;span s=
tyle=3D3D"background-color=3D</span><br><span>: rgba(255, 255, 255, 0);"&gt;=
&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;div class=3D3D"MsoNormal" align=3D3D=3D=
</span><br><span>"center" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=
-composition-fill-c=3D</span><br><span>olor: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpress; te=3D</span><br><span>xt-align: center;=
"&gt;&lt;/div&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0=3D=
</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); t=3D</span><br><span>ext-decoration: -webkit-letterpress;"&gt=
;&lt;b&gt;&lt;u style=3D3D"background-color: rgba(=3D</span><br><span>255, 2=
55, 255, 0);"&gt;Story in the Senate&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p clas=
s=3D3D"MsoNormal" st=3D</span><br><span>yle=3D3D"color: rgba(0, 0, 0, 0.7019=
61); -webkit-composition-fill-color: rgba(=3D</span><br><span>130, 98, 83, 0=
.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D3D=3D<=
/span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;At the same D=
SCC &amp;nbsp;breakfast=3D</span><br><span> one month ago, Sen. Merkley anno=
unced that, to his surprise, Senate Budget C=3D</span><br><span>hair Mike En=
zi was going to put out a manager's mark for an FY17 budget reso=3D</span><b=
r><span>lution for Committee markup, for February. &amp;nbsp;Today, Enzi wit=
hdrew his ma=3D</span><br><span>rkup plans, without announcing a reschedule d=
ate.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=3D</span><br><span>ormal" s=
tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=3D</s=
pan><br><span>or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=
terpress;"&gt;&lt;sp=3D</span><br><span>an style=3D3D"background-color: rgba=
(255, 255, 255, 0);"&gt;To add to the growing=3D</span><br><span> problems w=
ithin the GOP, the party, led by Senator Mitch McConnell, has dec=3D</span><=
br><span>lared all-out war on Obama=3DE2=3D80=3D99s impending Supreme Court n=
omination -- a=3D</span><br><span>n&amp;nbsp;"nomination abomination"&amp;nb=
sp;-- making it even more difficult to pre=3D</span><br><span>dict how these=
budget deliberations will end.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=
3D"Ms=3D</span><br><span>oNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-c=3D</span><br><span>olor: rgba(130, 98, 83, 0.098=
0392); text-decoration: -webkit-letterpress;"&gt;&lt;=3D</span><br><span>b&g=
t;&lt;u&gt;Histrionics of the House&amp;nbsp;&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&=
lt;p class=3D3D"MsoNormal" style=3D3D=3D</span><br><span>"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D</span><br><span>=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D=
3D"bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Even be=
fore Obama released his FY201=3D</span><br><span>7 budget proposal earlier t=
his month, House Republicans made it a point to e=3D</span><br><span>mphasiz=
e that it was DOA.&amp;nbsp; Now, GOP is running into some dead ends of i=3D=
</span><br><span>ts own.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"Ms=
oNormal" style=3D3D"color: rgba(0, 0, 0,=3D</span><br><span> 0.701961); -web=
kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=3D</span><br><s=
pan>xt-decoration: -webkit-letterpress;"&gt;&lt;span style=3D3D"background-c=
olor: rgba(2=3D</span><br><span>55, 255, 255, 0);"&gt;Speaker Ryan announced=
early on that he intended to pass t=3D</span><br><span>he budget through re=
gular order this year -- a process that hasn=3DE2=3D80=3D99t b=3D</span><br>=
<span>een successfully completed in a generation.&amp;nbsp; Due to internal d=
icisions a=3D</span><br><span>nd outside pressures, House Republicans have c=
hanged their tune. &amp;nbsp;&lt;/spa=3D</span><br><span>n&gt;&lt;/p&gt;&lt;=
p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webki=3D=
</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392); tex=
t-decoration: -we=3D</span><br><span>bkit-letterpress;"&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0);"=3D</span><br><blockquote type=3D=
"cite"><span>Yesterday, House Budget announced plans for a&amp;nbsp;proposal=
&amp;nbsp;next month=3D</span><br></blockquote><span> to stick with the spen=
ding levels set by&amp;nbsp;last fall=3DE2=3D80=3D99s deal with=3D</span><br=
> <span> the White House while also giving members the chance to vote&amp;nbs=
p;on other b=3D</span><br><span>ills that would slash government spending&lt=
;/span&gt;&lt;span style=3D3D"background-co=3D</span><br><span>lor: rgba(255=
, 255, 255, 0);"&gt;. The compromise is meant to appease hard-righ=3D</span>=
<br><span>t GOP members who vehemently opposed the Obama-Boehner budget agre=
ement.&amp;nbs=3D</span><br><span>p; Per Ryan's office: =3DE2=3D80=3D9CThis p=
roposal enjoys the overwhelming support=3D</span><br><span> of the committee=
members, and the chairman looks forward to sharing it with=3D</span><br><sp=
an> the broader Conference as we continue moving this process forward.=3DE2=3D=
80=3D9D=3D</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal=
" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=3D</span><br><span>webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=3D</span>=
<br><span>: -webkit-letterpress;"&gt;&lt;span style=3D3D"background-color: r=
gba(255, 255, 255,=3D</span><br><span> 0);"&gt;The conservative Freedom Cauc=
us so far has supported Speaker Ryan=3DE2=3D80=3D</span><br><span>=3D99s ove=
rtures for cooperation on the budget. &amp;nbsp;But the GOP's hard-right=3D<=
/span><br><span> wing may not remain so understanding of the Speaker=3DE2=3D=
80=3D99s position, esp=3D</span><br><span>ecially if their credentials are c=
alled into question by outside groups with=3D</span><br><span> sway over the=
ir base of support. &amp;nbsp; Heritage Action said&amp;nbsp;&lt;span cla=3D=
</span><br><span>ss=3D3D"" tabindex=3D3D"0"&gt;&lt;span class=3D3D""&gt;Mond=
ay&lt;/span&gt;&lt;/span&gt;&amp;nbsp;that the g=3D</span><br><span>roup wou=
ld oppose any budget blueprint that sticks to the Obama-Boehner deal=3D</spa=
n><br><span>, which increases spending by about $30 billion.&lt;/span&gt;&lt=
;/p&gt;&lt;p class=3D3D"MsoNo=3D</span><br><span>rmal" style=3D3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-composition-fill-colo=3D</span><br><span>r: rg=
ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;b&=
gt;&lt;=3D</span><br><span>u style=3D3D"background-color: rgba(255, 255, 255=
, 0);"&gt;Going Forward&amp;nbsp;&lt;/u=3D</span><br><blockquote type=3D"cit=
e"><span>&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: r=
gba(0, 0, 0, 0.701961); -we=3D</span><br></blockquote><span>bkit-composition=
-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=3D</span><br><=
span>webkit-letterpress;"&gt;&lt;span style=3D3D"background-color: rgba(255,=
255, 255, 0)=3D</span><br><span>;"&gt;It won't be an easy road ahead on the=
budget. &amp;nbsp; The conservative cau=3D</span><br><span>cus has several d=
ozen members, which gives it the power to torpedo any budge=3D</span><br><sp=
an>t proposal that lacks at least some Democratic support.&amp;nbsp; If it d=
ecides t=3D</span><br><span>o back the new proposal put forth by Chair Tom P=
rice of House Budget, it wou=3D</span><br><span>ld be likely for GOP leaders=
to be able to move forward.&amp;nbsp; Some members h=3D</span><br><span>ave=
voiced their willingness to cooperate, but the pull of outside right-win=3D=
</span><br><span>g groups may prove to be too strong.&lt;/span&gt;&lt;/p&gt;=
&lt;p class=3D3D"MsoNormal" style=3D3D=3D</span><br><span>"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D</span><br><spa=
n>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span styl=
e=3D3D"bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Mea=
nwhile, Minority Whip&amp;nbsp;Steny H=3D</span><br><span>oyer said&amp;nbsp=
;today that any Republican budget strategy that strays from th=3D</span><br>=
<span>e Obama-Boehner deal would be opposed by House Democrats.&amp;nbsp;&lt=
;/span&gt;&lt;/p&gt;&lt;p=3D</span><br><span> class=3D3D"MsoNormal" style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=3D</span><br><span>ition-f=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=3D</sp=
an><br><span>terpress;"&gt;&lt;span style=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;The Hou=3D</span><br><span>se Budget plan is to submit the p=
roposal honoring the spending limits agreed=3D</span><br><span> to last year=
, while allowing the hard-right GOP wing to vote on other bills=3D</span><br=
> <span> which would slash spending,&amp;nbsp;mollifying the more hawkish&amp=
;nbsp;members.&amp;=3D</span><br><span>nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt=
;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0=3D</span><br>=
<span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text=3D</span><br><span>-decoration: -webkit-letterpress;"&gt;&lt;b&gt;&lt=
;u style=3D3D"background-color: rgba(255=3D</span><br><span>, 255, 255, 0);"=
&gt;Dearth of Legislative Days&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal=3D</span><br><span>" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: r=3D</span><br><span>gba(130, 98, 83, 0.09803=
92); text-decoration: -webkit-letterpress;"&gt;&lt;span st=3D</span><br><spa=
n>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Lengthening the odd=
s again=3D</span><br><span>st Ryan, the House Budget is now working on a del=
ayed schedule.&amp;nbsp; In mid=3D</span><br><span>-January, the House Budge=
t Committee announced that it would be releasing it=3D</span><br><span>s mar=
kup of the White House budget proposal early -=3DE2=3D80=3D93&amp;nbsp;&lt;a=
&gt;&lt;/a&gt;&lt;a h=3D</span><br><span>ref=3D3D"x-apple-data-detectors://2=
" x-apple-data-detectors=3D3D"true" x-apple-d=3D</span><br><span>ata-detecto=
rs-type=3D3D"calendar-event" x-apple-data-detectors-result=3D3D"2"&gt;on=3D<=
/span><br><span>&amp;nbsp;&lt;/a&gt;&lt;span class=3D3D""&gt;&lt;span class=3D=
3D""&gt;&lt;a href=3D3D"x-apple-data-detector=3D</span><br><span>s://2" x-ap=
ple-data-detectors=3D3D"true" x-apple-data-detectors-type=3D3D"calend=3D</sp=
an><br><span>ar-event" x-apple-data-detectors-result=3D3D"2"&gt;February 25&=
lt;/a&gt;&lt;/span&gt;&lt;/span&gt;&lt;=3D</span><br><span>a href=3D3D"x-app=
le-data-detectors://2" x-apple-data-detectors=3D3D"true" x-appl=3D</span><br=
> <span>e-data-detectors-type=3D3D"calendar-event" x-apple-data-detectors-res=
ult=3D3D"2"=3D</span><br><blockquote type=3D"cite"><span>.&lt;/a&gt;&amp;nbs=
p;However, that has also changed&lt;b&gt;&lt;i&gt;.&amp;nbsp;&lt;/i&gt;&lt;/=
b&gt;Yesterday&lt;b&gt;&lt;=3D</span><br></blockquote><span>i&gt;,&amp;nbsp;=
&lt;/i&gt;&lt;/b&gt;The Committee announced that it was now delaying its mar=
kup=3D</span><br><span> till sometime in March.&amp;nbsp; The change is curi=
ous for a few reasons.&amp;nbsp=3D</span><br><span>; It raises the question o=
f why the House Budget Committee said it would hav=3D</span><br><span>e the m=
arkup done so early in the first place. Moreover, it goes against the=3D</sp=
an><br><span> House Republicans message of =3DE2=3D80=3D9Cgetting things don=
e=3DE2=3D80=3D9D during t=3D</span><br><span>his Congress.&amp;nbsp;&lt;/spa=
n&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0,=3D</spa=
n><br><span> 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.098039=3D</span><br><span>2); text-decoration: -webkit-letterpress;"&gt=
;&lt;span style=3D3D"background-color: r=3D</span><br><span>gba(255, 255, 25=
5, 0);"&gt;Democrats are jumping on this delay already.&amp;nbsp; N=3D</span=
> <br><span>ancy Pelosi said: =3DE2=3D80=3D9CYet again, it=3DE2=3D80=3D99s th=
e Speaker=3DE2=3D80=3D99s own=3D</span><br><span> broken promises =3DE2=3D80=
=3D93 and his own rhetoric =3DE2=3D80=3D93 that are coming ba=3D</span><br><=
span>ck to bite him.&amp;nbsp; Because while the Speaker pledged an end to d=
ysfunctio=3D</span><br><span>nal House-Republican leadership, all the Americ=
an people are seeing is more o=3D</span><br><span>f the same.=3DE2=3D80=3D9D=
&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"col=
or:=3D</span><br><span> rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=
lor: rgba(130, 98, 83, 0=3D</span><br><span>.0980392); text-decoration: -web=
kit-letterpress;"&gt;&lt;span style=3D3D"background-=3D</span><br><span>colo=
r: rgba(255, 255, 255, 0);"&gt;One thing is looks increasingly likely: that=3D=
</span><br><span> the nomination will exert a tidal force on at least the bu=
dget deliberation=3D</span><br><span>s and everything else, through the elec=
tion. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"Ms=3D</span><br><spa=
n>oNormal"&gt;&lt;br&gt;&lt;/p&gt;&lt;div&gt;&lt;span id=3D3D"docs-internal-=
guid-4733a1b7-ec8c-3344-1176=3D</span><br><span>-d4eb9086feb6"&gt;&lt;hr sty=
le=3D3D"box-sizing: content-box; border-style: solid; bo=3D</span><br><span>=
rder-color: gray; height: 0px;"&gt;&lt;/span&gt;&lt;/div&gt;&lt;p class=3D3D=
"MsoNormal"&gt;&lt;br&gt;&lt;/p&gt;=3D</span><br><span>&lt;p class=3D3D"MsoN=
ormal"&gt;Upcoming/Recent Updates&lt;/p&gt;&lt;div&gt;&lt;span style=3D3D"ba=
ckgr=3D</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3D=
A2 &amp;nbsp;Tax Talk&lt;/span&gt;&lt;/div&gt;&lt;d=3D</span><br><span>iv&gt=
;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D8=
0=3DA2 &amp;nbsp=3D</span><br><span>;Derivatives Agreement w. EU&lt;/span&gt=
;&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Puerto Rico&lt;/d=3D</span=
> <br><span>iv&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Econ. Revitalization/H=
ousing&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;div&gt;Infr=3D</span><br><span>as=
tructure Finance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/div&gt;&lt;div&gt;=
Does DFA Fail on T=3D</span><br><span>oo Big to Fail? (Feb. 17)&lt;/div&gt;&=
lt;div&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb.=3D</span><br><span> 1=
6)&amp;nbsp;&lt;/div&gt;&lt;div&gt;International Tax Status &amp;nbsp;(Feb. 1=
1)&lt;/div&gt;&lt;div&gt;The =3D</span><br><span>Fed Holds Steady &amp;nbsp;=
(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9=3D</sp=
an><br><span>)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&l=
t;br&gt;&lt;div&gt;Defending Dodd-Frank=3D</span><br><span> &amp;nbsp;(Feb. 2=
)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/div&gt=
;&lt;di=3D</span><br><span>v&gt;&lt;span style=3D3D"background-color: rgba(2=
55, 255, 255, 0);"&gt;The Fed Holds Ra=3D</span><br><span>tes, for Now &amp;=
nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Challenged &a=
mp;nbsp;=3D</span><br><span>(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the R=
egulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sand=3D</span><br><span>=
ers' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span=
style=3D3D"color: rg=3D</span><br><span>ba(0, 0, 0, 0.701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.0=3D</span><br><span>980392); text-d=
ecoration: -webkit-letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan.=3D</spa=
n><br><span> 17)&lt;/span&gt;&lt;br style=3D3D"color: rgba(0, 0, 0, 0.701961=
); -webkit-composition-=3D</span><br><span>fill-color: rgba(130, 98, 83, 0.0=
980392);"&gt;&lt;div style=3D3D"color: rgba(0, 0, 0=3D</span><br><span>, 0.7=
01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;=3D=
</span><br><span>2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;=
&lt;div style=3D3D"color: rgba(0=3D</span><br><span>, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83, 0.09803=3D</span><br><span>92);=
"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div style=3D3=
D"color: rgba(=3D</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fi=
ll-color: rgba(130, 98, 83, 0.0980=3D</span><br><span>392);"&gt;&lt;span sty=
le=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Po=3D</span><=
br><span>licy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div styl=
e=3D3D"color: rgba(0, 0, 0, 0.=3D</span><br><span>701961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;spa=3D</span><br><span>=
n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals=
/GS &amp;=3D</span><br><span>amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;=
div style=3D3D"color: rgba(0, 0, 0, 0.701961);=3D</span><br><span> -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D=
=3D</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Sanders' =
Fin Reg Proposals &amp;nbsp=3D</span><br><span>;(Jan. 5)&lt;/span&gt;&lt;/di=
v&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D</span><b=
r><span>composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span s=
tyle=3D3D"backgr=3D</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;=
Year-End Review: Fiscal Policy (Jan. 1)=3D</span><br><span> &amp;nbsp;&lt;/s=
pan&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Yea=
r=3D</span><br><span>-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255=3D</span><br><span>, 255, 255, 0);"&gt;=
&amp;nbsp;(&lt;a href=3D3D"x-apple-data-detectors://20" x-apple-data=3D</spa=
n><br><span>-detectors=3D3D"true" x-apple-data-detectors-type=3D3D"calendar-=
event" x-apple-d=3D</span><br><span>ata-detectors-result=3D3D"20"&gt;Dec. 29=
&lt;/a&gt;) &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"backgro=3D</span><br>=
<span>und-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (&lt;a href=3D3D=
"x-apple-data-=3D</span><br><span>detectors://21" x-apple-data-detectors=3D3=
D"true" x-apple-data-detectors-type=3D3D=3D</span><br><span>"calendar-event"=
x-apple-data-detectors-result=3D3D"21"&gt;Dec. 15&lt;/a&gt;)&lt;/span&gt;&l=
t;/d=3D</span><br><span>iv&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=
61); -webkit-composition-fill-co=3D</span><br><span>lor: rgba(130, 98, 83, 0=
.0980392);"&gt;&lt;span style=3D3D"background-color: rgba(25=3D</span><br><s=
pan>5, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(&lt;a href=3D3D"x-appl=
e-data-detectors=3D</span><br><span>://22" x-apple-data-detectors=3D3D"true"=
x-apple-data-detectors-type=3D3D"calend=3D</span><br><span>ar-event" x-appl=
e-data-detectors-result=3D3D"22"&gt;Dec. 14&lt;/a&gt;)&lt;/span&gt;&lt;/div&=
gt;&lt;div=3D</span><br><span> style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rg=3D</span><br><span>ba(130, 98, 83, 0.098039=
2);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255,=3D</span><br><s=
pan> 255, 0);"&gt;FY 2016 Omnibus Talks (&lt;a href=3D3D"x-apple-data-detect=
ors://23" x-=3D</span><br><span>apple-data-detectors=3D3D"true" x-apple-data=
-detectors-type=3D3D"calendar-event"=3D</span><br><span> x-apple-data-detect=
ors-result=3D3D"23"&gt;Dec. 10&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div st=
yle=3D3D=3D</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composi=
tion-fill-color: rgba(130, 9=3D</span><br><span>8, 83, 0.0980392);"&gt;&lt;s=
pan style=3D3D"background-color: rgba(255, 255, 255, 0);=3D</span><br><span>=
"&gt;Customs Bill &amp;nbsp;(&lt;a href=3D3D"x-apple-data-detectors://25" x-=
apple-data-d=3D</span><br><span>etectors=3D3D"true" x-apple-data-detectors-t=
ype=3D3D"calendar-event" x-apple-dat=3D</span><br><span>a-detectors-result=3D=
3D"25"&gt;Dec. 8&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color=
: rgba(=3D</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980=3D</span><br><span>392);"&gt;&lt;span style=3D3D=
"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extende=3D</span><br><spa=
n>r Negotiations &amp;nbsp;(&lt;a href=3D3D"x-apple-data-detectors://26" x-a=
pple-data-d=3D</span><br><span>etectors=3D3D"true" x-apple-data-detectors-ty=
pe=3D3D"calendar-event" x-apple-dat=3D</span><br><span>a-detectors-result=3D=
3D"26"&gt;Dec. 6&lt;/a&gt;)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=
3D"color:=3D</span><br><span> rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 98, 83, 0=3D</span><br><span>.0980392);"&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Brown o=3D</span><br>=
<span>n HFT &amp;nbsp;(&lt;a href=3D3D"x-apple-data-detectors://27" x-apple-=
data-detectors=3D3D=3D</span><br><span>"true" x-apple-data-detectors-type=3D=
3D"calendar-event" x-apple-data-detectors=3D</span><br><span>-result=3D3D"27=
"&gt;Dec. 4&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgb=
a(0, 0, 0, 0.=3D</span><br><span>701961); -webkit-composition-fill-color: rg=
ba(130, 98, 83, 0.0980392);"&gt;&lt;spa=3D</span><br><span>n style=3D3D"back=
ground-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbs=3D</spa=
n><br><span>p;(&lt;a href=3D3D"x-apple-data-detectors://29" x-apple-data-det=
ectors=3D3D"true" x=3D</span><br><span>-apple-data-detectors-type=3D3D"calen=
dar-event" x-apple-data-detectors-result=3D3D=3D</span><br><span>"29"&gt;Dec=
. 3&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0=
, 0.701961); -=3D</span><br><span>webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"&gt;&lt;br&gt;&lt;/div&gt;&lt;div=3D</span><br><blockquot=
e type=3D"cite"><span>&lt;div&gt;&lt;span id=3D3D"docs-internal-guid-4733a1b=
7-ec8c-3344-1176-d4eb9086feb6"&gt;&lt;=3D</span><br></blockquote><span>hr st=
yle=3D3D"box-sizing: content-box; border-style: solid; border-color: gray=3D=
</span><br><span>; height: 0px;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;/=
div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;p cla=
s=3D</span><br><span>s=3D3D"MsoNormal"&gt;&lt;span style=3D3D"background-col=
or: rgba(255, 255, 255, 0);"&gt;Mi=3D</span><br><span>ke &amp;amp; Co. --&lt=
;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"backg=
round-c=3D</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;One week ago, t=
he House passed a bill that co=3D</span><br><span>uld alter and perhaps ease=
the way state and local infrastructure is finance=3D</span><br><span>d in t=
he capital markets, when HR.2209, a bill to&amp;nbsp;"require the appropri=3D=
</span><br><span>ate Federal banking agencies to treat certain municipal obl=
igations as level=3D</span><br><span> 2A liquid assets, and for other purpos=
es"&amp;nbsp;was adopted by the House wit=3D</span><br><span>h a voice vote.=
&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span st=
yle=3D3D"backg=3D</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;T=
hought the bill has flown below the m=3D</span><br><span>edia radar, it is s=
ignificant. &amp;nbsp;Municipal obligations, including bonds,=3D</span><br><=
span> are at the heart of infrastructure investment in America.&amp;nbsp; An=
d infrast=3D</span><br><span>ructure investment has been a large focus of th=
is primary.&amp;nbsp; Both Democr=3D</span><br><span>atic candidates have pr=
oposed multi-hundred billion dollar infrastructure in=3D</span><br><span>ves=
tment proposals.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;sp=
an style=3D3D"backgrou=3D</span><br><span>nd-color: rgba(255, 255, 255, 0);"=
&gt;Details below...&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"Ms=3D</span><br>=
<span>oNormal"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;Best,&lt;/sp=3D</span><br><span>an&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=
ormal"&gt;Dana&lt;/p&gt;&lt;div&gt;&lt;span id=3D3D"docs-internal-guid-47=3D=
</span><br><span>33a1b7-ec8c-3344-1176-d4eb9086feb6" style=3D3D"background-c=
olor: rgba(255, 255=3D</span><br><span>, 255, 0);"&gt;&lt;hr style=3D3D"box-=
sizing: content-box; border-style: solid; borde=3D</span><br><span>r-color: g=
ray; height: 0px;"&gt;&lt;/span&gt;&lt;/div&gt;&lt;p class=3D3D"MsoNormal" s=
tyle=3D3D"ma=3D</span><br><span>rgin: 12pt 0in;"&gt;&lt;span style=3D3D"back=
ground-color: rgba(255, 255, 255, 0);"&gt;I=3D</span><br><span>nfrastructure=
is mostly funded at the state or local level through the use o=3D</span><br=
> <span>f municipal bonds. &amp;nbsp;Between 2003 and 2012, counties, states,=
and other l=3D</span><br><span>ocalities invested $3.2 trillion in infrastr=
ucture through long-term tax-exe=3D</span><br><span>mpt municipal bonds, 2.5=
times more than the federal investment. &amp;nbsp;&lt;/spa=3D</span><br><sp=
an>n&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;b&gt;&lt;u&gt;The Bill&=
lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal=3D</span><br><span>"=
&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;HR 220=
9 requires=3D</span><br><span> federal banking regulators to include municip=
al bonds under the Liquidity C=3D</span><br><span>overage Ratio (LCR). &amp;=
nbsp;The LCR is designed to ensure that financial inst=3D</span><br><span>it=
utions have the necessary assets available to handle a liquidity disruptio=3D=
</span><br><span>n. &amp;nbsp;Local officials have said that if the new rule=
s aren=3DE2=3D80=3D99t chan=3D</span><br><span>ged, it will saddle them with=
higher borrowing costs by eliminating incentiv=3D</span><br><span>es banks h=
ave to purchase their bonds. Without bonds, these governments will=3D</span>=
<br><span> lose a significant source of their funding. &amp;nbsp;Per Indiana=
State Treasur=3D</span><br><span>er Kelly Mitchell: =3DE2=3D80=3D9CThis bil=
l helps ensure cash-strapped school dist=3D</span><br><span>ricts and munici=
palities will continue to have access to bonds to finance pr=3D</span><br><s=
pan>ojects they think are best for their communities.=3DE2=3D80=3D9D&amp;nbs=
p;&lt;/span&gt;&lt;/p&gt;&lt;=3D</span><br><span>p class=3D3D"MsoNormal"&gt;=
&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br><sp=
an>);"&gt;Rep. Luke Messer, an Indiana Republican who wrote the bill: &amp;n=
bsp;=3DE2=3D80=3D</span><br><span>=3D9CPut simply, our bill requires the fed=
eral government to recognize the obv=3D</span><br><span>ious, that our munic=
ipal bonds are some of the safest investments in the wor=3D</span><br><span>=
ld and that we shouldn=3DE2=3D80=3D99t have rules that give preferential tre=
atment=3D</span><br><span> to corporate bonds or other countries=3DE2=3D80=3D=
99 bonds over our own.=3DE2=3D80=3D9D=3D</span><br><span>&amp;nbsp;&lt;/span=
&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"background-=
color: rgb=3D</span><br><span>a(255, 255, 255, 0);"&gt;After passing the Hou=
se with unanimous bipartisan supp=3D</span><br><span>ort, a companion bill i=
s expected to be introduced in the Senate this year. &amp;=3D</span><br><spa=
n>nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;b&gt;&lt;u s=
tyle=3D3D"background-color: rgba=3D</span><br><span>(255, 255, 255, 0);"&gt;=
Municipal Bond Issue&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal=
"&gt;=3D</span><br><span>&lt;span style=3D3D"background-color: rgba(255, 255=
, 255, 0);"&gt;After the crisis o=3D</span><br><span>f 2008, federal regulat=
ors adopted international banking standards that requ=3D</span><br><span>ire=
banks to have enough "High-Quality Liquid Assets" to cover their cash ou=3D=
</span><br><span>tflows for 30 days in case of a future financial meltdown. &=
amp;nbsp;Now, munici=3D</span><br><span>pal bonds are not considered liquid a=
ssets and therefore cannot be included u=3D</span><br><span>nder the &amp;nb=
sp;LCR. &amp;nbsp; As a result, financial institutions have been dis=3D</spa=
n><br><span>couraged from holding municipal debt, which means that cash stra=
pped municip=3D</span><br><span>alities and school districts may eventually b=
e forced to reduce or even stop=3D</span><br><span> work on projects &amp;nb=
sp;financed with municipal bonds.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cl=3D=
</span><br><span>ass=3D3D"MsoNormal"&gt;&lt;u&gt;&lt;b&gt;&lt;span style=3D3=
D"background-color: rgba(255, 255, 255,=3D</span><br><span> 0);"&gt;Infrastr=
ucture Financing --&amp;nbsp;&lt;/span&gt;&lt;/b&gt;&lt;b style=3D3D"backgro=
und-col=3D</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Alternative Finan=
cing&lt;/b&gt;&lt;/u&gt;&lt;/p&gt;&lt;p class=3D3D"Ms=3D</span><br><span>oNo=
rmal"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&=
lt;b&gt;=3DE2=3D80=3D</span><br><span>=3DA2 &amp;nbsp;&amp;nbsp;&lt;/b&gt;&l=
t;/span&gt;&lt;i style=3D3D"background-color: rgba(255, 255, 255,=3D</span><=
br><span> 0);"&gt;Tax-exempt bonds: &amp;nbsp;&lt;/i&gt;&lt;span style=3D3D"=
background-color: rgba(255,=3D</span><br><span> 255, 255, 0);"&gt;Exemption f=
rom federal taxes and many state and local taxes i=3D</span><br><span>s poss=
ible through the use of municipal bonds. &amp;nbsp; In recent years, with t=3D=
</span><br><span>he increasing use of PPPs, barriers to this tax exemption h=
ave arisen. &amp;nbsp=3D</span><br><span>;Treasury has reviewed relevant tax=
rules and based on their findings and ha=3D</span><br><span>ve put forth a p=
roposal for an expanded and permanent America Fast Forward B=3D</span><br><s=
pan>ond Program as an alternative to tax-exempt bonds. &amp;nbsp;Based on th=
e succes=3D</span><br><span>sful Build America Bond program, =3DE2=3D80=3D9C=
would provide an efficient borrowi=3D</span><br><span>ng subsidy to state an=
d local governments while appealing to a broader inves=3D</span><br><span>to=
r base than traditional tax-exempt bonds [and] would cover a broad range o=3D=
</span><br><span>f projects for which tax-exempt bonds can be used.=3DE2=3D8=
0=3D9D&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=3D</span><br><span>&lt;p class=3D3D"=
MsoNormal"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D=
</span><br><span>);"&gt;&amp;nbsp;=3DE2=3D80=3DA2 &amp;nbsp;&lt;/span&gt;&lt=
;i style=3D3D"background-color: rgba(255, 255=3D</span><br><span>, 255, 0);"=
&gt;Obama=3DE2=3D80=3D99s budget proposal: &amp;nbsp;&lt;/i&gt;&lt;span styl=
e=3D3D"backgr=3D</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Oba=
ma has also put forth a plan to stre=3D</span><br><span>ngthen local and sta=
te government infrastructure projects. His plan relies o=3D</span><br><span>=
n a new Federal credit program to support public-private partnerships within=
=3D</span><br><span> the Department of the Treasury. It will provide direct l=
oans to US infrastr=3D</span><br><span>ucture projects developed through PPP=
s. The Obama Administration believes th=3D</span><br><span>at private invest=
ment is crucial for infrastructure development moving forwa=3D</span><br><sp=
an>rd, so there should be more flexibility in regards to what PPP is subject=
to=3D</span><br><span>. In addition to that, President Obama has proposed t=
he taxable, direct-pay A=3D</span><br><span>merica Fast Forward bond program=
to help finance infrastructure. &amp;nbsp;&lt;/spa=3D</span><br><span>n&gt;=
&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;b style=3D3D"background-color: r=
gba(255, 255, 25=3D</span><br><span>5, 0);"&gt;&lt;u&gt;State Infrastructure=
Banks&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;spa=3D=
</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=
Local governments rece=3D</span><br><span>ive financing in a number of ways.=
&amp;nbsp;Traditional sources such as tax rev=3D</span><br><span>enues have=
been dwindling and local authorities have been relying on federal=3D</span>=
<br><span> government loan programs, public-private partnerships, and State R=
evolving =3D</span><br><span>Funds (SRFs). &amp;nbsp;State Infrastructure Ba=
nks (SIBs) are a subset of SRFs -=3D</span><br><span>- the funds act like a b=
ank, because they don=3DE2=3D80=3D99t own the infrastructu=3D</span><br><spa=
n>re asset, but act as a lender or guarantor to the project sponsor. Per Bro=
ok=3D</span><br><span>ings: &amp;nbsp;=3DE2=3D80=3D9CSRFs rely on principal r=
epayments, bonds, interest and f=3D</span><br><span>ees to re-capitalize and=
replenish the fund as a perpetual source of debt fi=3D</span><br><span>nanc=
ing.=3DE2=3D80=3D9D&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt=
;span style=3D3D"background=3D</span><br><span>-color: rgba(255, 255, 255, 0=
);"&gt;SIBs generate more investment per dollar th=3D</span><br><span>an tra=
ditional federal and state grant programs. &amp;nbsp;They only exist in 33=3D=
</span><br><span> states and 10 of those SIBs are currently inactive. A larg=
e problem may be c=3D</span><br><span>ompliance with federal regulations. &a=
mp;nbsp;Brookings again:&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;=3D</span><br><=
span>p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"background-color: rgba(2=
55, 255, 255, 0=3D</span><br><span>);"&gt;=3DE2=3D80=3D9CWe found that many S=
IB officials cite compliance with federal r=3D</span><br><span>egulations as=
slowing down the investment process either because of environm=3D</span><br=
> <span>ental and contractual requireme&lt;/span&gt;&lt;span style=3D3D"backg=
round-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;nts or due to t=
he lack of flexibility in projects that a=3D</span><br><span>re not Title 23=
or 49 eligible. For states with smaller projects, this may b=3D</span><br><=
span>e prohibitively costly compared to the advantage of using the low-cost S=
IB f=3D</span><br><span>inancing.=3DE2=3D80=3D9D&amp;nbsp;&lt;/span&gt;&lt;/=
p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"bac=3D</span><br><sp=
an>kground-color: rgba(255, 255, 255, 0);"&gt;Just being called a bank subje=
cts SI=3D</span><br><span>Bs to regulations that commercial banks are subjec=
t to. &amp;nbsp;SIBs are non-f=3D</span><br><span>or-profit organizations wi=
th a goal of increasing infrastructure investment,=3D</span><br><span> so th=
ey don=3DE2=3D80=3D99t quite fit into the category of the average bank. &amp=
;nbs=3D</span><br><span>p;SIBs may be more successful outside this classific=
ation.&amp;nbsp;&lt;/span&gt;&lt;span=3D</span><br><span> style=3D3D"backgro=
und-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;=
p cla=3D</span><br><span>ss=3D3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D3D"bac=
kground-color: rgba(255, 255, 255, 0);"&gt;Fo=3D</span><br><span>r or Agains=
t Dodd-Frank&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt=
;span style=3D3D"bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0=
);"&gt;Before Dodd-Frank, particularly in t=3D</span><br><span>he case of re=
latively small municipalities, many underwriters forged long-te=3D</span><br=
> <span>rm relationships with municipalities and would provide financial advi=
ce befo=3D</span><br><span>re and after a bond issuance. &amp;nbsp;With Dodd=
-Frank, that relationship chang=3D</span><br><span>ed, with a new =3DE2=3D80=
=3D9Cmunicipal adviser=3DE2=3D80=3D9D category that must regist=3D</span><br=
> <span>er with the SEC and be regulated by the Municipal Securities Rulemaki=
ng Boar=3D</span><br><span>d (MSR).&amp;nbsp;&lt;/span&gt;&lt;span style=3D3=
D"background-color: rgba(255, 255, 255, 0)=3D</span><br><span>;"&gt;&amp;nbs=
p;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=
"&gt;No=3D</span><br><span>w, it is widely illegal to provide advice to gove=
rnmental entities concernin=3D</span><br><span>g the issuance of municipal b=
onds, the use of financial derivatives, and the=3D</span><br><span> investme=
nt of the proceeds of a bond issue to, or on behalf, of a municipal=3D</span=
> <br><span> entity or an obligated person unless the adviser is registered w=
ith the SEC=3D</span><br><span>.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=
=3D3D"MsoNormal"&gt;&lt;span style=3D3D"background-color: rg=3D</span><br><s=
pan>ba(255, 255, 255, 0);"&gt;HR 2209 appears to address a problem within Do=
dd-Fran=3D</span><br><span>k, but it is unclear if it vitiates the law mater=
ially. &amp;nbsp;At face value,=3D</span><br><span> it appears to be more a t=
echnical fix. Dodd-Frank expanded regulations for b=3D</span><br><span>ankin=
g institutions, but the entities that fund state and local governments a=3D<=
/span><br><span>re far unlike the TBTF institutions that Dodd-Frank was mean=
t to regulate. &amp;=3D</span><br><span>nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&g=
t;&lt;p class=3D3D"MsoNormal"&gt;&lt;span style=3D3D"background-color=3D</sp=
an><br><span>: rgba(255, 255, 255, 0);"&gt;Groups like Americans for Financi=
al Reform oppose=3D</span><br><span> HR 2209: =3DE2=3D80=3D9CWhile we sympat=
hize with the belief that municipal debt w=3D</span><br><span>as incorrectly=
treated under the initial LCR rule, we believe that it is ina=3D</span><br>=
<span>ppropriate to classify such debt as a Level 2A asset. AFR therefore op=
poses t=3D</span><br><span>his bill unless a more appropriate liquidity clas=
sification is used.=3DE2=3D80=3D9D=3D</span><br><span> &amp;nbsp;&lt;/span&g=
t;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;AFR h=3D=
</span><br><span>as previously said it supports treating municipal bonds as m=
ore liquid and d=3D</span><br><span>oes not approve the type of classificati=
on used in HR 2209, because it goes t=3D</span><br><span>oo far in its treat=
ment of municipal debt as level 2A liquid assets and spec=3D</span><br><span=
> ifically with micromanaging regulators with this kind of detail and they pr=
e=3D</span><br><span>fer a Level 2B classification.&amp;nbsp;&lt;/span&gt;&l=
t;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;span s=3D</span><br><span>tyle=3D=
3D"background-color: rgba(255, 255, 255, 0);"&gt;The bill could provide re=3D=
</span><br><span>lief for smaller institutions, so that they can fund infras=
tructure investme=3D</span><br><span>nt more easily. In terms of Dodd-Frank,=
it is yet to be decided if it is sim=3D</span><br><span>ply a necessary twe=
ak or a criticism.&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-=3D<=
/span><br><span>color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp; &am=
p;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;n=3D</span><br><span>bsp; &amp=
;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &am=
p;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cl=3D</span><br><span>ass=3D3D"MsoNormal=
"&gt;&lt;b&gt;&lt;u style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt=
;=3D</span><br><span>Looking Ahead&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D=
3D"MsoNormal"&gt;&lt;span style=3D3D"background-co=3D</span><br><span>lor: r=
gba(255, 255, 255, 0);"&gt;HR 2209 could end up being an important issue i=3D=
</span><br><span>n the national infrastructure discussion. &amp;nbsp;It brin=
gs up questions about=3D</span><br><span> how far a state or local governmen=
t can go before its activities begin to r=3D</span><br><span>esemble an actu=
al bank. &amp;nbsp;With the growth of PPPs, the private sector is=3D</span><=
br><span> being even more integrated into the process =3DE2=3D80=3D93 should=
those companie=3D</span><br><span>s be given tax exemptions, as well?&amp;n=
bsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"&gt;&lt;=3D</span><br>=
<span>span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&g=
t;&lt;/span&gt;&lt;/p&gt;&lt;/di=3D</span><br><span>v&gt;&lt;div&gt;&lt;span=
id=3D3D"docs-internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6" s=3D</span=
> <br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;hr st=
yle=3D3D"box-sizing: c=3D</span><br><span>ontent-box; border-style: solid; b=
order-color: gray; height: 0px;"&gt;&lt;/span&gt;&lt;/=3D</span><br><span>di=
v&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;Upcoming/R=
ecent Updat=3D</span><br><span>es&lt;/p&gt;&lt;div&gt;&lt;div&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D</span><br><s=
pan>=3D80=3DA2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;/div&gt=
;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Bu=3D</span><br><span>dget (Ir)Resolut=
ion&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Puerto Rico&lt;/div&gt;&=
lt;div&gt;=3DE2=3D80=3DA2=3D</span><br><span> &amp;nbsp;Econ. Revitalization=
/Housing&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;div&gt;Infrastructure Financ=3D=
</span><br><span>e Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/div&gt;&lt;div&g=
t;Does DFA Fail on Too Big to Fail? (=3D</span><br><span>Feb. 17)&lt;/div&gt=
;&lt;div&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/d=
iv&gt;&lt;=3D</span><br><span>div&gt;International Tax Status &amp;nbsp;(Feb=
. 11)&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;=3D</span><br><span>nb=
sp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&am=
p;nbsp;&lt;div&gt;Tax Ta=3D</span><br><span>lk of the Town &amp;nbsp;(Feb. 3=
)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br=3D</span=
> <br><blockquote type=3D"cite"><span>&lt;div&gt;Fiscal Pol: Deficit/Debt Dor=
mancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"b=3D</span><br></b=
lockquote><span>ackground-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds R=
ates, for Now &amp;nbsp=3D</span><br><span>;(Jan. 28)&lt;/span&gt;&lt;/div&g=
t;&lt;div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;di=3D=
</span><br><span>v&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&=
gt;&lt;div&gt;Sanders' Tax/Healthcar=3D</span><br><span>e Policy &amp;nbsp;(=
Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"color: rgba(0, 0, 0, 0.701=
9=3D</span><br><span>61); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392); text-deco=3D</span><br><span>ration: -webkit-letterpress;"&gt;HRC=
's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br sty=3D</span><br><span>=
le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(1=3D</span><br><span>30, 98, 83, 0.0980392);"&gt;&lt;div style=3D3D"color: r=
gba(0, 0, 0, 0.701961); -webk=3D</span><br><span>it-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"&gt;2016 Tax Agenda on=3D</span><br><span> the H=
ill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0=
.701961);=3D</span><br><span> -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392);"&gt;Glass-Steaga=3D</span><br><span>ll, Take 2 &amp;nbsp;(Jan=
. 13)&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961)=3D</span>=
<br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&g=
t;&lt;span style=3D</span><br><span>=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;=3D</span><br><span>(Jan. 8)&lt=
;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -we=
bkit-c=3D</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392=
);"&gt;&lt;span style=3D3D"backgro=3D</span><br><span>und-color: rgba(255, 2=
55, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)=3D</span><br><=
span>&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=
61); -webkit-compositi=3D</span><br><span>on-fill-color: rgba(130, 98, 83, 0=
.0980392);"&gt;&lt;span style=3D3D"background-colo=3D</span><br><span>r: rgb=
a(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/s=
pan&gt;=3D</span><br><span>&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill=3D</span><br><span>-color: rgba(130, 9=
8, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-color: rgba=3D</span><=
br><span>(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &am=
p;nbsp;&lt;/span&gt;&lt;s=3D</span><br><span>pan style=3D3D"background-color=
: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fin=3D</span><br><span>. Reg.=
&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"=3D</span><br><blockquote type=3D"cite"><span>&amp;nbsp;(Dec. 29) &a=
mp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255=3D<=
/span><br></blockquote><span>, 255, 0);"&gt;Omnibus Review (Dec. 15)&lt;/spa=
n&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0=3D</span><br><span>, 0, 0,=
0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=3D</sp=
an><br><span>92);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;Omnibus Situ=3D</span><br><span>ation &amp;nbsp;(Dec. 14)&lt;/sp=
an&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=3D</span><=
br><span>1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&=
gt;&lt;span sty=3D</span><br><span>le=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;FY 2016 Omnibus Talks (Dec.=3D</span><br><span> 10)&lt;/span&gt;=
&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compo=
=3D</span><br><span>sition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt=
;span style=3D3D"background-=3D</span><br><span>color: rgba(255, 255, 255, 0=
);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div=3D</s=
pan><br><span> style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=
n-fill-color: rg=3D</span><br><span>ba(130, 98, 83, 0.0980392);"&gt;&lt;span=
style=3D3D"background-color: rgba(255, 255,=3D</span><br><span> 255, 0);"&g=
t;Tax Extender Negotiations &amp;nbsp;(Dec. 6)&amp;nbsp;&lt;/span&gt;&lt;/di=
v&gt;&lt;div s=3D</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba=3D</span><br><span>(130, 98, 83, 0.09803=
92);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=3D</span><br=
> <span>55, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&=
lt;div style=3D3D"color: rgba(0=3D</span><br><span>, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.09803=3D</span><br><span>92);"=
&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby=
2.0 U=3D</span><br><span>pdate &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&=
lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961=3D</span><br><span>); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span styl=3D=
</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br=
&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D=3D</span><br><span>"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D</span=
> <br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-color: rgba=
(255, 255, 255, 0);=3D</span><br><span>"&gt;----&lt;/span&gt;&lt;/div&gt;&lt=
;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D</span><br><sp=
an>position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;br&gt;&lt;/div=
&gt;&lt;/div&gt;&lt;/div&gt;&lt;/=3D</span><br><span>div&gt;&lt;/div&gt;&lt;=
/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(25=
5, 255, 2=3D</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;=
&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 25=3D</span><br><=
span>5, 255, 0);"&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;/div&gt=
;&lt;div&gt;&lt;div&gt;&lt;span id=3D3D"docs-=3D</span><br><span>internal-gu=
id-4733a1b7-ec8c-3344-1176-d4eb9086feb6"&gt;&lt;p dir=3D3D"ltr" style=3D3D"=3D=
</span><br><span>margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3=
D"background-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;&lt;br&g=
t;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; m=3D=
</span><br><span>argin-bottom: 0pt;"&gt;&lt;span style=3D3D"background-color=
: rgba(255, 255, 255, 0);=3D</span><br><span>"&gt;The newly-installed&amp;nb=
sp;the Minneapolis Federal Reserve Bank and former S=3D</span><br><span>peci=
al Investigator&amp;nbsp;overseeing the TARP program came to town yesterday a=
=3D</span><br><span>dvocating drastic action to head off a financial sector s=
ystemic risk crisis=3D</span><br><span>, calling for&amp;nbsp;the nation's b=
iggest banks to be broken up.&amp;nbsp;&lt;/span&gt;&lt;=3D</span><br><span>=
/p&gt;&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;p class=3D3D"MsoNormal" style=
=3D3D"margin: 12pt 0in;"&gt;&lt;sp=3D</span><br><span>an style=3D3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"&gt;His speech, delivered=3D</span><br><sp=
an>&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=
;"&gt;&amp;nbsp;at Br=3D</span><br><span>ookings, got noticed, with lengthy c=
overage in the NYT, WSJ, and WaPo.&amp;nbsp;=3D</span><br><span> And perhaps=
with reason -- the TBTF (too big to fail) issue has dogged Cong=3D</span><b=
r><span>ress and the administration for years and is one of the central ones=
&lt;/span&gt;&lt;=3D</span><br><span>span style=3D3D"background-color: rgba(=
255, 255, 255, 0);"&gt;&amp;nbsp;in the Democr=3D</span><br><span>atic presi=
dential campaign this far.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;div&gt;&lt;sp=
an id=3D3D"docs-i=3D</span><br><span>nternal-guid-4733a1b7-ec8c-3344-1176-d4=
eb9086feb6"&gt;&lt;p dir=3D3D"ltr" style=3D3D"m=3D</span><br><span>argin-top=
: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline=3D=
</span><br><span>; background-color: rgba(255, 255, 255, 0);"&gt;Or maybe it=
was just a slow new=3D</span><br><span>s day. &amp;nbsp;You decide...&lt;/s=
pan&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt=3D</span><br=
> <span>; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baselin=
e; background-c=3D</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;&lt;br&=
gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin=3D</span><br=
> <span>-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align=
: baseline; bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0);"&g=
t;Best,&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D=3D</span><br><sp=
an>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt=
;p dir=3D3D"ltr" style=3D3D=3D</span><br><span>"margin-top: 0pt; margin-bott=
om: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseli=3D</span><br><span>n=
e; background-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;/p&gt;=
&lt;p dir=3D3D"ltr"=3D</span><br><span> style=3D3D"margin-top: 0pt; margin-b=
ottom: 0pt;"&gt;&lt;span style=3D3D"vertical-alig=3D</span><br><span>n: base=
line; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&=
lt;/p&gt;&lt;hr s=3D</span><br><span>tyle=3D3D"box-sizing: content-box; bord=
er-style: solid; border-color: gray; he=3D</span><br><span>ight: 0px;"&gt;&l=
t;/span&gt;&lt;/div&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0=
in;"&gt;=3D</span><br><span>&lt;br&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" s=
tyle=3D3D"margin: 12pt 0in;"&gt;&lt;b style=3D3D"backg=3D</span><br><span>ro=
und-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;A Peculiar Package of Propos=
als&lt;/u&gt;=3D</span><br><span>&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNor=
mal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"ba=3D</span><br><s=
pan>ckground-color: rgba(255, 255, 255, 0);"&gt;Kashkari argued in the alter=
native t=3D</span><br><span>hat Dodd-Frank needs to be used and/or needs to b=
e reformed. &amp;nbsp;He says t=3D</span><br><span>he law as written does no=
t solve the TBTF problem. &amp;nbsp;He also wants regul=3D</span><br><span>a=
tors to use the yet-untried tools at their disposal under the law. &amp;nbsp=
;&amp;n=3D</span><br><span>bsp;&lt;/span&gt;&lt;span style=3D3D"background-c=
olor: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3D9C=3D</span><br><span>While s=
ignificant progress has been made to strengthen our financial system,=3D</sp=
an><br><span> I believe the [Dodd-Frank] Act did not go far enough." &amp;nb=
sp;He then laid o=3D</span><br><span>ut three ideas meant to end TBTF once a=
nd for all. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D</span><br><span>=
=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"backgr=
ound-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &=
amp;nbsp;break up large banks into smaller, l=3D</span><br><span>ess connect=
ed, less important entities;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorma=
l" sty=3D</span><br><span>le=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D"=
background-color: rgba(255, 255, 255=3D</span><br><span>, 0);"&gt;=3DE2=3D80=
=3DA2 &amp;nbsp;turn what remains of the large banks into public util=3D</sp=
an><br><span>ities by forcing them to hold so much capital that they can=3DE=
2=3D80=3D99t fail; a=3D</span><br><span>nd&lt;/span&gt;&lt;/p&gt;&lt;p class=
=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;span style=3D3D=3D</sp=
an><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &=
amp;nbsp;tax leverage thr=3D</span><br><span>oughout the financial system "t=
o reduce systemic risks wherever they lie."&lt;/=3D</span><br><span>span&gt;=
&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&gt;&lt;b=
style=3D3D"back=3D</span><br><span>ground-color: rgba(255, 255, 255, 0);"&g=
t;=3DE2=3D80=3DA2 &amp;nbsp;&lt;u&gt;Break&amp;nbsp;up the B=3D</span><br><s=
pan>anks&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D=
"margin: 12pt 0in; vertical-a=3D</span><br><span>lign: baseline;"&gt;&lt;spa=
n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3D46rom=3D</span=
> <br><span> the perspective of current laws, breaking up big banks is alread=
y a policy a=3D</span><br><span>venue available to regulators.&amp;nbsp; The=
Federal Reserve, through the Financ=3D</span><br><span>ial Stability Oversi=
ght Council, can elect to take a number of actions to de=3D</span><br><span>=
al with banks that it feels are both systemically important and organized in=
=3D</span><br><span> an unstable way.&amp;nbsp; Section 121 of the Dodd-Fran=
k Act gives the Board of=3D</span><br><span> Governors these powers.&amp;nbs=
p;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(2=3D</span><br><sp=
an>55, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"M=
soNormal" style=3D3D"margin: 1=3D</span><br><span>2pt 0in; vertical-align: b=
aseline;"&gt;&lt;span style=3D3D"background-color: rgba(25=3D</span><br><spa=
n>5, 255, 255, 0);"&gt;So this first proposal =3DE2=3D80=3D93 break up big b=
anks - has&amp;=3D</span><br><span>nbsp;been covered here before but just fo=
r the sake of argument... which ban=3D</span><br><span>ks need to be broken u=
p most urgently? &amp;nbsp;Few commentators believe there i=3D</span><br><sp=
an>s an imminent threat demanding action. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&=
lt;p class=3D3D"MsoNorma=3D</span><br><span>l" style=3D3D"margin: 12pt 0in; v=
ertical-align: baseline;"&gt;&lt;span style=3D3D"back=3D</span><br><span>gro=
und-color: rgba(255, 255, 255, 0);"&gt;Unsurprisingly, the Fed doesn=3DE2=3D=
80=3D99=3D</span><br><span>t believe that banks are so hopeless that they ne=
ed to be dissolved. &amp;nbsp;T=3D</span><br><span>hat doesn=3DE2=3D80=3D99t=
mean it=3DE2=3D80=3D99s not a possibility under current legisl=3D</span><br=
> <span>ation, however.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" sty=
le=3D3D"margin: 12pt 0in; v=3D</span><br><span>ertical-align: baseline;"&gt;=
&lt;b style=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br><span>=
);"&gt;=3DE2=3D80=3DA2 &amp;nbsp;&amp;nbsp;&lt;/b&gt;&lt;b style=3D3D"backgr=
ound-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;&lt;u&gt;Make Ba=
nks =3DE2=3D80=3D9CUtilities=3DE2=3D80=3D9D&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt=
;p class=3D3D"Ms=3D</span><br><span>oNormal" style=3D3D"margin: 12pt 0in; ve=
rtical-align: baseline;"&gt;&lt;span style=3D3D=3D</span><br><span>"backgrou=
nd-color: rgba(255, 255, 255, 0);"&gt;The second proposal is to push c=3D</s=
pan><br><span>apital requirements for banks so high that they =3DE2=3D80=3D9=
Cessentially turn in=3D</span><br><span>to public utilities.=3DE2=3D80=3D9D&=
amp;nbsp; Kashkari never explains how exactly high=3D</span><br><span> capit=
al reserves turn banks into utilities, but that=3DE2=3D80=3D99s for another t=
=3D</span><br><span>ime.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cla=
ss=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;=3D</span><br><span> vertical=
-align: baseline;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
=3D</span><br><span>55, 0);"&gt;He is voicing his support for one of the old=
est forms of banking re=3D</span><br><span>gulations that we still use and u=
se far more now in the Dodd-Frank era =3DE2=3D80=3D</span><br><span>=3D93 he=
wants banks to hold more capital. &amp;nbsp;Supporters of the law may be h=3D=
</span><br><span>eartened by his full-throated endorsement of the law on thi=
s score.&amp;nbsp;&lt;/s=3D</span><br><span>pan&gt;&lt;/p&gt;&lt;p class=3D3=
D"MsoNormal" style=3D3D"margin: 12pt 0in; vertical-align: ba=3D</span><br><s=
pan>seline;"&gt;&lt;b style=3D3D"background-color: rgba(255, 255, 255, 0);"&=
gt;=3DE2=3D80=3DA2 &amp;n=3D</span><br><span>bsp;&amp;nbsp;&lt;/b&gt;&lt;b s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Crib=3D</sp=
an><br><span>bing from Clinton?&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3=
D"MsoNormal" style=3D3D"margin: 12pt 0=3D</span><br><span>in; vertical-align=
: baseline;"&gt;&lt;span style=3D3D"background-color: rgba(255, 25=3D</span>=
<br><span>5, 255, 0);"&gt;The third proposal was just about lifted out of Se=
cretary Clint=3D</span><br><span>on=3DE2=3D80=3D99s plan to regulate Wall St=
reet =3DE2=3D80=3D93- though the reporting on=3D</span><br><span> the speech=
doesn=3DE2=3D80=3D99t much mention it much.&amp;nbsp; It is reasonable bot=3D=
</span><br><span>h from a policy and a political perspective. But he doesn't=
provide further d=3D</span><br><span>etails about &lt;/span&gt;&lt;span sty=
le=3D3D"background-color: rgba(255, 255, 255, 0);=3D</span><br><span>"&gt;hi=
s proposal after first outlining it.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"=
MsoNormal" st=3D</span><br><span>yle=3D3D"margin: 12pt 0in; vertical-align: b=
aseline;"&gt;&lt;b style=3D3D"background-c=3D</span><br><span>olor: rgba(255=
, 255, 255, 0);"&gt;Kashkari contra Yellen&lt;/b&gt;&lt;/p&gt;&lt;p class=3D=
3D"Mso=3D</span><br><span>Normal" style=3D3D"margin: 12pt 0in; vertical-alig=
n: baseline;"&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: r=
gba(255, 255, 255, 0);"&gt;Fed Chair Yellen has been an out=3D</span><br><sp=
an>spoken proponent of existing banking regulations, making it known that wh=
ile=3D</span><br><span> the job of regulators is not done yet. we=3DE2=3D80=3D=
99re in a much better situa=3D</span><br><span>tion now than we were before D=
FA. &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-col=3D</span><br><=
span>or: rgba(255, 255, 255, 0);"&gt;During her testimony before House Finan=
cial Ser=3D</span><br><span>vices, Yellen fielded a question about why she h=
ad not yet broken up big ban=3D</span><br><span>ks, saying&lt;/span&gt;&lt;s=
pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;:=3D</span><br>=
<span>&amp;nbsp;=3DE2=3D80=3D9C=3DE2=3D80=3DA6we [at the Fed]vare using our p=
owers to make sure th=3D</span><br><span>at a systemically important institu=
tion could fail, and it would not be -- h=3D</span><br><span>ave systemic co=
nsequences for the country. We're doing that in a whole varie=3D</span><br><=
span>ty of ways.=3DE2=3D80=3D9D&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&l=
t;p class=3D3D"MsoNormal" style=3D3D"m=3D</span><br><span>argin: 12pt 0in; v=
ertical-align: baseline;"&gt;&lt;span style=3D3D"background-color:=3D</span>=
<br><span> rgba(255, 255, 255, 0);"&gt;The ways Yellen is referring to inclu=
de enforcing L=3D</span><br><span>iquidity Coverage Ratios, capital reserve r=
equirements, and a rule passed la=3D</span><br><span>st November forcing the=
biggest banks to issue long-term debt equal to 18 pe=3D</span><br><span>rce=
nt of risk-weighted assets. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3=
D"MsoNormal" style=3D</span><br><span>=3D3D"margin: 12pt 0in; vertical-align=
: baseline;"&gt;Evidently it's not enough. &amp;=3D</span><br><span>nbsp;But=
it is nonetheless uncommon for&lt;span style=3D3D"background-color: rgba=3D=
</span><br><span>(255, 255, 255, 0);"&gt;&amp;nbsp;a newly minted Federal Re=
serve Bank President to t=3D</span><br><span>aking to task the Chair of the =
Federal Reserve=3DE2=3D80=3D99s Board of Governors.=3D</span><br><span>&lt;/=
span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in; v=
ertical-align:=3D</span><br><span> baseline;"&gt;&lt;br&gt;&lt;/p&gt;&lt;div=
&gt;Upcoming/Recent Updates&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;=3DE2=
=3D80=3DA2=3D</span><br><span> &amp;nbsp;Municipal Bond Rule&lt;/div&gt;&lt;=
div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Budget (Ir)Resolution&lt;/=3D</span><br><sp=
an>div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Puerto Rico&lt;/div&gt;&lt;di=
v&gt;=3DE2=3D80=3DA2 &amp;nbsp;Derivatives A=3D</span><br><span>greement w. E=
U&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Econ. Revitalization/Housi=
ng&lt;br&gt;&lt;di=3D</span><br><span>v&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;=
Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/div&gt;&lt;div&gt;Below=3D</=
span><br><span> the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/div=
&gt;&lt;div&gt;International Tax St=3D</span><br><span>atus &amp;nbsp;(Feb. 1=
1)&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt=
;&lt;di=3D</span><br><span>v&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;n=
bsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Fe=3D</span><br><span>b. 3)&l=
t;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&=
gt;Fiscal Pol: Defici=3D</span><br><span>t/Debt Dormancy (Jan. 28)&lt;/div&g=
t;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(25=3D</span><br><spa=
n>5, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/=
span&gt;&lt;/div&gt;&lt;=3D</span><br><span>div&gt;Debate Myths Challenged &=
amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regulat=3D</span><br=
> <span>ors &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare=
Policy &amp;nbsp;(Jan 20)&lt;=3D</span><br><span>/div&gt;&lt;div&gt;&lt;spa=
n style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=3D</span><b=
r><span>-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=
letterpr=3D</span><br><span>ess;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt=
;/span&gt;&lt;br style=3D3D"color: rgba(0, 0, 0=3D</span><br><span>, 0.70196=
1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;=3D</s=
pan><br><span>&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color=3D</span><br><span>: rgba(130, 98, 83, 0.0980392);"&gt;2=
016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)=3D</span><br><span>&lt;/div&g=
t;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l=3D</span><br><span>-color: rgba(130, 98, 83, 0.0980392);"&gt;Glass-Steagal=
l, Take 2 &amp;nbsp;(Jan. 13=3D</span><br><span>)&lt;/div&gt;&lt;div style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D</span><br><spa=
n>l-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-=
color: rgb=3D</span><br><span>a(255, 255, 255, 0);"&gt;2016 Tax Policy Issue=
s &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div=3D</span><br><span> sty=
le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=3D=
</span><br><span>ba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D"backgro=
und-color: rgba(255, 255,=3D</span><br><span> 255, 0);"&gt;Sanders Proposals=
/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D=3D</s=
pan><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: rgba(130, 9=3D</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D3D=
"background-color: rgba(255, 255, 255, 0);=3D</span><br><span>"&gt;Sanders' =
Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=
3D"color:=3D</span><br><span> rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 98, 83, 0=3D</span><br><span>.0980392);"&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-E=3D</span><br><=
span>nd Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=
=3D3D"background-col=3D</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Year=
-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span st=3D</span><br><span>=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &=
amp;nbsp;&lt;/sp=3D</span><br><span>an&gt;&lt;span style=3D3D"background-col=
or: rgba(255, 255, 255, 0);"&gt;Omnibus Review (=3D</span><br><span>Dec. 15)=
&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-c=3D</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.09803=
92);"&gt;&lt;span style=3D3D"backgro=3D</span><br><span>und-color: rgba(255,=
255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;=3D</sp=
an><br><span>&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill=3D</span><br><span>-color: rgba(130, 98, 83, 0.09803=
92);"&gt;&lt;span style=3D3D"background-color: rgba=3D</span><br><span>(255,=
255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&=
lt;div style=3D3D=3D</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130, 9=3D</span><br><span>8, 83, 0.0980392);"=
&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=3D</span><=
br><span>"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;di=
v style=3D3D"color: rgba(0, 0, 0,=3D</span><br><span> 0.701961); -webkit-com=
position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;=3D</span><br><sp=
an>span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extende=
r Negoti=3D</span><br><span>ations &amp;nbsp;(Dec. 6)&amp;nbsp;&lt;/span&gt;=
&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0=3D</span><br><span>.70=
1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt=
;sp=3D</span><br><span>an style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;Brown on HFT &amp;nbsp;(D=3D</span><br><span>ec. 4)&lt;/span&gt;&lt;/=
div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D</sp=
an><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span=
style=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 255, 0);"&g=
t;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/d=3D</span><br><span=
> iv&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&=
gt;&lt;div&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-t=3D</span><br><span>op:=
0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline; b=
ackg=3D</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&=
lt;/span&gt;&lt;/p&gt;&lt;hr style=3D3D"box-sizing=3D</span><br><span>: cont=
ent-box; border-style: solid; border-color: gray; height: 0px;"&gt;&lt;br&gt=
;&lt;/=3D</span><br><span>div&gt;&lt;div&gt;Mike &amp;amp; Co. &amp;nbsp;--&=
lt;/div&gt;&lt;div&gt;&lt;span id=3D3D"docs-internal-guid-47=3D</span><br><s=
pan>33a1b7-ec8c-3344-1176-d4eb9086feb6"&gt;&lt;br&gt;&lt;p dir=3D3D"ltr" sty=
le=3D3D"background-c=3D</span><br><span>olor: rgba(255, 255, 255, 0); margin=
-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span st=3D</span><br><span>yle=3D3D"v=
ertical-align: baseline;"&gt;A national holiday, a snowstorm, and a con=3D</=
span><br><span>gressional recess stilled DC yesterday and a quiet week is ex=
pected.&amp;nbsp; I=3D</span><br><span>t gives us a chance to have a look at=
some developments thus far this year t=3D</span><br><span>hat have flown be=
low the radar.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3=
D"backgr=3D</span><br><span>ound-color: rgba(255, 255, 255, 0); margin-top: 0=
pt; margin-bottom: 0pt;"&gt;&lt;s=3D</span><br><span>pan style=3D3D"vertical=
-align: baseline;"&gt;Today's item is the one bill on its w=3D</span><br><sp=
an>ay to the President=3DE2=3D80=3D99s desk -- the Customs bill -- and the c=
aboose at=3D</span><br><span>tached to it that extends the internet tax mora=
torium permanently &amp;nbsp;and m=3D</span><br><span>ay be the bill's impor=
tant title... at least until the TPP comes up on the S=3D</span><br><span>en=
ate floor.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"ba=
ckground-color: rgba(=3D</span><br><span>255, 255, 255, 0); margin-top: 0pt;=
margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vert=3D</span><br><span>ical-al=
ign: baseline;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" styl=
e=3D3D"background-col=3D</span><br><span>or: rgba(255, 255, 255, 0); margin-=
top: 0pt; margin-bottom: 0pt;"&gt;&lt;span styl=3D</span><br><span>e=3D3D"ve=
rtical-align: baseline;"&gt;Best, &lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=
=3D3D"ltr" style=3D3D=3D</span><br><span>"background-color: rgba(255, 255, 2=
55, 0); margin-top: 0pt; margin-bottom: 0=3D</span><br><span>pt;"&gt;&lt;spa=
n style=3D3D"vertical-align: baseline;"&gt;Dana&lt;/span&gt;&lt;/p&gt;&lt;p d=
ir=3D3D"ltr"=3D</span><br><span> style=3D3D"background-color: rgba(255, 255,=
255, 0); margin-top: 0pt; margin-=3D</span><br><span>bottom: 0pt;"&gt;&lt;s=
pan style=3D3D"vertical-align: baseline;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&g=
t;&lt;p di=3D</span><br><span>r=3D3D"ltr" style=3D3D"background-color: rgba(=
255, 255, 255, 0); margin-top: 0pt=3D</span><br><span>; margin-bottom: 0pt;"=
&gt;&lt;span style=3D3D"vertical-align: baseline;"&gt;&lt;br&gt;&lt;/span&gt=
;=3D</span><br><span>&lt;/p&gt;&lt;hr style=3D3D"box-sizing: content-box; bo=
rder-style: solid; border-color:=3D</span><br><span> gray; height: 0px;"&gt;=
&lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255=3D</span><br>=
<span>, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;br&gt;&lt;/p&g=
t;&lt;p dir=3D3D"ltr" styl=3D</span><br><span>e=3D3D"background-color: rgba(=
255, 255, 255, 0); margin-top: 0pt; margin-botto=3D</span><br><span>m: 0pt;"=
&gt;&lt;span style=3D3D"font-weight: 700; vertical-align: baseline;"&gt;The C=
us=3D</span><br><span>toms Bill: &amp;nbsp;Comity on the Hill&lt;/span&gt;&l=
t;/p&gt;&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3D"ba=3D</span><br><span>ckgro=
und-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=3D</=
span><br><span>"&gt;&lt;span style=3D3D"vertical-align: baseline;"&gt;The Se=
nate cleared the first ove=3D</span><br><span>rhaul of the Customs and Borde=
r Protection (CBP) agency in more than a decad=3D</span><br><span>e in a 75-=
20 vote last Thursday, sending the bill to the President and endin=3D</span>=
<br><span>g months of wrangling over the measure.&amp;nbsp; The &lt;/span&gt=
;&lt;a href=3D3D"<a href=3D"http://w=3D">http://w=3D</a></span><br><span><a h=
ref=3D"http://ww.finance.senate.gov/legislation/details/hr-644">ww.finance.s=
enate.gov/legislation/details/hr-644</a>" style=3D3D"text-decoration: n=3D</=
span><br><span>one;"&gt;&lt;span style=3D3D"text-decoration: underline; vert=
ical-align: baseline;"&gt;=3D</span><br><span>Trade Facilitation and Trade E=
nforcement Act of 2015&lt;/span&gt;&lt;/a&gt;&lt;span style=3D3D=3D</span><b=
r><span>"vertical-align: baseline;"&gt; (H.R. 644) retools CBP to increase i=
ts focus on=3D</span><br><span> blocking illegal trade and ensuring that leg=
al trade moves smoothly.&lt;/span&gt;=3D</span><br><span>&lt;/p&gt;&lt;p dir=
=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); margin=3D</s=
pan><br><span>-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertica=
l-align: baseline;"&gt; &amp;=3D</span><br><span>nbsp;&lt;/span&gt;&lt;/p&gt=
;&lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 255=3D</spa=
n><br><span>, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=
3D"vertical-align: b=3D</span><br><span>aseline;"&gt;The major facets of thi=
s legislation are: &lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D3D=3D</span>=
<br><span>"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); margin-=
top: 0pt; ma=3D</span><br><span>rgin-bottom: 0pt;"&gt;&lt;span style=3D3D"ve=
rtical-align: baseline;"&gt;=3DE2=3D80=3DA2 &amp;nbsp=3D</span><br><span>;ne=
w protections on intellectual property rights&lt;/span&gt;&lt;/p&gt;&lt;p di=
r=3D3D"ltr" st=3D</span><br><span>yle=3D3D"background-color: rgba(255, 255, 2=
55, 0); margin-top: 0pt; margin-bot=3D</span><br><span>tom: 0pt;"&gt;&lt;spa=
n style=3D3D"vertical-align: baseline;"&gt;=3DE2=3D80=3DA2 &amp;nbsp;new too=
=3D</span><br><span>ls to fight currency manipulation&lt;/span&gt;&lt;/p&gt;=
&lt;p dir=3D3D"ltr" style=3D3D"backgrou=3D</span><br><span>nd-color: rgba(25=
5, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;spa=3D</span><=
br><span>n style=3D3D"vertical-align: baseline;"&gt;=3DE2=3D80=3DA2. a perma=
nent extension of th=3D</span><br><span>e Internet Tax Freedom Act&lt;/span&=
gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-=3D</span><=
br><span>color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=
"&gt;&lt;span s=3D</span><br><span>tyle=3D3D"vertical-align: baseline;"&gt;S=
aid Senate Finance ranking member Ron Wy=3D</span><br><span>den: &amp;nbsp;=3D=
E2=3D80=3D9CThis bill is about coming down hard on the trade cheats w=3D</sp=
an><br><span>ho are ripping off American jobs, and the truth is past trade p=
olicies were o=3D</span><br><span>ften too old, too slow or too weak for our=
country to fight back."&lt;/span&gt;&lt;/p=3D</span><br><blockquote type=3D=
"cite"><span>&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba=
(255, 255, 255, 0); margi=3D</span><br></blockquote><span>n-top: 0pt; margin=
-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline;"&gt;W=3D</sp=
an><br><span>yden was perhaps the most outspoken Democrat in support of the b=
ill, continu=3D</span><br><span>ing his role as a strong backer of free trad=
e legislation.&amp;nbsp; He was a ke=3D</span><br><span>y factor in getting T=
rade Promotion Authority legislation passed through Con=3D</span><br><span>g=
ress last summer, splitting from some of his colleagues in voicing support f=
=3D</span><br><span>or that act.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D=
3D"ltr" style=3D3D"background-color: rgba(25=3D</span><br><span>5, 255, 255,=
0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"font-w=3D<=
/span><br><span>eight: 700; text-decoration: underline; vertical-align: base=
line;"&gt;Unusual C=3D</span><br><span>oalition&lt;/span&gt;&lt;/p&gt;&lt;br=
&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 2=3D</span><b=
r><span>55, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;a href=3D3=
D"<a href=3D"http://www.sen=3D">http://www.sen=3D</a></span><br><span><a hre=
f=3D"http://ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?&=
amp;amp;congress=3D">ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_=
cfm.cfm?&amp;amp;congress=3D</a></span><br><span>=3D3D114&amp;amp;session=3D=
3D2&amp;amp;vote=3D3D00022" style=3D3D"text-decoration: none;"&gt;&lt;s=3D</=
span><br><span>pan style=3D3D"text-decoration: underline; vertical-align: ba=
seline;"&gt;27 Democ=3D</span><br><span>rats, 47 Republicans, and 1 Independ=
ent voted affirmatively&lt;/span&gt;&lt;/a&gt;&lt;span s=3D</span><br><span>=
tyle=3D3D"vertical-align: baseline;"&gt;.&amp;nbsp; Industry groups includin=
g the Nat=3D</span><br><span>ional Retail Federation, as well as the U.S. Ch=
amber of Commerce were suppor=3D</span><br><span>tive of the legislation. &a=
mp;nbsp;National Association of Manufacturers=3DE2=3D80=3D99=3D</span><br><s=
pan> president Jay Timmons said =3DE2=3D80=3D9Cif senators want to grow manu=
facturing i=3D</span><br><span>n the United States, then they should pass th=
is bill immediately.=3DE2=3D80=3D9D&lt;/=3D</span><br><span>span&gt;&lt;/p&g=
t;&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 2=
55, 0=3D</span><br><span>); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;spa=
n style=3D3D"vertical-align: base=3D</span><br><span>line;"&gt;Notable =3DE2=
=3D80=3D9CNay=3DE2=3D80=3D9D votes include Sens. Durbin and Reid, wh=3D</spa=
n><br><span>o both expressed disappointment that the legislation was a =3DE2=
=3D80=3D9Cwatered d=3D</span><br><span>own=3DE2=3D80=3D9D version of a bill p=
reviously passed by the Senate. &amp;nbsp;=3DE2=3D80=3D</span><br><span>=3D9=
DI like that [Senate] version, and that strong language on currency manipu=3D=
</span><br><span>lation,=3DE2=3D80=3D9D Durbin said =3DE2=3D80=3D93 that lan=
guage required Commerce to co=3D</span><br><span>nsider =3DE2=3D80=3D9Cunder=
valued=3DE2=3D80=3D9D currencies to be equivalent to counterv=3D</span><br><=
span>ailable subsidies. &amp;nbsp;=3DE2=3D80=3D9CThe conference report that=3D=
E2=3D80=3D99s back t=3D</span><br><span>o us now and before the Senate at th=
is moment is a much different bill."&lt;/sp=3D</span><br><span>an&gt;&lt;/p&=
gt;&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255,=
255, 0);=3D</span><br><span> margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;s=
pan style=3D3D"font-weight: 700; text=3D</span><br><span>-decoration: underl=
ine; vertical-align: baseline;"&gt;Purpose and Provisions&lt;/s=3D</span><br=
> <span>pan&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-=
color: rgba(255, 255, 255, 0)=3D</span><br><span>; margin-top: 0pt; margin-b=
ottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: basel=3D</span><br><span=
> ine;"&gt;House and Senate negotiators agreed on a final customs bill in Dec=
embe=3D</span><br><span>r. &amp;nbsp; The House passed the measure 256-158 b=
ut the legislation stalled i=3D</span><br><span>n the Senate over a provisio=
n added in conference that permanently extends a=3D</span><br><span> morator=
ium on Internet access taxes. &lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D3=
D"ltr" style=3D3D=3D</span><br><span>"background-color: rgba(255, 255, 255, 0=
); margin-top: 0pt; margin-bottom: 0=3D</span><br><span>pt;"&gt;&lt;span sty=
le=3D3D"vertical-align: baseline;"&gt;That provision is perhaps the=3D</span=
> <br><span> most reported on section in the bill =3DE2=3D80=3D93 it=3DE2=3D8=
0=3D99s almost certainl=3D</span><br><span>y the most popular - it applies t=
o localities, states, and the federal gover=3D</span><br><span>nment itself.=
&amp;nbsp; Sen. Lamar Alexander cited it though as explanation for=3D</span=
> <br><span> his =3DE2=3D80=3D9Cnay=3DE2=3D80=3D9D vote: "t&lt;/span&gt;&lt;s=
pan style=3D3D"background-color: r=3D</span><br><span>gba(255, 255, 255, 0);=
"&gt;he federal government shouldn't be telling the state=3D</span><br><span=
> s what their tax structure should be."&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;=
p dir=3D3D"ltr" style=3D3D=3D</span><br><span>"background-color: rgba(255, 2=
55, 255, 0); margin-top: 0pt; margin-bottom: 0=3D</span><br><span>pt;"&gt;&l=
t;span style=3D3D"vertical-align: baseline;"&gt;Another important provision,=
k=3D</span><br><span>nown as the ENFORCE Act, would require the CBP to more=
aggressively investig=3D</span><br><span>ate complaints that companies are e=
vading anti-dumping or countervailing dut=3D</span><br><span>ies on imports b=
y mislabeling or disguising the shipments.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&=
lt;p d=3D</span><br><span>ir=3D3D"ltr" style=3D3D"background-color: rgba(255=
, 255, 255, 0); margin-top: 0p=3D</span><br><span>t; margin-bottom: 0pt;"&gt=
;&lt;span style=3D3D"vertical-align: baseline;"&gt;The bill i=3D</span><br><=
span>ncludes a new Trade Enforcement Fund to bring trade cases through the W=
TO, t=3D</span><br><span>o investigate the implementation of trade requireme=
nts by other countries, a=3D</span><br><span>nd to respond to complaints of t=
rade violations. &amp;nbsp;It&lt;/span&gt;&lt;span style=3D3D=3D</span><br><=
span>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;also creates a=
nine-member=3D</span><br><span> Advisory Committee on International Exchang=
e Rate Policy, whose members mus=3D</span><br><span>t be comprised of indivi=
duals from the private sector who are selected by bo=3D</span><br><span>th c=
hambers of Congress and the President (three members each).&lt;/span&gt;&lt;=
/p&gt;&lt;b=3D</span><br><span>r&gt;&lt;p dir=3D3D"ltr" style=3D3D"backgroun=
d-color: rgba(255, 255, 255, 0); margin-t=3D</span><br><span>op: 0pt; margin=
-bottom: 0pt;"&gt;&lt;span style=3D3D"font-weight: 700; text-decorati=3D</sp=
an><br><span>on: underline; vertical-align: baseline;"&gt;Currency Manipulat=
ion&lt;/span&gt;&lt;/p&gt;&lt;b=3D</span><br><span>r&gt;&lt;p dir=3D3D"ltr" s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0); margin-t=3D</span><br><s=
pan>op: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: bas=
eline;"&gt;Curr=3D</span><br><span>ency manipulation has been a long-standin=
g concern of American policy-makers=3D</span><br><span> and a particularly c=
ontentious issue in global trade relations; claims that=3D</span><br><span> C=
hina has been chronically undervaluing its currency have made the news for=3D=
</span><br><span> a number of years.&amp;nbsp; Advocates for stricter enforc=
ement of currency man=3D</span><br><span>ipulation provisions claim that und=
ervalued currencies operate similarly to e=3D</span><br><span>xport subsidie=
s =3DE2=3D80=3D93 a prohibited practice within the World Trade Organ=3D</spa=
n><br><span>ization.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D3D"ltr" sty=
le=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0); margin=
-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-a=3D</span><=
br><span>lign: baseline;"&gt;The final bill dropped a Senate provision that w=
ould have r=3D</span><br><span>equired the Commerce Department to treat unde=
rvalued currency as an illegal s=3D</span><br><span>ubsidy under U.S. counte=
rvailing duty law.&amp;nbsp; This provision would have o=3D</span><br><span>=
pened the door for compensatory tariffs to be levied against goods which ori=
=3D</span><br><span>ginate from countries which are found to purposely under=
value their currency=3D</span><br><span> in order to boost their exports. Th=
e bill does, however, include other meas=3D</span><br><span>ures that give t=
he Treasury Department new tools to fight currency manipulat=3D</span><br><s=
pan>ion:&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-col=
or: rgba(255, 255, 255,=3D</span><br><span> 0); margin-top: 0pt; margin-bott=
om: 0pt;"&gt;&lt;span style=3D3D"background-color: r=3D</span><br><span>gba(=
255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" s=
tyle=3D3D"background-co=3D</span><br><span>lor: rgba(255, 255, 255, 0); marg=
in-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span sty=3D</span><br><span>le=3D3D=
"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp;cre=
ates a s=3D</span><br><span>pecial fund for the CBP to ensure trading partne=
rs follow the rules and to b=3D</span><br><span>ring disputes before the WTO=
&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-co=3D</span=
> <br><span>lor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=
"&gt;&lt;span sty=3D</span><br><span>le=3D3D"background-color: rgba(255, 255=
, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp;increases f=3D</span><br><span>undi=
ng to the National Intellectual Property Rights Coordination Center&lt;/spa=3D=
</span><br><span>n&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-co=
lor: rgba(255, 255, 255, 0); marg=3D</span><br><span>in-top: 0pt; margin-bot=
tom: 0pt;"&gt;&lt;span style=3D3D"background-color: rgba(255,=3D</span><br><=
span> 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp;establishes the Commercial=
Customs Operation=3D</span><br><span>s Advisory Committee jointly between C=
BP and Treasury&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"lt=3D</span><br><span>r=
" style=3D3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; marg=
i=3D</span><br><span>n-bottom: 0pt;"&gt;&lt;span style=3D3D"background-color=
: rgba(255, 255, 255, 0);"&gt;=3DE2=3D</span><br><span>=3D80=3DA2 &amp;nbsp;=
requires CBP to investigate claims from other agencies of evasi=3D</span><br=
> <span>on of anti-dumping or countervailing duties.&lt;/span&gt;&lt;/p&gt;&l=
t;br&gt;&lt;p dir=3D3D"ltr" st=3D</span><br><span>yle=3D3D"background-color:=
rgba(255, 255, 255, 0); margin-top: 0pt; margin-bot=3D</span><br><span>tom:=
0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline;"&gt;&lt;u&gt;&lt;b&g=
t;Relation to TPP&lt;/=3D</span><br><span>b&gt;&lt;/u&gt;&lt;/span&gt;&lt;/p=
&gt;&lt;br&gt;&lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255=
=3D</span><br><span>, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;=
span style=3D3D"vertical-ali=3D</span><br><span>gn: baseline;"&gt;Sen. Major=
ity Leader McConnell has said that the Senate will n=3D</span><br><span>ot v=
ote on the Trans-Pacific Partnership before the November elections, so i=3D<=
/span><br><span>t may come as a surprise to see a bill which deals with enfo=
rcing trade deal=3D</span><br><span>s like TPP pass both houses of Congress.=
&amp;nbsp; However this bill=3DE2=3D80=3D99s p=3D</span><br><span>rovisions f=
or protecting IP rights, toughening countervailing duties, and ta=3D</span><=
br><span>ckling currency manipulation are a necessary prerequisite for agree=
ments lik=3D</span><br><span>e TPP (or the far more nebulous TTIP).&amp;nbsp=
; The new age of trade agreements=3D</span><br><span> &amp;nbsp;will deal ex=
tensively in issues like intellectual property protection=3D</span><br><span=
> , trade in services, and high-tech product trading; types of commerce which=
a=3D</span><br><span>re far more difficult to regulate compared to the trad=
e of physical goods. &lt;=3D</span><br><span>/span&gt;&lt;/p&gt;&lt;br&gt;&l=
t;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0=3D</spa=
n><br><span>); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"=
vertical-align: base=3D</span><br><span>line;"&gt;So, despite the fact that T=
PP won=3DE2=3D80=3D99t get a vote until after No=3D</span><br><span>vember (=
and perhaps not in 2016 at all), and may not pass even then, the pro=3D</spa=
n><br><span>tections set forward in the customs bill are necessary to allow A=
merican com=3D</span><br><span>panies to continue to compete in the global m=
arketplace.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p di=3D</span><br><span>r=3D=
3D"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt=
=3D</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"font-weigh=
t: 700; text-decoration: und=3D</span><br><span>erline; vertical-align: base=
line;"&gt;Price of Passage&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D3D"=3D=
</span><br><span>ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); m=
argin-top: 0pt; mar=3D</span><br><span>gin-bottom: 0pt;"&gt;&lt;span style=3D=
3D"vertical-align: baseline;"&gt;In order to incl=3D</span><br><span>ude the=
permanent extension of the Internet Tax Freedom Act, McConnell had t=3D</sp=
an><br><span>o promise that a vote would be held this year on the Marketplac=
e Fairness Ac=3D</span><br><span>t.&amp;nbsp; That legislation grants states=
greater authority to collect sales t=3D</span><br><span>axes from online bu=
sinesses who sell products within their borders.&amp;nbsp; Wh=3D</span><br><=
span>ile McConnell himself opposes the bill, it was the only way to get the c=
usto=3D</span><br><span>ms bill (with the tax amendment attached) unstuck.&l=
t;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;span style=3D</span><br><span>=3D3D"backg=
round-color: rgba(255, 255, 255, 0); vertical-align: baseline;"&gt;Jus=3D</s=
pan><br><span>t because McConnell has promised it will be brought to a vote d=
oesn=3DE2=3D80=3D99=3D</span><br><span>t mean it will be a smooth process - t=
he Senate passed the Marketplace Fairn=3D</span><br><span>ess Act in 2013 wi=
th 69 votes, and most of the lawmakers who voted for it ar=3D</span><br><spa=
n>e still in the chamber.&amp;nbsp; Some lawmakers like Kelly Ayotte, who is=
facin=3D</span><br><span>g a tough reelection campaign this year, have vowe=
d to fight tooth-and-nail a=3D</span><br><span>gainst it.&amp;nbsp; Despite t=
hese detractors in the Senate, the real battle may=3D</span><br><span> occur=
in the House, where two competing proposals have been brought forward=3D</s=
pan><br><span>. &amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&=
lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;hr style=3D3D"color: rgba(0, 0=3D</span>=
<br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392)=3D</span><br><span>; box-sizing: content-box; border-style: solid;=
border-color: gray; height: 0=3D</span><br><span>px;"&gt;&lt;br&gt;Upcoming=
/Recent Updates&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3DA2 &=
amp;nbsp;Municipa=3D</span><br><span>l Bond Rule&lt;/div&gt;&lt;div&gt;=3DE2=
=3D80=3DA2 &amp;nbsp;Budget (Ir)Resolution&lt;/div&gt;&lt;div&gt;=3DE2=3D80=3D=
</span><br><span>=3DA2 &amp;nbsp;Puerto Rico&lt;/div&gt;&lt;div&gt;=3DE2=3D8=
0=3DA2 &amp;nbsp;Derivatives Agreement w. EU&lt;=3D</span><br><span>/div&gt;=
&lt;div&gt;=3DE2=3D80=3DA2 &amp;nbsp;Econ. Revitalization/Housing&lt;br&gt;&=
lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;di=3D</span><br><span>v&gt;Below the Rad=
ar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/div&gt;&lt;div&gt;Internat=
ional=3D</span><br><span> Tax Status &amp;nbsp;(Feb. 11)&lt;/div&gt;&lt;div&=
gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/=3D</span><br><span>div&gt;&=
lt;div&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Tal=
k of the Town &amp;=3D</span><br><span>nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Def=
ending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol=3D</span=
> <br><span>: Deficit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"background-color:=3D</span><br><span> rgba(255, 255, 255, 0);"&gt;=
The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span=3D</span><br><bloc=
kquote type=3D"cite"><span>&lt;/div&gt;&lt;div&gt;Debate Myths Challenged &a=
mp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the=3D</span><br></blockq=
uote><span> Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Ta=
x/Healthcare Policy &amp;nbsp;(=3D</span><br><span>Jan 20)&lt;/div&gt;&lt;di=
v&gt;&lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D</spa=
n><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=
on: -webkit-=3D</span><br><span>letterpress;"&gt;HRC's Tax Policy &amp;nbsp;=
(Jan. 17)&lt;/span&gt;&lt;br style=3D3D"color: rgb=3D</span><br><span>a(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D</s=
pan><br><span>80392);"&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-f=3D</span><br><span>ill-color: rgba(130, 98, 83, 0.098=
0392);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;=3D</span><br><span>(Jan. 1=
6)&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
posi=3D</span><br><span>tion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;G=
lass-Steagall, Take 2 &amp;nbsp=3D</span><br><span>;(Jan. 13)&lt;/div&gt;&lt=
;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=3D</span><br>=
<span>ition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3=
D"background-c=3D</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;2016 Tax=
Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;=3D</span><br><span>/div&g=
t;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-=3D</span><br><span>color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span styl=
e=3D3D"background-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;San=
ders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;di=3D<=
/span><br><span>v style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=
tion-fill-color: r=3D</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;s=
pan style=3D3D"background-color: rgba(255, 255=3D</span><br><span>, 255, 0);=
"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&=
lt;div style=3D</span><br><span>=3D3D"color: rgba(0, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130=3D</span><br><span>, 98, 83, 0.0980392);"=
&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br=
> <span>);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt=
;&lt;span style=3D3D"back=3D</span><br><span>ground-color: rgba(255, 255, 25=
5, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/spa=3D</span><br><span>n=
&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;n=
bsp;(Dec. 29) &amp;=3D</span><br><span>nbsp;&lt;/span&gt;&lt;span style=3D3D=
"background-color: rgba(255, 255, 255, 0);"&gt;Omnibu=3D</span><br><span>s R=
eview (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0,=
0, 0.701961);=3D</span><br><span> -webkit-composition-fill-color: rgba(130,=
98, 83, 0.0980392);"&gt;&lt;span style=3D3D=3D</span><br><span>"background-=
color: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14=3D</=
span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-composit=3D</span><br><span>ion-fill-color: rgba(130=
, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-col=3D</span><br><s=
pan>or: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span=
&gt;&lt;/div&gt;&lt;di=3D</span><br><span>v style=3D3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-composition-fill-color: r=3D</span><br><span>gba(130, 98, 8=
3, 0.0980392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255=3D</s=
pan><br><span>, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt=
;/div&gt;&lt;div style=3D3D"color: rgb=3D</span><br><span>a(0, 0, 0, 0.70196=
1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D</span><br><spa=
n>80392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=
&gt;Tax Exten=3D</span><br><span>der Negotiations &amp;nbsp;(Dec. 6)&amp;nbs=
p;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(=3D</span><br><spa=
n>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80=3D</span><br><span>392);"&gt;&lt;span style=3D3D"background-color: rgba(2=
55, 255, 255, 0);"&gt;Brown on HFT=3D</span><br><span> &amp;nbsp;(Dec. 4)&lt=
;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=3D=
</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
"&gt;&lt;span style=3D3D"=3D</span><br><span>background-color: rgba(255, 255=
, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;=3D</span><br><span>/=
span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-compositio=3D</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392);=
"&gt;&lt;span style=3D3D"background-color=3D</span><br><span>: rgba(255, 255=
, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: r=
gba(0, 0, 0=3D</span><br><span>, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"&gt;=3D</span><br><span>&lt;span style=3D3D"bac=
kground-color: rgba(255, 255, 255, 0);"&gt;----&lt;/span&gt;&lt;/div&gt;&lt;=
=3D</span><br><span>div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color:=3D</span><br><span> rgba(130, 98, 83, 0.0980392);"&gt=
;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/=
div&gt;&lt;br&gt;=3D</span><br><span>&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Feb=
11, 2016, at 7:47 PM, Dana &amp;lt;&lt;a href=3D3D"mailto:danac=3D</span><b=
r><span><a href=3D"mailto:[email-masked]">[email-masked]</a>"&gt;<a href=3D=
"mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wro=
te:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquot=3D</span><br><span>e type=3D=
3D"cite"&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" content=3D3D"t=
ext/html;=3D</span><br><span> charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&=
lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-t=3D</sp=
an><br><span>ype" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&=
lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;me=3D</span><br><span>ta h=
ttp-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&=
lt;div&gt;&lt;=3D</span><br><span>span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&g=
t;&lt;div&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/div&gt;&lt;div&gt;&lt;div s=
tyle=3D3D"=3D</span><br><span>color: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98=3D</span><br><span>, 83, 0.0980392); text-dec=
oration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div styl=3D</spa=
n><br><span>e=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=
color: rgba(13=3D</span><br><span>0, 98, 83, 0.0980392); text-decoration: -w=
ebkit-letterpress;"&gt;One thing the t=3D</span><br><span>wo parties agree i=
s that international tax reform is a fiscally necessary is=3D</span><br><spa=
n>sue to take up -- that Uncle Sam is leaving hundreds of billions of dollar=
s o=3D</span><br><span>n the table overseas annually. &amp;nbsp; But they wo=
uld also generally agree th=3D</span><br><span>at it is not going to get don=
e this year. &amp;nbsp;&lt;/div&gt;&lt;div style=3D3D"color: r=3D</span><br>=
<span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.=3D</span><br><span>0980392); text-decoration: -webkit-letterpress;"&gt=
;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"col=3D</span><br><span>or: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=3D</span><=
br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Under curr=
ent law, tho=3D</span><br><span>se profits are subject only to federal taxes=
if they are returned, or repatr=3D</span><br><span>iated, to the U.S. where=
they face a top rate of 35 percent. &amp;nbsp;Many comp=3D</span><br><span>=
anies avoid U.S. taxes on those earnings by simply leaving them overseas.&lt=
;/d=3D</span><br><span>iv&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=
1); -webkit-composition-fill-co=3D</span><br><span>lor: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-letterpress;"&gt;&lt;b=3D</span><br><span=
> r&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=
-composition-fi=3D</span><br><span>ll-color: rgba(130, 98, 83, 0.0980392); t=
ext-decoration: -webkit-letterpress=3D</span><br><span>;"&gt;There is bipart=
isan activity on the issue in both houses of Congress. Oba=3D</span><br><spa=
n>ma has a major reform proposal on the table. &amp;nbsp;So is this the year=
, in t=3D</span><br><span>he year of surprises?&lt;/div&gt;&lt;div style=3D3=
D"color: rgba(0, 0, 0, 0.701961); -we=3D</span><br><span>bkit-composition-fi=
ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=3D</span><br><spa=
n>webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"color: rg=
ba(0, 0, 0, 0.701961);=3D</span><br><span> -webkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decorati=3D</span><br><span>on: -webkit-le=
tterpress;"&gt;Best,&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.70=
=3D</span><br><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392); text-de=3D</span><br><span>coration: -webkit-letterpress;"&gt;&=
lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0,=3D</span><br><s=
pan> 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; te=3D</span><br><span>xt-decoration: -webkit-letterpress;"&gt;Dana&lt;/div=
&gt;&lt;div style=3D3D"color: rgba(0, 0=3D</span><br><span>, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=3D</span><br><sp=
an>; text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div=
style=3D3D"color: rgba=3D</span><br><span>(0, 0, 0, 0.701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.098=3D</span><br><span>0392); text-d=
ecoration: -webkit-letterpress;"&gt;&lt;div&gt;&lt;div class=3D3D"block bloc=
k=3D</span><br><span>-thehill-blocks ntv844166-128893-60429" id=3D3D"ntv8441=
66-128893-60429" style=3D3D=3D</span><br><span>"box-sizing: border-box; marg=
in-bottom: 23px;"&gt;&lt;hr style=3D3D"box-sizing: cont=3D</span><br><span>e=
nt-box; border-style: solid; border-color: gray; height: 0px;"&gt;&lt;p clas=
s=3D3D"=3D</span><br><span>" style=3D3D"box-sizing: border-box; margin: 0px 0=
px 15px; font-weight: bold;"=3D</span><br><blockquote type=3D"cite"><span>&l=
t;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;/div&gt;&lt;/div&g=
t;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0,=3D</span><br></blockquote=
> <span> 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80392);=3D</span><br><span> text-decoration: -webkit-letterpress;"&gt;Reform=
s in the area of international=3D</span><br><span> tax deal with both the re=
patriation of foreign-derived profits and the issu=3D</span><br><span>e of c=
orporate inversions. &amp;nbsp;Testifying today, Treasury Secretary Jack L=3D=
</span><br><span>ew encouraged the parties in Congress to overcome their dif=
ferences on both,=3D</span><br><span> which he believes surmountable: &amp;n=
bsp;=3DE2=3D80=3D9CI just want to underscore th=3D</span><br><span>e urgency=
of dealing with inversions =3DE2=3D80=3DA6 We can=3DE2=3D80=3D99t wait a ye=
ar t=3D</span><br><span>o deal with this,=3DE2=3D80=3D9D Lew said during a S=
enate Finance hearing on the O=3D</span><br><span>bama administration=3DE2=3D=
80=3D99s budget. Congress could pass narrow legislation=3D</span><br><span> o=
n inversions, he said, even if broader reform of the international system i=3D=
</span><br><span>s preferable.&amp;nbsp;&lt;/div&gt;&lt;div style=3D3D"color=
: rgba(0, 0, 0, 0.701961); -webk=3D</span><br><span>it-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -w=3D</span><br><span>ebki=
t-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0=
, 0, 0.701961); -=3D</span><br><span>webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392);"&gt;&lt;b style=3D3D"te=3D</span><br><span>xt-decorati=
on: -webkit-letterpress;"&gt;&lt;u&gt;Stirrings in the Senate&lt;/u&gt;&lt;/=
b&gt;&lt;/div=3D</span><br><blockquote type=3D"cite"><span>&lt;div style=3D3=
D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=3D</span><br=
> </blockquote><span>r: rgba(130, 98, 83, 0.0980392);"&gt;&lt;b style=3D3D"te=
xt-decoration: -webkit-lette=3D</span><br><span>rpress;"&gt;&lt;u&gt;&lt;br&=
gt;&lt;/u&gt;&lt;/b&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0=
.701961); -=3D</span><br><span>webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration=3D</span><br><span>: -webkit-letterpress;"&gt=
;Sen. Schumer also announced today that he is in cont=3D</span><br><span>act=
with Speaker Ryan about coming to an agreement on repatriating corporate=3D=
</span><br><span> profits. &amp;nbsp;They were unable to come to an agreemen=
t last year on a simi=3D</span><br><span>lar measure put forth as part of a l=
arger reform effort. &amp;nbsp;Schumer said t=3D</span><br><span>oday: =3DE2=
=3D80=3D9CWe=3DE2=3D80=3D99re trying to bridge over, of course, the divide b=
e=3D</span><br><span>tween existing proposals. &amp;nbsp;I remain at the tab=
le ready to work.=3DE2=3D80=3D9D=3D</span><br><span> &amp;nbsp;&lt;/div&gt;&=
lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D</span=
> <br><span>on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=
bkit-letter=3D</span><br><span>press;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div styl=
e=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=3D</span><br><span>ositi=
on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=3D</=
span><br><span>etterpress;"&gt;One of the key differences between the partie=
s concerns whether=3D</span><br><span> the money raised from tax reform shou=
ld be turn into government revenue for=3D</span><br><span> more spending, or=
used to pay down the debt or pass tax cuts. &amp;nbsp;After t=3D</span><br>=
<span>he Senate Finance hearing yesterday, Chair Hatch said: &amp;nbsp;=3DE2=
=3D80=3D9CI'm ac=3D</span><br><span>tually working on international, but I j=
ust don't think it's going to get do=3D</span><br><span>ne this year, becaus=
e, you know, let's face it, the Democrats are going to w=3D</span><br><span>=
ant to raise revenue. &amp;nbsp;They want money to spend.=3DE2=3D80=3D9D &am=
p;nbsp;&lt;/div&gt;&lt;=3D</span><br><span>div style=3D3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color:=3D</span><br><span> rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/=
=3D</span><br><span>div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961)=
; -webkit-composition-fill-c=3D</span><br><span>olor: rgba(130, 98, 83, 0.09=
80392); text-decoration: -webkit-letterpress;"&gt;A=3D</span><br><span>t tha=
t same hearing, Sen. Shelby pushed a corporate integration plan he is d=3D</=
span><br><span>eveloping to eliminate the double taxation of corporate incom=
e by providing c=3D</span><br><span>orporations a dividend deduction. &amp;n=
bsp;He's awaiting a score by the Joint C=3D</span><br><span>ommittee on Taxa=
tion. &amp;nbsp;Dividend deductions are usually quite expensive a=3D</span><=
br><span>nd regressive, so it will a feat to attract any Democratic support,=
especial=3D</span><br><span>ly for him.&amp;nbsp;&lt;/div&gt;&lt;div style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit=3D</span><br><span>-composition-f=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -web=3D</span><br>=
<span>kit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"color: r=
gba(0, 0, 0, 0.701961); -w=3D</span><br><span>ebkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"&gt;&lt;b style=3D3D"tex=3D</span><br><span>t-d=
ecoration: -webkit-letterpress;"&gt;&lt;u&gt;Brady's Push&amp;nbsp;&lt;/u&gt=
;&lt;/b&gt;&lt;/div&gt;&lt;div s=3D</span><br><span>tyle=3D3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba=3D</span><br><span>(1=
30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;=
&lt;/div&gt;&lt;=3D</span><br><span>div style=3D3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fill-color:=3D</span><br><span> rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterpress;"&gt;Meanwh=3D</span><br><=
span>ile, Ways and Means Chair Kevin Brady has said that he wants a vote thi=
s yea=3D</span><br><span>r on moving the United States into a territorial ta=
x system, which would per=3D</span><br><span>manently exempt US-based busine=
sses from paying taxes on income earned abroa=3D</span><br><span>d. &amp;nbs=
p;He also wants to lower the corporate rate to 20 percent. &amp;nbsp;In t=3D=
</span><br><span>he face of these proposals it is difficult to see what sort=
of compromise ca=3D</span><br><span>n be found between Democrats and Republ=
icans, as the former may be more preo=3D</span><br><span>ccupied just keepin=
g alive the idea that foreign profits should be taxed at a=3D</span><br><spa=
n>ll. =3DE2=3D80=3D9CThe goal of these reforms are not to generate more spen=
ding,=3DE2=3D</span><br><span>=3D80=3D9D Brady said. =3DE2=3D80=3D9CIt=3DE2=3D=
80=3D99s to bring back real dollars to be re=3D</span><br><span>invested in t=
he United States.=3DE2=3D80=3D9D&lt;/div&gt;&lt;div style=3D3D"color: rgba(0=
, 0,=3D</span><br><span> 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392);=3D</span><br><span> text-decoration: -webkit-letter=
press;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(=3D</span><b=
r><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=
, 0.0980=3D</span><br><span>392); text-decoration: -webkit-letterpress;"&gt;=
Brady has been advocating for i=3D</span><br><span>nternational tax reform s=
ince he took over Ways and Means. &amp;nbsp;Last month,=3D</span><br><span> h=
e spoke with Sen. Hatch and they were both committed to getting something d=3D=
</span><br><span>one. &amp;nbsp;Senior Republicans believe the country=3DE2=3D=
80=3D99s international ta=3D</span><br><span>x problems =3DE2=3D80=3D94 inve=
rsions and Europe going after revenues from U.S. co=3D</span><br><span>mpani=
es among them =3DE2=3D80=3D94 are urgent. &amp;nbsp;But Brady strongly hinte=
d tha=3D</span><br><span>t all that work would be aimed at setting things up=
for 2017, when Republica=3D</span><br><span>ns want =3DE2=3D80=3D9Cpro-grow=
th tax reform under a Republican president.=3DE2=3D80=3D9D=3D</span><br><spa=
n> Perhaps that=3DE2=3D80=3D99s no huge shock, but it does seem to set up so=
mething o=3D</span><br><span>f a disconnect, given all the talk of urgency.&=
lt;/div&gt;&lt;div style=3D3D"color: rgb=3D</span><br><span>a(0, 0, 0, 0.701=
961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D</span><br><s=
pan>80392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;=
&lt;div style=3D3D"color=3D</span><br><span>: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-color: rgba(130, 98, 83,=3D</span><br><span> 0.0980392);=
text-decoration: -webkit-letterpress;"&gt;Brady and his supporters=3D</span=
> <br><span> have been pushing the idea that American money is either being t=
axed by oth=3D</span><br><span>er countries or being taken over by foreign c=
ompetitors in an inversion -- t=3D</span><br><span>ypically, when an America=
n company incorporates abroad so its earnings are n=3D</span><br><span>o lon=
ger subject to American taxes. &amp;nbsp;Brady says the result is an erosio=3D=
</span><br><span>n of our tax base and a lock-out effect of American capital=
being =3DE2=3D80=3D9Ct=3D</span><br><span>rapped=3DE2=3D80=3D9D abroad that=
can be solved by fixing our uncompetitive tax co=3D</span><br><span>de.&lt;=
/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-f=3D</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decora=
tion: -webkit-letterpres=3D</span><br><span>s;"&gt;&lt;br&gt;&lt;/div&gt;&lt=
;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=3D</span><b=
r><span>ion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;b style=3D3D"t=
ext-decoration: -=3D</span><br><span>webkit-letterpress;"&gt;&lt;u&gt;Presid=
ential Proposal&lt;/u&gt;&lt;/b&gt;&lt;/div&gt;&lt;div style=3D3D"col=3D</sp=
an><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 98, 8=3D</span><br><span>3, 0.0980392); text-decoration: -webkit-let=
terpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D=3D</span><br><span>"c=
olor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D=
</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&g=
t;The President=3DE2=3D80=3D</span><br><span>=3D99s FY 2017 budget contains a=
surprising source of new revenue to pay for i=3D</span><br><span>ts spendin=
g programs =3DE2=3D80=3D93 a major piece of international tax policy ref=3D<=
/span><br><span>orm: a six-year, $478 billion public-works program for highw=
ay, bridge and t=3D</span><br><span>ransit upgrades, half of it to be financ=
ed with a one-time, 14 percent tax o=3D</span><br><span>n U.S. companies=3DE=
2=3D80=3D99 overseas profits and a 19 percent rate thereafter.=3D</span><br>=
<span> &amp;nbsp;The issue of companies holding foreign profits at locations=
abroad, w=3D</span><br><span>here they are exempt from taxation until repat=
riated, has vexed policy maker=3D</span><br><span>s on both sides for some t=
ime. &amp;nbsp;It=3DE2=3D80=3D99s estimated that these profi=3D</span><br><s=
pan>ts add up to nearly $2 trillion.&amp;nbsp;&lt;/div&gt;&lt;div style=3D3D=
"color: rgba(0, 0, 0=3D</span><br><span>, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98, 83, 0.0980392); t=3D</span><br><span>ext-decoration: -=
webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba=
(0,=3D</span><br><span> 0, 0, 0.701961); -webkit-composition-fill-color: rgb=
a(130, 98, 83, 0.098039=3D</span><br><span>2); text-decoration: -webkit-lett=
erpress;"&gt;The issue of companies holding fo=3D</span><br><span>reign prof=
its at locations abroad, thereby exempt from taxation unless those=3D</span>=
<br><span> profits are brought home, has vexed policy makers on both sides f=
or some ti=3D</span><br><span>me. &amp;nbsp;Microsoft Corp., Apple Inc., Goo=
gle Inc. and five other tech firms=3D</span><br><span> now account for more t=
han a fifth of the $2.10 trillion in profits that U.S=3D</span><br><span>. c=
ompanies are holding overseas. &amp;nbsp;In keeping with the idea that Obama=
=3DE2=3D</span><br><span>=3D80=3D99s final budget is =3DE2=3D80=3D9Cmore pol=
itics than policy,=3DE2=3D80=3D9D these r=3D</span><br><span>evenue-gaining p=
roposals are meant to spark discussion more so than be a mod=3D</span><br><s=
pan>el for laws going forward.&amp;nbsp;&lt;/div&gt;&lt;br&gt;&lt;div style=3D=
3D"text-decoration: -we=3D</span><br><span>bkit-letterpress;"&gt;&lt;div&gt;=
&lt;div class=3D3D"block block-thehill-blocks ntv844166-1=3D</span><br><span=
> 28893-60429" id=3D3D"ntv844166-128893-60429" style=3D3D"box-sizing: border-=
box; m=3D</span><br><span>argin-bottom: 23px;"&gt;&lt;hr style=3D3D"box-sizi=
ng: content-box; border-style: sol=3D</span><br><span>id; border-color: gray=
; height: 0px;"&gt;&lt;p class=3D3D"" style=3D3D"box-sizing: bor=3D</span><b=
r><span>der-box; margin: 0px 0px 15px; font-weight: bold;"&gt;&lt;/p&gt;&lt;=
/div&gt;&lt;/div&gt;&lt;div&gt;&lt;div=3D</span><br><blockquote type=3D"cite=
"><span>&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"color: rgba(0, 0, 0, 0.701961);=3D</span><br></blockquote><span> -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=3D=
</span><br><span>on: -webkit-letterpress;"&gt;Upcoming/Recent Updates&lt;/sp=
an&gt;&lt;div style=3D3D"color:=3D</span><br><span> rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-color: rgba(130, 98, 83, 0=3D</span><br><span>.098=
0392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;d=
iv style=3D3D"co=3D</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-co=
mposition-fill-color: rgba(130, 98, 8=3D</span><br><span>3, 0.0980392); text=
-decoration: -webkit-letterpress;"&gt;=3DE2=3D80=3DA2 &amp;nbsp;Custom=3D</s=
pan><br><span>s Bill&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-compositio=3D</span><br><span>n-fill-color: rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterp=3D</span><br><span>ress;"&gt;=3D=
E2=3D80=3DA2 &amp;nbsp;Municipal Bond Rule&lt;/div&gt;&lt;div style=3D3D"col=
or: rgba(0,=3D</span><br><span> 0, 0, 0.701961); -webkit-composition-fill-co=
lor: rgba(130, 98, 83, 0.098039=3D</span><br><span>2); text-decoration: -web=
kit-letterpress;"&gt;=3DE2=3D80=3DA2 &amp;nbsp;Budget Irresoluti=3D</span><b=
r><span>on&amp;nbsp;&lt;br&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;In=
ternational Tax Status &amp;nbsp;(Feb. 11)&lt;/di=3D</span><br><span>v&gt;&l=
t;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obam=
a's FY17 Budget &amp;n=3D</span><br><span>bsp;(Feb. 9)&amp;nbsp;&lt;div&gt;T=
ax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending=3D</spa=
n><br><span> Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: D=
eficit/Debt Dormancy (Jan. 2=3D</span><br><span>8)&lt;/div&gt;&lt;div&gt;&lt=
;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The Fe=3D</sp=
an><br><span>d Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div=
&gt;&lt;div&gt;Debate Myths Challen=3D</span><br><span>ged &amp;nbsp;(Jan. 2=
5)&lt;/div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/d=
iv=3D</span><br><blockquote type=3D"cite"><span>&lt;div&gt;Sanders' Tax/Heal=
thcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;HRC's Tax Poli=3D</sp=
an><br></blockquote><span>cy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;div&gt;2016 Ta=
x Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;=3D</span><br><span>&lt;=
div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div&gt;&lt;=
span style=3D3D"backgro=3D</span><br><span>und-color: rgba(255, 255, 255, 0)=
;"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/s=3D</span><br><span>pan=
&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;San=3D</span><br><span>ders Proposals/GS &amp;amp; TBTF (Ja=
n. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"backgr=3D</span=
> <br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposal=
s &amp;nbsp;(Jan. 5=3D</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=
&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D</span><br>=
<blockquote type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &amp=
;nbsp;&lt;/span&gt;&lt;span style=3D3D"backgro=3D</span><br></blockquote><sp=
an>und-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbs=
p;&lt;/span&gt;&lt;=3D</span><br><span>span style=3D3D"background-color: rgb=
a(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nb=3D</span><br><span>sp;&=
lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;Omnibus R=3D</span><br><span>eview (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;d=
iv&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><br><span>5=
5, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&g=
t;&lt;div&gt;&lt;span style=3D</span><br><span>=3D3D"background-color: rgba(=
255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 1=3D</span><br><span>0)&l=
t;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba=
(255, 255, 255, 0);=3D</span><br><span>"&gt;Customs Bill &amp;nbsp;(Dec. 8)&=
lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-col=3D</sp=
an><br><span>or: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;=
nbsp;(Dec. 6)&amp;nbsp;&lt;=3D</span><br><span>/span&gt;&lt;/div&gt;&lt;div&=
gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;B=3D</s=
pan><br><span>rown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div=
&gt;&lt;span style=3D3D"background-color:=3D</span><br><span> rgba(255, 255,=
255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&=
lt;/div=3D</span><br><blockquote type=3D"cite"><span>&lt;/div&gt;&lt;/div&gt=
;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255,=
255,=3D</span><br></blockquote><span> 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/d=
iv&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=3D</=
span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;On=
Feb 10, 2016, at 7:41 PM, Dana &amp;lt;&lt;a hre=3D</span><br><span>f=3D3D"=
<a href=3D"mailto:[email-masked]">mailto:[email-masked]</a>"&gt;=
<a href=3D"mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&a=
mp;gt; wrote:&lt;br&gt;&lt;br=3D</span><br><blockquote type=3D"cite"><span>&=
lt;/div&gt;&lt;blockquote type=3D3D"cite"&gt;&lt;div&gt;&lt;meta http-equiv=3D=
3D"content-type" cont=3D</span><br></blockquote><span>ent=3D3D"text/html; ch=
arset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&=
gt;&lt;meta http-e=3D</span><br><span>quiv=3D3D"content-type" content=3D3D"t=
ext/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/sp=3D</span><br>=
<span>an&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" co=
ntent=3D3D"text/html; charse=3D</span><br><span>t=3D3Dutf-8"&gt;&lt;div&gt;&=
lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"cont=
ent-type" co=3D</span><br><span>ntent=3D3D"text/html; charset=3D3Dutf-8"&gt;=
&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;sp=
an=3D</span><br><span> style=3D3D"background-color: rgba(255, 255, 255, 0);"=
&gt;Mike &amp;amp; Co. --&lt;/span=3D</span><br><blockquote type=3D"cite"><s=
pan>&lt;br&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt=
;"&gt;&lt;span style=3D3D=3D</span><br></blockquote><span>"background-color:=
rgba(255, 255, 255, 0);"&gt;The Chair of the Federal Reserve=3D</span><br><=
span> went before House Financial Services to provide a report on the nation=
's ec=3D</span><br><span>onomic condition, a kind of bi-annual checkup. No n=
ews was made, no firework=3D</span><br><span>s went off and no market mood s=
wings occurred.&amp;nbsp; As for the Fed's next m=3D</span><br><span>ove, it=
's wait-and-see a little while longer.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p=
class=3D3D"Ms=3D</span><br><span>oNormal" style=3D3D"margin-bottom: 0.0001p=
t;"&gt;&lt;span style=3D3D"background-color:=3D</span><br><span> rgba(255, 2=
55, 255, 0);"&gt;We thought it might happen in March, signs pointed=3D</span=
> <br><span> to it.&amp;nbsp; Now, the guess is June (sound familiar?) &amp;n=
bsp;For details, do=3D</span><br><span>n't wait, see below.&lt;/span&gt;&lt;=
/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom=3D</span><br><spa=
n>: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;Best,=3D</span><br><span>&lt;/span&gt;&lt;span style=3D3D"background-=
color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/spa=3D</span><br><span>n&g=
t;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"=
&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: rgba(255, 255,=
255, 0);"&gt;Dana&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span=
> <br><span>"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;span styl=
e=3D3D"background-col=3D</span><br><span>or: rgba(255, 255, 255, 0);"&gt;---=
-------&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" sty=3D</span><br><=
span>le=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D3D"backgrou=
nd-color: rgba(255, 2=3D</span><br><span>55, 255, 0);"&gt;Economic Checkup&l=
t;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"ma=3D</sp=
an><br><span>rgin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color=
: rgba(255, 255, 255,=3D</span><br><span> 0);"&gt;Fed Chair Yellen testified=
before House Financial Services this mornin=3D</span><br><span>g for the Fe=
deral Reserve=3DE2=3D80=3D99s bi-annual Monetary Policy Report.&amp;nbsp; T=3D=
</span><br><span>hese appearances allow Yellen to explain the Fed=3DE2=3D80=3D=
99s, actually the Fed=3D</span><br><span>eral Open Market Committee (FOMC)=3D=
E2=3D80=3D99s, analysis and projections regard=3D</span><br><span>ing Americ=
a's economic performance as well as to signal the factors underlyi=3D</span>=
<br><span>ng its actions in the months ahead. &amp;nbsp;&lt;br&gt;&lt;/span&=
gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorm=3D</span><br><span>al" style=3D3D"marg=
in-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba=3D</span=
> <br><span>(255, 255, 255, 0);"&gt;The rate change in December 2015 was the f=
irst time the=3D</span><br><span> Fed raised rates since 2006 -- some worry t=
hat even a modest increase in ra=3D</span><br><span>tes at this juncture wou=
ld&amp;nbsp;further&amp;nbsp;slow&amp;nbsp;already limited&amp;nbsp;=3D</spa=
n><br><span>economic&amp;nbsp;growth&amp;nbsp;after years of uncertainty.&lt=
;/span&gt;&lt;/p&gt;&lt;p class=3D3D"=3D</span><br><span>MsoNormal" style=3D=
3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-colo=3D</span=
> <br><span>r: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;&lt;u&gt;The Basics&lt;/u=
&gt;&lt;/b&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span><br=
> <span>"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D=
3D"background-col=3D</span><br><span>or: rgba(255, 255, 255, 0);"&gt;The bot=
tom line: the FOMC won=3DE2=3D80=3D99t rollbac=3D</span><br><span>k rates in=
March and it=3DE2=3D80=3D99s not likely to raise them either.&amp;nbsp; The=
=3D</span><br><span> Fed likes what it sees in the labor market, wage growth=
looks strong, and e=3D</span><br><span>merging market missteps continue to b=
e a threat to the US economy but perhap=3D</span><br><span>s not an immediat=
e one.&amp;nbsp; The next rate move is almost certain to be an i=3D</span><b=
r><span>ncrease but it could wait until June or later.&amp;nbsp;&lt;/span&gt=
;&lt;/p&gt;&lt;p class=3D3D"M=3D</span><br><span>soNormal" style=3D3D"margin=
-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color=3D</span><br><sp=
an>: rgba(255, 255, 255, 0);"&gt;Yellen reiterated much of the FOMC statemen=
t from=3D</span><br><span> last month: &amp;nbsp;the labor market remains st=
rong, but shows some signs of r=3D</span><br><span>emaining slack, that the l=
ow inflation we have seen is caused by =3DE2=3D80=3D9Ctr=3D</span><br><span>=
ansitory=3DE2=3D80=3D9D effects (low energy prices), and that global market u=
ncert=3D</span><br><span>ainty creates some level of risk for slow growth at=
home and abroad.&amp;nbsp; T=3D</span><br><span>hough Yellen did not make a=
prediction on how long these transitory market e=3D</span><br><span>ffects w=
ould last, a number of forecasts for oil prices show the dip lasting=3D</spa=
n><br><span> through 2016.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal"=
style=3D3D"margin-bottom: 11pt=3D</span><br><span>;"&gt;&lt;span style=3D3D=
"background-color: rgba(255, 255, 255, 0);"&gt;Expanding on gl=3D</span><br>=
<span>obal growth issues, Yellen said "These developments, if they prove per=
sisten=3D</span><br><span>t, could weigh on the outlook for economic activit=
y and the labor market, al=3D</span><br><span>though declines in longer-term=
interest rates and oil prices could provide s=3D</span><br><span>ome offset=
," she added: "Foreign economic developments, in particular, pose r=3D</span=
> <br><span>isks to US economic growth."&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;=
p class=3D3D"MsoNormal" style=3D3D=3D</span><br><span>"margin-bottom: 11pt;"=
&gt;&lt;b&gt;&lt;u style=3D3D"background-color: rgba(255, 255, 255, 0=3D</sp=
an><br><span>);"&gt;Partisan Review&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=
=3D3D"MsoNormal" style=3D3D"margin-bottom=3D</span><br><span>: 11pt;"&gt;&lt=
;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The GOP i=3D<=
/span><br><span>s generally critical of "accommodative" (lower) Fed rates.&a=
mp;nbsp;&amp;nbsp; High-=3D</span><br><span>net-worth individuals benefit th=
e most from high rates through dividends and=3D</span><br><span> interest fr=
om savings.&amp;nbsp;&amp;nbsp;Low rates allow more growth for the middl=3D<=
/span><br><span>e- and lower-classes&amp;nbsp;at the risk of inflation,&amp;=
nbsp;tacitly supporting D=3D</span><br><span>emocrats=3DE2=3D80=3D99 progres=
sive fiscal policy goals.&amp;nbsp;&amp;nbsp;Some conservat=3D</span><br><sp=
an>ive economists have gone so far as to blame low interest rates pushed by t=
he=3D</span><br><span> Fed in the 1990=3DE2=3D80=3D99s for the market meltdo=
wn in 2007, claiming that ch=3D</span><br><span>eap credit was the cause of t=
he overheated housing market.&lt;/span&gt;&lt;/p&gt;&lt;p clas=3D</span><br>=
<span>s=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&gt;&lt;b&gt;&lt;u s=
tyle=3D3D"background-col=3D</span><br><span>or: rgba(255, 255, 255, 0);"&gt;=
Strong Labor Market&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=3D</s=
pan><br><span>ormal" style=3D3D"margin-bottom: 11pt;"&gt;&lt;span style=3D3D=
"background-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;Discussin=
g the labor market in greater detail, Yellen po=3D</span><br><span>inted to t=
he cumulative increase in employment since 2010 of 13 million jobs=3D</span>=
<br><span>.&amp;nbsp; The rate in January fell to 4.9 percent, 0.8 points be=
low its level o=3D</span><br><span>ne year ago; measures of labor market con=
ditions such as the number of peopl=3D</span><br><span>e who are working par=
t-time but want to move to full-time positions and the n=3D</span><br><span>=
umber of individuals who want to work but haven=3DE2=3D80=3D99t searched rec=
ently a=3D</span><br><span>re also decreasing steadily.&amp;nbsp; Regarding t=
hese broader labor market indi=3D</span><br><span>cators Yellen testified th=
at =3DE2=3D80=3D9C=3DE2=3D80=3DA6&amp;nbsp;these measures remain a=3D</span>=
<br><span>bove the levels seen prior to the recession, suggesting that some s=
lack in l=3D</span><br><span>abor markets remains. Thus, while labor market c=
onditions have improved subs=3D</span><br><span>tantially, there is still ro=
om for further sustainable improvement."&lt;/span&gt;&lt;=3D</span><br><span=
> /p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&gt;&lt;b=
&gt;&lt;u style=3D3D"back=3D</span><br><span>ground-color: rgba(255, 255, 25=
5, 0);"&gt;Forward Guidance&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D=3D=
</span><br><span>"MsoNormal" style=3D3D"margin-bottom: 11pt;"&gt;&lt;span st=
yle=3D3D"background-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;A=
s always, Yellen was careful not to give hints on w=3D</span><br><span>hat t=
he Fed is planning to do in future meetings; speaking on the path forwa=3D</=
span><br><span>rd for the Fed Funds rate Yellen said =3DE2=3D80=3D9COf cours=
e, monetary policy is=3D</span><br><span> by no means on a preset course. Th=
e actual path of the federal funds rate w=3D</span><br><span>ill depend on w=
hat incoming data tell us about the economic outlook, and we w=3D</span><br>=
<span>ill regularly reassess what level of the federal funds rate is consist=
ent wi=3D</span><br><span>th achieving and maintaining maximum employment an=
d 2 percent inflation.=3DE2=3D80=3D</span><br><span>=3D9D&lt;/span&gt;&lt;/p=
&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&gt;&lt;span=
st=3D</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;Yellen was asked about the=3D</span><br><span> chances of the FOMC rolling=
back the rate hike it announced in December: &amp;n=3D</span><br><span>bsp;=
"I do not expect the FOMC is going to be soon in the situation where it'=3D<=
/span><br><span>s necessary to cut rates If the FOMC delayed the start of po=
licy normalizati=3D</span><br><span>on for too long, it might have to tighte=
n policy relatively abruptly in the f=3D</span><br><span>uture to keep the e=
conomy from overheating and inflation from significantly o=3D</span><br><spa=
n>vershooting its objective. Such an abrupt tightening could increase the ri=
sk=3D</span><br><span> of pushing the economy into recession."&amp;nbsp;&lt;=
/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorm=3D</span><br><span>al" style=3D3=
D"margin-bottom: 11pt;"&gt;&lt;b&gt;&lt;u style=3D3D"background-color: rgba(=
255=3D</span><br><span>, 255, 255, 0);"&gt;Comment on Dodd-Frank&lt;/u&gt;&l=
t;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" sty=3D</span><br><span>le=3D3D=
"margin-bottom: 11pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 25=
5, 2=3D</span><br><span>55, 0);"&gt;During the Q&amp;amp;A portion of her te=
stimony, Yellen was asked about=3D</span><br><span> financial regulation, bo=
th in terms of breaking up the banks and enforcing t=3D</span><br><span>he r=
egulations brought on by Dodd-Frank.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p c=
lass=3D3D"MsoNorm=3D</span><br><span>al" style=3D3D"margin-bottom: 11pt;"&gt=
;&lt;span style=3D3D"background-color: rgba(255=3D</span><br><span>, 255, 25=
5, 0);"&gt;In response to being asked if the Fed is trying to break up=3D</s=
pan><br><span> the banks, she responded:&amp;nbsp;"We are using our powers t=
o make sure that a=3D</span><br><span> systemically important institution co=
uld fail, and it would not have system=3D</span><br><span>ic consequences fo=
r the country." Her answer was interesting, because she's n=3D</span><br><sp=
an>ot outright saying the banks will be broken up or reduced, just that the =
Fed=3D</span><br><span> is trying to ensure that even if they did fail, it w=
ouldn't negatively effe=3D</span><br><span>ct the economy.&lt;/span&gt;&lt;/=
p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11p=3D</span><br>=
<span>t;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&=
gt;Yellen was als=3D</span><br><span>o asked about the burden of new Dodd-Fra=
nk regulations on banks. She respond=3D</span><br><span>ed: "For our part, w=
e're focused on doing everything that we conceivably can=3D</span><br><span>=
to minimize and reduce the burden on these banking organizations. We've bee=
=3D</span><br><span>n conducting an EGRPRA&amp;nbsp;review to identify poten=
tial burdens that our re=3D</span><br><span>gulations impose." An EGRPRA rev=
iew is connected to the Economic Growth and R=3D</span><br><span>egulatory P=
aperwork Reduction Act, which requires regulations imposed on fin=3D</span><=
br><span>ancial institutions to be reviewed by the agencies at least once ev=
ery 10 ye=3D</span><br><span>ars. The purpose is to prevent&amp;nbsp;burdens=
ome&amp;nbsp;regulations that could h=3D</span><br><span>inder a&amp;nbsp;ba=
nk's ability to serve its customers.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p c=
lass=3D</span><br><span>=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&gt=
;&lt;b&gt;&lt;u style=3D3D"background-colo=3D</span><br><span>r: rgba(255, 2=
55, 255, 0);"&gt;The Bottom Line&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D=
3D"MsoNormal=3D</span><br><span>" style=3D3D"margin-bottom: 11pt;"&gt;&lt;sp=
an style=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0);"=
&gt;Fed watchers make their living by trying to predict what the FO=3D</span=
> <br><span>MC will or won=3DE2=3D80=3D99t do at their meetings, and on days w=
hen Yellen is sc=3D</span><br><span>heduled to testify before Congress you c=
an bet that they=3DE2=3D80=3D99re listenin=3D</span><br><span>g intently.&am=
p;nbsp; While Yellen was careful not to project the Fed=3DE2=3D80=3D99s m=3D=
</span><br><span>oves, the general sentiment in the markets is that FOMC won=
=3DE2=3D80=3D99t be rai=3D</span><br><span>sing rates at its March meeting.&=
amp;nbsp; The CME Group FedWatch tool, which es=3D</span><br><span>timates FO=
MC rate hikes based on its futures prices, predicts a 95% probabil=3D</span>=
<br><span>ity that the Fed will maintain its current rate target in March.&a=
mp;nbsp; Some f=3D</span><br><span>orecasters go even further -- expecting t=
hat the funds rate won=3DE2=3D80=3D99t be=3D</span><br><span> raised all yea=
r.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"ma=
rgin-bot=3D</span><br><span>tom: 11pt;"&gt;&lt;span style=3D3D"background-co=
lor: rgba(255, 255, 255, 0);"&gt;Trader=3D</span><br><span>s see the ongoing=
economic struggles of emerging economies, particularly in C=3D</span><br><s=
pan>hina, as evidence that the Fed won=3DE2=3D80=3D99t continue with its sch=
eduled 4 r=3D</span><br><span>ate hikes this year.&amp;nbsp; Certainly, cons=
idering the testimony today that 1=3D</span><br><span>) continued emerging m=
arket uncertainty can weigh down the US economy and 2)=3D</span><br><span> t=
hat poor performance in the US economy would cause the Fed to change cours=3D=
</span><br><span>e on its rate hike schedule, a link between poor emerging m=
arket performance=3D</span><br><span> and fewer Fed rate hikes seems plausib=
le.&amp;nbsp; Certainly the trading on Fe=3D</span><br><span>d fund futures i=
ndicates that the markets believe this is the case.&lt;/span&gt;&lt;/=3D</sp=
an><br><span>p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt=
;"&gt;&lt;span style=3D3D"backg=3D</span><br><span>round-color: rgba(255, 25=
5, 255, 0);"&gt;-------&lt;/span&gt;&lt;/p&gt;Recent Updates&lt;div&gt;&lt;=3D=
</span><br><span>br&gt;&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;nbsp=
;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Bu=3D</span><br><span>dget &am=
p;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&=
lt;br&gt;&lt;div&gt;De=3D</span><br><span>fending Dodd-Frank &amp;nbsp;(Feb.=
2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (=3D</span><br><sp=
an>Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba=
(255, 255, 255, 0);"=3D</span><br><blockquote type=3D"cite"><span>The Fed Ho=
lds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;De=
bate Myths C=3D</span><br></blockquote><span>hallenged &amp;nbsp;(Jan. 25)&l=
t;/div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21=3D</span><=
br><span>)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(J=
an 20)&lt;/div&gt;&lt;div&gt;&lt;span st=3D</span><br><span>yle=3D3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=3D</span><br><=
span>130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;HRC'=
s Tax Po=3D</span><br><span>licy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br styl=
e=3D3D"color: rgba(0, 0, 0, 0.701961); -web=3D</span><br><span>kit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;div style=3D3D"col=3D</=
span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=
gba(130, 98, 8=3D</span><br><span>3, 0.0980392);"&gt;2016 Tax Agenda on the H=
ill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div style=3D3D=3D</span><br><span>"co=
lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D=
</span><br><span>8, 83, 0.0980392);"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Ja=
n. 13)&lt;/div&gt;&lt;div style=3D3D=3D</span><br><span>"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D</span><br><span>=
8, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);=3D</span><br><span>"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt=
;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgb=3D</span><br><span>a(0, 0=
, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D</s=
pan><br><span>80392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 25=
5, 255, 0);"&gt;Sanders P=3D</span><br><span>roposals/GS &amp;amp; TBTF (Jan=
. 7)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0=3D</span=
> <br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392);"&gt;=3D</span><br><span>&lt;span style=3D3D"background-color: rgba=
(255, 255, 255, 0);"&gt;Sanders' Fin Reg P=3D</span><br><span>roposals &amp;=
nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0=
, 0.701=3D</span><br><span>961); -webkit-composition-fill-color: rgba(130, 9=
8, 83, 0.0980392);"&gt;&lt;span s=3D</span><br><span>tyle=3D3D"background-co=
lor: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal P=3D</span><br><spa=
n>olicy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-color=
: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;Year-End Review: Fin. Reg.=
&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-co=3D</span><br><span>=
lor: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;=
&lt;span style=3D3D"ba=3D</span><br><span>ckground-color: rgba(255, 255, 255=
, 0);"&gt;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/di=3D</span><br><span>v&=
gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=
ll-col=3D</span><br><span>or: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span sty=
le=3D3D"background-color: rgba(255=3D</span><br><span>, 255, 255, 0);"&gt;Om=
nibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=
3D=3D</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rgba(130, 9=3D</span><br><span>8, 83, 0.0980392);"&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);=3D</span><br><span>"&gt;FY=
2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"col=
or: rgba(0, 0=3D</span><br><span>, 0, 0.701961); -webkit-composition-fill-co=
lor: rgba(130, 98, 83, 0.0980392)=3D</span><br><span>;"&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;n=3D</spa=
n><br><span>bsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: r=
gba(0, 0, 0, 0.701961); -webk=3D</span><br><span>it-composition-fill-color: r=
gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D"bac=3D</span><br><span>=
kground-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;nb=
sp;(Dec=3D</span><br><span>. 6) o&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D</span><br><span>position-fil=
l-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D"backgroun=3D<=
/span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;=
(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;d=3D</span><br><span>iv style=3D3D"colo=
r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=3D</span><br><=
span>gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-color: r=
gba(255, 255=3D</span><br><span>, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(=
Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color=3D</span><br><span>=
: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
=3D</span><br><span> 0.0980392);"&gt;&lt;span style=3D3D"background-color: r=
gba(255, 255, 255, 0);"&gt;&lt;br&gt;=3D</span><br><span>&lt;/span&gt;&lt;/d=
iv&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D=
</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span s=
tyle=3D3D"background-colo=3D</span><br><span>r: rgba(255, 255, 255, 0);"&gt;=
----&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0,=3D</span><=
br><span> 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392);=3D</span><br><span>"&gt;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div=
&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt=
;div&gt;On Feb 9, 2016=3D</span><br><span>, at 7:42 PM, Dana &amp;lt;&lt;a h=
ref=3D3D"<a href=3D"mailto:[email-masked]">mailto:[email-masked]=
</a>"&gt;danachasin@gm=3D</span><br><span><a href=3D"http://ail.com">ail.com=
</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote t=
ype=3D3D"cite"&gt;&lt;div&gt;&lt;meta htt=3D</span><br><span>p-equiv=3D3D"co=
ntent-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;spa=
n&gt;&lt;=3D</span><br><span>/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;=
span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content=
-ty=3D</span><br><span>pe" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt=
;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;met=3D</span><br=
> <span>a http-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Du=
tf-8"&gt;&lt;div&gt;&lt;s=3D</span><br><span>pan&gt;&lt;/span&gt;&lt;/div&gt=
;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" content=3D3D"text/html=3D=
</span><br><span>; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt=
;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-=3D</span><br><span=
> type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;=
&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;m=3D</span><br><span>eta http-equiv=3D=
3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;=3D=
</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta ht=
tp-equiv=3D3D"content-type" content=3D3D"text/ht=3D</span><br><span>ml; char=
set=3D3Dutf-8"&gt;&lt;div&gt;&lt;br&gt;Mike &amp;amp; Co. --&lt;br&gt;&lt;p c=
lass=3D3D"MsoNormal" st=3D</span><br><span>yle=3D3D"margin-bottom: 0.0001pt;=
"&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><br><span>55=
, 255, 0);"&gt;Today, President Obama submitted his eighth and final budget p=
=3D</span><br><span>roposal to Congress.&amp;nbsp; It tops the $4 trillion m=
ark for the first time. &amp;=3D</span><br><span>nbsp;&amp;nbsp;Despite the h=
istorical tendency for lame duck presidential budget=3D</span><br><span>s to=
be treated as scrap paper -- this one won't even be accorded the courte=3D<=
/span><br><span>sy of a hearing in House Budget -- there are a few noteworth=
y proposals and i=3D</span><br><span>nitiatives which, if nothing else, are l=
ikely to generate discussion on the H=3D</span><br><span>ill and off. &amp;n=
bsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bot=
tom:=3D</span><br><span> 0.0001pt;"&gt;&lt;span style=3D3D"background-color:=
rgba(255, 255, 255, 0);"&gt;That=3DE2=3D</span><br><span>=3D80=3D99s the re=
al purpose of this budget -- to help frame the debate in 2016 a=3D</span><br=
> <span>bout where America is headed what the nation's priorities should be.&=
amp;nbsp; A=3D</span><br><span> number of the proposals in this budget reson=
ate with issues and themes alre=3D</span><br><span>ady being debated.&amp;nb=
sp; Candidates in particular seeking to emphasize suppo=3D</span><br><span>r=
t for or opposition to the President have a new set of proposals at their d=3D=
</span><br><span>isposal.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"M=
soNormal" style=3D3D"margin-bottom: 0.00=3D</span><br><span>01pt;"&gt;&lt;sp=
an style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;What is new=3D</=
span><br><span> and noteworthy in the White House budget and what's next for=
it? &amp;nbsp;Deta=3D</span><br><span>il below.&amp;nbsp;&lt;/span&gt;&lt;/=
p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0=3D</span><br>=
<span>001pt;"&gt;Special thanks to those of you in NH tonight. &amp;nbsp;Fin=
gers crossed a=3D</span><br><span>nd stay tuned this way: &amp;nbsp;&amp;nbs=
p;&lt;a href=3D3D"<a href=3D"http://politi.co/20n5W2w">http://politi.co/20n5=
W2w</a>"&gt;htt=3D</span><br><span>p://politi.co/20n5W2w&lt;/a&gt;&amp;nbsp;=
&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bo=3D</span><br><spa=
n>ttom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;B=3D</span><br><span>est,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;sp=3D</span><br><spa=
n>an style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&=
gt;&lt;/p&gt;&lt;p cla=3D</span><br><span>ss=3D3D"MsoNormal" style=3D3D"marg=
in-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backgroun=3D</span><br><span>d-=
color: rgba(255, 255, 255, 0);"&gt;---------&lt;/span&gt;&lt;/p&gt;&lt;p cla=
ss=3D3D"MsoNormal"=3D</span><br><span> style=3D3D"margin-bottom: 0.0001pt;"&=
gt;&lt;span style=3D3D"background-color: rgba(25=3D</span><br><span>5, 255, 2=
55, 0);"&gt;The Obama Administration put forth a myriad of budget prop=3D</s=
pan><br><span>osals revolving around a variety of issues. &amp;nbsp;Below ar=
e thoughts on some=3D</span><br><span> of the most significant of these from=
a fiscal and financial regulatory per=3D</span><br><span>spective:&amp;nbsp=
;&lt;/span&gt;&lt;/p&gt;&lt;blockquote style=3D3D"margin: 0px 0px 0px 40px; b=
or=3D</span><br><span>der: none; padding: 0px;"&gt;&lt;p class=3D3D"MsoNorma=
l" style=3D3D"margin-bottom: 0.0=3D</span><br><span>001pt;"&gt;&lt;span styl=
e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;=3D=
</span><br><span>nbsp;&lt;b&gt;&lt;u&gt;$10/Barrel Transportation Tax&lt;/u&=
gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNo=3D</span><br><spa=
n>rmal" style=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backgrou=
nd-color: rg=3D</span><br><span>ba(255, 255, 255, 0);"&gt;A perennial favori=
te of Democrats has made a return i=3D</span><br><span>n the Obama budget: &=
lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=3D</span>=
<br><span>55, 0);"&gt;&amp;nbsp;a $10.25 per barrel tax on oil, $319 billion=
in revenue from w=3D</span><br><span>hich will go toward funding =3DE2=3D80=
=3D9Ca 21st Century Clean Transportation Pla=3D</span><br><span>n to upgrade=
the nation=3DE2=3D80=3D99s transportation system, improve resilience a=3D</=
span><br><span>nd reduce emissions." &amp;nbsp;The proposed tax is a simplif=
ied version of =3DE2=3D80=3D</span><br><span>=3D9Ccarbon taxation=3DE2=3D80=3D=
9D policies, which aim to tax energy producers and o=3D</span><br><span>il c=
ompanies based on the level of pollution they produce; =3DE2=3D80=3D9Ccap an=
d t=3D</span><br><span>rade=3DE2=3D80=3D9D was a similar policy idea but wit=
h more complicated implementa=3D</span><br><span>tion. &amp;nbsp;&lt;/span&g=
t;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001=3D<=
/span><br><span>pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255,=
255, 0);"&gt;The tax will b=3D</span><br><span>e phased in over five years a=
nd levied against oil companies, with the reven=3D</span><br><span>ue to hel=
p fund clean energy initiatives like expanding high-speed rail syst=3D</span=
> <br><span>ems and also to increase national infrastructure spending.&amp;nb=
sp; The appeal o=3D</span><br><span>f this flat-tax on oil is its simplicity=
=3DE2=3D80=3D93- there is nothing complic=3D</span><br><span>ated about cha=
rging oil companies $10.25 per barrel of oil, meaning there=3DE2=3D</span><b=
r><span>=3D80=3D99s no way for them to shirk the charge.&amp;nbsp;&lt;/span&=
gt;&lt;/p&gt;&lt;span class=3D3D"=3D</span><br><span>im" style=3D3D"backgrou=
nd-color: rgba(255, 255, 255, 0);"&gt;&lt;p class=3D3D"MsoNorma=3D</span><br=
> <span>l" style=3D3D"margin-bottom: 0.0001pt;"&gt;Supporting the tax would l=
end candidat=3D</span><br><span>es some environmental bonafides, but might b=
e seen as a backdoor &amp;nbsp;tax&lt;s=3D</span><br><span>pan style=3D3D"ba=
ckground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;on the middle-=3D</spa=
n><br><span>class. Though paid for by oil companies, the &amp;nbsp;price is e=
xpected to be p=3D</span><br><span>assed along to consumers through higher p=
rices.&amp;nbsp; The tax is expected to=3D</span><br><span> increase the pri=
ce of gasoline by 25 cents per gallon.&lt;/span&gt;&lt;/p&gt;&lt;/span&gt;&l=
t;p c=3D</span><br><span>lass=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.00=
01pt;"&gt;&lt;span style=3D3D"backgro=3D</span><br><span>und-color: rgba(255=
, 255, 255, 0);"&gt;=3DE2=3D80=3DA2 &amp;nbsp;&lt;b&gt;&lt;u&gt;Funding Fin.=
Reg. L=3D</span><br><span>ike it Matters&lt;/u&gt;&lt;/b&gt;&amp;nbsp;&lt;/=
span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margi=3D</span><br>=
<span>n-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255=
, 255, 255, 0)=3D</span><br><span>;"&gt;Obama proposes to double the budget f=
or Wall Street regulators SEC and CFT=3D</span><br><span>C over ten years, b=
eginning with an 11 percent increase for SEC and 32 perce=3D</span><br><span=
> nt for CFTC in 2017.&amp;nbsp;&amp;nbsp;Clinton has a lot to like in this p=
articular=3D</span><br><span> section =3DE2=3D80=3D93 she=3DE2=3D80=3D99s th=
e only candidate who has defended Dodd-Fra=3D</span><br><span>nk and is camp=
aigning on proposals to strengthen current regulations, includ=3D</span><br>=
<span>ing through greater budgets for&amp;nbsp;regulatory agencies.&amp;nbsp=
; Leaders for b=3D</span><br><span>oth regulators have complained that their=
responsibilities far outstrip thei=3D</span><br><span>r budget.&amp;nbsp;&l=
t;/span&gt;&lt;/p&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 25=
=3D</span><br><span>5, 0);"&gt;&lt;span class=3D3D"im"&gt;&lt;p class=3D3D"M=
soNormal" style=3D3D"margin-bottom: 0.=3D</span><br><span>0001pt;"&gt;The pr=
oposal is more realistic than the oil tax, although not neces=3D</span><br><=
span>sarily something that will definitely be enacted. &amp;nbsp;The SEC has=
called f=3D</span><br><span>or increased funding recently.&amp;nbsp; SEC ch=
airman Mary Jo White asked at a H=3D</span><br><span>ouse Financial Services=
Committee hearing in November for $1.8 billion in fu=3D</span><br><span>ndi=
ng for fiscal 2017. &amp;nbsp;In a time when Republicans are looking to redu=
c=3D</span><br><span>e regulatory burdens against banks, an increase in regu=
lators=3DE2=3D80=3D99 budge=3D</span><br><span>ts highlights the difference i=
n priorities on Wall Street.&amp;nbsp;&lt;/p&gt;&lt;/span&gt;&lt;=3D</span><=
br><span>span class=3D3D"im"&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margi=
n-bottom: 0.0001pt;"&gt;=3D</span><br><span>=3DE2=3D80=3DA2 &amp;nbsp;&lt;b&=
gt;&lt;u&gt;Boosting R and D&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/span&gt;&lt;s=
pan class=3D3D"im"&gt;=3D</span><br><span>&lt;p class=3D3D"MsoNormal" style=3D=
3D"margin-bottom: 0.0001pt;"&gt;The budget increas=3D</span><br><span>es R&a=
mp;amp;D funding by four percent for a total of $152 billion in 2017; amon=3D=
</span><br><span>g changes are a doubling of clean energy research and fundi=
ng a $1 billion c=3D</span><br><span>ancer =3DE2=3D80=3D9CMoonshot=3DE2=3D80=
=3D9D research program aimed at eliminating the d=3D</span><br><span>isease.=
&amp;nbsp;&lt;/p&gt;&lt;/span&gt;&lt;span class=3D3D"im"&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"m=3D</span><br><span>argin-bottom: 0.0001pt;"&gt;=3DE=
2=3D80=3DA2 &amp;nbsp;&amp;nbsp;&lt;b&gt;&lt;u&gt;Apprenticeship Training=3D=
</span><br><span> Fund&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/span&gt;&lt;span cl=
ass=3D3D"im"&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"m=3D</span><br><span>=
argin-bottom: 0.0001pt;"&gt;The budget establishes a $2 billion mandatory Ap=
pre=3D</span><br><span>nticeship Training Fund =3DE2=3D80=3D93 meant to doub=
le the number of apprenticesh=3D</span><br><span>ips across the United State=
s.&amp;nbsp; Only HRC has talked about the need for i=3D</span><br><span>ncr=
easing the number of apprenticeships in the country during the election, f=3D=
</span><br><span>avoring a tax-credit policy rather than direct funding.&amp=
;nbsp;&lt;/p&gt;&lt;/span&gt;&lt;/sp=3D</span><br><span>an&gt;&lt;/blockquot=
e&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&gt;&lt=
;b=3D</span><br><blockquote type=3D"cite"><span>&lt;u style=3D3D"background-=
color: rgba(255, 255, 255, 0);"&gt;Congressional Prospe=3D</span><br></block=
quote><span>cts&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" sty=
le=3D3D"margin-bottom: 0.0001pt;"&gt;&lt;sp=3D</span><br><span>an style=3D3D=
"background-color: rgba(255, 255, 255, 0);"&gt;Obama=3DE2=3D80=3D99s propo=3D=
</span><br><span>sal is not only a prelude to battle.&amp;nbsp; Lawmakers an=
d the administration w=3D</span><br><span>ill have to strike some sort of de=
al to keep the government running when the=3D</span><br><span> current fisca=
l year ends&amp;nbsp;&lt;a&gt;&lt;/a&gt;&lt;a href=3D3D"x-apple-data-detecto=
rs://9"=3D</span><br><span> x-apple-data-detectors=3D3D"true" x-apple-data-d=
etectors-type=3D3D"calendar-eve=3D</span><br><span>nt" x-apple-data-detector=
s-result=3D3D"9"&gt;on&amp;nbsp;&lt;/a&gt;&lt;span class=3D3D"" tabinde=3D</=
span><br><span>x=3D3D"0"&gt;&lt;span class=3D3D""&gt;&lt;a href=3D3D"x-apple=
-data-detectors://9" x-apple-data=3D</span><br><span>-detectors=3D3D"true" x=
-apple-data-detectors-type=3D3D"calendar-event" x-apple-d=3D</span><br><span=
> ata-detectors-result=3D3D"9"&gt;Sept. 30&lt;/a&gt;&lt;/span&gt;&lt;/span&gt=
;&amp;nbsp;=3DE2=3D80=3D94 most li=3D</span><br><span>kely a continuing reso=
lution to keep the lights on through the election and e=3D</span><br><span>a=
rly into 2017.&amp;nbsp; In a sign that Obama isn=3DE2=3D80=3D99t looking fo=
r a knock=3D</span><br><span>-down spending fight this year, the president=3D=
E2=3D80=3D99s proposal abides by t=3D</span><br><span>he discretionary caps f=
or fiscal 2017 set by last year=3DE2=3D80=3D99s bipartisan b=3D</span><br><s=
pan>udget deal.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span class=3D3D"im" styl=
e=3D3D"background-color: rg=3D</span><br><span>ba(255, 255, 255, 0);"&gt;&lt=
;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001=3D</span><br><span=
> pt;"&gt;Congressional leadership may have a fight on its hands even without=
Oba=3D</span><br><span>ma making waves =3DE2=3D80=3D93 if the Freedom Caucu=
s membership decides to make i=3D</span><br><span>ts displeasure on the budg=
et known then it could cause rancor amongst the GO=3D</span><br><span>P.&amp=
;nbsp; In a year when the party is desperate to project an image of capabl=3D=
</span><br><span>e leadership, in part by passing a complete budget for the f=
irst time since 1=3D</span><br><span>997, a blow-up between Ryan and the bac=
k-benchers would amount to nothing le=3D</span><br><span>ss than catastrophe=
.&lt;/p&gt;&lt;/span&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom=
=3D</span><br><span>: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rg=
ba(255, 255, 255, 0);"&gt;At a m=3D</span><br><span>ore granular level, Obam=
a=3DE2=3D80=3D99s blueprint is a grab-bag of Democratic pr=3D</span><br><spa=
n>iorities.&amp;nbsp; The administration is once again calling for expanding=
early=3D</span><br><span> education in his 2017 budget, asking for more pre=
-K grants, a child care ex=3D</span><br><span>pansion and a small boost to H=
ead Start.&amp;nbsp; The budget boosts spending fo=3D</span><br><span>r Obam=
acare Medicaid expansion by $2.6 billion over a decade, designed to be=3D</s=
pan><br><span> an enticement to the 19 holdout states that have yet to take e=
ffect.&lt;/span&gt;=3D</span><br><span>&lt;/p&gt;&lt;div&gt;&lt;p class=3D3D=
"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D3D"background-color: rgba(255, 2=3D</s=
pan><br><span>55, 255, 0);"&gt;Republicans and the Budget&lt;/u&gt;&lt;/b&gt=
;&lt;/p&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=3D</span><br><span>"ba=
ckground-color: rgba(255, 255, 255, 0);"&gt;The Republicans have a different=
=3D</span><br><span> plan for the budget this year, naturally.&amp;nbsp; Spe=
aker Ryan has stated tha=3D</span><br><span>t he intends to pass the budget a=
nd all 12 appropriations through the house -=3D</span><br><span>- a feat tha=
t hasn't been accomplished in two decades.&lt;/span&gt;&lt;/div&gt;&lt;div&g=
t;&lt;spa=3D</span><br><span>n style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=3D</span><br><spa=
n>&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The Repu=
blicans ha=3D</span><br><span>ve a different plan for the budget this year, n=
aturally.&amp;nbsp; Speaker Ryan h=3D</span><br><span>as stated that he inte=
nds to pass the budget and all 12 appropriations throu=3D</span><br><span>gh=
the house - a feat that hasn't been accomplished since 1997.&amp;nbsp; Alth=
ou=3D</span><br><span>gh Ryan and the GOP House leadership hope to gain the f=
aith of the American p=3D</span><br><span>eople back by bringing about the r=
eturn of regular order, they face a tight c=3D</span><br><span>alendar and t=
he political implications of an election year -- not to mention=3D</span><br=
> <span> internal opposition&lt;b&gt;&amp;nbsp;&lt;/b&gt;in the form of the Fre=
edom Caucus.&amp;nbsp; Sh=3D</span><br><span>ould the back-benchers feel the=
ir concerns aren=3DE2=3D80=3D99t being adequately a=3D</span><br><span>ddres=
sed, they may try to disrupt the passage of appropriations bills. &amp;nbsp=3D=
</span><br><span>;The care and feeding of these members on budget matters ma=
y be turn out to b=3D</span><br><span>e one of the toughest challenges Ryan w=
ill face this year.&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=3D</span><br><span>&=
lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&=
lt;/span&gt;&lt;/div&gt;&lt;=3D</span><br><span>div&gt;-----------------&lt;=
/div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"color: rgba(0, 0=
, 0=3D</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); t=3D</span><br><span>ext-decoration: -webkit-letterpre=
ss;"&gt;Recent Updates&lt;/span&gt;&lt;div style=3D3D"col=3D</span><br><span=
> or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
=3D</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt=
;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D=3D</span><br><span>"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D</span><br><=
span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Obama's FY=
17 Budge=3D</span><br><span>t &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Tal=
k of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defen=3D</span><br><spa=
n>ding Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit=
/Debt Dormancy (Ja=3D</span><br><span>n. 28)&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;T=3D</span><br><span=
> he Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt=
;div&gt;Debate Myths Ch=3D</span><br><span>allenged &amp;nbsp;(Jan. 25)&lt;/=
div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)=3D</span><br=
> <span>&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 2=
0)&lt;/div&gt;&lt;div&gt;HRC's Tax=3D</span><br><span> Policy &amp;nbsp;(Jan=
. 17)&lt;br&gt;&lt;div&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt=
;=3D</span><br><span>/div&gt;&lt;div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Ja=
n. 13)&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"ba=3D</span><br><span>ckgro=
und-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan=
. 8=3D</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0);"=3D</span><br><blockquote type=3D=
"cite"><span>Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/d=
iv&gt;&lt;div&gt;&lt;span style=3D3D"ba=3D</span><br></blockquote><span>ckgr=
ound-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp=
;(J=3D</span><br><span>an. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255,=3D</span><br><span> 0);"&gt;Y=
ear-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=
=3D3D"ba=3D</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Year=
-End Review: Fin. Reg.&amp;nbsp;&lt;/s=3D</span><br><span>pan&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29=3D=
</span><br><span>) &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-col=
or: rgba(255, 255, 255, 0);"&gt;Omn=3D</span><br><span>ibus Review (Dec. 15)=
&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rg=
ba=3D</span><br><span>(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(D=
ec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;spa=3D</span><br><span>n styl=
e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (=
=3D</span><br><span>Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span sty=
le=3D3D"background-color: rgba(255, 255, 25=3D</span><br><span>5, 0);"&gt;Cu=
stoms Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span st=
yle=3D3D"backgrou=3D</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;T=
ax Extender Negotiations &amp;nbsp;(Dec. 6) o=3D</span><br><span>&lt;/span&g=
t;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255=
, 255, 0);"&gt;=3D</span><br><span>Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&=
gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color=3D</span><br>=
<span>: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;=
/span&gt;&lt;/div&gt;&lt;/di=3D</span><br><span>v&gt;&lt;/div&gt;&lt;/div&gt=
;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Feb 3, 2016, at 7:09 PM, Da=
na &amp;lt;&lt;a h=3D</span><br><span>ref=3D3D"<a href=3D"mailto:danachasin@=
gmail.com">mailto:[email-masked]</a>"&gt;<a href=3D"mailto:danachasin@=
gmail.com">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;=3D=
</span><br><span>br&gt;&lt;/div&gt;&lt;blockquote type=3D3D"cite"&gt;&lt;div=
&gt;&lt;meta http-equiv=3D3D"content-type" co=3D</span><br><span>ntent=3D3D"=
text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/di=
v&gt;&lt;div&gt;&lt;meta http=3D</span><br><span>-equiv=3D3D"content-type" c=
ontent=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/=3D=
</span><br><span>span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"con=
tent-type" content=3D3D"text/html; char=3D</span><br><span>set=3D3Dutf-8"&gt=
;&lt;div&gt;&lt;span style=3D3D"-webkit-text-size-adjust: auto; background-=3D=
</span><br><span>color: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.70196=
1); -webkit-compo=3D</span><br><span>sition-fill-color: rgba(130, 98, 83, 0.=
0980392); text-decoration: -webkit-le=3D</span><br><span>tterpress;"&gt;Mike=
&amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;p style=3D3D"color: rgba(0, 0, 0=
, 0.7=3D</span><br><span>01961); text-decoration: -webkit-letterpress; -webk=
it-text-size-adjust: auto=3D</span><br><span>; box-sizing: border-box; margi=
n: 0px;"&gt;&lt;span style=3D3D"background-color: rgb=3D</span><br><span>a(2=
55, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p style=3D3D"colo=
r: rgba(0, 0, 0, 0.7019=3D</span><br><span>61); text-decoration: -webkit-let=
terpress; -webkit-text-size-adjust: auto; b=3D</span><br><span>ox-sizing: bo=
rder-box; margin: 0px;"&gt;&lt;span style=3D3D"background-color: rgba(2=3D</=
span><br><span>55, 255, 255, 0);"&gt;Upbeat tax talk is as common this time o=
f year as predict=3D</span><br><span>ions that this year the Cubs will win t=
he World Series this fall. &amp;nbsp;The w=3D</span><br><span>ord is that Me=
ssrs. Ryan and McConnell want to run a smooth, efficient, mayb=3D</span><br>=
<span>e even a productive ship this year on the theory that voters will rewa=
rd the=3D</span><br><span> GOP in November and that they will forget the rec=
ord of the last seven year=3D</span><br><span>s. &amp;nbsp;The Speaker and t=
he President have had a recent meeting and mini-me=3D</span><br><span>eting o=
f the minds on taxes.&lt;/span&gt;&lt;span style=3D3D"background-color: rgba=
(255=3D</span><br><span>, 255, 255, 0);"&gt;&amp;nbsp; That might create the=
right climate for passage of b=3D</span><br><span>road tax reform.&amp;nbsp=
;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=3D=
</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=
30, 98, 83, 0.098=3D</span><br><span>0392); text-decoration: -webkit-letterp=
ress; margin-bottom: 0.0001pt;"&gt;&lt;span=3D</span><br><span> style=3D3D"b=
ackground-color: rgba(255, 255, 255, 0);"&gt;But really the gravitat=3D</spa=
n><br><span>ional pull is not toward gravitas, but away from the center, awa=
y from the H=3D</span><br><span>ill itself. &amp;nbsp;The GOP presidential n=
ominee might very well have to run a=3D</span><br><span>gainst any bipartisa=
n ("Washington") compromise on tax policy, making for an=3D</span><br><span>=
embarrassing intraparty policy conflict at the time the leadership most nee=
=3D</span><br><span>ds to project unity.&lt;br&gt;&lt;br&gt;Amid the turbule=
nce of the broader campaign, whe=3D</span><br><span>re do the various tax di=
scussions in the Hill stand, what bills night come u=3D</span><br><span>p fo=
r votes, is there anything that might pass?&lt;/span&gt;&lt;/p&gt;&lt;p clas=
s=3D3D"MsoNor=3D</span><br><span>mal" style=3D3D"color: rgba(0, 0, 0, 0.7019=
61); -webkit-composition-fill-color=3D</span><br><span>: rgba(130, 98, 83, 0=
.0980392); text-decoration: -webkit-letterpress; margin=3D</span><br><span>-=
bottom: 0.0001pt;"&gt;Best,&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"=
color: rgba(0, 0=3D</span><br><span>, 0, 0.701961); -webkit-composition-fill=
-color: rgba(130, 98, 83, 0.0980392)=3D</span><br><span>; text-decoration: -=
webkit-letterpress; margin-bottom: 0.0001pt;"&gt;Dana&lt;/p&gt;&lt;p=3D</spa=
n><br><span> class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961)=
; -webkit-compos=3D</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.09=
80392); text-decoration: -webkit-let=3D</span><br><span>terpress; margin-bot=
tom: 0.0001pt;"&gt;________________________________&lt;/p&gt;&lt;p c=3D</spa=
n><br><span>lass=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composit=3D</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.09803=
92); text-decoration: -webkit-lette=3D</span><br><span>rpress; margin-bottom=
: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D3D"background-color: rgba(255,=3D</sp=
an><br><span> 255, 255, 0);"&gt;Forms of Reform under Discussion&lt;/u&gt;&l=
t;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=3D</span><br><span>ormal" style=3D3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=3D</span><br><=
span>or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=
marg=3D</span><br><span>in-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backgr=
ound-color: rgba(255, 255, 255, 0=3D</span><br><span>);"&gt;&lt;b&gt;=3DE2=3D=
80=3DA2 Comprehensive&lt;/b&gt;&amp;nbsp;-- Defined as involving a bipartisa=
n=3D</span><br><span> trade-off between lowering taxes and broadening the ba=
se; closing exemption=3D</span><br><span>s, deductions, credits, etc.&amp;nb=
sp; Both Democratic candidates have outlined p=3D</span><br><span>lans to re=
duce loopholes, such as the "Romney loophole" and the "Bermuda loo=3D</span>=
<br><span>phole," which allow very rich Americans to avoid paying their fair=
share.&amp;nb=3D</span><br><span>sp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961)=3D</span><br><span>; -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorat=3D=
</span><br><span>ion: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;=
span style=3D3D"backgroun=3D</span><br><span>d-color: rgba(255, 255, 255, 0)=
;"&gt;=3DE2=3D80=3DA2&amp;nbsp;&lt;b&gt;Corporate --&lt;/b&gt;&amp;nbsp;Ma=3D=
</span><br><span>ny of the issues with the corporate tax system could be add=
ressed through in=3D</span><br><span>ternational tax reform, because so many=
companies earn capital abroad. Howev=3D</span><br><span>er, corporate tax r=
eform at home deals with issues like taxing dividends and=3D</span><br><span=
> leveling the playing field between small and large businesses.&amp;nbsp;&l=
t;/span&gt;=3D</span><br><span>&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D</span><br><span>composition-f=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D</span><br=
> <span>it-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"back=
ground-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;=3DE2=3D80=3DA=
2&amp;nbsp;&lt;b&gt;International&amp;nbsp;&lt;/b&gt;- Deals wit=3D</span><b=
r><span>h foreign earnings of American firms abroad. Specifically, current i=
nternati=3D</span><br><span>onal tax reform aims at preventing inversions an=
d coming up with a more succ=3D</span><br><span>essful way to tax foreign ca=
pital earned by American companies, as well as f=3D</span><br><span>inding w=
ays to encourage companies to move profits home from abroad.&lt;/span&gt;&lt=
;=3D</span><br><span>/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-c=3D</span><br><span>omposition-fill-color: rg=
ba(130, 98, 83, 0.0980392); text-decoration: -webki=3D</span><br><span>t-let=
terpress; margin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D3D"background-=
color: rg=3D</span><br><span>ba(255, 255, 255, 0);"&gt;Forums for Tax Reform=
&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorma=3D</span><br><span>l=
" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=
r=3D</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-=
letterpress; margin-bo=3D</span><br><span>ttom: 0.0001pt;"&gt;&lt;span style=
=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;=3D</span><br><span>=
b&gt;=3DE2=3D80=3DA2 Ways &amp;amp; Means: &amp;nbsp;&lt;/b&gt;Kevin Brady b=
ecame Chair of the Comm=3D</span><br><span>ittee in November 2015. He report=
edly hopes to have an international tax ref=3D</span><br><span>orm proposal o=
ut of Ways and Means this year. &amp;nbsp;He says he wants to allo=3D</span>=
<br><span>w American companies to bring their foreign profits back and inves=
t at home a=3D</span><br><span>nd to lower the corporate tax rate to less th=
an 20 percent.&lt;/span&gt;&lt;/p&gt;&lt;p cla=3D</span><br><span>ss=3D3D"Ms=
oNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=3D</s=
pan><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=
webkit-letterp=3D</span><br><span>ress; margin-bottom: 0.0001pt;"&gt;&lt;spa=
n style=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0);"&=
gt;Brady gave the opening statement at a hearing on =3DE2=3D80=3D9CReac=3D</=
span><br><span>hing America=3DE2=3D80=3D99s Potential.=3DE2=3D80=3D9D &amp;n=
bsp; For what it's worth, he la=3D</span><br><span>id out six goals for his c=
ommittee in the coming months -- and they are ambi=3D</span><br><span>tious:=
&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0,=
0, 0, 0.7019=3D</span><br><span>61); -webkit-composition-fill-color: rgba(1=
30, 98, 83, 0.0980392); text-deco=3D</span><br><span>ration: -webkit-letterp=
ress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D3D=3D</span><br=
> <span>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt=
;&lt;/p&gt;&lt;p class=3D3D"MsoNo=3D</span><br><span>rmal" style=3D3D"color:=
rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=3D</span><br><span>r=
: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=3D=
</span><br><span>n: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D3D"backgr=
ound-color: rgba(255, 255=3D</span><br><span>, 255, 0);"&gt;=3DC2=3DB7&amp;n=
bsp;&lt;i&gt;Tax reforms to&amp;nbsp;boost investment and job crea=3D</span>=
<br><span>tion;&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" s=
tyle=3D3D"color: rgba(0, 0, 0, 0.7=3D</span><br><span>01961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=3D</span><br><span>ec=
oration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span=
sty=3D</span><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;=3DC2=3DB7&amp;nbsp;&lt;i&gt;Welfare refo=3D</span><br><span>rms to&amp;nb=
sp;help more people join the workforce and achieve the American dre=3D</span=
> <br><span>am.&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" s=
tyle=3D3D"color: rgba(0, 0, 0, 0.701=3D</span><br><span>961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=3D</span><br><span>=
oration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span=
style=3D</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;=3DC2=3DB7&amp;nbsp;&lt;i&gt;Health reforms=3D</span><br><span> to truly m=
ake health care more affordable and accessible;&amp;nbsp;&lt;/i&gt;&lt;/span=
&gt;&lt;=3D</span><br><span>/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"col=
or: rgba(0, 0, 0, 0.701961); -webkit-c=3D</span><br><span>omposition-fill-co=
lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=3D</span><br><spa=
n>t-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D3D"b=
ackground-=3D</span><br><span>color: rgba(255, 255, 255, 0);"&gt;=3DC2=3DB7&=
amp;nbsp;&lt;i&gt;Trade expansion&amp;nbsp;to&amp;nbsp;=3D</span><br><span>o=
pen&amp;nbsp;more foreign&amp;nbsp;markets to American&amp;nbsp;goods and se=
rvices;&lt;/i&gt;=3D</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D=
"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=3D</span><br><span>=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
=3D</span><br><span>: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;=
"&gt;&lt;span style=3D3D"bac=3D</span><br><span>kground-color: rgba(255, 255=
, 255, 0);"&gt;=3DC2=3DB7&amp;nbsp;&lt;i&gt;Entitlement reforms t=3D</span><=
br><span>o strengthen Medicare and Social Security for the long haul and;&am=
p;nbsp;&amp;nbsp;=3D</span><br><span>&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;&lt;p c=
lass=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961=3D</span><br><=
span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=
ecora=3D</span><br><span>tion: -webkit-letterpress; margin: 0in 0in 0.0001pt=
47.25pt;"&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: rgba=
(255, 255, 255, 0);"&gt;=3DC2=3DB7&amp;nbsp;&lt;i&gt;Government reform=3D</s=
pan><br><span>s to boost&amp;nbsp;efficiency&amp;nbsp;and&amp;nbsp;effective=
ness instead of stifling j=3D</span><br><span>obs and higher wages.&lt;/i&gt=
;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: r=3D</=
span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.=3D</span><br><span>0980392); text-decoration: -webkit-letter=
press; margin: 0in 0in 0.0001pt 47.=3D</span><br><span>25pt;"&gt;&lt;span st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/spa=3D=
</span><br><span>n&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color=
: rgba(0, 0, 0, 0.701961); -webki=3D</span><br><span>t-composition-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -we=3D</span><br><span>bki=
t-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-c=
olor:=3D</span><br><span> rgba(255, 255, 255, 0);"&gt;Brady=3DE2=3D80=3D99s s=
tatement that tax reform will com=3D</span><br><span>e up in the coming week=
s, coupled with Ryan=3DE2=3D80=3D99s recent visit with Obam=3D</span><br><sp=
an>a (specifically to find areas of cooperation), may indicate a broad-based=
re=3D</span><br><span>form package making its way forward in 2016.&amp;nbsp=
; Another interesting bulle=3D</span><br><span>t point is trade expansion, d=
espite McConnell=3DE2=3D80=3D99s promise that TPP won=3D</span><br><span>=3D=
E2=3D80=3D99t be voted on before November.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&=
lt;p class=3D3D"MsoNorma=3D</span><br><span>l" style=3D3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: r=3D</span><br><span>gba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bo=3D</span>=
<br><span>ttom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255=
, 255, 255, 0);"&gt;&amp;=3D</span><br><span>nbsp;&lt;/span&gt;&lt;span styl=
e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;=3DE2=3D80=3D</span><br=
> <span>=3DA2&amp;nbsp;&lt;/span&gt;&lt;b style=3D3D"background-color: rgba(2=
55, 255, 255, 0);"&gt;Senat=3D</span><br><span>e Finance:&lt;/b&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbs=3D</span><b=
r><span>p; &amp;nbsp;The Senate Finance Committee has its focus set on bipar=
tisan workin=3D</span><br><span>g groups designed to produce tax reform on m=
ultiple levels -- individual, co=3D</span><br><span>rporate, and internation=
al. However, there have been many challenges and sta=3D</span><br><span>lema=
tes along the way because of the stringent partisanship currently ailing=3D<=
/span><br><span> the Senate.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3=
D"MsoNormal" style=3D3D"color: rgba(0, 0=3D</span><br><span>, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=3D</span><br><sp=
an>; text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;=
span styl=3D</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0)=
;"&gt;This election has been defin=3D</span><br><span>ed, more so than other=
s, by the massively diverse set of tax policies propos=3D</span><br><span>ed=
by each candidates =3DE2=3D80=3D93 from flat taxes, capital gains reforms, f=
ina=3D</span><br><span>ncial transaction taxes and more.&amp;nbsp; Sen. Hatc=
h, Chair of Finance, has al=3D</span><br><span>ready called for reform effor=
ts in 2016, targeting international corporate r=3D</span><br><span>ates spec=
ifically =3DE2=3D80=3D93 but it=3DE2=3D80=3D99s possible that Brady is tryin=
g t=3D</span><br><span>o shift him and others toward more ambitious proposal=
s. &amp;nbsp;Any high profi=3D</span><br><span>le move Ryan makes here will l=
ikely be a controlling factor on tax policy. &amp;=3D</span><br><span>nbsp;&=
lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0=
, 0, 0.70196=3D</span><br><span>1); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); text-decor=3D</span><br><span>ation: -webkit-letterpre=
ss; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backgro=3D</span><br><s=
pan>und-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;=3DE2=3D80=3DA2&amp;nbsp=
;Between the Branches -=3D</span><br><span>-&amp;nbsp;&lt;/b&gt;Speaker Ryan=
and Pres. Obama met yesterday to discuss a variety o=3D</span><br><span>f i=
ssues, one of which was related to the Earned Income Tax Credit. &amp;nbsp;B=
o=3D</span><br><span>th hope to expand the credit to include low-earning wor=
kers who DON'T have c=3D</span><br><span>hildren. &amp;nbsp;It's unclear how=
successful their cooperation will be, but at=3D</span><br><span> the very l=
east, they share a common goal.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=
3D"MsoNo=3D</span><br><span>rmal" style=3D3D"color: rgba(0, 0, 0, 0.701961);=
-webkit-composition-fill-colo=3D</span><br><span>r: rgba(130, 98, 83, 0.098=
0392); text-decoration: -webkit-letterpress; margi=3D</span><br><span>n-bott=
om: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=
)=3D</span><br><span>;"&gt;Politico portrayed the meeting as campaign kabuki=
: =3DE2=3D80=3D9CRather than c=3D</span><br><span>ut any deals with Obama, R=
yan=3DE2=3D80=3D99s hoping to spend 2016 developing what=3D</span><br><span>=
he=3DE2=3D80=3D99s calling a detailed GOP agenda on poverty, taxes, health c=
are a=3D</span><br><span>nd other issues he=3DE2=3D80=3D99s hoping will fact=
or into the presidential campai=3D</span><br><span>gn and provide a blueprin=
t for House Republicans as they grapple with a new p=3D</span><br><span>resi=
dent next year.=3DE2=3D80=3D9D&amp;nbsp; It=3DE2=3D80=3D99s not surprising t=
o see this g=3D</span><br><span>iven the pressure this election will put on t=
he new Speaker. &amp;nbsp;He needs t=3D</span><br><span>o set a strong found=
ation for his own future, and helping Obama score a tax t=3D</span><br><span=
> ouchdown on him is not on the top of his list of objectives. &amp;nbsp;&lt;=
/span&gt;&lt;/=3D</span><br><span>p&gt;&lt;p style=3D3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color=3D</span><br><span>: rgba(130, 98=
, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=3D</span><br>=
<span>: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255=
, 255, 255, 0)=3D</span><br><span>;"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt=
;p style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=3D</span><br><spa=
n>osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=
-l=3D</span><br><span>etterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span sty=
le=3D3D"background-color: rgba=3D</span><br><span>(255, 255, 255, 0);"&gt;Du=
ring a statement before he met with Obama, Ryan said =3DE2=3D</span><br><spa=
n>=3D80=3D9CWe will take our conservative principles and we will apply those=
conse=3D</span><br><span>rvative principles to the problems of the day to o=
ffer our fellow citizens s=3D</span><br><span>olutions to the problems in th=
eir daily lives =3DE2=3D80=3DA6. These are not going=3D</span><br><span> to b=
e things that we will be able to accomplish with this president still i=3D</=
span><br><span>n the White House. It is an agenda for what we will do next y=
ear with a Repu=3D</span><br><span>blican president to get our country back o=
n track. This is what 2016=3DE2=3D80=3D99=3D</span><br><span>s all about. It=
=3DE2=3D80=3D99s going to be a year of ideas.=3DE2=3D80=3D9D&lt;/span&gt;&lt=
;/p&gt;&lt;p=3D</span><br><span> style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rg=3D</span><br><span>ba(130, 98, 83, 0.09803=
92); text-decoration: -webkit-letterpress; margin: 0i=3D</span><br><span>n 0=
in 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;&amp;=3D</span><br><span>nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p style=3D3D=
"color: rgba(0, 0, 0, 0.701961); -webkit-composit=3D</span><br><span>ion-fil=
l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=3D</sp=
an><br><span>rpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D3D"backg=
round-color: rgba(255=3D</span><br><span>, 255, 255, 0);"&gt;&lt;b&gt;&lt;u&=
gt;Political Realities&lt;/u&gt;&lt;/b&gt;&lt;b&gt;&lt;u&gt;&lt;/u&gt;&lt;/b=
&gt;&lt;/span&gt;&lt;/p&gt;&lt;=3D</span><br><span>p style=3D3D"color: rgba(=
0, 0, 0, 0.701961); -webkit-composition-fill-color: r=3D</span><br><span>gba=
(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 6=3D=
</span><br><span>pt 0in;"&gt;&lt;span style=3D3D"background-color: rgba(255,=
255, 255, 0);"&gt;William G=3D</span><br><span>ale and Aaron Krupkin, resea=
rchers at Brookings, recently wrote a paper titl=3D</span><br><span>ed =3DE2=
=3D80=3D9CMajor Tax Issues in 2016;=3DE2=3D80=3D9D Keeping in mind both the c=
urr=3D</span><br><span>ent political climate and the probable environment fo=
r legislation in 2016, t=3D</span><br><span>he two researchers write that =3D=
E2=3D80=3D9CComprehensive tax reform is easy to t=3D</span><br><span>alk abo=
ut, but hard to do. The pursuit of sweeping tax simplification is a n=3D</sp=
an><br><span>oble goal, but quixotic.=3DE2=3D80=3D9D &amp;nbsp;&lt;/span&gt;=
&lt;/p&gt;&lt;p class=3D3D"MsoNormal" st=3D</span><br><span>yle=3D3D"color: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=3D</span><br><=
span>130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-b=
ottom=3D</span><br><span>: 0.0001pt;"&gt;&lt;span style=3D3D"background-colo=
r: rgba(255, 255, 255, 0);"&gt;At th=3D</span><br><span>e end of the day 201=
6 is an election year and any legislative proposals that=3D</span><br><span>=
come forward during it will reflect that.&amp;nbsp; There are many exciting=
pos=3D</span><br><span>sibilities for tax reform in 2016, but there is also=
no reason to think that=3D</span><br><span> the political gridlock that has=
defined Washington for so long will ease up=3D</span><br><span> enough whil=
e both parties vie for control of the country by drawing contest=3D</span><b=
r><span>s.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=
=3D3D"color: rgba(0, 0, 0, 0.70=3D</span><br><span>1961); -webkit-compositio=
n-fill-color: rgba(130, 98, 83, 0.0980392); text-de=3D</span><br><span>corat=
ion: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;----------------&lt;/=
p=3D</span><br><blockquote type=3D"cite"><span>&lt;p class=3D3D"MsoNormal" s=
tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D</span><br></blockqu=
ote><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-=3D</span><br><span>letterpress; margin-bottom: 0.0001pt;"&gt;Rece=
nt Updates&lt;/p&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div=3D</span><br><b=
lockquote type=3D"cite"><span>Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&=
gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb=3D</span><br></blockquote>=
<span>. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&l=
t;/div&gt;&lt;div&gt;&lt;span sty=3D</span><br><span>le=3D3D"background-colo=
r: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for No=3D</span><br><spa=
n>w &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Chal=
lenged &amp;nbsp;(Jan. 25)&lt;/=3D</span><br><span>div&gt;&lt;div&gt;Regulat=
ing the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/He=
=3D</span><br><span>althcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt=
;&lt;span style=3D3D"color: rgba(0, 0, 0,=3D</span><br><span> 0.701961); -we=
bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=3D</span><br><=
span>xt-decoration: -webkit-letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan=
. 17)&lt;/span&gt;=3D</span><br><span>&lt;br style=3D3D"color: rgba(0, 0, 0,=
0.701961); -webkit-composition-fill-color:=3D</span><br><span> rgba(130, 98=
, 83, 0.0980392);"&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961)=3D</=
span><br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392=
);"&gt;2016 Tax Ag=3D</span><br><span>enda on the Hill &amp;nbsp;(Jan. 16)&l=
t;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.7=3D</span><br><span>019=
61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;Glass=
=3D</span><br><span>-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div=
style=3D3D"color: rgba(0, 0, 0, 0.=3D</span><br><span>701961); -webkit-comp=
osition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;spa=3D</span><br><=
span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Pol=
icy Issues=3D</span><br><span> &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&l=
t;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=3D</span><br><span>ebkit=
-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D=
3D"=3D</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;Sanders=
Proposals/GS &amp;amp; TBTF (=3D</span><br><span>Jan. 7)&lt;/span&gt;&lt;/d=
iv&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=3D</span=
> <br><span>mposition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span s=
tyle=3D3D"backgrou=3D</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;=
Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)=3D</span><br><span>&lt;/span&g=
t;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
positi=3D</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&=
lt;span style=3D3D"background-colo=3D</span><br><span>r: rgba(255, 255, 255,=
0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/=3D</span><b=
r><span>span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=
;"&gt;Year-End Revi=3D</span><br><span>ew: Fin. Reg.&amp;nbsp;&lt;/span&gt;&=
lt;span style=3D3D"background-color: rgba(255, 255, 25=3D</span><br><span>5,=
0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"back=
ground-color: rgba(2=3D</span><br><span>55, 255, 255, 0);"&gt;Omnibus Review=
(Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color:=3D</span><br><s=
pan> rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0=3D</span><br><span>.0980392);"&gt;&lt;span style=3D3D"background-color:=
rgba(255, 255, 255, 0);"&gt;Omnibu=3D</span><br><span>s Situation &amp;nbsp=
;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0=
=3D</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392);"&gt;&lt;sp=3D</span><br><span>an style=3D3D"background-color:=
rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks=3D</span><br><span> (Dec.=
10)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=
1); -webkit=3D</span><br><span>-composition-fill-color: rgba(130, 98, 83, 0.=
0980392);"&gt;&lt;span style=3D3D"backg=3D</span><br><span>round-color: rgba=
(255, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/di=3D=
</span><br><span>v&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -we=
bkit-composition-fill-col=3D</span><br><span>or: rgba(130, 98, 83, 0.0980392=
);"&gt;&lt;span style=3D3D"background-color: rgba(255=3D</span><br><span>, 2=
55, 255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;=
&lt;/div&gt;&lt;div=3D</span><br><span> style=3D3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fill-color: rg=3D</span><br><span>ba(130, 98, 83,=
0.0980392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255,=3D</sp=
an><br><span> 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/=
div&gt;&lt;div style=3D3D"color: rgba=3D</span><br><span>(0, 0, 0, 0.701961)=
; -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=3D</span><br><span=
> 0392);"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;Shelby 2.0=3D</span><br><span> Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/=
div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=3D</span><br><span>61)=
; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span=
st=3D</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&g=
t;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div styl=3D</span><br><span>e=3D3D"=
color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=3D</=
span><br><span>0, 98, 83, 0.0980392);"&gt;&lt;span style=3D3D"background-col=
or: rgba(255, 255, 255,=3D</span><br><span> 0);"&gt;----&lt;/span&gt;&lt;/di=
v&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&l=
t;br&gt;On Feb 2, 2016, a=3D</span><br><span>t 11:59 PM, Dana &amp;lt;&lt;a h=
ref=3D3D"<a href=3D"mailto:[email-masked]">mailto:[email-masked]=
</a>"&gt;danachasin@gmai=3D</span><br><span><a href=3D"http://l.com">l.com</=
a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote ty=
pe=3D3D"cite"&gt;&lt;div&gt;&lt;meta http-=3D</span><br><span>equiv=3D3D"con=
tent-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span=
&gt;&lt;/s=3D</span><br><span>pan&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-eq=
uiv=3D3D"content-type" content=3D3D"text/html; chars=3D</span><br><span>et=3D=
3Dutf-8"&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0); co=3D</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-composit=
ion-fill-color: rgba(130, 98, 8=3D</span><br><span>3, 0.0980392);"&gt;Mike &=
amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;p class=3D3D"MsoNormal" style=3D3D=
"=3D</span><br><span>color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=
l-color: rgba(130, 98=3D</span><br><span>, 83, 0.0980392); margin-bottom: 0.=
0001pt;"&gt;Congratulations, team. &amp;nbsp;&lt;sp=3D</span><br><span>an st=
yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Last night's narrow&a=
mp;n=3D</span><br><span>bsp;win in Iowa&amp;nbsp;&lt;/span&gt;provided a big=
moral victory and took some of th=3D</span><br><span>e win out of the chall=
enger's sails. &amp;nbsp;It also means&lt;span style=3D3D"backg=3D</span><br=
> <span>round-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;that, for at least=
several weeks=3D</span><br><span>, the Democratic nomination contest will c=
ontinue apace. &amp;nbsp;And it is lik=3D</span><br><span>ely that Wall Stre=
et regulation will likely remain one the &amp;nbsp;campaign's c=3D</span><br=
> <span>entral issues. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoN=
ormal" style=3D3D"color: rgba(=3D</span><br><span>0, 0, 0, 0.701961); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.0980=3D</span><br><span>392); m=
argin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 2=
=3D</span><br><span>55, 255, 0);"&gt;At the heart of this debate is the Dodd=
-Frank Act (DFA). &amp;nbsp=3D</span><br><span>; Public opinion is still inf=
luenced in the main by memories of the 2008 fin=3D</span><br><span>ancial cr=
isis and the recession that followed, so the candidates' views on D=3D</span=
> <br><span>FA get special attention.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&=
gt;&lt;p class=3D3D"MsoNormal" style=3D</span><br><span>=3D3D"color: rgba(0,=
0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=3D</span><br><spa=
n>, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"bac=
kground-co=3D</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;Below, we re-=
examine these views and try to cl=3D</span><br><span>ear up the misconceptio=
ns that make it hard for&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"b=3D</spa=
n><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;voters to identify t=
he candidate b=3D</span><br><span>est able to defend the protections that&am=
p;nbsp;&lt;/span&gt;&lt;span style=3D3D"backgroun=3D</span><br><span>d-color=
: rgba(255, 255, 255, 0);"&gt;DFA provides millions of American consumer=3D<=
/span><br><span>s, investors, and workers.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&=
lt;p class=3D3D"MsoNormal" style=3D3D"c=3D</span><br><span>olor: rgba(0, 0, 0=
, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=3D</span><br><spa=
n> 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backgrou=
nd-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;=
&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"colo=3D</span><br><span>r: r=
gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=3D<=
/span><br><span>, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D=
3D"background-color: rgb=3D</span><br><span>a(255, 255, 255, 0);"&gt;Dana&lt=
;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: r=3D</span=
> <br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130,=
98, 83, 0.=3D</span><br><span>0980392); margin-bottom: 0.0001pt;"&gt;&lt;sp=
an style=3D3D"background-color: rgba(25=3D</span><br><span>5, 255, 255, 0);"=
&gt;-----------------&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" styl=
e=3D3D=3D</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=
on-fill-color: rgba(130, 9=3D</span><br><span>8, 83, 0.0980392); margin-bott=
om: 0.0001pt;"&gt;&lt;span style=3D3D"background-color=3D</span><br><span>: r=
gba(255, 255, 255, 0);"&gt;The assertion that DFA doesn=3DE2=3D80=3D99t do e=
nough t=3D</span><br><span>o rein in Wall Street has become some sort of pro=
gressive shibboleth that as=3D</span><br><span> misleading as it is short-si=
ghted and self-defeating. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/=3D</span><b=
r><span>p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.7=
01961); -webkit-co=3D</span><br><span>mposition-fill-color: rgba(130, 98, 83=
, 0.0980392); margin-bottom: 0.0001pt;=3D</span><br><span>"&gt;&lt;span styl=
e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Polling shows th=3D</sp=
an><br><span>e American public believes strong financial regulation is criti=
cally needed (=3D</span><br><span>74 percent of Democrats, 56 percent Indepe=
ndents, 46 percent Republicans, 64=3D</span><br><span> percent all voters). &=
amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255=3D</spa=
n><br><span>, 255, 255, 0);"&gt;Polling has also shown that 66 percent of Am=
ericans are eit=3D</span><br><span>her =3DE2=3D80=3D9Cnot very familiar=3DE2=
=3D80=3D9D with or have =3DE2=3D80=3D9Cnever heard of=3D</span><br><span>=3D=
E2=3D80=3D9D Dodd-Frank. &amp;nbsp;It&amp;nbsp;is difficult for reasonable d=
ialogue to b=3D</span><br><span>e conducted in an environment made up of str=
ong support for regulatory refor=3D</span><br><span>m on one hand and a lack=
of knowledge of what is in DFA on the other.&lt;/span&gt;=3D</span><br><spa=
n>&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-=3D</span><br><span>composition-fill-color: rgba(130, 98, 83,=
0.0980392); margin-bottom: 0.0001p=3D</span><br><span>t;"&gt;&lt;span style=
=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Any public deb=3D</span>=
<br><span>ate on DFA is hampered by the complexity of the issues involved. &=
amp;nbsp;Addit=3D</span><br><span>ionally, there is a perception that it has=
failed in its objectives. &amp;nbsp;B=3D</span><br><span>&lt;/span&gt;&lt;s=
pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;eyond the f=3D<=
/span><br><span>act that the law isn=3DE2=3D80=3D99t even fully implemented,=
major financial insti=3D</span><br><span>tutions have already begun restruc=
turing&lt;/span&gt;&lt;span style=3D3D"background-col=3D</span><br><span>or:=
rgba(255, 255, 255, 0);"&gt;&amp;nbsp;in ways that indicate the law is work=
ing p=3D</span><br><span>roperly.&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"=
background-color: rgba(255, 255, 255, 0)=3D</span><br><span>;"&gt;&amp;nbsp;=
But how many voters know this?&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNo=
rmal" st=3D</span><br><span>yle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=
-composition-fill-color: rgba(=3D</span><br><span>130, 98, 83, 0.0980392); m=
argin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D3D"background=3D</span><b=
r><span>-color: rgba(255, 255, 255, 0);"&gt;Has Dodd-Frank Worked?&lt;/u&gt;=
&lt;/b&gt;&lt;/p&gt;&lt;p class=3D3D=3D</span><br><span>"MsoNormal" style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D</span><br><spa=
n>l-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;sp=
an style=3D</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0);"=
&gt;The Great Recession and the r=3D</span><br><span>esulting Dodd-Frank Act=
changed the trajectory of the financial industry. &amp;n=3D</span><br><span=
> bsp;The law isn't perfect but it is having a stabilizing effect. &amp;nbsp;=
Some o=3D</span><br><span>f the biggest firms on Wall Street -- MetLife, Cit=
iGroup, General Electric -=3D</span><br><span>- have shrunk since the law wa=
s enacted and as a direct result of its regula=3D</span><br><span>tions. &am=
p;nbsp;Those that haven't shrunk are under even more pressure to break=3D</s=
pan><br><span> up or reduce their size now than they were before Dodd-Frank.=
&lt;/span&gt;&lt;/p&gt;&lt;p c=3D</span><br><span>lass=3D3D"MsoNormal" style=
=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=3D</span><br><span>io=
n-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt=
;spa=3D</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0=
);"&gt;The candidates are spl=3D</span><br><span>it concerning whether or no=
t DFA is an full and sufficient model for regulat=3D</span><br><span>ing fin=
ancial markets. &amp;nbsp;While HRC wants to preserve and protect the pro=3D=
</span><br><span>gress made by DFA while bolstering certain parts of the law=
, while Sanders c=3D</span><br><span>onsiders the law to be well intentioned=
yet deeply flawed.&amp;nbsp; However, qu=3D</span><br><span>estions should b=
e raised about judging the DFA=3DE2=3D80=3D99s efficacy right now -=3D</span=
> <br><span> each candidate is forming an opinion on the act despite the fact=
that DFA h=3D</span><br><span>asn=3DE2=3D80=3D99t even reached maturity yet=
- only about 70 percent of DFA provi=3D</span><br><span>sions have been imp=
lemented.&amp;nbsp;&amp;nbsp;Beyond the implementation gap is the=3D</span><=
br><span> issue that the results of financial reform cannot be seen overnigh=
t.&amp;nbsp; A=3D</span><br><span> piece of legislation as large and multifa=
ceted as Dodd-Frank might take a d=3D</span><br><span>ecade to ripen.&amp;nb=
sp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=
(=3D</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgb=
a(130, 98, 83, 0.0980=3D</span><br><span>392); margin-bottom: 0.0001pt;"&gt;=
&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255=
, 0);"&gt;Even as the greatest effects of DFA remain to be see, recent e=3D<=
/span><br><span>vents indicate that DFA is working as it was intended to.&am=
p;nbsp; Any candidat=3D</span><br><span>e who claims that DFA is in need of m=
ajor overhaul needs to answer this ques=3D</span><br><span>tion: What pressi=
ng need is there to overturn a law that has, to this point,=3D</span><br><sp=
an> largely accomplished its overarching objectives?&lt;/span&gt;&lt;span st=
yle=3D3D"backg=3D</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&=
amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNormal=3D</span><br><spa=
n>" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=
r: r=3D</span><br><span>gba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt=
;"&gt;&lt;b&gt;&lt;u style=3D3D"backgr=3D</span><br><span>ound-color: rgba(2=
55, 255, 255, 0);"&gt;2016 Candidates and Dodd-Frank&lt;/u&gt;&lt;/b&gt;&lt;=
=3D</span><br><span>/p&gt;&lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-c=3D</span><br><span>omposition-fill-color: rgb=
a(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt=3D</span><br><span>;"&gt;=
&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;The candid=
ates i=3D</span><br><span>n this year's primaries have given voters two choi=
ces: stick with Dodd-Frank=3D</span><br><span> and add some tweaks or repeal=
it/change it fundamentally. There is only one=3D</span><br><span> candidate=
in the former group - HRC. Every other candidate, including Berni=3D</span>=
<br><span>e Sanders, intends to greatly change Dodd-Frank, or get rid of it a=
ll togeth=3D</span><br><span>er, if elected. With that choice in mind, it is=
necessary to remember how mo=3D</span><br><span>numental Dodd-Frank was and=
the political climate that it was passed in - on=3D</span><br><span>e with a=
Democratic majority in both houses. &amp;nbsp;&lt;/span&gt;&lt;span style=3D=
3D"bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;&amp;nb=
sp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNorm=3D</span><br><span>al" st=
yle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=3D<=
/span><br><span> rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;=
&lt;span style=3D3D"back=3D</span><br><span>ground-color: rgba(255, 255, 255=
, 0);"&gt;DFA enjoyed widespread support in the=3D</span><br><span> years im=
mediately following its passage;&amp;nbsp;Clinton needs to ring the ala=3D</=
span><br><span>rm bells that her opponents intend to kill off an effective t=
ool for regulat=3D</span><br><span>ing Wall Street for the sake of trying ou=
t unproven strategies that are buil=3D</span><br><span>t more on ideology th=
an policy.&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-color:=3D</s=
pan><br><span> rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=
&lt;p class=3D3D"MsoNormal" style=3D3D"c=3D</span><br><span>olor: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=3D</span><br><s=
pan> 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D3D"backgr=
ound-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;Obviously, most R=
epublican candidates would prefer t=3D</span><br><span>o do away with Dodd-Fra=
nk completely as it is greatly disliked by their bigg=3D</span><br><span>est=
supporters. Bernie Sanders proposes something similar to Glass-Steagall,=3D=
</span><br><span> but also wants to create a list of the banks that are "too=
-big-too-fail" an=3D</span><br><span>d "break them up." He outlined his inte=
ntions in legislation he proposed to C=3D</span><br><span>ongress back in Ma=
y 2015. Bloomberg Politics notes, "Similar to legislation h=3D</span><br><sp=
an>e introduced in previous years, when Democrats controlled the U.S. Senate=
, t=3D</span><br><span>he bill has little chance of advancing." &amp;nbsp;&l=
t;/span&gt;&lt;/p&gt;&lt;p class=3D3D"MsoNor=3D</span><br><span>mal" style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=3D</span><=
br><span>: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;sp=
an style=3D3D"bac=3D</span><br><span>kground-color: rgba(255, 255, 255, 0);"=
&gt;So voters can decide on strengthenin=3D</span><br><span>g a law that is a=
lready working to reign in Wall Street's risks or abandonin=3D</span><br><sp=
an>g it for either less regulation or poorly aimed regulations. Considering t=
he=3D</span><br><span> historical record of these other reform ideas, how ca=
n voters be expected t=3D</span><br><span>o take those suggestions seriously=
?&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Jan 28=
, 2=3D</span><br><span>016, at 8:19 PM, Dana &amp;lt;&lt;a href=3D3D"<a href=
=3D"mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danacha=
sin=3D</span><br><span>@<a href=3D"http://gmail.com">gmail.com</a>&lt;/a&gt;=
&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote type=3D3D"cite=
"&gt;&lt;div&gt;&lt;meta h=3D</span><br><span>ttp-equiv=3D3D"content-type" c=
ontent=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span=3D</span><b=
r><blockquote type=3D"cite"><span>&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;me=
ta http-equiv=3D3D"content-type" content=3D3D"text/html; c=3D</span><br></bl=
ockquote><span>harset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;=
/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-typ=3D</span><br><span>e=
" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/=
span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta=3D</span><br><span> http-equiv=3D3D"=
content-type" content=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;s=
p=3D</span><br><span>an style=3D3D"background-color: rgba(255, 255, 255, 0);=
"&gt;Mike &amp;amp; Co. --&lt;/sp=3D</span><br><span>an&gt;&lt;br&gt;&lt;spa=
n style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/sp=
an&gt;=3D</span><br><span>&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; ma=
rgin-bottom: 0pt;"&gt;&lt;span style=3D3D=3D</span><br><span>"vertical-align=
: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Ordina=3D</span><b=
r><span>rily this time of year, you would perhaps start to spot leaks or hea=
r scuttl=3D</span><br><span>ebutt about the president's spending plans for t=
he next fiscal year, in anti=3D</span><br><span>cipation of the statutory Fe=
bruary White House budget rollout. &amp;nbsp;No one n=3D</span><br><span>oti=
ced when the administration announced it would miss next week's legal bud=3D=
</span><br><span>get submission deadline. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&=
lt;p dir=3D3D"ltr" style=3D3D"margin-top=3D</span><br><span>: 0pt; margin-bo=
ttom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline; backgro=3D</spa=
n><br><span>und-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&l=
t;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"m=3D</span><br><span>argin-top: 0pt; m=
argin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline=3D</span=
> <br><span>; background-color: rgba(255, 255, 255, 0);"&gt;With FY17 topline=
s set in the o=3D</span><br><span>mnibus bill passed last month, you may hea=
r little in the Beltway about the b=3D</span><br><span>udget anytime soon (a=
lthough the Chair did announce plans yesterday to intro=3D</span><br><span>d=
uce a budget resolution this year, to the surprise of many, including Major=3D=
</span><br><span>ity Leader McConnell). &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt=
;p dir=3D3D"ltr" style=3D3D"margin-top: 0=3D</span><br><span>pt; margin-bott=
om: 0pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255=3D</sp=
an><br><span>, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" s=
tyle=3D3D"margin-top: 0pt; margin-bottom=3D</span><br><span>: 0pt;"&gt;&lt;s=
pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Even on th=3D</=
span><br><span>e campaign trail in the Granite State, with its famously flin=
ty tax-o-phobes=3D</span><br><span>, nary a word is heard about the debt, le=
t alone defaulting it, not this yea=3D</span><br><span>r. &amp;nbsp;&lt;/spa=
n&gt;&lt;/p&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=
=3D</span><br><span>"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D=
3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;=3D</span><br><span>span sty=
le=3D3D"vertical-align: baseline; background-color: rgba(255, 255, 255=3D</s=
pan><br><span>, 0);"&gt;The federal budget, deficits, and the debt have not y=
et gotten much a=3D</span><br><span>ir play yet this campaign. &amp;nbsp;But=
if we lifted up the car hood, what woul=3D</span><br><span>d we see?&amp;nb=
sp; What is our medium-long term fiscal outlook, what would the i=3D</span><=
br><span>mpact on it of the candidates' proposals be, and what fiscal issues=
are most=3D</span><br><span> likely to arise in the primary debate?&lt;/spa=
n&gt;&lt;/p&gt;&lt;span style=3D3D"background-=3D</span><br><span>color: rgb=
a(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D=
3D"margin-to=3D</span><br><span>p: 0pt; margin-bottom: 0pt;"&gt;&lt;span sty=
le=3D3D"vertical-align: baseline; backgr=3D</span><br><span>ound-color: rgba=
(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"back=
grou=3D</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;=
/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin=3D</span><br><span>-top: 0pt;=
margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline; bac=3D=
</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt=
;&lt;/p&gt;&lt;span style=3D3D"backgr=3D</span><br><span>ound-color: rgba(25=
5, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"m=
arg=3D</span><br><span>in-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=
3D"vertical-align: baseline; b=3D</span><br><span>ackground-color: rgba(255,=
255, 255, 0);"&gt;--------------&lt;/span&gt;&lt;/p&gt;&lt;span sty=3D</spa=
n><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;=
&lt;/span&gt;&lt;p dir=3D3D"ltr" s=3D</span><br><span>tyle=3D3D"margin-top: 0=
pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"font-weight: 70=3D</span><br=
> <span>0; text-decoration: underline; vertical-align: baseline; background-c=
olor: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;CBO 10-year Deficit Pr=
ojections&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"=3D</span><br><span>ltr" styl=
e=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"font-wei=
g=3D</span><br><span>ht: 700; text-decoration: underline; vertical-align: ba=
seline; background-co=3D</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;&l=
t;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-=3D</sp=
an><br><span>top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-=
align: baseline; back=3D</span><br><span>ground-color: rgba(255, 255, 255, 0=
);"&gt;The CBO reported last week that it ex=3D</span><br><span>pects the an=
nual deficit to grow from its current $450 billion to $1.3 trill=3D</span><b=
r><span>ion by 2016. Candidates issuing calls for increased spending, agains=
t this b=3D</span><br><span>ackdrop, may be called to account. &amp;nbsp;&lt=
;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"=3D</span><br><span>margi=
n-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: base=
lin=3D</span><br><span>e; background-color: rgba(255, 255, 255, 0);"&gt;&lt;=
br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" s=3D</span><br><span>tyle=3D=
3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-ali=
gn:=3D</span><br><span> baseline; background-color: rgba(255, 255, 255, 0);"=
&gt;Perhaps in recognition=3D</span><br><span> of this, both HRC and Sen. Sa=
nders have recently and admirably detailed how=3D</span><br><span> they woul=
d use executive actions to enact parts of their revenue packages w=3D</span>=
<br><span>ithout Congressional support. &amp;nbsp;&lt;/span&gt;&lt;span styl=
e=3D3D"background-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;Bot=
h have proposed extensive new spending plans as p=3D</span><br><span>art of t=
heir primary platform. however, it may be time for the candidates to=3D</spa=
n><br><span> get serious about the fiscal viability of these plans from a fi=
scal perspec=3D</span><br><span>tive.&lt;/span&gt;&lt;/p&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b=3D</span><br><span>r&=
gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-botto=
m: 0pt;"&gt;&lt;span=3D</span><br><span> style=3D3D"font-weight: 700; text-d=
ecoration: underline; vertical-align: base=3D</span><br><span>line; backgrou=
nd-color: rgba(255, 255, 255, 0);"&gt;Clinton -- Fiscal Stimulus?=3D</span><=
br><span>&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"background-color: rgba(2=
55, 255, 255, 0);"&gt;&lt;br&gt;&lt;/s=3D</span><br><span>pan&gt;&lt;p dir=3D=
3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span styl=3D=
</span><br><span>e=3D3D"vertical-align: baseline; background-color: rgba(255=
, 255, 255, 0);"&gt;HR=3D</span><br><span>C has proposed a tax package that w=
ill raise federal revenue by $500 billion=3D</span><br><span> over ten years=
, to be used for a $350 billion =3DE2=3D80=3D9CCollege Compact=3DE2=3D80=3D<=
/span><br><span>=3D9D plan, for tax deductions on health care spending, and t=
o fund an ambitio=3D</span><br><span>us infrastructure investment package. &=
amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background=3D</span><br><span>-col=
or: rgba(255, 255, 255, 0);"&gt;Her spending plans are split between those w=
=3D</span><br><span>hich provide short-term economic stimulus and those whic=
h are aimed at provi=3D</span><br><span>ding longer-term boost.&amp;nbsp; He=
r $250 billion plan to increase infrastructu=3D</span><br><span>re investmen=
t in the country =3DE2=3D80=3D93 paid for by reviving the =3DE2=3D80=3D9CBui=
=3D</span><br><span>ld America Bonds=3DE2=3D80=3D9D program and federal reve=
nue -- &amp;nbsp;works on two f=3D</span><br><span>ronts.&lt;/span&gt;&lt;/p=
&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt=3D</s=
pan><br><span>;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255=
, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;=3D</span><br><span>&lt;p dir=3D3=
D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=
3D=3D</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;First, h=
iring middle-class worke=3D</span><br><span>rs in construction, engineering,=
and the trades the plan puts more money int=3D</span><br><span>o the hands o=
f people who tend to spend that money quickly.&amp;nbsp; Second, im=3D</span=
> <br><span>proving roads, bridges, and tunnels in America the plan will make=
future tra=3D</span><br><span>nsport of goods more reliable, speedy, and sa=
fe, all calculated to spur econ=3D</span><br><span>omic growth.&amp;nbsp;&lt=
;/span&gt;&lt;/p&gt;&lt;span style=3D3D"background-color: rgba(255, 255,=3D<=
/span><br><span> 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" sty=
le=3D3D"margin-top: 0pt; margin-bottom=3D</span><br><span>: 0pt;"&gt;&lt;spa=
n style=3D3D"vertical-align: baseline; background-color: rgba(255,=3D</span>=
<br><span> 255, 255, 0);"&gt;The =3DE2=3D80=3D9CCollege Compact=3DE2=3D80=3D=
9D aims to forgive studen=3D</span><br><span>t loans, lower college tuition,=
and make community colleges tuition-free. &amp;n=3D</span><br><span>bsp;By r=
emoving the burden of debt from young graduates, HRC hopes to free t=3D</spa=
n><br><span>hose people up to begin consuming at a higher rate.&amp;nbsp; Th=
e current home-o=3D</span><br><span>wnership rate for young Americans is dis=
tressingly low largely due to their d=3D</span><br><span>ebt burden after co=
llege, HRC would rather young Americans take debt on in a=3D</span><br><span=
> n equity-building purchase than spend thirty years repaying their college d=
e=3D</span><br><span>gree. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D=
3D"background-color: rgba(255, 255, 255, 0=3D</span><br><span>);"&gt;&lt;br&=
gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-botto=
m: 0pt;"=3D</span><br><blockquote type=3D"cite"><span>&lt;span style=3D3D"fo=
nt-weight: 700; text-decoration: underline; vertical-align=3D</span><br></bl=
ockquote><span>: baseline; background-color: rgba(255, 255, 255, 0);"&gt;The=
Sanders Health Ca=3D</span><br><span>re Tax Bill&lt;/span&gt;&lt;/p&gt;&lt;=
span style=3D3D"background-color: rgba(255, 255, 255, 0=3D</span><br><span>)=
;"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt;=
margin-bottom: 0pt;"=3D</span><br><blockquote type=3D"cite"><span>&lt;span s=
tyle=3D3D"vertical-align: baseline; background-color: rgba(255, 255, 2=3D</s=
pan><br></blockquote><span>55, 0);"&gt;Sanders=3DE2=3D80=3D99 $14 trillion s=
pending plan, his =3DE2=3D80=3D9CMedicare f=3D</span><br><span>or All=3DE2=3D=
80=3D9D proposal, would require the single largest tax hike in the n=3D</spa=
n><br><span>ation=3DE2=3D80=3D99s history, bringing taxes on the wealthy to l=
evels not seen si=3D</span><br><span>nce Reagan.&amp;nbsp; These taxes, the s=
ize of which already makes them non-star=3D</span><br><span>ters even among D=
emocrats in Congress, are to be used to enact single-payer h=3D</span><br><s=
pan>ealthcare legislation =3DE2=3D80=3D93 legislation which didn=3DE2=3D80=3D=
99t even get a v=3D</span><br><span>ote during a Democratic majority in Obam=
a=3DE2=3D80=3D99s first term. &lt;/span&gt;&lt;/p&gt;&lt;=3D</span><br><span=
> span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt=
;/span&gt;&lt;p dir=3D3D=3D</span><br><span>"ltr" style=3D3D"margin-top: 0pt=
; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical=3D</span><br><span>-a=
lign: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Sanders must h=
o=3D</span><br><span>pe that the economic efficiency of a single-payer healt=
h care plan, which fi=3D</span><br><span>nds its savings in the reduced role=
of middle-men and insurance companies, w=3D</span><br><span>ill result in s=
avings passed onto Americans =3DE2=3D80=3D93 Americans who will, in=3D</span=
> <br><span> their turn, spend those savings in the economy at large. &lt;/sp=
an&gt;&lt;/p&gt;&lt;span s=3D</span><br><span>tyle=3D3D"background-color: rg=
ba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr"=3D</spa=
n><br><span> style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span st=
yle=3D3D"vertical-alig=3D</span><br><span>n: baseline; background-color: rgb=
a(255, 255, 255, 0);"&gt;He has found politic=3D</span><br><span>al success i=
n his promise to make colleges and universities in America tuiti=3D</span><b=
r><span>on-free.&amp;nbsp; The impetus behind this plan is similar to that o=
f Mrs. Clint=3D</span><br><span>on =3DE2=3D80=3D93 students with lower debt b=
urdens are going to spend a greater p=3D</span><br><span>ortion of their inc=
ome on food and entertainment, as well as on equity-inves=3D</span><br><span=
> tments like homes. &lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"background-co=
lor: rgba(255, 255=3D</span><br><span>, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;=
&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-botto=3D</span><br><s=
pan>m: 0pt;"&gt;&lt;span style=3D3D"font-weight: 700; text-decoration: under=
line; vertic=3D</span><br><span>al-align: baseline; background-color: rgba(2=
55, 255, 255, 0);"&gt;Campaign Impa=3D</span><br><span>ct&lt;/span&gt;&lt;/p=
&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br=
&gt;&lt;=3D</span><br><span>/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-t=
op: 0pt; margin-bottom: 0pt;"&gt;&lt;span st=3D</span><br><span>yle=3D3D"ver=
tical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;=3D</sp=
an><br><span>The CBO=3DE2=3D80=3D99s federal budget projections released las=
t week indicated th=3D</span><br><span>at the annual federal deficit will gr=
ow to $1.3 trillion by 2026.&amp;nbsp; It=3DE2=3D</span><br><span>=3D80=3D99=
s unlikely that the CBO report will be linked to the candidates' spend=3D</s=
pan><br><span>ing plans in any meaningful way.&amp;nbsp; And to be fair, eac=
h candidate has pu=3D</span><br><span>t forward proposals to raise revenue e=
quivalent to the costs of their plans (=3D</span><br><span>or at least to th=
e extent that their own analyses can be trusted); this is o=3D</span><br><sp=
an>ften a rarity amongst politicians running for office and they should be a=
ppl=3D</span><br><span>auded for doing so.&amp;nbsp; Because of this, both c=
ampaigns can claim that the=3D</span><br><span>ir proposals will not raise t=
he federal deficit =3DE2=3D80=3D93 it=3DE2=3D80=3D99s unlik=3D</span><br><sp=
an>ely that those claims will remain unchallenged in the future. &lt;/span&g=
t;&lt;/p&gt;&lt;sp=3D</span><br><span>an style=3D3D"background-color: rgba(2=
55, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"=3D</span><br><s=
pan>ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=
3D"font-weig=3D</span><br><span>ht: 700; vertical-align: baseline; backgroun=
d-color: rgba(255, 255, 255, 0);=3D</span><br><span>"&gt;&lt;u&gt;Tax Founda=
tion Analysis &lt;/u&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"backgroun=
d-color:=3D</span><br><span> rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span=
&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt=3D</span><br><span>; marg=
in-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline; background=
-c=3D</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Recent analyses by t=
he Tax Foundation, a grou=3D</span><br><span>p which uses dynamic scoring me=
thods to judge revenue, have found that Clint=3D</span><br><span>on=3DE2=3D8=
0=3D99s plan will reduce economic output by 1 percent over a decade, wh=3D</=
span><br><span>ile Sanders=3DE2=3D80=3D99 proposals will lower GDP by a stag=
gering 9.5 percent.&amp;n=3D</span><br><span>bsp; Dynamic scoring is a contr=
oversial method of analyzing revenue estimate=3D</span><br><span>s =3DE2=3D8=
0=3D93 it takes into account the supposed deleterious effects caused by=3D</=
span><br><span> tax increases and attempts to adjust growth the reflect thos=
e effects.&lt;/spa=3D</span><br><span>n&gt;&lt;/p&gt;&lt;span style=3D3D"bac=
kground-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;=3D</s=
pan><br><span>p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt=
;"&gt;&lt;span style=3D3D"=3D</span><br><span>vertical-align: baseline; back=
ground-color: rgba(255, 255, 255, 0);"&gt;A CRS r=3D</span><br><span>eport p=
ublished in 2014, however, stated that =3DE2=3D80=3D9CA review of statistic=3D=
</span><br><span>al evidence suggests that both labor supply and savings and=
investment are r=3D</span><br><span>elatively insensitive to tax rates.=3DE=
2=3D80=3D9D&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" s=3D</span><=
br><span>tyle=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=
3D"vertical-align:=3D</span><br><span> baseline; background-color: rgba(255,=
255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D=3D</span>=
<br><span>"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span=
style=3D3D"vertical=3D</span><br><span>-align: baseline; background-color: r=
gba(255, 255, 255, 0);"&gt;While each camp=3D</span><br><span>aign will be i=
nclined to&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(=
2=3D</span><br><span>55, 255, 255, 0);"&gt;argue that any analysis which men=
tions economic contracti=3D</span><br><span>on as an effect of their plans i=
s based on improper economics, it may not ma=3D</span><br><span>tter to vote=
rs whether they=3DE2=3D80=3D99re right or not. &amp;nbsp;American voters h=3D=
</span><br><span>ave always been tax-averse but will pay for what they want.=
&amp;nbsp;Maybe the b=3D</span><br><span>iggest yet-unanswered question: do=
they want another overhaul of he nation's=3D</span><br><span> healthcare en=
ough to pay a new record in tax increases?&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D=
3D=3D</span><br><span>"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"=
&gt;&lt;span style=3D3D"backgrou=3D</span><br><span>nd-color: rgba(255, 255,=
255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3=
D"ma=3D</span><br><span>rgin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span styl=
e=3D3D"color: rgba(0, 0, 0, 0.70=3D</span><br><span>1961); -webkit-compositi=
on-fill-color: rgba(130, 98, 83, 0.0980392); text-de=3D</span><br><span>cora=
tion: -webkit-letterpress;"&gt;Recent Updates&lt;/span&gt;&lt;/p&gt;&lt;div s=
tyle=3D3D"color=3D</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83,=3D</span><br><span> 0.0980392); text-dec=
oration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;div&gt;Fiscal Pol: Def=3D</s=
pan><br><span>icit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span st=
yle=3D3D"background-color: rgba=3D</span><br><span>(255, 255, 255, 0);"&gt;T=
he Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/di=3D</span=
> <br><span>v&gt;&lt;div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/d=
iv&gt;&lt;div&gt;Regulating the Regu=3D</span><br><span>lators &amp;nbsp;(Ja=
n. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 2=
=3D</span><br><span>0)&lt;/div&gt;&lt;div&gt;HRC's Tax Policy &amp;nbsp;(Jan=
. 17)&lt;br&gt;&lt;div&gt;2016 Tax Agenda on the=3D</span><br><span> Hill &a=
mp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Ja=
n. 13)&lt;/div&gt;=3D</span><br><span>&lt;div&gt;&lt;span style=3D3D"backgro=
und-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Poli=3D</span><br><span>cy I=
ssues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=
3D"background-color: r=3D</span><br><span>gba(255, 255, 255, 0);"&gt;Sanders=
Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div=3D</span><br><blo=
ckquote type=3D"cite"><span>&lt;div&gt;&lt;span style=3D3D"background-color:=
rgba(255, 255, 255, 0);"&gt;Sanders' Fin=3D</span><br></blockquote><span> R=
