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    To Juice the Economy, Biden Bets on the Poor

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    #masthead-section-label, #masthead-bar-one { display: none }The Jobs CrisisCurrent Unemployment RateWhen the Checks Run OutThe Economy in 9 ChartsThe First 6 MonthsAdvertisementContinue reading the main storySupported byContinue reading the main storynews analysisTo Juice the Economy, Biden Bets on the PoorMr. Biden’s bottom-up $1.9 trillion aid package is a sharp reversal from the tax cut bill that was President Donald J. Trump’s first big legislative victory.Volunteers distributing food on Monday in Warren, Mich. President Biden’s economic relief plan overwhelmingly helps low earners and the middle class and is more focused on people than on businesses.Credit…Elaine Cromie for The New York TimesPublished More

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    Democrats to Unveil Up to $3,600 Child Tax Credit as Part of Stimulus Bill

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    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesSee Your Local RiskVaccine InformationCalifornia Anti-Vaccine ProtestsAdvertisementContinue reading the main storySupported byContinue reading the main storyDemocrats to Unveil Up to $3,600 Child Tax Credit as Part of Stimulus BillThe credit would send monthly payments to millions of Americans under certain income thresholds for a year starting in July.“This money is going to be the difference in a roof over someone’s head or food on their table,” said Representative Richard E. Neal of Massachusetts.Credit…Anna Moneymaker for The New York TimesEmily Cochrane and Feb. 7, 2021, 5:20 p.m. ETWASHINGTON —  Top House Democrats are preparing to unveil legislation that would send up to $3,600 per child to millions of Americans, as lawmakers aim to change the tax code to target child poverty rates as part of President Biden’s sweeping $1.9 trillion stimulus package.The proposal would expand the child tax credit to provide $3,600 per child younger than 6 and $3,000 per child up to 17 over the course of a year, phasing out the payments for Americans who make more than $75,000 and couples who make more than $150,000. The draft 22-page provision, reported earlier by The Washington Post and obtained by The New York Times, is expected to be formally introduced on Monday as lawmakers race to fill out the contours of Mr. Biden’s stimulus plan.“The pandemic is driving families deeper and deeper into poverty, and it’s devastating,” said Representative Richard E. Neal of Massachusetts, the chairman of the Ways and Means Committee and one of the champions of the provision. “This money is going to be the difference in a roof over someone’s head or food on their table. This is how the tax code is supposed to work for those who need it most.”The credits would be split into monthly payments from the Internal Revenue Service beginning in July, based on a person’s or family’s income in 2020. Although the proposed credit is only for a year, some Democrats said they would fight to make it permanent, a sweeping move that could reshape efforts to fight child poverty in America.The one-year credit appears likely to garner enough support to be included in the stimulus package, but it will also have to clear a series of tough parliamentary hurdles because of the procedural maneuvers Democrats are using to muscle the stimulus package through, potentially without Republican support.With House Democratic leadership aiming to have the stimulus legislation approved on the chamber floor by the end of the month, Congress moved last week to fast-track Mr. Biden’s stimulus plan even as details of the legislation are still being worked out. Buoyed by support from Democrats in both chambers and a lackluster January jobs report, Mr. Biden has warned that he plans to move ahead with his plan whether or not Republicans support it.Republicans, who have accused Mr. Biden of abandoning promises of bipartisanship and raised concerns about the nation’s debt, have largely balked at his plan because of its size and scope after Congress approved trillions of dollars in economic relief in 2020.The Coronavirus Outbreak More

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    Ghosts of 2009 Drive Democrats’ Push for Robust Crisis Response

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    #masthead-section-label, #masthead-bar-one { display: none }The New WashingtonLatest UpdatesExpanding Health CoverageBiden’s CabinetPandemic ResponseAdvertisementContinue reading the main storySupported byContinue reading the main storyNews AnalysisGhosts of 2009 Drive Democrats’ Push for Robust Crisis ResponseIn their quest for Republican backing, Democrats say they missed opportunities in 2009 for a stronger response to the Great Recession. They are determined not to repeat the mistake.Senator Chuck Schumer of New York, the new majority leader, at the Capitol on Wednesday. “We should have learned the lesson of 2008 and 2009, when Congress was too timid and constrained in its response to the financial crisis,” he said last week.Credit…Oliver Contreras for The New York TimesJan. 31, 2021Updated 5:27 p.m. ETWASHINGTON — Ten Republican senators asked President Biden on Sunday to drastically scale back his $1.9 trillion pandemic aid bill, offering a $600 billion alternative that they said could pass quickly with bipartisan support.But their proposal met a tepid reception from Democrats, who are preparing this week to move forward with their own sweeping package — even if it means eventually cutting Republicans out of the process. Haunted by what they see as their miscalculations in 2009, the last time they controlled the government and faced an economic crisis, the White House and top Democrats are determined to move quickly this time on their stimulus plan, and reluctant to pare it back or make significant changes that would dilute it with no certainty of bringing Republicans on board.“The dangers of undershooting our response are far greater than overshooting,” said Senator Chuck Schumer, Democrat of New York and the new majority leader. “We should have learned the lesson of 2008 and 2009, when Congress was too timid and constrained in its response to the financial crisis.”Their strategy can be traced to 12 years ago, when Barack Obama became president, Democrats controlled both houses of Congress, and they tackled both an economic rescue package and a sweeping health care overhaul.In retrospect, in the quest to win Republican backing for both, Democrats say, they settled for too small an economic stimulus and extended talks on the health care measure for too long. That view was driving the party’s unenthusiastic response on Sunday to the new offer from the Senate Republicans who asked for a meeting with Mr. Biden to lay out a substantially smaller stimulus proposal. In a letter, the 10 senators — notably enough to defeat a filibuster — said their priorities aligned with Mr. Biden’s on crucial areas such as vaccine distribution.But members of the group made clear in interviews on Sunday that their plan amounted to less than a third of Mr. Biden’