eg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=
tyle=3D3D"background-col=3D</span><br><span>or: rgba(255, 255, 255, 0);"&gt;=
Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;=3D</span><br><span>/s=
pan&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Yea=
r-End Rev=3D</span><br><span>iew: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;=
&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"background-co=
lor: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;Omnibus Review (Dec. 15=
)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=3D</span><br><span>=
"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(=
Dec. 14=3D</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span sty=
le=3D3D"background-color: rgba(255, 255, 255, 0);"=3D</span><br><blockquote t=
ype=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&=
lt;div&gt;&lt;span style=3D3D"background-=3D</span><br></blockquote><span>co=
lor: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt=
;&lt;/div&gt;&lt;div=3D</span><br><blockquote type=3D"cite"><span>&lt;span s=
tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Nego=3D=
</span><br></blockquote><span>tiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;=
/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: r=3D</span><br><spa=
n>gba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt=
;/div&gt;&lt;div&gt;&lt;span s=3D</span><br><span>tyle=3D3D"background-color=
: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(=3D</span><br><sp=
an>Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background=
-color: rgba(255, 255, 255=3D</span><br><span>, 0);"&gt;&lt;br&gt;&lt;/span&=
gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;=
/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div=3D</span><br><blockquote ty=
pe=3D"cite"><span>On Jan 28, 2016, at 10:12 AM, Dana &amp;lt;&lt;a href=3D3D=
"<a href=3D"mailto:[email-masked]">mailto:[email-masked]</a>=3D</spa=
n><br></blockquote><span>om"&gt;<a href=3D"mailto:[email-masked]">dana=
[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt=
;&lt;blockquote type=3D3D"cit=3D</span><br><span>e"&gt;&lt;div&gt;&lt;meta h=
ttp-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dut=3D</span=
> <br><span>f-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&g=
t;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-e=
q=3D</span><br><span>uiv=3D3D"content-type" content=3D3D"text/html; charset=3D=
3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/spa=3D</span><br><span>n&gt;&lt;/div=
&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" content=3D3D"text/html=
; charset=3D</span><br><span>=3D3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span=
&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D3D"content-type" con=3D</sp=
an><br><span>tent=3D3D"text/html; charset=3D3Dutf-8"&gt;&lt;div&gt;&lt;p dir=
=3D3D"ltr" style=3D3D"color: rgba=3D</span><br><span>(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color: rgba(130, 98, 83, 0.098=3D</span><br><span>039=
2); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom:=3D=
</span><br><span> 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline; bac=
kground-color: rgba(255, 2=3D</span><br><span>55, 255, 0);"&gt;Dear Mike &am=
p;amp; Co.,&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0, 0=3D</s=
pan><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.0980392)=3D</span><br><span>; text-decoration: -webkit-letterpress; bac=
kground-color: rgba(255, 255, 255=3D</span><br><span>, 0);"&gt;&lt;br&gt;&lt=
;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=3D=
</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=
text-decoration:=3D</span><br><span> -webkit-letterpress; margin-top: 0pt; m=
argin-bottom: 0pt;"&gt;&lt;span style=3D3D"v=3D</span><br><span>ertical-alig=
n: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Pre-prim=3D</span=
> <br><span>ary endorsements from Party leaders in tight contests are rare an=
d sometimes=3D</span><br><span> understated.&amp;nbsp; To wit, President Oba=
ma remarks this week that HRC is as=3D</span><br><span> prepared to be presi=
dent as any non-Vice President as anyone&lt;/span&gt;&lt;span st=3D</span><b=
r><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;: =3DE2=3D80=3D=
9CI think that wh=3D</span><br><span>at Hillary presents is a recognition th=
at translating values into governance=3D</span><br><span> and delivering the=
goods is ultimately the job of politics, making a real-l=3D</span><br><span=
> ife difference to people in their day-to-day lives.=3DE2=3D80=3D9D&lt;/span=
&gt;&lt;/p&gt;&lt;p di=3D</span><br><span>r=3D3D"ltr" style=3D3D"color: rgba=
(0, 0, 0, 0.701961); -webkit-composition-fill-=3D</span><br><span>color: rgb=
a(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; m=3D</span>=
<br><span>argin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"backgr=
ound-color: rgba(2=3D</span><br><span>55, 255, 255, 0);"&gt;&lt;br&gt;&lt;/s=
pan&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0=3D</span=
> <br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=
0980392); t=3D</span><br><span>ext-decoration: -webkit-letterpress; margin-t=
op: 0pt; margin-bottom: 0pt;"&gt;&lt;=3D</span><br><span>span style=3D3D"ver=
tical-align: baseline; background-color: rgba(255, 255, 255=3D</span><br><sp=
an>, 0);"&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rg=
ba(0, 0, 0, 0.701961); -w=3D</span><br><span>ebkit-composition-fill-color: r=
gba(130, 98, 83, 0.0980392); text-decoration:=3D</span><br><span> -webkit-le=
tterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"v=3D=
</span><br><span>ertical-align: baseline; background-color: rgba(255, 255, 2=
55, 0);"&gt;Yesterda=3D</span><br><span>y, House Democratic leader Nancy sta=
rting doing precisely that, assessing th=3D</span><br><span>e centerpiece of=
Sanders' platform: &amp;nbsp;"He's talking about a single-payer=3D</span><b=
r><span>, and that's not going to happen. I mean, does anybody in this room t=
hink th=3D</span><br><span>at we're going to be discussing a single-payer? .=
.. We're not running on any=3D</span><br><span> platform of raising taxes."&=
amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: r=3D</=
span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.=3D</span><br><span>0980392); text-decoration: -webkit-letter=
press; margin-top: 0pt; margin-bott=3D</span><br><span>om: 0pt;"&gt;&lt;br&g=
t;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"text-decoration: -webkit-letterpr=
e=3D</span><br><span>ss; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span s=
tyle=3D3D"vertical-align: bas=3D</span><br><span>eline; background-color: rg=
ba(255, 255, 255, 0);"&gt;Far from the cauldron of C=3D</span><br><span>ongr=
ess and the icy campaign trail was an announcement by the Fed with impli=3D<=
/span><br><span>cations for the overall economy and for the election year ah=
ead.&amp;nbsp; More o=3D</span><br><span>n the Fed's statement and its impli=
cations below. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D=3D</span><br>=
<span>"ltr" style=3D3D"text-decoration: -webkit-letterpress; margin-top: 0pt=
; margin=3D</span><br><span>-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-a=
lign: baseline; background-color: rg=3D</span><br><span>ba(255, 255, 255, 0)=
;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"text-d=
ecoratio=3D</span><br><span>n: -webkit-letterpress; margin-top: 0pt; margin-=
bottom: 0pt;"&gt;&lt;span style=3D3D=3D</span><br><span>"background-color: r=
gba(255, 255, 255, 0);"&gt;Please let me know if you have a=3D</span><br><sp=
an>ny questions or issue coverage requests.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=
&lt;p dir=3D3D"ltr" styl=3D</span><br><span>e=3D3D"text-decoration: -webkit-=
letterpress; margin-top: 0pt; margin-bottom: 0=3D</span><br><span>pt;"&gt;&l=
t;span style=3D3D"vertical-align: baseline; background-color: rgba(255, 25=3D=
</span><br><span>5, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D=
3D"ltr" style=3D3D"text-decoration: -webkit=3D</span><br><span>-letterpress;=
margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"backgroun=3D</=
span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p=
&gt;&lt;p dir=3D3D"ltr" style=3D3D"te=3D</span><br><span>xt-decoration: -web=
kit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;s=3D</span><br=
> <span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&g=
t;&lt;/span&gt;&lt;/p&gt;&lt;p di=3D</span><br><span>r=3D3D"ltr" style=3D3D"=
text-decoration: -webkit-letterpress; margin-top: 0pt; ma=3D</span><br><span=
> rgin-bottom: 0pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"=3D</span><br><blockquote type=3D"cite"><span>Dana&lt;/span&gt;&lt;/=
p&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: r=
gba(0, 0, 0, 0=3D</span><br></blockquote><span>.701961); -webkit-composition=
-fill-color: rgba(130, 98, 83, 0.0980392); text=3D</span><br><span>-decorati=
on: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;----=3D</s=
pan><br><span>-------------&lt;/p&gt;&lt;span style=3D3D"color: rgba(0, 0, 0=
, 0.701961); -webkit-comp=3D</span><br><span>osition-fill-color: rgba(130, 9=
8, 83, 0.0980392); text-decoration: -webkit-l=3D</span><br><span>etterpress;=
background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p d=
ir=3D3D"=3D</span><br><span>ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color=3D</span><br><span>: rgba(130, 98, 83, 0.09803=
92); text-decoration: -webkit-letterpress; margin=3D</span><br><span>-top: 0=
pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"text-decoration: underline; v=
=3D</span><br><span>ertical-align: baseline; background-color: rgba(255, 255=
, 255, 0);"&gt;&lt;b&gt;The Fe=3D</span><br><span>d's Statement&lt;/b&gt;&lt=
;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -=3D=
</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=
; text-decoration=3D</span><br><span>: -webkit-letterpress; background-color=
: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span=3D</span><br><blockquote t=
ype=3D"cite"><span>&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701=
961); -webkit-composition=3D</span><br></blockquote><span>-fill-color: rgba(=
130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=3D</span><br><spa=
n>ess; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical=
-align: ba=3D</span><br><span>seline; background-color: rgba(255, 255, 255, 0=
);"&gt;The Federal Open Market C=3D</span><br><span>ommittee (FOMC) of the Fe=
deral Reserve decided yesterday not to raise rates i=3D</span><br><span>n Ja=
nuary.&amp;nbsp; Last month, the Fed voted to raise interest rates for the f=
=3D</span><br><span>irst time in nine years, setting its rate target between=
0.25 and 0.5 percen=3D</span><br><span>t.&amp;nbsp; Today's statement reaff=
irmed this decision, noting that recent mark=3D</span><br><span>et turbulenc=
e had not stayed the Fed from its plan to continue =3DE2=3D80=3D9Conly=3D</s=
pan><br><span> gradual increases in the federal funds rate.=3DE2=3D80=3D9D &=
amp;nbsp;Speculation and=3D</span><br><span> hope are rife that the FOMC wil=
l hold off raising rates in March and wait u=3D</span><br><span>ntil June. &=
amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0=
, 0, 0, 0.7=3D</span><br><span>01961); -webkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392); text-d=3D</span><br><span>ecoration: -webkit-letter=
press; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span s=3D</span><br><spa=
n>tyle=3D3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0=
);"=3D</span><br><blockquote type=3D"cite"><span>&lt;br&gt;&lt;/span&gt;&lt;=
/p&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -web=3D=
</span><br></blockquote><span>kit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392); text-decoration: -=3D</span><br><span>webkit-letterpress; margin-=
top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"ver=3D</span><br><span=
> tical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;But th=
e st=3D</span><br><span>atement today indicated no change in the Fed=3DE2=3D=
80=3D99s plan for previously o=3D</span><br><span>utlined &amp;nbsp;rate inc=
reases, four 0.25 percent increases this year, with to=3D</span><br><span>ta=
l increases of one percent this year and next.&amp;nbsp; However, the FOMC i=
s l=3D</span><br><span>argely comprised of dovish voters, who may change tac=
k if current market cor=3D</span><br><span>rections continue. &amp;nbsp;&amp=
;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0, 0, 0=3D</spa=
n><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392); t=3D</span><br><span>ext-decoration: -webkit-letterpress; backgro=
und-color: rgba(255, 255, 255, 0=3D</span><br><span>);"&gt;&lt;br&gt;&lt;/sp=
an&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=3D=
</span><br><span>it-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=
xt-decoration: -w=3D</span><br><span>ebkit-letterpress; margin-top: 0pt; mar=
gin-bottom: 0pt;"&gt;&lt;span style=3D3D"text=3D</span><br><span>-decoration=
: underline; vertical-align: baseline; background-color: rgba(255=3D</span><=
br><span>, 255, 255, 0);"&gt;&lt;b&gt;Market Reaction&lt;/b&gt;&lt;/span&gt;=
&lt;/p&gt;&lt;span style=3D3D"color: rgba=3D</span><br><span>(0, 0, 0, 0.701=
961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=3D</span><br><=
span>0392); text-decoration: -webkit-letterpress; background-color: rgba(255=
, 255=3D</span><br><span>, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3=
D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961=3D</span><br><span>); -webki=
t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=3D</span=
> <br><span>tion: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&=
gt;&lt;span style=3D</span><br><span>=3D3D"vertical-align: baseline; backgro=
und-color: rgba(255, 255, 255, 0);"&gt;The=3D</span><br><span> Dow Jones Ind=
ustrial average is down from 17.759 on December 16 to 15,951 t=3D</span><br>=
<span>oday; the S&amp;amp;P 500 has declined from 2,073 to 1,879 over the sa=
me period.=3D</span><br><span>&amp;nbsp; The&amp;nbsp;&lt;/span&gt;&lt;/p&gt=
;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.70=3D</span><br><span=
> 1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=
e=3D</span><br><span>coration: -webkit-letterpress; margin-top: 0pt; margin-=
bottom: 0pt;"&gt;&lt;span s=3D</span><br><span>tyle=3D3D"vertical-align: bas=
eline; background-color: rgba(255, 255, 255, 0);"=3D</span><br><blockquote t=
ype=3D"cite"><span>Fed however expressed confidence in continuing economic g=
rowth, calling low=3D</span><br></blockquote><span> inflation and the declin=
e in energy prices =3DE2=3D80=3D9Ctransitory=3DE2=3D80=3D9D and=3D</span><br=
> <span> predicting 2 percent inflation in the medium-term as energy prices r=
ise aga=3D</span><br><span>in. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span sty=
le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D</span><br><span>composit=
ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D</spa=
n><br><span>it-letterpress; background-color: rgba(255, 255, 255, 0);"&gt;&l=
t;br&gt;&lt;/span&gt;&lt;p dir=3D</span><br><span>=3D3D"ltr" style=3D3D"colo=
r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=3D</span><br><span>ol=
or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; ma=3D=
</span><br><span>rgin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"=
vertical-align: baseline;=3D</span><br><span> background-color: rgba(255, 25=
5, 255, 0);"&gt;In a nod to beleaguered investor=3D</span><br><span>s, the C=
ommittee wrote that it =3DE2=3D80=3D9C... is closely monitoring global eco=3D=
</span><br><span>nomic and financial developments and is assessing their imp=
lications for the=3D</span><br><span> labor market and inflation, and for th=
e balance of risks to the outlook.=3DE2=3D</span><br><span>=3D80=3D9D &amp;n=
bsp;So the Fed has, unusually, acknowledged the global scope of its=3D</span=
> <br><span> deliberations.&amp;nbsp; FOMC also indicated a focus on =3DE2=3D=
80=3D9Clabor market i=3D</span><br><span>ndicators [which] will continue to s=
trengthen."&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"col=3D</span><br><span=
> or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
=3D</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress; bac=
kground-color: rgba(=3D</span><br><span>255, 255, 255, 0);"&gt;&lt;br&gt;&lt=
;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0=3D</span><br=
> <span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392=
); text=3D</span><br><span>-decoration: -webkit-letterpress; margin-top: 0pt=
; margin-bottom: 0pt;"&gt;&lt;spa=3D</span><br><span>n style=3D3D"vertical-a=
lign: baseline; background-color: rgba(255, 255, 255, 0=3D</span><br><span>)=
;"&gt;For now, though inflation is running just 0.4 percent, well below its t=
w=3D</span><br><span>o percent target, the Fed has not disavowed its plan to=
raise rates four tim=3D</span><br><span>es this year. &amp;nbsp;&amp;nbsp;T=
his cannot be welcome to global equine markets. &amp;=3D</span><br><span>nbs=
p;&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=
"&gt;Domest=3D</span><br><span>ic and global capital markets have already lo=
st roughly ten percent since th=3D</span><br><span>e December rate hike. &am=
p;nbsp;Fed policy&amp;nbsp;may be having a decelerating eff=3D</span><br><sp=
an>ect on growth and so could be a marginal drag on Democratic prospects. &a=
mp;nbsp=3D</span><br><span>;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color=
: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D</span><br><span>on-fill-colo=
r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=3D</span><b=
r><span>press; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/=
span&gt;&lt;p dir=3D3D"ltr" s=3D</span><br><span>tyle=3D3D"color: rgba(0, 0,=
0, 0.701961); -webkit-composition-fill-color: rgba=3D</span><br><span>(130,=
98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0=3D<=
/span><br><span>pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"text-decorat=
ion: underline; vertical=3D</span><br><span>-align: baseline; background-col=
or: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;New FOMC Mem=3D</span><br><span>ber=
s&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0, 0, 0, 0=
.701961); -webkit-co=3D</span><br><span>mposition-fill-color: rgba(130, 98, 8=
3, 0.0980392); text-decoration: -webkit=3D</span><br><span>-letterpress; bac=
kground-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D=
3D=3D</span><br><span>"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=
it-composition-fill-colo=3D</span><br><span>r: rgba(130, 98, 83, 0.0980392);=
text-decoration: -webkit-letterpress; margi=3D</span><br><span>n-top: 0pt; m=
argin-bottom: 0pt;"&gt;&lt;span style=3D3D"vertical-align: baseline; ba=3D</=
span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;The FOMC is made u=
p of rotating boa=3D</span><br><span>rd of seven voting members taken from B=
oard of Governors members as well as r=3D</span><br><span>egional bank offic=
ials; these members rotate on an annual basis at the first=3D</span><br><spa=
n> meeting of each year.&amp;nbsp; The 2016 committee members are listed bel=
ow (id=3D</span><br><span>entified as"hawks," those favoring tight monetary p=
olicy or "doves," support=3D</span><br><span>ing more accommodative policy).=
&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0=3D</span>=
<br><span>, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=
3, 0.09803=3D</span><br><span>92); text-decoration: -webkit-letterpress; bac=
kground-color: rgba(255, 255, 2=3D</span><br><span>55, 0);"&gt;&lt;br&gt;&lt=
;/span&gt;&lt;ul style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D</=
span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decor=
ation: -webkit-=3D</span><br><span>letterpress; margin-top: 0pt; margin-bott=
om: 0pt;"&gt;&lt;li dir=3D3D"ltr" style=3D3D"=3D</span><br><span>list-style-=
type: disc; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D3D=3D=
</span><br><span>"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&=
lt;font color=3D3D"rgba(0, 0=3D</span><br><span>, 0, 0.7019607843137254)"&gt=
;&lt;span style=3D3D"background-color: rgba(255, 255, 25=3D</span><br><span>=
5, 0);"&gt;&lt;a href=3D3D"<a href=3D"http://www.federalreserve.gov/aboutthe=
fed/bios/board/yell=3D">http://www.federalreserve.gov/aboutthefed/bios/board=
/yell=3D</a></span><br><span>en.htm" style=3D3D"text-decoration: none;"&gt;&=
lt;span style=3D3D"text-decoration: und=3D</span><br><span>erline; vertical-=
align: baseline;"&gt;Janet L. Yellen&lt;/span&gt;&lt;/a&gt;&lt;span style=3D=
3D"=3D</span><br><span>vertical-align: baseline;"&gt;, Board of Governors, C=
hair (dove)&lt;/span&gt;&lt;/span&gt;&lt;=3D</span><br><span>/font&gt;&lt;/p=
&gt;&lt;/li&gt;&lt;li dir=3D3D"ltr" style=3D3D"list-style-type: disc; vertic=
al-alig=3D</span><br><span>n: baseline; margin-left: 15px;"&gt;&lt;p dir=3D3=
D"ltr" style=3D3D"margin-top: 0pt; ma=3D</span><br><span>rgin-bottom: 0pt;"&=
gt;&lt;font color=3D3D"rgba(0, 0, 0, 0.7019607843137254)"&gt;&lt;span s=3D</=
span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a=
href=3D3D"<a href=3D"http://www.fed=3D">http://www.fed=3D</a></span><br><sp=
an><a href=3D"http://eralreserve.gov/aboutthefed/bios/banks/pres02.htm">eral=
reserve.gov/aboutthefed/bios/banks/pres02.htm</a>" style=3D3D"text-decoratio=
n:=3D</span><br><span> none;"&gt;&lt;span style=3D3D"text-decoration: underl=
ine; vertical-align: baseline;=3D</span><br><span>"&gt;William C. Dudley&lt;=
/span&gt;&lt;/a&gt;&lt;span style=3D3D"vertical-align: baseline;"&gt;, Ne=3D=
</span><br><span>w York, Vice Chair (dove)&lt;/span&gt;&lt;/span&gt;&lt;/fon=
t&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D3D"ltr" style=3D</span><br><span>=3D3=
D"list-style-type: disc; vertical-align: baseline; margin-left: 15px;"&gt;&l=
t;p d=3D</span><br><span>ir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bot=
tom: 0pt;"&gt;&lt;font color=3D3D"rgb=3D</span><br><span>a(0, 0, 0, 0.701960=
7843137254)"&gt;&lt;span style=3D3D"background-color: rgba(255, 2=3D</span><=
br><span>55, 255, 0);"&gt;&lt;a href=3D3D"<a href=3D"http://www.federalreser=
ve.gov/aboutthefed/bios/boar=3D">http://www.federalreserve.gov/aboutthefed/b=
ios/boar=3D</a></span><br><span>d/brainard.htm" style=3D3D"text-decoration: n=
one;"&gt;&lt;span style=3D3D"text-decorat=3D</span><br><span>ion: underline;=
vertical-align: baseline;"&gt;Lael Brainard&lt;/span&gt;&lt;/a&gt;&lt;span s=
ty=3D</span><br><span>le=3D3D"vertical-align: baseline;"&gt;, Board of Gover=
nors (dove)&lt;/span&gt;&lt;/span&gt;&lt;/=3D</span><br><span>font&gt;&lt;/p=
&gt;&lt;/li&gt;&lt;li dir=3D3D"ltr" style=3D3D"list-style-type: disc; font-w=
eight: 7=3D</span><br><span>00; vertical-align: baseline; margin-left: 15px;=
"&gt;&lt;p dir=3D3D"ltr" style=3D3D"ma=3D</span><br><span>rgin-top: 0pt; mar=
gin-bottom: 0pt;"&gt;&lt;font color=3D3D"rgba(0, 0, 0, 0.701960784=3D</span>=
<br><span>3137254)"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=
55, 0);"&gt;&lt;a href=3D3D=3D</span><br><span>"<a href=3D"http://www.federa=
lreserve.gov/aboutthefed/bios/banks/pres08.htm">http://www.federalreserve.go=
v/aboutthefed/bios/banks/pres08.htm</a>" style=3D3D"t=3D</span><br><span>ext=
-decoration: none;"&gt;&lt;span style=3D3D"text-decoration: underline; verti=
cal-a=3D</span><br><span>lign: baseline;"&gt;James Bullard&lt;/span&gt;&lt;/=
a&gt;&lt;span style=3D3D"vertical-align: base=3D</span><br><span>line;"&gt;,=
St. Louis (hawk)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt=
;&lt;li dir=3D3D"ltr" style=3D</span><br><span>=3D3D"list-style-type: disc; v=
ertical-align: baseline; margin-left: 15px;"&gt;&lt;p d=3D</span><br><span>i=
r=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font col=
or=3D3D"rgb=3D</span><br><span>a(0, 0, 0, 0.7019607843137254)"&gt;&lt;span s=
tyle=3D3D"background-color: rgba(255, 2=3D</span><br><span>55, 255, 0);"&gt;=
&lt;a href=3D3D"<a href=3D"http://www.federalreserve.gov/aboutthefed/bios/bo=
ar=3D">http://www.federalreserve.gov/aboutthefed/bios/boar=3D</a></span><br>=
<span>d/fischer.htm" style=3D3D"text-decoration: none;"&gt;&lt;span style=3D=
3D"text-decorati=3D</span><br><span>on: underline; vertical-align: baseline;=
"&gt;Stanley Fischer&lt;/span&gt;&lt;/a&gt;&lt;span st=3D</span><br><span>yl=
e=3D3D"vertical-align: baseline;"&gt;, Board of Governors (hawk)&lt;/span&gt=
;&lt;/span&gt;&lt;=3D</span><br><span>/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li d=
ir=3D3D"ltr" style=3D3D"list-style-type: disc; font-weight: 7=3D</span><br><=
span>00; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D3D"ltr=
" style=3D3D"ma=3D</span><br><span>rgin-top: 0pt; margin-bottom: 0pt;"&gt;&l=
t;font color=3D3D"rgba(0, 0, 0, 0.701960784=3D</span><br><span>3137254)"&gt;=
&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=
=3D3D=3D</span><br><span>"<a href=3D"http://www.federalreserve.gov/aboutthef=
ed/bios/banks/pres10.htm">http://www.federalreserve.gov/aboutthefed/bios/ban=
ks/pres10.htm</a>" style=3D3D"t=3D</span><br><span>ext-decoration: none;"&gt=
;&lt;span style=3D3D"text-decoration: underline; vertical-a=3D</span><br><sp=
an>lign: baseline;"&gt;Esther L. George&lt;/span&gt;&lt;/a&gt;&lt;span style=
=3D3D"vertical-align: b=3D</span><br><span>aseline;"&gt;, Kansas City (hawk)=
&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D3D"=
ltr" s=3D</span><br><span>tyle=3D3D"list-style-type: disc; font-weight: 700;=
vertical-align: baseline; m=3D</span><br><span>argin-left: 15px;"&gt;&lt;p d=
ir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0=3D</span><br><span=
> pt;"&gt;&lt;font color=3D3D"rgba(0, 0, 0, 0.7019607843137254)"&gt;&lt;span s=
tyle=3D3D"backgr=3D</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;=
&lt;a href=3D3D"<a href=3D"http://www.federalreserve.go=3D">http://www.feder=
alreserve.go=3D</a></span><br><span>v/aboutthefed/bios/banks/pres04.htm" sty=
le=3D3D"text-decoration: none;"&gt;&lt;span s=3D</span><br><span>tyle=3D3D"t=
ext-decoration: underline; vertical-align: baseline;"&gt;Loretta J. Me=3D</s=
pan><br><span>ster&lt;/span&gt;&lt;/a&gt;&lt;span style=3D3D"vertical-align:=
baseline;"&gt;, Cleveland (hawk)&lt;=3D</span><br><span>/span&gt;&lt;/span&=
gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D3D"ltr" style=3D3D"list-st=
yle-type: disc;=3D</span><br><span> vertical-align: baseline; margin-left: 1=
5px;"&gt;&lt;p dir=3D3D"ltr" style=3D3D"margi=3D</span><br><span>n-top: 0pt;=
margin-bottom: 0pt;"&gt;&lt;font color=3D3D"rgba(0, 0, 0, 0.701960784313=3D=
</span><br><span>7254)"&gt;&lt;span style=3D3D"background-color: rgba(255, 2=
55, 255, 0);"&gt;&lt;a href=3D3D"=3D</span><br><span><a href=3D"http://www.f=
ederalreserve.gov/aboutthefed/bios/board/powell.htm">http://www.federalreser=
ve.gov/aboutthefed/bios/board/powell.htm</a>" style=3D3D"te=3D</span><br><sp=
an>xt-decoration: none;"&gt;&lt;span style=3D3D"text-decoration: underline; v=
ertical-al=3D</span><br><span>ign: baseline;"&gt;Jerome H. Powell&lt;/span&g=
t;&lt;/a&gt;&lt;span style=3D3D"vertical-align: ba=3D</span><br><span>seline=
;"&gt;, Board of Governors (swing)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt=
;/p&gt;&lt;/li&gt;&lt;li dir=3D3D=3D</span><br><span>"ltr" style=3D3D"list-s=
tyle-type: disc; font-weight: 700; vertical-align: base=3D</span><br><span>l=
ine; margin-left: 15px;"&gt;&lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; m=
argin-bo=3D</span><br><span>ttom: 0pt;"&gt;&lt;font color=3D3D"rgba(0, 0, 0,=
0.7019607843137254)"&gt;&lt;span style=3D3D=3D</span><br><span>"background-=
color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D3D"<a href=3D"http://www.fed=
eralres=3D">http://www.federalres=3D</a></span><br><span><a href=3D"http://e=
rve.gov/aboutthefed/bios/banks/pres01.htm">erve.gov/aboutthefed/bios/banks/p=
res01.htm</a>" style=3D3D"text-decoration: none;"=3D</span><br><blockquote t=
ype=3D"cite"><span>&lt;span style=3D3D"text-decoration: underline; vertical-=
align: baseline;"&gt;Eric R=3D</span><br></blockquote><span>osengren&lt;/spa=
n&gt;&lt;/a&gt;&lt;span style=3D3D"vertical-align: baseline;"&gt;, Boston (d=
ove)=3D</span><br><span>&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt=
;/li&gt;&lt;li dir=3D3D"ltr" style=3D3D"list-style-type: disc=3D</span><br><=
span>; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D3D"ltr" s=
tyle=3D3D"marg=3D</span><br><span>in-top: 0pt; margin-bottom: 0pt;"&gt;&lt;f=
ont color=3D3D"rgba(0, 0, 0, 0.70196078431=3D</span><br><span>37254)"&gt;&lt=
;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D=
3D=3D</span><br><span>"<a href=3D"http://www.federalreserve.gov/aboutthefed/=
bios/board/tarullo.htm">http://www.federalreserve.gov/aboutthefed/bios/board=
/tarullo.htm</a>" style=3D3D"=3D</span><br><span>text-decoration: none;"&gt;=
&lt;span style=3D3D"text-decoration: underline; vertical-=3D</span><br><span=
> align: baseline;"&gt;Daniel K. Tarullo&lt;/span&gt;&lt;/a&gt;&lt;span style=
=3D3D"vertical-align:=3D</span><br><span> baseline;"&gt;, Board of Governors=
(dove)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;/ul&g=
t;&lt;s=3D</span><br><span>pan style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=
ebkit-composition-fill-color:=3D</span><br><span> rgba(130, 98, 83, 0.098039=
2); text-decoration: -webkit-letterpress; backgro=3D</span><br><span>und-col=
or: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" s=
tyle=3D3D"color=3D</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 83,=3D</span><br><span> 0.0980392); text-dec=
oration: -webkit-letterpress; margin-top: 0pt; margin-b=3D</span><br><span>o=
ttom: 0pt;"&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=
"&gt;&lt;span=3D</span><br><span> style=3D3D"vertical-align: baseline;"&gt;N=
ew members this year are&amp;nbsp;&lt;/span&gt;&lt;=3D</span><br><span>span s=
tyle=3D3D"font-weight: 700; vertical-align: baseline;"&gt;James Bullard, Es=3D=
</span><br><span>ther George, Loretta Mester,&lt;/span&gt;&lt;span style=3D3=
D"vertical-align: baseline;"=3D</span><br><blockquote type=3D"cite"><span>&a=
mp;nbsp;and&amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"font-weight: 700; vert=
ical-align: base=3D</span><br></blockquote><span>line;"&gt;Eric Rosengren.&l=
t;/span&gt;&lt;span style=3D3D"vertical-align: baseline;"&gt;&amp;nbsp=3D</s=
pan><br><span>;&amp;nbsp;The FOMC consists of 12 voting members, with two no=
minees awaiting Se=3D</span><br><span>nate confirmation.&amp;nbsp; A shift i=
n the balance of power between hawks and d=3D</span><br><span>oves may occur=
but the doves hold a slim majority for now.&lt;/span&gt;&lt;/span&gt;&lt;/p=
&gt;=3D</span><br><span>&lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-colo=3D</span><br><span>r: rgba(130, 98, 83, 0.09803=
92); text-decoration: -webkit-letterpress; backg=3D</span><br><span>round-co=
lor: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" s=
tyle=3D3D"col=3D</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-compos=
ition-fill-color: rgba(130, 98, 8=3D</span><br><span>3, 0.0980392); text-dec=
oration: -webkit-letterpress; margin-top: 0pt; margin=3D</span><br><span>-bo=
ttom: 0pt;"&gt;&lt;span style=3D3D"text-decoration: underline; vertical-alig=
n: ba=3D</span><br><span>seline; background-color: rgba(255, 255, 255, 0);"&=
gt;&lt;b&gt;Code Breaking&lt;/b&gt;&lt;/spa=3D</span><br><span>n&gt;&lt;/p&g=
t;&lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=
l=3D</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration:=
-webkit-letterpress;=3D</span><br><span> background-color: rgba(255, 255, 2=
55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D=3D</span><=
br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=
ba(130, 9=3D</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-let=
terpress; margin-top: 0pt; ma=3D</span><br><span>rgin-bottom: 0pt;"&gt;&lt;s=
pan style=3D3D"vertical-align: baseline; background-color=3D</span><br><span=
> : rgba(255, 255, 255, 0);"&gt;Fed watchers have made an art form out of rea=
ding=3D</span><br><span> between the lines of these policy releases, even th=
e most benign of which c=3D</span><br><span>an cause huge swings in markets (=
the Dow dropped over 200 points in the wake=3D</span><br><span> of today=3DE=
2=3D80=3D99s release).&amp;nbsp; Fed statements are famously difficult to=3D=
</span><br><span> parse but one point was unmistakable: the Fed is keeping a=
close eye on the=3D</span><br><span> labor market -- employment and partici=
pation rates, wages, etc. -- as a lea=3D</span><br><span>ding indicator for i=
nflation and overall growth perhaps more than any other v=3D</span><br><span=
> ariable. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0=
, 0, 0, 0.701961); -we=3D</span><br><span>bkit-composition-fill-color: rgba(=
130, 98, 83, 0.0980392); text-decoration: -=3D</span><br><span>webkit-letter=
press; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;=
&lt;p=3D</span><br><span> dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.70=
1961); -webkit-composition-fi=3D</span><br><span>ll-color: rgba(130, 98, 83,=
0.0980392); text-decoration: -webkit-letterpress=3D</span><br><span>; margi=
n-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"text-decoration: und=
e=3D</span><br><span>rline; vertical-align: baseline; background-color: rgba=
(255, 255, 255, 0);"&gt;=3D</span><br><span>&lt;b&gt;Campaign Consequences&l=
t;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0, 0, 0, 0=3D=
</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=
0.0980392); text=3D</span><br><span>-decoration: -webkit-letterpress; backg=
round-color: rgba(255, 255, 255, 0);"=3D</span><br><blockquote type=3D"cite"=
> <span>&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0=
, 0, 0.701961); -webkit-=3D</span><br></blockquote><span>composition-fill-co=
lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D</span><br><span=
> it-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D3=
D"vertica=3D</span><br><span>l-align: baseline; background-color: rgba(255, 2=
55, 255, 0);"&gt;None of the ca=3D</span><br><span>ndidates has commented on=
today=3DE2=3D80=3D99s release, not surprisingly, but the=3D</span><br><span=
> policy may draw ire from some on the right, who oppose fiat rate-targeting=
(=3D</span><br><span>though it took no action today) and the left, where lo=
wering rather than rai=3D</span><br><span>sing rate is preferred (except for=
holders of fixed income securities). &amp;nbs=3D</span><br><span>p;&lt;/spa=
n&gt;&lt;/p&gt;&lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposit=3D</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392); tex=
t-decoration: -webkit-lette=3D</span><br><span>rpress; background-color: rgb=
a(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D3D"ltr"=3D</span=
> <br><span> style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=
ill-color: rg=3D</span><br><span>ba(130, 98, 83, 0.0980392); text-decoration=
: -webkit-letterpress; margin-top=3D</span><br><span>: 0pt; margin-bottom: 0=
pt;"&gt;&lt;span style=3D3D"vertical-align: baseline; backgro=3D</span><br><=
span>und-color: rgba(255, 255, 255, 0);"&gt;Sen.&amp;nbsp; Sanders, true to h=
is reputati=3D</span><br><span>on of standing far outside the Democratic fol=
d, has long opposed the Fed for=3D</span><br><span> being too involved with t=
he bankers they are meant to be regulating.&amp;nbsp; S=3D</span><br><span>a=
nders has called for reform measures at the Fed, including prohibiting peop=3D=
</span><br><span>le serving on bank boards from serving on the Fed at the sa=
me time.&amp;nbsp;&lt;/s=3D</span><br><span>pan&gt;&lt;/p&gt;&lt;span style=3D=
3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=3D</span><br><span>=
ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=
=3D</span><br><span>s; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&=
gt;&lt;/span&gt;&lt;p dir=3D3D"ltr" styl=3D</span><br><span>e=3D3D"color: rg=
ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=3D</span><br>=
<span>0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-to=
p: 0pt=3D</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D3D"vert=
ical-align: baseline; background-c=3D</span><br><span>olor: rgba(255, 255, 2=
55, 0);"&gt;The Fed was confident that economic growth wo=3D</span><br><span=
> uld continue on its steady pace, indicating strength in labor markets and d=
o=3D</span><br><span>wnplaying both financial market reactions and diving co=
mmodities prices.&amp;nbs=3D</span><br><span>p; The FOMC sets monetary polic=
y on a long-term basis; the full ramification=3D</span><br><span>s of their d=
ecisions aren=3DE2=3D80=3D99t felt until months or years out, so any c=3D</s=
pan><br><span>ontention that the economy is strong enough to handle higher i=
nterest rates i=3D</span><br><span>s essentially an endorsement of macroecon=
omic policy in the last few years. D=3D</span><br><span>emocratic candidates=
will need to hammer this point home - but it is yet to b=3D</span><br><span=
> e seen if voters will understand the message that Democratic policies are r=
e=3D</span><br><span>sponsible for the sunny outlook for the American econom=
y, especially compare=3D</span><br><span>d to Western Europe, Latin America,=
and Asia.&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D3D"ltr" style=3D</span><br><spa=
n>=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=
(130=3D</span><br><span>, 98, 83, 0.0980392); text-decoration: -webkit-lette=
rpress; margin-top: 11pt=3D</span><br><span>; margin-bottom: 0pt;"&gt;&lt;sp=
an style=3D3D"vertical-align: baseline; background-c=3D</span><br><span>olor=
: rgba(255, 255, 255, 0);"&gt;Below is the first sentence of the FOMC state=3D=
</span><br><span>ment from yesterday, edited to reflect changes from last mo=
nth's statement:&lt;=3D</span><br><span>/span&gt;&lt;/p&gt;&lt;div&gt;&lt;di=
v&gt;&lt;div dir=3D3D"ltr"&gt;&lt;span id=3D3D"docs-internal-guid-d5a88007=3D=
</span><br><span>-7fec-b922-12e4-5ebf8ff54494"&gt;&lt;span style=3D3D"vertic=
al-align: baseline; backg=3D</span><br><span>round-color: rgba(255, 255, 255=
, 0);"&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;/span&gt;&lt;/span&gt;&lt;/di=
v&gt;&lt;/d=3D</span><br><span>iv&gt;&lt;div&gt;&lt;div class=3D3D"statement=
s" style=3D3D"margin: 0px; padding: 0px 0.5em; b=3D</span><br><span>order: 0=
px; vertical-align: baseline;"&gt;&lt;div class=3D3D"diff_statement_holder" s=
=3D</span><br><span>tyle=3D3D"margin: 0px; padding: 0px; border: 0px; font-s=
tyle: inherit; font-va=3D</span><br><span>riant: inherit; vertical-align: ba=
seline;"&gt;&lt;div class=3D3D"statement_sheet wid=3D</span><br><span>get bo=
rdered" style=3D3D"margin: 5px 0px; padding: 5px; border: 1px solid rgb(=3D<=
/span><br><span>221, 221, 221); font-style: inherit; font-variant: inherit; v=
ertical-align: b=3D</span><br><span>aseline; overflow: auto; word-break: bre=
ak-word; -webkit-hyphens: auto; bord=3D</span><br><span>er-top-left-radius: 2=
px; border-top-right-radius: 2px; border-bottom-right-r=3D</span><br><span>a=
dius: 2px; border-bottom-left-radius: 2px; -webkit-box-shadow: rgb(221, 221=3D=
</span><br><span>, 221) 1px 1px 1px; box-shadow: rgb(221, 221, 221) 1px 1px 1=
px;"&gt;&lt;div class=3D3D=3D</span><br><span>"statement_text" style=3D3D"ma=
rgin: 0px; padding: 0px; border: 0px; font-style=3D</span><br><span>: inheri=
t; font-variant: inherit; vertical-align: baseline; overflow-x: hidd=3D</spa=
n><br><span>en;"&gt;&lt;p style=3D3D"margin: 0.5em; padding: 0px; border: 0p=
x; font-style: inher=3D</span><br><span>it; font-variant: inherit; vertical-=
align: baseline;"&gt;&lt;span style=3D3D"backgro=3D</span><br><span>und-colo=
r: rgba(255, 255, 255, 0);"&gt;&lt;span style=3D3D"margin: 0px; padding: 0px=
=3D</span><br><span>; border: 0px; font-style: inherit; font-variant: inheri=
t; vertical-align: b=3D</span><br><span>aseline;"&gt;For&amp;nbsp;&lt;/span&=
gt;&lt;del style=3D3D"margin: 0px; padding: 0px; border: 0=3D</span><br><spa=
n>px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"=
&gt;i=3D</span><br><span>mmediate release&lt;/del&gt;&lt;ins style=3D3D"marg=
in: 0px; padding: 0px; border: 0px; f=3D</span><br><span>ont-style: inherit;=
font-variant: inherit; vertical-align: baseline; text-de=3D</span><br><span=
> coration: none;"&gt;release&amp;nbsp;&lt;a href=3D3D"x-apple-data-detectors=
://14" x-appl=3D</span><br><span>e-data-detectors=3D3D"true" x-apple-data-de=
tectors-type=3D3D"calendar-event" x-a=3D</span><br><span>pple-data-detectors=
-result=3D3D"14"&gt;at 2:00 p.m. EST&lt;/a&gt;&lt;/ins&gt;&lt;/span&gt;&lt;/=
p&gt;&lt;p st=3D</span><br><span>yle=3D3D"margin: 0.5em; padding: 0px; borde=
r: 0px; font-style: inherit; font-v=3D</span><br><span>ariant: inherit; vert=
ical-align: baseline;"&gt;&lt;span style=3D3D"background-color:=3D</span><br=
> <span> rgba(255, 255, 255, 0);"&gt;&lt;span style=3D3D"margin: 0px; padding=
: 0px; border: 0=3D</span><br><span>px; font-style: inherit; font-variant: i=
nherit; vertical-align: baseline;"&gt;I=3D</span><br><span>nformation receiv=
ed since the Federal Open Market Committee met in&amp;nbsp;&lt;/sp=3D</span>=
<br><span>an&gt;&lt;del style=3D3D"margin: 0px; padding: 0px; border: 0px; f=
ont-style: inherit=3D</span><br><span>; font-variant: inherit; vertical-alig=
n: baseline;"&gt;Octo&lt;/del&gt;&lt;ins style=3D3D"=3D</span><br><span>marg=
in: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: i=3D<=
/span><br><span>nherit; vertical-align: baseline; text-decoration: none;"&gt=
;Decem&lt;/ins&gt;&lt;span s=3D</span><br><span>tyle=3D3D"margin: 0px; paddi=
ng: 0px; border: 0px; font-style: inherit; font-va=3D</span><br><span>riant:=
inherit; vertical-align: baseline;"&gt;ber suggests that&amp;nbsp;&lt;/span=
&gt;&lt;de=3D</span><br><span>l style=3D3D"margin: 0px; padding: 0px; border=
: 0px; font-style: inherit; font=3D</span><br><span>-variant: inherit; verti=
cal-align: baseline;"&gt;economic activity has been exp=3D</span><br><span>a=
nding at a moderate pace&lt;/del&gt;&lt;ins style=3D3D"margin: 0px; padding:=
0px; bord=3D</span><br><span>er: 0px; font-style: inherit; font-variant: in=
herit; vertical-align: baselin=3D</span><br><span>e; text-decoration: none;"=
&gt;labor market conditions improved further even as e=3D</span><br><span>co=
nomic growth slowed late last year&lt;/ins&gt;&lt;span style=3D3D"margin: 0p=
x; paddin=3D</span><br><span>g: 0px; border: 0px; font-style: inherit; font-=
variant: inherit; vertical-al=3D</span><br><span>ign: baseline;"&gt;. Househ=
old spending and business fixed investment have been=3D</span><br><span> inc=
reasing at&amp;nbsp;&lt;/span&gt;&lt;del style=3D3D"margin: 0px; padding: 0p=
x; border: 0=3D</span><br><span>px; font-style: inherit; font-variant: inher=
it; vertical-align: baseline;"&gt;s=3D</span><br><span>olid&lt;/del&gt;&lt;i=
ns style=3D3D"margin: 0px; padding: 0px; border: 0px; font-style: i=3D</span=
> <br><span>nherit; font-variant: inherit; vertical-align: baseline; text-dec=
oration: no=3D</span><br><span>ne;"&gt;moderate&lt;/ins&gt;&lt;span style=3D=
3D"margin: 0px; padding: 0px; border: 0px; fo=3D</span><br><span>nt-style: i=
nherit; font-variant: inherit; vertical-align: baseline;"&gt;&amp;nbsp;r=3D<=
/span><br><span>ates in recent months, and the housing sector has improved f=
urther; however,=3D</span><br><span> net exports have been soft&lt;/span&gt;=
&lt;ins style=3D3D"margin: 0px; padding: 0px; b=3D</span><br><span>order: 0p=
x; font-style: inherit; font-variant: inherit; vertical-align: base=3D</span=
> <br><span>line; text-decoration: none;"&gt;&amp;nbsp;and inventory investme=
nt slowed&lt;/ins&gt;&lt;sp=3D</span><br><span>an style=3D3D"margin: 0px; pa=
dding: 0px; border: 0px; font-style: inherit; fon=3D</span><br><span>t-varia=
nt: inherit; vertical-align: baseline;"&gt;. A range of recent labor mar=3D<=
/span><br><span>ket indicators, including&amp;nbsp;&lt;/span&gt;&lt;del styl=
e=3D3D"margin: 0px; padding: 0p=3D</span><br><span>x; border: 0px; font-styl=
e: inherit; font-variant: inherit; vertical-align: b=3D</span><br><span>asel=
ine;"&gt;ongoi&lt;/del&gt;&lt;ins style=3D3D"margin: 0px; padding: 0px; bord=
er: 0px; f=3D</span><br><span>ont-style: inherit; font-variant: inherit; ver=
tical-align: baseline; text-de=3D</span><br><span>coration: none;"&gt;stro&l=
t;/ins&gt;&lt;span style=3D3D"margin: 0px; padding: 0px; border:=3D</span><b=
r><span> 0px; font-style: inherit; font-variant: inherit; vertical-align: ba=
seline;"=3D</span><br><blockquote type=3D"cite"><span>ng job gains&lt;/span&=
gt;&lt;del style=3D3D"margin: 0px; padding: 0px; border: 0px; fo=3D</span><b=
r></blockquote><span>nt-style: inherit; font-variant: inherit; vertical-alig=
n: baseline;"&gt;&amp;nbsp;a=3D</span><br><span>nd declining unemployment, s=
hows further improvement and confirms that under=3D</span><br><span>utilizat=
ion of labor resources has diminished appreciably since early this y=3D</spa=
n><br><span>ear&lt;/del&gt;&lt;ins style=3D3D"margin: 0px; padding: 0px; bor=
der: 0px; font-style: i=3D</span><br><span>nherit; font-variant: inherit; ve=
rtical-align: baseline; text-decoration: no=3D</span><br><span>ne;"&gt;, poi=
nts to some additional decline in underutilization of labor resour=3D</span>=
<br><span>ces&lt;/ins&gt;&lt;span style=3D3D"margin: 0px; padding: 0px; bord=
er: 0px; font-style: i=3D</span><br><span>nherit; font-variant: inherit; ver=
tical-align: baseline;"&gt;. Inflation has co=3D</span><br><span>ntinued to r=
un below the Committee's 2 percent longer-run objective, partly r=3D</span><=
br><span>eflecting declines in energy prices and in prices of non-energy imp=
orts. Mar=3D</span><br><span>ket-based measures of inflation compensation&am=
p;nbsp;&lt;/span&gt;&lt;del style=3D3D"margi=3D</span><br><span>n: 0px; padd=
ing: 0px; border: 0px; font-style: inherit; font-variant: inheri=3D</span><b=
r><span>t; vertical-align: baseline;"&gt;remain low; some&lt;/del&gt;&lt;ins=
style=3D3D"margin: 0p=3D</span><br><span>x; padding: 0px; border: 0px; font=
-style: inherit; font-variant: inherit; ve=3D</span><br><span>rtical-align: b=
aseline; text-decoration: none;"&gt;declined further;&lt;/ins&gt;&lt;span=3D=
</span><br><span> style=3D3D"margin: 0px; padding: 0px; border: 0px; font-st=
yle: inherit; font-=3D</span><br><span>variant: inherit; vertical-align: bas=
eline;"&gt;&amp;nbsp;survey-based measures of l=3D</span><br><span>onger-ter=
m inflation expectations&amp;nbsp;&lt;/span&gt;&lt;del style=3D3D"margin: 0p=
x; pad=3D</span><br><span>ding: 0px; border: 0px; font-style: inherit; font-=
variant: inherit; vertical=3D</span><br><span>-align: baseline;"&gt;have edg=
ed down&lt;/del&gt;&lt;ins style=3D3D"margin: 0px; padding: 0=3D</span><br><=
span>px; border: 0px; font-style: inherit; font-variant: inherit; vertical-a=
lign:=3D</span><br><span> baseline; text-decoration: none;"&gt;are little ch=
anged, on balance, in recent=3D</span><br><span> months&lt;/ins&gt;&lt;span s=
tyle=3D3D"margin: 0px; padding: 0px; border: 0px; font-sty=3D</span><br><spa=
n>le: inherit; font-variant: inherit; vertical-align: baseline;"&gt;.&lt;/sp=
an&gt;&lt;/spa=3D</span><br><span>n&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt=
;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;p dir=3D3D"ltr" style=3D3D"=
text-decor=3D</span><br><span>ation: -webkit-letterpress; margin-top: 11pt; m=
argin-bottom: 0pt;"&gt;&lt;span sty=3D</span><br><span>le=3D3D"vertical-alig=
n: baseline; background-color: rgba(255, 255, 255, 0);"&gt;&lt;=3D</span><br=
> <span>/span&gt;&lt;/p&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D3D"backgrou=
nd-color: rgba(255, 255, 255, 0);=3D</span><br><span>"&gt;&lt;br&gt;&lt;/spa=
n&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"text-decoration: -webkit-let=
terpress;=3D</span><br><span> background-color: rgba(255, 255, 255, 0);"&gt;=
--------------------&lt;/span&gt;&lt;/div=3D</span><br><blockquote type=3D"c=
ite"><span>&lt;/div&gt;&lt;br&gt;&lt;span style=3D3D"color: rgba(0, 0, 0, 0.=
701961); -webkit-compositio=3D</span><br></blockquote><span>n-fill-color: rg=
ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=3D</span><br><s=
pan>ress;"&gt;Recent Updates&lt;/span&gt;&lt;div style=3D3D"color: rgba(0, 0=
, 0, 0.701961); -w=3D</span><br><span>ebkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); text-decoration:=3D</span><br><span> -webkit-letterpre=
ss;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=
61=3D</span><br><span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0=
.0980392); text-decora=3D</span><br><span>tion: -webkit-letterpress;"&gt;&lt=
;span style=3D3D"background-color: rgba(255, 255, 2=3D</span><br><span>55, 0=
);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div=
&gt;&lt;div style=3D</span><br><span>=3D3D"color: rgba(0, 0, 0, 0.701961); -=
webkit-composition-fill-color: rgba(130=3D</span><br><span>, 98, 83, 0.09803=
92); text-decoration: -webkit-letterpress;"&gt;Debate Myths Ch=3D</span><br>=
<span>allenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div style=3D3D"color: rgba=
(0, 0, 0, 0.701961); -=3D</span><br><span>webkit-composition-fill-color: rgb=
a(130, 98, 83, 0.0980392); text-decoration=3D</span><br><span>: -webkit-lett=
erpress;"&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;di=
v s=3D</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=
position-fill-color: rgba=3D</span><br><span>(130, 98, 83, 0.0980392); text-=
decoration: -webkit-letterpress;"&gt;Sanders' Ta=3D</span><br><span>x/Health=
care Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div style=3D3D"color: rgba(0, 0=
, 0, 0=3D</span><br><span>.701961); -webkit-composition-fill-color: rgba(130=
, 98, 83, 0.0980392); text=3D</span><br><span>-decoration: -webkit-letterpre=
ss;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;div&gt;=3D</span><=
br><span>2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div&=
gt;Glass-Steagall, Take 2=3D</span><br><span> &amp;nbsp;(Jan. 13)&lt;/div&gt=
;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 2=3D</span>=
<br><span>55, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;=
&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=3D</span><br><span>"background-co=
lor: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (=3D</s=
pan><br><span>Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D=
"background-color: rgba(255, 255, 255=3D</span><br><span>, 0);"&gt;Sanders' =
Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=
span styl=3D</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0)=
;"&gt;Year-End Review: Fiscal Poli=3D</span><br><span>cy (Jan. 1) &amp;nbsp;=
&lt;/span&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255=3D</sp=
an><br><span>, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;=
span style=3D3D"background-colo=3D</span><br><span>r: rgba(255, 255, 255, 0)=
;"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D3D"back=3D=
</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (D=
ec. 15)&lt;/span&gt;&lt;/div&gt;=3D</span><br><span>&lt;div&gt;&lt;span styl=
e=3D3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situa=3D</span>=
<br><span>tion &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=
an style=3D3D"background-color: rgba(=3D</span><br><span>255, 255, 255, 0);"=
&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;s=
pan s=3D</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);=
"&gt;Customs Bill &amp;nbsp;(Dec. 8=3D</span><br><span>)&lt;/span&gt;&lt;/di=
v&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=
;"=3D</span><br><blockquote type=3D"cite"><span>Tax Extender Negotiations &a=
mp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"=3D=
</span><br></blockquote><span>background-color: rgba(255, 255, 255, 0);"&gt;=
Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span=3D</span><br><blockquote type=3D"ci=
te"><span>&lt;/div&gt;&lt;div&gt;&lt;span style=3D3D"background-color: rgba(=
255, 255, 255, 0);"&gt;Shelby=3D</span><br></blockquote><span> 2.0 Update &a=
mp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt=
;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;=3D</span><br><span>/div&gt;&lt;/bl=
ockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockquote&=
gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockqu=3D</span><br><span>ote&gt;&lt;/div&g=
t;&lt;/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/di=
v&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div=3D</span><br><blockquote t=
ype=3D"cite"><span>&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&l=
t;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt=
;&lt;=3D</span><br></blockquote><span>/div&gt;&lt;/div&gt;&lt;/blockquote&gt=
;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt=
;/div&gt;&lt;/div&gt;&lt;/di=3D</span><br><span>v&gt;&lt;/div&gt;&lt;/div&gt=
;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt=
;/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;=3D</span><br><span>/div&gt;&lt;=
/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div=
&gt;&lt;/body&gt;&lt;/html&gt;=3D</span><br></div></div></div></body></html>=

Content-Type: multipart/alternative;
  boundary=Apple-Mail-CE47764D-6264-47B6-8F07-36388AA05BD7
Subject: Update -- Senate Banking Nominatio
<html><head><meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=
utf-8"></head><body dir=3D"auto"><div><span></span></div><div><div><span></s=
pan></div><div dir=3D"ltr"><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;=
"><span style=3D"background-color: rgba(255, 255, 255, 0);">Mike &amp; Co. -=
-</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;">Yesterday,&nb=
sp;<span style=3D"background-color: rgba(255, 255, 255, 0);">House Ways and M=
eans chair Kevin Brady released a =E2=80=9Cbudget savings package designed t=
o cut taxes." &nbsp;Brady's gambit reflects the growing buyers remorse regar=
ding the omnibus agreement within the Freedom Caucus. &nbsp;Hard liners have=
objected to the spending levels set in the Obama-Boehner deal; this package=
is meant to buy their cooperation in the larger negotiations between partie=
s.</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">It's one of a number of tax prop=
osals getting attention and generating debate on the Hill. &nbsp;A review of=
the tax issues on the table is below.&nbsp;</span></p><p class=3D"MsoNormal=
" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255=
, 255, 0);">Good weekends all. &nbsp;Don't hesitate to let me know if there'=
s an issue you think should be covered in an upcoming update.&nbsp;</span></=
p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;">Best,</p><p class=3D"Ms=
oNormal" style=3D"margin: 12pt 0in;">Dana</p><p class=3D"MsoNormal" style=3D=
"margin: 12pt 0in;">_______________________________</p><p class=3D"MsoNormal=
" style=3D"margin: 12pt 0in;"><u style=3D"background-color: rgba(255, 255, 2=
55, 0);"><b><br></b></u></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in=
;"><u style=3D"background-color: rgba(255, 255, 255, 0);"><b>Tax Legislation=
in 2016</b></u></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span=
style=3D"background-color: rgba(255, 255, 255, 0);">Tax reform advocates en=
tered 2016 with a great deal of fanfare =E2=80=93 optimistic talk of compreh=
ensive, bipartisan, pro-growth tax reform abounded.&nbsp; What=E2=80=99s hap=
pened since New Year=E2=80=99s Day?&nbsp; A lot of interesting proposals hav=
e come forward to fix critical but narrow issues, and the bold talk of compr=
ehensive reform has remained just that =E2=80=93 talk.&nbsp;&nbsp;</span></p=
> <p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">Given the developments since Paul Ryan and=
Kevin Brady called for comprehensive tax reform =E2=80=93 Justice Scalia=E2=
=80=99s death, the rise of the Donald, and the stalled budget =E2=80=93 it=E2=
=80=99s unlikely that sweeping legislation will take form.&nbsp; More likely=
we=E2=80=99ll see smaller bills focused on particular issues.</span></p><p c=
lass=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-col=
or: rgba(255, 255, 255, 0);"><u><b>International</b></u></span><b style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">&nbsp;</b></p><p class=3D"MsoNorma=
l" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(255, 25=
5, 255, 0);">President Obama, Senator Wyden, and Rep Brady, long ago hammere=
d home the need for international tax reform.&nbsp; Their proposals include f=
inding a way to repatriate foreign-held profits of US-based multinationals, d=
ealing with corporate inversions, and setting up a new international tax cod=
e.</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D=
"background-color: rgba(255, 255, 255, 0);">The key to reaching an agreement=
on the proposals below likely lies in determining where revenue will go aft=
er foreign earning are brought back to the US.&nbsp; Brady has said before t=
hat he wouldn=E2=80=99t support a proposal in which any tax is levied on for=
eign earnings, while Wyden says the opposite =E2=80=93 revenue is a requirem=
ent.&nbsp; There is so much pressure for this to happen it=E2=80=99s hard to=
believe they can=E2=80=99t compromise.</span><span style=3D"background-colo=
r: rgba(255, 255, 255, 0);">&nbsp;</span></p><p class=3D"MsoNormal" style=3D=
"margin: 12pt 0in;"><b style=3D"background-color: rgba(255, 255, 255, 0);">=E2=
=80=A2 &nbsp; taxing foreign earnings: &nbsp;</b><span style=3D"background-c=
olor: rgba(255, 255, 255, 0);">Competing proposals exist between parties.&nb=
sp; President Obama=E2=80=99s FY17 budget includes a 14 percent repatriation=
holiday with 19 percent tax thereafter on all foreign earnings.&nbsp; Brady=
has said he=E2=80=99d rather these earnings come home with no tax attached,=
so that they can be used for investment.&nbsp; Sen. Wyden proposes that the=
income be repatriated, taxed, and the revenue be used for infrastructure de=
velopment.&nbsp; A recent bill by Schumer and Brown (below) would tax the fo=
reign income of any company that moves its headquarters overseas. &nbsp;</sp=
an></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"bac=
kground-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbsp;</span><b style=3D"b=
ackground-color: rgba(255, 255, 255, 0);">preventing inversions:</b><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;Sen. Wyden pr=
oposes making the ownership minimum for a corporate inversion 50% (current l=
aw is 15%).&nbsp; Reps Levin and Van Hollen have announced legislation to pr=
event =E2=80=9Cearnings stripping=E2=80=9D by reducing the tax preference fo=
r interest payments. &nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin=
: 12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">Sens.=
Schumer and Brown have announced they will introduce two pieces of legislat=
ion to tackle inversions =E2=80=93 one to impose an exit tax on companies mo=
ving their address overseas, and another to limit earnings stripping.&nbsp; T=
he exit tax proposal enforces the full 35 percent tax rate on all foreign ea=
rnings for companies that move abroad; their earnings stripping legislation l=
imits the tax-deducibility of interest payments to 25 oercent, down from the=
current 50 percent.</span><span style=3D"background-color: rgba(255, 255, 2=
55, 0);">&nbsp;&nbsp;</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt=
0in;"><b style=3D"background-color: rgba(255, 255, 255, 0);">=E2=80=A2 &nbs=
p;territorial system:</b><span style=3D"background-color: rgba(255, 255, 255=
, 0);">&nbsp;Brady has mentioned repeatedly that the US must adopt a territo=
rial system to remain competitive, whereby earnings from abroad are not taxe=
d in the US.&nbsp; It=E2=80=99s been a perennial favorite of Republicans but=
likely will remain a non-starter for Democrats. &nbsp;</span></p><p class=3D=
"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgb=
a(255, 255, 255, 0);"><u><b>Corporate Tax Reform</b></u></span></p><p class=3D=
"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgb=
a(255, 255, 255, 0);">Many issues solved in international tax reform proposa=
ls would affect corporate tax reform efforts =E2=80=93 often the two are con=
sidered indelibly linked.&nbsp; Prominent policymakers agree that the corpor=
ate rate must be lowered, but the final size of the tax and how it is aimed d=
iffer.</span></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span st=
yle=3D"background-color: rgba(255, 255, 255, 0);">Republican proposals gener=
ally have rates between 0 and 20 percent, with Democrats above those at 24 p=
ercent and 28 percent for Wyden and Obama respectively.&nbsp; New rules on d=
epreciations of assets =E2=80=93 specifically replacing the Modified Acceler=
ated Cost Recovery Systems with something less generous =E2=80=93 are being f=
loated as well.&nbsp; Ending the tax-deductibility of debt is a dual-purpose=
proposal =E2=80=93 useful for preventing inversions (see above) as well as e=
ncouraging businesses to fund themselves using equity rather than credit.</s=
pan></p><p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><b style=3D"backg=
round-color: rgba(255, 255, 255, 0);"><u>Earned Income Tax Credit</u></b></p=
> <p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"backgroun=
d-color: rgba(255, 255, 255, 0);">A favorite of both Democrats and Republica=
ns =E2=80=93 and notable of Paul Ryan and President Obama.&nbsp; They were r=
umored to discuss the issue during their first meeting, this past February, a=
fter Ryan=E2=80=99s ascension to Speaker.&nbsp;&nbsp;</span></p><p class=3D"=
MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba=
(255, 255, 255, 0);">The EITC is a part of Obama=E2=80=99s budget proposal f=
or this year; he suggests&nbsp;to expand the&nbsp;EITC&nbsp;for childless wo=
rkers and create a $500 =E2=80=9Csecond earner=E2=80=9D tax credit. The tota=
l cost would be $150 billion.&nbsp;Ryan has proposed something that is very s=
imilar. In addition to that, there have been five recent congressional propo=
sals (introduced by Senators Sherrod Brown and Richard Durbin, by Rep. Richa=
rd Neal, by Rep. Charles Rangel, by Rep. Danny Davis, and by Senators Patty M=
urray, Jack Reed, and Sherrod Brown) that would substantially strengthen the=
EITC for childless workers. All of them, including Ryan=E2=80=99s and Obama=
=E2=80=99s, would lower the eligibility age to 21, and all would raise the m=
aximum credit =E2=80=94 the Obama and Ryan proposals to about $1,000 and the=
other proposals to somewhat higher amounts.</span></p><p class=3D"MsoNormal=
" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255=
, 255, 0);">The recent focus on the issue makes it likely that something wil=
l be done on it soon. If Ryan and Obama can work together on this, it will b=
e a bipartisan light in the gridlocked darkness.&nbsp;</span></p><p class=3D=
"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color: rgb=
a(255, 255, 255, 0);"><u><b>Carried Interest&nbsp;</b></u></span></p><p clas=
s=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-color:=
rgba(255, 255, 255, 0);">Senator Tammy Baldwin has released a proposal to t=
ax carried interest as a regular income rather than capital gains.&nbsp; His=
torically this has been a particularly divisive issue, with lawmakers on the=
right refusing to entertain the idea.&nbsp; However, recently Republicans h=
ave begun to soften on this position =E2=80=93 perhaps after seeing the popu=
list sentiment inspired by their presidential candidates=E2=80=99 own call t=
o end the loophole.&nbsp;&nbsp;</span></p><p class=3D"MsoNormal" style=3D"ma=
rgin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255, 0);">B=
aldwin released her proposal in conjunction with Sander Levin, who released a=
version of the bill in the House as well.&nbsp;&nbsp;</span></p><p class=3D=
"MsoNormal" style=3D"margin: 12pt 0in;"><b style=3D"background-color: rgba(2=
55, 255, 255, 0);"><u>The Bottom Line</u></b></p><p class=3D"MsoNormal" styl=
e=3D"margin: 12pt 0in;"><span style=3D"background-color: rgba(255, 255, 255,=
0);">Any piece of tax reform legislation put forward which reduces revenues=
would have to find a way to offset its costs.&nbsp; In light of the Obama-B=
oehner deal on spending limits for 2016 this may be a particularly important=
issue =E2=80=93 especially as GOP leaders try to keep their right flank in o=
rder as they tussle over the spending rules.&nbsp; Conversely, any reform wh=
ich raises revenue will face strong calls from Republicans to fund tax cuts,=
and from Democrats to fund infrastructure or other initiatives.</span></p><=
p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"><span style=3D"background-=
color: rgba(255, 255, 255, 0);">As the year drags on the prospects for compr=
ehensive reform dwindle further =E2=80=93 they were never that great to begi=
n with, despite enthusiasm from party leaders.&nbsp; Even the more modest pr=
oposals laid out here may be too divisive to survive, especially in a politi=
cal environment like this one.&nbsp; Senators can=E2=80=99t be blamed for fo=
cusing their efforts on Supreme Court nominees, the budget, their own party c=
andidates, and more.</span></p></div><div><span>____________________________=
_____</span></div><div><span><br></span></div><div><span style=3D"color: rgb=
a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=
80392); background-color: rgba(255, 255, 255, 0);"><b style=3D"text-decorati=
on: -webkit-letterpress;"><u>Future/Recent Updates</u></b><br><br><span styl=
e=3D"text-decoration: -webkit-letterpress;">=E2=80=A2 &nbsp; Wednesday -- SI=
FI Landscape</span><br><span style=3D"text-decoration: -webkit-letterpress;"=
> =E2=80=A2 &nbsp;&nbsp;Thursday-- &nbsp;Financial Nominations&nbsp;</span><b=
r><span style=3D"text-decoration: -webkit-letterpress;">=E2=80=A2 &nbsp;&nbs=
p;Friday -- Update on Tax Bills</span><br><span style=3D"text-decoration: -w=
ebkit-letterpress;">=E2=80=A2 &nbsp;&nbsp;Monday -- &nbsp;Budget Irresolutio=
n&nbsp;</span></span><div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=
omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=
t-letterpress;"><span style=3D"background-color: rgba(255, 255, 255, 0);">=E2=
=80=A2 &nbsp; Tuesday --<br><br>&nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housin=
g<br>&nbsp;&nbsp;=E2=80=A2 &nbsp;&nbsp;EU/US Derivatives Deal<br>&nbsp;&nbsp=
;=E2=80=A2 &nbsp;&nbsp;Pension Crisis<br><br>Tax Bills on the Hill (Mar. 11)=
<br>Senate Banking Nominations (Mar. 10)<br>Survey of the SIFI Landscape &nb=
sp;(Mar. 9)<br>Michigan and the Meaning of Flint &nbsp;(Mar. 8) Puerto Rico'=
s Debt Crisis &nbsp;(Mar. 5)<br>Municipal Finance Caucus &nbsp;(Mar. 4)&nbsp=
;<br>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2)&nbsp;<br>Top Tax B=
ills Handicapped &nbsp;(Feb. 24)<br>Bigger than the Budget Battle &nbsp;(Feb=
. 23)<br>Infrastructure Finance Update &nbsp;(Feb. 18)&nbsp;<br>Does DFA Fai=
l on Too Big to Fail? (Feb. 17)<br>Below the Radar/Customs Bill &nbsp;(Feb. 1=
6)&nbsp;<br>International Tax Status &nbsp;(Feb. 11)<br>The Fed Holds Steady=
&nbsp;(Feb. 10)<br>Obama's FY17 Budget &nbsp;(Feb. 9)&nbsp;<br>Tax Talk of t=
he Town &nbsp;(Feb. 3)<br>Defending Dodd-Frank &nbsp;(Feb.2)<br><br>________=
___________&nbsp;<br><br></span></div></div><div><span><br></span></div><div=
> <span>Mike &amp; Co. --</span><br><span></span><br><span>Federal Reserve go=
vernor Lael Brainard is under fire today for making a $750 donation to the C=
linton campaign, with Republicans calling it proof positive that the Fed has=
=E2=80=9Ccozy ties=E2=80=9D with the Executive branch. &nbsp;</span><br><sp=
an></span><br><span>Brainard began her Fed term in 2014; preciously she was T=
reasury Undersecretary for International Affairs. &nbsp;The former MIT Profe=
ssor of Applied Economics and Brookings Fellow has served in half a dozen se=
nior White House and Treasury positions. &nbsp;</span><br><span></span><br><=
span>Sen. Shelby acted with alacrity: =E2=80=9CGovernor Brainard=E2=80=99s c=
ontributions to Hillary Clinton=E2=80=99s campaign call into question the po=
litical independence of the board,=E2=80=9D he said in an emailed statement f=
rom his press office. </span><br><span></span><br><span>Meanwhile, the same S=
enate Banking Committee Chair has announced he=E2=80=99s ready to hold heari=
ngs for some of the 16 nominations -- reviewed below -- which have languishe=
d under his tenure. </span><br><span></span><br><span>Best,</span><br><span>=
</span><br><span>Dana</span><br><span></span><br><span>_____________________=
_____________</span><br><span></span><br><span>Update: &nbsp;Senate Banking N=
om Queue</span><br><span></span><br><span>Senate Banking has the ignominious=
distinction of being the only Senate committee to have not acted on a singl=
e nominee before it in the 114th Congress. &nbsp;There are currently 16 nomi=
nations waiting for Committee action. &nbsp;These aren=E2=80=99t small time p=
ositions -- the logjam includes nominees to the Fed=E2=80=99s Board of Gover=
nors and senior Treasury, SEC, FDIC, and Ex-Im posts. </span><br><span></spa=
n><br><span>For months, Chairman Shelby has defended his Committee=E2=80=99s=
inaction by citing two issues -- he was facing a live primary threat and Pr=
esident Obama has not yet nominated a Federal Reserve vice chair for supervi=
sion, a prerequisite. </span><br><span></span><br><span>Logjam Lifting at Lo=
ng Last?</span><br><span></span><br><span>Shelby's primary behind him, he ha=
s scheduled a March 15 hearing for two SEC nominees, Lisa Fairfax and Hester=
Peirce. &nbsp;Fairfax teaches at George Washington University and Peirce is=
a senior research fellow at George Mason=E2=80=99s Mercatus Center. The Com=
mittee will not be considering either of the two Federal Reserve nominees, n=
or Adam Szubin, nominated for Treasury=E2=80=99s top post in terrorism and f=
inancial crimes.</span><br><span></span><br><span>Even if the Committee conf=
irms the three nominee scheduled for its next hearing, it will have hardly m=
ade a dent in the queue. </span><br><span></span><br><span>Nominations have c=
ontinued despite the dearth of hearings on them. &nbsp;On March 3, President=
Obama nominated Brian Quintenz and Chris Brummer to the Commodities Futures=
Trading Commission (CFTC). &nbsp;Quintenz, a Republican, works for Saeculum=
Capital in D.C. and Brummer, a Democrat, is a professor at Georgetown Unive=
rsity Law School.</span><br><span></span><br><span>Backlog at Banking</span>=
<br><span></span><br><span>With 16 unfilled vacancies before it (Messrs. Qui=
ntenz and Brummer will make it &nbsp;18), the Banking Committee has its work=
cut out for it. &nbsp;The Chairman=E2=80=99s refusal &nbsp;to consider any =
Fed nominee until Obama nominates a vice chair for supervision means that th=
ose two critical positions may remain unfilled longest. &nbsp;&nbsp;Key vaca=
ncies exist at the Export-Import Bank as well, because the board does not ha=
ve enough members to reach quorum it is unable to approve loans in excess of=
$10 million, severely hampering its impact on export promotion deals.</span=
> <br><span></span><br><span>With so many nominees waiting to receive a heari=
ng and the number legislative days the Senate remaining this session rapidly=
dwindling, it=E2=80=99s no surprise that the &nbsp;Democrats on Banking hav=
e been pushing harder than ever for the Chairman to move forward quickly. &n=
bsp;</span><br><span></span><br><span>In a letter sent to Sen. Shelby, Ranki=
ng Member Sherrod Brown and his colleagues wrote =E2=80=9CFor more than a ye=
ar, the committee has failed to carry out one of its basic duties =E2=80=A6 =
Failure to act impairs agencies=E2=80=99 and offices=E2=80=99 ability to ful=
fill all of their functions.=E2=80=9D</span><br><span></span><br><span>The p=
ending list includes the nominations below:</span><br><span></span><br><span=
> Federal Reserve</span><br><span></span><br><span>=E2=80=A2 &nbsp;Allan R. L=
andon, of Utah, to be a Member of the Board of Governors of the Federal Rese=
rve System for the unexpired term of fourteen years from February 1, 2016 [P=
N 3]. (Reappointment)</span><br><span></span><br><span>=E2=80=A2 &nbsp;Kathr=
yn M. Dominguez, of Michigan, to be a Member of the Board of Governors of th=
e Federal Reserve System for the unexpired term of fourteen years from Febru=
ary 1, 2004, vice Jeremy C. Stein, resigned. </span><br><span></span><br><sp=
an>Federal Deposit Insurance Corporation</span><br><span></span><br><span>=E2=
=80=A2 &nbsp;&nbsp;Jay Neal Lerner, of Illinois, to be Inspector General, Fe=
deral Deposit Insurance Corporation, vice Jon T. Rymer, resigned </span><br>=
<span></span><br><span>Treasury Department</span><br><span></span><br><span>=
=E2=80=A2 &nbsp;Adam J. Szubin, of the District of Columbia, to be Under Sec=
retary for Terrorism and Financial Crimes, vice David S. Cohen, resigned &nb=
sp;</span><br><span></span><br><span>=E2=80=A2 &nbsp;Amias Moore Gerety, of C=
onnecticut, to be an Assistant Secretary of the Treasury, vice Cyrus Amir-Mo=
kri, resigned </span><br><span></span><br><span>Securities and Exchange Comm=
ission</span><br><span></span><br><span>=E2=80=A2 &nbsp;Lisa M. Fairfax, of M=
aryland, to be a Member of the Securities and Exchange Commission for a term=
expiring June 5, 2020, vice Luis Aguilar, term expired</span><br><span></sp=
an><br><span>=E2=80=A2 &nbsp;Hester Maria Peirce, of Ohio, to be a Member of=
the Securities and Exchange Commission for a term expiring June 5, 2021. (R=
eappointment) </span><br><span></span><br><span>Export-Import Bank</span><br=
> <span></span><br><span>=E2=80=A2 &nbsp;John Mark McWatters, of Texas, to be=
a Member of the Board of Directors of the Export-Import Bank of the United S=
tates for a term expiring January 20, 2019, vice Sean Robert Mulvaney, term e=
xpired. ____________________________________</span><br><span></span><br><spa=
n>Reeder</span><br><span>Aw</span><br><span>Pm</span><br><span></span><br><s=
pan>=E2=80=A2 &nbsp;&nbsp;Thurs -- &nbsp;Financial Reg. Nominations</span><b=
r><span>=E2=80=A2 &nbsp;&nbsp;Fri -- Update on Tax Bills</span><br><span>=E2=
=80=A2 &nbsp;&nbsp;Mon -- &nbsp;Budget Irresolution </span><br><span></span>=
<br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br><span> &nbsp;=E2=
=80=A2 &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span> &nbsp;=E2=80=A2 &=
nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Senate Banking No=
minations (Mar. 10)</span><br><span>Survey of the SIFI Landscape &nbsp;(Mar.=
9)</span><br><span>Michigan and the Meaning of Flint &nbsp;(Mar. 8) Puerto R=
ico's Debt Crisis &nbsp;(Mar. 5)</span><br><span>Municipal Finance Caucus &n=
bsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (=
Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br=
> <span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrast=
ructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too=
Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(=
Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)</span><br=
> <span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Bud=
get &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</spa=
n><br><span>Defending Dodd-Frank &nbsp;(Feb.2)</span><br><span></span><br><s=
pan>___________________ </span><br><span></span><br><span>Mike &amp; Co. --<=
/span><br><span></span><br><span>It may feel like Michigan-morning-after but=
by dint of Mississippi, HRC padded her delegate lead last night. </span><br=
> <span></span><br><span>On Monday, &nbsp;President Obama held a financial re=
gulatory summit in the Roosevelt Room of the White House. &nbsp;Joined by th=
e heads of the Fed, the FDIC, and the CFPB, Obama declared =E2=80=9CI want t=
o dispel the notion that exists both on the left and on the right that someh=
ow, after the crisis, nothing happened," he said. =E2=80=9CWe did not just r=
ebuild this, we rebuilt it better, and we=E2=80=99ve rebuilt it stronger.=E2=
=80=9D</span><br><span></span><br><span>He has a strong argument. &nbsp;You c=
an't prove a negative and we will never know how many financial crises were a=
verted by Dodd-Frank. &nbsp;But metrics bear out the view that Americans and=
the economy have less to fear today from the Systemically Significant Finan=
cial Institutions (SIFIs) than at any time since the turn of the millennium.=
&nbsp;More on the regulatory circumstances of SIFIs below. &nbsp;</span><br=
> <span></span><br><span>Best,</span><br><span></span><br><span>Dana</span><b=
r><span></span><br><span>-------------------------------------------------</=
span><br><span></span><br><span>A Survey of the SIFI Landscape</span><br><sp=
an></span><br><span>The landscape for the eight SIFIs today -- Bank of Ameri=
ca, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morgan Chase, Morg=
an Stanley, State Street, and Wells Fargo -- is worth looking at from variou=
s perspectives. &nbsp;Presidential candidates on both sides have made a poin=
t of criticizing =E2=80=9Ctoo big to fail=E2=80=9D banks, court proceedings a=
re challenging regulators powers', members of Congress are debating whether t=
o loosen Dodd-Frank Act SIFI rules, and a current Federal Reserve Bank presi=
dent has spoken out in favor of breaking them up. &nbsp;But do SIFIs pose th=
e same threat they did in 2008?</span><br><span></span><br><span>The Power o=
f DFA</span><br><span></span><br><span>President Obama hasn=E2=80=99t remain=
ed silent in the face of criticism of DFA. &nbsp;After the Monday summit, Ob=
ama said that critics are spreading =E2=80=9Ccynicism=E2=80=9D: &nbsp;=E2=80=
=9CIt is popular =E2=80=A6 to suggest that the crisis happened and nothing c=
hanged. &nbsp;That is not true.=E2=80=9D &nbsp;The President cited the 14 mi=
llion new jobs created since his inauguration, proof, he said, that sensible=
regulations on Wall Street don=E2=80=99t stifle business growth.</span><br>=
<span></span><br><span>Two major business news stories from 2015 support the=
President=E2=80=99s view: &nbsp;</span><br><span></span><br><span>=C2=B7 &n=
bsp;&nbsp;General Electric continued to sell off GE Capital, its $42 billion=
investment arm, hoping to exit SIFI status in Q1 2016 as a result of its di=
vestiture. &nbsp;</span><br><span></span><br><span>=C2=B7 &nbsp;&nbsp;MetLif=
e has been embroiled in a legal battle with the Financial Stability Oversigh=
t Council (FSOC) since the regulator announced in December 2014 that the ins=
urance company was considered a SIFI =E2=80=93 arguments were heard in New Y=
ork this January. </span><br><span></span><br><span>70 percent of DFA has be=
en implemented by the regulatory agencies since it was passed. &nbsp;&nbsp;D=
espite the constraints on SIFIs, they have by and large adapted well, making=
adjustments faster, earlier and more successfully=E2=80=9D than their overs=
eas counterparts. </span><br><span></span><br><span>=C2=B7 &nbsp;&nbsp;SIFIs=
now hold much more capital now than they did before the crisis =E2=80=93 to=
the tune of $700 billion in additional capital, twice the amount prior to i=
t</span><br><span></span><br><span>=C2=B7 &nbsp;&nbsp;SIFIs have three times=
the liquidity they had before the crisis</span><br><span></span><br><span>=C2=
=B7 &nbsp;&nbsp;Derivatives clearing houses force transparency on SIFI specu=
lation, preventing over-exposure</span><br><span></span><br><span>=C2=B7 &nb=
sp;&nbsp;&nbsp;SIFIs now post collateral on their derivatives trades</span><=
br><span></span><br><span>=C2=B7 &nbsp;&nbsp;&nbsp;SIFIs submit to rigorous s=
tress testing by the Federal Reserve and FDIC </span><br><span></span><br><s=
pan>=C2=B7 &nbsp;&nbsp;&nbsp;SIFIs are being forced to draft =E2=80=9Cliving=
wills,=E2=80=9D which have already forced some to streamline or simplify so=
they can wind down without requiring a bailout</span><br><span></span><br><=
span>Congressional Update</span><br><span></span><br><span>Congress is split=
between those who want to reduce regulatory pressure on big banks and those=
who would rather see it ramped up. &nbsp;Sen. Shelby, Senate Banking Chair,=
introduced the Financial Regulatory Improvement Act of 2015, a grab-bag of e=
xceptions and exemptions from regulations, mostly for banks with between $50=
and $500 billion in assets. &nbsp;In a similar vein, Sens Warner, Portman, a=
nd Collins introduced the Independent Agency Regulatory Analysis Act to requ=
ire that regulators undertake a cost-benefit analysis of any rules they wish=
to implement.</span><br><span></span><br><span>On the flip side, Sens. McCa=
in and Warren=E2=80=99s 21st Century Glass-Steagall Act proposes to split co=
mmercial and investment banks in a bid to finally kill off the TBTF problem.=
&nbsp;Sens. Warren and Vitter teamed up early in 2015 to introduce a packag=
e of amendments to the Federal Reserve Act =E2=80=93- that bill notably woul=
d set forward stricter regulations when an entity is considered insolvent, a=
nd therefore ineligible for Federal Reserve loans, as well as require that t=
he Fed lend money to distressed institutions at market rates.</span><br><spa=
n></span><br><span>The Regulators' Agenda </span><br><span></span><br><span>=
Under Basel III requirements for large banks to satisfy Liquidity Coverage R=
atios (LCR) were adopted by a number of national regulators, including the Fe=
deral Reserve. &nbsp;While the Fed has floated a rule change allowing some m=
unicipal bonds to count as High Quality Liquid Assets (HQLA), that hasn=E2=80=
=99t stopped Rep. Luke Messer from proposing HR 2209 to force regulators all=
ow a greater share of munis to count as HQLA (see Update, Feb. 18).</span><b=
r><span></span><br><span>The Fed is also working on implementing a rule on S=
ingle-Counterparty Credit Limits (SCCL), setting boundaries on credit exposu=
re between large banks or major counterparties. &nbsp;The rule is meant to p=
revent banks from becoming overexposed to other financial institutions, prev=
enting them from taking overly large losses in the event that the counterpar=
ty fails. &nbsp;Analysts suspect that firms are nearly $100 billion over the=
limits imposed by this rule, but Yellen says it is necessary to set a =E2=80=
=9Cbright line=E2=80=9D on credit exposure.</span><br><span></span><br><span=
> SIFIs Moving Forward</span><br><span></span><br><span>There is no doubt tha=
t the upcoming MetLife ruling will be a critical pivot point for how regulat=
ors interact with SIFIs. &nbsp;If the FSOC is required to retract the firm=E2=
=80=99s SIFI status it will open the regulator up for a whole slew of challe=
nges from other banks and institutions. &nbsp;The fate of Congressional prop=
osals to restrict regulator=E2=80=99s efforts, either by determining rules f=
or them or by burdening them with regulations of their own, should be seen a=
s the start of a potential sea change in the regulatory climate. &nbsp;Durin=
g his Monday meeting, President Obama warned of this: "If there is a signifi=
cant challenge in terms of regulating Wall Street and regulating our financi=
al sector it is primarily coming from certain members of Congress who are co=
nsistently pressuring independent regulators to back off.=E2=80=9D</span><br=
> <span></span><br><span>It is not a bad time to be a SIFI in America =E2=80=93=
it=E2=80=99s certainly much better to be one now than in 2010. &nbsp;While D=
FA has forced restructuring and streamlining to occur, events like the GE Ca=
pital sell-off may prove to be exceptions that prove the rule rather than th=
e new normal for SIFIs, especially if MetLife wins its case against regulato=
rs. &nbsp;President Obama was right to point to Congress as the cause of reg=
ulatory gridlock; the political will seen after the economic collapse has la=
rgely evaporated, giving SIFIs far more breathing room and opening up opport=
unities to push through =E2=80=9Cregulatory reform=E2=80=9D measures.</span>=
<br><span></span><br><span>_____________________________________</span><br><=
span></span><br><span>Upcoming/Recent Updates</span><br><span></span><br><sp=
an>=E2=80=A2 &nbsp;&nbsp;Thurs -- &nbsp;Financial Reg. Nominations</span><br=
> <span>=E2=80=A2 &nbsp;&nbsp;Fri -- Update on Tax Bills</span><br><span>=E2=80=
=A2 &nbsp;&nbsp;Mon --</span><br><span></span><br><span> &nbsp;=E2=80=A2 &nb=
sp;&nbsp;ERI/Housing</span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;EU/US Deri=
vatives Deal</span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;Pension Crisis</sp=
an><br><span></span><br><span>Survey of the SIFI Landscape (Mar 8)</span><br=
> <span>Michigan and the Meaning of Flint &nbsp;(Mar 8) Puerto Rico's Debt Cr=
isis &nbsp;(Mar. 5)</span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) <=
/span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span=
> <br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger t=
han the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance=
Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (=
Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span=
> <br><span>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed H=
olds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9=
) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defen=
ding Dodd-Frank &nbsp;(Feb.2)</span><br><span></span><br><span>_____________=
______ </span><br><span></span><br><span>Mike &amp; Co. &nbsp;--</span><br><=
span></span><br><span>Tomorrow=E2=80=99s Michigan primary election may end u=
p being "yugge" if it seriously opens up the possibility that Trump can put t=
he state in play in November -- =E2=80=9CA normal Republican cannot think of=
bringing in Michigan,=E2=80=9D said Trump -- nothing any other GOP presiden=
tial candidate could do, now, or for the past 25 years. </span><br><span></s=
pan><br><span>Flint crystallizes so many of the issues that give rise to thi=
s new tectonic possibility. &nbsp;There had to be a debate in Flint because t=
here had to be a debate about it... and the Secretary deserves far more cred=
it than she's getting for making sure it happened. </span><br><span></span><=
br><span>In Washington, the Senate is readying to vote on a bipartisan packa=
ge for drinking water aid. &nbsp;It=E2=80=99s not a slam dunk, however, as M=
ike Lee has maintained a hold on the bill, saying political grandstanding is=
taking the place of policy. &nbsp;More on all this below. </span><br><span>=
</span><br><span>Best,</span><br><span></span><br><span>Dana</span><br><span=
> ______________________________________</span><br><span></span><br><span></s=
pan><br><span>Flint -- Bills and Broad Strokes</span><br><span></span><br><s=
pan>The Michigan legislature approved in January a $28 million appropriation=
to provide immediate aid to Flint. &nbsp;Some critics maintain that the nee=
d to do so demonstrates the sorry condition of the state=E2=80=99s tax polic=
y. &nbsp;</span><br><span></span><br><span>The tax base in Flint was eroded s=
ignificantly during the 1980=E2=80=99s and 90=E2=80=99s as industry jobs lef=
t and the population fell. &nbsp;To deal with the resulting fiscal imbalance=
the Flint city manager was instructed to cut costs =E2=80=93 he did so part=
ly by switching the source of Flint=E2=80=99s drinking water. The broad and d=
eep cuts to state and local budgets affected basic public services most prof=
oundly. &nbsp;Now, as a direct cause of these cuts, the residents of Flint a=
re grappling with an issue no American ever considered possible =E2=80=93 th=
ey do not have access to fresh drinking water.</span><br><span></span><br><s=
pan>For all the talk of federal aid in infrastructure financing there must b=
e a place made for regular tax payers. &nbsp;These people bear a significant=
portion of direct funding for infrastructure projects both in their states a=
nd municipalities. &nbsp;When those tax revenues are redirected, or when sta=
te spending is cut to the point that basic services can=E2=80=99t be provide=
d then taxpayers are right to question what, in fact, their taxes are paying=
for. &nbsp;</span><br><span></span><br><span>Congressional update:</span><b=
r><span></span><br><span>At the insistence of Democrats, the Flint agreement=
has been attached to a Senate energy bill introduced by Sen. Murkowski, S. 2=
012, which is next in line in the Senate following the opioid addiction bill=
. &nbsp;The energy bill will be voted on soon, providing that things moves q=
uickly (not a sure bet, since Dems may want to vote on certain amendments to=
the opioid bill). &nbsp;Despite these potential hang ups, Senate leadership=
hopes to wrap up the energy bill by the end of the week =E2=80=93 giving th=
em some breathing room before the Senate adjourns for Easter recess by March=
21. </span><br><span></span><br><span>While Sen. Cruz lifted his hold on th=
e bill last week, Mike Lee has continued to block movement on the legislatio=
n. &nbsp;Sen. Lee is claiming that federal aid is not necessary to deal with=
Flint: =E2=80=9CThe state of Michigan has an enormous budget surplus this y=
ear and a large rainy-day fund, totaling hundreds of millions of dollars," t=
he Senator said in a statement.</span><br><span></span><br><span>Flint agree=
ment:</span><br><span></span><br><span>The bill provides $250 million to ass=
ist the residents of Flint, Michigan and other American cities experiencing c=
ritical problems with their water supplies by increasing funding for Drinkin=
g Water Act State Revolving Funds and provide start-up funding for the new W=
ater Infrastructure Finance and Innovation Act. &nbsp;It includes:</span><br=
> <span></span><br><span>=C2=B7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$100 mill=
ion for Drinking Water State Revolving Funds (SRFs) accessible by any state w=
ith a drinking water emergency. &nbsp;It requires states to submit plans exp=
laining how the money will be spent to address the emergency before funding i=
s provided. &nbsp;&nbsp;Funds that remain after 18 months will be distribute=
d to all states under the existing SRF formula. </span><br><span></span><br>=
<span>=C2=B7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$70 million in funding to b=
ack secured loans made under the new Water Infrastructure Finance and Innova=
tion Act (WIFIA). &nbsp;A federal investment of $70 million could support se=
cured loans of up to $4.2 billion to address water and wastewater infrastruc=
ture needs across the country, according to Sen. Inhofe=E2=80=99s office. &n=
bsp;All states and all communities with clean water and drinking water infra=
structure needs are eligible for this assistance. </span><br><span></span><b=
r><span>=C2=B7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$50 million for various i=
n authorized health programs for national use to address and prevent impacts=
from exposure to lead. </span><br><span></span><br><span>=E2=80=9CFlint=E2=80=
=9D is more than Flint</span><br><span></span><br><span>Flint is a crisis of=
governance =E2=80=93 there is a disconnect in the relationship between citi=
zens and government, and it bridges every demographic. &nbsp;Just as the poo=
r drink water so do the wealthy, and when a service as basic and fundamental=
is undermined to the point that an entire town of nearly a hundred thousand=
s is poisoned by its own government, voters will express themselves, given t=
he chance. </span><br><span></span><br><span>Residents, customers, consumers=
, taxpayers =E2=80=93- citizens at the end of the day &nbsp;=E2=80=93- are s=
eeing their government in a significantly different light and thus far are v=
oting differently this year accordingly. Donald Trump would not likely be ab=
le to put Michigan in play without this new perspective animation politics i=
n Michigan as much as anywhere. </span><br><span></span><br><span>__________=
___________________________</span><br><span></span><br><span>Upcoming/Recent=
Updates</span><br><span></span><br><span>=E2=80=A2 &nbsp;&nbsp;Tues -- &nbs=
p;Financial Reg. Nominations</span><br><span>=E2=80=A2 &nbsp;&nbsp;Wed -- &n=
bsp;SIFIs and the Fed</span><br><span>=E2=80=A2 &nbsp;&nbsp;Thurs -- Update o=
n Tax Bills</span><br><span></span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;ER=
I/Housing</span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax Reform</span=
> <br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;EU/US Derivatives Deal</span><br><sp=
an> &nbsp;=E2=80=A2 &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><s=
pan>Michigan and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbs=
p;(Mar. 5)</span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><b=
r><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><sp=
an>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the=
Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update=
&nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17=
)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><s=
pan>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds S=
teady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </s=
pan><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending D=
odd-Frank &nbsp;(Feb. 2)</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (=
Jan. 28)</span><br><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span>=
<br><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br><span>Regulating=
the Regulators &nbsp;(Jan. 21)</span><br><span>Sanders' Tax/Healthcare Poli=
cy &nbsp;(Jan 20)</span><br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br=
> <span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Ste=
agall, Take 2 &nbsp;(Jan. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(=
Jan. 8)</span><br><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><=
span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br><span>Year-End Revi=
ew: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &=
nbsp;Omnibus Review (Dec. 15)</span><br><span>Omnibus Situation &nbsp;(Dec. 1=
4)</span><br><span></span><br><span>------</span><br><span></span><br><span>=
Mike &amp; Co. --</span><br><span>The February jobs report came out this mor=
ning better than expected. &nbsp;&nbsp;Once again, the US economy maintained=
strong job growth without wage gains. &nbsp;Wages fell 0.1 percent in Febru=
ary, but 242,000 positions were added to the economy, marking 72 months of u=
ninterrupted job gains =E2=80=93 the longest streak on record. </span><br><s=
pan></span><br><span>Additionally, labor participation rose by 1.5 million A=
mericans since November =E2=80=93 making it the highest it has been in 16 ye=
ars (62.9 percent of the overall share of Americans).</span><br><span></span=
> <br><span>The report from Puerto Rico is not as sunny. &nbsp;The territory i=
s still waiting on a Congressional bill designed to handle the ongoing debt c=
risis on the island. &nbsp;More &nbsp;below.</span><br><span></span><br><spa=
n>Best,</span><br><span></span><br><span>Dana</span><br><span></span><br><sp=
an>______________________________________</span><br><span></span><br><span>P=
uerto Rico=E2=80=99s Time Bomb</span><br><span></span><br><span>The Puerto R=
ican debt crisis has been an ongoing concern for both Congress, Wall Street a=
nd the Obama administration for some years now =E2=80=93 the territory=E2=80=
=99s bond ratings have been steadily dropping into the junk category and fel=
l from A- in 2005 to CCC+ last April. &nbsp;At the heart of the matter is $7=
0 billion in bonds that Puerto Rico owes and says it cannot pay on. </span><=
br><span></span><br><span>Because Puerto Rican bonds are tax exempt in all 5=
0 states and the District of Columbia, making them incredibly popular invest=
ments for mutual funds, pensioners, and big banks. &nbsp;Over 20 percent of m=
utual funds in the United States hold at least some Puerto Rican bonds, with=
$11.3 billion in portfolio, with a further $15 billion in bonds held by hed=
ge funds. &nbsp;Now that the territory=E2=80=99s bonds are in the =E2=80=9Cj=
unk=E2=80=9D category, pension funds and insurance firms are unable to hold t=
hem any longer.</span><br><span></span><br><span>The diverse list of bond ho=
lders has thrown a wrench into the plans of those who would rather allow Pue=
rto Rico to default on its obligations =E2=80=93 something which would requi=
re legislative action (the territory doesn=E2=80=99t have that luxury, unlik=
e states). &nbsp;If Puerto Rico is allowed to renege on its contractual agre=
ements, the argument goes, then it creates a moral hazard for other entities=
to do the same rather than make the tough choices necessary to honor their o=
bligations. &nbsp;The fact that many of these bonds are essentially held by o=
rdinary Americans (through mutual funds and pensions) makes the argument all=
that stronger for many representatives. &nbsp;A state hasn=E2=80=99t declar=
ed bankruptcy since Arkansas did so in 1933.</span><br><span></span><br><spa=
n>Moral hazard is inherent in a debt restructuring deal; here, the path for P=
uerto Rico toward capital markets after anything of the sort would still be a=
n especially painful one (see: Argentina). &nbsp;Additionally, there are few=
serious proposals to grant the island full Chapter 9 status. &nbsp;Most opt=
instead for some form of negotiated haircut agreement combined with extendi=
ng maturities on the bonds; these proposals are likely to succeed, consideri=
ng Puerto Rico is almost certainly unable to maintain its bond payment sched=
ule without a restructuring agreement.</span><br><span></span><br><span>Admi=
nistration Position</span><br><span></span><br><span>Testifying before the H=
ouse Committee on Natural Resources on Feb 25, Treasury official Antonio Wei=
ss warned lawmakers that Puerto Rico needs =E2=80=9Can immediate solution=E2=
=80=9D if it=E2=80=99s to survive past May 1, when a $470 million bond payme=
nt is due. &nbsp;Soon after that, on July 1, a $1.9 billion bond payment wil=
l come due as well =E2=80=93 Puerto Rican representatives have already decla=
red they cannot meet those payments without assistance.</span><br><span></sp=
an><br><span>Weiss laid out the administration=E2=80=99s two-part plan: firs=
t the territory must be allowed to restructure its debt obligations, second a=
fiscal oversight board should be established to assist the island with mana=
ging its finances. &nbsp;Importantly, Weiss stopped short of advocating for b=
ankruptcy protection for Puerto Rico and told the committee that =E2=80=9Can=
advisory board is not adequate to do the job=E2=80=9D alone. &nbsp;</span><=
br><span></span><br><span>House Democrats voiced concern over the financial o=
versight board, Rep. Luis Guti=C3=A9rrez: =E2=80=9CThey=E2=80=99re saying th=
at there=E2=80=99s a joint responsibility, but it seems to me that all of th=
e responsibility is being weighed on the people of Puerto Rico.=E2=80=9D &nb=
sp;</span><br><span></span><br><span>Meanwhile Republicans claimed that any p=
lan to restructure Puerto Rican debt was a non-starter; a few hours after th=
e hearing the Republican Study Committee announced it would oppose any plan i=
ncluding such a provision. &nbsp;"Changing the rules mid-game would be unfai=
r to Puerto Rico=E2=80=99s creditors who entered into these arrangements wit=
h agreed upon terms and would delegitimize future transactions," said RSC Ch=
airman Bill Flores.</span><br><span></span><br><span>Policy Options</span><b=
r><span></span><br><span>Until recently the two parties have maintained star=
kly contrasting views on how to best deal with Puerto Rico=E2=80=99s debt cr=
isis =E2=80=93 Democrats have pushed for a forced debt restructuring, with s=
ome calling for the island to be granted Chapter 9 bankruptcy protections, m=
eanwhile Republicans called for a financial oversight council to make the to=
ugh fiscal decisions necessary for Puerto Rico to maintain its debt obligati=
ons without reneging on its agreements.</span><br><span></span><br><span>The=
administration, through Weiss, has advocated a middle of the road approach.=
By adopting both proposals and avoiding the further edges of each (no bankr=
uptcy, and no unaccountable board staffed by Wall Streeters), the administra=
tion hopes to find compromise between each group. &nbsp;And it seems like it=
might work.</span><br><span></span><br><span>Finding Compromise</span><br><=
span></span><br><span>Recently, however, the conservative stance against deb=
t restructuring has lessened =E2=80=93 with some Republicans saying that the=
y could support a PR bill as long as it doesn=E2=80=99t include Chapter 9 ba=
nkruptcy. &nbsp;House Natural Resources chair Bob Bishop has been working on=
a bill for Puerto Rico that does include some element of debt restructuring=
, and recently said =E2=80=9C=E2=80=9CI=E2=80=99m sure RSC will be satisfied=
with what we do =E2=80=A6 to say that some element of [debt restructuring] c=
ould be in there, yeah.=E2=80=9D &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&=
nbsp;&nbsp;</span><br><span>The House is still sticking to its end of March d=
eadline set by Speaker Ryan for putting forward a final bill on Puerto Rico o=
n the floor for a vote. </span><br><span></span><br><span>__________________=
___________________</span><br><span></span><br><span>Upcoming/Recent Updates=
</span><br><span></span><br><span>=E2=80=A2 &nbsp;&nbsp;Thurs -- Municipal Fi=
nance Caucus</span><br><span>=E2=80=A2 &nbsp;&nbsp;Fri -- Puerto Rico</span>=
<br><span>=E2=80=A2 &nbsp;&nbsp;Mon -- FY17</span><br><span>=E2=80=A2 &nbsp;=
&nbsp;Tues -- 13 D Regs</span><br><span>=E2=80=A2 &nbsp;&nbsp;Wed -- &nbsp;T=
BD</span><br><span></span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;SBC Nominat=
ions</span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br><spa=
n> &nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax Reform</span><br><span> &nbsp;=E2=80=
=A2 &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span> &nbsp;=E2=80=A2 &nbs=
p;&nbsp;Pension Crisis</span><br><span></span><br><span>Michigan and the Mea=
ning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><br><sp=
an>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbs=
p;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handica=
pped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Fe=
b. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span>=
<br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below t=
he Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International Tax Sta=
tus &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</sp=
an><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of=
the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb. 2)=
</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br><span=
> The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br><span>Debate Myths C=
hallenged &nbsp;(Jan. 25)</span><br><span>Regulating the Regulators &nbsp;(J=
an. 21)</span><br><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span>=
<br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><span>2016 Tax Agenda o=
n the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Steagall, Take 2 &nbsp;(Jan=
. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br><span>=
Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><span>Sanders' Fin Reg Pr=
oposals &nbsp;(Jan. 5)</span><br><span>Year-End Review: Fiscal Policy (Jan. 1=
) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec=
. 15)</span><br><span>Omnibus Situation &nbsp;(Dec. 14)</span><br><span>FY 2=
016 Omnibus Talks (Dec. 10)</span><br><span>Customs Bill &nbsp;(Dec. 8)</spa=
n><br><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br><span>Brown o=
n HFT &nbsp;(Dec. 4)</span><br><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span>=
<br><span></span><br><span>________</span><br><span></span><br><span>Mike &a=
mp; Co. --</span><br><span></span><br><span>In half an hour, the BLS jobs re=
port for February is due to be released. &nbsp;If you'd like an update or ha=
ve any questions, please let me know. </span><br><span></span><br><span>Mean=
while, amid the most fractious campaign in recent history comes an initiativ=
e in Congress that sounds, well, incongruous with the cacophany. &nbsp;A bro=
ad and bipartisan group of House members is behind the official launch of a c=
aucus this week dedicated to protecting and expanding the tax exemption enjo=
yed by municipal debt. </span><br><span></span><br><span>You have to start s=
omewhere and why not with incentives to address the nation's long-neglected i=
nfrastructure with tax breaks -- about the only kind of stimulus and jobs me=
asure that can garner bipartisan support? &nbsp;&nbsp;More on the new Munici=
pal Finance Caucus below. &nbsp;</span><br><span></span><br><span>Best,</spa=
n><br><span></span><br><span>Dana</span><br><span></span><br><span>_________=
____________________________</span><br><span>A New Caucus</span><br><span></=
span><br><span>On Tuesday, Reps. Randy Hultgren and Dutch Ruppersberger anno=
unced that they have formed the Municipal Finance Caucus to protect the tax-=
exempt status of municipal debt and reexamine the way it is treated in finan=
cial regulations. &nbsp;In 2015, Hultgren and Ruppersberger sent a letter (r=
eprinted below) to House leadership opposing the President=E2=80=99s propose=
d 28 percent cap on tax deductions for municipal bonds, signed by over 120 o=
f their colleagues. &nbsp;</span><br><span></span><br><span>Their announceme=
nt coincided with the National Association of State Treasurers=E2=80=99 legi=
slative conference in D.C. The same group drafted another letter, signed by m=
ore than 600 state and local officials, which urges the leaders of the House=
Ways and Means Committee and the Senate Finance Committee to reject curbs t=
o the muni exemption. </span><br><span></span><br><span>Who=E2=80=99s in it?=
</span><br><span></span><br><span>Right now just the founding representative=
s have declared their official membership, but it=E2=80=99s foreseeable that=
some of the 120 representatives that signed the letter to House leadership i=
n 2015 will join as well. &nbsp;It=E2=80=99s also seen a s likely that some S=
enators will want to join the caucus, but the founders haven't made clear if=
bicameral membership is a priority.</span><br><span></span><br><span>Is it B=
ipartisan?</span><br><span></span><br><span>Since 2013 Hultgren and Ruppersb=
erger have led bipartisan efforts to draft letters of support for municipal b=
onds. &nbsp;The signatories to these letters include members from both sides=
of the aisle. &nbsp;Rep. Ruppersberger focuses mostly on local government a=
nd is pretty moderate. Rep. Hultgren is a more orthodox conservative Republi=
can. </span><br><span></span><br><span>What=E2=80=99s the Purpose?</span><br=
> <span></span><br><span>The Caucus plans to defend municipal bonds=E2=80=99 t=
ax exempt status and advocate for regulatory changes which favor those bonds=
. &nbsp;Proposals to limit the tax-exempt status of these bonds have been fl=
oated in recent years. </span><br><span></span><br><span>In addition to call=
ing for the bonds to maintain their tax preferred status, the Caucus will pu=
sh for the passage of HR 2209, legislation considering municipal bonds as a H=
igh Quality Liquid Asset (HQLA) =E2=80=93 a particularly contentious issue b=
ecause of the disagreement over how flexible these liquidity rules should be=
from a systemic risk perspective. </span><br><span></span><br><span>Positio=
ns Taken to Date</span><br><span></span><br><span>The Caucus founders have o=
pposed Obama=E2=80=99s 2015 proposal to cap municipal bond tax exemption at 2=
8 percent. Rep. Hultgren is also a co-sponsor of HR 2209 =E2=80=93 the bill t=
o set the liquidity for municipal bond assets at Level 2A (see Update, Feb. 1=
8). &nbsp;Hultgren said the liquidity rules are an example of how regulators=
misunderstand municipal bonds, specifically the frequent serial structure o=
f the their issuances.</span><br><span></span><br><span>Many investors flock=
to municipal bonds for security. But some federal regulators trying to shor=
e up the banking system aren't convinced the bonds would be easy to sell in a=
crisis. </span><br><span></span><br><span>Division of Opinion</span><br><sp=
an></span><br><span>Division of opinion on HR 2099 falls along unusual lines=
, with Wall Street, Congress and municipal officials challenging bank regula=
tors' skepticism toward municipal debt. &nbsp;&nbsp;At issue are new rules a=
imed at ensuring banks can raise enough cash during a financial-market meltd=
own to fund their operations for 30 days. The requirements mean banks have t=
o hold more cash or securities that are easily sellable. </span><br><span></=
span><br><span>Regulators don't think it is the place of Congress to second g=
uess how they size up securities. Fed Chairwoman Janet Yellen, at a congress=
ional hearing Feb. 11, said legislation would "interfere with our supervisor=
y judgments." </span><br><span></span><br><span>Big banks such as Citigroup I=
nc. and Wells Fargo &amp; Co. have sprung into action in lobbying Congress, a=
long with municipal leaders who fret the rules will diminish bank bond-buyin=
g which could raise borrowing costs on infrastructure projects.</span><br><s=
pan></span><br><span>Hultgren also said the caucus will work to update the n=
umber of projects that could be financed by qualified small issue manufactur=
ing bonds, a type of private-activity bond whose proceeds can be used to fin=
ance manufacturing facilities for small- and mid-sized manufacturers. The ta=
x code provisions on small industrial development bonds have not been change=
d since the 1980s, he said. Hultgren sponsored a bill last year entitled =E2=
=80=9CThe Modernizing American Manufacturing Bonds Act,=E2=80=9D which was f=
ocused on expanding opportunities for qualified small issue manufacturing bo=
nds, particularly by changing the national volume cap set by Congress. </spa=
n><br><span></span><br><span>What can be achieved?</span><br><span></span><b=
r><span>Caucuses such as this one don't have the best reputation when it com=
es to getting things done. &nbsp;But rules relating to the liquidity value o=
f capital is one of the few policy &nbsp;areas of any kind where there is bi=
partisan agreement. &nbsp;Municipal bonds, in particular, have a universal a=
ppeal because of their direct link to local and state infrastructure project=
s. &nbsp;At the very least, the caucus will spark some discussion about the b=
est way to both reform existing methods for funding infrastructure investmen=
t and find new ways to fund it. </span><br><span></span><br><span>__________=
_______________________</span><br><span></span><br><span>Recent/Planned Upda=
tes</span><br><span></span><br><span>=E2=80=A2 &nbsp;&nbsp;Thurs -- Municipa=
l Finance Caucus</span><br><span>=E2=80=A2 &nbsp;&nbsp;Fri -- Puerto Rico</s=
pan><br><span>=E2=80=A2 &nbsp;&nbsp;Mon -- FY17</span><br><span>=E2=80=A2 &n=
bsp;&nbsp;Tues -- 13 D Regs</span><br><span>=E2=80=A2 &nbsp;&nbsp;Wed -- &nb=
sp;TBD</span><br><span></span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;SBC Nom=
inations</span><br><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br>=
<span> &nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax Reform</span><br><span> &nbsp;=E2=
=80=A2 &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span> &nbsp;=E2=80=A2 &=
nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Municipal Finance=
Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; P=
rospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)=
</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><sp=
an>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fa=
il on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bil=
l &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)<=
/span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's=
FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb=
. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br><span>Fis=
cal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br><span>The Fed Holds Rates=
, for Now &nbsp;(Jan. 28)</span><br><span>Debate Myths Challenged &nbsp;(Jan=
. 25)</span><br><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br><s=
pan>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br><span>HRC's Tax P=
olicy &nbsp;(Jan. 17)</span><br><span>2016 Tax Agenda on the Hill &nbsp;(Jan=
. 16)</span><br><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br><span=
> 2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br><span>Sanders Proposals/GS &=
amp; TBTF (Jan. 7)</span><br><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)=
</span><br><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Revi=
ew: Fin. Reg. &nbsp;(Dec. 29</span><br><span></span><br><blockquote type=3D"=
cite"><span>On Mar 2, 2016, at 9:39 PM, Dana &lt;<a href=3D"mailto:danachasi=
[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span>Mike &amp; Co. --</span><br></blockquote><blockquote type=3D"cite"><=
span></span><br></blockquote><blockquote type=3D"cite"><span>I hope everyone=
's had a chance to reflect on the magnitude of yesterday's hard fought prima=
ry wins -- with gratitude to those who toiled in the field. </span><br></blo=
ckquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote t=
ype=3D"cite"><span>On Saturday night, the campaign debate turns to Flint, Mi=
chigan -- to the town and the issues it has come to symbolize. &nbsp;&nbsp;T=
he town's water contamination and related problems finally move center stage=
. </span><br></blockquote><blockquote type=3D"cite"><span></span><br></block=
quote><blockquote type=3D"cite"><span>Congress has moved with uncommon alacr=
ity and bipartisanship in recent weeks on legislation to direct funding to a=
ddress the water issue in Flint and elsewhere. &nbsp;&nbsp;Here, we look at t=
he bill's provisions, its funding steam, and its prospects. &nbsp;</span><br=
> </blockquote><blockquote type=3D"cite"><span></span><br></blockquote><block=
quote type=3D"cite"><span>Best,</span><br></blockquote><blockquote type=3D"c=
ite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Dana</spa=
n><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><=
blockquote type=3D"cite"><span>The Flint Bill -- Provisions &amp; Prospects<=
/span><br></blockquote><blockquote type=3D"cite"><span>A bipartisan deal has=
been reached in the Senate last week to aid the beleaguered city of Flint, M=
ichigan as it tries to remedy its drinking water issues. &nbsp;Sen. Inhofe, t=
he lead GOP Senator on the bill, called it =E2=80=9Ccommon-sense," and noted=
that the spending is already programmed and involves no supplemental approp=
riation. &nbsp;&nbsp;The bill may be ready to move forward after Sen. Cruz l=
ifted a hold he had placed on the bill last week. &nbsp;Sen. Mike Lee is sti=
ll a hold-out. </span><br></blockquote><blockquote type=3D"cite"><span>The b=
ill provides $250 million to assist the residents of Flint, Michigan and oth=
er American cities experiencing critical problems with their water supplies b=
y increasing funding for Drinking Water Act State Revolving Funds and provid=
e start-up funding for the new Water Infrastructure Finance and Innovation A=
ct. &nbsp;It also provides:</span><br></blockquote><blockquote type=3D"cite"=
> <span>=E2=80=A2 &nbsp;&nbsp;$100 million for Drinking Water State Revolving=
Funds (SRFs) accessible by any state with a drinking water emergency. &nbsp=
;It requires states to submit plans explaining how the money will be spent t=
o address the emergency before funding is provided. &nbsp;&nbsp;Funds that r=
emain after 18 months will be distributed to all states under the existing S=
RF formula. </span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2=
&nbsp;&nbsp;$70 million in funding to back secured loans made under the new=
Water Infrastructure Finance and Innovation Act (WIFIA). &nbsp;A federal in=
vestment of $70 million could support secured loans of up to $4.2 billion to=
address water and wastewater infrastructure needs across the country, accor=
ding to Sen. Inhofe=E2=80=99s office. &nbsp;All states and all communities w=
ith clean water and drinking water infrastructure needs are eligible for thi=
s assistance. </span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=
=A2 &nbsp;&nbsp;$50 million for various in authorized health programs for na=
tional use to address and prevent impacts from exposure to lead. </span><br>=
</blockquote><blockquote type=3D"cite"><span>Where will the money come from?=
&nbsp;&nbsp;The package has been fully paid for -- it redirects appropriati=
ons by taking funds from the Advanced Technology Vehicles Manufacturing (ATV=
M) Fund, which offers loans for auto companies. </span><br></blockquote><blo=
ckquote type=3D"cite"><span>Does that matter? &nbsp;&nbsp;Per Sen. Inhofe =E2=
=80=9C[the ATVM is] a failed program that hasn=E2=80=99t been used in more t=
han a year and has only issued five loans since 2008."</span><br></blockquot=
e><blockquote type=3D"cite"><span>More on ATVM: The ATVM program is authoriz=
ed to award up to $25 billion in loans; there is no deadline for completing s=
uch loan commitments. Congress funded the program in 2009, when it appropria=
ted $7.5 billion to cover the subsidy cost for the $25 billion in loans, as w=
ell as $10 million for program implementation. Since the start of the progra=
m, DOE has awarded $8.4 billion in loans to five companies. As of January 20=
15, ATVM has $16.6 billion in remaining loan authority. No new loans have be=
en made since 2011. Two companies =E2=80=94 Fisker and the Vehicle Productio=
n Group =E2=80=94 were unable to make payments on their loans, and DOE aucti=
oned the loans off in the fall of 2013. Tesla paid off all of its loan in 20=
13, nine years ahead of schedule. </span><br></blockquote><blockquote type=3D=
"cite"><span>Criticisms of ATVM: The unobligated funds remaining for the pro=
gram have been a point of contention in recent appropriations debates. The H=
ouse has voted several times to transfer some of the unused appropriation fo=
r the ATVM subsidy costs to other purposes. None of these transfers were ena=
cted. Other legislators have sought to expand the program. Two recent federa=
l reports call for rescinding the program=E2=80=99s unobligated balance: the=
FY2015 budget resolution reported by the House Budget Committee calls for o=
utright rescission, and an April 2014 GAO report recommends Congress conside=
r taking the same step unless DOE can generate new demand for the program.</=
span><br></blockquote><blockquote type=3D"cite"><span>Legislative Strategy: &=
nbsp;&nbsp;Architects of the bipartisan deal put out a hotline request to se=
e if anyone would object to a series of procedural moves that would split Fl=
int aid off the energy bill (S. 2012), attach it to a House bill (H.R. 4470)=
sponsored by Reps. Dan Kildee and Fred Upton, allow voice votes on 30 amend=
ments to the energy bill, and allow roll call votes on eight additional amen=
dments. Michigan Sens. Debbie Stabenow and Gary Peters said Democrats are on=
board, but in order to achieve unanimous consent, Republicans need to sign o=
n. </span><br></blockquote><blockquote type=3D"cite"><span>Will it pass? &nb=
sp;The Flint package and the energy bill amendments would come to a vote onl=
y after the Senate gets unanimous consent to some procedural maneuvers. Lee'=
s hold went unnoticed earlier when GOP presidential candidate Sen. Ted Cruz h=
ad a hold of his own, which he has now lifted. The Senate had hoped to hold v=
otes on Flint and end debate on the energy bill as early as next week. &nbsp=
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&=
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp=
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span><br></blockquote><bl=
ockquote type=3D"cite"><span>What=E2=80=99s Next? &nbsp;&nbsp;Sen. Stabenow,=
a key leader on the bill, predicted that =E2=80=9Cone way or another=E2=80=9D=
the package would be voted on in the Senate this week. &nbsp;And while the H=
ouse hasn't decided what it will do if the Flint bill clears the Senate, Ene=
rgy and Commerce Committee Chairman Fred Upton said it would move quickly.</=
span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquot=
e><blockquote type=3D"cite"><span>The Obama administration, which declared Fl=
int a federal emergency in January freeing up much-needed funds for the dist=
ressed city, has not issued an official stance on the Flint deal. &nbsp;Earl=
y in the year the President also made available to the state of Michigan $80=
million from a revolving fund for infrastructure repair and improvement. &n=
bsp;</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blo=
ckquote><blockquote type=3D"cite"><span>A number of important events are sch=
eduled for the month of March, listed below.</span><br></blockquote><blockqu=
ote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><s=
pan> =E2=80=A2 &nbsp;&nbsp;March 3 -- Flint is supposed to begin its lead se=
rvice line replacement project.</span><br></blockquote><blockquote type=3D"c=
ite"><span></span><br></blockquote><blockquote type=3D"cite"><span> =E2=80=A2=
&nbsp;&nbsp;March 6 -- The 7th Democratic debate will take place in the cit=
y of Flint, MI. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><spa=
n></span><br></blockquote><blockquote type=3D"cite"><span> =E2=80=A2 &nbsp;M=
arch 15 -- &nbsp;House Committee on Oversight and Government Reform will hol=
d its next hearing on the Flint crisis. &nbsp;On schedule is testimony on th=
e Safe Drinking Water Act (SDWA) by various policy professionals.</span><br>=
</blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockq=
uote type=3D"cite"><span> =E2=80=A2 &nbsp;&nbsp;March 17 -- &nbsp;Hearings r=
esume on SDWA oversight, with Michigan Governor Rick Snyder and EPA Administ=
rator Gina McCarthy scheduled to testify.</span><br></blockquote><blockquote=
type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span=
> Upcoming/Recent Updates</span><br></blockquote><blockquote type=3D"cite"><s=
pan></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;=
&nbsp;Wed -- Flint </span><br></blockquote><blockquote type=3D"cite"><span>=E2=
=80=A2 &nbsp;&nbsp;Thurs -- Municipal Finance Caucus</span><br></blockquote>=
<blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;&nbsp;Fri -- Puerto Rico</sp=
an><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote>=
<blockquote type=3D"cite"><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;Budget Irresolu=
tion</span><br></blockquote><blockquote type=3D"cite"><span> &nbsp;=E2=80=A2=
&nbsp;13 D Regs</span><br></blockquote><blockquote type=3D"cite"><span> &nb=
sp;=E2=80=A2 &nbsp;&nbsp;ERI/Housing</span><br></blockquote><blockquote type=
=3D"cite"><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;Intl Tax Reform</span><br></blo=
ckquote><blockquote type=3D"cite"><span> &nbsp;=E2=80=A2 &nbsp;&nbsp;EU/US D=
erivatives Deal</span><br></blockquote><blockquote type=3D"cite"><span> &nbs=
p;=E2=80=A2 &nbsp;&nbsp;Pension Crisis</span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Fl=
int Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br></blockquote>=
<blockquote type=3D"cite"><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</s=
pan><br></blockquote><blockquote type=3D"cite"><span>Bigger than the Budget B=
attle &nbsp;(Feb. 23)</span><br></blockquote><blockquote type=3D"cite"><span=
> Infrastructure Finance Update &nbsp;(Feb. 18) </span><br></blockquote><bloc=
kquote type=3D"cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span=
> <br></blockquote><blockquote type=3D"cite"><span>Below the Radar/Customs Bi=
ll &nbsp;(Feb. 16) </span><br></blockquote><blockquote type=3D"cite"><span>I=
nternational Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote t=
ype=3D"cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquo=
te><blockquote type=3D"cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span=
> <br></blockquote><blockquote type=3D"cite"><span>Tax Talk of the Town &nbsp=
;(Feb. 3)</span><br></blockquote><blockquote type=3D"cite"><span>Defending D=
odd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type=3D"cite"><s=
pan>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><bloc=
kquote type=3D"cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</spa=
n><br></blockquote><blockquote type=3D"cite"><span>Debate Myths Challenged &=
nbsp;(Jan. 25)</span><br></blockquote><blockquote type=3D"cite"><span>Regula=
ting the Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type=3D=
"cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></block=
quote><blockquote type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span=
> <br></blockquote><blockquote type=3D"cite"><span>2016 Tax Agenda on the Hil=
l &nbsp;(Jan. 16)</span><br></blockquote><blockquote type=3D"cite"><span>Gla=
ss-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type=3D=
"cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><b=
lockquote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span=
> <br></blockquote><blockquote type=3D"cite"><span>Sanders' Fin Reg Proposals=
&nbsp;(Jan. 5)</span><br></blockquote><blockquote type=3D"cite"><span>Year-=
End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(D=
ec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote ty=
pe=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><=
blockquote type=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></b=
lockquote><blockquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</span>=
<br></blockquote><blockquote type=3D"cite"><span>Tax Extender Negotiations &=
nbsp;(Dec. 6) </span><br></blockquote><blockquote type=3D"cite"><span>Brown o=
n HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type=3D"cite"><span>=
Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type=3D"=
cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span>Mike &amp; Co. </span><br></=
blockquote><blockquote type=3D"cite"><span>This has been a busy week in Wash=
ington especially on the tax front, with more to follow. &nbsp;We've already=
seen a number of hearings and developments on the most salient current tax b=
ills and related proposals in the last two days, which are &nbsp;itemized an=
d vetted for viability below.</span><br></blockquote><blockquote type=3D"cit=
e"><span></span><br></blockquote><blockquote type=3D"cite"><span>Tomorrow, a=
n assessment of which of these, as well as "must-pass" tax items such as the=
expiring extenders, will make it to Obama's desk by year-end and a review o=
f Brookings' panel discussion, "Tax policy in 2016: What's new and what's ne=
xt," with Ways and Means Chair Kevin Brady and Senate Finance ranking member=
Ron Wyden. </span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span>Best,</span><br></blockquote=
> <blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Dana</span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span>_______________________=
_______________</span><br></blockquote><blockquote type=3D"cite"><span></spa=
n><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 International T=
ax Reform --</span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span>Probably the most likely tax=
legislation to pass in 2016, even though it's still called unlikely by key p=
olicymakers. &nbsp;The two parties will have difficulty coming to an agreeme=
nt on first what to do and then how to do it. &nbsp;Narrower legislation is m=
ore likely to succeed than comprehensive reform. &nbsp;Most viable bills in t=
his area:</span><br></blockquote><blockquote type=3D"cite"><span></span><br>=
</blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Earnings Stripp=
ing -- &nbsp;On the eve of today=E2=80=99s Ways and Means hearing regarding i=
nternational tax reform, &nbsp;ranking member Chris Van Hollen and senior me=
mber Sander Levin offered bills to constrain the practice whereby foreign pa=
rent companies extend large loans to their newly acquired U.S. partners and t=
ake advantage of the tax-deductible status of interest payment arrangement. &=
nbsp;</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bl=
ockquote><blockquote type=3D"cite"><span>=E2=80=A2. Exit Tax Bills -- &nbsp;=
Bills seeking to reduce corporate inversions by making them too expensive to=
make business sense are likely to be introduced before next recess. </span>=
<br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><bl=
ockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Repatriation -- &nbsp;Ryan and S=
chumer have talked up the idea of introducing legislation to repatriate U.S.=
multinational profits that are held abroad. &nbsp;A compromise will have to=
be struck between Democrats seeking reduced tax levels for this purpose and=
Republicans who cite moral hazard. &nbsp;The Obama budget for FY2017 includ=
es a proposal to allow overseas profits to come home at a special 14 percent=
trate, and all overseas profits thereafter be taxed at 19 percent. </span><=
br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blo=
ckquote type=3D"cite"><span>=E2=80=A2 &nbsp;Broader Corporate Tax Reform &nb=
sp;-- &nbsp;&nbsp;</span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><span>Any successful across t=
he board corporate tax reform would almost have to lower the nominal corpora=
te tax rate of 35 percent. &nbsp;-- the highest in the world. &nbsp;Republic=
ans are adamant that the high rate yields corporate inversions. &nbsp;Ways a=
nd Means chair Brady has pointed to the corporate rate repeatedly as a sign t=
hat the U.S. has a =E2=80=9Cbroken tax code that discourages investment and g=
rowth.=E2=80=9D </span><br></blockquote><blockquote type=3D"cite"><span></sp=
an><br></blockquote><blockquote type=3D"cite"><span>Brady has not yet releas=
ed his own reform bill, but an op-ed of his published this morning gives an i=
ndication of what it will include: &nbsp;=E2=80=9CWe must address the real r=
oot of the problem =E2=80=93 our broken tax code that discourages investment=
and growth =E2=80=A6 Our sky-high 35 percent corporate tax rate bears much o=
f the blame =E2=80=A6 We cannot allow American taxpayers to foot the bill fo=
r tax revenue grabs in Europe and elsewhere.=E2=80=9D</span><br></blockquote=
> <blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Provisions to look for: a lower overall corporate tax rate, lan=
guage to address European investigations on U.S. businesses dodging taxes ab=
road. &nbsp;The bill likely won=E2=80=99t include language restricting inver=
sions. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span>Senate =
Finance chair Hatch has suggested writing legislation to make dividends tax d=
eductible for corporations, eliminating the so-called =E2=80=9Cdouble taxati=
on=E2=80=9D of hitting corporate earnings as well as dividend incomes from i=
nvestors. &nbsp;The proposal faces long odds. </span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbs=
p;Earned-Income Tax Credit (EITC) -- </span><br></blockquote><blockquote typ=
e=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>One=
tax provisions in the Obama FY17 budget that has been muted if not mooted t=
his week is his proposal to expand the EITC for childless workers and create=
a $500 =E2=80=9Csecond earner=E2=80=9D tax credit. &nbsp;The cost would be $=
150 billion over ten years. </span><br></blockquote><blockquote type=3D"cite=
"><span></span><br></blockquote><blockquote type=3D"cite"><span>During his S=
OTU, Obama expressed his desire to work with Speaker Ryan on the issue: &nbs=
p;=E2=80=9CI also know Speaker Ryan has talked about his interest in tacklin=
g poverty. America is about giving everybody willing to work a chance, a han=
d up. And I=E2=80=99d welcome a serious discussion about strategies we can a=
ll support, like expanding tax cuts for low-income workers who don't have ch=
ildren.=E2=80=9D</span><br></blockquote><blockquote type=3D"cite"><span></sp=
an><br></blockquote><blockquote type=3D"cite"><span>The credit is a long-sta=
nding darling of both progressives and the GOP establishment. Ryan and Presi=
dent Obama support extending it to childless workers. &nbsp;But they face re=
sistance from not just the hard right but from Sen. Hatch, who say it=E2=80=99=
s not =E2=80=9Cnecessary=E2=80=9D to expand the break. </span><br></blockquo=
te><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></sp=
an><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Derivati=
ves Agreement w. EU</span><br></blockquote><blockquote type=3D"cite"><span>=E2=
=80=A2 &nbsp;Budget (Ir)Resolution</span><br></blockquote><blockquote type=3D=
"cite"><span>=E2=80=A2 &nbsp;Puerto Rico</span><br></blockquote><blockquote t=
ype=3D"cite"><span>=E2=80=A2 &nbsp;Econ. Revitalization/Housing</span><br></=
blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquo=
te type=3D"cite"><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><=
/blockquote><blockquote type=3D"cite"><span>Bigger than the Budget Battle &n=
bsp;(Feb. 23)</span><br></blockquote><blockquote type=3D"cite"><span>Infrast=
ructure Finance Update &nbsp;(Feb. 18) </span><br></blockquote><blockquote t=
ype=3D"cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br></b=
lockquote><blockquote type=3D"cite"><span>Below the Radar/Customs Bill &nbsp=
;(Feb. 16) </span><br></blockquote><blockquote type=3D"cite"><span>Internati=
onal Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type=3D"c=
ite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><bloc=
kquote type=3D"cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></b=
lockquote><blockquote type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb. 3=
)</span><br></blockquote><blockquote type=3D"cite"><span>Defending Dodd-Fran=
k &nbsp;(Feb. 2)</span><br></blockquote><blockquote type=3D"cite"><span>Fisc=
al Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote t=
ype=3D"cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></=
blockquote><blockquote type=3D"cite"><span>Debate Myths Challenged &nbsp;(Ja=
n. 25)</span><br></blockquote><blockquote type=3D"cite"><span>Regulating the=
Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type=3D"cite"=
> <span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote>=
<blockquote type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><=
/blockquote><blockquote type=3D"cite"><span>2016 Tax Agenda on the Hill &nbs=
p;(Jan. 16)</span><br></blockquote><blockquote type=3D"cite"><span>Glass-Ste=
agall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type=3D"cit=
e"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><block=
quote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br=
> </blockquote><blockquote type=3D"cite"><span>Sanders' Fin Reg Proposals &nb=
sp;(Jan. 5)</span><br></blockquote><blockquote type=3D"cite"><span>Year-End R=
eview: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 2=
9) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type=3D=
"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><block=
quote type=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockq=
uote><blockquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br><=
/blockquote><blockquote type=3D"cite"><span>Tax Extender Negotiations &nbsp;=
(Dec. 6) </span><br></blockquote><blockquote type=3D"cite"><span>Brown on HFT=
&nbsp;(Dec. 4)</span><br></blockquote><blockquote type=3D"cite"><span>Shelb=
y 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type=3D"cite"=
> <span></span><br></blockquote><blockquote type=3D"cite"><span>----</span><b=
r></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><bloc=
kquote type=3D"cite"><span>Mike and Co. --</span><br></blockquote><blockquot=
e type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><spa=
n>The soap opera that is the federal budget making process saw sone minor pr=
ima donna pratfalls this week. &nbsp;Nothing remotely on the scale of blocki=
ng the confirmation of a Supreme Justice. &nbsp;But as Senate Budget's ranki=
ng member Sen. Cardin warned at a breakfast today, you can forget regular or=
der on the budget -- after the President submits a nomination, all comity in=
the Senate will be gone until Election Day. </span><br></blockquote><blockq=
uote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><=
span>Details and the latest below. &nbsp;Taxes tomorrow (be still your heart=
, right?). </span><br></blockquote><blockquote type=3D"cite"><span></span><b=
r></blockquote><blockquote type=3D"cite"><span>Best,</span><br></blockquote>=
<blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"=
cite"><span>Dana </span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span>Story in the Senate</sp=
an><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote>=
<blockquote type=3D"cite"><span>At the same DSCC &nbsp;breakfast one month a=
go, Sen. Merkley announced that, to his surprise, Senate Budget Chair Mike E=
nzi was going to put out a manager's mark for an FY17 budget resolution for C=
ommittee markup, for February. &nbsp;Today, Enzi withdrew his markup plans, w=
ithout announcing a reschedule date.</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>To a=
dd to the growing problems within the GOP, the party, led by Senator Mitch M=
cConnell, has declared all-out war on Obama=E2=80=99s impending Supreme Cour=
t nomination -- an "nomination abomination" -- making it even more difficult=
to predict how these budget deliberations will end. </span><br></blockquote=
> <blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Histrionics of the House </span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Ev=
en before Obama released his FY2017 budget proposal earlier this month, Hous=
e Republicans made it a point to emphasize that it was DOA. &nbsp;Now, GOP i=
s running into some dead ends of its own. </span><br></blockquote><blockquot=
e type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><spa=
n>Speaker Ryan announced early on that he intended to pass the budget throug=
h regular order this year -- a process that hasn=E2=80=99t been successfully=
completed in a generation. &nbsp;Due to internal dicisions and outside pres=
sures, House Republicans have changed their tune. &nbsp;</span><br></blockqu=
ote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=
=3D"cite"><span>Yesterday, House Budget announced plans for a proposal next m=
onth to stick with the spending levels set by last fall=E2=80=99s deal with t=
he White House while also giving members the chance to vote on other bills t=
hat would slash government spending. The compromise is meant to appease hard=
-right GOP members who vehemently opposed the Obama-Boehner budget agreement=
. &nbsp;Per Ryan's office: =E2=80=9CThis proposal enjoys the overwhelming su=
pport of the committee members, and the chairman looks forward to sharing it=
with the broader Conference as we continue moving this process forward.=E2=80=
=9D</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bloc=
kquote><blockquote type=3D"cite"><span>The conservative Freedom Caucus so fa=
r has supported Speaker Ryan=E2=80=99s overtures for cooperation on the budg=
et. &nbsp;But the GOP's hard-right wing may not remain so understanding of t=
he Speaker=E2=80=99s position, especially if their credentials are called in=
to question by outside groups with sway over their base of support. &nbsp;&n=
bsp;Heritage Action said Monday that the group would oppose any budget bluep=
rint that sticks to the Obama-Boehner deal, which increases spending by abou=
t $30 billion.</span><br></blockquote><blockquote type=3D"cite"><span></span=
> <br></blockquote><blockquote type=3D"cite"><span>Going Forward </span><br><=
/blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockqu=
ote type=3D"cite"><span>It won't be an easy road ahead on the budget. &nbsp;=
&nbsp;The conservative caucus has several dozen members, which gives it the p=
ower to torpedo any budget proposal that lacks at least some Democratic supp=
ort. &nbsp;If it decides to back the new proposal put forth by Chair Tom Pri=
ce of House Budget, it would be likely for GOP leaders to be able to move fo=
rward. &nbsp;Some members have voiced their willingness to cooperate, but th=
e pull of outside right-wing groups may prove to be too strong.</span><br></=
blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquo=
te type=3D"cite"><span>Meanwhile, Minority Whip Steny Hoyer said today that a=
ny Republican budget strategy that strays from the Obama-Boehner deal would b=
e opposed by House Democrats. </span><br></blockquote><blockquote type=3D"ci=
te"><span></span><br></blockquote><blockquote type=3D"cite"><span>The House B=
udget plan is to submit the proposal honoring the spending limits agreed to l=
ast year, while allowing the hard-right GOP wing to vote on other bills whic=
h would slash spending, mollifying the more hawkish members. &nbsp;</span><b=
r></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><bloc=
kquote type=3D"cite"><span>Dearth of Legislative Days</span><br></blockquote=
> <blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Lengthening the odds against Ryan, the House Budget is now work=
ing on a delayed schedule. &nbsp;In mid-January, the House Budget Committee a=
nnounced that it would be releasing its markup of the White House budget pro=
posal early -=E2=80=93 on February 25. However, that has also changed. Yeste=
rday, The Committee announced that it was now delaying its markup till somet=
ime in March. &nbsp;The change is curious for a few reasons. &nbsp;It raises=
the question of why the House Budget Committee said it would have the marku=
p done so early in the first place. Moreover, it goes against the House Repu=
blicans message of =E2=80=9Cgetting things done=E2=80=9D during this Congres=
s. </span><br></blockquote><blockquote type=3D"cite"><span></span><br></bloc=
kquote><blockquote type=3D"cite"><span>Democrats are jumping on this delay a=
lready. &nbsp;Nancy Pelosi said: =E2=80=9CYet again, it=E2=80=99s the Speake=
r=E2=80=99s own broken promises =E2=80=93 and his own rhetoric =E2=80=93 tha=
t are coming back to bite him. &nbsp;Because while the Speaker pledged an en=
d to dysfunctional House-Republican leadership, all the American people are s=
eeing is more of the same.=E2=80=9D &nbsp;</span><br></blockquote><blockquot=
e type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><spa=
n>One thing is looks increasingly likely: that the nomination will exert a t=
idal force on at least the budget deliberations and everything else, through=
the election. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span=
> </span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockq=
uote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote typ=
e=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span>Upcoming/Recent Updates=
</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockqu=
ote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Tax Talk</span><br></blo=
ckquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Derivatives Agreemen=
t w. EU</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nb=
sp;Puerto Rico</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=
=A2 &nbsp;Econ. Revitalization/Housing</span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>In=
frastructure Finance Update &nbsp;(Feb. 18) </span><br></blockquote><blockqu=
ote type=3D"cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><b=
r></blockquote><blockquote type=3D"cite"><span>Below the Radar/Customs Bill &=
nbsp;(Feb. 16) </span><br></blockquote><blockquote type=3D"cite"><span>Inter=
national Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type=3D=
"cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><bl=
ockquote type=3D"cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><=
/blockquote><blockquote type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb.=
3)</span><br></blockquote><blockquote type=3D"cite"><span>Defending Dodd-Fra=
nk &nbsp;(Feb. 2)</span><br></blockquote><blockquote type=3D"cite"><span>Fis=
cal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote t=
ype=3D"cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></=
blockquote><blockquote type=3D"cite"><span>Debate Myths Challenged &nbsp;(Ja=
n. 25)</span><br></blockquote><blockquote type=3D"cite"><span>Regulating the=
Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type=3D"cite"=
> <span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote>=
<blockquote type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><=
/blockquote><blockquote type=3D"cite"><span>2016 Tax Agenda on the Hill &nbs=
p;(Jan. 16)</span><br></blockquote><blockquote type=3D"cite"><span>Glass-Ste=
agall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type=3D"cit=
e"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><block=
quote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br=
> </blockquote><blockquote type=3D"cite"><span>Sanders' Fin Reg Proposals &nb=
sp;(Jan. 5)</span><br></blockquote><blockquote type=3D"cite"><span>Year-End R=
eview: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 2=
9) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type=3D=
"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><block=
quote type=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockq=
uote><blockquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br><=
/blockquote><blockquote type=3D"cite"><span>Tax Extender Negotiations &nbsp;=
(Dec. 6) </span><br></blockquote><blockquote type=3D"cite"><span>Brown on HFT=
&nbsp;(Dec. 4)</span><br></blockquote><blockquote type=3D"cite"><span>Shelb=
y 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type=3D"cite"=
> <span></span><br></blockquote><blockquote type=3D"cite"><span></span><br></=
blockquote><blockquote type=3D"cite"><span>Mike &amp; Co. --</span><br></blo=
ckquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote t=
ype=3D"cite"><span>One week ago, the House passed a bill that could alter an=
d perhaps ease the way state and local infrastructure is financed in the cap=
ital markets, when HR.2209, a bill to "require the appropriate Federal banki=
ng agencies to treat certain municipal obligations as level 2A liquid assets=
, and for other purposes" was adopted by the House with a voice vote. &nbsp;=
</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockqu=
ote><blockquote type=3D"cite"><span>Thought the bill has flown below the med=
ia radar, it is significant. &nbsp;Municipal obligations, including bonds, a=
re at the heart of infrastructure investment in America. &nbsp;And infrastru=
cture investment has been a large focus of this primary. &nbsp;Both Democrat=
ic candidates have proposed multi-hundred billion dollar infrastructure inve=
stment proposals.</span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span>Details below...</span>=
<br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><bl=
ockquote type=3D"cite"><span>Best,</span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Dana</s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span>Infrastructure is mostly funded at the stat=
e or local level through the use of municipal bonds. &nbsp;Between 2003 and 2=
012, counties, states, and other localities invested $3.2 trillion in infras=
tructure through long-term tax-exempt municipal bonds, 2.5 times more than t=
he federal investment. &nbsp;</span><br></blockquote><blockquote type=3D"cit=
e"><span></span><br></blockquote><blockquote type=3D"cite"><span>The Bill</s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span>HR 2209 requires federal banking regulators=
to include municipal bonds under the Liquidity Coverage Ratio (LCR). &nbsp;=
The LCR is designed to ensure that financial institutions have the necessary=
assets available to handle a liquidity disruption. &nbsp;Local officials ha=
ve said that if the new rules aren=E2=80=99t changed, it will saddle them wi=
th higher borrowing costs by eliminating incentives banks have to purchase t=
heir bonds. Without bonds, these governments will lose a significant source o=
f their funding. &nbsp;Per Indiana State Treasurer Kelly Mitchell: =E2=80=9C=
This bill helps ensure cash-strapped school districts and municipalities wil=
l continue to have access to bonds to finance projects they think are best f=
or their communities.=E2=80=9D </span><br></blockquote><blockquote type=3D"c=
ite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Rep. Luke=
Messer, an Indiana Republican who wrote the bill: &nbsp;=E2=80=9CPut simply=
, our bill requires the federal government to recognize the obvious, that ou=
r municipal bonds are some of the safest investments in the world and that w=
e shouldn=E2=80=99t have rules that give preferential treatment to corporate=
bonds or other countries=E2=80=99 bonds over our own.=E2=80=9D </span><br><=
/blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockqu=
ote type=3D"cite"><span>After passing the House with unanimous bipartisan su=
pport, a companion bill is expected to be introduced in the Senate this year=
. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span></span><br><=
/blockquote><blockquote type=3D"cite"><span>Municipal Bond Issue</span><br><=
/blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockqu=
ote type=3D"cite"><span>After the crisis of 2008, federal regulators adopted=
international banking standards that require banks to have enough "High-Qua=
lity Liquid Assets" to cover their cash outflows for 30 days in case of a fu=
ture financial meltdown. &nbsp;Now, municipal bonds are not considered liqui=
d assets and therefore cannot be included under the &nbsp;LCR. &nbsp;&nbsp;A=
s a result, financial institutions have been discouraged from holding munici=
pal debt, which means that cash strapped municipalities and school districts=
may eventually be forced to reduce or even stop work on projects &nbsp;fina=
nced with municipal bonds. </span><br></blockquote><blockquote type=3D"cite"=
> <span></span><br></blockquote><blockquote type=3D"cite"><span>Infrastructur=
e Financing -- Alternative Financing</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=
=A2 &nbsp;&nbsp;Tax-exempt bonds: &nbsp;Exemption from federal taxes and man=
y state and local taxes is possible through the use of municipal bonds. &nbs=
p;&nbsp;In recent years, with the increasing use of PPPs, barriers to this t=
ax exemption have arisen. &nbsp;Treasury has reviewed relevant tax rules and=
based on their findings and have put forth a proposal for an expanded and p=
ermanent America Fast Forward Bond Program as an alternative to tax-exempt b=
onds. &nbsp;Based on the successful Build America Bond program, =E2=80=9Cwou=
ld provide an efficient borrowing subsidy to state and local governments whi=
le appealing to a broader investor base than traditional tax-exempt bonds [a=
nd] would cover a broad range of projects for which tax-exempt bonds can be u=
sed.=E2=80=9D </span><br></blockquote><blockquote type=3D"cite"><span></span=
> <br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Obama=E2=80=
=99s budget proposal: &nbsp;Obama has also put forth a plan to strengthen lo=
cal and state government infrastructure projects. His plan relies on a new Fe=
deral credit program to support public-private partnerships within the Depar=
tment of the Treasury. It will provide direct loans to US infrastructure pro=
jects developed through PPPs. The Obama Administration believes that private=
investment is crucial for infrastructure development moving forward, so the=
re should be more flexibility in regards to what PPP is subject to. In addit=
ion to that, President Obama has proposed the taxable, direct-pay America Fa=
st Forward bond program to help finance infrastructure. &nbsp;</span><br></b=
lockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquot=
e type=3D"cite"><span>State Infrastructure Banks</span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span>Local governments receive financing in a number of ways. &nbsp;Tradi=
tional sources such as tax revenues have been dwindling and local authoritie=
s have been relying on federal government loan programs, public-private part=
nerships, and State Revolving Funds (SRFs). &nbsp;State Infrastructure Banks=
(SIBs) are a subset of SRFs -- the funds act like a bank, because they don=E2=
=80=99t own the infrastructure asset, but act as a lender or guarantor to th=
e project sponsor. Per Brookings: &nbsp;=E2=80=9CSRFs rely on principal repa=
yments, bonds, interest and fees to re-capitalize and replenish the fund as a=
perpetual source of debt financing.=E2=80=9D</span><br></blockquote><blockq=
uote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><=
span>SIBs generate more investment per dollar than traditional federal and s=
tate grant programs. &nbsp;They only exist in 33 states and 10 of those SIBs=
are currently inactive. A large problem may be compliance with federal regu=
lations. &nbsp;Brookings again: </span><br></blockquote><blockquote type=3D"=
cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=9C=
We found that many SIB officials cite compliance with federal regulations as=
slowing down the investment process either because of environmental and con=
tractual requirements or due to the lack of flexibility in projects that are=
not Title 23 or 49 eligible. For states with smaller projects, this may be p=
rohibitively costly compared to the advantage of using the low-cost SIB fina=
ncing.=E2=80=9D </span><br></blockquote><blockquote type=3D"cite"><span></sp=
an><br></blockquote><blockquote type=3D"cite"><span>Just being called a bank=
subjects SIBs to regulations that commercial banks are subject to. &nbsp;SI=
Bs are non-for-profit organizations with a goal of increasing infrastructure=
investment, so they don=E2=80=99t quite fit into the category of the averag=
e bank. &nbsp;SIBs may be more successful outside this classification. &nbsp=
;</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockq=
uote><blockquote type=3D"cite"><span>For or Against Dodd-Frank</span><br></b=
lockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquot=
e type=3D"cite"><span>Before Dodd-Frank, particularly in the case of relativ=
ely small municipalities, many underwriters forged long-term relationships w=
ith municipalities and would provide financial advice before and after a bon=
d issuance. &nbsp;With Dodd-Frank, that relationship changed, with a new =E2=
=80=9Cmunicipal adviser=E2=80=9D category that must register with the SEC an=
d be regulated by the Municipal Securities Rulemaking Board (MSR). &nbsp;Now=
, it is widely illegal to provide advice to governmental entities concerning=
the issuance of municipal bonds, the use of financial derivatives, and the i=
nvestment of the proceeds of a bond issue to, or on behalf, of a municipal e=
ntity or an obligated person unless the adviser is registered with the SEC. <=
/span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquo=
te><blockquote type=3D"cite"><span>HR 2209 appears to address a problem with=
in Dodd-Frank, but it is unclear if it vitiates the law materially. &nbsp;At=
face value, it appears to be more a technical fix. Dodd-Frank expanded regu=
lations for banking institutions, but the entities that fund state and local=
governments are far unlike the TBTF institutions that Dodd-Frank was meant t=
o regulate. &nbsp;&nbsp;</span><br></blockquote><blockquote type=3D"cite"><s=
pan></span><br></blockquote><blockquote type=3D"cite"><span>Groups like Amer=
icans for Financial Reform oppose HR 2209: =E2=80=9CWhile we sympathize with=
the belief that municipal debt was incorrectly treated under the initial LC=
R rule, we believe that it is inappropriate to classify such debt as a Level=
2A asset. AFR therefore opposes this bill unless a more appropriate liquidi=
ty classification is used.=E2=80=9D &nbsp;AFR has previously said it support=
s treating municipal bonds as more liquid and does not approve the type of c=
lassification used in HR 2209, because it goes too far in its treatment of m=
unicipal debt as level 2A liquid assets and specifically with micromanaging r=
egulators with this kind of detail and they prefer a Level 2B classification=
. </span><br></blockquote><blockquote type=3D"cite"><span></span><br></block=
quote><blockquote type=3D"cite"><span>The bill could provide relief for smal=
ler institutions, so that they can fund infrastructure investment more easil=
y. In terms of Dodd-Frank, it is yet to be decided if it is simply a necessa=
ry tweak or a criticism. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&=
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span><br></blockquote><bloc=
kquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"=
> <span>Looking Ahead</span><br></blockquote><blockquote type=3D"cite"><span>=
</span><br></blockquote><blockquote type=3D"cite"><span>HR 2209 could end up=
being an important issue in the national infrastructure discussion. &nbsp;I=
t brings up questions about how far a state or local government can go befor=
e its activities begin to resemble an actual bank. &nbsp;With the growth of P=
PPs, the private sector is being even more integrated into the process =E2=80=
=93 should those companies be given tax exemptions, as well? </span><br></bl=
ockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote=
type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span=
> </span><br></blockquote><blockquote type=3D"cite"><span>Upcoming/Recent Upd=
ates</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blo=
ckquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Derivatives Agreemen=
t w. EU</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nb=
sp;Budget (Ir)Resolution</span><br></blockquote><blockquote type=3D"cite"><s=
pan>=E2=80=A2 &nbsp;Puerto Rico</span><br></blockquote><blockquote type=3D"c=
ite"><span>=E2=80=A2 &nbsp;Econ. Revitalization/Housing</span><br></blockquo=
te><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br></bloc=
kquote><blockquote type=3D"cite"><span>Does DFA Fail on Too Big to Fail? (Fe=
b. 17)</span><br></blockquote><blockquote type=3D"cite"><span>Below the Rada=
r/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquote type=3D"c=
ite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote><=
blockquote type=3D"cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><b=
r></blockquote><blockquote type=3D"cite"><span>Obama's FY17 Budget &nbsp;(Fe=
b. 9) </span><br></blockquote><blockquote type=3D"cite"><span>Tax Talk of th=
e Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type=3D"cite"><span=
> Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type=
=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></bloc=
kquote><blockquote type=3D"cite"><span>The Fed Holds Rates, for Now &nbsp;(J=
an. 28)</span><br></blockquote><blockquote type=3D"cite"><span>Debate Myths C=
hallenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote type=3D"cite"><=
span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote><block=
quote type=3D"cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</spa=
n><br></blockquote><blockquote type=3D"cite"><span>HRC's Tax Policy &nbsp;(J=
an. 17)</span><br></blockquote><blockquote type=3D"cite"><span>2016 Tax Agen=
da on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquote type=3D"ci=
te"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br>=
</blockquote><blockquote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF=
(Jan. 7)</span><br></blockquote><blockquote type=3D"cite"><span>Sanders' Fi=
n Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquote type=3D"ci=
te"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin=
. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote=
> <blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br=
> </blockquote><blockquote type=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10=
)</span><br></blockquote><blockquote type=3D"cite"><span>Customs Bill &nbsp;=
(Dec. 8)</span><br></blockquote><blockquote type=3D"cite"><span>Tax Extender=
Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote type=3D"cit=
e"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type=
=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span>----</span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blo=
ckquote type=3D"cite"><span>Mike &amp; Co. &nbsp;--</span><br></blockquote><=
blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"c=
ite"><span>The newly-installed the Minneapolis Federal Reserve Bank and form=
er Special Investigator overseeing the TARP program came to town yesterday a=
dvocating drastic action to head off a financial sector systemic risk crisis=
, calling for the nation's biggest banks to be broken up. </span><br></block=
quote><blockquote type=3D"cite"><span>His speech, delivered at Brookings, go=
t noticed, with lengthy coverage in the NYT, WSJ, and WaPo. &nbsp;And perhap=
s with reason -- the TBTF (too big to fail) issue has dogged Congress and th=
e administration for years and is one of the central ones in the Democratic p=
residential campaign this far. </span><br></blockquote><blockquote type=3D"c=
ite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Or maybe i=
t was just a slow news day. &nbsp;You decide...</span><br></blockquote><bloc=
kquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"=
> <span>Best, </span><br></blockquote><blockquote type=3D"cite"><span></span>=
<br></blockquote><blockquote type=3D"cite"><span>Dana</span><br></blockquote=
> <blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></span>=
<br></blockquote><blockquote type=3D"cite"><span>A Peculiar Package of Propo=
sals</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blo=
ckquote><blockquote type=3D"cite"><span>Kashkari argued in the alternative t=
hat Dodd-Frank needs to be used and/or needs to be reformed. &nbsp;He says t=
he law as written does not solve the TBTF problem. &nbsp;He also wants regul=
ators to use the yet-untried tools at their disposal under the law. &nbsp;&n=
bsp;=E2=80=9CWhile significant progress has been made to strengthen our fina=
ncial system, I believe the [Dodd-Frank] Act did not go far enough." &nbsp;H=
e then laid out three ideas meant to end TBTF once and for all. &nbsp;</span=
> <br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><b=
lockquote type=3D"cite"><span>=E2=80=A2 &nbsp;break up large banks into smal=
ler, less connected, less important entities;</span><br></blockquote><blockq=
uote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><=
span>=E2=80=A2 &nbsp;turn what remains of the large banks into public utilit=
ies by forcing them to hold so much capital that they can=E2=80=99t fail; an=
d</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockq=
uote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;tax leverage throughout=
the financial system "to reduce systemic risks wherever they lie."</span><b=
r></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><bloc=
kquote type=3D"cite"><span>=E2=80=A2 &nbsp;Break up the Banks</span><br></bl=
ockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote=
type=3D"cite"><span>=46rom the perspective of current laws, breaking up big=
banks is already a policy avenue available to regulators. &nbsp;The Federal=
Reserve, through the Financial Stability Oversight Council, can elect to ta=
ke a number of actions to deal with banks that it feels are both systemicall=
y important and organized in an unstable way. &nbsp;Section 121 of the Dodd-=
Frank Act gives the Board of Governors these powers. &nbsp;</span><br></bloc=
kquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote t=
ype=3D"cite"><span>So this first proposal =E2=80=93 break up big banks - has=
been covered here before but just for the sake of argument... which banks n=
eed to be broken up most urgently? &nbsp;Few commentators believe there is a=
n imminent threat demanding action. &nbsp;</span><br></blockquote><blockquot=
e type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><spa=
n>Unsurprisingly, the Fed doesn=E2=80=99t believe that banks are so hopeless=
that they need to be dissolved. &nbsp;That doesn=E2=80=99t mean it=E2=80=99=
s not a possibility under current legislation, however.</span><br></blockquo=
te><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D=
"cite"><span>=E2=80=A2 &nbsp;&nbsp;Make Banks =E2=80=9CUtilities=E2=80=9D</s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span>The second proposal is to push capital requ=
irements for banks so high that they =E2=80=9Cessentially turn into public u=
tilities.=E2=80=9D &nbsp;Kashkari never explains how exactly high capital re=
serves turn banks into utilities, but that=E2=80=99s for another time. &nbsp=
;</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockq=
uote><blockquote type=3D"cite"><span>He is voicing his support for one of th=
e oldest forms of banking regulations that we still use and use far more now=
in the Dodd-Frank era =E2=80=93 he wants banks to hold more capital. &nbsp;=
Supporters of the law may be heartened by his full-throated endorsement of t=
he law on this score. </span><br></blockquote><blockquote type=3D"cite"><spa=
n></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;&n=
bsp;Cribbing from Clinton?</span><br></blockquote><blockquote type=3D"cite">=
<span></span><br></blockquote><blockquote type=3D"cite"><span>The third prop=
osal was just about lifted out of Secretary Clinton=E2=80=99s plan to regula=
te Wall Street =E2=80=93- though the reporting on the speech doesn=E2=80=99t=
much mention it much. &nbsp;It is reasonable both from a policy and a polit=
ical perspective. But he doesn't provide further details about his proposal a=
fter first outlining it.</span><br></blockquote><blockquote type=3D"cite"><s=
pan></span><br></blockquote><blockquote type=3D"cite"><span>Kashkari contra Y=
ellen</span><br></blockquote><blockquote type=3D"cite"><span></span><br></bl=
ockquote><blockquote type=3D"cite"><span>Fed Chair Yellen has been an outspo=
ken proponent of existing banking regulations, making it known that while th=
e job of regulators is not done yet. we=E2=80=99re in a much better situatio=
n now than we were before DFA. &nbsp;During her testimony before House Finan=
cial Services, Yellen fielded a question about why she had not yet broken up=
big banks, saying: =E2=80=9C=E2=80=A6we [at the Fed]vare using our powers t=
o make sure that a systemically important institution could fail, and it wou=
ld not be -- have systemic consequences for the country. We're doing that in=
a whole variety of ways.=E2=80=9D &nbsp;</span><br></blockquote><blockquote=
type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span=
> The ways Yellen is referring to include enforcing Liquidity Coverage Ratios=
, capital reserve requirements, and a rule passed last November forcing the b=
iggest banks to issue long-term debt equal to 18 percent of risk-weighted as=
sets. &nbsp;</span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span>Evidently it's not enough. &=
nbsp;But it is nonetheless uncommon for a newly minted Federal Reserve Bank P=
resident to taking to task the Chair of the Federal Reserve=E2=80=99s Board o=
f Governors.</span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blo=
ckquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite=
"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type=3D"c=
ite"><span></span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2=
&nbsp;Municipal Bond Rule</span><br></blockquote><blockquote type=3D"cite">=
<span>=E2=80=A2 &nbsp;Budget (Ir)Resolution</span><br></blockquote><blockquo=
te type=3D"cite"><span>=E2=80=A2 &nbsp;Puerto Rico</span><br></blockquote><b=
lockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Derivatives Agreement w. EU</s=
pan><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Econ. R=
evitalization/Housing</span><br></blockquote><blockquote type=3D"cite"><span=
> </span><br></blockquote><blockquote type=3D"cite"><span>Does DFA Fail on To=
o Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type=3D"cite"><s=
pan>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><bl=
ockquote type=3D"cite"><span>International Tax Status &nbsp;(Feb. 11)</span>=
<br></blockquote><blockquote type=3D"cite"><span>The Fed Holds Steady &nbsp;=
(Feb. 10)</span><br></blockquote><blockquote type=3D"cite"><span>Obama's FY1=
7 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type=3D"cite"><s=
pan>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote t=
ype=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquot=
e><blockquote type=3D"cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28=
)</span><br></blockquote><blockquote type=3D"cite"><span>The Fed Holds Rates=
, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type=3D"cite"><=
span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockqu=
ote type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br>=
</blockquote><blockquote type=3D"cite"><span>Sanders' Tax/Healthcare Policy &=
nbsp;(Jan 20)</span><br></blockquote><blockquote type=3D"cite"><span>HRC's T=
ax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type=3D"cite"><=
span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br=
> </blockquote><blockquote type=3D"cite"><span>2016 Tax Policy Issues &nbsp;(=
Jan. 8)</span><br></blockquote><blockquote type=3D"cite"><span>Sanders Propo=
sals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type=3D"cite"=
> <span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Ye=
ar-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</spa=
n><br></blockquote><blockquote type=3D"cite"><span>Omnibus Situation &nbsp;(=
Dec. 14)</span><br></blockquote><blockquote type=3D"cite"><span>FY 2016 Omni=
bus Talks (Dec. 10)</span><br></blockquote><blockquote type=3D"cite"><span>C=
ustoms Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type=3D"cite">=
<span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><bloc=
kquote type=3D"cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquot=
e><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br=
> </blockquote><blockquote type=3D"cite"><span></span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span>Mike &amp; Co. &nbsp;--</span><br></blockquote><blockquote type=3D"cit=
e"><span></span><br></blockquote><blockquote type=3D"cite"><span>A national h=
oliday, a snowstorm, and a congressional recess stilled DC yesterday and a q=
uiet week is expected. &nbsp;It gives us a chance to have a look at some dev=
elopments thus far this year that have flown below the radar.</span><br></bl=
ockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote=
type=3D"cite"><span>Today's item is the one bill on its way to the Presiden=
t=E2=80=99s desk -- the Customs bill -- and the caboose attached to it that e=
xtends the internet tax moratorium permanently &nbsp;and may be the bill's i=
mportant title... at least until the TPP comes up on the Senate floor. </spa=
n><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><=
blockquote type=3D"cite"><span>Best,</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Dana=
</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockqu=
ote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>The C=
ustoms Bill: &nbsp;Comity on the Hill</span><br></blockquote><blockquote typ=
e=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>The=
Senate cleared the first overhaul of the Customs and Border Protection (CBP=
) agency in more than a decade in a 75-20 vote last Thursday, sending the bi=
ll to the President and ending months of wrangling over the measure. &nbsp;T=
he Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) retools C=
BP to increase its focus on blocking illegal trade and ensuring that legal t=
rade moves smoothly.</span><br></blockquote><blockquote type=3D"cite"><span>=
</span><br></blockquote><blockquote type=3D"cite"><span>The major facets of t=
his legislation are:</span><br></blockquote><blockquote type=3D"cite"><span>=
</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;new p=
rotections on intellectual property rights</span><br></blockquote><blockquot=
e type=3D"cite"><span>=E2=80=A2 &nbsp;new tools to fight currency manipulati=
on</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2. a perma=
nent extension of the Internet Tax Freedom Act</span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span>Said Senate Finance ranking member Ron Wyden: &nbsp;=E2=80=9CThis bill=
is about coming down hard on the trade cheats who are ripping off American j=
obs, and the truth is past trade policies were often too old, too slow or to=
o weak for our country to fight back."</span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Wy=
den was perhaps the most outspoken Democrat in support of the bill, continui=
ng his role as a strong backer of free trade legislation. &nbsp;He was a key=
factor in getting Trade Promotion Authority legislation passed through Cong=
ress last summer, splitting from some of his colleagues in voicing support f=
or that act.</span><br></blockquote><blockquote type=3D"cite"><span></span><=
br></blockquote><blockquote type=3D"cite"><span>Unusual Coalition</span><br>=
</blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockq=
uote type=3D"cite"><span>27 Democrats, 47 Republicans, and 1 Independent vot=
ed affirmatively. &nbsp;Industry groups including the National Retail Federa=
tion, as well as the U.S. Chamber of Commerce were supportive of the legisla=
tion. &nbsp;National Association of Manufacturers=E2=80=99 president Jay Tim=
mons said =E2=80=9Cif senators want to grow manufacturing in the United Stat=
es, then they should pass this bill immediately.=E2=80=9D</span><br></blockq=
uote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote typ=
e=3D"cite"><span>Notable =E2=80=9CNay=E2=80=9D votes include Sens. Durbin an=
d Reid, who both expressed disappointment that the legislation was a =E2=80=9C=
watered down=E2=80=9D version of a bill previously passed by the Senate. &nb=
sp;=E2=80=9DI like that [Senate] version, and that strong language on curren=
cy manipulation,=E2=80=9D Durbin said =E2=80=93 that language required Comme=
rce to consider =E2=80=9Cundervalued=E2=80=9D currencies to be equivalent to=
countervailable subsidies. &nbsp;=E2=80=9CThe conference report that=E2=80=99=
s back to us now and before the Senate at this moment is a much different bi=
ll."</span><br></blockquote><blockquote type=3D"cite"><span></span><br></blo=
ckquote><blockquote type=3D"cite"><span>Purpose and Provisions</span><br></b=
lockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockquot=
e type=3D"cite"><span>House and Senate negotiators agreed on a final customs=
bill in December. &nbsp;&nbsp;The House passed the measure 256-158 but the l=
egislation stalled in the Senate over a provision added in conference that p=
ermanently extends a moratorium on Internet access taxes.</span><br></blockq=
uote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote typ=
e=3D"cite"><span>That provision is perhaps the most reported on section in t=
he bill =E2=80=93 it=E2=80=99s almost certainly the most popular - it applie=
s to localities, states, and the federal government itself. &nbsp;&nbsp;Sen.=
Lamar Alexander cited it though as explanation for his =E2=80=9Cnay=E2=80=9D=
vote: "the federal government shouldn't be telling the states what their ta=
x structure should be."</span><br></blockquote><blockquote type=3D"cite"><sp=
an></span><br></blockquote><blockquote type=3D"cite"><span>Another important=
provision, known as the ENFORCE Act, would require the CBP to more aggressi=
vely investigate complaints that companies are evading anti-dumping or count=
ervailing duties on imports by mislabeling or disguising the shipments.</spa=
n><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><=
blockquote type=3D"cite"><span>The bill includes a new Trade Enforcement Fun=
d to bring trade cases through the WTO, to investigate the implementation of=
trade requirements by other countries, and to respond to complaints of trad=
e violations. &nbsp;It also creates a nine-member Advisory Committee on Inte=
rnational Exchange Rate Policy, whose members must be comprised of individua=
ls from the private sector who are selected by both chambers of Congress and=
the President (three members each).</span><br></blockquote><blockquote type=
=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span>Curr=
ency Manipulation</span><br></blockquote><blockquote type=3D"cite"><span></s=
pan><br></blockquote><blockquote type=3D"cite"><span>Currency manipulation h=
as been a long-standing concern of American policy-makers and a particularly=
contentious issue in global trade relations; claims that China has been chr=
onically undervaluing its currency have made the news for a number of years.=
&nbsp;Advocates for stricter enforcement of currency manipulation provision=
s claim that undervalued currencies operate similarly to export subsidies =E2=
=80=93 a prohibited practice within the World Trade Organization.</span><br>=
</blockquote><blockquote type=3D"cite"><span></span><br></blockquote><blockq=
uote type=3D"cite"><span>The final bill dropped a Senate provision that woul=
d have required the Commerce Department to treat undervalued currency as an i=
llegal subsidy under U.S. countervailing duty law. &nbsp;This provision woul=
d have opened the door for compensatory tariffs to be levied against goods w=
hich originate from countries which are found to purposely undervalue their c=
urrency in order to boost their exports. The bill does, however, include oth=
er measures that give the Treasury Department new tools to fight currency ma=
nipulation:</span><br></blockquote><blockquote type=3D"cite"><span></span><b=
r></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;creates a spe=
cial fund for the CBP to ensure trading partners follow the rules and to bri=
ng disputes before the WTO</span><br></blockquote><blockquote type=3D"cite">=
<span>=E2=80=A2 &nbsp;increases funding to the National Intellectual Propert=
y Rights Coordination Center</span><br></blockquote><blockquote type=3D"cite=
"><span>=E2=80=A2 &nbsp;establishes the Commercial Customs Operations Adviso=
ry Committee jointly between CBP and Treasury</span><br></blockquote><blockq=
uote type=3D"cite"><span>=E2=80=A2 &nbsp;requires CBP to investigate claims f=
rom other agencies of evasion of anti-dumping or countervailing duties.</spa=
n><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote><=
blockquote type=3D"cite"><span>Relation to TPP</span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span>Sen. Majority Leader McConnell has said that the Senate will not vote o=
n the Trans-Pacific Partnership before the November elections, so it may com=
e as a surprise to see a bill which deals with enforcing trade deals like TP=
P pass both houses of Congress. &nbsp;However this bill=E2=80=99s provisions=
for protecting IP rights, toughening countervailing duties, and tackling cu=
rrency manipulation are a necessary prerequisite for agreements like TPP (or=
the far more nebulous TTIP). &nbsp;The new age of trade agreements &nbsp;wi=
ll deal extensively in issues like intellectual property protection, trade i=
n services, and high-tech product trading; types of commerce which are far m=
ore difficult to regulate compared to the trade of physical goods.</span><br=
> </blockquote><blockquote type=3D"cite"><span></span><br></blockquote><block=
quote type=3D"cite"><span>So, despite the fact that TPP won=E2=80=99t get a v=
ote until after November (and perhaps not in 2016 at all), and may not pass e=
ven then, the protections set forward in the customs bill are necessary to a=
llow American companies to continue to compete in the global marketplace.</s=
pan><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquote=
> <blockquote type=3D"cite"><span>Price of Passage</span><br></blockquote><bl=
ockquote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cit=
e"><span>In order to include the permanent extension of the Internet Tax Fre=
edom Act, McConnell had to promise that a vote would be held this year on th=
e Marketplace Fairness Act. &nbsp;That legislation grants states greater aut=
hority to collect sales taxes from online businesses who sell products withi=
n their borders. &nbsp;While McConnell himself opposes the bill, it was the o=
nly way to get the customs bill (with the tax amendment attached) unstuck.</=
span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquot=
e><blockquote type=3D"cite"><span>Just because McConnell has promised it wil=
l be brought to a vote doesn=E2=80=99t mean it will be a smooth process - th=
e Senate passed the Marketplace Fairness Act in 2013 with 69 votes, and most=
of the lawmakers who voted for it are still in the chamber. &nbsp;Some lawm=
akers like Kelly Ayotte, who is facing a tough reelection campaign this year=
, have vowed to fight tooth-and-nail against it. &nbsp;Despite these detract=
ors in the Senate, the real battle may occur in the House, where two competi=
ng proposals have been brought forward. &nbsp;</span><br></blockquote><block=
quote type=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite">=
<span></span><br></blockquote><blockquote type=3D"cite"><span>Upcoming/Recen=
t Updates</span><br></blockquote><blockquote type=3D"cite"><span></span><br>=
</blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Municipal Bond R=
ule</span><br></blockquote><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;B=
udget (Ir)Resolution</span><br></blockquote><blockquote type=3D"cite"><span>=
=E2=80=A2 &nbsp;Puerto Rico</span><br></blockquote><blockquote type=3D"cite"=
> <span>=E2=80=A2 &nbsp;Derivatives Agreement w. EU</span><br></blockquote><b=
lockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Econ. Revitalization/Housing</=
span><br></blockquote><blockquote type=3D"cite"><span></span><br></blockquot=
e><blockquote type=3D"cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 1=
6) </span><br></blockquote><blockquote type=3D"cite"><span>International Tax=
Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type=3D"cite"><sp=
an>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote t=
ype=3D"cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquot=
e><blockquote type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span>=
<br></blockquote><blockquote type=3D"cite"><span>Defending Dodd-Frank &nbsp;=
(Feb. 2)</span><br></blockquote><blockquote type=3D"cite"><span>Fiscal Pol: D=
eficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type=3D"ci=
te"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquot=
e><blockquote type=3D"cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</s=
pan><br></blockquote><blockquote type=3D"cite"><span>Regulating the Regulato=
rs &nbsp;(Jan. 21)</span><br></blockquote><blockquote type=3D"cite"><span>Sa=
nders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquo=
te type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquo=
te><blockquote type=3D"cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 1=
6)</span><br></blockquote><blockquote type=3D"cite"><span>Glass-Steagall, Ta=
ke 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type=3D"cite"><span>=
2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote typ=
e=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockq=
uote><blockquote type=3D"cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5=
)</span><br></blockquote><blockquote type=3D"cite"><span>Year-End Review: Fi=
scal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;=
Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type=3D"cite"><s=
pan>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote typ=
e=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blo=
ckquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquo=
te><blockquote type=3D"cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) <=
/span><br></blockquote><blockquote type=3D"cite"><span>Brown on HFT &nbsp;(D=
ec. 4)</span><br></blockquote><blockquote type=3D"cite"><span>Shelby 2.0 Upd=
ate &nbsp;(Dec. 3)</span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><span>----</span><br></block=
quote><blockquote type=3D"cite"><span></span><br></blockquote><blockquote ty=
pe=3D"cite"><span></span><br></blockquote><blockquote type=3D"cite"><span></=
span><br></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>On Feb 11, 2016, at 7:47 PM, Dana &lt;<a href=3D"mailto:danachasin@gmail=
.com">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>Mike &amp; Co. &nbsp;--</span><br></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>One thing th=
e two parties agree is that international tax reform is a fiscally necessary=
issue to take up -- that Uncle Sam is leaving hundreds of billions of dolla=
rs on the table overseas annually. &nbsp;&nbsp;But they would also generally=
agree that it is not going to get done this year. &nbsp;</span><br></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>Under current law, those profits are subject only to fede=
ral taxes if they are returned, or repatriated, to the U.S. where they face a=
top rate of 35 percent. &nbsp;Many companies avoid U.S. taxes on those earn=
ings by simply leaving them overseas.</span><br></blockquote></blockquote><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>T=
here is bipartisan activity on the issue in both houses of Congress. Obama h=
as a major reform proposal on the table. &nbsp;So is this the year, in the y=
ear of surprises?</span><br></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Best,</span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an></span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><span>Dana</span><br></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Reforms in t=
he area of international tax deal with both the repatriation of foreign-deri=
ved profits and the issue of corporate inversions. &nbsp;Testifying today, T=
reasury Secretary Jack Lew encouraged the parties in Congress to overcome th=
eir differences on both, which he believes surmountable: &nbsp;=E2=80=9CI ju=
st want to underscore the urgency of dealing with inversions =E2=80=A6 We ca=
n=E2=80=99t wait a year to deal with this,=E2=80=9D Lew said during a Senate=
Finance hearing on the Obama administration=E2=80=99s budget. Congress coul=
d pass narrow legislation on inversions, he said, even if broader reform of t=
he international system is preferable. </span><br></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Stirrings in the Senate</span><br></blockquote></blockquote><blockquote typ=
e=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sen. Schumer a=
lso announced today that he is in contact with Speaker Ryan about coming to a=
n agreement on repatriating corporate profits. &nbsp;They were unable to com=
e to an agreement last year on a similar measure put forth as part of a larg=
er reform effort. &nbsp;Schumer said today: =E2=80=9CWe=E2=80=99re trying to=
bridge over, of course, the divide between existing proposals. &nbsp;I rema=
in at the table ready to work.=E2=80=9D &nbsp;</span><br></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><span>One of the key differences between the parties concerns whether the m=
oney raised from tax reform should be turn into government revenue for more s=
pending, or used to pay down the debt or pass tax cuts. &nbsp;After the Sena=
te Finance hearing yesterday, Chair Hatch said: &nbsp;=E2=80=9CI'm actually w=
orking on international, but I just don't think it's going to get done this y=
ear, because, you know, let's face it, the Democrats are going to want to ra=
ise revenue. &nbsp;They want money to spend.=E2=80=9D &nbsp;</span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an></span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><span>At that same hearing, Sen. Shelby pushed a corporate i=
ntegration plan he is developing to eliminate the double taxation of corpora=
te income by providing corporations a dividend deduction. &nbsp;He's awaitin=
g a score by the Joint Committee on Taxation. &nbsp;Dividend deductions are u=
sually quite expensive and regressive, so it will a feat to attract any Demo=
cratic support, especially for him. </span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquo=
te></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Br=
ady's Push </span><br></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><span></span><br></blockquote></blockquote><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Meanwhile, Ways and Means C=
hair Kevin Brady has said that he wants a vote this year on moving the Unite=
d States into a territorial tax system, which would permanently exempt US-ba=
sed businesses from paying taxes on income earned abroad. &nbsp;He also want=
s to lower the corporate rate to 20 percent. &nbsp;In the face of these prop=
osals it is difficult to see what sort of compromise can be found between De=
mocrats and Republicans, as the former may be more preoccupied just keeping a=
live the idea that foreign profits should be taxed at all. =E2=80=9CThe goal=
of these reforms are not to generate more spending,=E2=80=9D Brady said. =E2=
=80=9CIt=E2=80=99s to bring back real dollars to be reinvested in the United=
States.=E2=80=9D</span><br></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Brady has been advoca=
ting for international tax reform since he took over Ways and Means. &nbsp;L=
ast month, he spoke with Sen. Hatch and they were both committed to getting s=
omething done. &nbsp;Senior Republicans believe the country=E2=80=99s intern=
ational tax problems =E2=80=94 inversions and Europe going after revenues fr=
om U.S. companies among them =E2=80=94 are urgent. &nbsp;But Brady strongly h=
inted that all that work would be aimed at setting things up for 2017, when R=
epublicans want =E2=80=9Cpro-growth tax reform under a Republican president.=
=E2=80=9D Perhaps that=E2=80=99s no huge shock, but it does seem to set up s=
omething of a disconnect, given all the talk of urgency.</span><br></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span><=
/span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><span>Brady and his supporters have been pushing the idea that A=
merican money is either being taxed by other countries or being taken over b=
y foreign competitors in an inversion -- typically, when an American company=
incorporates abroad so its earnings are no longer subject to American taxes=
. &nbsp;Brady says the result is an erosion of our tax base and a lock-out e=
ffect of American capital being =E2=80=9Ctrapped=E2=80=9D abroad that can be=
solved by fixing our uncompetitive tax code.</span><br></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>Presidential Proposal</span><br></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Presid=
ent=E2=80=99s FY 2017 budget contains a surprising source of new revenue to p=
ay for its spending programs =E2=80=93 a major piece of international tax po=
licy reform: a six-year, $478 billion public-works program for highway, brid=
ge and transit upgrades, half of it to be financed with a one-time, 14 perce=
nt tax on U.S. companies=E2=80=99 overseas profits and a 19 percent rate the=
reafter. &nbsp;The issue of companies holding foreign profits at locations a=
broad, where they are exempt from taxation until repatriated, has vexed poli=
cy makers on both sides for some time. &nbsp;It=E2=80=99s estimated that the=
se profits add up to nearly $2 trillion. </span><br></blockquote></blockquot=
e><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>The issue of companies holding foreign profits at locations abroad, there=
by exempt from taxation unless those profits are brought home, has vexed pol=
icy makers on both sides for some time. &nbsp;Microsoft Corp., Apple Inc., G=
oogle Inc. and five other tech firms now account for more than a fifth of th=
e $2.10 trillion in profits that U.S. companies are holding overseas. &nbsp;=
In keeping with the idea that Obama=E2=80=99s final budget is =E2=80=9Cmore p=
olitics than policy,=E2=80=9D these revenue-gaining proposals are meant to s=
park discussion more so than be a model for laws going forward. </span><br><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span></span><br></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><span>Upcoming/Recent Updates</span><br></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><=
br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><span>=E2=80=A2 &nbsp;Customs Bill</span><br></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Mu=
nicipal Bond Rule</span><br></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span>=E2=80=A2 &nbsp;Budget Irresolution </sp=
an><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><span>International Tax Status &nbsp;(Feb. 11)</sp=
an><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Obama's =
FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb=
. 3)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Fed Holds=
Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><span>Debate Myths Challenged &n=
bsp;(Jan. 25)</span><br></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</s=
pan><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=
=3D"cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></bl=
ockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>2016 Tax Agenda on th=
e Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13=
)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockqu=
ote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><span>S=
anders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><span>Sanders' Fin Reg P=
roposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote><blockquote type=
=3D"cite"><blockquote type=3D"cite"><span>Year-End Review: Fiscal Policy (Ja=
n. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (=
Dec. 15)</span><br></blockquote></blockquote><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blo=
ckquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><span>Customs Bill &nbsp;(Dec=
. 8)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><span>Shelby 2.0 Update &nbsp=
;(Dec. 3)</span><br></blockquote></blockquote><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><span></span><br></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blo=
ckquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=
=3D"cite"><blockquote type=3D"cite"><span>On Feb 10, 2016, at 7:41 PM, Dana &=
lt;<a href=3D"mailto:[email-masked]">[email-masked]</a>&gt; wrot=
e:</span><br></blockquote></blockquote></blockquote></blockquote><blockquote=
type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></s=
pan><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>Mike &amp; Co. --</sp=
an><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span>The Chair of the Feder=
al Reserve went before House Financial Services to provide a report on the n=
ation's economic condition, a kind of bi-annual checkup. No news was made, n=
o fireworks went off and no market mood swings occurred. &nbsp;As for the Fe=
d's next move, it's wait-and-see a little while longer. </span><br></blockqu=
ote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"=
cite"><blockquote type=3D"cite"><span>We thought it might happen in March, s=
igns pointed to it. &nbsp;Now, the guess is June (sound familiar?) &nbsp;For=
details, don't wait, see below.</span><br></blockquote></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Best, </span><br></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> Dana </span><br></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>----------</=
span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span>Economic Checkup</sp=
an><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span>Fed Chair Yellen testi=
fied before House Financial Services this morning for the Federal Reserve=E2=
=80=99s bi-annual Monetary Policy Report. &nbsp;These appearances allow Yell=
en to explain the Fed=E2=80=99s, actually the Federal Open Market Committee (=
FOMC)=E2=80=99s, analysis and projections regarding America's economic perfo=
rmance as well as to signal the factors underlying its actions in the months=
ahead. &nbsp;</span><br></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The r=
ate change in December 2015 was the first time the Fed raised rates since 20=
06 -- some worry that even a modest increase in rates at this juncture would=
further slow already limited economic growth after years of uncertainty.</s=
pan><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><span>The Basics</span><br>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>The bottom line: the FOMC won=
=E2=80=99t rollback rates in March and it=E2=80=99s not likely to raise them=
either. &nbsp;The Fed likes what it sees in the labor market, wage growth l=
ooks strong, and emerging market missteps continue to be a threat to the US e=
conomy but perhaps not an immediate one. &nbsp;The next rate move is almost c=
ertain to be an increase but it could wait until June or later. </span><br><=
/blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span>Yellen reiterated much of the FO=
MC statement from last month: &nbsp;the labor market remains strong, but sho=
ws some signs of remaining slack, that the low inflation we have seen is cau=
sed by =E2=80=9Ctransitory=E2=80=9D effects (low energy prices), and that gl=
obal market uncertainty creates some level of risk for slow growth at home a=
nd abroad. &nbsp;Though Yellen did not make a prediction on how long these t=
ransitory market effects would last, a number of forecasts for oil prices sh=
ow the dip lasting through 2016.</span><br></blockquote></blockquote></block=
quote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Expanding on global growth issues, Yellen said "These developme=
nts, if they prove persistent, could weigh on the outlook for economic activ=
ity and the labor market, although declines in longer-term interest rates an=
d oil prices could provide some offset," she added: "Foreign economic develo=
pments, in particular, pose risks to US economic growth." </span><br></block=
quote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span>Partisan Review</span><br></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><span></span><br></blockquote></blockquote></blockquote><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>=
The GOP is generally critical of "accommodative" (lower) Fed rates. &nbsp;&n=
bsp;High-net-worth individuals benefit the most from high rates through divi=
dends and interest from savings. &nbsp;Low rates allow more growth for the m=
iddle- and lower-classes at the risk of inflation, tacitly supporting Democr=
ats=E2=80=99 progressive fiscal policy goals. &nbsp;Some conservative econom=
ists have gone so far as to blame low interest rates pushed by the Fed in th=
e 1990=E2=80=99s for the market meltdown in 2007, claiming that cheap credit=
was the cause of the overheated housing market.</span><br></blockquote></bl=
ockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><span></span><br></blockquote></blockquote></blockqu=
ote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"=
cite"><span>Strong Labor Market</span><br></blockquote></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span></span><br></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Discu=
ssing the labor market in greater detail, Yellen pointed to the cumulative i=
ncrease in employment since 2010 of 13 million jobs. &nbsp;The rate in Janua=
ry fell to 4.9 percent, 0.8 points below its level one year ago; measures of=
labor market conditions such as the number of people who are working part-t=
ime but want to move to full-time positions and the number of individuals wh=
o want to work but haven=E2=80=99t searched recently are also decreasing ste=
adily. &nbsp;Regarding these broader labor market indicators Yellen testifie=
d that =E2=80=9C=E2=80=A6 these measures remain above the levels seen prior t=
o the recession, suggesting that some slack in labor markets remains. Thus, w=
hile labor market conditions have improved substantially, there is still roo=
m for further sustainable improvement."</span><br></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span></span><br></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>Forward Guidance</span><br></blockquote></blockquote></blockquote><blockq=
uote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span=
> </span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><span>As always, Yellen=
was careful not to give hints on what the Fed is planning to do in future m=
eetings; speaking on the path forward for the Fed Funds rate Yellen said =E2=
=80=9COf course, monetary policy is by no means on a preset course. The actu=
al path of the federal funds rate will depend on what incoming data tell us a=
bout the economic outlook, and we will regularly reassess what level of the f=
ederal funds rate is consistent with achieving and maintaining maximum emplo=
yment and 2 percent inflation.=E2=80=9D</span><br></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span></span><br></blockquote></blockquote></blockquote><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><sp=
an>Yellen was asked about the chances of the FOMC rolling back the rate hike=
it announced in December: &nbsp;"I do not expect the FOMC is going to be so=
on in the situation where it's necessary to cut rates If the FOMC delayed th=
e start of policy normalization for too long, it might have to tighten polic=
y relatively abruptly in the future to keep the economy from overheating and=
inflation from significantly overshooting its objective. Such an abrupt tig=
htening could increase the risk of pushing the economy into recession." </sp=
an><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span>Comment on Dodd-Frank</span><br></blockq=
uote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote>=
</blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote=
type=3D"cite"><span>During the Q&amp;A portion of her testimony, Yellen was=
asked about financial regulation, both in terms of breaking up the banks an=
d enforcing the regulations brought on by Dodd-Frank. </span><br></blockquot=
e></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><span></span><br></blockquote></blockquote></b=
lockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><span>In response to being asked if the Fed is trying to break u=
p the banks, she responded: "We are using our powers to make sure that a sys=
temically important institution could fail, and it would not have systemic c=
onsequences for the country." Her answer was interesting, because she's not o=
utright saying the banks will be broken up or reduced, just that the Fed is t=
rying to ensure that even if they did fail, it wouldn't negatively effect th=
e economy.</span><br></blockquote></blockquote></blockquote><blockquote type=
=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><=
br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><blockquote type=3D"cite"><span>Yellen was also asked abou=
t the burden of new Dodd-Frank regulations on banks. She responded: "For our=
part, we're focused on doing everything that we conceivably can to minimize=
and reduce the burden on these banking organizations. We've been conducting=
an EGRPRA review to identify potential burdens that our regulations impose.=
" An EGRPRA review is connected to the Economic Growth and Regulatory Paperw=
ork Reduction Act, which requires regulations imposed on financial instituti=
ons to be reviewed by the agencies at least once every 10 years. The purpose=
is to prevent burdensome regulations that could hinder a bank's ability to s=
erve its customers. </span><br></blockquote></blockquote></blockquote><block=
quote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><spa=
n></span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite=
"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Bottom Line<=
/span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><=
blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockq=
uote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Fed watchers make their living by try=
ing to predict what the FOMC will or won=E2=80=99t do at their meetings, and=
on days when Yellen is scheduled to testify before Congress you can bet tha=
t they=E2=80=99re listening intently. &nbsp;While Yellen was careful not to p=
roject the Fed=E2=80=99s moves, the general sentiment in the markets is that=
FOMC won=E2=80=99t be raising rates at its March meeting. &nbsp;The CME Gro=
up FedWatch tool, which estimates FOMC rate hikes based on its futures price=
s, predicts a 95% probability that the Fed will maintain its current rate ta=
rget in March. &nbsp;Some forecasters go even further -- expecting that the f=
unds rate won=E2=80=99t be raised all year. </span><br></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><span></span><br></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><span>Traders see the ongoing economic struggles of emerging economies, pa=
rticularly in China, as evidence that the Fed won=E2=80=99t continue with it=
s scheduled 4 rate hikes this year. &nbsp;Certainly, considering the testimo=
ny today that 1) continued emerging market uncertainty can weigh down the US=
economy and 2) that poor performance in the US economy would cause the Fed t=
o change course on its rate hike schedule, a link between poor emerging mark=
et performance and fewer Fed rate hikes seems plausible. &nbsp;Certainly the=
trading on Fed fund futures indicates that the markets believe this is the c=
ase.</span><br></blockquote></blockquote></blockquote><blockquote type=3D"ci=
te"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></b=
lockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote ty=
pe=3D"cite"><blockquote type=3D"cite"><span>-------</span><br></blockquote><=
/blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <blockquote type=3D"cite"><span></span><br></blockquote></blockquote></bloc=
kquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Recent Updates</span><br></blockquote></blockquote></blockquote=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><span></span><br></blockquote></blockquote></blockquote><blockquote type=3D=
"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>The Fed Hol=
ds Steady &nbsp;(Feb. 10)</span><br></blockquote></blockquote></blockquote><=
blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"=
> <span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote></blockquo=
te></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockqu=
ote type=3D"cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></bloc=
kquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</=
span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span>Fiscal Pol: Deficit/=
Debt Dormancy (Jan. 28)</span><br></blockquote></blockquote></blockquote><bl=
ockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><=
span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></b=
lockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><=
blockquote type=3D"cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span=
> <br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><block=
quote type=3D"cite"><blockquote type=3D"cite"><span>Regulating the Regulator=
s &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>S=
anders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockq=
uote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><block=
quote type=3D"cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></block=
quote></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D=
"cite"><blockquote type=3D"cite"><span>2016 Tax Agenda on the Hill &nbsp;(Ja=
n. 16)</span><br></blockquote></blockquote></blockquote><blockquote type=3D"=
cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Glass-Steaga=
ll, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></blockquote>=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><b=
r></blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquo=
te type=3D"cite"><blockquote type=3D"cite"><span>Sanders' Fin Reg Proposals &=
nbsp;(Jan. 5)</span><br></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Year-=
End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(D=
ec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote>=
</blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite=
"><blockquote type=3D"cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br>=
</blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquote=
type=3D"cite"><blockquote type=3D"cite"><span>Customs Bill &nbsp;(Dec. 8)</=
span><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><b=
lockquote type=3D"cite"><blockquote type=3D"cite"><span>Tax Extender Negotia=
tions &nbsp;(Dec. 6) o</span><br></blockquote></blockquote></blockquote><blo=
ckquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><s=
pan>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockq=
uote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D=
"cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote></block=
quote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><span></span><br></blockquote></blockquote></blockquote=
> <blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><span>----</span><br></blockquote></blockquote></blockquote><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></spa=
n><br></blockquote></blockquote></blockquote><blockquote type=3D"cite"><bloc=
kquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote=
> </blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"cit=
e"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>On Feb 9, 2016,=
at 7:42 PM, Dana &lt;<a href=3D"mailto:[email-masked]">danachasin@gma=
il.com</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blo=
ckquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=
=3D"cite"><blockquote type=3D"cite"><span></span><br></blockquote></blockquo=
te></blockquote></blockquote><blockquote type=3D"cite"><blockquote type=3D"c=
ite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span></span><br></=
blockquote></blockquote></blockquote></blockquote><blockquote type=3D"cite">=
<blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite=
"><span>Mike &amp; Co. --</span><br></blockquote></blockquote></blockquote><=
/blockquote><blockquote type=3D"cite"><blockquote type=3D"cite"><blockquote t=
ype=3D"cite"><blockquote type=3D"cite"><span>Today, President Obama submitte=
d his eighth and final budget proposal to Congress. &nbsp;It tops the $4 tri=
llion mark for the first time. &nbsp;&nbsp;Despite the historical tendency f=
or lame duck presidential budgets to be treated as scrap paper -- this one w=
on't even be accorded the courtesy of a hearing in House Budget -- there are=
a few noteworthy proposals and initiatives which, if nothing else, are like=
ly to generate discussion on the Hill and off. &nbsp;</span><br></blockquote=
> </blockquote></blockquote></blockquote><blockquote type=3D"cite"><blockquot=
e type=3D"cite"><blockquote type=3D"cite"><blockquote type=3D"cite"><span>Th=
at=E2=80=99s the real purpose of this budget -- to help frame the debate in 2=
016 about where America is headed what the nation's priorities should be. &n=
bsp;A number of the proposals in this budget resonate with issues and themes=
already being debated. &nbsp;Candidates in particular seeking to emphasi
Content-Type: multipart/alternative; boundary=Apple-Mail-5528A178-8336-47A7-B43B-F2A16DA83968
Content-Transfer-Encoding: 7bit
Subject: Bud
<html><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><body dir="auto"><div><span></span></div><div><div><span></span></div><div><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">Mike &amp; Co. --</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">House and Senate leaders are pursuing different legislative strategies as Congress continues to make progress on a fiscal year 2017 budget for the U.S. government. &nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">One chamber is processing down the good governance path of regular order, with Appropriations subcommittee hearings by the dozens already held and a date certain for a budget resolution mark-up.&nbsp; The other chamber has scheduled and cancelled a Budget Committee mark-up and has not rescheduled it.&nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">Which is which and why?&nbsp; What is at stake?&nbsp; More below.</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;">Best,</p><p class="MsoNormal" style="margin: 6pt 0in 12pt;">Dana</p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">-----------------------------------<br clear="all"></span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><b style="background-color: rgba(255, 255, 255, 0);">Regular Budget Order or None at All?</b></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">The divide is a result of two unrelated factors -- the curious vote-a-rama and reconciliation features of the budget making process and the deep divide regarding&nbsp;</span><span style="background-color: rgba(255, 255, 255, 0);">strategic objectives within the GOP between the views that</span><span style="background-color: rgba(255, 255, 255, 0);">&nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;• &nbsp;the GOP should pass a budget through regular order to demonstrate its ability to govern and&nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">&nbsp; &nbsp;• &nbsp;the GOP should throw out the Obama-Boehner spending deal and enact a cost-slashing budget in line with the sequestration levels. &nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">The major bone of contention is the spending deal reached last year between President Obama and former Speaker Boehner, which increases spending roughly $30 billion this year.&nbsp; While Senate Republicans seem increasingly content to abide by that deal House leadership has had no end of trouble getting their colleagues to toe the line.</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">Ryan, Price, and Brady (not to mention their Senate counterparts) are advocating the former while the House Freedom Caucus insists on the latter of these two approaches, it’s been a public and embarrassing battle for the House GOP so far.&nbsp; In any other year the House Speaker may look for cooperation from Democrats, especially to save his promise for passing a budget.&nbsp; But considering the political nature of the promise, to show that the GOP can govern, it might look like a surrender to turn to Democrats for help.</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">House Ways and Means Chair Kevin Brady has tried to break the stalemate by releasing a series of tax bills touted as a “budget savings” package.&nbsp; The legislation will cut $16 billion&nbsp;in two years&nbsp;and $98 billion over ten.&nbsp; The bills are expected to be market up this week.&nbsp;&nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">The Brady bill comes after the Freedom Caucus balked at a deal by Tom Price which would pass a budget resolution sticking to last year’s deal while allowing a separate vote to cut $30 billion in mandatory spending.&nbsp; Holdouts against the Price deal claimed that they would not accept any deal which included passing a budget in line with the Obama-Boehner deal; Brady’s legislation doesn’t touch that issue at all, and hasn’t been made contingent on Freedom Caucus cooperation.&nbsp; It’s hard to see how this package will sway the hardliners.</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><b style="background-color: rgba(255, 255, 255, 0);">Meanwhile in the Senate</b></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">Senate Republicans have signaled they’re unlikely to act on a budget before the House, placing more pressure on Ryan et al. &nbsp;&nbsp;</span><span style="background-color: rgba(255, 255, 255, 0);">So why are Senate Republicans so amenable to skipping out on a budget?&nbsp; A number of their colleagues are up for reelection in difficult states, and being forced to cast embarrassing votes may hurt their chances.&nbsp; Senate procedures allow 30 hours of open debate and unlimited amendments to budget resolutions, the so called “vote-a-rama,” so it’s a virtual certainty that politically sensitive votes will come up.</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">Senator&nbsp;Richard Shelby has noted that a budget wasn’t necessary since the Senate already had a total discretionary spending figure to shoot for.&nbsp; Senator Corker echoed his statement, calling the budget “an unbelievable hoax” that he could live without.</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">In a move sure to upset budget hawks, Senate Majority Leader Mitch McConnell said of the Senate’s upcoming appropriations bill: “we will be using the top-line that was agreed to last year&nbsp;… We have the top-lines for this year and we’re going to go forward with appropriations.”&nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><b style="background-color: rgba(255, 255, 255, 0);">Consequences of Failure</b></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">If the Senate and House don’t pass identical budgets then the GOP will lose its ability to pursue budget reconciliation, through which budget-related legislation can move through the Senate on a simple majority and avoid filibusters.&nbsp; This was used last year to pass legislation repealing large swaths of ACA, though it was promptly vetoed by Obama.&nbsp; The GOP would surely like to have that option available again to take one last swing at the outgoing administration.</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="background-color: rgba(255, 255, 255, 0);">The GOP has to ask itself: is it worth losing reconciliation to make a stand against spending levels?&nbsp; It’s hard to believe that the majority will ever think they gain more ground politically by giving up on reconciliation in favor of making a budget statement.&nbsp; After all, it’s hard to make failure look good. &nbsp;</span></p><p class="MsoNormal" style="margin: 6pt 0in 12pt;">_________________________</p><p class="MsoNormal" style="margin: 6pt 0in 12pt;"><span style="color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 255, 255, 0);"><b style="text-decoration: -webkit-letterpress;"><u>Future/Recent Updates</u></b><br></span></p><span style="color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; background-color: rgba(255, 255, 255, 0);">• &nbsp;&nbsp;Monday -- &nbsp;Budget Irresolution&nbsp;</span><div style="color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span style="background-color: rgba(255, 255, 255, 0);">• &nbsp; Tuesday -- &nbsp;Fed: Regulatory Update</span></div><div style="color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span style="background-color: rgba(255, 255, 255, 0);">• &nbsp; Wednesday --&nbsp;</span>Fed: Monetary Update<span style="background-color: rgba(255, 255, 255, 0);"><br>• &nbsp;&nbsp;Thursday -- &nbsp;The Fiduciary Rule<br>• &nbsp;&nbsp;Friday -- Pre-Recess Review<br></span></div><div style="color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span style="background-color: rgba(255, 255, 255, 0);"><br>&nbsp;&nbsp;• &nbsp;&nbsp;ERI/Housing<br>&nbsp;&nbsp;• &nbsp;&nbsp;EU/US Derivatives Deal<br>&nbsp;&nbsp;• &nbsp;&nbsp;Pension Crisis<br><br></span>Regular Budget Order or None &nbsp;(Mar. 14)</div><div style="color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"><span style="background-color: rgba(255, 255, 255, 0);">Tax Bills on the Hill (Mar. 11)<br>Senate Banking Nominations (Mar. 10)<br>Survey of the SIFI Landscape &nbsp;(Mar. 9)<br>Michigan and the Meaning of Flint &nbsp;(Mar. 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)<br>Municipal Finance Caucus &nbsp;(Mar. 4)&nbsp;<br>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2)&nbsp;<br>Top Tax Bills Handicapped &nbsp;(Feb. 24)<br>Bigger than the Budget Battle &nbsp;(Feb. 23)<br>Infrastructure Finance Update &nbsp;(Feb. 18)&nbsp;<br>Does DFA Fail on Too Big to Fail? (Feb. 17)<br>Below the Radar/Customs Bill &nbsp;(Feb. 16)&nbsp;<br>International Tax Status &nbsp;(Feb. 11)<br>The Fed Holds Steady &nbsp;(Feb. 10)<br>Obama's FY17 Budget &nbsp;(Feb. 9)&nbsp;<br>Tax Talk of the Town &nbsp;(Feb. 3)<br>Defending Dodd-Frank &nbsp;(Feb.2)<br><br></span></div><span></span>___________________________________</div><div><br><span>Mike &amp; Co. --</span><br><span></span><br><span>Yesterday, House Ways and Means chair Kevin Brady released a “budget savings package designed to cut taxes." &nbsp;Brady's gambit reflects the growing buyers remorse regarding the omnibus agreement within the Freedom Caucus. &nbsp;Hard liners have objected to the spending levels set in the Obama-Boehner deal; this package is meant to buy their cooperation in the larger negotiations between parties.</span><br><span></span><br><span>It's one of a number of tax proposals getting attention and generating debate on the Hill. &nbsp;A review of the tax issues on the table is below. </span><br><span></span><br><span>Good weekends all. &nbsp;Don't hesitate to let me know if there's an issue you think should be covered in an upcoming update. </span><br><span></span><br><span>Best,</span><br><span></span><br><span>Dana</span><br><span></span><br><span>_______________________________</span><br><span></span><br><span></span><br><span></span><br><span>Tax Legislation in 2016</span><br><span></span><br><span>Tax reform advocates entered 2016 with a great deal of fanfare – optimistic talk of comprehensive, bipartisan, pro-growth tax reform abounded. &nbsp;What’s happened since New Year’s Day? &nbsp;A lot of interesting proposals have come forward to fix critical but narrow issues, and the bold talk of comprehensive reform has remained just that – talk. &nbsp;</span><br><span></span><br><span>Given the developments since Paul Ryan and Kevin Brady called for comprehensive tax reform – Justice Scalia’s death, the rise of the Donald, and the stalled budget – it’s unlikely that sweeping legislation will take form. &nbsp;More likely we’ll see smaller bills focused on particular issues.</span><br><span></span><br><span>International </span><br><span></span><br><span>President Obama, Senator Wyden, and Rep Brady, long ago hammered home the need for international tax reform. &nbsp;Their proposals include finding a way to repatriate foreign-held profits of US-based multinationals, dealing with corporate inversions, and setting up a new international tax code.</span><br><span></span><br><span>The key to reaching an agreement on the proposals below likely lies in determining where revenue will go after foreign earning are brought back to the US. &nbsp;Brady has said before that he wouldn’t support a proposal in which any tax is levied on foreign earnings, while Wyden says the opposite – revenue is a requirement. &nbsp;There is so much pressure for this to happen it’s hard to believe they can’t compromise. </span><br><span></span><br><span>• &nbsp;&nbsp;taxing foreign earnings: &nbsp;Competing proposals exist between parties. &nbsp;President Obama’s FY17 budget includes a 14 percent repatriation holiday with 19 percent tax thereafter on all foreign earnings. &nbsp;Brady has said he’d rather these earnings come home with no tax attached, so that they can be used for investment. &nbsp;Sen. Wyden proposes that the income be repatriated, taxed, and the revenue be used for infrastructure development. &nbsp;A recent bill by Schumer and Brown (below) would tax the foreign income of any company that moves its headquarters overseas. &nbsp;</span><br><span></span><br><span>• &nbsp;preventing inversions: &nbsp;&nbsp;Sen. Wyden proposes making the ownership minimum for a corporate inversion 50% (current law is 15%). &nbsp;Reps Levin and Van Hollen have announced legislation to prevent “earnings stripping” by reducing the tax preference for interest payments. &nbsp;</span><br><span></span><br><span>Sens. Schumer and Brown have announced they will introduce two pieces of legislation to tackle inversions – one to impose an exit tax on companies moving their address overseas, and another to limit earnings stripping. &nbsp;The exit tax proposal enforces the full 35 percent tax rate on all foreign earnings for companies that move abroad; their earnings stripping legislation limits the tax-deducibility of interest payments to 25 oercent, down from the current 50 percent. &nbsp;</span><br><span></span><br><span>• &nbsp;territorial system: Brady has mentioned repeatedly that the US must adopt a territorial system to remain competitive, whereby earnings from abroad are not taxed in the US. &nbsp;It’s been a perennial favorite of Republicans but likely will remain a non-starter for Democrats. &nbsp;</span><br><span></span><br><span>Corporate Tax Reform</span><br><span></span><br><span>Many issues solved in international tax reform proposals would affect corporate tax reform efforts – often the two are considered indelibly linked. &nbsp;Prominent policymakers agree that the corporate rate must be lowered, but the final size of the tax and how it is aimed differ.</span><br><span></span><br><span>Republican proposals generally have rates between 0 and 20 percent, with Democrats above those at 24 percent and 28 percent for Wyden and Obama respectively. &nbsp;New rules on depreciations of assets – specifically replacing the Modified Accelerated Cost Recovery Systems with something less generous – are being floated as well. &nbsp;Ending the tax-deductibility of debt is a dual-purpose proposal – useful for preventing inversions (see above) as well as encouraging businesses to fund themselves using equity rather than credit.</span><br><span></span><br><span>Earned Income Tax Credit</span><br><span></span><br><span>A favorite of both Democrats and Republicans – and notable of Paul Ryan and President Obama. &nbsp;They were rumored to discuss the issue during their first meeting, this past February, after Ryan’s ascension to Speaker. &nbsp;</span><br><span></span><br><span>The EITC is a part of Obama’s budget proposal for this year; he suggests to expand the EITC for childless workers and create a $500 “second earner” tax credit. The total cost would be $150 billion. Ryan has proposed something that is very similar. In addition to that, there have been five recent congressional proposals (introduced by Senators Sherrod Brown and Richard Durbin, by Rep. Richard Neal, by Rep. Charles Rangel, by Rep. Danny Davis, and by Senators Patty Murray, Jack Reed, and Sherrod Brown) that would substantially strengthen the EITC for childless workers. All of them, including Ryan’s and Obama’s, would lower the eligibility age to 21, and all would raise the maximum credit — the Obama and Ryan proposals to about $1,000 and the other proposals to somewhat higher amounts.</span><br><span></span><br><span>The recent focus on the issue makes it likely that something will be done on it soon. If Ryan and Obama can work together on this, it will be a bipartisan light in the gridlocked darkness. </span><br><span></span><br><span>Carried Interest </span><br><span></span><br><span>Senator Tammy Baldwin has released a proposal to tax carried interest as a regular income rather than capital gains. &nbsp;Historically this has been a particularly divisive issue, with lawmakers on the right refusing to entertain the idea. &nbsp;However, recently Republicans have begun to soften on this position – perhaps after seeing the populist sentiment inspired by their presidential candidates’ own call to end the loophole. &nbsp;</span><br><span></span><br><span>Baldwin released her proposal in conjunction with Sander Levin, who released a version of the bill in the House as well. &nbsp;</span><br><span></span><br><span>The Bottom Line</span><br><span></span><br><span>Any piece of tax reform legislation put forward which reduces revenues would have to find a way to offset its costs. &nbsp;In light of the Obama-Boehner deal on spending limits for 2016 this may be a particularly important issue – especially as GOP leaders try to keep their right flank in order as they tussle over the spending rules. &nbsp;Conversely, any reform which raises revenue will face strong calls from Republicans to fund tax cuts, and from Democrats to fund infrastructure or other initiatives.</span><br><span></span><br><span>As the year drags on the prospects for comprehensive reform dwindle further – they were never that great to begin with, despite enthusiasm from party leaders. &nbsp;Even the more modest proposals laid out here may be too divisive to survive, especially in a political environment like this one. &nbsp;Senators can’t be blamed for focusing their efforts on Supreme Court nominees, the budget, their own party candidates, and more.</span><br><span></span><br><span>_________________________________</span><br><span></span><br><span>Future/Recent Updates</span><br><span></span><br><span>• &nbsp;&nbsp;Wednesday -- SIFI Landscape</span><br><span>• &nbsp;&nbsp;Thursday-- &nbsp;Financial Nominations </span><br><span>• &nbsp;&nbsp;Friday -- Update on Tax Bills</span><br><span>• &nbsp;&nbsp;Monday -- &nbsp;Budget Irresolution </span><br><span>• &nbsp;&nbsp;Tuesday --</span><br><span></span><br><span> • &nbsp;&nbsp;ERI/Housing</span><br><span> • &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span> • &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Tax Bills on the Hill (Mar. 11)</span><br><span>Senate Banking Nominations (Mar. 10)</span><br><span>Survey of the SIFI Landscape &nbsp;(Mar. 9)</span><br><span>Michigan and the Meaning of Flint &nbsp;(Mar. 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb.2)</span><br><span></span><br><span>___________________ </span><br><span></span><br><span></span><br><span>Mike &amp; Co. --</span><br><span></span><br><span>Federal Reserve governor Lael Brainard is under fire today for making a $750 donation to the Clinton campaign, with Republicans calling it proof positive that the Fed has “cozy ties” with the Executive branch. &nbsp;</span><br><span></span><br><span>Brainard began her Fed term in 2014; preciously she was Treasury Undersecretary for International Affairs. &nbsp;The former MIT Professor of Applied Economics and Brookings Fellow has served in half a dozen senior White House and Treasury positions. &nbsp;</span><br><span></span><br><span>Sen. Shelby acted with alacrity: “Governor Brainard’s contributions to Hillary Clinton’s campaign call into question the political independence of the board,” he said in an emailed statement from his press office. </span><br><span></span><br><span>Meanwhile, the same Senate Banking Committee Chair has announced he’s ready to hold hearings for some of the 16 nominations -- reviewed below -- which have languished under his tenure. </span><br><span></span><br><span>Best,</span><br><span></span><br><span>Dana</span><br><span></span><br><span>__________________________________</span><br><span></span><br><span>Update: &nbsp;Senate Banking Nom Queue</span><br><span></span><br><span>Senate Banking has the ignominious distinction of being the only Senate committee to have not acted on a single nominee before it in the 114th Congress. &nbsp;There are currently 16 nominations waiting for Committee action. &nbsp;These aren’t small time positions -- the logjam includes nominees to the Fed’s Board of Governors and senior Treasury, SEC, FDIC, and Ex-Im posts. </span><br><span></span><br><span>For months, Chairman Shelby has defended his Committee’s inaction by citing two issues -- he was facing a live primary threat and President Obama has not yet nominated a Federal Reserve vice chair for supervision, a prerequisite. </span><br><span></span><br><span>Logjam Lifting at Long Last?</span><br><span></span><br><span>Shelby's primary behind him, he has scheduled a March 15 hearing for two SEC nominees, Lisa Fairfax and Hester Peirce. &nbsp;Fairfax teaches at George Washington University and Peirce is a senior research fellow at George Mason’s Mercatus Center. The Committee will not be considering either of the two Federal Reserve nominees, nor Adam Szubin, nominated for Treasury’s top post in terrorism and financial crimes.</span><br><span></span><br><span>Even if the Committee confirms the three nominee scheduled for its next hearing, it will have hardly made a dent in the queue. </span><br><span></span><br><span>Nominations have continued despite the dearth of hearings on them. &nbsp;On March 3, President Obama nominated Brian Quintenz and Chris Brummer to the Commodities Futures Trading Commission (CFTC). &nbsp;Quintenz, a Republican, works for Saeculum Capital in D.C. and Brummer, a Democrat, is a professor at Georgetown University Law School.</span><br><span></span><br><span>Backlog at Banking</span><br><span></span><br><span>With 16 unfilled vacancies before it (Messrs. Quintenz and Brummer will make it &nbsp;18), the Banking Committee has its work cut out for it. &nbsp;The Chairman’s refusal &nbsp;to consider any Fed nominee until Obama nominates a vice chair for supervision means that those two critical positions may remain unfilled longest. &nbsp;&nbsp;Key vacancies exist at the Export-Import Bank as well, because the board does not have enough members to reach quorum it is unable to approve loans in excess of $10 million, severely hampering its impact on export promotion deals.</span><br><span></span><br><span>With so many nominees waiting to receive a hearing and the number legislative days the Senate remaining this session rapidly dwindling, it’s no surprise that the &nbsp;Democrats on Banking have been pushing harder than ever for the Chairman to move forward quickly. &nbsp;</span><br><span></span><br><span>In a letter sent to Sen. Shelby, Ranking Member Sherrod Brown and his colleagues wrote “For more than a year, the committee has failed to carry out one of its basic duties … Failure to act impairs agencies’ and offices’ ability to fulfill all of their functions.”</span><br><span></span><br><span>The pending list includes the nominations below:</span><br><span></span><br><span>Federal Reserve</span><br><span></span><br><span>• &nbsp;Allan R. Landon, of Utah, to be a Member of the Board of Governors of the Federal Reserve System for the unexpired term of fourteen years from February 1, 2016 [PN 3]. (Reappointment)</span><br><span></span><br><span>• &nbsp;Kathryn M. Dominguez, of Michigan, to be a Member of the Board of Governors of the Federal Reserve System for the unexpired term of fourteen years from February 1, 2004, vice Jeremy C. Stein, resigned. </span><br><span></span><br><span>Federal Deposit Insurance Corporation</span><br><span></span><br><span>• &nbsp;&nbsp;Jay Neal Lerner, of Illinois, to be Inspector General, Federal Deposit Insurance Corporation, vice Jon T. Rymer, resigned </span><br><span></span><br><span>Treasury Department</span><br><span></span><br><span>• &nbsp;Adam J. Szubin, of the District of Columbia, to be Under Secretary for Terrorism and Financial Crimes, vice David S. Cohen, resigned &nbsp;</span><br><span></span><br><span>• &nbsp;Amias Moore Gerety, of Connecticut, to be an Assistant Secretary of the Treasury, vice Cyrus Amir-Mokri, resigned </span><br><span></span><br><span>Securities and Exchange Commission</span><br><span></span><br><span>• &nbsp;Lisa M. Fairfax, of Maryland, to be a Member of the Securities and Exchange Commission for a term expiring June 5, 2020, vice Luis Aguilar, term expired</span><br><span></span><br><span>• &nbsp;Hester Maria Peirce, of Ohio, to be a Member of the Securities and Exchange Commission for a term expiring June 5, 2021. (Reappointment) </span><br><span></span><br><span>Export-Import Bank</span><br><span></span><br><span>• &nbsp;John Mark McWatters, of Texas, to be a Member of the Board of Directors of the Export-Import Bank of the United States for a term expiring January 20, 2019, vice Sean Robert Mulvaney, term expired. ____________________________________</span><br><span></span><br><span>Reeder</span><br><span>Aw</span><br><span>Pm</span><br><span></span><br><span>• &nbsp;&nbsp;Thurs -- &nbsp;Financial Reg. Nominations</span><br><span>• &nbsp;&nbsp;Fri -- Update on Tax Bills</span><br><span>• &nbsp;&nbsp;Mon -- &nbsp;Budget Irresolution </span><br><span></span><br><span>• &nbsp;&nbsp;ERI/Housing</span><br><span>• &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span>• &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Senate Banking Nominations (Mar. 10)</span><br><span>Survey of the SIFI Landscape &nbsp;(Mar. 9)</span><br><span>Michigan and the Meaning of Flint &nbsp;(Mar. 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb.2)</span><br><span></span><br><span>___________________ </span><br><span></span><br><span>Mike &amp; Co. --</span><br><span></span><br><span>It may feel like Michigan-morning-after but by dint of Mississippi, HRC padded her delegate lead last night. </span><br><span></span><br><span>On Monday, &nbsp;President Obama held a financial regulatory summit in the Roosevelt Room of the White House. &nbsp;Joined by the heads of the Fed, the FDIC, and the CFPB, Obama declared “I want to dispel the notion that exists both on the left and on the right that somehow, after the crisis, nothing happened," he said. “We did not just rebuild this, we rebuilt it better, and we’ve rebuilt it stronger.”</span><br><span></span><br><span>He has a strong argument. &nbsp;You can't prove a negative and we will never know how many financial crises were averted by Dodd-Frank. &nbsp;But metrics bear out the view that Americans and the economy have less to fear today from the Systemically Significant Financial Institutions (SIFIs) than at any time since the turn of the millennium. &nbsp;More on the regulatory circumstances of SIFIs below. &nbsp;</span><br><span></span><br><span>Best,</span><br><span></span><br><span>Dana</span><br><span></span><br><span>-------------------------------------------------</span><br><span></span><br><span>A Survey of the SIFI Landscape</span><br><span></span><br><span>The landscape for the eight SIFIs today -- Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, State Street, and Wells Fargo -- is worth looking at from various perspectives. &nbsp;Presidential candidates on both sides have made a point of criticizing “too big to fail” banks, court proceedings are challenging regulators powers', members of Congress are debating whether to loosen Dodd-Frank Act SIFI rules, and a current Federal Reserve Bank president has spoken out in favor of breaking them up. &nbsp;But do SIFIs pose the same threat they did in 2008?</span><br><span></span><br><span>The Power of DFA</span><br><span></span><br><span>President Obama hasn’t remained silent in the face of criticism of DFA. &nbsp;After the Monday summit, Obama said that critics are spreading “cynicism”: &nbsp;“It is popular … to suggest that the crisis happened and nothing changed. &nbsp;That is not true.” &nbsp;The President cited the 14 million new jobs created since his inauguration, proof, he said, that sensible regulations on Wall Street don’t stifle business growth.</span><br><span></span><br><span>Two major business news stories from 2015 support the President’s view: &nbsp;</span><br><span></span><br><span>· &nbsp;&nbsp;General Electric continued to sell off GE Capital, its $42 billion investment arm, hoping to exit SIFI status in Q1 2016 as a result of its divestiture. &nbsp;</span><br><span></span><br><span>· &nbsp;&nbsp;MetLife has been embroiled in a legal battle with the Financial Stability Oversight Council (FSOC) since the regulator announced in December 2014 that the insurance company was considered a SIFI – arguments were heard in New York this January. </span><br><span></span><br><span>70 percent of DFA has been implemented by the regulatory agencies since it was passed. &nbsp;&nbsp;Despite the constraints on SIFIs, they have by and large adapted well, making adjustments faster, earlier and more successfully” than their overseas counterparts. </span><br><span></span><br><span>· &nbsp;&nbsp;SIFIs now hold much more capital now than they did before the crisis – to the tune of $700 billion in additional capital, twice the amount prior to it</span><br><span></span><br><span>· &nbsp;&nbsp;SIFIs have three times the liquidity they had before the crisis</span><br><span></span><br><span>· &nbsp;&nbsp;Derivatives clearing houses force transparency on SIFI speculation, preventing over-exposure</span><br><span></span><br><span>· &nbsp;&nbsp;&nbsp;SIFIs now post collateral on their derivatives trades</span><br><span></span><br><span>· &nbsp;&nbsp;&nbsp;SIFIs submit to rigorous stress testing by the Federal Reserve and FDIC </span><br><span></span><br><span>· &nbsp;&nbsp;&nbsp;SIFIs are being forced to draft “living wills,” which have already forced some to streamline or simplify so they can wind down without requiring a bailout</span><br><span></span><br><span>Congressional Update</span><br><span></span><br><span>Congress is split between those who want to reduce regulatory pressure on big banks and those who would rather see it ramped up. &nbsp;Sen. Shelby, Senate Banking Chair, introduced the Financial Regulatory Improvement Act of 2015, a grab-bag of exceptions and exemptions from regulations, mostly for banks with between $50 and $500 billion in assets. &nbsp;In a similar vein, Sens Warner, Portman, and Collins introduced the Independent Agency Regulatory Analysis Act to require that regulators undertake a cost-benefit analysis of any rules they wish to implement.</span><br><span></span><br><span>On the flip side, Sens. McCain and Warren’s 21st Century Glass-Steagall Act proposes to split commercial and investment banks in a bid to finally kill off the TBTF problem. &nbsp;Sens. Warren and Vitter teamed up early in 2015 to introduce a package of amendments to the Federal Reserve Act –- that bill notably would set forward stricter regulations when an entity is considered insolvent, and therefore ineligible for Federal Reserve loans, as well as require that the Fed lend money to distressed institutions at market rates.</span><br><span></span><br><span>The Regulators' Agenda </span><br><span></span><br><span>Under Basel III requirements for large banks to satisfy Liquidity Coverage Ratios (LCR) were adopted by a number of national regulators, including the Federal Reserve. &nbsp;While the Fed has floated a rule change allowing some municipal bonds to count as High Quality Liquid Assets (HQLA), that hasn’t stopped Rep. Luke Messer from proposing HR 2209 to force regulators allow a greater share of munis to count as HQLA (see Update, Feb. 18).</span><br><span></span><br><span>The Fed is also working on implementing a rule on Single-Counterparty Credit Limits (SCCL), setting boundaries on credit exposure between large banks or major counterparties. &nbsp;The rule is meant to prevent banks from becoming overexposed to other financial institutions, preventing them from taking overly large losses in the event that the counterparty fails. &nbsp;Analysts suspect that firms are nearly $100 billion over the limits imposed by this rule, but Yellen says it is necessary to set a “bright line” on credit exposure.</span><br><span></span><br><span>SIFIs Moving Forward</span><br><span></span><br><span>There is no doubt that the upcoming MetLife ruling will be a critical pivot point for how regulators interact with SIFIs. &nbsp;If the FSOC is required to retract the firm’s SIFI status it will open the regulator up for a whole slew of challenges from other banks and institutions. &nbsp;The fate of Congressional proposals to restrict regulator’s efforts, either by determining rules for them or by burdening them with regulations of their own, should be seen as the start of a potential sea change in the regulatory climate. &nbsp;During his Monday meeting, President Obama warned of this: "If there is a significant challenge in terms of regulating Wall Street and regulating our financial sector it is primarily coming from certain members of Congress who are consistently pressuring independent regulators to back off.”</span><br><span></span><br><span>It is not a bad time to be a SIFI in America – it’s certainly much better to be one now than in 2010. &nbsp;While DFA has forced restructuring and streamlining to occur, events like the GE Capital sell-off may prove to be exceptions that prove the rule rather than the new normal for SIFIs, especially if MetLife wins its case against regulators. &nbsp;President Obama was right to point to Congress as the cause of regulatory gridlock; the political will seen after the economic collapse has largely evaporated, giving SIFIs far more breathing room and opening up opportunities to push through “regulatory reform” measures.</span><br><span></span><br><span>_____________________________________</span><br><span></span><br><span>Upcoming/Recent Updates</span><br><span></span><br><span>• &nbsp;&nbsp;Thurs -- &nbsp;Financial Reg. Nominations</span><br><span>• &nbsp;&nbsp;Fri -- Update on Tax Bills</span><br><span>• &nbsp;&nbsp;Mon --</span><br><span></span><br><span>• &nbsp;&nbsp;ERI/Housing</span><br><span>• &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span>• &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Survey of the SIFI Landscape (Mar 8)</span><br><span>Michigan and the Meaning of Flint &nbsp;(Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb.2)</span><br><span></span><br><span>___________________ </span><br><span></span><br><span>Mike &amp; Co. &nbsp;--</span><br><span></span><br><span>Tomorrow’s Michigan primary election may end up being "yugge" if it seriously opens up the possibility that Trump can put the state in play in November -- “A normal Republican cannot think of bringing in Michigan,” said Trump -- nothing any other GOP presidential candidate could do, now, or for the past 25 years. </span><br><span></span><br><span>Flint crystallizes so many of the issues that give rise to this new tectonic possibility. &nbsp;There had to be a debate in Flint because there had to be a debate about it... and the Secretary deserves far more credit than she's getting for making sure it happened. </span><br><span></span><br><span>In Washington, the Senate is readying to vote on a bipartisan package for drinking water aid. &nbsp;It’s not a slam dunk, however, as Mike Lee has maintained a hold on the bill, saying political grandstanding is taking the place of policy. &nbsp;More on all this below. </span><br><span></span><br><span>Best,</span><br><span></span><br><span>Dana</span><br><span>______________________________________</span><br><span></span><br><span></span><br><span>Flint -- Bills and Broad Strokes</span><br><span></span><br><span>The Michigan legislature approved in January a $28 million appropriation to provide immediate aid to Flint. &nbsp;Some critics maintain that the need to do so demonstrates the sorry condition of the state’s tax policy. &nbsp;</span><br><span></span><br><span>The tax base in Flint was eroded significantly during the 1980’s and 90’s as industry jobs left and the population fell. &nbsp;To deal with the resulting fiscal imbalance the Flint city manager was instructed to cut costs – he did so partly by switching the source of Flint’s drinking water. The broad and deep cuts to state and local budgets affected basic public services most profoundly. &nbsp;Now, as a direct cause of these cuts, the residents of Flint are grappling with an issue no American ever considered possible – they do not have access to fresh drinking water.</span><br><span></span><br><span>For all the talk of federal aid in infrastructure financing there must be a place made for regular tax payers. &nbsp;These people bear a significant portion of direct funding for infrastructure projects both in their states and municipalities. &nbsp;When those tax revenues are redirected, or when state spending is cut to the point that basic services can’t be provided then taxpayers are right to question what, in fact, their taxes are paying for. &nbsp;</span><br><span></span><br><span>Congressional update:</span><br><span></span><br><span>At the insistence of Democrats, the Flint agreement has been attached to a Senate energy bill introduced by Sen. Murkowski, S. 2012, which is next in line in the Senate following the opioid addiction bill. &nbsp;The energy bill will be voted on soon, providing that things moves quickly (not a sure bet, since Dems may want to vote on certain amendments to the opioid bill). &nbsp;Despite these potential hang ups, Senate leadership hopes to wrap up the energy bill by the end of the week – giving them some breathing room before the Senate adjourns for Easter recess by March 21. </span><br><span></span><br><span>While Sen. Cruz lifted his hold on the bill last week, Mike Lee has continued to block movement on the legislation. &nbsp;Sen. Lee is claiming that federal aid is not necessary to deal with Flint: “The state of Michigan has an enormous budget surplus this year and a large rainy-day fund, totaling hundreds of millions of dollars," the Senator said in a statement.</span><br><span></span><br><span>Flint agreement:</span><br><span></span><br><span>The bill provides $250 million to assist the residents of Flint, Michigan and other American cities experiencing critical problems with their water supplies by increasing funding for Drinking Water Act State Revolving Funds and provide start-up funding for the new Water Infrastructure Finance and Innovation Act. &nbsp;It includes:</span><br><span></span><br><span>· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$100 million for Drinking Water State Revolving Funds (SRFs) accessible by any state with a drinking water emergency. &nbsp;It requires states to submit plans explaining how the money will be spent to address the emergency before funding is provided. &nbsp;&nbsp;Funds that remain after 18 months will be distributed to all states under the existing SRF formula. </span><br><span></span><br><span>· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$70 million in funding to back secured loans made under the new Water Infrastructure Finance and Innovation Act (WIFIA). &nbsp;A federal investment of $70 million could support secured loans of up to $4.2 billion to address water and wastewater infrastructure needs across the country, according to Sen. Inhofe’s office. &nbsp;All states and all communities with clean water and drinking water infrastructure needs are eligible for this assistance. </span><br><span></span><br><span>· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$50 million for various in authorized health programs for national use to address and prevent impacts from exposure to lead. </span><br><span></span><br><span>“Flint” is more than Flint</span><br><span></span><br><span>Flint is a crisis of governance – there is a disconnect in the relationship between citizens and government, and it bridges every demographic. &nbsp;Just as the poor drink water so do the wealthy, and when a service as basic and fundamental is undermined to the point that an entire town of nearly a hundred thousands is poisoned by its own government, voters will express themselves, given the chance. </span><br><span></span><br><span>Residents, customers, consumers, taxpayers –- citizens at the end of the day &nbsp;–- are seeing their government in a significantly different light and thus far are voting differently this year accordingly. Donald Trump would not likely be able to put Michigan in play without this new perspective animation politics in Michigan as much as anywhere. </span><br><span></span><br><span>_____________________________________</span><br><span></span><br><span>Upcoming/Recent Updates</span><br><span></span><br><span>• &nbsp;&nbsp;Tues -- &nbsp;Financial Reg. Nominations</span><br><span>• &nbsp;&nbsp;Wed -- &nbsp;SIFIs and the Fed</span><br><span>• &nbsp;&nbsp;Thurs -- Update on Tax Bills</span><br><span></span><br><span>• &nbsp;&nbsp;ERI/Housing</span><br><span>• &nbsp;&nbsp;Intl Tax Reform</span><br><span>• &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span>• &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Michigan and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br><span>Omnibus Situation &nbsp;(Dec. 14)</span><br><span></span><br><span>------</span><br><span></span><br><span>Mike &amp; Co. --</span><br><span>The February jobs report came out this morning better than expected. &nbsp;&nbsp;Once again, the US economy maintained strong job growth without wage gains. &nbsp;Wages fell 0.1 percent in February, but 242,000 positions were added to the economy, marking 72 months of uninterrupted job gains – the longest streak on record. </span><br><span></span><br><span>Additionally, labor participation rose by 1.5 million Americans since November – making it the highest it has been in 16 years (62.9 percent of the overall share of Americans).</span><br><span></span><br><span>The report from Puerto Rico is not as sunny. &nbsp;The territory is still waiting on a Congressional bill designed to handle the ongoing debt crisis on the island. &nbsp;More &nbsp;below.</span><br><span></span><br><span>Best,</span><br><span></span><br><span>Dana</span><br><span></span><br><span>______________________________________</span><br><span></span><br><span>Puerto Rico’s Time Bomb</span><br><span></span><br><span>The Puerto Rican debt crisis has been an ongoing concern for both Congress, Wall Street and the Obama administration for some years now – the territory’s bond ratings have been steadily dropping into the junk category and fell from A- in 2005 to CCC+ last April. &nbsp;At the heart of the matter is $70 billion in bonds that Puerto Rico owes and says it cannot pay on. </span><br><span></span><br><span>Because Puerto Rican bonds are tax exempt in all 50 states and the District of Columbia, making them incredibly popular investments for mutual funds, pensioners, and big banks. &nbsp;Over 20 percent of mutual funds in the United States hold at least some Puerto Rican bonds, with $11.3 billion in portfolio, with a further $15 billion in bonds held by hedge funds. &nbsp;Now that the territory’s bonds are in the “junk” category, pension funds and insurance firms are unable to hold them any longer.</span><br><span></span><br><span>The diverse list of bond holders has thrown a wrench into the plans of those who would rather allow Puerto Rico to default on its obligations – something which would require legislative action (the territory doesn’t have that luxury, unlike states). &nbsp;If Puerto Rico is allowed to renege on its contractual agreements, the argument goes, then it creates a moral hazard for other entities to do the same rather than make the tough choices necessary to honor their obligations. &nbsp;The fact that many of these bonds are essentially held by ordinary Americans (through mutual funds and pensions) makes the argument all that stronger for many representatives. &nbsp;A state hasn’t declared bankruptcy since Arkansas did so in 1933.</span><br><span></span><br><span>Moral hazard is inherent in a debt restructuring deal; here, the path for Puerto Rico toward capital markets after anything of the sort would still be an especially painful one (see: Argentina). &nbsp;Additionally, there are few serious proposals to grant the island full Chapter 9 status. &nbsp;Most opt instead for some form of negotiated haircut agreement combined with extending maturities on the bonds; these proposals are likely to succeed, considering Puerto Rico is almost certainly unable to maintain its bond payment schedule without a restructuring agreement.</span><br><span></span><br><span>Administration Position</span><br><span></span><br><span>Testifying before the House Committee on Natural Resources on Feb 25, Treasury official Antonio Weiss warned lawmakers that Puerto Rico needs “an immediate solution” if it’s to survive past May 1, when a $470 million bond payment is due. &nbsp;Soon after that, on July 1, a $1.9 billion bond payment will come due as well – Puerto Rican representatives have already declared they cannot meet those payments without assistance.</span><br><span></span><br><span>Weiss laid out the administration’s two-part plan: first the territory must be allowed to restructure its debt obligations, second a fiscal oversight board should be established to assist the island with managing its finances. &nbsp;Importantly, Weiss stopped short of advocating for bankruptcy protection for Puerto Rico and told the committee that “an advisory board is not adequate to do the job” alone. &nbsp;</span><br><span></span><br><span>House Democrats voiced concern over the financial oversight board, Rep. Luis Gutiérrez: “They’re saying that there’s a joint responsibility, but it seems to me that all of the responsibility is being weighed on the people of Puerto Rico.” &nbsp;</span><br><span></span><br><span>Meanwhile Republicans claimed that any plan to restructure Puerto Rican debt was a non-starter; a few hours after the hearing the Republican Study Committee announced it would oppose any plan including such a provision. &nbsp;"Changing the rules mid-game would be unfair to Puerto Rico’s creditors who entered into these arrangements with agreed upon terms and would delegitimize future transactions," said RSC Chairman Bill Flores.</span><br><span></span><br><span>Policy Options</span><br><span></span><br><span>Until recently the two parties have maintained starkly contrasting views on how to best deal with Puerto Rico’s debt crisis – Democrats have pushed for a forced debt restructuring, with some calling for the island to be granted Chapter 9 bankruptcy protections, meanwhile Republicans called for a financial oversight council to make the tough fiscal decisions necessary for Puerto Rico to maintain its debt obligations without reneging on its agreements.</span><br><span></span><br><span>The administration, through Weiss, has advocated a middle of the road approach. By adopting both proposals and avoiding the further edges of each (no bankruptcy, and no unaccountable board staffed by Wall Streeters), the administration hopes to find compromise between each group. &nbsp;And it seems like it might work.</span><br><span></span><br><span>Finding Compromise</span><br><span></span><br><span>Recently, however, the conservative stance against debt restructuring has lessened – with some Republicans saying that they could support a PR bill as long as it doesn’t include Chapter 9 bankruptcy. &nbsp;House Natural Resources chair Bob Bishop has been working on a bill for Puerto Rico that does include some element of debt restructuring, and recently said ““I’m sure RSC will be satisfied with what we do … to say that some element of [debt restructuring] could be in there, yeah.” &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span><br><span>The House is still sticking to its end of March deadline set by Speaker Ryan for putting forward a final bill on Puerto Rico on the floor for a vote. </span><br><span></span><br><span>_____________________________________</span><br><span></span><br><span>Upcoming/Recent Updates</span><br><span></span><br><span>• &nbsp;&nbsp;Thurs -- Municipal Finance Caucus</span><br><span>• &nbsp;&nbsp;Fri -- Puerto Rico</span><br><span>• &nbsp;&nbsp;Mon -- FY17</span><br><span>• &nbsp;&nbsp;Tues -- 13 D Regs</span><br><span>• &nbsp;&nbsp;Wed -- &nbsp;TBD</span><br><span></span><br><span>• &nbsp;&nbsp;SBC Nominations</span><br><span>• &nbsp;&nbsp;ERI/Housing</span><br><span>• &nbsp;&nbsp;Intl Tax Reform</span><br><span>• &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span>• &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Michigan and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &nbsp;(Mar. 5)</span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br><span>Omnibus Situation &nbsp;(Dec. 14)</span><br><span>FY 2016 Omnibus Talks (Dec. 10)</span><br><span>Customs Bill &nbsp;(Dec. 8)</span><br><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br><span>Brown on HFT &nbsp;(Dec. 4)</span><br><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br><span></span><br><span>________</span><br><span></span><br><span>Mike &amp; Co. --</span><br><span></span><br><span>In half an hour, the BLS jobs report for February is due to be released. &nbsp;If you'd like an update or have any questions, please let me know. </span><br><span></span><br><span>Meanwhile, amid the most fractious campaign in recent history comes an initiative in Congress that sounds, well, incongruous with the cacophany. &nbsp;A broad and bipartisan group of House members is behind the official launch of a caucus this week dedicated to protecting and expanding the tax exemption enjoyed by municipal debt. </span><br><span></span><br><span>You have to start somewhere and why not with incentives to address the nation's long-neglected infrastructure with tax breaks -- about the only kind of stimulus and jobs measure that can garner bipartisan support? &nbsp;&nbsp;More on the new Municipal Finance Caucus below. &nbsp;</span><br><span></span><br><span>Best,</span><br><span></span><br><span>Dana</span><br><span></span><br><span>_____________________________________</span><br><span>A New Caucus</span><br><span></span><br><span>On Tuesday, Reps. Randy Hultgren and Dutch Ruppersberger announced that they have formed the Municipal Finance Caucus to protect the tax-exempt status of municipal debt and reexamine the way it is treated in financial regulations. &nbsp;In 2015, Hultgren and Ruppersberger sent a letter (reprinted below) to House leadership opposing the President’s proposed 28 percent cap on tax deductions for municipal bonds, signed by over 120 of their colleagues. &nbsp;</span><br><span></span><br><span>Their announcement coincided with the National Association of State Treasurers’ legislative conference in D.C. The same group drafted another letter, signed by more than 600 state and local officials, which urges the leaders of the House Ways and Means Committee and the Senate Finance Committee to reject curbs to the muni exemption. </span><br><span></span><br><span>Who’s in it?</span><br><span></span><br><span>Right now just the founding representatives have declared their official membership, but it’s foreseeable that some of the 120 representatives that signed the letter to House leadership in 2015 will join as well. &nbsp;It’s also seen a s likely that some Senators will want to join the caucus, but the founders haven't made clear if bicameral membership is a priority.</span><br><span></span><br><span>Is it Bipartisan?</span><br><span></span><br><span>Since 2013 Hultgren and Ruppersberger have led bipartisan efforts to draft letters of support for municipal bonds. &nbsp;The signatories to these letters include members from both sides of the aisle. &nbsp;Rep. Ruppersberger focuses mostly on local government and is pretty moderate. Rep. Hultgren is a more orthodox conservative Republican. </span><br><span></span><br><span>What’s the Purpose?</span><br><span></span><br><span>The Caucus plans to defend municipal bonds’ tax exempt status and advocate for regulatory changes which favor those bonds. &nbsp;Proposals to limit the tax-exempt status of these bonds have been floated in recent years. </span><br><span></span><br><span>In addition to calling for the bonds to maintain their tax preferred status, the Caucus will push for the passage of HR 2209, legislation considering municipal bonds as a High Quality Liquid Asset (HQLA) – a particularly contentious issue because of the disagreement over how flexible these liquidity rules should be from a systemic risk perspective. </span><br><span></span><br><span>Positions Taken to Date</span><br><span></span><br><span>The Caucus founders have opposed Obama’s 2015 proposal to cap municipal bond tax exemption at 28 percent. Rep. Hultgren is also a co-sponsor of HR 2209 – the bill to set the liquidity for municipal bond assets at Level 2A (see Update, Feb. 18). &nbsp;Hultgren said the liquidity rules are an example of how regulators misunderstand municipal bonds, specifically the frequent serial structure of the their issuances.</span><br><span></span><br><span>Many investors flock to municipal bonds for security. But some federal regulators trying to shore up the banking system aren't convinced the bonds would be easy to sell in a crisis. </span><br><span></span><br><span>Division of Opinion</span><br><span></span><br><span>Division of opinion on HR 2099 falls along unusual lines, with Wall Street, Congress and municipal officials challenging bank regulators' skepticism toward municipal debt. &nbsp;&nbsp;At issue are new rules aimed at ensuring banks can raise enough cash during a financial-market meltdown to fund their operations for 30 days. The requirements mean banks have to hold more cash or securities that are easily sellable. </span><br><span></span><br><span>Regulators don't think it is the place of Congress to second guess how they size up securities. Fed Chairwoman Janet Yellen, at a congressional hearing Feb. 11, said legislation would "interfere with our supervisory judgments." </span><br><span></span><br><span>Big banks such as Citigroup Inc. and Wells Fargo &amp; Co. have sprung into action in lobbying Congress, along with municipal leaders who fret the rules will diminish bank bond-buying which could raise borrowing costs on infrastructure projects.</span><br><span></span><br><span>Hultgren also said the caucus will work to update the number of projects that could be financed by qualified small issue manufacturing bonds, a type of private-activity bond whose proceeds can be used to finance manufacturing facilities for small- and mid-sized manufacturers. The tax code provisions on small industrial development bonds have not been changed since the 1980s, he said. Hultgren sponsored a bill last year entitled “The Modernizing American Manufacturing Bonds Act,” which was focused on expanding opportunities for qualified small issue manufacturing bonds, particularly by changing the national volume cap set by Congress. </span><br><span></span><br><span>What can be achieved?</span><br><span></span><br><span>Caucuses such as this one don't have the best reputation when it comes to getting things done. &nbsp;But rules relating to the liquidity value of capital is one of the few policy &nbsp;areas of any kind where there is bipartisan agreement. &nbsp;Municipal bonds, in particular, have a universal appeal because of their direct link to local and state infrastructure projects. &nbsp;At the very least, the caucus will spark some discussion about the best way to both reform existing methods for funding infrastructure investment and find new ways to fund it. </span><br><span></span><br><span>_________________________________</span><br><span></span><br><span>Recent/Planned Updates</span><br><span></span><br><span>• &nbsp;&nbsp;Thurs -- Municipal Finance Caucus</span><br><span>• &nbsp;&nbsp;Fri -- Puerto Rico</span><br><span>• &nbsp;&nbsp;Mon -- FY17</span><br><span>• &nbsp;&nbsp;Tues -- 13 D Regs</span><br><span>• &nbsp;&nbsp;Wed -- &nbsp;TBD</span><br><span></span><br><span>• &nbsp;&nbsp;SBC Nominations</span><br><span>• &nbsp;&nbsp;ERI/Housing</span><br><span>• &nbsp;&nbsp;Intl Tax Reform</span><br><span>• &nbsp;&nbsp;EU/US Derivatives Deal</span><br><span>• &nbsp;&nbsp;Pension Crisis</span><br><span></span><br><span>Municipal Finance Caucus &nbsp;(Mar. 4) </span><br><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br><span>International Tax Status &nbsp;(Feb. 11)</span><br><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29</span><br><span></span><br><blockquote type="cite"><span>On Mar 2, 2016, at 9:39 PM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Mike &amp; Co. --</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>I hope everyone's had a chance to reflect on the magnitude of yesterday's hard fought primary wins -- with gratitude to those who toiled in the field. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>On Saturday night, the campaign debate turns to Flint, Michigan -- to the town and the issues it has come to symbolize. &nbsp;&nbsp;The town's water contamination and related problems finally move center stage. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Congress has moved with uncommon alacrity and bipartisanship in recent weeks on legislation to direct funding to address the water issue in Flint and elsewhere. &nbsp;&nbsp;Here, we look at the bill's provisions, its funding steam, and its prospects. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Best,</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Dana</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The Flint Bill -- Provisions &amp; Prospects</span><br></blockquote><blockquote type="cite"><span>A bipartisan deal has been reached in the Senate last week to aid the beleaguered city of Flint, Michigan as it tries to remedy its drinking water issues. &nbsp;Sen. Inhofe, the lead GOP Senator on the bill, called it “common-sense," and noted that the spending is already programmed and involves no supplemental appropriation. &nbsp;&nbsp;The bill may be ready to move forward after Sen. Cruz lifted a hold he had placed on the bill last week. &nbsp;Sen. Mike Lee is still a hold-out. </span><br></blockquote><blockquote type="cite"><span>The bill provides $250 million to assist the residents of Flint, Michigan and other American cities experiencing critical problems with their water supplies by increasing funding for Drinking Water Act State Revolving Funds and provide start-up funding for the new Water Infrastructure Finance and Innovation Act. &nbsp;It also provides:</span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;$100 million for Drinking Water State Revolving Funds (SRFs) accessible by any state with a drinking water emergency. &nbsp;It requires states to submit plans explaining how the money will be spent to address the emergency before funding is provided. &nbsp;&nbsp;Funds that remain after 18 months will be distributed to all states under the existing SRF formula. </span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;$70 million in funding to back secured loans made under the new Water Infrastructure Finance and Innovation Act (WIFIA). &nbsp;A federal investment of $70 million could support secured loans of up to $4.2 billion to address water and wastewater infrastructure needs across the country, according to Sen. Inhofe’s office. &nbsp;All states and all communities with clean water and drinking water infrastructure needs are eligible for this assistance. </span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;$50 million for various in authorized health programs for national use to address and prevent impacts from exposure to lead. </span><br></blockquote><blockquote type="cite"><span>Where will the money come from? &nbsp;&nbsp;The package has been fully paid for -- it redirects appropriations by taking funds from the Advanced Technology Vehicles Manufacturing (ATVM) Fund, which offers loans for auto companies. </span><br></blockquote><blockquote type="cite"><span>Does that matter? &nbsp;&nbsp;Per Sen. Inhofe “[the ATVM is] a failed program that hasn’t been used in more than a year and has only issued five loans since 2008."</span><br></blockquote><blockquote type="cite"><span>More on ATVM: The ATVM program is authorized to award up to $25 billion in loans; there is no deadline for completing such loan commitments. Congress funded the program in 2009, when it appropriated $7.5 billion to cover the subsidy cost for the $25 billion in loans, as well as $10 million for program implementation. Since the start of the program, DOE has awarded $8.4 billion in loans to five companies. As of January 2015, ATVM has $16.6 billion in remaining loan authority. No new loans have been made since 2011. Two companies — Fisker and the Vehicle Production Group — were unable to make payments on their loans, and DOE auctioned the loans off in the fall of 2013. Tesla paid off all of its loan in 2013, nine years ahead of schedule. </span><br></blockquote><blockquote type="cite"><span>Criticisms of ATVM: The unobligated funds remaining for the program have been a point of contention in recent appropriations debates. The House has voted several times to transfer some of the unused appropriation for the ATVM subsidy costs to other purposes. None of these transfers were enacted. Other legislators have sought to expand the program. Two recent federal reports call for rescinding the program’s unobligated balance: the FY2015 budget resolution reported by the House Budget Committee calls for outright rescission, and an April 2014 GAO report recommends Congress consider taking the same step unless DOE can generate new demand for the program.</span><br></blockquote><blockquote type="cite"><span>Legislative Strategy: &nbsp;&nbsp;Architects of the bipartisan deal put out a hotline request to see if anyone would object to a series of procedural moves that would split Flint aid off the energy bill (S. 2012), attach it to a House bill (H.R. 4470) sponsored by Reps. Dan Kildee and Fred Upton, allow voice votes on 30 amendments to the energy bill, and allow roll call votes on eight additional amendments. Michigan Sens. Debbie Stabenow and Gary Peters said Democrats are on board, but in order to achieve unanimous consent, Republicans need to sign on. </span><br></blockquote><blockquote type="cite"><span>Will it pass? &nbsp;The Flint package and the energy bill amendments would come to a vote only after the Senate gets unanimous consent to some procedural maneuvers. Lee's hold went unnoticed earlier when GOP presidential candidate Sen. Ted Cruz had a hold of his own, which he has now lifted. The Senate had hoped to hold votes on Flint and end debate on the energy bill as early as next week. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span><br></blockquote><blockquote type="cite"><span>What’s Next? &nbsp;&nbsp;Sen. Stabenow, a key leader on the bill, predicted that “one way or another” the package would be voted on in the Senate this week. &nbsp;And while the House hasn't decided what it will do if the Flint bill clears the Senate, Energy and Commerce Committee Chairman Fred Upton said it would move quickly.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The Obama administration, which declared Flint a federal emergency in January freeing up much-needed funds for the distressed city, has not issued an official stance on the Flint deal. &nbsp;Early in the year the President also made available to the state of Michigan $80 million from a revolving fund for infrastructure repair and improvement. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>A number of important events are scheduled for the month of March, listed below.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;March 3 -- Flint is supposed to begin its lead service line replacement project.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;March 6 -- The 7th Democratic debate will take place in the city of Flint, MI. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;March 15 -- &nbsp;House Committee on Oversight and Government Reform will hold its next hearing on the Flint crisis. &nbsp;On schedule is testimony on the Safe Drinking Water Act (SDWA) by various policy professionals.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;March 17 -- &nbsp;Hearings resume on SDWA oversight, with Michigan Governor Rick Snyder and EPA Administrator Gina McCarthy scheduled to testify.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Wed -- Flint </span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Thurs -- Municipal Finance Caucus</span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Fri -- Puerto Rico</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Budget Irresolution</span><br></blockquote><blockquote type="cite"><span>• &nbsp;13 D Regs</span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;ERI/Housing</span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Intl Tax Reform</span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;EU/US Derivatives Deal</span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Pension Crisis</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Flint Bill: &nbsp;Provisions &amp; Prospects (Mar. 2) </span><br></blockquote><blockquote type="cite"><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br></blockquote><blockquote type="cite"><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br></blockquote><blockquote type="cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br></blockquote><blockquote type="cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type="cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquote type="cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Mike &amp; Co. </span><br></blockquote><blockquote type="cite"><span>This has been a busy week in Washington especially on the tax front, with more to follow. &nbsp;We've already seen a number of hearings and developments on the most salient current tax bills and related proposals in the last two days, which are &nbsp;itemized and vetted for viability below.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Tomorrow, an assessment of which of these, as well as "must-pass" tax items such as the expiring extenders, will make it to Obama's desk by year-end and a review of Brookings' panel discussion, "Tax policy in 2016: What's new and what's next," with Ways and Means Chair Kevin Brady and Senate Finance ranking member Ron Wyden. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Best,</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Dana</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>______________________________________</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• International Tax Reform --</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Probably the most likely tax legislation to pass in 2016, even though it's still called unlikely by key policymakers. &nbsp;The two parties will have difficulty coming to an agreement on first what to do and then how to do it. &nbsp;Narrower legislation is more likely to succeed than comprehensive reform. &nbsp;Most viable bills in this area:</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Earnings Stripping -- &nbsp;On the eve of today’s Ways and Means hearing regarding international tax reform, &nbsp;ranking member Chris Van Hollen and senior member Sander Levin offered bills to constrain the practice whereby foreign parent companies extend large loans to their newly acquired U.S. partners and take advantage of the tax-deductible status of interest payment arrangement. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>•. Exit Tax Bills -- &nbsp;Bills seeking to reduce corporate inversions by making them too expensive to make business sense are likely to be introduced before next recess. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Repatriation -- &nbsp;Ryan and Schumer have talked up the idea of introducing legislation to repatriate U.S. multinational profits that are held abroad. &nbsp;A compromise will have to be struck between Democrats seeking reduced tax levels for this purpose and Republicans who cite moral hazard. &nbsp;The Obama budget for FY2017 includes a proposal to allow overseas profits to come home at a special 14 percent trate, and all overseas profits thereafter be taxed at 19 percent. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Broader Corporate Tax Reform &nbsp;-- &nbsp;&nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Any successful across the board corporate tax reform would almost have to lower the nominal corporate tax rate of 35 percent. &nbsp;-- the highest in the world. &nbsp;Republicans are adamant that the high rate yields corporate inversions. &nbsp;Ways and Means chair Brady has pointed to the corporate rate repeatedly as a sign that the U.S. has a “broken tax code that discourages investment and growth.” </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Brady has not yet released his own reform bill, but an op-ed of his published this morning gives an indication of what it will include: &nbsp;“We must address the real root of the problem – our broken tax code that discourages investment and growth … Our sky-high 35 percent corporate tax rate bears much of the blame … We cannot allow American taxpayers to foot the bill for tax revenue grabs in Europe and elsewhere.”</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Provisions to look for: a lower overall corporate tax rate, language to address European investigations on U.S. businesses dodging taxes abroad. &nbsp;The bill likely won’t include language restricting inversions. &nbsp;</span><br></blockquote><blockquote type="cite"><span>Senate Finance chair Hatch has suggested writing legislation to make dividends tax deductible for corporations, eliminating the so-called “double taxation” of hitting corporate earnings as well as dividend incomes from investors. &nbsp;The proposal faces long odds. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Earned-Income Tax Credit (EITC) -- </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>One tax provisions in the Obama FY17 budget that has been muted if not mooted this week is his proposal to expand the EITC for childless workers and create a $500 “second earner” tax credit. &nbsp;The cost would be $150 billion over ten years. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>During his SOTU, Obama expressed his desire to work with Speaker Ryan on the issue: &nbsp;“I also know Speaker Ryan has talked about his interest in tackling poverty. America is about giving everybody willing to work a chance, a hand up. And I’d welcome a serious discussion about strategies we can all support, like expanding tax cuts for low-income workers who don't have children.”</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The credit is a long-standing darling of both progressives and the GOP establishment. Ryan and President Obama support extending it to childless workers. &nbsp;But they face resistance from not just the hard right but from Sen. Hatch, who say it’s not “necessary” to expand the break. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Derivatives Agreement w. EU</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Budget (Ir)Resolution</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Puerto Rico</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Econ. Revitalization/Housing</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Top Tax Bills Handicapped &nbsp;(Feb. 24)</span><br></blockquote><blockquote type="cite"><span>Bigger than the Budget Battle &nbsp;(Feb. 23)</span><br></blockquote><blockquote type="cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br></blockquote><blockquote type="cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type="cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquote type="cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>----</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Mike and Co. --</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The soap opera that is the federal budget making process saw sone minor prima donna pratfalls this week. &nbsp;Nothing remotely on the scale of blocking the confirmation of a Supreme Justice. &nbsp;But as Senate Budget's ranking member Sen. Cardin warned at a breakfast today, you can forget regular order on the budget -- after the President submits a nomination, all comity in the Senate will be gone until Election Day. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Details and the latest below. &nbsp;Taxes tomorrow (be still your heart, right?). </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Best,</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Dana </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Story in the Senate</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>At the same DSCC &nbsp;breakfast one month ago, Sen. Merkley announced that, to his surprise, Senate Budget Chair Mike Enzi was going to put out a manager's mark for an FY17 budget resolution for Committee markup, for February. &nbsp;Today, Enzi withdrew his markup plans, without announcing a reschedule date.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>To add to the growing problems within the GOP, the party, led by Senator Mitch McConnell, has declared all-out war on Obama’s impending Supreme Court nomination -- an "nomination abomination" -- making it even more difficult to predict how these budget deliberations will end. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Histrionics of the House </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Even before Obama released his FY2017 budget proposal earlier this month, House Republicans made it a point to emphasize that it was DOA. &nbsp;Now, GOP is running into some dead ends of its own. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Speaker Ryan announced early on that he intended to pass the budget through regular order this year -- a process that hasn’t been successfully completed in a generation. &nbsp;Due to internal dicisions and outside pressures, House Republicans have changed their tune. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Yesterday, House Budget announced plans for a proposal next month to stick with the spending levels set by last fall’s deal with the White House while also giving members the chance to vote on other bills that would slash government spending. The compromise is meant to appease hard-right GOP members who vehemently opposed the Obama-Boehner budget agreement. &nbsp;Per Ryan's office: “This proposal enjoys the overwhelming support of the committee members, and the chairman looks forward to sharing it with the broader Conference as we continue moving this process forward.”</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The conservative Freedom Caucus so far has supported Speaker Ryan’s overtures for cooperation on the budget. &nbsp;But the GOP's hard-right wing may not remain so understanding of the Speaker’s position, especially if their credentials are called into question by outside groups with sway over their base of support. &nbsp;&nbsp;Heritage Action said Monday that the group would oppose any budget blueprint that sticks to the Obama-Boehner deal, which increases spending by about $30 billion.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Going Forward </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>It won't be an easy road ahead on the budget. &nbsp;&nbsp;The conservative caucus has several dozen members, which gives it the power to torpedo any budget proposal that lacks at least some Democratic support. &nbsp;If it decides to back the new proposal put forth by Chair Tom Price of House Budget, it would be likely for GOP leaders to be able to move forward. &nbsp;Some members have voiced their willingness to cooperate, but the pull of outside right-wing groups may prove to be too strong.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Meanwhile, Minority Whip Steny Hoyer said today that any Republican budget strategy that strays from the Obama-Boehner deal would be opposed by House Democrats. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The House Budget plan is to submit the proposal honoring the spending limits agreed to last year, while allowing the hard-right GOP wing to vote on other bills which would slash spending, mollifying the more hawkish members. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Dearth of Legislative Days</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Lengthening the odds against Ryan, the House Budget is now working on a delayed schedule. &nbsp;In mid-January, the House Budget Committee announced that it would be releasing its markup of the White House budget proposal early -– on February 25. However, that has also changed. Yesterday, The Committee announced that it was now delaying its markup till sometime in March. &nbsp;The change is curious for a few reasons. &nbsp;It raises the question of why the House Budget Committee said it would have the markup done so early in the first place. Moreover, it goes against the House Republicans message of “getting things done” during this Congress. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Democrats are jumping on this delay already. &nbsp;Nancy Pelosi said: “Yet again, it’s the Speaker’s own broken promises – and his own rhetoric – that are coming back to bite him. &nbsp;Because while the Speaker pledged an end to dysfunctional House-Republican leadership, all the American people are seeing is more of the same.” &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>One thing is looks increasingly likely: that the nomination will exert a tidal force on at least the budget deliberations and everything else, through the election. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Tax Talk</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Derivatives Agreement w. EU</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Puerto Rico</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Econ. Revitalization/Housing</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br></blockquote><blockquote type="cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type="cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquote type="cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Mike &amp; Co. --</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>One week ago, the House passed a bill that could alter and perhaps ease the way state and local infrastructure is financed in the capital markets, when HR.2209, a bill to "require the appropriate Federal banking agencies to treat certain municipal obligations as level 2A liquid assets, and for other purposes" was adopted by the House with a voice vote. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Thought the bill has flown below the media radar, it is significant. &nbsp;Municipal obligations, including bonds, are at the heart of infrastructure investment in America. &nbsp;And infrastructure investment has been a large focus of this primary. &nbsp;Both Democratic candidates have proposed multi-hundred billion dollar infrastructure investment proposals.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Details below...</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Best,</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Dana</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Infrastructure is mostly funded at the state or local level through the use of municipal bonds. &nbsp;Between 2003 and 2012, counties, states, and other localities invested $3.2 trillion in infrastructure through long-term tax-exempt municipal bonds, 2.5 times more than the federal investment. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The Bill</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>HR 2209 requires federal banking regulators to include municipal bonds under the Liquidity Coverage Ratio (LCR). &nbsp;The LCR is designed to ensure that financial institutions have the necessary assets available to handle a liquidity disruption. &nbsp;Local officials have said that if the new rules aren’t changed, it will saddle them with higher borrowing costs by eliminating incentives banks have to purchase their bonds. Without bonds, these governments will lose a significant source of their funding. &nbsp;Per Indiana State Treasurer Kelly Mitchell: “This bill helps ensure cash-strapped school districts and municipalities will continue to have access to bonds to finance projects they think are best for their communities.” </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Rep. Luke Messer, an Indiana Republican who wrote the bill: &nbsp;“Put simply, our bill requires the federal government to recognize the obvious, that our municipal bonds are some of the safest investments in the world and that we shouldn’t have rules that give preferential treatment to corporate bonds or other countries’ bonds over our own.” </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>After passing the House with unanimous bipartisan support, a companion bill is expected to be introduced in the Senate this year. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Municipal Bond Issue</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>After the crisis of 2008, federal regulators adopted international banking standards that require banks to have enough "High-Quality Liquid Assets" to cover their cash outflows for 30 days in case of a future financial meltdown. &nbsp;Now, municipal bonds are not considered liquid assets and therefore cannot be included under the &nbsp;LCR. &nbsp;&nbsp;As a result, financial institutions have been discouraged from holding municipal debt, which means that cash strapped municipalities and school districts may eventually be forced to reduce or even stop work on projects &nbsp;financed with municipal bonds. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Infrastructure Financing -- Alternative Financing</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Tax-exempt bonds: &nbsp;Exemption from federal taxes and many state and local taxes is possible through the use of municipal bonds. &nbsp;&nbsp;In recent years, with the increasing use of PPPs, barriers to this tax exemption have arisen. &nbsp;Treasury has reviewed relevant tax rules and based on their findings and have put forth a proposal for an expanded and permanent America Fast Forward Bond Program as an alternative to tax-exempt bonds. &nbsp;Based on the successful Build America Bond program, “would provide an efficient borrowing subsidy to state and local governments while appealing to a broader investor base than traditional tax-exempt bonds [and] would cover a broad range of projects for which tax-exempt bonds can be used.” </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Obama’s budget proposal: &nbsp;Obama has also put forth a plan to strengthen local and state government infrastructure projects. His plan relies on a new Federal credit program to support public-private partnerships within the Department of the Treasury. It will provide direct loans to US infrastructure projects developed through PPPs. The Obama Administration believes that private investment is crucial for infrastructure development moving forward, so there should be more flexibility in regards to what PPP is subject to. In addition to that, President Obama has proposed the taxable, direct-pay America Fast Forward bond program to help finance infrastructure. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>State Infrastructure Banks</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Local governments receive financing in a number of ways. &nbsp;Traditional sources such as tax revenues have been dwindling and local authorities have been relying on federal government loan programs, public-private partnerships, and State Revolving Funds (SRFs). &nbsp;State Infrastructure Banks (SIBs) are a subset of SRFs -- the funds act like a bank, because they don’t own the infrastructure asset, but act as a lender or guarantor to the project sponsor. Per Brookings: &nbsp;“SRFs rely on principal repayments, bonds, interest and fees to re-capitalize and replenish the fund as a perpetual source of debt financing.”</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>SIBs generate more investment per dollar than traditional federal and state grant programs. &nbsp;They only exist in 33 states and 10 of those SIBs are currently inactive. A large problem may be compliance with federal regulations. &nbsp;Brookings again: </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>“We found that many SIB officials cite compliance with federal regulations as slowing down the investment process either because of environmental and contractual requirements or due to the lack of flexibility in projects that are not Title 23 or 49 eligible. For states with smaller projects, this may be prohibitively costly compared to the advantage of using the low-cost SIB financing.” </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Just being called a bank subjects SIBs to regulations that commercial banks are subject to. &nbsp;SIBs are non-for-profit organizations with a goal of increasing infrastructure investment, so they don’t quite fit into the category of the average bank. &nbsp;SIBs may be more successful outside this classification. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>For or Against Dodd-Frank</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Before Dodd-Frank, particularly in the case of relatively small municipalities, many underwriters forged long-term relationships with municipalities and would provide financial advice before and after a bond issuance. &nbsp;With Dodd-Frank, that relationship changed, with a new “municipal adviser” category that must register with the SEC and be regulated by the Municipal Securities Rulemaking Board (MSR). &nbsp;Now, it is widely illegal to provide advice to governmental entities concerning the issuance of municipal bonds, the use of financial derivatives, and the investment of the proceeds of a bond issue to, or on behalf, of a municipal entity or an obligated person unless the adviser is registered with the SEC. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>HR 2209 appears to address a problem within Dodd-Frank, but it is unclear if it vitiates the law materially. &nbsp;At face value, it appears to be more a technical fix. Dodd-Frank expanded regulations for banking institutions, but the entities that fund state and local governments are far unlike the TBTF institutions that Dodd-Frank was meant to regulate. &nbsp;&nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Groups like Americans for Financial Reform oppose HR 2209: “While we sympathize with the belief that municipal debt was incorrectly treated under the initial LCR rule, we believe that it is inappropriate to classify such debt as a Level 2A asset. AFR therefore opposes this bill unless a more appropriate liquidity classification is used.” &nbsp;AFR has previously said it supports treating municipal bonds as more liquid and does not approve the type of classification used in HR 2209, because it goes too far in its treatment of municipal debt as level 2A liquid assets and specifically with micromanaging regulators with this kind of detail and they prefer a Level 2B classification. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The bill could provide relief for smaller institutions, so that they can fund infrastructure investment more easily. In terms of Dodd-Frank, it is yet to be decided if it is simply a necessary tweak or a criticism. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Looking Ahead</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>HR 2209 could end up being an important issue in the national infrastructure discussion. &nbsp;It brings up questions about how far a state or local government can go before its activities begin to resemble an actual bank. &nbsp;With the growth of PPPs, the private sector is being even more integrated into the process – should those companies be given tax exemptions, as well? </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Derivatives Agreement w. EU</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Budget (Ir)Resolution</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Puerto Rico</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Econ. Revitalization/Housing</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Infrastructure Finance Update &nbsp;(Feb. 18) </span><br></blockquote><blockquote type="cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type="cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquote type="cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>----</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Mike &amp; Co. &nbsp;--</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The newly-installed the Minneapolis Federal Reserve Bank and former Special Investigator overseeing the TARP program came to town yesterday advocating drastic action to head off a financial sector systemic risk crisis, calling for the nation's biggest banks to be broken up. </span><br></blockquote><blockquote type="cite"><span>His speech, delivered at Brookings, got noticed, with lengthy coverage in the NYT, WSJ, and WaPo. &nbsp;And perhaps with reason -- the TBTF (too big to fail) issue has dogged Congress and the administration for years and is one of the central ones in the Democratic presidential campaign this far. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Or maybe it was just a slow news day. &nbsp;You decide...</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Best, </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Dana</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>A Peculiar Package of Proposals</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Kashkari argued in the alternative that Dodd-Frank needs to be used and/or needs to be reformed. &nbsp;He says the law as written does not solve the TBTF problem. &nbsp;He also wants regulators to use the yet-untried tools at their disposal under the law. &nbsp;&nbsp;“While significant progress has been made to strengthen our financial system, I believe the [Dodd-Frank] Act did not go far enough." &nbsp;He then laid out three ideas meant to end TBTF once and for all. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;break up large banks into smaller, less connected, less important entities;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;turn what remains of the large banks into public utilities by forcing them to hold so much capital that they can’t fail; and</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;tax leverage throughout the financial system "to reduce systemic risks wherever they lie."</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Break up the Banks</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>From the perspective of current laws, breaking up big banks is already a policy avenue available to regulators. &nbsp;The Federal Reserve, through the Financial Stability Oversight Council, can elect to take a number of actions to deal with banks that it feels are both systemically important and organized in an unstable way. &nbsp;Section 121 of the Dodd-Frank Act gives the Board of Governors these powers. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>So this first proposal – break up big banks - has been covered here before but just for the sake of argument... which banks need to be broken up most urgently? &nbsp;Few commentators believe there is an imminent threat demanding action. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Unsurprisingly, the Fed doesn’t believe that banks are so hopeless that they need to be dissolved. &nbsp;That doesn’t mean it’s not a possibility under current legislation, however.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Make Banks “Utilities”</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The second proposal is to push capital requirements for banks so high that they “essentially turn into public utilities.” &nbsp;Kashkari never explains how exactly high capital reserves turn banks into utilities, but that’s for another time. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>He is voicing his support for one of the oldest forms of banking regulations that we still use and use far more now in the Dodd-Frank era – he wants banks to hold more capital. &nbsp;Supporters of the law may be heartened by his full-throated endorsement of the law on this score. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;&nbsp;Cribbing from Clinton?</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The third proposal was just about lifted out of Secretary Clinton’s plan to regulate Wall Street –- though the reporting on the speech doesn’t much mention it much. &nbsp;It is reasonable both from a policy and a political perspective. But he doesn't provide further details about his proposal after first outlining it.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Kashkari contra Yellen</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Fed Chair Yellen has been an outspoken proponent of existing banking regulations, making it known that while the job of regulators is not done yet. we’re in a much better situation now than we were before DFA. &nbsp;During her testimony before House Financial Services, Yellen fielded a question about why she had not yet broken up big banks, saying: “…we [at the Fed]vare using our powers to make sure that a systemically important institution could fail, and it would not be -- have systemic consequences for the country. We're doing that in a whole variety of ways.” &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The ways Yellen is referring to include enforcing Liquidity Coverage Ratios, capital reserve requirements, and a rule passed last November forcing the biggest banks to issue long-term debt equal to 18 percent of risk-weighted assets. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Evidently it's not enough. &nbsp;But it is nonetheless uncommon for a newly minted Federal Reserve Bank President to taking to task the Chair of the Federal Reserve’s Board of Governors.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Municipal Bond Rule</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Budget (Ir)Resolution</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Puerto Rico</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Derivatives Agreement w. EU</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Econ. Revitalization/Housing</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Does DFA Fail on Too Big to Fail? (Feb. 17)</span><br></blockquote><blockquote type="cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquote type="cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Mike &amp; Co. &nbsp;--</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>A national holiday, a snowstorm, and a congressional recess stilled DC yesterday and a quiet week is expected. &nbsp;It gives us a chance to have a look at some developments thus far this year that have flown below the radar.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Today's item is the one bill on its way to the President’s desk -- the Customs bill -- and the caboose attached to it that extends the internet tax moratorium permanently &nbsp;and may be the bill's important title... at least until the TPP comes up on the Senate floor. </span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Best,</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Dana</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The Customs Bill: &nbsp;Comity on the Hill</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The Senate cleared the first overhaul of the Customs and Border Protection (CBP) agency in more than a decade in a 75-20 vote last Thursday, sending the bill to the President and ending months of wrangling over the measure. &nbsp;The Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) retools CBP to increase its focus on blocking illegal trade and ensuring that legal trade moves smoothly.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The major facets of this legislation are:</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;new protections on intellectual property rights</span><br></blockquote><blockquote type="cite"><span>• &nbsp;new tools to fight currency manipulation</span><br></blockquote><blockquote type="cite"><span>•. a permanent extension of the Internet Tax Freedom Act</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Said Senate Finance ranking member Ron Wyden: &nbsp;“This bill is about coming down hard on the trade cheats who are ripping off American jobs, and the truth is past trade policies were often too old, too slow or too weak for our country to fight back."</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Wyden was perhaps the most outspoken Democrat in support of the bill, continuing his role as a strong backer of free trade legislation. &nbsp;He was a key factor in getting Trade Promotion Authority legislation passed through Congress last summer, splitting from some of his colleagues in voicing support for that act.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Unusual Coalition</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>27 Democrats, 47 Republicans, and 1 Independent voted affirmatively. &nbsp;Industry groups including the National Retail Federation, as well as the U.S. Chamber of Commerce were supportive of the legislation. &nbsp;National Association of Manufacturers’ president Jay Timmons said “if senators want to grow manufacturing in the United States, then they should pass this bill immediately.”</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Notable “Nay” votes include Sens. Durbin and Reid, who both expressed disappointment that the legislation was a “watered down” version of a bill previously passed by the Senate. &nbsp;”I like that [Senate] version, and that strong language on currency manipulation,” Durbin said – that language required Commerce to consider “undervalued” currencies to be equivalent to countervailable subsidies. &nbsp;“The conference report that’s back to us now and before the Senate at this moment is a much different bill."</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Purpose and Provisions</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>House and Senate negotiators agreed on a final customs bill in December. &nbsp;&nbsp;The House passed the measure 256-158 but the legislation stalled in the Senate over a provision added in conference that permanently extends a moratorium on Internet access taxes.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>That provision is perhaps the most reported on section in the bill – it’s almost certainly the most popular - it applies to localities, states, and the federal government itself. &nbsp;&nbsp;Sen. Lamar Alexander cited it though as explanation for his “nay” vote: "the federal government shouldn't be telling the states what their tax structure should be."</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Another important provision, known as the ENFORCE Act, would require the CBP to more aggressively investigate complaints that companies are evading anti-dumping or countervailing duties on imports by mislabeling or disguising the shipments.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The bill includes a new Trade Enforcement Fund to bring trade cases through the WTO, to investigate the implementation of trade requirements by other countries, and to respond to complaints of trade violations. &nbsp;It also creates a nine-member Advisory Committee on International Exchange Rate Policy, whose members must be comprised of individuals from the private sector who are selected by both chambers of Congress and the President (three members each).</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Currency Manipulation</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Currency manipulation has been a long-standing concern of American policy-makers and a particularly contentious issue in global trade relations; claims that China has been chronically undervaluing its currency have made the news for a number of years. &nbsp;Advocates for stricter enforcement of currency manipulation provisions claim that undervalued currencies operate similarly to export subsidies – a prohibited practice within the World Trade Organization.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>The final bill dropped a Senate provision that would have required the Commerce Department to treat undervalued currency as an illegal subsidy under U.S. countervailing duty law. &nbsp;This provision would have opened the door for compensatory tariffs to be levied against goods which originate from countries which are found to purposely undervalue their currency in order to boost their exports. The bill does, however, include other measures that give the Treasury Department new tools to fight currency manipulation:</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;creates a special fund for the CBP to ensure trading partners follow the rules and to bring disputes before the WTO</span><br></blockquote><blockquote type="cite"><span>• &nbsp;increases funding to the National Intellectual Property Rights Coordination Center</span><br></blockquote><blockquote type="cite"><span>• &nbsp;establishes the Commercial Customs Operations Advisory Committee jointly between CBP and Treasury</span><br></blockquote><blockquote type="cite"><span>• &nbsp;requires CBP to investigate claims from other agencies of evasion of anti-dumping or countervailing duties.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Relation to TPP</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Sen. Majority Leader McConnell has said that the Senate will not vote on the Trans-Pacific Partnership before the November elections, so it may come as a surprise to see a bill which deals with enforcing trade deals like TPP pass both houses of Congress. &nbsp;However this bill’s provisions for protecting IP rights, toughening countervailing duties, and tackling currency manipulation are a necessary prerequisite for agreements like TPP (or the far more nebulous TTIP). &nbsp;The new age of trade agreements &nbsp;will deal extensively in issues like intellectual property protection, trade in services, and high-tech product trading; types of commerce which are far more difficult to regulate compared to the trade of physical goods.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>So, despite the fact that TPP won’t get a vote until after November (and perhaps not in 2016 at all), and may not pass even then, the protections set forward in the customs bill are necessary to allow American companies to continue to compete in the global marketplace.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Price of Passage</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>In order to include the permanent extension of the Internet Tax Freedom Act, McConnell had to promise that a vote would be held this year on the Marketplace Fairness Act. &nbsp;That legislation grants states greater authority to collect sales taxes from online businesses who sell products within their borders. &nbsp;While McConnell himself opposes the bill, it was the only way to get the customs bill (with the tax amendment attached) unstuck.</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Just because McConnell has promised it will be brought to a vote doesn’t mean it will be a smooth process - the Senate passed the Marketplace Fairness Act in 2013 with 69 votes, and most of the lawmakers who voted for it are still in the chamber. &nbsp;Some lawmakers like Kelly Ayotte, who is facing a tough reelection campaign this year, have vowed to fight tooth-and-nail against it. &nbsp;Despite these detractors in the Senate, the real battle may occur in the House, where two competing proposals have been brought forward. &nbsp;</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Upcoming/Recent Updates</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>• &nbsp;Municipal Bond Rule</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Budget (Ir)Resolution</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Puerto Rico</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Derivatives Agreement w. EU</span><br></blockquote><blockquote type="cite"><span>• &nbsp;Econ. Revitalization/Housing</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>Below the Radar/Customs Bill &nbsp;(Feb. 16) </span><br></blockquote><blockquote type="cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span>----</span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><span></span><br></blockquote><blockquote type="cite"><blockquote type="cite"><span>On Feb 11, 2016, at 7:47 PM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Mike &amp; Co. &nbsp;--</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>One thing the two parties agree is that international tax reform is a fiscally necessary issue to take up -- that Uncle Sam is leaving hundreds of billions of dollars on the table overseas annually. &nbsp;&nbsp;But they would also generally agree that it is not going to get done this year. &nbsp;</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Under current law, those profits are subject only to federal taxes if they are returned, or repatriated, to the U.S. where they face a top rate of 35 percent. &nbsp;Many companies avoid U.S. taxes on those earnings by simply leaving them overseas.</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>There is bipartisan activity on the issue in both houses of Congress. Obama has a major reform proposal on the table. &nbsp;So is this the year, in the year of surprises?</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Best,</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Dana</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Reforms in the area of international tax deal with both the repatriation of foreign-derived profits and the issue of corporate inversions. &nbsp;Testifying today, Treasury Secretary Jack Lew encouraged the parties in Congress to overcome their differences on both, which he believes surmountable: &nbsp;“I just want to underscore the urgency of dealing with inversions … We can’t wait a year to deal with this,” Lew said during a Senate Finance hearing on the Obama administration’s budget. Congress could pass narrow legislation on inversions, he said, even if broader reform of the international system is preferable. </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Stirrings in the Senate</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Sen. Schumer also announced today that he is in contact with Speaker Ryan about coming to an agreement on repatriating corporate profits. &nbsp;They were unable to come to an agreement last year on a similar measure put forth as part of a larger reform effort. &nbsp;Schumer said today: “We’re trying to bridge over, of course, the divide between existing proposals. &nbsp;I remain at the table ready to work.” &nbsp;</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>One of the key differences between the parties concerns whether the money raised from tax reform should be turn into government revenue for more spending, or used to pay down the debt or pass tax cuts. &nbsp;After the Senate Finance hearing yesterday, Chair Hatch said: &nbsp;“I'm actually working on international, but I just don't think it's going to get done this year, because, you know, let's face it, the Democrats are going to want to raise revenue. &nbsp;They want money to spend.” &nbsp;</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>At that same hearing, Sen. Shelby pushed a corporate integration plan he is developing to eliminate the double taxation of corporate income by providing corporations a dividend deduction. &nbsp;He's awaiting a score by the Joint Committee on Taxation. &nbsp;Dividend deductions are usually quite expensive and regressive, so it will a feat to attract any Democratic support, especially for him. </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Brady's Push </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Meanwhile, Ways and Means Chair Kevin Brady has said that he wants a vote this year on moving the United States into a territorial tax system, which would permanently exempt US-based businesses from paying taxes on income earned abroad. &nbsp;He also wants to lower the corporate rate to 20 percent. &nbsp;In the face of these proposals it is difficult to see what sort of compromise can be found between Democrats and Republicans, as the former may be more preoccupied just keeping alive the idea that foreign profits should be taxed at all. “The goal of these reforms are not to generate more spending,” Brady said. “It’s to bring back real dollars to be reinvested in the United States.”</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Brady has been advocating for international tax reform since he took over Ways and Means. &nbsp;Last month, he spoke with Sen. Hatch and they were both committed to getting something done. &nbsp;Senior Republicans believe the country’s international tax problems — inversions and Europe going after revenues from U.S. companies among them — are urgent. &nbsp;But Brady strongly hinted that all that work would be aimed at setting things up for 2017, when Republicans want “pro-growth tax reform under a Republican president.” Perhaps that’s no huge shock, but it does seem to set up something of a disconnect, given all the talk of urgency.</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Brady and his supporters have been pushing the idea that American money is either being taxed by other countries or being taken over by foreign competitors in an inversion -- typically, when an American company incorporates abroad so its earnings are no longer subject to American taxes. &nbsp;Brady says the result is an erosion of our tax base and a lock-out effect of American capital being “trapped” abroad that can be solved by fixing our uncompetitive tax code.</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Presidential Proposal</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>The President’s FY 2017 budget contains a surprising source of new revenue to pay for its spending programs – a major piece of international tax policy reform: a six-year, $478 billion public-works program for highway, bridge and transit upgrades, half of it to be financed with a one-time, 14 percent tax on U.S. companies’ overseas profits and a 19 percent rate thereafter. &nbsp;The issue of companies holding foreign profits at locations abroad, where they are exempt from taxation until repatriated, has vexed policy makers on both sides for some time. &nbsp;It’s estimated that these profits add up to nearly $2 trillion. </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>The issue of companies holding foreign profits at locations abroad, thereby exempt from taxation unless those profits are brought home, has vexed policy makers on both sides for some time. &nbsp;Microsoft Corp., Apple Inc., Google Inc. and five other tech firms now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas. &nbsp;In keeping with the idea that Obama’s final budget is “more politics than policy,” these revenue-gaining proposals are meant to spark discussion more so than be a model for laws going forward. </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Upcoming/Recent Updates</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>• &nbsp;Customs Bill</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>• &nbsp;Municipal Bond Rule</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>• &nbsp;Budget Irresolution </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>International Tax Status &nbsp;(Feb. 11)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) </span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>On Feb 10, 2016, at 7:41 PM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Mike &amp; Co. --</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Chair of the Federal Reserve went before House Financial Services to provide a report on the nation's economic condition, a kind of bi-annual checkup. No news was made, no fireworks went off and no market mood swings occurred. &nbsp;As for the Fed's next move, it's wait-and-see a little while longer. </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>We thought it might happen in March, signs pointed to it. &nbsp;Now, the guess is June (sound familiar?) &nbsp;For details, don't wait, see below.</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Best, </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Dana </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>----------</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Economic Checkup</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fed Chair Yellen testified before House Financial Services this morning for the Federal Reserve’s bi-annual Monetary Policy Report. &nbsp;These appearances allow Yellen to explain the Fed’s, actually the Federal Open Market Committee (FOMC)’s, analysis and projections regarding America's economic performance as well as to signal the factors underlying its actions in the months ahead. &nbsp;</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The rate change in December 2015 was the first time the Fed raised rates since 2006 -- some worry that even a modest increase in rates at this juncture would further slow already limited economic growth after years of uncertainty.</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Basics</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The bottom line: the FOMC won’t rollback rates in March and it’s not likely to raise them either. &nbsp;The Fed likes what it sees in the labor market, wage growth looks strong, and emerging market missteps continue to be a threat to the US economy but perhaps not an immediate one. &nbsp;The next rate move is almost certain to be an increase but it could wait until June or later. </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Yellen reiterated much of the FOMC statement from last month: &nbsp;the labor market remains strong, but shows some signs of remaining slack, that the low inflation we have seen is caused by “transitory” effects (low energy prices), and that global market uncertainty creates some level of risk for slow growth at home and abroad. &nbsp;Though Yellen did not make a prediction on how long these transitory market effects would last, a number of forecasts for oil prices show the dip lasting through 2016.</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Expanding on global growth issues, Yellen said "These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market, although declines in longer-term interest rates and oil prices could provide some offset," she added: "Foreign economic developments, in particular, pose risks to US economic growth." </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Partisan Review</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The GOP is generally critical of "accommodative" (lower) Fed rates. &nbsp;&nbsp;High-net-worth individuals benefit the most from high rates through dividends and interest from savings. &nbsp;Low rates allow more growth for the middle- and lower-classes at the risk of inflation, tacitly supporting Democrats’ progressive fiscal policy goals. &nbsp;Some conservative economists have gone so far as to blame low interest rates pushed by the Fed in the 1990’s for the market meltdown in 2007, claiming that cheap credit was the cause of the overheated housing market.</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Strong Labor Market</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Discussing the labor market in greater detail, Yellen pointed to the cumulative increase in employment since 2010 of 13 million jobs. &nbsp;The rate in January fell to 4.9 percent, 0.8 points below its level one year ago; measures of labor market conditions such as the number of people who are working part-time but want to move to full-time positions and the number of individuals who want to work but haven’t searched recently are also decreasing steadily. &nbsp;Regarding these broader labor market indicators Yellen testified that “… these measures remain above the levels seen prior to the recession, suggesting that some slack in labor markets remains. Thus, while labor market conditions have improved substantially, there is still room for further sustainable improvement."</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Forward Guidance</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>As always, Yellen was careful not to give hints on what the Fed is planning to do in future meetings; speaking on the path forward for the Fed Funds rate Yellen said “Of course, monetary policy is by no means on a preset course. The actual path of the federal funds rate will depend on what incoming data tell us about the economic outlook, and we will regularly reassess what level of the federal funds rate is consistent with achieving and maintaining maximum employment and 2 percent inflation.”</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Yellen was asked about the chances of the FOMC rolling back the rate hike it announced in December: &nbsp;"I do not expect the FOMC is going to be soon in the situation where it's necessary to cut rates If the FOMC delayed the start of policy normalization for too long, it might have to tighten policy relatively abruptly in the future to keep the economy from overheating and inflation from significantly overshooting its objective. Such an abrupt tightening could increase the risk of pushing the economy into recession." </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Comment on Dodd-Frank</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>During the Q&amp;A portion of her testimony, Yellen was asked about financial regulation, both in terms of breaking up the banks and enforcing the regulations brought on by Dodd-Frank. </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>In response to being asked if the Fed is trying to break up the banks, she responded: "We are using our powers to make sure that a systemically important institution could fail, and it would not have systemic consequences for the country." Her answer was interesting, because she's not outright saying the banks will be broken up or reduced, just that the Fed is trying to ensure that even if they did fail, it wouldn't negatively effect the economy.</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Yellen was also asked about the burden of new Dodd-Frank regulations on banks. She responded: "For our part, we're focused on doing everything that we conceivably can to minimize and reduce the burden on these banking organizations. We've been conducting an EGRPRA review to identify potential burdens that our regulations impose." An EGRPRA review is connected to the Economic Growth and Regulatory Paperwork Reduction Act, which requires regulations imposed on financial institutions to be reviewed by the agencies at least once every 10 years. The purpose is to prevent burdensome regulations that could hinder a bank's ability to serve its customers. </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Bottom Line</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fed watchers make their living by trying to predict what the FOMC will or won’t do at their meetings, and on days when Yellen is scheduled to testify before Congress you can bet that they’re listening intently. &nbsp;While Yellen was careful not to project the Fed’s moves, the general sentiment in the markets is that FOMC won’t be raising rates at its March meeting. &nbsp;The CME Group FedWatch tool, which estimates FOMC rate hikes based on its futures prices, predicts a 95% probability that the Fed will maintain its current rate target in March. &nbsp;Some forecasters go even further -- expecting that the funds rate won’t be raised all year. </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Traders see the ongoing economic struggles of emerging economies, particularly in China, as evidence that the Fed won’t continue with its scheduled 4 rate hikes this year. &nbsp;Certainly, considering the testimony today that 1) continued emerging market uncertainty can weigh down the US economy and 2) that poor performance in the US economy would cause the Fed to change course on its rate hike schedule, a link between poor emerging market performance and fewer Fed rate hikes seems plausible. &nbsp;Certainly the trading on Fed fund futures indicates that the markets believe this is the case.</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>-------</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Recent Updates</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Steady &nbsp;(Feb. 10)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>----</span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>On Feb 9, 2016, at 7:42 PM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Mike &amp; Co. --</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Today, President Obama submitted his eighth and final budget proposal to Congress. &nbsp;It tops the $4 trillion mark for the first time. &nbsp;&nbsp;Despite the historical tendency for lame duck presidential budgets to be treated as scrap paper -- this one won't even be accorded the courtesy of a hearing in House Budget -- there are a few noteworthy proposals and initiatives which, if nothing else, are likely to generate discussion on the Hill and off. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>That’s the real purpose of this budget -- to help frame the debate in 2016 about where America is headed what the nation's priorities should be. &nbsp;A number of the proposals in this budget resonate with issues and themes already being debated. &nbsp;Candidates in particular seeking to emphasize support for or opposition to the President have a new set of proposals at their disposal. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>What is new and noteworthy in the White House budget and what's next for it? &nbsp;Detail below. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Special thanks to those of you in NH tonight. &nbsp;Fingers crossed and stay tuned this way: &nbsp;&nbsp;<a href="http://politi.co/20n5W2w">http://politi.co/20n5W2w</a> </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Best,</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Dana</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>---------</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Obama Administration put forth a myriad of budget proposals revolving around a variety of issues. &nbsp;Below are thoughts on some of the most significant of these from a fiscal and financial regulatory perspective: </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• &nbsp;$10/Barrel Transportation Tax</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>A perennial favorite of Democrats has made a return in the Obama budget: &nbsp;a $10.25 per barrel tax on oil, $319 billion in revenue from which will go toward funding “a 21st Century Clean Transportation Plan to upgrade the nation’s transportation system, improve resilience and reduce emissions." &nbsp;The proposed tax is a simplified version of “carbon taxation” policies, which aim to tax energy producers and oil companies based on the level of pollution they produce; “cap and trade” was a similar policy idea but with more complicated implementation. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The tax will be phased in over five years and levied against oil companies, with the revenue to help fund clean energy initiatives like expanding high-speed rail systems and also to increase national infrastructure spending. &nbsp;The appeal of this flat-tax on oil is its simplicity –- there is nothing complicated about charging oil companies $10.25 per barrel of oil, meaning there’s no way for them to shirk the charge. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Supporting the tax would lend candidates some environmental bonafides, but might be seen as a backdoor &nbsp;tax on the middle-class. Though paid for by oil companies, the &nbsp;price is expected to be passed along to consumers through higher prices. &nbsp;The tax is expected to increase the price of gasoline by 25 cents per gallon.</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• &nbsp;Funding Fin. Reg. Like it Matters </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Obama proposes to double the budget for Wall Street regulators SEC and CFTC over ten years, beginning with an 11 percent increase for SEC and 32 percent for CFTC in 2017. &nbsp;Clinton has a lot to like in this particular section – she’s the only candidate who has defended Dodd-Frank and is campaigning on proposals to strengthen current regulations, including through greater budgets for regulatory agencies. &nbsp;Leaders for both regulators have complained that their responsibilities far outstrip their budget. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The proposal is more realistic than the oil tax, although not necessarily something that will definitely be enacted. &nbsp;The SEC has called for increased funding recently. &nbsp;SEC chairman Mary Jo White asked at a House Financial Services Committee hearing in November for $1.8 billion in funding for fiscal 2017. &nbsp;In a time when Republicans are looking to reduce regulatory burdens against banks, an increase in regulators’ budgets highlights the difference in priorities on Wall Street. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• &nbsp;Boosting R and D</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The budget increases R&amp;D funding by four percent for a total of $152 billion in 2017; among changes are a doubling of clean energy research and funding a $1 billion cancer “Moonshot” research program aimed at eliminating the disease. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• &nbsp;&nbsp;Apprenticeship Training Fund</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The budget establishes a $2 billion mandatory Apprenticeship Training Fund – meant to double the number of apprenticeships across the United States. &nbsp;Only HRC has talked about the need for increasing the number of apprenticeships in the country during the election, favoring a tax-credit policy rather than direct funding. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Congressional Prospects</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Obama’s proposal is not only a prelude to battle. &nbsp;Lawmakers and the administration will have to strike some sort of deal to keep the government running when the current fiscal year ends on Sept. 30 — most likely a continuing resolution to keep the lights on through the election and early into 2017. &nbsp;In a sign that Obama isn’t looking for a knock-down spending fight this year, the president’s proposal abides by the discretionary caps for fiscal 2017 set by last year’s bipartisan budget deal. </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Congressional leadership may have a fight on its hands even without Obama making waves – if the Freedom Caucus membership decides to make its displeasure on the budget known then it could cause rancor amongst the GOP. &nbsp;In a year when the party is desperate to project an image of capable leadership, in part by passing a complete budget for the first time since 1997, a blow-up between Ryan and the back-benchers would amount to nothing less than catastrophe.</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>At a more granular level, Obama’s blueprint is a grab-bag of Democratic priorities. &nbsp;The administration is once again calling for expanding early education in his 2017 budget, asking for more pre-K grants, a child care expansion and a small boost to Head Start. &nbsp;The budget boosts spending for Obamacare Medicaid expansion by $2.6 billion over a decade, designed to be an enticement to the 19 holdout states that have yet to take effect.</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Republicans and the Budget</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Republicans have a different plan for the budget this year, naturally. &nbsp;Speaker Ryan has stated that he intends to pass the budget and all 12 appropriations through the house -- a feat that hasn't been accomplished in two decades.</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Republicans have a different plan for the budget this year, naturally. &nbsp;Speaker Ryan has stated that he intends to pass the budget and all 12 appropriations through the house - a feat that hasn't been accomplished since 1997. &nbsp;Although Ryan and the GOP House leadership hope to gain the faith of the American people back by bringing about the return of regular order, they face a tight calendar and the political implications of an election year -- not to mention internal opposition in the form of the Freedom Caucus. &nbsp;Should the back-benchers feel their concerns aren’t being adequately addressed, they may try to disrupt the passage of appropriations bills. &nbsp;The care and feeding of these members on budget matters may be turn out to be one of the toughest challenges Ryan will face this year.</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>-----------------</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Recent Updates</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Obama's FY17 Budget &nbsp;(Feb. 9) </span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>On Feb 3, 2016, at 7:09 PM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Mike &amp; Co. --</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Upbeat tax talk is as common this time of year as predictions that this year the Cubs will win the World Series this fall. &nbsp;The word is that Messrs. Ryan and McConnell want to run a smooth, efficient, maybe even a productive ship this year on the theory that voters will reward the GOP in November and that they will forget the record of the last seven years. &nbsp;The Speaker and the President have had a recent meeting and mini-meeting of the minds on taxes. &nbsp;That might create the right climate for passage of broad tax reform. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>But really the gravitational pull is not toward gravitas, but away from the center, away from the Hill itself. &nbsp;The GOP presidential nominee might very well have to run against any bipartisan ("Washington") compromise on tax policy, making for an embarrassing intraparty policy conflict at the time the leadership most needs to project unity.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Amid the turbulence of the broader campaign, where do the various tax discussions in the Hill stand, what bills night come up for votes, is there anything that might pass?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Best,</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Dana</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>________________________________</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Forms of Reform under Discussion</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• Comprehensive -- Defined as involving a bipartisan trade-off between lowering taxes and broadening the base; closing exemptions, deductions, credits, etc. &nbsp;Both Democratic candidates have outlined plans to reduce loopholes, such as the "Romney loophole" and the "Bermuda loophole," which allow very rich Americans to avoid paying their fair share. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• Corporate -- Many of the issues with the corporate tax system could be addressed through international tax reform, because so many companies earn capital abroad. However, corporate tax reform at home deals with issues like taxing dividends and leveling the playing field between small and large businesses. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• International - Deals with foreign earnings of American firms abroad. Specifically, current international tax reform aims at preventing inversions and coming up with a more successful way to tax foreign capital earned by American companies, as well as finding ways to encourage companies to move profits home from abroad.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Forums for Tax Reform</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• Ways &amp; Means: &nbsp;Kevin Brady became Chair of the Committee in November 2015. He reportedly hopes to have an international tax reform proposal out of Ways and Means this year. &nbsp;He says he wants to allow American companies to bring their foreign profits back and invest at home and to lower the corporate tax rate to less than 20 percent.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Brady gave the opening statement at a hearing on “Reaching America’s Potential.” &nbsp;&nbsp;For what it's worth, he laid out six goals for his committee in the coming months -- and they are ambitious:</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>· Tax reforms to boost investment and job creation;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>· Welfare reforms to help more people join the workforce and achieve the American dream.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>· Health reforms to truly make health care more affordable and accessible; </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>· Trade expansion to open more foreign markets to American goods and services;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>· Entitlement reforms to strengthen Medicare and Social Security for the long haul and; &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>· Government reforms to boost efficiency and effectiveness instead of stifling jobs and higher wages.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Brady’s statement that tax reform will come up in the coming weeks, coupled with Ryan’s recent visit with Obama (specifically to find areas of cooperation), may indicate a broad-based reform package making its way forward in 2016. &nbsp;Another interesting bullet point is trade expansion, despite McConnell’s promise that TPP won’t be voted on before November. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• Senate Finance: &nbsp;&nbsp;The Senate Finance Committee has its focus set on bipartisan working groups designed to produce tax reform on multiple levels -- individual, corporate, and international. However, there have been many challenges and stalemates along the way because of the stringent partisanship currently ailing the Senate. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>This election has been defined, more so than others, by the massively diverse set of tax policies proposed by each candidates – from flat taxes, capital gains reforms, financial transaction taxes and more. &nbsp;Sen. Hatch, Chair of Finance, has already called for reform efforts in 2016, targeting international corporate rates specifically – but it’s possible that Brady is trying to shift him and others toward more ambitious proposals. &nbsp;Any high profile move Ryan makes here will likely be a controlling factor on tax policy. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>• Between the Branches -- Speaker Ryan and Pres. Obama met yesterday to discuss a variety of issues, one of which was related to the Earned Income Tax Credit. &nbsp;Both hope to expand the credit to include low-earning workers who DON'T have children. &nbsp;It's unclear how successful their cooperation will be, but at the very least, they share a common goal. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Politico portrayed the meeting as campaign kabuki: “Rather than cut any deals with Obama, Ryan’s hoping to spend 2016 developing what he’s calling a detailed GOP agenda on poverty, taxes, health care and other issues he’s hoping will factor into the presidential campaign and provide a blueprint for House Republicans as they grapple with a new president next year.” &nbsp;It’s not surprising to see this given the pressure this election will put on the new Speaker. &nbsp;He needs to set a strong foundation for his own future, and helping Obama score a tax touchdown on him is not on the top of his list of objectives. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>During a statement before he met with Obama, Ryan said “We will take our conservative principles and we will apply those conservative principles to the problems of the day to offer our fellow citizens solutions to the problems in their daily lives …. These are not going to be things that we will be able to accomplish with this president still in the White House. It is an agenda for what we will do next year with a Republican president to get our country back on track. This is what 2016’s all about. It’s going to be a year of ideas.”</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Political Realities</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>William Gale and Aaron Krupkin, researchers at Brookings, recently wrote a paper titled “Major Tax Issues in 2016;” Keeping in mind both the current political climate and the probable environment for legislation in 2016, the two researchers write that “Comprehensive tax reform is easy to talk about, but hard to do. The pursuit of sweeping tax simplification is a noble goal, but quixotic.” &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>At the end of the day 2016 is an election year and any legislative proposals that come forward during it will reflect that. &nbsp;There are many exciting possibilities for tax reform in 2016, but there is also no reason to think that the political gridlock that has defined Washington for so long will ease up enough while both parties vie for control of the country by drawing contests. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>----------------</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Recent Updates</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Talk of the Town &nbsp;(Feb. 3)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Defending Dodd-Frank &nbsp;(Feb. 2)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>----</span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>On Feb 2, 2016, at 11:59 PM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Mike &amp; Co. --</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Congratulations, team. &nbsp;Last night's narrow win in Iowa provided a big moral victory and took some of the win out of the challenger's sails. &nbsp;It also means that, for at least several weeks, the Democratic nomination contest will continue apace. &nbsp;And it is likely that Wall Street regulation will likely remain one the &nbsp;campaign's central issues. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>At the heart of this debate is the Dodd-Frank Act (DFA). &nbsp;&nbsp;Public opinion is still influenced in the main by memories of the 2008 financial crisis and the recession that followed, so the candidates' views on DFA get special attention. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Below, we re-examine these views and try to clear up the misconceptions that make it hard for voters to identify the candidate best able to defend the protections that DFA provides millions of American consumers, investors, and workers. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Best,</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Dana</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>-----------------</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The assertion that DFA doesn’t do enough to rein in Wall Street has become some sort of progressive shibboleth that as misleading as it is short-sighted and self-defeating. &nbsp;&nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Polling shows the American public believes strong financial regulation is critically needed (74 percent of Democrats, 56 percent Independents, 46 percent Republicans, 64 percent all voters). &nbsp;Polling has also shown that 66 percent of Americans are either “not very familiar” with or have “never heard of” Dodd-Frank. &nbsp;It is difficult for reasonable dialogue to be conducted in an environment made up of strong support for regulatory reform on one hand and a lack of knowledge of what is in DFA on the other.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Any public debate on DFA is hampered by the complexity of the issues involved. &nbsp;Additionally, there is a perception that it has failed in its objectives. &nbsp;Beyond the fact that the law isn’t even fully implemented, major financial institutions have already begun restructuring in ways that indicate the law is working properly. &nbsp;&nbsp;But how many voters know this?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Has Dodd-Frank Worked?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Great Recession and the resulting Dodd-Frank Act changed the trajectory of the financial industry. &nbsp;The law isn't perfect but it is having a stabilizing effect. &nbsp;Some of the biggest firms on Wall Street -- MetLife, CitiGroup, General Electric -- have shrunk since the law was enacted and as a direct result of its regulations. &nbsp;Those that haven't shrunk are under even more pressure to break up or reduce their size now than they were before Dodd-Frank.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The candidates are split concerning whether or not DFA is an full and sufficient model for regulating financial markets. &nbsp;While HRC wants to preserve and protect the progress made by DFA while bolstering certain parts of the law, while Sanders considers the law to be well intentioned yet deeply flawed. &nbsp;However, questions should be raised about judging the DFA’s efficacy right now - each candidate is forming an opinion on the act despite the fact that DFA hasn’t even reached maturity yet - only about 70 percent of DFA provisions have been implemented. &nbsp;Beyond the implementation gap is the issue that the results of financial reform cannot be seen overnight. &nbsp;A piece of legislation as large and multifaceted as Dodd-Frank might take a decade to ripen. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Even as the greatest effects of DFA remain to be see, recent events indicate that DFA is working as it was intended to. &nbsp;Any candidate who claims that DFA is in need of major overhaul needs to answer this question: What pressing need is there to overturn a law that has, to this point, largely accomplished its overarching objectives? </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Candidates and Dodd-Frank</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The candidates in this year's primaries have given voters two choices: stick with Dodd-Frank and add some tweaks or repeal it/change it fundamentally. There is only one candidate in the former group - HRC. Every other candidate, including Bernie Sanders, intends to greatly change Dodd-Frank, or get rid of it all together, if elected. With that choice in mind, it is necessary to remember how monumental Dodd-Frank was and the political climate that it was passed in - one with a Democratic majority in both houses. &nbsp;&nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>DFA enjoyed widespread support in the years immediately following its passage; Clinton needs to ring the alarm bells that her opponents intend to kill off an effective tool for regulating Wall Street for the sake of trying out unproven strategies that are built more on ideology than policy. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Obviously, most Republican candidates would prefer to do away with Dodd-Frank completely as it is greatly disliked by their biggest supporters. Bernie Sanders proposes something similar to Glass-Steagall, but also wants to create a list of the banks that are "too-big-too-fail" and "break them up." He outlined his intentions in legislation he proposed to Congress back in May 2015. Bloomberg Politics notes, "Similar to legislation he introduced in previous years, when Democrats controlled the U.S. Senate, the bill has little chance of advancing." &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>So voters can decide on strengthening a law that is already working to reign in Wall Street's risks or abandoning it for either less regulation or poorly aimed regulations. Considering the historical record of these other reform ideas, how can voters be expected to take those suggestions seriously?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>On Jan 28, 2016, at 8:19 PM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Mike &amp; Co. --</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Ordinarily this time of year, you would perhaps start to spot leaks or hear scuttlebutt about the president's spending plans for the next fiscal year, in anticipation of the statutory February White House budget rollout. &nbsp;No one noticed when the administration announced it would miss next week's legal budget submission deadline. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>With FY17 toplines set in the omnibus bill passed last month, you may hear little in the Beltway about the budget anytime soon (although the Chair did announce plans yesterday to introduce a budget resolution this year, to the surprise of many, including Majority Leader McConnell). &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Even on the campaign trail in the Granite State, with its famously flinty tax-o-phobes, nary a word is heard about the debt, let alone defaulting it, not this year. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The federal budget, deficits, and the debt have not yet gotten much air play yet this campaign. &nbsp;But if we lifted up the car hood, what would we see? &nbsp;What is our medium-long term fiscal outlook, what would the impact on it of the candidates' proposals be, and what fiscal issues are most likely to arise in the primary debate?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Best,</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Dana</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>--------------</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>CBO 10-year Deficit Projections</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The CBO reported last week that it expects the annual deficit to grow from its current $450 billion to $1.3 trillion by 2016. Candidates issuing calls for increased spending, against this backdrop, may be called to account. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Perhaps in recognition of this, both HRC and Sen. Sanders have recently and admirably detailed how they would use executive actions to enact parts of their revenue packages without Congressional support. &nbsp;Both have proposed extensive new spending plans as part of their primary platform. however, it may be time for the candidates to get serious about the fiscal viability of these plans from a fiscal perspective.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Clinton -- Fiscal Stimulus?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>HRC has proposed a tax package that will raise federal revenue by $500 billion over ten years, to be used for a $350 billion “College Compact” plan, for tax deductions on health care spending, and to fund an ambitious infrastructure investment package. &nbsp;Her spending plans are split between those which provide short-term economic stimulus and those which are aimed at providing longer-term boost. &nbsp;Her $250 billion plan to increase infrastructure investment in the country – paid for by reviving the “Build America Bonds” program and federal revenue -- &nbsp;works on two fronts.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>First, hiring middle-class workers in construction, engineering, and the trades the plan puts more money into the hands of people who tend to spend that money quickly. &nbsp;Second, improving roads, bridges, and tunnels in America the plan will make future transport of goods more reliable, speedy, and safe, all calculated to spur economic growth. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The “College Compact” aims to forgive student loans, lower college tuition, and make community colleges tuition-free. &nbsp;By removing the burden of debt from young graduates, HRC hopes to free those people up to begin consuming at a higher rate. &nbsp;The current home-ownership rate for young Americans is distressingly low largely due to their debt burden after college, HRC would rather young Americans take debt on in an equity-building purchase than spend thirty years repaying their college degree. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Sanders Health Care Tax Bill</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders’ $14 trillion spending plan, his “Medicare for All” proposal, would require the single largest tax hike in the nation’s history, bringing taxes on the wealthy to levels not seen since Reagan. &nbsp;These taxes, the size of which already makes them non-starters even among Democrats in Congress, are to be used to enact single-payer healthcare legislation – legislation which didn’t even get a vote during a Democratic majority in Obama’s first term.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders must hope that the economic efficiency of a single-payer health care plan, which finds its savings in the reduced role of middle-men and insurance companies, will result in savings passed onto Americans – Americans who will, in their turn, spend those savings in the economy at large.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>He has found political success in his promise to make colleges and universities in America tuition-free. &nbsp;The impetus behind this plan is similar to that of Mrs. Clinton – students with lower debt burdens are going to spend a greater portion of their income on food and entertainment, as well as on equity-investments like homes.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Campaign Impact</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The CBO’s federal budget projections released last week indicated that the annual federal deficit will grow to $1.3 trillion by 2026. &nbsp;It’s unlikely that the CBO report will be linked to the candidates' spending plans in any meaningful way. &nbsp;And to be fair, each candidate has put forward proposals to raise revenue equivalent to the costs of their plans (or at least to the extent that their own analyses can be trusted); this is often a rarity amongst politicians running for office and they should be applauded for doing so. &nbsp;Because of this, both campaigns can claim that their proposals will not raise the federal deficit – it’s unlikely that those claims will remain unchallenged in the future.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Foundation Analysis</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Recent analyses by the Tax Foundation, a group which uses dynamic scoring methods to judge revenue, have found that Clinton’s plan will reduce economic output by 1 percent over a decade, while Sanders’ proposals will lower GDP by a staggering 9.5 percent. &nbsp;Dynamic scoring is a controversial method of analyzing revenue estimates – it takes into account the supposed deleterious effects caused by tax increases and attempts to adjust growth the reflect those effects.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>A CRS report published in 2014, however, stated that “A review of statistical evidence suggests that both labor supply and savings and investment are relatively insensitive to tax rates.” </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>While each campaign will be inclined to argue that any analysis which mentions economic contraction as an effect of their plans is based on improper economics, it may not matter to voters whether they’re right or not. &nbsp;American voters have always been tax-averse but will pay for what they want. &nbsp;Maybe the biggest yet-unanswered question: do they want another overhaul of he nation's healthcare enough to pay a new record in tax increases?</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Recent Updates</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>On Jan 28, 2016, at 10:12 AM, Dana &lt;<a href="mailto:[email-masked]">[email-masked]</a>&gt; wrote:</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Dear Mike &amp; Co.,</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Pre-primary endorsements from Party leaders in tight contests are rare and sometimes understated. &nbsp;To wit, President Obama remarks this week that HRC is as prepared to be president as any non-Vice President as anyone: “I think that what Hillary presents is a recognition that translating values into governance and delivering the goods is ultimately the job of politics, making a real-life difference to people in their day-to-day lives.”</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Yesterday, House Democratic leader Nancy starting doing precisely that, assessing the centerpiece of Sanders' platform: &nbsp;"He's talking about a single-payer, and that's not going to happen. I mean, does anybody in this room think that we're going to be discussing a single-payer? ... We're not running on any platform of raising taxes." </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Far from the cauldron of Congress and the icy campaign trail was an announcement by the Fed with implications for the overall economy and for the election year ahead. &nbsp;More on the Fed's statement and its implications below. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Please let me know if you have any questions or issue coverage requests. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Best,</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Dana</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>-----------------</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed's Statement</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Federal Open Market Committee (FOMC) of the Federal Reserve decided yesterday not to raise rates in January. &nbsp;Last month, the Fed voted to raise interest rates for the first time in nine years, setting its rate target between 0.25 and 0.5 percent. &nbsp;Today's statement reaffirmed this decision, noting that recent market turbulence had not stayed the Fed from its plan to continue “only gradual increases in the federal funds rate.” &nbsp;Speculation and hope are rife that the FOMC will hold off raising rates in March and wait until June. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>But the statement today indicated no change in the Fed’s plan for previously outlined &nbsp;rate increases, four 0.25 percent increases this year, with total increases of one percent this year and next. &nbsp;However, the FOMC is largely comprised of dovish voters, who may change tack if current market corrections continue. &nbsp;&nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Market Reaction</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Dow Jones Industrial average is down from 17.759 on December 16 to 15,951 today; the S&amp;P 500 has declined from 2,073 to 1,879 over the same period. &nbsp;The </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fed however expressed confidence in continuing economic growth, calling low inflation and the decline in energy prices “transitory” and predicting 2 percent inflation in the medium-term as energy prices rise again. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>In a nod to beleaguered investors, the Committee wrote that it “... is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook.” &nbsp;So the Fed has, unusually, acknowledged the global scope of its deliberations. &nbsp;FOMC also indicated a focus on “labor market indicators [which] will continue to strengthen."</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>For now, though inflation is running just 0.4 percent, well below its two percent target, the Fed has not disavowed its plan to raise rates four times this year. &nbsp;&nbsp;This cannot be welcome to global equine markets. &nbsp;Domestic and global capital markets have already lost roughly ten percent since the December rate hike. &nbsp;Fed policy may be having a decelerating effect on growth and so could be a marginal drag on Democratic prospects. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>New FOMC Members</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The FOMC is made up of rotating board of seven voting members taken from Board of Governors members as well as regional bank officials; these members rotate on an annual basis at the first meeting of each year. &nbsp;The 2016 committee members are listed below (identified as"hawks," those favoring tight monetary policy or "doves," supporting more accommodative policy). </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Janet L. Yellen, Board of Governors, Chair (dove)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>William C. Dudley, New York, Vice Chair (dove)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Lael Brainard, Board of Governors (dove)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>James Bullard, St. Louis (hawk)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Stanley Fischer, Board of Governors (hawk)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Esther L. George, Kansas City (hawk)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Loretta J. Mester, Cleveland (hawk)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Jerome H. Powell, Board of Governors (swing)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Eric Rosengren, Boston (dove)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Daniel K. Tarullo, Board of Governors (dove)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>New members this year are James Bullard, Esther George, Loretta Mester, and Eric Rosengren. &nbsp;The FOMC consists of 12 voting members, with two nominees awaiting Senate confirmation. &nbsp;A shift in the balance of power between hawks and doves may occur but the doves hold a slim majority for now.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Code Breaking</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Fed watchers have made an art form out of reading between the lines of these policy releases, even the most benign of which can cause huge swings in markets (the Dow dropped over 200 points in the wake of today’s release). &nbsp;Fed statements are famously difficult to parse but one point was unmistakable: the Fed is keeping a close eye on the labor market -- employment and participation rates, wages, etc. -- as a leading indicator for inflation and overall growth perhaps more than any other variable. &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Campaign Consequences</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>None of the candidates has commented on today’s release, not surprisingly, but the policy may draw ire from some on the right, who oppose fiat rate-targeting (though it took no action today) and the left, where lowering rather than raising rate is preferred (except for holders of fixed income securities). &nbsp;</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sen. &nbsp;Sanders, true to his reputation of standing far outside the Democratic fold, has long opposed the Fed for being too involved with the bankers they are meant to be regulating. &nbsp;Sanders has called for reform measures at the Fed, including prohibiting people serving on bank boards from serving on the Fed at the same time. </span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed was confident that economic growth would continue on its steady pace, indicating strength in labor markets and downplaying both financial market reactions and diving commodities prices. &nbsp;The FOMC sets monetary policy on a long-term basis; the full ramifications of their decisions aren’t felt until months or years out, so any contention that the economy is strong enough to handle higher interest rates is essentially an endorsement of macroeconomic policy in the last few years. Democratic candidates will need to hammer this point home - but it is yet to be seen if voters will understand the message that Democratic policies are responsible for the sunny outlook for the American economy, especially compared to Western Europe, Latin America, and Asia.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Below is the first sentence of the FOMC statement from yesterday, edited to reflect changes from last month's statement:</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>For immediate releaserelease at 2:00 p.m. EST</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Information received since the Federal Open Market Committee met in OctoDecember suggests that economic activity has been expanding at a moderate pacelabor market conditions improved further even as economic growth slowed late last year. Household spending and business fixed investment have been increasing at solidmoderate rates in recent months, and the housing sector has improved further; however, net exports have been soft and inventory investment slowed. A range of recent labor market indicators, including ongoistrong job gains and declining unemployment, shows further improvement and confirms that underutilization of labor resources has diminished appreciably since early this year, points to some additional decline in underutilization of labor resources. Inflation has continued to run below the Committee's 2 percent longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports. Market-based measures of inflation compensation remain low; somedeclined further; survey-based measures of longer-term inflation expectations have edged downare little changed, on balance, in recent months.</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>--------------------</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Recent Updates</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span></span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>The Fed Holds Rates, for Now &nbsp;(Jan. 28)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Debate Myths Challenged &nbsp;(Jan. 25)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Regulating the Regulators &nbsp;(Jan. 21)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Tax/Healthcare Policy &nbsp;(Jan 20)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>HRC's Tax Policy &nbsp;(Jan. 17)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Agenda on the Hill &nbsp;(Jan. 16)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Glass-Steagall, Take 2 &nbsp;(Jan. 13)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>2016 Tax Policy Issues &nbsp;(Jan. 8)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders Proposals/GS &amp; TBTF (Jan. 7)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Sanders' Fin Reg Proposals &nbsp;(Jan. 5)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &nbsp;Year-End Review: Fin. Reg. &nbsp;(Dec. 29) &nbsp;Omnibus Review (Dec. 15)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Omnibus Situation &nbsp;(Dec. 14)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Customs Bill &nbsp;(Dec. 8)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Tax Extender Negotiations &nbsp;(Dec. 6) o</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Brown on HFT &nbsp;(Dec. 4)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><blockquote type="cite"><span>Shelby 2.0 Update &nbsp;(Dec. 3)</span><br></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote></blockquote><span></span><br><span>Content-Type: multipart/alternative;</span><br><span> boundary=Apple-Mail-E202A4BC-AC43-4A6A-AD3D-BF2A48B02BE0</span><br><span>Subject: Update -- Michigan and the Meaning</span><br><span>&lt;html&gt;&lt;head&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=</span><br><span>utf-8"&gt;&lt;/head&gt;&lt;body dir=3D"auto"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equ=</span><br><span>iv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=</span><br></blockquote><span>utf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" conten=</span><br><span>t=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equ=</span><br><span>iv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=</span><br></blockquote><span>utf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" conten=</span><br><span>t=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equ=</span><br><span>iv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=</span><br></blockquote><span>utf-8"&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;/p&gt;=</span><br><span>&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;div&gt;&lt;p class=3D"Mso=</span><br><span>Normal" style=3D"margin: 0in 0in 12pt;"&gt;It may feel like Michigan-morning-af=</span><br><span>ter but by dint of Mississippi, HRC padded her delegate lead last night.&amp;nbs=</span><br><span>p;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;On Monday, &amp;nbsp;President Obama h=</span><br><span>eld a financial regulatory summit in the Roosevelt Room of the White House. &amp;=</span><br><span>nbsp;Joined by the heads of the Fed, the FDIC, and the CFPB, Obama declared =E2=</span><br><span>=80=9CI want to dispel the notion that exists both on the left and on the ri=</span><br><span>ght that somehow, after the crisis, nothing happened," he said. =E2=80=9CWe d=</span><br><span>id not just rebuild this, we rebuilt it better, and we=E2=80=99ve rebuilt it=</span><br><span>stronger.=E2=80=9D&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0i=</span><br><span>n 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;He has a s=</span><br><span>trong argument. &amp;nbsp;You can't prove a negative and we will never know how m=</span><br><span>any financial crises were averted by Dodd-Frank. &amp;nbsp;But metrics bear out t=</span><br><span>he view that Americans and the economy have less to fear today from the Syst=</span><br><span>emically Significant Financial Institutions (SIFIs) than at any time since t=</span><br><span>he turn of the millennium. &amp;nbsp;&lt;/span&gt;More on the regulatory circumstances=</span><br><span>of SIFIs below. &amp;nbsp;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 1=</span><br><span>2pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Best,&lt;o:p&gt;&lt;/=</span><br><span>o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p=</span><br><blockquote type="cite"><span>&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D"backgrou=</span><br></blockquote><span>nd-color: rgba(255, 255, 255, 0);"&gt;-----------------------------------------=</span><br><span>--------&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;A Survey of the SIFI Lands=</span><br><span>cape&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;The landscape for the eight=</span><br><span>SIFIs today -- Bank of America, Bank of New York Mellon, Citigroup, Goldman=</span><br><span>Sachs, JP Morgan Chase, Morgan Stanley, State Street, and Wells Fargo --&amp;nb=</span><br><span>sp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;is worth=</span><br><span>looking at from various perspectives. &amp;nbsp;Presidential candidates on both=</span><br><span>sides have made a point of criticizing =E2=80=9Ctoo big to fail=E2=80=9D ba=</span><br><span>nks, court proceedings are challenging regulators powers', members of Congre=</span><br><span>ss are debating whether to loosen Dodd-Frank Act SIFI rules, and a current Fe=</span><br><span>deral Reserve Bank president has spoken out in favor of breaking them up. &amp;n=</span><br><span>bsp;But do SIFIs pose the same threat they did in 2008?&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;&lt;u&gt;The Power of DFA&lt;/u&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;President Obama hasn=E2=80=99t remained silent in t=</span><br><span>he face of criticism of DFA. &amp;nbsp;After the Monday&amp;nbsp;&lt;/span&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;summit,&lt;/span&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;Obama said that critics are sp=</span><br><span>reading =E2=80=9Ccynicism=E2=80=9D: &amp;nbsp;=E2=80=9CIt is popular =E2=80=A6 t=</span><br><span>o suggest that the crisis happened and nothing changed.&amp;nbsp; That is not tr=</span><br><span>ue.=E2=80=9D&amp;nbsp; The President cited&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;the 14 million new jobs created since his i=</span><br><span>nauguration, proof, he said, that sensible regulations on Wall Street don=E2=</span><br><span>=80=99t stifle business growth.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"ma=</span><br><span>rgin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;Two major business news stories from 2015 support the President=E2=80=99s=</span><br><span>view: &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt=</span><br><span>;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp; Gene=</span><br><span>ral Electric&lt;/b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt; c=</span><br><span>ontinued to sell off GE Capital, its $42 billion investment arm, hoping to e=</span><br><span>xit SIFI status in Q1 2016 as a result of its divestiture. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;=</span><br><span>&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp; MetLife&lt;/b&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt; has been embroiled in a legal batt=</span><br><span>le with the Financial Stability Oversight Council (FSOC) since the regulator=</span><br><span>announced in December 2014 that the insurance company was considered a SIFI=</span><br><span>=E2=80=93 arguments were heard in New York this January.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p=</span><br><span>class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;70 percent of DFA has been implemented by=</span><br><span>the regulatory agencies since it was passed. &amp;nbsp; Despite the constraints=</span><br><span>on SIFIs, they have by and large adapted well, making&amp;nbsp;adjustments fast=</span><br><span>er, earlier and more successfully=E2=80=9D than their overseas counterparts.=</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp; SIFIs no=</span><br><span>w hold much more capital now than they did before the crisis =E2=80=93 to th=</span><br><span>e tune of $700 billion in additional capital, twice the amount prior to it&lt;/=</span><br><span>span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp; SIFIs have three t=</span><br><span>imes the liquidity they had before the crisis&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorma=</span><br><span>l" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp; Derivatives clearing houses force transparenc=</span><br><span>y on SIFI speculation, preventing over-exposure&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNor=</span><br><span>mal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp; &amp;nbsp;SIFIs now post collateral on their de=</span><br><span>rivatives trades&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 1=</span><br><span>2pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp=</span><br><span>; &amp;nbsp;SIFIs submit to rigorous stress testing by the Federal Reserve and FD=</span><br><span>IC&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7 &amp;nbsp; &amp;nbsp;=</span><br><span>SIFIs are being forced to draft =E2=80=9Cliving wills,=E2=80=9D which have a=</span><br><span>lready forced some to streamline or simplify so they can wind down without r=</span><br><span>equiring a bailout&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in=</span><br><span>12pt;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Congressio=</span><br><span>nal Update&lt;/u&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in=</span><br><span>0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Congre=</span><br><span>ss is split between those who want to reduce regulatory pressure on big bank=</span><br><span>s and those who would rather see it ramped up. &amp;nbsp;Sen.&lt;/span&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;Shelby, Senate Banking Cha=</span><br><span>ir, introduced the Financial Regulatory Improvement Act of 2015, a grab-bag o=</span><br><span>f exceptions and exemptions from regulations, mostly for banks with between $=</span><br><span>50 and $500 billion in assets.&amp;nbsp; In a similar vein, Sens Warner, Portman=</span><br><span>, and Collins introduced the Independent Agency Regulatory Analysis Act&amp;nbsp=</span><br><span>;to require that regulators undertake a cost-benefit analysis of any rules t=</span><br><span>hey wish to implement.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in=</span><br><span>0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;On the=</span><br><span>flip side, Sens. McCain and Warren=E2=80=99s 21&lt;span style=3D"font-size: 12=</span><br><span>px;"&gt;st&amp;nbsp;&lt;/span&gt;Century Glass-Steagall Act proposes to split commercial a=</span><br><span>nd investment banks in a bid to finally kill off the TBTF problem.&amp;nbsp; Sen=</span><br><span>s. Warren and Vitter teamed up early in 2015 to introduce a package of amend=</span><br><span>ments to the Federal Reserve Act =E2=80=93- that bill notably would set forw=</span><br><span>ard stricter regulations when an entity is considered insolvent, and therefo=</span><br><span>re ineligible for Federal Reserve loans, as well as require that the Fed len=</span><br><span>d money to distressed institutions at market rates.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;The Regulators' Agenda&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p=</span><br><blockquote type="cite"><span>&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"backg=</span><br></blockquote><span>round-color: rgba(255, 255, 255, 0);"&gt;Under Basel III requirements for large=</span><br><span>banks to satisfy Liquidity Coverage Ratios (LCR) were adopted by a number o=</span><br><span>f national regulators, including the Federal Reserve.&amp;nbsp; While the Fed ha=</span><br><span>s floated a rule change allowing some municipal bonds to count as High Quali=</span><br><span>ty Liquid Assets (HQLA), that hasn=E2=80=99t stopped Rep. Luke Messer from p=</span><br><span>roposing HR 2209 to force regulators allow a greater share of munis to count=</span><br><span>as HQLA (see Update, Feb. 18).&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" s=</span><br><span>tyle=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&gt;The Fed is also working on implementing a rule on Single-Counte=</span><br><span>rparty Credit Limits (SCCL), setting boundaries on credit exposure between l=</span><br><span>arge banks or major counterparties.&amp;nbsp; The rule is meant to prevent banks=</span><br><span>from becoming overexposed to other financial institutions, preventing them f=</span><br><span>rom taking overly large losses in the event that the counterparty fails.&amp;nbs=</span><br><span>p; Analysts suspect that firms are nearly $100 billion over the limits impos=</span><br><span>ed by this rule, but Yellen says it is necessary to set a =E2=80=9Cbright li=</span><br><span>ne=E2=80=9D on credit exposure.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" s=</span><br><span>tyle=3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;SIFIs Moving Forward&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=</span><br><span>=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;There is no doubt that the upcoming MetLife ruling will be a critic=</span><br><span>al pivot point for how regulators interact with SIFIs.&amp;nbsp; If the FSOC is r=</span><br><span>equired to retract the firm=E2=80=99s SIFI status it will open the regulator=</span><br><span>up for a whole slew of challenges from other banks and institutions.&amp;nbsp; T=</span><br><span>he fate of Congressional proposals to restrict regulator=E2=80=99s efforts, e=</span><br><span>ither by determining rules for them or by burdening them with regulations of=</span><br><span>their own, should be seen as the start of a potential sea change in the reg=</span><br><span>ulatory climate.&amp;nbsp; During his Monday meeting, President Obama warned of t=</span><br><span>his: "If there is a significant challenge in terms of regulating Wall Street=</span><br><span>and regulating our financial sector it is primarily coming from certain mem=</span><br><span>bers of Congress who are consistently pressuring independent regulators to b=</span><br><span>ack off.=E2=80=9D&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margi=</span><br><span>n: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>It is not a bad time to be a SIFI in America =E2=80=93 it=E2=80=99s certainl=</span><br><span>y much better to be one now than in 2010.&amp;nbsp; While DFA has forced restruc=</span><br><span>turing and streamlining to occur, events like the GE Capital sell-off may pr=</span><br><span>ove to be exceptions that prove the rule rather than the new normal for SIFI=</span><br><span>s, especially if MetLife wins its case against regulators.&amp;nbsp; President O=</span><br><span>bama was right to point to Congress as the cause of regulatory gridlock; the=</span><br><span>political will seen after the economic collapse has largely evaporated, giv=</span><br><span>ing SIFIs far more breathing room and opening up opportunities to push throu=</span><br><span>gh =E2=80=9Cregulatory reform=E2=80=9D measures.&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;div dir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;p cl=</span><br><span>ass=3D"MsoNormal" style=3D"margin-bottom: 17.25pt;"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;_____________________________________&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Upcoming/Recent Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392);"&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; Thurs -- &amp;nbsp;Financial Reg. Nominations&lt;/sp=</span><br><span>an&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=</span><br><span>=A2 &amp;nbsp; Fri -- Update on Tax Bills&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; Mon --&lt;/span&gt;&lt;/div&gt;&lt;di=</span><br><span>v&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp=</span><br></blockquote><span>;=E2=80=A2 &amp;nbsp; ERI/Housing&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; EU/US Derivatives=</span><br><span>Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Pension Crisis&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Survey of the SIFI Landsc=</span><br><span>ape (Mar 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;Michigan and the Meaning of Flint &amp;nbsp;(Mar 8) Puerto Rico's Deb=</span><br><span>t Crisis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;&lt;/span&gt;&lt;=</span><br><span>/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Flint Bi=</span><br><span>ll: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Top Tax Bills Handicapped=</span><br><span>&amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;/div&gt;&lt;d=</span><br><span>iv&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Infrastruc=</span><br><span>ture Finance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Does DFA Fail on Too Big to Fail? (=</span><br><span>Feb. 17)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;International Tax S=</span><br><span>tatus &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Obama's FY17 Budget=</span><br><span>&amp;nbsp;(Feb. 9)&amp;nbsp;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/di=</span><br><span>v&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;o:p styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composi=</span><br><span>tion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;Defending Dodd-Frank &amp;nbsp;(=</span><br><span>Feb.2)&lt;/span&gt;&lt;/o:p&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=</span><br><span>1pt;"&gt;&lt;o:p style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/o:p&gt;&lt;/p=</span><br><blockquote type="cite"><span>&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;o:p style=3D"ba=</span><br></blockquote><span>ckground-color: rgba(255, 255, 255, 0);"&gt;___________________&amp;nbsp;&lt;/o:p&gt;&lt;/p&gt;=</span><br><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0); color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress;"&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/sp=</span><br><span>an&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0); color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&gt;Tomorrow=E2=80=99s Michigan primary elect=</span><br><span>ion may end up being "yugge" if it seriously opens up the possibility that T=</span><br><span>rump can put the state in play in November --&amp;nbsp;=E2=80=9CA normal Republi=</span><br><span>can cannot think of bringing in Michigan,=E2=80=9D said Trump&amp;nbsp;-- nothin=</span><br><span>g any other GOP presidential candidate could do, now, or for the past 25 yea=</span><br><span>rs.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compo=</span><br><span>sition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-le=</span><br><span>tterpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=</span><br><span>margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=</span><br><span>xt-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Flint crystallizes so many of th=</span><br><span>e issues that give rise to this new tectonic possibility. &amp;nbsp;There had to=</span><br><span>be a debate in Flint because there had to be a debate about it... and the S=</span><br><span>ecretary deserves far more credit than she's getting for making sure it happ=</span><br><span>ened. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNor=</span><br><span>mal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=</span><br><span>: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;In Washington, the Senate is readying to vote on a bipartisan package for=</span><br><span>drinking water aid.&amp;nbsp; It=E2=80=99s not a slam dunk, however, as Mike Le=</span><br><span>e has maintained a hold on the bill, saying political grandstanding is takin=</span><br><span>g the place of policy. &amp;nbsp;More on all this below.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p clas=</span><br><span>s=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=</span><br><span>-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=</span><br><span>ess; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=</span><br><span>margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=</span><br><span>xt-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNo=</span><br><span>rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=</span><br><span>n: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;______________________________________&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in 0=</span><br><span>in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;=</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in 0in 12p=</span><br><span>t;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Flint -- Bills=</span><br><span>and Broad Strokes&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2); text-decoration: -webkit-letterpress; margin: 0in 0in 12pt;"&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Michigan legislature appr=</span><br><span>oved in January a $28 million appropriation to provide immediate aid to Flin=</span><br><span>t.&amp;nbsp; Some critics maintain that the need to do so demonstrates the sorry=</span><br><span>condition of the state=E2=80=99s tax policy.&amp;nbsp;&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;=</span><br><span>/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=</span><br><span>t-letterpress; margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;The tax base in Flint was eroded significantly during th=</span><br><span>e 1980=E2=80=99s and 90=E2=80=99s as industry jobs left and the population f=</span><br><span>ell.&amp;nbsp; To deal with the resulting fiscal imbalance the Flint city manage=</span><br><span>r was instructed to cut costs =E2=80=93 he did so partly by switching the so=</span><br><span>urce of Flint=E2=80=99s drinking water. The broad and deep cuts to state and=</span><br><span>local budgets affected basic public services most profoundly.&amp;nbsp; Now, as=</span><br><span>a direct cause of these cuts, the residents of Flint are grappling with an i=</span><br><span>ssue no American ever considered possible =E2=80=93 they do not have access t=</span><br><span>o fresh drinking water.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in 0in 12p=</span><br><span>t;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;For all the ta=</span><br><span>lk of federal aid in infrastructure financing there must be a place made for=</span><br><span>regular tax payers.&amp;nbsp; These people bear a significant portion of direct=</span><br><span>funding for infrastructure projects both in their states and municipalities=</span><br><span>.&amp;nbsp; When those tax revenues are redirected, or when state spending is cu=</span><br><span>t to the point that basic services can=E2=80=99t be provided then taxpayers a=</span><br><span>re right to question what, in fact, their taxes are paying for.&amp;nbsp;&amp;nbsp;&lt;=</span><br><span>o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-=</span><br><span>decoration: -webkit-letterpress; margin: 0in 0in 12pt;"&gt;&lt;b style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Congressional update&lt;/u&gt;:&lt;o:p&gt;&lt;/o:p&gt;&lt;/=</span><br><span>b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=</span><br><span>bkit-letterpress; margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;At the insistence of Democrats, the Flint agreement h=</span><br><span>as been attached to a Senate energy bill introduced by Sen. Murkowski, S. 20=</span><br><span>12, which is next in line in the Senate following the opioid addiction bill.=</span><br><span>&amp;nbsp; The energy bill will be voted on soon, providing that things moves qu=</span><br><span>ickly (not a sure bet, since Dems may want to vote on certain amendments to t=</span><br><span>he opioid bill).&amp;nbsp; Despite these potential hang ups, Senate leadership h=</span><br><span>opes to wrap up the energy bill by the end of the week =E2=80=93 giving them=</span><br><span>some breathing room before the Senate adjourns for Easter recess by March 2=</span><br><span>1.&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2); text-decoration: -webkit-letterpress; margin: 0in 0in 12pt;"&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;While Sen. Cruz lifted his ho=</span><br><span>ld on the bill last week, Mike Lee has continued to block movement on the le=</span><br><span>gislation. &amp;nbsp;Sen. Lee is claiming that federal aid is not necessary to d=</span><br><span>eal with Flint:&amp;nbsp;=E2=80=9CThe state of Michigan has an enormous budget s=</span><br><span>urplus this year and a large rainy-day fund, totaling hundreds of millions o=</span><br><span>f dollars," the Senator said in a statement.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=</span><br><span>margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;&lt;b&gt;&lt;u&gt;Flint agreement&lt;/u&gt;:&lt;/b&gt;&lt;b&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=</span><br><span>margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;The bill provides $250 million to assist the residents of&amp;nbsp;Flint, M=</span><br><span>ichigan and other American cities experiencing critical problems with their w=</span><br><span>ater supplies by&amp;nbsp;increasing funding for Drinking Water Act State Revolv=</span><br><span>ing Funds and provide start-up funding for the new Water Infrastructure Fina=</span><br><span>nce and Innovation Act.&amp;nbsp; It includes:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"=</span><br><span>MsoListParagraphCxSpFirst" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=</span><br><span>composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=</span><br><span>it-letterpress; margin: 0in 0in 12pt 0.5in;"&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;=C2=B7&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;$=</span><br><span>100 million for Drinking Water State Revolving Funds (SRFs) accessible by an=</span><br><span>y state with a drinking water emergency.&amp;nbsp; It requires states to submit p=</span><br><span>lans explaining how the money will be spent to address the emergency before f=</span><br><span>unding is provided. &amp;nbsp;&amp;nbsp;Funds that remain after 18 months will be di=</span><br><span>stributed to all states under the existing SRF formula.&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/sp=</span><br><span>an&gt;&lt;/p&gt;&lt;p class=3D"MsoListParagraphCxSpMiddle" style=3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=</span><br><span>xt-decoration: -webkit-letterpress; margin: 0in 0in 12pt 0.5in;"&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp=</span><br><span>;&amp;nbsp;&amp;nbsp;&amp;nbsp;$70 million in funding to back secured loans made under t=</span><br><span>he new Water Infrastructure Finance and Innovation Act (WIFIA).&amp;nbsp; A fede=</span><br><span>ral investment of $70 million could support secured loans of up to $4.2 bill=</span><br><span>ion to address water and wastewater infrastructure needs across the country,=</span><br><span>according to Sen. Inhofe=E2=80=99s office.&amp;nbsp; All states and all communi=</span><br><span>ties with clean water and drinking water infrastructure needs are eligible f=</span><br><span>or this assistance.&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoListParagraphC=</span><br><span>xSpLast" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; ma=</span><br><span>rgin: 0in 0in 12pt 0.5in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;=C2=B7&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;$50 million for var=</span><br><span>ious in authorized health programs for national use to address and prevent i=</span><br><span>mpacts from exposure to lead.&amp;nbsp;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorm=</span><br><span>al" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin:=</span><br><span>0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b=</span><br><blockquote type="cite"><span>&lt;u&gt;=E2=80=9CFlint=E2=80=9D is more than Flint&lt;/u&gt;&lt;/b&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;=</span><br></blockquote><span>&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=</span><br><span>etterpress; margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Flint is a crisis of governance =E2=80=93 there is a discon=</span><br><span>nect in the relationship between citizens and government, and it bridges eve=</span><br><span>ry demographic.&amp;nbsp; Just as the poor drink water so do the wealthy, and wh=</span><br><span>en a service as basic and fundamental is undermined to the point that an ent=</span><br><span>ire town of nearly a hundred thousands is poisoned by its own government, vo=</span><br><span>ters will express themselves, given the chance.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"=</span><br><span>MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=</span><br><span>-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; m=</span><br><span>argin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;Residents, customers, consumers, taxpayers =E2=80=93- citizens at the en=</span><br><span>d of the day &amp;nbsp;=E2=80=93- are seeing their government in a significantly=</span><br><span>different light and thus far are voting differently this year accordingly.&amp;=</span><br><span>nbsp;Donald Trump would not likely be able to put Michigan in play without t=</span><br><span>his new perspective animation politics in Michigan as much as anywhere.&amp;nbsp=</span><br><span>;&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;div&gt;&lt;div style=3D"text-decoration: -webkit-letterpress;"&gt;=</span><br><span>&lt;div dir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;p class=3D"MsoNormal" st=</span><br><span>yle=3D"margin-bottom: 17.25pt;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;_____________________________________&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;p class=</span><br><span>=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Upc=</span><br><span>oming/Recent Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div style=3D"text-decorat=</span><br><span>ion: -webkit-letterpress;"&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; Tues -- &amp;nbsp;Financial Reg. Nominations&lt;/spa=</span><br><span>n&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=</span><br><span>=A2 &amp;nbsp; Wed -- &amp;nbsp;SIFIs and the Fed&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; Thurs -- Update on=</span><br><span>Tax Bills&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; ERI/Housing&lt;/span&gt;&lt;/div&gt;&lt;/di=</span><br><span>v&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbs=</span><br><span>p;=E2=80=A2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; EU/US Deriva=</span><br><span>tives Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Pension Crisis&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Michigan and the Me=</span><br><span>aning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;/div&gt;=</span><br><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Municipal Fin=</span><br><span>ance Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects=</span><br><span>(Mar. 2)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Bigger than the Budge=</span><br><span>t Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18)&amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;Below the Radar/Customs Bill &amp;=</span><br><span>nbsp;(Feb. 16)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;/div&gt;&lt;di=</span><br><span>v&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds St=</span><br><span>eady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;/span&gt;&lt;div&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Talk of the Town &amp;=</span><br><span>nbsp;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Fiscal Pol: Deficit/Debt Dormanc=</span><br><span>y (Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Debate Myths Challeng=</span><br><span>ed &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders' Tax/Heal=</span><br></blockquote><span>thcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;/span&gt;&lt;div&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Agenda on=</span><br><span>the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;/div&gt;&lt;=</span><br><span>div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Polic=</span><br><span>y Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;=</span><br><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin R=</span><br><span>eg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Yea=</span><br><span>r-End Review: Fin. Reg.&amp;nbsp;&amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;=</span><br><span>/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;O=</span><br><span>mnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;=</span><br><span>div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/d=</span><br><span>iv&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;------&lt;/sp=</span><br><span>an&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;=</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Mike &amp;am=</span><br><span>p; Co. --&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -we=</span><br><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress;"&gt;&lt;div dir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;The February jobs report came out this morning b=</span><br><span>etter than expected. &amp;nbsp; Once again,&amp;nbsp;&lt;/span&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;the US economy maintained strong job growt=</span><br><span>h without wage gains. &amp;nbsp;Wages fell 0.1 percent in February, but 242,000 p=</span><br><span>ositions were added to the economy, marking 72 months of uninterrupted job g=</span><br><span>ains =E2=80=93 the longest streak on record.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"Mso=</span><br><span>Normal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;Additionally, labor participation rose by 1.5 million Amer=</span><br><span>icans since November =E2=80=93 making it the highest it has been&amp;nbsp;in 16 y=</span><br><span>ears&amp;nbsp;(62.9 percent of the overall share of Americans).&lt;/span&gt;&lt;/p&gt;&lt;p cla=</span><br><span>ss=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;The report from Puerto Rico is not as sunny. &amp;nbs=</span><br><span>p;The territory is still waiting on a Congressional bill designed to handle t=</span><br><span>he ongoing debt crisis on the island. &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;More &amp;nbsp;below.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"Mso=</span><br><span>Normal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12=</span><br><span>pt 0in;"&gt;Dana&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;________=</span><br><span>______________________________&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12=</span><br><span>pt 0in;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Puerto Rico=E2=</span><br><span>=80=99s Time Bomb&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Puerto Rican d=</span><br><span>ebt crisis has been an ongoing concern for both Congress, Wall Street and th=</span><br><span>e Obama administration for some years now =E2=80=93 the territory=E2=80=99s b=</span><br><span>ond ratings have been steadily dropping into the junk category and fell from=</span><br><span>A- in 2005 to CCC+ last April.&amp;nbsp; At the heart of the matter is $70 bill=</span><br><span>ion in bonds that Puerto Rico owes and says it cannot pay on.&amp;nbsp;&lt;/span&gt;&lt;/=</span><br><span>p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Because Puerto Rican bonds are tax exempt=</span><br><span>in all 50 states and the District of Columbia, making them incredibly popul=</span><br><span>ar investments for mutual funds, pensioners, and big banks.&amp;nbsp; Over 20 pe=</span><br><span>rcent of mutual funds in the United States hold at least some Puerto Rican b=</span><br><span>onds, with $11.3 billion in portfolio, with a further $15 billion in bonds h=</span><br><span>eld by hedge funds.&amp;nbsp; Now that the territory=E2=80=99s bonds are in the =E2=</span><br><span>=80=9Cjunk=E2=80=9D category, pension funds and insurance firms are unable t=</span><br><span>o hold them any longer.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12=</span><br><span>pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The diver=</span><br><span>se list of bond holders has thrown a wrench into the plans of those who woul=</span><br><span>d rather allow Puerto Rico to default on its obligations =E2=80=93 something=</span><br><span>which would require legislative action (the territory doesn=E2=80=99t have t=</span><br><span>hat luxury, unlike states).&amp;nbsp; If Puerto Rico is allowed to renege on its=</span><br><span>contractual agreements, the argument goes, then it creates a moral hazard f=</span><br><span>or other entities to do the same rather than make the tough choices necessar=</span><br><span>y to honor their obligations.&amp;nbsp; The fact that many of these bonds are es=</span><br><span>sentially held by ordinary Americans (through mutual funds and pensions) mak=</span><br><span>es the argument all that stronger for many representatives.&amp;nbsp; A state ha=</span><br><span>sn=E2=80=99t declared bankruptcy since Arkansas did so in 1933.&lt;/span&gt;&lt;/p&gt;&lt;p=</span><br><span>class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Moral hazard is inherent in a debt restructur=</span><br><span>ing deal; here, the path for Puerto Rico toward capital markets after anythi=</span><br><span>ng of the sort would still be an especially painful one (see: Argentina).&amp;nb=</span><br><span>sp; Additionally, there are few serious proposals to grant the island full C=</span><br><span>hapter 9 status. &amp;nbsp;Most opt instead for some form of negotiated haircut a=</span><br><span>greement combined with extending maturities on the bonds; these proposals ar=</span><br><span>e likely to succeed, considering Puerto Rico is almost certainly unable to m=</span><br><span>aintain its bond payment schedule without a restructuring agreement.&lt;/span&gt;&lt;=</span><br><span>/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Administration Position&lt;/b&gt;&lt;b&gt;&lt;/b&gt;&lt;/s=</span><br><span>pan&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Testifying before the House Committ=</span><br><span>ee on Natural Resources on Feb 25, Treasury official Antonio Weiss warned la=</span><br><span>wmakers that Puerto Rico needs =E2=80=9Can immediate solution=E2=80=9D if it=</span><br><span>=E2=80=99s to survive past&amp;nbsp;May 1, when a $470 million bond payment is d=</span><br><span>ue.&amp;nbsp; Soon after that,&amp;nbsp;on&amp;nbsp;July 1, a $1.9 billion bond payment w=</span><br><span>ill come due as well =E2=80=93 Puerto Rican representatives have already dec=</span><br><span>lared they cannot meet those payments without assistance.&lt;/span&gt;&lt;/p&gt;&lt;p class=</span><br><span>=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Weiss laid out the administration=E2=80=99s two-part=</span><br><span>plan: first the territory must be allowed to restructure its debt obligatio=</span><br><span>ns, second a fiscal oversight board should be established to assist the isla=</span><br><span>nd with managing its finances.&amp;nbsp; Importantly, Weiss stopped short of adv=</span><br><span>ocating for bankruptcy protection for Puerto Rico and told the committee tha=</span><br><span>t =E2=80=9Can advisory board is not adequate to do the job=E2=80=9D alone.&amp;n=</span><br><span>bsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;House Democrats voiced=</span><br><span>concern over the financial oversight board, Rep. Luis Guti=C3=A9rrez: =E2=80=</span><br><span>=9CThey=E2=80=99re saying that there=E2=80=99s a joint responsibility, but i=</span><br><span>t seems to me that all of the responsibility is being weighed on the people o=</span><br><span>f Puerto Rico.=E2=80=9D&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;Meanwhile Republicans claimed that any plan to restructure Puerto Rican de=</span><br><span>bt was a non-starter; a few hours after the hearing the Republican Study Com=</span><br><span>mittee announced it would oppose any plan including such a provision.&amp;nbsp;&amp;=</span><br><span>nbsp;"Changing the rules mid-game would be unfair to Puerto Rico=E2=80=99s c=</span><br><span>reditors who entered into these arrangements with agreed upon terms and woul=</span><br><span>d delegitimize future transactions," said RSC Chairman&amp;nbsp;Bill Flores.&lt;/sp=</span><br><span>an&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Policy Options&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNo=</span><br><span>rmal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;Until recently the two parties have maintained starkly contr=</span><br><span>asting views on how to best deal with Puerto Rico=E2=80=99s debt crisis =E2=80=</span><br><span>=93 Democrats have pushed for a forced debt restructuring, with some calling=</span><br><span>for the island to be granted Chapter 9 bankruptcy protections, meanwhile Re=</span><br><span>publicans called for a financial oversight council to make the tough fiscal d=</span><br><span>ecisions necessary for Puerto Rico to maintain its debt obligations without r=</span><br><span>eneging on its agreements.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin:=</span><br><span>12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The ad=</span><br><span>ministration, through Weiss, has advocated a middle of the road approach. By=</span><br><span>adopting both proposals and avoiding the further edges of each (no bankrupt=</span><br><span>cy, and no unaccountable board staffed by Wall Streeters), the administratio=</span><br><span>n hopes to find compromise between each group.&amp;nbsp; And it seems like it mi=</span><br><span>ght work.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Finding Compromise&lt;/b&gt;&lt;/p&gt;=</span><br><span>&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Recently, however, the conservative s=</span><br><span>tance against debt restructuring has lessened =E2=80=93 with some Republican=</span><br><span>s saying that they could support a PR bill as long as it doesn=E2=80=99t inc=</span><br><span>lude Chapter 9 bankruptcy.&amp;nbsp; House Natural Resources chair Bob Bishop ha=</span><br><span>s been working on a bill for Puerto Rico that does include some element of d=</span><br><span>ebt restructuring, and recently said =E2=80=9C=E2=80=9CI=E2=80=99m sure RSC w=</span><br><span>ill be satisfied with what we do =E2=80=A6 to say that some element of [debt=</span><br><span>restructuring] could be in there, yeah.=E2=80=9D &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp=</span><br><span>; &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 17.25pt;"&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The House is still=</span><br><span>sticking to its end of March deadline set by Speaker Ryan&amp;nbsp;for putting f=</span><br><span>orward a final bill on Puerto Rico on the floor for a vote.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=</span><br><span>&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 17.25pt;"&gt;&lt;span style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;_____________________________________=</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;Upcoming/Recent Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;=</span><br><span>div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;div&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; Th=</span><br><span>urs -- Municipal Finance Caucus&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; Fri -- Puerto Rico&lt;/span&gt;&lt;/d=</span><br><span>iv&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Mon -- FY17&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Tues -- 13 D=</span><br><span>Regs&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Wed -- &amp;nbsp;TBD&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;=</span><br><span>div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=</span><br><span>=80=A2 &amp;nbsp; SBC Nominations&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; ERI/Housing&lt;/span=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=</span><br></blockquote><span>&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; EU=</span><br><span>/US Derivatives Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Pension Crisis&lt;/span&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;=</span><br></blockquote><span>/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Michigan=</span><br><span>and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/=</span><br><span>span&gt;&lt;/div&gt;&lt;div&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;&lt;/div&gt;&lt;div&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Flint Bill: &amp;nbsp;Prov=</span><br><span>isions &amp;amp; Prospects (Mar. 2)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 2=</span><br><span>4)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Infrastructure Finance Up=</span><br><span>date &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;=</span><br><span>&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Below t=</span><br><span>he Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;International Tax Status &amp;nbsp;(Fe=</span><br><span>b. 11)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)=</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;/sp=</span><br><span>an&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Fiscal Pol=</span><br><span>: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28=</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"bac=</span><br></blockquote><span>kground-color: rgba(255, 255, 255, 0);"&gt;Regulating the Regulators &amp;nbsp;(Jan=</span><br><span>. 21)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;HRC's Tax Policy &amp;nbsp;(Jan=</span><br><span>. 17)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Ja=</span><br><span>n. 13)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (=</span><br><span>Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Poli=</span><br><span>cy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg.&amp;nbsp;&amp;nbsp;(Dec. 29) &amp;nbsp;Omni=</span><br><span>bus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (=</span><br><span>Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6)&amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/=</span><br><span>div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;=</span><br><span>nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -web=</span><br><span>kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=</span><br><span>mposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=</span><br><span>-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;___=</span><br><span>_____&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=</span><br><span>etterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;=</span><br><span>/span&gt;&lt;/div&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=</span><br><span>press;"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701=</span><br><span>961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=</span><br><span>oration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&gt;In half an hour, the BLS jobs report for =</span><br><span>February is due to be released. &amp;nbsp;If you'd like an update or have any qu=</span><br><span>estions, please let me know.&amp;nbsp;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>text-decoration: -webkit-letterpress;"&gt;Meanwhile, amid the most fractious c=</span><br><span>ampaign in recent history comes an initiative in Congress that sounds, well,=</span><br><span>incongruous with the cacophany. &amp;nbsp;A broad and bipartisan group of House=</span><br><span>members is behind the official launch of a caucus this week dedicated to pr=</span><br><span>otecting and expanding the tax exemption enjoyed by municipal debt.&amp;nbsp;&lt;/d=</span><br><span>iv&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;b=</span><br><span>r&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=</span><br><span>;"&gt;You have to start somewhere and why not with incentives to address the na=</span><br><span>tion's long-neglected infrastructure with tax breaks -- about the only kind o=</span><br><span>f stimulus and jobs measure that can garner bipartisan support? &amp;nbsp; More o=</span><br><span>n the new Municipal Finance Caucus below. &amp;nbsp;&lt;/div&gt;&lt;div style=3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Best,&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div sty=</span><br><span>le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=</span><br><span>30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Dana&lt;/div&gt;&lt;di=</span><br><span>v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/di=</span><br><span>v&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;___=</span><br><span>__________________________________&lt;br&gt;&lt;div&gt;&lt;p class=3D"MsoNormal" style=3D"m=</span><br><span>argin: 12pt 0in;"&gt;&lt;font style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>&lt;b&gt;A New Caucus&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0=</span><br><span>in;"&gt;&lt;font style=3D"background-color: rgba(255, 255, 255, 0);"&gt;On Tuesday, R=</span><br><span>eps. Randy Hultgren and Dutch Ruppersberger announced that they have formed t=</span><br><span>he Municipal Finance Caucus to protect the tax-exempt status of municipal de=</span><br><span>bt and reexamine the way it is treated in financial regulations. &amp;nbsp;In 20=</span><br><span>15, Hultgren and Ruppersberger sent a letter (reprinted below) to House lead=</span><br><span>ership&amp;nbsp;&lt;/font&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>opposing&amp;nbsp;the President=E2=80=99s proposed 28 percent cap on tax deduct=</span><br></blockquote><span>ions for municipal bonds,&amp;nbsp;signed by over 120 of their colleagues. &amp;nbsp=</span><br><span>;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Their announcement coincided wit=</span><br><span>h the National Association of State Treasurers=E2=80=99 legislative conferen=</span><br><span>ce in D.C. The same group drafted another letter, signed by more than 600 st=</span><br><span>ate and local officials, which urges the leaders of the House Ways and Means=</span><br><span>Committee and the Senate Finance Committee to reject curbs to the muni exem=</span><br><span>ption.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Who=E2=80=99s in it?&lt;/b=</span><br><blockquote type="cite"><span>&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"backg=</span><br></blockquote><span>round-color: rgba(255, 255, 255, 0);"&gt;Right now just the founding representa=</span><br><span>tives have declared their official membership, but it=E2=80=99s foreseeable t=</span><br><span>hat some of the 120 representatives that signed the letter to House leadersh=</span><br><span>ip in 2015 will join as well.&amp;nbsp; It=E2=80=99s also seen a s likely that s=</span><br><span>ome Senators will want to join the caucus, but the founders haven't made cle=</span><br><span>ar if bicameral membership is a priority.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" s=</span><br><span>tyle=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;Is it Bipartisan?&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0=</span><br><span>in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Since 2013 Hu=</span><br><span>ltgren and Ruppersberger have led bipartisan efforts to draft letters of sup=</span><br><span>port for municipal bonds. &amp;nbsp;The signatories to these letters include mem=</span><br><span>bers from both sides of the aisle. &amp;nbsp;Rep. Ruppersberger focuses mostly o=</span><br><span>n local government and is pretty moderate. Rep. Hultgren is a more orthodox c=</span><br><span>onservative Republican.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"marg=</span><br><span>in: 12pt 0in;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;What=E2=</span><br><span>=80=99s the Purpose?&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in=</span><br><span>;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Caucus plan=</span><br><span>s to defend municipal bonds=E2=80=99 tax exempt status and advocate for regu=</span><br><span>latory changes which favor those bonds.&amp;nbsp; Proposals to limit the tax-exe=</span><br><span>mpt status of these bonds have been floated in recent years.&amp;nbsp;&lt;/span&gt;&lt;/p=</span><br><blockquote type="cite"><span>&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"backgroun=</span><br></blockquote><span>d-color: rgba(255, 255, 255, 0);"&gt;In addition to calling for the bonds to ma=</span><br><span>intain their tax preferred status, the Caucus will push for the passage of H=</span><br><span>R 2209, legislation considering municipal bonds as a&lt;/span&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;High Quality Liquid Asset (&lt;/=</span><br><span>span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;HQLA) =E2=80=93=</span><br><span>a particularly contentious issue because of the disagreement over how flexi=</span><br><span>ble these liquidity rules should be from a systemic risk perspective.&amp;nbsp;&lt;=</span><br><span>/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Positions Taken to Date&lt;/b&gt;&lt;/p&gt;&lt;p cl=</span><br><span>ass=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;The Caucus founders have opposed Obama=E2=80=99s=</span><br><span>2015 proposal to cap municipal bond tax exemption at 28 percent. Rep. Hultg=</span><br><span>ren is also a co-sponsor of HR 2209 =E2=80=93 the bill to set the liquidity f=</span><br><span>or municipal bond assets at Level 2A (see Update, Feb. 18).&amp;nbsp; Hultgren s=</span><br><span>aid the liquidity rules are an example of how regulators misunderstand munic=</span><br><span>ipal bonds, specifically the frequent serial structure of the their issuance=</span><br><span>s.&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D"en-us" style=3D"box-sizing: border-box; margin: 1=</span><br><span>em 0px; padding: 0px; border: 0px; vertical-align: baseline; word-wrap: brea=</span><br><span>k-word; word-break: normal;"&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;Many investors flock to municipal bonds for security. But some fe=</span><br><span>deral regulators trying to shore up the banking system aren't convinced the b=</span><br><span>onds would be easy to sell in a crisis.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D"en-us=</span><br><span>" style=3D"box-sizing: border-box; margin: 1em 0px; padding: 0px; border: 0p=</span><br><span>x; vertical-align: baseline; word-wrap: break-word; word-break: normal;"&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Division of Opinio=</span><br><span>n&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D"en-us" style=3D"box-sizing: border-box; margi=</span><br><span>n: 1em 0px; padding: 0px; border: 0px; vertical-align: baseline; word-wrap: b=</span><br><span>reak-word; word-break: normal;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Division of opinion on HR 2099 falls along unusual lines, with=</span><br><span>Wall Street, Congress and municipal officials challenging bank regulators' s=</span><br><span>kepticism toward municipal debt. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;At issue are new rules aimed at ensuring b=</span><br><span>anks can raise enough cash during a financial-market meltdown to fund their o=</span><br><span>perations for 30 days. The requirements mean banks have to hold more cash or=</span><br><span>securities that are easily sellable.&lt;/span&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p xml:lang=3D"en-us" style=3D"bo=</span><br><span>x-sizing: border-box; margin: 1em 0px; padding: 0px; border: 0px; vertical-a=</span><br><span>lign: baseline; word-wrap: break-word; word-break: normal;"&gt;&lt;span style=3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;Regulators don't think it is the p=</span><br><span>lace of Congress to second guess how they size up securities. Fed Chairwoman=</span><br><span>Janet Yellen, at a congressional hearing Feb. 11, said legislation would "i=</span><br><span>nterfere with our supervisory judgments."&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNor=</span><br><span>mal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Big banks such as Citigroup Inc. and Wells Fargo &amp;amp; Co. hav=</span><br><span>e sprung into action in lobbying Congress, along with municipal leaders who f=</span><br><span>ret the rules will diminish bank bond-buying which could raise borrowing cos=</span><br><span>ts on infrastructure projects.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"mar=</span><br><span>gin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Hu=</span><br><span>ltgren also said the caucus will work to update the number of projects that c=</span><br><span>ould be financed by qualified small issue manufacturing bonds, a type of pri=</span><br><span>vate-activity bond whose proceeds can be used to finance manufacturing facil=</span><br><span>ities for small- and mid-sized manufacturers. The tax code provisions on sma=</span><br><span>ll industrial development bonds have not been changed since the 1980s, he sa=</span><br><span>id. Hultgren sponsored a bill last year entitled =E2=80=9CThe Modernizing Am=</span><br><span>erican Manufacturing Bonds Act,=E2=80=9D which was focused on expanding oppo=</span><br><span>rtunities for qualified small issue manufacturing bonds, particularly by cha=</span><br><span>nging the national volume cap set by Congress.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"M=</span><br><span>soNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;What can be achieved?&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Caucuses such as this one=</span><br><span>don't have the best reputation when it comes to getting things done. &amp;nbsp;=</span><br><span>But rules relating to the liquidity value of capital is one of the few polic=</span><br><span>y &amp;nbsp;areas of any kind where there is bipartisan agreement. &amp;nbsp;Municip=</span><br><span>al bonds, in particular, have a universal appeal because of their direct lin=</span><br><span>k to local and state infrastructure projects. &amp;nbsp;At the very least, the c=</span><br><span>aucus will spark some discussion about the best way to both reform existing m=</span><br><span>ethods for funding infrastructure investment and find new ways to fund it.&amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;_________________________________&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;=</span><br><span>&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;div d=</span><br><span>ir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;p class=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;Recent/Planned Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/d=</span><br><span>iv&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>s;"&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2=</span><br><span>&amp;nbsp; Thurs -- Municipal Finance Caucus&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; Fri -- Puerto Rico=</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Mon -- FY17&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Tu=</span><br><span>es -- 13 D Regs&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Wed -- &amp;nbsp;TBD&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/=</span><br><span>div&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbs=</span><br><span>p; &amp;nbsp;=E2=80=A2 &amp;nbsp; SBC Nominations&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; ERI/H=</span><br><span>ousing&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=</span><br><span>=A2 &amp;nbsp; EU/US Derivatives Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Pension Crisi=</span><br><span>s&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4)&amp;nbsp;&lt;/div&gt;&lt;d=</span><br></blockquote><span>iv&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Flint Bill: &amp;nb=</span><br><span>sp;Provisions &amp;amp; Prospects (Mar. 2)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Top Tax Bills Handicapped &amp;nbsp;=</span><br><span>(Feb. 24)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Infrastructure Fi=</span><br></blockquote><span>nance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Does DFA Fail on Too Big to Fail? (Feb. 17=</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=</span><br></blockquote><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;International Tax Status &amp;=</span><br><span>nbsp;(Feb. 11)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Obama's FY17 Budget &amp;nbsp;=</span><br><span>(Feb. 9)&amp;nbsp;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)=</span><br><span>&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Fi=</span><br><span>scal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;=</span><br><span>(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;Regulating the Regulators &amp;n=</span><br><span>bsp;(Jan. 21)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;HRC's Tax Policy &amp;=</span><br><span>nbsp;(Jan. 17)&lt;br&gt;&lt;/span&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Glass-Steagall, Take 2=</span><br><span>&amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;a=</span><br><span>mp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fi=</span><br><span>scal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg.&amp;nbsp;&amp;nbsp;(Dec. 29&lt;/s=</span><br><span>pan&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Mar 2, 2016,=</span><br><span>at 9:39 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachasin@gma=</span><br><span><a href="http://il.com">il.com</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote type=3D"cite"&gt;&lt;div&gt;&lt;meta http=</span><br><span>-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-typ=</span><br><span>e" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta=</span><br><span>http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html;=</span><br><span>charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-t=</span><br><span>ype" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;me=</span><br><span>ta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/htm=</span><br><span>l; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content=</span><br><span>-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;=</span><br><span>meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/h=</span><br></blockquote><span>tml; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;=</span><br><span>div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"=</span><br><blockquote type="cite"><span>&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"t=</span><br></blockquote><span>ext/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"=</span><br><span>content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-=</span><br></blockquote><span>8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equi=</span><br><span>v=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;=</span><br><span>&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=</span><br><span>utf-8"&gt;&lt;div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D"text-d=</span><br><span>ecoration: -webkit-letterpress;"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div sty=</span><br><span>le=3D"text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"text-de=</span><br><span>coration: -webkit-letterpress;"&gt;I hope everyone's had a chance to reflect on=</span><br><span>the magnitude of yesterday's hard fought primary wins -- with gratitude to t=</span><br><span>hose who toiled in the field.&amp;nbsp;&lt;/div&gt;&lt;div style=3D"text-decoration: -web=</span><br><span>kit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"text-decoration: -webkit-letterpre=</span><br><span>ss;"&gt;On Saturday night, the campaign debate turns to Flint, Michigan -- to t=</span><br><span>he town and the issues it has come to symbolize. &amp;nbsp; The town's water con=</span><br><span>tamination and related problems finally move center stage.&amp;nbsp;&lt;/div&gt;&lt;div s=</span><br><span>tyle=3D"text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"text-=</span><br><span>decoration: -webkit-letterpress;"&gt;Congress has moved with uncommon alacrity a=</span><br><span>nd bipartisanship in recent weeks on legislation to direct funding to addres=</span><br><span>s the water issue in Flint and elsewhere. &amp;nbsp; Here, we look at the bill's=</span><br><span>provisions, its funding steam, and its prospects. &amp;nbsp;&lt;/div&gt;&lt;div style=3D=</span><br><span>"text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"text-decorat=</span><br><span>ion: -webkit-letterpress;"&gt;Best,&lt;/div&gt;&lt;div style=3D"text-decoration: -webkit=</span><br><span>-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"text-decoration: -webkit-letterpress;=</span><br><span>"&gt;Dana&lt;/div&gt;&lt;div style=3D"text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;=</span><br><span>div style=3D"text-decoration: -webkit-letterpress;"&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;hr style=</span><br><span>=3D"box-sizing: content-box; border-style: solid; border-color: gray; height=</span><br><span>: 0px;"&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div style=3D"text-decoration: -webkit-lette=</span><br><span>rpress;"&gt;&lt;div dir=3D"ltr"&gt;&lt;div dir=3D"ltr"&gt;&lt;p class=3D"MsoNormal" style=3D"m=</span><br><span>argin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;The Flint Bill -- Provisions &amp;amp; Prospects&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"M=</span><br><span>soNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;A bipartisan deal has been reached in the Senate l=</span><br><span>ast week to aid the beleaguered city of Flint, Michigan as it tries to remed=</span><br><span>y its drinking water issues.&amp;nbsp; Sen. Inhofe, the lead GOP Senator on the b=</span><br><span>ill, called it =E2=80=9Ccommon-sense," and noted that the spending is alread=</span><br><span>y programmed and involves no supplemental appropriation. &amp;nbsp; The bill may=</span><br><span>be ready to move forward after Sen. Cruz lifted a hold he had placed on the=</span><br><span>bill last week. &amp;nbsp;Sen. Mike Lee is still a hold-out.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p=</span><br><span>class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;The bill provides $250 million to assi=</span><br><span>st the residents of Flint, Michigan and other American cities experiencing c=</span><br><span>ritical problems with their water supplies by&amp;nbsp;increasing funding for Dr=</span><br><span>inking Water Act State Revolving Funds and provide start-up funding for the n=</span><br><span>ew Water Infrastructure Finance and Innovation Act. &amp;nbsp;It also provides:&lt;=</span><br><span>/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; $100 mill=</span><br><span>ion for Drinking Water State Revolving Funds (SRFs) accessible by any state w=</span><br><span>ith a drinking water emergency.&amp;nbsp; It requires states to submit plans exp=</span><br><span>laining how the money will be spent to address the emergency before funding i=</span><br><span>s provided. &amp;nbsp;&amp;nbsp;Funds that remain after 18 months will be distribute=</span><br><span>d to all states under the existing SRF formula.&amp;nbsp;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=</span><br><span>=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; $70 million in funding to b=</span><br><span>ack secured loans made under the new Water Infrastructure Finance and Innova=</span><br><span>tion Act (WIFIA).&amp;nbsp; A federal investment of $70 million could support se=</span><br><span>cured loans of up to $4.2 billion to address water and wastewater infrastruc=</span><br><span>ture needs across the country, according to Sen. Inhofe=E2=80=99s office.&amp;nb=</span><br><span>sp; All states and all communities with clean water and drinking water infra=</span><br><span>structure needs are eligible for this assistance.&amp;nbsp;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p cla=</span><br><span>ss=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp; $50 million for various i=</span><br><span>n authorized health programs for national use to address and prevent impacts=</span><br><span>from exposure to lead.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"marg=</span><br><span>in-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&lt;b&gt;Where will the money come from? &amp;nbsp;&amp;nbsp;&lt;/b&gt;The package has been f=</span><br><span>ully paid for -- it redirects appropriations by taking funds from the Advanc=</span><br><span>ed Technology Vehicles Manufacturing (ATVM) Fund, which offers loans for aut=</span><br><span>o companies.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0=</span><br><span>.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Does t=</span><br><span>hat matter?&lt;/b&gt;&amp;nbsp; &amp;nbsp;Per Sen. Inhofe =E2=80=9C[the ATVM is] a failed p=</span><br><span>rogram that hasn=E2=80=99t been used in more than a year and has only issued=</span><br><span>five loans since 2008."&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bo=</span><br><span>ttom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;=</span><br><span>b&gt;More on ATVM&lt;/b&gt;: The ATVM program is authorized to award up to $25 billio=</span><br><span>n in loans; there is no deadline for completing such loan commitments. Congr=</span><br><span>ess funded the program in 2009, when it appropriated $7.5 billion to cover t=</span><br><span>he subsidy cost for the $25 billion in loans, as well as $10 million for pro=</span><br><span>gram implementation. Since the start of the program, DOE has awarded $8.4 bi=</span><br><span>llion in loans to five companies. As of January 2015, ATVM has $16.6 billion=</span><br><span>in remaining loan authority. No new loans have been made since 2011. Two co=</span><br><span>mpanies =E2=80=94 Fisker and the Vehicle Production Group =E2=80=94 were una=</span><br><span>ble to make payments on their loans, and DOE auctioned the loans off in the f=</span><br><span>all of 2013. Tesla paid off all of its loan in 2013, nine years ahead of sch=</span><br><span>edule.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001=</span><br><span>pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Criticisms=</span><br><span>of ATVM:&amp;nbsp;&lt;/b&gt;The unobligated funds remaining for the program have been=</span><br><span>a point of contention in recent appropriations debates. The House has voted=</span><br><span>several times to transfer some of the unused appropriation for the ATVM sub=</span><br><span>sidy costs to other purposes. None of these transfers were enacted. Other le=</span><br><span>gislators have sought to expand the program. Two recent federal reports call=</span><br><span>for rescinding the program=E2=80=99s unobligated balance: the FY2015 budget=</span><br><span>resolution reported by the House Budget Committee calls for outright rescis=</span><br><span>sion, and an April 2014 GAO report recommends Congress consider taking&lt;b&gt;&amp;nb=</span><br><span>sp;&lt;/b&gt;the same step unless DOE can generate new demand for the program.&lt;/sp=</span><br><span>an&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;b style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Legislative Strategy: &amp;nbsp;&amp;nbs=</span><br><span>p;&lt;/b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Architects o=</span><br><span>f the bipartisan deal put out a hotline request to see if anyone would objec=</span><br><span>t to a series of procedural moves that would split Flint aid off the energy b=</span><br><span>ill (S. 2012), attach it to a House bill (H.R. 4470) sponsored by Reps. Dan K=</span><br><span>ildee and Fred Upton, allow voice votes on 30 amendments to the energy bill,=</span><br><span>and allow roll call votes on eight additional amendments. Michigan Sens. De=</span><br><span>bbie Stabenow and Gary Peters said Democrats are on board, but in order to a=</span><br><span>chieve unanimous consent, Republicans need to sign on.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cl=</span><br><span>ass=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Will it pass?&lt;/b&gt;&amp;nbsp; The Flint pack=</span><br><span>age and the energy bill amendments would come to a vote only after the Senat=</span><br><span>e gets unanimous consent to some procedural maneuvers. Lee's hold went unnot=</span><br><span>iced earlier when GOP presidential candidate Sen. Ted Cruz had a hold of his=</span><br><span>own, which he has now lifted. The Senate had hoped to hold votes on Flint a=</span><br><span>nd end debate on the energy bill as early as next week.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp; &amp;nbsp;=</span><br><span>&amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp=</span><br><span>; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp;&lt;/span&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cla=</span><br><span>ss=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;=</span><br><span>b&gt;What=E2=80=99s Next?&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;/b&gt;Sen. Stabenow, a key leader on t=</span><br><span>he bill, predicted that =E2=80=9Cone way or another=E2=80=9D the package wou=</span><br><span>ld be voted on in the Senate this week.&amp;nbsp; And while&amp;nbsp;the House hasn'=</span><br><span>t decided what it will do if the Flint bill clears the Senate, Energy and Co=</span><br><span>mmerce Committee Chairman Fred Upton said it would move quickly.&lt;/span&gt;&lt;/p&gt;&lt;=</span><br><span>p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;The Obama administration, which declared Flint a federal emergency in Ja=</span><br><span>nuary freeing up much-needed funds for the distressed city, has not issued a=</span><br><span>n official stance on the Flint deal.&amp;nbsp; Early in the year the President a=</span><br><span>lso made available to the state of Michigan $80 million from a revolving fun=</span><br><span>d for infrastructure repair and improvement.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;A numb=</span><br><span>er of important events are scheduled for the month of March, listed below.&lt;/=</span><br><span>span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;&amp;nbsp; =E2=80=A2&amp;nbsp; &amp;nbsp;&lt;a href=3D"x-apple-data-detectors=</span><br><span>://15" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calend=</span><br><span>ar-event" x-apple-data-detectors-result=3D"15"&gt;March 3&lt;/a&gt;&amp;nbsp;--&amp;nbsp;Flin=</span><br><span>t is supposed to begin its lead service line replacement project.&lt;/span&gt;&lt;/p&gt;=</span><br><span>&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&amp;nbsp; =E2=80=A2&amp;nbsp; &amp;nbsp;&lt;a href=3D"x-apple-data-detectors://16" x-a=</span><br><span>pple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x=</span><br><span>-apple-data-detectors-result=3D"16"&gt;March 6&lt;/a&gt;&amp;nbsp;--&amp;nbsp;The 7&lt;sup&gt;th&lt;/s=</span><br><span>up&gt;&amp;nbsp;Democratic debate will take place in the city of Flint, MI.&amp;nbsp;&amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;&amp;nbsp; =E2=80=A2 &amp;nbsp;&lt;/span&gt;&lt;b style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D"x-apple-data-detectors://17" x-apple=</span><br><span>-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-ap=</span><br><span>ple-data-detectors-result=3D"17"&gt;March 15&lt;/a&gt;&amp;nbsp;--&amp;nbsp;&lt;/b&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;House Committee on Oversig=</span><br><span>ht and Government Reform will hold its next hearing on the Flint crisis.&amp;nbs=</span><br><span>p; On schedule is testimony on the Safe Drinking Water Act (SDWA) by various=</span><br><span>policy professionals.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; =E2=80=A2&amp;nbsp; &amp;nbsp;&lt;a href=3D=</span><br><span>"x-apple-data-detectors://18" x-apple-data-detectors=3D"true" x-apple-data-d=</span><br><span>etectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"18"&gt;March 1=</span><br><span>7&lt;/a&gt;&amp;nbsp;--&amp;nbsp;&lt;u&gt;&amp;nbsp;&lt;/u&gt;Hearings resume on SDWA oversight, with Mich=</span><br><span>igan Governor Rick Snyder and EPA Administrator Gina McCarthy scheduled to t=</span><br><span>estify.&lt;/span&gt;&lt;/p&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;&lt;hr style=3D"box-sizing: content-box; borde=</span><br><span>r-style: solid; border-color: gray; height: 0px;"&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;p class=</span><br><span>=3D"MsoNormal"&gt;&lt;b&gt;&lt;u&gt;Upcoming/Recent Updates&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/=</span><br><span>div&gt;&lt;div&gt;&lt;div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Wed -- Flint&amp;nbsp;&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;=</span><br><span>nbsp; Thurs -- Municipal Finance Caucus&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp; Fri -- Pu=</span><br><span>erto Rico&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Budget Irresolution&lt;/span=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;=</span><br></blockquote><span>nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp;13 D Regs&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; ERI/Housi=</span><br><span>ng&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Intl Tax Reform&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;=</span><br><span>nbsp; EU/US Derivatives Deal&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;=E2=80=A2 &amp;nbsp; Pension Crisis&lt;/sp=</span><br><span>an&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (M=</span><br><span>ar. 2)&amp;nbsp;&lt;/div&gt;&lt;div&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/div&gt;&lt;div&gt;B=</span><br><span>igger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/div&gt;&lt;div&gt;&lt;div&gt;Infrastructure Fi=</span><br><span>nance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/div&gt;&lt;div&gt;Does DFA Fail on Too Big to Fai=</span><br><span>l? (Feb. 17)&lt;/div&gt;&lt;div&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/d=</span><br><span>iv&gt;&lt;div&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/div&gt;&lt;div&gt;The Fed Holds Ste=</span><br><span>ady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;T=</span><br><span>ax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2=</span><br><span>)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nb=</span><br><span>sp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;=</span><br><span>div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthc=</span><br><span>are Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"text-decoration: -webkit-=</span><br><span>letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;div&gt;2016 Tax Agend=</span><br><span>a on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 1=</span><br><span>3)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 T=</span><br><span>ax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/spa=</span><br><span>n&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sande=</span><br><span>rs' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-E=</span><br><span>nd Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec=</span><br><span>. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;=</span><br><span>div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extender N=</span><br><span>egotiations &amp;nbsp;(Dec. 6)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update=</span><br></blockquote><span>&amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;d=</span><br><span>iv&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;/div&gt;&lt;/div&gt;&lt;p style=3D"box-sizing: border-box; margin: 0=</span><br><span>px;"&gt;&lt;br&gt;&lt;/p&gt;&lt;p style=3D"box-sizing: border-box; margin: 0px;"&gt;Mike &amp;amp; Co=</span><br><span>.&amp;nbsp;&lt;/p&gt;&lt;div&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;This has been a busy week in Washington especially on t=</span><br><span>he tax front, with more to follow. &amp;nbsp;We've already seen a number of hear=</span><br><span>ings and developments on the most salient current tax bills and related prop=</span><br><span>osals in the last two days, which are &amp;nbsp;itemized and vetted for viabilit=</span><br><span>y below.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Tomorrow, an assessment of which of these, as well a=</span><br><span>s "must-pass" tax items such as the expiring extenders, will make it to Obam=</span><br><span>a's desk by year-end and a review of&lt;/span&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;Brookings' panel discussion,&amp;nbsp;&lt;/span&gt;&lt;span style=3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;"Tax policy in 2016: What's new an=</span><br><span>d what's next," with&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&amp;nbsp;Ways and Means Chair Kevin Brady&amp;nbsp;&lt;/span&gt;&lt;span style=3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;and Senate Finance ranking member R=</span><br><span>on Wyden.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;div&gt;Best,&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;Dana&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/div&gt;&lt;div&gt;______________________________________&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;=</span><br></blockquote><span>p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D=</span><br><span>"s4" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;=E2=80=A2&amp;nbs=</span><br><span>p;&lt;/span&gt;&lt;span class=3D"s5" style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>); font-weight: bold;"&gt;&lt;span class=3D"bumpedFont20"&gt;&lt;u&gt;International Tax Ref=</span><br><span>orm&lt;/u&gt;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s6" style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;&amp;nbsp;--&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p cl=</span><br><span>ass=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s6"=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFo=</span><br><span>nt20"&gt;&lt;br&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin=</span><br><span>-bottom: 0px;"&gt;&lt;span class=3D"s6" style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;Probably the most likely tax legislati=</span><br><span>on to pass in 2016, even though it's still called unlikely by key policymake=</span><br><span>rs. &amp;nbsp;The two parties will have difficulty coming to an agreement on fir=</span><br><span>st what to do and then how to do it.&amp;nbsp; Narrower legislation is more like=</span><br><span>ly to succeed than comprehensive reform. &amp;nbsp;Most viable bills in this are=</span><br><span>a:&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin-bottom:=</span><br><span>0px;"&gt;&lt;span class=3D"s6"&gt;&lt;span class=3D"bumpedFont20" style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s8" style=3D=</span><br><span>"margin-top: 0px; margin-bottom: 0px; margin-left: 36px;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"s5" style=3D"font-wei=</span><br><span>ght: bold;"&gt;&lt;span class=3D"bumpedFont20"&gt;=E2=80=A2 &amp;nbsp;Earnings Stripping -=</span><br><span>- &amp;nbsp;&lt;/span&gt;&lt;/span&gt;On the eve of today=E2=80=99s Ways and Means hearing r=</span><br><span>egarding international tax reform, &amp;nbsp;ranking member&amp;nbsp;&lt;/span&gt;&lt;span cl=</span><br><span>ass=3D"s6" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D=</span><br><span>"bumpedFont20"&gt;Chris Van&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s6" style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;Hollen&lt;/=</span><br><span>span&gt;&lt;/span&gt;&lt;span class=3D"s6" style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;&amp;nbsp;and senior member Sander Levin off=</span><br><span>ered bills to constrain the practice whereby foreign parent companies extend=</span><br><span>large loans to their newly acquired U.S. partners and take advantage of the=</span><br><span>tax-deductible status of interest payment arrangement. &amp;nbsp;&lt;/span&gt;&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;p class=3D"s8" style=3D"margin-top: 0px; margin-bottom: 0px; margin-lef=</span><br><span>t: 36px;"&gt;&lt;span class=3D"s6"&gt;&lt;span class=3D"bumpedFont20" style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s8" styl=</span><br><span>e=3D"margin-top: 0px; margin-bottom: 0px; margin-left: 36px;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"s5" style=3D"font=</span><br><span>-weight: bold;"&gt;&lt;span class=3D"bumpedFont20"&gt;=E2=80=A2. Exit Tax Bills -- &amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s6"&gt;&lt;span class=3D"bumpedFont20"&gt;Bills seek=</span><br><span>ing to reduce corporate inversions by making them too expensive to make busi=</span><br><span>ness sense are likely to be introduced before next recess.&amp;nbsp;&lt;/span&gt;&lt;/spa=</span><br><span>n&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s8" style=3D"margin-top: 0px; margin-bottom: 0px; m=</span><br><span>argin-left: 36px;"&gt;&lt;span class=3D"s5" style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0); font-weight: bold;"&gt;&lt;span class=3D"bumpedFont20"&gt;&lt;br&gt;&lt;/span&gt;&lt;/s=</span><br><span>pan&gt;&lt;/p&gt;&lt;p class=3D"s8" style=3D"margin-top: 0px; margin-bottom: 0px; margin=</span><br><span>-left: 36px;"&gt;&lt;span class=3D"s5" style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;&lt;b&gt;=E2=80=A2 &amp;nbsp;Repatriation -- &amp;nb=</span><br><span>sp;&lt;/b&gt;Ryan and Schumer&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s6" style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;have talk=</span><br><span>ed up the idea of introducing legislation to repatriate U.S. multinational p=</span><br><span>rofits that are held abroad.&amp;nbsp; A compromise will have to be struck betwe=</span><br><span>en Democrats seeking reduced tax levels for this purpose and Republicans who=</span><br><span>cite moral hazard. &amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s5" style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;The Obama&lt;b&gt;=</span><br><span>&amp;nbsp;&lt;/b&gt;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s6" style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;budget for FY2017 includes a=</span><br><span>proposal to allow overseas profits to come home at a special 14 percent tra=</span><br><span>te, and all overseas profits thereafter be taxed at 19 percent.&amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p c=</span><br><span>lass=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s9=</span><br><span>" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFo=</span><br><span>nt20"&gt;&lt;b&gt;=E2=80=A2 &amp;nbsp;&lt;u&gt;Broader&lt;/u&gt;&lt;/b&gt;&lt;u&gt;&amp;nbsp;&lt;/u&gt;&lt;b style=3D"text-dec=</span><br><span>oration: underline;"&gt;Corporate Tax Reform&lt;/b&gt;&lt;b&gt;&amp;nbsp; -- &amp;nbsp;&amp;nbsp;&lt;/b&gt;&lt;/=</span><br><span>span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px=</span><br><span>;"&gt;&lt;span class=3D"s10" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;=</span><br><span>span class=3D"bumpedFont20"&gt;&lt;br&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"m=</span><br><span>argin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s10" style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;Any successful=</span><br><span>across the board corporate tax reform would almost have to lower the nomina=</span><br><span>l corporate tax rate of 35 percent. &amp;nbsp;-- the highest in the world. &amp;nbsp=</span><br><span>;Republicans are adamant that the high rate yields corporate inversions.&lt;/sp=</span><br><span>an&gt;&lt;/span&gt;&lt;span class=3D"s10" style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;&lt;span class=3D"bumpedFont20"&gt;&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"=</span><br><span>s10" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bump=</span><br><span>edFont20"&gt;Ways and Means chair Brady&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s9" style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0); font-weight: bold;"&gt;&lt;span class=3D=</span><br><span>"bumpedFont20"&gt;&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s10" style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;has pointed to t=</span><br><span>he corporate rate repeatedly as a sign that the U.S. has a =E2=80=9Cbroken t=</span><br><span>ax code that discourages investment and growth&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s=</span><br><span>11" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpe=</span><br><span>dFont20"&gt;.=E2=80=9D&lt;/span&gt;&lt;/span&gt;&lt;span class=3D"s11" style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"bumpedFont20"&gt;&amp;nbsp;&lt;/span&gt;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Brady has not yet released his own reform b=</span><br><span>ill, but an op-ed of his published this morning gives an indication of what i=</span><br><span>t will include: &amp;nbsp;=E2=80=9C&lt;/span&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;We must address the real root of the problem =E2=80=93 o=</span><br><span>ur broken tax code that discourages investment and growth =E2=80=A6 Our&amp;nbsp=</span><br><span>;sky-high 35 percent corporate tax rate bears much of the blame =E2=80=A6 We=</span><br><span>cannot allow American taxpayers to foot the bill for tax revenue grabs in E=</span><br><span>urope and elsewhere.=E2=80=9D&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top:=</span><br><span>0px; margin-bottom: 0px;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin-bot=</span><br><span>tom: 0px;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Provisi=</span><br><span>ons to look for: a lower overall corporate tax rate, language to address Eur=</span><br><span>opean investigations on U.S. businesses dodging taxes abroad.&amp;nbsp; The bill=</span><br><span>likely won=E2=80=99t include language restricting inversions. &amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;div dir=3D"ltr"&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span class=3D"s10"&gt;&lt;s=</span><br><span>pan class=3D"bumpedFont20"&gt;Senate Finance chair Hatch&lt;/span&gt;&lt;/span&gt;&lt;span cla=</span><br><span>ss=3D"s9" style=3D"font-weight: bold;"&gt;&lt;span class=3D"bumpedFont20"&gt;&amp;nbsp;&lt;/=</span><br><span>span&gt;&lt;/span&gt;&lt;span class=3D"s10"&gt;&lt;span class=3D"bumpedFont20"&gt;has suggested w=</span><br><span>riting legislation to make dividends tax deductible for corporations, elimin=</span><br><span>ating the so-called =E2=80=9Cdouble taxation=E2=80=9D of hitting corporate e=</span><br><span>arnings as well as dividend incomes from investors. &amp;nbsp;The proposal faces=</span><br><span>long odds.&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;p class=3D"s2" style=3D"mar=</span><br><span>gin-top: 0px; margin-bottom: 0px;"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; m=</span><br><span>argin-bottom: 0px;"&gt;&lt;span class=3D"s14" style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;&lt;b&gt;=E2=80=A2&amp;nbsp;&lt;/b&gt;&amp;nbsp;&lt;/span&gt;&lt;span class=3D"s14" style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0); font-weight: bold;"&gt;&lt;u&gt;Earned-=</span><br><span>Income Tax Credit&lt;/u&gt;&amp;nbsp;(EITC) --&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D=</span><br><span>"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s15" style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"s2" style=3D"m=</span><br><span>argin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s15" style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;One tax provisions in the Obama FY17 budget=</span><br><span>that has been muted if not mooted this week is his proposal to expand the E=</span><br><span>ITC for childless workers and create a $500 =E2=80=9Csecond earner=E2=80=9D t=</span><br><span>ax credit. &amp;nbsp;The cost would be $150 billion over ten years.&amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"=</span><br><span>s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;During his SOTU, Obama expressed his desire=</span><br><span>to work with Speaker Ryan on the issue: &amp;nbsp;=E2=80=9CI also know Speaker R=</span><br><span>yan has talked about his interest in tackling poverty. America is about givi=</span><br><span>ng everybody willing to work a chance, a hand up. And I=E2=80=99d welcome a s=</span><br><span>erious discussion about strategies we can all support, like expanding tax cu=</span><br><span>ts for low-income workers who don't have children.=E2=80=9D&lt;/span&gt;&lt;/p&gt;&lt;p cla=</span><br><span>ss=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s19"=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=</span><br><span>=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s19" s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;The credit is a long-stan=</span><br><span>ding darling of both progressives and the GOP establishment. Ryan and Presid=</span><br><span>ent Obama support extending it to childless workers. &amp;nbsp;But they face res=</span><br><span>istance from&amp;nbsp;&lt;/span&gt;&lt;span class=3D"s19" style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;not just the hard right but from Sen. Hatch, who say it=</span><br><span>=E2=80=99s not =E2=80=9Cnecessary=E2=80=9D to expand the break.&amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;p class=3D"s2" style=3D"margin-top: 0px; margin-bottom: 0px;"&gt;&lt;span cla=</span><br><span>ss=3D"s19" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/=</span><br><span>p&gt;&lt;div class=3D"MsoNormal" align=3D"center" style=3D"text-decoration: -webki=</span><br><span>t-letterpress; text-align: center;"&gt;&lt;hr size=3D"2" width=3D"100%" align=3D"c=</span><br><span>enter" style=3D"text-align: start;"&gt;&lt;/div&gt;&lt;p class=3D"s2" style=3D"margin-to=</span><br><span>p: 0px; margin-bottom: 0px;"&gt;&lt;span class=3D"s19" style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rg=</span><br><span>ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0=</span><br><span>980392); text-decoration: -webkit-letterpress;"&gt;Upcoming/Recent Updates&lt;/p&gt;&lt;=</span><br><span>div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>=E2=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbs=</span><br></blockquote><span>p;Budget (Ir)Resolution&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/div&gt;&lt;div&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;Top Tax Bill=</span><br><span>s Handicapped &amp;nbsp;(Feb. 24)&lt;/div&gt;&lt;div&gt;Bigger than the Budget Battle &amp;nbsp;=</span><br><span>(Feb. 23)&lt;/div&gt;&lt;div&gt;&lt;div&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18)&amp;nbsp;=</span><br><span>&lt;/div&gt;&lt;div&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/div&gt;&lt;div&gt;Below the R=</span><br><span>adar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/div&gt;&lt;div&gt;International Tax Status &amp;=</span><br><span>nbsp;(Feb. 11)&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obam=</span><br><span>a's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)=</span><br><span>&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Deb=</span><br><span>t Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;D=</span><br><span>ebate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regulators &amp;=</span><br><span>nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;=</span><br><span>&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=</span><br><span>-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"=</span><br><blockquote type="cite"><span>HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.=</span><br></blockquote><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;div=</span><br><span>style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/di=</span><br><span>v&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392);"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/d=</span><br><span>iv&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div sty=</span><br><span>le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=</span><br><span>30, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"co=</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sa=</span><br><span>nders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End R=</span><br><span>eview: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (Dec. 1=</span><br><span>5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=</span><br><span>tion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;=</span><br><span>&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"colo=</span><br><span>r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=</span><br><span>, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Cus=</span><br><span>toms Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations=</span><br><span>&amp;nbsp;(Dec. 6)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.70196=</span><br><span>1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)=</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;di=</span><br><span>v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;----&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/d=</span><br><span>iv&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composi=</span><br><span>tion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lett=</span><br><span>erpress;"&gt;Mike and Co. --&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;The soap opera that is the federal budget mak=</span><br><span>ing process saw sone minor&amp;nbsp;prima donna&amp;nbsp;pratfalls this week.&amp;nbsp; N=</span><br><span>othing remotely on the scale of blocking the confirmation of a Supreme Justi=</span><br><span>ce.&amp;nbsp; But as Senate Budget's ranking member Sen. Cardin warned at a brea=</span><br><span>kfast today, you can forget regular order on the budget -- after the Preside=</span><br><span>nt submits a nomination, all comity in the Senate will be gone until Electio=</span><br><span>n Day.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Details and the latest below.&amp;nbsp; Taxes&amp;nbsp;&lt;span class=3D=</span><br><span>"" tabindex=3D"0"&gt;&lt;span class=3D""&gt;tomorrow (b&lt;/span&gt;&lt;/span&gt;e still your hea=</span><br><span>rt, right?).&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;div class=3D"MsoNormal" align=3D=</span><br><span>"center" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; te=</span><br><span>xt-align: center;"&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpress;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;Story in the Senate&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" st=</span><br><span>yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;At the same DSCC &amp;nbsp;breakfast=</span><br><span>one month ago, Sen. Merkley announced that, to his surprise, Senate Budget C=</span><br><span>hair Mike Enzi was going to put out a manager's mark for an FY17 budget reso=</span><br><span>lution for Committee markup, for February. &amp;nbsp;Today, Enzi withdrew his ma=</span><br><span>rkup plans, without announcing a reschedule date.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoN=</span><br><span>ormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;To add to the growing=</span><br><span>problems within the GOP, the party, led by Senator Mitch McConnell, has dec=</span><br><span>lared all-out war on Obama=E2=80=99s impending Supreme Court nomination -- a=</span><br><span>n&amp;nbsp;"nomination abomination"&amp;nbsp;-- making it even more difficult to pre=</span><br><span>dict how these budget deliberations will end.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"Ms=</span><br><span>oNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;=</span><br><span>b&gt;&lt;u&gt;Histrionics of the House&amp;nbsp;&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Even before Obama released his FY201=</span><br><span>7 budget proposal earlier this month, House Republicans made it a point to e=</span><br><span>mphasize that it was DOA.&amp;nbsp; Now, GOP is running into some dead ends of i=</span><br><span>ts own.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=</span><br><span>xt-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;Speaker Ryan announced early on that he intended to pass t=</span><br><span>he budget through regular order this year -- a process that hasn=E2=80=99t b=</span><br><span>een successfully completed in a generation.&amp;nbsp; Due to internal dicisions a=</span><br><span>nd outside pressures, House Republicans have changed their tune. &amp;nbsp;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=</span><br><span>bkit-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Yesterday, House Budget announced plans for a&amp;nbsp;proposal&amp;nbsp;next month=</span><br></blockquote><span>to stick with the spending levels set by&amp;nbsp;last fall=E2=80=99s deal with=</span><br><span>the White House while also giving members the chance to vote&amp;nbsp;on other b=</span><br><span>ills that would slash government spending&lt;/span&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;. The compromise is meant to appease hard-righ=</span><br><span>t GOP members who vehemently opposed the Obama-Boehner budget agreement.&amp;nbs=</span><br><span>p; Per Ryan's office: =E2=80=9CThis proposal enjoys the overwhelming support=</span><br><span>of the committee members, and the chairman looks forward to sharing it with=</span><br><span>the broader Conference as we continue moving this process forward.=E2=80=9D=</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;The conservative Freedom Caucus so far has supported Speaker Ryan=E2=80=</span><br><span>=99s overtures for cooperation on the budget. &amp;nbsp;But the GOP's hard-right=</span><br><span>wing may not remain so understanding of the Speaker=E2=80=99s position, esp=</span><br><span>ecially if their credentials are called into question by outside groups with=</span><br><span>sway over their base of support. &amp;nbsp; Heritage Action said&amp;nbsp;&lt;span cla=</span><br><span>ss=3D"" tabindex=3D"0"&gt;&lt;span class=3D""&gt;Monday&lt;/span&gt;&lt;/span&gt;&amp;nbsp;that the g=</span><br><span>roup would oppose any budget blueprint that sticks to the Obama-Boehner deal=</span><br><span>, which increases spending by about $30 billion.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNo=</span><br><span>rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;b&gt;&lt;=</span><br><span>u style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Going Forward&amp;nbsp;&lt;/u=</span><br><blockquote type="cite"><span>&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -we=</span><br></blockquote><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;It won't be an easy road ahead on the budget. &amp;nbsp; The conservative cau=</span><br><span>cus has several dozen members, which gives it the power to torpedo any budge=</span><br><span>t proposal that lacks at least some Democratic support.&amp;nbsp; If it decides t=</span><br><span>o back the new proposal put forth by Chair Tom Price of House Budget, it wou=</span><br><span>ld be likely for GOP leaders to be able to move forward.&amp;nbsp; Some members h=</span><br><span>ave voiced their willingness to cooperate, but the pull of outside right-win=</span><br><span>g groups may prove to be too strong.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Meanwhile, Minority Whip&amp;nbsp;Steny H=</span><br><span>oyer said&amp;nbsp;today that any Republican budget strategy that strays from th=</span><br><span>e Obama-Boehner deal would be opposed by House Democrats.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p=</span><br><span>class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=</span><br><span>terpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Hou=</span><br><span>se Budget plan is to submit the proposal honoring the spending limits agreed=</span><br><span>to last year, while allowing the hard-right GOP wing to vote on other bills=</span><br><span>which would slash spending,&amp;nbsp;mollifying the more hawkish&amp;nbsp;members.&amp;=</span><br><span>nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Dearth of Legislative Days&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal=</span><br><span>" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Lengthening the odds again=</span><br><span>st Ryan, the House Budget is now working on a delayed schedule.&amp;nbsp; In mid=</span><br><span>-January, the House Budget Committee announced that it would be releasing it=</span><br><span>s markup of the White House budget proposal early -=E2=80=93&amp;nbsp;&lt;a&gt;&lt;/a&gt;&lt;a h=</span><br><span>ref=3D"x-apple-data-detectors://2" x-apple-data-detectors=3D"true" x-apple-d=</span><br><span>ata-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"2"&gt;on=</span><br><span>&amp;nbsp;&lt;/a&gt;&lt;span class=3D""&gt;&lt;span class=3D""&gt;&lt;a href=3D"x-apple-data-detector=</span><br><span>s://2" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calend=</span><br><span>ar-event" x-apple-data-detectors-result=3D"2"&gt;February 25&lt;/a&gt;&lt;/span&gt;&lt;/span&gt;&lt;=</span><br><span>a href=3D"x-apple-data-detectors://2" x-apple-data-detectors=3D"true" x-appl=</span><br><span>e-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"2"=</span><br><blockquote type="cite"><span>.&lt;/a&gt;&amp;nbsp;However, that has also changed&lt;b&gt;&lt;i&gt;.&amp;nbsp;&lt;/i&gt;&lt;/b&gt;Yesterday&lt;b&gt;&lt;=</span><br></blockquote><span>i&gt;,&amp;nbsp;&lt;/i&gt;&lt;/b&gt;The Committee announced that it was now delaying its markup=</span><br><span>till sometime in March.&amp;nbsp; The change is curious for a few reasons.&amp;nbsp=</span><br><span>; It raises the question of why the House Budget Committee said it would hav=</span><br><span>e the markup done so early in the first place. Moreover, it goes against the=</span><br><span>House Republicans message of =E2=80=9Cgetting things done=E2=80=9D during t=</span><br><span>his Congress.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Democrats are jumping on this delay already.&amp;nbsp; N=</span><br><span>ancy Pelosi said: =E2=80=9CYet again, it=E2=80=99s the Speaker=E2=80=99s own=</span><br><span>broken promises =E2=80=93 and his own rhetoric =E2=80=93 that are coming ba=</span><br><span>ck to bite him.&amp;nbsp; Because while the Speaker pledged an end to dysfunctio=</span><br><span>nal House-Republican leadership, all the American people are seeing is more o=</span><br><span>f the same.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;One thing is looks increasingly likely: that=</span><br><span>the nomination will exert a tidal force on at least the budget deliberation=</span><br><span>s and everything else, through the election. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"Ms=</span><br><span>oNormal"&gt;&lt;br&gt;&lt;/p&gt;&lt;div&gt;&lt;span id=3D"docs-internal-guid-4733a1b7-ec8c-3344-1176=</span><br><span>-d4eb9086feb6"&gt;&lt;hr style=3D"box-sizing: content-box; border-style: solid; bo=</span><br><span>rder-color: gray; height: 0px;"&gt;&lt;/span&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal"&gt;&lt;br&gt;&lt;/p&gt;=</span><br><span>&lt;p class=3D"MsoNormal"&gt;Upcoming/Recent Updates&lt;/p&gt;&lt;div&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;Tax Talk&lt;/span&gt;&lt;/div&gt;&lt;d=</span><br><span>iv&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp=</span><br><span>;Derivatives Agreement w. EU&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/d=</span><br><span>iv&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;div&gt;Infr=</span><br><span>astructure Finance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/div&gt;&lt;div&gt;Does DFA Fail on T=</span><br><span>oo Big to Fail? (Feb. 17)&lt;/div&gt;&lt;div&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb.=</span><br><span>16)&amp;nbsp;&lt;/div&gt;&lt;div&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/div&gt;&lt;div&gt;The =</span><br><span>Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9=</span><br><span>)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank=</span><br><span>&amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;di=</span><br><span>v&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Ra=</span><br><span>tes, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Challenged &amp;nbsp;=</span><br><span>(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sand=</span><br><span>ers' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rg=</span><br><span>ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0=</span><br><span>980392); text-decoration: -webkit-letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan.=</span><br><span>17)&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-=</span><br><span>fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;div style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;=</span><br><span>2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div style=3D"color: rgba(0=</span><br><span>, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=</span><br><span>92);"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div style=3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Po=</span><br><span>licy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;=</span><br><span>amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp=</span><br><span>;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=</span><br><span>composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1)=</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year=</span><br><span>-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;&amp;nbsp;(&lt;a href=3D"x-apple-data-detectors://20" x-apple-data=</span><br><span>-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-d=</span><br><span>ata-detectors-result=3D"20"&gt;Dec. 29&lt;/a&gt;) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (&lt;a href=3D"x-apple-data-=</span><br><span>detectors://21" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D=</span><br><span>"calendar-event" x-apple-data-detectors-result=3D"21"&gt;Dec. 15&lt;/a&gt;)&lt;/span&gt;&lt;/d=</span><br><span>iv&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(&lt;a href=3D"x-apple-data-detectors=</span><br><span>://22" x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calend=</span><br><span>ar-event" x-apple-data-detectors-result=3D"22"&gt;Dec. 14&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><span>style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;FY 2016 Omnibus Talks (&lt;a href=3D"x-apple-data-detectors://23" x-=</span><br><span>apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event"=</span><br><span>x-apple-data-detectors-result=3D"23"&gt;Dec. 10&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;Customs Bill &amp;nbsp;(&lt;a href=3D"x-apple-data-detectors://25" x-apple-data-d=</span><br><span>etectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-dat=</span><br><span>a-detectors-result=3D"25"&gt;Dec. 8&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extende=</span><br><span>r Negotiations &amp;nbsp;(&lt;a href=3D"x-apple-data-detectors://26" x-apple-data-d=</span><br><span>etectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-dat=</span><br><span>a-detectors-result=3D"26"&gt;Dec. 6&lt;/a&gt;)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Brown o=</span><br><span>n HFT &amp;nbsp;(&lt;a href=3D"x-apple-data-detectors://27" x-apple-data-detectors=3D=</span><br><span>"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-data-detectors=</span><br><span>-result=3D"27"&gt;Dec. 4&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbs=</span><br><span>p;(&lt;a href=3D"x-apple-data-detectors://29" x-apple-data-detectors=3D"true" x=</span><br><span>-apple-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D=</span><br><span>"29"&gt;Dec. 3&lt;/a&gt;)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;br&gt;&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;div&gt;&lt;span id=3D"docs-internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6"&gt;&lt;=</span><br></blockquote><span>hr style=3D"box-sizing: content-box; border-style: solid; border-color: gray=</span><br><span>; height: 0px;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;p clas=</span><br><span>s=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Mi=</span><br><span>ke &amp;amp; Co. --&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;One week ago, the House passed a bill that co=</span><br><span>uld alter and perhaps ease the way state and local infrastructure is finance=</span><br><span>d in the capital markets, when HR.2209, a bill to&amp;nbsp;"require the appropri=</span><br><span>ate Federal banking agencies to treat certain municipal obligations as level=</span><br><span>2A liquid assets, and for other purposes"&amp;nbsp;was adopted by the House wit=</span><br><span>h a voice vote. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;Thought the bill has flown below the m=</span><br><span>edia radar, it is significant. &amp;nbsp;Municipal obligations, including bonds,=</span><br><span>are at the heart of infrastructure investment in America.&amp;nbsp; And infrast=</span><br><span>ructure investment has been a large focus of this primary.&amp;nbsp; Both Democr=</span><br><span>atic candidates have proposed multi-hundred billion dollar infrastructure in=</span><br><span>vestment proposals.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Details below...&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"Ms=</span><br><span>oNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Best,&lt;/sp=</span><br><span>an&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;Dana&lt;/p&gt;&lt;div&gt;&lt;span id=3D"docs-internal-guid-47=</span><br><span>33a1b7-ec8c-3344-1176-d4eb9086feb6" style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;&lt;hr style=3D"box-sizing: content-box; border-style: solid; borde=</span><br><span>r-color: gray; height: 0px;"&gt;&lt;/span&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal" style=3D"ma=</span><br><span>rgin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;I=</span><br><span>nfrastructure is mostly funded at the state or local level through the use o=</span><br><span>f municipal bonds. &amp;nbsp;Between 2003 and 2012, counties, states, and other l=</span><br><span>ocalities invested $3.2 trillion in infrastructure through long-term tax-exe=</span><br><span>mpt municipal bonds, 2.5 times more than the federal investment. &amp;nbsp;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;b&gt;&lt;u&gt;The Bill&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal=</span><br><span>"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;HR 2209 requires=</span><br><span>federal banking regulators to include municipal bonds under the Liquidity C=</span><br><span>overage Ratio (LCR). &amp;nbsp;The LCR is designed to ensure that financial inst=</span><br><span>itutions have the necessary assets available to handle a liquidity disruptio=</span><br><span>n. &amp;nbsp;Local officials have said that if the new rules aren=E2=80=99t chan=</span><br><span>ged, it will saddle them with higher borrowing costs by eliminating incentiv=</span><br><span>es banks have to purchase their bonds. Without bonds, these governments will=</span><br><span>lose a significant source of their funding. &amp;nbsp;Per Indiana State Treasur=</span><br><span>er Kelly Mitchell: =E2=80=9CThis bill helps ensure cash-strapped school dist=</span><br><span>ricts and municipalities will continue to have access to bonds to finance pr=</span><br><span>ojects they think are best for their communities.=E2=80=9D&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;=</span><br><span>p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;Rep. Luke Messer, an Indiana Republican who wrote the bill: &amp;nbsp;=E2=80=</span><br><span>=9CPut simply, our bill requires the federal government to recognize the obv=</span><br><span>ious, that our municipal bonds are some of the safest investments in the wor=</span><br><span>ld and that we shouldn=E2=80=99t have rules that give preferential treatment=</span><br><span>to corporate bonds or other countries=E2=80=99 bonds over our own.=E2=80=9D=</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;After passing the House with unanimous bipartisan supp=</span><br><span>ort, a companion bill is expected to be introduced in the Senate this year. &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;Municipal Bond Issue&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;After the crisis o=</span><br><span>f 2008, federal regulators adopted international banking standards that requ=</span><br><span>ire banks to have enough "High-Quality Liquid Assets" to cover their cash ou=</span><br><span>tflows for 30 days in case of a future financial meltdown. &amp;nbsp;Now, munici=</span><br><span>pal bonds are not considered liquid assets and therefore cannot be included u=</span><br><span>nder the &amp;nbsp;LCR. &amp;nbsp; As a result, financial institutions have been dis=</span><br><span>couraged from holding municipal debt, which means that cash strapped municip=</span><br><span>alities and school districts may eventually be forced to reduce or even stop=</span><br><span>work on projects &amp;nbsp;financed with municipal bonds.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cl=</span><br><span>ass=3D"MsoNormal"&gt;&lt;u&gt;&lt;b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;Infrastructure Financing --&amp;nbsp;&lt;/span&gt;&lt;/b&gt;&lt;b style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Alternative Financing&lt;/b&gt;&lt;/u&gt;&lt;/p&gt;&lt;p class=3D"Ms=</span><br><span>oNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;&amp;nbsp;&lt;/b&gt;&lt;/span&gt;&lt;i style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;Tax-exempt bonds: &amp;nbsp;&lt;/i&gt;&lt;span style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;Exemption from federal taxes and many state and local taxes i=</span><br><span>s possible through the use of municipal bonds. &amp;nbsp; In recent years, with t=</span><br><span>he increasing use of PPPs, barriers to this tax exemption have arisen. &amp;nbsp=</span><br><span>;Treasury has reviewed relevant tax rules and based on their findings and ha=</span><br><span>ve put forth a proposal for an expanded and permanent America Fast Forward B=</span><br><span>ond Program as an alternative to tax-exempt bonds. &amp;nbsp;Based on the succes=</span><br><span>sful Build America Bond program, =E2=80=9Cwould provide an efficient borrowi=</span><br><span>ng subsidy to state and local governments while appealing to a broader inves=</span><br><span>tor base than traditional tax-exempt bonds [and] would cover a broad range o=</span><br><span>f projects for which tax-exempt bonds can be used.=E2=80=9D&amp;nbsp;&lt;/span&gt;&lt;/p&gt;=</span><br><span>&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&amp;nbsp;=E2=80=A2 &amp;nbsp;&lt;/span&gt;&lt;i style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;Obama=E2=80=99s budget proposal: &amp;nbsp;&lt;/i&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Obama has also put forth a plan to stre=</span><br><span>ngthen local and state government infrastructure projects. His plan relies o=</span><br><span>n a new Federal credit program to support public-private partnerships within=</span><br><span>the Department of the Treasury. It will provide direct loans to US infrastr=</span><br><span>ucture projects developed through PPPs. The Obama Administration believes th=</span><br><span>at private investment is crucial for infrastructure development moving forwa=</span><br><span>rd, so there should be more flexibility in regards to what PPP is subject to=</span><br><span>. In addition to that, President Obama has proposed the taxable, direct-pay A=</span><br><span>merica Fast Forward bond program to help finance infrastructure. &amp;nbsp;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;b style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;&lt;u&gt;State Infrastructure Banks&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Local governments rece=</span><br><span>ive financing in a number of ways. &amp;nbsp;Traditional sources such as tax rev=</span><br><span>enues have been dwindling and local authorities have been relying on federal=</span><br><span>government loan programs, public-private partnerships, and State Revolving =</span><br><span>Funds (SRFs). &amp;nbsp;State Infrastructure Banks (SIBs) are a subset of SRFs -=</span><br><span>- the funds act like a bank, because they don=E2=80=99t own the infrastructu=</span><br><span>re asset, but act as a lender or guarantor to the project sponsor. Per Brook=</span><br><span>ings: &amp;nbsp;=E2=80=9CSRFs rely on principal repayments, bonds, interest and f=</span><br><span>ees to re-capitalize and replenish the fund as a perpetual source of debt fi=</span><br><span>nancing.=E2=80=9D&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;SIBs generate more investment per dollar th=</span><br><span>an traditional federal and state grant programs. &amp;nbsp;They only exist in 33=</span><br><span>states and 10 of those SIBs are currently inactive. A large problem may be c=</span><br><span>ompliance with federal regulations. &amp;nbsp;Brookings again:&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;=</span><br><span>p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;=E2=80=9CWe found that many SIB officials cite compliance with federal r=</span><br><span>egulations as slowing down the investment process either because of environm=</span><br><span>ental and contractual requireme&lt;/span&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;nts or due to the lack of flexibility in projects that a=</span><br><span>re not Title 23 or 49 eligible. For states with smaller projects, this may b=</span><br><span>e prohibitively costly compared to the advantage of using the low-cost SIB f=</span><br><span>inancing.=E2=80=9D&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Just being called a bank subjects SI=</span><br><span>Bs to regulations that commercial banks are subject to. &amp;nbsp;SIBs are non-f=</span><br><span>or-profit organizations with a goal of increasing infrastructure investment,=</span><br><span>so they don=E2=80=99t quite fit into the category of the average bank. &amp;nbs=</span><br><span>p;SIBs may be more successful outside this classification.&amp;nbsp;&lt;/span&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cla=</span><br><span>ss=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Fo=</span><br><span>r or Against Dodd-Frank&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Before Dodd-Frank, particularly in t=</span><br><span>he case of relatively small municipalities, many underwriters forged long-te=</span><br><span>rm relationships with municipalities and would provide financial advice befo=</span><br><span>re and after a bond issuance. &amp;nbsp;With Dodd-Frank, that relationship chang=</span><br><span>ed, with a new =E2=80=9Cmunicipal adviser=E2=80=9D category that must regist=</span><br><span>er with the SEC and be regulated by the Municipal Securities Rulemaking Boar=</span><br><span>d (MSR).&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;No=</span><br><span>w, it is widely illegal to provide advice to governmental entities concernin=</span><br><span>g the issuance of municipal bonds, the use of financial derivatives, and the=</span><br><span>investment of the proceeds of a bond issue to, or on behalf, of a municipal=</span><br><span>entity or an obligated person unless the adviser is registered with the SEC=</span><br><span>.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;HR 2209 appears to address a problem within Dodd-Fran=</span><br><span>k, but it is unclear if it vitiates the law materially. &amp;nbsp;At face value,=</span><br><span>it appears to be more a technical fix. Dodd-Frank expanded regulations for b=</span><br><span>anking institutions, but the entities that fund state and local governments a=</span><br><span>re far unlike the TBTF institutions that Dodd-Frank was meant to regulate. &amp;=</span><br><span>nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;Groups like Americans for Financial Reform oppose=</span><br><span>HR 2209: =E2=80=9CWhile we sympathize with the belief that municipal debt w=</span><br><span>as incorrectly treated under the initial LCR rule, we believe that it is ina=</span><br><span>ppropriate to classify such debt as a Level 2A asset. AFR therefore opposes t=</span><br><span>his bill unless a more appropriate liquidity classification is used.=E2=80=9D=</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;AFR h=</span><br><span>as previously said it supports treating municipal bonds as more liquid and d=</span><br><span>oes not approve the type of classification used in HR 2209, because it goes t=</span><br><span>oo far in its treatment of municipal debt as level 2A liquid assets and spec=</span><br><span>ifically with micromanaging regulators with this kind of detail and they pre=</span><br><span>fer a Level 2B classification.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;The bill could provide re=</span><br><span>lief for smaller institutions, so that they can fund infrastructure investme=</span><br><span>nt more easily. In terms of Dodd-Frank, it is yet to be decided if it is sim=</span><br><span>ply a necessary tweak or a criticism.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;n=</span><br><span>bsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp; &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p cl=</span><br><span>ass=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>Looking Ahead&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;HR 2209 could end up being an important issue i=</span><br><span>n the national infrastructure discussion. &amp;nbsp;It brings up questions about=</span><br><span>how far a state or local government can go before its activities begin to r=</span><br><span>esemble an actual bank. &amp;nbsp;With the growth of PPPs, the private sector is=</span><br><span>being even more integrated into the process =E2=80=93 should those companie=</span><br><span>s be given tax exemptions, as well?&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;/di=</span><br><span>v&gt;&lt;div&gt;&lt;span id=3D"docs-internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6" s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;hr style=3D"box-sizing: c=</span><br><span>ontent-box; border-style: solid; border-color: gray; height: 0px;"&gt;&lt;/span&gt;&lt;/=</span><br><span>div&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;Upcoming/Recent Updat=</span><br><span>es&lt;/p&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Bu=</span><br><span>dget (Ir)Resolution&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/div&gt;&lt;div&gt;=E2=80=A2=</span><br><span>&amp;nbsp;Econ. Revitalization/Housing&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;div&gt;Infrastructure Financ=</span><br><span>e Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;/div&gt;&lt;div&gt;Does DFA Fail on Too Big to Fail? (=</span><br><span>Feb. 17)&lt;/div&gt;&lt;div&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/div&gt;&lt;=</span><br><span>div&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;=</span><br><span>nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Ta=</span><br><span>lk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br=</span><br><blockquote type="cite"><span>&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"b=</span><br></blockquote><span>ackground-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp=</span><br><span>;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;di=</span><br><span>v&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcar=</span><br><span>e Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-deco=</span><br><span>ration: -webkit-letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br sty=</span><br><span>le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=</span><br><span>30, 98, 83, 0.0980392);"&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;2016 Tax Agenda on=</span><br><span>the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;Glass-Steaga=</span><br><span>ll, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961)=</span><br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;=</span><br><span>(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)=</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;=</span><br><span>&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=</span><br><span>-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fin=</span><br><span>. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br></blockquote><span>, 255, 0);"&gt;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0=</span><br><span>, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=</span><br><span>92);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situ=</span><br><span>ation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.70196=</span><br><span>1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec.=</span><br><span>10)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compo=</span><br><span>sition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><span>style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0=</span><br><span>, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=</span><br><span>92);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 U=</span><br><span>pdate &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;----&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/=</span><br><span>div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span id=3D"docs-=</span><br><span>internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6"&gt;&lt;p dir=3D"ltr" style=3D"=</span><br><span>margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; m=</span><br><span>argin-bottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;The newly-installed&amp;nbsp;the Minneapolis Federal Reserve Bank and former S=</span><br><span>pecial Investigator&amp;nbsp;overseeing the TARP program came to town yesterday a=</span><br><span>dvocating drastic action to head off a financial sector systemic risk crisis=</span><br><span>, calling for&amp;nbsp;the nation's biggest banks to be broken up.&amp;nbsp;&lt;/span&gt;&lt;=</span><br><span>/p&gt;&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;His speech, delivered=</span><br><span>&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;at Br=</span><br><span>ookings, got noticed, with lengthy coverage in the NYT, WSJ, and WaPo.&amp;nbsp;=</span><br><span>And perhaps with reason -- the TBTF (too big to fail) issue has dogged Cong=</span><br><span>ress and the administration for years and is one of the central ones&lt;/span&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;in the Democr=</span><br><span>atic presidential campaign this far.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;div&gt;&lt;span id=3D"docs-i=</span><br><span>nternal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6"&gt;&lt;p dir=3D"ltr" style=3D"m=</span><br><span>argin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline=</span><br><span>; background-color: rgba(255, 255, 255, 0);"&gt;Or maybe it was just a slow new=</span><br><span>s day. &amp;nbsp;You decide...&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt=</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin=</span><br><span>-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Best,&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D=</span><br><span>"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseli=</span><br><span>ne; background-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr"=</span><br><span>style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-alig=</span><br><span>n: baseline; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;hr s=</span><br><span>tyle=3D"box-sizing: content-box; border-style: solid; border-color: gray; he=</span><br><span>ight: 0px;"&gt;&lt;/span&gt;&lt;/div&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;=</span><br><span>&lt;br&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;A Peculiar Package of Proposals&lt;/u&gt;=</span><br><span>&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Kashkari argued in the alternative t=</span><br><span>hat Dodd-Frank needs to be used and/or needs to be reformed. &amp;nbsp;He says t=</span><br><span>he law as written does not solve the TBTF problem. &amp;nbsp;He also wants regul=</span><br><span>ators to use the yet-untried tools at their disposal under the law. &amp;nbsp;&amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=9C=</span><br><span>While significant progress has been made to strengthen our financial system,=</span><br><span>I believe the [Dodd-Frank] Act did not go far enough." &amp;nbsp;He then laid o=</span><br><span>ut three ideas meant to end TBTF once and for all. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=</span><br><span>=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;break up large banks into smaller, l=</span><br><span>ess connected, less important entities;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" sty=</span><br><span>le=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;=E2=80=A2 &amp;nbsp;turn what remains of the large banks into public util=</span><br><span>ities by forcing them to hold so much capital that they can=E2=80=99t fail; a=</span><br><span>nd&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;tax leverage thr=</span><br><span>oughout the financial system "to reduce systemic risks wherever they lie."&lt;/=</span><br><span>span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;&lt;u&gt;Break&amp;nbsp;up the B=</span><br><span>anks&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in; vertical-a=</span><br><span>lign: baseline;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=46rom=</span><br><span>the perspective of current laws, breaking up big banks is already a policy a=</span><br><span>venue available to regulators.&amp;nbsp; The Federal Reserve, through the Financ=</span><br><span>ial Stability Oversight Council, can elect to take a number of actions to de=</span><br><span>al with banks that it feels are both systemically important and organized in=</span><br><span>an unstable way.&amp;nbsp; Section 121 of the Dodd-Frank Act gives the Board of=</span><br><span>Governors these powers.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 1=</span><br><span>2pt 0in; vertical-align: baseline;"&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;So this first proposal =E2=80=93 break up big banks - has&amp;=</span><br><span>nbsp;been covered here before but just for the sake of argument... which ban=</span><br><span>ks need to be broken up most urgently? &amp;nbsp;Few commentators believe there i=</span><br><span>s an imminent threat demanding action. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorma=</span><br><span>l" style=3D"margin: 12pt 0in; vertical-align: baseline;"&gt;&lt;span style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;Unsurprisingly, the Fed doesn=E2=80=99=</span><br><span>t believe that banks are so hopeless that they need to be dissolved. &amp;nbsp;T=</span><br><span>hat doesn=E2=80=99t mean it=E2=80=99s not a possibility under current legisl=</span><br><span>ation, however.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in; v=</span><br><span>ertical-align: baseline;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;&lt;/b&gt;&lt;b style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;u&gt;Make Banks =E2=80=9CUtilities=E2=80=9D&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"Ms=</span><br><span>oNormal" style=3D"margin: 12pt 0in; vertical-align: baseline;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;The second proposal is to push c=</span><br><span>apital requirements for banks so high that they =E2=80=9Cessentially turn in=</span><br><span>to public utilities.=E2=80=9D&amp;nbsp; Kashkari never explains how exactly high=</span><br><span>capital reserves turn banks into utilities, but that=E2=80=99s for another t=</span><br><span>ime.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;=</span><br><span>vertical-align: baseline;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;He is voicing his support for one of the oldest forms of banking re=</span><br><span>gulations that we still use and use far more now in the Dodd-Frank era =E2=80=</span><br><span>=93 he wants banks to hold more capital. &amp;nbsp;Supporters of the law may be h=</span><br><span>eartened by his full-throated endorsement of the law on this score.&amp;nbsp;&lt;/s=</span><br><span>pan&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in; vertical-align: ba=</span><br><span>seline;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;n=</span><br><span>bsp;&amp;nbsp;&lt;/b&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Crib=</span><br><span>bing from Clinton?&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0=</span><br><span>in; vertical-align: baseline;"&gt;&lt;span style=3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&gt;The third proposal was just about lifted out of Secretary Clint=</span><br><span>on=E2=80=99s plan to regulate Wall Street =E2=80=93- though the reporting on=</span><br><span>the speech doesn=E2=80=99t much mention it much.&amp;nbsp; It is reasonable bot=</span><br><span>h from a policy and a political perspective. But he doesn't provide further d=</span><br><span>etails about &lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;his proposal after first outlining it.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" st=</span><br><span>yle=3D"margin: 12pt 0in; vertical-align: baseline;"&gt;&lt;b style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Kashkari contra Yellen&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"Mso=</span><br><span>Normal" style=3D"margin: 12pt 0in; vertical-align: baseline;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Fed Chair Yellen has been an out=</span><br><span>spoken proponent of existing banking regulations, making it known that while=</span><br><span>the job of regulators is not done yet. we=E2=80=99re in a much better situa=</span><br><span>tion now than we were before DFA. &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;During her testimony before House Financial Ser=</span><br><span>vices, Yellen fielded a question about why she had not yet broken up big ban=</span><br><span>ks, saying&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;:=</span><br><span>&amp;nbsp;=E2=80=9C=E2=80=A6we [at the Fed]vare using our powers to make sure th=</span><br><span>at a systemically important institution could fail, and it would not be -- h=</span><br><span>ave systemic consequences for the country. We're doing that in a whole varie=</span><br><span>ty of ways.=E2=80=9D&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"m=</span><br><span>argin: 12pt 0in; vertical-align: baseline;"&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;The ways Yellen is referring to include enforcing L=</span><br><span>iquidity Coverage Ratios, capital reserve requirements, and a rule passed la=</span><br><span>st November forcing the biggest banks to issue long-term debt equal to 18 pe=</span><br><span>rcent of risk-weighted assets. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=</span><br><span>=3D"margin: 12pt 0in; vertical-align: baseline;"&gt;Evidently it's not enough. &amp;=</span><br><span>nbsp;But it is nonetheless uncommon for&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;&amp;nbsp;a newly minted Federal Reserve Bank President to t=</span><br><span>aking to task the Chair of the Federal Reserve=E2=80=99s Board of Governors.=</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in; vertical-align:=</span><br><span>baseline;"&gt;&lt;br&gt;&lt;/p&gt;&lt;div&gt;Upcoming/Recent Updates&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;=E2=80=A2=</span><br><span>&amp;nbsp;Municipal Bond Rule&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Budget (Ir)Resolution&lt;/=</span><br><span>div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Derivatives A=</span><br><span>greement w. EU&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;br&gt;&lt;di=</span><br><span>v&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/div&gt;&lt;div&gt;Below=</span><br><span>the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/div&gt;&lt;div&gt;International Tax St=</span><br><span>atus &amp;nbsp;(Feb. 11)&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;di=</span><br><span>v&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Fe=</span><br><span>b. 3)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Defici=</span><br><span>t/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;=</span><br><span>div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regulat=</span><br><span>ors &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;=</span><br><span>/div&gt;&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=</span><br><span>-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=</span><br><span>ess;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;=</span><br><span>&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)=</span><br><span>&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=</span><br><span>-color: rgba(130, 98, 83, 0.0980392);"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13=</span><br><span>)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><span>style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-E=</span><br><span>nd Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/sp=</span><br><span>an&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (=</span><br><span>Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;=</span><br><span>&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=</span><br><span>-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Negoti=</span><br><span>ations &amp;nbsp;(Dec. 6)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(D=</span><br><span>ec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/d=</span><br><span>iv&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;p dir=3D"ltr" style=3D"margin-t=</span><br><span>op: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;hr style=3D"box-sizing=</span><br><span>: content-box; border-style: solid; border-color: gray; height: 0px;"&gt;&lt;br&gt;&lt;/=</span><br><span>div&gt;&lt;div&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/div&gt;&lt;div&gt;&lt;span id=3D"docs-internal-guid-47=</span><br><span>33a1b7-ec8c-3344-1176-d4eb9086feb6"&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span st=</span><br><span>yle=3D"vertical-align: baseline;"&gt;A national holiday, a snowstorm, and a con=</span><br><span>gressional recess stilled DC yesterday and a quiet week is expected.&amp;nbsp; I=</span><br><span>t gives us a chance to have a look at some developments thus far this year t=</span><br><span>hat have flown below the radar.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;s=</span><br><span>pan style=3D"vertical-align: baseline;"&gt;Today's item is the one bill on its w=</span><br><span>ay to the President=E2=80=99s desk -- the Customs bill -- and the caboose at=</span><br><span>tached to it that extends the internet tax moratorium permanently &amp;nbsp;and m=</span><br><span>ay be the bill's important title... at least until the TPP comes up on the S=</span><br><span>enate floor.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vert=</span><br><span>ical-align: baseline;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span styl=</span><br><span>e=3D"vertical-align: baseline;"&gt;Best, &lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0=</span><br><span>pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;Dana&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr"=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-=</span><br><span>bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p di=</span><br><span>r=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt=</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;&lt;br&gt;&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;hr style=3D"box-sizing: content-box; border-style: solid; border-color:=</span><br><span>gray; height: 0px;"&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;br&gt;&lt;/p&gt;&lt;p dir=3D"ltr" styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-botto=</span><br><span>m: 0pt;"&gt;&lt;span style=3D"font-weight: 700; vertical-align: baseline;"&gt;The Cus=</span><br><span>toms Bill: &amp;nbsp;Comity on the Hill&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=</span><br><span>"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;The Senate cleared the first ove=</span><br><span>rhaul of the Customs and Border Protection (CBP) agency in more than a decad=</span><br><span>e in a 75-20 vote last Thursday, sending the bill to the President and endin=</span><br><span>g months of wrangling over the measure.&amp;nbsp; The &lt;/span&gt;&lt;a href=3D"<a href="http://w=">http://w=</a></span><br><span><a href="http://ww.finance.senate.gov/legislation/details/hr-644">ww.finance.senate.gov/legislation/details/hr-644</a>" style=3D"text-decoration: n=</span><br><span>one;"&gt;&lt;span style=3D"text-decoration: underline; vertical-align: baseline;"&gt;=</span><br><span>Trade Facilitation and Trade Enforcement Act of 2015&lt;/span&gt;&lt;/a&gt;&lt;span style=3D=</span><br><span>"vertical-align: baseline;"&gt; (H.R. 644) retools CBP to increase its focus on=</span><br><span>blocking illegal trade and ensuring that legal trade moves smoothly.&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin=</span><br><span>-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt; &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: b=</span><br><span>aseline;"&gt;The major facets of this legislation are: &lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D=</span><br><span>"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; ma=</span><br><span>rgin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;=E2=80=A2 &amp;nbsp=</span><br><span>;new protections on intellectual property rights&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bot=</span><br><span>tom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;=E2=80=A2 &amp;nbsp;new too=</span><br><span>ls to fight currency manipulation&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;spa=</span><br><span>n style=3D"vertical-align: baseline;"&gt;=E2=80=A2. a permanent extension of th=</span><br><span>e Internet Tax Freedom Act&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span s=</span><br><span>tyle=3D"vertical-align: baseline;"&gt;Said Senate Finance ranking member Ron Wy=</span><br><span>den: &amp;nbsp;=E2=80=9CThis bill is about coming down hard on the trade cheats w=</span><br><span>ho are ripping off American jobs, and the truth is past trade policies were o=</span><br><span>ften too old, too slow or too weak for our country to fight back."&lt;/span&gt;&lt;/p=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margi=</span><br></blockquote><span>n-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;W=</span><br><span>yden was perhaps the most outspoken Democrat in support of the bill, continu=</span><br><span>ing his role as a strong backer of free trade legislation.&amp;nbsp; He was a ke=</span><br><span>y factor in getting Trade Promotion Authority legislation passed through Con=</span><br><span>gress last summer, splitting from some of his colleagues in voicing support f=</span><br><span>or that act.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"font-w=</span><br><span>eight: 700; text-decoration: underline; vertical-align: baseline;"&gt;Unusual C=</span><br><span>oalition&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;a href=3D"<a href="http://www.sen=">http://www.sen=</a></span><br><span><a href="http://ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?&amp;amp;congress=">ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?&amp;amp;congress=</a></span><br><span>=3D114&amp;amp;session=3D2&amp;amp;vote=3D00022" style=3D"text-decoration: none;"&gt;&lt;s=</span><br><span>pan style=3D"text-decoration: underline; vertical-align: baseline;"&gt;27 Democ=</span><br><span>rats, 47 Republicans, and 1 Independent voted affirmatively&lt;/span&gt;&lt;/a&gt;&lt;span s=</span><br><span>tyle=3D"vertical-align: baseline;"&gt;.&amp;nbsp; Industry groups including the Nat=</span><br><span>ional Retail Federation, as well as the U.S. Chamber of Commerce were suppor=</span><br><span>tive of the legislation. &amp;nbsp;National Association of Manufacturers=E2=80=99=</span><br><span>president Jay Timmons said =E2=80=9Cif senators want to grow manufacturing i=</span><br><span>n the United States, then they should pass this bill immediately.=E2=80=9D&lt;/=</span><br><span>span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: base=</span><br><span>line;"&gt;Notable =E2=80=9CNay=E2=80=9D votes include Sens. Durbin and Reid, wh=</span><br><span>o both expressed disappointment that the legislation was a =E2=80=9Cwatered d=</span><br><span>own=E2=80=9D version of a bill previously passed by the Senate. &amp;nbsp;=E2=80=</span><br><span>=9DI like that [Senate] version, and that strong language on currency manipu=</span><br><span>lation,=E2=80=9D Durbin said =E2=80=93 that language required Commerce to co=</span><br><span>nsider =E2=80=9Cundervalued=E2=80=9D currencies to be equivalent to counterv=</span><br><span>ailable subsidies. &amp;nbsp;=E2=80=9CThe conference report that=E2=80=99s back t=</span><br><span>o us now and before the Senate at this moment is a much different bill."&lt;/sp=</span><br><span>an&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"font-weight: 700; text=</span><br><span>-decoration: underline; vertical-align: baseline;"&gt;Purpose and Provisions&lt;/s=</span><br><span>pan&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: basel=</span><br><span>ine;"&gt;House and Senate negotiators agreed on a final customs bill in Decembe=</span><br><span>r. &amp;nbsp; The House passed the measure 256-158 but the legislation stalled i=</span><br><span>n the Senate over a provision added in conference that permanently extends a=</span><br><span>moratorium on Internet access taxes. &lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0=</span><br><span>pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;That provision is perhaps the=</span><br><span>most reported on section in the bill =E2=80=93 it=E2=80=99s almost certainl=</span><br><span>y the most popular - it applies to localities, states, and the federal gover=</span><br><span>nment itself. &amp;nbsp; Sen. Lamar Alexander cited it though as explanation for=</span><br><span>his =E2=80=9Cnay=E2=80=9D vote: "t&lt;/span&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;he federal government shouldn't be telling the state=</span><br><span>s what their tax structure should be."&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0=</span><br><span>pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;Another important provision, k=</span><br><span>nown as the ENFORCE Act, would require the CBP to more aggressively investig=</span><br><span>ate complaints that companies are evading anti-dumping or countervailing dut=</span><br><span>ies on imports by mislabeling or disguising the shipments.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p d=</span><br><span>ir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0p=</span><br><span>t; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;The bill i=</span><br><span>ncludes a new Trade Enforcement Fund to bring trade cases through the WTO, t=</span><br><span>o investigate the implementation of trade requirements by other countries, a=</span><br><span>nd to respond to complaints of trade violations. &amp;nbsp;It&lt;/span&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;also creates a nine-member=</span><br><span>Advisory Committee on International Exchange Rate Policy, whose members mus=</span><br><span>t be comprised of individuals from the private sector who are selected by bo=</span><br><span>th chambers of Congress and the President (three members each).&lt;/span&gt;&lt;/p&gt;&lt;b=</span><br><span>r&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-t=</span><br><span>op: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"font-weight: 700; text-decorati=</span><br><span>on: underline; vertical-align: baseline;"&gt;Currency Manipulation&lt;/span&gt;&lt;/p&gt;&lt;b=</span><br><span>r&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-t=</span><br><span>op: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;Curr=</span><br><span>ency manipulation has been a long-standing concern of American policy-makers=</span><br><span>and a particularly contentious issue in global trade relations; claims that=</span><br><span>China has been chronically undervaluing its currency have made the news for=</span><br><span>a number of years.&amp;nbsp; Advocates for stricter enforcement of currency man=</span><br><span>ipulation provisions claim that undervalued currencies operate similarly to e=</span><br><span>xport subsidies =E2=80=93 a prohibited practice within the World Trade Organ=</span><br><span>ization.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-a=</span><br><span>lign: baseline;"&gt;The final bill dropped a Senate provision that would have r=</span><br><span>equired the Commerce Department to treat undervalued currency as an illegal s=</span><br><span>ubsidy under U.S. countervailing duty law.&amp;nbsp; This provision would have o=</span><br><span>pened the door for compensatory tariffs to be levied against goods which ori=</span><br><span>ginate from countries which are found to purposely undervalue their currency=</span><br><span>in order to boost their exports. The bill does, however, include other meas=</span><br><span>ures that give the Treasury Department new tools to fight currency manipulat=</span><br><span>ion:&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;creates a s=</span><br><span>pecial fund for the CBP to ensure trading partners follow the rules and to b=</span><br><span>ring disputes before the WTO&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;increases f=</span><br><span>unding to the National Intellectual Property Rights Coordination Center&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); marg=</span><br><span>in-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;establishes the Commercial Customs Operation=</span><br><span>s Advisory Committee jointly between CBP and Treasury&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"lt=</span><br><span>r" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margi=</span><br><span>n-bottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;requires CBP to investigate claims from other agencies of evasi=</span><br><span>on of anti-dumping or countervailing duties.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bot=</span><br><span>tom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;&lt;u&gt;&lt;b&gt;Relation to TPP&lt;/=</span><br><span>b&gt;&lt;/u&gt;&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-ali=</span><br><span>gn: baseline;"&gt;Sen. Majority Leader McConnell has said that the Senate will n=</span><br><span>ot vote on the Trans-Pacific Partnership before the November elections, so i=</span><br><span>t may come as a surprise to see a bill which deals with enforcing trade deal=</span><br><span>s like TPP pass both houses of Congress.&amp;nbsp; However this bill=E2=80=99s p=</span><br><span>rovisions for protecting IP rights, toughening countervailing duties, and ta=</span><br><span>ckling currency manipulation are a necessary prerequisite for agreements lik=</span><br><span>e TPP (or the far more nebulous TTIP).&amp;nbsp; The new age of trade agreements=</span><br><span>&amp;nbsp;will deal extensively in issues like intellectual property protection=</span><br><span>, trade in services, and high-tech product trading; types of commerce which a=</span><br><span>re far more difficult to regulate compared to the trade of physical goods. &lt;=</span><br><span>/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>); margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: base=</span><br><span>line;"&gt;So, despite the fact that TPP won=E2=80=99t get a vote until after No=</span><br><span>vember (and perhaps not in 2016 at all), and may not pass even then, the pro=</span><br><span>tections set forward in the customs bill are necessary to allow American com=</span><br><span>panies to continue to compete in the global marketplace.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p di=</span><br><span>r=3D"ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt=</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D"font-weight: 700; text-decoration: und=</span><br><span>erline; vertical-align: baseline;"&gt;Price of Passage&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;p dir=3D"=</span><br><span>ltr" style=3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; mar=</span><br><span>gin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;"&gt;In order to incl=</span><br><span>ude the permanent extension of the Internet Tax Freedom Act, McConnell had t=</span><br><span>o promise that a vote would be held this year on the Marketplace Fairness Ac=</span><br><span>t.&amp;nbsp; That legislation grants states greater authority to collect sales t=</span><br><span>axes from online businesses who sell products within their borders.&amp;nbsp; Wh=</span><br><span>ile McConnell himself opposes the bill, it was the only way to get the custo=</span><br><span>ms bill (with the tax amendment attached) unstuck.&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0); vertical-align: baseline;"&gt;Jus=</span><br><span>t because McConnell has promised it will be brought to a vote doesn=E2=80=99=</span><br><span>t mean it will be a smooth process - the Senate passed the Marketplace Fairn=</span><br><span>ess Act in 2013 with 69 votes, and most of the lawmakers who voted for it ar=</span><br><span>e still in the chamber.&amp;nbsp; Some lawmakers like Kelly Ayotte, who is facin=</span><br><span>g a tough reelection campaign this year, have vowed to fight tooth-and-nail a=</span><br><span>gainst it.&amp;nbsp; Despite these detractors in the Senate, the real battle may=</span><br><span>occur in the House, where two competing proposals have been brought forward=</span><br><span>. &amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;hr style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; box-sizing: content-box; border-style: solid; border-color: gray; height: 0=</span><br><span>px;"&gt;&lt;br&gt;Upcoming/Recent Updates&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Municipa=</span><br><span>l Bond Rule&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Budget (Ir)Resolution&lt;/div&gt;&lt;div&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;Puerto Rico&lt;/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;=</span><br><span>/div&gt;&lt;div&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;br&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;di=</span><br><span>v&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&amp;nbsp;&lt;/div&gt;&lt;div&gt;International=</span><br><span>Tax Status &amp;nbsp;(Feb. 11)&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/=</span><br><span>div&gt;&lt;div&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;=</span><br><span>nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol=</span><br><span>: Deficit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the=</span><br></blockquote><span>Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(=</span><br><span>Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=</span><br><span>letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br style=3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80392);"&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;=</span><br><span>(Jan. 16)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=</span><br><span>tion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;Glass-Steagall, Take 2 &amp;nbsp=</span><br><span>;(Jan. 13)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;=</span><br><span>/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=</span><br><span>color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;di=</span><br><span>v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div style=</span><br><span>=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/spa=</span><br><span>n&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibu=</span><br><span>s Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14=</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;di=</span><br><span>v style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Exten=</span><br><span>der Negotiations &amp;nbsp;(Dec. 6)&amp;nbsp;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Brown on HFT=</span><br><span>&amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;=</span><br><span>/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;----&lt;/span&gt;&lt;/div&gt;&lt;=</span><br><span>div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392);"&gt;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;br&gt;=</span><br><span>&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Feb 11, 2016, at 7:47 PM, Dana &amp;lt;&lt;a href=3D"mailto:danac=</span><br><span><a href="mailto:[email-masked]">[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html;=</span><br><span>charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-t=</span><br><span>ype" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;me=</span><br><span>ta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/div&gt;&lt;div&gt;&lt;div style=3D"=</span><br><span>color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98=</span><br><span>, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div styl=</span><br><span>e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=</span><br><span>0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;One thing the t=</span><br><span>wo parties agree is that international tax reform is a fiscally necessary is=</span><br><span>sue to take up -- that Uncle Sam is leaving hundreds of billions of dollars o=</span><br><span>n the table overseas annually. &amp;nbsp; But they would also generally agree th=</span><br><span>at it is not going to get done this year. &amp;nbsp;&lt;/div&gt;&lt;div style=3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Under current law, tho=</span><br><span>se profits are subject only to federal taxes if they are returned, or repatr=</span><br><span>iated, to the U.S. where they face a top rate of 35 percent. &amp;nbsp;Many comp=</span><br><span>anies avoid U.S. taxes on those earnings by simply leaving them overseas.&lt;/d=</span><br><span>iv&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;b=</span><br><span>r&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=</span><br><span>;"&gt;There is bipartisan activity on the issue in both houses of Congress. Oba=</span><br><span>ma has a major reform proposal on the table. &amp;nbsp;So is this the year, in t=</span><br><span>he year of surprises?&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -we=</span><br><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=</span><br><span>on: -webkit-letterpress;"&gt;Best,&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=</span><br><span>coration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=</span><br><span>xt-decoration: -webkit-letterpress;"&gt;Dana&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=</span><br><span>0392); text-decoration: -webkit-letterpress;"&gt;&lt;div&gt;&lt;div class=3D"block block=</span><br><span>-thehill-blocks ntv844166-128893-60429" id=3D"ntv844166-128893-60429" style=3D=</span><br><span>"box-sizing: border-box; margin-bottom: 23px;"&gt;&lt;hr style=3D"box-sizing: cont=</span><br><span>ent-box; border-style: solid; border-color: gray; height: 0px;"&gt;&lt;p class=3D"=</span><br><span>" style=3D"box-sizing: border-box; margin: 0px 0px 15px; font-weight: bold;"=</span><br><blockquote type="cite"><span>&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0,=</span><br></blockquote><span>0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>text-decoration: -webkit-letterpress;"&gt;Reforms in the area of international=</span><br><span>tax deal with both the repatriation of foreign-derived profits and the issu=</span><br><span>e of corporate inversions. &amp;nbsp;Testifying today, Treasury Secretary Jack L=</span><br><span>ew encouraged the parties in Congress to overcome their differences on both,=</span><br><span>which he believes surmountable: &amp;nbsp;=E2=80=9CI just want to underscore th=</span><br><span>e urgency of dealing with inversions =E2=80=A6 We can=E2=80=99t wait a year t=</span><br><span>o deal with this,=E2=80=9D Lew said during a Senate Finance hearing on the O=</span><br><span>bama administration=E2=80=99s budget. Congress could pass narrow legislation=</span><br><span>on inversions, he said, even if broader reform of the international system i=</span><br><span>s preferable.&amp;nbsp;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -w=</span><br><span>ebkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;b style=3D"te=</span><br><span>xt-decoration: -webkit-letterpress;"&gt;&lt;u&gt;Stirrings in the Senate&lt;/u&gt;&lt;/b&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br></blockquote><span>r: rgba(130, 98, 83, 0.0980392);"&gt;&lt;b style=3D"text-decoration: -webkit-lette=</span><br><span>rpress;"&gt;&lt;u&gt;&lt;br&gt;&lt;/u&gt;&lt;/b&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress;"&gt;Sen. Schumer also announced today that he is in cont=</span><br><span>act with Speaker Ryan about coming to an agreement on repatriating corporate=</span><br><span>profits. &amp;nbsp;They were unable to come to an agreement last year on a simi=</span><br><span>lar measure put forth as part of a larger reform effort. &amp;nbsp;Schumer said t=</span><br><span>oday: =E2=80=9CWe=E2=80=99re trying to bridge over, of course, the divide be=</span><br><span>tween existing proposals. &amp;nbsp;I remain at the table ready to work.=E2=80=9D=</span><br><span>&amp;nbsp;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=</span><br><span>press;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=</span><br><span>etterpress;"&gt;One of the key differences between the parties concerns whether=</span><br><span>the money raised from tax reform should be turn into government revenue for=</span><br><span>more spending, or used to pay down the debt or pass tax cuts. &amp;nbsp;After t=</span><br><span>he Senate Finance hearing yesterday, Chair Hatch said: &amp;nbsp;=E2=80=9CI'm ac=</span><br><span>tually working on international, but I just don't think it's going to get do=</span><br><span>ne this year, because, you know, let's face it, the Democrats are going to w=</span><br><span>ant to raise revenue. &amp;nbsp;They want money to spend.=E2=80=9D &amp;nbsp;&lt;/div&gt;&lt;=</span><br><span>div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/=</span><br><span>div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;A=</span><br><span>t that same hearing, Sen. Shelby pushed a corporate integration plan he is d=</span><br><span>eveloping to eliminate the double taxation of corporate income by providing c=</span><br><span>orporations a dividend deduction. &amp;nbsp;He's awaiting a score by the Joint C=</span><br><span>ommittee on Taxation. &amp;nbsp;Dividend deductions are usually quite expensive a=</span><br><span>nd regressive, so it will a feat to attract any Democratic support, especial=</span><br><span>ly for him.&amp;nbsp;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit=</span><br><span>-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -web=</span><br><span>kit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;b style=3D"tex=</span><br><span>t-decoration: -webkit-letterpress;"&gt;&lt;u&gt;Brady's Push&amp;nbsp;&lt;/u&gt;&lt;/b&gt;&lt;/div&gt;&lt;div s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;=</span><br><span>div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Meanwh=</span><br><span>ile, Ways and Means Chair Kevin Brady has said that he wants a vote this yea=</span><br><span>r on moving the United States into a territorial tax system, which would per=</span><br><span>manently exempt US-based businesses from paying taxes on income earned abroa=</span><br><span>d. &amp;nbsp;He also wants to lower the corporate rate to 20 percent. &amp;nbsp;In t=</span><br><span>he face of these proposals it is difficult to see what sort of compromise ca=</span><br><span>n be found between Democrats and Republicans, as the former may be more preo=</span><br><span>ccupied just keeping alive the idea that foreign profits should be taxed at a=</span><br><span>ll. =E2=80=9CThe goal of these reforms are not to generate more spending,=E2=</span><br><span>=80=9D Brady said. =E2=80=9CIt=E2=80=99s to bring back real dollars to be re=</span><br><span>invested in the United States.=E2=80=9D&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392); text-decoration: -webkit-letterpress;"&gt;Brady has been advocating for i=</span><br><span>nternational tax reform since he took over Ways and Means. &amp;nbsp;Last month,=</span><br><span>he spoke with Sen. Hatch and they were both committed to getting something d=</span><br><span>one. &amp;nbsp;Senior Republicans believe the country=E2=80=99s international ta=</span><br><span>x problems =E2=80=94 inversions and Europe going after revenues from U.S. co=</span><br><span>mpanies among them =E2=80=94 are urgent. &amp;nbsp;But Brady strongly hinted tha=</span><br><span>t all that work would be aimed at setting things up for 2017, when Republica=</span><br><span>ns want =E2=80=9Cpro-growth tax reform under a Republican president.=E2=80=9D=</span><br><span>Perhaps that=E2=80=99s no huge shock, but it does seem to set up something o=</span><br><span>f a disconnect, given all the talk of urgency.&lt;/div&gt;&lt;div style=3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterpress;"&gt;Brady and his supporters=</span><br><span>have been pushing the idea that American money is either being taxed by oth=</span><br><span>er countries or being taken over by foreign competitors in an inversion -- t=</span><br><span>ypically, when an American company incorporates abroad so its earnings are n=</span><br><span>o longer subject to American taxes. &amp;nbsp;Brady says the result is an erosio=</span><br><span>n of our tax base and a lock-out effect of American capital being =E2=80=9Ct=</span><br><span>rapped=E2=80=9D abroad that can be solved by fixing our uncompetitive tax co=</span><br><span>de.&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>s;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;b style=3D"text-decoration: -=</span><br><span>webkit-letterpress;"&gt;&lt;u&gt;Presidential Proposal&lt;/u&gt;&lt;/b&gt;&lt;/div&gt;&lt;div style=3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;The President=E2=80=</span><br><span>=99s FY 2017 budget contains a surprising source of new revenue to pay for i=</span><br><span>ts spending programs =E2=80=93 a major piece of international tax policy ref=</span><br><span>orm: a six-year, $478 billion public-works program for highway, bridge and t=</span><br><span>ransit upgrades, half of it to be financed with a one-time, 14 percent tax o=</span><br><span>n U.S. companies=E2=80=99 overseas profits and a 19 percent rate thereafter.=</span><br><span>&amp;nbsp;The issue of companies holding foreign profits at locations abroad, w=</span><br><span>here they are exempt from taxation until repatriated, has vexed policy maker=</span><br><span>s on both sides for some time. &amp;nbsp;It=E2=80=99s estimated that these profi=</span><br><span>ts add up to nearly $2 trillion.&amp;nbsp;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2); text-decoration: -webkit-letterpress;"&gt;The issue of companies holding fo=</span><br><span>reign profits at locations abroad, thereby exempt from taxation unless those=</span><br><span>profits are brought home, has vexed policy makers on both sides for some ti=</span><br><span>me. &amp;nbsp;Microsoft Corp., Apple Inc., Google Inc. and five other tech firms=</span><br><span>now account for more than a fifth of the $2.10 trillion in profits that U.S=</span><br><span>. companies are holding overseas. &amp;nbsp;In keeping with the idea that Obama=E2=</span><br><span>=80=99s final budget is =E2=80=9Cmore politics than policy,=E2=80=9D these r=</span><br><span>evenue-gaining proposals are meant to spark discussion more so than be a mod=</span><br><span>el for laws going forward.&amp;nbsp;&lt;/div&gt;&lt;br&gt;&lt;div style=3D"text-decoration: -we=</span><br><span>bkit-letterpress;"&gt;&lt;div&gt;&lt;div class=3D"block block-thehill-blocks ntv844166-1=</span><br><span>28893-60429" id=3D"ntv844166-128893-60429" style=3D"box-sizing: border-box; m=</span><br><span>argin-bottom: 23px;"&gt;&lt;hr style=3D"box-sizing: content-box; border-style: sol=</span><br><span>id; border-color: gray; height: 0px;"&gt;&lt;p class=3D"" style=3D"box-sizing: bor=</span><br><span>der-box; margin: 0px 0px 15px; font-weight: bold;"&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961);=</span><br></blockquote><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=</span><br><span>on: -webkit-letterpress;"&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;div style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"co=</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp;Custom=</span><br><span>s Bill&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=</span><br><span>ress;"&gt;=E2=80=A2 &amp;nbsp;Municipal Bond Rule&lt;/div&gt;&lt;div style=3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2); text-decoration: -webkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp;Budget Irresoluti=</span><br><span>on&amp;nbsp;&lt;br&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/di=</span><br><span>v&gt;&lt;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Budget &amp;n=</span><br><span>bsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending=</span><br><span>Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 2=</span><br><span>8)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Fe=</span><br><span>d Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Challen=</span><br><span>ged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div=</span><br><blockquote type="cite"><span>&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;HRC's Tax Poli=</span><br></blockquote><span>cy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;div&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;=</span><br><span>&lt;div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/s=</span><br><span>pan&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;San=</span><br><span>ders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5=</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"backgro=</span><br></blockquote><span>und-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nb=</span><br><span>sp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus R=</span><br><span>eview (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 1=</span><br><span>0)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6)&amp;nbsp;&lt;=</span><br><span>/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;B=</span><br><span>rown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br></blockquote><span>0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;On Feb 10, 2016, at 7:41 PM, Dana &amp;lt;&lt;a hre=</span><br><span>f=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;blockquote type=3D"cite"&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" cont=</span><br></blockquote><span>ent=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-e=</span><br><span>quiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charse=</span><br><span>t=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" co=</span><br><span>ntent=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Mike &amp;amp; Co. --&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D=</span><br></blockquote><span>"background-color: rgba(255, 255, 255, 0);"&gt;The Chair of the Federal Reserve=</span><br><span>went before House Financial Services to provide a report on the nation's ec=</span><br><span>onomic condition, a kind of bi-annual checkup. No news was made, no firework=</span><br><span>s went off and no market mood swings occurred.&amp;nbsp; As for the Fed's next m=</span><br><span>ove, it's wait-and-see a little while longer.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"Ms=</span><br><span>oNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;We thought it might happen in March, signs pointed=</span><br><span>to it.&amp;nbsp; Now, the guess is June (sound familiar?) &amp;nbsp;For details, do=</span><br><span>n't wait, see below.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom=</span><br><span>: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Best,=</span><br><span>&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Dana&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;----------&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" sty=</span><br><span>le=3D"margin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Economic Checkup&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"ma=</span><br><span>rgin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;Fed Chair Yellen testified before House Financial Services this mornin=</span><br><span>g for the Federal Reserve=E2=80=99s bi-annual Monetary Policy Report.&amp;nbsp; T=</span><br><span>hese appearances allow Yellen to explain the Fed=E2=80=99s, actually the Fed=</span><br><span>eral Open Market Committee (FOMC)=E2=80=99s, analysis and projections regard=</span><br><span>ing America's economic performance as well as to signal the factors underlyi=</span><br><span>ng its actions in the months ahead. &amp;nbsp;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorm=</span><br><span>al" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;The rate change in December 2015 was the first time the=</span><br><span>Fed raised rates since 2006 -- some worry that even a modest increase in ra=</span><br><span>tes at this juncture would&amp;nbsp;further&amp;nbsp;slow&amp;nbsp;already limited&amp;nbsp;=</span><br><span>economic&amp;nbsp;growth&amp;nbsp;after years of uncertainty.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"=</span><br><span>MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;&lt;u&gt;The Basics&lt;/u&gt;&lt;/b&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;The bottom line: the FOMC won=E2=80=99t rollbac=</span><br><span>k rates in March and it=E2=80=99s not likely to raise them either.&amp;nbsp; The=</span><br><span>Fed likes what it sees in the labor market, wage growth looks strong, and e=</span><br><span>merging market missteps continue to be a threat to the US economy but perhap=</span><br><span>s not an immediate one.&amp;nbsp; The next rate move is almost certain to be an i=</span><br><span>ncrease but it could wait until June or later.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"M=</span><br><span>soNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;Yellen reiterated much of the FOMC statement from=</span><br><span>last month: &amp;nbsp;the labor market remains strong, but shows some signs of r=</span><br><span>emaining slack, that the low inflation we have seen is caused by =E2=80=9Ctr=</span><br><span>ansitory=E2=80=9D effects (low energy prices), and that global market uncert=</span><br><span>ainty creates some level of risk for slow growth at home and abroad.&amp;nbsp; T=</span><br><span>hough Yellen did not make a prediction on how long these transitory market e=</span><br><span>ffects would last, a number of forecasts for oil prices show the dip lasting=</span><br><span>through 2016.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 11pt=</span><br><span>;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Expanding on gl=</span><br><span>obal growth issues, Yellen said "These developments, if they prove persisten=</span><br><span>t, could weigh on the outlook for economic activity and the labor market, al=</span><br><span>though declines in longer-term interest rates and oil prices could provide s=</span><br><span>ome offset," she added: "Foreign economic developments, in particular, pose r=</span><br><span>isks to US economic growth."&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"margin-bottom: 11pt;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;Partisan Review&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom=</span><br><span>: 11pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The GOP i=</span><br><span>s generally critical of "accommodative" (lower) Fed rates.&amp;nbsp;&amp;nbsp; High-=</span><br><span>net-worth individuals benefit the most from high rates through dividends and=</span><br><span>interest from savings.&amp;nbsp;&amp;nbsp;Low rates allow more growth for the middl=</span><br><span>e- and lower-classes&amp;nbsp;at the risk of inflation,&amp;nbsp;tacitly supporting D=</span><br><span>emocrats=E2=80=99 progressive fiscal policy goals.&amp;nbsp;&amp;nbsp;Some conservat=</span><br><span>ive economists have gone so far as to blame low interest rates pushed by the=</span><br><span>Fed in the 1990=E2=80=99s for the market meltdown in 2007, claiming that ch=</span><br><span>eap credit was the cause of the overheated housing market.&lt;/span&gt;&lt;/p&gt;&lt;p clas=</span><br><span>s=3D"MsoNormal" style=3D"margin-bottom: 11pt;"&gt;&lt;b&gt;&lt;u style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Strong Labor Market&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoN=</span><br><span>ormal" style=3D"margin-bottom: 11pt;"&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;Discussing the labor market in greater detail, Yellen po=</span><br><span>inted to the cumulative increase in employment since 2010 of 13 million jobs=</span><br><span>.&amp;nbsp; The rate in January fell to 4.9 percent, 0.8 points below its level o=</span><br><span>ne year ago; measures of labor market conditions such as the number of peopl=</span><br><span>e who are working part-time but want to move to full-time positions and the n=</span><br><span>umber of individuals who want to work but haven=E2=80=99t searched recently a=</span><br><span>re also decreasing steadily.&amp;nbsp; Regarding these broader labor market indi=</span><br><span>cators Yellen testified that =E2=80=9C=E2=80=A6&amp;nbsp;these measures remain a=</span><br><span>bove the levels seen prior to the recession, suggesting that some slack in l=</span><br><span>abor markets remains. Thus, while labor market conditions have improved subs=</span><br><span>tantially, there is still room for further sustainable improvement."&lt;/span&gt;&lt;=</span><br><span>/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 11pt;"&gt;&lt;b&gt;&lt;u style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;Forward Guidance&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin-bottom: 11pt;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;As always, Yellen was careful not to give hints on w=</span><br><span>hat the Fed is planning to do in future meetings; speaking on the path forwa=</span><br><span>rd for the Fed Funds rate Yellen said =E2=80=9COf course, monetary policy is=</span><br><span>by no means on a preset course. The actual path of the federal funds rate w=</span><br><span>ill depend on what incoming data tell us about the economic outlook, and we w=</span><br><span>ill regularly reassess what level of the federal funds rate is consistent wi=</span><br><span>th achieving and maintaining maximum employment and 2 percent inflation.=E2=80=</span><br><span>=9D&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 11pt;"&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Yellen was asked about the=</span><br><span>chances of the FOMC rolling back the rate hike it announced in December: &amp;n=</span><br><span>bsp;"I do not expect the FOMC is going to be soon in the situation where it'=</span><br><span>s necessary to cut rates If the FOMC delayed the start of policy normalizati=</span><br><span>on for too long, it might have to tighten policy relatively abruptly in the f=</span><br><span>uture to keep the economy from overheating and inflation from significantly o=</span><br><span>vershooting its objective. Such an abrupt tightening could increase the risk=</span><br><span>of pushing the economy into recession."&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorm=</span><br><span>al" style=3D"margin-bottom: 11pt;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Comment on Dodd-Frank&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" sty=</span><br><span>le=3D"margin-bottom: 11pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;During the Q&amp;amp;A portion of her testimony, Yellen was asked about=</span><br><span>financial regulation, both in terms of breaking up the banks and enforcing t=</span><br><span>he regulations brought on by Dodd-Frank.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorm=</span><br><span>al" style=3D"margin-bottom: 11pt;"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;In response to being asked if the Fed is trying to break up=</span><br><span>the banks, she responded:&amp;nbsp;"We are using our powers to make sure that a=</span><br><span>systemically important institution could fail, and it would not have system=</span><br><span>ic consequences for the country." Her answer was interesting, because she's n=</span><br><span>ot outright saying the banks will be broken up or reduced, just that the Fed=</span><br><span>is trying to ensure that even if they did fail, it wouldn't negatively effe=</span><br><span>ct the economy.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 11p=</span><br><span>t;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Yellen was als=</span><br><span>o asked about the burden of new Dodd-Frank regulations on banks. She respond=</span><br><span>ed: "For our part, we're focused on doing everything that we conceivably can=</span><br><span>to minimize and reduce the burden on these banking organizations. We've bee=</span><br><span>n conducting an EGRPRA&amp;nbsp;review to identify potential burdens that our re=</span><br><span>gulations impose." An EGRPRA review is connected to the Economic Growth and R=</span><br><span>egulatory Paperwork Reduction Act, which requires regulations imposed on fin=</span><br><span>ancial institutions to be reviewed by the agencies at least once every 10 ye=</span><br><span>ars. The purpose is to prevent&amp;nbsp;burdensome&amp;nbsp;regulations that could h=</span><br><span>inder a&amp;nbsp;bank's ability to serve its customers.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=</span><br><span>=3D"MsoNormal" style=3D"margin-bottom: 11pt;"&gt;&lt;b&gt;&lt;u style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;The Bottom Line&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal=</span><br><span>" style=3D"margin-bottom: 11pt;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Fed watchers make their living by trying to predict what the FO=</span><br><span>MC will or won=E2=80=99t do at their meetings, and on days when Yellen is sc=</span><br><span>heduled to testify before Congress you can bet that they=E2=80=99re listenin=</span><br><span>g intently.&amp;nbsp; While Yellen was careful not to project the Fed=E2=80=99s m=</span><br><span>oves, the general sentiment in the markets is that FOMC won=E2=80=99t be rai=</span><br><span>sing rates at its March meeting.&amp;nbsp; The CME Group FedWatch tool, which es=</span><br><span>timates FOMC rate hikes based on its futures prices, predicts a 95% probabil=</span><br><span>ity that the Fed will maintain its current rate target in March.&amp;nbsp; Some f=</span><br><span>orecasters go even further -- expecting that the funds rate won=E2=80=99t be=</span><br><span>raised all year.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bot=</span><br><span>tom: 11pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Trader=</span><br><span>s see the ongoing economic struggles of emerging economies, particularly in C=</span><br><span>hina, as evidence that the Fed won=E2=80=99t continue with its scheduled 4 r=</span><br><span>ate hikes this year.&amp;nbsp; Certainly, considering the testimony today that 1=</span><br><span>) continued emerging market uncertainty can weigh down the US economy and 2)=</span><br><span>that poor performance in the US economy would cause the Fed to change cours=</span><br><span>e on its rate hike schedule, a link between poor emerging market performance=</span><br><span>and fewer Fed rate hikes seems plausible.&amp;nbsp; Certainly the trading on Fe=</span><br><span>d fund futures indicates that the markets believe this is the case.&lt;/span&gt;&lt;/=</span><br><span>p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 11pt;"&gt;&lt;span style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;-------&lt;/span&gt;&lt;/p&gt;Recent Updates&lt;div&gt;&lt;=</span><br><span>br&gt;&lt;/div&gt;&lt;div&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/div&gt;&lt;div&gt;Obama's FY17 Bu=</span><br><span>dget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;De=</span><br><span>fending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (=</span><br><span>Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths C=</span><br></blockquote><span>hallenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21=</span><br><span>)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span st=</span><br><span>yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;HRC's Tax Po=</span><br><span>licy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -web=</span><br><span>kit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;div style=3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392);"&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders P=</span><br><span>roposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg P=</span><br><span>roposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701=</span><br><span>961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal P=</span><br><span>olicy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/di=</span><br><span>v&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;n=</span><br><span>bsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec=</span><br><span>. 6) o&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;d=</span><br><span>iv style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;=</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;----&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>"&gt;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;On Feb 9, 2016=</span><br><span>, at 7:42 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachasin@gm=</span><br><span><a href="http://ail.com">ail.com</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote type=3D"cite"&gt;&lt;div&gt;&lt;meta htt=</span><br><span>p-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-ty=</span><br><span>pe" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;met=</span><br><span>a http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;s=</span><br><span>pan&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html=</span><br><span>; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-=</span><br><span>type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;m=</span><br><span>eta http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/ht=</span><br><span>ml; charset=3Dutf-8"&gt;&lt;div&gt;&lt;br&gt;Mike &amp;amp; Co. --&lt;br&gt;&lt;p class=3D"MsoNormal" st=</span><br><span>yle=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Today, President Obama submitted his eighth and final budget p=</span><br><span>roposal to Congress.&amp;nbsp; It tops the $4 trillion mark for the first time. &amp;=</span><br><span>nbsp;&amp;nbsp;Despite the historical tendency for lame duck presidential budget=</span><br><span>s to be treated as scrap paper -- this one won't even be accorded the courte=</span><br><span>sy of a hearing in House Budget -- there are a few noteworthy proposals and i=</span><br><span>nitiatives which, if nothing else, are likely to generate discussion on the H=</span><br><span>ill and off. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom:=</span><br><span>0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;That=E2=</span><br><span>=80=99s the real purpose of this budget -- to help frame the debate in 2016 a=</span><br><span>bout where America is headed what the nation's priorities should be.&amp;nbsp; A=</span><br><span>number of the proposals in this budget resonate with issues and themes alre=</span><br><span>ady being debated.&amp;nbsp; Candidates in particular seeking to emphasize suppo=</span><br><span>rt for or opposition to the President have a new set of proposals at their d=</span><br><span>isposal.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.00=</span><br><span>01pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;What is new=</span><br><span>and noteworthy in the White House budget and what's next for it? &amp;nbsp;Deta=</span><br><span>il below.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0=</span><br><span>001pt;"&gt;Special thanks to those of you in NH tonight. &amp;nbsp;Fingers crossed a=</span><br><span>nd stay tuned this way: &amp;nbsp;&amp;nbsp;&lt;a href=3D"<a href="http://politi.co/20n5W2w">http://politi.co/20n5W2w</a>"&gt;htt=</span><br><span>p://politi.co/20n5W2w&lt;/a&gt;&amp;nbsp;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bo=</span><br><span>ttom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;B=</span><br><span>est,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;/p&gt;&lt;p cla=</span><br><span>ss=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;---------&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal"=</span><br><span>style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;The Obama Administration put forth a myriad of budget prop=</span><br><span>osals revolving around a variety of issues. &amp;nbsp;Below are thoughts on some=</span><br><span>of the most significant of these from a fiscal and financial regulatory per=</span><br><span>spective:&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;blockquote style=3D"margin: 0px 0px 0px 40px; bor=</span><br><span>der: none; padding: 0px;"&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0=</span><br><span>001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;=</span><br><span>nbsp;&lt;b&gt;&lt;u&gt;$10/Barrel Transportation Tax&lt;/u&gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNo=</span><br><span>rmal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;A perennial favorite of Democrats has made a return i=</span><br><span>n the Obama budget: &lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&amp;nbsp;a $10.25 per barrel tax on oil, $319 billion in revenue from w=</span><br><span>hich will go toward funding =E2=80=9Ca 21st Century Clean Transportation Pla=</span><br><span>n to upgrade the nation=E2=80=99s transportation system, improve resilience a=</span><br><span>nd reduce emissions." &amp;nbsp;The proposed tax is a simplified version of =E2=80=</span><br><span>=9Ccarbon taxation=E2=80=9D policies, which aim to tax energy producers and o=</span><br><span>il companies based on the level of pollution they produce; =E2=80=9Ccap and t=</span><br><span>rade=E2=80=9D was a similar policy idea but with more complicated implementa=</span><br><span>tion. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001=</span><br><span>pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The tax will b=</span><br><span>e phased in over five years and levied against oil companies, with the reven=</span><br><span>ue to help fund clean energy initiatives like expanding high-speed rail syst=</span><br><span>ems and also to increase national infrastructure spending.&amp;nbsp; The appeal o=</span><br><span>f this flat-tax on oil is its simplicity =E2=80=93- there is nothing complic=</span><br><span>ated about charging oil companies $10.25 per barrel of oil, meaning there=E2=</span><br><span>=80=99s no way for them to shirk the charge.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span class=3D"=</span><br><span>im" style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;p class=3D"MsoNorma=</span><br><span>l" style=3D"margin-bottom: 0.0001pt;"&gt;Supporting the tax would lend candidat=</span><br><span>es some environmental bonafides, but might be seen as a backdoor &amp;nbsp;tax&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;on the middle-=</span><br><span>class. Though paid for by oil companies, the &amp;nbsp;price is expected to be p=</span><br><span>assed along to consumers through higher prices.&amp;nbsp; The tax is expected to=</span><br><span>increase the price of gasoline by 25 cents per gallon.&lt;/span&gt;&lt;/p&gt;&lt;/span&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;&lt;b&gt;&lt;u&gt;Funding Fin. Reg. L=</span><br><span>ike it Matters&lt;/u&gt;&lt;/b&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margi=</span><br><span>n-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;Obama proposes to double the budget for Wall Street regulators SEC and CFT=</span><br><span>C over ten years, beginning with an 11 percent increase for SEC and 32 perce=</span><br><span>nt for CFTC in 2017.&amp;nbsp;&amp;nbsp;Clinton has a lot to like in this particular=</span><br><span>section =E2=80=93 she=E2=80=99s the only candidate who has defended Dodd-Fra=</span><br><span>nk and is campaigning on proposals to strengthen current regulations, includ=</span><br><span>ing through greater budgets for&amp;nbsp;regulatory agencies.&amp;nbsp; Leaders for b=</span><br><span>oth regulators have complained that their responsibilities far outstrip thei=</span><br><span>r budget.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;&lt;span class=3D"im"&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.=</span><br><span>0001pt;"&gt;The proposal is more realistic than the oil tax, although not neces=</span><br><span>sarily something that will definitely be enacted. &amp;nbsp;The SEC has called f=</span><br><span>or increased funding recently.&amp;nbsp; SEC chairman Mary Jo White asked at a H=</span><br><span>ouse Financial Services Committee hearing in November for $1.8 billion in fu=</span><br><span>nding for fiscal 2017. &amp;nbsp;In a time when Republicans are looking to reduc=</span><br><span>e regulatory burdens against banks, an increase in regulators=E2=80=99 budge=</span><br><span>ts highlights the difference in priorities on Wall Street.&amp;nbsp;&lt;/p&gt;&lt;/span&gt;&lt;=</span><br><span>span class=3D"im"&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;=</span><br><span>=E2=80=A2 &amp;nbsp;&lt;b&gt;&lt;u&gt;Boosting R and D&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/span&gt;&lt;span class=3D"im"&gt;=</span><br><span>&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;The budget increas=</span><br><span>es R&amp;amp;D funding by four percent for a total of $152 billion in 2017; amon=</span><br><span>g changes are a doubling of clean energy research and funding a $1 billion c=</span><br><span>ancer =E2=80=9CMoonshot=E2=80=9D research program aimed at eliminating the d=</span><br><span>isease.&amp;nbsp;&lt;/p&gt;&lt;/span&gt;&lt;span class=3D"im"&gt;&lt;p class=3D"MsoNormal" style=3D"m=</span><br><span>argin-bottom: 0.0001pt;"&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;&lt;b&gt;&lt;u&gt;Apprenticeship Training=</span><br><span>Fund&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/span&gt;&lt;span class=3D"im"&gt;&lt;p class=3D"MsoNormal" style=3D"m=</span><br><span>argin-bottom: 0.0001pt;"&gt;The budget establishes a $2 billion mandatory Appre=</span><br><span>nticeship Training Fund =E2=80=93 meant to double the number of apprenticesh=</span><br><span>ips across the United States.&amp;nbsp; Only HRC has talked about the need for i=</span><br><span>ncreasing the number of apprenticeships in the country during the election, f=</span><br><span>avoring a tax-credit policy rather than direct funding.&amp;nbsp;&lt;/p&gt;&lt;/span&gt;&lt;/sp=</span><br><span>an&gt;&lt;/blockquote&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;b=</span><br><blockquote type="cite"><span>&lt;u style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Congressional Prospe=</span><br></blockquote><span>cts&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001pt;"&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Obama=E2=80=99s propo=</span><br><span>sal is not only a prelude to battle.&amp;nbsp; Lawmakers and the administration w=</span><br><span>ill have to strike some sort of deal to keep the government running when the=</span><br><span>current fiscal year ends&amp;nbsp;&lt;a&gt;&lt;/a&gt;&lt;a href=3D"x-apple-data-detectors://9"=</span><br><span>x-apple-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-eve=</span><br><span>nt" x-apple-data-detectors-result=3D"9"&gt;on&amp;nbsp;&lt;/a&gt;&lt;span class=3D"" tabinde=</span><br><span>x=3D"0"&gt;&lt;span class=3D""&gt;&lt;a href=3D"x-apple-data-detectors://9" x-apple-data=</span><br><span>-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-apple-d=</span><br><span>ata-detectors-result=3D"9"&gt;Sept. 30&lt;/a&gt;&lt;/span&gt;&lt;/span&gt;&amp;nbsp;=E2=80=94 most li=</span><br><span>kely a continuing resolution to keep the lights on through the election and e=</span><br><span>arly into 2017.&amp;nbsp; In a sign that Obama isn=E2=80=99t looking for a knock=</span><br><span>-down spending fight this year, the president=E2=80=99s proposal abides by t=</span><br><span>he discretionary caps for fiscal 2017 set by last year=E2=80=99s bipartisan b=</span><br><span>udget deal.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span class=3D"im" style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom: 0.0001=</span><br><span>pt;"&gt;Congressional leadership may have a fight on its hands even without Oba=</span><br><span>ma making waves =E2=80=93 if the Freedom Caucus membership decides to make i=</span><br><span>ts displeasure on the budget known then it could cause rancor amongst the GO=</span><br><span>P.&amp;nbsp; In a year when the party is desperate to project an image of capabl=</span><br><span>e leadership, in part by passing a complete budget for the first time since 1=</span><br><span>997, a blow-up between Ryan and the back-benchers would amount to nothing le=</span><br><span>ss than catastrophe.&lt;/p&gt;&lt;/span&gt;&lt;p class=3D"MsoNormal" style=3D"margin-bottom=</span><br><span>: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;At a m=</span><br><span>ore granular level, Obama=E2=80=99s blueprint is a grab-bag of Democratic pr=</span><br><span>iorities.&amp;nbsp; The administration is once again calling for expanding early=</span><br><span>education in his 2017 budget, asking for more pre-K grants, a child care ex=</span><br><span>pansion and a small boost to Head Start.&amp;nbsp; The budget boosts spending fo=</span><br><span>r Obamacare Medicaid expansion by $2.6 billion over a decade, designed to be=</span><br><span>an enticement to the 19 holdout states that have yet to take effect.&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;div&gt;&lt;p class=3D"MsoNormal"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Republicans and the Budget&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;The Republicans have a different=</span><br><span>plan for the budget this year, naturally.&amp;nbsp; Speaker Ryan has stated tha=</span><br><span>t he intends to pass the budget and all 12 appropriations through the house -=</span><br><span>- a feat that hasn't been accomplished in two decades.&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Republicans ha=</span><br><span>ve a different plan for the budget this year, naturally.&amp;nbsp; Speaker Ryan h=</span><br><span>as stated that he intends to pass the budget and all 12 appropriations throu=</span><br><span>gh the house - a feat that hasn't been accomplished since 1997.&amp;nbsp; Althou=</span><br><span>gh Ryan and the GOP House leadership hope to gain the faith of the American p=</span><br><span>eople back by bringing about the return of regular order, they face a tight c=</span><br><span>alendar and the political implications of an election year -- not to mention=</span><br><span>internal opposition&lt;b&gt;&amp;nbsp;&lt;/b&gt;in the form of the Freedom Caucus.&amp;nbsp; Sh=</span><br><span>ould the back-benchers feel their concerns aren=E2=80=99t being adequately a=</span><br><span>ddressed, they may try to disrupt the passage of appropriations bills. &amp;nbsp=</span><br><span>;The care and feeding of these members on budget matters may be turn out to b=</span><br><span>e one of the toughest challenges Ryan will face this year.&lt;/span&gt;&lt;/div&gt;&lt;div&gt;=</span><br><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;=</span><br><span>div&gt;-----------------&lt;/div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpress;"&gt;Recent Updates&lt;/span&gt;&lt;div style=3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Obama's FY17 Budge=</span><br><span>t &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;div&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defen=</span><br><span>ding Dodd-Frank &amp;nbsp;(Feb. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Ja=</span><br><span>n. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;T=</span><br><span>he Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Ch=</span><br><span>allenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)=</span><br><span>&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;HRC's Tax=</span><br><span>Policy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;div&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;=</span><br><span>/div&gt;&lt;div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8=</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"ba=</span><br></blockquote><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(J=</span><br><span>an. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/s=</span><br><span>pan&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29=</span><br><span>) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omn=</span><br><span>ibus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (=</span><br><span>Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) o=</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;/di=</span><br><span>v&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Feb 3, 2016, at 7:09 PM, Dana &amp;lt;&lt;a h=</span><br><span>ref=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;=</span><br><span>br&gt;&lt;/div&gt;&lt;blockquote type=3D"cite"&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" co=</span><br><span>ntent=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http=</span><br><span>-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; char=</span><br><span>set=3Dutf-8"&gt;&lt;div&gt;&lt;span style=3D"-webkit-text-size-adjust: auto; background-=</span><br><span>color: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-compo=</span><br><span>sition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-le=</span><br><span>tterpress;"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;p style=3D"color: rgba(0, 0, 0, 0.7=</span><br><span>01961); text-decoration: -webkit-letterpress; -webkit-text-size-adjust: auto=</span><br><span>; box-sizing: border-box; margin: 0px;"&gt;&lt;span style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p style=3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); text-decoration: -webkit-letterpress; -webkit-text-size-adjust: auto; b=</span><br><span>ox-sizing: border-box; margin: 0px;"&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;Upbeat tax talk is as common this time of year as predict=</span><br><span>ions that this year the Cubs will win the World Series this fall. &amp;nbsp;The w=</span><br><span>ord is that Messrs. Ryan and McConnell want to run a smooth, efficient, mayb=</span><br><span>e even a productive ship this year on the theory that voters will reward the=</span><br><span>GOP in November and that they will forget the record of the last seven year=</span><br><span>s. &amp;nbsp;The Speaker and the President have had a recent meeting and mini-me=</span><br><span>eting of the minds on taxes.&lt;/span&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;&amp;nbsp; That might create the right climate for passage of b=</span><br><span>road tax reform.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=</span><br><span>0392); text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;But really the gravitat=</span><br><span>ional pull is not toward gravitas, but away from the center, away from the H=</span><br><span>ill itself. &amp;nbsp;The GOP presidential nominee might very well have to run a=</span><br><span>gainst any bipartisan ("Washington") compromise on tax policy, making for an=</span><br><span>embarrassing intraparty policy conflict at the time the leadership most nee=</span><br><span>ds to project unity.&lt;br&gt;&lt;br&gt;Amid the turbulence of the broader campaign, whe=</span><br><span>re do the various tax discussions in the Hill stand, what bills night come u=</span><br><span>p for votes, is there anything that might pass?&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNor=</span><br><span>mal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=</span><br><span>-bottom: 0.0001pt;"&gt;Best,&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;Dana&lt;/p&gt;&lt;p=</span><br><span>class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=</span><br><span>terpress; margin-bottom: 0.0001pt;"&gt;________________________________&lt;/p&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=</span><br><span>rpress; margin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;Forms of Reform under Discussion&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoN=</span><br><span>ormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; marg=</span><br><span>in-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&lt;b&gt;=E2=80=A2 Comprehensive&lt;/b&gt;&amp;nbsp;-- Defined as involving a bipartisan=</span><br><span>trade-off between lowering taxes and broadening the base; closing exemption=</span><br><span>s, deductions, credits, etc.&amp;nbsp; Both Democratic candidates have outlined p=</span><br><span>lans to reduce loopholes, such as the "Romney loophole" and the "Bermuda loo=</span><br><span>phole," which allow very rich Americans to avoid paying their fair share.&amp;nb=</span><br><span>sp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961)=</span><br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorat=</span><br><span>ion: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2&amp;nbsp;&lt;b&gt;Corporate --&lt;/b&gt;&amp;nbsp;Ma=</span><br><span>ny of the issues with the corporate tax system could be addressed through in=</span><br><span>ternational tax reform, because so many companies earn capital abroad. Howev=</span><br><span>er, corporate tax reform at home deals with issues like taxing dividends and=</span><br><span>leveling the playing field between small and large businesses.&amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=</span><br><span>composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=</span><br><span>it-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;=E2=80=A2&amp;nbsp;&lt;b&gt;International&amp;nbsp;&lt;/b&gt;- Deals wit=</span><br><span>h foreign earnings of American firms abroad. Specifically, current internati=</span><br><span>onal tax reform aims at preventing inversions and coming up with a more succ=</span><br><span>essful way to tax foreign capital earned by American companies, as well as f=</span><br><span>inding ways to encourage companies to move profits home from abroad.&lt;/span&gt;&lt;=</span><br><span>/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=</span><br><span>t-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;Forums for Tax Reform&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNorma=</span><br><span>l" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bo=</span><br><span>ttom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;=</span><br><span>b&gt;=E2=80=A2 Ways &amp;amp; Means: &amp;nbsp;&lt;/b&gt;Kevin Brady became Chair of the Comm=</span><br><span>ittee in November 2015. He reportedly hopes to have an international tax ref=</span><br><span>orm proposal out of Ways and Means this year. &amp;nbsp;He says he wants to allo=</span><br><span>w American companies to bring their foreign profits back and invest at home a=</span><br><span>nd to lower the corporate tax rate to less than 20 percent.&lt;/span&gt;&lt;/p&gt;&lt;p cla=</span><br><span>ss=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=</span><br><span>ress; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Brady gave the opening statement at a hearing on =E2=80=9CReac=</span><br><span>hing America=E2=80=99s Potential.=E2=80=9D &amp;nbsp; For what it's worth, he la=</span><br><span>id out six goals for his committee in the coming months -- and they are ambi=</span><br><span>tious:&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-deco=</span><br><span>ration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNo=</span><br><span>rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=</span><br><span>n: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;=C2=B7&amp;nbsp;&lt;i&gt;Tax reforms to&amp;nbsp;boost investment and job crea=</span><br><span>tion;&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.7=</span><br><span>01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=</span><br><span>ecoration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7&amp;nbsp;&lt;i&gt;Welfare refo=</span><br><span>rms to&amp;nbsp;help more people join the workforce and achieve the American dre=</span><br><span>am.&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701=</span><br><span>961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=</span><br><span>oration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7&amp;nbsp;&lt;i&gt;Health reforms=</span><br><span>to truly make health care more affordable and accessible;&amp;nbsp;&lt;/i&gt;&lt;/span&gt;&lt;=</span><br><span>/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=</span><br><span>t-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;=C2=B7&amp;nbsp;&lt;i&gt;Trade expansion&amp;nbsp;to&amp;nbsp;=</span><br><span>open&amp;nbsp;more foreign&amp;nbsp;markets to American&amp;nbsp;goods and services;&lt;/i&gt;=</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;=C2=B7&amp;nbsp;&lt;i&gt;Entitlement reforms t=</span><br><span>o strengthen Medicare and Social Security for the long haul and;&amp;nbsp;&amp;nbsp;=</span><br><span>&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=</span><br><span>tion: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;=C2=B7&amp;nbsp;&lt;i&gt;Government reform=</span><br><span>s to boost&amp;nbsp;efficiency&amp;nbsp;and&amp;nbsp;effectiveness instead of stifling j=</span><br><span>obs and higher wages.&lt;/i&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.=</span><br><span>25pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=</span><br><span>bkit-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;Brady=E2=80=99s statement that tax reform will com=</span><br><span>e up in the coming weeks, coupled with Ryan=E2=80=99s recent visit with Obam=</span><br><span>a (specifically to find areas of cooperation), may indicate a broad-based re=</span><br><span>form package making its way forward in 2016.&amp;nbsp; Another interesting bulle=</span><br><span>t point is trade expansion, despite McConnell=E2=80=99s promise that TPP won=</span><br><span>=E2=80=99t be voted on before November.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorma=</span><br><span>l" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bo=</span><br><span>ttom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=</span><br><span>=A2&amp;nbsp;&lt;/span&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Senat=</span><br><span>e Finance:&lt;/b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbs=</span><br><span>p; &amp;nbsp;The Senate Finance Committee has its focus set on bipartisan workin=</span><br><span>g groups designed to produce tax reform on multiple levels -- individual, co=</span><br><span>rporate, and international. However, there have been many challenges and sta=</span><br><span>lemates along the way because of the stringent partisanship currently ailing=</span><br><span>the Senate.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;This election has been defin=</span><br><span>ed, more so than others, by the massively diverse set of tax policies propos=</span><br><span>ed by each candidates =E2=80=93 from flat taxes, capital gains reforms, fina=</span><br><span>ncial transaction taxes and more.&amp;nbsp; Sen. Hatch, Chair of Finance, has al=</span><br><span>ready called for reform efforts in 2016, targeting international corporate r=</span><br><span>ates specifically =E2=80=93 but it=E2=80=99s possible that Brady is trying t=</span><br><span>o shift him and others toward more ambitious proposals. &amp;nbsp;Any high profi=</span><br><span>le move Ryan makes here will likely be a controlling factor on tax policy. &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.70196=</span><br><span>1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decor=</span><br><span>ation: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;=E2=80=A2&amp;nbsp;Between the Branches -=</span><br><span>-&amp;nbsp;&lt;/b&gt;Speaker Ryan and Pres. Obama met yesterday to discuss a variety o=</span><br><span>f issues, one of which was related to the Earned Income Tax Credit. &amp;nbsp;Bo=</span><br><span>th hope to expand the credit to include low-earning workers who DON'T have c=</span><br><span>hildren. &amp;nbsp;It's unclear how successful their cooperation will be, but at=</span><br><span>the very least, they share a common goal.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNo=</span><br><span>rmal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=</span><br><span>n-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;Politico portrayed the meeting as campaign kabuki: =E2=80=9CRather than c=</span><br><span>ut any deals with Obama, Ryan=E2=80=99s hoping to spend 2016 developing what=</span><br><span>he=E2=80=99s calling a detailed GOP agenda on poverty, taxes, health care a=</span><br><span>nd other issues he=E2=80=99s hoping will factor into the presidential campai=</span><br><span>gn and provide a blueprint for House Republicans as they grapple with a new p=</span><br><span>resident next year.=E2=80=9D&amp;nbsp; It=E2=80=99s not surprising to see this g=</span><br><span>iven the pressure this election will put on the new Speaker. &amp;nbsp;He needs t=</span><br><span>o set a strong foundation for his own future, and helping Obama score a tax t=</span><br><span>ouchdown on him is not on the top of his list of objectives. &amp;nbsp;&lt;/span&gt;&lt;/=</span><br><span>p&gt;&lt;p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=</span><br><span>: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=</span><br><span>etterpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;During a statement before he met with Obama, Ryan said =E2=</span><br><span>=80=9CWe will take our conservative principles and we will apply those conse=</span><br><span>rvative principles to the problems of the day to offer our fellow citizens s=</span><br><span>olutions to the problems in their daily lives =E2=80=A6. These are not going=</span><br><span>to be things that we will be able to accomplish with this president still i=</span><br><span>n the White House. It is an agenda for what we will do next year with a Repu=</span><br><span>blican president to get our country back on track. This is what 2016=E2=80=99=</span><br><span>s all about. It=E2=80=99s going to be a year of ideas.=E2=80=9D&lt;/span&gt;&lt;/p&gt;&lt;p=</span><br><span>style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0i=</span><br><span>n 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=</span><br><span>rpress; margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;&lt;b&gt;&lt;u&gt;Political Realities&lt;/u&gt;&lt;/b&gt;&lt;b&gt;&lt;u&gt;&lt;/u&gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;=</span><br><span>p style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 6=</span><br><span>pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;William G=</span><br><span>ale and Aaron Krupkin, researchers at Brookings, recently wrote a paper titl=</span><br><span>ed =E2=80=9CMajor Tax Issues in 2016;=E2=80=9D Keeping in mind both the curr=</span><br><span>ent political climate and the probable environment for legislation in 2016, t=</span><br><span>he two researchers write that =E2=80=9CComprehensive tax reform is easy to t=</span><br><span>alk about, but hard to do. The pursuit of sweeping tax simplification is a n=</span><br><span>oble goal, but quixotic.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" st=</span><br><span>yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bottom=</span><br><span>: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;At th=</span><br><span>e end of the day 2016 is an election year and any legislative proposals that=</span><br><span>come forward during it will reflect that.&amp;nbsp; There are many exciting pos=</span><br><span>sibilities for tax reform in 2016, but there is also no reason to think that=</span><br><span>the political gridlock that has defined Washington for so long will ease up=</span><br><span>enough while both parties vie for control of the country by drawing contest=</span><br><span>s.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=</span><br><span>coration: -webkit-letterpress; margin-bottom: 0.0001pt;"&gt;----------------&lt;/p=</span><br><blockquote type="cite"><span>&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br></blockquote><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=</span><br><span>letterpress; margin-bottom: 0.0001pt;"&gt;Recent Updates&lt;/p&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;br&gt;&lt;div&gt;Defending Dodd-Frank &amp;nbsp;(Feb=</span><br></blockquote><span>. 2)&lt;br&gt;&lt;div&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Fed Holds Rates, for No=</span><br><span>w &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/=</span><br><span>div&gt;&lt;div&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/He=</span><br><span>althcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=</span><br><span>xt-decoration: -webkit-letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;=</span><br><span>&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392);"&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961)=</span><br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;2016 Tax Ag=</span><br><span>enda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.7=</span><br><span>01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;Glass=</span><br><span>-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Policy Issues=</span><br><span>&amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (=</span><br><span>Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=</span><br><span>mposition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)=</span><br><span>&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;/=</span><br><span>span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Revi=</span><br><span>ew: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibu=</span><br><span>s Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks=</span><br><span>(Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit=</span><br><span>-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/di=</span><br><span>v&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><span>style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=</span><br><span>0392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0=</span><br><span>Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div styl=</span><br><span>e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=</span><br><span>0, 98, 83, 0.0980392);"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;----&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Feb 2, 2016, a=</span><br><span>t 11:59 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachasin@gmai=</span><br><span><a href="http://l.com">l.com</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote type=3D"cite"&gt;&lt;div&gt;&lt;meta http-=</span><br><span>equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; chars=</span><br><span>et=3Dutf-8"&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0); co=</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392);"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;p class=3D"MsoNormal" style=3D"=</span><br><span>color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98=</span><br><span>, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;Congratulations, team. &amp;nbsp;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Last night's narrow&amp;n=</span><br><span>bsp;win in Iowa&amp;nbsp;&lt;/span&gt;provided a big moral victory and took some of th=</span><br><span>e win out of the challenger's sails. &amp;nbsp;It also means&lt;span style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;that, for at least several weeks=</span><br><span>, the Democratic nomination contest will continue apace. &amp;nbsp;And it is lik=</span><br><span>ely that Wall Street regulation will likely remain one the &amp;nbsp;campaign's c=</span><br><span>entral issues. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;At the heart of this debate is the Dodd-Frank Act (DFA). &amp;nbsp=</span><br><span>; Public opinion is still influenced in the main by memories of the 2008 fin=</span><br><span>ancial crisis and the recession that followed, so the candidates' views on D=</span><br><span>FA get special attention.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=</span><br><span>=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;Below, we re-examine these views and try to cl=</span><br><span>ear up the misconceptions that make it hard for&amp;nbsp;&lt;/span&gt;&lt;span style=3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;voters to identify the candidate b=</span><br><span>est able to defend the protections that&amp;nbsp;&lt;/span&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;DFA provides millions of American consumer=</span><br><span>s, investors, and workers.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"c=</span><br><span>olor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=</span><br><span>83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"colo=</span><br><span>r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=</span><br><span>, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&gt;-----------------&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;The assertion that DFA doesn=E2=80=99t do enough t=</span><br><span>o rein in Wall Street has become some sort of progressive shibboleth that as=</span><br><span>misleading as it is short-sighted and self-defeating. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/=</span><br><span>p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=</span><br><span>mposition-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;=</span><br><span>"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Polling shows th=</span><br><span>e American public believes strong financial regulation is critically needed (=</span><br><span>74 percent of Democrats, 56 percent Independents, 46 percent Republicans, 64=</span><br><span>percent all voters). &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;Polling has also shown that 66 percent of Americans are eit=</span><br><span>her =E2=80=9Cnot very familiar=E2=80=9D with or have =E2=80=9Cnever heard of=</span><br><span>=E2=80=9D Dodd-Frank. &amp;nbsp;It&amp;nbsp;is difficult for reasonable dialogue to b=</span><br><span>e conducted in an environment made up of strong support for regulatory refor=</span><br><span>m on one hand and a lack of knowledge of what is in DFA on the other.&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=</span><br><span>composition-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001p=</span><br><span>t;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Any public deb=</span><br><span>ate on DFA is hampered by the complexity of the issues involved. &amp;nbsp;Addit=</span><br><span>ionally, there is a perception that it has failed in its objectives. &amp;nbsp;B=</span><br><span>&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;eyond the f=</span><br><span>act that the law isn=E2=80=99t even fully implemented, major financial insti=</span><br><span>tutions have already begun restructuring&lt;/span&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;in ways that indicate the law is working p=</span><br><span>roperly.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;&amp;nbsp; But how many voters know this?&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" st=</span><br><span>yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;Has Dodd-Frank Worked?&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=</span><br><span>=3D"background-color: rgba(255, 255, 255, 0);"&gt;The Great Recession and the r=</span><br><span>esulting Dodd-Frank Act changed the trajectory of the financial industry. &amp;n=</span><br><span>bsp;The law isn't perfect but it is having a stabilizing effect. &amp;nbsp;Some o=</span><br><span>f the biggest firms on Wall Street -- MetLife, CitiGroup, General Electric -=</span><br><span>- have shrunk since the law was enacted and as a direct result of its regula=</span><br><span>tions. &amp;nbsp;Those that haven't shrunk are under even more pressure to break=</span><br><span>up or reduce their size now than they were before Dodd-Frank.&lt;/span&gt;&lt;/p&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The candidates are spl=</span><br><span>it concerning whether or not DFA is an full and sufficient model for regulat=</span><br><span>ing financial markets. &amp;nbsp;While HRC wants to preserve and protect the pro=</span><br><span>gress made by DFA while bolstering certain parts of the law, while Sanders c=</span><br><span>onsiders the law to be well intentioned yet deeply flawed.&amp;nbsp; However, qu=</span><br><span>estions should be raised about judging the DFA=E2=80=99s efficacy right now -=</span><br><span>each candidate is forming an opinion on the act despite the fact that DFA h=</span><br><span>asn=E2=80=99t even reached maturity yet - only about 70 percent of DFA provi=</span><br><span>sions have been implemented.&amp;nbsp;&amp;nbsp;Beyond the implementation gap is the=</span><br><span>issue that the results of financial reform cannot be seen overnight.&amp;nbsp; A=</span><br><span>piece of legislation as large and multifaceted as Dodd-Frank might take a d=</span><br><span>ecade to ripen.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Even as the greatest effects of DFA remain to be see, recent e=</span><br><span>vents indicate that DFA is working as it was intended to.&amp;nbsp; Any candidat=</span><br><span>e who claims that DFA is in need of major overhaul needs to answer this ques=</span><br><span>tion: What pressing need is there to overturn a law that has, to this point,=</span><br><span>largely accomplished its overarching objectives?&lt;/span&gt;&lt;span style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal=</span><br><span>" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;b&gt;&lt;u style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;2016 Candidates and Dodd-Frank&lt;/u&gt;&lt;/b&gt;&lt;=</span><br><span>/p&gt;&lt;p class=3D"MsoNormal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt=</span><br><span>;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;The candidates i=</span><br><span>n this year's primaries have given voters two choices: stick with Dodd-Frank=</span><br><span>and add some tweaks or repeal it/change it fundamentally. There is only one=</span><br><span>candidate in the former group - HRC. Every other candidate, including Berni=</span><br><span>e Sanders, intends to greatly change Dodd-Frank, or get rid of it all togeth=</span><br><span>er, if elected. With that choice in mind, it is necessary to remember how mo=</span><br><span>numental Dodd-Frank was and the political climate that it was passed in - on=</span><br><span>e with a Democratic majority in both houses. &amp;nbsp;&lt;/span&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorm=</span><br><span>al" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;DFA enjoyed widespread support in the=</span><br><span>years immediately following its passage;&amp;nbsp;Clinton needs to ring the ala=</span><br><span>rm bells that her opponents intend to kill off an effective tool for regulat=</span><br><span>ing Wall Street for the sake of trying out unproven strategies that are buil=</span><br><span>t more on ideology than policy.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"c=</span><br><span>olor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=</span><br><span>83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Obviously, most Republican candidates would prefer t=</span><br><span>o do away with Dodd-Frank completely as it is greatly disliked by their bigg=</span><br><span>est supporters. Bernie Sanders proposes something similar to Glass-Steagall,=</span><br><span>but also wants to create a list of the banks that are "too-big-too-fail" an=</span><br><span>d "break them up." He outlined his intentions in legislation he proposed to C=</span><br><span>ongress back in May 2015. Bloomberg Politics notes, "Similar to legislation h=</span><br><span>e introduced in previous years, when Democrats controlled the U.S. Senate, t=</span><br><span>he bill has little chance of advancing." &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNor=</span><br><span>mal" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;So voters can decide on strengthenin=</span><br><span>g a law that is already working to reign in Wall Street's risks or abandonin=</span><br><span>g it for either less regulation or poorly aimed regulations. Considering the=</span><br><span>historical record of these other reform ideas, how can voters be expected t=</span><br><span>o take those suggestions seriously?&lt;/span&gt;&lt;/p&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;On Jan 28, 2=</span><br><span>016, at 8:19 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachasin=</span><br><span>@<a href="http://gmail.com">gmail.com</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote type=3D"cite"&gt;&lt;div&gt;&lt;meta h=</span><br><span>ttp-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; c=</span><br></blockquote><span>harset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-typ=</span><br><span>e" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta=</span><br><span>http-equiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Mike &amp;amp; Co. --&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;=</span><br><span>&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=</span><br><span>"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Ordina=</span><br><span>rily this time of year, you would perhaps start to spot leaks or hear scuttl=</span><br><span>ebutt about the president's spending plans for the next fiscal year, in anti=</span><br><span>cipation of the statutory February White House budget rollout. &amp;nbsp;No one n=</span><br><span>oticed when the administration announced it would miss next week's legal bud=</span><br><span>get submission deadline. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin-top=</span><br><span>: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"m=</span><br><span>argin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline=</span><br><span>; background-color: rgba(255, 255, 255, 0);"&gt;With FY17 toplines set in the o=</span><br><span>mnibus bill passed last month, you may hear little in the Beltway about the b=</span><br><span>udget anytime soon (although the Chair did announce plans yesterday to intro=</span><br><span>duce a budget resolution this year, to the surprise of many, including Major=</span><br><span>ity Leader McConnell). &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0=</span><br><span>pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom=</span><br><span>: 0pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Even on th=</span><br><span>e campaign trail in the Granite State, with its famously flinty tax-o-phobes=</span><br><span>, nary a word is heard about the debt, let alone defaulting it, not this yea=</span><br><span>r. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;=</span><br><span>span style=3D"vertical-align: baseline; background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;The federal budget, deficits, and the debt have not yet gotten much a=</span><br><span>ir play yet this campaign. &amp;nbsp;But if we lifted up the car hood, what woul=</span><br><span>d we see?&amp;nbsp; What is our medium-long term fiscal outlook, what would the i=</span><br><span>mpact on it of the candidates' proposals be, and what fiscal issues are most=</span><br><span>likely to arise in the primary debate?&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-to=</span><br><span>p: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin=</span><br><span>-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;Dana&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"marg=</span><br><span>in-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;--------------&lt;/span&gt;&lt;/p&gt;&lt;span sty=</span><br><span>le=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" s=</span><br><span>tyle=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"font-weight: 70=</span><br><span>0; text-decoration: underline; vertical-align: baseline; background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;CBO 10-year Deficit Projections&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"=</span><br><span>ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"font-weig=</span><br><span>ht: 700; text-decoration: underline; vertical-align: baseline; background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin-=</span><br><span>top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;The CBO reported last week that it ex=</span><br><span>pects the annual deficit to grow from its current $450 billion to $1.3 trill=</span><br><span>ion by 2016. Candidates issuing calls for increased spending, against this b=</span><br><span>ackdrop, may be called to account. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"=</span><br><span>margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baselin=</span><br><span>e; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" s=</span><br><span>tyle=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align:=</span><br><span>baseline; background-color: rgba(255, 255, 255, 0);"&gt;Perhaps in recognition=</span><br><span>of this, both HRC and Sen. Sanders have recently and admirably detailed how=</span><br><span>they would use executive actions to enact parts of their revenue packages w=</span><br><span>ithout Congressional support. &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Both have proposed extensive new spending plans as p=</span><br><span>art of their primary platform. however, it may be time for the candidates to=</span><br><span>get serious about the fiscal viability of these plans from a fiscal perspec=</span><br><span>tive.&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b=</span><br><span>r&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span=</span><br><span>style=3D"font-weight: 700; text-decoration: underline; vertical-align: base=</span><br><span>line; background-color: rgba(255, 255, 255, 0);"&gt;Clinton -- Fiscal Stimulus?=</span><br><span>&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/s=</span><br><span>pan&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span styl=</span><br><span>e=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;HR=</span><br><span>C has proposed a tax package that will raise federal revenue by $500 billion=</span><br><span>over ten years, to be used for a $350 billion =E2=80=9CCollege Compact=E2=80=</span><br><span>=9D plan, for tax deductions on health care spending, and to fund an ambitio=</span><br><span>us infrastructure investment package. &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;Her spending plans are split between those w=</span><br><span>hich provide short-term economic stimulus and those which are aimed at provi=</span><br><span>ding longer-term boost.&amp;nbsp; Her $250 billion plan to increase infrastructu=</span><br><span>re investment in the country =E2=80=93 paid for by reviving the =E2=80=9CBui=</span><br><span>ld America Bonds=E2=80=9D program and federal revenue -- &amp;nbsp;works on two f=</span><br><span>ronts.&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt=</span><br><span>;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;=</span><br><span>&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;First, hiring middle-class worke=</span><br><span>rs in construction, engineering, and the trades the plan puts more money int=</span><br><span>o the hands of people who tend to spend that money quickly.&amp;nbsp; Second, im=</span><br><span>proving roads, bridges, and tunnels in America the plan will make future tra=</span><br><span>nsport of goods more reliable, speedy, and safe, all calculated to spur econ=</span><br><span>omic growth.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom=</span><br><span>: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-color: rgba(255,=</span><br><span>255, 255, 0);"&gt;The =E2=80=9CCollege Compact=E2=80=9D aims to forgive studen=</span><br><span>t loans, lower college tuition, and make community colleges tuition-free. &amp;n=</span><br><span>bsp;By removing the burden of debt from young graduates, HRC hopes to free t=</span><br><span>hose people up to begin consuming at a higher rate.&amp;nbsp; The current home-o=</span><br><span>wnership rate for young Americans is distressingly low largely due to their d=</span><br><span>ebt burden after college, HRC would rather young Americans take debt on in a=</span><br><span>n equity-building purchase than spend thirty years repaying their college de=</span><br><span>gree. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"=</span><br><blockquote type="cite"><span>&lt;span style=3D"font-weight: 700; text-decoration: underline; vertical-align=</span><br></blockquote><span>: baseline; background-color: rgba(255, 255, 255, 0);"&gt;The Sanders Health Ca=</span><br><span>re Tax Bill&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"=</span><br><blockquote type="cite"><span>&lt;span style=3D"vertical-align: baseline; background-color: rgba(255, 255, 2=</span><br></blockquote><span>55, 0);"&gt;Sanders=E2=80=99 $14 trillion spending plan, his =E2=80=9CMedicare f=</span><br><span>or All=E2=80=9D proposal, would require the single largest tax hike in the n=</span><br><span>ation=E2=80=99s history, bringing taxes on the wealthy to levels not seen si=</span><br><span>nce Reagan.&amp;nbsp; These taxes, the size of which already makes them non-star=</span><br><span>ters even among Democrats in Congress, are to be used to enact single-payer h=</span><br><span>ealthcare legislation =E2=80=93 legislation which didn=E2=80=99t even get a v=</span><br><span>ote during a Democratic majority in Obama=E2=80=99s first term. &lt;/span&gt;&lt;/p&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D=</span><br><span>"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical=</span><br><span>-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Sanders must ho=</span><br><span>pe that the economic efficiency of a single-payer health care plan, which fi=</span><br><span>nds its savings in the reduced role of middle-men and insurance companies, w=</span><br><span>ill result in savings passed onto Americans =E2=80=93 Americans who will, in=</span><br><span>their turn, spend those savings in the economy at large. &lt;/span&gt;&lt;/p&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr"=</span><br><span>style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-alig=</span><br><span>n: baseline; background-color: rgba(255, 255, 255, 0);"&gt;He has found politic=</span><br><span>al success in his promise to make colleges and universities in America tuiti=</span><br><span>on-free.&amp;nbsp; The impetus behind this plan is similar to that of Mrs. Clint=</span><br><span>on =E2=80=93 students with lower debt burdens are going to spend a greater p=</span><br><span>ortion of their income on food and entertainment, as well as on equity-inves=</span><br><span>tments like homes. &lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-botto=</span><br><span>m: 0pt;"&gt;&lt;span style=3D"font-weight: 700; text-decoration: underline; vertic=</span><br><span>al-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Campaign Impa=</span><br><span>ct&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;=</span><br><span>/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span st=</span><br><span>yle=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>The CBO=E2=80=99s federal budget projections released last week indicated th=</span><br><span>at the annual federal deficit will grow to $1.3 trillion by 2026.&amp;nbsp; It=E2=</span><br><span>=80=99s unlikely that the CBO report will be linked to the candidates' spend=</span><br><span>ing plans in any meaningful way.&amp;nbsp; And to be fair, each candidate has pu=</span><br><span>t forward proposals to raise revenue equivalent to the costs of their plans (=</span><br><span>or at least to the extent that their own analyses can be trusted); this is o=</span><br><span>ften a rarity amongst politicians running for office and they should be appl=</span><br><span>auded for doing so.&amp;nbsp; Because of this, both campaigns can claim that the=</span><br><span>ir proposals will not raise the federal deficit =E2=80=93 it=E2=80=99s unlik=</span><br><span>ely that those claims will remain unchallenged in the future. &lt;/span&gt;&lt;/p&gt;&lt;sp=</span><br><span>an style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"=</span><br><span>ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"font-weig=</span><br><span>ht: 700; vertical-align: baseline; background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;&lt;u&gt;Tax Foundation Analysis &lt;/u&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt=</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Recent analyses by the Tax Foundation, a grou=</span><br><span>p which uses dynamic scoring methods to judge revenue, have found that Clint=</span><br><span>on=E2=80=99s plan will reduce economic output by 1 percent over a decade, wh=</span><br><span>ile Sanders=E2=80=99 proposals will lower GDP by a staggering 9.5 percent.&amp;n=</span><br><span>bsp; Dynamic scoring is a controversial method of analyzing revenue estimate=</span><br><span>s =E2=80=93 it takes into account the supposed deleterious effects caused by=</span><br><span>tax increases and attempts to adjust growth the reflect those effects.&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;=</span><br><span>p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"=</span><br><span>vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;A CRS r=</span><br><span>eport published in 2014, however, stated that =E2=80=9CA review of statistic=</span><br><span>al evidence suggests that both labor supply and savings and investment are r=</span><br><span>elatively insensitive to tax rates.=E2=80=9D&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" s=</span><br><span>tyle=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align:=</span><br><span>baseline; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D=</span><br><span>"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical=</span><br><span>-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;While each camp=</span><br><span>aign will be inclined to&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;argue that any analysis which mentions economic contracti=</span><br><span>on as an effect of their plans is based on improper economics, it may not ma=</span><br><span>tter to voters whether they=E2=80=99re right or not. &amp;nbsp;American voters h=</span><br><span>ave always been tax-averse but will pay for what they want. &amp;nbsp;Maybe the b=</span><br><span>iggest yet-unanswered question: do they want another overhaul of he nation's=</span><br><span>healthcare enough to pay a new record in tax increases?&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D=</span><br><span>"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"ma=</span><br><span>rgin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=</span><br><span>coration: -webkit-letterpress;"&gt;Recent Updates&lt;/span&gt;&lt;/p&gt;&lt;div style=3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterpress;"&gt;&lt;br&gt;&lt;div&gt;Fiscal Pol: Def=</span><br><span>icit/Debt Dormancy (Jan. 28)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/di=</span><br><span>v&gt;&lt;div&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div&gt;Regulating the Regu=</span><br><span>lators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 2=</span><br><span>0)&lt;/div&gt;&lt;div&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;div&gt;2016 Tax Agenda on the=</span><br><span>Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/div&gt;=</span><br><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;2016 Tax Poli=</span><br><span>cy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sanders' Fin=</span><br></blockquote><span>Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;&lt;=</span><br><span>/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Rev=</span><br><span>iew: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situation &amp;nbsp;(Dec. 14=</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-=</span><br></blockquote><span>color: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax Extender Nego=</span><br></blockquote><span>tiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby 2.0 Update &amp;nbsp;(=</span><br><span>Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>On Jan 28, 2016, at 10:12 AM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>=</span><br></blockquote><span>om"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;br&gt;&lt;br&gt;&lt;/div&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3Dut=</span><br><span>f-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-eq=</span><br><span>uiv=3D"content-type" content=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=</span><br><span>=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" con=</span><br><span>tent=3D"text/html; charset=3Dutf-8"&gt;&lt;div&gt;&lt;p dir=3D"ltr" style=3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=</span><br><span>0392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom:=</span><br><span>0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Dear Mike &amp;amp; Co.,&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration: -webkit-letterpress; background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=</span><br><span>-webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"v=</span><br><span>ertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Pre-prim=</span><br><span>ary endorsements from Party leaders in tight contests are rare and sometimes=</span><br><span>understated.&amp;nbsp; To wit, President Obama remarks this week that HRC is as=</span><br><span>prepared to be president as any non-Vice President as anyone&lt;/span&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;: =E2=80=9CI think that wh=</span><br><span>at Hillary presents is a recognition that translating values into governance=</span><br><span>and delivering the goods is ultimately the job of politics, making a real-l=</span><br><span>ife difference to people in their day-to-day lives.=E2=80=9D&lt;/span&gt;&lt;/p&gt;&lt;p di=</span><br><span>r=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=</span><br><span>color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; m=</span><br><span>argin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;=</span><br><span>span style=3D"vertical-align: baseline; background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=</span><br><span>-webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"v=</span><br><span>ertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;Yesterda=</span><br><span>y, House Democratic leader Nancy starting doing precisely that, assessing th=</span><br><span>e centerpiece of Sanders' platform: &amp;nbsp;"He's talking about a single-payer=</span><br><span>, and that's not going to happen. I mean, does anybody in this room think th=</span><br><span>at we're going to be discussing a single-payer? ... We're not running on any=</span><br><span>platform of raising taxes."&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bott=</span><br><span>om: 0pt;"&gt;&lt;br&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"text-decoration: -webkit-letterpre=</span><br><span>ss; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: bas=</span><br><span>eline; background-color: rgba(255, 255, 255, 0);"&gt;Far from the cauldron of C=</span><br><span>ongress and the icy campaign trail was an announcement by the Fed with impli=</span><br><span>cations for the overall economy and for the election year ahead.&amp;nbsp; More o=</span><br><span>n the Fed's statement and its implications below. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D=</span><br><span>"ltr" style=3D"text-decoration: -webkit-letterpress; margin-top: 0pt; margin=</span><br><span>-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"text-decoratio=</span><br><span>n: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Please let me know if you have a=</span><br><span>ny questions or issue coverage requests.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" styl=</span><br><span>e=3D"text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0=</span><br><span>pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"text-decoration: -webkit=</span><br><span>-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;Best,&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"te=</span><br><span>xt-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p di=</span><br><span>r=3D"ltr" style=3D"text-decoration: -webkit-letterpress; margin-top: 0pt; ma=</span><br><span>rgin-bottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Dana&lt;/span&gt;&lt;/p&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0=</span><br></blockquote><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;----=</span><br><span>-------------&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=</span><br><span>etterpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"=</span><br><span>ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=</span><br><span>-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"text-decoration: underline; v=</span><br><span>ertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;The Fe=</span><br><span>d's Statement&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=</span><br></blockquote><span>-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=</span><br><span>ess; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: ba=</span><br><span>seline; background-color: rgba(255, 255, 255, 0);"&gt;The Federal Open Market C=</span><br><span>ommittee (FOMC) of the Federal Reserve decided yesterday not to raise rates i=</span><br><span>n January.&amp;nbsp; Last month, the Fed voted to raise interest rates for the f=</span><br><span>irst time in nine years, setting its rate target between 0.25 and 0.5 percen=</span><br><span>t.&amp;nbsp; Today's statement reaffirmed this decision, noting that recent mark=</span><br><span>et turbulence had not stayed the Fed from its plan to continue =E2=80=9Conly=</span><br><span>gradual increases in the federal funds rate.=E2=80=9D &amp;nbsp;Speculation and=</span><br><span>hope are rife that the FOMC will hold off raising rates in March and wait u=</span><br><span>ntil June. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.7=</span><br><span>01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=</span><br><span>ecoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span s=</span><br><span>tyle=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -web=</span><br></blockquote><span>kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"ver=</span><br><span>tical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;But the st=</span><br><span>atement today indicated no change in the Fed=E2=80=99s plan for previously o=</span><br><span>utlined &amp;nbsp;rate increases, four 0.25 percent increases this year, with to=</span><br><span>tal increases of one percent this year and next.&amp;nbsp; However, the FOMC is l=</span><br><span>argely comprised of dovish voters, who may change tack if current market cor=</span><br><span>rections continue. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpress; background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -w=</span><br><span>ebkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"text=</span><br><span>-decoration: underline; vertical-align: baseline; background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;&lt;b&gt;Market Reaction&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=</span><br><span>0392); text-decoration: -webkit-letterpress; background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=</span><br><span>tion: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=</span><br><span>=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;The=</span><br><span>Dow Jones Industrial average is down from 17.759 on December 16 to 15,951 t=</span><br><span>oday; the S&amp;amp;P 500 has declined from 2,073 to 1,879 over the same period.=</span><br><span>&amp;nbsp; The&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-de=</span><br><span>coration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span s=</span><br><span>tyle=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Fed however expressed confidence in continuing economic growth, calling low=</span><br></blockquote><span>inflation and the decline in energy prices =E2=80=9Ctransitory=E2=80=9D and=</span><br><span>predicting 2 percent inflation in the medium-term as energy prices rise aga=</span><br><span>in. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=</span><br><span>composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=</span><br><span>it-letterpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=</span><br><span>=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; ma=</span><br><span>rgin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline;=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;In a nod to beleaguered investor=</span><br><span>s, the Committee wrote that it =E2=80=9C... is closely monitoring global eco=</span><br><span>nomic and financial developments and is assessing their implications for the=</span><br><span>labor market and inflation, and for the balance of risks to the outlook.=E2=</span><br><span>=80=9D &amp;nbsp;So the Fed has, unusually, acknowledged the global scope of its=</span><br><span>deliberations.&amp;nbsp; FOMC also indicated a focus on =E2=80=9Clabor market i=</span><br><span>ndicators [which] will continue to strengthen."&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress; background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;spa=</span><br><span>n style=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;For now, though inflation is running just 0.4 percent, well below its tw=</span><br><span>o percent target, the Fed has not disavowed its plan to raise rates four tim=</span><br><span>es this year. &amp;nbsp;&amp;nbsp;This cannot be welcome to global equine markets. &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Domest=</span><br><span>ic and global capital markets have already lost roughly ten percent since th=</span><br><span>e December rate hike. &amp;nbsp;Fed policy&amp;nbsp;may be having a decelerating eff=</span><br><span>ect on growth and so could be a marginal drag on Democratic prospects. &amp;nbsp=</span><br><span>;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=</span><br><span>press; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0=</span><br><span>pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"text-decoration: underline; vertical=</span><br><span>-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;New FOMC Mem=</span><br><span>bers&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=</span><br><span>mposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=</span><br><span>-letterpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D=</span><br><span>"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=</span><br><span>n-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&gt;The FOMC is made up of rotating boa=</span><br><span>rd of seven voting members taken from Board of Governors members as well as r=</span><br><span>egional bank officials; these members rotate on an annual basis at the first=</span><br><span>meeting of each year.&amp;nbsp; The 2016 committee members are listed below (id=</span><br><span>entified as"hawks," those favoring tight monetary policy or "doves," support=</span><br><span>ing more accommodative policy).&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0=</span><br><span>, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-letterpress; background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;ul style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=</span><br><span>letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;li dir=3D"ltr" style=3D"=</span><br><span>list-style-type: disc; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D=</span><br><span>"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font color=3D"rgba(0, 0=</span><br><span>, 0, 0.7019607843137254)"&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;&lt;a href=3D"<a href="http://www.federalreserve.gov/aboutthefed/bios/board/yell=">http://www.federalreserve.gov/aboutthefed/bios/board/yell=</a></span><br><span>en.htm" style=3D"text-decoration: none;"&gt;&lt;span style=3D"text-decoration: und=</span><br><span>erline; vertical-align: baseline;"&gt;Janet L. Yellen&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"=</span><br><span>vertical-align: baseline;"&gt;, Board of Governors, Chair (dove)&lt;/span&gt;&lt;/span&gt;&lt;=</span><br><span>/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" style=3D"list-style-type: disc; vertical-alig=</span><br><span>n: baseline; margin-left: 15px;"&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; ma=</span><br><span>rgin-bottom: 0pt;"&gt;&lt;font color=3D"rgba(0, 0, 0, 0.7019607843137254)"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D"<a href="http://www.fed=">http://www.fed=</a></span><br><span><a href="http://eralreserve.gov/aboutthefed/bios/banks/pres02.htm">eralreserve.gov/aboutthefed/bios/banks/pres02.htm</a>" style=3D"text-decoration:=</span><br><span>none;"&gt;&lt;span style=3D"text-decoration: underline; vertical-align: baseline;=</span><br><span>"&gt;William C. Dudley&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"vertical-align: baseline;"&gt;, Ne=</span><br><span>w York, Vice Chair (dove)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" style=</span><br><span>=3D"list-style-type: disc; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p d=</span><br><span>ir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font color=3D"rgb=</span><br><span>a(0, 0, 0, 0.7019607843137254)"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;&lt;a href=3D"<a href="http://www.federalreserve.gov/aboutthefed/bios/boar=">http://www.federalreserve.gov/aboutthefed/bios/boar=</a></span><br><span>d/brainard.htm" style=3D"text-decoration: none;"&gt;&lt;span style=3D"text-decorat=</span><br><span>ion: underline; vertical-align: baseline;"&gt;Lael Brainard&lt;/span&gt;&lt;/a&gt;&lt;span sty=</span><br><span>le=3D"vertical-align: baseline;"&gt;, Board of Governors (dove)&lt;/span&gt;&lt;/span&gt;&lt;/=</span><br><span>font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" style=3D"list-style-type: disc; font-weight: 7=</span><br><span>00; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D"ltr" style=3D"ma=</span><br><span>rgin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font color=3D"rgba(0, 0, 0, 0.701960784=</span><br><span>3137254)"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D=</span><br><span>"<a href="http://www.federalreserve.gov/aboutthefed/bios/banks/pres08.htm">http://www.federalreserve.gov/aboutthefed/bios/banks/pres08.htm</a>" style=3D"t=</span><br><span>ext-decoration: none;"&gt;&lt;span style=3D"text-decoration: underline; vertical-a=</span><br><span>lign: baseline;"&gt;James Bullard&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"vertical-align: base=</span><br><span>line;"&gt;, St. Louis (hawk)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" style=</span><br><span>=3D"list-style-type: disc; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p d=</span><br><span>ir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font color=3D"rgb=</span><br><span>a(0, 0, 0, 0.7019607843137254)"&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;&lt;a href=3D"<a href="http://www.federalreserve.gov/aboutthefed/bios/boar=">http://www.federalreserve.gov/aboutthefed/bios/boar=</a></span><br><span>d/fischer.htm" style=3D"text-decoration: none;"&gt;&lt;span style=3D"text-decorati=</span><br><span>on: underline; vertical-align: baseline;"&gt;Stanley Fischer&lt;/span&gt;&lt;/a&gt;&lt;span st=</span><br><span>yle=3D"vertical-align: baseline;"&gt;, Board of Governors (hawk)&lt;/span&gt;&lt;/span&gt;&lt;=</span><br><span>/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" style=3D"list-style-type: disc; font-weight: 7=</span><br><span>00; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D"ltr" style=3D"ma=</span><br><span>rgin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font color=3D"rgba(0, 0, 0, 0.701960784=</span><br><span>3137254)"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D=</span><br><span>"<a href="http://www.federalreserve.gov/aboutthefed/bios/banks/pres10.htm">http://www.federalreserve.gov/aboutthefed/bios/banks/pres10.htm</a>" style=3D"t=</span><br><span>ext-decoration: none;"&gt;&lt;span style=3D"text-decoration: underline; vertical-a=</span><br><span>lign: baseline;"&gt;Esther L. George&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"vertical-align: b=</span><br><span>aseline;"&gt;, Kansas City (hawk)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" s=</span><br><span>tyle=3D"list-style-type: disc; font-weight: 700; vertical-align: baseline; m=</span><br><span>argin-left: 15px;"&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bottom: 0=</span><br><span>pt;"&gt;&lt;font color=3D"rgba(0, 0, 0, 0.7019607843137254)"&gt;&lt;span style=3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D"<a href="http://www.federalreserve.go=">http://www.federalreserve.go=</a></span><br><span>v/aboutthefed/bios/banks/pres04.htm" style=3D"text-decoration: none;"&gt;&lt;span s=</span><br><span>tyle=3D"text-decoration: underline; vertical-align: baseline;"&gt;Loretta J. Me=</span><br><span>ster&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"vertical-align: baseline;"&gt;, Cleveland (hawk)&lt;=</span><br><span>/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" style=3D"list-style-type: disc;=</span><br><span>vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D"ltr" style=3D"margi=</span><br><span>n-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font color=3D"rgba(0, 0, 0, 0.701960784313=</span><br><span>7254)"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D"=</span><br><span><a href="http://www.federalreserve.gov/aboutthefed/bios/board/powell.htm">http://www.federalreserve.gov/aboutthefed/bios/board/powell.htm</a>" style=3D"te=</span><br><span>xt-decoration: none;"&gt;&lt;span style=3D"text-decoration: underline; vertical-al=</span><br><span>ign: baseline;"&gt;Jerome H. Powell&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"vertical-align: ba=</span><br><span>seline;"&gt;, Board of Governors (swing)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D=</span><br><span>"ltr" style=3D"list-style-type: disc; font-weight: 700; vertical-align: base=</span><br><span>line; margin-left: 15px;"&gt;&lt;p dir=3D"ltr" style=3D"margin-top: 0pt; margin-bo=</span><br><span>ttom: 0pt;"&gt;&lt;font color=3D"rgba(0, 0, 0, 0.7019607843137254)"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D"<a href="http://www.federalres=">http://www.federalres=</a></span><br><span><a href="http://erve.gov/aboutthefed/bios/banks/pres01.htm">erve.gov/aboutthefed/bios/banks/pres01.htm</a>" style=3D"text-decoration: none;"=</span><br><blockquote type="cite"><span>&lt;span style=3D"text-decoration: underline; vertical-align: baseline;"&gt;Eric R=</span><br></blockquote><span>osengren&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"vertical-align: baseline;"&gt;, Boston (dove)=</span><br><span>&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;li dir=3D"ltr" style=3D"list-style-type: disc=</span><br><span>; vertical-align: baseline; margin-left: 15px;"&gt;&lt;p dir=3D"ltr" style=3D"marg=</span><br><span>in-top: 0pt; margin-bottom: 0pt;"&gt;&lt;font color=3D"rgba(0, 0, 0, 0.70196078431=</span><br><span>37254)"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a href=3D=</span><br><span>"<a href="http://www.federalreserve.gov/aboutthefed/bios/board/tarullo.htm">http://www.federalreserve.gov/aboutthefed/bios/board/tarullo.htm</a>" style=3D"=</span><br><span>text-decoration: none;"&gt;&lt;span style=3D"text-decoration: underline; vertical-=</span><br><span>align: baseline;"&gt;Daniel K. Tarullo&lt;/span&gt;&lt;/a&gt;&lt;span style=3D"vertical-align:=</span><br><span>baseline;"&gt;, Board of Governors (dove)&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;/ul&gt;&lt;s=</span><br><span>pan style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-b=</span><br><span>ottom: 0pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;span=</span><br><span>style=3D"vertical-align: baseline;"&gt;New members this year are&amp;nbsp;&lt;/span&gt;&lt;=</span><br><span>span style=3D"font-weight: 700; vertical-align: baseline;"&gt;James Bullard, Es=</span><br><span>ther George, Loretta Mester,&lt;/span&gt;&lt;span style=3D"vertical-align: baseline;"=</span><br><blockquote type="cite"><span>&amp;nbsp;and&amp;nbsp;&lt;/span&gt;&lt;span style=3D"font-weight: 700; vertical-align: base=</span><br></blockquote><span>line;"&gt;Eric Rosengren.&lt;/span&gt;&lt;span style=3D"vertical-align: baseline;"&gt;&amp;nbsp=</span><br><span>;&amp;nbsp;The FOMC consists of 12 voting members, with two nominees awaiting Se=</span><br><span>nate confirmation.&amp;nbsp; A shift in the balance of power between hawks and d=</span><br><span>oves may occur but the doves hold a slim majority for now.&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;=</span><br><span>&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; margin=</span><br><span>-bottom: 0pt;"&gt;&lt;span style=3D"text-decoration: underline; vertical-align: ba=</span><br><span>seline; background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Code Breaking&lt;/b&gt;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt; ma=</span><br><span>rgin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-color=</span><br><span>: rgba(255, 255, 255, 0);"&gt;Fed watchers have made an art form out of reading=</span><br><span>between the lines of these policy releases, even the most benign of which c=</span><br><span>an cause huge swings in markets (the Dow dropped over 200 points in the wake=</span><br><span>of today=E2=80=99s release).&amp;nbsp; Fed statements are famously difficult to=</span><br><span>parse but one point was unmistakable: the Fed is keeping a close eye on the=</span><br><span>labor market -- employment and participation rates, wages, etc. -- as a lea=</span><br><span>ding indicator for inflation and overall growth perhaps more than any other v=</span><br><span>ariable. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -we=</span><br><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p=</span><br><span>dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=</span><br><span>; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"text-decoration: unde=</span><br><span>rline; vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>&lt;b&gt;Campaign Consequences&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress; background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-=</span><br></blockquote><span>composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=</span><br><span>it-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertica=</span><br><span>l-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;None of the ca=</span><br><span>ndidates has commented on today=E2=80=99s release, not surprisingly, but the=</span><br><span>policy may draw ire from some on the right, who oppose fiat rate-targeting (=</span><br><span>though it took no action today) and the left, where lowering rather than rai=</span><br><span>sing rate is preferred (except for holders of fixed income securities). &amp;nbs=</span><br><span>p;&lt;/span&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=</span><br><span>rpress; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr"=</span><br><span>style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top=</span><br><span>: 0pt; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;Sen.&amp;nbsp; Sanders, true to his reputati=</span><br><span>on of standing far outside the Democratic fold, has long opposed the Fed for=</span><br><span>being too involved with the bankers they are meant to be regulating.&amp;nbsp; S=</span><br><span>anders has called for reform measures at the Fed, including prohibiting peop=</span><br><span>le serving on bank boards from serving on the Fed at the same time.&amp;nbsp;&lt;/s=</span><br><span>pan&gt;&lt;/p&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>s; background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;p dir=3D"ltr" styl=</span><br><span>e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=</span><br><span>0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0pt=</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;The Fed was confident that economic growth wo=</span><br><span>uld continue on its steady pace, indicating strength in labor markets and do=</span><br><span>wnplaying both financial market reactions and diving commodities prices.&amp;nbs=</span><br><span>p; The FOMC sets monetary policy on a long-term basis; the full ramification=</span><br><span>s of their decisions aren=E2=80=99t felt until months or years out, so any c=</span><br><span>ontention that the economy is strong enough to handle higher interest rates i=</span><br><span>s essentially an endorsement of macroeconomic policy in the last few years. D=</span><br><span>emocratic candidates will need to hammer this point home - but it is yet to b=</span><br><span>e seen if voters will understand the message that Democratic policies are re=</span><br><span>sponsible for the sunny outlook for the American economy, especially compare=</span><br><span>d to Western Europe, Latin America, and Asia.&lt;/span&gt;&lt;/p&gt;&lt;p dir=3D"ltr" style=</span><br><span>=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 11pt=</span><br><span>; margin-bottom: 0pt;"&gt;&lt;span style=3D"vertical-align: baseline; background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Below is the first sentence of the FOMC state=</span><br><span>ment from yesterday, edited to reflect changes from last month's statement:&lt;=</span><br><span>/span&gt;&lt;/p&gt;&lt;div&gt;&lt;div&gt;&lt;div dir=3D"ltr"&gt;&lt;span id=3D"docs-internal-guid-d5a88007=</span><br><span>-7fec-b922-12e4-5ebf8ff54494"&gt;&lt;span style=3D"vertical-align: baseline; backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;/span&gt;&lt;/span&gt;&lt;/div&gt;&lt;/d=</span><br><span>iv&gt;&lt;div&gt;&lt;div class=3D"statements" style=3D"margin: 0px; padding: 0px 0.5em; b=</span><br><span>order: 0px; vertical-align: baseline;"&gt;&lt;div class=3D"diff_statement_holder" s=</span><br><span>tyle=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-va=</span><br><span>riant: inherit; vertical-align: baseline;"&gt;&lt;div class=3D"statement_sheet wid=</span><br><span>get bordered" style=3D"margin: 5px 0px; padding: 5px; border: 1px solid rgb(=</span><br><span>221, 221, 221); font-style: inherit; font-variant: inherit; vertical-align: b=</span><br><span>aseline; overflow: auto; word-break: break-word; -webkit-hyphens: auto; bord=</span><br><span>er-top-left-radius: 2px; border-top-right-radius: 2px; border-bottom-right-r=</span><br><span>adius: 2px; border-bottom-left-radius: 2px; -webkit-box-shadow: rgb(221, 221=</span><br><span>, 221) 1px 1px 1px; box-shadow: rgb(221, 221, 221) 1px 1px 1px;"&gt;&lt;div class=3D=</span><br><span>"statement_text" style=3D"margin: 0px; padding: 0px; border: 0px; font-style=</span><br><span>: inherit; font-variant: inherit; vertical-align: baseline; overflow-x: hidd=</span><br><span>en;"&gt;&lt;p style=3D"margin: 0.5em; padding: 0px; border: 0px; font-style: inher=</span><br><span>it; font-variant: inherit; vertical-align: baseline;"&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;&lt;span style=3D"margin: 0px; padding: 0px=</span><br><span>; border: 0px; font-style: inherit; font-variant: inherit; vertical-align: b=</span><br><span>aseline;"&gt;For&amp;nbsp;&lt;/span&gt;&lt;del style=3D"margin: 0px; padding: 0px; border: 0=</span><br><span>px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"&gt;i=</span><br><span>mmediate release&lt;/del&gt;&lt;ins style=3D"margin: 0px; padding: 0px; border: 0px; f=</span><br><span>ont-style: inherit; font-variant: inherit; vertical-align: baseline; text-de=</span><br><span>coration: none;"&gt;release&amp;nbsp;&lt;a href=3D"x-apple-data-detectors://14" x-appl=</span><br><span>e-data-detectors=3D"true" x-apple-data-detectors-type=3D"calendar-event" x-a=</span><br><span>pple-data-detectors-result=3D"14"&gt;at 2:00 p.m. EST&lt;/a&gt;&lt;/ins&gt;&lt;/span&gt;&lt;/p&gt;&lt;p st=</span><br><span>yle=3D"margin: 0.5em; padding: 0px; border: 0px; font-style: inherit; font-v=</span><br><span>ariant: inherit; vertical-align: baseline;"&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;&lt;span style=3D"margin: 0px; padding: 0px; border: 0=</span><br><span>px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"&gt;I=</span><br><span>nformation received since the Federal Open Market Committee met in&amp;nbsp;&lt;/sp=</span><br><span>an&gt;&lt;del style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit=</span><br><span>; font-variant: inherit; vertical-align: baseline;"&gt;Octo&lt;/del&gt;&lt;ins style=3D"=</span><br><span>margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: i=</span><br><span>nherit; vertical-align: baseline; text-decoration: none;"&gt;Decem&lt;/ins&gt;&lt;span s=</span><br><span>tyle=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-va=</span><br><span>riant: inherit; vertical-align: baseline;"&gt;ber suggests that&amp;nbsp;&lt;/span&gt;&lt;de=</span><br><span>l style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font=</span><br><span>-variant: inherit; vertical-align: baseline;"&gt;economic activity has been exp=</span><br><span>anding at a moderate pace&lt;/del&gt;&lt;ins style=3D"margin: 0px; padding: 0px; bord=</span><br><span>er: 0px; font-style: inherit; font-variant: inherit; vertical-align: baselin=</span><br><span>e; text-decoration: none;"&gt;labor market conditions improved further even as e=</span><br><span>conomic growth slowed late last year&lt;/ins&gt;&lt;span style=3D"margin: 0px; paddin=</span><br><span>g: 0px; border: 0px; font-style: inherit; font-variant: inherit; vertical-al=</span><br><span>ign: baseline;"&gt;. Household spending and business fixed investment have been=</span><br><span>increasing at&amp;nbsp;&lt;/span&gt;&lt;del style=3D"margin: 0px; padding: 0px; border: 0=</span><br><span>px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"&gt;s=</span><br><span>olid&lt;/del&gt;&lt;ins style=3D"margin: 0px; padding: 0px; border: 0px; font-style: i=</span><br><span>nherit; font-variant: inherit; vertical-align: baseline; text-decoration: no=</span><br><span>ne;"&gt;moderate&lt;/ins&gt;&lt;span style=3D"margin: 0px; padding: 0px; border: 0px; fo=</span><br><span>nt-style: inherit; font-variant: inherit; vertical-align: baseline;"&gt;&amp;nbsp;r=</span><br><span>ates in recent months, and the housing sector has improved further; however,=</span><br><span>net exports have been soft&lt;/span&gt;&lt;ins style=3D"margin: 0px; padding: 0px; b=</span><br><span>order: 0px; font-style: inherit; font-variant: inherit; vertical-align: base=</span><br><span>line; text-decoration: none;"&gt;&amp;nbsp;and inventory investment slowed&lt;/ins&gt;&lt;sp=</span><br><span>an style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; fon=</span><br><span>t-variant: inherit; vertical-align: baseline;"&gt;. A range of recent labor mar=</span><br><span>ket indicators, including&amp;nbsp;&lt;/span&gt;&lt;del style=3D"margin: 0px; padding: 0p=</span><br><span>x; border: 0px; font-style: inherit; font-variant: inherit; vertical-align: b=</span><br><span>aseline;"&gt;ongoi&lt;/del&gt;&lt;ins style=3D"margin: 0px; padding: 0px; border: 0px; f=</span><br><span>ont-style: inherit; font-variant: inherit; vertical-align: baseline; text-de=</span><br><span>coration: none;"&gt;stro&lt;/ins&gt;&lt;span style=3D"margin: 0px; padding: 0px; border:=</span><br><span>0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"=</span><br><blockquote type="cite"><span>ng job gains&lt;/span&gt;&lt;del style=3D"margin: 0px; padding: 0px; border: 0px; fo=</span><br></blockquote><span>nt-style: inherit; font-variant: inherit; vertical-align: baseline;"&gt;&amp;nbsp;a=</span><br><span>nd declining unemployment, shows further improvement and confirms that under=</span><br><span>utilization of labor resources has diminished appreciably since early this y=</span><br><span>ear&lt;/del&gt;&lt;ins style=3D"margin: 0px; padding: 0px; border: 0px; font-style: i=</span><br><span>nherit; font-variant: inherit; vertical-align: baseline; text-decoration: no=</span><br><span>ne;"&gt;, points to some additional decline in underutilization of labor resour=</span><br><span>ces&lt;/ins&gt;&lt;span style=3D"margin: 0px; padding: 0px; border: 0px; font-style: i=</span><br><span>nherit; font-variant: inherit; vertical-align: baseline;"&gt;. Inflation has co=</span><br><span>ntinued to run below the Committee's 2 percent longer-run objective, partly r=</span><br><span>eflecting declines in energy prices and in prices of non-energy imports. Mar=</span><br><span>ket-based measures of inflation compensation&amp;nbsp;&lt;/span&gt;&lt;del style=3D"margi=</span><br><span>n: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: inheri=</span><br><span>t; vertical-align: baseline;"&gt;remain low; some&lt;/del&gt;&lt;ins style=3D"margin: 0p=</span><br><span>x; padding: 0px; border: 0px; font-style: inherit; font-variant: inherit; ve=</span><br><span>rtical-align: baseline; text-decoration: none;"&gt;declined further;&lt;/ins&gt;&lt;span=</span><br><span>style=3D"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-=</span><br><span>variant: inherit; vertical-align: baseline;"&gt;&amp;nbsp;survey-based measures of l=</span><br><span>onger-term inflation expectations&amp;nbsp;&lt;/span&gt;&lt;del style=3D"margin: 0px; pad=</span><br><span>ding: 0px; border: 0px; font-style: inherit; font-variant: inherit; vertical=</span><br><span>-align: baseline;"&gt;have edged down&lt;/del&gt;&lt;ins style=3D"margin: 0px; padding: 0=</span><br><span>px; border: 0px; font-style: inherit; font-variant: inherit; vertical-align:=</span><br><span>baseline; text-decoration: none;"&gt;are little changed, on balance, in recent=</span><br><span>months&lt;/ins&gt;&lt;span style=3D"margin: 0px; padding: 0px; border: 0px; font-sty=</span><br><span>le: inherit; font-variant: inherit; vertical-align: baseline;"&gt;.&lt;/span&gt;&lt;/spa=</span><br><span>n&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;p dir=3D"ltr" style=3D"text-decor=</span><br><span>ation: -webkit-letterpress; margin-top: 11pt; margin-bottom: 0pt;"&gt;&lt;span sty=</span><br><span>le=3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0);"&gt;&lt;=</span><br><span>/span&gt;&lt;/p&gt;&lt;div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"text-decoration: -webkit-letterpress;=</span><br><span>background-color: rgba(255, 255, 255, 0);"&gt;--------------------&lt;/span&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;br&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=</span><br></blockquote><span>n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=</span><br><span>ress;"&gt;Recent Updates&lt;/span&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=</span><br><span>-webkit-letterpress;"&gt;&lt;br&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=</span><br><span>tion: -webkit-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;/div&gt;&lt;div style=</span><br><span>=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Debate Myths Ch=</span><br><span>allenged &amp;nbsp;(Jan. 25)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress;"&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/div&gt;&lt;div s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Sanders' Ta=</span><br><span>x/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;br&gt;&lt;div&gt;=</span><br><span>2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/div&gt;&lt;div&gt;Glass-Steagall, Take 2=</span><br><span>&amp;nbsp;(Jan. 13)&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;Sanders Proposals/GS &amp;amp; TBTF (=</span><br><span>Jan. 7)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;Year-End Review: Fiscal Poli=</span><br><span>cy (Jan. 1) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;Year-End Review: Fin. Reg.&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;(Dec. 29) &amp;nbsp;&lt;/span&gt;&lt;span style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;/div&gt;=</span><br><span>&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Omnibus Situa=</span><br><span>tion &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Customs Bill &amp;nbsp;(Dec. 8=</span><br><span>)&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"=</span><br></blockquote><span>background-color: rgba(255, 255, 255, 0);"&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;div&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Shelby=</span><br></blockquote><span>2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;=</span><br><span>/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div=</span><br><blockquote type="cite"><span>&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;=</span><br></blockquote><span>/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/di=</span><br><span>v&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/body&gt;&lt;/html&gt;=</span><br><span></span><br><span>Content-Type: multipart/alternative;</span><br><span> &nbsp;boundary=Apple-Mail-722142D5-257B-4FFA-BEFB-ED8CE09D5CCD</span><br><span>Subject: Update -- Senate Banking Nominatio</span><br><span>&lt;html&gt;&lt;head&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=</span><br><span>utf-8"&gt;&lt;/head&gt;&lt;body dir=3D"auto"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=</span><br><span>terpress;"&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;/div&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&gt;&lt;div&gt;&lt;p class=3D"MsoNormal" style=3D"marg=</span><br><span>in: 0in 0in 0.0001pt;"&gt;&lt;o:p style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Federal Reserve gov=</span><br><span>ernor Lael Brainard is under fire today for making a $750 donation to the Cl=</span><br><span>inton campaign, with Republicans calling it proof positive that the Fed has =E2=</span><br><span>=80=9Ccozy ties=E2=80=9D with the Executive branch.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p=</span><br><span>class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&gt;Brainard began her Fed term in 2014; prec=</span><br><span>iously she was&amp;nbsp;Treasury&amp;nbsp;Undersecretary for International Affairs. &amp;=</span><br><span>nbsp;The former&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;MIT Professor of Applied Economics and Brookings Fellow has served i=</span><br><span>n half a dozen senior White House and Treasury positions. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;=</span><br><span>p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&gt;Sen. Shelby acted with alacrity: =E2=80=9C=</span><br><span>Governor Brainard=E2=80=99s contributions to Hillary Clinton=E2=80=99s campa=</span><br><span>ign call into question the political independence of the board,=E2=80=9D he s=</span><br><span>aid in an emailed statement from his press office.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;Meanwhile, the same Senate Banking Committee Chair=</span><br><span>has announced he=E2=80=99s ready to hold hearings for some of the 16 nomina=</span><br><span>tions -- reviewed below -- which have languished under his tenure.&amp;nbsp;&lt;o:p=</span><br><blockquote type="cite"><span>&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;Bes=</span><br></blockquote><span>t,&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;Dana&lt;/p&gt;&lt;p clas=</span><br><span>s=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;____________________________=</span><br><span>______&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Update: &amp;nbsp;Senate Banking N=</span><br><span>om Queue&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;=</span><br><span>span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Senate Banking&lt;/spa=</span><br><span>n&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;has the ig=</span><br><span>nominious distinction of being the only Senate committee to have not acted o=</span><br><span>n a single nominee before it in the 114th&lt;span style=3D"font-size: 12px;"&gt;&amp;n=</span><br><span>bsp;C&lt;/span&gt;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>ongress.&amp;nbsp; There are currently 16 nominations waiting for Committee act=</span><br></blockquote><span>ion. &amp;nbsp;These aren=E2=80=99t small time positions -- the logjam includes n=</span><br><span>ominees to the Fed=E2=80=99s Board of Governors and senior&amp;nbsp;&lt;/span&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Treasury, SEC, FDIC, an=</span><br><span>d Ex-Im posts.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0=</span><br><span>in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;For mont=</span><br><span>hs, Chairman Shelby has defended his Committee=E2=80=99s inaction by citing t=</span><br><span>wo issues -- he was facing a live primary threat and President Obama has not=</span><br><span>yet nominated a Federal Reserve vice chair for supervision, a prerequisite.=</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b&gt;&lt;=</span><br><span>u&gt;Logjam Lifting at Long Last?&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"ma=</span><br><span>rgin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;Shelby's primary behind him, he has scheduled a&amp;nbsp;&lt;a href=3D"x-apple-d=</span><br><span>ata-detectors://2" x-apple-data-detectors=3D"true" x-apple-data-detectors-ty=</span><br><span>pe=3D"calendar-event" x-apple-data-detectors-result=3D"2"&gt;March 15&lt;/a&gt;&lt;span s=</span><br><span>tyle=3D"font-size: 12px;"&gt;&amp;nbsp;&lt;/span&gt;hearing for two SEC nominees, Lisa Fa=</span><br><span>irfax and Hester Peirce.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Fairfax teaches at George Washington University and P=</span><br><span>eirce is a senior research fellow at George Mason=E2=80=99s Mercatus Center.=</span><br><span>The Committee will not be considering either of the two Federal Reserve nom=</span><br><span>inees, nor Adam Szubin, nominated for Treasury=E2=80=99s top post in terrori=</span><br><span>sm and financial crimes.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0=</span><br><span>in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Even=</span><br><span>if the Committee confirms the three nominee scheduled for its next hearing,=</span><br><span>it will have hardly made a dent in the queue.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"M=</span><br><span>soNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;Nominations have continued despite the dearth of hea=</span><br><span>rings on them.&amp;nbsp; On March 3&lt;span style=3D"font-size: 12px;"&gt;,&amp;nbsp;&lt;/spa=</span><br><span>n&gt;President Obama nominated Brian Quintenz and Chris Brummer to the Commodit=</span><br><span>ies Futures Trading Commission (CFTC).&amp;nbsp; Quintenz, a Republican, works f=</span><br><span>or Saeculum Capital in D.C. and Brummer, a Democrat, is a professor at Georg=</span><br><span>etown University Law School.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margi=</span><br><span>n: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=</span><br><span>&lt;b&gt;&lt;u&gt;Backlog at Banking&lt;/u&gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"m=</span><br><span>argin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;With 16 unfilled vacancies before it (Messrs. Quintenz and Brummer will m=</span><br><span>ake it &amp;nbsp;18), the Banking Committee has its work cut out for it. &amp;nbsp;T=</span><br><span>he Chairman=E2=80=99s refusal&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;&amp;nbsp;to consider any Fed nominee until Obama nomina=</span><br><span>tes a vice chair for supervision means that those two critical positions may=</span><br><span>remain unfilled longest. &amp;nbsp; Key vacancies exist at the Export-Import Ba=</span><br><span>nk as well, because the board does not have enough members to reach quorum i=</span><br><span>t is unable to approve loans in excess of $10 million, severely hampering it=</span><br><span>s impact on export promotion deals.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;With so many nominees waiting to receive a hearing and the number legi=</span><br><span>slative days the Senate remaining this session rapidly dwindling, it=E2=80=99=</span><br><span>s no surprise that the &amp;nbsp;Democrats on Banking have been pushing harder t=</span><br><span>han ever for the Chairman to move forward quickly.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;In a letter sent to Sen. Shelby, Ranking Me=</span><br><span>mber Sherrod Brown and his colleagues wrote =E2=80=9CFor more than a year, t=</span><br><span>he committee has failed to carry out one of its basic duties =E2=80=A6 Failu=</span><br><span>re to act impairs agencies=E2=80=99 and offices=E2=80=99 ability to fulfill a=</span><br><span>ll of their functions.=E2=80=9D&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"ma=</span><br><span>rgin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;The pending list includes the nominations&amp;nbsp;&lt;/span&gt;&lt;span style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;below:&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorma=</span><br><span>l" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&gt;&lt;u&gt;&lt;b&gt;Federal Reserve&lt;/b&gt;&lt;/u&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNorm=</span><br><span>al" style=3D"margin: 0in 0in 12pt;"&gt;&lt;b style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;Allan R. Landon&lt;/b&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;, of Utah, to be a Member of the Board of Gov=</span><br><span>ernors of the Federal Reserve System for the unexpired term of fourteen year=</span><br><span>s from February 1, 2016 [PN 3].&amp;nbsp;(Reappointment)&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"M=</span><br><span>soNormal" style=3D"margin: 0in 0in 12pt;"&gt;&lt;span style=3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;&lt;b&gt;=E2=80=A2 &amp;nbsp;&lt;/b&gt;&lt;/span&gt;&lt;b style=3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&gt;Kathryn M. Dominguez&lt;/b&gt;&lt;span style=3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&gt;, of Michigan, to be a Member of the B=</span><br><span>oard of Governors of the Federal Reserve System for the unexpired term of fo=</span><br><span>urteen years from February 1, 2004, vice Jeremy C. Stein, resigned.&lt;/span&gt;&lt;s=</span><br><span>pan style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;b style=3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Federal Deposit Insurance Corporation&lt;/=</span><br><span>u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;=E2=80=A2&lt;/b&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;b st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Jay Neal Lerner&lt;/b&gt;&lt;span s=</span><br><span>tyle=3D"background-color: rgba(255, 255, 255, 0);"&gt;, of Illinois, to be Insp=</span><br><span>ector General, Federal Deposit Insurance Corporation, vice Jon T. Rymer, res=</span><br><span>igned&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001=</span><br><span>pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;&lt;u&gt;Treasury Department&lt;/u&gt;&lt;o:=</span><br><span>p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=</span><br><span>1pt;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/b&gt;&lt;/p&gt;&lt;=</span><br><span>p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;=E2=80=A2&amp;nbsp;&lt;/b&gt;&amp;nbsp;&lt;/span&gt;&lt;=</span><br><span>b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Adam J. Szubin&lt;/b&gt;&lt;spa=</span><br><span>n style=3D"background-color: rgba(255, 255, 255, 0);"&gt;, of the District of C=</span><br><span>olumbia, to be Under Secretary for Terrorism and Financial Crimes, vice Davi=</span><br><span>d S. Cohen, resigned&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0=</span><br><span>in 0.0001pt;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/b=</span><br><blockquote type="cite"><span>&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;b style=3D"=</span><br></blockquote><span>background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;Amias Moore Geret=</span><br><span>y&lt;/b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;, of Connecti=</span><br><span>cut, to be an Assistant Secretary of the Treasury, vice Cyrus Amir-Mokri, re=</span><br><span>signed&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=</span><br><span>1pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span=</span><br><blockquote type="cite"><span>&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;b style=3D"=</span><br></blockquote><span>background-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Securities and Exchange Commis=</span><br><span>sion&lt;/u&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0=</span><br><span>.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;br&gt;&lt;/sp=</span><br><span>an&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.0001pt;"&gt;&lt;span styl=</span><br><span>e=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;=E2=80=A2&lt;/b&gt;&amp;nbsp;&amp;nbsp;=</span><br><span>&lt;/span&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Lisa M. Fairfa=</span><br><span>x&lt;/b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;, of Maryland=</span><br><span>, to be a Member of the Securities and Exchange Commission for a term expiri=</span><br><span>ng&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;a h=</span><br><span>ref=3D"x-apple-data-detectors://8" x-apple-data-detectors=3D"true" x-apple-d=</span><br><span>ata-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D"8"&gt;Ju=</span><br><span>ne 5, 2020&lt;/a&gt;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&gt;, vice Luis Aguilar, term expired&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"margin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.00=</span><br><span>01pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Hester Ma=</span><br><span>ria Peirce&lt;/b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;, of=</span><br><span>Ohio, to be a Member of the Securities and Exchange Commission for a term e=</span><br><span>xpiring&amp;nbsp;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&gt;&lt;a href=3D"x-apple-data-detectors://9" x-apple-data-detectors=3D"true" x-a=</span><br><span>pple-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D=</span><br><span>"9"&gt;June 5, 2021&lt;/a&gt;&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;. (Reappointment)&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"m=</span><br><span>argin: 0in 0in 0.0001pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 25=</span><br><span>5, 0);"&gt;&lt;br&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0in 0.000=</span><br><span>1pt;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;&lt;u&gt;Export=</span><br><span>-Import Bank&lt;/u&gt;&lt;/b&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 0in 0=</span><br><span>in 0.0001pt;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;=</span><br><span>/b&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/ht=</span><br><span>ml; charset=3Dutf-8"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;span style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;=E2=80=A2&lt;/b&gt;&amp;nbsp;&amp;nbsp;&lt;/s=</span><br><span>pan&gt;&lt;b style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>John Mark McWatters&lt;/b&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br></blockquote><span>it-composition-fill-color: rgba(130, 98, 83, 0.0980392); background-color: r=</span><br><span>gba(255, 255, 255, 0);"&gt;, of Texas, to be a Member of the Board of Directors=</span><br><span>of the Export-Import Bank of the United States for a term expiring&amp;nbsp;&lt;/s=</span><br><span>pan&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=</span><br><span>color: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 255, 255, 0=</span><br><span>);"&gt;&lt;a href=3D"x-apple-data-detectors://10" x-apple-data-detectors=3D"true" x=</span><br><span>-apple-data-detectors-type=3D"calendar-event" x-apple-data-detectors-result=3D=</span><br><span>"10"&gt;January 20, 2019&lt;/a&gt;&lt;/span&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;, vice&lt;/span&gt;&lt;span class=3D"apple-converted-=</span><br><span>space" style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 255, 255, 0);"=</span><br><blockquote type="cite"><span>&amp;nbsp;&lt;/span&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=</span><br></blockquote><span>tion-fill-color: rgba(130, 98, 83, 0.0980392); background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&gt;Sean Robert Mulvaney, term expired.&amp;nbsp;&lt;/span&gt;&lt;span style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;__________________=</span><br><span>__________________&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;br style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=</span><br><span>press;"&gt;&lt;b&gt;&lt;u&gt;Reeder&lt;/u&gt;&lt;/b&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"text-decoration=</span><br><span>: -webkit-letterpress;"&gt;&lt;b&gt;&lt;u&gt;Aw&lt;/u&gt;&lt;/b&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"tex=</span><br><span>t-decoration: -webkit-letterpress;"&gt;&lt;b&gt;&lt;u&gt;Pm&lt;/u&gt;&lt;/b&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;br st=</span><br><span>yle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -we=</span><br><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- &amp;nbsp;Financial Reg. Nom=</span><br><span>inations&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2); text-decoration: -webkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Upda=</span><br><span>te on Tax Bills&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Mon -=</span><br><span>- &amp;nbsp;Budget Irresolution&amp;nbsp;&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;br s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=</span><br><span>-webkit-letterpress;"&gt;&amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;=</span><br><span>br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=</span><br><span>on: -webkit-letterpress;"&gt;&amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;EU/US Derivative=</span><br><span>s Deal&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration: -webkit-letterpress;"&gt;&amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;P=</span><br><span>ension Crisis&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;br style=3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=</span><br><span>0392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>s;"&gt;Senate Banking Nominations (Mar. 10)&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>;"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;S=</span><br><span>urvey of the SIFI Landscape &amp;nbsp;(Mar. 9)&lt;/span&gt;&lt;br style=3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill=</span><br><span>-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"=</span><br><blockquote type="cite"><span>Michigan and the Meaning of Flint &amp;nbsp;(Mar. 8) Puerto Rico's Debt Crisis &amp;=</span><br></blockquote><span>nbsp;(Mar. 5)&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rg=</span><br><span>ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0=</span><br><span>980392); text-decoration: -webkit-letterpress;"&gt;Municipal Finance Caucus &amp;nb=</span><br><span>sp;(Mar. 4)&lt;/span&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=</span><br><span>letterpress;"&gt;&amp;nbsp;&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -web=</span><br><span>kit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"co=</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress;"&gt;Flint Bill: &amp;nbsp;Prov=</span><br><span>isions &amp;amp; Prospects (Mar. 2)&lt;/span&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-=</span><br><span>decoration: -webkit-letterpress;"&gt;&amp;nbsp;&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>;"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;T=</span><br><span>op Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br style=3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>;"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;B=</span><br><span>igger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br style=3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress=</span><br><span>;"&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18)&lt;/span&gt;&lt;span style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-decoration: -webkit-letterpress;"&gt;&amp;nbsp;&lt;/span&gt;&lt;br style=3D"=</span><br><span>color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98=</span><br><span>, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=</span><br><span>mposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=</span><br><span>-letterpress;"&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=</span><br><span>t-letterpress;"&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16)&lt;/span&gt;&lt;span sty=</span><br><span>le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=</span><br><span>30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&amp;nbsp;&lt;/span&gt;=</span><br><span>&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=</span><br><span>tion: -webkit-letterpress;"&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;=</span><br><span>br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=</span><br><span>on: -webkit-letterpress;"&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br sty=</span><br><span>le=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=</span><br><span>30, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -web=</span><br><span>kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterpress;"&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&lt;/span&gt;&lt;span style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&amp;nbsp;&lt;/span&gt;&lt;br s=</span><br><span>tyle=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration:=</span><br><span>-webkit-letterpress;"&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br style=3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=</span><br><span>t-letterpress;"&gt;Defending Dodd-Frank &amp;nbsp;(Feb.2)&lt;/span&gt;&lt;br style=3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392);"&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=</span><br><span>-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;span style=3D"color: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>text-decoration: -webkit-letterpress;"&gt;___________________&lt;/span&gt;&lt;span styl=</span><br><span>e=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=</span><br><span>0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&gt;&amp;nbsp;&lt;/span&gt;&lt;=</span><br><span>br style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&gt;&lt;br style=3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&gt;&lt;div&gt;&lt;span&gt;Mik=</span><br><span>e &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;It may feel like Michigan-mo=</span><br><span>rning-after but by dint of Mississippi, HRC padded her delegate lead last ni=</span><br><span>ght. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;On Monday, &amp;nbsp;President Obama held=</span><br><span>a financial regulatory summit in the Roosevelt Room of the White House. &amp;nb=</span><br><span>sp;Joined by the heads of the Fed, the FDIC, and the CFPB, Obama declared =E2=</span><br><span>=80=9CI want to dispel the notion that exists both on the left and on the ri=</span><br><span>ght that somehow, after the crisis, nothing happened," he said. =E2=80=9CWe d=</span><br><span>id not just rebuild this, we rebuilt it better, and we=E2=80=99ve rebuilt it=</span><br><span>stronger.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;He has a strong argumen=</span><br><span>t. &amp;nbsp;You can't prove a negative and we will never know how many financia=</span><br><span>l crises were averted by Dodd-Frank. &amp;nbsp;But metrics bear out the view tha=</span><br><span>t Americans and the economy have less to fear today from the Systemically Si=</span><br><span>gnificant Financial Institutions (SIFIs) than at any time since the turn of t=</span><br><span>he millennium. &amp;nbsp;More on the regulatory circumstances of SIFIs below. &amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>Dana&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;-------------------------------------=</span><br></blockquote><span>------------&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;A Survey of the SIFI Landscape=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The landscape for the eight SIFIs today --=</span><br><span>Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morg=</span><br><span>an Chase, Morgan Stanley, State Street, and Wells Fargo -- is worth looking a=</span><br><span>t from various perspectives. &amp;nbsp;Presidential candidates on both sides hav=</span><br><span>e made a point of criticizing =E2=80=9Ctoo big to fail=E2=80=9D banks, court=</span><br><span>proceedings are challenging regulators powers', members of Congress are deb=</span><br><span>ating whether to loosen Dodd-Frank Act SIFI rules, and a current Federal Res=</span><br><span>erve Bank president has spoken out in favor of breaking them up. &amp;nbsp;But d=</span><br><span>o SIFIs pose the same threat they did in 2008?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;The Power of DFA&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;President Obama hasn=E2=</span><br><span>=80=99t remained silent in the face of criticism of DFA. &amp;nbsp;After the Mon=</span><br><span>day summit, Obama said that critics are spreading =E2=80=9Ccynicism=E2=80=9D=</span><br><span>: &amp;nbsp;=E2=80=9CIt is popular =E2=80=A6 to suggest that the crisis happened=</span><br><span>and nothing changed. &amp;nbsp;That is not true.=E2=80=9D &amp;nbsp;The President c=</span><br><span>ited the 14 million new jobs created since his inauguration, proof, he said,=</span><br><span>that sensible regulations on Wall Street don=E2=80=99t stifle business grow=</span><br><span>th.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Two major business news stories from 20=</span><br><span>15 support the President=E2=80=99s view: &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;General Electric continued to sell off GE Capital, i=</span><br><span>ts $42 billion investment arm, hoping to exit SIFI status in Q1 2016 as a re=</span><br><span>sult of its divestiture. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbs=</span><br><span>p;&amp;nbsp;MetLife has been embroiled in a legal battle with the Financial Stab=</span><br><span>ility Oversight Council (FSOC) since the regulator announced in December 201=</span><br><span>4 that the insurance company was considered a SIFI =E2=80=93 arguments were h=</span><br><span>eard in New York this January. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;70 percent o=</span><br><span>f DFA has been implemented by the regulatory agencies since it was passed. &amp;=</span><br><span>nbsp;&amp;nbsp;Despite the constraints on SIFIs, they have by and large adapted w=</span><br><span>ell, making adjustments faster, earlier and more successfully=E2=80=9D than t=</span><br><span>heir overseas counterparts. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;=</span><br><span>nbsp;SIFIs now hold much more capital now than they did before the crisis =E2=</span><br><span>=80=93 to the tune of $700 billion in additional capital, twice the amount p=</span><br><span>rior to it&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;SIFIs have th=</span><br><span>ree times the liquidity they had before the crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;Derivatives clearing houses force transparency on=</span><br><span>SIFI speculation, preventing over-exposure&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;SIFIs now post collateral on their derivatives tra=</span><br></blockquote><span>des&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;SIFIs submit t=</span><br><span>o rigorous stress testing by the Federal Reserve and FDIC &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;SIFIs are being forced to draft =E2=</span><br><span>=80=9Cliving wills,=E2=80=9D which have already forced some to streamline or=</span><br><span>simplify so they can wind down without requiring a bailout&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Congressional Update&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Congr=</span><br><span>ess is split between those who want to reduce regulatory pressure on big ban=</span><br><span>ks and those who would rather see it ramped up. &amp;nbsp;Sen. Shelby, Senate Ba=</span><br><span>nking Chair, introduced the Financial Regulatory Improvement Act of 2015, a g=</span><br><span>rab-bag of exceptions and exemptions from regulations, mostly for banks with=</span><br><span>between $50 and $500 billion in assets. &amp;nbsp;In a similar vein, Sens Warne=</span><br><span>r, Portman, and Collins introduced the Independent Agency Regulatory Analysi=</span><br><span>s Act to require that regulators undertake a cost-benefit analysis of any ru=</span><br><span>les they wish to implement.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;On the flip sid=</span><br><span>e, Sens. McCain and Warren=E2=80=99s 21st Century Glass-Steagall Act propose=</span><br><span>s to split commercial and investment banks in a bid to finally kill off the T=</span><br><span>BTF problem. &amp;nbsp;Sens. Warren and Vitter teamed up early in 2015 to introd=</span><br><span>uce a package of amendments to the Federal Reserve Act =E2=80=93- that bill n=</span><br><span>otably would set forward stricter regulations when an entity is considered i=</span><br><span>nsolvent, and therefore ineligible for Federal Reserve loans, as well as req=</span><br><span>uire that the Fed lend money to distressed institutions at market rates.&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Regulators' Agenda &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;Under Basel III requirements for large banks to satisfy Liquidity=</span><br></blockquote><span>Coverage Ratios (LCR) were adopted by a number of national regulators, incl=</span><br><span>uding the Federal Reserve. &amp;nbsp;While the Fed has floated a rule change all=</span><br><span>owing some municipal bonds to count as High Quality Liquid Assets (HQLA), th=</span><br><span>at hasn=E2=80=99t stopped Rep. Luke Messer from proposing HR 2209 to force r=</span><br><span>egulators allow a greater share of munis to count as HQLA (see Update, Feb. 1=</span><br><span>8).&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed is also working on implementing=</span><br><span>a rule on Single-Counterparty Credit Limits (SCCL), setting boundaries on c=</span><br><span>redit exposure between large banks or major counterparties. &amp;nbsp;The rule i=</span><br><span>s meant to prevent banks from becoming overexposed to other financial instit=</span><br><span>utions, preventing them from taking overly large losses in the event that th=</span><br><span>e counterparty fails. &amp;nbsp;Analysts suspect that firms are nearly $100 bill=</span><br><span>ion over the limits imposed by this rule, but Yellen says it is necessary to=</span><br><span>set a =E2=80=9Cbright line=E2=80=9D on credit exposure.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;SIFIs Moving Forward&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;There is=</span><br><span>no doubt that the upcoming MetLife ruling will be a critical pivot point fo=</span><br><span>r how regulators interact with SIFIs. &amp;nbsp;If the FSOC is required to retra=</span><br><span>ct the firm=E2=80=99s SIFI status it will open the regulator up for a whole s=</span><br><span>lew of challenges from other banks and institutions. &amp;nbsp;The fate of Congr=</span><br><span>essional proposals to restrict regulator=E2=80=99s efforts, either by determ=</span><br><span>ining rules for them or by burdening them with regulations of their own, sho=</span><br><span>uld be seen as the start of a potential sea change in the regulatory climate=</span><br><span>. &amp;nbsp;During his Monday meeting, President Obama warned of this: "If there=</span><br><span>is a significant challenge in terms of regulating Wall Street and regulatin=</span><br><span>g our financial sector it is primarily coming from certain members of Congre=</span><br><span>ss who are consistently pressuring independent regulators to back off.=E2=80=</span><br><span>=9D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;It is not a bad time to be a SIFI in Am=</span><br><span>erica =E2=80=93 it=E2=80=99s certainly much better to be one now than in 201=</span><br><span>0. &amp;nbsp;While DFA has forced restructuring and streamlining to occur, event=</span><br><span>s like the GE Capital sell-off may prove to be exceptions that prove the rul=</span><br><span>e rather than the new normal for SIFIs, especially if MetLife wins its case a=</span><br><span>gainst regulators. &amp;nbsp;President Obama was right to point to Congress as t=</span><br><span>he cause of regulatory gridlock; the political will seen after the economic c=</span><br><span>ollapse has largely evaporated, giving SIFIs far more breathing room and ope=</span><br><span>ning up opportunities to push through =E2=80=9Cregulatory reform=E2=80=9D me=</span><br><span>asures.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;___________________________________=</span><br><span>__&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- &amp;nbsp;Financial Reg. Nominat=</span><br><span>ions&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Update on Tax Bills&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Mon --&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nb=</span><br><span>sp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=</span><br><span>=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2=</span><br><span>&amp;nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Survey of the S=</span><br><span>IFI Landscape (Mar 8)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Michigan and the Meaning of Flint &amp;nbs=</span><br><span>p;(Mar 8) Puerto Rico's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Municipal=</span><br><span>Finance Caucus &amp;nbsp;(Mar. 4) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint Bill: &amp;nbsp;Provisions=</span><br><span>&amp;amp; Prospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Top Tax Bills Handicapped &amp;nbsp;(=</span><br><span>Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Do=</span><br></blockquote><span>es DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Below the Radar/Cu=</span><br><span>stoms Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;span&gt;International Tax Status &amp;nbsp;(=</span><br><span>Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax Talk of the Town &amp;=</span><br><span>nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb.2)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;___________________ &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Tomorrow=E2=80=99s M=</span><br><span>ichigan primary election may end up being "yugge" if it seriously opens up t=</span><br><span>he possibility that Trump can put the state in play in November -- =E2=80=9C=</span><br><span>A normal Republican cannot think of bringing in Michigan,=E2=80=9D said Trum=</span><br><span>p -- nothing any other GOP presidential candidate could do, now, or for the p=</span><br><span>ast 25 years. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint crystallizes so many o=</span><br><span>f the issues that give rise to this new tectonic possibility. &amp;nbsp;There ha=</span><br><span>d to be a debate in Flint because there had to be a debate about it... and t=</span><br><span>he Secretary deserves far more credit than she's getting for making sure it h=</span><br><span>appened. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;In Washington, the Senate is read=</span><br><span>ying to vote on a bipartisan package for drinking water aid. &amp;nbsp;It=E2=80=99=</span><br><span>s not a slam dunk, however, as Mike Lee has maintained a hold on the bill, s=</span><br><span>aying political grandstanding is taking the place of policy. &amp;nbsp;More on a=</span><br><span>ll this below. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;span&gt;______________________________________&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint -- Bills and Broad Strok=</span><br><span>es&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Michigan legislature approved in Jan=</span><br><span>uary a $28 million appropriation to provide immediate aid to Flint. &amp;nbsp;So=</span><br><span>me critics maintain that the need to do so demonstrates the sorry condition o=</span><br><span>f the state=E2=80=99s tax policy. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Th=</span><br><span>e tax base in Flint was eroded significantly during the 1980=E2=80=99s and 9=</span><br><span>0=E2=80=99s as industry jobs left and the population fell. &amp;nbsp;To deal wit=</span><br><span>h the resulting fiscal imbalance the Flint city manager was instructed to cu=</span><br><span>t costs =E2=80=93 he did so partly by switching the source of Flint=E2=80=99=</span><br><span>s drinking water. The broad and deep cuts to state and local budgets affecte=</span><br><span>d basic public services most profoundly. &amp;nbsp;Now, as a direct cause of the=</span><br><span>se cuts, the residents of Flint are grappling with an issue no American ever=</span><br><span>considered possible =E2=80=93 they do not have access to fresh drinking wat=</span><br><span>er.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;For all the talk of federal aid in infr=</span><br><span>astructure financing there must be a place made for regular tax payers. &amp;nbs=</span><br><span>p;These people bear a significant portion of direct funding for infrastructu=</span><br><span>re projects both in their states and municipalities. &amp;nbsp;When those tax re=</span><br><span>venues are redirected, or when state spending is cut to the point that basic=</span><br><span>services can=E2=80=99t be provided then taxpayers are right to question wha=</span><br><span>t, in fact, their taxes are paying for. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;Congressional update:&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;At the insistence=</span><br><span>of Democrats, the Flint agreement has been attached to a Senate energy bill=</span><br><span>introduced by Sen. Murkowski, S. 2012, which is next in line in the Senate f=</span><br><span>ollowing the opioid addiction bill. &amp;nbsp;The energy bill will be voted on s=</span><br><span>oon, providing that things moves quickly (not a sure bet, since Dems may wan=</span><br><span>t to vote on certain amendments to the opioid bill). &amp;nbsp;Despite these pot=</span><br><span>ential hang ups, Senate leadership hopes to wrap up the energy bill by the e=</span><br><span>nd of the week =E2=80=93 giving them some breathing room before the Senate a=</span><br><span>djourns for Easter recess by March 21. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Whi=</span><br><span>le Sen. Cruz lifted his hold on the bill last week, Mike Lee has continued t=</span><br><span>o block movement on the legislation. &amp;nbsp;Sen. Lee is claiming that federal=</span><br><span>aid is not necessary to deal with Flint: =E2=80=9CThe state of Michigan has=</span><br><span>an enormous budget surplus this year and a large rainy-day fund, totaling h=</span><br><span>undreds of millions of dollars," the Senator said in a statement.&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint agreement:&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The=</span><br><span>bill provides $250 million to assist the residents of Flint, Michigan and o=</span><br><span>ther American cities experiencing critical problems with their water supplie=</span><br><span>s by increasing funding for Drinking Water Act State Revolving Funds and pro=</span><br><span>vide start-up funding for the new Water Infrastructure Finance and Innovatio=</span><br><span>n Act. &amp;nbsp;It includes:&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbs=</span><br><span>p;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;$100 million for Drinking Water State Revolving Fu=</span><br><span>nds (SRFs) accessible by any state with a drinking water emergency. &amp;nbsp;It=</span><br><span>requires states to submit plans explaining how the money will be spent to a=</span><br><span>ddress the emergency before funding is provided. &amp;nbsp;&amp;nbsp;Funds that rema=</span><br><span>in after 18 months will be distributed to all states under the existing SRF f=</span><br><span>ormula. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nb=</span><br><span>sp;&amp;nbsp;$70 million in funding to back secured loans made under the new Wat=</span><br><span>er Infrastructure Finance and Innovation Act (WIFIA). &amp;nbsp;A federal invest=</span><br><span>ment of $70 million could support secured loans of up to $4.2 billion to add=</span><br><span>ress water and wastewater infrastructure needs across the country, according=</span><br><span>to Sen. Inhofe=E2=80=99s office. &amp;nbsp;All states and all communities with c=</span><br><span>lean water and drinking water infrastructure needs are eligible for this ass=</span><br><span>istance. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;n=</span><br><span>bsp;&amp;nbsp;$50 million for various in authorized health programs for national=</span><br><span>use to address and prevent impacts from exposure to lead. &lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=9CFlint=E2=80=9D is more than Flint&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint is a crisis of governance =E2=80=93 there is a discon=</span><br><span>nect in the relationship between citizens and government, and it bridges eve=</span><br><span>ry demographic. &amp;nbsp;Just as the poor drink water so do the wealthy, and wh=</span><br><span>en a service as basic and fundamental is undermined to the point that an ent=</span><br><span>ire town of nearly a hundred thousands is poisoned by its own government, vo=</span><br><span>ters will express themselves, given the chance. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;Residents, customers, consumers, taxpayers =E2=80=93- citizens at the e=</span><br><span>nd of the day &amp;nbsp;=E2=80=93- are seeing their government in a significantl=</span><br><span>y different light and thus far are voting differently this year accordingly.=</span><br><span>Donald Trump would not likely be able to put Michigan in play without this n=</span><br><span>ew perspective animation politics in Michigan as much as anywhere. &lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;_____________________________________&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>=E2=80=A2 &amp;nbsp;&amp;nbsp;Tues -- &amp;nbsp;Financial Reg. Nominations&lt;/span&gt;&lt;br&gt;&lt;s=</span><br></blockquote><span>pan&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Wed -- &amp;nbsp;SIFIs and the Fed&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- Update on Tax Bills&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;=</span><br><span>nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax Reform&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=</span><br><span>=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2=</span><br><span>&amp;nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Michigan and th=</span><br><span>e Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint Bill:=</span><br><span>&amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Top Tax Bills Ha=</span><br><span>ndicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger than the Budget Battle &amp;nbs=</span><br><span>p;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;B=</span><br><span>elow the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;span&gt;International T=</span><br><span>ax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 1=</span><br><span>0)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax T=</span><br><span>alk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Fe=</span><br><span>b. 2)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Debate My=</span><br><span>ths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Regulating the Regulators &amp;nb=</span><br><span>sp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Age=</span><br><span>nda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp=</span><br><span>;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Fin R=</span><br><span>eg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Year-End Review: Fiscal Policy (=</span><br><span>Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Revie=</span><br><span>w (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;------&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Mike &amp;amp; Co. --=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;The February jobs report came out this morning better than e=</span><br><span>xpected. &amp;nbsp;&amp;nbsp;Once again, the US economy maintained strong job growth=</span><br><span>without wage gains. &amp;nbsp;Wages fell 0.1 percent in February, but 242,000 p=</span><br><span>ositions were added to the economy, marking 72 months of uninterrupted job g=</span><br><span>ains =E2=80=93 the longest streak on record. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Additionally, labor participation rose by 1.5 million Americans since Nov=</span><br><span>ember =E2=80=93 making it the highest it has been in 16 years (62.9 percent o=</span><br><span>f the overall share of Americans).&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The repo=</span><br><span>rt from Puerto Rico is not as sunny. &amp;nbsp;The territory is still waiting on=</span><br><span>a Congressional bill designed to handle the ongoing debt crisis on the isla=</span><br><span>nd. &amp;nbsp;More &amp;nbsp;below.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;______________=</span><br></blockquote><span>________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Puerto Rico=E2=80=99=</span><br><span>s Time Bomb&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Puerto Rican debt crisis ha=</span><br><span>s been an ongoing concern for both Congress, Wall Street and the Obama admin=</span><br><span>istration for some years now =E2=80=93 the territory=E2=80=99s bond ratings h=</span><br><span>ave been steadily dropping into the junk category and fell from A- in 2005 t=</span><br><span>o CCC+ last April. &amp;nbsp;At the heart of the matter is $70 billion in bonds t=</span><br><span>hat Puerto Rico owes and says it cannot pay on. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;Because Puerto Rican bonds are tax exempt in all 50 states and the Dis=</span><br><span>trict of Columbia, making them incredibly popular investments for mutual fun=</span><br><span>ds, pensioners, and big banks. &amp;nbsp;Over 20 percent of mutual funds in the U=</span><br><span>nited States hold at least some Puerto Rican bonds, with $11.3 billion in po=</span><br><span>rtfolio, with a further $15 billion in bonds held by hedge funds. &amp;nbsp;Now t=</span><br><span>hat the territory=E2=80=99s bonds are in the =E2=80=9Cjunk=E2=80=9D category=</span><br><span>, pension funds and insurance firms are unable to hold them any longer.&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The diverse list of bond holders has thrown a w=</span><br><span>rench into the plans of those who would rather allow Puerto Rico to default o=</span><br><span>n its obligations =E2=80=93 something which would require legislative action=</span><br><span>(the territory doesn=E2=80=99t have that luxury, unlike states). &amp;nbsp;If P=</span><br><span>uerto Rico is allowed to renege on its contractual agreements, the argument g=</span><br><span>oes, then it creates a moral hazard for other entities to do the same rather=</span><br><span>than make the tough choices necessary to honor their obligations. &amp;nbsp;The=</span><br><span>fact that many of these bonds are essentially held by ordinary Americans (t=</span><br><span>hrough mutual funds and pensions) makes the argument all that stronger for m=</span><br><span>any representatives. &amp;nbsp;A state hasn=E2=80=99t declared bankruptcy since A=</span><br><span>rkansas did so in 1933.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Moral hazard is inh=</span><br><span>erent in a debt restructuring deal; here, the path for Puerto Rico toward ca=</span><br><span>pital markets after anything of the sort would still be an especially painfu=</span><br><span>l one (see: Argentina). &amp;nbsp;Additionally, there are few serious proposals t=</span><br><span>o grant the island full Chapter 9 status. &amp;nbsp;Most opt instead for some fo=</span><br><span>rm of negotiated haircut agreement combined with extending maturities on the=</span><br><span>bonds; these proposals are likely to succeed, considering Puerto Rico is al=</span><br><span>most certainly unable to maintain its bond payment schedule without a restru=</span><br><span>cturing agreement.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Administration Position&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Testifying before the House Committee on Na=</span><br><span>tural Resources on Feb 25, Treasury official Antonio Weiss warned lawmakers t=</span><br><span>hat Puerto Rico needs =E2=80=9Can immediate solution=E2=80=9D if it=E2=80=99=</span><br><span>s to survive past May 1, when a $470 million bond payment is due. &amp;nbsp;Soon=</span><br><span>after that, on July 1, a $1.9 billion bond payment will come due as well =E2=</span><br><span>=80=93 Puerto Rican representatives have already declared they cannot meet t=</span><br><span>hose payments without assistance.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Weiss lai=</span><br><span>d out the administration=E2=80=99s two-part plan: first the territory must b=</span><br><span>e allowed to restructure its debt obligations, second a fiscal oversight boa=</span><br><span>rd should be established to assist the island with managing its finances. &amp;n=</span><br><span>bsp;Importantly, Weiss stopped short of advocating for bankruptcy protection=</span><br><span>for Puerto Rico and told the committee that =E2=80=9Can advisory board is n=</span><br><span>ot adequate to do the job=E2=80=9D alone. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;House Democrats voiced concern over the financial oversight board, Rep=</span><br><span>. Luis Guti=C3=A9rrez: =E2=80=9CThey=E2=80=99re saying that there=E2=80=99s a=</span><br><span>joint responsibility, but it seems to me that all of the responsibility is b=</span><br><span>eing weighed on the people of Puerto Rico.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;Meanwhile Republicans claimed that any plan to restructure P=</span><br><span>uerto Rican debt was a non-starter; a few hours after the hearing the Republ=</span><br><span>ican Study Committee announced it would oppose any plan including such a pro=</span><br><span>vision. &amp;nbsp;"Changing the rules mid-game would be unfair to Puerto Rico=E2=</span><br><span>=80=99s creditors who entered into these arrangements with agreed upon terms=</span><br><span>and would delegitimize future transactions," said RSC Chairman Bill Flores.=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Policy Options&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;Until recently the two parties have maintained starkly contrasting vie=</span><br><span>ws on how to best deal with Puerto Rico=E2=80=99s debt crisis =E2=80=93 Demo=</span><br><span>crats have pushed for a forced debt restructuring, with some calling for the=</span><br><span>island to be granted Chapter 9 bankruptcy protections, meanwhile Republican=</span><br><span>s called for a financial oversight council to make the tough fiscal decision=</span><br><span>s necessary for Puerto Rico to maintain its debt obligations without renegin=</span><br><span>g on its agreements.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The administration, th=</span><br><span>rough Weiss, has advocated a middle of the road approach. By adopting both p=</span><br><span>roposals and avoiding the further edges of each (no bankruptcy, and no unacc=</span><br><span>ountable board staffed by Wall Streeters), the administration hopes to find c=</span><br><span>ompromise between each group. &amp;nbsp;And it seems like it might work.&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Finding Compromise&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;Recently, however, the conservative stance against debt restructuring has l=</span><br><span>essened =E2=80=93 with some Republicans saying that they could support a PR b=</span><br><span>ill as long as it doesn=E2=80=99t include Chapter 9 bankruptcy. &amp;nbsp;House N=</span><br><span>atural Resources chair Bob Bishop has been working on a bill for Puerto Rico=</span><br><span>that does include some element of debt restructuring, and recently said =E2=</span><br><span>=80=9C=E2=80=9CI=E2=80=99m sure RSC will be satisfied with what we do =E2=80=</span><br><span>=A6 to say that some element of [debt restructuring] could be in there, yeah=</span><br><span>.=E2=80=9D &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;The House is still sticking to its end of March deadline set by Speake=</span><br><span>r Ryan for putting forward a final bill on Puerto Rico on the floor for a vo=</span><br><span>te. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;_____________________________________&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- Municipal Finance Caucus&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2=</span><br><span>&amp;nbsp;&amp;nbsp;Mon -- FY17&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Tues -- 13 D R=</span><br><span>egs&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Wed -- &amp;nbsp;TBD&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;SBC Nominations&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp=</span><br></blockquote><span>;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax Reform&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=</span><br><span>=A2 &amp;nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Michigan and=</span><br><span>the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint Bi=</span><br></blockquote><span>ll: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Top Tax Bills=</span><br><span>Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger than the Budget Battle &amp;=</span><br><span>nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18)=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Internationa=</span><br><span>l Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb=</span><br><span>. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Ta=</span><br><span>x Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp=</span><br><span>;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Debat=</span><br><span>e Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Regulating the Regulators=</span><br><span>&amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 2=</span><br><span>0)&lt;/span&gt;&lt;br&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax=</span><br><span>Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;=</span><br><span>nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Fi=</span><br><span>n Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Year-End Review: Fiscal Polic=</span><br><span>y (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Re=</span><br><span>view (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec=</span><br><span>. 8)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec.=</span><br><span>3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;In half an hour, the B=</span><br><span>LS jobs report for February is due to be released. &amp;nbsp;If you'd like an up=</span><br><span>date or have any questions, please let me know. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;Meanwhile, amid the most fractious campaign in recent history comes an=</span><br><span>initiative in Congress that sounds, well, incongruous with the cacophany. &amp;=</span><br><span>nbsp;A broad and bipartisan group of House members is behind the official la=</span><br><span>unch of a caucus this week dedicated to protecting and expanding the tax exe=</span><br><span>mption enjoyed by municipal debt. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;You have=</span><br><span>to start somewhere and why not with incentives to address the nation's long=</span><br><span>-neglected infrastructure with tax breaks -- about the only kind of stimulus=</span><br><span>and jobs measure that can garner bipartisan support? &amp;nbsp;&amp;nbsp;More on th=</span><br><span>e new Municipal Finance Caucus below. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;_____________________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;A New Caucus&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;On Tuesday, Reps. Randy Hultgren and Dutch Rupper=</span><br><span>sberger announced that they have formed the Municipal Finance Caucus to prot=</span><br><span>ect the tax-exempt status of municipal debt and reexamine the way it is trea=</span><br><span>ted in financial regulations. &amp;nbsp;In 2015, Hultgren and Ruppersberger sent=</span><br><span>a letter (reprinted below) to House leadership opposing the President=E2=80=</span><br><span>=99s proposed 28 percent cap on tax deductions for municipal bonds, signed b=</span><br><span>y over 120 of their colleagues. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Thei=</span><br><span>r announcement coincided with the National Association of State Treasurers=E2=</span><br><span>=80=99 legislative conference in D.C. The same group drafted another letter,=</span><br><span>signed by more than 600 state and local officials, which urges the leaders o=</span><br><span>f the House Ways and Means Committee and the Senate Finance Committee to rej=</span><br><span>ect curbs to the muni exemption. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Who=E2=80=</span><br><span>=99s in it?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Right now just the founding rep=</span><br><span>resentatives have declared their official membership, but it=E2=80=99s fores=</span><br><span>eeable that some of the 120 representatives that signed the letter to House l=</span><br><span>eadership in 2015 will join as well. &amp;nbsp;It=E2=80=99s also seen a s likely=</span><br><span>that some Senators will want to join the caucus, but the founders haven't m=</span><br><span>ade clear if bicameral membership is a priority.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;Is it Bipartisan?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Since 2013 Hultgren=</span><br><span>and Ruppersberger have led bipartisan efforts to draft letters of support f=</span><br><span>or municipal bonds. &amp;nbsp;The signatories to these letters include members f=</span><br><span>rom both sides of the aisle. &amp;nbsp;Rep. Ruppersberger focuses mostly on loca=</span><br><span>l government and is pretty moderate. Rep. Hultgren is a more orthodox conser=</span><br><span>vative Republican. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;What=E2=80=99s the Purp=</span><br><span>ose?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Caucus plans to defend municipal b=</span><br><span>onds=E2=80=99 tax exempt status and advocate for regulatory changes which fa=</span><br><span>vor those bonds. &amp;nbsp;Proposals to limit the tax-exempt status of these bon=</span><br><span>ds have been floated in recent years. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;In a=</span><br><span>ddition to calling for the bonds to maintain their tax preferred status, the=</span><br><span>Caucus will push for the passage of HR 2209, legislation considering munici=</span><br><span>pal bonds as a High Quality Liquid Asset (HQLA) =E2=80=93 a particularly con=</span><br><span>tentious issue because of the disagreement over how flexible these liquidity=</span><br><span>rules should be from a systemic risk perspective. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;Positions Taken to Date&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Caucus=</span><br><span>founders have opposed Obama=E2=80=99s 2015 proposal to cap municipal bond t=</span><br><span>ax exemption at 28 percent. Rep. Hultgren is also a co-sponsor of HR 2209 =E2=</span><br><span>=80=93 the bill to set the liquidity for municipal bond assets at Level 2A (=</span><br><span>see Update, Feb. 18). &amp;nbsp;Hultgren said the liquidity rules are an example=</span><br><span>of how regulators misunderstand municipal bonds, specifically the frequent s=</span><br><span>erial structure of the their issuances.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Man=</span><br><span>y investors flock to municipal bonds for security. But some federal regulato=</span><br><span>rs trying to shore up the banking system aren't convinced the bonds would be=</span><br><span>easy to sell in a crisis. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Division of Opi=</span><br><span>nion&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Division of opinion on HR 2099 falls a=</span><br><span>long unusual lines, with Wall Street, Congress and municipal officials chall=</span><br><span>enging bank regulators' skepticism toward municipal debt. &amp;nbsp;&amp;nbsp;At iss=</span><br><span>ue are new rules aimed at ensuring banks can raise enough cash during a fina=</span><br><span>ncial-market meltdown to fund their operations for 30 days. The requirements=</span><br><span>mean banks have to hold more cash or securities that are easily sellable. &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Regulators don't think it is the place of C=</span><br><span>ongress to second guess how they size up securities. Fed Chairwoman Janet Ye=</span><br><span>llen, at a congressional hearing Feb. 11, said legislation would "interfere w=</span><br><span>ith our supervisory judgments." &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Big banks s=</span><br><span>uch as Citigroup Inc. and Wells Fargo &amp;amp; Co. have sprung into action in l=</span><br><span>obbying Congress, along with municipal leaders who fret the rules will dimin=</span><br><span>ish bank bond-buying which could raise borrowing costs on infrastructure pro=</span><br><span>jects.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Hultgren also said the caucus will w=</span><br><span>ork to update the number of projects that could be financed by qualified sma=</span><br><span>ll issue manufacturing bonds, a type of private-activity bond whose proceeds=</span><br><span>can be used to finance manufacturing facilities for small- and mid-sized ma=</span><br><span>nufacturers. The tax code provisions on small industrial development bonds h=</span><br><span>ave not been changed since the 1980s, he said. Hultgren sponsored a bill las=</span><br><span>t year entitled =E2=80=9CThe Modernizing American Manufacturing Bonds Act,=E2=</span><br><span>=80=9D which was focused on expanding opportunities for qualified small issu=</span><br><span>e manufacturing bonds, particularly by changing the national volume cap set b=</span><br><span>y Congress. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;What can be achieved?&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Caucuses such as this one don't have the best reput=</span><br><span>ation when it comes to getting things done. &amp;nbsp;But rules relating to the l=</span><br><span>iquidity value of capital is one of the few policy &amp;nbsp;areas of any kind w=</span><br><span>here there is bipartisan agreement. &amp;nbsp;Municipal bonds, in particular, ha=</span><br><span>ve a universal appeal because of their direct link to local and state infras=</span><br><span>tructure projects. &amp;nbsp;At the very least, the caucus will spark some discu=</span><br><span>ssion about the best way to both reform existing methods for funding infrast=</span><br><span>ructure investment and find new ways to fund it. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;_________________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Re=</span><br></blockquote><span>cent/Planned Updates&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;=</span><br><span>Thurs -- Municipal Finance Caucus&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -=</span><br><span>- Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Mon -- FY17&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Tues -- 13 D Regs&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;=</span><br><span>&amp;nbsp;Wed -- &amp;nbsp;TBD&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2=</span><br><span>&amp;nbsp;&amp;nbsp;SBC Nominations&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;n=</span><br><span>bsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax R=</span><br><span>eform&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives D=</span><br><span>eal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4) &lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger than the=</span><br><span>Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Infrastructure Finance Update=</span><br><span>&amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds S=</span><br><span>teady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defending D=</span><br><span>odd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (=</span><br><span>Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Regulating=</span><br><span>the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Tax/Healthcare Poli=</span><br><span>cy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Glass-Ste=</span><br></blockquote><span>agall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(=</span><br><span>Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Year-End Revi=</span><br><span>ew: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Mar 2, 2016, at=</span><br><span>9:39 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachasin@gmail.=</span><br><span>com&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;I hope everyone's had a chance to reflect on t=</span><br><span>he magnitude of yesterday's hard fought primary wins -- with gratitude to th=</span><br><span>ose who toiled in the field. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Saturday=</span><br><span>night, the campaign debate turns to Flint, Michigan -- to the town and the i=</span><br><span>ssues it has come to symbolize. &amp;nbsp;&amp;nbsp;The town's water contamination a=</span><br><span>nd related problems finally move center stage. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Congress has moved with uncommon alacrity and bipartisanship in recen=</span><br></blockquote><span>t weeks on legislation to direct funding to address the water issue in Flint=</span><br><span>and elsewhere. &amp;nbsp;&amp;nbsp;Here, we look at the bill's provisions, its fund=</span><br><span>ing steam, and its prospects. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best=</span><br><span>,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>The Flint Bill -- Provisions &amp;amp; Prospects&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br></blockquote><span>uote type=3D"cite"&gt;&lt;span&gt;A bipartisan deal has been reached in the Senate la=</span><br><span>st week to aid the beleaguered city of Flint, Michigan as it tries to remedy=</span><br><span>its drinking water issues. &amp;nbsp;Sen. Inhofe, the lead GOP Senator on the b=</span><br><span>ill, called it =E2=80=9Ccommon-sense," and noted that the spending is alread=</span><br><span>y programmed and involves no supplemental appropriation. &amp;nbsp;&amp;nbsp;The bil=</span><br><span>l may be ready to move forward after Sen. Cruz lifted a hold he had placed o=</span><br><span>n the bill last week. &amp;nbsp;Sen. Mike Lee is still a hold-out. &lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The bill provides $250 million to=</span><br><span>assist the residents of Flint, Michigan and other American cities experienc=</span><br><span>ing critical problems with their water supplies by increasing funding for Dr=</span><br><span>inking Water Act State Revolving Funds and provide start-up funding for the n=</span><br><span>ew Water Infrastructure Finance and Innovation Act. &amp;nbsp;It also provides:&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp=</span><br><span>;$100 million for Drinking Water State Revolving Funds (SRFs) accessible by a=</span><br><span>ny state with a drinking water emergency. &amp;nbsp;It requires states to submit=</span><br><span>plans explaining how the money will be spent to address the emergency befor=</span><br><span>e funding is provided. &amp;nbsp;&amp;nbsp;Funds that remain after 18 months will be=</span><br><span>distributed to all states under the existing SRF formula. &lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;$70 million in f=</span><br><span>unding to back secured loans made under the new Water Infrastructure Finance=</span><br><span>and Innovation Act (WIFIA). &amp;nbsp;A federal investment of $70 million could=</span><br><span>support secured loans of up to $4.2 billion to address water and wastewater=</span><br><span>infrastructure needs across the country, according to Sen. Inhofe=E2=80=99s=</span><br><span>office. &amp;nbsp;All states and all communities with clean water and drinking w=</span><br><span>ater infrastructure needs are eligible for this assistance. &lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;$50 million fo=</span><br><span>r various in authorized health programs for national use to address and prev=</span><br><span>ent impacts from exposure to lead. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Where will the money come from? &amp;nbsp;&amp;nbsp;The package has bee=</span><br><span>n fully paid for -- it redirects appropriations by taking funds from the Adv=</span><br><span>anced Technology Vehicles Manufacturing (ATVM) Fund, which offers loans for a=</span><br><span>uto companies. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does t=</span><br><span>hat matter? &amp;nbsp;&amp;nbsp;Per Sen. Inhofe =E2=80=9C[the ATVM is] a failed prog=</span><br><span>ram that hasn=E2=80=99t been used in more than a year and has only issued fi=</span><br><span>ve loans since 2008."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>More on ATVM: The ATVM program is authorized to award up to $25 billion in l=</span><br></blockquote><span>oans; there is no deadline for completing such loan commitments. Congress fu=</span><br><span>nded the program in 2009, when it appropriated $7.5 billion to cover the sub=</span><br><span>sidy cost for the $25 billion in loans, as well as $10 million for program i=</span><br><span>mplementation. Since the start of the program, DOE has awarded $8.4 billion i=</span><br><span>n loans to five companies. As of January 2015, ATVM has $16.6 billion in rem=</span><br><span>aining loan authority. No new loans have been made since 2011. Two companies=</span><br><span>=E2=80=94 Fisker and the Vehicle Production Group =E2=80=94 were unable to m=</span><br><span>ake payments on their loans, and DOE auctioned the loans off in the fall of 2=</span><br><span>013. Tesla paid off all of its loan in 2013, nine years ahead of schedule. &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Criticisms of ATVM: T=</span><br><span>he unobligated funds remaining for the program have been a point of contenti=</span><br><span>on in recent appropriations debates. The House has voted several times to tr=</span><br><span>ansfer some of the unused appropriation for the ATVM subsidy costs to other p=</span><br><span>urposes. None of these transfers were enacted. Other legislators have sought=</span><br><span>to expand the program. Two recent federal reports call for rescinding the p=</span><br><span>rogram=E2=80=99s unobligated balance: the FY2015 budget resolution reported b=</span><br><span>y the House Budget Committee calls for outright rescission, and an April 201=</span><br><span>4 GAO report recommends Congress consider taking the same step unless DOE ca=</span><br><span>n generate new demand for the program.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;Legislative Strategy: &amp;nbsp;&amp;nbsp;Architects of the bipart=</span><br><span>isan deal put out a hotline request to see if anyone would object to a serie=</span><br><span>s of procedural moves that would split Flint aid off the energy bill (S. 201=</span><br><span>2), attach it to a House bill (H.R. 4470) sponsored by Reps. Dan Kildee and =</span><br><span>Fred Upton, allow voice votes on 30 amendments to the energy bill, and allow=</span><br><span>roll call votes on eight additional amendments. Michigan Sens. Debbie Stabe=</span><br><span>now and Gary Peters said Democrats are on board, but in order to achieve una=</span><br><span>nimous consent, Republicans need to sign on. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;Will it pass? &amp;nbsp;The Flint package and the energ=</span><br><span>y bill amendments would come to a vote only after the Senate gets unanimous c=</span><br><span>onsent to some procedural maneuvers. Lee's hold went unnoticed earlier when G=</span><br><span>OP presidential candidate Sen. Ted Cruz had a hold of his own, which he has n=</span><br><span>ow lifted. The Senate had hoped to hold votes on Flint and end debate on the=</span><br><span>energy bill as early as next week. &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbs=</span><br><span>p;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;n=</span><br><span>bsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;=</span><br><span>&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbs=</span><br><span>p;&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;What=E2=</span><br><span>=80=99s Next? &amp;nbsp;&amp;nbsp;Sen. Stabenow, a key leader on the bill, predicted=</span><br><span>that =E2=80=9Cone way or another=E2=80=9D the package would be voted on in t=</span><br><span>he Senate this week. &amp;nbsp;And while the House hasn't decided what it will d=</span><br><span>o if the Flint bill clears the Senate, Energy and Commerce Committee Chairma=</span><br><span>n Fred Upton said it would move quickly.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;T=</span><br><span>he Obama administration, which declared Flint a federal emergency in January=</span><br><span>freeing up much-needed funds for the distressed city, has not issued an off=</span><br><span>icial stance on the Flint deal. &amp;nbsp;Early in the year the President also m=</span><br><span>ade available to the state of Michigan $80 million from a revolving fund for=</span><br><span>infrastructure repair and improvement. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;A number of important events are scheduled for the month of March, lis=</span><br><span>ted below.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;M=</span><br></blockquote><span>arch 3 -- Flint is supposed to begin its lead service line replacement proje=</span><br><span>ct.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;March 6 -=</span><br><span>- The 7th Democratic debate will take place in the city of Flint, MI. &amp;nbsp;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;March 15 -- &amp;nbsp=</span><br><span>;House Committee on Oversight and Government Reform will hold its next heari=</span><br><span>ng on the Flint crisis. &amp;nbsp;On schedule is testimony on the Safe Drinking W=</span><br><span>ater Act (SDWA) by various policy professionals.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;March 17 -- &amp;nbsp;Hearings resume on SD=</span><br><span>WA oversight, with Michigan Governor Rick Snyder and EPA Administrator Gina M=</span><br><span>cCarthy scheduled to testify.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Upcoming/Re=</span><br><span>cent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Wed --=</span><br><span>Flint &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nb=</span><br><span>sp;&amp;nbsp;Thurs -- Municipal Finance Caucus&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Budget Irresolution=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2=</span><br><span>&amp;nbsp;13 D Regs&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nb=</span><br><span>sp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax Reform&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;=</span><br><span>nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt; &amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2) &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Top Tax Bills Handica=</span><br><span>pped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does DFA Fail on Too Big t=</span><br><span>o Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Bel=</span><br><span>ow the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 1=</span><br><span>0)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budge=</span><br><span>t &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax=</span><br><span>Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, for N=</span><br></blockquote><span>ow &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;De=</span><br><span>bate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(=</span><br><span>Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Pol=</span><br><span>icy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2=</span><br><span>016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/G=</span><br><span>S &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End=</span><br><span>Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 1=</span><br><span>4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Ta=</span><br><span>lks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs=</span><br><span>Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;M=</span><br><span>ike &amp;amp; Co. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;This h=</span><br><span>as been a busy week in Washington especially on the tax front, with more to f=</span><br><span>ollow. &amp;nbsp;We've already seen a number of hearings and developments on the=</span><br><span>most salient current tax bills and related proposals in the last two days, w=</span><br><span>hich are &amp;nbsp;itemized and vetted for viability below.&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Tomorrow, an assessment of which of these, as well as "must-pas=</span><br><span>s" tax items such as the expiring extenders, will make it to Obama's desk by=</span><br><span>year-end and a review of Brookings' panel discussion, "Tax policy in 2016: W=</span><br><span>hat's new and what's next," with Ways and Means Chair Kevin Brady and Senate=</span><br><span>Finance ranking member Ron Wyden. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;__=</span><br><span>____________________________________&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; =E2=</span><br><span>=80=A2 International Tax Reform --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Probabl=</span><br><span>y the most likely tax legislation to pass in 2016, even though it's still ca=</span><br><span>lled unlikely by key policymakers. &amp;nbsp;The two parties will have difficult=</span><br><span>y coming to an agreement on first what to do and then how to do it. &amp;nbsp;Na=</span><br><span>rrower legislation is more likely to succeed than comprehensive reform. &amp;nbs=</span><br><span>p;Most viable bills in this area:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2=</span><br><span>&amp;nbsp;Earnings Stripping -- &amp;nbsp;On the eve of today=E2=80=99s Ways and Me=</span><br><span>ans hearing regarding international tax reform, &amp;nbsp;ranking member Chris V=</span><br><span>an Hollen and senior member Sander Levin offered bills to constrain the prac=</span><br><span>tice whereby foreign parent companies extend large loans to their newly acqu=</span><br><span>ired U.S. partners and take advantage of the tax-deductible status of intere=</span><br><span>st payment arrangement. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2.=</span><br><span>Exit Tax Bills -- &amp;nbsp;Bills seeking to reduce corporate inversions by mak=</span><br><span>ing them too expensive to make business sense are likely to be introduced be=</span><br><span>fore next recess. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Repatr=</span><br><span>iation -- &amp;nbsp;Ryan and Schumer have talked up the idea of introducing legi=</span><br><span>slation to repatriate U.S. multinational profits that are held abroad. &amp;nbsp=</span><br><span>;A compromise will have to be struck between Democrats seeking reduced tax l=</span><br><span>evels for this purpose and Republicans who cite moral hazard. &amp;nbsp;The Obam=</span><br><span>a budget for FY2017 includes a proposal to allow overseas profits to come ho=</span><br><span>me at a special 14 percent trate, and all overseas profits thereafter be tax=</span><br><span>ed at 19 percent. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Broade=</span><br><span>r Corporate Tax Reform &amp;nbsp;-- &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Any successful across the board corporate tax reform would almost have t=</span><br><span>o lower the nominal corporate tax rate of 35 percent. &amp;nbsp;-- the highest i=</span><br><span>n the world. &amp;nbsp;Republicans are adamant that the high rate yields corpora=</span><br><span>te inversions. &amp;nbsp;Ways and Means chair Brady has pointed to the corporate=</span><br><span>rate repeatedly as a sign that the U.S. has a =E2=80=9Cbroken tax code that=</span><br><span>discourages investment and growth.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Brady has not yet released his own reform bill, but an op-ed of his pub=</span><br><span>lished this morning gives an indication of what it will include: &amp;nbsp;=E2=80=</span><br><span>=9CWe must address the real root of the problem =E2=80=93 our broken tax cod=</span><br><span>e that discourages investment and growth =E2=80=A6 Our sky-high 35 percent c=</span><br><span>orporate tax rate bears much of the blame =E2=80=A6 We cannot allow American=</span><br><span>taxpayers to foot the bill for tax revenue grabs in Europe and elsewhere.=E2=</span><br><span>=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Provisions to look for: a lower ov=</span><br><span>erall corporate tax rate, language to address European investigations on U.S=</span><br><span>. businesses dodging taxes abroad. &amp;nbsp;The bill likely won=E2=80=99t inclu=</span><br><span>de language restricting inversions. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;Senate Finance chair Hatch has suggested writing legis=</span><br><span>lation to make dividends tax deductible for corporations, eliminating the so=</span><br><span>-called =E2=80=9Cdouble taxation=E2=80=9D of hitting corporate earnings as w=</span><br><span>ell as dividend incomes from investors. &amp;nbsp;The proposal faces long odds. &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Earned-Income Tax Credit (EITC) -- &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;One tax provisions in the Obama FY17 budget that has=</span><br><span>been muted if not mooted this week is his proposal to expand the EITC for c=</span><br><span>hildless workers and create a $500 =E2=80=9Csecond earner=E2=80=9D tax credi=</span><br><span>t. &amp;nbsp;The cost would be $150 billion over ten years. &lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;During his SOTU, Obama expressed his desire to work with Spe=</span><br><span>aker Ryan on the issue: &amp;nbsp;=E2=80=9CI also know Speaker Ryan has talked a=</span><br><span>bout his interest in tackling poverty. America is about giving everybody wil=</span><br><span>ling to work a chance, a hand up. And I=E2=80=99d welcome a serious discussi=</span><br><span>on about strategies we can all support, like expanding tax cuts for low-inco=</span><br><span>me workers who don't have children.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;The credit is a long-standing darling of both progressives and the GOP e=</span><br><span>stablishment. Ryan and President Obama support extending it to childless wor=</span><br><span>kers. &amp;nbsp;But they face resistance from not just the hard right but from S=</span><br><span>en. Hatch, who say it=E2=80=99s not =E2=80=9Cnecessary=E2=80=9D to expand th=</span><br><span>e break. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Budget (Ir)Resolution&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ.=</span><br><span>Revitalization/Housing&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Top Tax Bills Han=</span><br><span>dicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does DFA Fail on Too B=</span><br><span>ig to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Fe=</span><br></blockquote><span>b. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 B=</span><br><span>udget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br></blockquote><span>=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, f=</span><br><span>or Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nb=</span><br><span>sp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax=</span><br><span>Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Ja=</span><br><span>n. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposa=</span><br><span>ls/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year=</span><br><span>-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(De=</span><br><span>c. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibu=</span><br><span>s Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Cus=</span><br><span>toms Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike and Co.=</span><br><span>--&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The soap opera that is the federal bu=</span><br><span>dget making process saw sone minor prima donna pratfalls this week. &amp;nbsp;No=</span><br><span>thing remotely on the scale of blocking the confirmation of a Supreme Justic=</span><br><span>e. &amp;nbsp;But as Senate Budget's ranking member Sen. Cardin warned at a break=</span><br><span>fast today, you can forget regular order on the budget -- after the Presiden=</span><br><span>t submits a nomination, all comity in the Senate will be gone until Election=</span><br><span>Day. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Details and the latest below. &amp;nbs=</span><br><span>p;Taxes tomorrow (be still your heart, right?). &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana &lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Story in the Senate&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;At the s=</span><br><span>ame DSCC &amp;nbsp;breakfast one month ago, Sen. Merkley announced that, to his s=</span><br><span>urprise, Senate Budget Chair Mike Enzi was going to put out a manager's mark=</span><br><span>for an FY17 budget resolution for Committee markup, for February. &amp;nbsp;Tod=</span><br><span>ay, Enzi withdrew his markup plans, without announcing a reschedule date.&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;To add to the growing problems within the G=</span><br></blockquote><span>OP, the party, led by Senator Mitch McConnell, has declared all-out war on O=</span><br><span>bama=E2=80=99s impending Supreme Court nomination -- an "nomination abominat=</span><br><span>ion" -- making it even more difficult to predict how these budget deliberati=</span><br><span>ons will end. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Histrionics of the House &lt;=</span><br></blockquote><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Even before Obama released his FY2017 bud=</span><br><span>get proposal earlier this month, House Republicans made it a point to emphas=</span><br><span>ize that it was DOA. &amp;nbsp;Now, GOP is running into some dead ends of its ow=</span><br><span>n. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Speaker Ryan announced early on that h=</span><br><span>e intended to pass the budget through regular order this year -- a process t=</span><br><span>hat hasn=E2=80=99t been successfully completed in a generation. &amp;nbsp;Due to=</span><br><span>internal dicisions and outside pressures, House Republicans have changed th=</span><br><span>eir tune. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Yesterday, House Budget a=</span><br><span>nnounced plans for a proposal next month to stick with the spending levels s=</span><br><span>et by last fall=E2=80=99s deal with the White House while also giving member=</span><br><span>s the chance to vote on other bills that would slash government spending. Th=</span><br><span>e compromise is meant to appease hard-right GOP members who vehemently oppos=</span><br><span>ed the Obama-Boehner budget agreement. &amp;nbsp;Per Ryan's office: =E2=80=9CThi=</span><br><span>s proposal enjoys the overwhelming support of the committee members, and the=</span><br><span>chairman looks forward to sharing it with the broader Conference as we cont=</span><br><span>inue moving this process forward.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;The conservative Freedom Caucus so far has supported Speaker Ryan=E2=80=99=</span><br><span>s overtures for cooperation on the budget. &amp;nbsp;But the GOP's hard-right wi=</span><br><span>ng may not remain so understanding of the Speaker=E2=80=99s position, especi=</span><br><span>ally if their credentials are called into question by outside groups with sw=</span><br><span>ay over their base of support. &amp;nbsp;&amp;nbsp;Heritage Action said Monday that t=</span><br><span>he group would oppose any budget blueprint that sticks to the Obama-Boehner d=</span><br><span>eal, which increases spending by about $30 billion.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;Going Forward &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;It won't be an e=</span><br><span>asy road ahead on the budget. &amp;nbsp;&amp;nbsp;The conservative caucus has severa=</span><br><span>l dozen members, which gives it the power to torpedo any budget proposal tha=</span><br><span>t lacks at least some Democratic support. &amp;nbsp;If it decides to back the ne=</span><br><span>w proposal put forth by Chair Tom Price of House Budget, it would be likely f=</span><br><span>or GOP leaders to be able to move forward. &amp;nbsp;Some members have voiced th=</span><br><span>eir willingness to cooperate, but the pull of outside right-wing groups may p=</span><br><span>rove to be too strong.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Meanwhile, Minorit=</span><br><span>y Whip Steny Hoyer said today that any Republican budget strategy that stray=</span><br><span>s from the Obama-Boehner deal would be opposed by House Democrats. &lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;The House Budget plan is to submit the proposal h=</span><br><span>onoring the spending limits agreed to last year, while allowing the hard-rig=</span><br><span>ht GOP wing to vote on other bills which would slash spending, mollifying th=</span><br><span>e more hawkish members. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dearth of L=</span><br><span>egislative Days&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Lengthening the odds agai=</span><br><span>nst Ryan, the House Budget is now working on a delayed schedule. &amp;nbsp;In mi=</span><br><span>d-January, the House Budget Committee announced that it would be releasing i=</span><br><span>ts markup of the White House budget proposal early -=E2=80=93 on February 25=</span><br><span>. However, that has also changed. Yesterday, The Committee announced that it=</span><br><span>was now delaying its markup till sometime in March. &amp;nbsp;The change is cur=</span><br><span>ious for a few reasons. &amp;nbsp;It raises the question of why the House Budget=</span><br><span>Committee said it would have the markup done so early in the first place. M=</span><br><span>oreover, it goes against the House Republicans message of =E2=80=9Cgetting t=</span><br><span>hings done=E2=80=9D during this Congress. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Democrats are jumping on this delay already. &amp;nbsp;Nancy Pelosi said: =E2=80=</span><br><span>=9CYet again, it=E2=80=99s the Speaker=E2=80=99s own broken promises =E2=80=93=</span><br><span>and his own rhetoric =E2=80=93 that are coming back to bite him. &amp;nbsp;Beca=</span><br><span>use while the Speaker pledged an end to dysfunctional House-Republican leade=</span><br><span>rship, all the American people are seeing is more of the same.=E2=80=9D &amp;nbs=</span><br><span>p;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;One thing is looks increasingly likely=</span><br><span>: that the nomination will exert a tidal force on at least the budget delibe=</span><br><span>rations and everything else, through the election. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;Tax Talk&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br></blockquote><span>lockquote type=3D"cite"&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does DFA Fail on Too B=</span><br><span>ig to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Fe=</span><br></blockquote><span>b. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 B=</span><br><span>udget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br></blockquote><span>=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, f=</span><br><span>or Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nb=</span><br><span>sp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax=</span><br><span>Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Ja=</span><br><span>n. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposa=</span><br><span>ls/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year=</span><br><span>-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(De=</span><br><span>c. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibu=</span><br><span>s Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Cus=</span><br><span>toms Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;One week ago, the H=</span><br></blockquote><span>ouse passed a bill that could alter and perhaps ease the way state and local=</span><br><span>infrastructure is financed in the capital markets, when HR.2209, a bill to "=</span><br><span>require the appropriate Federal banking agencies to treat certain municipal o=</span><br><span>bligations as level 2A liquid assets, and for other purposes" was adopted by=</span><br><span>the House with a voice vote. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Thou=</span><br><span>ght the bill has flown below the media radar, it is significant. &amp;nbsp;Munic=</span><br><span>ipal obligations, including bonds, are at the heart of infrastructure invest=</span><br><span>ment in America. &amp;nbsp;And infrastructure investment has been a large focus o=</span><br><span>f this primary. &amp;nbsp;Both Democratic candidates have proposed multi-hundred=</span><br><span>billion dollar infrastructure investment proposals.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Details below...&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Infrast=</span><br><span>ructure is mostly funded at the state or local level through the use of muni=</span><br><span>cipal bonds. &amp;nbsp;Between 2003 and 2012, counties, states, and other locali=</span><br><span>ties invested $3.2 trillion in infrastructure through long-term tax-exempt m=</span><br><span>unicipal bonds, 2.5 times more than the federal investment. &amp;nbsp;&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;The Bill&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HR 2209=</span><br><span>requires federal banking regulators to include municipal bonds under the Li=</span><br><span>quidity Coverage Ratio (LCR). &amp;nbsp;The LCR is designed to ensure that finan=</span><br><span>cial institutions have the necessary assets available to handle a liquidity d=</span><br><span>isruption. &amp;nbsp;Local officials have said that if the new rules aren=E2=80=99=</span><br><span>t changed, it will saddle them with higher borrowing costs by eliminating in=</span><br><span>centives banks have to purchase their bonds. Without bonds, these government=</span><br><span>s will lose a significant source of their funding. &amp;nbsp;Per Indiana State T=</span><br><span>reasurer Kelly Mitchell: =E2=80=9CThis bill helps ensure cash-strapped schoo=</span><br><span>l districts and municipalities will continue to have access to bonds to fina=</span><br><span>nce projects they think are best for their communities.=E2=80=9D &lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;Rep. Luke Messer, an Indiana Republican who wrote t=</span><br><span>he bill: &amp;nbsp;=E2=80=9CPut simply, our bill requires the federal government=</span><br><span>to recognize the obvious, that our municipal bonds are some of the safest i=</span><br><span>nvestments in the world and that we shouldn=E2=80=99t have rules that give p=</span><br><span>referential treatment to corporate bonds or other countries=E2=80=99 bonds o=</span><br><span>ver our own.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;After passing the H=</span><br><span>ouse with unanimous bipartisan support, a companion bill is expected to be i=</span><br><span>ntroduced in the Senate this year. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Municipal Bond Issue&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br></blockquote><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;After the crisis of=</span><br></blockquote><span>2008, federal regulators adopted international banking standards that requi=</span><br><span>re banks to have enough "High-Quality Liquid Assets" to cover their cash out=</span><br><span>flows for 30 days in case of a future financial meltdown. &amp;nbsp;Now, municip=</span><br><span>al bonds are not considered liquid assets and therefore cannot be included u=</span><br><span>nder the &amp;nbsp;LCR. &amp;nbsp;&amp;nbsp;As a result, financial institutions have bee=</span><br><span>n discouraged from holding municipal debt, which means that cash strapped mu=</span><br><span>nicipalities and school districts may eventually be forced to reduce or even=</span><br><span>stop work on projects &amp;nbsp;financed with municipal bonds. &lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Infrastructure Financing -- Alternative Financing&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Tax-exempt bonds: &amp;nbsp;Ex=</span><br><span>emption from federal taxes and many state and local taxes is possible throug=</span><br><span>h the use of municipal bonds. &amp;nbsp;&amp;nbsp;In recent years, with the increasi=</span><br><span>ng use of PPPs, barriers to this tax exemption have arisen. &amp;nbsp;Treasury h=</span><br><span>as reviewed relevant tax rules and based on their findings and have put fort=</span><br><span>h a proposal for an expanded and permanent America Fast Forward Bond Program=</span><br><span>as an alternative to tax-exempt bonds. &amp;nbsp;Based on the successful Build A=</span><br><span>merica Bond program, =E2=80=9Cwould provide an efficient borrowing subsidy t=</span><br><span>o state and local governments while appealing to a broader investor base tha=</span><br><span>n traditional tax-exempt bonds [and] would cover a broad range of projects f=</span><br><span>or which tax-exempt bonds can be used.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt; =E2=80=A2 &amp;nbsp;Obama=E2=80=99s budget proposal: &amp;nbsp;Obama has al=</span><br><span>so put forth a plan to strengthen local and state government infrastructure p=</span><br><span>rojects. His plan relies on a new Federal credit program to support public-p=</span><br><span>rivate partnerships within the Department of the Treasury. It will provide d=</span><br><span>irect loans to US infrastructure projects developed through PPPs. The Obama A=</span><br><span>dministration believes that private investment is crucial for infrastructure=</span><br><span>development moving forward, so there should be more flexibility in regards t=</span><br><span>o what PPP is subject to. In addition to that, President Obama has proposed t=</span><br><span>he taxable, direct-pay America Fast Forward bond program to help finance inf=</span><br><span>rastructure. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;State Infrastructure B=</span><br><span>anks&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Local governments receive financing i=</span><br><span>n a number of ways. &amp;nbsp;Traditional sources such as tax revenues have been=</span><br><span>dwindling and local authorities have been relying on federal government loa=</span><br><span>n programs, public-private partnerships, and State Revolving Funds (SRFs). &amp;=</span><br><span>nbsp;State Infrastructure Banks (SIBs) are a subset of SRFs -- the funds act=</span><br><span>like a bank, because they don=E2=80=99t own the infrastructure asset, but a=</span><br><span>ct as a lender or guarantor to the project sponsor. Per Brookings: &amp;nbsp;=E2=</span><br><span>=80=9CSRFs rely on principal repayments, bonds, interest and fees to re-capi=</span><br><span>talize and replenish the fund as a perpetual source of debt financing.=E2=80=</span><br><span>=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;SIBs generate more investment per dol=</span><br><span>lar than traditional federal and state grant programs. &amp;nbsp;They only exist=</span><br><span>in 33 states and 10 of those SIBs are currently inactive. A large problem m=</span><br><span>ay be compliance with federal regulations. &amp;nbsp;Brookings again: &lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;=E2=80=9CWe found that many SIB officials cite com=</span><br><span>pliance with federal regulations as slowing down the investment process eith=</span><br><span>er because of environmental and contractual requirements or due to the lack o=</span><br><span>f flexibility in projects that are not Title 23 or 49 eligible. For states w=</span><br><span>ith smaller projects, this may be prohibitively costly compared to the advan=</span><br><span>tage of using the low-cost SIB financing.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;Just being called a bank subjects SIBs to regulations that commer=</span><br><span>cial banks are subject to. &amp;nbsp;SIBs are non-for-profit organizations with a=</span><br><span>goal of increasing infrastructure investment, so they don=E2=80=99t quite f=</span><br><span>it into the category of the average bank. &amp;nbsp;SIBs may be more successful o=</span><br><span>utside this classification. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;For or A=</span><br><span>gainst Dodd-Frank&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Before Dodd-Frank, part=</span><br><span>icularly in the case of relatively small municipalities, many underwriters f=</span><br><span>orged long-term relationships with municipalities and would provide financia=</span><br><span>l advice before and after a bond issuance. &amp;nbsp;With Dodd-Frank, that relat=</span><br><span>ionship changed, with a new =E2=80=9Cmunicipal adviser=E2=80=9D category tha=</span><br><span>t must register with the SEC and be regulated by the Municipal Securities Ru=</span><br><span>lemaking Board (MSR). &amp;nbsp;Now, it is widely illegal to provide advice to g=</span><br><span>overnmental entities concerning the issuance of municipal bonds, the use of f=</span><br><span>inancial derivatives, and the investment of the proceeds of a bond issue to,=</span><br><span>or on behalf, of a municipal entity or an obligated person unless the advis=</span><br><span>er is registered with the SEC. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HR 2209 a=</span><br><span>ppears to address a problem within Dodd-Frank, but it is unclear if it vitia=</span><br><span>tes the law materially. &amp;nbsp;At face value, it appears to be more a technic=</span><br><span>al fix. Dodd-Frank expanded regulations for banking institutions, but the en=</span><br><span>tities that fund state and local governments are far unlike the TBTF institu=</span><br><span>tions that Dodd-Frank was meant to regulate. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;Groups like Americans for Financial Reform oppose HR 2209: =E2=</span><br><span>=80=9CWhile we sympathize with the belief that municipal debt was incorrectl=</span><br><span>y treated under the initial LCR rule, we believe that it is inappropriate to=</span><br><span>classify such debt as a Level 2A asset. AFR therefore opposes this bill unl=</span><br><span>ess a more appropriate liquidity classification is used.=E2=80=9D &amp;nbsp;AFR h=</span><br><span>as previously said it supports treating municipal bonds as more liquid and d=</span><br><span>oes not approve the type of classification used in HR 2209, because it goes t=</span><br><span>oo far in its treatment of municipal debt as level 2A liquid assets and spec=</span><br><span>ifically with micromanaging regulators with this kind of detail and they pre=</span><br><span>fer a Level 2B classification. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The bill c=</span><br><span>ould provide relief for smaller institutions, so that they can fund infrastr=</span><br><span>ucture investment more easily. In terms of Dodd-Frank, it is yet to be decid=</span><br><span>ed if it is simply a necessary tweak or a criticism. &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp=</span><br><span>;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nb=</span><br><span>sp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Looking Ahead&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;HR 2209 could end up being an important issue in the national infras=</span><br><span>tructure discussion. &amp;nbsp;It brings up questions about how far a state or l=</span><br><span>ocal government can go before its activities begin to resemble an actual ban=</span><br><span>k. &amp;nbsp;With the growth of PPPs, the private sector is being even more inte=</span><br><span>grated into the process =E2=80=93 should those companies be given tax exempt=</span><br><span>ions, as well? &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2=</span><br><span>&amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Budget (Ir)Resolution&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Ho=</span><br><span>using&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp=</span><br><span>;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does DFA =</span><br><span>Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 1=</span><br><span>1)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Stea=</span><br><span>dy &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Ob=</span><br><span>ama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy=</span><br><span>(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Ho=</span><br><span>lds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare=</span><br><span>Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues=</span><br><span>&amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sande=</span><br><span>rs Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;n=</span><br><span>bsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;=</span><br><span>nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 201=</span><br><span>6 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br></blockquote><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The newly-installed the Minneapolis Feder=</span><br><span>al Reserve Bank and former Special Investigator overseeing the TARP program c=</span><br><span>ame to town yesterday advocating drastic action to head off a financial sect=</span><br><span>or systemic risk crisis, calling for the nation's biggest banks to be broken=</span><br><span>up. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;His speech, del=</span><br><span>ivered at Brookings, got noticed, with lengthy coverage in the NYT, WSJ, and=</span><br><span>WaPo. &amp;nbsp;And perhaps with reason -- the TBTF (too big to fail) issue has=</span><br><span>dogged Congress and the administration for years and is one of the central o=</span><br><span>nes in the Democratic presidential campaign this far. &lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Or maybe it was just a slow news day. &amp;nbsp;You decide...&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br></blockquote><span>lockquote type=3D"cite"&gt;&lt;span&gt;Best, &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A Pe=</span><br><span>culiar Package of Proposals&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Kashkari argu=</span><br></blockquote><span>ed in the alternative that Dodd-Frank needs to be used and/or needs to be re=</span><br><span>formed. &amp;nbsp;He says the law as written does not solve the TBTF problem. &amp;n=</span><br><span>bsp;He also wants regulators to use the yet-untried tools at their disposal u=</span><br><span>nder the law. &amp;nbsp;&amp;nbsp;=E2=80=9CWhile significant progress has been made t=</span><br><span>o strengthen our financial system, I believe the [Dodd-Frank] Act did not go=</span><br><span>far enough." &amp;nbsp;He then laid out three ideas meant to end TBTF once and f=</span><br><span>or all. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;break up l=</span><br></blockquote><span>arge banks into smaller, less connected, less important entities;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;turn what remains of the large bank=</span><br><span>s into public utilities by forcing them to hold so much capital that they ca=</span><br><span>n=E2=80=99t fail; and&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;tax=</span><br></blockquote><span>leverage throughout the financial system "to reduce systemic risks wherever=</span><br><span>they lie."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Break up the B=</span><br><span>anks&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=46rom the perspective of current la=</span><br><span>ws, breaking up big banks is already a policy avenue available to regulators=</span><br><span>. &amp;nbsp;The Federal Reserve, through the Financial Stability Oversight Counc=</span><br><span>il, can elect to take a number of actions to deal with banks that it feels a=</span><br><span>re both systemically important and organized in an unstable way. &amp;nbsp;Secti=</span><br><span>on 121 of the Dodd-Frank Act gives the Board of Governors these powers. &amp;nbs=</span><br><span>p;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;So this first proposal =E2=80=93 break=</span><br><span>up big banks - has been covered here before but just for the sake of argume=</span><br><span>nt... which banks need to be broken up most urgently? &amp;nbsp;Few commentators=</span><br><span>believe there is an imminent threat demanding action. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Unsurprisingly, the Fed doesn=E2=80=99t believe that ba=</span><br><span>nks are so hopeless that they need to be dissolved. &amp;nbsp;That doesn=E2=80=99=</span><br><span>t mean it=E2=80=99s not a possibility under current legislation, however.&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Make Banks =E2=80=9CU=</span><br></blockquote><span>tilities=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The second proposal is t=</span><br><span>o push capital requirements for banks so high that they =E2=80=9Cessentially=</span><br><span>turn into public utilities.=E2=80=9D &amp;nbsp;Kashkari never explains how exac=</span><br><span>tly high capital reserves turn banks into utilities, but that=E2=80=99s for a=</span><br><span>nother time. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;He is voicing his sup=</span><br><span>port for one of the oldest forms of banking regulations that we still use an=</span><br><span>d use far more now in the Dodd-Frank era =E2=80=93 he wants banks to hold mo=</span><br><span>re capital. &amp;nbsp;Supporters of the law may be heartened by his full-throate=</span><br><span>d endorsement of the law on this score. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;Cribbing from Clinton?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>The third proposal was just about lifted out of Secretary Clinton=E2=80=99s=</span><br></blockquote><span>plan to regulate Wall Street =E2=80=93- though the reporting on the speech d=</span><br><span>oesn=E2=80=99t much mention it much. &amp;nbsp;It is reasonable both from a poli=</span><br><span>cy and a political perspective. But he doesn't provide further details about=</span><br><span>his proposal after first outlining it.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;K=</span><br><span>ashkari contra Yellen&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fed Chair Yellen ha=</span><br></blockquote><span>s been an outspoken proponent of existing banking regulations, making it kno=</span><br><span>wn that while the job of regulators is not done yet. we=E2=80=99re in a much=</span><br><span>better situation now than we were before DFA. &amp;nbsp;During her testimony be=</span><br><span>fore House Financial Services, Yellen fielded a question about why she had n=</span><br><span>ot yet broken up big banks, saying: =E2=80=9C=E2=80=A6we [at the Fed]vare us=</span><br><span>ing our powers to make sure that a systemically important institution could f=</span><br><span>ail, and it would not be -- have systemic consequences for the country. We'r=</span><br><span>e doing that in a whole variety of ways.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;The ways Yellen is referring to include enforcing Liquidity C=</span><br><span>overage Ratios, capital reserve requirements, and a rule passed last Novembe=</span><br><span>r forcing the biggest banks to issue long-term debt equal to 18 percent of r=</span><br><span>isk-weighted assets. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Evidently it'=</span><br></blockquote><span>s not enough. &amp;nbsp;But it is nonetheless uncommon for a newly minted Federa=</span><br><span>l Reserve Bank President to taking to task the Chair of the Federal Reserve=E2=</span><br><span>=80=99s Board of Governors.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br></blockquote><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;Municipal Bond Rule&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Budget (Ir)Resolution&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivatives Agr=</span><br><span>eement w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2=</span><br><span>&amp;nbsp;Econ. Revitalization/Housing&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does DFA=</span><br><span>Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 1=</span><br><span>1)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Stea=</span><br><span>dy &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Ob=</span><br><span>ama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy=</span><br><span>(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Ho=</span><br><span>lds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare=</span><br><span>Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues=</span><br><span>&amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sande=</span><br><span>rs Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;n=</span><br><span>bsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;=</span><br><span>nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 201=</span><br><span>6 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br></blockquote><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A natio=</span><br><span>nal holiday, a snowstorm, and a congressional recess stilled DC yesterday an=</span><br><span>d a quiet week is expected. &amp;nbsp;It gives us a chance to have a look at som=</span><br><span>e developments thus far this year that have flown below the radar.&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;Today's item is the one bill on its way to the Pre=</span><br><span>sident=E2=80=99s desk -- the Customs bill -- and the caboose attached to it t=</span><br><span>hat extends the internet tax moratorium permanently &amp;nbsp;and may be the bil=</span><br><span>l's important title... at least until the TPP comes up on the Senate floor. &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;D=</span><br><span>ana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;T=</span><br><span>he Customs Bill: &amp;nbsp;Comity on the Hill&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>The Senate cleared the first overhaul of the Customs and Border Protection (=</span><br></blockquote><span>CBP) agency in more than a decade in a 75-20 vote last Thursday, sending the=</span><br><span>bill to the President and ending months of wrangling over the measure. &amp;nbs=</span><br><span>p;The Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) retool=</span><br><span>s CBP to increase its focus on blocking illegal trade and ensuring that lega=</span><br><span>l trade moves smoothly.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The major facets o=</span><br><span>f this legislation are:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;n=</span><br><span>ew protections on intellectual property rights&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;new tools to fight currency manipu=</span><br><span>lation&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2. a p=</span><br><span>ermanent extension of the Internet Tax Freedom Act&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;Said Senate Finance ranking member Ron Wyden: &amp;nbsp;=E2=80=9CThis b=</span><br><span>ill is about coming down hard on the trade cheats who are ripping off Americ=</span><br><span>an jobs, and the truth is past trade policies were often too old, too slow o=</span><br><span>r too weak for our country to fight back."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Wyden was perhaps the most outspoken Democrat in support of the bill, cont=</span><br><span>inuing his role as a strong backer of free trade legislation. &amp;nbsp;He was a=</span><br><span>key factor in getting Trade Promotion Authority legislation passed through C=</span><br><span>ongress last summer, splitting from some of his colleagues in voicing suppor=</span><br><span>t for that act.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Unusual Coalition&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;27 Democrats, 47 Republicans, and 1 Independent v=</span><br><span>oted affirmatively. &amp;nbsp;Industry groups including the National Retail Fede=</span><br><span>ration, as well as the U.S. Chamber of Commerce were supportive of the legis=</span><br><span>lation. &amp;nbsp;National Association of Manufacturers=E2=80=99 president Jay T=</span><br><span>immons said =E2=80=9Cif senators want to grow manufacturing in the United St=</span><br><span>ates, then they should pass this bill immediately.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Notable =E2=80=9CNay=E2=80=9D votes include Sens. Durbin a=</span><br><span>nd Reid, who both expressed disappointment that the legislation was a =E2=80=</span><br><span>=9Cwatered down=E2=80=9D version of a bill previously passed by the Senate. &amp;=</span><br><span>nbsp;=E2=80=9DI like that [Senate] version, and that strong language on curr=</span><br><span>ency manipulation,=E2=80=9D Durbin said =E2=80=93 that language required Com=</span><br><span>merce to consider =E2=80=9Cundervalued=E2=80=9D currencies to be equivalent t=</span><br><span>o countervailable subsidies. &amp;nbsp;=E2=80=9CThe conference report that=E2=80=</span><br><span>=99s back to us now and before the Senate at this moment is a much different=</span><br><span>bill."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Purpose and Provisions&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;House and Senate negotiators agreed on a final cust=</span><br><span>oms bill in December. &amp;nbsp;&amp;nbsp;The House passed the measure 256-158 but t=</span><br><span>he legislation stalled in the Senate over a provision added in conference th=</span><br><span>at permanently extends a moratorium on Internet access taxes.&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;That provision is perhaps the most reported on section i=</span><br><span>n the bill =E2=80=93 it=E2=80=99s almost certainly the most popular - it app=</span><br><span>lies to localities, states, and the federal government itself. &amp;nbsp;&amp;nbsp;S=</span><br><span>en. Lamar Alexander cited it though as explanation for his =E2=80=9Cnay=E2=80=</span><br><span>=9D vote: "the federal government shouldn't be telling the states what their=</span><br><span>tax structure should be."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Another import=</span><br><span>ant provision, known as the ENFORCE Act, would require the CBP to more aggre=</span><br><span>ssively investigate complaints that companies are evading anti-dumping or co=</span><br><span>untervailing duties on imports by mislabeling or disguising the shipments.&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The bill includes a new Trade Enforcement =</span><br><span>Fund to bring trade cases through the WTO, to investigate the implementation=</span><br><span>of trade requirements by other countries, and to respond to complaints of t=</span><br><span>rade violations. &amp;nbsp;It also creates a nine-member Advisory Committee on I=</span><br><span>nternational Exchange Rate Policy, whose members must be comprised of indivi=</span><br><span>duals from the private sector who are selected by both chambers of Congress a=</span><br><span>nd the President (three members each).&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Cu=</span><br><span>rrency Manipulation&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Currency manipulation=</span><br><span>has been a long-standing concern of American policy-makers and a particular=</span><br><span>ly contentious issue in global trade relations; claims that China has been c=</span><br><span>hronically undervaluing its currency have made the news for a number of year=</span><br><span>s. &amp;nbsp;Advocates for stricter enforcement of currency manipulation provisi=</span><br><span>ons claim that undervalued currencies operate similarly to export subsidies =E2=</span><br><span>=80=93 a prohibited practice within the World Trade Organization.&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;The final bill dropped a Senate provision that woul=</span><br><span>d have required the Commerce Department to treat undervalued currency as an i=</span><br><span>llegal subsidy under U.S. countervailing duty law. &amp;nbsp;This provision woul=</span><br><span>d have opened the door for compensatory tariffs to be levied against goods w=</span><br><span>hich originate from countries which are found to purposely undervalue their c=</span><br><span>urrency in order to boost their exports. The bill does, however, include oth=</span><br><span>er measures that give the Treasury Department new tools to fight currency ma=</span><br><span>nipulation:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;creates a spe=</span><br><span>cial fund for the CBP to ensure trading partners follow the rules and to bri=</span><br><span>ng disputes before the WTO&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;increases funding to the National Intellectual Propert=</span><br><span>y Rights Coordination Center&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;establishes the Commercial Customs Operations Adviso=</span><br><span>ry Committee jointly between CBP and Treasury&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;requires CBP to investigate claims f=</span><br><span>rom other agencies of evasion of anti-dumping or countervailing duties.&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Relation to TPP&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;Sen. Majority Leader McConnell has said that the Senate will not vote o=</span><br><span>n the Trans-Pacific Partnership before the November elections, so it may com=</span><br><span>e as a surprise to see a bill which deals with enforcing trade deals like TP=</span><br><span>P pass both houses of Congress. &amp;nbsp;However this bill=E2=80=99s provisions=</span><br><span>for protecting IP rights, toughening countervailing duties, and tackling cu=</span><br><span>rrency manipulation are a necessary prerequisite for agreements like TPP (or=</span><br><span>the far more nebulous TTIP). &amp;nbsp;The new age of trade agreements &amp;nbsp;wi=</span><br><span>ll deal extensively in issues like intellectual property protection, trade i=</span><br><span>n services, and high-tech product trading; types of commerce which are far m=</span><br><span>ore difficult to regulate compared to the trade of physical goods.&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;So, despite the fact that TPP won=E2=80=99t get a v=</span><br><span>ote until after November (and perhaps not in 2016 at all), and may not pass e=</span><br><span>ven then, the protections set forward in the customs bill are necessary to a=</span><br><span>llow American companies to continue to compete in the global marketplace.&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Price of Passage&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br></blockquote><span>ockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;In order to include the permanent extension of the Internet Tax Fre=</span><br><span>edom Act, McConnell had to promise that a vote would be held this year on th=</span><br><span>e Marketplace Fairness Act. &amp;nbsp;That legislation grants states greater aut=</span><br><span>hority to collect sales taxes from online businesses who sell products withi=</span><br><span>n their borders. &amp;nbsp;While McConnell himself opposes the bill, it was the o=</span><br><span>nly way to get the customs bill (with the tax amendment attached) unstuck.&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Just because McConnell has promised it wil=</span><br><span>l be brought to a vote doesn=E2=80=99t mean it will be a smooth process - th=</span><br><span>e Senate passed the Marketplace Fairness Act in 2013 with 69 votes, and most=</span><br><span>of the lawmakers who voted for it are still in the chamber. &amp;nbsp;Some lawm=</span><br><span>akers like Kelly Ayotte, who is facing a tough reelection campaign this year=</span><br><span>, have vowed to fight tooth-and-nail against it. &amp;nbsp;Despite these detract=</span><br><span>ors in the Senate, the real battle may occur in the House, where two competi=</span><br><span>ng proposals have been brought forward. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Upcoming/Recen=</span><br><span>t Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Municipal Bond R=</span><br><span>ule&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;B=</span><br><span>udget (Ir)Resolution&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br></blockquote><span>lockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 1=</span><br><span>6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;International Tax=</span><br><span>Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;=</span><br><span>(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: D=</span><br><span>eficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulato=</span><br><span>rs &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sa=</span><br><span>nders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 1=</span><br><span>6)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Ta=</span><br><span>ke 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fi=</span><br><span>scal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;=</span><br><span>Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(D=</span><br><span>ec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Upd=</span><br><span>ate &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;On Feb 11, 2016, at 7:47 PM, Dana &amp;lt;&lt;a href=3D"mailto:danachasin@gmail=</span><br><span>.com"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;One thing th=</span><br><span>e two parties agree is that international tax reform is a fiscally necessary=</span><br><span>issue to take up -- that Uncle Sam is leaving hundreds of billions of dolla=</span><br><span>rs on the table overseas annually. &amp;nbsp;&amp;nbsp;But they would also generally=</span><br><span>agree that it is not going to get done this year. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Under current law, those profits are subject only to fede=</span><br><span>ral taxes if they are returned, or repatriated, to the U.S. where they face a=</span><br><span>top rate of 35 percent. &amp;nbsp;Many companies avoid U.S. taxes on those earn=</span><br><span>ings by simply leaving them overseas.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;T=</span><br><span>here is bipartisan activity on the issue in both houses of Congress. Obama h=</span><br><span>as a major reform proposal on the table. &amp;nbsp;So is this the year, in the y=</span><br><span>ear of surprises?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Reforms in t=</span><br><span>he area of international tax deal with both the repatriation of foreign-deri=</span><br><span>ved profits and the issue of corporate inversions. &amp;nbsp;Testifying today, T=</span><br><span>reasury Secretary Jack Lew encouraged the parties in Congress to overcome th=</span><br><span>eir differences on both, which he believes surmountable: &amp;nbsp;=E2=80=9CI ju=</span><br><span>st want to underscore the urgency of dealing with inversions =E2=80=A6 We ca=</span><br><span>n=E2=80=99t wait a year to deal with this,=E2=80=9D Lew said during a Senate=</span><br><span>Finance hearing on the Obama administration=E2=80=99s budget. Congress coul=</span><br><span>d pass narrow legislation on inversions, he said, even if broader reform of t=</span><br><span>he international system is preferable. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Stirrings in the Senate&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br></blockquote><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sen. Schumer a=</span><br><span>lso announced today that he is in contact with Speaker Ryan about coming to a=</span><br><span>n agreement on repatriating corporate profits. &amp;nbsp;They were unable to com=</span><br><span>e to an agreement last year on a similar measure put forth as part of a larg=</span><br><span>er reform effort. &amp;nbsp;Schumer said today: =E2=80=9CWe=E2=80=99re trying to=</span><br><span>bridge over, of course, the divide between existing proposals. &amp;nbsp;I rema=</span><br><span>in at the table ready to work.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;One of the key differences between the parties concerns whether the m=</span><br><span>oney raised from tax reform should be turn into government revenue for more s=</span><br><span>pending, or used to pay down the debt or pass tax cuts. &amp;nbsp;After the Sena=</span><br><span>te Finance hearing yesterday, Chair Hatch said: &amp;nbsp;=E2=80=9CI'm actually w=</span><br><span>orking on international, but I just don't think it's going to get done this y=</span><br><span>ear, because, you know, let's face it, the Democrats are going to want to ra=</span><br><span>ise revenue. &amp;nbsp;They want money to spend.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;At that same hearing, Sen. Shelby pushed a corporate i=</span><br><span>ntegration plan he is developing to eliminate the double taxation of corpora=</span><br><span>te income by providing corporations a dividend deduction. &amp;nbsp;He's awaitin=</span><br><span>g a score by the Joint Committee on Taxation. &amp;nbsp;Dividend deductions are u=</span><br><span>sually quite expensive and regressive, so it will a feat to attract any Demo=</span><br><span>cratic support, especially for him. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Br=</span><br><span>ady's Push &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Meanwhile, Ways and Means C=</span><br><span>hair Kevin Brady has said that he wants a vote this year on moving the Unite=</span><br><span>d States into a territorial tax system, which would permanently exempt US-ba=</span><br><span>sed businesses from paying taxes on income earned abroad. &amp;nbsp;He also want=</span><br><span>s to lower the corporate rate to 20 percent. &amp;nbsp;In the face of these prop=</span><br><span>osals it is difficult to see what sort of compromise can be found between De=</span><br><span>mocrats and Republicans, as the former may be more preoccupied just keeping a=</span><br><span>live the idea that foreign profits should be taxed at all. =E2=80=9CThe goal=</span><br><span>of these reforms are not to generate more spending,=E2=80=9D Brady said. =E2=</span><br><span>=80=9CIt=E2=80=99s to bring back real dollars to be reinvested in the United=</span><br><span>States.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brady has been advoca=</span><br><span>ting for international tax reform since he took over Ways and Means. &amp;nbsp;L=</span><br><span>ast month, he spoke with Sen. Hatch and they were both committed to getting s=</span><br><span>omething done. &amp;nbsp;Senior Republicans believe the country=E2=80=99s intern=</span><br><span>ational tax problems =E2=80=94 inversions and Europe going after revenues fr=</span><br><span>om U.S. companies among them =E2=80=94 are urgent. &amp;nbsp;But Brady strongly h=</span><br><span>inted that all that work would be aimed at setting things up for 2017, when R=</span><br><span>epublicans want =E2=80=9Cpro-growth tax reform under a Republican president.=</span><br><span>=E2=80=9D Perhaps that=E2=80=99s no huge shock, but it does seem to set up s=</span><br><span>omething of a disconnect, given all the talk of urgency.&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;Brady and his supporters have been pushing the idea that A=</span><br><span>merican money is either being taxed by other countries or being taken over b=</span><br><span>y foreign competitors in an inversion -- typically, when an American company=</span><br><span>incorporates abroad so its earnings are no longer subject to American taxes=</span><br><span>. &amp;nbsp;Brady says the result is an erosion of our tax base and a lock-out e=</span><br><span>ffect of American capital being =E2=80=9Ctrapped=E2=80=9D abroad that can be=</span><br><span>solved by fixing our uncompetitive tax code.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Presidential Proposal&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br></blockquote><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Presid=</span><br><span>ent=E2=80=99s FY 2017 budget contains a surprising source of new revenue to p=</span><br><span>ay for its spending programs =E2=80=93 a major piece of international tax po=</span><br><span>licy reform: a six-year, $478 billion public-works program for highway, brid=</span><br><span>ge and transit upgrades, half of it to be financed with a one-time, 14 perce=</span><br><span>nt tax on U.S. companies=E2=80=99 overseas profits and a 19 percent rate the=</span><br><span>reafter. &amp;nbsp;The issue of companies holding foreign profits at locations a=</span><br><span>broad, where they are exempt from taxation until repatriated, has vexed poli=</span><br><span>cy makers on both sides for some time. &amp;nbsp;It=E2=80=99s estimated that the=</span><br><span>se profits add up to nearly $2 trillion. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;The issue of companies holding foreign profits at locations abroad, there=</span><br><span>by exempt from taxation unless those profits are brought home, has vexed pol=</span><br><span>icy makers on both sides for some time. &amp;nbsp;Microsoft Corp., Apple Inc., G=</span><br><span>oogle Inc. and five other tech firms now account for more than a fifth of th=</span><br><span>e $2.10 trillion in profits that U.S. companies are holding overseas. &amp;nbsp;=</span><br><span>In keeping with the idea that Obama=E2=80=99s final budget is =E2=80=9Cmore p=</span><br><span>olitics than policy,=E2=80=9D these revenue-gaining proposals are meant to s=</span><br><span>park discussion more so than be a model for laws going forward. &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Customs Bill&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Mu=</span><br><span>nicipal Bond Rule&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Budget Irresolution &lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's =</span><br><span>FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb=</span><br><span>. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br></blockquote><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds=</span><br><span>Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;n=</span><br><span>bsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on th=</span><br><span>e Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;S=</span><br><span>anders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg P=</span><br><span>roposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Ja=</span><br><span>n. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (=</span><br><span>Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec=</span><br><span>. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br></blockquote><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp=</span><br><span>;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Feb 10,=</span><br><span>2016, at 7:41 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachas=</span><br><span><a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;The Chair of the Federal Reserve went before House Financial Ser=</span><br><span>vices to provide a report on the nation's economic condition, a kind of bi-a=</span><br><span>nnual checkup. No news was made, no fireworks went off and no market mood sw=</span><br><span>ings occurred. &amp;nbsp;As for the Fed's next move, it's wait-and-see a little w=</span><br><span>hile longer. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;We th=</span><br><span>ought it might happen in March, signs pointed to it. &amp;nbsp;Now, the guess is=</span><br><span>June (sound familiar?) &amp;nbsp;For details, don't wait, see below.&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best, &lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;span&gt;----------&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Economic Checkup&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;Fed Chair Yellen testified before House Financial Services this m=</span><br><span>orning for the Federal Reserve=E2=80=99s bi-annual Monetary Policy Report. &amp;=</span><br><span>nbsp;These appearances allow Yellen to explain the Fed=E2=80=99s, actually t=</span><br><span>he Federal Open Market Committee (FOMC)=E2=80=99s, analysis and projections r=</span><br><span>egarding America's economic performance as well as to signal the factors und=</span><br><span>erlying its actions in the months ahead. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;The rate change in December 2015 was the first t=</span><br><span>ime the Fed raised rates since 2006 -- some worry that even a modest increas=</span><br><span>e in rates at this juncture would further slow already limited economic grow=</span><br><span>th after years of uncertainty.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;The Basics&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;The bottom line: the FOMC won=E2=80=99t rollback rates in March and it=E2=</span><br><span>=80=99s not likely to raise them either. &amp;nbsp;The Fed likes what it sees in=</span><br><span>the labor market, wage growth looks strong, and emerging market missteps co=</span><br><span>ntinue to be a threat to the US economy but perhaps not an immediate one. &amp;n=</span><br><span>bsp;The next rate move is almost certain to be an increase but it could wait=</span><br><span>until June or later. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Yellen reiterated much of the FOMC statement from last month: &amp;nbsp;the l=</span><br><span>abor market remains strong, but shows some signs of remaining slack, that th=</span><br><span>e low inflation we have seen is caused by =E2=80=9Ctransitory=E2=80=9D effec=</span><br><span>ts (low energy prices), and that global market uncertainty creates some leve=</span><br><span>l of risk for slow growth at home and abroad. &amp;nbsp;Though Yellen did not ma=</span><br><span>ke a prediction on how long these transitory market effects would last, a nu=</span><br><span>mber of forecasts for oil prices show the dip lasting through 2016.&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Expanding on global growth i=</span><br><span>ssues, Yellen said "These developments, if they prove persistent, could weig=</span><br><span>h on the outlook for economic activity and the labor market, although declin=</span><br><span>es in longer-term interest rates and oil prices could provide some offset," s=</span><br><span>he added: "Foreign economic developments, in particular, pose risks to US ec=</span><br><span>onomic growth." &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Partisan Review&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The GOP is generally critical of "accommo=</span><br><span>dative" (lower) Fed rates. &amp;nbsp;&amp;nbsp;High-net-worth individuals benefit th=</span><br><span>e most from high rates through dividends and interest from savings. &amp;nbsp;Lo=</span><br><span>w rates allow more growth for the middle- and lower-classes at the risk of i=</span><br><span>nflation, tacitly supporting Democrats=E2=80=99 progressive fiscal policy go=</span><br><span>als. &amp;nbsp;Some conservative economists have gone so far as to blame low int=</span><br><span>erest rates pushed by the Fed in the 1990=E2=80=99s for the market meltdown i=</span><br><span>n 2007, claiming that cheap credit was the cause of the overheated housing m=</span><br><span>arket.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Strong Labor Market&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Discussing the labor market in greater detail, Ye=</span><br><span>llen pointed to the cumulative increase in employment since 2010 of 13 milli=</span><br><span>on jobs. &amp;nbsp;The rate in January fell to 4.9 percent, 0.8 points below its=</span><br><span>level one year ago; measures of labor market conditions such as the number o=</span><br><span>f people who are working part-time but want to move to full-time positions a=</span><br><span>nd the number of individuals who want to work but haven=E2=80=99t searched r=</span><br><span>ecently are also decreasing steadily. &amp;nbsp;Regarding these broader labor ma=</span><br><span>rket indicators Yellen testified that =E2=80=9C=E2=80=A6 these measures rema=</span><br><span>in above the levels seen prior to the recession, suggesting that some slack i=</span><br><span>n labor markets remains. Thus, while labor market conditions have improved s=</span><br><span>ubstantially, there is still room for further sustainable improvement."&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Forward Guidance&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;As always, Yellen was careful not to give hints on what the Fed=</span><br><span>is planning to do in future meetings; speaking on the path forward for the =</span><br><span>Fed Funds rate Yellen said =E2=80=9COf course, monetary policy is by no mean=</span><br><span>s on a preset course. The actual path of the federal funds rate will depend o=</span><br><span>n what incoming data tell us about the economic outlook, and we will regular=</span><br><span>ly reassess what level of the federal funds rate is consistent with achievin=</span><br><span>g and maintaining maximum employment and 2 percent inflation.=E2=80=9D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Yellen was asked about the chances of the =</span><br><span>FOMC rolling back the rate hike it announced in December: &amp;nbsp;"I do not ex=</span><br><span>pect the FOMC is going to be soon in the situation where it's necessary to c=</span><br><span>ut rates If the FOMC delayed the start of policy normalization for too long,=</span><br><span>it might have to tighten policy relatively abruptly in the future to keep t=</span><br><span>he economy from overheating and inflation from significantly overshooting it=</span><br><span>s objective. Such an abrupt tightening could increase the risk of pushing th=</span><br><span>e economy into recession." &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Comment on D=</span><br><span>odd-Frank&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;During the Q&amp;amp;A portion of=</span><br><span>her testimony, Yellen was asked about financial regulation, both in terms o=</span><br><span>f breaking up the banks and enforcing the regulations brought on by Dodd-Fra=</span><br><span>nk. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;In response to being asked if th=</span><br><span>e Fed is trying to break up the banks, she responded: "We are using our powe=</span><br><span>rs to make sure that a systemically important institution could fail, and it=</span><br><span>would not have systemic consequences for the country." Her answer was inter=</span><br><span>esting, because she's not outright saying the banks will be broken up or red=</span><br><span>uced, just that the Fed is trying to ensure that even if they did fail, it w=</span><br><span>ouldn't negatively effect the economy.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Yellen was also asked about the burden of new Dodd-Frank regulations on ban=</span><br></blockquote><span>ks. She responded: "For our part, we're focused on doing everything that we c=</span><br><span>onceivably can to minimize and reduce the burden on these banking organizati=</span><br><span>ons. We've been conducting an EGRPRA review to identify potential burdens th=</span><br><span>at our regulations impose." An EGRPRA review is connected to the Economic Gr=</span><br><span>owth and Regulatory Paperwork Reduction Act, which requires regulations impo=</span><br><span>sed on financial institutions to be reviewed by the agencies at least once e=</span><br><span>very 10 years. The purpose is to prevent burdensome regulations that could h=</span><br><span>inder a bank's ability to serve its customers. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;The Bottom Line&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fed watcher=</span><br><span>s make their living by trying to predict what the FOMC will or won=E2=80=99t=</span><br><span>do at their meetings, and on days when Yellen is scheduled to testify befor=</span><br><span>e Congress you can bet that they=E2=80=99re listening intently. &amp;nbsp;While Y=</span><br><span>ellen was careful not to project the Fed=E2=80=99s moves, the general sentim=</span><br><span>ent in the markets is that FOMC won=E2=80=99t be raising rates at its March m=</span><br><span>eeting. &amp;nbsp;The CME Group FedWatch tool, which estimates FOMC rate hikes b=</span><br><span>ased on its futures prices, predicts a 95% probability that the Fed will mai=</span><br><span>ntain its current rate target in March. &amp;nbsp;Some forecasters go even furth=</span><br><span>er -- expecting that the funds rate won=E2=80=99t be raised all year. &lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Traders see the ongoing economic struggles=</span><br><span>of emerging economies, particularly in China, as evidence that the Fed won=E2=</span><br><span>=80=99t continue with its scheduled 4 rate hikes this year. &amp;nbsp;Certainly,=</span><br><span>considering the testimony today that 1) continued emerging market uncertain=</span><br><span>ty can weigh down the US economy and 2) that poor performance in the US econ=</span><br><span>omy would cause the Fed to change course on its rate hike schedule, a link b=</span><br><span>etween poor emerging market performance and fewer Fed rate hikes seems plaus=</span><br><span>ible. &amp;nbsp;Certainly the trading on Fed fund futures indicates that the mar=</span><br><span>kets believe this is the case.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;------=</span><br><span>-&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nb=</span><br><span>sp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defendi=</span><br><span>ng Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 2=</span><br><span>8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Cha=</span><br><span>llenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbs=</span><br><span>p;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Ta=</span><br><span>x Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/G=</span><br><span>S &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year=</span><br><span>-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(=</span><br><span>Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omn=</span><br><span>ibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;On Feb 9, 2016, at 7:42 PM, Dana &amp;lt;&lt;a href=3D"mailto:danachas=</span><br><span><a href="mailto:[email-masked]">[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Today=</span><br><span>, President Obama submitted his eighth and final budget proposal to Congress=</span><br><span>. &amp;nbsp;It tops the $4 trillion mark for the first time. &amp;nbsp;&amp;nbsp;Despite=</span><br><span>the historical tendency for lame duck presidential budgets to be treated as=</span><br><span>scrap paper -- this one won't even be accorded the courtesy of a hearing in=</span><br><span>House Budget -- there are a few noteworthy proposals and initiatives which,=</span><br><span>if nothing else, are likely to generate discussion on the Hill and off. &amp;nb=</span><br><span>sp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;That=E2=80=99s the real purpose of this budget -- to=</span><br><span>help frame the debate in 2016 about where America is headed what the nation=</span><br><span>'s priorities should be. &amp;nbsp;A number of the proposals in this budget reso=</span><br><span>nate with issues and themes already being debated. &amp;nbsp;Candidates in parti=</span><br><span>cular seeking to emphasize support for or opposition to the President have a=</span><br><span>new set of proposals at their disposal. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;What is new an=</span><br><span>d noteworthy in the White House budget and what's next for it? &amp;nbsp;Detail b=</span><br><span>elow. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Special thanks to those of you in NH tonight. &amp;nb=</span><br><span>sp;Fingers crossed and stay tuned this way: &amp;nbsp;&amp;nbsp;&lt;a href=3D"<a href="http://po=">http://po=</a></span><br><span><a href="http://liti.co/20n5W2w">liti.co/20n5W2w</a>"&gt;<a href="http://politi.co/20n5W2w">http://politi.co/20n5W2w</a>&lt;/a&gt; &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;---------&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Obam=</span><br><span>a Administration put forth a myriad of budget proposals revolving around a v=</span><br><span>ariety of issues. &amp;nbsp;Below are thoughts on some of the most significant o=</span><br><span>f these from a fiscal and financial regulatory perspective: &lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;=E2=80=A2 &amp;nbsp;$10/Barrel Transportation Tax&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A per=</span><br><span>ennial favorite of Democrats has made a return in the Obama budget: &amp;nbsp;a $=</span><br><span>10.25 per barrel tax on oil, $319 billion in revenue from which will go towa=</span><br><span>rd funding =E2=80=9Ca 21st Century Clean Transportation Plan to upgrade the n=</span><br><span>ation=E2=80=99s transportation system, improve resilience and reduce emissio=</span><br><span>ns." &amp;nbsp;The proposed tax is a simplified version of =E2=80=9Ccarbon taxat=</span><br><span>ion=E2=80=9D policies, which aim to tax energy producers and oil companies b=</span><br><span>ased on the level of pollution they produce; =E2=80=9Ccap and trade=E2=80=9D=</span><br><span>was a similar policy idea but with more complicated implementation. &amp;nbsp;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;The tax will be phased in over five years and levied agai=</span><br><span>nst oil companies, with the revenue to help fund clean energy initiatives li=</span><br><span>ke expanding high-speed rail systems and also to increase national infrastru=</span><br><span>cture spending. &amp;nbsp;The appeal of this flat-tax on oil is its simplicity =E2=</span><br><span>=80=93- there is nothing complicated about charging oil companies $10.25 per=</span><br><span>barrel of oil, meaning there=E2=80=99s no way for them to shirk the charge.=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Supporting the tax would lend candidates some environme=</span><br><span>ntal bonafides, but might be seen as a backdoor &amp;nbsp;tax on the middle-clas=</span><br><span>s. Though paid for by oil companies, the &amp;nbsp;price is expected to be passe=</span><br><span>d along to consumers through higher prices. &amp;nbsp;The tax is expected to inc=</span><br><span>rease the price of gasoline by 25 cents per gallon.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;Funding Fin. Reg. Like it Matters &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama propo=</span><br><span>ses to double the budget for Wall Street regulators SEC and CFTC over ten ye=</span><br><span>ars, beginning with an 11 percent increase for SEC and 32 percent for CFTC i=</span><br><span>n 2017. &amp;nbsp;Clinton has a lot to like in this particular section =E2=80=93=</span><br><span>she=E2=80=99s the only candidate who has defended Dodd-Frank and is campaig=</span><br><span>ning on proposals to strengthen current regulations, including through great=</span><br><span>er budgets for regulatory agencies. &amp;nbsp;Leaders for both regulators have c=</span><br><span>omplained that their responsibilities far outstrip their budget. &lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;The proposal is more realistic than the oil tax, although not nece=</span><br><span>ssarily something that will definitely be enacted. &amp;nbsp;The SEC has called f=</span><br><span>or increased funding recently. &amp;nbsp;SEC chairman Mary Jo White asked at a H=</span><br><span>ouse Financial Services Committee hearing in November for $1.8 billion in fu=</span><br><span>nding for fiscal 2017. &amp;nbsp;In a time when Republicans are looking to reduc=</span><br><span>e regulatory burdens against banks, an increase in regulators=E2=80=99 budge=</span><br><span>ts highlights the difference in priorities on Wall Street. &lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;=E2=80=A2 &amp;nbsp;Boosting R and D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The budget increase=</span><br><span>s R&amp;amp;D funding by four percent for a total of $152 billion in 2017; among=</span><br><span>changes are a doubling of clean energy research and funding a $1 billion ca=</span><br><span>ncer =E2=80=9CMoonshot=E2=80=9D research program aimed at eliminating the di=</span><br><span>sease. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Apprenticeship Training Fu=</span><br><span>nd&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;The budget establishes a $2 billion mandatory Apprent=</span><br><span>iceship Training Fund =E2=80=93 meant to double the number of apprenticeship=</span><br><span>s across the United States. &amp;nbsp;Only HRC has talked about the need for inc=</span><br><span>reasing the number of apprenticeships in the country during the election, fa=</span><br><span>voring a tax-credit policy rather than direct funding. &lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Congressional Prospects&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama=E2=80=99s proposal is not o=</span><br><span>nly a prelude to battle. &amp;nbsp;Lawmakers and the administration will have to=</span><br><span>strike some sort of deal to keep the government running when the current fi=</span><br><span>scal year ends on Sept. 30 =E2=80=94 most likely a continuing resolution to k=</span><br><span>eep the lights on through the election and early into 2017. &amp;nbsp;In a sign t=</span><br><span>hat Obama isn=E2=80=99t looking for a knock-down spending fight this year, t=</span><br><span>he president=E2=80=99s proposal abides by the discretionary caps for fiscal 2=</span><br><span>017 set by last year=E2=80=99s bipartisan budget deal. &lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Congressional leadership may have a fight on its hands even without Obama ma=</span><br><span>king waves =E2=80=93 if the Freedom Caucus membership decides to make its di=</span><br><span>spleasure on the budget known then it could cause rancor amongst the GOP. &amp;n=</span><br><span>bsp;In a year when the party is desperate to project an image of capable lea=</span><br><span>dership, in part by passing a complete budget for the first time since 1997,=</span><br><span>a blow-up between Ryan and the back-benchers would amount to nothing less t=</span><br><span>han catastrophe.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;At a more granular level, Obama=E2=80=99=</span><br><span>s blueprint is a grab-bag of Democratic priorities. &amp;nbsp;The administration=</span><br><span>is once again calling for expanding early education in his 2017 budget, ask=</span><br><span>ing for more pre-K grants, a child care expansion and a small boost to Head S=</span><br><span>tart. &amp;nbsp;The budget boosts spending for Obamacare Medicaid expansion by $=</span><br><span>2.6 billion over a decade, designed to be an enticement to the 19 holdout st=</span><br><span>ates that have yet to take effect.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Republicans and the B=</span><br><span>udget&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Republicans have a differ=</span><br><span>ent plan for the budget this year, naturally. &amp;nbsp;Speaker Ryan has stated t=</span><br><span>hat he intends to pass the budget and all 12 appropriations through the hous=</span><br><span>e -- a feat that hasn't been accomplished in two decades.&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;The Republicans have a different plan for the budget t=</span><br><span>his year, naturally. &amp;nbsp;Speaker Ryan has stated that he intends to pass t=</span><br><span>he budget and all 12 appropriations through the house - a feat that hasn't b=</span><br><span>een accomplished since 1997. &amp;nbsp;Although Ryan and the GOP House leadershi=</span><br><span>p hope to gain the faith of the American people back by bringing about the r=</span><br><span>eturn of regular order, they face a tight calendar and the political implica=</span><br><span>tions of an election year -- not to mention internal opposition in the form o=</span><br><span>f the Freedom Caucus. &amp;nbsp;Should the back-benchers feel their concerns are=</span><br><span>n=E2=80=99t being adequately addressed, they may try to disrupt the passage o=</span><br><span>f appropriations bills. &amp;nbsp;The care and feeding of these members on budge=</span><br><span>t matters may be turn out to be one of the toughest challenges Ryan will fac=</span><br><span>e this year.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;-----------------&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Tal=</span><br><span>k of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;=</span><br><span>(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the=</span><br><span>Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Poli=</span><br><span>cy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br></blockquote><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy I=</span><br><span>ssues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan.=</span><br><span>7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin=</span><br><span>. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Om=</span><br><span>nibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (D=</span><br><span>ec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;=</span><br><span>nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Feb 3, 2016, at=</span><br><span>7:09 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachasin@gmail.=</span><br><span>com&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co.=</span><br><span>--&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Upbeat tax talk is as common t=</span><br><span>his time of year as predictions that this year the Cubs will win the World S=</span><br><span>eries this fall. &amp;nbsp;The word is that Messrs. Ryan and McConnell want to r=</span><br><span>un a smooth, efficient, maybe even a productive ship this year on the theory=</span><br><span>that voters will reward the GOP in November and that they will forget the r=</span><br><span>ecord of the last seven years. &amp;nbsp;The Speaker and the President have had a=</span><br><span>recent meeting and mini-meeting of the minds on taxes. &amp;nbsp;That might cre=</span><br><span>ate the right climate for passage of broad tax reform. &lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;But really the gravitational pull is n=</span><br><span>ot toward gravitas, but away from the center, away from the Hill itself. &amp;nb=</span><br><span>sp;The GOP presidential nominee might very well have to run against any bipa=</span><br><span>rtisan ("Washington") compromise on tax policy, making for an embarrassing i=</span><br><span>ntraparty policy conflict at the time the leadership most needs to project u=</span><br><span>nity.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Amid the turbulence of the b=</span><br><span>roader campaign, where do the various tax discussions in the Hill stand, wha=</span><br><span>t bills night come up for votes, is there anything that might pass?&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;________________________________&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Forms of Reform under Discussion&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 Comprehensi=</span><br><span>ve -- Defined as involving a bipartisan trade-off between lowering taxes and=</span><br><span>broadening the base; closing exemptions, deductions, credits, etc. &amp;nbsp;Bo=</span><br><span>th Democratic candidates have outlined plans to reduce loopholes, such as th=</span><br><span>e "Romney loophole" and the "Bermuda loophole," which allow very rich Americ=</span><br><span>ans to avoid paying their fair share. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 Corporate -- Many of the issues with the corp=</span><br><span>orate tax system could be addressed through international tax reform, becaus=</span><br><span>e so many companies earn capital abroad. However, corporate tax reform at ho=</span><br><span>me deals with issues like taxing dividends and leveling the playing field be=</span><br><span>tween small and large businesses. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;=E2=80=A2 International - Deals with foreign earnings of A=</span><br><span>merican firms abroad. Specifically, current international tax reform aims at=</span><br><span>preventing inversions and coming up with a more successful way to tax forei=</span><br><span>gn capital earned by American companies, as well as finding ways to encourag=</span><br><span>e companies to move profits home from abroad.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Forums for Tax Reform&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 Ways &amp;amp; Means: &amp;nbsp;Kevin Br=</span><br><span>ady became Chair of the Committee in November 2015. He reportedly hopes to h=</span><br><span>ave an international tax reform proposal out of Ways and Means this year. &amp;n=</span><br><span>bsp;He says he wants to allow American companies to bring their foreign prof=</span><br><span>its back and invest at home and to lower the corporate tax rate to less than=</span><br><span>20 percent.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brady=</span><br><span>gave the opening statement at a hearing on =E2=80=9CReaching America=E2=80=99=</span><br><span>s Potential.=E2=80=9D &amp;nbsp;&amp;nbsp;For what it's worth, he laid out six goals=</span><br><span>for his committee in the coming months -- and they are ambitious:&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=C2=B7 Tax reforms to boost investment and=</span><br><span>job creation;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=C2=</span><br><span>=B7 Welfare reforms to help more people join the workforce and achieve the A=</span><br><span>merican dream.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=C2=</span><br><span>=B7 Health reforms to truly make health care more affordable and accessible;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=C2=B7 Trade ex=</span><br><span>pansion to open more foreign markets to American goods and services;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=C2=B7 Entitlement refor=</span><br><span>ms to strengthen Medicare and Social Security for the long haul and; &amp;nbsp;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=C2=B7 Government=</span><br></blockquote><span>reforms to boost efficiency and effectiveness instead of stifling jobs and h=</span><br><span>igher wages.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brady=E2=80=99s state=</span><br><span>ment that tax reform will come up in the coming weeks, coupled with Ryan=E2=80=</span><br><span>=99s recent visit with Obama (specifically to find areas of cooperation), ma=</span><br><span>y indicate a broad-based reform package making its way forward in 2016. &amp;nbs=</span><br><span>p;Another interesting bullet point is trade expansion, despite McConnell=E2=80=</span><br><span>=99s promise that TPP won=E2=80=99t be voted on before November. &lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; =E2=80=A2 Senate Finance: &amp;=</span><br><span>nbsp;&amp;nbsp;The Senate Finance Committee has its focus set on bipartisan work=</span><br><span>ing groups designed to produce tax reform on multiple levels -- individual, c=</span><br><span>orporate, and international. However, there have been many challenges and st=</span><br><span>alemates along the way because of the stringent partisanship currently ailin=</span><br><span>g the Senate. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Th=</span><br><span>is election has been defined, more so than others, by the massively diverse s=</span><br><span>et of tax policies proposed by each candidates =E2=80=93 from flat taxes, ca=</span><br><span>pital gains reforms, financial transaction taxes and more. &amp;nbsp;Sen. Hatch,=</span><br><span>Chair of Finance, has already called for reform efforts in 2016, targeting i=</span><br><span>nternational corporate rates specifically =E2=80=93 but it=E2=80=99s possibl=</span><br><span>e that Brady is trying to shift him and others toward more ambitious proposa=</span><br><span>ls. &amp;nbsp;Any high profile move Ryan makes here will likely be a controlling=</span><br><span>factor on tax policy. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;=E2=80=A2 Between the Branches -- Speaker Ryan and Pres. Obama m=</span><br><span>et yesterday to discuss a variety of issues, one of which was related to the=</span><br><span>Earned Income Tax Credit. &amp;nbsp;Both hope to expand the credit to include l=</span><br><span>ow-earning workers who DON'T have children. &amp;nbsp;It's unclear how successfu=</span><br><span>l their cooperation will be, but at the very least, they share a common goal=</span><br><span>. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Politico portr=</span><br><span>ayed the meeting as campaign kabuki: =E2=80=9CRather than cut any deals with=</span><br><span>Obama, Ryan=E2=80=99s hoping to spend 2016 developing what he=E2=80=99s cal=</span><br><span>ling a detailed GOP agenda on poverty, taxes, health care and other issues h=</span><br><span>e=E2=80=99s hoping will factor into the presidential campaign and provide a b=</span><br><span>lueprint for House Republicans as they grapple with a new president next yea=</span><br><span>r.=E2=80=9D &amp;nbsp;It=E2=80=99s not surprising to see this given the pressure=</span><br><span>this election will put on the new Speaker. &amp;nbsp;He needs to set a strong f=</span><br><span>oundation for his own future, and helping Obama score a tax touchdown on him=</span><br><span>is not on the top of his list of objectives. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;During a statement before he met with Obama, Ryan said =E2=</span><br><span>=80=9CWe will take our conservative principles and we will apply those conse=</span><br><span>rvative principles to the problems of the day to offer our fellow citizens s=</span><br><span>olutions to the problems in their daily lives =E2=80=A6. These are not going=</span><br><span>to be things that we will be able to accomplish with this president still i=</span><br><span>n the White House. It is an agenda for what we will do next year with a Repu=</span><br><span>blican president to get our country back on track. This is what 2016=E2=80=99=</span><br><span>s all about. It=E2=80=99s going to be a year of ideas.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Political Realities&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;William Gale and Aaron Krupkin, researcher=</span><br><span>s at Brookings, recently wrote a paper titled =E2=80=9CMajor Tax Issues in 2=</span><br><span>016;=E2=80=9D Keeping in mind both the current political climate and the pro=</span><br><span>bable environment for legislation in 2016, the two researchers write that =E2=</span><br><span>=80=9CComprehensive tax reform is easy to talk about, but hard to do. The pu=</span><br><span>rsuit of sweeping tax simplification is a noble goal, but quixotic.=E2=80=9D=</span><br><span>&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;At the end of the day 2016 i=</span><br><span>s an election year and any legislative proposals that come forward during it=</span><br><span>will reflect that. &amp;nbsp;There are many exciting possibilities for tax refo=</span><br><span>rm in 2016, but there is also no reason to think that the political gridlock=</span><br><span>that has defined Washington for so long will ease up enough while both part=</span><br><span>ies vie for control of the country by drawing contests. &lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----------------&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Defici=</span><br><span>t/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the R=</span><br><span>egulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the=</span><br><span>Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TB=</span><br><span>TF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sande=</span><br><span>rs' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Re=</span><br><span>view: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 1=</span><br><span>4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibu=</span><br><span>s Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br></blockquote><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(De=</span><br><span>c. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;On Feb 2, 2016, at 11:59 PM, Dana &amp;lt;&lt;a href=</span><br><span>=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Congratulations, team. &amp;nbsp;Last night's narrow win in Iowa provided a big m=</span><br><span>oral victory and took some of the win out of the challenger's sails. &amp;nbsp;I=</span><br><span>t also means that, for at least several weeks, the Democratic nomination con=</span><br><span>test will continue apace. &amp;nbsp;And it is likely that Wall Street regulation=</span><br><span>will likely remain one the &amp;nbsp;campaign's central issues. &amp;nbsp;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;At the heart of this debate is the Dodd-Frank Act (DFA). &amp;nbsp;=</span><br><span>&amp;nbsp;Public opinion is still influenced in the main by memories of the 2008=</span><br><span>financial crisis and the recession that followed, so the candidates' views o=</span><br><span>n DFA get special attention. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below, we re-exami=</span><br><span>ne these views and try to clear up the misconceptions that make it hard for v=</span><br><span>oters to identify the candidate best able to defend the protections that DFA=</span><br><span>provides millions of American consumers, investors, and workers. &lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br></blockquote><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;-----------=</span><br><span>------&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;The assertion that DFA doesn=E2=80=99t do enoug=</span><br><span>h to rein in Wall Street has become some sort of progressive shibboleth that=</span><br><span>as misleading as it is short-sighted and self-defeating. &amp;nbsp;&amp;nbsp;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Polling shows the American public believes strong financial reg=</span><br><span>ulation is critically needed (74 percent of Democrats, 56 percent Independen=</span><br><span>ts, 46 percent Republicans, 64 percent all voters). &amp;nbsp;Polling has also s=</span><br><span>hown that 66 percent of Americans are either =E2=80=9Cnot very familiar=E2=80=</span><br><span>=9D with or have =E2=80=9Cnever heard of=E2=80=9D Dodd-Frank. &amp;nbsp;It is di=</span><br><span>fficult for reasonable dialogue to be conducted in an environment made up of=</span><br><span>strong support for regulatory reform on one hand and a lack of knowledge of=</span><br><span>what is in DFA on the other.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Any public debate on DFA=</span><br><span>is hampered by the complexity of the issues involved. &amp;nbsp;Additionally, t=</span><br><span>here is a perception that it has failed in its objectives. &amp;nbsp;Beyond the f=</span><br><span>act that the law isn=E2=80=99t even fully implemented, major financial insti=</span><br><span>tutions have already begun restructuring in ways that indicate the law is wo=</span><br><span>rking properly. &amp;nbsp;&amp;nbsp;But how many voters know this?&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Has Dodd-Frank Worked?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Great Recession and th=</span><br><span>e resulting Dodd-Frank Act changed the trajectory of the financial industry.=</span><br><span>&amp;nbsp;The law isn't perfect but it is having a stabilizing effect. &amp;nbsp;So=</span><br><span>me of the biggest firms on Wall Street -- MetLife, CitiGroup, General Electr=</span><br><span>ic -- have shrunk since the law was enacted and as a direct result of its re=</span><br><span>gulations. &amp;nbsp;Those that haven't shrunk are under even more pressure to b=</span><br><span>reak up or reduce their size now than they were before Dodd-Frank.&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br></blockquote><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;The candidates are split concerning whether or not DFA is an fu=</span><br><span>ll and sufficient model for regulating financial markets. &amp;nbsp;While HRC wa=</span><br><span>nts to preserve and protect the progress made by DFA while bolstering certai=</span><br><span>n parts of the law, while Sanders considers the law to be well intentioned y=</span><br><span>et deeply flawed. &amp;nbsp;However, questions should be raised about judging th=</span><br><span>e DFA=E2=80=99s efficacy right now - each candidate is forming an opinion on=</span><br><span>the act despite the fact that DFA hasn=E2=80=99t even reached maturity yet -=</span><br><span>only about 70 percent of DFA provisions have been implemented. &amp;nbsp;Beyond=</span><br><span>the implementation gap is the issue that the results of financial reform ca=</span><br><span>nnot be seen overnight. &amp;nbsp;A piece of legislation as large and multifacet=</span><br><span>ed as Dodd-Frank might take a decade to ripen. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Even a=</span><br><span>s the greatest effects of DFA remain to be see, recent events indicate that D=</span><br><span>FA is working as it was intended to. &amp;nbsp;Any candidate who claims that DFA=</span><br><span>is in need of major overhaul needs to answer this question: What pressing n=</span><br><span>eed is there to overturn a law that has, to this point, largely accomplished=</span><br><span>its overarching objectives? &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Candidates and Dodd=</span><br><span>-Frank&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;The candidates in this year's primaries have gi=</span><br><span>ven voters two choices: stick with Dodd-Frank and add some tweaks or repeal i=</span><br><span>t/change it fundamentally. There is only one candidate in the former group -=</span><br><span>HRC. Every other candidate, including Bernie Sanders, intends to greatly ch=</span><br><span>ange Dodd-Frank, or get rid of it all together, if elected. With that choice=</span><br><span>in mind, it is necessary to remember how monumental Dodd-Frank was and the p=</span><br><span>olitical climate that it was passed in - one with a Democratic majority in b=</span><br><span>oth houses. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;DFA enjoyed widespread suppor=</span><br><span>t in the years immediately following its passage; Clinton needs to ring the a=</span><br><span>larm bells that her opponents intend to kill off an effective tool for regul=</span><br><span>ating Wall Street for the sake of trying out unproven strategies that are bu=</span><br><span>ilt more on ideology than policy. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obviously, mo=</span><br><span>st Republican candidates would prefer to do away with Dodd-Frank completely a=</span><br><span>s it is greatly disliked by their biggest supporters. Bernie Sanders propose=</span><br><span>s something similar to Glass-Steagall, but also wants to create a list of th=</span><br><span>e banks that are "too-big-too-fail" and "break them up." He outlined his int=</span><br><span>entions in legislation he proposed to Congress back in May 2015. Bloomberg P=</span><br><span>olitics notes, "Similar to legislation he introduced in previous years, when=</span><br><span>Democrats controlled the U.S. Senate, the bill has little chance of advanci=</span><br><span>ng." &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;So voters can decide on strengthening a la=</span><br><span>w that is already working to reign in Wall Street's risks or abandoning it f=</span><br><span>or either less regulation or poorly aimed regulations. Considering the histo=</span><br><span>rical record of these other reform ideas, how can voters be expected to take=</span><br><span>those suggestions seriously?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Jan 28, 2016, at 8:19 PM, D=</span><br><span>ana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt;=</span><br><span>wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Ordinarily this time of year, you wou=</span><br><span>ld perhaps start to spot leaks or hear scuttlebutt about the president's spe=</span><br><span>nding plans for the next fiscal year, in anticipation of the statutory Febru=</span><br><span>ary White House budget rollout. &amp;nbsp;No one noticed when the administration=</span><br><span>announced it would miss next week's legal budget submission deadline. &amp;nbsp=</span><br><span>;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;With FY17 toplines set in t=</span><br><span>he omnibus bill passed last month, you may hear little in the Beltway about t=</span><br><span>he budget anytime soon (although the Chair did announce plans yesterday to i=</span><br><span>ntroduce a budget resolution this year, to the surprise of many, including M=</span><br><span>ajority Leader McConnell). &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;E=</span><br><span>ven on the campaign trail in the Granite State, with its famously flinty tax=</span><br><span>-o-phobes, nary a word is heard about the debt, let alone defaulting it, not=</span><br><span>this year. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The federal=</span><br><span>budget, deficits, and the debt have not yet gotten much air play yet this c=</span><br><span>ampaign. &amp;nbsp;But if we lifted up the car hood, what would we see? &amp;nbsp;Wh=</span><br><span>at is our medium-long term fiscal outlook, what would the impact on it of th=</span><br><span>e candidates' proposals be, and what fiscal issues are most likely to arise i=</span><br><span>n the primary debate?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;--------------&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;C=</span><br><span>BO 10-year Deficit Projections&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;T=</span><br><span>he CBO reported last week that it expects the annual deficit to grow from it=</span><br><span>s current $450 billion to $1.3 trillion by 2016. Candidates issuing calls fo=</span><br><span>r increased spending, against this backdrop, may be called to account. &amp;nbsp=</span><br><span>;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Perhaps in recognition of t=</span><br><span>his, both HRC and Sen. Sanders have recently and admirably detailed how they=</span><br><span>would use executive actions to enact parts of their revenue packages withou=</span><br><span>t Congressional support. &amp;nbsp;Both have proposed extensive new spending pla=</span><br><span>ns as part of their primary platform. however, it may be time for the candid=</span><br><span>ates to get serious about the fiscal viability of these plans from a fiscal p=</span><br><span>erspective.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Clinton -- Fiscal=</span><br></blockquote><span>Stimulus?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC has proposed a t=</span><br><span>ax package that will raise federal revenue by $500 billion over ten years, t=</span><br><span>o be used for a $350 billion =E2=80=9CCollege Compact=E2=80=9D plan, for tax=</span><br><span>deductions on health care spending, and to fund an ambitious infrastructure=</span><br><span>investment package. &amp;nbsp;Her spending plans are split between those which p=</span><br><span>rovide short-term economic stimulus and those which are aimed at providing l=</span><br><span>onger-term boost. &amp;nbsp;Her $250 billion plan to increase infrastructure inv=</span><br><span>estment in the country =E2=80=93 paid for by reviving the =E2=80=9CBuild Ame=</span><br><span>rica Bonds=E2=80=9D program and federal revenue -- &amp;nbsp;works on two fronts=</span><br><span>.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;First, hiring middle-class w=</span><br><span>orkers in construction, engineering, and the trades the plan puts more money=</span><br><span>into the hands of people who tend to spend that money quickly. &amp;nbsp;Second=</span><br><span>, improving roads, bridges, and tunnels in America the plan will make future=</span><br><span>transport of goods more reliable, speedy, and safe, all calculated to spur e=</span><br><span>conomic growth. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The =E2=80=9C=</span><br><span>College Compact=E2=80=9D aims to forgive student loans, lower college tuitio=</span><br><span>n, and make community colleges tuition-free. &amp;nbsp;By removing the burden of=</span><br><span>debt from young graduates, HRC hopes to free those people up to begin consu=</span><br><span>ming at a higher rate. &amp;nbsp;The current home-ownership rate for young Ameri=</span><br><span>cans is distressingly low largely due to their debt burden after college, HR=</span><br><span>C would rather young Americans take debt on in an equity-building purchase t=</span><br><span>han spend thirty years repaying their college degree. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;The Sanders Health Care Tax Bill&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders=E2=80=99 $14 trillion spending pl=</span><br><span>an, his =E2=80=9CMedicare for All=E2=80=9D proposal, would require the singl=</span><br><span>e largest tax hike in the nation=E2=80=99s history, bringing taxes on the we=</span><br><span>althy to levels not seen since Reagan. &amp;nbsp;These taxes, the size of which a=</span><br><span>lready makes them non-starters even among Democrats in Congress, are to be u=</span><br><span>sed to enact single-payer healthcare legislation =E2=80=93 legislation which=</span><br><span>didn=E2=80=99t even get a vote during a Democratic majority in Obama=E2=80=99=</span><br><span>s first term.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders must ho=</span><br><span>pe that the economic efficiency of a single-payer health care plan, which fi=</span><br><span>nds its savings in the reduced role of middle-men and insurance companies, w=</span><br><span>ill result in savings passed onto Americans =E2=80=93 Americans who will, in=</span><br><span>their turn, spend those savings in the economy at large.&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;He has found political success in his promise to ma=</span><br><span>ke colleges and universities in America tuition-free. &amp;nbsp;The impetus behi=</span><br><span>nd this plan is similar to that of Mrs. Clinton =E2=80=93 students with lowe=</span><br><span>r debt burdens are going to spend a greater portion of their income on food a=</span><br><span>nd entertainment, as well as on equity-investments like homes.&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Campaign Impact&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bl=</span><br></blockquote><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;The CBO=E2=80=99s federal budget projections released las=</span><br><span>t week indicated that the annual federal deficit will grow to $1.3 trillion b=</span><br><span>y 2026. &amp;nbsp;It=E2=80=99s unlikely that the CBO report will be linked to th=</span><br><span>e candidates' spending plans in any meaningful way. &amp;nbsp;And to be fair, ea=</span><br><span>ch candidate has put forward proposals to raise revenue equivalent to the co=</span><br><span>sts of their plans (or at least to the extent that their own analyses can be=</span><br><span>trusted); this is often a rarity amongst politicians running for office and=</span><br><span>they should be applauded for doing so. &amp;nbsp;Because of this, both campaign=</span><br><span>s can claim that their proposals will not raise the federal deficit =E2=80=93=</span><br><span>it=E2=80=99s unlikely that those claims will remain unchallenged in the fut=</span><br><span>ure.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Foundation Analysis&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Recent analyses by the Tax Foun=</span><br><span>dation, a group which uses dynamic scoring methods to judge revenue, have fo=</span><br><span>und that Clinton=E2=80=99s plan will reduce economic output by 1 percent ove=</span><br><span>r a decade, while Sanders=E2=80=99 proposals will lower GDP by a staggering 9=</span><br><span>.5 percent. &amp;nbsp;Dynamic scoring is a controversial method of analyzing rev=</span><br><span>enue estimates =E2=80=93 it takes into account the supposed deleterious effe=</span><br><span>cts caused by tax increases and attempts to adjust growth the reflect those e=</span><br><span>ffects.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A CRS report published in=</span><br><span>2014, however, stated that =E2=80=9CA review of statistical evidence sugges=</span><br><span>ts that both labor supply and savings and investment are relatively insensit=</span><br><span>ive to tax rates.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;W=</span><br><span>hile each campaign will be inclined to argue that any analysis which mention=</span><br><span>s economic contraction as an effect of their plans is based on improper econ=</span><br><span>omics, it may not matter to voters whether they=E2=80=99re right or not. &amp;nb=</span><br><span>sp;American voters have always been tax-averse but will pay for what they wa=</span><br><span>nt. &amp;nbsp;Maybe the biggest yet-unanswered question: do they want another ov=</span><br><span>erhaul of he nation's healthcare enough to pay a new record in tax increases=</span><br><span>?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 2=</span><br><span>8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Hold=</span><br><span>s Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 2=</span><br><span>1)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax=</span><br><span>/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, T=</span><br><span>ake 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br></blockquote><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Pro=</span><br><span>posals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. R=</span><br></blockquote><span>eg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks=</span><br><span>(Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Custo=</span><br><span>ms Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(De=</span><br><span>c. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Jan 28, 2016, at 10:12 A=</span><br><span>M, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;=</span><br><span>&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dear Mike &amp;amp;=</span><br><span>Co.,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Pre-primary endorseme=</span><br><span>nts from Party leaders in tight contests are rare and sometimes understated.=</span><br><span>&amp;nbsp;To wit, President Obama remarks this week that HRC is as prepared to b=</span><br><span>e president as any non-Vice President as anyone: =E2=80=9CI think that what H=</span><br><span>illary presents is a recognition that translating values into governance and=</span><br><span>delivering the goods is ultimately the job of politics, making a real-life d=</span><br><span>ifference to people in their day-to-day lives.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Yesterday, House Democratic leader Nancy starti=</span><br><span>ng doing precisely that, assessing the centerpiece of Sanders' platform: &amp;nb=</span><br><span>sp;"He's talking about a single-payer, and that's not going to happen. I mea=</span><br><span>n, does anybody in this room think that we're going to be discussing a singl=</span><br><span>e-payer? ... We're not running on any platform of raising taxes." &lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br></blockquote><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Far from the cauldron of Congress and t=</span><br><span>he icy campaign trail was an announcement by the Fed with implications for t=</span><br><span>he overall economy and for the election year ahead. &amp;nbsp;More on the Fed's s=</span><br><span>tatement and its implications below. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Please let me know if you have any questions or issue coverage r=</span><br><span>equests. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote 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type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;-----------------&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;The Fed's Statement&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fe=</span><br><span>deral Open Market Committee (FOMC) of the Federal Reserve decided yesterday n=</span><br><span>ot to raise rates in January. &amp;nbsp;Last month, the Fed voted to raise inter=</span><br><span>est rates for the first time in nine years, setting its rate target between 0=</span><br><span>.25 and 0.5 percent. &amp;nbsp;Today's statement reaffirmed this decision, notin=</span><br><span>g that recent market turbulence had not stayed the Fed from its plan to cont=</span><br><span>inue =E2=80=9Conly gradual increases in the federal funds rate.=E2=80=9D &amp;nb=</span><br><span>sp;Speculation and hope are rife that the FOMC will hold off raising rates i=</span><br><span>n March and wait until June. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;span&gt;But the statement today indicated no change in the Fed=E2=80=99s pl=</span><br><span>an for previously outlined &amp;nbsp;rate increases, four 0.25 percent increases=</span><br><span>this year, with total increases of one percent this year and next. &amp;nbsp;Ho=</span><br><span>wever, the FOMC is largely comprised of dovish voters, who may change tack i=</span><br><span>f current market corrections continue. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;Market Reaction&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br></blockquote><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;The Dow Jones Industrial average is down from 17.759 on Decembe=</span><br><span>r 16 to 15,951 today; the S&amp;amp;P 500 has declined from 2,073 to 1,879 over t=</span><br><span>he same period. &amp;nbsp;The &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fed however expressed con=</span><br><span>fidence in continuing economic growth, calling low inflation and the decline=</span><br><span>in energy prices =E2=80=9Ctransitory=E2=80=9D and predicting 2 percent infl=</span><br><span>ation in the medium-term as energy prices rise again. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;In a nod to beleaguered investors, the Com=</span><br><span>mittee wrote that it =E2=80=9C... is closely monitoring global economic and f=</span><br><span>inancial developments and is assessing their implications for the labor mark=</span><br><span>et and inflation, and for the balance of risks to the outlook.=E2=80=9D &amp;nbs=</span><br><span>p;So the Fed has, unusually, acknowledged the global scope of its deliberati=</span><br><span>ons. &amp;nbsp;FOMC also indicated a focus on =E2=80=9Clabor market indicators [=</span><br><span>which] will continue to strengthen."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;For now, though inflation is running just 0.4 percent, well below i=</span><br><span>ts two percent target, the Fed has not disavowed its plan to raise rates fou=</span><br><span>r times this year. &amp;nbsp;&amp;nbsp;This cannot be welcome to global equine marke=</span><br><span>ts. &amp;nbsp;Domestic and global capital markets have already lost roughly ten p=</span><br><span>ercent since the December rate hike. &amp;nbsp;Fed policy may be having a decele=</span><br><span>rating effect on growth and so could be a marginal drag on Democratic prospe=</span><br><span>cts. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;New FOMC Member=</span><br><span>s&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The FOMC is made up of ro=</span><br><span>tating board of seven voting members taken from Board of Governors members a=</span><br><span>s well as regional bank officials; these members rotate on an annual basis a=</span><br><span>t the first meeting of each year. &amp;nbsp;The 2016 committee members are liste=</span><br><span>d below (identified as"hawks," those favoring tight monetary policy or "dove=</span><br><span>s," supporting more accommodative policy). &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Janet L. Yellen, Board of Governors, Chair (dove)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;William C. Dudley, New York, Vice Chair (dove)&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;Lael Brainard, Board of Governors (dove)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;James=</span><br><span>Bullard, St. Louis (hawk)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Stanley Fischer, Board of=</span><br><span>Governors (hawk)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Esther L. George, Kansas City (hawk)&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Loretta J. Mester, Cleveland (hawk)&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Jerome H. Powell, Board of Governors (swing)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br></blockquote><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Eric Rosengren, Boston (dove)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Daniel K. Tarullo, Boa=</span><br><span>rd of Governors (dove)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;New m=</span><br><span>embers this year are James Bullard, Esther George, Loretta Mester, and Eric R=</span><br><span>osengren. &amp;nbsp;The FOMC consists of 12 voting members, with two nominees aw=</span><br><span>aiting Senate confirmation. &amp;nbsp;A shift in the balance of power between ha=</span><br><span>wks and doves may occur but the doves hold a slim majority for now.&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Code Breaking&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;Fed watchers have made an art form out of reading b=</span><br><span>etween the lines of these policy releases, even the most benign of which can=</span><br><span>cause huge swings in markets (the Dow dropped over 200 points in the wake o=</span><br><span>f today=E2=80=99s release). &amp;nbsp;Fed statements are famously difficult to p=</span><br><span>arse but one point was unmistakable: the Fed is keeping a close eye on the l=</span><br><span>abor market -- employment and participation rates, wages, etc. -- as a leadi=</span><br><span>ng indicator for inflation and overall growth perhaps more than any other va=</span><br><span>riable. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Campaign Con=</span><br><span>sequences&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;None of the candi=</span><br></blockquote><span>dates has commented on today=E2=80=99s release, not surprisingly, but the po=</span><br><span>licy may draw ire from some on the right, who oppose fiat rate-targeting (th=</span><br><span>ough it took no action today) and the left, where lowering rather than raisi=</span><br><span>ng rate is preferred (except for holders of fixed income securities). &amp;nbsp;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sen. &amp;nbsp;Sanders, true to=</span><br><span>his reputation of standing far outside the Democratic fold, has long oppose=</span><br><span>d the Fed for being too involved with the bankers they are meant to be regul=</span><br><span>ating. &amp;nbsp;Sanders has called for reform measures at the Fed, including pr=</span><br><span>ohibiting people serving on bank boards from serving on the Fed at the same t=</span><br><span>ime. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed was confident=</span><br><span>that economic growth would continue on its steady pace, indicating strength=</span><br><span>in labor markets and downplaying both financial market reactions and diving=</span><br><span>commodities prices. &amp;nbsp;The FOMC sets monetary policy on a long-term basi=</span><br><span>s; the full ramifications of their decisions aren=E2=80=99t felt until month=</span><br><span>s or years out, so any contention that the economy is strong enough to handl=</span><br><span>e higher interest rates is essentially an endorsement of macroeconomic polic=</span><br><span>y in the last few years. Democratic candidates will need to hammer this poin=</span><br><span>t home - but it is yet to be seen if voters will understand the message that=</span><br><span>Democratic policies are responsible for the sunny outlook for the American e=</span><br><span>conomy, especially compared to Western Europe, Latin America, and Asia.&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Below is the first sentence of the FOMC statement from ye=</span><br><span>sterday, edited to reflect changes from last month's statement:&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;For immediate releaserelease at 2:00 p.=</span><br><span>m. EST&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Information received since the Federal Open M=</span><br><span>arket Committee met in OctoDecember suggests that economic activity has been=</span><br><span>expanding at a moderate pacelabor market conditions improved further even a=</span><br><span>s economic growth slowed late last year. Household spending and business fix=</span><br><span>ed investment have been increasing at solidmoderate rates in recent months, a=</span><br><span>nd the housing sector has improved further; however, net exports have been s=</span><br><span>oft and inventory investment slowed. A range of recent labor market indicato=</span><br><span>rs, including ongoistrong job gains and declining unemployment, shows furthe=</span><br><span>r improvement and confirms that underutilization of labor resources has dimi=</span><br><span>nished appreciably since early this year, points to some additional decline i=</span><br><span>n underutilization of labor resources. Inflation has continued to run below t=</span><br><span>he Committee's 2 percent longer-run objective, partly reflecting declines in=</span><br><span>energy prices and in prices of non-energy imports. Market-based measures of=</span><br><span>inflation compensation remain low; somedeclined further; survey-based measu=</span><br><span>res of longer-term inflation expectations have edged downare little changed,=</span><br><span>on balance, in recent months.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote 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type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Rec=</span><br><span>ent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds R=</span><br><span>ates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenge=</span><br><span>d &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan.=</span><br><span>21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass=</span><br><span>-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Is=</span><br><span>sues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan.=</span><br><span>7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: =</span><br><span>Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnib=</span><br><span>us Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br></blockquote><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;n=</span><br><span>bsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Co=</span><br><span>ntent-Type: multipart/alternative;&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp; &amp;nbsp;boundary=3D=</span><br><span>Apple-Mail-E202A4BC-AC43-4A6A-AD3D-BF2A48B02BE0&lt;/span&gt;&lt;br&gt;&lt;span&gt;Subject: Upd=</span><br><span>ate -- Michigan and the Meaning&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;html&amp;gt;&amp;lt;head&amp;gt;&amp;lt;=</span><br><span>meta http-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3D=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;utf-8"&amp;gt;&amp;lt;/head&amp;gt;&amp;lt;body dir=3D3D"auto"&amp;gt;&amp;lt;div&amp;gt;=</span><br><span>&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equ=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;iv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" content=3D3=</span><br><span>D"text/html; 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cha=</span><br><span>rset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;g=</span><br><span>t;&amp;lt;meta http-equ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv=3D3D"content-type" content=3D3D"te=</span><br><span>xt/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D=</span><br></blockquote><span>3D"content-type" content=3D3D"text/html; charset=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;span&gt;utf-8"&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 0=</span><br><span>.0001pt;"&amp;gt;&amp;lt;span styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;Mike &amp;amp;amp; Co. --&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 0.0001pt;"=</span><br></blockquote><span>&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 255,=</span><br><span>255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;p class=3D3D"M=</span><br><span>so=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Normal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;It may fe=</span><br><span>el like Michigan-morning-af=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ter but by dint of Mississipp=</span><br><span>i, HRC padded her delegate lead last night.&amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p;&amp;lt=</span><br><span>;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;On Monday, &amp;amp;nbsp;President Obama h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eld a financ=</span><br><span>ial regulatory summit in the Roosevelt Room of the White House. &amp;amp;=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;nbsp;Joined by the heads of the Fed, the FDIC, and the CFPB, Ob=</span><br><span>ama declared =3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3D9CI want to dispel the notion t=</span><br><span>hat exists both on the left and on the ri=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ght that someho=</span><br><span>w, after the crisis, nothing happened," he said. =3DE2=3D80=3D9CWe d=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;id not just rebuild this, we rebuilt it better, and we=3DE2=3D80=</span><br><span>=3D99ve rebuilt it=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; stronger.=3DE2=3D80=3D9D&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0i=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;n 12pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255,=</span><br></blockquote><span>0);"&amp;gt;He has a s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;trong argument. &amp;amp;nbsp;You can't p=</span><br><span>rove a negative and we will never know how m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;any financia=</span><br><span>l crises were averted by Dodd-Frank. &amp;amp;nbsp;But metrics bear out t=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;he view that Americans and the economy have less to fear today f=</span><br><span>rom the Syst=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;emically Significant Financial Institutions (=</span><br><span>SIFIs) than at any time since t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he turn of the millennium=</span><br><span>. &amp;amp;nbsp;&amp;lt;/span&amp;gt;More on the regulatory circumstances=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; of SIFIs below. &amp;amp;nbsp;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D=</span><br><span>3D"margin: 0in 0in 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;2pt;"&amp;gt;&amp;lt;span style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;Best,&amp;lt;o:p&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"mar=</span><br><span>gin: 0in 0in 12pt;"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Dana&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/p=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal"=</span><br><span>style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;b style=3D3D"backgrou=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;------------------=</span><br></blockquote><span>-----------------------=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;--------&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p=</span><br><span>class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;b st=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;A Survey o=</span><br><span>f the SIFI Lands=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cape&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;le=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The landscape for=</span><br><span>the eight=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; SIFIs today -- Bank of America, Bank of New Y=</span><br><span>ork Mellon, Citigroup, Goldman=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Sachs, JP Morgan Chase, M=</span><br><span>organ Stanley, State Street, and Wells Fargo --&amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp=</span><br><span>;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;is worth=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; looking at from various perspectives. &amp;amp;=</span><br><span>nbsp;Presidential candidates on both=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; sides have made a p=</span><br><span>oint of criticizing =3DE2=3D80=3D9Ctoo big to fail=3DE2=3D80=3D9D ba=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;nks, court proceedings are challenging regulators powers', membe=</span><br><span>rs of Congre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss are debating whether to loosen Dodd-Frank=</span><br><span>Act SIFI rules, and a current Fe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;deral Reserve Bank pres=</span><br><span>ident has spoken out in favor of breaking them up. &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>bsp;But do SIFIs pose the same threat they did in 2008?&amp;lt;/span&amp;gt;&amp;lt;/p&amp;=</span><br></blockquote><span>gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" style=3D3D"margin: 0in 0i=</span><br><span>n 12pt;"&amp;gt;&amp;lt;b style=3D3D"background-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255,=</span><br><span>255, 255, 0);"&amp;gt;&amp;lt;u&amp;gt;The Power of DFA&amp;lt;/u&amp;gt;&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt=</span><br><span>;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" style=3D=</span><br><span>3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; rgba(255, 255, 255, 0);"&amp;gt;President Obama hasn=3DE2=3D80=3D99t r=</span><br><span>emained silent in t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he face of criticism of DFA. &amp;amp;nbs=</span><br><span>p;After the Monday&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;summit,&amp;lt;/span&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;&amp;amp;nbsp;Obama said that critics are sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;reading =3D=</span><br><span>E2=3D80=3D9Ccynicism=3DE2=3D80=3D9D: &amp;amp;nbsp;=3DE2=3D80=3D9CIt is popular =3D=</span><br><span>E2=3D80=3DA6 t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o suggest that the crisis happened and not=</span><br><span>hing changed.&amp;amp;nbsp; That is not tr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ue.=3DE2=3D80=3D9D=</span><br><span>&amp;amp;nbsp; The President cited&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"bac=</span><br><span>kground=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(255, 255, 255, 0);"&amp;gt;the 14 millio=</span><br><span>n new jobs created since his i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nauguration, proof, he sai=</span><br><span>d, that sensible regulations on Wall Street don=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D8=</span><br><span>0=3D99t stifle business growth.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNo=</span><br><span>rmal" style=3D3D"ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin: 0in 0in 12pt;"&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;Two=</span><br><span>major business news stories from 2015 support the President=3DE2=3D80=3D99s=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; view: &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"margin: 0in 0in 12pt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;lt;b s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7 &amp;amp;nbsp=</span><br><span>; Gene=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ral Electric&amp;lt;/b&amp;gt;&amp;lt;span style=3D3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&amp;gt; c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ontinued to sell=</span><br><span>off GE Capital, its $42 billion investment arm, hoping to e=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;xit SIFI status in Q1 2016 as a result of its divestiture. &amp;amp;nbsp;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" style=3D=</span><br><span>3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;b style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d=</span><br><span>-color: rgba(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7 &amp;amp;nbsp; MetLife&amp;lt;/b&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 255, 255,=</span><br><span>0);"&amp;gt; has been embroiled in a legal batt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le with the =</span><br><span>Financial Stability Oversight Council (FSOC) since the regulator=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt; announced in December 2014 that the insurance company was considere=</span><br><span>d a SIFI=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; =3DE2=3D80=3D93 arguments were heard in New Yor=</span><br><span>k this January.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; cl=</span><br><span>ass=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;70 percen=</span><br><span>t of DFA has been implemented by=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the regulatory agencies=</span><br><span>since it was passed. &amp;amp;nbsp; Despite the constraints=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>on SIFIs, they have by and large adapted well, making&amp;amp;nbsp;adjustments f=</span><br><span>ast=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;er, earlier and more successfully=3DE2=3D80=3D9D than=</span><br><span>their overseas counterparts.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;s=</span><br><span>pa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;=3DC2=3DB7 &amp;amp;nbsp; SIFIs no=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;w hold much more capi=</span><br><span>tal now than they did before the crisis =3DE2=3D80=3D93 to th=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;e tune of $700 billion in additional capital, twice the amount prior to=</span><br><span>it&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" st=</span><br><span>yle=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7 &amp;amp;nbsp; SIFIs hav=</span><br><span>e three t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;imes the liquidity they had before the crisis&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l" style=3D=</span><br><span>3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;=3DC2=3DB7 &amp;amp;nbsp; Derivatives clear=</span><br><span>ing houses force transparenc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y on SIFI speculation, preve=</span><br><span>nting over-exposure&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNor=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;mal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"backg=</span><br><span>round-color: rgba(2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 255, 0);"&amp;gt;=3DC2=3DB7 &amp;amp=</span><br><span>;nbsp; &amp;amp;nbsp;SIFIs now post collateral on their de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ri=</span><br><span>vatives trades&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"=</span><br><span>margin: 0in 0in 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;2pt;"&amp;gt;&amp;lt;span style=3D3D"background=</span><br><span>-color: rgba(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7 &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>; &amp;amp;nbsp;SIFIs submit to rigorous stress testing by the Federal Reserve a=</span><br><span>nd FD=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;IC&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pa=</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7 &amp;amp;n=</span><br><span>bsp; &amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;SIFIs are being forced to draft =3DE2=3D8=</span><br><span>0=3D9Cliving wills,=3DE2=3D80=3D9D which have a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lready fo=</span><br><span>rced some to streamline or simplify so they can wind down without r=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;equiring a bailout&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorm=</span><br></blockquote><span>al" style=3D3D"margin: 0in 0in=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 12pt;"&amp;gt;&amp;lt;b style=3D3=</span><br><span>D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;u&amp;gt;Congressio=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;nal Update&amp;lt;/u&amp;gt;&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;l=</span><br></blockquote><span>t;p class=3D3D"MsoNormal" style=3D3D"margin: 0in=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0in 12p=</span><br><span>t;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Con=</span><br><span>gre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss is split between those who want to reduce regulato=</span><br><span>ry pressure on big bank=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s and those who would rather see i=</span><br><span>t ramped up. &amp;amp;nbsp;Sen.&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;Shelby, Senate B=</span><br><span>anking Cha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ir, introduced the Financial Regulatory Improv=</span><br><span>ement Act of 2015, a grab-bag o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f exceptions and exemptio=</span><br><span>ns from regulations, mostly for banks with between $=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;50 a=</span><br><span>nd $500 billion in assets.&amp;amp;nbsp; In a similar vein, Sens Warner, Portman=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, and Collins introduced the Independent Agency Regulato=</span><br><span>ry Analysis Act&amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;to require that regulators unde=</span><br><span>rtake a cost-benefit analysis of any rules t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hey wish to i=</span><br><span>mplement.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margi=</span><br><span>n: 0in=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&amp;gt;On the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; flip side, Sens. M=</span><br><span>cCain and Warren=3DE2=3D80=3D99s 21&amp;lt;span style=3D3D"font-size: 12=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;px;"&amp;gt;st&amp;amp;nbsp;&amp;lt;/span&amp;gt;Century Glass-Steagall Act prop=</span><br><span>oses to split commercial a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd investment banks in a bid t=</span><br><span>o finally kill off the TBTF problem.&amp;amp;nbsp; Sen=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s. War=</span><br><span>ren and Vitter teamed up early in 2015 to introduce a package of amend=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;ments to the Federal Reserve Act =3DE2=3D80=3D93- that bill no=</span><br><span>tably would set forw=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ard stricter regulations when an ent=</span><br><span>ity is considered insolvent, and therefo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re ineligible fo=</span><br><span>r Federal Reserve loans, as well as require that the Fed len=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;d money to distressed institutions at market rates.&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;g=</span><br><span>t;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lass=3D3D"MsoNormal" sty=</span><br><span>le=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;b style=3D3D"background-co=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;lor: rgba(255, 255, 255, 0);"&amp;gt;The Regulators' Agenda&amp;amp;nbsp;&amp;lt=</span><br><span>;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;round-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;Under Basel III requirements for large=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; b=</span><br><span>anks to satisfy Liquidity Coverage Ratios (LCR) were adopted by a number o=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;f national regulators, including the Federal Reserve.&amp;amp;n=</span><br><span>bsp; While the Fed ha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s floated a rule change allowing so=</span><br><span>me municipal bonds to count as High Quali=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ty Liquid Asset=</span><br><span>s (HQLA), that hasn=3DE2=3D80=3D99t stopped Rep. Luke Messer from p=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;roposing HR 2209 to force regulators allow a greater share of mun=</span><br></blockquote><span>is to count=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; as HQLA (see Update, Feb. 18).&amp;lt;o:p&amp;gt;&amp;lt=</span><br><span>;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;tyle=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"background-colo=</span><br><span>r: rgba(255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 0);"&amp;gt;The Fed is also working o=</span><br><span>n implementing a rule on Single-Counte=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rparty Credit Limi=</span><br><span>ts (SCCL), setting boundaries on credit exposure between l=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;arge banks or major counterparties.&amp;amp;nbsp; The rule is meant to prevent=</span><br><span>banks=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; from becoming overexposed to other financial inst=</span><br><span>itutions, preventing them f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rom taking overly large losse=</span><br><span>s in the event that the counterparty fails.&amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p; An=</span><br><span>alysts suspect that firms are nearly $100 billion over the limits impos=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;ed by this rule, but Yellen says it is necessary to set a =3D=</span><br><span>E2=3D80=3D9Cbright li=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ne=3DE2=3D80=3D9D on credit exposur=</span><br><span>e.&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;b style=3D3D"bac=</span><br><span>kground-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;SIFIs Moving =</span><br><span>Forward&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal=</span><br><span>" style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;There i=</span><br><span>s no doubt that the upcoming MetLife ruling will be a critic=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;al pivot point for how regulators interact with SIFIs.&amp;amp;nbsp; If the =</span><br><span>FSOC is r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;equired to retract the firm=3DE2=3D80=3D99s SIFI=</span><br><span>status it will open the regulator=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; up for a whole slew o=</span><br><span>f challenges from other banks and institutions.&amp;amp;nbsp; T=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;he fate of Congressional proposals to restrict regulator=3DE2=3D80=3D99s e=</span><br><span>fforts, e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ither by determining rules for them or by burde=</span><br><span>ning them with regulations of=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; their own, should be seen a=</span><br><span>s the start of a potential sea change in the reg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ulatory c=</span><br><span>limate.&amp;amp;nbsp; During his Monday meeting, President Obama warned of t=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;his: "If there is a significant challenge in terms of regula=</span><br><span>ting Wall Street=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; and regulating our financial sector it i=</span><br><span>s primarily coming from certain mem=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bers of Congress who a=</span><br><span>re consistently pressuring independent regulators to b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ac=</span><br><span>k off.=3DE2=3D80=3D9D&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=</span><br><span>ss=3D3D"MsoNormal" style=3D3D"margi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: 0in 0in 12pt;"&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;It is not a bad time to be a SIFI in America =3DE2=3D80=3D93 it=3D=</span><br><span>E2=3D80=3D99s certainl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y much better to be one now than i=</span><br><span>n 2010.&amp;amp;nbsp; While DFA has forced restruc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;turing and=</span><br><span>streamlining to occur, events like the GE Capital sell-off may pr=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;ove to be exceptions that prove the rule rather than the new norma=</span><br><span>l for SIFI=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s, especially if MetLife wins its case against=</span><br><span>regulators.&amp;amp;nbsp; President O=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bama was right to poin=</span><br><span>t to Congress as the cause of regulatory gridlock; the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; p=</span><br><span>olitical will seen after the economic collapse has largely evaporated, giv=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing SIFIs far more breathing room and opening up opportunit=</span><br><span>ies to push throu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gh =3DE2=3D80=3D9Cregulatory reform=3DE=</span><br><span>2=3D80=3D9D measures.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392);"&amp;gt;&amp;lt;div dir=3D3D=</span><br><span>"ltr"&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt;p cl=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;ass=3D3D"MsoNormal" style=3D3D"margin-bottom: 17.25pt;"&amp;gt;&amp;lt;sp=</span><br></blockquote><span>an style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;_____________________________________&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D=</span><br><span>"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;Upcoming/=</span><br><span>Recent Updates&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(130, 98, 83, 0.09803=</span><br><span>92);"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Thurs -- &amp;amp;nbsp;=</span><br><span>Financial Reg. Nominations&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE=</span><br><span>2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3DA2 &amp;amp;nbsp; Fri -- Update on Tax Bills&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Mon --&amp;lt;=</span><br><span>/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;span style=3D3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;span&gt;;=3DE2=3D80=3DA2 &amp;amp;nbsp; ERI/Housing&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp=</span><br><span>; EU/US Derivatives=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Deal&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Pension Crisis=</span><br></blockquote><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;Survey of the SIFI Landsc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ape (=</span><br><span>Mar 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-col=</span><br><span>or: rgba(255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 0);"&amp;gt;Michigan and the Meaning=</span><br><span>of Flint &amp;amp;nbsp;(Mar 8) Puerto Rico's Deb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t Crisis &amp;a=</span><br><span>mp;nbsp;(Mar. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"back=</span><br><span>ground-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255, 255, 255, 0);"&amp;gt;Municipal Fina=</span><br><span>nce Caucus &amp;amp;nbsp;(Mar. 4)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&amp;gt;Flint Bi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ll: &amp;amp;nbsp;Provisions &amp;amp;amp; Pros=</span><br><span>pects (Mar. 2)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Top Ta=</span><br><span>x Bills Handicapped=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;(Feb. 24)&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255,=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; 255, 255, 0);"&amp;gt;Bigger than the Budget Battle &amp;amp;nbsp;(Feb. 2=</span><br><span>3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Infrastruc=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ture Finance Update &amp;amp;nbsp;(Feb. 18)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;=</span><br><span>lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;Does DFA Fail on Too Big to Fail? (=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;Feb. 17)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"b=</span><br></blockquote><span>ackground-color: rgba(255, 255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;Below the R=</span><br><span>adar/Customs Bill &amp;amp;nbsp;(Feb. 16)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;International Tax S=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tatus &amp;amp;nbsp;(Feb=</span><br><span>. 11)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-colo=</span><br><span>r: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;The Fed Holds Steady &amp;amp=</span><br><span>;nbsp;(Feb. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Obama's FY17 Bu=</span><br><span>dget=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;(Feb. 9)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 25=</span><br><span>5, 0);"&amp;gt;Tax Talk of the Town &amp;amp;nbsp;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=</span><br><span>=3D3D"MsoNormal" style=3D3D"margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;o:p styl=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(255, 255, 255, 0); colo=</span><br><span>r: rgba(0, 0, 0, 0.701961); -webkit-composi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion-fill-col=</span><br><span>or: rgba(130, 98, 83, 0.0980392);"&amp;gt;Defending Dodd-Frank &amp;amp;nbsp;(=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;Feb.2)&amp;lt;/span&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=</span><br><span>ormal" style=3D3D"margin: 0in 0in 0.000=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;1pt;"&amp;gt;&amp;lt;o:p s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/o:p&amp;g=</span><br><span>t;&amp;lt;/p=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNo=</span><br><span>rmal" style=3D3D"margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;o:p style=3D3D"ba=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;ckground-color: rgba(255, 255, 255, 0);"&amp;gt;_______=</span><br><span>____________&amp;amp;nbsp;&amp;lt;/o:p&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;=</span><br><span>lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0); color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;0980392); text-decoration: -webkit-letterpress;"&amp;gt;Mike &amp;amp;am=</span><br><span>p; Co. &amp;amp;nbsp;--&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"background-color: rgba(255, 255, 255, 0); color=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=</span><br><span>0, 98, 83,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.0980392); text-decoration: -webkit-letterpr=</span><br><span>ess;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;pan style=3D3D"background-color: rgba(255, 255, 255, 0); color: rgba(0, 0=</span><br><span>, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.701961); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-letterpre=</span><br><span>ss;"&amp;gt;Tomorrow=3DE2=3D80=3D99s Michigan primary elect=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;i=</span><br><span>on may end up being "yugge" if it seriously opens up the possibility that T=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;rump can put the state in play in November --&amp;amp;nbsp;=3DE=</span><br><span>2=3D80=3D9CA normal Republi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;can cannot think of bringing i=</span><br><span>n Michigan,=3DE2=3D80=3D9D said Trump&amp;amp;nbsp;-- nothin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>g any other GOP presidential candidate could do, now, or for the past 25 yea=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rs.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-compo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392); text-decoration: -webkit-le=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t=</span><br><span>terpress; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" style=3D3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fil=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l-color: rgba(1=</span><br><span>30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rg=</span><br><span>ba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;=</span><br><span>gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0,=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt; 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=</span><br><span>2); te=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xt-decoration: -webkit-letterpress; margin: 0in 0i=</span><br><span>n 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;Flint crystallizes so many of th=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;e issues that give rise to this new tectonic possibility. &amp;amp;nbsp;There h=</span><br><span>ad to=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; be a debate in Flint because there had to be a deb=</span><br><span>ate about it... and the S=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ecretary deserves far more cred=</span><br><span>it than she's getting for making sure it happ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ened. &amp;amp;=</span><br><span>nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rg=</span><br><span>ba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-le=</span><br><span>tterpress; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;p class=3D3D"MsoNor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mal" style=3D3D"color: rg=</span><br><span>ba(0, 0, 0, 0.701961); -webkit-composition-fill-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;In Washington, the Senate=</span><br><span>is readying to vote on a bipartisan package for=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; drinkin=</span><br><span>g water aid.&amp;amp;nbsp; It=3DE2=3D80=3D99s not a slam dunk, however, as Mike L=</span><br><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e has maintained a hold on the bill, saying political g=</span><br><span>randstanding is takin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g the place of policy. &amp;amp;nbsp;Mo=</span><br><span>re on all this below.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p clas=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;s=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=</span><br><span>-composition=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-fill-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ess; margin: 0in 0in 0.0=</span><br><span>001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;55, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNo=</span><br><span>rmal" style=3D3D"color: rgba(0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0.701961); -webkit=</span><br><span>-composition-fill-color: rgba(130, 98, 83, 0.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; t=</span><br><span>ext-decoration: -webkit-letterpress; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span s=</span><br><span>ty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Best,&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" s=</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=</span><br><span>terpress;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;br&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=</span><br><span>(0, 0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.701961); -webkit-composition-fill-color: rgb=</span><br><span>a(130, 98, 83, 0.0980392); te=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xt-decoration: -webkit-lett=</span><br><span>erpress; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;Dana&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p class=3D3D"MsoNo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rmal" style=3D3D"color: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(130,=</span><br><span>98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;n: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;_________________________________=</span><br><span>_____&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br></blockquote><span>gba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(130, 98, 83, 0.0980392); text-decoration: -webkit-le=</span><br><span>tterpress; margin: 0in 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in 0.0001pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-composition-fill-color: rgb=</span><br><span>a(130, 98, 83, 0.0980392); text-decoration=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: -webkit-lett=</span><br><span>erpress; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 0in=</span><br><span>0in 12p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&amp;gt;Flint -- Bills=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; and Broad S=</span><br><span>trokes&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"c=</span><br><span>olor: rgba(0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0, 0, 0.701961); -webkit-composition-fill-=</span><br><span>color: rgba(130, 98, 83, 0.098039=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;2); text-decoration: -w=</span><br><span>ebkit-letterpress; margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The Michigan legislat=</span><br><span>ure appr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oved in January a $28 million appropriation to p=</span><br><span>rovide immediate aid to Flin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t.&amp;amp;nbsp; Some critics ma=</span><br><span>intain that the need to do so demonstrates the sorry=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; con=</span><br><span>dition of the state=3DE2=3D80=3D99s tax policy.&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;o:p&amp;g=</span><br><span>t;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/p&amp;gt;&amp;lt;p class=3D3D"Ms=</span><br><span>oNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webki=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-letterpress; margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;=</span><br><span>The tax base in Flint was eroded significantly during th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>e 1980=3DE2=3D80=3D99s and 90=3DE2=3D80=3D99s as industry jobs left and the p=</span><br><span>opulation f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ell.&amp;amp;nbsp; To deal with the resulting fis=</span><br><span>cal imbalance the Flint city manage=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r was instructed to c=</span><br><span>ut costs =3DE2=3D80=3D93 he did so partly by switching the so=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;urce of Flint=3DE2=3D80=3D99s drinking water. The broad and deep cuts t=</span><br><span>o state and=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; local budgets affected basic public services=</span><br><span>most profoundly.&amp;amp;nbsp; Now, as=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; a direct cause of th=</span><br><span>ese cuts, the residents of Flint are grappling with an i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ssue no American ever considered possible =3DE2=3D80=3D93 they do not have a=</span><br><span>ccess t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o fresh drinking water.&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130,=</span><br><span>9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>s; margin: 0in 0in 12p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t;"&amp;gt;&amp;lt;span style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;For all the ta=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lk o=</span><br><span>f federal aid in infrastructure financing there must be a place made for=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; regular tax payers.&amp;amp;nbsp; These people bear a significa=</span><br><span>nt portion of direct=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; funding for infrastructure projects=</span><br><span>both in their states and municipalities=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.&amp;amp;nbsp; When=</span><br><span>those tax revenues are redirected, or when state spending is cu=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;t to the point that basic services can=3DE2=3D80=3D99t be provided t=</span><br><span>hen taxpayers a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re right to question what, in fact, their=</span><br><span>taxes are paying for.&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o:p&amp;gt;&amp;lt=</span><br><span>;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color=</span><br><span>: rgba(0, 0, 0, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;decoration: -webki=</span><br><span>t-letterpress; margin: 0in 0in 12pt;"&amp;gt;&amp;lt;b style=3D3D"backgrou=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;u&amp;gt;Congressional updat=</span><br><span>e&amp;lt;/u&amp;gt;:&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b&amp;gt;&amp;lt;/p&amp;gt;&amp;=</span><br><span>lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webki=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-composition-fill-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -we=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bkit-letterpress; margin: 0in 0in 12p=</span><br><span>t;"&amp;gt;&amp;lt;span style=3D3D"background-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;At the insistence of Democrats, the Flint agreement h=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;as been attached to a Senate energy bill introduced by Sen. Mu=</span><br><span>rkowski, S. 20=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;12, which is next in line in the Senate fo=</span><br><span>llowing the opioid addiction bill.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;amp;nbsp; The energy b=</span><br><span>ill will be voted on soon, providing that things moves qu=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ickly (not a sure bet, since Dems may want to vote on certain amendments to=</span><br></blockquote><span>t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he opioid bill).&amp;amp;nbsp; Despite these potential han=</span><br><span>g ups, Senate leadership h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;opes to wrap up the energy bil=</span><br><span>l by the end of the week =3DE2=3D80=3D93 giving them=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; som=</span><br><span>e breathing room before the Senate adjourns for Easter recess by March 2=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;1.&amp;amp;nbsp;&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;l=</span><br><span>t;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098039=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;2); text-decoration: -webkit-letterpress; margin: 0in 0in 12p=</span><br><span>t;"&amp;gt;&amp;lt;span style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;While Sen. Cruz lifted his ho=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ld on the b=</span><br><span>ill last week, Mike Lee has continued to block movement on the le=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;gislation. &amp;amp;nbsp;Sen. Lee is claiming that federal aid is not n=</span><br><span>ecessary to d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eal with Flint:&amp;amp;nbsp;=3DE2=3D80=3D9CThe=</span><br><span>state of Michigan has an enormous budget s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;urplus this y=</span><br><span>ear and a large rainy-day fund, totaling hundreds of millions o=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;f dollars," the Senator said in a statement.&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;l=</span><br></blockquote><span>t;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>s;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u&amp;gt=</span><br><span>;Flint agreement&amp;lt;/u&amp;gt;:&amp;lt;/b&amp;gt;&amp;lt;b&amp;gt;&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/b&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" st=</span><br><span>yle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lett=</span><br><span>erpress;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"b=</span><br><span>ackground-color: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;The bill pr=</span><br><span>ovides $250 million to assist the residents of&amp;amp;nbsp;Flint, M=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;ichigan and other American cities experiencing critical problems wit=</span><br><span>h their w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ater supplies by&amp;amp;nbsp;increasing funding fo=</span><br><span>r Drinking Water Act State Revolv=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing Funds and provide s=</span><br><span>tart-up funding for the new Water Infrastructure Fina=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nce=</span><br><span>and Innovation Act.&amp;amp;nbsp; It includes:&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;MsoListParagraphCxSpFirst"=</span><br><span>style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;it-letterpress; margin: 0in 0in 12pt 0.5in;"&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(255, 255, 255, 0);"&amp;gt;=3D=</span><br><span>C2=3DB7&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp=</span><br><span>;$=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;100 million for Drinking Water State Revolving Funds (=</span><br><span>SRFs) accessible by an=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y state with a drinking water emer=</span><br><span>gency.&amp;amp;nbsp; It requires states to submit p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lans expl=</span><br><span>aining how the money will be spent to address the emergency before f=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;unding is provided. &amp;amp;nbsp;&amp;amp;nbsp;Funds that remain after 1=</span><br><span>8 months will be di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;stributed to all states under the exi=</span><br><span>sting SRF formula.&amp;amp;nbsp;&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;an&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoListParagraphCxSpMiddle" style=3D3D"co=</span><br><span>lor: rgba(0, 0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.701961); -webkit-composition-fill-c=</span><br><span>olor: rgba(130, 98, 83, 0.0980392); te=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xt-decoration: -we=</span><br><span>bkit-letterpress; margin: 0in 0in 12pt 0.5in;"&amp;gt;&amp;lt;span style=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7&amp;amp;n=</span><br><span>bsp;&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;&amp;amp;nbsp;&amp;amp;nbsp;&amp;a=</span><br><span>mp;nbsp;$70 million in funding to back secured loans made under t=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;he new Water Infrastructure Finance and Innovation Act (WIFIA).&amp;amp=</span><br><span>;nbsp; A fede=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ral investment of $70 million could support=</span><br><span>secured loans of up to $4.2 bill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion to address water an=</span><br><span>d wastewater infrastructure needs across the country,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; ac=</span><br><span>cording to Sen. Inhofe=3DE2=3D80=3D99s office.&amp;amp;nbsp; All states and all c=</span><br><span>ommuni=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ties with clean water and drinking water infrastru=</span><br><span>cture needs are eligible f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or this assistance.&amp;amp;nbsp;&amp;=</span><br><span>lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoListParagra=</span><br><span>phC=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xSpLast" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(130, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-letterpress; ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin: 0in 0=</span><br><span>in 12pt 0.5in;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;=3DC2=3DB7&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nb=</span><br><span>sp;&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;nbsp;$50 million for var=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ious=</span><br><span>in authorized health programs for national use to address and prevent i=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;mpacts from exposure to lead.&amp;amp;nbsp;&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;g=</span><br><span>t;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorm=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al" sty=</span><br><span>le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt; rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=</span><br><span>rpress; margin:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&amp;lt;u&amp;gt;=3DE2=3D80=3D9CFlint=3DE2=3D80=3D9D is more than=</span><br><span>Flint&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;o:p&amp;gt;&amp;lt;/o:p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-comp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;osition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=</span><br><span>tterpress; margin: 0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: r=</span><br><span>gba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;Flint is a crisis of governan=</span><br><span>ce =3DE2=3D80=3D93 there is a discon=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nect in the relation=</span><br><span>ship between citizens and government, and it bridges eve=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ry demographic.&amp;amp;nbsp; Just as the poor drink water so do the wealthy, an=</span><br><span>d wh=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;en a service as basic and fundamental is undermined t=</span><br><span>o the point that an ent=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ire town of nearly a hundred thou=</span><br><span>sands is poisoned by its own government, vo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ters will exp=</span><br><span>ress themselves, given the chance.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=</span><br><span>ss=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701=</span><br><span>961); -webkit-composition-fill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-decoration: -webkit-letterpress; m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin:=</span><br><span>0in 0in 12pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255,=</span><br><span>0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;Residents, customers, consumers, taxpayers =3DE=</span><br><span>2=3D80=3D93- citizens at the en=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d of the day &amp;amp;nbsp;=3D=</span><br><span>E2=3D80=3D93- are seeing their government in a significantly=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt; different light and thus far are voting differently this year according=</span><br><span>ly.&amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;Donald Trump would not likely be able to pu=</span><br><span>t Michigan in play without t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;his new perspective animatio=</span><br><span>n politics in Michigan as much as anywhere.&amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div style=3D3D"text-decoratio=</span><br><span>n: -webkit-letterpress;"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt=</span><br><span>;div dir=3D3D"ltr"&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br><span>t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"margin-bottom: 17.25pt;"&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;________=</span><br><span>_____________________________&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"MsoNormal"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Upc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oming/Recent Updates=</span><br><span>&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div st=</span><br><span>yle=3D3D"text-decorat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion: -webkit-letterpress;"&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5=</span><br><span>5, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Tues -- &amp;amp;nbsp;Financial Reg. N=</span><br><span>ominations&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;=3DA2 &amp;amp;nbsp; Wed -- &amp;amp;nbsp;SIFIs and the Fed&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Thurs -- Update on=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Tax Bills&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;=</span><br><span>&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 255, 0);"&amp;gt;&amp;amp;nbsp=</span><br><span>; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; ERI/Housing&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p;=3D=</span><br><span>E2=3D80=3DA2 &amp;amp;nbsp; Intl Tax Reform&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255,=</span><br><span>0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; EU/US Deriva=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;tives Deal&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;amp;nb=</span><br><span>sp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Pension Crisis&amp;lt;/span&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;=</span><br><span>gt;Michigan and the Me=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aning of Flint (Mar 8) Puerto Rico=</span><br><span>'s Debt Crisis &amp;amp;nbsp;(Mar. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;=</span><br><span>gt;Municipal Fin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ance Caucus &amp;amp;nbsp;(Mar. 4)&amp;amp;nbsp;=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0);"&amp;gt;Flint Bill: &amp;amp;nbsp;Provisio=</span><br></blockquote><span>ns &amp;amp;amp; Prospects=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; (Mar. 2)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;Top Tax Bills Handicapped &amp;amp;nbsp;(Feb. 24)=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&amp;gt;Bigger than the Budge=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;t Battle &amp;amp;nbsp;(Feb. 23)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;=</span><br></blockquote><span>lt;div&amp;gt;&amp;lt;span style=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;Infrastructure Finance Update &amp;amp;nbsp;(Feb. 18)&amp;amp;n=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;Does DFA =</span><br><span>Fail on Too Big to Fail? (Feb. 17)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=</span><br><span>an style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;Below the Radar/Customs Bill &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;(Feb. 16)&amp;amp=</span><br><span>;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-col=</span><br><span>or: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;International Tax Status=</span><br><span>&amp;amp;nbsp;(Feb. 11)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The Fed Ho=</span><br><span>lds St=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eady &amp;amp;nbsp;(Feb. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255=</span><br><span>, 255, 255, 0);"&amp;gt;Obama's FY17 Budget &amp;amp;nbsp;(Feb. 9)&amp;amp;nbsp;&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;div&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;Tax Talk of the Town &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp=</span><br><span>;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-co=</span><br><span>lor: rgba(255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 0);"&amp;gt;Defending Dodd-Frank &amp;a=</span><br><span>mp;nbsp;(Feb. 2)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;Fiscal Pol: Defi=</span><br><span>cit/Debt Dormanc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y (Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt; 255, 0);"&amp;gt;The Fed Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&amp;gt;Debate Myths Challeng=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ed &amp;amp;nbsp;(Jan. 25)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 255, 0);"&amp;gt;Regulati=</span><br><span>ng the Regulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;Sanders' Tax/Heal=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;sp=</span><br><span>an&gt;thcare Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan. 17)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;2016 Tax Agenda on=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the Hill &amp;amp;nbsp;(Jan. 16)&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: r=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;Glass-Steagall, Take 2 &amp;amp;nbsp=</span><br><span>;(Jan. 13)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;2016 Tax Polic=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;y Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255, 255, 25=</span><br><span>5, 0);"&amp;gt;Sanders Proposals/GS &amp;amp;amp; TBTF (Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;Sanders' Fin R=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eg Proposals &amp;amp=</span><br><span>;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>ound-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(255, 255, 255, 0);"&amp;gt;Year-End Review:=</span><br><span>Fiscal Policy (Jan. 1) &amp;amp;nbsp;Yea=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r-End Review: Fin. R=</span><br><span>eg.&amp;amp;nbsp;&amp;amp;nbsp;(Dec. 29) &amp;amp;nbsp;Omnibus Review (Dec. 15)&amp;lt;=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&amp;gt;O=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mnibus Situation &amp;=</span><br><span>amp;nbsp;(Dec. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;=</span><br><span>gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;------&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;=</span><br><span>gt;&amp;lt;br&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/d=</span><br><span>iv&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress;"&amp;gt;Mike &amp;amp;am=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p; Co. --&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -we=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bkit-composition-fill-color: rgba(130, 98, 83, 0.0=</span><br><span>980392); text-decoration: -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-letterpress;"&amp;gt;&amp;lt;d=</span><br><span>iv dir=3D3D"ltr"&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt;p c=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lass=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;l=</span><br><span>t;span style=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;The February jobs report came out this morning b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=</span><br><span>tter than expected. &amp;amp;nbsp; Once again,&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;t=</span><br><span>he US economy maintained strong job growt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;h without wage g=</span><br><span>ains. &amp;amp;nbsp;Wages fell 0.1 percent in February, but 242,000 p=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;ositions were added to the economy, marking 72 months of uninterrup=</span><br><span>ted job g=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ains =3DE2=3D80=3D93 the longest streak on reco=</span><br><span>rd.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Mso=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>Normal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-colo=</span><br><span>r: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 255, 0);"&amp;gt;Additionally, labor parti=</span><br><span>cipation rose by 1.5 million Amer=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;icans since November =3D=</span><br><span>E2=3D80=3D93 making it the highest it has been&amp;amp;nbsp;in 16 y=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;ears&amp;amp;nbsp;(62.9 percent of the overall share of Americans).&amp;lt;/s=</span><br></blockquote><span>pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"MsoNormal" style=3D3D"=</span><br><span>margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-color=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;: rgba(255, 255, 255, 0);"&amp;gt;The report from Puerto Rico is not as sunny.=</span><br><span>&amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p;The territory is still waiting on a Congressi=</span><br><span>onal bill designed to handle t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he ongoing debt crisis on t=</span><br><span>he island. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;-color: rgba(255, 255, 255, 0);"&amp;gt;More &amp;amp;nbsp;below.&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Mso=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Normal" style=3D3D"margi=</span><br><span>n: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;5, 255, 255, 0);"&amp;gt;Best,&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=</span><br><span>ormal" style=3D3D"margin: 12=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt 0in;"&amp;gt;Dana&amp;lt;/p&amp;gt;&amp;l=</span><br><span>t;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;________=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;______________________________&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorma=</span><br></blockquote><span>l" style=3D3D"margin: 12=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt 0in;"&amp;gt;&amp;lt;b style=3D3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;Puerto Rico=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;=3D80=3D99s Time Bomb&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" styl=</span><br><span>e=3D3D"margin: 12pt 0in;"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;The Puerto Rican d=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ebt crisis has been an ongoing concern for both Congress, Wall Street and t=</span><br></blockquote><span>h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e Obama administration for some years now =3DE2=3D80=3D=</span><br><span>93 the territory=3DE2=3D80=3D99s b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ond ratings have been s=</span><br><span>teadily dropping into the junk category and fell from=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; A-=</span><br><span>in 2005 to CCC+ last April.&amp;amp;nbsp; At the heart of the matter is $70 bil=</span><br><span>l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion in bonds that Puerto Rico owes and says it cannot p=</span><br><span>ay on.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p&amp;gt;&amp;lt;p class=3D3D"=</span><br><span>MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"backgrou=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;Because Puerto Rican b=</span><br><span>onds are tax exempt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; in all 50 states and the District of=</span><br><span>Columbia, making them incredibly popul=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ar investments fo=</span><br><span>r mutual funds, pensioners, and big banks.&amp;amp;nbsp; Over 20 pe=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;rcent of mutual funds in the United States hold at least some Puerto R=</span><br></blockquote><span>ican b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;onds, with $11.3 billion in portfolio, with a furt=</span><br><span>her $15 billion in bonds h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eld by hedge funds.&amp;amp;nbsp; N=</span><br><span>ow that the territory=3DE2=3D80=3D99s bonds are in the =3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;=3D80=3D9Cjunk=3DE2=3D80=3D9D category, pension funds and insurance firm=</span><br><span>s are unable t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o hold them any longer.&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt 0=</span><br><span>in;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Th=</span><br><span>e diver=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;se list of bond holders has thrown a wrench into t=</span><br><span>he plans of those who woul=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d rather allow Puerto Rico to d=</span><br><span>efault on its obligations =3DE2=3D80=3D93 something=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; whic=</span><br><span>h would require legislative action (the territory doesn=3DE2=3D80=3D99t have=</span><br><span>t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hat luxury, unlike states).&amp;amp;nbsp; If Puerto Rico i=</span><br><span>s allowed to renege on its=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; contractual agreements, the a=</span><br><span>rgument goes, then it creates a moral hazard f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or other e=</span><br><span>ntities to do the same rather than make the tough choices necessar=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;y to honor their obligations.&amp;amp;nbsp; The fact that many of thes=</span><br><span>e bonds are es=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sentially held by ordinary Americans (thro=</span><br><span>ugh mutual funds and pensions) mak=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es the argument all th=</span><br><span>at stronger for many representatives.&amp;amp;nbsp; A state ha=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;sn=3DE2=3D80=3D99t declared bankruptcy since Arkansas did so in 1933.&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; class=3D3D"MsoNormal" style=3D3D=</span><br><span>"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Moral hazard is inherent in a debt restruct=</span><br><span>ur=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing deal; here, the path for Puerto Rico toward capita=</span><br><span>l markets after anythi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ng of the sort would still be an e=</span><br><span>specially painful one (see: Argentina).&amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp; Additi=</span><br><span>onally, there are few serious proposals to grant the island full C=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;hapter 9 status. &amp;amp;nbsp;Most opt instead for some form of negot=</span><br><span>iated haircut a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;greement combined with extending maturiti=</span><br><span>es on the bonds; these proposals ar=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e likely to succeed, c=</span><br><span>onsidering Puerto Rico is almost certainly unable to m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ai=</span><br><span>ntain its bond payment schedule without a restructuring agreement.&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"marg=</span><br><span>in: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-color: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;Administration Position&amp;lt;/b&amp;gt;&amp;lt;b&amp;g=</span><br><span>t;&amp;lt;/b&amp;gt;&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=</span><br><span>ormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;ckground-color: rgba(255, 255, 255, 0);"&amp;gt;Testifying before the Hous=</span><br><span>e Committ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ee on Natural Resources on Feb 25, Treasury off=</span><br><span>icial Antonio Weiss warned la=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;wmakers that Puerto Rico ne=</span><br><span>eds =3DE2=3D80=3D9Can immediate solution=3DE2=3D80=3D9D if it=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;=3DE2=3D80=3D99s to survive past&amp;amp;nbsp;May 1, when a $470 million bo=</span><br><span>nd payment is d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ue.&amp;amp;nbsp; Soon after that,&amp;amp;nbsp;o=</span><br><span>n&amp;amp;nbsp;July 1, a $1.9 billion bond payment w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill come=</span><br><span>due as well =3DE2=3D80=3D93 Puerto Rican representatives have already dec=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;lared they cannot meet those payments without assistance.&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"MsoNormal" style=3D=</span><br><span>3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-color: r=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;Weiss laid out the administration=3DE2=3D=</span><br><span>80=3D99s two-part=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; plan: first the territory must be allo=</span><br><span>wed to restructure its debt obligatio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ns, second a fiscal=</span><br><span>oversight board should be established to assist the isla=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>nd with managing its finances.&amp;amp;nbsp; Importantly, Weiss stopped short o=</span><br></blockquote><span>f adv=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ocating for bankruptcy protection for Puerto Rico a=</span><br><span>nd told the committee tha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t =3DE2=3D80=3D9Can advisory bo=</span><br><span>ard is not adequate to do the job=3DE2=3D80=3D9D alone.&amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;bsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D=</span><br><span>3D"margin: 12pt 0in;"&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&amp;gt;House Democrats voiced=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>concern over the financial oversight board, Rep. Luis Guti=3DC3=3DA9rrez: =3D=</span><br></blockquote><span>E2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D9CThey=3DE2=3D80=3D99re saying that there=3DE2=</span><br><span>=3D80=3D99s a joint responsibility, but i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t seems to me t=</span><br><span>hat all of the responsibility is being weighed on the people o=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;f Puerto Rico.=3DE2=3D80=3D9D&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;g=</span><br><span>t;&amp;lt;p class=3D3D"MsoNormal" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"margin: 12pt 0i=</span><br><span>n;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;Meanwhile Republicans claimed that any plan to restructure P=</span><br><span>uerto Rican de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bt was a non-starter; a few hours after th=</span><br><span>e hearing the Republican Study Com=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mittee announced it wo=</span><br><span>uld oppose any plan including such a provision.&amp;amp;nbsp;&amp;amp;=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;nbsp;"Changing the rules mid-game would be unfair to Puerto Rico=3DE2=3D=</span><br><span>80=3D99s c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;reditors who entered into these arrangements w=</span><br><span>ith agreed upon terms and woul=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d delegitimize future tran=</span><br><span>sactions," said RSC Chairman&amp;amp;nbsp;Bill Flores.&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>an&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;g=</span><br></blockquote><span>t;&amp;lt;b style=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255,=</span><br><span>0);"&amp;gt;Policy Options&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNo=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;rmal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"backgrou=</span><br><span>nd-color: rgba(255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 255, 0);"&amp;gt;Until recently the=</span><br><span>two parties have maintained starkly contr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;asting views o=</span><br><span>n how to best deal with Puerto Rico=3DE2=3D80=3D99s debt crisis =3DE2=3D80=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D93 Democrats have pushed for a forced debt restructuring=</span><br><span>, with some calling=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; for the island to be granted Chapter=</span><br><span>9 bankruptcy protections, meanwhile Re=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;publicans called f=</span><br><span>or a financial oversight council to make the tough fiscal d=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ecisions necessary for Puerto Rico to maintain its debt obligations witho=</span><br><span>ut r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eneging on its agreements.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt=</span><br><span>;p class=3D3D"MsoNormal" style=3D3D"margin:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 12pt 0in;"&amp;g=</span><br><span>t;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The ad=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ministration, through Weiss, has advocated a middle of the r=</span><br><span>oad approach. By=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; adopting both proposals and avoiding th=</span><br><span>e further edges of each (no bankrupt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cy, and no unaccount=</span><br><span>able board staffed by Wall Streeters), the administratio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>n hopes to find compromise between each group.&amp;amp;nbsp; And it seems like i=</span><br><span>t mi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ght work.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Mso=</span><br><span>Normal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;b st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3=</span><br><span>D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Finding Compromise&amp;lt;/b&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-=</span><br><span>bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;Recently, however, the conservative s=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;tance against debt restructuring has lessened =3DE2=3D80=3D93 w=</span><br><span>ith some Republican=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s saying that they could support a PR=</span><br><span>bill as long as it doesn=3DE2=3D80=3D99t inc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lude Chapte=</span><br><span>r 9 bankruptcy.&amp;amp;nbsp; House Natural Resources chair Bob Bishop ha=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;s been working on a bill for Puerto Rico that does include some=</span><br><span>element of d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebt restructuring, and recently said =3DE2=3D=</span><br><span>80=3D9C=3DE2=3D80=3D9CI=3DE2=3D80=3D99m sure RSC w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill be=</span><br><span>satisfied with what we do =3DE2=3D80=3DA6 to say that some element of [debt=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; restructuring] could be in there, yeah.=3DE2=3D80=3D9D &amp;=</span><br><span>amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; &amp;amp;nbsp;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 17=</span><br><span>.25pt;"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba(25=</span><br><span>5, 255, 255, 0);"&amp;gt;The House is still=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; sticking to its e=</span><br><span>nd of March deadline set by Speaker Ryan&amp;amp;nbsp;for putting f=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;orward a final bill on Puerto Rico on the floor for a vote.&amp;amp;nbsp;=</span><br></blockquote><span>&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" style=</span><br><span>=3D3D"margin-bottom: 17.25pt;"&amp;gt;&amp;lt;span style=3D3D"back=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;ground-color: rgba(255, 255, 255, 0);"&amp;gt;________________________________=</span><br><span>_____=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgb=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;a(255, 255, 255, 0);"&amp;gt;Upcoming/Recent Updates&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div styl=</span><br><span>e=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=</span><br><span>press;"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span style=3D3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Th=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;urs -- Municipal Finance Caucus&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Fri -- Puerto Rico&amp;lt;/span&amp;gt;&amp;lt;/d=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Mon -- FY17&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Tues -- 13 D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; R=</span><br><span>egs&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Wed -- &amp;amp;nbsp;TBD&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;a=</span><br></blockquote><span>mp;nbsp; &amp;amp;nbsp;=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3DA2 &amp;amp;nbsp; SBC Nomina=</span><br><span>tions&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-col=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D=</span><br><span>80=3DA2 &amp;amp;nbsp; ERI/Housing&amp;lt;/span=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;&amp;amp;nbsp=</span><br><span>; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Intl Tax Reform&amp;lt;/span&amp;gt;&amp;lt;/div&amp;=</span><br><span>gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; EU=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;/US Derivatives Deal&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0=</span><br><span>);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Pension Crisis&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;/div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Michigan=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt; and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;amp;nbsp;=</span><br><span>(Mar. 5)&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Municipal Fi=</span><br><span>nance Caucus &amp;amp;nbsp;(Mar. 4)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;spa=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Fl=</span><br><span>int Bill: &amp;amp;nbsp;Prov=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;isions &amp;amp;amp; Prospects (Mar.=</span><br><span>2)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgr=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0);"&amp;gt;Top Tax Bills Handi=</span><br><span>capped &amp;amp;nbsp;(Feb. 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;4)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;"&amp;gt;Bigger than the Budget Battle &amp;amp;nbsp;(Feb. 23)&amp;lt;/span&amp;g=</span><br></blockquote><span>t;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&amp;gt;Infrastructure Finance Up=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;date &amp;amp;nbsp;(Feb. 18)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;l=</span><br><span>t;div&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(255,=</span><br><span>255, 255, 0);"&amp;gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&amp;lt;/span&amp;gt;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;Below t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he Radar/Customs Bi=</span><br><span>ll &amp;amp;nbsp;(Feb. 16)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;International Tax Status &amp;amp;nbsp;(Fe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b. 11)&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 25=</span><br><span>5, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;The Fed Holds Steady &amp;amp;nbsp;(Feb. 10)=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"b=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ackground-color: rgba(255, 255, 255, 0);"&amp;gt;Obama's FY17 Budget &amp;amp;nbsp;=</span><br></blockquote><span>(Feb. 9)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax T=</span><br><span>alk of the Town &amp;amp;nbsp;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"background=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;Defending Dodd-Frank &amp;amp;nbsp;(Feb. 2)&amp;lt;br&amp;gt;&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;an&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&amp;gt;Fiscal Pol=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: Deficit/Debt Dormancy (Jan. 28)&amp;lt;=</span><br><span>/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;-color: rgba(255, 255, 255, 0);"&amp;gt;The Fed Holds Rates, for Now &amp;amp;=</span><br><span>nbsp;(Jan. 28=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;Regulating the Regulator=</span><br><span>s &amp;amp;nbsp;(Jan=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;. 21)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;);"&amp;gt;Sanders' Tax/Healthcare Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;. 17)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;2016 Tax Agenda on the=</span><br><span>Hill &amp;amp;nbsp;(Jan. 16)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;Glass-S=</span><br><span>teagall, Take 2 &amp;amp;nbsp;(Ja=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n. 13)&amp;lt;/span&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255,=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;2016 Tax Policy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;background=</span><br><span>-color: rgba(255, 255, 255, 0);"&amp;gt;Sanders Proposals/GS &amp;amp;amp; TBTF (=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;Sanders=</span><br><span>' Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;l=</span><br><span>t;span styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;Year-End Review: Fiscal Poli=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cy (Jan. 1) &amp;amp;nbsp=</span><br><span>;Year-End Review: Fin. Reg.&amp;amp;nbsp;&amp;amp;nbsp;(Dec. 29) &amp;amp;nbsp;Omni=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;bus Review (Dec. 15)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);=</span><br><span>"&amp;gt;Omnibus Situation &amp;amp;nbsp;(Dec. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;g=</span><br><span>t;&amp;lt;span=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;FY 2016 Omnibus Talks (=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dec. 10)&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>5=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Tax Extender Negotiations &amp;amp;nbsp;(Dec. 6=</span><br><span>)&amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;=</span><br><span>Brown on HFT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;=</span><br><span>div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=</span><br><span>t-letterpress;"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span style=3D3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp=</span><br><span>;(Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -web=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-letterpress;"&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mposition-fill-color: rgb=</span><br><span>a(130, 98, 83, 0.0980392); text-decoration: -webkit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-lett=</span><br><span>erpress;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;=</span><br><span>gt;___=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;_____&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"c=</span><br><span>olor: rgba(0, 0, 0, 0.701961); -webkit-comp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;osition-fill-=</span><br><span>color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;etterpress;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br></blockquote><span>55, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=</span><br><span>ter=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;press;"&amp;gt;Mike &amp;amp;amp; Co. --&amp;lt;/span&amp;gt;&amp;lt;br&amp;g=</span><br><span>t;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;961); -we=</span><br><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;oration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div s=</span><br></blockquote><span>tyle=3D3D"color: rgba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.0980392); text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-dec=</span><br><span>oration: -webkit-letterpress;"&amp;gt;In half an hour, the BLS jobs report for =3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;February is due to be released. &amp;amp;nbsp;If you'd like an u=</span><br><span>pdate or have any qu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;estions, please let me know.&amp;amp;nbs=</span><br><span>p;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.=</span><br><span>701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div style=3D3D"color: rgba(0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0, 0.701961); -web=</span><br><span>kit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>text-decoration: -webkit-letterpress;"&amp;gt;Meanwhile, amid the most fractio=</span><br></blockquote><span>us c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ampaign in recent history comes an initiative in Con=</span><br><span>gress that sounds, well,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; incongruous with the cacophany.=</span><br><span>&amp;amp;nbsp;A broad and bipartisan group of House=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; members=</span><br><span>is behind the official launch of a caucus this week dedicated to pr=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;otecting and expanding the tax exemption enjoyed by municipal de=</span><br><span>bt.&amp;amp;nbsp;&amp;lt;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div style=3D3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba=</span><br><span>(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;b=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;r&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-composition-fi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ll-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit-letterpress=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt=</span><br><span>;You have to start somewhere and why not with incentives to address the na=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion's long-neglected infrastructure with tax breaks -- abo=</span><br><span>ut the only kind o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f stimulus and jobs measure that can g=</span><br><span>arner bipartisan support? &amp;amp;nbsp; More o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n the new Mun=</span><br><span>icipal Finance Caucus below. &amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color:=</span><br><span>r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(0, 0, 0, 0.701961); -webkit-composition-fill-color=</span><br><span>: rgba(130, 98, 83, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0980392); text-decoration: -webkit=</span><br><span>-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"col=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130,=</span><br><span>98, 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>s;"&amp;gt;Best,&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0=</span><br><span>, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;div sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"color: rgba(0, 0, 0, 0.7=</span><br><span>01961); -webkit-composition-fill-color: rgba(1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;30, 98, 83=</span><br><span>, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;Dana&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 83, 0.0980392); tex=</span><br><span>t-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>v&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-=</span><br><span>fill-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(130, 98, 83, 0.0980392); text-decoratio=</span><br><span>n: -webkit-letterpress;"&amp;gt;___=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;_________________________=</span><br><span>_________&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"m=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;argin: 12pt 0in;"&amp;gt;&amp;lt;font style=3D3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;b&amp;gt;A New Caucus&amp;lt;/b&amp;gt;=</span><br><span>&amp;lt;/font&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in;"&amp;gt;&amp;lt;font style=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;On Tuesday, R=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eps. Randy Hultgren and Du=</span><br><span>tch Ruppersberger announced that they have formed t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he Mu=</span><br><span>nicipal Finance Caucus to protect the tax-exempt status of municipal de=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;bt and reexamine the way it is treated in financial regulatio=</span><br><span>ns. &amp;amp;nbsp;In 20=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;15, Hultgren and Ruppersberger sent a=</span><br><span>letter (reprinted below) to House lead=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ership&amp;amp;nbsp;&amp;=</span><br><span>lt;/font&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;opposing&amp;amp;nbsp;the President=3D=</span><br><span>E2=3D80=3D99s proposed 28 percent cap on tax deduct=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;span&gt;ions for municipal bonds,&amp;amp;nbsp;signed by over 120 of their colle=</span><br><span>agues. &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;Their announcement co=</span><br><span>incided wit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;h the National Association of State Treasurer=</span><br><span>s=3DE2=3D80=3D99 legislative conferen=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ce in D.C. The same=</span><br><span>group drafted another letter, signed by more than 600 st=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ate and local officials, which urges the leaders of the House Ways and Mean=</span><br></blockquote><span>s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Committee and the Senate Finance Committee to reject c=</span><br><span>urbs to the muni exem=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ption.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;b=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Who=3D=</span><br><span>E2=3D80=3D99s in it?&amp;lt;/b=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;=</span><br><span>/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;round-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;Right now just the founding representa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tives h=</span><br><span>ave declared their official membership, but it=3DE2=3D80=3D99s foreseeable t=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hat some of the 120 representatives that signed the lett=</span><br><span>er to House leadersh=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ip in 2015 will join as well.&amp;amp;nb=</span><br><span>sp; It=3DE2=3D80=3D99s also seen a s likely that s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ome Se=</span><br><span>nators will want to join the caucus, but the founders haven't made cle=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;ar if bicameral membership is a priority.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;g=</span><br><span>t;&amp;lt;p class=3D3D"MsoNormal" s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"margin: 12pt 0i=</span><br><span>n;"&amp;gt;&amp;lt;b style=3D3D"background-color: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; 0);"&amp;gt;Is it Bipartisan?&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorma=</span><br><span>l" style=3D3D"margin: 12pt 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in;"&amp;gt;&amp;lt;span style=3D3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&amp;gt;Since 2013 Hu=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ltgren and Ruppersberger have led bipartisan efforts to draft letters of s=</span><br><span>up=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;port for municipal bonds. &amp;amp;nbsp;The signatories to=</span><br><span>these letters include mem=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bers from both sides of the ai=</span><br><span>sle. &amp;amp;nbsp;Rep. Ruppersberger focuses mostly o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n loca=</span><br><span>l government and is pretty moderate. Rep. Hultgren is a more orthodox c=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;onservative Republican.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p=</span><br><span>class=3D3D"MsoNormal" style=3D3D"marg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in: 12pt 0in;"&amp;gt;=</span><br><span>&amp;lt;b style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;What=3DE2=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3D99s the Purpose?&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"margin: 12pt 0in=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The Caucus plan=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;s to defend municipal bonds=3DE2=3D80=3D99 tax exempt status a=</span><br><span>nd advocate for regu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;latory changes which favor those bon=</span><br><span>ds.&amp;amp;nbsp; Proposals to limit the tax-exe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mpt status o=</span><br><span>f these bonds have been floated in recent years.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>p=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br><span>tyle=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;In addition to callin=</span><br><span>g for the bonds to ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;intain their tax preferred status, t=</span><br><span>he Caucus will push for the passage of H=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;R 2209, legislat=</span><br><span>ion considering municipal bonds as a&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;High Qu=</span><br><span>ality Liquid Asset (&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;span style=3D3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;HQLA) =3DE2=3D80=3D93=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt; a particularly contentious issue because of the disagreement over h=</span><br><span>ow flexi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ble these liquidity rules should be from a syste=</span><br><span>mic risk perspective.&amp;amp;nbsp;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;l=</span><br><span>t;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;b style=3D3D"=</span><br><span>bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;Positions T=</span><br><span>aken to Date&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ass=3D3D"MsoNorm=</span><br><span>al" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-colo=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 255, 255, 0);"&amp;gt;The Caucus founders have oppo=</span><br><span>sed Obama=3DE2=3D80=3D99s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 2015 proposal to cap municipal=</span><br><span>bond tax exemption at 28 percent. Rep. Hultg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ren is also=</span><br><span>a co-sponsor of HR 2209 =3DE2=3D80=3D93 the bill to set the liquidity f=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;or municipal bond assets at Level 2A (see Update, Feb. 18).&amp;=</span><br><span>amp;nbsp; Hultgren s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aid the liquidity rules are an examp=</span><br><span>le of how regulators misunderstand munic=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ipal bonds, spec=</span><br><span>ifically the frequent serial structure of the their issuance=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;s.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p xml:lang=3D3D"en-us" style=3D3D"box-sizin=</span><br><span>g: border-box; margin: 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;em 0px; padding: 0px; border: 0p=</span><br><span>x; vertical-align: baseline; word-wrap: brea=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;k-word; word=</span><br><span>-break: normal;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255,=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; 255, 0);"&amp;gt;Many investors flock to municipal bonds for se=</span><br><span>curity. But some fe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;deral regulators trying to shore up t=</span><br><span>he banking system aren't convinced the b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;onds would be ea=</span><br><span>sy to sell in a crisis.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p xml:lang=3D3D"=</span><br><span>en-us=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;" style=3D3D"box-sizing: border-box; margin: 1em 0p=</span><br><span>x; padding: 0px; border: 0p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;x; vertical-align: baseline; w=</span><br><span>ord-wrap: break-word; word-break: normal;"&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;Division of=</span><br><span>Opinio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;lt;/b&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p xml:lang=3D=</span><br><span>3D"en-us" style=3D3D"box-sizing: border-box; margi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: 1em=</span><br><span>0px; padding: 0px; border: 0px; vertical-align: baseline; word-wrap: b=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;reak-word; word-break: normal;"&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>ound-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;Division of opin=</span><br><span>ion on HR 2099 falls along unusual lines, with=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Wall Stre=</span><br><span>et, Congress and municipal officials challenging bank regulators' s=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;kepticism toward municipal debt. &amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt=</span><br></blockquote><span>;&amp;lt;span style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 25=</span><br><span>5, 0);"&amp;gt;At issue are new rules aimed at ensuring b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ank=</span><br><span>s can raise enough cash during a financial-market meltdown to fund their o=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;perations for 30 days. The requirements mean banks have to h=</span><br><span>old more cash or=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; securities that are easily sellable.&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p xml:lang=3D3D"en-=</span><br><span>us" style=3D3D"bo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;x-sizing: border-box; margin: 1em 0px; p=</span><br><span>adding: 0px; border: 0px; vertical-a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lign: baseline; word=</span><br><span>-wrap: break-word; word-break: normal;"&amp;gt;&amp;lt;span style=3D3D"b=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;ackground-color: rgba(255, 255, 255, 0);"&amp;gt;Regulators don't think i=</span><br><span>t is the p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lace of Congress to second guess how they size=</span><br><span>up securities. Fed Chairwoman=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Janet Yellen, at a congre=</span><br><span>ssional hearing Feb. 11, said legislation would "i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nterfe=</span><br><span>re with our supervisory judgments."&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cl=</span><br><span>ass=3D3D"MsoNor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0=</span><br><span>);"&amp;gt;Big banks such as Citigroup Inc. and Wells Fargo &amp;amp;amp; Co. hav=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;e sprung into action in lobbying Congress, along with munic=</span><br><span>ipal leaders who f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ret the rules will diminish bank bond-=</span><br><span>buying which could raise borrowing cos=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ts on infrastructu=</span><br><span>re projects.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"ma=</span><br><span>r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;Hu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ltgren also said the cau=</span><br><span>cus will work to update the number of projects that c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oul=</span><br><span>d be financed by qualified small issue manufacturing bonds, a type of pri=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;vate-activity bond whose proceeds can be used to finance ma=</span><br><span>nufacturing facil=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ities for small- and mid-sized manufact=</span><br><span>urers. The tax code provisions on sma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ll industrial devel=</span><br><span>opment bonds have not been changed since the 1980s, he sa=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>id. Hultgren sponsored a bill last year entitled =3DE2=3D80=3D9CThe Moderni=</span><br></blockquote><span>zing Am=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;erican Manufacturing Bonds Act,=3DE2=3D80=3D9D wh=</span><br><span>ich was focused on expanding oppo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rtunities for qualified=</span><br><span>small issue manufacturing bonds, particularly by cha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ngi=</span><br><span>ng the national volume cap set by Congress.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p class=3D3D"M=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;soNormal" style=3D3D"margin: 12pt 0in;=</span><br><span>"&amp;gt;&amp;lt;b style=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 2=</span><br><span>55, 0);"&amp;gt;What can be achieved?&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNor=</span><br><span>mal"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;Caucuses such as this one=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; don't have th=</span><br><span>e best reputation when it comes to getting things done. &amp;amp;nbsp;=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;But rules relating to the liquidity value of capital is one of the=</span><br><span>few polic=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y &amp;amp;nbsp;areas of any kind where there is b=</span><br><span>ipartisan agreement. &amp;amp;nbsp;Municip=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al bonds, in parti=</span><br><span>cular, have a universal appeal because of their direct lin=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;k to local and state infrastructure projects. &amp;amp;nbsp;At the very least,=</span><br><span>the c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aucus will spark some discussion about the best wa=</span><br><span>y to both reform existing m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ethods for funding infrastruc=</span><br><span>ture investment and find new ways to fund it.&amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"bac=</span><br><span>kground-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;_____________=</span><br><span>____________________&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); 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&amp;amp;nbsp; Thurs -- Municipal Finance Caucu=</span><br><span>s&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ckground-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Fri=</span><br><span>-- Puerto Rico=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=</span><br><span>=3D80=3DA2 &amp;amp;nbsp; Mon -- FY17&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp=</span><br><span>;nbsp; Tu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es -- 13 D Regs&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D8=</span><br><span>0=3DA2 &amp;amp;nbsp; Wed -- &amp;amp;nbsp;TBD&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p; &amp;amp;n=</span><br><span>bsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; SBC Nominations&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 25=</span><br><span>5, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; ERI/H=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ousing&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"&amp;gt;=</span><br><span>&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Intl Tax Reform&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span style=3D3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;=3DA2 &amp;amp;nbsp; EU/US Derivatives Deal&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>div&amp;gt;&amp;lt;span style=3D3D"background=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Pension Cri=</span><br><span>si=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Municipal Finance=</span><br><span>Caucus &amp;amp;nbsp;(Mar. 4)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;d=3D&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;span&gt;iv&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;Flint Bill: &amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp;Provisions &amp;amp;amp; Prospec=</span><br><span>ts (Mar. 2)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;Top Tax B=</span><br><span>ills Handicapped &amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(Feb. 24)&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;Bigger than the Budget Battle &amp;amp;nbsp;(Feb. 23)&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;Infrastructure Fi=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;nance Update &amp;amp;nbsp;(=</span><br><span>Feb. 18)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=</span><br><span>ckgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;Does DFA Fai=</span><br><span>l on Too Big to Fail? (Feb. 17=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;amp=</span><br><span>;nbsp;(Feb. 16)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;International Tax Status &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;(Feb. 11)&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(25=</span><br><span>5, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;The Fed Holds Steady &amp;amp;nbsp;(Feb=</span><br><span>. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Obama's FY17 Budget &amp;amp;nb=</span><br><span>sp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(Feb. 9)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;T=</span><br><span>ax Talk of the Town &amp;amp;nbsp;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;Defending Dodd-Frank &amp;amp;nbsp;(Feb. 2)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;br&amp;gt;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;Fi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;scal Pol: Deficit/Debt Dormancy (Jan. 28)&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ckground-color: rgba(255, 255, 255, 0);"&amp;gt;The Fed Holds Rates, for Now &amp;a=</span><br></blockquote><span>mp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0=</span><br><span>);"&amp;gt;Debate Myths Challenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;&amp;lt;span styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;Regulating the Regulators &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;=</span><br><span>(Jan. 21)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-=</span><br><span>color: rgba(255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 0);"&amp;gt;Sanders' Tax/Healthca=</span><br><span>re Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;HR=</span><br><span>C's Tax Policy &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;(Jan. 17)&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;, 255, 0);"&amp;gt;2016 Tax Agenda on the Hill &amp;amp;nbsp;(Jan. 16)&amp;lt;/sp=</span><br></blockquote><span>an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;Glass-Steagall, Take 2=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; &amp;amp;nbsp;(Jan. 13)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 255, 0);"&amp;gt;2016 Ta=</span><br><span>x Policy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=</span><br><span>an=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;Sanders Proposals/GS &amp;amp;a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mp; TBTF (Jan. 7)&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;Sanders' Fin Reg Proposals &amp;amp;nbsp;(J=</span><br><span>an. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Year-End Review: Fi=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;scal Policy (Jan. 1) &amp;amp;nbsp;Year-End Review: Fin. Reg.&amp;amp=</span><br><span>;nbsp;&amp;amp;nbsp;(Dec. 29&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;On Mar 2, 2016,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; at 9:39 PM, Dana &amp;=</span><br><span>amp;lt;&amp;lt;a href=3D3D"&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;mailto:danach=</span><br><span><a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;"&amp;gt;danachasin@gma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;a href=3D"<a href="http://i=">http://i=</a></span><br><span><a href="http://l.com">l.com</a>"&gt;<a href="http://il.com">il.com</a>&lt;/a&gt;&amp;lt;/a&amp;gt;&amp;amp;gt; wrote:&amp;lt;br&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;l=</span><br><span>t;blockquote type=3D3D"cite"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>-equiv=3D3D"content-type" content=3D3D"text/html; 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charset=3D3Dutf-8"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;me=</span><br><span>ta http-equiv=3D3D"content-type" content=3D3D"t=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;s=</span><br><span>pan&gt;ext/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;content-type=</span><br><span>" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt=</span><br><span>;meta http-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;=</span><br><span>lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=</span><br><span>v&amp;gt;&amp;lt;meta http-equi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v=3D3D"content-type" content=3D3D=</span><br><span>"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" c=</span><br><span>ontent=3D3D"text/html; charset=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;utf-8"&amp;gt;&amp;lt;div&amp;gt;=</span><br><span>&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;n-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>div&amp;gt;&amp;lt;span style=3D3D"text-d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ecoration: -webkit-lett=</span><br><span>erpress;"&amp;gt;Mike &amp;amp;amp; Co. --&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;di=</span><br><span>v sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"text-decoration: -webkit-letterpress;"&amp;gt;&amp;=</span><br><span>lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"text-de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;coration:=</span><br><span>-webkit-letterpress;"&amp;gt;I hope everyone's had a chance to reflect on=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; the magnitude of yesterday's hard fought primary wins -- with=</span><br><span>gratitude to t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hose who toiled in the field.&amp;amp;nbsp;&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div style=3D3D"text-decoration: -web=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kit-le=</span><br><span>tterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"text-decoration: -we=</span><br><span>bkit-letterpre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss;"&amp;gt;On Saturday night, the campaign de=</span><br><span>bate turns to Flint, Michigan -- to t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he town and the iss=</span><br><span>ues it has come to symbolize. &amp;amp;nbsp; The town's water con=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;tamination and related problems finally move center stage.&amp;amp;nbsp;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;div s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"text-decoration: -webkit-let=</span><br><span>terpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"text-=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;decoration: -webkit-letterpress;"&amp;gt;Congress has moved with uncommon al=</span><br><span>acrity a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd bipartisanship in recent weeks on legislation=</span><br><span>to direct funding to addres=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s the water issue in Flint a=</span><br><span>nd elsewhere. &amp;amp;nbsp; Here, we look at the bill's=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; pro=</span><br><span>visions, its funding steam, and its prospects. &amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div=</span><br><span>style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"text-decoration: -webkit-letterpress;"&amp;gt;&amp;l=</span><br><span>t;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"text-decorat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion: -=</span><br><span>webkit-letterpress;"&amp;gt;Best,&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"text-decoration:=</span><br><span>-webkit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div s=</span><br><span>tyle=3D3D"text-decoration: -webkit-letterpress;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;Dana=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt=</span><br><span>;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div style=3D3D"text-decoration: -=</span><br><span>webkit-letterpress;"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;hr style=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;=3D3D"box-sizing: content-box; border-style: solid; border-colo=</span><br><span>r: gray; height=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0px;"&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/d=</span><br><span>iv&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"text-decoration: -webkit-lette=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;rpress;"&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt=</span><br></blockquote><span>;p class=3D3D"MsoNormal" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-bottom: 0.000=</span><br><span>1pt;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgba(255, 255, 255=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;The Flint Bill -- Provisions &amp;amp;amp; Prospects&amp;lt=</span><br><span>;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"M=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;soNormal" s=</span><br><span>tyle=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(255, 255, 255, 0);"&amp;gt;A bipartisan deal has been re=</span><br><span>ached in the Senate l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ast week to aid the beleaguered cit=</span><br><span>y of Flint, Michigan as it tries to remed=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y its drinking w=</span><br><span>ater issues.&amp;amp;nbsp; Sen. Inhofe, the lead GOP Senator on the b=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;ill, called it =3DE2=3D80=3D9Ccommon-sense," and noted that the spe=</span><br><span>nding is alread=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y programmed and involves no supplemental=</span><br><span>appropriation. &amp;amp;nbsp; The bill may=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; be ready to move=</span><br><span>forward after Sen. Cruz lifted a hold he had placed on the=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt; bill last week. &amp;amp;nbsp;Sen. Mike Lee is still a hold-out.&amp;amp;nbsp;&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; class=3D3D"MsoNormal" style=3D=</span><br><span>3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>round-color: rgba(255, 255, 255, 0);"&amp;gt;The bill provides $250 million to a=</span><br></blockquote><span>ssi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;st the residents of Flint, Michigan and other America=</span><br><span>n cities experiencing c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ritical problems with their water=</span><br><span>supplies by&amp;amp;nbsp;increasing funding for Dr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;inking Wa=</span><br><span>ter Act State Revolving Funds and provide start-up funding for the n=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ew Water Infrastructure Finance and Innovation Act. &amp;amp;nbsp;It=</span><br><span>also provides:&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"M=</span><br><span>soNormal" style=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;=</span><br><span>amp;nbsp; $100 mill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion for Drinking Water State Revolvin=</span><br><span>g Funds (SRFs) accessible by any state w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ith a drinking w=</span><br><span>ater emergency.&amp;amp;nbsp; It requires states to submit plans exp=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;laining how the money will be spent to address the emergency before f=</span><br><span>unding i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s provided. &amp;amp;nbsp;&amp;amp;nbsp;Funds that remai=</span><br><span>n after 18 months will be distribute=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d to all states unde=</span><br><span>r the existing SRF formula.&amp;amp;nbsp;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=</span><br><span>lass=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"background-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; $70 million in funding to b=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ack secured loans made under the new Water Infrastructure Finan=</span><br><span>ce and Innova=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion Act (WIFIA).&amp;amp;nbsp; A federal inves=</span><br><span>tment of $70 million could support se=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cured loans of up t=</span><br><span>o $4.2 billion to address water and wastewater infrastruc=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ture needs across the country, according to Sen. Inhofe=3DE2=3D80=3D99s off=</span><br></blockquote><span>ice.&amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp; All states and all communities with clean=</span><br><span>water and drinking water infra=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;structure needs are eligi=</span><br><span>ble for this assistance.&amp;amp;nbsp;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&amp;=</span><br><span>gt;&amp;lt;span style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; $50 million for various i=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;n authorized health programs for national use to address and prevent=</span><br><span>impacts=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; from exposure to lead.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"marg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in-bo=</span><br><span>ttom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255=</span><br><span>, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;&amp;lt;b&amp;gt;Where will the money come from? &amp;amp;=</span><br><span>nbsp;&amp;amp;nbsp;&amp;lt;/b&amp;gt;The package has been f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ully paid=</span><br><span>for -- it redirects appropriations by taking funds from the Advanc=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;ed Technology Vehicles Manufacturing (ATVM) Fund, which offers lo=</span><br></blockquote><span>ans for aut=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o companies.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.=</span><br><span>0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;&amp;lt;b&amp;gt;Does t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hat matter?&amp;lt;/b&amp;gt;&amp;amp;nbsp; &amp;amp;nb=</span><br><span>sp;Per Sen. Inhofe =3DE2=3D80=3D9C[the ATVM is] a failed p=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;rogram that hasn=3DE2=3D80=3D99t been used in more than a year and has onl=</span><br><span>y issued=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; five loans since 2008."&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;=</span><br><span>lt;p class=3D3D"MsoNormal" style=3D3D"margin-bo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ttom: 0.0=</span><br><span>001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt=</span><br><span>;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b&amp;gt;More on ATVM&amp;lt;/b&amp;gt;: The ATVM program is au=</span><br><span>thorized to award up to $25 billio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n in loans; there is n=</span><br><span>o deadline for completing such loan commitments. Congr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es=</span><br><span>s funded the program in 2009, when it appropriated $7.5 billion to cover t=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;he subsidy cost for the $25 billion in loans, as well as $1=</span><br><span>0 million for pro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gram implementation. Since the start of=</span><br><span>the program, DOE has awarded $8.4 bi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;llion in loans to f=</span><br><span>ive companies. As of January 2015, ATVM has $16.6 billion=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>in remaining loan authority. No new loans have been made since 2011. Two c=</span><br></blockquote><span>o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mpanies =3DE2=3D80=3D94 Fisker and the Vehicle Producti=</span><br><span>on Group =3DE2=3D80=3D94 were una=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ble to make payments on=</span><br><span>their loans, and DOE auctioned the loans off in the f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al=</span><br><span>l of 2013. Tesla paid off all of its loan in 2013, nine years ahead of sch=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;edule.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Mso=</span><br><span>Normal" style=3D3D"margin-bottom: 0.0001=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt;"&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;Criticism=</span><br><span>s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; of ATVM:&amp;amp;nbsp;&amp;lt;/b&amp;gt;The unobligated funds rema=</span><br><span>ining for the program have been=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; a point of contention in=</span><br><span>recent appropriations debates. The House has voted=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; seve=</span><br><span>ral times to transfer some of the unused appropriation for the ATVM sub=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;sidy costs to other purposes. None of these transfers were en=</span><br><span>acted. Other le=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gislators have sought to expand the progr=</span><br><span>am. Two recent federal reports call=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; for rescinding the p=</span><br><span>rogram=3DE2=3D80=3D99s unobligated balance: the FY2015 budget=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; resolution reported by the House Budget Committee calls for outright r=</span><br><span>escis=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sion, and an April 2014 GAO report recommends Congr=</span><br><span>ess consider taking&amp;lt;b&amp;gt;&amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp;&amp;lt;/b&amp;gt;the same=</span><br><span>step unless DOE can generate new demand for the program.&amp;lt;/sp=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;an&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom=</span><br><span>: 0.0001pt;"&amp;gt;&amp;lt;b style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;Legislative Strategy: &amp;amp;nbsp;&amp;amp;nbs=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;p;&amp;lt;/b&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255,=</span><br></blockquote><span>0);"&amp;gt;Architects o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f the bipartisan deal put out a hot=</span><br><span>line request to see if anyone would objec=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t to a series o=</span><br><span>f procedural moves that would split Flint aid off the energy b=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;ill (S. 2012), attach it to a House bill (H.R. 4470) sponsored by Reps=</span><br><span>. Dan K=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ildee and Fred Upton, allow voice votes on 30 ame=</span><br><span>ndments to the energy bill,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; and allow roll call votes on=</span><br><span>eight additional amendments. Michigan Sens. De=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bbie Stab=</span><br><span>enow and Gary Peters said Democrats are on board, but in order to a=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;chieve unanimous consent, Republicans need to sign on.&amp;amp;nbsp;&amp;=</span><br></blockquote><span>lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ass=3D3D"MsoNormal" style=3D=</span><br><span>3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;Will it pass?&amp;lt;/b&amp;gt;&amp;a=</span><br><span>mp;nbsp; The Flint pack=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;age and the energy bill amendment=</span><br><span>s would come to a vote only after the Senat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e gets unanim=</span><br><span>ous consent to some procedural maneuvers. Lee's hold went unnot=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;iced earlier when GOP presidential candidate Sen. Ted Cruz had a hold=</span><br></blockquote><span>of his=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; own, which he has now lifted. The Senate had hop=</span><br><span>ed to hold votes on Flint a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd end debate on the energy b=</span><br><span>ill as early as next week.&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nb=</span><br><span>sp; &amp;amp;nbsp; &amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbs=</span><br><span>p; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nb=</span><br><span>sp; &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbs=</span><br><span>p; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;sp=</span><br><span>an=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"Ms=</span><br><span>oNormal"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b&amp;gt;What=3DE2=3D80=3D99s Next?&amp;amp;nbsp;&amp;amp;nbsp=</span><br><span>;&amp;amp;nbsp;&amp;lt;/b&amp;gt;Sen. Stabenow, a key leader on t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he b=</span><br><span>ill, predicted that =3DE2=3D80=3D9Cone way or another=3DE2=3D80=3D9D the pac=</span><br><span>kage wou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ld be voted on in the Senate this week.&amp;amp;nbsp=</span><br><span>; And while&amp;amp;nbsp;the House hasn'=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t decided what it wi=</span><br><span>ll do if the Flint bill clears the Senate, Energy and Co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>mmerce Committee Chairman Fred Upton said it would move quickly.&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/p&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;The O=</span><br><span>bama administration, which declared Flint a federal emergency in Ja=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;nuary freeing up much-needed funds for the distressed city, has n=</span><br></blockquote><span>ot issued a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n official stance on the Flint deal.&amp;amp;nbsp=</span><br><span>; Early in the year the President a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lso made available to=</span><br><span>the state of Michigan $80 million from a revolving fun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d=</span><br><span>for infrastructure repair and improvement.&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;A numb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=</span><br><span>r of important events are scheduled for the month of March, listed below.&amp;lt=</span><br><span>;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);=</span><br><span>"&amp;gt;&amp;amp;nbsp; =3DE2=3D80=3DA2&amp;amp;nbsp; &amp;amp;nbsp;&amp;lt;a href=3D3D"x-apple-=</span><br><span>data-detectors=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;://15" x-apple-data-detectors=3D3D"true" x=</span><br><span>-apple-data-detectors-type=3D3D"calend=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ar-event" x-apple-=</span><br><span>data-detectors-result=3D3D"15"&amp;gt;March 3&amp;lt;/a&amp;gt;&amp;amp;nbsp;--&amp;amp;nbsp;Fli=</span><br><span>n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t is supposed to begin its lead service line replacemen=</span><br><span>t project.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNor=</span><br><span>mal"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;);"&amp;gt;&amp;amp;nbsp; =3DE2=3D80=3DA2&amp;amp;nbsp; &amp;amp;nbsp;&amp;lt;a href=3D=</span><br></blockquote><span>3D"x-apple-data-detectors://16" x-a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pple-data-detectors=3D=</span><br><span>3D"true" x-apple-data-detectors-type=3D3D"calendar-event" x=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;-apple-data-detectors-result=3D3D"16"&amp;gt;March 6&amp;lt;/a&amp;gt;&amp;amp;nbsp;--&amp;am=</span><br><span>p;nbsp;The 7&amp;lt;sup&amp;gt;th&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;up&amp;gt;&amp;amp;nbsp;Democrati=</span><br><span>c debate will take place in the city of Flint, MI.&amp;amp;nbsp;&amp;amp;n=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;bsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;g=</span><br><span>t;&amp;amp;nbsp; =3DE2=3D80=3DA2 &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;b style=3D3D"backgro=</span><br><span>und-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;a href=3D3D"x=</span><br><span>-apple-data-detectors://17" x-apple=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-data-detectors=3D3D"=</span><br><span>true" x-apple-data-detectors-type=3D3D"calendar-event" x-ap=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ple-data-detectors-result=3D3D"17"&amp;gt;March 15&amp;lt;/a&amp;gt;&amp;amp;nbsp;--&amp;amp;=</span><br><span>nbsp;&amp;lt;/b&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;House Committee on Oversig=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ht and Government Reform will hold its next hearing on the Flint crisis=</span><br><span>.&amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p; On schedule is testimony on the Safe Drinkin=</span><br><span>g Water Act (SDWA) by various=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; policy professionals.&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"backg=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; =3DE2=3D=</span><br><span>80=3DA2&amp;amp;nbsp; &amp;amp;nbsp;&amp;lt;a href=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"x-apple-data=</span><br><span>-detectors://18" x-apple-data-detectors=3D3D"true" x-apple-data-d=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;etectors-type=3D3D"calendar-event" x-apple-data-detectors-result=3D=</span><br><span>3D"18"&amp;gt;March 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;7&amp;lt;/a&amp;gt;&amp;amp;nbsp;--&amp;amp;nbsp;&amp;lt;u&amp;=</span><br><span>gt;&amp;amp;nbsp;&amp;lt;/u&amp;gt;Hearings resume on SDWA oversight, with Mich=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;igan Governor Rick Snyder and EPA Administrator Gina McCarthy sch=</span><br></blockquote><span>eduled to t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;estify.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;hr style=3D3D"box-sizing: content-box; borde=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;r-style: solid; border-color: gray; height: 0px;"&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"MsoNormal"&amp;gt;&amp;l=</span><br><span>t;b&amp;gt;&amp;lt;u&amp;gt;Upcoming/Recent Updates&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Wed -- Flint&amp;amp;nbsp;&amp;lt;/div&amp;=</span><br><span>gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp; Thurs -- Munici=</span><br><span>pal Finance Caucus&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp; Fri -- P=</span><br><span>u=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;erto Rico&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;span s=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Budget Irresolution&amp;lt;/span=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;&amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;nbsp; &amp;amp;nbsp;=</span><br><span>=3DE2=3D80=3DA2 &amp;amp;nbsp;13 D Regs&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; ERI/Housi=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;ng&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"=</span><br><span>background-color: rgba(255, 255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;&amp;amp;nbsp;=</span><br><span>&amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Intl Tax Reform&amp;lt;/span&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;&amp;lt;span=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;nbsp; EU/US Derivatives Deal&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp; Pension Crisis&amp;lt;/sp=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;Flint Bill: &amp;amp;nbsp;Provisions &amp;amp;amp; Prospects (M=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ar. 2)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Top Tax Bills Handicapped &amp;amp;n=</span><br><span>bsp;(Feb. 24)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;B=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;igger than the Budg=</span><br><span>et Battle &amp;amp;nbsp;(Feb. 23)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;Infrastructur=</span><br><span>e Fi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nance Update &amp;amp;nbsp;(Feb. 18)&amp;amp;nbsp;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;Does DFA Fail on Too Big to Fai=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l? (Feb. 17)=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Below the Radar/Customs Bill &amp;amp;nbsp;(Feb. 16)&amp;amp;=</span><br><span>nbsp;&amp;lt;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div&amp;gt;International Tax Status &amp;am=</span><br><span>p;nbsp;(Feb. 11)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;The Fed Holds Ste=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ady &amp;amp;nbsp;(Feb. 10)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Obama's FY17 Budget &amp;amp;nbsp;=</span><br><span>(Feb. 9)&amp;amp;nbsp;&amp;lt;div&amp;gt;T=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ax Talk of the Town &amp;amp;n=</span><br><span>bsp;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Defending Dodd-Frank &amp;amp;nbsp;(Feb. 2=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: Deficit/Debt Dormancy (Jan.=</span><br><span>28)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);"&amp;gt;The Fed Holds Rates, for Now &amp;amp;nb=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Debate Myth=</span><br><span>s Challenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;R=</span><br><span>egulating the Regulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' T=</span><br><span>ax/Healthc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;are Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;&amp;lt;span style=3D3D"text-decoration: -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lette=</span><br><span>rpress;"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan. 17)&amp;lt;/span&amp;gt;&amp;lt;br&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;2016 Tax Agend=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a on the Hill &amp;amp;nbsp;(Jan. 16)&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;div&amp;gt;Glass-Steagall, Take 2 &amp;amp;nbsp;(Jan. 1=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;3)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&amp;gt;2016 T=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ax Policy Issues &amp;amp;nbsp;(Jan=</span><br><span>. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-c=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0);"&amp;gt;Sanders Proposals/GS &amp;amp;=</span><br><span>amp; TBTF (Jan. 7)&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;l=</span><br><span>t;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Sande=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;rs' Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;amp;=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;Year-E=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd Review: Fin. Reg.&amp;amp;nbsp;=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;55, 255, 0);"&amp;gt;&amp;amp;nbsp;(Dec. 29) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Omnibus Review (Dec. 15)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span styl=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Omnibu=</span><br><span>s Situation &amp;amp;nbsp;(Dec=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;FY 2016 Omnibus Talks (Dec. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;Tax Extender N=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;egotiations &amp;amp;nb=</span><br><span>sp;(Dec. 6)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0);"&amp;gt;Brown on H=</span><br><span>FT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;Shelby 2.0 Update=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt; &amp;amp;nbsp;(De=</span><br><span>c. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;spa=</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p style=3D3D"box-sizing: border-box; mar=</span><br><span>gin: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;px;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p style=3D3D"box-s=</span><br><span>izing: border-box; margin: 0px;"&amp;gt;Mike &amp;amp;amp; Co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.&amp;a=</span><br><span>mp;nbsp;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;This ha=</span><br><span>s been a busy week in Washington especially on t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he tax f=</span><br><span>ront, with more to follow. &amp;amp;nbsp;We've already seen a number of hear=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;ings and developments on the most salient current tax bills a=</span><br><span>nd related prop=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;osals in the last two days, which are &amp;am=</span><br><span>p;nbsp;itemized and vetted for viabilit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y below.&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-=</span><br><span>color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;Tomorrow, an assessme=</span><br><span>nt of which of these, as well a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s "must-pass" tax items s=</span><br><span>uch as the expiring extenders, will make it to Obam=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a's d=</span><br><span>esk by year-end and a review of&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-c=</span><br><span>olor: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rgba(2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 25=</span><br><span>5, 0);"&amp;gt;Brookings' panel discussion,&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ackground-color: rgba(255, 255, 255, 0);"&amp;gt;"Tax=</span><br><span>policy in 2016: What's new an=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d what's next," with&amp;lt;/s=</span><br><span>pan&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;55, 0);"&amp;gt;&amp;amp;nbsp;Ways and Means Chair Kevin Brady&amp;amp;nbsp;&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;span style=3D3D"b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ackground-color: rgba(255, 25=</span><br><span>5, 255, 0);"&amp;gt;and Senate Finance ranking member R=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on Wy=</span><br><span>den.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;Best,&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=</span><br><span>&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Dana&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;_________________=</span><br><span>_____________________&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;p class=3D3D"s2" style=3D3D"margin-top: 0px; marg=</span><br><span>in-bottom: 0px;"&amp;gt;&amp;lt;span class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"s4" style=3D3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;=3DE2=3D80=3DA2&amp;amp;n=</span><br><span>bs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s5" style=3D3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;); font-weight: bold;=</span><br><span>"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;&amp;lt;u&amp;gt;International Tax Ref=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;orm&amp;lt;/u&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s=</span><br><span>6" style=3D3D"background-color: rgba(255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 255, 0);"=</span><br><span>&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;&amp;amp;nbsp;--&amp;lt;/span&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/p&amp;gt;&amp;lt;p cl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ass=3D3D"s2" style=3D3D"margin-top:=</span><br><span>0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s6"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span class=3D3D"b=</span><br><span>umpedFo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nt20"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/p&amp;gt;&amp;lt;p class=3D3D"s2" style=3D3D"margin-top: 0px; margin=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;-bottom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s6" style=3D3D"background-color: r=</span><br><span>gba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;span class=3D3D"bumpedFon=</span><br><span>t20"&amp;gt;Probably the most likely tax legislati=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on to pass=</span><br><span>in 2016, even though it's still called unlikely by key policymake=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;rs. &amp;amp;nbsp;The two parties will have difficulty coming to an ag=</span><br><span>reement on fir=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;st what to do and then how to do it.&amp;amp;n=</span><br><span>bsp; Narrower legislation is more like=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ly to succeed than=</span><br><span>comprehensive reform. &amp;amp;nbsp;Most viable bills in this are=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;a:&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s2" style=3D3D"=</span><br><span>margin-top: 0px; margin-bottom:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0px;"&amp;gt;&amp;lt;span class=3D=</span><br><span>3D"s6"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20" style=3D3D"background-c=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/spa=</span><br></blockquote><span>n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s8" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"margin-to=</span><br><span>p: 0px; margin-bottom: 0px; margin-left: 36px;"&amp;gt;&amp;lt;span style=3D3D"bac=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span class=3D=</span><br><span>3D"s5" style=3D3D"font-wei=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ght: bold;"&amp;gt;&amp;lt;span class=3D=</span><br><span>3D"bumpedFont20"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Earnings Stripping -=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;- &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;On the eve of today=3DE2=3D8=</span><br><span>0=3D99s Ways and Means hearing r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;egarding international t=</span><br><span>ax reform, &amp;amp;nbsp;ranking member&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span cl=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ass=3D3D"s6" style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;&amp;lt;span class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"bumpedFont20"&amp;gt;Chris Van&amp;am=</span><br><span>p;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s6" style=3D3D"back=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;ground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span class=3D3=</span><br><span>D"bumpedFont20"&amp;gt;Hollen&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;s=</span><br><span>pan class=3D3D"s6" style=3D3D"background-color: rgba(255, 255, 255=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;&amp;amp;nbsp;and senio=</span><br><span>r member Sander Levin off=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ered bills to constrain the pra=</span><br><span>ctice whereby foreign parent companies extend=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; large loan=</span><br><span>s to their newly acquired U.S. partners and take advantage of the=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt; tax-deductible status of interest payment arrangement. &amp;amp;nbsp;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s8" s=</span><br><span>tyle=3D3D"margin-top: 0px; margin-bottom: 0px; margin-lef=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>t: 36px;"&amp;gt;&amp;lt;span class=3D3D"s6"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20" s=</span><br></blockquote><span>tyle=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s8" styl=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"margin-top: 0px; margin-bottom: 0px; margin-left: 36px=</span><br><span>;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&amp;gt;&amp;lt;span class=3D3D"s5" style=3D3D"font=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-=</span><br><span>weight: bold;"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;=3DE2=3D80=3DA2. Exit=</span><br><span>Tax Bills -- &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;sp=</span><br><span>an class=3D3D"s6"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;Bills seek=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ing to reduce corporate inversions by making them too expensive t=</span><br><span>o make busi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ness sense are likely to be introduced before=</span><br><span>next recess.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s8" style=3D3D"margin-top: 0px; margin-bott=</span><br><span>om: 0px; m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-left: 36px;"&amp;gt;&amp;lt;span class=3D3D"s5" s=</span><br><span>tyle=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0); font=</span><br><span>-weight: bold;"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s8" style=3D3=</span><br><span>D"margin-top: 0px; margin-bottom: 0px; margin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-left: 36px=</span><br><span>;"&amp;gt;&amp;lt;span class=3D3D"s5" style=3D3D"background-color: rgba(255, 255, 2=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;&amp;lt;b&amp;gt;=3D=</span><br><span>E2=3D80=3DA2 &amp;amp;nbsp;Repatriation -- &amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp;&amp;lt;/b&amp;=</span><br><span>gt;Ryan and Schumer&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s=</span><br><span>6" style=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;have talk=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ed up t=</span><br><span>he idea of introducing legislation to repatriate U.S. multinational p=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;rofits that are held abroad.&amp;amp;nbsp; A compromise will have t=</span><br><span>o be struck betwe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;en Democrats seeking reduced tax levels=</span><br><span>for this purpose and Republicans who=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; cite moral hazard.=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s5" style=3D3D"back=</span><br><span>grou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span class=</span><br><span>=3D3D"bumpedFont20"&amp;gt;The Obama&amp;lt;b&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;amp;nbsp;&amp;lt;/=</span><br><span>b&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s6" style=3D3D"background=</span><br><span>-color: rgba(2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 255, 0);"&amp;gt;&amp;lt;span class=3D3D"=</span><br><span>bumpedFont20"&amp;gt;budget for FY2017 includes a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; proposal t=</span><br><span>o allow overseas profits to come home at a special 14 percent tra=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;te, and all overseas profits thereafter be taxed at 19 percent.&amp;amp=</span><br><span>;nbsp;&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D=</span><br><span>3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nb=</span><br><span>sp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lass=3D3D"s2" style=3D3=</span><br><span>D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s9=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;" style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span=</span><br><span>class=3D3D"bumpedFo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nt20"&amp;gt;&amp;lt;b&amp;gt;=3DE2=3D80=3DA2 &amp;a=</span><br><span>mp;nbsp;&amp;lt;u&amp;gt;Broader&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;u&amp;gt;&amp;amp;nbsp;&amp;lt;/u&amp;gt;&amp;lt=</span><br><span>;b style=3D3D"text-dec=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oration: underline;"&amp;gt;Corporate T=</span><br><span>ax Reform&amp;lt;/b&amp;gt;&amp;lt;b&amp;gt;&amp;amp;nbsp; -- &amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/b&amp;gt;&amp;lt;=</span><br><span>/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s2" sty=</span><br><span>le=3D3D"margin-top: 0px; margin-bottom: 0px=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;lt;spa=</span><br><span>n class=3D3D"s10" style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;=</span><br><span>lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span class=3D3D"bumpedFont20"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s2" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;argin-top: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s10" style=3D=</span><br><span>3D"background=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;spa=</span><br><span>n class=3D3D"bumpedFont20"&amp;gt;Any successful=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; across the b=</span><br><span>oard corporate tax reform would almost have to lower the nomina=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;l corporate tax rate of 35 percent. &amp;amp;nbsp;-- the highest in the w=</span><br></blockquote><span>orld. &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;Republicans are adamant that the high ra=</span><br><span>te yields corporate inversions.&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;span class=3D3D"s10" style=3D3D"background-color: rgba(255, 255, 255,=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;&amp;amp;nbsp;&amp;am=</span><br><span>p;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s10=</span><br><span>" style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span class=3D=</span><br><span>3D"bump=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;edFont20"&amp;gt;Ways and Means chair Brady&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s9" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"backg=</span><br><span>round-color: rgba(255, 255, 255, 0); font-weight: bold;"&amp;gt;&amp;lt;span class=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"bumpedFont20"&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;span class=3D3D"s10" style=3D3D"background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;has pointed t=</span><br><span>o t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he corporate rate repeatedly as a sign that the U.S. h=</span><br><span>as a =3DE2=3D80=3D9Cbroken t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ax code that discourages inv=</span><br><span>estment and growth&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;11" style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;sp=</span><br><span>an class=3D3D"bumpe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;dFont20"&amp;gt;.=3DE2=3D80=3D9D&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s11" style=3D3D"background-col=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"=</span><br></blockquote><span>&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=</span><br><span>lass=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span s=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"s2" st=</span><br><span>yle=3D3D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>oun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;Brady has not ye=</span><br><span>t released his own reform b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill, but an op-ed of his publ=</span><br><span>ished this morning gives an indication of what i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t will i=</span><br><span>nclude: &amp;amp;nbsp;=3DE2=3D80=3D9C&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background=</span><br><span>-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;We must address the r=</span><br><span>eal root of the problem =3DE2=3D80=3D93 o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ur broken tax c=</span><br><span>ode that discourages investment and growth =3DE2=3D80=3DA6 Our&amp;amp;nbsp=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;;sky-high 35 percent corporate tax rate bears much of the bla=</span><br><span>me =3DE2=3D80=3DA6 We=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; cannot allow American taxpayers to=</span><br><span>foot the bill for tax revenue grabs in E=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;urope and elsew=</span><br><span>here.=3DE2=3D80=3D9D&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s2" style=3D3D"m=</span><br><span>argin-top:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;br&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s2" style=3D3D"margin-top: 0px; m=</span><br><span>argin-bot=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tom: 0px;"&amp;gt;&amp;lt;span style=3D3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Provisi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ons to look for:=</span><br><span>a lower overall corporate tax rate, language to address Eur=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;opean investigations on U.S. businesses dodging taxes abroad.&amp;amp;nbsp; T=</span><br><span>he bill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; likely won=3DE2=3D80=3D99t include language rest=</span><br><span>ricting inversions. &amp;amp;nbsp;&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;gt;&amp;lt=</span><br><span>;div dir=3D3D"ltr"&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0i=</span><br><span>n;"&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;&amp;lt;span class=3D3D"s10"&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan cl=</span><br><span>ass=3D3D"bumpedFont20"&amp;gt;Senate Finance chair Hatch&amp;lt;/span&amp;gt;&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;span cla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"s9" style=3D3D"font-weight: bold;"=</span><br><span>&amp;gt;&amp;lt;span class=3D3D"bumpedFont20"&amp;gt;&amp;amp;nbsp;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"s10"&amp;gt;&amp;lt;span class=3D3D"bumpedFo=</span><br><span>nt20"&amp;gt;has suggested w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;riting legislation to make divid=</span><br><span>ends tax deductible for corporations, elimin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ating the so=</span><br><span>-called =3DE2=3D80=3D9Cdouble taxation=3DE2=3D80=3D9D of hitting corporate e=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;arnings as well as dividend incomes from investors. &amp;amp=</span><br><span>;nbsp;The proposal faces=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; long odds.&amp;amp;nbsp;&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D"s2" style=</span><br><span>=3D3D"mar=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gin-top: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s2" style=3D3D"margin-top:=</span><br><span>0px; m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-bottom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s14" s=</span><br><span>tyle=3D3D"background-color: rgba(255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 255, 0);"&amp;gt;=</span><br><span>&amp;lt;b&amp;gt;=3DE2=3D80=3DA2&amp;amp;nbsp;&amp;lt;/b&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span c=</span><br><span>lass=3D3D"s14" style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0); font-weight: bold;"&amp;gt;&amp;lt;u&amp;gt;Earned-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Incom=</span><br><span>e Tax Credit&amp;lt;/u&amp;gt;&amp;amp;nbsp;(EITC) --&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;l=</span><br><span>t;p class=3D3D"s2" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"margin-top: 0px; margin-bo=</span><br><span>ttom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s15" style=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;l=</span><br><span>t;p class=3D3D"s2" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-top: 0px; margin-bo=</span><br><span>ttom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s15" style=3D3D"background=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;-color: rgba(255, 255, 255, 0);"&amp;gt;One tax provisions in the Obama FY1=</span><br><span>7 budget=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; that has been muted if not mooted this week is h=</span><br><span>is proposal to expand the E=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ITC for childless workers and=</span><br><span>create a $500 =3DE2=3D80=3D9Csecond earner=3DE2=3D80=3D9D t=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ax credit. &amp;amp;nbsp;The cost would be $150 billion over ten years.&amp;amp;=</span><br><span>nbsp;&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"s2" style=3D=</span><br><span>3D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s2" style=3D3D"margin-top: 0=</span><br><span>px; margin-bottom: 0px;"&amp;gt;&amp;lt;span style=3D3D"background=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;-color: rgba(255, 255, 255, 0);"&amp;gt;During his SOTU, Obama expressed his d=</span><br><span>esire=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; to work with Speaker Ryan on the issue: &amp;amp;nbsp;=</span><br><span>=3DE2=3D80=3D9CI also know Speaker R=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yan has talked about=</span><br><span>his interest in tackling poverty. America is about givi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ng everybody willing to work a chance, a hand up. And I=3DE2=3D80=3D99d welc=</span><br><span>ome a s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;erious discussion about strategies we can all sup=</span><br><span>port, like expanding tax cu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ts for low-income workers who=</span><br><span>don't have children.=3DE2=3D80=3D9D&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;=</span><br><span>&amp;lt;span class=3D3D"s19"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;=</span><br><span>&amp;lt;span class=3D3D"s19" s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;The credit is a long-stan=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ding d=</span><br><span>arling of both progressives and the GOP establishment. Ryan and Presid=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;ent Obama support extending it to childless workers. &amp;amp;nbsp=</span><br><span>;But they face res=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;istance from&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;span class=3D3D"s19" style=3D3D"background-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(=</span><br><span>255, 255, 255, 0);"&amp;gt;not just the hard right but from Sen. Hatch, who say i=</span><br><span>t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3DE2=3D80=3D99s not =3DE2=3D80=3D9Cnecessary=3DE2=3D80=</span><br><span>=3D9D to expand the break.&amp;amp;nbsp;&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;=</span><br><span>gt;&amp;lt;p class=3D3D"s2" style=3D3D"margin-top: 0px; margin-bottom: 0px;"&amp;gt;=</span><br><span>&amp;lt;span cla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"s19" style=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p&amp;=</span><br><span>gt;&amp;lt;div class=3D3D"MsoNormal" align=3D3D"center" style=3D3D"text-decorati=</span><br><span>on: -webki=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-letterpress; text-align: center;"&amp;gt;&amp;lt;hr s=</span><br><span>ize=3D3D"2" width=3D3D"100%" align=3D3D"c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;enter" style=3D=</span><br><span>3D"text-align: start;"&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D"s2" style=3D3D"margin=</span><br><span>-to=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p: 0px; margin-bottom: 0px;"&amp;gt;&amp;lt;span class=3D3D"s=</span><br><span>19" style=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);=</span><br><span>"&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rg=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;980392); text-decoration: -webkit-le=</span><br><span>tterpress;"&amp;gt;Upcoming/Recent Updates&amp;lt;/p&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;=</span><br><span>gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=3DE2=3D=</span><br><span>80=3DA2 &amp;amp;nbsp;Derivatives Agreement w. EU&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=</span><br><span>v&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;p;Budget (Ir)R=</span><br><span>esolution&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Puerto Rico&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3DA2 &amp;amp;nbsp;Econ. Revitali=</span><br><span>zation/Housing&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Top Ta=</span><br><span>x Bill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s Handicapped &amp;amp;nbsp;(Feb. 24)&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;Bigger than the Budget Battle &amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(Feb. 23)&amp;=</span><br><span>lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;Infrastructure Finance Update &amp;amp;nbsp;(Fe=</span><br><span>b. 18)&amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Does DFA Fail on T=</span><br><span>oo Big to Fail? (Feb. 17)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Below the R=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;adar/Customs Bill &amp;amp;nbsp;(Feb. 16)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Int=</span><br><span>ernational Tax Status &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;(Feb. 11)&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;div&amp;gt;The Fed Holds Steady &amp;amp;nbsp;(Feb. 10)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Obam=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;a's FY17 Budget &amp;amp;nbsp;(Feb. 9)&amp;amp;nbsp;&amp;lt;div&amp;gt;Tax T=</span><br><span>alk of the Town &amp;amp;nbsp;(Feb. 3)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;D=</span><br><span>efending Dodd-Frank &amp;amp;nbsp;(Feb. 2)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: Defic=</span><br><span>it/Deb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t Dormancy (Jan. 28)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"background-color: rgba(255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 0);"&amp;=</span><br><span>gt;The Fed Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;div&amp;gt;D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebate Myths Challenged &amp;amp;nbsp;(Jan. 25)&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div&amp;gt;Regulating the Regulators &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp=</span><br><span>;(Jan. 21)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' Tax/Healthcare Policy &amp;amp;nbsp;(J=</span><br><span>an 20)&amp;lt;/div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;amp;nbsp;(Jan. 17)&amp;lt=</span><br></blockquote><span>;/span&amp;gt;&amp;lt;br style=3D3D"color: rgba(0, 0, 0, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;span&gt;701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392=</span><br><span>);"&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"color: rgba(0, 0, 0, 0.701961)=</span><br><span>; -webkit-composition-fill-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(130, 98, 83, 0.09=</span><br><span>80392);"&amp;gt;2016 Tax Agenda on the Hill &amp;amp;nbsp;(Jan. 16)&amp;lt;/di=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=</span><br><span>mposition-fill-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(130, 98, 83, 0.0980392);"&amp;gt;=</span><br><span>Glass-Steagall, Take 2 &amp;amp;nbsp;(Jan. 13)&amp;lt;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;l=</span><br><span>t;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 255, 0);"&amp;gt;2016 Ta=</span><br><span>x Policy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div sty=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>ll-color: rgba(1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;30, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba(255, 255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;Sa=</span><br><span>nders Proposals/GS &amp;amp;amp; TBTF (Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div s=</span><br><span>tyle=3D3D"co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392);"&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Sa=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;nders' Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;div style=3D3D"color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: rgba(130, 98, 83, 0.09=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;80392);=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Year-=</span><br><span>End R=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eview: Fiscal Policy (Jan. 1) &amp;amp;nbsp;&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;span style=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;Year-End Review: Fin. Reg.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nb=</span><br><span>sp;(Dec. 29) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"=</span><br><span>background-color: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Review (Dec. 1=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Situation &amp;amp;nbsp;(Dec. 14)&amp;lt;/s=</span><br><span>pan&amp;gt;&amp;lt;/div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;FY 2016 Omnibus Talks (Dec. 10)&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(0, 0, 0, 0.7=</span><br><span>01961); -webkit-composition-fill-color: rgba(130, 98, 83=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;Cus=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;toms Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.70=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;1961)=</span><br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span=</span><br><span>s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;Tax Extender Negotiations=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;(Dec. 6)&amp;amp;nbsp;=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980=</span><br><span>392);"&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;Brown on HFT &amp;amp;nbsp;(Dec. 4)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-compositi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;nbsp;(Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 83, 0.0980392);=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;----&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>5=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p cla=</span><br><span>ss=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l=</span><br><span>or: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.701961); -webkit-composi=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion-fill-color: rgba(130, 98, 83, 0.0980392); text-decorat=</span><br><span>ion: -webkit-lett=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;erpress;"&amp;gt;Mike and Co. --&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: r=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255,=</span><br><span>0);"&amp;gt;The soap opera that is the federal budget mak=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in=</span><br><span>g process saw sone minor&amp;amp;nbsp;prima donna&amp;amp;nbsp;pratfalls this week.&amp;=</span><br><span>amp;nbsp; N=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;othing remotely on the scale of blocking the c=</span><br><span>onfirmation of a Supreme Justi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ce.&amp;amp;nbsp; But as Senat=</span><br><span>e Budget's ranking member Sen. Cardin warned at a brea=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kf=</span><br><span>ast today, you can forget regular order on the budget -- after the Preside=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;nt submits a nomination, all comity in the Senate will be g=</span><br><span>one until Electio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n Day.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;Det=</span><br><span>ails and the latest below.&amp;amp;nbsp; Taxes&amp;amp;nbsp;&amp;lt;span class=3D3D=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;"" tabindex=3D3D"0"&amp;gt;&amp;lt;span class=3D3D""&amp;gt;tomorrow (b&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/span&amp;gt;e still your hea=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rt, right?).&amp;amp=</span><br><span>;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: r=</span><br><span>gba(0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; text-decoration: -webkit-le=</span><br><span>tterpress;"&amp;gt;&amp;lt;span style=3D3D"background-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b=</span><br><span>a(255, 255, 255, 0);"&amp;gt;Best,&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNor=</span><br><span>mal" style=3D3D"color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(0, 0, 0, 0.701961); -webkit-=</span><br><span>composition-fill-color: rgba(130, 98, 83,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.0980392); te=</span><br><span>xt-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;span style=3D3D"backgroun=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;Dana&amp;lt;/span&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div class=3D3D"MsoNormal" align=3D3D=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;"center" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=</span><br><span>-composition-fill-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpress; te=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xt-align: center;=</span><br><span>"&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ext-decoration: -webkit-letterpress;"&amp;gt=</span><br><span>;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 2=</span><br><span>55, 255, 0);"&amp;gt;Story in the Senate&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p clas=</span><br><span>s=3D3D"MsoNormal" st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); -webkit-composition-fill-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;130, 98, 83, 0=</span><br><span>.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;At the same D=</span><br><span>SCC &amp;amp;nbsp;breakfast=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; one month ago, Sen. Merkley anno=</span><br><span>unced that, to his surprise, Senate Budget C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hair Mike En=</span><br><span>zi was going to put out a manager's mark for an FY17 budget reso=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;lution for Committee markup, for February. &amp;amp;nbsp;Today, Enzi wit=</span><br><span>hdrew his ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rkup plans, without announcing a reschedule d=</span><br><span>ate.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ormal" s=</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=</span><br><span>terpress;"&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&amp;gt;To add to the growing=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; problems w=</span><br><span>ithin the GOP, the party, led by Senator Mitch McConnell, has dec=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;lared all-out war on Obama=3DE2=3D80=3D99s impending Supreme Court n=</span><br><span>omination -- a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;amp;nbsp;"nomination abomination"&amp;amp;nb=</span><br><span>sp;-- making it even more difficult to pre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;dict how these=</span><br><span>budget deliberations will end.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D=</span><br><span>3D"Ms=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(130, 98, 83, 0.098=</span><br><span>0392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b&amp;g=</span><br><span>t;&amp;lt;u&amp;gt;Histrionics of the House&amp;amp;nbsp;&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;=</span><br><span>lt;p class=3D3D"MsoNormal" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;Even be=</span><br><span>fore Obama released his FY201=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;7 budget proposal earlier t=</span><br><span>his month, House Republicans made it a point to e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mphasiz=</span><br><span>e that it was DOA.&amp;amp;nbsp; Now, GOP is running into some dead ends of i=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ts own.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Ms=</span><br><span>oNormal" style=3D3D"color: rgba(0, 0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.701961); -web=</span><br><span>kit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;xt-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;span style=3D3D"background-c=</span><br><span>olor: rgba(2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 255, 0);"&amp;gt;Speaker Ryan announced=</span><br><span>early on that he intended to pass t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he budget through re=</span><br><span>gular order this year -- a process that hasn=3DE2=3D80=3D99t b=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;een successfully completed in a generation.&amp;amp;nbsp; Due to internal d=</span><br><span>icisions a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd outside pressures, House Republicans have c=</span><br><span>hanged their tune. &amp;amp;nbsp;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=</span><br><span>p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webki=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-composition-fill-color: rgba(130, 98, 83, 0.0980392); tex=</span><br><span>t-decoration: -we=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bkit-letterpress;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Yesterday, House Budget announced plans for a&amp;amp;nbsp;proposal=</span><br><span>&amp;amp;nbsp;next month=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt; to stick with the spen=</span><br><span>ding levels set by&amp;amp;nbsp;last fall=3DE2=3D80=3D99s deal with=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt; the White House while also giving members the chance to vote&amp;amp;nbs=</span><br></blockquote><span>p;on other b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ills that would slash government spending&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;span style=3D3D"background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;. The compromise is meant to appease hard-righ=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;t GOP members who vehemently opposed the Obama-Boehner budget agre=</span><br><span>ement.&amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p; Per Ryan's office: =3DE2=3D80=3D9CThis p=</span><br><span>roposal enjoys the overwhelming support=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; of the committee=</span><br><span>members, and the chairman looks forward to sharing it with=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt; the broader Conference as we continue moving this process forward.=3DE2=3D=</span><br><span>80=3D9D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal=</span><br><span>" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;: -webkit-letterpress;"&amp;gt;&amp;lt;span style=3D3D"background-color: r=</span><br><span>gba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;The conservative Freedom Cauc=</span><br><span>us so far has supported Speaker Ryan=3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D99s ove=</span><br><span>rtures for cooperation on the budget. &amp;amp;nbsp;But the GOP's hard-right=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; wing may not remain so understanding of the Speaker=3DE2=3D=</span><br><span>80=3D99s position, esp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ecially if their credentials are c=</span><br><span>alled into question by outside groups with=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; sway over the=</span><br><span>ir base of support. &amp;amp;nbsp; Heritage Action said&amp;amp;nbsp;&amp;lt;span cla=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"" tabindex=3D3D"0"&amp;gt;&amp;lt;span class=3D3D""&amp;gt;Mond=</span><br><span>ay&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;amp;nbsp;that the g=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;roup wou=</span><br><span>ld oppose any budget blueprint that sticks to the Obama-Boehner deal=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;, which increases spending by about $30 billion.&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/p&amp;gt;&amp;lt;p class=3D3D"MsoNo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rmal" style=3D3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-composition-fill-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rg=</span><br><span>ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;b&amp;=</span><br><span>gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;u style=3D3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&amp;gt;Going Forward&amp;amp;nbsp;&amp;lt;/u=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -we=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;bkit-composition=</span><br><span>-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;webkit-letterpress;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255,=</span><br><span>255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;It won't be an easy road ahead on the=</span><br><span>budget. &amp;amp;nbsp; The conservative cau=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cus has several d=</span><br><span>ozen members, which gives it the power to torpedo any budge=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;t proposal that lacks at least some Democratic support.&amp;amp;nbsp; If it d=</span><br><span>ecides t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o back the new proposal put forth by Chair Tom P=</span><br><span>rice of House Budget, it wou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ld be likely for GOP leaders=</span><br><span>to be able to move forward.&amp;amp;nbsp; Some members h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ave=</span><br><span>voiced their willingness to cooperate, but the pull of outside right-win=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;g groups may prove to be too strong.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p class=3D3D"MsoNormal" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;Mea=</span><br><span>nwhile, Minority Whip&amp;amp;nbsp;Steny H=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oyer said&amp;amp;nbsp=</span><br><span>;today that any Republican budget strategy that strays from th=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;e Obama-Boehner deal would be opposed by House Democrats.&amp;amp;nbsp;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; class=3D3D"MsoNormal" style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-let=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;terpress;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;The Hou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;se Budget plan is to submit the p=</span><br><span>roposal honoring the spending limits agreed=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; to last year=</span><br><span>, while allowing the hard-right GOP wing to vote on other bills=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt; which would slash spending,&amp;amp;nbsp;mollifying the more hawkish&amp;amp=</span><br></blockquote><span>;nbsp;members.&amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt=</span><br><span>;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt=</span><br><span>;u style=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"=</span><br><span>&amp;gt;Dearth of Legislative Days&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Lengthening the odd=</span><br><span>s again=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;st Ryan, the House Budget is now working on a del=</span><br><span>ayed schedule.&amp;amp;nbsp; In mid=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-January, the House Budge=</span><br><span>t Committee announced that it would be releasing it=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s mar=</span><br><span>kup of the White House budget proposal early -=3DE2=3D80=3D93&amp;amp;nbsp;&amp;lt;a=</span><br><span>&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;a h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ref=3D3D"x-apple-data-detectors://2=</span><br><span>" x-apple-data-detectors=3D3D"true" x-apple-d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ata-detecto=</span><br><span>rs-type=3D3D"calendar-event" x-apple-data-detectors-result=3D3D"2"&amp;gt;on=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;&amp;amp;nbsp;&amp;lt;/a&amp;gt;&amp;lt;span class=3D3D""&amp;gt;&amp;lt;span class=3D=</span><br><span>3D""&amp;gt;&amp;lt;a href=3D3D"x-apple-data-detector=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s://2" x-ap=</span><br><span>ple-data-detectors=3D3D"true" x-apple-data-detectors-type=3D3D"calend=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ar-event" x-apple-data-detectors-result=3D3D"2"&amp;gt;February 25&amp;=</span><br><span>lt;/a&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a href=3D3D"x-app=</span><br><span>le-data-detectors://2" x-apple-data-detectors=3D3D"true" x-appl=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;e-data-detectors-type=3D3D"calendar-event" x-apple-data-detectors-res=</span><br></blockquote><span>ult=3D3D"2"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;.&amp;lt;/a&amp;gt;&amp;amp;nbs=</span><br><span>p;However, that has also changed&amp;lt;b&amp;gt;&amp;lt;i&amp;gt;.&amp;amp;nbsp;&amp;lt;/i&amp;gt;&amp;lt;/=</span><br><span>b&amp;gt;Yesterday&amp;lt;b&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;i&amp;gt;,&amp;amp;nbsp;=</span><br><span>&amp;lt;/i&amp;gt;&amp;lt;/b&amp;gt;The Committee announced that it was now delaying its mar=</span><br><span>kup=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; till sometime in March.&amp;amp;nbsp; The change is curi=</span><br><span>ous for a few reasons.&amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; It raises the question o=</span><br><span>f why the House Budget Committee said it would hav=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e the m=</span><br><span>arkup done so early in the first place. Moreover, it goes against the=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt; House Republicans message of =3DE2=3D80=3D9Cgetting things don=</span><br><span>e=3DE2=3D80=3D9D during t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;his Congress.&amp;amp;nbsp;&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0,=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt; 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.098039=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;2); text-decoration: -webkit-letterpress;"&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 25=</span><br><span>5, 0);"&amp;gt;Democrats are jumping on this delay already.&amp;amp;nbsp; N=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;ancy Pelosi said: =3DE2=3D80=3D9CYet again, it=3DE2=3D80=3D99s th=</span><br></blockquote><span>e Speaker=3DE2=3D80=3D99s own=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; broken promises =3DE2=3D80=</span><br><span>=3D93 and his own rhetoric =3DE2=3D80=3D93 that are coming ba=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ck to bite him.&amp;amp;nbsp; Because while the Speaker pledged an end to d=</span><br><span>ysfunctio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nal House-Republican leadership, all the Americ=</span><br><span>an people are seeing is more o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f the same.=3DE2=3D80=3D9D=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"col=</span><br><span>or:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(0, 0, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.0980392); text-decoration: -web=</span><br><span>kit-letterpress;"&amp;gt;&amp;lt;span style=3D3D"background-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;colo=</span><br><span>r: rgba(255, 255, 255, 0);"&amp;gt;One thing is looks increasingly likely: that=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; the nomination will exert a tidal force on at least the bu=</span><br><span>dget deliberation=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s and everything else, through the elec=</span><br><span>tion. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Ms=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;oNormal"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span id=3D3D"docs-internal-=</span><br><span>guid-4733a1b7-ec8c-3344-1176=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-d4eb9086feb6"&amp;gt;&amp;lt;hr sty=</span><br><span>le=3D3D"box-sizing: content-box; border-style: solid; bo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>rder-color: gray; height: 0px;"&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoN=</span><br><span>ormal"&amp;gt;Upcoming/Recent Updates&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=</span><br><span>ckgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3D=</span><br><span>A2 &amp;amp;nbsp;Tax Talk&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D8=</span><br><span>0=3DA2 &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;Derivatives Agreement w. EU&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Puerto Rico&amp;lt;/d=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Econ. Revitalization/H=</span><br></blockquote><span>ousing&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Infr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;as=</span><br><span>tructure Finance Update &amp;amp;nbsp;(Feb. 18)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=</span><br><span>Does DFA Fail on T=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oo Big to Fail? (Feb. 17)&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;Below the Radar/Customs Bill &amp;amp;nbsp;(Feb.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 1=</span><br><span>6)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;International Tax Status &amp;amp;nbsp;(Feb. 1=</span><br><span>1)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;The =3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Fed Holds Steady &amp;amp;nbsp;=</span><br><span>(Feb. 10)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Obama's FY17 Budget &amp;amp;nbsp;(Feb. 9=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;)&amp;amp;nbsp;&amp;lt;div&amp;gt;Tax Talk of the Town &amp;amp;nbsp;(Feb. 3)&amp;l=</span><br><span>t;br&amp;gt;&amp;lt;div&amp;gt;Defending Dodd-Frank=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;(Feb. 2=</span><br><span>)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;The Fed Holds Ra=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tes, for Now &amp;amp;=</span><br><span>nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Debate Myths Challenged &amp;a=</span><br><span>mp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(Jan. 25)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Regulating the R=</span><br><span>egulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sand=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ers' Tax/Healthcare Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(0, 0, 0, 0.701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;980392); text-d=</span><br><span>ecoration: -webkit-letterpress;"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan.=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt; 17)&amp;lt;/span&amp;gt;&amp;lt;br style=3D3D"color: rgba(0, 0, 0, 0.701961=</span><br><span>); -webkit-composition-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;fill-color: rgba(130, 98, 83, 0.0=</span><br><span>980392);"&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0.7=</span><br><span>01961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;amp;nbsp;(Jan. 16)&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;div style=3D3D"color: rgba(0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: rgba(130, 98, 83, 0.09803=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;92);=</span><br><span>"&amp;gt;Glass-Steagall, Take 2 &amp;amp;nbsp;(Jan. 13)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3=</span><br><span>D"color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>ll-color: rgba(130, 98, 83, 0.0980=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;392);"&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;2016 Tax Po=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;licy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div styl=</span><br><span>e=3D3D"color: rgba(0, 0, 0, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Sanders Proposals=</span><br><span>/GS &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;amp; TBTF (Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>div style=3D3D"color: rgba(0, 0, 0, 0.701961);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;Sanders' =</span><br><span>Fin Reg Proposals &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Year-End Review: Fiscal Policy (Jan. 1)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;&amp;lt;/s=</span><br><span>pan&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Yea=</span><br><span>r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-End Review: Fin. Reg.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;=</span><br><span>&amp;amp;nbsp;(&amp;lt;a href=3D3D"x-apple-data-detectors://20" x-apple-data=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;-detectors=3D3D"true" x-apple-data-detectors-type=3D3D"calendar-=</span><br><span>event" x-apple-d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ata-detectors-result=3D3D"20"&amp;gt;Dec. 29=</span><br><span>&amp;lt;/a&amp;gt;) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;und-color: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Review (&amp;lt;a href=3D3D=</span><br><span>"x-apple-data-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;detectors://21" x-apple-data-detectors=3D3=</span><br><span>D"true" x-apple-data-detectors-type=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"calendar-event"=</span><br><span>x-apple-data-detectors-result=3D3D"21"&amp;gt;Dec. 15&amp;lt;/a&amp;gt;)&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); -webkit-composition-fill-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(130, 98, 83, 0=</span><br><span>.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;5, 255, 255, 0);"&amp;gt;Omnibus Situation &amp;amp;nbsp;(&amp;lt;a href=3D3D"x-appl=</span><br><span>e-data-detectors=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;://22" x-apple-data-detectors=3D3D"true"=</span><br><span>x-apple-data-detectors-type=3D3D"calend=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ar-event" x-appl=</span><br><span>e-data-detectors-result=3D3D"22"&amp;gt;Dec. 14&amp;lt;/a&amp;gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;=</span><br><span>gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(130, 98, 83, 0.098039=</span><br><span>2);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt; 255, 0);"&amp;gt;FY 2016 Omnibus Talks (&amp;lt;a href=3D3D"x-apple-data-detect=</span><br><span>ors://23" x-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;apple-data-detectors=3D3D"true" x-apple-data=</span><br><span>-detectors-type=3D3D"calendar-event"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; x-apple-data-detect=</span><br><span>ors-result=3D3D"23"&amp;gt;Dec. 10&amp;lt;/a&amp;gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div st=</span><br><span>yle=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0, 0.701961); -webkit-composi=</span><br><span>tion-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392);"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>"&amp;gt;Customs Bill &amp;amp;nbsp;(&amp;lt;a href=3D3D"x-apple-data-detectors://25" x-=</span><br><span>apple-data-d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;etectors=3D3D"true" x-apple-data-detectors-t=</span><br><span>ype=3D3D"calendar-event" x-apple-dat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a-detectors-result=3D=</span><br><span>3D"25"&amp;gt;Dec. 8&amp;lt;/a&amp;gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color=</span><br><span>: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;392);"&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&amp;gt;Tax Extende=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;r Negotiations &amp;amp;nbsp;(&amp;lt;a href=3D3D"x-apple-data-detectors://26" x-a=</span><br><span>pple-data-d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;etectors=3D3D"true" x-apple-data-detectors-ty=</span><br><span>pe=3D3D"calendar-event" x-apple-dat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a-detectors-result=3D=</span><br><span>3D"26"&amp;gt;Dec. 6&amp;lt;/a&amp;gt;)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D=</span><br><span>3D"color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.0980392);"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Brown o=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;n HFT &amp;amp;nbsp;(&amp;lt;a href=3D3D"x-apple-data-detectors://27" x-apple-=</span><br><span>data-detectors=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"true" x-apple-data-detectors-type=3D=</span><br><span>3D"calendar-event" x-apple-data-detectors=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-result=3D3D"27=</span><br><span>"&amp;gt;Dec. 4&amp;lt;/a&amp;gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgb=</span><br><span>a(0, 0, 0, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;nbs=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;p;(&amp;lt;a href=3D3D"x-apple-data-detectors://29" x-apple-data-det=</span><br><span>ectors=3D3D"true" x=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-apple-data-detectors-type=3D3D"calen=</span><br><span>dar-event" x-apple-data-detectors-result=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"29"&amp;gt;Dec=</span><br><span>. 3&amp;lt;/a&amp;gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span id=3D3D"docs-internal-guid-4733a1b=</span><br><span>7-ec8c-3344-1176-d4eb9086feb6"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;hr st=</span><br><span>yle=3D3D"box-sizing: content-box; border-style: solid; border-color: gray=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;; height: 0px;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/=</span><br><span>div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p cla=</span><br><span>s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;Mi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ke &amp;amp;amp; Co. --&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"backg=</span><br><span>round-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0);"&amp;gt;One week ago, t=</span><br><span>he House passed a bill that co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;uld alter and perhaps ease=</span><br><span>the way state and local infrastructure is finance=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d in t=</span><br><span>he capital markets, when HR.2209, a bill to&amp;amp;nbsp;"require the appropri=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ate Federal banking agencies to treat certain municipal obl=</span><br><span>igations as level=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 2A liquid assets, and for other purpos=</span><br><span>es"&amp;amp;nbsp;was adopted by the House wit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;h a voice vote.=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba(255, 255, 255, 0);"&amp;gt;T=</span><br><span>hought the bill has flown below the m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;edia radar, it is s=</span><br><span>ignificant. &amp;amp;nbsp;Municipal obligations, including bonds,=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; are at the heart of infrastructure investment in America.&amp;amp;nbsp; An=</span><br><span>d infrast=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ructure investment has been a large focus of th=</span><br><span>is primary.&amp;amp;nbsp; Both Democr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;atic candidates have pr=</span><br><span>oposed multi-hundred billion dollar infrastructure in=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ves=</span><br><span>tment proposals.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;Details below...&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Ms=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;oNormal"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;Best,&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=</span><br><span>ormal"&amp;gt;Dana&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span id=3D3D"docs-internal-guid-47=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;33a1b7-ec8c-3344-1176-d4eb9086feb6" style=3D3D"background-c=</span><br><span>olor: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"&amp;gt;&amp;lt;hr style=3D3D"box-=</span><br><span>sizing: content-box; border-style: solid; borde=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r-color: g=</span><br><span>ray; height: 0px;"&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br><span>tyle=3D3D"ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&amp;gt;I=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nfrastructure=</span><br><span>is mostly funded at the state or local level through the use o=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;f municipal bonds. &amp;amp;nbsp;Between 2003 and 2012, counties, states,=</span><br></blockquote><span>and other l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ocalities invested $3.2 trillion in infrastr=</span><br><span>ucture through long-term tax-exe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mpt municipal bonds, 2.5=</span><br><span>times more than the federal investment. &amp;amp;nbsp;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u&amp;gt;The Bill&amp;=</span><br><span>lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;HR 220=</span><br><span>9 requires=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; federal banking regulators to include municip=</span><br><span>al bonds under the Liquidity C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;overage Ratio (LCR). &amp;amp;=</span><br><span>nbsp;The LCR is designed to ensure that financial inst=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;it=</span><br><span>utions have the necessary assets available to handle a liquidity disruptio=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;n. &amp;amp;nbsp;Local officials have said that if the new rule=</span><br><span>s aren=3DE2=3D80=3D99t chan=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ged, it will saddle them with=</span><br><span>higher borrowing costs by eliminating incentiv=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es banks h=</span><br><span>ave to purchase their bonds. Without bonds, these governments will=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; lose a significant source of their funding. &amp;amp;nbsp;Per Indiana=</span><br><span>State Treasur=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;er Kelly Mitchell: =3DE2=3D80=3D9CThis bil=</span><br><span>l helps ensure cash-strapped school dist=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ricts and munici=</span><br><span>palities will continue to have access to bonds to finance pr=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ojects they think are best for their communities.=3DE2=3D80=3D9D&amp;amp;nbs=</span><br><span>p;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p class=3D3D"MsoNormal"&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;);"&amp;gt;Rep. Luke Messer, an Indiana Republican who wrote the bill: &amp;amp;n=</span><br><span>bsp;=3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D9CPut simply, our bill requires the fed=</span><br><span>eral government to recognize the obv=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ious, that our munic=</span><br><span>ipal bonds are some of the safest investments in the wor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ld and that we shouldn=3DE2=3D80=3D99t have rules that give preferential tre=</span><br><span>atment=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; to corporate bonds or other countries=3DE2=3D80=3D=</span><br><span>99 bonds over our own.=3DE2=3D80=3D9D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;amp;nbsp;&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-=</span><br><span>color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(255, 255, 255, 0);"&amp;gt;After passing the Hou=</span><br><span>se with unanimous bipartisan supp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ort, a companion bill i=</span><br><span>s expected to be introduced in the Senate this year. &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u s=</span><br><span>tyle=3D3D"background-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;=</span><br><span>Municipal Bond Issue&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal=</span><br><span>"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;After the crisis o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f 2008, federal regulat=</span><br><span>ors adopted international banking standards that requ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ire=</span><br><span>banks to have enough "High-Quality Liquid Assets" to cover their cash ou=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;tflows for 30 days in case of a future financial meltdown. &amp;=</span><br><span>amp;nbsp;Now, munici=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pal bonds are not considered liquid a=</span><br><span>ssets and therefore cannot be included u=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nder the &amp;amp;nb=</span><br><span>sp;LCR. &amp;amp;nbsp; As a result, financial institutions have been dis=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;couraged from holding municipal debt, which means that cash stra=</span><br><span>pped municip=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;alities and school districts may eventually b=</span><br><span>e forced to reduce or even stop=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; work on projects &amp;amp;nb=</span><br><span>sp;financed with municipal bonds.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cl=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ass=3D3D"MsoNormal"&amp;gt;&amp;lt;u&amp;gt;&amp;lt;b&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"background-color: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;Infrastr=</span><br><span>ucture Financing --&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;b style=3D3D"backgro=</span><br><span>und-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;Alternative Finan=</span><br><span>cing&amp;lt;/b&amp;gt;&amp;lt;/u&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"Ms=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oNo=</span><br><span>rmal"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;=</span><br><span>lt;b&amp;gt;=3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3DA2 &amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/b&amp;gt;&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;i style=3D3D"background-color: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt; 0);"&amp;gt;Tax-exempt bonds: &amp;amp;nbsp;&amp;lt;/i&amp;gt;&amp;lt;span style=3D3D"=</span><br><span>background-color: rgba(255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 255, 0);"&amp;gt;Exemption f=</span><br><span>rom federal taxes and many state and local taxes i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s poss=</span><br><span>ible through the use of municipal bonds. &amp;amp;nbsp; In recent years, with t=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;he increasing use of PPPs, barriers to this tax exemption h=</span><br><span>ave arisen. &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;Treasury has reviewed relevant tax=</span><br><span>rules and based on their findings and ha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ve put forth a p=</span><br><span>roposal for an expanded and permanent America Fast Forward B=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ond Program as an alternative to tax-exempt bonds. &amp;amp;nbsp;Based on th=</span><br><span>e succes=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sful Build America Bond program, =3DE2=3D80=3D9C=</span><br><span>would provide an efficient borrowi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ng subsidy to state an=</span><br><span>d local governments while appealing to a broader inves=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;to=</span><br><span>r base than traditional tax-exempt bonds [and] would cover a broad range o=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;f projects for which tax-exempt bonds can be used.=3DE2=3D8=</span><br><span>0=3D9D&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"=</span><br><span>MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;&amp;amp;nbsp;=3DE2=3D80=3DA2 &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;i style=3D3D"background-color: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"=</span><br><span>&amp;gt;Obama=3DE2=3D80=3D99s budget proposal: &amp;amp;nbsp;&amp;lt;/i&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0);"&amp;gt;Oba=</span><br><span>ma has also put forth a plan to stre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ngthen local and sta=</span><br><span>te government infrastructure projects. His plan relies o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>n a new Federal credit program to support public-private partnerships within=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the Department of the Treasury. It will provide direct l=</span><br><span>oans to US infrastr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ucture projects developed through PPP=</span><br><span>s. The Obama Administration believes th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;at private invest=</span><br><span>ment is crucial for infrastructure development moving forwa=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;rd, so there should be more flexibility in regards to what PPP is subject=</span><br><span>to=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;. In addition to that, President Obama has proposed t=</span><br><span>he taxable, direct-pay A=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;merica Fast Forward bond program=</span><br><span>to help finance infrastructure. &amp;amp;nbsp;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;b style=3D3D"background-color: r=</span><br><span>gba(255, 255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;&amp;lt;u&amp;gt;State Infrastructure=</span><br><span>Banks&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;spa=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Local governments rece=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ive financing in a number of ways.=</span><br><span>&amp;amp;nbsp;Traditional sources such as tax rev=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;enues have=</span><br><span>been dwindling and local authorities have been relying on federal=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; government loan programs, public-private partnerships, and State R=</span><br><span>evolving =3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Funds (SRFs). &amp;amp;nbsp;State Infrastructure Ba=</span><br><span>nks (SIBs) are a subset of SRFs -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;- the funds act like a b=</span><br><span>ank, because they don=3DE2=3D80=3D99t own the infrastructu=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;re asset, but act as a lender or guarantor to the project sponsor. Per Bro=</span><br><span>ok=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ings: &amp;amp;nbsp;=3DE2=3D80=3D9CSRFs rely on principal r=</span><br><span>epayments, bonds, interest and f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ees to re-capitalize and=</span><br><span>replenish the fund as a perpetual source of debt fi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nanc=</span><br><span>ing.=3DE2=3D80=3D9D&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;SIBs generate more investment per dollar th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an tra=</span><br><span>ditional federal and state grant programs. &amp;amp;nbsp;They only exist in 33=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; states and 10 of those SIBs are currently inactive. A larg=</span><br><span>e problem may be c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ompliance with federal regulations. &amp;a=</span><br><span>mp;nbsp;Brookings again:&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;=3DE2=3D80=3D9CWe found that many S=</span><br><span>IB officials cite compliance with federal r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;egulations as=</span><br><span>slowing down the investment process either because of environm=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;ental and contractual requireme&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"backg=</span><br></blockquote><span>round-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;nts or due to t=</span><br><span>he lack of flexibility in projects that a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re not Title 23=</span><br><span>or 49 eligible. For states with smaller projects, this may b=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;e prohibitively costly compared to the advantage of using the low-cost S=</span><br><span>IB f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;inancing.=3DE2=3D80=3D9D&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;Just being called a bank subje=</span><br><span>cts SI=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bs to regulations that commercial banks are subjec=</span><br><span>t to. &amp;amp;nbsp;SIBs are non-f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or-profit organizations wi=</span><br><span>th a goal of increasing infrastructure investment,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; so th=</span><br><span>ey don=3DE2=3D80=3D99t quite fit into the category of the average bank. &amp;amp=</span><br><span>;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p;SIBs may be more successful outside this classific=</span><br><span>ation.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=</span><br><span>p cla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"MsoNormal"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;Fo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r or Agains=</span><br><span>t Dodd-Frank&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;Before Dodd-Frank, particularly in t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he case of re=</span><br><span>latively small municipalities, many underwriters forged long-te=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;rm relationships with municipalities and would provide financial advi=</span><br></blockquote><span>ce befo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re and after a bond issuance. &amp;amp;nbsp;With Dodd=</span><br><span>-Frank, that relationship chang=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ed, with a new =3DE2=3D80=</span><br><span>=3D9Cmunicipal adviser=3DE2=3D80=3D9D category that must regist=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;er with the SEC and be regulated by the Municipal Securities Rulemaki=</span><br></blockquote><span>ng Boar=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d (MSR).&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"background-color: rgba(255, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;amp;nbs=</span><br><span>p;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;No=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;w, it is widely illegal to provide advice to gove=</span><br><span>rnmental entities concernin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g the issuance of municipal b=</span><br><span>onds, the use of financial derivatives, and the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; investme=</span><br><span>nt of the proceeds of a bond issue to, or on behalf, of a municipal=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; entity or an obligated person unless the adviser is registered w=</span><br></blockquote><span>ith the SEC=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=</span><br><span>=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ba(255, 255, 255, 0);"&amp;gt;HR 2209 appears to address a problem within Do=</span><br><span>dd-Fran=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;k, but it is unclear if it vitiates the law mater=</span><br><span>ially. &amp;amp;nbsp;At face value,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; it appears to be more a t=</span><br><span>echnical fix. Dodd-Frank expanded regulations for b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ankin=</span><br><span>g institutions, but the entities that fund state and local governments a=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;re far unlike the TBTF institutions that Dodd-Frank was mean=</span><br><span>t to regulate. &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;g=</span><br><span>t;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-color=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;: rgba(255, 255, 255, 0);"&amp;gt;Groups like Americans for Financi=</span><br><span>al Reform oppose=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; HR 2209: =3DE2=3D80=3D9CWhile we sympat=</span><br><span>hize with the belief that municipal debt w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;as incorrectly=</span><br><span>treated under the initial LCR rule, we believe that it is ina=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;ppropriate to classify such debt as a Level 2A asset. AFR therefore op=</span><br><span>poses t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;his bill unless a more appropriate liquidity clas=</span><br><span>sification is used.=3DE2=3D80=3D9D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;AFR h=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;as previously said it supports treating municipal bonds as m=</span><br><span>ore liquid and d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oes not approve the type of classificati=</span><br><span>on used in HR 2209, because it goes t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oo far in its treat=</span><br><span>ment of municipal debt as level 2A liquid assets and spec=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ifically with micromanaging regulators with this kind of detail and they pr=</span><br></blockquote><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;fer a Level 2B classification.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The bill could provide re=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;lief for smaller institutions, so that they can fund infras=</span><br><span>tructure investme=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nt more easily. In terms of Dodd-Frank,=</span><br><span>it is yet to be decided if it is sim=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ply a necessary twe=</span><br><span>ak or a criticism.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; &amp;amp;nbsp; &amp;am=</span><br><span>p;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp; &amp;amp=</span><br><span>;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp; &amp;am=</span><br><span>p;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ass=3D3D"MsoNormal=</span><br><span>"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt=</span><br><span>;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Looking Ahead&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D=</span><br><span>3D"MsoNormal"&amp;gt;&amp;lt;span style=3D3D"background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;HR 2209 could end up being an important issue i=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;n the national infrastructure discussion. &amp;amp;nbsp;It brin=</span><br><span>gs up questions about=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; how far a state or local governmen=</span><br><span>t can go before its activities begin to r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;esemble an actu=</span><br><span>al bank. &amp;amp;nbsp;With the growth of PPPs, the private sector is=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt; being even more integrated into the process =3DE2=3D80=3D93 should=</span><br><span>those companie=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s be given tax exemptions, as well?&amp;amp;n=</span><br><span>bsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;g=</span><br><span>t;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span=</span><br><span>id=3D3D"docs-internal-guid-4733a1b7-ec8c-3344-1176-d4eb9086feb6" s=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;hr st=</span><br></blockquote><span>yle=3D3D"box-sizing: c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ontent-box; border-style: solid; b=</span><br><span>order-color: gray; height: 0px;"&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;di=</span><br><span>v&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;Upcoming/R=</span><br><span>ecent Updat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;=3D80=3DA2 &amp;amp;nbsp;Derivatives Agreement w. EU&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Bu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;dget (Ir)Resolut=</span><br><span>ion&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Puerto Rico&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;=3DE2=3D80=3DA2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;Econ. Revitalization=</span><br><span>/Housing&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Infrastructure Financ=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;e Update &amp;amp;nbsp;(Feb. 18)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div&amp;g=</span><br><span>t;Does DFA Fail on Too Big to Fail? (=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Feb. 17)&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;Below the Radar/Customs Bill &amp;amp;nbsp;(Feb. 16)&amp;amp;nbsp;&amp;lt;/d=</span><br><span>iv&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;International Tax Status &amp;amp;nbsp;(Feb=</span><br><span>. 11)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;The Fed Holds Steady &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nb=</span><br><span>sp;(Feb. 10)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Obama's FY17 Budget &amp;amp;nbsp;(Feb. 9)&amp;am=</span><br><span>p;nbsp;&amp;lt;div&amp;gt;Tax Ta=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lk of the Town &amp;amp;nbsp;(Feb. 3=</span><br><span>)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Defending Dodd-Frank &amp;amp;nbsp;(Feb. 2)&amp;lt;br=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;Fiscal Pol: Deficit/Debt Dor=</span><br></blockquote><span>mancy (Jan. 28)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"b=3D&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;span&gt;ackground-color: rgba(255, 255, 255, 0);"&amp;gt;The Fed Holds R=</span><br><span>ates, for Now &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;Debate Myths Challenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/div&amp;gt;&amp;lt;di=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;Regulating the Regulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/div&amp;=</span><br><span>gt;&amp;lt;div&amp;gt;Sanders' Tax/Healthcar=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e Policy &amp;amp;nbsp;(=</span><br><span>Jan 20)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0.701=</span><br><span>9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;61); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-deco=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ration: -webkit-letterpress;"&amp;gt;HRC=</span><br><span>'s Tax Policy &amp;amp;nbsp;(Jan. 17)&amp;lt;/span&amp;gt;&amp;lt;br sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;30, 98, 83, 0.0980392);"&amp;gt;&amp;lt;div style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webk=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;it-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&amp;gt;2016 Tax Agenda on=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the H=</span><br><span>ill &amp;amp;nbsp;(Jan. 16)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392);"&amp;gt;Glass-Steaga=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ll, Take 2 &amp;amp;nbsp;(Jan=</span><br><span>. 13)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961)=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;g=</span><br><span>t;&amp;lt;span style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;2016 Tax Policy Issues &amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(Jan. 8)&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -we=</span><br><span>bkit-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;omposition-fill-color: rgba(130, 98, 83, 0.0980392=</span><br><span>);"&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;Sanders Proposals/GS &amp;amp;amp; TBTF (Jan. 7)=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); -webkit-compositi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;Sanders' Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/s=</span><br><span>pan&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;am=</span><br><span>p;nbsp;&amp;lt;/span&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan style=3D3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;Year-End Review: Fin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;. Reg.=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;amp;nbsp;(Dec. 29) &amp;a=</span><br><span>mp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;, 255, 0);"&amp;gt;Omnibus Review (Dec. 15)&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09803=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;92);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;Omnibus Situ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ation &amp;amp;nbsp;(Dec. 14)&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;=</span><br><span>gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;FY 2016 Omnibus Talks (Dec.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 10)&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compo=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=</span><br><span>n-fill-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"background-color: rgba(255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 0);"&amp;g=</span><br><span>t;Tax Extender Negotiations &amp;amp;nbsp;(Dec. 6)&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(130, 98, 83, 0.09803=</span><br><span>92);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;55, 0);"&amp;gt;Brown on HFT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br></blockquote><span>lt;div style=3D3D"color: rgba(0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.09803=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;92);"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Shelby=</span><br><span>2.0 U=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pdate &amp;amp;nbsp;(Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span styl=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br=</span><br><span>&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;8, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba=</span><br></blockquote><span>(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;----&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;position-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(25=</span><br><span>5, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;5, 255, 0);"&amp;gt;Mike &amp;amp;amp; Co. &amp;amp;nbsp;--&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span id=3D3D"docs-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;internal-gu=</span><br><span>id-4733a1b7-ec8c-3344-1176-d4eb9086feb6"&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;g=</span><br><span>t;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; m=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;The newly-installed&amp;amp;nb=</span><br><span>sp;the Minneapolis Federal Reserve Bank and former S=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;peci=</span><br><span>al Investigator&amp;amp;nbsp;overseeing the TARP program came to town yesterday a=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;dvocating drastic action to head off a financial sector s=</span><br><span>ystemic risk crisis=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, calling for&amp;amp;nbsp;the nation's b=</span><br><span>iggest banks to be broken up.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>/p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=</span><br><span>=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&amp;gt;His speech, delivered=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;&amp;amp;nbsp;at Br=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ookings, got noticed, with lengthy c=</span><br><span>overage in the NYT, WSJ, and WaPo.&amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; And perhaps=</span><br><span>with reason -- the TBTF (too big to fail) issue has dogged Cong=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;ress and the administration for years and is one of the central ones=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span style=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;in the Democr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;atic presi=</span><br><span>dential campaign this far.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=</span><br><span>an id=3D3D"docs-i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nternal-guid-4733a1b7-ec8c-3344-1176-d4=</span><br><span>eb9086feb6"&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-top=</span><br><span>: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;; background-color: rgba(255, 255, 255, 0);"&amp;gt;Or maybe it=</span><br><span>was just a slow new=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s day. &amp;amp;nbsp;You decide...&amp;lt;/s=</span><br><span>pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baselin=</span><br></blockquote><span>e; background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align=</span><br></blockquote><span>: baseline; bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;Best,&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;p dir=3D3D"ltr" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"margin-top: 0pt; margin-bott=</span><br><span>om: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseli=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n=</span><br><span>e; background-color: rgba(255, 255, 255, 0);"&amp;gt;Dana&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p dir=3D3D"ltr"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"margin-top: 0pt; margin-b=</span><br><span>ottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-alig=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: base=</span><br><span>line; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;=</span><br><span>lt;/p&amp;gt;&amp;lt;hr s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"box-sizing: content-box; bord=</span><br><span>er-style: solid; border-color: gray; he=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ight: 0px;"&amp;gt;&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0=</span><br><span>in;"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;br&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br><span>tyle=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;b style=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;u&amp;gt;A Peculiar Package of Propos=</span><br><span>als&amp;lt;/u&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNor=</span><br><span>mal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ckground-color: rgba(255, 255, 255, 0);"&amp;gt;Kashkari argued in the alter=</span><br><span>native t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hat Dodd-Frank needs to be used and/or needs to b=</span><br><span>e reformed. &amp;amp;nbsp;He says t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he law as written does no=</span><br><span>t solve the TBTF problem. &amp;amp;nbsp;He also wants regul=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a=</span><br><span>tors to use the yet-untried tools at their disposal under the law. &amp;amp;nbsp=</span><br><span>;&amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3D9C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;While s=</span><br><span>ignificant progress has been made to strengthen our financial system,=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt; I believe the [Dodd-Frank] Act did not go far enough." &amp;amp;nb=</span><br><span>sp;He then laid o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ut three ideas meant to end TBTF once a=</span><br><span>nd for all. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>ound-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;=</span><br><span>amp;nbsp;break up large banks into smaller, l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ess connect=</span><br><span>ed, less important entities;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorma=</span><br><span>l" sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D"=</span><br><span>background-color: rgba(255, 255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;=3DE2=3D80=</span><br><span>=3DA2 &amp;amp;nbsp;turn what remains of the large banks into public util=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ities by forcing them to hold so much capital that they can=3DE=</span><br><span>2=3D80=3D99t fail; a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=</span><br><span>=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;=</span><br><span>amp;nbsp;tax leverage thr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oughout the financial system "t=</span><br><span>o reduce systemic risks wherever they lie."&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;"&amp;gt;&amp;lt;b=</span><br><span>style=3D3D"back=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ground-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;=3DE2=3D80=3DA2 &amp;amp;nbsp;&amp;lt;u&amp;gt;Break&amp;amp;nbsp;up the B=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;anks&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D=</span><br><span>"margin: 12pt 0in; vertical-a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lign: baseline;"&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3D46rom=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; the perspective of current laws, breaking up big banks is alread=</span><br></blockquote><span>y a policy a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;venue available to regulators.&amp;amp;nbsp; The=</span><br><span>Federal Reserve, through the Financ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ial Stability Oversi=</span><br><span>ght Council, can elect to take a number of actions to de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>al with banks that it feels are both systemically important and organized in=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; an unstable way.&amp;amp;nbsp; Section 121 of the Dodd-Fran=</span><br><span>k Act gives the Board of=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Governors these powers.&amp;amp;nbs=</span><br><span>p;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(2=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;55, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"M=</span><br><span>soNormal" style=3D3D"margin: 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;2pt 0in; vertical-align: b=</span><br><span>aseline;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;5, 255, 255, 0);"&amp;gt;So this first proposal =3DE2=3D80=3D93 break up big b=</span><br><span>anks - has&amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;been covered here before but just fo=</span><br><span>r the sake of argument... which ban=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ks need to be broken u=</span><br><span>p most urgently? &amp;amp;nbsp;Few commentators believe there i=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;s an imminent threat demanding action. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;=</span><br><span>lt;p class=3D3D"MsoNorma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l" style=3D3D"margin: 12pt 0in; v=</span><br><span>ertical-align: baseline;"&amp;gt;&amp;lt;span style=3D3D"back=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;Unsurprisingly, the Fed doesn=3DE2=3D=</span><br><span>80=3D99=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t believe that banks are so hopeless that they ne=</span><br><span>ed to be dissolved. &amp;amp;nbsp;T=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hat doesn=3DE2=3D80=3D99t=</span><br><span>mean it=3DE2=3D80=3D99s not a possibility under current legisl=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;ation, however.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" sty=</span><br></blockquote><span>le=3D3D"margin: 12pt 0in; v=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ertical-align: baseline;"&amp;gt;=</span><br><span>&amp;lt;b style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/b&amp;gt;&amp;lt;b style=3D3D"backgr=</span><br><span>ound-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;u&amp;gt;Make Ba=</span><br><span>nks =3DE2=3D80=3D9CUtilities=3DE2=3D80=3D9D&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt=</span><br><span>;p class=3D3D"Ms=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oNormal" style=3D3D"margin: 12pt 0in; ve=</span><br><span>rtical-align: baseline;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&amp;gt;The second proposal is to push c=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;apital requirements for banks so high that they =3DE2=3D80=3D9=</span><br><span>Cessentially turn in=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;to public utilities.=3DE2=3D80=3D9D&amp;=</span><br><span>amp;nbsp; Kashkari never explains how exactly high=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; capit=</span><br><span>al reserves turn banks into utilities, but that=3DE2=3D80=3D99s for another t=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ime.&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=</span><br><span>ss=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; vertical=</span><br><span>-align: baseline;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;He is voicing his support for one of the old=</span><br><span>est forms of banking re=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gulations that we still use and u=</span><br><span>se far more now in the Dodd-Frank era =3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D93 he=</span><br><span>wants banks to hold more capital. &amp;amp;nbsp;Supporters of the law may be h=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;eartened by his full-throated endorsement of the law on thi=</span><br><span>s score.&amp;amp;nbsp;&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3=</span><br><span>D"MsoNormal" style=3D3D"margin: 12pt 0in; vertical-align: ba=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;seline;"&amp;gt;&amp;lt;b style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;=</span><br><span>gt;=3DE2=3D80=3DA2 &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;&amp;amp;nbsp;&amp;lt;/b&amp;gt;&amp;lt;b s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;u&amp;gt;Crib=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;bing from Clinton?&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3=</span><br><span>D"MsoNormal" style=3D3D"margin: 12pt 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in; vertical-align=</span><br><span>: baseline;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 25=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;5, 255, 0);"&amp;gt;The third proposal was just about lifted out of Se=</span><br><span>cretary Clint=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on=3DE2=3D80=3D99s plan to regulate Wall St=</span><br><span>reet =3DE2=3D80=3D93- though the reporting on=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the speech=</span><br><span>doesn=3DE2=3D80=3D99t much mention it much.&amp;amp;nbsp; It is reasonable bot=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;h from a policy and a political perspective. But he doesn't=</span><br><span>provide further d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;etails about &amp;lt;/span&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;hi=</span><br><span>s proposal after first outlining it.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"=</span><br><span>MsoNormal" st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"margin: 12pt 0in; vertical-align: b=</span><br><span>aseline;"&amp;gt;&amp;lt;b style=3D3D"background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;Kashkari contra Yellen&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D=</span><br><span>3D"Mso=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Normal" style=3D3D"margin: 12pt 0in; vertical-alig=</span><br><span>n: baseline;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;Fed Chair Yellen has been an out=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;spoken proponent of existing banking regulations, making it known that wh=</span><br><span>ile=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the job of regulators is not done yet. we=3DE2=3D80=3D=</span><br><span>99re in a much better situa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion now than we were before D=</span><br><span>FA. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;During her testimony before House Finan=</span><br><span>cial Ser=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;vices, Yellen fielded a question about why she h=</span><br><span>ad not yet broken up big ban=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ks, saying&amp;lt;/span&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;:=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;&amp;amp;nbsp;=3DE2=3D80=3D9C=3DE2=3D80=3DA6we [at the Fed]vare using our p=</span><br><span>owers to make sure th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;at a systemically important institu=</span><br><span>tion could fail, and it would not be -- h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ave systemic co=</span><br><span>nsequences for the country. We're doing that in a whole varie=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ty of ways.=3DE2=3D80=3D9D&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;l=</span><br><span>t;p class=3D3D"MsoNormal" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin: 12pt 0in; v=</span><br><span>ertical-align: baseline;"&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; rgba(255, 255, 255, 0);"&amp;gt;The ways Yellen is referring to inclu=</span><br><span>de enforcing L=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iquidity Coverage Ratios, capital reserve r=</span><br><span>equirements, and a rule passed la=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;st November forcing the=</span><br><span>biggest banks to issue long-term debt equal to 18 pe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rce=</span><br><span>nt of risk-weighted assets. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3=</span><br><span>D"MsoNormal" style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"margin: 12pt 0in; vertical-align=</span><br><span>: baseline;"&amp;gt;Evidently it's not enough. &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;But=</span><br><span>it is nonetheless uncommon for&amp;lt;span style=3D3D"background-color: rgba=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;a newly minted Federal Re=</span><br><span>serve Bank President to t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aking to task the Chair of the =</span><br><span>Federal Reserve=3DE2=3D80=3D99s Board of Governors.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin: 12pt 0in; v=</span><br><span>ertical-align:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; baseline;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div=</span><br><span>&amp;gt;Upcoming/Recent Updates&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=</span><br><span>=3D80=3DA2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;Municipal Bond Rule&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Budget (Ir)Resolution&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Puerto Rico&amp;lt;/div&amp;gt;&amp;lt;di=</span><br><span>v&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Derivatives A=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;greement w. E=</span><br><span>U&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Econ. Revitalization/Housi=</span><br><span>ng&amp;lt;br&amp;gt;&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=</span><br><span>Does DFA Fail on Too Big to Fail? (Feb. 17)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Below=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt; the Radar/Customs Bill &amp;amp;nbsp;(Feb. 16)&amp;amp;nbsp;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div&amp;gt;International Tax St=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;atus &amp;amp;nbsp;(Feb. 1=</span><br><span>1)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;The Fed Holds Steady &amp;amp;nbsp;(Feb. 10)&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;Obama's FY17 Budget &amp;amp;nbsp;(Feb. 9)&amp;amp;n=</span><br><span>bsp;&amp;lt;div&amp;gt;Tax Talk of the Town &amp;amp;nbsp;(Fe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b. 3)&amp;l=</span><br><span>t;br&amp;gt;&amp;lt;div&amp;gt;Defending Dodd-Frank &amp;amp;nbsp;(Feb. 2)&amp;lt;br&amp;gt;&amp;lt;div&amp;=</span><br><span>gt;Fiscal Pol: Defici=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t/Debt Dormancy (Jan. 28)&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;5, 255, 255, 0);"&amp;gt;The Fed Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;Debate Myths Challenged &amp;=</span><br><span>amp;nbsp;(Jan. 25)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Regulating the Regulat=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;ors &amp;amp;nbsp;(Jan. 21)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' Tax/Healthcare=</span><br></blockquote><span>Policy &amp;amp;nbsp;(Jan 20)&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-=</span><br><span>letterpr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ess;"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan. 17)&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;br style=3D3D"color: rgba(0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0.70196=</span><br><span>1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(130, 98, 83, 0.0980392);"&amp;gt;2=</span><br><span>016 Tax Agenda on the Hill &amp;amp;nbsp;(Jan. 16)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;Glass-Steagal=</span><br><span>l, Take 2 &amp;amp;nbsp;(Jan. 13=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/div&amp;gt;&amp;lt;div style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;l-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-=</span><br><span>color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(255, 255, 255, 0);"&amp;gt;2016 Tax Policy Issue=</span><br><span>s &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; sty=</span><br><span>le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 255, 0);"&amp;gt;Sanders Proposals=</span><br><span>/GS &amp;amp;amp; TBTF (Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;Sanders' =</span><br><span>Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D=</span><br><span>3D"color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.0980392);"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Year-E=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;nd Review: Fiscal Policy (Jan. 1) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;Year=</span><br><span>-End Review: Fin. Reg.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;(Dec. 29) &amp;=</span><br><span>amp;nbsp;&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;span style=3D3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Review (=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dec. 15)=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;omposition-fill-color: rgba(130, 98, 83, 0.09803=</span><br><span>92);"&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-color: rgba(255,=</span><br><span>255, 255, 0);"&amp;gt;Omnibus Situation &amp;amp;nbsp;(Dec. 14)&amp;lt;/span&amp;gt;=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-color: rgba(130, 98, 83, 0.09803=</span><br><span>92);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255,=</span><br><span>255, 255, 0);"&amp;gt;FY 2016 Omnibus Talks (Dec. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392);"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=</span><br><span>v style=3D3D"color: rgba(0, 0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Tax Extende=</span><br><span>r Negoti=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ations &amp;amp;nbsp;(Dec. 6)&amp;amp;nbsp;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.70=</span><br><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt=</span><br><span>;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;Brown on HFT &amp;amp;nbsp;(D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ec. 4)&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;position-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;Shelby 2.0 Update &amp;amp;nbsp;(Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>iv&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;=</span><br></blockquote><span>gt;&amp;lt;div&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;op:=</span><br><span>0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline; b=</span><br><span>ackg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;hr style=3D3D"box-sizing=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: cont=</span><br><span>ent-box; border-style: solid; border-color: gray; height: 0px;"&amp;gt;&amp;lt;br&amp;gt=</span><br><span>;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;div&amp;gt;Mike &amp;amp;amp; Co. &amp;amp;nbsp;--&amp;=</span><br><span>lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span id=3D3D"docs-internal-guid-47=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;33a1b7-ec8c-3344-1176-d4eb9086feb6"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" sty=</span><br><span>le=3D3D"background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0); margin=</span><br><span>-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"v=</span><br><span>ertical-align: baseline;"&amp;gt;A national holiday, a snowstorm, and a con=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;gressional recess stilled DC yesterday and a quiet week is ex=</span><br><span>pected.&amp;amp;nbsp; I=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t gives us a chance to have a look at=</span><br><span>some developments thus far this year t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hat have flown be=</span><br><span>low the radar.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3=</span><br><span>D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0); margin-top: 0=</span><br><span>pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan style=3D3D"vertical=</span><br><span>-align: baseline;"&amp;gt;Today's item is the one bill on its w=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ay to the President=3DE2=3D80=3D99s desk -- the Customs bill -- and the c=</span><br><span>aboose at=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tached to it that extends the internet tax mora=</span><br><span>torium permanently &amp;amp;nbsp;and m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ay be the bill's impor=</span><br><span>tant title... at least until the TPP comes up on the S=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;en=</span><br><span>ate floor.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"ba=</span><br><span>ckground-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0); margin-top: 0pt;=</span><br><span>margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vert=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ical-al=</span><br><span>ign: baseline;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" styl=</span><br><span>e=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0); margin-=</span><br><span>top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"ve=</span><br><span>rtical-align: baseline;"&amp;gt;Best, &amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=</span><br><span>=3D3D"ltr" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 2=</span><br><span>55, 0); margin-top: 0pt; margin-bottom: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt;"&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"vertical-align: baseline;"&amp;gt;Dana&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p d=</span><br><span>ir=3D3D"ltr"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgba(255, 255,=</span><br><span>255, 0); margin-top: 0pt; margin-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bottom: 0pt;"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"vertical-align: baseline;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;g=</span><br><span>t;&amp;lt;p di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r=3D3D"ltr" style=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0); margin-top: 0pt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; margin-bottom: 0pt;"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt=</span><br><span>;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;gt;&amp;lt;hr style=3D3D"box-sizing: content-box; bo=</span><br><span>rder-style: solid; border-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; gray; height: 0px;"&amp;gt;=</span><br><span>&amp;lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/p&amp;g=</span><br><span>t;&amp;lt;p dir=3D3D"ltr" styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0); margin-top: 0pt; margin-botto=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;m: 0pt;"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"font-weight: 700; vertical-align: baseline;"&amp;gt;The C=</span><br><span>us=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;toms Bill: &amp;amp;nbsp;Comity on the Hill&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckgro=</span><br><span>und-color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;The Se=</span><br><span>nate cleared the first ove=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rhaul of the Customs and Borde=</span><br><span>r Protection (CBP) agency in more than a decad=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e in a 75-=</span><br><span>20 vote last Thursday, sending the bill to the President and endin=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;g months of wrangling over the measure.&amp;amp;nbsp; The &amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;a href=3D3D"&lt;a href=3D"<a href="http://w=3D">http://w=3D</a>"&gt;<a href="http://w=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;">http://w=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;</a>&lt;a h=</span><br><span>ref=3D"<a href="http://ww.finance.senate.gov/legislation/details/hr-644">http://ww.finance.senate.gov/legislation/details/hr-644</a>"&gt;ww.finance.s=</span><br><span><a href="http://enate.gov/legislation/details/hr-644">enate.gov/legislation/details/hr-644</a>&lt;/a&gt;" style=3D3D"text-decoration: n=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;one;"&amp;gt;&amp;lt;span style=3D3D"text-decoration: underline; vert=</span><br><span>ical-align: baseline;"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Trade Facilitation and Trade E=</span><br><span>nforcement Act of 2015&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;"vertical-align: baseline;"&amp;gt; (H.R. 644) retools CBP to increase i=</span><br><span>ts focus on=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; blocking illegal trade and ensuring that leg=</span><br><span>al trade moves smoothly.&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=</span><br><span>=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); margin=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertica=</span><br><span>l-align: baseline;"&amp;gt; &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt=</span><br><span>;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 255=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;, 0); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"vertical-align: b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aseline;"&amp;gt;The major facets of thi=</span><br><span>s legislation are: &amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); margin-=</span><br><span>top: 0pt; ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"ve=</span><br><span>rtical-align: baseline;"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;ne=</span><br><span>w protections on intellectual property rights&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p di=</span><br><span>r=3D3D"ltr" st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0); margin-top: 0pt; margin-bot=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tom: 0pt;"&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"vertical-align: baseline;"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;new too=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ls to fight currency manipulation&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p dir=3D3D"ltr" style=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(25=</span><br><span>5, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;n style=3D3D"vertical-align: baseline;"&amp;gt;=3DE2=3D80=3DA2. a perma=</span><br><span>nent extension of th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e Internet Tax Freedom Act&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=</span><br><span>"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"vertical-align: baseline;"&amp;gt;S=</span><br><span>aid Senate Finance ranking member Ron Wy=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;den: &amp;amp;nbsp;=3D=</span><br><span>E2=3D80=3D9CThis bill is about coming down hard on the trade cheats w=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ho are ripping off American jobs, and the truth is past trade p=</span><br><span>olicies were o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ften too old, too slow or too weak for our=</span><br><span>country to fight back."&amp;lt;/span&amp;gt;&amp;lt;/p=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba=</span><br><span>(255, 255, 255, 0); margi=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;n-top: 0pt; margin=</span><br><span>-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;W=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;yden was perhaps the most outspoken Democrat in support of the b=</span><br><span>ill, continu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing his role as a strong backer of free trad=</span><br><span>e legislation.&amp;amp;nbsp; He was a ke=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y factor in getting T=</span><br><span>rade Promotion Authority legislation passed through Con=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g=</span><br><span>ress last summer, splitting from some of his colleagues in voicing support f=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or that act.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D=</span><br><span>3D"ltr" style=3D3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 255,=</span><br><span>0); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"font-w=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;eight: 700; text-decoration: underline; vertical-align: base=</span><br><span>line;"&amp;gt;Unusual C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oalition&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br=</span><br><span>&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;55, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;a href=3D3=</span><br><span>D"&lt;a href=3D"<a href="http://www.sen=3D">http://www.sen=3D</a>"&gt;<a href="http://www.sen=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;">http://www.sen=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;</a>&lt;a hre=</span><br><span>f=3D"<a href="http://ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?&amp;=">http://ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?&amp;=</a></span><br><span>amp;amp;congress=3D"&gt;<a href="http://ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_=">ate.gov/legislative/LIS/roll_call_lists/roll_call_vote_=</a></span><br><span>cfm.cfm?&amp;amp;amp;congress=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D114&amp;amp;amp;session=3D=</span><br><span>3D2&amp;amp;amp;vote=3D3D00022" style=3D3D"text-decoration: none;"&amp;gt;&amp;lt;s=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;pan style=3D3D"text-decoration: underline; vertical-align: ba=</span><br><span>seline;"&amp;gt;27 Democ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rats, 47 Republicans, and 1 Independ=</span><br><span>ent voted affirmatively&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>tyle=3D3D"vertical-align: baseline;"&amp;gt;.&amp;amp;nbsp; Industry groups includin=</span><br><span>g the Nat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ional Retail Federation, as well as the U.S. Ch=</span><br><span>amber of Commerce were suppor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tive of the legislation. &amp;a=</span><br><span>mp;nbsp;National Association of Manufacturers=3DE2=3D80=3D99=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt; president Jay Timmons said =3DE2=3D80=3D9Cif senators want to grow manu=</span><br><span>facturing i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n the United States, then they should pass th=</span><br><span>is bill immediately.=3DE2=3D80=3D9D&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/p&amp;g=</span><br><span>t;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"vertical-align: base=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;line;"&amp;gt;Notable =3DE2=</span><br><span>=3D80=3D9CNay=3DE2=3D80=3D9D votes include Sens. Durbin and Reid, wh=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;o both expressed disappointment that the legislation was a =3DE2=</span><br><span>=3D80=3D9Cwatered d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;own=3DE2=3D80=3D9D version of a bill p=</span><br><span>reviously passed by the Senate. &amp;amp;nbsp;=3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D9=</span><br><span>DI like that [Senate] version, and that strong language on currency manipu=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;lation,=3DE2=3D80=3D9D Durbin said =3DE2=3D80=3D93 that lan=</span><br><span>guage required Commerce to co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nsider =3DE2=3D80=3D9Cunder=</span><br><span>valued=3DE2=3D80=3D9D currencies to be equivalent to counterv=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ailable subsidies. &amp;amp;nbsp;=3DE2=3D80=3D9CThe conference report that=3D=</span><br><span>E2=3D80=3D99s back t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o us now and before the Senate at th=</span><br><span>is moment is a much different bill."&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/p&amp;=</span><br><span>gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255,=</span><br><span>255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"font-weight: 700; text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: underl=</span><br><span>ine; vertical-align: baseline;"&amp;gt;Purpose and Provisions&amp;lt;/s=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-=</span><br></blockquote><span>color: rgba(255, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; margin-top: 0pt; margin-b=</span><br><span>ottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: basel=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ine;"&amp;gt;House and Senate negotiators agreed on a final customs bill in Dec=</span><br></blockquote><span>embe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r. &amp;amp;nbsp; The House passed the measure 256-158 b=</span><br><span>ut the legislation stalled i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n the Senate over a provisio=</span><br><span>n added in conference that permanently extends a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; morator=</span><br><span>ium on Internet access taxes. &amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3=</span><br><span>D"ltr" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0=</span><br><span>); margin-top: 0pt; margin-bottom: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt;"&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"vertical-align: baseline;"&amp;gt;That provision is perhaps the=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; most reported on section in the bill =3DE2=3D80=3D93 it=3DE2=3D8=</span><br></blockquote><span>0=3D99s almost certainl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y the most popular - it applies t=</span><br><span>o localities, states, and the federal gover=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nment itself.=</span><br><span>&amp;amp;nbsp; Sen. Lamar Alexander cited it though as explanation for=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; his =3DE2=3D80=3D9Cnay=3DE2=3D80=3D9D vote: "t&amp;lt;/span&amp;gt;&amp;lt;s=</span><br></blockquote><span>pan style=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);=</span><br><span>"&amp;gt;he federal government shouldn't be telling the state=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>s what their tax structure should be."&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;=</span><br></blockquote><span>p dir=3D3D"ltr" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 2=</span><br><span>55, 255, 0); margin-top: 0pt; margin-bottom: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt;"&amp;gt;&amp;l=</span><br><span>t;span style=3D3D"vertical-align: baseline;"&amp;gt;Another important provision,=</span><br><span>k=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nown as the ENFORCE Act, would require the CBP to more=</span><br><span>aggressively investig=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ate complaints that companies are e=</span><br><span>vading anti-dumping or countervailing dut=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ies on imports b=</span><br><span>y mislabeling or disguising the shipments.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;=</span><br><span>lt;p d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ir=3D3D"ltr" style=3D3D"background-color: rgba(255=</span><br><span>, 255, 255, 0); margin-top: 0p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t; margin-bottom: 0pt;"&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;The bill i=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ncludes a new Trade Enforcement Fund to bring trade cases through the W=</span><br><span>TO, t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o investigate the implementation of trade requireme=</span><br><span>nts by other countries, a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd to respond to complaints of t=</span><br><span>rade violations. &amp;amp;nbsp;It&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;also creates a=</span><br><span>nine-member=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Advisory Committee on International Exchang=</span><br><span>e Rate Policy, whose members mus=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t be comprised of indivi=</span><br><span>duals from the private sector who are selected by bo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;th c=</span><br><span>hambers of Congress and the President (three members each).&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/p&amp;gt;&amp;lt;b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0); margin-t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;op: 0pt; margin=</span><br><span>-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"font-weight: 700; text-decorati=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;on: underline; vertical-align: baseline;"&amp;gt;Currency Manipulat=</span><br><span>ion&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r&amp;gt;&amp;lt;p dir=3D3D"ltr" s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0); margin-t=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;op: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: bas=</span><br><span>eline;"&amp;gt;Curr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ency manipulation has been a long-standin=</span><br><span>g concern of American policy-makers=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; and a particularly c=</span><br><span>ontentious issue in global trade relations; claims that=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; C=</span><br><span>hina has been chronically undervaluing its currency have made the news for=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; a number of years.&amp;amp;nbsp; Advocates for stricter enforc=</span><br><span>ement of currency man=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ipulation provisions claim that und=</span><br><span>ervalued currencies operate similarly to e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xport subsidie=</span><br><span>s =3DE2=3D80=3D93 a prohibited practice within the World Trade Organ=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ization.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" sty=</span><br><span>le=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0); margin=</span><br><span>-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-a=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;lign: baseline;"&amp;gt;The final bill dropped a Senate provision that w=</span><br><span>ould have r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;equired the Commerce Department to treat unde=</span><br><span>rvalued currency as an illegal s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ubsidy under U.S. counte=</span><br><span>rvailing duty law.&amp;amp;nbsp; This provision would have o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>pened the door for compensatory tariffs to be levied against goods which ori=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ginate from countries which are found to purposely under=</span><br><span>value their currency=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; in order to boost their exports. Th=</span><br><span>e bill does, however, include other meas=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ures that give t=</span><br><span>he Treasury Department new tools to fight currency manipulat=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ion:&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-col=</span><br><span>or: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0); margin-top: 0pt; margin-bott=</span><br><span>om: 0pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(=</span><br><span>255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" s=</span><br><span>tyle=3D3D"background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(255, 255, 255, 0); marg=</span><br><span>in-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;cre=</span><br><span>ates a s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pecial fund for the CBP to ensure trading partne=</span><br><span>rs follow the rules and to b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ring disputes before the WTO=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-co=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;lor: rgba(255, 255, 255, 0); margin-top: 0pt; margin-bottom: 0pt;=</span><br></blockquote><span>"&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;increases f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;undi=</span><br><span>ng to the National Intellectual Property Rights Coordination Center&amp;lt;/spa=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0); marg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in-top: 0pt; margin-bot=</span><br><span>tom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255,=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;establishes the Commercial=</span><br><span>Customs Operation=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s Advisory Committee jointly between C=</span><br><span>BP and Treasury&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"lt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r=</span><br><span>" style=3D3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt; marg=</span><br><span>i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3DA2 &amp;amp;nbsp;=</span><br><span>requires CBP to investigate claims from other agencies of evasi=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;on of anti-dumping or countervailing duties.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;l=</span><br></blockquote><span>t;br&amp;gt;&amp;lt;p dir=3D3D"ltr" st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"background-color:=</span><br><span>rgba(255, 255, 255, 0); margin-top: 0pt; margin-bot=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tom:=</span><br><span>0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;&amp;lt;u&amp;gt;&amp;lt;b&amp;g=</span><br><span>t;Relation to TPP&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;b&amp;gt;&amp;lt;/u&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"vertical-ali=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gn: baseline;"&amp;gt;Sen. Major=</span><br><span>ity Leader McConnell has said that the Senate will n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ot v=</span><br><span>ote on the Trans-Pacific Partnership before the November elections, so i=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;t may come as a surprise to see a bill which deals with enfo=</span><br><span>rcing trade deal=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s like TPP pass both houses of Congress.=</span><br><span>&amp;amp;nbsp; However this bill=3DE2=3D80=3D99s p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rovisions f=</span><br><span>or protecting IP rights, toughening countervailing duties, and ta=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;ckling currency manipulation are a necessary prerequisite for agree=</span><br><span>ments lik=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e TPP (or the far more nebulous TTIP).&amp;amp;nbsp=</span><br><span>; The new age of trade agreements=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;will deal ex=</span><br><span>tensively in issues like intellectual property protection=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>, trade in services, and high-tech product trading; types of commerce which=</span><br></blockquote><span>a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re far more difficult to regulate compared to the trad=</span><br><span>e of physical goods. &amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;l=</span><br><span>t;p dir=3D3D"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;); margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"=</span><br><span>vertical-align: base=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;line;"&amp;gt;So, despite the fact that T=</span><br><span>PP won=3DE2=3D80=3D99t get a vote until after No=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;vember (=</span><br><span>and perhaps not in 2016 at all), and may not pass even then, the pro=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;tections set forward in the customs bill are necessary to allow A=</span><br><span>merican com=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;panies to continue to compete in the global m=</span><br><span>arketplace.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r=3D=</span><br><span>3D"ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); margin-top: 0pt=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"font-weigh=</span><br><span>t: 700; text-decoration: und=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;erline; vertical-align: base=</span><br><span>line;"&amp;gt;Price of Passage&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p dir=3D3D"=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ltr" style=3D3D"background-color: rgba(255, 255, 255, 0); m=</span><br><span>argin-top: 0pt; mar=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"vertical-align: baseline;"&amp;gt;In order to incl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ude the=</span><br><span>permanent extension of the Internet Tax Freedom Act, McConnell had t=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;o promise that a vote would be held this year on the Marketplac=</span><br><span>e Fairness Ac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t.&amp;amp;nbsp; That legislation grants states=</span><br><span>greater authority to collect sales t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;axes from online bu=</span><br><span>sinesses who sell products within their borders.&amp;amp;nbsp; Wh=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ile McConnell himself opposes the bill, it was the only way to get the c=</span><br><span>usto=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ms bill (with the tax amendment attached) unstuck.&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;span style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0); vertical-align: baseline;"&amp;gt;Jus=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;t because McConnell has promised it will be brought to a vote d=</span><br><span>oesn=3DE2=3D80=3D99=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t mean it will be a smooth process - t=</span><br><span>he Senate passed the Marketplace Fairn=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ess Act in 2013 wi=</span><br><span>th 69 votes, and most of the lawmakers who voted for it ar=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;e still in the chamber.&amp;amp;nbsp; Some lawmakers like Kelly Ayotte, who is=</span><br><span>facin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g a tough reelection campaign this year, have vowe=</span><br><span>d to fight tooth-and-nail a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gainst it.&amp;amp;nbsp; Despite t=</span><br><span>hese detractors in the Senate, the real battle may=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; occur=</span><br><span>in the House, where two competing proposals have been brought forward=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;=</span><br><span>lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;hr style=3D3D"color: rgba(0, 0=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; box-sizing: content-box; border-style: solid;=</span><br><span>border-color: gray; height: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;px;"&amp;gt;&amp;lt;br&amp;gt;Upcoming=</span><br><span>/Recent Updates&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;=</span><br><span>amp;nbsp;Municipa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l Bond Rule&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=</span><br><span>=3D80=3DA2 &amp;amp;nbsp;Budget (Ir)Resolution&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D80=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3DA2 &amp;amp;nbsp;Puerto Rico&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3DE2=3D8=</span><br><span>0=3DA2 &amp;amp;nbsp;Derivatives Agreement w. EU&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/div&amp;gt;=</span><br><span>&amp;lt;div&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Econ. Revitalization/Housing&amp;lt;br&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;Below the Rad=</span><br><span>ar/Customs Bill &amp;amp;nbsp;(Feb. 16)&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Internat=</span><br><span>ional=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Tax Status &amp;amp;nbsp;(Feb. 11)&amp;lt;/div&amp;gt;&amp;lt;div&amp;=</span><br><span>gt;The Fed Holds Steady &amp;amp;nbsp;(Feb. 10)&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;Obama's FY17 Budget &amp;amp;nbsp;(Feb. 9)&amp;amp;nbsp;&amp;lt;div&amp;gt;Tax Tal=</span><br><span>k of the Town &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Def=</span><br><span>ending Dodd-Frank &amp;amp;nbsp;(Feb. 2)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;: Deficit/Debt Dormancy (Jan. 28)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br></blockquote><span>tyle=3D3D"background-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>The Fed Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span=3D&lt;/span&gt;&lt;br&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Debate Myths Challenged &amp;a=</span><br><span>mp;nbsp;(Jan. 25)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Regulating the=3D&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;span&gt; Regulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' Ta=</span><br><span>x/Healthcare Policy &amp;amp;nbsp;(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Jan 20)&amp;lt;/div&amp;gt;&amp;lt;di=</span><br><span>v&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;position-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=</span><br><span>on: -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;letterpress;"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;=</span><br><span>(Jan. 17)&amp;lt;/span&amp;gt;&amp;lt;br style=3D3D"color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;80392);"&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill-color: rgba(130, 98, 83, 0.098=</span><br><span>0392);"&amp;gt;2016 Tax Agenda on the Hill &amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(Jan. 1=</span><br><span>6)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>posi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;G=</span><br><span>lass-Steagall, Take 2 &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;(Jan. 13)&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compos=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;ition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0);"&amp;gt;2016 Tax=</span><br><span>Policy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/div&amp;g=</span><br><span>t;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;San=</span><br><span>ders Proposals/GS &amp;amp;amp; TBTF (Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;v style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composi=</span><br><span>tion-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);=</span><br><span>"&amp;gt;Sanders' Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"color: rgba(0, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 98, 83, 0.0980392);"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;);"&amp;gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;amp;nbsp;&amp;lt;/span&amp;gt=</span><br></blockquote><span>;&amp;lt;span style=3D3D"back=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ground-color: rgba(255, 255, 25=</span><br><span>5, 0);"&amp;gt;Year-End Review: Fin. Reg.&amp;amp;nbsp;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;n=</span><br><span>bsp;(Dec. 29) &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&amp;gt;Omnibu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s R=</span><br><span>eview (Dec. 15)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0,=</span><br><span>0, 0.701961);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; -webkit-composition-fill-color: rgba(130,=</span><br><span>98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Situation &amp;amp;nbsp;(Dec. 14=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -webkit-composit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;or: rgba(255, 255, 255, 0);"&amp;gt;FY 2016 Omnibus Talks (Dec. 10)&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v style=3D3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-composition-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 8=</span><br><span>3, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;div style=3D3D"color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(0, 0, 0, 0.70196=</span><br><span>1); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;80392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;Tax Exten=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;der Negotiations &amp;amp;nbsp;(Dec. 6)&amp;amp;nbs=</span><br><span>p;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;Brown on HFT=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;(Dec. 4)&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;background-color: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;nbsp;(Dec. 3)&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/=</span><br><span>span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-compositio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"background-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: r=</span><br><span>gba(0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;----&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(130, 98, 83, 0.0980392);"&amp;gt=</span><br><span>;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/=</span><br><span>div&amp;gt;&amp;lt;br&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;On Feb=</span><br><span>11, 2016, at 7:47 PM, Dana &amp;amp;lt;&amp;lt;a href=3D3D"mailto:danac=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;"&amp;gt;&lt;a href=3D=</span><br><span>"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;lt;/a&amp;gt;&amp;amp;gt; wro=</span><br><span>te:&amp;lt;br&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;blockquot=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e type=3D=</span><br><span>3D"cite"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" content=3D3D"t=</span><br><span>ext/html;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-t=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;ype" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;=</span><br><span>lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;me=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ta h=</span><br><span>ttp-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;Mike &amp;amp;amp; Co. &amp;amp;nbsp;--&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div s=</span><br><span>tyle=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 83, 0.0980392); text-dec=</span><br><span>oration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div styl=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;e=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-=</span><br><span>color: rgba(13=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0, 98, 83, 0.0980392); text-decoration: -w=</span><br><span>ebkit-letterpress;"&amp;gt;One thing the t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;wo parties agree i=</span><br><span>s that international tax reform is a fiscally necessary is=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;sue to take up -- that Uncle Sam is leaving hundreds of billions of dollar=</span><br><span>s o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n the table overseas annually. &amp;amp;nbsp; But they wo=</span><br><span>uld also generally agree th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;at it is not going to get don=</span><br><span>e this year. &amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: r=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0980392); text-decoration: -webkit-letterpress;"&amp;gt=</span><br><span>;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;3, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;Under curr=</span><br><span>ent law, tho=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;se profits are subject only to federal taxes=</span><br><span>if they are returned, or repatr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iated, to the U.S. where=</span><br><span>they face a top rate of 35 percent. &amp;amp;nbsp;Many comp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>anies avoid U.S. taxes on those earnings by simply leaving them overseas.&amp;lt=</span><br><span>;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=</span><br><span>1); -webkit-composition-fill-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;b=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>r&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=</span><br></blockquote><span>-composition-fi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ll-color: rgba(130, 98, 83, 0.0980392); t=</span><br><span>ext-decoration: -webkit-letterpress=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;There is bipart=</span><br><span>isan activity on the issue in both houses of Congress. Oba=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;ma has a major reform proposal on the table. &amp;amp;nbsp;So is this the year=</span><br><span>, in t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he year of surprises?&amp;lt;/div&amp;gt;&amp;lt;div style=3D3=</span><br><span>D"color: rgba(0, 0, 0, 0.701961); -we=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bkit-composition-fi=</span><br><span>ll-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rg=</span><br><span>ba(0, 0, 0, 0.701961);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decorati=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on: -webkit-le=</span><br><span>tterpress;"&amp;gt;Best,&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.70=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;1961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;coration: -webkit-letterpress;"&amp;gt;&amp;=</span><br><span>lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt; 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; te=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xt-decoration: -webkit-letterpress;"&amp;gt;Dana&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;; text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=</span><br><span>style=3D3D"color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(0, 0, 0, 0.701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.098=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0392); text-d=</span><br><span>ecoration: -webkit-letterpress;"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div class=3D3D"block bloc=</span><br><span>k=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-thehill-blocks ntv844166-128893-60429" id=3D3D"ntv8441=</span><br><span>66-128893-60429" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"box-sizing: border-box; marg=</span><br><span>in-bottom: 23px;"&amp;gt;&amp;lt;hr style=3D3D"box-sizing: cont=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=</span><br><span>nt-box; border-style: solid; border-color: gray; height: 0px;"&amp;gt;&amp;lt;p clas=</span><br><span>s=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;" style=3D3D"box-sizing: border-box; margin: 0px 0=</span><br><span>px 15px; font-weight: bold;"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;span&gt; 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br></blockquote><span>80392);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; text-decoration: -webkit-letterpress;"&amp;gt;Reform=</span><br><span>s in the area of international=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; tax deal with both the re=</span><br><span>patriation of foreign-derived profits and the issu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e of c=</span><br><span>orporate inversions. &amp;amp;nbsp;Testifying today, Treasury Secretary Jack L=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ew encouraged the parties in Congress to overcome their dif=</span><br><span>ferences on both,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; which he believes surmountable: &amp;amp;n=</span><br><span>bsp;=3DE2=3D80=3D9CI just want to underscore th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e urgency=</span><br><span>of dealing with inversions =3DE2=3D80=3DA6 We can=3DE2=3D80=3D99t wait a ye=</span><br><span>ar t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o deal with this,=3DE2=3D80=3D9D Lew said during a S=</span><br><span>enate Finance hearing on the O=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bama administration=3DE2=3D=</span><br><span>80=3D99s budget. Congress could pass narrow legislation=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; o=</span><br><span>n inversions, he said, even if broader reform of the international system i=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;s preferable.&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webk=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;it-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebki=</span><br><span>t-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392);"&amp;gt;&amp;lt;b style=3D3D"te=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xt-decorati=</span><br><span>on: -webkit-letterpress;"&amp;gt;&amp;lt;u&amp;gt;Stirrings in the Senate&amp;lt;/u&amp;gt;&amp;lt;/=</span><br><span>b&amp;gt;&amp;lt;/div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;div style=3D3=</span><br><span>D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;span&gt;r: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;b style=3D3D"te=</span><br></blockquote><span>xt-decoration: -webkit-lette=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rpress;"&amp;gt;&amp;lt;u&amp;gt;&amp;lt;br&amp;=</span><br><span>gt;&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: -webkit-letterpress;"&amp;gt=</span><br><span>;Sen. Schumer also announced today that he is in cont=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;act=</span><br><span>with Speaker Ryan about coming to an agreement on repatriating corporate=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; profits. &amp;amp;nbsp;They were unable to come to an agreemen=</span><br><span>t last year on a simi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lar measure put forth as part of a l=</span><br><span>arger reform effort. &amp;amp;nbsp;Schumer said t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oday: =3DE2=</span><br><span>=3D80=3D9CWe=3DE2=3D80=3D99re trying to bridge over, of course, the divide b=</span><br><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tween existing proposals. &amp;amp;nbsp;I remain at the tab=</span><br><span>le ready to work.=3DE2=3D80=3D9D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -we=</span><br></blockquote><span>bkit-letter=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;press;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div styl=</span><br><span>e=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-l=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;etterpress;"&amp;gt;One of the key differences between the partie=</span><br><span>s concerns whether=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the money raised from tax reform shou=</span><br><span>ld be turn into government revenue for=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; more spending, or=</span><br><span>used to pay down the debt or pass tax cuts. &amp;amp;nbsp;After t=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;he Senate Finance hearing yesterday, Chair Hatch said: &amp;amp;nbsp;=3DE2=</span><br><span>=3D80=3D9CI'm ac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tually working on international, but I j=</span><br><span>ust don't think it's going to get do=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ne this year, becaus=</span><br><span>e, you know, let's face it, the Democrats are going to w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ant to raise revenue. &amp;amp;nbsp;They want money to spend.=3DE2=3D80=3D9D &amp;am=</span><br><span>p;nbsp;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961)=</span><br><span>; -webkit-composition-fill-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(130, 98, 83, 0.09=</span><br><span>80392); text-decoration: -webkit-letterpress;"&amp;gt;A=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t tha=</span><br><span>t same hearing, Sen. Shelby pushed a corporate integration plan he is d=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;eveloping to eliminate the double taxation of corporate incom=</span><br><span>e by providing c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;orporations a dividend deduction. &amp;amp;n=</span><br><span>bsp;He's awaiting a score by the Joint C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ommittee on Taxa=</span><br><span>tion. &amp;amp;nbsp;Dividend deductions are usually quite expensive a=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;nd regressive, so it will a feat to attract any Democratic support,=</span><br><span>especial=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ly for him.&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -web=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;kit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;b style=3D3D"tex=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-d=</span><br><span>ecoration: -webkit-letterpress;"&amp;gt;&amp;lt;u&amp;gt;Brady's Push&amp;amp;nbsp;&amp;lt;/u&amp;gt=</span><br><span>;&amp;lt;/b&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(1=</span><br><span>30, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div style=3D3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fill-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;Meanwh=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;ile, Ways and Means Chair Kevin Brady has said that he wants a vote thi=</span><br><span>s yea=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r on moving the United States into a territorial ta=</span><br><span>x system, which would per=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;manently exempt US-based busine=</span><br><span>sses from paying taxes on income earned abroa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d. &amp;amp;nbs=</span><br><span>p;He also wants to lower the corporate rate to 20 percent. &amp;amp;nbsp;In t=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;he face of these proposals it is difficult to see what sort=</span><br><span>of compromise ca=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n be found between Democrats and Republ=</span><br><span>icans, as the former may be more preo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ccupied just keepin=</span><br><span>g alive the idea that foreign profits should be taxed at a=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;ll. =3DE2=3D80=3D9CThe goal of these reforms are not to generate more spen=</span><br><span>ding,=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3D9D Brady said. =3DE2=3D80=3D9CIt=3DE2=3D=</span><br><span>80=3D99s to bring back real dollars to be re=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;invested in t=</span><br><span>he United States.=3DE2=3D80=3D9D&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0=</span><br><span>, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; text-decoration: -webkit-letter=</span><br><span>press;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=</span><br><span>, 0.0980=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;392); text-decoration: -webkit-letterpress;"&amp;gt;=</span><br><span>Brady has been advocating for i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nternational tax reform s=</span><br><span>ince he took over Ways and Means. &amp;amp;nbsp;Last month,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; h=</span><br><span>e spoke with Sen. Hatch and they were both committed to getting something d=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;one. &amp;amp;nbsp;Senior Republicans believe the country=3DE2=3D=</span><br><span>80=3D99s international ta=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;x problems =3DE2=3D80=3D94 inve=</span><br><span>rsions and Europe going after revenues from U.S. co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mpani=</span><br><span>es among them =3DE2=3D80=3D94 are urgent. &amp;amp;nbsp;But Brady strongly hinte=</span><br><span>d tha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t all that work would be aimed at setting things up=</span><br><span>for 2017, when Republica=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ns want =3DE2=3D80=3D9Cpro-grow=</span><br><span>th tax reform under a Republican president.=3DE2=3D80=3D9D=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt; Perhaps that=3DE2=3D80=3D99s no huge shock, but it does seem to set up so=</span><br><span>mething o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f a disconnect, given all the talk of urgency.&amp;=</span><br><span>lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(0, 0, 0, 0.701=</span><br><span>961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;80392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;=</span><br><span>&amp;lt;div style=3D3D"color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-color: rgba(130, 98, 83,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.0980392);=</span><br><span>text-decoration: -webkit-letterpress;"&amp;gt;Brady and his supporters=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; have been pushing the idea that American money is either being t=</span><br></blockquote><span>axed by oth=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;er countries or being taken over by foreign c=</span><br><span>ompetitors in an inversion -- t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ypically, when an America=</span><br><span>n company incorporates abroad so its earnings are n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o lon=</span><br><span>ger subject to American taxes. &amp;amp;nbsp;Brady says the result is an erosio=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;n of our tax base and a lock-out effect of American capital=</span><br><span>being =3DE2=3D80=3D9Ct=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rapped=3DE2=3D80=3D9D abroad that=</span><br><span>can be solved by fixing our uncompetitive tax co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;de.&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill-color: rgba(130, 98, 83, 0.0980392); text-decora=</span><br><span>tion: -webkit-letterpres=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;ion-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;b style=3D3D"t=</span><br><span>ext-decoration: -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-letterpress;"&amp;gt;&amp;lt;u&amp;gt;Presid=</span><br><span>ential Proposal&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"col=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 98, 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392); text-decoration: -webkit-let=</span><br><span>terpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"c=</span><br><span>olor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;g=</span><br><span>t;The President=3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D99s FY 2017 budget contains a=</span><br><span>surprising source of new revenue to pay for i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ts spendin=</span><br><span>g programs =3DE2=3D80=3D93 a major piece of international tax policy ref=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;orm: a six-year, $478 billion public-works program for highw=</span><br><span>ay, bridge and t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ransit upgrades, half of it to be financ=</span><br><span>ed with a one-time, 14 percent tax o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n U.S. companies=3DE=</span><br><span>2=3D80=3D99 overseas profits and a 19 percent rate thereafter.=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt; &amp;amp;nbsp;The issue of companies holding foreign profits at locations=</span><br><span>abroad, w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;here they are exempt from taxation until repat=</span><br><span>riated, has vexed policy maker=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s on both sides for some t=</span><br><span>ime. &amp;amp;nbsp;It=3DE2=3D80=3D99s estimated that these profi=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ts add up to nearly $2 trillion.&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=</span><br><span>"color: rgba(0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ext-decoration: -=</span><br><span>webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba=</span><br><span>(0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0, 0, 0.701961); -webkit-composition-fill-color: rgb=</span><br><span>a(130, 98, 83, 0.098039=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;2); text-decoration: -webkit-lett=</span><br><span>erpress;"&amp;gt;The issue of companies holding fo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;reign prof=</span><br><span>its at locations abroad, thereby exempt from taxation unless those=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; profits are brought home, has vexed policy makers on both sides f=</span><br><span>or some ti=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;me. &amp;amp;nbsp;Microsoft Corp., Apple Inc., Goo=</span><br><span>gle Inc. and five other tech firms=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; now account for more t=</span><br><span>han a fifth of the $2.10 trillion in profits that U.S=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;. c=</span><br><span>ompanies are holding overseas. &amp;amp;nbsp;In keeping with the idea that Obama=</span><br><span>=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3D99s final budget is =3DE2=3D80=3D9Cmore pol=</span><br><span>itics than policy,=3DE2=3D80=3D9D these r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;evenue-gaining p=</span><br><span>roposals are meant to spark discussion more so than be a mod=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;el for laws going forward.&amp;amp;nbsp;&amp;lt;/div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;div style=3D=</span><br><span>3D"text-decoration: -we=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bkit-letterpress;"&amp;gt;&amp;lt;div&amp;gt;=</span><br><span>&amp;lt;div class=3D3D"block block-thehill-blocks ntv844166-1=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>28893-60429" id=3D3D"ntv844166-128893-60429" style=3D3D"box-sizing: border-=</span><br></blockquote><span>box; m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-bottom: 23px;"&amp;gt;&amp;lt;hr style=3D3D"box-sizi=</span><br><span>ng: content-box; border-style: sol=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;id; border-color: gray=</span><br><span>; height: 0px;"&amp;gt;&amp;lt;p class=3D3D"" style=3D3D"box-sizing: bor=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;der-box; margin: 0px 0px 15px; font-weight: bold;"&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961);=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt; -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorati=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;on: -webkit-letterpress;"&amp;gt;Upcoming/Recent Updates&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;div style=3D3D"color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-color: rgba(130, 98, 83, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.098=</span><br><span>0392); text-decoration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv style=3D3D"co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(0, 0, 0, 0.701961); -webkit-co=</span><br><span>mposition-fill-color: rgba(130, 98, 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392); text=</span><br><span>-decoration: -webkit-letterpress;"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Custom=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;s Bill&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-compositio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ress;"&amp;gt;=3D=</span><br><span>E2=3D80=3DA2 &amp;amp;nbsp;Municipal Bond Rule&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"col=</span><br><span>or: rgba(0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.098039=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;2); text-decoration: -web=</span><br><span>kit-letterpress;"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;Budget Irresoluti=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;on&amp;amp;nbsp;&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;In=</span><br><span>ternational Tax Status &amp;amp;nbsp;(Feb. 11)&amp;lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;l=</span><br><span>t;div&amp;gt;The Fed Holds Steady &amp;amp;nbsp;(Feb. 10)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Obam=</span><br><span>a's FY17 Budget &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;(Feb. 9)&amp;amp;nbsp;&amp;lt;div&amp;gt;T=</span><br><span>ax Talk of the Town &amp;amp;nbsp;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Defending=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt; Dodd-Frank &amp;amp;nbsp;(Feb. 2)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: D=</span><br><span>eficit/Debt Dormancy (Jan. 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The Fe=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;d Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div&amp;gt;Debate Myths Challen=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ged &amp;amp;nbsp;(Jan. 2=</span><br><span>5)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Regulating the Regulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/d=</span><br><span>iv=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;Sanders' Tax/Heal=</span><br><span>thcare Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;HRC's Tax Poli=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;cy &amp;amp;nbsp;(Jan. 17)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;2016 Ta=</span><br><span>x Agenda on the Hill &amp;amp;nbsp;(Jan. 16)&amp;lt;/div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;=</span><br><span>div&amp;gt;Glass-Steagall, Take 2 &amp;amp;nbsp;(Jan. 13)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;2016 Tax Policy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan=</span><br><span>&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;San=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ders Proposals/GS &amp;amp;amp; TBTF (Ja=</span><br><span>n. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgr=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0);"&amp;gt;Sanders' Fin Reg Proposal=</span><br></blockquote><span>s &amp;amp;nbsp;(Jan. 5=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;amp=</span><br><span>;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;sp=</span><br><span>an&gt;und-color: rgba(255, 255, 255, 0);"&amp;gt;Year-End Review: Fin. Reg.&amp;amp;nbs=</span><br><span>p;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span style=3D3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;(Dec. 29) &amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;Omnibus R=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eview (Dec. 15)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=</span><br><span>iv&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5=</span><br><span>5, 255, 0);"&amp;gt;Omnibus Situation &amp;amp;nbsp;(Dec. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;div&amp;gt;&amp;lt;span style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;FY 2016 Omnibus Talks (Dec. 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0)&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-col=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;Tax Extender Negotiations &amp;amp;=</span><br><span>nbsp;(Dec. 6)&amp;amp;nbsp;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;=</span><br><span>gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;B=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;rown on HFT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(255, 255,=</span><br><span>255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;nbsp;(Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;/div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255,=</span><br><span>255,=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt; 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/d=</span><br><span>iv&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;On=</span><br><span>Feb 10, 2016, at 7:41 PM, Dana &amp;amp;lt;&amp;lt;a hre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f=3D3D"=</span><br><span>&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">mailto:[email-masked]</a>&lt;/a&gt;"&amp;gt;=</span><br><span>&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;lt;/a&amp;gt;&amp;a=</span><br><span>mp;gt; wrote:&amp;lt;br&amp;gt;&amp;lt;br=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;=</span><br><span>lt;/div&amp;gt;&amp;lt;blockquote type=3D3D"cite"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D=</span><br><span>3D"content-type" cont=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;ent=3D3D"text/html; ch=</span><br><span>arset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;=</span><br><span>gt;&amp;lt;meta http-e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;quiv=3D3D"content-type" content=3D3D"t=</span><br><span>ext/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;an&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" co=</span><br><span>ntent=3D3D"text/html; charse=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;=</span><br><span>lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"cont=</span><br><span>ent-type" co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ntent=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;=</span><br><span>&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=</span><br><span>an=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;Mike &amp;amp;amp; Co. --&amp;lt;/span=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;&amp;lt;br&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt=</span><br><span>;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;The Chair of the Federal Reserve=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt; went before House Financial Services to provide a report on the nation=</span><br><span>'s ec=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;onomic condition, a kind of bi-annual checkup. No n=</span><br><span>ews was made, no firework=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s went off and no market mood s=</span><br><span>wings occurred.&amp;amp;nbsp; As for the Fed's next m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ove, it=</span><br><span>'s wait-and-see a little while longer.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p=</span><br><span>class=3D3D"Ms=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oNormal" style=3D3D"margin-bottom: 0.0001p=</span><br><span>t;"&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;We thought it might happen in March, signs pointed=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; to it.&amp;amp;nbsp; Now, the guess is June (sound familiar?) &amp;amp;n=</span><br></blockquote><span>bsp;For details, do=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n't wait, see below.&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;Best,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;g=</span><br><span>t;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255,=</span><br><span>255, 0);"&amp;gt;Dana&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span styl=</span><br></blockquote><span>e=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;---=</span><br><span>-------&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" sty=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;le=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"backgrou=</span><br><span>nd-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;Economic Checkup&amp;l=</span><br><span>t;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"ma=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;rgin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color=</span><br><span>: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;Fed Chair Yellen testified=</span><br><span>before House Financial Services this mornin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g for the Fe=</span><br><span>deral Reserve=3DE2=3D80=3D99s bi-annual Monetary Policy Report.&amp;amp;nbsp; T=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;hese appearances allow Yellen to explain the Fed=3DE2=3D80=3D=</span><br><span>99s, actually the Fed=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eral Open Market Committee (FOMC)=3D=</span><br><span>E2=3D80=3D99s, analysis and projections regard=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing Americ=</span><br><span>a's economic performance as well as to signal the factors underlyi=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;ng its actions in the months ahead. &amp;amp;nbsp;&amp;lt;br&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorm=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al" style=3D3D"marg=</span><br><span>in-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;The rate change in December 2015 was the f=</span><br></blockquote><span>irst time the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Fed raised rates since 2006 -- some worry t=</span><br><span>hat even a modest increase in ra=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tes at this juncture wou=</span><br><span>ld&amp;amp;nbsp;further&amp;amp;nbsp;slow&amp;amp;nbsp;already limited&amp;amp;nbsp;=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;economic&amp;amp;nbsp;growth&amp;amp;nbsp;after years of uncertainty.&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;MsoNormal" style=3D=</span><br><span>3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-colo=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;r: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u&amp;gt;The Basics&amp;lt;/u=</span><br></blockquote><span>&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D=</span><br></blockquote><span>3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;The bot=</span><br><span>tom line: the FOMC won=3DE2=3D80=3D99t rollbac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;k rates in=</span><br><span>March and it=3DE2=3D80=3D99s not likely to raise them either.&amp;amp;nbsp; The=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Fed likes what it sees in the labor market, wage growth=</span><br><span>looks strong, and e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;merging market missteps continue to b=</span><br><span>e a threat to the US economy but perhap=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s not an immediat=</span><br><span>e one.&amp;amp;nbsp; The next rate move is almost certain to be an i=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;ncrease but it could wait until June or later.&amp;amp;nbsp;&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"M=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;soNormal" style=3D3D"margin=</span><br><span>-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;: rgba(255, 255, 255, 0);"&amp;gt;Yellen reiterated much of the FOMC statemen=</span><br><span>t from=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; last month: &amp;amp;nbsp;the labor market remains st=</span><br><span>rong, but shows some signs of r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;emaining slack, that the l=</span><br><span>ow inflation we have seen is caused by =3DE2=3D80=3D9Ctr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ansitory=3DE2=3D80=3D9D effects (low energy prices), and that global market u=</span><br><span>ncert=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ainty creates some level of risk for slow growth at=</span><br><span>home and abroad.&amp;amp;nbsp; T=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hough Yellen did not make a=</span><br><span>prediction on how long these transitory market e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ffects w=</span><br><span>ould last, a number of forecasts for oil prices show the dip lasting=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt; through 2016.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal"=</span><br><span>style=3D3D"margin-bottom: 11pt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&amp;gt;Expanding on gl=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;obal growth issues, Yellen said "These developments, if they prove per=</span><br><span>sisten=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t, could weigh on the outlook for economic activit=</span><br><span>y and the labor market, al=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;though declines in longer-term=</span><br><span>interest rates and oil prices could provide s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ome offset=</span><br><span>," she added: "Foreign economic developments, in particular, pose r=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;isks to US economic growth."&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=</span><br></blockquote><span>p class=3D3D"MsoNormal" style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"margin-bottom: 11pt;"=</span><br><span>&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;Partisan Review&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=</span><br><span>=3D3D"MsoNormal" style=3D3D"margin-bottom=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 11pt;"&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The GOP i=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;s generally critical of "accommodative" (lower) Fed rates.&amp;a=</span><br><span>mp;nbsp;&amp;amp;nbsp; High-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;net-worth individuals benefit th=</span><br><span>e most from high rates through dividends and=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; interest fr=</span><br><span>om savings.&amp;amp;nbsp;&amp;amp;nbsp;Low rates allow more growth for the middl=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;e- and lower-classes&amp;amp;nbsp;at the risk of inflation,&amp;amp;=</span><br><span>nbsp;tacitly supporting D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;emocrats=3DE2=3D80=3D99 progres=</span><br><span>sive fiscal policy goals.&amp;amp;nbsp;&amp;amp;nbsp;Some conservat=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ive economists have gone so far as to blame low interest rates pushed by t=</span><br><span>he=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Fed in the 1990=3DE2=3D80=3D99s for the market meltdo=</span><br><span>wn in 2007, claiming that ch=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eap credit was the cause of t=</span><br><span>he overheated housing market.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p clas=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;s=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u s=</span><br><span>tyle=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Strong Labor Market&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;ormal" style=3D3D"margin-bottom: 11pt;"&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;Discussin=</span><br><span>g the labor market in greater detail, Yellen po=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;inted to t=</span><br><span>he cumulative increase in employment since 2010 of 13 million jobs=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;.&amp;amp;nbsp; The rate in January fell to 4.9 percent, 0.8 points be=</span><br><span>low its level o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ne year ago; measures of labor market con=</span><br><span>ditions such as the number of peopl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e who are working par=</span><br><span>t-time but want to move to full-time positions and the n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>umber of individuals who want to work but haven=3DE2=3D80=3D99t searched rec=</span><br><span>ently a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re also decreasing steadily.&amp;amp;nbsp; Regarding t=</span><br><span>hese broader labor market indi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cators Yellen testified th=</span><br><span>at =3DE2=3D80=3D9C=3DE2=3D80=3DA6&amp;amp;nbsp;these measures remain a=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;bove the levels seen prior to the recession, suggesting that some s=</span><br><span>lack in l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;abor markets remains. Thus, while labor market c=</span><br><span>onditions have improved subs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tantially, there is still ro=</span><br><span>om for further sustainable improvement."&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&amp;gt;&amp;lt;b=</span><br></blockquote><span>&amp;gt;&amp;lt;u style=3D3D"back=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ground-color: rgba(255, 255, 25=</span><br><span>5, 0);"&amp;gt;Forward Guidance&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" style=3D3D"margin-bottom: 11pt;"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;A=</span><br><span>s always, Yellen was careful not to give hints on w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hat t=</span><br><span>he Fed is planning to do in future meetings; speaking on the path forwa=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;rd for the Fed Funds rate Yellen said =3DE2=3D80=3D9COf cours=</span><br><span>e, monetary policy is=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; by no means on a preset course. Th=</span><br><span>e actual path of the federal funds rate w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill depend on w=</span><br><span>hat incoming data tell us about the economic outlook, and we w=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;ill regularly reassess what level of the federal funds rate is consist=</span><br><span>ent wi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;th achieving and maintaining maximum employment an=</span><br><span>d 2 percent inflation.=3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D9D&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&amp;gt;&amp;lt;span=</span><br><span>st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;Yellen was asked about the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; chances of the FOMC rolling=</span><br><span>back the rate hike it announced in December: &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;=</span><br><span>"I do not expect the FOMC is going to be soon in the situation where it'=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;s necessary to cut rates If the FOMC delayed the start of po=</span><br><span>licy normalizati=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on for too long, it might have to tighte=</span><br><span>n policy relatively abruptly in the f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;uture to keep the e=</span><br><span>conomy from overheating and inflation from significantly o=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;vershooting its objective. Such an abrupt tightening could increase the ri=</span><br><span>sk=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; of pushing the economy into recession."&amp;amp;nbsp;&amp;lt;=</span><br><span>/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorm=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al" style=3D3=</span><br><span>D"margin-bottom: 11pt;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgba(=</span><br><span>255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;Comment on Dodd-Frank&amp;lt;/u&amp;gt;&amp;l=</span><br><span>t;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D=</span><br><span>"margin-bottom: 11pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 25=</span><br><span>5, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;During the Q&amp;amp;amp;A portion of her te=</span><br><span>stimony, Yellen was asked about=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; financial regulation, bo=</span><br><span>th in terms of breaking up the banks and enforcing t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he r=</span><br><span>egulations brought on by Dodd-Frank.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=</span><br><span>lass=3D3D"MsoNorm=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al" style=3D3D"margin-bottom: 11pt;"&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 25=</span><br><span>5, 0);"&amp;gt;In response to being asked if the Fed is trying to break up=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; the banks, she responded:&amp;amp;nbsp;"We are using our powers t=</span><br><span>o make sure that a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; systemically important institution co=</span><br><span>uld fail, and it would not have system=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ic consequences fo=</span><br><span>r the country." Her answer was interesting, because she's n=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ot outright saying the banks will be broken up or reduced, just that the =</span><br><span>Fed=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; is trying to ensure that even if they did fail, it w=</span><br><span>ouldn't negatively effe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ct the economy.&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11p=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;t;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;=</span><br><span>gt;Yellen was als=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o asked about the burden of new Dodd-Fra=</span><br><span>nk regulations on banks. She respond=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ed: "For our part, w=</span><br><span>e're focused on doing everything that we conceivably can=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>to minimize and reduce the burden on these banking organizations. We've bee=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n conducting an EGRPRA&amp;amp;nbsp;review to identify poten=</span><br><span>tial burdens that our re=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gulations impose." An EGRPRA rev=</span><br><span>iew is connected to the Economic Growth and R=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;egulatory P=</span><br><span>aperwork Reduction Act, which requires regulations imposed on fin=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;ancial institutions to be reviewed by the agencies at least once ev=</span><br><span>ery 10 ye=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ars. The purpose is to prevent&amp;amp;nbsp;burdens=</span><br><span>ome&amp;amp;nbsp;regulations that could h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;inder a&amp;amp;nbsp;ba=</span><br><span>nk's ability to serve its customers.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=</span><br><span>lass=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt;"&amp;gt=</span><br><span>;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;The Bottom Line&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D=</span><br><span>3D"MsoNormal=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;" style=3D3D"margin-bottom: 11pt;"&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"=</span><br><span>&amp;gt;Fed watchers make their living by trying to predict what the FO=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;MC will or won=3DE2=3D80=3D99t do at their meetings, and on days w=</span><br></blockquote><span>hen Yellen is sc=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;heduled to testify before Congress you c=</span><br><span>an bet that they=3DE2=3D80=3D99re listenin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g intently.&amp;am=</span><br><span>p;nbsp; While Yellen was careful not to project the Fed=3DE2=3D80=3D99s m=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;oves, the general sentiment in the markets is that FOMC won=</span><br><span>=3DE2=3D80=3D99t be rai=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sing rates at its March meeting.&amp;=</span><br><span>amp;nbsp; The CME Group FedWatch tool, which es=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;timates FO=</span><br><span>MC rate hikes based on its futures prices, predicts a 95% probabil=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;ity that the Fed will maintain its current rate target in March.&amp;a=</span><br><span>mp;nbsp; Some f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;orecasters go even further -- expecting t=</span><br><span>hat the funds rate won=3DE2=3D80=3D99t be=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; raised all yea=</span><br><span>r.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"ma=</span><br><span>rgin-bot=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tom: 11pt;"&amp;gt;&amp;lt;span style=3D3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Trader=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s see the ongoing=</span><br><span>economic struggles of emerging economies, particularly in C=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;hina, as evidence that the Fed won=3DE2=3D80=3D99t continue with its sch=</span><br><span>eduled 4 r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ate hikes this year.&amp;amp;nbsp; Certainly, cons=</span><br><span>idering the testimony today that 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;) continued emerging m=</span><br><span>arket uncertainty can weigh down the US economy and 2)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; t=</span><br><span>hat poor performance in the US economy would cause the Fed to change cours=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;e on its rate hike schedule, a link between poor emerging m=</span><br><span>arket performance=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; and fewer Fed rate hikes seems plausib=</span><br><span>le.&amp;amp;nbsp; Certainly the trading on Fe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d fund futures i=</span><br><span>ndicates that the markets believe this is the case.&amp;lt;/span&amp;gt;&amp;lt;/=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 11pt=</span><br><span>;"&amp;gt;&amp;lt;span style=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba(255, 25=</span><br><span>5, 255, 0);"&amp;gt;-------&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;Recent Updates&amp;lt;div&amp;gt;&amp;lt;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;The Fed Holds Steady &amp;amp;nbsp=</span><br><span>;(Feb. 10)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Obama's FY17 Bu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;dget &amp;am=</span><br><span>p;nbsp;(Feb. 9)&amp;amp;nbsp;&amp;lt;div&amp;gt;Tax Talk of the Town &amp;amp;nbsp;(Feb. 3)&amp;=</span><br><span>lt;br&amp;gt;&amp;lt;div&amp;gt;De=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;fending Dodd-Frank &amp;amp;nbsp;(Feb.=</span><br><span>2)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: Deficit/Debt Dormancy (=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Jan. 28)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Ho=</span><br><span>lds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;De=</span><br><span>bate Myths C=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;hallenged &amp;amp;nbsp;(Jan. 25)&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div&amp;gt;Regulating the Regulators &amp;amp;nbsp;(Jan. 21=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' Tax/Healthcare Policy &amp;amp;nbsp;(J=</span><br><span>an 20)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;HRC'=</span><br><span>s Tax Po=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;licy &amp;amp;nbsp;(Jan. 17)&amp;lt;/span&amp;gt;&amp;lt;br styl=</span><br><span>e=3D3D"color: rgba(0, 0, 0, 0.701961); -web=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;div style=3D3D"col=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=</span><br><span>gba(130, 98, 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392);"&amp;gt;2016 Tax Agenda on the H=</span><br><span>ill &amp;amp;nbsp;(Jan. 16)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"co=</span><br><span>lor: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392);"&amp;gt;Glass-Steagall, Take 2 &amp;amp;nbsp;(Ja=</span><br><span>n. 13)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>8, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;2016 Tax Policy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(0, 0=</span><br><span>, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;80392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&amp;gt;Sanders P=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;roposals/GS &amp;amp;amp; TBTF (Jan=</span><br><span>. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br></blockquote><span>0980392);"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&amp;gt;Sanders' Fin Reg P=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;roposals &amp;amp;=</span><br><span>nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;961); -webkit-composition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392);"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Year-End Review: Fiscal P=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;olicy (Jan. 1) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color=</span><br><span>: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;Year-End Review: Fin. Reg.=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;(Dec. 29) &amp;amp;nbsp;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 255, 255=</span><br><span>, 0);"&amp;gt;Omnibus Review (Dec. 15)&amp;lt;/span&amp;gt;&amp;lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;=</span><br><span>gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>ll-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;Om=</span><br><span>nibus Situation &amp;amp;nbsp;(Dec. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br><span>ill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392);"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;FY=</span><br><span>2016 Omnibus Talks (Dec. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"col=</span><br><span>or: rgba(0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0.701961); -webkit-composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Customs Bill &amp;amp;n=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;bsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webk=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;it-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;Tax Extender Negotiations &amp;amp;nb=</span><br><span>sp;(Dec=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;. 6) o&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;position-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"backgroun=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;Brown on HFT &amp;amp;nbsp;=</span><br><span>(Dec. 4)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv style=3D3D"colo=</span><br><span>r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;gba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: r=</span><br><span>gba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;nbsp;(=</span><br><span>Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/d=</span><br><span>iv&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;on-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>----&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0,=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt; 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;div&amp;gt;On Feb 9, 2016=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, at 7:42 PM, Dana &amp;amp;lt;&amp;lt;a h=</span><br><span>ref=3D3D"&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">mailto:[email-masked]</a>=</span><br><span>&lt;/a&gt;"&amp;gt;danachasin@gm=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;a href=3D"<a href="http://ail.com">http://ail.com</a>"&gt;<a href="http://ail.com">ail.com</a>=</span><br><span>&lt;/a&gt;&amp;lt;/a&amp;gt;&amp;amp;gt; wrote:&amp;lt;br&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;blockquote t=</span><br><span>ype=3D3D"cite"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta htt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p-equiv=3D3D"co=</span><br><span>ntent-type" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;spa=</span><br><span>n&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content=</span><br><span>-ty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pe" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt=</span><br><span>;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;met=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;a http-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Du=</span><br></blockquote><span>tf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" content=3D3D"text/html=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>type" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;=</span><br></blockquote><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eta http-equiv=3D=</span><br><span>3D"content-type" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta ht=</span><br><span>tp-equiv=3D3D"content-type" content=3D3D"text/ht=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ml; char=</span><br><span>set=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;Mike &amp;amp;amp; Co. --&amp;lt;br&amp;gt;&amp;lt;p c=</span><br><span>lass=3D3D"MsoNormal" st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"margin-bottom: 0.0001pt;=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55=</span><br><span>, 255, 0);"&amp;gt;Today, President Obama submitted his eighth and final budget p=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;roposal to Congress.&amp;amp;nbsp; It tops the $4 trillion m=</span><br><span>ark for the first time. &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;amp;nbsp;Despite the h=</span><br><span>istorical tendency for lame duck presidential budget=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s to=</span><br><span>be treated as scrap paper -- this one won't even be accorded the courte=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;sy of a hearing in House Budget -- there are a few noteworth=</span><br><span>y proposals and i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nitiatives which, if nothing else, are l=</span><br><span>ikely to generate discussion on the H=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill and off. &amp;amp;n=</span><br><span>bsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bot=</span><br><span>tom:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;That=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3D99s the re=</span><br><span>al purpose of this budget -- to help frame the debate in 2016 a=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;bout where America is headed what the nation's priorities should be.&amp;=</span><br></blockquote><span>amp;nbsp; A=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; number of the proposals in this budget reson=</span><br><span>ate with issues and themes alre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ady being debated.&amp;amp;nb=</span><br><span>sp; Candidates in particular seeking to emphasize suppo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r=</span><br><span>t for or opposition to the President have a new set of proposals at their d=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;isposal.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"M=</span><br><span>soNormal" style=3D3D"margin-bottom: 0.00=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;01pt;"&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;What is new=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt; and noteworthy in the White House budget and what's next for=</span><br><span>it? &amp;amp;nbsp;Deta=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;il below.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;001pt;"&amp;gt;Special thanks to those of you in NH tonight. &amp;amp;nbsp;Fin=</span><br><span>gers crossed a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd stay tuned this way: &amp;amp;nbsp;&amp;amp;nbs=</span><br><span>p;&amp;lt;a href=3D3D"&lt;a href=3D"<a href="http://politi.co/20n5W2w">http://politi.co/20n5W2w</a>"&gt;<a href="http://politi.co/20n5=">http://politi.co/20n5=</a></span><br><span>W2w&lt;/a&gt;"&amp;gt;htt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p://politi.co/20n5W2w&amp;lt;/a&amp;gt;&amp;amp;nbsp;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bo=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;ttom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;B=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;est,&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;an style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Dana&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"MsoNormal" style=3D3D"marg=</span><br><span>in-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-=</span><br><span>color: rgba(255, 255, 255, 0);"&amp;gt;---------&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=</span><br><span>ss=3D3D"MsoNormal"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"margin-bottom: 0.0001pt;"&amp;=</span><br><span>gt;&amp;lt;span style=3D3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 2=</span><br><span>55, 0);"&amp;gt;The Obama Administration put forth a myriad of budget prop=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;osals revolving around a variety of issues. &amp;amp;nbsp;Below ar=</span><br><span>e thoughts on some=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; of the most significant of these from=</span><br><span>a fiscal and financial regulatory per=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;spective:&amp;amp;nbsp=</span><br><span>;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;blockquote style=3D3D"margin: 0px 0px 0px 40px; b=</span><br><span>or=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;der: none; padding: 0px;"&amp;gt;&amp;lt;p class=3D3D"MsoNorma=</span><br><span>l" style=3D3D"margin-bottom: 0.0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;001pt;"&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;lt;b&amp;gt;&amp;lt;u&amp;gt;$10/Barrel Transportation Tax&amp;lt;/u&amp;=</span><br><span>gt;&amp;lt;/b&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNo=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;rmal" style=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backgrou=</span><br><span>nd-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255, 255, 255, 0);"&amp;gt;A perennial favori=</span><br><span>te of Democrats has made a return i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n the Obama budget: &amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;amp;nbsp;a $10.25 per barrel tax on oil, $319 billion=</span><br><span>in revenue from w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hich will go toward funding =3DE2=3D80=</span><br><span>=3D9Ca 21st Century Clean Transportation Pla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n to upgrade=</span><br><span>the nation=3DE2=3D80=3D99s transportation system, improve resilience a=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;nd reduce emissions." &amp;amp;nbsp;The proposed tax is a simplif=</span><br><span>ied version of =3DE2=3D80=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D9Ccarbon taxation=3DE2=3D80=3D=</span><br><span>9D policies, which aim to tax energy producers and o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;il c=</span><br><span>ompanies based on the level of pollution they produce; =3DE2=3D80=3D9Ccap an=</span><br><span>d t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rade=3DE2=3D80=3D9D was a similar policy idea but wit=</span><br><span>h more complicated implementa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion. &amp;amp;nbsp;&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255,=</span><br><span>255, 0);"&amp;gt;The tax will b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e phased in over five years a=</span><br><span>nd levied against oil companies, with the reven=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ue to hel=</span><br><span>p fund clean energy initiatives like expanding high-speed rail syst=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;ems and also to increase national infrastructure spending.&amp;amp;nb=</span><br></blockquote><span>sp; The appeal o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f this flat-tax on oil is its simplicity=</span><br><span>=3DE2=3D80=3D93- there is nothing complic=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ated about cha=</span><br><span>rging oil companies $10.25 per barrel of oil, meaning there=3DE2=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;=3D80=3D99s no way for them to shirk the charge.&amp;amp;nbsp;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/p&amp;gt;&amp;lt;span class=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;im" style=3D3D"backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;p class=3D3D"MsoNorma=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;l" style=3D3D"margin-bottom: 0.0001pt;"&amp;gt;Supporting the tax would l=</span><br></blockquote><span>end candidat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es some environmental bonafides, but might b=</span><br><span>e seen as a backdoor &amp;amp;nbsp;tax&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan style=3D3D"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;on the middle-=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;class. Though paid for by oil companies, the &amp;amp;nbsp;price is e=</span><br><span>xpected to be p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;assed along to consumers through higher p=</span><br><span>rices.&amp;amp;nbsp; The tax is expected to=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; increase the pri=</span><br><span>ce of gasoline by 25 cents per gallon.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;p c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lass=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.00=</span><br><span>01pt;"&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-color: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;&amp;lt;b&amp;gt;&amp;lt;u&amp;gt;Funding Fin.=</span><br><span>Reg. L=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ike it Matters&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;amp;nbsp;&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margi=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;n-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=</span><br><span>, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;Obama proposes to double the budget f=</span><br><span>or Wall Street regulators SEC and CFT=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;C over ten years, b=</span><br><span>eginning with an 11 percent increase for SEC and 32 perce=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>nt for CFTC in 2017.&amp;amp;nbsp;&amp;amp;nbsp;Clinton has a lot to like in this p=</span><br></blockquote><span>articular=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; section =3DE2=3D80=3D93 she=3DE2=3D80=3D99s th=</span><br><span>e only candidate who has defended Dodd-Fra=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nk and is camp=</span><br><span>aigning on proposals to strengthen current regulations, includ=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;ing through greater budgets for&amp;amp;nbsp;regulatory agencies.&amp;amp;nbsp=</span><br><span>; Leaders for b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oth regulators have complained that their=</span><br><span>responsibilities far outstrip thei=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r budget.&amp;amp;nbsp;&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 25=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;&amp;lt;span class=3D3D"im"&amp;gt;&amp;lt;p class=3D3D"M=</span><br><span>soNormal" style=3D3D"margin-bottom: 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0001pt;"&amp;gt;The pr=</span><br><span>oposal is more realistic than the oil tax, although not neces=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;sarily something that will definitely be enacted. &amp;amp;nbsp;The SEC has=</span><br><span>called f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or increased funding recently.&amp;amp;nbsp; SEC ch=</span><br><span>airman Mary Jo White asked at a H=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ouse Financial Services=</span><br><span>Committee hearing in November for $1.8 billion in fu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ndi=</span><br><span>ng for fiscal 2017. &amp;amp;nbsp;In a time when Republicans are looking to redu=</span><br><span>c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e regulatory burdens against banks, an increase in regu=</span><br><span>lators=3DE2=3D80=3D99 budge=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ts highlights the difference i=</span><br><span>n priorities on Wall Street.&amp;amp;nbsp;&amp;lt;/p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;span class=3D3D"im"&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margi=</span><br><span>n-bottom: 0.0001pt;"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3DE2=3D80=3DA2 &amp;amp;nbsp;&amp;lt;b&amp;=</span><br><span>gt;&amp;lt;u&amp;gt;Boosting R and D&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;s=</span><br><span>pan class=3D3D"im"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" style=3D=</span><br><span>3D"margin-bottom: 0.0001pt;"&amp;gt;The budget increas=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es R&amp;a=</span><br><span>mp;amp;D funding by four percent for a total of $152 billion in 2017; amon=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;g changes are a doubling of clean energy research and fundi=</span><br><span>ng a $1 billion c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ancer =3DE2=3D80=3D9CMoonshot=3DE2=3D80=</span><br><span>=3D9D research program aimed at eliminating the d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;isease.=</span><br><span>&amp;amp;nbsp;&amp;lt;/p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span class=3D3D"im"&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-bottom: 0.0001pt;"&amp;gt;=3DE=</span><br><span>2=3D80=3DA2 &amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;b&amp;gt;&amp;lt;u&amp;gt;Apprenticeship Training=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; Fund&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;span cl=</span><br><span>ass=3D3D"im"&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>argin-bottom: 0.0001pt;"&amp;gt;The budget establishes a $2 billion mandatory Ap=</span><br><span>pre=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nticeship Training Fund =3DE2=3D80=3D93 meant to doub=</span><br><span>le the number of apprenticesh=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ips across the United State=</span><br><span>s.&amp;amp;nbsp; Only HRC has talked about the need for i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ncr=</span><br><span>easing the number of apprenticeships in the country during the election, f=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;avoring a tax-credit policy rather than direct funding.&amp;amp=</span><br><span>;nbsp;&amp;lt;/p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;/blockquot=</span><br><span>e&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt=</span><br><span>;b=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;u style=3D3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&amp;gt;Congressional Prospe=3D&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;span&gt;cts&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" sty=</span><br><span>le=3D3D"margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&amp;gt;Obama=3DE2=3D80=3D99s propo=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;sal is not only a prelude to battle.&amp;amp;nbsp; Lawmakers an=</span><br><span>d the administration w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill have to strike some sort of de=</span><br><span>al to keep the government running when the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; current fisca=</span><br><span>l year ends&amp;amp;nbsp;&amp;lt;a&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;a href=3D3D"x-apple-data-detecto=</span><br><span>rs://9"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; x-apple-data-detectors=3D3D"true" x-apple-data-d=</span><br><span>etectors-type=3D3D"calendar-eve=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nt" x-apple-data-detector=</span><br><span>s-result=3D3D"9"&amp;gt;on&amp;amp;nbsp;&amp;lt;/a&amp;gt;&amp;lt;span class=3D3D"" tabinde=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;x=3D3D"0"&amp;gt;&amp;lt;span class=3D3D""&amp;gt;&amp;lt;a href=3D3D"x-apple=</span><br><span>-data-detectors://9" x-apple-data=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-detectors=3D3D"true" x=</span><br><span>-apple-data-detectors-type=3D3D"calendar-event" x-apple-d=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ata-detectors-result=3D3D"9"&amp;gt;Sept. 30&amp;lt;/a&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt=</span><br></blockquote><span>;&amp;amp;nbsp;=3DE2=3D80=3D94 most li=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kely a continuing reso=</span><br><span>lution to keep the lights on through the election and e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a=</span><br><span>rly into 2017.&amp;amp;nbsp; In a sign that Obama isn=3DE2=3D80=3D99t looking fo=</span><br><span>r a knock=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-down spending fight this year, the president=3D=</span><br><span>E2=3D80=3D99s proposal abides by t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he discretionary caps f=</span><br><span>or fiscal 2017 set by last year=3DE2=3D80=3D99s bipartisan b=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;udget deal.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span class=3D3D"im" styl=</span><br><span>e=3D3D"background-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255, 255, 255, 0);"&amp;gt;&amp;lt=</span><br><span>;p class=3D3D"MsoNormal" style=3D3D"margin-bottom: 0.0001=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>pt;"&amp;gt;Congressional leadership may have a fight on its hands even without=</span><br></blockquote><span>Oba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ma making waves =3DE2=3D80=3D93 if the Freedom Caucu=</span><br><span>s membership decides to make i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ts displeasure on the budg=</span><br><span>et known then it could cause rancor amongst the GO=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;P.&amp;amp=</span><br><span>;nbsp; In a year when the party is desperate to project an image of capabl=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;e leadership, in part by passing a complete budget for the f=</span><br><span>irst time since 1=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;997, a blow-up between Ryan and the bac=</span><br><span>k-benchers would amount to nothing le=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss than catastrophe=</span><br><span>.&amp;lt;/p&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"margin-bottom=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;At a m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ore granular level, Obam=</span><br><span>a=3DE2=3D80=3D99s blueprint is a grab-bag of Democratic pr=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;iorities.&amp;amp;nbsp; The administration is once again calling for expanding=</span><br><span>early=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; education in his 2017 budget, asking for more pre=</span><br><span>-K grants, a child care ex=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pansion and a small boost to H=</span><br><span>ead Start.&amp;amp;nbsp; The budget boosts spending fo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r Obam=</span><br><span>acare Medicaid expansion by $2.6 billion over a decade, designed to be=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; an enticement to the 19 holdout states that have yet to take e=</span><br><span>ffect.&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgba(255, 2=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;Republicans and the Budget&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt=</span><br><span>;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"ba=</span><br><span>ckground-color: rgba(255, 255, 255, 0);"&amp;gt;The Republicans have a different=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; plan for the budget this year, naturally.&amp;amp;nbsp; Spe=</span><br><span>aker Ryan has stated tha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t he intends to pass the budget a=</span><br><span>nd all 12 appropriations through the house -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;- a feat tha=</span><br><span>t hasn't been accomplished in two decades.&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;g=</span><br><span>t;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The Repu=</span><br><span>blicans ha=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ve a different plan for the budget this year, n=</span><br><span>aturally.&amp;amp;nbsp; Speaker Ryan h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;as stated that he inte=</span><br><span>nds to pass the budget and all 12 appropriations throu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gh=</span><br><span>the house - a feat that hasn't been accomplished since 1997.&amp;amp;nbsp; Alth=</span><br><span>ou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gh Ryan and the GOP House leadership hope to gain the f=</span><br><span>aith of the American p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eople back by bringing about the r=</span><br><span>eturn of regular order, they face a tight c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;alendar and t=</span><br><span>he political implications of an election year -- not to mention=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt; internal opposition&amp;lt;b&amp;gt;&amp;amp;nbsp;&amp;lt;/b&amp;gt;in the form of the Fre=</span><br></blockquote><span>edom Caucus.&amp;amp;nbsp; Sh=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ould the back-benchers feel the=</span><br><span>ir concerns aren=3DE2=3D80=3D99t being adequately a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ddres=</span><br><span>sed, they may try to disrupt the passage of appropriations bills. &amp;amp;nbsp=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;;The care and feeding of these members on budget matters ma=</span><br><span>y be turn out to b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e one of the toughest challenges Ryan w=</span><br><span>ill face this year.&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;=</span><br><span>lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;-----------------&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0=</span><br><span>, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0.701961); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ext-decoration: -webkit-letterpre=</span><br><span>ss;"&amp;gt;Recent Updates&amp;lt;/span&amp;gt;&amp;lt;div style=3D3D"col=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br></blockquote><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt=</span><br><span>;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;8, 83, 0.0980392); text-decoration: -webkit-letterpress;"&amp;gt;Obama's FY=</span><br><span>17 Budge=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t &amp;amp;nbsp;(Feb. 9)&amp;amp;nbsp;&amp;lt;div&amp;gt;Tax Tal=</span><br><span>k of the Town &amp;amp;nbsp;(Feb. 3)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Defen=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;ding Dodd-Frank &amp;amp;nbsp;(Feb. 2)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: Deficit=</span><br><span>/Debt Dormancy (Ja=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n. 28)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;T=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>he Fed Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br></blockquote><span>;div&amp;gt;Debate Myths Ch=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;allenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/=</span><br><span>div&amp;gt;&amp;lt;div&amp;gt;Regulating the Regulators &amp;amp;nbsp;(Jan. 21)=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' Tax/Healthcare Policy &amp;amp;nbsp;(Jan 2=</span><br></blockquote><span>0)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;HRC's Tax=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Policy &amp;amp;nbsp;(Jan=</span><br><span>. 17)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;2016 Tax Agenda on the Hill &amp;amp;nbsp;(Jan. 16)&amp;lt=</span><br><span>;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/div&amp;gt;&amp;lt;div&amp;gt;Glass-Steagall, Take 2 &amp;amp;nbsp;(Ja=</span><br><span>n. 13)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;2016 Tax Policy Issues &amp;amp;nbsp;(Jan=</span><br><span>. 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp;amp; TBTF (Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/d=</span><br><span>iv&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;ckgr=</span><br><span>ound-color: rgba(255, 255, 255, 0);"&amp;gt;Sanders' Fin Reg Proposals &amp;amp;nbsp=</span><br><span>;(J=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;Y=</span><br><span>ear-End Review: Fiscal Policy (Jan. 1) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 255, 255, 0);"&amp;gt;Year=</span><br><span>-End Review: Fin. Reg.&amp;amp;nbsp;&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;(Dec. 29=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;Omn=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ibus Review (Dec. 15)=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rg=</span><br><span>ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;Omnibus Situation &amp;amp;nbsp;(D=</span><br><span>ec. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n styl=</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;FY 2016 Omnibus Talks (=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dec. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba(255, 255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 0);"&amp;gt;Cu=</span><br><span>stoms Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;T=</span><br><span>ax Extender Negotiations &amp;amp;nbsp;(Dec. 6) o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Brown on HFT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;: rgba(255, 255, 255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;nbsp;(Dec. 3)&amp;lt;=</span><br><span>/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;On Feb 3, 2016, at 7:09 PM, Da=</span><br><span>na &amp;amp;lt;&amp;lt;a h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ref=3D3D"&lt;a href=3D"mailto:danachasin@=</span><br><span><a href="http://gmail.com">gmail.com</a>"&gt;<a href="mailto:[email-masked]">mailto:[email-masked]</a>&lt;/a&gt;"&amp;gt;&lt;a href=3D"mailto:danachasin@=</span><br><span><a href="http://gmail.com">gmail.com</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;lt;/a&amp;gt;&amp;amp;gt; wrote:&amp;lt;br&amp;gt;&amp;lt;=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;blockquote type=3D3D"cite"&amp;gt;&amp;lt;div=</span><br><span>&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ntent=3D3D"=</span><br><span>text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-equiv=3D3D"content-type" c=</span><br><span>ontent=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"con=</span><br><span>tent-type" content=3D3D"text/html; char=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;set=3D3Dutf-8"&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"-webkit-text-size-adjust: auto; background-=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0); color: rgba(0, 0, 0, 0.70196=</span><br><span>1); -webkit-compo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392); text-decoration: -webkit-le=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tterpress;"&amp;gt;Mike=</span><br><span>&amp;amp;amp; Co. --&amp;lt;/span&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.7=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;01961); text-decoration: -webkit-letterpress; -webk=</span><br><span>it-text-size-adjust: auto=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; box-sizing: border-box; margi=</span><br><span>n: 0px;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(2=</span><br><span>55, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p style=3D3D"colo=</span><br><span>r: rgba(0, 0, 0, 0.7019=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;61); text-decoration: -webkit-let=</span><br><span>terpress; -webkit-text-size-adjust: auto; b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ox-sizing: bo=</span><br><span>rder-box; margin: 0px;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(2=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;55, 255, 255, 0);"&amp;gt;Upbeat tax talk is as common this time o=</span><br><span>f year as predict=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ions that this year the Cubs will win t=</span><br><span>he World Series this fall. &amp;amp;nbsp;The w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ord is that Me=</span><br><span>ssrs. Ryan and McConnell want to run a smooth, efficient, mayb=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;e even a productive ship this year on the theory that voters will rewa=</span><br><span>rd the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; GOP in November and that they will forget the rec=</span><br><span>ord of the last seven year=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s. &amp;amp;nbsp;The Speaker and t=</span><br><span>he President have had a recent meeting and mini-me=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eting o=</span><br><span>f the minds on taxes.&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba=</span><br><span>(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;&amp;amp;nbsp; That might create the=</span><br><span>right climate for passage of b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;road tax reform.&amp;amp;nbsp=</span><br><span>;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(1=</span><br><span>30, 98, 83, 0.098=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0392); text-decoration: -webkit-letterp=</span><br><span>ress; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&amp;gt;But really the gravitat=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ional pull is not toward gravitas, but away from the center, awa=</span><br><span>y from the H=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill itself. &amp;amp;nbsp;The GOP presidential n=</span><br><span>ominee might very well have to run a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gainst any bipartisa=</span><br><span>n ("Washington") compromise on tax policy, making for an=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>embarrassing intraparty policy conflict at the time the leadership most nee=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ds to project unity.&amp;lt;br&amp;gt;&amp;lt;br&amp;gt;Amid the turbule=</span><br><span>nce of the broader campaign, whe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re do the various tax di=</span><br><span>scussions in the Hill stand, what bills night come u=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p fo=</span><br><span>r votes, is there anything that might pass?&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p clas=</span><br><span>s=3D3D"MsoNor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mal" style=3D3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61); -webkit-composition-fill-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-decoration: -webkit-letterpress; margin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-=</span><br><span>bottom: 0.0001pt;"&amp;gt;Best,&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"=</span><br><span>color: rgba(0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0.701961); -webkit-composition-fill=</span><br><span>-color: rgba(130, 98, 83, 0.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; text-decoration: -=</span><br><span>webkit-letterpress; margin-bottom: 0.0001pt;"&amp;gt;Dana&amp;lt;/p&amp;gt;&amp;lt;p=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt; class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961)=</span><br><span>; -webkit-compos=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80392); text-decoration: -webkit-let=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;terpress; margin-bot=</span><br><span>tom: 0.0001pt;"&amp;gt;________________________________&amp;lt;/p&amp;gt;&amp;lt;p c=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;lass=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion-fill-color: rgba(130, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-lette=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rpress; margin-bottom=</span><br><span>: 0.0001pt;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-color: rgba(255,=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt; 255, 255, 0);"&amp;gt;Forms of Reform under Discussion&amp;lt;/u&amp;gt;&amp;l=</span><br><span>t;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ormal" style=3D3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-col=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress;=</span><br><span>marg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>ound-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;&amp;lt;b&amp;gt;=3DE2=3D=</span><br><span>80=3DA2 Comprehensive&amp;lt;/b&amp;gt;&amp;amp;nbsp;-- Defined as involving a bipartisa=</span><br><span>n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; trade-off between lowering taxes and broadening the ba=</span><br><span>se; closing exemption=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s, deductions, credits, etc.&amp;amp;nb=</span><br><span>sp; Both Democratic candidates have outlined p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lans to re=</span><br><span>duce loopholes, such as the "Romney loophole" and the "Bermuda loo=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;phole," which allow very rich Americans to avoid paying their fair=</span><br><span>share.&amp;amp;nb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decorat=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion: -webkit-letterpress; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;=3DE2=3D80=3DA2&amp;amp;nbsp;&amp;lt;b&amp;gt;Corporate --&amp;lt;/b&amp;gt;&amp;amp;nbsp;Ma=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ny of the issues with the corporate tax system could be add=</span><br><span>ressed through in=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ternational tax reform, because so many=</span><br><span>companies earn capital abroad. Howev=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;er, corporate tax r=</span><br><span>eform at home deals with issues like taxing dividends and=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>leveling the playing field between small and large businesses.&amp;amp;nbsp;&amp;l=</span><br></blockquote><span>t;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;composition-f=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;it-letterpress; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"back=</span><br></blockquote><span>ground-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3DA=</span><br><span>2&amp;amp;nbsp;&amp;lt;b&amp;gt;International&amp;amp;nbsp;&amp;lt;/b&amp;gt;- Deals wit=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;h foreign earnings of American firms abroad. Specifically, current i=</span><br><span>nternati=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;onal tax reform aims at preventing inversions an=</span><br><span>d coming up with a more succ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;essful way to tax foreign ca=</span><br><span>pital earned by American companies, as well as f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;inding w=</span><br><span>ays to encourage companies to move profits home from abroad.&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;omposition-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392); text-decoration: -webki=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-let=</span><br><span>terpress; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background-=</span><br><span>color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255, 255, 255, 0);"&amp;gt;Forums for Tax Reform=</span><br><span>&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l=</span><br><span>" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=</span><br><span>r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 83, 0.0980392); text-decoration: -webkit-=</span><br><span>letterpress; margin-bo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ttom: 0.0001pt;"&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>b&amp;gt;=3DE2=3D80=3DA2 Ways &amp;amp;amp; Means: &amp;amp;nbsp;&amp;lt;/b&amp;gt;Kevin Brady b=</span><br><span>ecame Chair of the Comm=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ittee in November 2015. He report=</span><br><span>edly hopes to have an international tax ref=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;orm proposal o=</span><br><span>ut of Ways and Means this year. &amp;amp;nbsp;He says he wants to allo=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;w American companies to bring their foreign profits back and inves=</span><br><span>t at home a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd to lower the corporate tax rate to less th=</span><br><span>an 20 percent.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p cla=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss=3D3D"Ms=</span><br><span>oNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-compositio=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;n-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -=</span><br><span>webkit-letterp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ress; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;=</span><br><span>gt;Brady gave the opening statement at a hearing on =3DE2=3D80=3D9CReac=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;hing America=3DE2=3D80=3D99s Potential.=3DE2=3D80=3D9D &amp;amp;n=</span><br><span>bsp; For what it's worth, he la=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;id out six goals for his c=</span><br><span>ommittee in the coming months -- and they are ambi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tious:=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0,=</span><br><span>0, 0, 0.7019=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;61); -webkit-composition-fill-color: rgba(1=</span><br><span>30, 98, 83, 0.0980392); text-deco=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ration: -webkit-letterp=</span><br><span>ress; margin: 0in 0in 0.0001pt 47.25pt;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt=</span><br></blockquote><span>;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rmal" style=3D3D"color:=</span><br><span>rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r=</span><br><span>: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margi=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: 0in 0in 0.0001pt 47.25pt;"&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>ound-color: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"&amp;gt;=3DC2=3DB7&amp;amp;n=</span><br><span>bsp;&amp;lt;i&amp;gt;Tax reforms to&amp;amp;nbsp;boost investment and job crea=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;tion;&amp;lt;/i&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.7=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;01961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ec=</span><br><span>oration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&amp;gt;&amp;lt;span=</span><br><span>sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;=3DC2=3DB7&amp;amp;nbsp;&amp;lt;i&amp;gt;Welfare refo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rms to&amp;amp;nb=</span><br><span>sp;help more people join the workforce and achieve the American dre=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;am.&amp;lt;/i&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br></blockquote><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83, 0.0980392); text-dec=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>oration: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&amp;gt;&amp;lt;span=</span><br><span>style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;=3DC2=3DB7&amp;amp;nbsp;&amp;lt;i&amp;gt;Health reforms=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; to truly m=</span><br><span>ake health care more affordable and accessible;&amp;amp;nbsp;&amp;lt;/i&amp;gt;&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"col=</span><br><span>or: rgba(0, 0, 0, 0.701961); -webkit-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;omposition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;t-letterpress; margin: 0in 0in 0.0001pt 47.25pt;"&amp;gt;&amp;lt;span style=3D3D"b=</span><br><span>ackground-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7&amp;=</span><br><span>amp;nbsp;&amp;lt;i&amp;gt;Trade expansion&amp;amp;nbsp;to&amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o=</span><br><span>pen&amp;amp;nbsp;more foreign&amp;amp;nbsp;markets to American&amp;amp;nbsp;goods and se=</span><br><span>rvices;&amp;lt;/i&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=</span><br><span>"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: -webkit-letterpress; margin: 0in 0in 0.0001pt 47.25pt;=</span><br><span>"&amp;gt;&amp;lt;span style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;=3DC2=3DB7&amp;amp;nbsp;&amp;lt;i&amp;gt;Entitlement reforms t=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;o strengthen Medicare and Social Security for the long haul and;&amp;am=</span><br><span>p;nbsp;&amp;amp;nbsp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/i&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=</span><br><span>lass=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.701961=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=</span><br><span>ecora=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion: -webkit-letterpress; margin: 0in 0in 0.0001pt=</span><br><span>47.25pt;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&amp;gt;=3DC2=3DB7&amp;amp;nbsp;&amp;lt;i&amp;gt;Government reform=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;s to boost&amp;amp;nbsp;efficiency&amp;amp;nbsp;and&amp;amp;nbsp;effective=</span><br><span>ness instead of stifling j=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;obs and higher wages.&amp;lt;/i&amp;gt=</span><br><span>;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: r=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0980392); text-decoration: -webkit-letter=</span><br><span>press; margin: 0in 0in 0.0001pt 47.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;25pt;"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;lt;/spa=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webki=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-composition-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -we=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bki=</span><br><span>t-letterpress; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-c=</span><br><span>olor:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(255, 255, 255, 0);"&amp;gt;Brady=3DE2=3D80=3D99s s=</span><br><span>tatement that tax reform will com=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e up in the coming week=</span><br><span>s, coupled with Ryan=3DE2=3D80=3D99s recent visit with Obam=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;a (specifically to find areas of cooperation), may indicate a broad-based=</span><br><span>re=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;form package making its way forward in 2016.&amp;amp;nbsp=</span><br><span>; Another interesting bulle=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t point is trade expansion, d=</span><br><span>espite McConnell=3DE2=3D80=3D99s promise that TPP won=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D=</span><br><span>E2=3D80=3D99t be voted on before November.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;=</span><br><span>lt;p class=3D3D"MsoNorma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l" style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-bo=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;ttom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;&amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;=3DE2=3D80=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;=3DA2&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;b style=3D3D"background-color: rgba(2=</span><br></blockquote><span>55, 255, 255, 0);"&amp;gt;Senat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e Finance:&amp;lt;/b&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbs=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;p; &amp;amp;nbsp;The Senate Finance Committee has its focus set on bipar=</span><br><span>tisan workin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g groups designed to produce tax reform on m=</span><br><span>ultiple levels -- individual, co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rporate, and internation=</span><br><span>al. However, there have been many challenges and sta=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lema=</span><br><span>tes along the way because of the stringent partisanship currently ailing=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; the Senate.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3=</span><br><span>D"MsoNormal" style=3D3D"color: rgba(0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;; text-decoration: -webkit-letterpress; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;=</span><br><span>span styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;This election has been defin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ed, more so than other=</span><br><span>s, by the massively diverse set of tax policies propos=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ed=</span><br><span>by each candidates =3DE2=3D80=3D93 from flat taxes, capital gains reforms, f=</span><br><span>ina=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ncial transaction taxes and more.&amp;amp;nbsp; Sen. Hatc=</span><br><span>h, Chair of Finance, has al=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ready called for reform effor=</span><br><span>ts in 2016, targeting international corporate r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ates spec=</span><br><span>ifically =3DE2=3D80=3D93 but it=3DE2=3D80=3D99s possible that Brady is tryin=</span><br><span>g t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o shift him and others toward more ambitious proposal=</span><br><span>s. &amp;amp;nbsp;Any high profi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le move Ryan makes here will l=</span><br><span>ikely be a controlling factor on tax policy. &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;=</span><br><span>lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0=</span><br><span>, 0, 0.70196=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;1); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); text-decor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ation: -webkit-letterpre=</span><br><span>ss; margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;und-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;=3DE2=3D80=3DA2&amp;amp;nbsp=</span><br><span>;Between the Branches -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-&amp;amp;nbsp;&amp;lt;/b&amp;gt;Speaker Ryan=</span><br><span>and Pres. Obama met yesterday to discuss a variety o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f i=</span><br><span>ssues, one of which was related to the Earned Income Tax Credit. &amp;amp;nbsp;B=</span><br><span>o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;th hope to expand the credit to include low-earning wor=</span><br><span>kers who DON'T have c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hildren. &amp;amp;nbsp;It's unclear how=</span><br><span>successful their cooperation will be, but at=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the very l=</span><br><span>east, they share a common goal.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D=</span><br><span>3D"MsoNo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rmal" style=3D3D"color: rgba(0, 0, 0, 0.701961);=</span><br><span>-webkit-composition-fill-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(130, 98, 83, 0.098=</span><br><span>0392); text-decoration: -webkit-letterpress; margi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n-bott=</span><br><span>om: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;Politico portrayed the meeting as campaign kabuki=</span><br><span>: =3DE2=3D80=3D9CRather than c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ut any deals with Obama, R=</span><br><span>yan=3DE2=3D80=3D99s hoping to spend 2016 developing what=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>he=3DE2=3D80=3D99s calling a detailed GOP agenda on poverty, taxes, health c=</span><br><span>are a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd other issues he=3DE2=3D80=3D99s hoping will fact=</span><br><span>or into the presidential campai=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gn and provide a blueprin=</span><br><span>t for House Republicans as they grapple with a new p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;resi=</span><br><span>dent next year.=3DE2=3D80=3D9D&amp;amp;nbsp; It=3DE2=3D80=3D99s not surprising t=</span><br><span>o see this g=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iven the pressure this election will put on t=</span><br><span>he new Speaker. &amp;amp;nbsp;He needs t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o set a strong found=</span><br><span>ation for his own future, and helping Obama score a tax t=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ouchdown on him is not on the top of his list of objectives. &amp;amp;nbsp;&amp;lt;=</span><br></blockquote><span>/span&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p&amp;gt;&amp;lt;p style=3D3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(130, 98=</span><br><span>, 83, 0.0980392); text-decoration: -webkit-letterpress; margin=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=</span><br><span>, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt=</span><br><span>;p style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-comp=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;osition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit=</span><br><span>-l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;etterpress; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;Du=</span><br><span>ring a statement before he met with Obama, Ryan said =3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;=3D80=3D9CWe will take our conservative principles and we will apply those=</span><br><span>conse=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rvative principles to the problems of the day to o=</span><br><span>ffer our fellow citizens s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olutions to the problems in th=</span><br><span>eir daily lives =3DE2=3D80=3DA6. These are not going=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; to b=</span><br><span>e things that we will be able to accomplish with this president still i=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;n the White House. It is an agenda for what we will do next y=</span><br><span>ear with a Repu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;blican president to get our country back o=</span><br><span>n track. This is what 2016=3DE2=3D80=3D99=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s all about. It=</span><br><span>=3DE2=3D80=3D99s going to be a year of ideas.=3DE2=3D80=3D9D&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/p&amp;gt;&amp;lt;p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(130, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-letterpress; margin: 0i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n 0=</span><br><span>in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;&amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p style=3D3D=</span><br><span>"color: rgba(0, 0, 0, 0.701961); -webkit-composit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion-fil=</span><br><span>l-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-lette=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;rpress; margin: 0in 0in 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backg=</span><br><span>round-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u&amp;=</span><br><span>gt;Political Realities&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u&amp;gt;&amp;lt;/u&amp;gt;&amp;lt;/b=</span><br><span>&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p style=3D3D"color: rgba(=</span><br><span>0, 0, 0, 0.701961); -webkit-composition-fill-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba=</span><br><span>(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin: 6=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt 0in;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255,=</span><br><span>255, 255, 0);"&amp;gt;William G=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ale and Aaron Krupkin, resea=</span><br><span>rchers at Brookings, recently wrote a paper titl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ed =3DE2=</span><br><span>=3D80=3D9CMajor Tax Issues in 2016;=3DE2=3D80=3D9D Keeping in mind both the c=</span><br><span>urr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ent political climate and the probable environment fo=</span><br><span>r legislation in 2016, t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he two researchers write that =3D=</span><br><span>E2=3D80=3D9CComprehensive tax reform is easy to t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;alk abo=</span><br><span>ut, but hard to do. The pursuit of sweeping tax simplification is a n=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;oble goal, but quixotic.=3DE2=3D80=3D9D &amp;amp;nbsp;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-b=</span><br><span>ottom=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&amp;gt;At th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e end of the day 201=</span><br><span>6 is an election year and any legislative proposals that=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>come forward during it will reflect that.&amp;amp;nbsp; There are many exciting=</span><br><span>pos=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sibilities for tax reform in 2016, but there is also=</span><br><span>no reason to think that=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; the political gridlock that has=</span><br><span>defined Washington for so long will ease up=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; enough whil=</span><br><span>e both parties vie for control of the country by drawing contest=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;s.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=</span><br><span>=3D3D"color: rgba(0, 0, 0, 0.70=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;1961); -webkit-compositio=</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392); text-de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;corat=</span><br><span>ion: -webkit-letterpress; margin-bottom: 0.0001pt;"&amp;gt;----------------&amp;lt;/=</span><br><span>p=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;p class=3D3D"MsoNormal" s=</span><br><span>tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;span&gt;position-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;letterpress; margin-bottom: 0.0001pt;"&amp;gt;Rece=</span><br><span>nt Updates&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;amp;nbsp;(Feb. 3)&amp;lt;br&amp;=</span><br><span>gt;&amp;lt;div&amp;gt;Defending Dodd-Frank &amp;amp;nbsp;(Feb=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;span&gt;. 2)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&amp;gt;The Fed Holds Rates, for No=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;w &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Debate Myths Chal=</span><br><span>lenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;div&amp;gt;&amp;lt;div&amp;gt;Regulat=</span><br><span>ing the Regulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' Tax/He=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;althcare Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"color: rgba(0, 0, 0,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.701961); -we=</span><br><span>bkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;xt-decoration: -webkit-letterpress;"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan=</span><br><span>. 17)&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;br style=3D3D"color: rgba(0, 0, 0,=</span><br><span>0.701961); -webkit-composition-fill-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(130, 98=</span><br><span>, 83, 0.0980392);"&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961)=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392=</span><br><span>);"&amp;gt;2016 Tax Ag=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;enda on the Hill &amp;amp;nbsp;(Jan. 16)&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.7=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;019=</span><br><span>61); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;Glass=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-Steagall, Take 2 &amp;amp;nbsp;(Jan. 13)&amp;lt;/div&amp;gt;&amp;lt;div=</span><br><span>style=3D3D"color: rgba(0, 0, 0, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;701961); -webkit-comp=</span><br><span>osition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;2016 Tax Pol=</span><br><span>icy Issues=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;l=</span><br><span>t;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebkit=</span><br><span>-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;background-color: rgba(255, 255, 255, 0);"&amp;gt;Sanders=</span><br><span>Proposals/GS &amp;amp;amp; TBTF (=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/d=</span><br><span>iv&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-co=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;mposition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span s=</span><br></blockquote><span>tyle=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Sanders' Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>positi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 255, 255,=</span><br><span>0);"&amp;gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;amp;nbsp;&amp;lt;/=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;Year-End Revi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ew: Fin. Reg.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"background-color: rgba(255, 255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5,=</span><br><span>0);"&amp;gt;&amp;amp;nbsp;(Dec. 29) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"back=</span><br><span>ground-color: rgba(2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 255, 0);"&amp;gt;Omnibus Review=</span><br><span>(Dec. 15)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color:=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt; rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;Omnibu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s Situation &amp;amp;nbsp=</span><br><span>;(Dec. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392);"&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;FY 2016 Omnibus Talks=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; (Dec.=</span><br><span>10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.70196=</span><br><span>1); -webkit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-composition-fill-color: rgba(130, 98, 83, 0.=</span><br><span>0980392);"&amp;gt;&amp;lt;span style=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba=</span><br><span>(255, 255, 255, 0);"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt;&amp;lt;/di=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.701961); -we=</span><br><span>bkit-composition-fill-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(130, 98, 83, 0.0980392=</span><br><span>);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 2=</span><br><span>55, 255, 0);"&amp;gt;Tax Extender Negotiations &amp;amp;nbsp;(Dec. 6) o&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fill-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(130, 98, 83,=</span><br><span>0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255,=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt; 255, 0);"&amp;gt;Brown on HFT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>div&amp;gt;&amp;lt;div style=3D3D"color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(0, 0, 0, 0.701961)=</span><br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>0392);"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br></blockquote><span>t;Shelby 2.0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Update &amp;amp;nbsp;(Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;61)=</span><br><span>; -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span=</span><br><span>st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;g=</span><br><span>t;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"=</span><br><span>color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;0, 98, 83, 0.0980392);"&amp;gt;&amp;lt;span style=3D3D"background-col=</span><br><span>or: rgba(255, 255, 255,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0);"&amp;gt;----&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;l=</span><br><span>t;br&amp;gt;On Feb 2, 2016, a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t 11:59 PM, Dana &amp;amp;lt;&amp;lt;a h=</span><br><span>ref=3D3D"&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">mailto:[email-masked]</a>=</span><br><span>&lt;/a&gt;"&amp;gt;danachasin@gmai=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;a href=3D"<a href="http://l.com">http://l.com</a>"&gt;<a href="http://l.com">l.com</a>&lt;/=</span><br><span>a&gt;&amp;lt;/a&amp;gt;&amp;amp;gt; wrote:&amp;lt;br&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;blockquote ty=</span><br><span>pe=3D3D"cite"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;equiv=3D3D"con=</span><br><span>tent-type" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span=</span><br><span>&amp;gt;&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-eq=</span><br><span>uiv=3D3D"content-type" content=3D3D"text/html; chars=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;et=3D=</span><br><span>3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0); co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(0, 0, 0, 0.701961); -webkit-composit=</span><br><span>ion-fill-color: rgba(130, 98, 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392);"&amp;gt;Mike &amp;=</span><br><span>amp;amp; Co. --&amp;lt;/span&amp;gt;&amp;lt;br&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D=</span><br><span>"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=</span><br><span>l-color: rgba(130, 98=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 83, 0.0980392); margin-bottom: 0.=</span><br><span>0001pt;"&amp;gt;Congratulations, team. &amp;amp;nbsp;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an st=</span><br><span>yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Last night's narrow&amp;a=</span><br><span>mp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;win in Iowa&amp;amp;nbsp;&amp;lt;/span&amp;gt;provided a big=</span><br><span>moral victory and took some of th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e win out of the chall=</span><br><span>enger's sails. &amp;amp;nbsp;It also means&amp;lt;span style=3D3D"backg=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;round-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;that, for at least=</span><br></blockquote><span>several weeks=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, the Democratic nomination contest will c=</span><br><span>ontinue apace. &amp;amp;nbsp;And it is lik=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ely that Wall Stre=</span><br><span>et regulation will likely remain one the &amp;amp;nbsp;campaign's c=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;entral issues. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoN=</span><br></blockquote><span>ormal" style=3D3D"color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0, 0, 0, 0.701961); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;392); m=</span><br><span>argin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;At the heart of this debate is the Dodd=</span><br><span>-Frank Act (DFA). &amp;amp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; Public opinion is still inf=</span><br><span>luenced in the main by memories of the 2008 fin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ancial cr=</span><br><span>isis and the recession that followed, so the candidates' views on D=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;FA get special attention.&amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;=</span><br></blockquote><span>gt;&amp;lt;p class=3D3D"MsoNormal" style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"color: rgba(0,=</span><br><span>0, 0, 0.701961); -webkit-composition-fill-color: rgba(130=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"bac=</span><br><span>kground-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(255, 255, 255, 0);"&amp;gt;Below, we re-=</span><br><span>examine these views and try to cl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ear up the misconceptio=</span><br><span>ns that make it hard for&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"b=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ackground-color: rgba(255, 255, 255, 0);"&amp;gt;voters to identify t=</span><br><span>he candidate b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;est able to defend the protections that&amp;am=</span><br><span>p;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"backgroun=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;DFA provides millions of American consumer=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;s, investors, and workers.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;=</span><br><span>lt;p class=3D3D"MsoNormal" style=3D3D"c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt; 83, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backgrou=</span><br><span>nd-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;Best,&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: r=</span><br><span>gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(255, 255, 255, 0);"&amp;gt;Dana&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: r=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130,=</span><br></blockquote><span>98, 83, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"background-color: rgba(25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 255, 0);"=</span><br><span>&amp;gt;-----------------&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" styl=</span><br><span>e=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"color: rgba(0, 0, 0, 0.701961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392); margin-bott=</span><br><span>om: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"background-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;The assertion that DFA doesn=3DE2=3D80=3D99t do e=</span><br><span>nough t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o rein in Wall Street has become some sort of pro=</span><br><span>gressive shibboleth that as=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; misleading as it is short-si=</span><br><span>ghted and self-defeating. &amp;amp;nbsp;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.7=</span><br><span>01961); -webkit-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mposition-fill-color: rgba(130, 98, 83=</span><br><span>, 0.0980392); margin-bottom: 0.0001pt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Polling shows th=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;e American public believes strong financial regulation is criti=</span><br><span>cally needed (=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;74 percent of Democrats, 56 percent Indepe=</span><br><span>ndents, 46 percent Republicans, 64=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; percent all voters). &amp;=</span><br><span>amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;Polling has also shown that 66 percent of Am=</span><br><span>ericans are eit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;her =3DE2=3D80=3D9Cnot very familiar=3DE2=</span><br><span>=3D80=3D9D with or have =3DE2=3D80=3D9Cnever heard of=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D=</span><br><span>E2=3D80=3D9D Dodd-Frank. &amp;amp;nbsp;It&amp;amp;nbsp;is difficult for reasonable d=</span><br><span>ialogue to b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e conducted in an environment made up of str=</span><br><span>ong support for regulatory refor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;m on one hand and a lack=</span><br><span>of knowledge of what is in DFA on the other.&amp;lt;/span&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); margin-bottom: 0.0001p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t;"&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Any public deb=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;ate on DFA is hampered by the complexity of the issues involved. &amp;=</span><br><span>amp;nbsp;Addit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ionally, there is a perception that it has=</span><br><span>failed in its objectives. &amp;amp;nbsp;B=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;eyond the f=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;act that the law isn=3DE2=3D80=3D99t even fully implemented,=</span><br><span>major financial insti=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tutions have already begun restruc=</span><br><span>turing&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;in ways that indicate the law is work=</span><br><span>ing p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;roperly.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"=</span><br><span>background-color: rgba(255, 255, 255, 0)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;amp;nbsp;=</span><br><span>But how many voters know this?&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNo=</span><br><span>rmal" st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit=</span><br><span>-composition-fill-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;130, 98, 83, 0.0980392); m=</span><br><span>argin-bottom: 0.0001pt;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"background=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;-color: rgba(255, 255, 255, 0);"&amp;gt;Has Dodd-Frank Worked?&amp;lt;/u&amp;gt;=</span><br><span>&amp;lt;/b&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"MsoNormal" style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fil=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;l-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;sp=</span><br><span>an style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;The Great Recession and the r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;esulting Dodd-Frank Act=</span><br><span>changed the trajectory of the financial industry. &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>bsp;The law isn't perfect but it is having a stabilizing effect. &amp;amp;nbsp;=</span><br></blockquote><span>Some o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;f the biggest firms on Wall Street -- MetLife, Cit=</span><br><span>iGroup, General Electric -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;- have shrunk since the law wa=</span><br><span>s enacted and as a direct result of its regula=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tions. &amp;am=</span><br><span>p;nbsp;Those that haven't shrunk are under even more pressure to break=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; up or reduce their size now than they were before Dodd-Frank.=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lass=3D3D"MsoNormal" style=</span><br><span>=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;io=</span><br><span>n-fill-color: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt=</span><br><span>;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;The candidates are spl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;it concerning whether or no=</span><br><span>t DFA is an full and sufficient model for regulat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing fin=</span><br><span>ancial markets. &amp;amp;nbsp;While HRC wants to preserve and protect the pro=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;gress made by DFA while bolstering certain parts of the law=</span><br><span>, while Sanders c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;onsiders the law to be well intentioned=</span><br><span>yet deeply flawed.&amp;amp;nbsp; However, qu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;estions should b=</span><br><span>e raised about judging the DFA=3DE2=3D80=3D99s efficacy right now -=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; each candidate is forming an opinion on the act despite the fact=</span><br></blockquote><span>that DFA h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;asn=3DE2=3D80=3D99t even reached maturity yet=</span><br><span>- only about 70 percent of DFA provi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sions have been imp=</span><br><span>lemented.&amp;amp;nbsp;&amp;amp;nbsp;Beyond the implementation gap is the=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt; issue that the results of financial reform cannot be seen overnigh=</span><br><span>t.&amp;amp;nbsp; A=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; piece of legislation as large and multifa=</span><br><span>ceted as Dodd-Frank might take a d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ecade to ripen.&amp;amp;nb=</span><br><span>sp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=</span><br><span>(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0, 0, 0, 0.701961); -webkit-composition-fill-color: rgb=</span><br><span>a(130, 98, 83, 0.0980=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;392); margin-bottom: 0.0001pt;"&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255=</span><br><span>, 0);"&amp;gt;Even as the greatest effects of DFA remain to be see, recent e=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;vents indicate that DFA is working as it was intended to.&amp;am=</span><br><span>p;nbsp; Any candidat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e who claims that DFA is in need of m=</span><br><span>ajor overhaul needs to answer this ques=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion: What pressi=</span><br><span>ng need is there to overturn a law that has, to this point,=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt; largely accomplished its overarching objectives?&amp;lt;/span&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;=</span><br><span>amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-colo=</span><br><span>r: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt=</span><br><span>;"&amp;gt;&amp;lt;b&amp;gt;&amp;lt;u style=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;2016 Candidates and Dodd-Frank&amp;lt;/u&amp;gt;&amp;lt;/b&amp;gt;&amp;lt;=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNormal" style=3D3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;omposition-fill-color: rgb=</span><br><span>a(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;The candid=</span><br><span>ates i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n this year's primaries have given voters two choi=</span><br><span>ces: stick with Dodd-Frank=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; and add some tweaks or repeal=</span><br><span>it/change it fundamentally. There is only one=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; candidate=</span><br><span>in the former group - HRC. Every other candidate, including Berni=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;e Sanders, intends to greatly change Dodd-Frank, or get rid of it a=</span><br><span>ll togeth=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;er, if elected. With that choice in mind, it is=</span><br><span>necessary to remember how mo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;numental Dodd-Frank was and=</span><br><span>the political climate that it was passed in - on=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e with a=</span><br><span>Democratic majority in both houses. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nb=</span><br><span>sp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNorm=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al" st=</span><br><span>yle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color:=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"back=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ground-color: rgba(255, 255, 255=</span><br><span>, 0);"&amp;gt;DFA enjoyed widespread support in the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; years im=</span><br><span>mediately following its passage;&amp;amp;nbsp;Clinton needs to ring the ala=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;rm bells that her opponents intend to kill off an effective t=</span><br><span>ool for regulat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing Wall Street for the sake of trying ou=</span><br><span>t unproven strategies that are buil=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t more on ideology th=</span><br><span>an policy.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; rgba(255, 255, 255, 0);"&amp;gt;&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p class=3D3D"MsoNormal" style=3D3D"c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-color: rgba(130, 98,=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt; 83, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>ound-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;Obviously, most R=</span><br><span>epublican candidates would prefer t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o do away with Dodd-Fra=</span><br><span>nk completely as it is greatly disliked by their bigg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;est=</span><br><span>supporters. Bernie Sanders proposes something similar to Glass-Steagall,=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; but also wants to create a list of the banks that are "too=</span><br><span>-big-too-fail" an=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d "break them up." He outlined his inte=</span><br><span>ntions in legislation he proposed to C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ongress back in Ma=</span><br><span>y 2015. Bloomberg Politics notes, "Similar to legislation h=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;e introduced in previous years, when Democrats controlled the U.S. Senate=</span><br><span>, t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;he bill has little chance of advancing." &amp;amp;nbsp;&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p class=3D3D"MsoNor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mal" style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;: rgba(130, 98, 83, 0.0980392); margin-bottom: 0.0001pt;"&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"bac=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;So voters can decide on strengthenin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g a law that is a=</span><br><span>lready working to reign in Wall Street's risks or abandonin=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;g it for either less regulation or poorly aimed regulations. Considering t=</span><br><span>he=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; historical record of these other reform ideas, how ca=</span><br><span>n voters be expected t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o take those suggestions seriously=</span><br><span>?&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;On Jan 28=</span><br><span>, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;016, at 8:19 PM, Dana &amp;amp;lt;&amp;lt;a href=3D3D"&lt;a href=</span><br><span>=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">mailto:[email-masked]</a>&lt;/a&gt;"&amp;gt;danacha=</span><br><span>sin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;@&lt;a href=3D"<a href="http://gmail.com">http://gmail.com</a>"&gt;<a href="http://gmail.com">gmail.com</a>&lt;/a&gt;&amp;lt;/a&amp;gt;=</span><br><span>&amp;amp;gt; wrote:&amp;lt;br&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;blockquote type=3D3D"cite=</span><br><span>"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta h=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ttp-equiv=3D3D"content-type" c=</span><br><span>ontent=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;me=</span><br><span>ta http-equiv=3D3D"content-type" content=3D3D"text/html; c=3D&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;span&gt;harset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-typ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=</span><br><span>" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; http-equiv=3D3D"=</span><br><span>content-type" content=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;s=</span><br><span>p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;Mike &amp;amp;amp; Co. --&amp;lt;/sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;br&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/sp=</span><br><span>an&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; ma=</span><br><span>rgin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"vertical-align=</span><br><span>: baseline; background-color: rgba(255, 255, 255, 0);"&amp;gt;Ordina=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;rily this time of year, you would perhaps start to spot leaks or hea=</span><br><span>r scuttl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebutt about the president's spending plans for t=</span><br><span>he next fiscal year, in anti=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cipation of the statutory Fe=</span><br><span>bruary White House budget rollout. &amp;amp;nbsp;No one n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oti=</span><br><span>ced when the administration announced it would miss next week's legal bud=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;get submission deadline. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;=</span><br><span>lt;p dir=3D3D"ltr" style=3D3D"margin-top=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0pt; margin-bo=</span><br><span>ttom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline; backgro=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;und-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;l=</span><br><span>t;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-top: 0pt; m=</span><br><span>argin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;; background-color: rgba(255, 255, 255, 0);"&amp;gt;With FY17 topline=</span><br></blockquote><span>s set in the o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mnibus bill passed last month, you may hea=</span><br><span>r little in the Beltway about the b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;udget anytime soon (a=</span><br><span>lthough the Chair did announce plans yesterday to intro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d=</span><br><span>uce a budget resolution this year, to the surprise of many, including Major=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ity Leader McConnell). &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt=</span><br><span>;p dir=3D3D"ltr" style=3D3D"margin-top: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt; margin-bott=</span><br><span>om: 0pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" s=</span><br><span>tyle=3D3D"margin-top: 0pt; margin-bottom=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0pt;"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Even on th=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;e campaign trail in the Granite State, with its famously flin=</span><br><span>ty tax-o-phobes=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, nary a word is heard about the debt, le=</span><br><span>t alone defaulting it, not this yea=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r. &amp;amp;nbsp;&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D=</span><br><span>3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span sty=</span><br><span>le=3D3D"vertical-align: baseline; background-color: rgba(255, 255, 255=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;The federal budget, deficits, and the debt have not y=</span><br><span>et gotten much a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ir play yet this campaign. &amp;amp;nbsp;But=</span><br><span>if we lifted up the car hood, what woul=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d we see?&amp;amp;nb=</span><br><span>sp; What is our medium-long term fiscal outlook, what would the i=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;mpact on it of the candidates' proposals be, and what fiscal issues=</span><br><span>are most=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; likely to arise in the primary debate?&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"background-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D=</span><br><span>3D"margin-to=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"vertical-align: baseline; backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba=</span><br><span>(255, 255, 255, 0);"&amp;gt;Best,&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"back=</span><br><span>grou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;=</span><br><span>/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-top: 0pt;=</span><br><span>margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline; bac=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;kground-color: rgba(255, 255, 255, 0);"&amp;gt;Dana&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(25=</span><br><span>5, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"m=</span><br><span>arg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"vertical-align: baseline; b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ackground-color: rgba(255,=</span><br><span>255, 255, 0);"&amp;gt;--------------&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span sty=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;le=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"margin-top: 0=</span><br><span>pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"font-weight: 70=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;0; text-decoration: underline; vertical-align: baseline; background-c=</span><br></blockquote><span>olor: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;CBO 10-year Deficit Pr=</span><br><span>ojections&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ltr" styl=</span><br><span>e=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"font-wei=</span><br><span>g=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ht: 700; text-decoration: underline; vertical-align: ba=</span><br><span>seline; background-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lor: rgba(255, 255, 255, 0);"&amp;gt;&amp;l=</span><br><span>t;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-=</span><br><span>align: baseline; back=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ground-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;The CBO reported last week that it ex=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pects the an=</span><br><span>nual deficit to grow from its current $450 billion to $1.3 trill=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;ion by 2016. Candidates issuing calls for increased spending, agains=</span><br><span>t this b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ackdrop, may be called to account. &amp;amp;nbsp;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;margi=</span><br><span>n-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: base=</span><br><span>lin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;=</span><br><span>br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D=</span><br><span>3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-ali=</span><br><span>gn:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; baseline; background-color: rgba(255, 255, 255, 0);"=</span><br><span>&amp;gt;Perhaps in recognition=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; of this, both HRC and Sen. Sa=</span><br><span>nders have recently and admirably detailed how=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; they woul=</span><br><span>d use executive actions to enact parts of their revenue packages w=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;ithout Congressional support. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;Bot=</span><br><span>h have proposed extensive new spending plans as p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;art of t=</span><br><span>heir primary platform. however, it may be time for the candidates to=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt; get serious about the fiscal viability of these plans from a fi=</span><br><span>scal perspec=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tive.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-botto=</span><br><span>m: 0pt;"&amp;gt;&amp;lt;span=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"font-weight: 700; text-d=</span><br><span>ecoration: underline; vertical-align: base=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;line; backgrou=</span><br><span>nd-color: rgba(255, 255, 255, 0);"&amp;gt;Clinton -- Fiscal Stimulus?=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;p dir=3D=</span><br><span>3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span styl=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"vertical-align: baseline; background-color: rgba(255=</span><br><span>, 255, 255, 0);"&amp;gt;HR=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;C has proposed a tax package that w=</span><br><span>ill raise federal revenue by $500 billion=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; over ten years=</span><br><span>, to be used for a $350 billion =3DE2=3D80=3D9CCollege Compact=3DE2=3D80=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;=3D9D plan, for tax deductions on health care spending, and t=</span><br><span>o fund an ambitio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;us infrastructure investment package. &amp;=</span><br><span>amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;Her spending plans are split between those w=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;hich provide short-term economic stimulus and those whic=</span><br><span>h are aimed at provi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ding longer-term boost.&amp;amp;nbsp; He=</span><br><span>r $250 billion plan to increase infrastructu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re investmen=</span><br><span>t in the country =3DE2=3D80=3D93 paid for by reviving the =3DE2=3D80=3D9CBui=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ld America Bonds=3DE2=3D80=3D9D program and federal reve=</span><br><span>nue -- &amp;amp;nbsp;works on two f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ronts.&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;p dir=3D3=</span><br><span>D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: rgba(255, 255, 255, 0);"&amp;gt;First, h=</span><br><span>iring middle-class worke=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rs in construction, engineering,=</span><br><span>and the trades the plan puts more money int=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o the hands o=</span><br><span>f people who tend to spend that money quickly.&amp;amp;nbsp; Second, im=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;proving roads, bridges, and tunnels in America the plan will make=</span><br></blockquote><span>future tra=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nsport of goods more reliable, speedy, and sa=</span><br><span>fe, all calculated to spur econ=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;omic growth.&amp;amp;nbsp;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255,=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt; 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" sty=</span><br><span>le=3D3D"margin-top: 0pt; margin-bottom=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0pt;"&amp;gt;&amp;lt;spa=</span><br><span>n style=3D3D"vertical-align: baseline; background-color: rgba(255,=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; 255, 255, 0);"&amp;gt;The =3DE2=3D80=3D9CCollege Compact=3DE2=3D80=3D=</span><br><span>9D aims to forgive studen=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t loans, lower college tuition,=</span><br><span>and make community colleges tuition-free. &amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp;By r=</span><br><span>emoving the burden of debt from young graduates, HRC hopes to free t=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;hose people up to begin consuming at a higher rate.&amp;amp;nbsp; Th=</span><br><span>e current home-o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;wnership rate for young Americans is dis=</span><br><span>tressingly low largely due to their d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebt burden after co=</span><br><span>llege, HRC would rather young Americans take debt on in a=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>n equity-building purchase than spend thirty years repaying their college d=</span><br></blockquote><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gree. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;&amp;lt;br&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-botto=</span><br><span>m: 0pt;"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;span style=3D3D"fo=</span><br><span>nt-weight: 700; text-decoration: underline; vertical-align=3D&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;span&gt;: baseline; background-color: rgba(255, 255, 255, 0);"&amp;gt;The=</span><br><span>Sanders Health Ca=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;re Tax Bill&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)=</span><br><span>;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt;=</span><br><span>margin-bottom: 0pt;"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;span s=</span><br><span>tyle=3D3D"vertical-align: baseline; background-color: rgba(255, 255, 2=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;55, 0);"&amp;gt;Sanders=3DE2=3D80=3D99 $14 trillion s=</span><br><span>pending plan, his =3DE2=3D80=3D9CMedicare f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or All=3DE2=3D=</span><br><span>80=3D9D proposal, would require the single largest tax hike in the n=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ation=3DE2=3D80=3D99s history, bringing taxes on the wealthy to l=</span><br><span>evels not seen si=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nce Reagan.&amp;amp;nbsp; These taxes, the s=</span><br><span>ize of which already makes them non-star=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ters even among D=</span><br><span>emocrats in Congress, are to be used to enact single-payer h=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ealthcare legislation =3DE2=3D80=3D93 legislation which didn=3DE2=3D80=3D=</span><br><span>99t even get a v=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ote during a Democratic majority in Obam=</span><br><span>a=3DE2=3D80=3D99s first term. &amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt=</span><br></blockquote><span>;/span&amp;gt;&amp;lt;p dir=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"ltr" style=3D3D"margin-top: 0pt=</span><br><span>; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-a=</span><br><span>lign: baseline; background-color: rgba(255, 255, 255, 0);"&amp;gt;Sanders must h=</span><br><span>o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pe that the economic efficiency of a single-payer healt=</span><br><span>h care plan, which fi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nds its savings in the reduced role=</span><br><span>of middle-men and insurance companies, w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ill result in s=</span><br><span>avings passed onto Americans =3DE2=3D80=3D93 Americans who will, in=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; their turn, spend those savings in the economy at large. &amp;lt;/sp=</span><br></blockquote><span>an&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr"=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt; style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"vertical-alig=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: baseline; background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;He has found politic=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al success i=</span><br><span>n his promise to make colleges and universities in America tuiti=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;on-free.&amp;amp;nbsp; The impetus behind this plan is similar to that o=</span><br><span>f Mrs. Clint=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on =3DE2=3D80=3D93 students with lower debt b=</span><br><span>urdens are going to spend a greater p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ortion of their inc=</span><br><span>ome on food and entertainment, as well as on equity-inves=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>tments like homes. &amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"background-co=</span><br></blockquote><span>lor: rgba(255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-botto=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;m: 0pt;"&amp;gt;&amp;lt;span style=3D3D"font-weight: 700; text-decoration: under=</span><br><span>line; vertic=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;al-align: baseline; background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;Campaign Impa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ct&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br=</span><br><span>&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-t=</span><br><span>op: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"ver=</span><br><span>tical-align: baseline; background-color: rgba(255, 255, 255, 0);"&amp;gt;=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;The CBO=3DE2=3D80=3D99s federal budget projections released las=</span><br><span>t week indicated th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;at the annual federal deficit will gr=</span><br><span>ow to $1.3 trillion by 2026.&amp;amp;nbsp; It=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3D99=</span><br><span>s unlikely that the CBO report will be linked to the candidates' spend=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;ing plans in any meaningful way.&amp;amp;nbsp; And to be fair, eac=</span><br><span>h candidate has pu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t forward proposals to raise revenue e=</span><br><span>quivalent to the costs of their plans (=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or at least to th=</span><br><span>e extent that their own analyses can be trusted); this is o=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ften a rarity amongst politicians running for office and they should be a=</span><br><span>ppl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;auded for doing so.&amp;amp;nbsp; Because of this, both c=</span><br><span>ampaigns can claim that the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ir proposals will not raise t=</span><br><span>he federal deficit =3DE2=3D80=3D93 it=3DE2=3D80=3D99s unlik=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ely that those claims will remain unchallenged in the future. &amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/p&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"font-weig=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ht: 700; vertical-align: baseline; backgroun=</span><br><span>d-color: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;&amp;lt;u&amp;gt;Tax Founda=</span><br><span>tion Analysis &amp;lt;/u&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"backgroun=</span><br><span>d-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; marg=</span><br><span>in-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline; background=</span><br><span>-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 255, 0);"&amp;gt;Recent analyses by t=</span><br><span>he Tax Foundation, a grou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p which uses dynamic scoring me=</span><br><span>thods to judge revenue, have found that Clint=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on=3DE2=3D8=</span><br><span>0=3D99s plan will reduce economic output by 1 percent over a decade, wh=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;ile Sanders=3DE2=3D80=3D99 proposals will lower GDP by a stag=</span><br><span>gering 9.5 percent.&amp;amp;n=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bsp; Dynamic scoring is a contr=</span><br><span>oversial method of analyzing revenue estimate=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s =3DE2=3D8=</span><br><span>0=3D93 it takes into account the supposed deleterious effects caused by=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt; tax increases and attempts to adjust growth the reflect thos=</span><br><span>e effects.&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt=</span><br><span>;"&amp;gt;&amp;lt;span style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;vertical-align: baseline; back=</span><br><span>ground-color: rgba(255, 255, 255, 0);"&amp;gt;A CRS r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eport p=</span><br><span>ublished in 2014, however, stated that =3DE2=3D80=3D9CA review of statistic=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;al evidence suggests that both labor supply and savings and=</span><br><span>investment are r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;elatively insensitive to tax rates.=3DE=</span><br><span>2=3D80=3D9D&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" s=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;tyle=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"vertical-align:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; baseline; background-color: rgba(255,=</span><br><span>255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span=</span><br><span>style=3D3D"vertical=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-align: baseline; background-color: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;While each camp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aign will be i=</span><br><span>nclined to&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(=</span><br><span>2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 255, 0);"&amp;gt;argue that any analysis which men=</span><br><span>tions economic contracti=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on as an effect of their plans i=</span><br><span>s based on improper economics, it may not ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tter to vote=</span><br><span>rs whether they=3DE2=3D80=3D99re right or not. &amp;amp;nbsp;American voters h=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ave always been tax-averse but will pay for what they want.=</span><br><span>&amp;amp;nbsp;Maybe the b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iggest yet-unanswered question: do=</span><br><span>they want another overhaul of he nation's=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; healthcare en=</span><br><span>ough to pay a new record in tax increases?&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"=</span><br><span>&amp;gt;&amp;lt;span style=3D3D"backgrou=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd-color: rgba(255, 255,=</span><br><span>255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3=</span><br><span>D"ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"color: rgba(0, 0, 0, 0.70=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;1961); -webkit-compositi=</span><br><span>on-fill-color: rgba(130, 98, 83, 0.0980392); text-de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cora=</span><br><span>tion: -webkit-letterpress;"&amp;gt;Recent Updates&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div s=</span><br><span>tyle=3D3D"color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.0980392); text-dec=</span><br><span>oration: -webkit-letterpress;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;Fiscal Pol: Def=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;icit/Debt Dormancy (Jan. 28)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span st=</span><br><span>yle=3D3D"background-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(255, 255, 255, 0);"&amp;gt;T=</span><br><span>he Fed Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/di=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;div&amp;gt;Debate Myths Challenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/d=</span><br></blockquote><span>iv&amp;gt;&amp;lt;div&amp;gt;Regulating the Regu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lators &amp;amp;nbsp;(Ja=</span><br><span>n. 21)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Sanders' Tax/Healthcare Policy &amp;amp;nbsp;(Jan 2=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan=</span><br><span>. 17)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;2016 Tax Agenda on the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Hill &amp;a=</span><br><span>mp;nbsp;(Jan. 16)&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;Glass-Steagall, Take 2 &amp;amp;nbsp;(Ja=</span><br><span>n. 13)&amp;lt;/div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;2016 Tax Poli=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cy I=</span><br><span>ssues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;gba(255, 255, 255, 0);"&amp;gt;Sanders=</span><br><span>Proposals/GS &amp;amp;amp; TBTF (Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div=3D&lt;/span&gt;&lt;br&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&amp;gt;Sanders' Fin=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt; R=</span><br><span>eg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Year-End Review: Fiscal Policy (Jan. 1) &amp;amp;nbsp;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/s=</span><br><span>pan&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Yea=</span><br><span>r-End Rev=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iew: Fin. Reg.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;=</span><br><span>&amp;amp;nbsp;(Dec. 29) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-co=</span><br><span>lor: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;Omnibus Review (Dec. 15=</span><br><span>)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Situation &amp;amp;nbsp;(=</span><br><span>Dec. 14=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"background-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;=</span><br><span>lt;div&amp;gt;&amp;lt;span style=3D3D"background-=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8)&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Tax Extender Nego=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;tiations &amp;amp;nbsp;(Dec. 6) o&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: r=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;gba(255, 255, 255, 0);"&amp;gt;Brown on HFT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;Shelby 2.0 Update &amp;amp;nbsp;(=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background=</span><br><span>-color: rgba(255, 255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;On Jan 28, 2016, at 10:12 AM, Dana &amp;amp;lt;&amp;lt;a href=3D3D=</span><br><span>"&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">mailto:[email-masked]</a>&lt;/a&gt;=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;om"&amp;gt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;dana=</span><br><span><a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;lt;/a&amp;gt;&amp;amp;gt; wrote:&amp;lt;br&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;blockquote type=3D3D"cit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta h=</span><br><span>ttp-equiv=3D3D"content-type" content=3D3D"text/html; charset=3D3Dut=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;f-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;g=</span><br></blockquote><span>t;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-e=</span><br><span>q=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;uiv=3D3D"content-type" content=3D3D"text/html; charset=3D=</span><br><span>3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" content=3D3D"text/html=</span><br><span>; charset=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;meta http-equiv=3D3D"content-type" con=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;tent=3D3D"text/html; charset=3D3Dutf-8"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;p dir=</span><br><span>=3D3D"ltr" style=3D3D"color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color: rgba(130, 98, 83, 0.098=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;039=</span><br><span>2); text-decoration: -webkit-letterpress; margin-top: 0pt; margin-bottom:=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline; bac=</span><br><span>kground-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;Dear Mike &amp;am=</span><br><span>p;amp; Co.,&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; text-decoration: -webkit-letterpress; bac=</span><br><span>kground-color: rgba(255, 255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebkit-composition-fill-color: rgba(130, 98, 83, 0.0980392);=</span><br><span>text-decoration:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; -webkit-letterpress; margin-top: 0pt; m=</span><br><span>argin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"v=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ertical-alig=</span><br><span>n: baseline; background-color: rgba(255, 255, 255, 0);"&amp;gt;Pre-prim=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;ary endorsements from Party leaders in tight contests are rare an=</span><br></blockquote><span>d sometimes=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; understated.&amp;amp;nbsp; To wit, President Oba=</span><br><span>ma remarks this week that HRC is as=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; prepared to be presi=</span><br><span>dent as any non-Vice President as anyone&amp;lt;/span&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;yle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;: =3DE2=3D80=3D=</span><br><span>9CI think that wh=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;at Hillary presents is a recognition th=</span><br><span>at translating values into governance=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; and delivering the=</span><br><span>goods is ultimately the job of politics, making a real-l=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ife difference to people in their day-to-day lives.=3DE2=3D80=3D9D&amp;lt;/span=</span><br></blockquote><span>&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r=3D3D"ltr" style=3D3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -webkit-composition-fill-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;color: rgb=</span><br><span>a(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; m=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;argin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"backgr=</span><br><span>ound-color: rgba(2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/s=</span><br><span>pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.=</span><br></blockquote><span>0980392); t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ext-decoration: -webkit-letterpress; margin-t=</span><br><span>op: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span style=3D3D"ver=</span><br><span>tical-align: baseline; background-color: rgba(255, 255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;, 0);"&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rg=</span><br><span>ba(0, 0, 0, 0.701961); -w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebkit-composition-fill-color: r=</span><br><span>gba(130, 98, 83, 0.0980392); text-decoration:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; -webkit-le=</span><br><span>tterpress; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"v=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ertical-align: baseline; background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;Yesterda=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;y, House Democratic leader Nancy sta=</span><br><span>rting doing precisely that, assessing th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e centerpiece of=</span><br><span>Sanders' platform: &amp;amp;nbsp;"He's talking about a single-payer=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;, and that's not going to happen. I mean, does anybody in this room t=</span><br><span>hink th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;at we're going to be discussing a single-payer? .=</span><br><span>.. We're not running on any=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; platform of raising taxes."&amp;=</span><br><span>amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: r=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;gba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;0980392); text-decoration: -webkit-letter=</span><br><span>press; margin-top: 0pt; margin-bott=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;om: 0pt;"&amp;gt;&amp;lt;br&amp;g=</span><br><span>t;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"text-decoration: -webkit-letterpr=</span><br><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ss; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"vertical-align: bas=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;eline; background-color: rg=</span><br><span>ba(255, 255, 255, 0);"&amp;gt;Far from the cauldron of C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ongr=</span><br><span>ess and the icy campaign trail was an announcement by the Fed with impli=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;cations for the overall economy and for the election year ah=</span><br><span>ead.&amp;amp;nbsp; More o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n the Fed's statement and its impli=</span><br><span>cations below. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;"ltr" style=3D3D"text-decoration: -webkit-letterpress; margin-top: 0pt=</span><br><span>; margin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-a=</span><br><span>lign: baseline; background-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"text-d=</span><br><span>ecoratio=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: -webkit-letterpress; margin-top: 0pt; margin-=</span><br><span>bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-color: r=</span><br><span>gba(255, 255, 255, 0);"&amp;gt;Please let me know if you have a=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ny questions or issue coverage requests.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;=</span><br><span>&amp;lt;p dir=3D3D"ltr" styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"text-decoration: -webkit-=</span><br><span>letterpress; margin-top: 0pt; margin-bottom: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pt;"&amp;gt;&amp;l=</span><br><span>t;span style=3D3D"vertical-align: baseline; background-color: rgba(255, 25=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;5, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D=</span><br><span>3D"ltr" style=3D3D"text-decoration: -webkit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-letterpress;=</span><br><span>margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"backgroun=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;d-color: rgba(255, 255, 255, 0);"&amp;gt;Best,&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"te=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;xt-decoration: -web=</span><br><span>kit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;s=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;pan style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;g=</span><br></blockquote><span>t;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r=3D3D"ltr" style=3D3D"=</span><br><span>text-decoration: -webkit-letterpress; margin-top: 0pt; ma=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>rgin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br></blockquote><span>55, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: r=</span><br><span>gba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;.701961); -webkit-composition=</span><br><span>-fill-color: rgba(130, 98, 83, 0.0980392); text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decorati=</span><br><span>on: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;----=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;-------------&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0=</span><br><span>, 0.701961); -webkit-comp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;osition-fill-color: rgba(130, 9=</span><br><span>8, 83, 0.0980392); text-decoration: -webkit-l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;etterpress;=</span><br><span>background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p d=</span><br><span>ir=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(130, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-letterpress; margin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-top: 0=</span><br><span>pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"text-decoration: underline; v=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ertical-align: baseline; background-color: rgba(255, 255=</span><br><span>, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;The Fe=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d's Statement&amp;lt;/b&amp;gt;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392)=</span><br><span>; text-decoration=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: -webkit-letterpress; background-color=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701=</span><br><span>961); -webkit-composition=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392); text-decoration: -webkit-letterpr=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;ess; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical=</span><br><span>-align: ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;seline; background-color: rgba(255, 255, 255, 0=</span><br><span>);"&amp;gt;The Federal Open Market C=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ommittee (FOMC) of the Fe=</span><br><span>deral Reserve decided yesterday not to raise rates i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n Ja=</span><br><span>nuary.&amp;amp;nbsp; Last month, the Fed voted to raise interest rates for the f=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;irst time in nine years, setting its rate target between=</span><br><span>0.25 and 0.5 percen=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t.&amp;amp;nbsp; Today's statement reaff=</span><br><span>irmed this decision, noting that recent mark=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;et turbulenc=</span><br><span>e had not stayed the Fed from its plan to continue =3DE2=3D80=3D9Conly=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt; gradual increases in the federal funds rate.=3DE2=3D80=3D9D &amp;=</span><br><span>amp;nbsp;Speculation and=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; hope are rife that the FOMC wil=</span><br><span>l hold off raising rates in March and wait u=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ntil June. &amp;=</span><br><span>amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0=</span><br><span>, 0, 0, 0.7=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;01961); -webkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392); text-d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ecoration: -webkit-letter=</span><br><span>press; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;tyle=3D3D"vertical-align: baseline; background-color: rgba(255, 255, 255, 0=</span><br><span>);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -web=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;kit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-decoration: -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-letterpress; margin-=</span><br><span>top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"ver=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>tical-align: baseline; background-color: rgba(255, 255, 255, 0);"&amp;gt;But th=</span><br></blockquote><span>e st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;atement today indicated no change in the Fed=3DE2=3D=</span><br><span>80=3D99s plan for previously o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;utlined &amp;amp;nbsp;rate inc=</span><br><span>reases, four 0.25 percent increases this year, with to=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ta=</span><br><span>l increases of one percent this year and next.&amp;amp;nbsp; However, the FOMC i=</span><br><span>s l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argely comprised of dovish voters, who may change tac=</span><br><span>k if current market cor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rections continue. &amp;amp;nbsp;&amp;amp=</span><br><span>;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ext-decoration: -webkit-letterpress; backgro=</span><br><span>und-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;it-composition-fill-color: rgba(130, 98, 83, 0.0980392); te=</span><br><span>xt-decoration: -w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebkit-letterpress; margin-top: 0pt; mar=</span><br><span>gin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration=</span><br><span>: underline; vertical-align: baseline; background-color: rgba(255=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;Market Reaction&amp;lt;/b&amp;gt;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(0, 0, 0, 0.701=</span><br><span>961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.098=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;0392); text-decoration: -webkit-letterpress; background-color: rgba(255=</span><br><span>, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3=</span><br><span>D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;); -webki=</span><br><span>t-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-decora=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;tion: -webkit-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&amp;=</span><br></blockquote><span>gt;&amp;lt;span style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"vertical-align: baseline; backgro=</span><br><span>und-color: rgba(255, 255, 255, 0);"&amp;gt;The=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; Dow Jones Ind=</span><br><span>ustrial average is down from 17.759 on December 16 to 15,951 t=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;oday; the S&amp;amp;amp;P 500 has declined from 2,073 to 1,879 over the sa=</span><br><span>me period.=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;amp;nbsp; The&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt=</span><br><span>;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.70=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>1961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392); text-d=</span><br></blockquote><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;coration: -webkit-letterpress; margin-top: 0pt; margin-=</span><br><span>bottom: 0pt;"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"vertical-align: bas=</span><br><span>eline; background-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Fed however expressed confidence in continuing economic g=</span><br><span>rowth, calling low=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt; inflation and the declin=</span><br><span>e in energy prices =3DE2=3D80=3D9Ctransitory=3DE2=3D80=3D9D and=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt; predicting 2 percent inflation in the medium-term as energy prices r=</span><br></blockquote><span>ise aga=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span sty=</span><br><span>le=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;composit=</span><br><span>ion-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;it-letterpress; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;l=</span><br><span>t;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"ltr" style=3D3D"colo=</span><br><span>r: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ol=</span><br><span>or: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; ma=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"=</span><br><span>vertical-align: baseline;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&amp;gt;In a nod to beleaguered investor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s, the C=</span><br><span>ommittee wrote that it =3DE2=3D80=3D9C... is closely monitoring global eco=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;nomic and financial developments and is assessing their imp=</span><br><span>lications for the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; labor market and inflation, and for th=</span><br><span>e balance of risks to the outlook.=3DE2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D80=3D9D &amp;amp;n=</span><br><span>bsp;So the Fed has, unusually, acknowledged the global scope of its=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; deliberations.&amp;amp;nbsp; FOMC also indicated a focus on =3DE2=3D=</span><br></blockquote><span>80=3D9Clabor market i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ndicators [which] will continue to s=</span><br><span>trengthen."&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"col=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>or: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br></blockquote><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392); text-decoration: -webkit-letterpress; bac=</span><br><span>kground-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.0980392=</span><br></blockquote><span>); text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-letterpress; margin-top: 0pt=</span><br><span>; margin-bottom: 0pt;"&amp;gt;&amp;lt;spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n style=3D3D"vertical-a=</span><br><span>lign: baseline; background-color: rgba(255, 255, 255, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)=</span><br><span>;"&amp;gt;For now, though inflation is running just 0.4 percent, well below its t=</span><br><span>w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o percent target, the Fed has not disavowed its plan to=</span><br><span>raise rates four tim=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;es this year. &amp;amp;nbsp;&amp;amp;nbsp;T=</span><br><span>his cannot be welcome to global equine markets. &amp;amp;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nbs=</span><br><span>p;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;Domest=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ic and global capital markets have already lo=</span><br><span>st roughly ten percent since th=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e December rate hike. &amp;am=</span><br><span>p;nbsp;Fed policy&amp;amp;nbsp;may be having a decelerating eff=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;ect on growth and so could be a marginal drag on Democratic prospects. &amp;a=</span><br><span>mp;nbsp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color=</span><br><span>: rgba(0, 0, 0, 0.701961); -webkit-compositi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on-fill-colo=</span><br><span>r: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letter=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;press; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/=</span><br><span>span&amp;gt;&amp;lt;p dir=3D3D"ltr" s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"color: rgba(0, 0,=</span><br><span>0, 0.701961); -webkit-composition-fill-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(130,=</span><br><span>98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-top: 0=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"text-decorat=</span><br><span>ion: underline; vertical=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-align: baseline; background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;b&amp;gt;New FOMC Mem=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ber=</span><br><span>s&amp;lt;/b&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0=</span><br><span>.701961); -webkit-co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mposition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.0980392); text-decoration: -webkit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-letterpress; bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"ltr" style=3D3D"color: rgba(0, 0, 0, 0.701961); -webk=</span><br><span>it-composition-fill-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(130, 98, 83, 0.0980392);=</span><br><span>text-decoration: -webkit-letterpress; margi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n-top: 0pt; m=</span><br><span>argin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline; ba=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;ckground-color: rgba(255, 255, 255, 0);"&amp;gt;The FOMC is made u=</span><br><span>p of rotating boa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rd of seven voting members taken from B=</span><br><span>oard of Governors members as well as r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;egional bank offic=</span><br><span>ials; these members rotate on an annual basis at the first=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt; meeting of each year.&amp;amp;nbsp; The 2016 committee members are listed bel=</span><br><span>ow (id=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;entified as"hawks," those favoring tight monetary p=</span><br><span>olicy or "doves," support=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ing more accommodative policy).=</span><br><span>&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 8=</span><br><span>3, 0.09803=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;92); text-decoration: -webkit-letterpress; bac=</span><br><span>kground-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt=</span><br><span>;/span&amp;gt;&amp;lt;ul style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;position-fill-color: rgba(130, 98, 83, 0.0980392); text-decor=</span><br><span>ation: -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;letterpress; margin-top: 0pt; margin-bott=</span><br><span>om: 0pt;"&amp;gt;&amp;lt;li dir=3D3D"ltr" style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;list-style-=</span><br><span>type: disc; vertical-align: baseline; margin-left: 15px;"&amp;gt;&amp;lt;p dir=3D3D=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;=</span><br><span>lt;font color=3D3D"rgba(0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0, 0.7019607843137254)"&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 25=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>5, 0);"&amp;gt;&amp;lt;a href=3D3D"&lt;a href=3D"<a href="http://www.federalreserve.gov/aboutthe=">http://www.federalreserve.gov/aboutthe=</a></span><br><span>fed/bios/board/yell=3D"&gt;<a href="http://www.federalreserve.gov/aboutthefed/bios/board=">http://www.federalreserve.gov/aboutthefed/bios/board=</a></span><br><span>/yell=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;en.htm" style=3D3D"text-decoration: none;"&amp;gt;&amp;=</span><br><span>lt;span style=3D3D"text-decoration: und=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;erline; vertical-=</span><br><span>align: baseline;"&amp;gt;Janet L. Yellen&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;vertical-align: baseline;"&amp;gt;, Board of Governors, C=</span><br><span>hair (dove)&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/font&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;li dir=3D3D"ltr" style=3D3D"list-style-type: disc; vertic=</span><br><span>al-alig=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: baseline; margin-left: 15px;"&amp;gt;&amp;lt;p dir=3D3=</span><br><span>D"ltr" style=3D3D"margin-top: 0pt; ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin-bottom: 0pt;"&amp;=</span><br><span>gt;&amp;lt;font color=3D3D"rgba(0, 0, 0, 0.7019607843137254)"&amp;gt;&amp;lt;span s=3D&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;a=</span><br><span>href=3D3D"&lt;a href=3D"<a href="http://www.fed=3D">http://www.fed=3D</a>"&gt;<a href="http://www.fed=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;">http://www.fed=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;</a>&lt;sp=</span><br><span>an&gt;&lt;a href=3D"<a href="http://eralreserve.gov/aboutthefed/bios/banks/pres02.htm">http://eralreserve.gov/aboutthefed/bios/banks/pres02.htm</a>"&gt;eral=</span><br><span><a href="http://reserve.gov/aboutthefed/bios/banks/pres02.htm">reserve.gov/aboutthefed/bios/banks/pres02.htm</a>&lt;/a&gt;" style=3D3D"text-decoratio=</span><br><span>n:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; none;"&amp;gt;&amp;lt;span style=3D3D"text-decoration: underl=</span><br><span>ine; vertical-align: baseline;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;William C. Dudley&amp;lt;=</span><br><span>/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;, Ne=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;w York, Vice Chair (dove)&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/fon=</span><br><span>t&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;li dir=3D3D"ltr" style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3=</span><br><span>D"list-style-type: disc; vertical-align: baseline; margin-left: 15px;"&amp;gt;&amp;l=</span><br><span>t;p d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bot=</span><br><span>tom: 0pt;"&amp;gt;&amp;lt;font color=3D3D"rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(0, 0, 0, 0.701960=</span><br><span>7843137254)"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;&amp;lt;a href=3D3D"&lt;a href=3D"<a href="http://www.federalreser=">http://www.federalreser=</a></span><br><span><a href="http://ve.gov/aboutthefed/bios/boar=3D">ve.gov/aboutthefed/bios/boar=3D</a>"&gt;<a href="http://www.federalreserve.gov/aboutthefed/b=">http://www.federalreserve.gov/aboutthefed/b=</a></span><br><span>ios/boar=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;d/brainard.htm" style=3D3D"text-decoration: n=</span><br><span>one;"&amp;gt;&amp;lt;span style=3D3D"text-decorat=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion: underline;=</span><br><span>vertical-align: baseline;"&amp;gt;Lael Brainard&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span s=</span><br><span>ty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"vertical-align: baseline;"&amp;gt;, Board of Gover=</span><br><span>nors (dove)&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;font&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;li dir=3D3D"ltr" style=3D3D"list-style-type: disc; font-w=</span><br><span>eight: 7=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;00; vertical-align: baseline; margin-left: 15px;=</span><br><span>"&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin-top: 0pt; mar=</span><br><span>gin-bottom: 0pt;"&amp;gt;&amp;lt;font color=3D3D"rgba(0, 0, 0, 0.701960784=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;3137254)"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;&amp;lt;a href=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&lt;a href=3D"<a href="http://www.federa=">http://www.federa=</a></span><br><span><a href="http://lreserve.gov/aboutthefed/bios/banks/pres08.htm">lreserve.gov/aboutthefed/bios/banks/pres08.htm</a>"&gt;<a href="http://www.federalreserve.go=">http://www.federalreserve.go=</a></span><br><span>v/aboutthefed/bios/banks/pres08.htm&lt;/a&gt;" style=3D3D"t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ext=</span><br><span>-decoration: none;"&amp;gt;&amp;lt;span style=3D3D"text-decoration: underline; verti=</span><br><span>cal-a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;lign: baseline;"&amp;gt;James Bullard&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>a&amp;gt;&amp;lt;span style=3D3D"vertical-align: base=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;line;"&amp;gt;,=</span><br><span>St. Louis (hawk)&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/font&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/li&amp;gt=</span><br><span>;&amp;lt;li dir=3D3D"ltr" style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"list-style-type: disc; v=</span><br><span>ertical-align: baseline; margin-left: 15px;"&amp;gt;&amp;lt;p d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;i=</span><br><span>r=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;font col=</span><br><span>or=3D3D"rgb=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a(0, 0, 0, 0.7019607843137254)"&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"background-color: rgba(255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 255, 0);"&amp;gt;=</span><br><span>&amp;lt;a href=3D3D"&lt;a href=3D"<a href="http://www.federalreserve.gov/aboutthefed/bios/bo=">http://www.federalreserve.gov/aboutthefed/bios/bo=</a></span><br><span>ar=3D"&gt;<a href="http://www.federalreserve.gov/aboutthefed/bios/boar=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;=">http://www.federalreserve.gov/aboutthefed/bios/boar=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;=</a></span><br><span>&lt;span&gt;d/fischer.htm" style=3D3D"text-decoration: none;"&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"text-decorati=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on: underline; vertical-align: baseline;=</span><br><span>"&amp;gt;Stanley Fischer&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yl=</span><br><span>e=3D3D"vertical-align: baseline;"&amp;gt;, Board of Governors (hawk)&amp;lt;/span&amp;gt=</span><br><span>;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/font&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;li d=</span><br><span>ir=3D3D"ltr" style=3D3D"list-style-type: disc; font-weight: 7=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;00; vertical-align: baseline; margin-left: 15px;"&amp;gt;&amp;lt;p dir=3D3D"ltr=</span><br><span>" style=3D3D"ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;l=</span><br><span>t;font color=3D3D"rgba(0, 0, 0, 0.701960784=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3137254)"&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;a href=</span><br><span>=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&lt;a href=3D"<a href="http://www.federalreserve.gov/aboutthef=">http://www.federalreserve.gov/aboutthef=</a></span><br><span>ed/bios/banks/pres10.htm"&gt;<a href="http://www.federalreserve.gov/aboutthefed/bios/ban=">http://www.federalreserve.gov/aboutthefed/bios/ban=</a></span><br><span>ks/pres10.htm&lt;/a&gt;" style=3D3D"t=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ext-decoration: none;"&amp;gt=</span><br><span>;&amp;lt;span style=3D3D"text-decoration: underline; vertical-a=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;lign: baseline;"&amp;gt;Esther L. George&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span style=</span><br><span>=3D3D"vertical-align: b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aseline;"&amp;gt;, Kansas City (hawk)=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/font&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;li dir=3D3D"=</span><br><span>ltr" s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"list-style-type: disc; font-weight: 700;=</span><br><span>vertical-align: baseline; m=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;argin-left: 15px;"&amp;gt;&amp;lt;p d=</span><br><span>ir=3D3D"ltr" style=3D3D"margin-top: 0pt; margin-bottom: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>pt;"&amp;gt;&amp;lt;font color=3D3D"rgba(0, 0, 0, 0.7019607843137254)"&amp;gt;&amp;lt;span s=</span><br></blockquote><span>tyle=3D3D"backgr=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ound-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>&amp;lt;a href=3D3D"&lt;a href=3D"<a href="http://www.federalreserve.go=3D">http://www.federalreserve.go=3D</a>"&gt;<a href="http://www.feder=">http://www.feder=</a></span><br><span>alreserve.go=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;v/aboutthefed/bios/banks/pres04.htm" sty=</span><br><span>le=3D3D"text-decoration: none;"&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"t=</span><br><span>ext-decoration: underline; vertical-align: baseline;"&amp;gt;Loretta J. Me=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;ster&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span style=3D3D"vertical-align:=</span><br><span>baseline;"&amp;gt;, Cleveland (hawk)&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;/font&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;li dir=3D3D"ltr" style=3D3D"list-st=</span><br><span>yle-type: disc;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; vertical-align: baseline; margin-left: 1=</span><br><span>5px;"&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n-top: 0pt;=</span><br><span>margin-bottom: 0pt;"&amp;gt;&amp;lt;font color=3D3D"rgba(0, 0, 0, 0.701960784313=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;7254)"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;&amp;lt;a href=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;a href=3D"<a href="http://www.f=">http://www.f=</a></span><br><span><a href="http://ederalreserve.gov/aboutthefed/bios/board/powell.htm">ederalreserve.gov/aboutthefed/bios/board/powell.htm</a>"&gt;<a href="http://www.federalreser=">http://www.federalreser=</a></span><br><span><a href="http://ve.gov/aboutthefed/bios/board/powell.htm">ve.gov/aboutthefed/bios/board/powell.htm</a>&lt;/a&gt;" style=3D3D"te=3D&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;xt-decoration: none;"&amp;gt;&amp;lt;span style=3D3D"text-decoration: underline; v=</span><br><span>ertical-al=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ign: baseline;"&amp;gt;Jerome H. Powell&amp;lt;/span&amp;g=</span><br><span>t;&amp;lt;/a&amp;gt;&amp;lt;span style=3D3D"vertical-align: ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;seline=</span><br><span>;"&amp;gt;, Board of Governors (swing)&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/font&amp;gt;&amp;lt=</span><br><span>;/p&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;li dir=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"ltr" style=3D3D"list-s=</span><br><span>tyle-type: disc; font-weight: 700; vertical-align: base=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l=</span><br><span>ine; margin-left: 15px;"&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"margin-top: 0pt; m=</span><br><span>argin-bo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ttom: 0pt;"&amp;gt;&amp;lt;font color=3D3D"rgba(0, 0, 0,=</span><br><span>0.7019607843137254)"&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;a href=3D3D"&lt;a href=3D"<a href="http://www.fed=">http://www.fed=</a></span><br><span>eralres=3D"&gt;<a href="http://www.federalres=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;">http://www.federalres=3D&lt;/a&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;</a>&lt;a href=3D"<a href="http://e=">http://e=</a></span><br><span><a href="http://rve.gov/aboutthefed/bios/banks/pres01.htm">rve.gov/aboutthefed/bios/banks/pres01.htm</a>"&gt;<a href="http://erve.gov/aboutthefed/bios/banks/p=">erve.gov/aboutthefed/bios/banks/p=</a></span><br><span>res01.htm&lt;/a&gt;" style=3D3D"text-decoration: none;"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&amp;lt;span style=3D3D"text-decoration: underline; vertical-=</span><br><span>align: baseline;"&amp;gt;Eric R=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;osengren&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;, Boston (d=</span><br><span>ove)=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/font&amp;gt;&amp;lt;/p&amp;gt;&amp;lt=</span><br><span>;/li&amp;gt;&amp;lt;li dir=3D3D"ltr" style=3D3D"list-style-type: disc=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;; vertical-align: baseline; margin-left: 15px;"&amp;gt;&amp;lt;p dir=3D3D"ltr" s=</span><br><span>tyle=3D3D"marg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;in-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;f=</span><br><span>ont color=3D3D"rgba(0, 0, 0, 0.70196078431=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;37254)"&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;a href=3D=</span><br><span>3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&lt;a href=3D"<a href="http://www.federalreserve.gov/aboutthefed/=">http://www.federalreserve.gov/aboutthefed/=</a></span><br><span>bios/board/tarullo.htm"&gt;<a href="http://www.federalreserve.gov/aboutthefed/bios/board=">http://www.federalreserve.gov/aboutthefed/bios/board=</a></span><br><span>/tarullo.htm&lt;/a&gt;" style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;text-decoration: none;"&amp;gt;=</span><br><span>&amp;lt;span style=3D3D"text-decoration: underline; vertical-=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>align: baseline;"&amp;gt;Daniel K. Tarullo&amp;lt;/span&amp;gt;&amp;lt;/a&amp;gt;&amp;lt;span style=</span><br></blockquote><span>=3D3D"vertical-align:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; baseline;"&amp;gt;, Board of Governors=</span><br><span>(dove)&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/font&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/li&amp;gt;&amp;lt;/ul&amp;g=</span><br><span>t;&amp;lt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan style=3D3D"color: rgba(0, 0, 0, 0.701961); -w=</span><br><span>ebkit-composition-fill-color:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; rgba(130, 98, 83, 0.098039=</span><br><span>2); text-decoration: -webkit-letterpress; backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-col=</span><br><span>or: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" s=</span><br><span>tyle=3D3D"color=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 83,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; 0.0980392); text-dec=</span><br><span>oration: -webkit-letterpress; margin-top: 0pt; margin-b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;o=</span><br><span>ttom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;&amp;lt;span=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"vertical-align: baseline;"&amp;gt;N=</span><br><span>ew members this year are&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;span s=</span><br><span>tyle=3D3D"font-weight: 700; vertical-align: baseline;"&amp;gt;James Bullard, Es=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ther George, Loretta Mester,&amp;lt;/span&amp;gt;&amp;lt;span style=3D3=</span><br><span>D"vertical-align: baseline;"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&amp;a=</span><br><span>mp;nbsp;and&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"font-weight: 700; vert=</span><br><span>ical-align: base=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;line;"&amp;gt;Eric Rosengren.&amp;l=</span><br><span>t;/span&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline;"&amp;gt;&amp;amp;nbsp=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;;&amp;amp;nbsp;The FOMC consists of 12 voting members, with two no=</span><br><span>minees awaiting Se=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nate confirmation.&amp;amp;nbsp; A shift i=</span><br><span>n the balance of power between hawks and d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;oves may occur=</span><br><span>but the doves hold a slim majority for now.&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p=</span><br><span>&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(130, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-letterpress; backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" s=</span><br><span>tyle=3D3D"col=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;or: rgba(0, 0, 0, 0.701961); -webkit-compos=</span><br><span>ition-fill-color: rgba(130, 98, 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;3, 0.0980392); text-dec=</span><br><span>oration: -webkit-letterpress; margin-top: 0pt; margin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-bo=</span><br><span>ttom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"text-decoration: underline; vertical-alig=</span><br><span>n: ba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;seline; background-color: rgba(255, 255, 255, 0);"&amp;=</span><br><span>gt;&amp;lt;b&amp;gt;Code Breaking&amp;lt;/b&amp;gt;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/p&amp;g=</span><br><span>t;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fi=</span><br><span>l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l-color: rgba(130, 98, 83, 0.0980392); text-decoration:=</span><br><span>-webkit-letterpress;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rg=</span><br><span>ba(130, 9=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;8, 83, 0.0980392); text-decoration: -webkit-let=</span><br><span>terpress; margin-top: 0pt; ma=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rgin-bottom: 0pt;"&amp;gt;&amp;lt;s=</span><br><span>pan style=3D3D"vertical-align: baseline; background-color=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>: rgba(255, 255, 255, 0);"&amp;gt;Fed watchers have made an art form out of rea=</span><br></blockquote><span>ding=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; between the lines of these policy releases, even th=</span><br><span>e most benign of which c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an cause huge swings in markets (=</span><br><span>the Dow dropped over 200 points in the wake=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; of today=3DE=</span><br><span>2=3D80=3D99s release).&amp;amp;nbsp; Fed statements are famously difficult to=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; parse but one point was unmistakable: the Fed is keeping a=</span><br><span>close eye on the=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; labor market -- employment and partici=</span><br><span>pation rates, wages, etc. -- as a lea=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ding indicator for i=</span><br><span>nflation and overall growth perhaps more than any other v=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>ariable. &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0=</span><br></blockquote><span>, 0, 0, 0.701961); -we=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;bkit-composition-fill-color: rgba(=</span><br><span>130, 98, 83, 0.0980392); text-decoration: -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-letter=</span><br><span>press; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; dir=3D3D"ltr" style=3D3D"color: rgba(0, 0, 0, 0.70=</span><br><span>1961); -webkit-composition-fi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ll-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text-decoration: -webkit-letterpress=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; margi=</span><br><span>n-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"text-decoration: und=</span><br><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rline; vertical-align: baseline; background-color: rgba=</span><br><span>(255, 255, 255, 0);"&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;b&amp;gt;Campaign Consequences&amp;l=</span><br><span>t;/b&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;.701961); -webkit-composition-fill-color: rgba(130, 98, 83,=</span><br><span>0.0980392); text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-letterpress; backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"color: rgba(0, 0=</span><br></blockquote><span>, 0, 0.701961); -webkit-=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;composition-fill-co=</span><br><span>lor: rgba(130, 98, 83, 0.0980392); text-decoration: -webk=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>it-letterpress; margin-top: 0pt; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3=</span><br></blockquote><span>D"vertica=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l-align: baseline; background-color: rgba(255, 2=</span><br><span>55, 255, 0);"&amp;gt;None of the ca=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ndidates has commented on=</span><br><span>today=3DE2=3D80=3D99s release, not surprisingly, but the=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>policy may draw ire from some on the right, who oppose fiat rate-targeting=</span><br></blockquote><span>(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;though it took no action today) and the left, where lo=</span><br><span>wering rather than rai=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sing rate is preferred (except for=</span><br><span>holders of fixed income securities). &amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p;&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ion-fill-color: rgba(130, 98, 83, 0.0980392); tex=</span><br><span>t-decoration: -webkit-lette=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rpress; background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr"=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; style=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=</span><br></blockquote><span>ill-color: rg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ba(130, 98, 83, 0.0980392); text-decoration=</span><br><span>: -webkit-letterpress; margin-top=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: 0pt; margin-bottom: 0=</span><br><span>pt;"&amp;gt;&amp;lt;span style=3D3D"vertical-align: baseline; backgro=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;und-color: rgba(255, 255, 255, 0);"&amp;gt;Sen.&amp;amp;nbsp; Sanders, true to h=</span><br><span>is reputati=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;on of standing far outside the Democratic fol=</span><br><span>d, has long opposed the Fed for=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; being too involved with t=</span><br><span>he bankers they are meant to be regulating.&amp;amp;nbsp; S=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a=</span><br><span>nders has called for reform measures at the Fed, including prohibiting peop=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;le serving on bank boards from serving on the Fed at the sa=</span><br><span>me time.&amp;amp;nbsp;&amp;lt;/s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pan&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>ill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterpres=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;br&amp;=</span><br><span>gt;&amp;lt;/span&amp;gt;&amp;lt;p dir=3D3D"ltr" styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"color: rg=</span><br><span>ba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(13=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;0, 98, 83, 0.0980392); text-decoration: -webkit-letterpress; margin-to=</span><br><span>p: 0pt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; margin-bottom: 0pt;"&amp;gt;&amp;lt;span style=3D3D"vert=</span><br><span>ical-align: baseline; background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor: rgba(255, 255, 2=</span><br><span>55, 0);"&amp;gt;The Fed was confident that economic growth wo=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>uld continue on its steady pace, indicating strength in labor markets and d=</span><br></blockquote><span>o=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;wnplaying both financial market reactions and diving co=</span><br><span>mmodities prices.&amp;amp;nbs=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;p; The FOMC sets monetary polic=</span><br><span>y on a long-term basis; the full ramification=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s of their d=</span><br><span>ecisions aren=3DE2=3D80=3D99t felt until months or years out, so any c=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;ontention that the economy is strong enough to handle higher i=</span><br><span>nterest rates i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;s essentially an endorsement of macroecon=</span><br><span>omic policy in the last few years. D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;emocratic candidates=</span><br><span>will need to hammer this point home - but it is yet to b=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>e seen if voters will understand the message that Democratic policies are r=</span><br></blockquote><span>e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;sponsible for the sunny outlook for the American econom=</span><br><span>y, especially compare=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;d to Western Europe, Latin America,=</span><br><span>and Asia.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba=</span><br><span>(130=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 98, 83, 0.0980392); text-decoration: -webkit-lette=</span><br><span>rpress; margin-top: 11pt=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; margin-bottom: 0pt;"&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"vertical-align: baseline; background-c=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olor=</span><br><span>: rgba(255, 255, 255, 0);"&amp;gt;Below is the first sentence of the FOMC state=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ment from yesterday, edited to reflect changes from last mo=</span><br><span>nth's statement:&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;di=</span><br><span>v&amp;gt;&amp;lt;div dir=3D3D"ltr"&amp;gt;&amp;lt;span id=3D3D"docs-internal-guid-d5a88007=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;-7fec-b922-12e4-5ebf8ff54494"&amp;gt;&amp;lt;span style=3D3D"vertic=</span><br><span>al-align: baseline; backg=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;round-color: rgba(255, 255, 255=</span><br><span>, 0);"&amp;gt;&amp;lt;div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;/d=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;iv&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div class=3D3D"statement=</span><br><span>s" style=3D3D"margin: 0px; padding: 0px 0.5em; b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;order: 0=</span><br><span>px; vertical-align: baseline;"&amp;gt;&amp;lt;div class=3D3D"diff_statement_holder" s=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"margin: 0px; padding: 0px; border: 0px; font-s=</span><br><span>tyle: inherit; font-va=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;riant: inherit; vertical-align: ba=</span><br><span>seline;"&amp;gt;&amp;lt;div class=3D3D"statement_sheet wid=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;get bo=</span><br><span>rdered" style=3D3D"margin: 5px 0px; padding: 5px; border: 1px solid rgb(=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;221, 221, 221); font-style: inherit; font-variant: inherit; v=</span><br><span>ertical-align: b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aseline; overflow: auto; word-break: bre=</span><br><span>ak-word; -webkit-hyphens: auto; bord=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;er-top-left-radius: 2=</span><br><span>px; border-top-right-radius: 2px; border-bottom-right-r=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a=</span><br><span>dius: 2px; border-bottom-left-radius: 2px; -webkit-box-shadow: rgb(221, 221=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 221) 1px 1px 1px; box-shadow: rgb(221, 221, 221) 1px 1px 1=</span><br><span>px;"&amp;gt;&amp;lt;div class=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"statement_text" style=3D3D"ma=</span><br><span>rgin: 0px; padding: 0px; border: 0px; font-style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: inheri=</span><br><span>t; font-variant: inherit; vertical-align: baseline; overflow-x: hidd=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;en;"&amp;gt;&amp;lt;p style=3D3D"margin: 0.5em; padding: 0px; border: 0p=</span><br><span>x; font-style: inher=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;it; font-variant: inherit; vertical-=</span><br><span>align: baseline;"&amp;gt;&amp;lt;span style=3D3D"backgro=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;und-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span style=3D3D"margin: 0px; padding: 0px=</span><br><span>=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; border: 0px; font-style: inherit; font-variant: inheri=</span><br><span>t; vertical-align: b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;aseline;"&amp;gt;For&amp;amp;nbsp;&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;del style=3D3D"margin: 0px; padding: 0px; border: 0=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"=</span><br><span>&amp;gt;i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;mmediate release&amp;lt;/del&amp;gt;&amp;lt;ins style=3D3D"marg=</span><br><span>in: 0px; padding: 0px; border: 0px; f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ont-style: inherit;=</span><br><span>font-variant: inherit; vertical-align: baseline; text-de=3D&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>coration: none;"&amp;gt;release&amp;amp;nbsp;&amp;lt;a href=3D3D"x-apple-data-detectors=</span><br></blockquote><span>://14" x-appl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e-data-detectors=3D3D"true" x-apple-data-de=</span><br><span>tectors-type=3D3D"calendar-event" x-a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;pple-data-detectors=</span><br><span>-result=3D3D"14"&amp;gt;at 2:00 p.m. EST&amp;lt;/a&amp;gt;&amp;lt;/ins&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/=</span><br><span>p&amp;gt;&amp;lt;p st=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;yle=3D3D"margin: 0.5em; padding: 0px; borde=</span><br><span>r: 0px; font-style: inherit; font-v=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ariant: inherit; vert=</span><br><span>ical-align: baseline;"&amp;gt;&amp;lt;span style=3D3D"background-color:=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt; rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;span style=3D3D"margin: 0px; padding=</span><br></blockquote><span>: 0px; border: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;px; font-style: inherit; font-variant: i=</span><br><span>nherit; vertical-align: baseline;"&amp;gt;I=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nformation receiv=</span><br><span>ed since the Federal Open Market Committee met in&amp;amp;nbsp;&amp;lt;/sp=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;an&amp;gt;&amp;lt;del style=3D3D"margin: 0px; padding: 0px; border: 0px; f=</span><br><span>ont-style: inherit=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;; font-variant: inherit; vertical-alig=</span><br><span>n: baseline;"&amp;gt;Octo&amp;lt;/del&amp;gt;&amp;lt;ins style=3D3D"=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;marg=</span><br><span>in: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: i=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;nherit; vertical-align: baseline; text-decoration: none;"&amp;gt=</span><br><span>;Decem&amp;lt;/ins&amp;gt;&amp;lt;span s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"margin: 0px; paddi=</span><br><span>ng: 0px; border: 0px; font-style: inherit; font-va=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;riant:=</span><br><span>inherit; vertical-align: baseline;"&amp;gt;ber suggests that&amp;amp;nbsp;&amp;lt;/span=</span><br><span>&amp;gt;&amp;lt;de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;l style=3D3D"margin: 0px; padding: 0px; border=</span><br><span>: 0px; font-style: inherit; font=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-variant: inherit; verti=</span><br><span>cal-align: baseline;"&amp;gt;economic activity has been exp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;a=</span><br><span>nding at a moderate pace&amp;lt;/del&amp;gt;&amp;lt;ins style=3D3D"margin: 0px; padding:=</span><br><span>0px; bord=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;er: 0px; font-style: inherit; font-variant: in=</span><br><span>herit; vertical-align: baselin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e; text-decoration: none;"=</span><br><span>&amp;gt;labor market conditions improved further even as e=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;co=</span><br><span>nomic growth slowed late last year&amp;lt;/ins&amp;gt;&amp;lt;span style=3D3D"margin: 0p=</span><br><span>x; paddin=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;g: 0px; border: 0px; font-style: inherit; font-=</span><br><span>variant: inherit; vertical-al=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ign: baseline;"&amp;gt;. Househ=</span><br><span>old spending and business fixed investment have been=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; inc=</span><br><span>reasing at&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;del style=3D3D"margin: 0px; padding: 0p=</span><br><span>x; border: 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;px; font-style: inherit; font-variant: inher=</span><br><span>it; vertical-align: baseline;"&amp;gt;s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;olid&amp;lt;/del&amp;gt;&amp;lt;i=</span><br><span>ns style=3D3D"margin: 0px; padding: 0px; border: 0px; font-style: i=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;nherit; font-variant: inherit; vertical-align: baseline; text-dec=</span><br></blockquote><span>oration: no=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ne;"&amp;gt;moderate&amp;lt;/ins&amp;gt;&amp;lt;span style=3D=</span><br><span>3D"margin: 0px; padding: 0px; border: 0px; fo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nt-style: i=</span><br><span>nherit; font-variant: inherit; vertical-align: baseline;"&amp;gt;&amp;amp;nbsp;r=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;ates in recent months, and the housing sector has improved f=</span><br><span>urther; however,=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; net exports have been soft&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;ins style=3D3D"margin: 0px; padding: 0px; b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;order: 0p=</span><br><span>x; font-style: inherit; font-variant: inherit; vertical-align: base=3D&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;line; text-decoration: none;"&amp;gt;&amp;amp;nbsp;and inventory investme=</span><br></blockquote><span>nt slowed&amp;lt;/ins&amp;gt;&amp;lt;sp=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;an style=3D3D"margin: 0px; pa=</span><br><span>dding: 0px; border: 0px; font-style: inherit; fon=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;t-varia=</span><br><span>nt: inherit; vertical-align: baseline;"&amp;gt;. A range of recent labor mar=3D&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;ket indicators, including&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;del styl=</span><br><span>e=3D3D"margin: 0px; padding: 0p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;x; border: 0px; font-styl=</span><br><span>e: inherit; font-variant: inherit; vertical-align: b=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;asel=</span><br><span>ine;"&amp;gt;ongoi&amp;lt;/del&amp;gt;&amp;lt;ins style=3D3D"margin: 0px; padding: 0px; bord=</span><br><span>er: 0px; f=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ont-style: inherit; font-variant: inherit; ver=</span><br><span>tical-align: baseline; text-de=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;coration: none;"&amp;gt;stro&amp;l=</span><br><span>t;/ins&amp;gt;&amp;lt;span style=3D3D"margin: 0px; padding: 0px; border:=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt; 0px; font-style: inherit; font-variant: inherit; vertical-align: ba=</span><br><span>seline;"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;ng job gains&amp;lt;/span&amp;=</span><br><span>gt;&amp;lt;del style=3D3D"margin: 0px; padding: 0px; border: 0px; fo=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;span&gt;nt-style: inherit; font-variant: inherit; vertical-alig=</span><br><span>n: baseline;"&amp;gt;&amp;amp;nbsp;a=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nd declining unemployment, s=</span><br><span>hows further improvement and confirms that under=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;utilizat=</span><br><span>ion of labor resources has diminished appreciably since early this y=3D&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;ear&amp;lt;/del&amp;gt;&amp;lt;ins style=3D3D"margin: 0px; padding: 0px; bor=</span><br><span>der: 0px; font-style: i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nherit; font-variant: inherit; ve=</span><br><span>rtical-align: baseline; text-decoration: no=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ne;"&amp;gt;, poi=</span><br><span>nts to some additional decline in underutilization of labor resour=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;ces&amp;lt;/ins&amp;gt;&amp;lt;span style=3D3D"margin: 0px; padding: 0px; bord=</span><br><span>er: 0px; font-style: i=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;nherit; font-variant: inherit; ver=</span><br><span>tical-align: baseline;"&amp;gt;. Inflation has co=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ntinued to r=</span><br><span>un below the Committee's 2 percent longer-run objective, partly r=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;eflecting declines in energy prices and in prices of non-energy imp=</span><br><span>orts. Mar=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ket-based measures of inflation compensation&amp;am=</span><br><span>p;nbsp;&amp;lt;/span&amp;gt;&amp;lt;del style=3D3D"margi=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n: 0px; padd=</span><br><span>ing: 0px; border: 0px; font-style: inherit; font-variant: inheri=3D&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;t; vertical-align: baseline;"&amp;gt;remain low; some&amp;lt;/del&amp;gt;&amp;lt;ins=</span><br><span>style=3D3D"margin: 0p=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;x; padding: 0px; border: 0px; font=</span><br><span>-style: inherit; font-variant: inherit; ve=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;rtical-align: b=</span><br><span>aseline; text-decoration: none;"&amp;gt;declined further;&amp;lt;/ins&amp;gt;&amp;lt;span=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt; style=3D3D"margin: 0px; padding: 0px; border: 0px; font-st=</span><br><span>yle: inherit; font-=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;variant: inherit; vertical-align: bas=</span><br><span>eline;"&amp;gt;&amp;amp;nbsp;survey-based measures of l=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;onger-ter=</span><br><span>m inflation expectations&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;del style=3D3D"margin: 0p=</span><br><span>x; pad=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ding: 0px; border: 0px; font-style: inherit; font-=</span><br><span>variant: inherit; vertical=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-align: baseline;"&amp;gt;have edg=</span><br><span>ed down&amp;lt;/del&amp;gt;&amp;lt;ins style=3D3D"margin: 0px; padding: 0=3D&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;px; border: 0px; font-style: inherit; font-variant: inherit; vertical-a=</span><br><span>lign:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; baseline; text-decoration: none;"&amp;gt;are little ch=</span><br><span>anged, on balance, in recent=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; months&amp;lt;/ins&amp;gt;&amp;lt;span s=</span><br><span>tyle=3D3D"margin: 0px; padding: 0px; border: 0px; font-sty=3D&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;le: inherit; font-variant: inherit; vertical-align: baseline;"&amp;gt;.&amp;lt;/sp=</span><br><span>an&amp;gt;&amp;lt;/spa=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;n&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;p dir=3D3D"ltr" style=3D3D"=</span><br><span>text-decor=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ation: -webkit-letterpress; margin-top: 11pt; m=</span><br><span>argin-bottom: 0pt;"&amp;gt;&amp;lt;span sty=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;le=3D3D"vertical-alig=</span><br><span>n: baseline; background-color: rgba(255, 255, 255, 0);"&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;/span&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"backgrou=</span><br></blockquote><span>nd-color: rgba(255, 255, 255, 0);=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/spa=</span><br><span>n&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"text-decoration: -webkit-let=</span><br><span>terpress;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; background-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>--------------------&amp;lt;/span&amp;gt;&amp;lt;/div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;br&amp;gt;&amp;lt;span style=3D3D"color: rgba(0, 0, 0, 0.=</span><br><span>701961); -webkit-compositio=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;n-fill-color: rg=</span><br><span>ba(130, 98, 83, 0.0980392); text-decoration: -webkit-letterp=3D&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;ress;"&amp;gt;Recent Updates&amp;lt;/span&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0=</span><br><span>, 0, 0.701961); -w=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ebkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); text-decoration:=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; -webkit-letterpre=</span><br><span>ss;"&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0, 0, 0.7019=</span><br><span>61=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;); -webkit-composition-fill-color: rgba(130, 98, 83, 0=</span><br><span>.0980392); text-decora=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tion: -webkit-letterpress;"&amp;gt;&amp;lt=</span><br><span>;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;55, 0=</span><br><span>);"&amp;gt;The Fed Holds Rates, for Now &amp;amp;nbsp;(Jan. 28)&amp;lt;/span&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;div style=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;=3D3D"color: rgba(0, 0, 0, 0.701961); -=</span><br><span>webkit-composition-fill-color: rgba(130=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 98, 83, 0.09803=</span><br><span>92); text-decoration: -webkit-letterpress;"&amp;gt;Debate Myths Ch=3D&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;allenged &amp;amp;nbsp;(Jan. 25)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba=</span><br><span>(0, 0, 0, 0.701961); -=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;webkit-composition-fill-color: rgb=</span><br><span>a(130, 98, 83, 0.0980392); text-decoration=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;: -webkit-lett=</span><br><span>erpress;"&amp;gt;Regulating the Regulators &amp;amp;nbsp;(Jan. 21)&amp;lt;/div&amp;gt;&amp;lt;di=</span><br><span>v s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"color: rgba(0, 0, 0, 0.701961); -webkit-com=</span><br><span>position-fill-color: rgba=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;(130, 98, 83, 0.0980392); text-=</span><br><span>decoration: -webkit-letterpress;"&amp;gt;Sanders' Ta=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;x/Health=</span><br><span>care Policy &amp;amp;nbsp;(Jan 20)&amp;lt;/div&amp;gt;&amp;lt;div style=3D3D"color: rgba(0, 0=</span><br><span>, 0, 0=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;.701961); -webkit-composition-fill-color: rgba(130=</span><br><span>, 98, 83, 0.0980392); text=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;-decoration: -webkit-letterpre=</span><br><span>ss;"&amp;gt;HRC's Tax Policy &amp;amp;nbsp;(Jan. 17)&amp;lt;br&amp;gt;&amp;lt;div&amp;gt;=3D&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;amp;nbsp;(Jan. 16)&amp;lt;/div&amp;gt;&amp;lt;div&amp;=</span><br><span>gt;Glass-Steagall, Take 2=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;amp;nbsp;(Jan. 13)&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 2=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;55, 0);"&amp;gt;2016 Tax Policy Issues &amp;amp;nbsp;(Jan. 8)&amp;lt;/span&amp;gt;=</span><br><span>&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;"background-co=</span><br><span>lor: rgba(255, 255, 255, 0);"&amp;gt;Sanders Proposals/GS &amp;amp;amp; TBTF (=3D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;Jan. 7)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D=</span><br><span>"background-color: rgba(255, 255, 255=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;Sanders' =</span><br><span>Fin Reg Proposals &amp;amp;nbsp;(Jan. 5)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;=</span><br><span>span styl=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;e=3D3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;Year-End Review: Fiscal Poli=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;cy (Jan. 1) &amp;amp;nbsp;=</span><br><span>&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255=3D&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;, 0);"&amp;gt;Year-End Review: Fin. Reg.&amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;=</span><br><span>span style=3D3D"background-colo=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;r: rgba(255, 255, 255, 0)=</span><br><span>;"&amp;gt;&amp;amp;nbsp;(Dec. 29) &amp;amp;nbsp;&amp;lt;/span&amp;gt;&amp;lt;span style=3D3D"back=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;ground-color: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Review (D=</span><br><span>ec. 15)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&amp;lt;div&amp;gt;&amp;lt;span styl=</span><br><span>e=3D3D"background-color: rgba(255, 255, 255, 0);"&amp;gt;Omnibus Situa=3D&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;tion &amp;amp;nbsp;(Dec. 14)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;sp=</span><br><span>an style=3D3D"background-color: rgba(=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;255, 255, 255, 0);"=</span><br><span>&amp;gt;FY 2016 Omnibus Talks (Dec. 10)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;s=</span><br><span>pan s=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;tyle=3D3D"background-color: rgba(255, 255, 255, 0);=</span><br><span>"&amp;gt;Customs Bill &amp;amp;nbsp;(Dec. 8=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;)&amp;lt;/span&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(255, 255, 255, 0)=</span><br><span>;"=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;a=</span><br><span>mp;nbsp;(Dec. 6) o&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"=3D=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;background-color: rgba(255, 255, 255, 0);"&amp;gt;=</span><br><span>Brown on HFT &amp;amp;nbsp;(Dec. 4)&amp;lt;/span=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;div&amp;gt;&amp;lt;span style=3D3D"background-color: rgba(=</span><br><span>255, 255, 255, 0);"&amp;gt;Shelby=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt; 2.0 Update &amp;a=</span><br><span>mp;nbsp;(Dec. 3)&amp;lt;/span&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/div&amp;gt;&amp;lt;/bl=</span><br><span>ockquote&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/blockquote&amp;=</span><br><span>gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/blockqu=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;ote&amp;gt;&amp;lt;/div&amp;g=</span><br><span>t;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/blockquote&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/di=</span><br><span>v&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div=3D&lt;/span&gt;&lt;br&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;&amp;lt;/div&amp;gt;&amp;lt;/blockquote&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;l=</span><br><span>t;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/blockquote&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;span&gt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/blockquote&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/di=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;v&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt=</span><br><span>;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt=</span><br><span>;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/blockquote&amp;gt;&amp;lt;=3D&lt;/span&gt;&lt;br&gt;&lt;span&gt;/div&amp;gt;&amp;lt;=</span><br><span>/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div&amp;gt;&amp;lt;/div=</span><br><span>&amp;gt;&amp;lt;/body&amp;gt;&amp;lt;/html&amp;gt;=3D&lt;/span&gt;&lt;br&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/body&gt;&lt;/html&gt;=</span><br><span></span><br><span>Content-Type: multipart/alternative;</span><br><span> &nbsp;&nbsp;boundary=Apple-Mail-CE47764D-6264-47B6-8F07-36388AA05BD7</span><br><span>Subject: Update -- Senate Banking Nominatio</span><br><span>&lt;html&gt;&lt;head&gt;&lt;meta http-equiv=3D"content-type" content=3D"text/html; charset=3D=</span><br><span>utf-8"&gt;&lt;/head&gt;&lt;body dir=3D"auto"&gt;&lt;div&gt;&lt;span&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;/div&gt;&lt;div dir=3D"ltr"&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;=</span><br><span>"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Mike &amp;amp; Co. -=</span><br><span>-&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;Yesterday,&amp;nb=</span><br><span>sp;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;House Ways and M=</span><br><span>eans chair Kevin Brady released a =E2=80=9Cbudget savings package designed t=</span><br><span>o cut taxes." &amp;nbsp;Brady's gambit reflects the growing buyers remorse regar=</span><br><span>ding the omnibus agreement within the Freedom Caucus. &amp;nbsp;Hard liners have=</span><br><span>objected to the spending levels set in the Obama-Boehner deal; this package=</span><br><span>is meant to buy their cooperation in the larger negotiations between partie=</span><br><span>s.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;It's one of a number of tax prop=</span><br><span>osals getting attention and generating debate on the Hill. &amp;nbsp;A review of=</span><br><span>the tax issues on the table is below.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal=</span><br><span>" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;Good weekends all. &amp;nbsp;Don't hesitate to let me know if there'=</span><br><span>s an issue you think should be covered in an upcoming update.&amp;nbsp;&lt;/span&gt;&lt;/=</span><br><span>p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;Best,&lt;/p&gt;&lt;p class=3D"Ms=</span><br><span>oNormal" style=3D"margin: 12pt 0in;"&gt;Dana&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"margin: 12pt 0in;"&gt;_______________________________&lt;/p&gt;&lt;p class=3D"MsoNormal=</span><br><span>" style=3D"margin: 12pt 0in;"&gt;&lt;u style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&lt;b&gt;&lt;br&gt;&lt;/b&gt;&lt;/u&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in=</span><br><span>;"&gt;&lt;u style=3D"background-color: rgba(255, 255, 255, 0);"&gt;&lt;b&gt;Tax Legislation=</span><br><span>in 2016&lt;/b&gt;&lt;/u&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span=</span><br><span>style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Tax reform advocates en=</span><br><span>tered 2016 with a great deal of fanfare =E2=80=93 optimistic talk of compreh=</span><br><span>ensive, bipartisan, pro-growth tax reform abounded.&amp;nbsp; What=E2=80=99s hap=</span><br><span>pened since New Year=E2=80=99s Day?&amp;nbsp; A lot of interesting proposals hav=</span><br><span>e come forward to fix critical but narrow issues, and the bold talk of compr=</span><br><span>ehensive reform has remained just that =E2=80=93 talk.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p=</span><br><blockquote type="cite"><span>&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"backgroun=</span><br></blockquote><span>d-color: rgba(255, 255, 255, 0);"&gt;Given the developments since Paul Ryan and=</span><br><span>Kevin Brady called for comprehensive tax reform =E2=80=93 Justice Scalia=E2=</span><br><span>=80=99s death, the rise of the Donald, and the stalled budget =E2=80=93 it=E2=</span><br><span>=80=99s unlikely that sweeping legislation will take form.&amp;nbsp; More likely=</span><br><span>we=E2=80=99ll see smaller bills focused on particular issues.&lt;/span&gt;&lt;/p&gt;&lt;p c=</span><br><span>lass=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-col=</span><br><span>or: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;&lt;b&gt;International&lt;/b&gt;&lt;/u&gt;&lt;/span&gt;&lt;b style=3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNorma=</span><br><span>l" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 25=</span><br><span>5, 255, 0);"&gt;President Obama, Senator Wyden, and Rep Brady, long ago hammere=</span><br><span>d home the need for international tax reform.&amp;nbsp; Their proposals include f=</span><br><span>inding a way to repatriate foreign-held profits of US-based multinationals, d=</span><br><span>ealing with corporate inversions, and setting up a new international tax cod=</span><br><span>e.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D=</span><br><span>"background-color: rgba(255, 255, 255, 0);"&gt;The key to reaching an agreement=</span><br><span>on the proposals below likely lies in determining where revenue will go aft=</span><br><span>er foreign earning are brought back to the US.&amp;nbsp; Brady has said before t=</span><br><span>hat he wouldn=E2=80=99t support a proposal in which any tax is levied on for=</span><br><span>eign earnings, while Wyden says the opposite =E2=80=93 revenue is a requirem=</span><br><span>ent.&amp;nbsp; There is so much pressure for this to happen it=E2=80=99s hard to=</span><br><span>believe they can=E2=80=99t compromise.&lt;/span&gt;&lt;span style=3D"background-colo=</span><br><span>r: rgba(255, 255, 255, 0);"&gt;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D=</span><br><span>"margin: 12pt 0in;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=</span><br><span>=80=A2 &amp;nbsp; taxing foreign earnings: &amp;nbsp;&lt;/b&gt;&lt;span style=3D"background-c=</span><br><span>olor: rgba(255, 255, 255, 0);"&gt;Competing proposals exist between parties.&amp;nb=</span><br><span>sp; President Obama=E2=80=99s FY17 budget includes a 14 percent repatriation=</span><br><span>holiday with 19 percent tax thereafter on all foreign earnings.&amp;nbsp; Brady=</span><br><span>has said he=E2=80=99d rather these earnings come home with no tax attached,=</span><br><span>so that they can be used for investment.&amp;nbsp; Sen. Wyden proposes that the=</span><br><span>income be repatriated, taxed, and the revenue be used for infrastructure de=</span><br><span>velopment.&amp;nbsp; A recent bill by Schumer and Brown (below) would tax the fo=</span><br><span>reign income of any company that moves its headquarters overseas. &amp;nbsp;&lt;/sp=</span><br><span>an&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"bac=</span><br><span>kground-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbsp;&lt;/span&gt;&lt;b style=3D"b=</span><br><span>ackground-color: rgba(255, 255, 255, 0);"&gt;preventing inversions:&lt;/b&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;&amp;nbsp; &amp;nbsp;Sen. Wyden pr=</span><br><span>oposes making the ownership minimum for a corporate inversion 50% (current l=</span><br><span>aw is 15%).&amp;nbsp; Reps Levin and Van Hollen have announced legislation to pr=</span><br><span>event =E2=80=9Cearnings stripping=E2=80=9D by reducing the tax preference fo=</span><br><span>r interest payments. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin=</span><br><span>: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;Sens.=</span><br><span>Schumer and Brown have announced they will introduce two pieces of legislat=</span><br><span>ion to tackle inversions =E2=80=93 one to impose an exit tax on companies mo=</span><br><span>ving their address overseas, and another to limit earnings stripping.&amp;nbsp; T=</span><br><span>he exit tax proposal enforces the full 35 percent tax rate on all foreign ea=</span><br><span>rnings for companies that move abroad; their earnings stripping legislation l=</span><br><span>imits the tax-deducibility of interest payments to 25 oercent, down from the=</span><br><span>current 50 percent.&lt;/span&gt;&lt;span style=3D"background-color: rgba(255, 255, 2=</span><br><span>55, 0);"&gt;&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt=</span><br><span>0in;"&gt;&lt;b style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=80=A2 &amp;nbs=</span><br><span>p;territorial system:&lt;/b&gt;&lt;span style=3D"background-color: rgba(255, 255, 255=</span><br><span>, 0);"&gt;&amp;nbsp;Brady has mentioned repeatedly that the US must adopt a territo=</span><br><span>rial system to remain competitive, whereby earnings from abroad are not taxe=</span><br><span>d in the US.&amp;nbsp; It=E2=80=99s been a perennial favorite of Republicans but=</span><br><span>likely will remain a non-starter for Democrats. &amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;&lt;u&gt;&lt;b&gt;Corporate Tax Reform&lt;/b&gt;&lt;/u&gt;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;Many issues solved in international tax reform proposa=</span><br><span>ls would affect corporate tax reform efforts =E2=80=93 often the two are con=</span><br><span>sidered indelibly linked.&amp;nbsp; Prominent policymakers agree that the corpor=</span><br><span>ate rate must be lowered, but the final size of the tax and how it is aimed d=</span><br><span>iffer.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span st=</span><br><span>yle=3D"background-color: rgba(255, 255, 255, 0);"&gt;Republican proposals gener=</span><br><span>ally have rates between 0 and 20 percent, with Democrats above those at 24 p=</span><br><span>ercent and 28 percent for Wyden and Obama respectively.&amp;nbsp; New rules on d=</span><br><span>epreciations of assets =E2=80=93 specifically replacing the Modified Acceler=</span><br><span>ated Cost Recovery Systems with something less generous =E2=80=93 are being f=</span><br><span>loated as well.&amp;nbsp; Ending the tax-deductibility of debt is a dual-purpose=</span><br><span>proposal =E2=80=93 useful for preventing inversions (see above) as well as e=</span><br><span>ncouraging businesses to fund themselves using equity rather than credit.&lt;/s=</span><br><span>pan&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"backg=</span><br><span>round-color: rgba(255, 255, 255, 0);"&gt;&lt;u&gt;Earned Income Tax Credit&lt;/u&gt;&lt;/b&gt;&lt;/p=</span><br><blockquote type="cite"><span>&lt;p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"backgroun=</span><br></blockquote><span>d-color: rgba(255, 255, 255, 0);"&gt;A favorite of both Democrats and Republica=</span><br><span>ns =E2=80=93 and notable of Paul Ryan and President Obama.&amp;nbsp; They were r=</span><br><span>umored to discuss the issue during their first meeting, this past February, a=</span><br><span>fter Ryan=E2=80=99s ascension to Speaker.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"=</span><br><span>MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba=</span><br><span>(255, 255, 255, 0);"&gt;The EITC is a part of Obama=E2=80=99s budget proposal f=</span><br><span>or this year; he suggests&amp;nbsp;to expand the&amp;nbsp;EITC&amp;nbsp;for childless wo=</span><br><span>rkers and create a $500 =E2=80=9Csecond earner=E2=80=9D tax credit. The tota=</span><br><span>l cost would be $150 billion.&amp;nbsp;Ryan has proposed something that is very s=</span><br><span>imilar. In addition to that, there have been five recent congressional propo=</span><br><span>sals (introduced by Senators Sherrod Brown and Richard Durbin, by Rep. Richa=</span><br><span>rd Neal, by Rep. Charles Rangel, by Rep. Danny Davis, and by Senators Patty M=</span><br><span>urray, Jack Reed, and Sherrod Brown) that would substantially strengthen the=</span><br><span>EITC for childless workers. All of them, including Ryan=E2=80=99s and Obama=</span><br><span>=E2=80=99s, would lower the eligibility age to 21, and all would raise the m=</span><br><span>aximum credit =E2=80=94 the Obama and Ryan proposals to about $1,000 and the=</span><br><span>other proposals to somewhat higher amounts.&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal=</span><br><span>" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255=</span><br><span>, 255, 0);"&gt;The recent focus on the issue makes it likely that something wil=</span><br><span>l be done on it soon. If Ryan and Obama can work together on this, it will b=</span><br><span>e a bipartisan light in the gridlocked darkness.&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgb=</span><br><span>a(255, 255, 255, 0);"&gt;&lt;u&gt;&lt;b&gt;Carried Interest&amp;nbsp;&lt;/b&gt;&lt;/u&gt;&lt;/span&gt;&lt;/p&gt;&lt;p clas=</span><br><span>s=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color:=</span><br><span>rgba(255, 255, 255, 0);"&gt;Senator Tammy Baldwin has released a proposal to t=</span><br><span>ax carried interest as a regular income rather than capital gains.&amp;nbsp; His=</span><br><span>torically this has been a particularly divisive issue, with lawmakers on the=</span><br><span>right refusing to entertain the idea.&amp;nbsp; However, recently Republicans h=</span><br><span>ave begun to soften on this position =E2=80=93 perhaps after seeing the popu=</span><br><span>list sentiment inspired by their presidential candidates=E2=80=99 own call t=</span><br><span>o end the loophole.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" style=3D"ma=</span><br><span>rgin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;B=</span><br><span>aldwin released her proposal in conjunction with Sander Levin, who released a=</span><br><span>version of the bill in the House as well.&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;/p&gt;&lt;p class=3D=</span><br><span>"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;b style=3D"background-color: rgba(2=</span><br><span>55, 255, 255, 0);"&gt;&lt;u&gt;The Bottom Line&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;&lt;p class=3D"MsoNormal" styl=</span><br><span>e=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255,=</span><br><span>0);"&gt;Any piece of tax reform legislation put forward which reduces revenues=</span><br><span>would have to find a way to offset its costs.&amp;nbsp; In light of the Obama-B=</span><br><span>oehner deal on spending limits for 2016 this may be a particularly important=</span><br><span>issue =E2=80=93 especially as GOP leaders try to keep their right flank in o=</span><br><span>rder as they tussle over the spending rules.&amp;nbsp; Conversely, any reform wh=</span><br><span>ich raises revenue will face strong calls from Republicans to fund tax cuts,=</span><br><span>and from Democrats to fund infrastructure or other initiatives.&lt;/span&gt;&lt;/p&gt;&lt;=</span><br><span>p class=3D"MsoNormal" style=3D"margin: 12pt 0in;"&gt;&lt;span style=3D"background-=</span><br><span>color: rgba(255, 255, 255, 0);"&gt;As the year drags on the prospects for compr=</span><br><span>ehensive reform dwindle further =E2=80=93 they were never that great to begi=</span><br><span>n with, despite enthusiasm from party leaders.&amp;nbsp; Even the more modest pr=</span><br><span>oposals laid out here may be too divisive to survive, especially in a politi=</span><br><span>cal environment like this one.&amp;nbsp; Senators can=E2=80=99t be blamed for fo=</span><br><span>cusing their efforts on Supreme Court nominees, the budget, their own party c=</span><br><span>andidates, and more.&lt;/span&gt;&lt;/p&gt;&lt;/div&gt;&lt;div&gt;&lt;span&gt;____________________________=</span><br><span>_____&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div&gt;&lt;span style=3D"color: rgb=</span><br><span>a(0, 0, 0, 0.701961); -webkit-composition-fill-color: rgba(130, 98, 83, 0.09=</span><br><span>80392); background-color: rgba(255, 255, 255, 0);"&gt;&lt;b style=3D"text-decorati=</span><br><span>on: -webkit-letterpress;"&gt;&lt;u&gt;Future/Recent Updates&lt;/u&gt;&lt;/b&gt;&lt;br&gt;&lt;br&gt;&lt;span styl=</span><br><span>e=3D"text-decoration: -webkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp; Wednesday -- SI=</span><br><span>FI Landscape&lt;/span&gt;&lt;br&gt;&lt;span style=3D"text-decoration: -webkit-letterpress;"=</span><br><blockquote type="cite"><span>=E2=80=A2 &amp;nbsp;&amp;nbsp;Thursday-- &amp;nbsp;Financial Nominations&amp;nbsp;&lt;/span&gt;&lt;b=</span><br></blockquote><span>r&gt;&lt;span style=3D"text-decoration: -webkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp;&amp;nbs=</span><br><span>p;Friday -- Update on Tax Bills&lt;/span&gt;&lt;br&gt;&lt;span style=3D"text-decoration: -w=</span><br><span>ebkit-letterpress;"&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Monday -- &amp;nbsp;Budget Irresolutio=</span><br><span>n&amp;nbsp;&lt;/span&gt;&lt;/span&gt;&lt;div style=3D"color: rgba(0, 0, 0, 0.701961); -webkit-c=</span><br><span>omposition-fill-color: rgba(130, 98, 83, 0.0980392); text-decoration: -webki=</span><br><span>t-letterpress;"&gt;&lt;span style=3D"background-color: rgba(255, 255, 255, 0);"&gt;=E2=</span><br><span>=80=A2 &amp;nbsp; Tuesday --&lt;br&gt;&lt;br&gt;&amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housin=</span><br><span>g&lt;br&gt;&amp;nbsp;&amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;br&gt;&amp;nbsp;&amp;nbsp=</span><br><span>;=E2=80=A2 &amp;nbsp;&amp;nbsp;Pension Crisis&lt;br&gt;&lt;br&gt;Tax Bills on the Hill (Mar. 11)=</span><br><span>&lt;br&gt;Senate Banking Nominations (Mar. 10)&lt;br&gt;Survey of the SIFI Landscape &amp;nb=</span><br><span>sp;(Mar. 9)&lt;br&gt;Michigan and the Meaning of Flint &amp;nbsp;(Mar. 8) Puerto Rico'=</span><br><span>s Debt Crisis &amp;nbsp;(Mar. 5)&lt;br&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4)&amp;nbsp=</span><br><span>;&lt;br&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2)&amp;nbsp;&lt;br&gt;Top Tax B=</span><br><span>ills Handicapped &amp;nbsp;(Feb. 24)&lt;br&gt;Bigger than the Budget Battle &amp;nbsp;(Feb=</span><br><span>. 23)&lt;br&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18)&amp;nbsp;&lt;br&gt;Does DFA Fai=</span><br><span>l on Too Big to Fail? (Feb. 17)&lt;br&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 1=</span><br><span>6)&amp;nbsp;&lt;br&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;br&gt;The Fed Holds Steady=</span><br><span>&amp;nbsp;(Feb. 10)&lt;br&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9)&amp;nbsp;&lt;br&gt;Tax Talk of t=</span><br><span>he Town &amp;nbsp;(Feb. 3)&lt;br&gt;Defending Dodd-Frank &amp;nbsp;(Feb.2)&lt;br&gt;&lt;br&gt;________=</span><br><span>___________&amp;nbsp;&lt;br&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;/div&gt;&lt;div&gt;&lt;span&gt;&lt;br&gt;&lt;/span&gt;&lt;/div&gt;&lt;div=</span><br><blockquote type="cite"><span>&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Federal Reserve go=</span><br></blockquote><span>vernor Lael Brainard is under fire today for making a $750 donation to the C=</span><br><span>linton campaign, with Republicans calling it proof positive that the Fed has=</span><br><span>=E2=80=9Ccozy ties=E2=80=9D with the Executive branch. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Brainard began her Fed term in 2014; preciously she was T=</span><br><span>reasury Undersecretary for International Affairs. &amp;nbsp;The former MIT Profe=</span><br><span>ssor of Applied Economics and Brookings Fellow has served in half a dozen se=</span><br><span>nior White House and Treasury positions. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;Sen. Shelby acted with alacrity: =E2=80=9CGovernor Brainard=E2=80=99s c=</span><br><span>ontributions to Hillary Clinton=E2=80=99s campaign call into question the po=</span><br><span>litical independence of the board,=E2=80=9D he said in an emailed statement f=</span><br><span>rom his press office. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Meanwhile, the same S=</span><br><span>enate Banking Committee Chair has announced he=E2=80=99s ready to hold heari=</span><br><span>ngs for some of the 16 nominations -- reviewed below -- which have languishe=</span><br><span>d under his tenure. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;_____________________=</span><br><span>_____________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Update: &amp;nbsp;Senate Banking N=</span><br><span>om Queue&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Senate Banking has the ignominious=</span><br><span>distinction of being the only Senate committee to have not acted on a singl=</span><br><span>e nominee before it in the 114th Congress. &amp;nbsp;There are currently 16 nomi=</span><br><span>nations waiting for Committee action. &amp;nbsp;These aren=E2=80=99t small time p=</span><br><span>ositions -- the logjam includes nominees to the Fed=E2=80=99s Board of Gover=</span><br><span>nors and senior Treasury, SEC, FDIC, and Ex-Im posts. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;For months, Chairman Shelby has defended his Committee=E2=80=99s=</span><br><span>inaction by citing two issues -- he was facing a live primary threat and Pr=</span><br><span>esident Obama has not yet nominated a Federal Reserve vice chair for supervi=</span><br><span>sion, a prerequisite. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Logjam Lifting at Lo=</span><br><span>ng Last?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Shelby's primary behind him, he ha=</span><br><span>s scheduled a March 15 hearing for two SEC nominees, Lisa Fairfax and Hester=</span><br><span>Peirce. &amp;nbsp;Fairfax teaches at George Washington University and Peirce is=</span><br><span>a senior research fellow at George Mason=E2=80=99s Mercatus Center. The Com=</span><br><span>mittee will not be considering either of the two Federal Reserve nominees, n=</span><br><span>or Adam Szubin, nominated for Treasury=E2=80=99s top post in terrorism and f=</span><br><span>inancial crimes.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Even if the Committee conf=</span><br><span>irms the three nominee scheduled for its next hearing, it will have hardly m=</span><br><span>ade a dent in the queue. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Nominations have c=</span><br><span>ontinued despite the dearth of hearings on them. &amp;nbsp;On March 3, President=</span><br><span>Obama nominated Brian Quintenz and Chris Brummer to the Commodities Futures=</span><br><span>Trading Commission (CFTC). &amp;nbsp;Quintenz, a Republican, works for Saeculum=</span><br><span>Capital in D.C. and Brummer, a Democrat, is a professor at Georgetown Unive=</span><br><span>rsity Law School.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Backlog at Banking&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;With 16 unfilled vacancies before it (Messrs. Qui=</span><br><span>ntenz and Brummer will make it &amp;nbsp;18), the Banking Committee has its work=</span><br><span>cut out for it. &amp;nbsp;The Chairman=E2=80=99s refusal &amp;nbsp;to consider any =</span><br><span>Fed nominee until Obama nominates a vice chair for supervision means that th=</span><br><span>ose two critical positions may remain unfilled longest. &amp;nbsp;&amp;nbsp;Key vaca=</span><br><span>ncies exist at the Export-Import Bank as well, because the board does not ha=</span><br><span>ve enough members to reach quorum it is unable to approve loans in excess of=</span><br><span>$10 million, severely hampering its impact on export promotion deals.&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;With so many nominees waiting to receive a heari=</span><br></blockquote><span>ng and the number legislative days the Senate remaining this session rapidly=</span><br><span>dwindling, it=E2=80=99s no surprise that the &amp;nbsp;Democrats on Banking hav=</span><br><span>e been pushing harder than ever for the Chairman to move forward quickly. &amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;In a letter sent to Sen. Shelby, Ranki=</span><br><span>ng Member Sherrod Brown and his colleagues wrote =E2=80=9CFor more than a ye=</span><br><span>ar, the committee has failed to carry out one of its basic duties =E2=80=A6 =</span><br><span>Failure to act impairs agencies=E2=80=99 and offices=E2=80=99 ability to ful=</span><br><span>fill all of their functions.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The p=</span><br><span>ending list includes the nominations below:&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>Federal Reserve&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Allan R. L=</span><br></blockquote><span>andon, of Utah, to be a Member of the Board of Governors of the Federal Rese=</span><br><span>rve System for the unexpired term of fourteen years from February 1, 2016 [P=</span><br><span>N 3]. (Reappointment)&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Kathr=</span><br><span>yn M. Dominguez, of Michigan, to be a Member of the Board of Governors of th=</span><br><span>e Federal Reserve System for the unexpired term of fourteen years from Febru=</span><br><span>ary 1, 2004, vice Jeremy C. Stein, resigned. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Federal Deposit Insurance Corporation&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;Jay Neal Lerner, of Illinois, to be Inspector General, Fe=</span><br><span>deral Deposit Insurance Corporation, vice Jon T. Rymer, resigned &lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Treasury Department&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>=E2=80=A2 &amp;nbsp;Adam J. Szubin, of the District of Columbia, to be Under Sec=</span><br><span>retary for Terrorism and Financial Crimes, vice David S. Cohen, resigned &amp;nb=</span><br><span>sp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Amias Moore Gerety, of C=</span><br><span>onnecticut, to be an Assistant Secretary of the Treasury, vice Cyrus Amir-Mo=</span><br><span>kri, resigned &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Securities and Exchange Comm=</span><br><span>ission&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Lisa M. Fairfax, of M=</span><br><span>aryland, to be a Member of the Securities and Exchange Commission for a term=</span><br><span>expiring June 5, 2020, vice Luis Aguilar, term expired&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Hester Maria Peirce, of Ohio, to be a Member of=</span><br><span>the Securities and Exchange Commission for a term expiring June 5, 2021. (R=</span><br><span>eappointment) &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Export-Import Bank&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;John Mark McWatters, of Texas, to be=</span><br></blockquote><span>a Member of the Board of Directors of the Export-Import Bank of the United S=</span><br><span>tates for a term expiring January 20, 2019, vice Sean Robert Mulvaney, term e=</span><br><span>xpired. ____________________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;Reeder&lt;/span&gt;&lt;br&gt;&lt;span&gt;Aw&lt;/span&gt;&lt;br&gt;&lt;span&gt;Pm&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- &amp;nbsp;Financial Reg. Nominations&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Update on Tax Bills&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;Mon -- &amp;nbsp;Budget Irresolution &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;=</span><br><span>nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Senate Banking No=</span><br><span>minations (Mar. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Survey of the SIFI Landscape &amp;nbsp;(Mar.=</span><br><span>9)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Michigan and the Meaning of Flint &amp;nbsp;(Mar. 8) Puerto R=</span><br><span>ico's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Municipal Finance Caucus &amp;n=</span><br><span>bsp;(Mar. 4) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (=</span><br><span>Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Infrast=</span><br></blockquote><span>ructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Does DFA Fail on Too=</span><br><span>Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(=</span><br><span>Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Obama's FY17 Bud=</span><br></blockquote><span>get &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb.2)&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;___________________ &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;It may feel like Michigan-morning-after but=</span><br><span>by dint of Mississippi, HRC padded her delegate lead last night. &lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;On Monday, &amp;nbsp;President Obama held a financial re=</span><br></blockquote><span>gulatory summit in the Roosevelt Room of the White House. &amp;nbsp;Joined by th=</span><br><span>e heads of the Fed, the FDIC, and the CFPB, Obama declared =E2=80=9CI want t=</span><br><span>o dispel the notion that exists both on the left and on the right that someh=</span><br><span>ow, after the crisis, nothing happened," he said. =E2=80=9CWe did not just r=</span><br><span>ebuild this, we rebuilt it better, and we=E2=80=99ve rebuilt it stronger.=E2=</span><br><span>=80=9D&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;He has a strong argument. &amp;nbsp;You c=</span><br><span>an't prove a negative and we will never know how many financial crises were a=</span><br><span>verted by Dodd-Frank. &amp;nbsp;But metrics bear out the view that Americans and=</span><br><span>the economy have less to fear today from the Systemically Significant Finan=</span><br><span>cial Institutions (SIFIs) than at any time since the turn of the millennium.=</span><br><span>&amp;nbsp;More on the regulatory circumstances of SIFIs below. &amp;nbsp;&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;b=</span><br></blockquote><span>r&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;-------------------------------------------------&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;A Survey of the SIFI Landscape&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The landscape for the eight SIFIs today -- Bank of Ameri=</span><br><span>ca, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morgan Chase, Morg=</span><br><span>an Stanley, State Street, and Wells Fargo -- is worth looking at from variou=</span><br><span>s perspectives. &amp;nbsp;Presidential candidates on both sides have made a poin=</span><br><span>t of criticizing =E2=80=9Ctoo big to fail=E2=80=9D banks, court proceedings a=</span><br><span>re challenging regulators powers', members of Congress are debating whether t=</span><br><span>o loosen Dodd-Frank Act SIFI rules, and a current Federal Reserve Bank presi=</span><br><span>dent has spoken out in favor of breaking them up. &amp;nbsp;But do SIFIs pose th=</span><br><span>e same threat they did in 2008?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Power o=</span><br><span>f DFA&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;President Obama hasn=E2=80=99t remain=</span><br><span>ed silent in the face of criticism of DFA. &amp;nbsp;After the Monday summit, Ob=</span><br><span>ama said that critics are spreading =E2=80=9Ccynicism=E2=80=9D: &amp;nbsp;=E2=80=</span><br><span>=9CIt is popular =E2=80=A6 to suggest that the crisis happened and nothing c=</span><br><span>hanged. &amp;nbsp;That is not true.=E2=80=9D &amp;nbsp;The President cited the 14 mi=</span><br><span>llion new jobs created since his inauguration, proof, he said, that sensible=</span><br><span>regulations on Wall Street don=E2=80=99t stifle business growth.&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Two major business news stories from 2015 support the=</span><br><span>President=E2=80=99s view: &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;n=</span><br><span>bsp;&amp;nbsp;General Electric continued to sell off GE Capital, its $42 billion=</span><br><span>investment arm, hoping to exit SIFI status in Q1 2016 as a result of its di=</span><br><span>vestiture. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;MetLif=</span><br><span>e has been embroiled in a legal battle with the Financial Stability Oversigh=</span><br><span>t Council (FSOC) since the regulator announced in December 2014 that the ins=</span><br><span>urance company was considered a SIFI =E2=80=93 arguments were heard in New Y=</span><br><span>ork this January. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;70 percent of DFA has be=</span><br><span>en implemented by the regulatory agencies since it was passed. &amp;nbsp;&amp;nbsp;D=</span><br><span>espite the constraints on SIFIs, they have by and large adapted well, making=</span><br><span>adjustments faster, earlier and more successfully=E2=80=9D than their overs=</span><br><span>eas counterparts. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;SIFIs=</span><br><span>now hold much more capital now than they did before the crisis =E2=80=93 to=</span><br><span>the tune of $700 billion in additional capital, twice the amount prior to i=</span><br><span>t&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;SIFIs have three times=</span><br><span>the liquidity they had before the crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=</span><br><span>=B7 &amp;nbsp;&amp;nbsp;Derivatives clearing houses force transparency on SIFI specu=</span><br><span>lation, preventing over-exposure&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nb=</span><br><span>sp;&amp;nbsp;&amp;nbsp;SIFIs now post collateral on their derivatives trades&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;SIFIs submit to rigorous s=</span><br><span>tress testing by the Federal Reserve and FDIC &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;SIFIs are being forced to draft =E2=80=9Cliving=</span><br><span>wills,=E2=80=9D which have already forced some to streamline or simplify so=</span><br><span>they can wind down without requiring a bailout&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;Congressional Update&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Congress is split=</span><br><span>between those who want to reduce regulatory pressure on big banks and those=</span><br><span>who would rather see it ramped up. &amp;nbsp;Sen. Shelby, Senate Banking Chair,=</span><br><span>introduced the Financial Regulatory Improvement Act of 2015, a grab-bag of e=</span><br><span>xceptions and exemptions from regulations, mostly for banks with between $50=</span><br><span>and $500 billion in assets. &amp;nbsp;In a similar vein, Sens Warner, Portman, a=</span><br><span>nd Collins introduced the Independent Agency Regulatory Analysis Act to requ=</span><br><span>ire that regulators undertake a cost-benefit analysis of any rules they wish=</span><br><span>to implement.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;On the flip side, Sens. McCa=</span><br><span>in and Warren=E2=80=99s 21st Century Glass-Steagall Act proposes to split co=</span><br><span>mmercial and investment banks in a bid to finally kill off the TBTF problem.=</span><br><span>&amp;nbsp;Sens. Warren and Vitter teamed up early in 2015 to introduce a packag=</span><br><span>e of amendments to the Federal Reserve Act =E2=80=93- that bill notably woul=</span><br><span>d set forward stricter regulations when an entity is considered insolvent, a=</span><br><span>nd therefore ineligible for Federal Reserve loans, as well as require that t=</span><br><span>he Fed lend money to distressed institutions at market rates.&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Regulators' Agenda &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>Under Basel III requirements for large banks to satisfy Liquidity Coverage R=</span><br><span>atios (LCR) were adopted by a number of national regulators, including the Fe=</span><br><span>deral Reserve. &amp;nbsp;While the Fed has floated a rule change allowing some m=</span><br><span>unicipal bonds to count as High Quality Liquid Assets (HQLA), that hasn=E2=80=</span><br><span>=99t stopped Rep. Luke Messer from proposing HR 2209 to force regulators all=</span><br><span>ow a greater share of munis to count as HQLA (see Update, Feb. 18).&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed is also working on implementing a rule on S=</span><br><span>ingle-Counterparty Credit Limits (SCCL), setting boundaries on credit exposu=</span><br><span>re between large banks or major counterparties. &amp;nbsp;The rule is meant to p=</span><br><span>revent banks from becoming overexposed to other financial institutions, prev=</span><br><span>enting them from taking overly large losses in the event that the counterpar=</span><br><span>ty fails. &amp;nbsp;Analysts suspect that firms are nearly $100 billion over the=</span><br><span>limits imposed by this rule, but Yellen says it is necessary to set a =E2=80=</span><br><span>=9Cbright line=E2=80=9D on credit exposure.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>SIFIs Moving Forward&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;There is no doubt tha=</span><br></blockquote><span>t the upcoming MetLife ruling will be a critical pivot point for how regulat=</span><br><span>ors interact with SIFIs. &amp;nbsp;If the FSOC is required to retract the firm=E2=</span><br><span>=80=99s SIFI status it will open the regulator up for a whole slew of challe=</span><br><span>nges from other banks and institutions. &amp;nbsp;The fate of Congressional prop=</span><br><span>osals to restrict regulator=E2=80=99s efforts, either by determining rules f=</span><br><span>or them or by burdening them with regulations of their own, should be seen a=</span><br><span>s the start of a potential sea change in the regulatory climate. &amp;nbsp;Durin=</span><br><span>g his Monday meeting, President Obama warned of this: "If there is a signifi=</span><br><span>cant challenge in terms of regulating Wall Street and regulating our financi=</span><br><span>al sector it is primarily coming from certain members of Congress who are co=</span><br><span>nsistently pressuring independent regulators to back off.=E2=80=9D&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;It is not a bad time to be a SIFI in America =E2=80=93=</span><br></blockquote><span>it=E2=80=99s certainly much better to be one now than in 2010. &amp;nbsp;While D=</span><br><span>FA has forced restructuring and streamlining to occur, events like the GE Ca=</span><br><span>pital sell-off may prove to be exceptions that prove the rule rather than th=</span><br><span>e new normal for SIFIs, especially if MetLife wins its case against regulato=</span><br><span>rs. &amp;nbsp;President Obama was right to point to Congress as the cause of reg=</span><br><span>ulatory gridlock; the political will seen after the economic collapse has la=</span><br><span>rgely evaporated, giving SIFIs far more breathing room and opening up opport=</span><br><span>unities to push through =E2=80=9Cregulatory reform=E2=80=9D measures.&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;_____________________________________&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- &amp;nbsp;Financial Reg. Nominations&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Update on Tax Bills&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=</span><br></blockquote><span>=A2 &amp;nbsp;&amp;nbsp;Mon --&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nb=</span><br><span>sp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;EU/US Deri=</span><br><span>vatives Deal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Pension Crisis&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Survey of the SIFI Landscape (Mar 8)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;Michigan and the Meaning of Flint &amp;nbsp;(Mar 8) Puerto Rico's Debt Cr=</span><br></blockquote><span>isis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4) &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2) &lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger t=</span><br></blockquote><span>han the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Infrastructure Finance=</span><br><span>Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (=</span><br><span>Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed H=</span><br></blockquote><span>olds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9=</span><br><span>) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defen=</span><br><span>ding Dodd-Frank &amp;nbsp;(Feb.2)&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;_____________=</span><br><span>______ &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Tomorrow=E2=80=99s Michigan primary election may end u=</span><br><span>p being "yugge" if it seriously opens up the possibility that Trump can put t=</span><br><span>he state in play in November -- =E2=80=9CA normal Republican cannot think of=</span><br><span>bringing in Michigan,=E2=80=9D said Trump -- nothing any other GOP presiden=</span><br><span>tial candidate could do, now, or for the past 25 years. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;Flint crystallizes so many of the issues that give rise to thi=</span><br><span>s new tectonic possibility. &amp;nbsp;There had to be a debate in Flint because t=</span><br><span>here had to be a debate about it... and the Secretary deserves far more cred=</span><br><span>it than she's getting for making sure it happened. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;In Washington, the Senate is readying to vote on a bipartisan packa=</span><br><span>ge for drinking water aid. &amp;nbsp;It=E2=80=99s not a slam dunk, however, as M=</span><br><span>ike Lee has maintained a hold on the bill, saying political grandstanding is=</span><br><span>taking the place of policy. &amp;nbsp;More on all this below. &lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>______________________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/s=</span><br></blockquote><span>pan&gt;&lt;br&gt;&lt;span&gt;Flint -- Bills and Broad Strokes&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;The Michigan legislature approved in January a $28 million appropriation=</span><br><span>to provide immediate aid to Flint. &amp;nbsp;Some critics maintain that the nee=</span><br><span>d to do so demonstrates the sorry condition of the state=E2=80=99s tax polic=</span><br><span>y. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The tax base in Flint was eroded s=</span><br><span>ignificantly during the 1980=E2=80=99s and 90=E2=80=99s as industry jobs lef=</span><br><span>t and the population fell. &amp;nbsp;To deal with the resulting fiscal imbalance=</span><br><span>the Flint city manager was instructed to cut costs =E2=80=93 he did so part=</span><br><span>ly by switching the source of Flint=E2=80=99s drinking water. The broad and d=</span><br><span>eep cuts to state and local budgets affected basic public services most prof=</span><br><span>oundly. &amp;nbsp;Now, as a direct cause of these cuts, the residents of Flint a=</span><br><span>re grappling with an issue no American ever considered possible =E2=80=93 th=</span><br><span>ey do not have access to fresh drinking water.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;For all the talk of federal aid in infrastructure financing there must b=</span><br><span>e a place made for regular tax payers. &amp;nbsp;These people bear a significant=</span><br><span>portion of direct funding for infrastructure projects both in their states a=</span><br><span>nd municipalities. &amp;nbsp;When those tax revenues are redirected, or when sta=</span><br><span>te spending is cut to the point that basic services can=E2=80=99t be provide=</span><br><span>d then taxpayers are right to question what, in fact, their taxes are paying=</span><br><span>for. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Congressional update:&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;At the insistence of Democrats, the Flint agreement=</span><br><span>has been attached to a Senate energy bill introduced by Sen. Murkowski, S. 2=</span><br><span>012, which is next in line in the Senate following the opioid addiction bill=</span><br><span>. &amp;nbsp;The energy bill will be voted on soon, providing that things moves q=</span><br><span>uickly (not a sure bet, since Dems may want to vote on certain amendments to=</span><br><span>the opioid bill). &amp;nbsp;Despite these potential hang ups, Senate leadership=</span><br><span>hopes to wrap up the energy bill by the end of the week =E2=80=93 giving th=</span><br><span>em some breathing room before the Senate adjourns for Easter recess by March=</span><br><span>21. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;While Sen. Cruz lifted his hold on th=</span><br><span>e bill last week, Mike Lee has continued to block movement on the legislatio=</span><br><span>n. &amp;nbsp;Sen. Lee is claiming that federal aid is not necessary to deal with=</span><br><span>Flint: =E2=80=9CThe state of Michigan has an enormous budget surplus this y=</span><br><span>ear and a large rainy-day fund, totaling hundreds of millions of dollars," t=</span><br><span>he Senator said in a statement.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint agree=</span><br><span>ment:&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The bill provides $250 million to ass=</span><br><span>ist the residents of Flint, Michigan and other American cities experiencing c=</span><br><span>ritical problems with their water supplies by increasing funding for Drinkin=</span><br><span>g Water Act State Revolving Funds and provide start-up funding for the new W=</span><br><span>ater Infrastructure Finance and Innovation Act. &amp;nbsp;It includes:&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;$100 mill=</span><br></blockquote><span>ion for Drinking Water State Revolving Funds (SRFs) accessible by any state w=</span><br><span>ith a drinking water emergency. &amp;nbsp;It requires states to submit plans exp=</span><br><span>laining how the money will be spent to address the emergency before funding i=</span><br><span>s provided. &amp;nbsp;&amp;nbsp;Funds that remain after 18 months will be distribute=</span><br><span>d to all states under the existing SRF formula. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;$70 million in funding to b=</span><br><span>ack secured loans made under the new Water Infrastructure Finance and Innova=</span><br><span>tion Act (WIFIA). &amp;nbsp;A federal investment of $70 million could support se=</span><br><span>cured loans of up to $4.2 billion to address water and wastewater infrastruc=</span><br><span>ture needs across the country, according to Sen. Inhofe=E2=80=99s office. &amp;n=</span><br><span>bsp;All states and all communities with clean water and drinking water infra=</span><br><span>structure needs are eligible for this assistance. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;=C2=B7 &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;$50 million for various i=</span><br><span>n authorized health programs for national use to address and prevent impacts=</span><br><span>from exposure to lead. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=9CFlint=E2=80=</span><br><span>=9D is more than Flint&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint is a crisis of=</span><br><span>governance =E2=80=93 there is a disconnect in the relationship between citi=</span><br><span>zens and government, and it bridges every demographic. &amp;nbsp;Just as the poo=</span><br><span>r drink water so do the wealthy, and when a service as basic and fundamental=</span><br><span>is undermined to the point that an entire town of nearly a hundred thousand=</span><br><span>s is poisoned by its own government, voters will express themselves, given t=</span><br><span>he chance. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Residents, customers, consumers=</span><br><span>, taxpayers =E2=80=93- citizens at the end of the day &amp;nbsp;=E2=80=93- are s=</span><br><span>eeing their government in a significantly different light and thus far are v=</span><br><span>oting differently this year accordingly. Donald Trump would not likely be ab=</span><br><span>le to put Michigan in play without this new perspective animation politics i=</span><br><span>n Michigan as much as anywhere. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;__________=</span><br><span>___________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Upcoming/Recent=</span><br><span>Updates&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Tues -- &amp;nbs=</span><br><span>p;Financial Reg. Nominations&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Wed -- &amp;n=</span><br><span>bsp;SIFIs and the Fed&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- Update o=</span><br><span>n Tax Bills&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ER=</span><br><span>I/Housing&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax Reform&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br></blockquote><span>an&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;Michigan and the Meaning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;nbs=</span><br><span>p;(Mar. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4) &lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger than the=</span><br><span>Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Infrastructure Finance Update=</span><br><span>&amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds S=</span><br><span>teady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defending D=</span><br><span>odd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (=</span><br><span>Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Regulating=</span><br><span>the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Tax/Healthcare Poli=</span><br><span>cy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Glass-Ste=</span><br></blockquote><span>agall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(=</span><br><span>Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Year-End Revi=</span><br><span>ew: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;=</span><br><span>nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 1=</span><br><span>4)&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;------&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;span&gt;The February jobs report came out this mor=</span><br><span>ning better than expected. &amp;nbsp;&amp;nbsp;Once again, the US economy maintained=</span><br><span>strong job growth without wage gains. &amp;nbsp;Wages fell 0.1 percent in Febru=</span><br><span>ary, but 242,000 positions were added to the economy, marking 72 months of u=</span><br><span>ninterrupted job gains =E2=80=93 the longest streak on record. &lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Additionally, labor participation rose by 1.5 million A=</span><br><span>mericans since November =E2=80=93 making it the highest it has been in 16 ye=</span><br><span>ars (62.9 percent of the overall share of Americans).&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;span&gt;The report from Puerto Rico is not as sunny. &amp;nbsp;The territory i=</span><br></blockquote><span>s still waiting on a Congressional bill designed to handle the ongoing debt c=</span><br><span>risis on the island. &amp;nbsp;More &amp;nbsp;below.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;______________________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;P=</span><br><span>uerto Rico=E2=80=99s Time Bomb&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Puerto R=</span><br><span>ican debt crisis has been an ongoing concern for both Congress, Wall Street a=</span><br><span>nd the Obama administration for some years now =E2=80=93 the territory=E2=80=</span><br><span>=99s bond ratings have been steadily dropping into the junk category and fel=</span><br><span>l from A- in 2005 to CCC+ last April. &amp;nbsp;At the heart of the matter is $7=</span><br><span>0 billion in bonds that Puerto Rico owes and says it cannot pay on. &lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Because Puerto Rican bonds are tax exempt in all 5=</span><br><span>0 states and the District of Columbia, making them incredibly popular invest=</span><br><span>ments for mutual funds, pensioners, and big banks. &amp;nbsp;Over 20 percent of m=</span><br><span>utual funds in the United States hold at least some Puerto Rican bonds, with=</span><br><span>$11.3 billion in portfolio, with a further $15 billion in bonds held by hed=</span><br><span>ge funds. &amp;nbsp;Now that the territory=E2=80=99s bonds are in the =E2=80=9Cj=</span><br><span>unk=E2=80=9D category, pension funds and insurance firms are unable to hold t=</span><br><span>hem any longer.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The diverse list of bond ho=</span><br><span>lders has thrown a wrench into the plans of those who would rather allow Pue=</span><br><span>rto Rico to default on its obligations =E2=80=93 something which would requi=</span><br><span>re legislative action (the territory doesn=E2=80=99t have that luxury, unlik=</span><br><span>e states). &amp;nbsp;If Puerto Rico is allowed to renege on its contractual agre=</span><br><span>ements, the argument goes, then it creates a moral hazard for other entities=</span><br><span>to do the same rather than make the tough choices necessary to honor their o=</span><br><span>bligations. &amp;nbsp;The fact that many of these bonds are essentially held by o=</span><br><span>rdinary Americans (through mutual funds and pensions) makes the argument all=</span><br><span>that stronger for many representatives. &amp;nbsp;A state hasn=E2=80=99t declar=</span><br><span>ed bankruptcy since Arkansas did so in 1933.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt;Moral hazard is inherent in a debt restructuring deal; here, the path for P=</span><br><span>uerto Rico toward capital markets after anything of the sort would still be a=</span><br><span>n especially painful one (see: Argentina). &amp;nbsp;Additionally, there are few=</span><br><span>serious proposals to grant the island full Chapter 9 status. &amp;nbsp;Most opt=</span><br><span>instead for some form of negotiated haircut agreement combined with extendi=</span><br><span>ng maturities on the bonds; these proposals are likely to succeed, consideri=</span><br><span>ng Puerto Rico is almost certainly unable to maintain its bond payment sched=</span><br><span>ule without a restructuring agreement.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Admi=</span><br><span>nistration Position&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Testifying before the H=</span><br><span>ouse Committee on Natural Resources on Feb 25, Treasury official Antonio Wei=</span><br><span>ss warned lawmakers that Puerto Rico needs =E2=80=9Can immediate solution=E2=</span><br><span>=80=9D if it=E2=80=99s to survive past May 1, when a $470 million bond payme=</span><br><span>nt is due. &amp;nbsp;Soon after that, on July 1, a $1.9 billion bond payment wil=</span><br><span>l come due as well =E2=80=93 Puerto Rican representatives have already decla=</span><br><span>red they cannot meet those payments without assistance.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;Weiss laid out the administration=E2=80=99s two-part plan: firs=</span><br><span>t the territory must be allowed to restructure its debt obligations, second a=</span><br><span>fiscal oversight board should be established to assist the island with mana=</span><br><span>ging its finances. &amp;nbsp;Importantly, Weiss stopped short of advocating for b=</span><br><span>ankruptcy protection for Puerto Rico and told the committee that =E2=80=9Can=</span><br><span>advisory board is not adequate to do the job=E2=80=9D alone. &amp;nbsp;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;House Democrats voiced concern over the financial o=</span><br><span>versight board, Rep. Luis Guti=C3=A9rrez: =E2=80=9CThey=E2=80=99re saying th=</span><br><span>at there=E2=80=99s a joint responsibility, but it seems to me that all of th=</span><br><span>e responsibility is being weighed on the people of Puerto Rico.=E2=80=9D &amp;nb=</span><br><span>sp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Meanwhile Republicans claimed that any p=</span><br><span>lan to restructure Puerto Rican debt was a non-starter; a few hours after th=</span><br><span>e hearing the Republican Study Committee announced it would oppose any plan i=</span><br><span>ncluding such a provision. &amp;nbsp;"Changing the rules mid-game would be unfai=</span><br><span>r to Puerto Rico=E2=80=99s creditors who entered into these arrangements wit=</span><br><span>h agreed upon terms and would delegitimize future transactions," said RSC Ch=</span><br><span>airman Bill Flores.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Policy Options&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Until recently the two parties have maintained star=</span><br><span>kly contrasting views on how to best deal with Puerto Rico=E2=80=99s debt cr=</span><br><span>isis =E2=80=93 Democrats have pushed for a forced debt restructuring, with s=</span><br><span>ome calling for the island to be granted Chapter 9 bankruptcy protections, m=</span><br><span>eanwhile Republicans called for a financial oversight council to make the to=</span><br><span>ugh fiscal decisions necessary for Puerto Rico to maintain its debt obligati=</span><br><span>ons without reneging on its agreements.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The=</span><br><span>administration, through Weiss, has advocated a middle of the road approach.=</span><br><span>By adopting both proposals and avoiding the further edges of each (no bankr=</span><br><span>uptcy, and no unaccountable board staffed by Wall Streeters), the administra=</span><br><span>tion hopes to find compromise between each group. &amp;nbsp;And it seems like it=</span><br><span>might work.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Finding Compromise&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Recently, however, the conservative stance against deb=</span><br><span>t restructuring has lessened =E2=80=93 with some Republicans saying that the=</span><br><span>y could support a PR bill as long as it doesn=E2=80=99t include Chapter 9 ba=</span><br><span>nkruptcy. &amp;nbsp;House Natural Resources chair Bob Bishop has been working on=</span><br><span>a bill for Puerto Rico that does include some element of debt restructuring=</span><br><span>, and recently said =E2=80=9C=E2=80=9CI=E2=80=99m sure RSC will be satisfied=</span><br><span>with what we do =E2=80=A6 to say that some element of [debt restructuring] c=</span><br><span>ould be in there, yeah.=E2=80=9D &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;=</span><br><span>nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The House is still sticking to its end of March d=</span><br><span>eadline set by Speaker Ryan for putting forward a final bill on Puerto Rico o=</span><br><span>n the floor for a vote. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;__________________=</span><br><span>___________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Upcoming/Recent Updates=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- Municipal Fi=</span><br><span>nance Caucus&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Puerto Rico&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Mon -- FY17&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;=</span><br><span>&amp;nbsp;Tues -- 13 D Regs&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Wed -- &amp;nbsp;T=</span><br><span>BD&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;SBC Nominat=</span><br><span>ions&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;spa=</span><br><span>n&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax Reform&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=</span><br><span>=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbs=</span><br><span>p;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Michigan and the Mea=</span><br><span>ning of Flint (Mar 8) Puerto Rico's Debt Crisis &amp;nbsp;(Mar. 5)&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Municipal Finance Caucus &amp;nbsp;(Mar. 4) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint Bill: &amp;nbs=</span><br><span>p;Provisions &amp;amp; Prospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Top Tax Bills Handica=</span><br><span>pped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger than the Budget Battle &amp;nbsp;(Fe=</span><br><span>b. 23)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Below t=</span><br><span>he Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;span&gt;International Tax Sta=</span><br><span>tus &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax Talk of=</span><br><span>the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Debate Myths C=</span><br></blockquote><span>hallenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(J=</span><br><span>an. 21)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Agenda o=</span><br><span>n the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan=</span><br><span>. 13)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;span&gt;=</span><br><span>Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Fin Reg Pr=</span><br><span>oposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1=</span><br><span>) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec=</span><br><span>. 15)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;span&gt;FY 2=</span><br><span>016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Brown o=</span><br><span>n HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Mike &amp;a=</span><br><span>mp; Co. --&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;In half an hour, the BLS jobs re=</span><br><span>port for February is due to be released. &amp;nbsp;If you'd like an update or ha=</span><br><span>ve any questions, please let me know. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Mean=</span><br><span>while, amid the most fractious campaign in recent history comes an initiativ=</span><br><span>e in Congress that sounds, well, incongruous with the cacophany. &amp;nbsp;A bro=</span><br><span>ad and bipartisan group of House members is behind the official launch of a c=</span><br><span>aucus this week dedicated to protecting and expanding the tax exemption enjo=</span><br><span>yed by municipal debt. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;You have to start s=</span><br><span>omewhere and why not with incentives to address the nation's long-neglected i=</span><br><span>nfrastructure with tax breaks -- about the only kind of stimulus and jobs me=</span><br><span>asure that can garner bipartisan support? &amp;nbsp;&amp;nbsp;More on the new Munici=</span><br><span>pal Finance Caucus below. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Best,&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;_________=</span><br><span>____________________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;A New Caucus&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;On Tuesday, Reps. Randy Hultgren and Dutch Ruppersberger anno=</span><br><span>unced that they have formed the Municipal Finance Caucus to protect the tax-=</span><br><span>exempt status of municipal debt and reexamine the way it is treated in finan=</span><br><span>cial regulations. &amp;nbsp;In 2015, Hultgren and Ruppersberger sent a letter (r=</span><br><span>eprinted below) to House leadership opposing the President=E2=80=99s propose=</span><br><span>d 28 percent cap on tax deductions for municipal bonds, signed by over 120 o=</span><br><span>f their colleagues. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Their announceme=</span><br><span>nt coincided with the National Association of State Treasurers=E2=80=99 legi=</span><br><span>slative conference in D.C. The same group drafted another letter, signed by m=</span><br><span>ore than 600 state and local officials, which urges the leaders of the House=</span><br><span>Ways and Means Committee and the Senate Finance Committee to reject curbs t=</span><br><span>o the muni exemption. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Who=E2=80=99s in it?=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Right now just the founding representative=</span><br><span>s have declared their official membership, but it=E2=80=99s foreseeable that=</span><br><span>some of the 120 representatives that signed the letter to House leadership i=</span><br><span>n 2015 will join as well. &amp;nbsp;It=E2=80=99s also seen a s likely that some S=</span><br><span>enators will want to join the caucus, but the founders haven't made clear if=</span><br><span>bicameral membership is a priority.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Is it B=</span><br><span>ipartisan?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Since 2013 Hultgren and Ruppersb=</span><br><span>erger have led bipartisan efforts to draft letters of support for municipal b=</span><br><span>onds. &amp;nbsp;The signatories to these letters include members from both sides=</span><br><span>of the aisle. &amp;nbsp;Rep. Ruppersberger focuses mostly on local government a=</span><br><span>nd is pretty moderate. Rep. Hultgren is a more orthodox conservative Republi=</span><br><span>can. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;What=E2=80=99s the Purpose?&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Caucus plans to defend municipal bonds=E2=80=99 t=</span><br></blockquote><span>ax exempt status and advocate for regulatory changes which favor those bonds=</span><br><span>. &amp;nbsp;Proposals to limit the tax-exempt status of these bonds have been fl=</span><br><span>oated in recent years. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;In addition to call=</span><br><span>ing for the bonds to maintain their tax preferred status, the Caucus will pu=</span><br><span>sh for the passage of HR 2209, legislation considering municipal bonds as a H=</span><br><span>igh Quality Liquid Asset (HQLA) =E2=80=93 a particularly contentious issue b=</span><br><span>ecause of the disagreement over how flexible these liquidity rules should be=</span><br><span>from a systemic risk perspective. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Positio=</span><br><span>ns Taken to Date&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Caucus founders have o=</span><br><span>pposed Obama=E2=80=99s 2015 proposal to cap municipal bond tax exemption at 2=</span><br><span>8 percent. Rep. Hultgren is also a co-sponsor of HR 2209 =E2=80=93 the bill t=</span><br><span>o set the liquidity for municipal bond assets at Level 2A (see Update, Feb. 1=</span><br><span>8). &amp;nbsp;Hultgren said the liquidity rules are an example of how regulators=</span><br><span>misunderstand municipal bonds, specifically the frequent serial structure o=</span><br><span>f the their issuances.&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Many investors flock=</span><br><span>to municipal bonds for security. But some federal regulators trying to shor=</span><br><span>e up the banking system aren't convinced the bonds would be easy to sell in a=</span><br><span>crisis. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Division of Opinion&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Division of opinion on HR 2099 falls along unusual lines=</span><br><span>, with Wall Street, Congress and municipal officials challenging bank regula=</span><br><span>tors' skepticism toward municipal debt. &amp;nbsp;&amp;nbsp;At issue are new rules a=</span><br><span>imed at ensuring banks can raise enough cash during a financial-market meltd=</span><br><span>own to fund their operations for 30 days. The requirements mean banks have t=</span><br><span>o hold more cash or securities that are easily sellable. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;span&gt;Regulators don't think it is the place of Congress to second g=</span><br><span>uess how they size up securities. Fed Chairwoman Janet Yellen, at a congress=</span><br><span>ional hearing Feb. 11, said legislation would "interfere with our supervisor=</span><br><span>y judgments." &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Big banks such as Citigroup I=</span><br><span>nc. and Wells Fargo &amp;amp; Co. have sprung into action in lobbying Congress, a=</span><br><span>long with municipal leaders who fret the rules will diminish bank bond-buyin=</span><br><span>g which could raise borrowing costs on infrastructure projects.&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Hultgren also said the caucus will work to update the n=</span><br><span>umber of projects that could be financed by qualified small issue manufactur=</span><br><span>ing bonds, a type of private-activity bond whose proceeds can be used to fin=</span><br><span>ance manufacturing facilities for small- and mid-sized manufacturers. The ta=</span><br><span>x code provisions on small industrial development bonds have not been change=</span><br><span>d since the 1980s, he said. Hultgren sponsored a bill last year entitled =E2=</span><br><span>=80=9CThe Modernizing American Manufacturing Bonds Act,=E2=80=9D which was f=</span><br><span>ocused on expanding opportunities for qualified small issue manufacturing bo=</span><br><span>nds, particularly by changing the national volume cap set by Congress. &lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;What can be achieved?&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;span&gt;Caucuses such as this one don't have the best reputation when it com=</span><br><span>es to getting things done. &amp;nbsp;But rules relating to the liquidity value o=</span><br><span>f capital is one of the few policy &amp;nbsp;areas of any kind where there is bi=</span><br><span>partisan agreement. &amp;nbsp;Municipal bonds, in particular, have a universal a=</span><br><span>ppeal because of their direct link to local and state infrastructure project=</span><br><span>s. &amp;nbsp;At the very least, the caucus will spark some discussion about the b=</span><br><span>est way to both reform existing methods for funding infrastructure investmen=</span><br><span>t and find new ways to fund it. &lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;__________=</span><br><span>_______________________&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Recent/Planned Upda=</span><br><span>tes&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- Municipa=</span><br><span>l Finance Caucus&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Puerto Rico&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Mon -- FY17&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;n=</span><br><span>bsp;&amp;nbsp;Tues -- 13 D Regs&lt;/span&gt;&lt;br&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Wed -- &amp;nb=</span><br><span>sp;TBD&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;SBC Nom=</span><br><span>inations&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax Reform&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;EU/US Derivatives Deal&lt;/span&gt;&lt;br&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;=</span><br><span>nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;span&gt;Municipal Finance=</span><br><span>Caucus &amp;nbsp;(Mar. 4) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Flint Bill: &amp;nbsp;Provisions &amp;amp; P=</span><br><span>rospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Bigger than the Budget Battle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;sp=</span><br><span>an&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Does DFA Fa=</span><br><span>il on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Below the Radar/Customs Bil=</span><br><span>l &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Obama's=</span><br><span>FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb=</span><br><span>. 3)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Fis=</span><br><span>cal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span&gt;The Fed Holds Rates=</span><br><span>, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan=</span><br><span>. 25)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;s=</span><br><span>pan&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;span&gt;HRC's Tax P=</span><br><span>olicy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan=</span><br><span>. 16)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;span=</span><br><blockquote type="cite"><span>2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders Proposals/GS &amp;=</span><br></blockquote><span>amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Revi=</span><br><span>ew: Fin. Reg. &amp;nbsp;(Dec. 29&lt;/span&gt;&lt;br&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;On Mar 2, 2016, at 9:39 PM, Dana &amp;lt;&lt;a href=3D"mailto:danachasi=</span><br><span><a href="mailto:[email-masked]">[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;I hope everyone=</span><br><span>'s had a chance to reflect on the magnitude of yesterday's hard fought prima=</span><br><span>ry wins -- with gratitude to those who toiled in the field. &lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;On Saturday night, the campaign debate turns to Flint, Mi=</span><br><span>chigan -- to the town and the issues it has come to symbolize. &amp;nbsp;&amp;nbsp;T=</span><br><span>he town's water contamination and related problems finally move center stage=</span><br><span>. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Congress has moved with uncommon alacr=</span><br><span>ity and bipartisanship in recent weeks on legislation to direct funding to a=</span><br><span>ddress the water issue in Flint and elsewhere. &amp;nbsp;&amp;nbsp;Here, we look at t=</span><br><span>he bill's provisions, its funding steam, and its prospects. &amp;nbsp;&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;The Flint Bill -- Provisions &amp;amp; Prospects&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A bipartisan deal has=</span><br><span>been reached in the Senate last week to aid the beleaguered city of Flint, M=</span><br><span>ichigan as it tries to remedy its drinking water issues. &amp;nbsp;Sen. Inhofe, t=</span><br><span>he lead GOP Senator on the bill, called it =E2=80=9Ccommon-sense," and noted=</span><br><span>that the spending is already programmed and involves no supplemental approp=</span><br><span>riation. &amp;nbsp;&amp;nbsp;The bill may be ready to move forward after Sen. Cruz l=</span><br><span>ifted a hold he had placed on the bill last week. &amp;nbsp;Sen. Mike Lee is sti=</span><br><span>ll a hold-out. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The b=</span><br><span>ill provides $250 million to assist the residents of Flint, Michigan and oth=</span><br><span>er American cities experiencing critical problems with their water supplies b=</span><br><span>y increasing funding for Drinking Water Act State Revolving Funds and provid=</span><br><span>e start-up funding for the new Water Infrastructure Finance and Innovation A=</span><br><span>ct. &amp;nbsp;It also provides:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;$100 million for Drinking Water State Revolving=</span><br></blockquote><span>Funds (SRFs) accessible by any state with a drinking water emergency. &amp;nbsp=</span><br><span>;It requires states to submit plans explaining how the money will be spent t=</span><br><span>o address the emergency before funding is provided. &amp;nbsp;&amp;nbsp;Funds that r=</span><br><span>emain after 18 months will be distributed to all states under the existing S=</span><br><span>RF formula. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2=</span><br><span>&amp;nbsp;&amp;nbsp;$70 million in funding to back secured loans made under the new=</span><br><span>Water Infrastructure Finance and Innovation Act (WIFIA). &amp;nbsp;A federal in=</span><br><span>vestment of $70 million could support secured loans of up to $4.2 billion to=</span><br><span>address water and wastewater infrastructure needs across the country, accor=</span><br><span>ding to Sen. Inhofe=E2=80=99s office. &amp;nbsp;All states and all communities w=</span><br><span>ith clean water and drinking water infrastructure needs are eligible for thi=</span><br><span>s assistance. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;&amp;nbsp;$50 million for various in authorized health programs for na=</span><br><span>tional use to address and prevent impacts from exposure to lead. &lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Where will the money come from?=</span><br><span>&amp;nbsp;&amp;nbsp;The package has been fully paid for -- it redirects appropriati=</span><br><span>ons by taking funds from the Advanced Technology Vehicles Manufacturing (ATV=</span><br><span>M) Fund, which offers loans for auto companies. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Does that matter? &amp;nbsp;&amp;nbsp;Per Sen. Inhofe =E2=</span><br><span>=80=9C[the ATVM is] a failed program that hasn=E2=80=99t been used in more t=</span><br><span>han a year and has only issued five loans since 2008."&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;More on ATVM: The ATVM program is authoriz=</span><br><span>ed to award up to $25 billion in loans; there is no deadline for completing s=</span><br><span>uch loan commitments. Congress funded the program in 2009, when it appropria=</span><br><span>ted $7.5 billion to cover the subsidy cost for the $25 billion in loans, as w=</span><br><span>ell as $10 million for program implementation. Since the start of the progra=</span><br><span>m, DOE has awarded $8.4 billion in loans to five companies. As of January 20=</span><br><span>15, ATVM has $16.6 billion in remaining loan authority. No new loans have be=</span><br><span>en made since 2011. Two companies =E2=80=94 Fisker and the Vehicle Productio=</span><br><span>n Group =E2=80=94 were unable to make payments on their loans, and DOE aucti=</span><br><span>oned the loans off in the fall of 2013. Tesla paid off all of its loan in 20=</span><br><span>13, nine years ahead of schedule. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Criticisms of ATVM: The unobligated funds remaining for the pro=</span><br><span>gram have been a point of contention in recent appropriations debates. The H=</span><br><span>ouse has voted several times to transfer some of the unused appropriation fo=</span><br><span>r the ATVM subsidy costs to other purposes. None of these transfers were ena=</span><br><span>cted. Other legislators have sought to expand the program. Two recent federa=</span><br><span>l reports call for rescinding the program=E2=80=99s unobligated balance: the=</span><br><span>FY2015 budget resolution reported by the House Budget Committee calls for o=</span><br><span>utright rescission, and an April 2014 GAO report recommends Congress conside=</span><br><span>r taking the same step unless DOE can generate new demand for the program.&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Legislative Strategy: &amp;=</span><br><span>nbsp;&amp;nbsp;Architects of the bipartisan deal put out a hotline request to se=</span><br><span>e if anyone would object to a series of procedural moves that would split Fl=</span><br><span>int aid off the energy bill (S. 2012), attach it to a House bill (H.R. 4470)=</span><br><span>sponsored by Reps. Dan Kildee and Fred Upton, allow voice votes on 30 amend=</span><br><span>ments to the energy bill, and allow roll call votes on eight additional amen=</span><br><span>dments. Michigan Sens. Debbie Stabenow and Gary Peters said Democrats are on=</span><br><span>board, but in order to achieve unanimous consent, Republicans need to sign o=</span><br><span>n. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Will it pass? &amp;nb=</span><br><span>sp;The Flint package and the energy bill amendments would come to a vote onl=</span><br><span>y after the Senate gets unanimous consent to some procedural maneuvers. Lee'=</span><br><span>s hold went unnoticed earlier when GOP presidential candidate Sen. Ted Cruz h=</span><br><span>ad a hold of his own, which he has now lifted. The Senate had hoped to hold v=</span><br><span>otes on Flint and end debate on the energy bill as early as next week. &amp;nbsp=</span><br><span>;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nb=</span><br><span>sp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;=</span><br><span>nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp=</span><br><span>;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;What=E2=80=99s Next? &amp;nbsp;&amp;nbsp;Sen. Stabenow,=</span><br><span>a key leader on the bill, predicted that =E2=80=9Cone way or another=E2=80=9D=</span><br><span>the package would be voted on in the Senate this week. &amp;nbsp;And while the H=</span><br><span>ouse hasn't decided what it will do if the Flint bill clears the Senate, Ene=</span><br><span>rgy and Commerce Committee Chairman Fred Upton said it would move quickly.&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Obama administration, which declared Fl=</span><br><span>int a federal emergency in January freeing up much-needed funds for the dist=</span><br><span>ressed city, has not issued an official stance on the Flint deal. &amp;nbsp;Earl=</span><br><span>y in the year the President also made available to the state of Michigan $80=</span><br><span>million from a revolving fund for infrastructure repair and improvement. &amp;n=</span><br><span>bsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A number of important events are sch=</span><br><span>eduled for the month of March, listed below.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt; =E2=80=A2 &amp;nbsp;&amp;nbsp;March 3 -- Flint is supposed to begin its lead se=</span><br><span>rvice line replacement project.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; =E2=80=A2=</span><br><span>&amp;nbsp;&amp;nbsp;March 6 -- The 7th Democratic debate will take place in the cit=</span><br><span>y of Flint, MI. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; =E2=80=A2 &amp;nbsp;M=</span><br><span>arch 15 -- &amp;nbsp;House Committee on Oversight and Government Reform will hol=</span><br><span>d its next hearing on the Flint crisis. &amp;nbsp;On schedule is testimony on th=</span><br><span>e Safe Drinking Water Act (SDWA) by various policy professionals.&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt; =E2=80=A2 &amp;nbsp;&amp;nbsp;March 17 -- &amp;nbsp;Hearings r=</span><br><span>esume on SDWA oversight, with Michigan Governor Rick Snyder and EPA Administ=</span><br><span>rator Gina McCarthy scheduled to testify.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br></blockquote><span>pan&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;=</span><br><span>&amp;nbsp;Wed -- Flint &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;&amp;nbsp;Thurs -- Municipal Finance Caucus&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Fri -- Puerto Rico&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Budget Irresolu=</span><br><span>tion&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2=</span><br><span>&amp;nbsp;13 D Regs&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nb=</span><br><span>sp;=E2=80=A2 &amp;nbsp;&amp;nbsp;ERI/Housing&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;Intl Tax Reform&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbsp;=E2=80=A2 &amp;nbsp;&amp;nbsp;EU/US D=</span><br><span>erivatives Deal&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt; &amp;nbs=</span><br><span>p;=E2=80=A2 &amp;nbsp;&amp;nbsp;Pension Crisis&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fl=</span><br><span>int Bill: &amp;nbsp;Provisions &amp;amp; Prospects (Mar. 2) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Bigger than the Budget B=</span><br><span>attle &amp;nbsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br></blockquote><span>kquote type=3D"cite"&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below the Radar/Customs Bi=</span><br></blockquote><span>ll &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;I=</span><br><span>nternational Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp=</span><br></blockquote><span>;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending D=</span><br><span>odd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;=</span><br><span>nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regula=</span><br><span>ting the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hil=</span><br></blockquote><span>l &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Gla=</span><br><span>ss-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals=</span><br></blockquote><span>&amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-=</span><br><span>End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(D=</span><br><span>ec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;=</span><br><span>nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown o=</span><br><span>n HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. &lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;This has been a busy week in Wash=</span><br><span>ington especially on the tax front, with more to follow. &amp;nbsp;We've already=</span><br><span>seen a number of hearings and developments on the most salient current tax b=</span><br><span>ills and related proposals in the last two days, which are &amp;nbsp;itemized an=</span><br><span>d vetted for viability below.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tomorrow, a=</span><br><span>n assessment of which of these, as well as "must-pass" tax items such as the=</span><br><span>expiring extenders, will make it to Obama's desk by year-end and a review o=</span><br><span>f Brookings' panel discussion, "Tax policy in 2016: What's new and what's ne=</span><br><span>xt," with Ways and Means Chair Kevin Brady and Senate Finance ranking member=</span><br><span>Ron Wyden. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;_______________________=</span><br><span>_______________&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 International T=</span><br><span>ax Reform --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Probably the most likely tax=</span><br><span>legislation to pass in 2016, even though it's still called unlikely by key p=</span><br><span>olicymakers. &amp;nbsp;The two parties will have difficulty coming to an agreeme=</span><br><span>nt on first what to do and then how to do it. &amp;nbsp;Narrower legislation is m=</span><br><span>ore likely to succeed than comprehensive reform. &amp;nbsp;Most viable bills in t=</span><br><span>his area:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Earnings Stripp=</span><br><span>ing -- &amp;nbsp;On the eve of today=E2=80=99s Ways and Means hearing regarding i=</span><br><span>nternational tax reform, &amp;nbsp;ranking member Chris Van Hollen and senior me=</span><br><span>mber Sander Levin offered bills to constrain the practice whereby foreign pa=</span><br><span>rent companies extend large loans to their newly acquired U.S. partners and t=</span><br><span>ake advantage of the tax-deductible status of interest payment arrangement. &amp;=</span><br><span>nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2. Exit Tax Bills -- &amp;nbsp;=</span><br><span>Bills seeking to reduce corporate inversions by making them too expensive to=</span><br><span>make business sense are likely to be introduced before next recess. &lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Repatriation -- &amp;nbsp;Ryan and S=</span><br><span>chumer have talked up the idea of introducing legislation to repatriate U.S.=</span><br><span>multinational profits that are held abroad. &amp;nbsp;A compromise will have to=</span><br><span>be struck between Democrats seeking reduced tax levels for this purpose and=</span><br><span>Republicans who cite moral hazard. &amp;nbsp;The Obama budget for FY2017 includ=</span><br><span>es a proposal to allow overseas profits to come home at a special 14 percent=</span><br><span>trate, and all overseas profits thereafter be taxed at 19 percent. &lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Broader Corporate Tax Reform &amp;nb=</span><br><span>sp;-- &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Any successful across t=</span><br><span>he board corporate tax reform would almost have to lower the nominal corpora=</span><br><span>te tax rate of 35 percent. &amp;nbsp;-- the highest in the world. &amp;nbsp;Republic=</span><br><span>ans are adamant that the high rate yields corporate inversions. &amp;nbsp;Ways a=</span><br><span>nd Means chair Brady has pointed to the corporate rate repeatedly as a sign t=</span><br><span>hat the U.S. has a =E2=80=9Cbroken tax code that discourages investment and g=</span><br><span>rowth.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brady has not yet releas=</span><br><span>ed his own reform bill, but an op-ed of his published this morning gives an i=</span><br><span>ndication of what it will include: &amp;nbsp;=E2=80=9CWe must address the real r=</span><br><span>oot of the problem =E2=80=93 our broken tax code that discourages investment=</span><br><span>and growth =E2=80=A6 Our sky-high 35 percent corporate tax rate bears much o=</span><br><span>f the blame =E2=80=A6 We cannot allow American taxpayers to foot the bill fo=</span><br><span>r tax revenue grabs in Europe and elsewhere.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;span&gt;Provisions to look for: a lower overall corporate tax rate, lan=</span><br><span>guage to address European investigations on U.S. businesses dodging taxes ab=</span><br><span>road. &amp;nbsp;The bill likely won=E2=80=99t include language restricting inver=</span><br><span>sions. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Senate =</span><br><span>Finance chair Hatch has suggested writing legislation to make dividends tax d=</span><br><span>eductible for corporations, eliminating the so-called =E2=80=9Cdouble taxati=</span><br><span>on=E2=80=9D of hitting corporate earnings as well as dividend incomes from i=</span><br><span>nvestors. &amp;nbsp;The proposal faces long odds. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbs=</span><br><span>p;Earned-Income Tax Credit (EITC) -- &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;One=</span><br><span>tax provisions in the Obama FY17 budget that has been muted if not mooted t=</span><br><span>his week is his proposal to expand the EITC for childless workers and create=</span><br><span>a $500 =E2=80=9Csecond earner=E2=80=9D tax credit. &amp;nbsp;The cost would be $=</span><br><span>150 billion over ten years. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;During his S=</span><br><span>OTU, Obama expressed his desire to work with Speaker Ryan on the issue: &amp;nbs=</span><br><span>p;=E2=80=9CI also know Speaker Ryan has talked about his interest in tacklin=</span><br><span>g poverty. America is about giving everybody willing to work a chance, a han=</span><br><span>d up. And I=E2=80=99d welcome a serious discussion about strategies we can a=</span><br><span>ll support, like expanding tax cuts for low-income workers who don't have ch=</span><br><span>ildren.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The credit is a long-sta=</span><br><span>nding darling of both progressives and the GOP establishment. Ryan and Presi=</span><br><span>dent Obama support extending it to childless workers. &amp;nbsp;But they face re=</span><br><span>sistance from not just the hard right but from Sen. Hatch, who say it=E2=80=99=</span><br><span>s not =E2=80=9Cnecessary=E2=80=9D to expand the break. &lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivati=</span><br><span>ves Agreement w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=</span><br><span>=80=A2 &amp;nbsp;Budget (Ir)Resolution&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Top Tax Bills Handicapped &amp;nbsp;(Feb. 24)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Bigger than the Budget Battle &amp;n=</span><br><span>bsp;(Feb. 23)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Infrast=</span><br><span>ructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp=</span><br><span>;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Internati=</span><br><span>onal Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Fran=</span><br><span>k &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fisc=</span><br><span>al Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Ja=</span><br><span>n. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the=</span><br><span>Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br></blockquote><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbs=</span><br><span>p;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Ste=</span><br><span>agall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nb=</span><br></blockquote><span>sp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End R=</span><br><span>eview: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 2=</span><br><span>9) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;=</span><br><span>(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT=</span><br><span>&amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelb=</span><br><span>y 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----&lt;/span&gt;&lt;b=</span><br></blockquote><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Mike and Co. --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;The soap opera that is the federal budget making process saw sone minor pr=</span><br><span>ima donna pratfalls this week. &amp;nbsp;Nothing remotely on the scale of blocki=</span><br><span>ng the confirmation of a Supreme Justice. &amp;nbsp;But as Senate Budget's ranki=</span><br><span>ng member Sen. Cardin warned at a breakfast today, you can forget regular or=</span><br><span>der on the budget -- after the President submits a nomination, all comity in=</span><br><span>the Senate will be gone until Election Day. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Details and the latest below. &amp;nbsp;Taxes tomorrow (be still your heart=</span><br><span>, right?). &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Dana &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Story in the Senate&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;At the same DSCC &amp;nbsp;breakfast one month a=</span><br><span>go, Sen. Merkley announced that, to his surprise, Senate Budget Chair Mike E=</span><br><span>nzi was going to put out a manager's mark for an FY17 budget resolution for C=</span><br><span>ommittee markup, for February. &amp;nbsp;Today, Enzi withdrew his markup plans, w=</span><br><span>ithout announcing a reschedule date.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;To a=</span><br><span>dd to the growing problems within the GOP, the party, led by Senator Mitch M=</span><br><span>cConnell, has declared all-out war on Obama=E2=80=99s impending Supreme Cour=</span><br><span>t nomination -- an "nomination abomination" -- making it even more difficult=</span><br><span>to predict how these budget deliberations will end. &lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;span&gt;Histrionics of the House &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Ev=</span><br><span>en before Obama released his FY2017 budget proposal earlier this month, Hous=</span><br><span>e Republicans made it a point to emphasize that it was DOA. &amp;nbsp;Now, GOP i=</span><br><span>s running into some dead ends of its own. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Speaker Ryan announced early on that he intended to pass the budget throug=</span><br><span>h regular order this year -- a process that hasn=E2=80=99t been successfully=</span><br><span>completed in a generation. &amp;nbsp;Due to internal dicisions and outside pres=</span><br><span>sures, House Republicans have changed their tune. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;Yesterday, House Budget announced plans for a proposal next m=</span><br><span>onth to stick with the spending levels set by last fall=E2=80=99s deal with t=</span><br><span>he White House while also giving members the chance to vote on other bills t=</span><br><span>hat would slash government spending. The compromise is meant to appease hard=</span><br><span>-right GOP members who vehemently opposed the Obama-Boehner budget agreement=</span><br><span>. &amp;nbsp;Per Ryan's office: =E2=80=9CThis proposal enjoys the overwhelming su=</span><br><span>pport of the committee members, and the chairman looks forward to sharing it=</span><br><span>with the broader Conference as we continue moving this process forward.=E2=80=</span><br><span>=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The conservative Freedom Caucus so fa=</span><br><span>r has supported Speaker Ryan=E2=80=99s overtures for cooperation on the budg=</span><br><span>et. &amp;nbsp;But the GOP's hard-right wing may not remain so understanding of t=</span><br><span>he Speaker=E2=80=99s position, especially if their credentials are called in=</span><br><span>to question by outside groups with sway over their base of support. &amp;nbsp;&amp;n=</span><br><span>bsp;Heritage Action said Monday that the group would oppose any budget bluep=</span><br><span>rint that sticks to the Obama-Boehner deal, which increases spending by abou=</span><br><span>t $30 billion.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Going Forward &lt;/span&gt;&lt;br&gt;&lt;=</span><br></blockquote><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;It won't be an easy road ahead on the budget. &amp;nbsp;=</span><br><span>&amp;nbsp;The conservative caucus has several dozen members, which gives it the p=</span><br><span>ower to torpedo any budget proposal that lacks at least some Democratic supp=</span><br><span>ort. &amp;nbsp;If it decides to back the new proposal put forth by Chair Tom Pri=</span><br><span>ce of House Budget, it would be likely for GOP leaders to be able to move fo=</span><br><span>rward. &amp;nbsp;Some members have voiced their willingness to cooperate, but th=</span><br><span>e pull of outside right-wing groups may prove to be too strong.&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Meanwhile, Minority Whip Steny Hoyer said today that a=</span><br><span>ny Republican budget strategy that strays from the Obama-Boehner deal would b=</span><br><span>e opposed by House Democrats. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The House B=</span><br><span>udget plan is to submit the proposal honoring the spending limits agreed to l=</span><br><span>ast year, while allowing the hard-right GOP wing to vote on other bills whic=</span><br><span>h would slash spending, mollifying the more hawkish members. &amp;nbsp;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Dearth of Legislative Days&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;span&gt;Lengthening the odds against Ryan, the House Budget is now work=</span><br><span>ing on a delayed schedule. &amp;nbsp;In mid-January, the House Budget Committee a=</span><br><span>nnounced that it would be releasing its markup of the White House budget pro=</span><br><span>posal early -=E2=80=93 on February 25. However, that has also changed. Yeste=</span><br><span>rday, The Committee announced that it was now delaying its markup till somet=</span><br><span>ime in March. &amp;nbsp;The change is curious for a few reasons. &amp;nbsp;It raises=</span><br><span>the question of why the House Budget Committee said it would have the marku=</span><br><span>p done so early in the first place. Moreover, it goes against the House Repu=</span><br><span>blicans message of =E2=80=9Cgetting things done=E2=80=9D during this Congres=</span><br><span>s. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Democrats are jumping on this delay a=</span><br><span>lready. &amp;nbsp;Nancy Pelosi said: =E2=80=9CYet again, it=E2=80=99s the Speake=</span><br><span>r=E2=80=99s own broken promises =E2=80=93 and his own rhetoric =E2=80=93 tha=</span><br><span>t are coming back to bite him. &amp;nbsp;Because while the Speaker pledged an en=</span><br><span>d to dysfunctional House-Republican leadership, all the American people are s=</span><br><span>eeing is more of the same.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;One thing is looks increasingly likely: that the nomination will exert a t=</span><br><span>idal force on at least the budget deliberations and everything else, through=</span><br><span>the election. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br></blockquote><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Upcoming/Recent Updates=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Tax Talk&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivatives Agreemen=</span><br><span>t w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nb=</span><br><span>sp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;In=</span><br><span>frastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Feb. 17)&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;=</span><br><span>nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Inter=</span><br><span>national Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb.=</span><br><span>3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Fra=</span><br><span>nk &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fis=</span><br><span>cal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Ja=</span><br><span>n. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the=</span><br><span>Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br></blockquote><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbs=</span><br><span>p;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Ste=</span><br><span>agall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nb=</span><br></blockquote><span>sp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End R=</span><br><span>eview: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 2=</span><br><span>9) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;=</span><br><span>(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT=</span><br><span>&amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelb=</span><br><span>y 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br></blockquote><span>blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;One week ago, the House passed a bill that could alter an=</span><br><span>d perhaps ease the way state and local infrastructure is financed in the cap=</span><br><span>ital markets, when HR.2209, a bill to "require the appropriate Federal banki=</span><br><span>ng agencies to treat certain municipal obligations as level 2A liquid assets=</span><br><span>, and for other purposes" was adopted by the House with a voice vote. &amp;nbsp;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Thought the bill has flown below the med=</span><br><span>ia radar, it is significant. &amp;nbsp;Municipal obligations, including bonds, a=</span><br><span>re at the heart of infrastructure investment in America. &amp;nbsp;And infrastru=</span><br><span>cture investment has been a large focus of this primary. &amp;nbsp;Both Democrat=</span><br><span>ic candidates have proposed multi-hundred billion dollar infrastructure inve=</span><br><span>stment proposals.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Details below...&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Infrastructure is mostly funded at the stat=</span><br></blockquote><span>e or local level through the use of municipal bonds. &amp;nbsp;Between 2003 and 2=</span><br><span>012, counties, states, and other localities invested $3.2 trillion in infras=</span><br><span>tructure through long-term tax-exempt municipal bonds, 2.5 times more than t=</span><br><span>he federal investment. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Bill&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HR 2209 requires federal banking regulators=</span><br></blockquote><span>to include municipal bonds under the Liquidity Coverage Ratio (LCR). &amp;nbsp;=</span><br><span>The LCR is designed to ensure that financial institutions have the necessary=</span><br><span>assets available to handle a liquidity disruption. &amp;nbsp;Local officials ha=</span><br><span>ve said that if the new rules aren=E2=80=99t changed, it will saddle them wi=</span><br><span>th higher borrowing costs by eliminating incentives banks have to purchase t=</span><br><span>heir bonds. Without bonds, these governments will lose a significant source o=</span><br><span>f their funding. &amp;nbsp;Per Indiana State Treasurer Kelly Mitchell: =E2=80=9C=</span><br><span>This bill helps ensure cash-strapped school districts and municipalities wil=</span><br><span>l continue to have access to bonds to finance projects they think are best f=</span><br><span>or their communities.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Rep. Luke=</span><br><span>Messer, an Indiana Republican who wrote the bill: &amp;nbsp;=E2=80=9CPut simply=</span><br><span>, our bill requires the federal government to recognize the obvious, that ou=</span><br><span>r municipal bonds are some of the safest investments in the world and that w=</span><br><span>e shouldn=E2=80=99t have rules that give preferential treatment to corporate=</span><br><span>bonds or other countries=E2=80=99 bonds over our own.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;After passing the House with unanimous bipartisan su=</span><br><span>pport, a companion bill is expected to be introduced in the Senate this year=</span><br><span>. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Municipal Bond Issue&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;After the crisis of 2008, federal regulators adopted=</span><br><span>international banking standards that require banks to have enough "High-Qua=</span><br><span>lity Liquid Assets" to cover their cash outflows for 30 days in case of a fu=</span><br><span>ture financial meltdown. &amp;nbsp;Now, municipal bonds are not considered liqui=</span><br><span>d assets and therefore cannot be included under the &amp;nbsp;LCR. &amp;nbsp;&amp;nbsp;A=</span><br><span>s a result, financial institutions have been discouraged from holding munici=</span><br><span>pal debt, which means that cash strapped municipalities and school districts=</span><br><span>may eventually be forced to reduce or even stop work on projects &amp;nbsp;fina=</span><br><span>nced with municipal bonds. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Infrastructur=</span><br></blockquote><span>e Financing -- Alternative Financing&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=</span><br><span>=A2 &amp;nbsp;&amp;nbsp;Tax-exempt bonds: &amp;nbsp;Exemption from federal taxes and man=</span><br><span>y state and local taxes is possible through the use of municipal bonds. &amp;nbs=</span><br><span>p;&amp;nbsp;In recent years, with the increasing use of PPPs, barriers to this t=</span><br><span>ax exemption have arisen. &amp;nbsp;Treasury has reviewed relevant tax rules and=</span><br><span>based on their findings and have put forth a proposal for an expanded and p=</span><br><span>ermanent America Fast Forward Bond Program as an alternative to tax-exempt b=</span><br><span>onds. &amp;nbsp;Based on the successful Build America Bond program, =E2=80=9Cwou=</span><br><span>ld provide an efficient borrowing subsidy to state and local governments whi=</span><br><span>le appealing to a broader investor base than traditional tax-exempt bonds [a=</span><br><span>nd] would cover a broad range of projects for which tax-exempt bonds can be u=</span><br><span>sed.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Obama=E2=80=</span><br></blockquote><span>=99s budget proposal: &amp;nbsp;Obama has also put forth a plan to strengthen lo=</span><br><span>cal and state government infrastructure projects. His plan relies on a new Fe=</span><br><span>deral credit program to support public-private partnerships within the Depar=</span><br><span>tment of the Treasury. It will provide direct loans to US infrastructure pro=</span><br><span>jects developed through PPPs. The Obama Administration believes that private=</span><br><span>investment is crucial for infrastructure development moving forward, so the=</span><br><span>re should be more flexibility in regards to what PPP is subject to. In addit=</span><br><span>ion to that, President Obama has proposed the taxable, direct-pay America Fa=</span><br><span>st Forward bond program to help finance infrastructure. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;State Infrastructure Banks&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;Local governments receive financing in a number of ways. &amp;nbsp;Tradi=</span><br><span>tional sources such as tax revenues have been dwindling and local authoritie=</span><br><span>s have been relying on federal government loan programs, public-private part=</span><br><span>nerships, and State Revolving Funds (SRFs). &amp;nbsp;State Infrastructure Banks=</span><br><span>(SIBs) are a subset of SRFs -- the funds act like a bank, because they don=E2=</span><br><span>=80=99t own the infrastructure asset, but act as a lender or guarantor to th=</span><br><span>e project sponsor. Per Brookings: &amp;nbsp;=E2=80=9CSRFs rely on principal repa=</span><br><span>yments, bonds, interest and fees to re-capitalize and replenish the fund as a=</span><br><span>perpetual source of debt financing.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;SIBs generate more investment per dollar than traditional federal and s=</span><br><span>tate grant programs. &amp;nbsp;They only exist in 33 states and 10 of those SIBs=</span><br><span>are currently inactive. A large problem may be compliance with federal regu=</span><br><span>lations. &amp;nbsp;Brookings again: &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=9C=</span><br><span>We found that many SIB officials cite compliance with federal regulations as=</span><br><span>slowing down the investment process either because of environmental and con=</span><br><span>tractual requirements or due to the lack of flexibility in projects that are=</span><br><span>not Title 23 or 49 eligible. For states with smaller projects, this may be p=</span><br><span>rohibitively costly compared to the advantage of using the low-cost SIB fina=</span><br><span>ncing.=E2=80=9D &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Just being called a bank=</span><br><span>subjects SIBs to regulations that commercial banks are subject to. &amp;nbsp;SI=</span><br><span>Bs are non-for-profit organizations with a goal of increasing infrastructure=</span><br><span>investment, so they don=E2=80=99t quite fit into the category of the averag=</span><br><span>e bank. &amp;nbsp;SIBs may be more successful outside this classification. &amp;nbsp=</span><br><span>;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;For or Against Dodd-Frank&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;Before Dodd-Frank, particularly in the case of relativ=</span><br><span>ely small municipalities, many underwriters forged long-term relationships w=</span><br><span>ith municipalities and would provide financial advice before and after a bon=</span><br><span>d issuance. &amp;nbsp;With Dodd-Frank, that relationship changed, with a new =E2=</span><br><span>=80=9Cmunicipal adviser=E2=80=9D category that must register with the SEC an=</span><br><span>d be regulated by the Municipal Securities Rulemaking Board (MSR). &amp;nbsp;Now=</span><br><span>, it is widely illegal to provide advice to governmental entities concerning=</span><br><span>the issuance of municipal bonds, the use of financial derivatives, and the i=</span><br><span>nvestment of the proceeds of a bond issue to, or on behalf, of a municipal e=</span><br><span>ntity or an obligated person unless the adviser is registered with the SEC. &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HR 2209 appears to address a problem with=</span><br><span>in Dodd-Frank, but it is unclear if it vitiates the law materially. &amp;nbsp;At=</span><br><span>face value, it appears to be more a technical fix. Dodd-Frank expanded regu=</span><br><span>lations for banking institutions, but the entities that fund state and local=</span><br><span>governments are far unlike the TBTF institutions that Dodd-Frank was meant t=</span><br><span>o regulate. &amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Groups like Amer=</span><br><span>icans for Financial Reform oppose HR 2209: =E2=80=9CWhile we sympathize with=</span><br><span>the belief that municipal debt was incorrectly treated under the initial LC=</span><br><span>R rule, we believe that it is inappropriate to classify such debt as a Level=</span><br><span>2A asset. AFR therefore opposes this bill unless a more appropriate liquidi=</span><br><span>ty classification is used.=E2=80=9D &amp;nbsp;AFR has previously said it support=</span><br><span>s treating municipal bonds as more liquid and does not approve the type of c=</span><br><span>lassification used in HR 2209, because it goes too far in its treatment of m=</span><br><span>unicipal debt as level 2A liquid assets and specifically with micromanaging r=</span><br><span>egulators with this kind of detail and they prefer a Level 2B classification=</span><br><span>. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The bill could provide relief for smal=</span><br><span>ler institutions, so that they can fund infrastructure investment more easil=</span><br><span>y. In terms of Dodd-Frank, it is yet to be decided if it is simply a necessa=</span><br><span>ry tweak or a criticism. &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nb=</span><br><span>sp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;=</span><br><span>nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Looking Ahead&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br></blockquote><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HR 2209 could end up=</span><br><span>being an important issue in the national infrastructure discussion. &amp;nbsp;I=</span><br><span>t brings up questions about how far a state or local government can go befor=</span><br><span>e its activities begin to resemble an actual bank. &amp;nbsp;With the growth of P=</span><br><span>PPs, the private sector is being even more integrated into the process =E2=80=</span><br><span>=93 should those companies be given tax exemptions, as well? &lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Upcoming/Recent Upd=</span><br></blockquote><span>ates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivatives Agreemen=</span><br><span>t w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nb=</span><br><span>sp;Budget (Ir)Resolution&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Infrastructure Finance Update &amp;nbsp;(Feb. 18) &lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does DFA Fail on Too Big to Fail? (Fe=</span><br><span>b. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below the Rada=</span><br><span>r/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Fe=</span><br><span>b. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of th=</span><br><span>e Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br></blockquote><span>=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(J=</span><br><span>an. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths C=</span><br><span>hallenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(J=</span><br><span>an. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agen=</span><br><span>da on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF=</span><br><span>(Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fi=</span><br><span>n Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin=</span><br><span>. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br=</span><br></blockquote><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10=</span><br></blockquote><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;=</span><br><span>(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender=</span><br><span>Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;The newly-installed the Minneapolis Federal Reserve Bank and form=</span><br><span>er Special Investigator overseeing the TARP program came to town yesterday a=</span><br><span>dvocating drastic action to head off a financial sector systemic risk crisis=</span><br><span>, calling for the nation's biggest banks to be broken up. &lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;His speech, delivered at Brookings, go=</span><br><span>t noticed, with lengthy coverage in the NYT, WSJ, and WaPo. &amp;nbsp;And perhap=</span><br><span>s with reason -- the TBTF (too big to fail) issue has dogged Congress and th=</span><br><span>e administration for years and is one of the central ones in the Democratic p=</span><br><span>residential campaign this far. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Or maybe i=</span><br><span>t was just a slow news day. &amp;nbsp;You decide...&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Best, &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;=</span><br></blockquote><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br></blockquote><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A Peculiar Package of Propo=</span><br><span>sals&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Kashkari argued in the alternative t=</span><br><span>hat Dodd-Frank needs to be used and/or needs to be reformed. &amp;nbsp;He says t=</span><br><span>he law as written does not solve the TBTF problem. &amp;nbsp;He also wants regul=</span><br><span>ators to use the yet-untried tools at their disposal under the law. &amp;nbsp;&amp;n=</span><br><span>bsp;=E2=80=9CWhile significant progress has been made to strengthen our fina=</span><br><span>ncial system, I believe the [Dodd-Frank] Act did not go far enough." &amp;nbsp;H=</span><br><span>e then laid out three ideas meant to end TBTF once and for all. &amp;nbsp;&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br></blockquote><span>lockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;break up large banks into smal=</span><br><span>ler, less connected, less important entities;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;=E2=80=A2 &amp;nbsp;turn what remains of the large banks into public utilit=</span><br><span>ies by forcing them to hold so much capital that they can=E2=80=99t fail; an=</span><br><span>d&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;tax leverage throughout=</span><br><span>the financial system "to reduce systemic risks wherever they lie."&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Break up the Banks&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;=46rom the perspective of current laws, breaking up big=</span><br><span>banks is already a policy avenue available to regulators. &amp;nbsp;The Federal=</span><br><span>Reserve, through the Financial Stability Oversight Council, can elect to ta=</span><br><span>ke a number of actions to deal with banks that it feels are both systemicall=</span><br><span>y important and organized in an unstable way. &amp;nbsp;Section 121 of the Dodd-=</span><br><span>Frank Act gives the Board of Governors these powers. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;So this first proposal =E2=80=93 break up big banks - has=</span><br><span>been covered here before but just for the sake of argument... which banks n=</span><br><span>eed to be broken up most urgently? &amp;nbsp;Few commentators believe there is a=</span><br><span>n imminent threat demanding action. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;Unsurprisingly, the Fed doesn=E2=80=99t believe that banks are so hopeless=</span><br><span>that they need to be dissolved. &amp;nbsp;That doesn=E2=80=99t mean it=E2=80=99=</span><br><span>s not a possibility under current legislation, however.&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;nbsp;Make Banks =E2=80=9CUtilities=E2=80=9D&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The second proposal is to push capital requ=</span><br></blockquote><span>irements for banks so high that they =E2=80=9Cessentially turn into public u=</span><br><span>tilities.=E2=80=9D &amp;nbsp;Kashkari never explains how exactly high capital re=</span><br><span>serves turn banks into utilities, but that=E2=80=99s for another time. &amp;nbsp=</span><br><span>;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;He is voicing his support for one of th=</span><br><span>e oldest forms of banking regulations that we still use and use far more now=</span><br><span>in the Dodd-Frank era =E2=80=93 he wants banks to hold more capital. &amp;nbsp;=</span><br><span>Supporters of the law may be heartened by his full-throated endorsement of t=</span><br><span>he law on this score. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;&amp;n=</span><br><span>bsp;Cribbing from Clinton?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The third prop=</span><br><span>osal was just about lifted out of Secretary Clinton=E2=80=99s plan to regula=</span><br><span>te Wall Street =E2=80=93- though the reporting on the speech doesn=E2=80=99t=</span><br><span>much mention it much. &amp;nbsp;It is reasonable both from a policy and a polit=</span><br><span>ical perspective. But he doesn't provide further details about his proposal a=</span><br><span>fter first outlining it.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Kashkari contra Y=</span><br><span>ellen&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fed Chair Yellen has been an outspo=</span><br><span>ken proponent of existing banking regulations, making it known that while th=</span><br><span>e job of regulators is not done yet. we=E2=80=99re in a much better situatio=</span><br><span>n now than we were before DFA. &amp;nbsp;During her testimony before House Finan=</span><br><span>cial Services, Yellen fielded a question about why she had not yet broken up=</span><br><span>big banks, saying: =E2=80=9C=E2=80=A6we [at the Fed]vare using our powers t=</span><br><span>o make sure that a systemically important institution could fail, and it wou=</span><br><span>ld not be -- have systemic consequences for the country. We're doing that in=</span><br><span>a whole variety of ways.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>The ways Yellen is referring to include enforcing Liquidity Coverage Ratios=</span><br></blockquote><span>, capital reserve requirements, and a rule passed last November forcing the b=</span><br><span>iggest banks to issue long-term debt equal to 18 percent of risk-weighted as=</span><br><span>sets. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Evidently it's not enough. &amp;=</span><br><span>nbsp;But it is nonetheless uncommon for a newly minted Federal Reserve Bank P=</span><br><span>resident to taking to task the Chair of the Federal Reserve=E2=80=99s Board o=</span><br><span>f Governors.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2=</span><br><span>&amp;nbsp;Municipal Bond Rule&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;Budget (Ir)Resolution&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ. R=</span><br><span>evitalization/Housing&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Does DFA Fail on To=</span><br></blockquote><span>o Big to Fail? (Feb. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 16) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;=</span><br><span>(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's FY1=</span><br><span>7 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/Debt Dormancy (Jan. 28=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds Rates=</span><br><span>, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;=</span><br><span>nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;HRC's T=</span><br><span>ax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(=</span><br></blockquote><span>Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders Propo=</span><br><span>sals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br></blockquote><span>ckquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Ye=</span><br><span>ar-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(=</span><br><span>Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omni=</span><br><span>bus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;C=</span><br><span>ustoms Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;A national h=</span><br><span>oliday, a snowstorm, and a congressional recess stilled DC yesterday and a q=</span><br><span>uiet week is expected. &amp;nbsp;It gives us a chance to have a look at some dev=</span><br><span>elopments thus far this year that have flown below the radar.&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Today's item is the one bill on its way to the Presiden=</span><br><span>t=E2=80=99s desk -- the Customs bill -- and the caboose attached to it that e=</span><br><span>xtends the internet tax moratorium permanently &amp;nbsp;and may be the bill's i=</span><br><span>mportant title... at least until the TPP comes up on the Senate floor. &lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Dana=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The C=</span><br><span>ustoms Bill: &amp;nbsp;Comity on the Hill&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The=</span><br><span>Senate cleared the first overhaul of the Customs and Border Protection (CBP=</span><br><span>) agency in more than a decade in a 75-20 vote last Thursday, sending the bi=</span><br><span>ll to the President and ending months of wrangling over the measure. &amp;nbsp;T=</span><br><span>he Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) retools C=</span><br><span>BP to increase its focus on blocking illegal trade and ensuring that legal t=</span><br><span>rade moves smoothly.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The major facets of t=</span><br><span>his legislation are:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;new p=</span><br><span>rotections on intellectual property rights&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;new tools to fight currency manipulati=</span><br><span>on&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2. a perma=</span><br><span>nent extension of the Internet Tax Freedom Act&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;Said Senate Finance ranking member Ron Wyden: &amp;nbsp;=E2=80=9CThis bill=</span><br><span>is about coming down hard on the trade cheats who are ripping off American j=</span><br><span>obs, and the truth is past trade policies were often too old, too slow or to=</span><br><span>o weak for our country to fight back."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Wy=</span><br><span>den was perhaps the most outspoken Democrat in support of the bill, continui=</span><br><span>ng his role as a strong backer of free trade legislation. &amp;nbsp;He was a key=</span><br><span>factor in getting Trade Promotion Authority legislation passed through Cong=</span><br><span>ress last summer, splitting from some of his colleagues in voicing support f=</span><br><span>or that act.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Unusual Coalition&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;27 Democrats, 47 Republicans, and 1 Independent vot=</span><br><span>ed affirmatively. &amp;nbsp;Industry groups including the National Retail Federa=</span><br><span>tion, as well as the U.S. Chamber of Commerce were supportive of the legisla=</span><br><span>tion. &amp;nbsp;National Association of Manufacturers=E2=80=99 president Jay Tim=</span><br><span>mons said =E2=80=9Cif senators want to grow manufacturing in the United Stat=</span><br><span>es, then they should pass this bill immediately.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;Notable =E2=80=9CNay=E2=80=9D votes include Sens. Durbin an=</span><br><span>d Reid, who both expressed disappointment that the legislation was a =E2=80=9C=</span><br><span>watered down=E2=80=9D version of a bill previously passed by the Senate. &amp;nb=</span><br><span>sp;=E2=80=9DI like that [Senate] version, and that strong language on curren=</span><br><span>cy manipulation,=E2=80=9D Durbin said =E2=80=93 that language required Comme=</span><br><span>rce to consider =E2=80=9Cundervalued=E2=80=9D currencies to be equivalent to=</span><br><span>countervailable subsidies. &amp;nbsp;=E2=80=9CThe conference report that=E2=80=99=</span><br><span>s back to us now and before the Senate at this moment is a much different bi=</span><br><span>ll."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Purpose and Provisions&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;House and Senate negotiators agreed on a final customs=</span><br><span>bill in December. &amp;nbsp;&amp;nbsp;The House passed the measure 256-158 but the l=</span><br><span>egislation stalled in the Senate over a provision added in conference that p=</span><br><span>ermanently extends a moratorium on Internet access taxes.&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;That provision is perhaps the most reported on section in t=</span><br><span>he bill =E2=80=93 it=E2=80=99s almost certainly the most popular - it applie=</span><br><span>s to localities, states, and the federal government itself. &amp;nbsp;&amp;nbsp;Sen.=</span><br><span>Lamar Alexander cited it though as explanation for his =E2=80=9Cnay=E2=80=9D=</span><br><span>vote: "the federal government shouldn't be telling the states what their ta=</span><br><span>x structure should be."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Another important=</span><br><span>provision, known as the ENFORCE Act, would require the CBP to more aggressi=</span><br><span>vely investigate complaints that companies are evading anti-dumping or count=</span><br><span>ervailing duties on imports by mislabeling or disguising the shipments.&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;The bill includes a new Trade Enforcement Fun=</span><br><span>d to bring trade cases through the WTO, to investigate the implementation of=</span><br><span>trade requirements by other countries, and to respond to complaints of trad=</span><br><span>e violations. &amp;nbsp;It also creates a nine-member Advisory Committee on Inte=</span><br><span>rnational Exchange Rate Policy, whose members must be comprised of individua=</span><br><span>ls from the private sector who are selected by both chambers of Congress and=</span><br><span>the President (three members each).&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Curr=</span><br><span>ency Manipulation&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Currency manipulation h=</span><br><span>as been a long-standing concern of American policy-makers and a particularly=</span><br><span>contentious issue in global trade relations; claims that China has been chr=</span><br><span>onically undervaluing its currency have made the news for a number of years.=</span><br><span>&amp;nbsp;Advocates for stricter enforcement of currency manipulation provision=</span><br><span>s claim that undervalued currencies operate similarly to export subsidies =E2=</span><br><span>=80=93 a prohibited practice within the World Trade Organization.&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;The final bill dropped a Senate provision that woul=</span><br><span>d have required the Commerce Department to treat undervalued currency as an i=</span><br><span>llegal subsidy under U.S. countervailing duty law. &amp;nbsp;This provision woul=</span><br><span>d have opened the door for compensatory tariffs to be levied against goods w=</span><br><span>hich originate from countries which are found to purposely undervalue their c=</span><br><span>urrency in order to boost their exports. The bill does, however, include oth=</span><br><span>er measures that give the Treasury Department new tools to fight currency ma=</span><br><span>nipulation:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;creates a spe=</span><br><span>cial fund for the CBP to ensure trading partners follow the rules and to bri=</span><br><span>ng disputes before the WTO&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;increases funding to the National Intellectual Propert=</span><br><span>y Rights Coordination Center&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;establishes the Commercial Customs Operations Adviso=</span><br><span>ry Committee jointly between CBP and Treasury&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;requires CBP to investigate claims f=</span><br><span>rom other agencies of evasion of anti-dumping or countervailing duties.&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Relation to TPP&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;Sen. Majority Leader McConnell has said that the Senate will not vote o=</span><br><span>n the Trans-Pacific Partnership before the November elections, so it may com=</span><br><span>e as a surprise to see a bill which deals with enforcing trade deals like TP=</span><br><span>P pass both houses of Congress. &amp;nbsp;However this bill=E2=80=99s provisions=</span><br><span>for protecting IP rights, toughening countervailing duties, and tackling cu=</span><br><span>rrency manipulation are a necessary prerequisite for agreements like TPP (or=</span><br><span>the far more nebulous TTIP). &amp;nbsp;The new age of trade agreements &amp;nbsp;wi=</span><br><span>ll deal extensively in issues like intellectual property protection, trade i=</span><br><span>n services, and high-tech product trading; types of commerce which are far m=</span><br><span>ore difficult to regulate compared to the trade of physical goods.&lt;/span&gt;&lt;br=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;So, despite the fact that TPP won=E2=80=99t get a v=</span><br><span>ote until after November (and perhaps not in 2016 at all), and may not pass e=</span><br><span>ven then, the protections set forward in the customs bill are necessary to a=</span><br><span>llow American companies to continue to compete in the global marketplace.&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Price of Passage&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;bl=</span><br></blockquote><span>ockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cit=</span><br><span>e"&gt;&lt;span&gt;In order to include the permanent extension of the Internet Tax Fre=</span><br><span>edom Act, McConnell had to promise that a vote would be held this year on th=</span><br><span>e Marketplace Fairness Act. &amp;nbsp;That legislation grants states greater aut=</span><br><span>hority to collect sales taxes from online businesses who sell products withi=</span><br><span>n their borders. &amp;nbsp;While McConnell himself opposes the bill, it was the o=</span><br><span>nly way to get the customs bill (with the tax amendment attached) unstuck.&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Just because McConnell has promised it wil=</span><br><span>l be brought to a vote doesn=E2=80=99t mean it will be a smooth process - th=</span><br><span>e Senate passed the Marketplace Fairness Act in 2013 with 69 votes, and most=</span><br><span>of the lawmakers who voted for it are still in the chamber. &amp;nbsp;Some lawm=</span><br><span>akers like Kelly Ayotte, who is facing a tough reelection campaign this year=</span><br><span>, have vowed to fight tooth-and-nail against it. &amp;nbsp;Despite these detract=</span><br><span>ors in the Senate, the real battle may occur in the House, where two competi=</span><br><span>ng proposals have been brought forward. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Upcoming/Recen=</span><br><span>t Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Municipal Bond R=</span><br><span>ule&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;B=</span><br><span>udget (Ir)Resolution&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>=E2=80=A2 &amp;nbsp;Puerto Rico&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;=E2=80=A2 &amp;nbsp;Derivatives Agreement w. EU&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;b=</span><br></blockquote><span>lockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Econ. Revitalization/Housing&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Below the Radar/Customs Bill &amp;nbsp;(Feb. 1=</span><br><span>6) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;International Tax=</span><br><span>Status &amp;nbsp;(Feb. 11)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;=</span><br><span>&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;=</span><br><span>(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: D=</span><br><span>eficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulato=</span><br><span>rs &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sa=</span><br><span>nders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Jan. 1=</span><br><span>6)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Ta=</span><br><span>ke 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;nbsp;(Jan. 5=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fi=</span><br><span>scal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;=</span><br><span>Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br><span>e=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brown on HFT &amp;nbsp;(D=</span><br><span>ec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Upd=</span><br><span>ate &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;On Feb 11, 2016, at 7:47 PM, Dana &amp;lt;&lt;a href=3D"mailto:danachasin@gmail=</span><br><span>.com"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;Mike &amp;amp; Co. &amp;nbsp;--&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;One thing th=</span><br><span>e two parties agree is that international tax reform is a fiscally necessary=</span><br><span>issue to take up -- that Uncle Sam is leaving hundreds of billions of dolla=</span><br><span>rs on the table overseas annually. &amp;nbsp;&amp;nbsp;But they would also generally=</span><br><span>agree that it is not going to get done this year. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Under current law, those profits are subject only to fede=</span><br><span>ral taxes if they are returned, or repatriated, to the U.S. where they face a=</span><br><span>top rate of 35 percent. &amp;nbsp;Many companies avoid U.S. taxes on those earn=</span><br><span>ings by simply leaving them overseas.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;T=</span><br><span>here is bipartisan activity on the issue in both houses of Congress. Obama h=</span><br><span>as a major reform proposal on the table. &amp;nbsp;So is this the year, in the y=</span><br><span>ear of surprises?&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Best,&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;Dana&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Reforms in t=</span><br><span>he area of international tax deal with both the repatriation of foreign-deri=</span><br><span>ved profits and the issue of corporate inversions. &amp;nbsp;Testifying today, T=</span><br><span>reasury Secretary Jack Lew encouraged the parties in Congress to overcome th=</span><br><span>eir differences on both, which he believes surmountable: &amp;nbsp;=E2=80=9CI ju=</span><br><span>st want to underscore the urgency of dealing with inversions =E2=80=A6 We ca=</span><br><span>n=E2=80=99t wait a year to deal with this,=E2=80=9D Lew said during a Senate=</span><br><span>Finance hearing on the Obama administration=E2=80=99s budget. Congress coul=</span><br><span>d pass narrow legislation on inversions, he said, even if broader reform of t=</span><br><span>he international system is preferable. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Stirrings in the Senate&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote typ=</span><br></blockquote><span>e=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sen. Schumer a=</span><br><span>lso announced today that he is in contact with Speaker Ryan about coming to a=</span><br><span>n agreement on repatriating corporate profits. &amp;nbsp;They were unable to com=</span><br><span>e to an agreement last year on a similar measure put forth as part of a larg=</span><br><span>er reform effort. &amp;nbsp;Schumer said today: =E2=80=9CWe=E2=80=99re trying to=</span><br><span>bridge over, of course, the divide between existing proposals. &amp;nbsp;I rema=</span><br><span>in at the table ready to work.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;One of the key differences between the parties concerns whether the m=</span><br><span>oney raised from tax reform should be turn into government revenue for more s=</span><br><span>pending, or used to pay down the debt or pass tax cuts. &amp;nbsp;After the Sena=</span><br><span>te Finance hearing yesterday, Chair Hatch said: &amp;nbsp;=E2=80=9CI'm actually w=</span><br><span>orking on international, but I just don't think it's going to get done this y=</span><br><span>ear, because, you know, let's face it, the Democrats are going to want to ra=</span><br><span>ise revenue. &amp;nbsp;They want money to spend.=E2=80=9D &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br><span>e type=3D"cite"&gt;&lt;span&gt;At that same hearing, Sen. Shelby pushed a corporate i=</span><br><span>ntegration plan he is developing to eliminate the double taxation of corpora=</span><br><span>te income by providing corporations a dividend deduction. &amp;nbsp;He's awaitin=</span><br><span>g a score by the Joint Committee on Taxation. &amp;nbsp;Dividend deductions are u=</span><br><span>sually quite expensive and regressive, so it will a feat to attract any Demo=</span><br><span>cratic support, especially for him. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Br=</span><br><span>ady's Push &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Meanwhile, Ways and Means C=</span><br><span>hair Kevin Brady has said that he wants a vote this year on moving the Unite=</span><br><span>d States into a territorial tax system, which would permanently exempt US-ba=</span><br><span>sed businesses from paying taxes on income earned abroad. &amp;nbsp;He also want=</span><br><span>s to lower the corporate rate to 20 percent. &amp;nbsp;In the face of these prop=</span><br><span>osals it is difficult to see what sort of compromise can be found between De=</span><br><span>mocrats and Republicans, as the former may be more preoccupied just keeping a=</span><br><span>live the idea that foreign profits should be taxed at all. =E2=80=9CThe goal=</span><br><span>of these reforms are not to generate more spending,=E2=80=9D Brady said. =E2=</span><br><span>=80=9CIt=E2=80=99s to bring back real dollars to be reinvested in the United=</span><br><span>States.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Brady has been advoca=</span><br><span>ting for international tax reform since he took over Ways and Means. &amp;nbsp;L=</span><br><span>ast month, he spoke with Sen. Hatch and they were both committed to getting s=</span><br><span>omething done. &amp;nbsp;Senior Republicans believe the country=E2=80=99s intern=</span><br><span>ational tax problems =E2=80=94 inversions and Europe going after revenues fr=</span><br><span>om U.S. companies among them =E2=80=94 are urgent. &amp;nbsp;But Brady strongly h=</span><br><span>inted that all that work would be aimed at setting things up for 2017, when R=</span><br><span>epublicans want =E2=80=9Cpro-growth tax reform under a Republican president.=</span><br><span>=E2=80=9D Perhaps that=E2=80=99s no huge shock, but it does seem to set up s=</span><br><span>omething of a disconnect, given all the talk of urgency.&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;Brady and his supporters have been pushing the idea that A=</span><br><span>merican money is either being taxed by other countries or being taken over b=</span><br><span>y foreign competitors in an inversion -- typically, when an American company=</span><br><span>incorporates abroad so its earnings are no longer subject to American taxes=</span><br><span>. &amp;nbsp;Brady says the result is an erosion of our tax base and a lock-out e=</span><br><span>ffect of American capital being =E2=80=9Ctrapped=E2=80=9D abroad that can be=</span><br><span>solved by fixing our uncompetitive tax code.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Presidential Proposal&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br></blockquote><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Presid=</span><br><span>ent=E2=80=99s FY 2017 budget contains a surprising source of new revenue to p=</span><br><span>ay for its spending programs =E2=80=93 a major piece of international tax po=</span><br><span>licy reform: a six-year, $478 billion public-works program for highway, brid=</span><br><span>ge and transit upgrades, half of it to be financed with a one-time, 14 perce=</span><br><span>nt tax on U.S. companies=E2=80=99 overseas profits and a 19 percent rate the=</span><br><span>reafter. &amp;nbsp;The issue of companies holding foreign profits at locations a=</span><br><span>broad, where they are exempt from taxation until repatriated, has vexed poli=</span><br><span>cy makers on both sides for some time. &amp;nbsp;It=E2=80=99s estimated that the=</span><br><span>se profits add up to nearly $2 trillion. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;The issue of companies holding foreign profits at locations abroad, there=</span><br><span>by exempt from taxation unless those profits are brought home, has vexed pol=</span><br><span>icy makers on both sides for some time. &amp;nbsp;Microsoft Corp., Apple Inc., G=</span><br><span>oogle Inc. and five other tech firms now account for more than a fifth of th=</span><br><span>e $2.10 trillion in profits that U.S. companies are holding overseas. &amp;nbsp;=</span><br><span>In keeping with the idea that Obama=E2=80=99s final budget is =E2=80=9Cmore p=</span><br><span>olitics than policy,=E2=80=9D these revenue-gaining proposals are meant to s=</span><br><span>park discussion more so than be a model for laws going forward. &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;span&gt;Upcoming/Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Customs Bill&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Mu=</span><br><span>nicipal Bond Rule&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=E2=80=A2 &amp;nbsp;Budget Irresolution &lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;International Tax Status &amp;nbsp;(Feb. 11)&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;The Fed Holds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Obama's =</span><br><span>FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb=</span><br><span>. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Fiscal Pol: Deficit/Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br></blockquote><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Holds=</span><br><span>Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;n=</span><br><span>bsp;(Jan. 25)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulators &amp;nbsp;(Jan. 21)&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;span&gt;Sanders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on th=</span><br><span>e Hill &amp;nbsp;(Jan. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steagall, Take 2 &amp;nbsp;(Jan. 13=</span><br><span>)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;S=</span><br><span>anders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg P=</span><br><span>roposals &amp;nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-End Review: Fiscal Policy (Ja=</span><br><span>n. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(Dec. 29) &amp;nbsp;Omnibus Review (=</span><br><span>Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec=</span><br><span>. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotiations &amp;nbsp;(Dec. 6) &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br></blockquote><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp=</span><br><span>;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Feb 10, 2016, at 7:41 PM, Dana &amp;=</span><br><span>lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;<a href="mailto:[email-masked]">[email-masked]</a>&lt;/a&gt;&amp;gt; wrot=</span><br><span>e:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Chair of the Feder=</span><br><span>al Reserve went before House Financial Services to provide a report on the n=</span><br><span>ation's economic condition, a kind of bi-annual checkup. No news was made, n=</span><br><span>o fireworks went off and no market mood swings occurred. &amp;nbsp;As for the Fe=</span><br><span>d's next move, it's wait-and-see a little while longer. &lt;/span&gt;&lt;br&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;We thought it might happen in March, s=</span><br><span>igns pointed to it. &amp;nbsp;Now, the guess is June (sound familiar?) &amp;nbsp;For=</span><br><span>details, don't wait, see below.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Best, &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>Dana &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br></blockquote><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;----------&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Economic Checkup&lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fed Chair Yellen testi=</span><br><span>fied before House Financial Services this morning for the Federal Reserve=E2=</span><br><span>=80=99s bi-annual Monetary Policy Report. &amp;nbsp;These appearances allow Yell=</span><br><span>en to explain the Fed=E2=80=99s, actually the Federal Open Market Committee (=</span><br><span>FOMC)=E2=80=99s, analysis and projections regarding America's economic perfo=</span><br><span>rmance as well as to signal the factors underlying its actions in the months=</span><br><span>ahead. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The r=</span><br><span>ate change in December 2015 was the first time the Fed raised rates since 20=</span><br><span>06 -- some worry that even a modest increase in rates at this juncture would=</span><br><span>further slow already limited economic growth after years of uncertainty.&lt;/s=</span><br><span>pan&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Basics&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The bottom line: the FOMC won=</span><br><span>=E2=80=99t rollback rates in March and it=E2=80=99s not likely to raise them=</span><br><span>either. &amp;nbsp;The Fed likes what it sees in the labor market, wage growth l=</span><br><span>ooks strong, and emerging market missteps continue to be a threat to the US e=</span><br><span>conomy but perhaps not an immediate one. &amp;nbsp;The next rate move is almost c=</span><br><span>ertain to be an increase but it could wait until June or later. &lt;/span&gt;&lt;br&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Yellen reiterated much of the FO=</span><br><span>MC statement from last month: &amp;nbsp;the labor market remains strong, but sho=</span><br><span>ws some signs of remaining slack, that the low inflation we have seen is cau=</span><br><span>sed by =E2=80=9Ctransitory=E2=80=9D effects (low energy prices), and that gl=</span><br><span>obal market uncertainty creates some level of risk for slow growth at home a=</span><br><span>nd abroad. &amp;nbsp;Though Yellen did not make a prediction on how long these t=</span><br><span>ransitory market effects would last, a number of forecasts for oil prices sh=</span><br><span>ow the dip lasting through 2016.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Expanding on global growth issues, Yellen said "These developme=</span><br><span>nts, if they prove persistent, could weigh on the outlook for economic activ=</span><br><span>ity and the labor market, although declines in longer-term interest rates an=</span><br><span>d oil prices could provide some offset," she added: "Foreign economic develo=</span><br><span>pments, in particular, pose risks to US economic growth." &lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;Partisan Review&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;=</span><br><span>The GOP is generally critical of "accommodative" (lower) Fed rates. &amp;nbsp;&amp;n=</span><br><span>bsp;High-net-worth individuals benefit the most from high rates through divi=</span><br><span>dends and interest from savings. &amp;nbsp;Low rates allow more growth for the m=</span><br><span>iddle- and lower-classes at the risk of inflation, tacitly supporting Democr=</span><br><span>ats=E2=80=99 progressive fiscal policy goals. &amp;nbsp;Some conservative econom=</span><br><span>ists have gone so far as to blame low interest rates pushed by the Fed in th=</span><br><span>e 1990=E2=80=99s for the market meltdown in 2007, claiming that cheap credit=</span><br><span>was the cause of the overheated housing market.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/bl=</span><br><span>ockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockqu=</span><br><span>ote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;span&gt;Strong Labor Market&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Discu=</span><br><span>ssing the labor market in greater detail, Yellen pointed to the cumulative i=</span><br><span>ncrease in employment since 2010 of 13 million jobs. &amp;nbsp;The rate in Janua=</span><br><span>ry fell to 4.9 percent, 0.8 points below its level one year ago; measures of=</span><br><span>labor market conditions such as the number of people who are working part-t=</span><br><span>ime but want to move to full-time positions and the number of individuals wh=</span><br><span>o want to work but haven=E2=80=99t searched recently are also decreasing ste=</span><br><span>adily. &amp;nbsp;Regarding these broader labor market indicators Yellen testifie=</span><br><span>d that =E2=80=9C=E2=80=A6 these measures remain above the levels seen prior t=</span><br><span>o the recession, suggesting that some slack in labor markets remains. Thus, w=</span><br><span>hile labor market conditions have improved substantially, there is still roo=</span><br><span>m for further sustainable improvement."&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;Forward Guidance&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockq=</span><br><span>uote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span=</span><br><blockquote type="cite"><span>&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"=</span><br></blockquote><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;As always, Yellen=</span><br></blockquote><span>was careful not to give hints on what the Fed is planning to do in future m=</span><br><span>eetings; speaking on the path forward for the Fed Funds rate Yellen said =E2=</span><br><span>=80=9COf course, monetary policy is by no means on a preset course. The actu=</span><br><span>al path of the federal funds rate will depend on what incoming data tell us a=</span><br><span>bout the economic outlook, and we will regularly reassess what level of the f=</span><br><span>ederal funds rate is consistent with achieving and maintaining maximum emplo=</span><br><span>yment and 2 percent inflation.=E2=80=9D&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;sp=</span><br><span>an&gt;Yellen was asked about the chances of the FOMC rolling back the rate hike=</span><br><span>it announced in December: &amp;nbsp;"I do not expect the FOMC is going to be so=</span><br><span>on in the situation where it's necessary to cut rates If the FOMC delayed th=</span><br><span>e start of policy normalization for too long, it might have to tighten polic=</span><br><span>y relatively abruptly in the future to keep the economy from overheating and=</span><br><span>inflation from significantly overshooting its objective. Such an abrupt tig=</span><br><span>htening could increase the risk of pushing the economy into recession." &lt;/sp=</span><br><span>an&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Comment on Dodd-Frank&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;span&gt;During the Q&amp;amp;A portion of her testimony, Yellen was=</span><br><span>asked about financial regulation, both in terms of breaking up the banks an=</span><br><span>d enforcing the regulations brought on by Dodd-Frank. &lt;/span&gt;&lt;br&gt;&lt;/blockquot=</span><br><span>e&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;span&gt;In response to being asked if the Fed is trying to break u=</span><br><span>p the banks, she responded: "We are using our powers to make sure that a sys=</span><br><span>temically important institution could fail, and it would not have systemic c=</span><br><span>onsequences for the country." Her answer was interesting, because she's not o=</span><br><span>utright saying the banks will be broken up or reduced, just that the Fed is t=</span><br><span>rying to ensure that even if they did fail, it wouldn't negatively effect th=</span><br><span>e economy.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;=</span><br><span>br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Yellen was also asked abou=</span><br><span>t the burden of new Dodd-Frank regulations on banks. She responded: "For our=</span><br><span>part, we're focused on doing everything that we conceivably can to minimize=</span><br><span>and reduce the burden on these banking organizations. We've been conducting=</span><br><span>an EGRPRA review to identify potential burdens that our regulations impose.=</span><br><span>" An EGRPRA review is connected to the Economic Growth and Regulatory Paperw=</span><br><span>ork Reduction Act, which requires regulations imposed on financial instituti=</span><br><span>ons to be reviewed by the agencies at least once every 10 years. The purpose=</span><br><span>is to prevent burdensome regulations that could hinder a bank's ability to s=</span><br><span>erve its customers. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;spa=</span><br><span>n&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Bottom Line&lt;=</span><br><span>/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fed watchers make their living by try=</span><br><span>ing to predict what the FOMC will or won=E2=80=99t do at their meetings, and=</span><br><span>on days when Yellen is scheduled to testify before Congress you can bet tha=</span><br><span>t they=E2=80=99re listening intently. &amp;nbsp;While Yellen was careful not to p=</span><br><span>roject the Fed=E2=80=99s moves, the general sentiment in the markets is that=</span><br><span>FOMC won=E2=80=99t be raising rates at its March meeting. &amp;nbsp;The CME Gro=</span><br><span>up FedWatch tool, which estimates FOMC rate hikes based on its futures price=</span><br><span>s, predicts a 95% probability that the Fed will maintain its current rate ta=</span><br><span>rget in March. &amp;nbsp;Some forecasters go even further -- expecting that the f=</span><br><span>unds rate won=E2=80=99t be raised all year. &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;Traders see the ongoing economic struggles of emerging economies, pa=</span><br><span>rticularly in China, as evidence that the Fed won=E2=80=99t continue with it=</span><br><span>s scheduled 4 rate hikes this year. &amp;nbsp;Certainly, considering the testimo=</span><br><span>ny today that 1) continued emerging market uncertainty can weigh down the US=</span><br><span>economy and 2) that poor performance in the US economy would cause the Fed t=</span><br><span>o change course on its rate hike schedule, a link between poor emerging mark=</span><br><span>et performance and fewer Fed rate hikes seems plausible. &amp;nbsp;Certainly the=</span><br><span>trading on Fed fund futures indicates that the markets believe this is the c=</span><br><span>ase.&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"ci=</span><br><span>te"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote ty=</span><br><span>pe=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;-------&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/bloc=</span><br></blockquote><span>kquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Recent Updates&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;The Fed Hol=</span><br><span>ds Steady &amp;nbsp;(Feb. 10)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"=</span><br><blockquote type="cite"><span>&lt;span&gt;Obama's FY17 Budget &amp;nbsp;(Feb. 9) &lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br></blockquote><span>te&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockqu=</span><br><span>ote type=3D"cite"&gt;&lt;span&gt;Tax Talk of the Town &amp;nbsp;(Feb. 3)&lt;/span&gt;&lt;br&gt;&lt;/bloc=</span><br><span>kquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Defending Dodd-Frank &amp;nbsp;(Feb. 2)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Fiscal Pol: Deficit/=</span><br><span>Debt Dormancy (Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;bl=</span><br><span>ockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>span&gt;The Fed Holds Rates, for Now &amp;nbsp;(Jan. 28)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/b=</span><br><span>lockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;=</span><br><span>blockquote type=3D"cite"&gt;&lt;span&gt;Debate Myths Challenged &amp;nbsp;(Jan. 25)&lt;/span=</span><br><blockquote type="cite"><span>&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br></blockquote><span>quote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Regulating the Regulator=</span><br><span>s &amp;nbsp;(Jan. 21)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;S=</span><br><span>anders' Tax/Healthcare Policy &amp;nbsp;(Jan 20)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;block=</span><br><span>quote type=3D"cite"&gt;&lt;span&gt;HRC's Tax Policy &amp;nbsp;(Jan. 17)&lt;/span&gt;&lt;br&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;2016 Tax Agenda on the Hill &amp;nbsp;(Ja=</span><br><span>n. 16)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"=</span><br><span>cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Glass-Steaga=</span><br><span>ll, Take 2 &amp;nbsp;(Jan. 13)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;2016 Tax Policy Issues &amp;nbsp;(Jan. 8)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;Sanders Proposals/GS &amp;amp; TBTF (Jan. 7)&lt;/span&gt;&lt;b=</span><br><span>r&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquo=</span><br><span>te type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Sanders' Fin Reg Proposals &amp;=</span><br><span>nbsp;(Jan. 5)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Year-=</span><br><span>End Review: Fiscal Policy (Jan. 1) &amp;nbsp;Year-End Review: Fin. Reg. &amp;nbsp;(D=</span><br><span>ec. 29) &amp;nbsp;Omnibus Review (Dec. 15)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;span&gt;Omnibus Situation &amp;nbsp;(Dec. 14)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;FY 2016 Omnibus Talks (Dec. 10)&lt;/span&gt;&lt;br&gt;=</span><br><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote=</span><br><span>type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Customs Bill &amp;nbsp;(Dec. 8)&lt;/=</span><br><span>span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;b=</span><br><span>lockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Tax Extender Negotia=</span><br><span>tions &amp;nbsp;(Dec. 6) o&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blo=</span><br><span>ckquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;s=</span><br><span>pan&gt;Brown on HFT &amp;nbsp;(Dec. 4)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockq=</span><br><span>uote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D=</span><br><span>"cite"&gt;&lt;span&gt;Shelby 2.0 Update &amp;nbsp;(Dec. 3)&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/block=</span><br><span>quote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;span&gt;----&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/spa=</span><br><span>n&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;bloc=</span><br><span>kquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cit=</span><br></blockquote><span>e"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;On Feb 9, 2016,=</span><br><span>at 7:42 PM, Dana &amp;lt;&lt;a href=3D"<a href="mailto:[email-masked]">mailto:[email-masked]</a>"&gt;danachasin@gma=</span><br><span><a href="http://il.com">il.com</a>&lt;/a&gt;&amp;gt; wrote:&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blo=</span><br><span>ckquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=</span><br><span>=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquo=</span><br><span>te&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"c=</span><br><span>ite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;&lt;/span&gt;&lt;br&gt;&lt;/=</span><br><span>blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;=</span><br><span>&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite=</span><br><span>"&gt;&lt;span&gt;Mike &amp;amp; Co. --&lt;/span&gt;&lt;br&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;=</span><br><span>/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote t=</span><br><span>ype=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Today, President Obama submitte=</span><br><span>d his eighth and final budget proposal to Congress. &amp;nbsp;It tops the $4 tri=</span><br><span>llion mark for the first time. &amp;nbsp;&amp;nbsp;Despite the historical tendency f=</span><br><span>or lame duck presidential budgets to be treated as scrap paper -- this one w=</span><br><span>on't even be accorded the courtesy of a hearing in House Budget -- there are=</span><br><span>a few noteworthy proposals and initiatives which, if nothing else, are like=</span><br><span>ly to generate discussion on the Hill and off. &amp;nbsp;&lt;/span&gt;&lt;br&gt;&lt;/blockquote=</span><br><blockquote type="cite"><span>&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;/blockquote&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquot=</span><br></blockquote><span>e type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;blockquote type=3D"cite"&gt;&lt;span&gt;Th=</span><br><span>at=E2=80=99s the real purpose of this budget -- to help frame the debate in 2=</span><br><span>016 about where America is headed what the nation's priorities should be. &amp;n=</span><br><span>bsp;A number of the proposals in this budget resonate with issues and themes=</span><br><span>already being debated. &amp;nbsp;Candidates in particular seeking to emphasi</span></div></div></body></html>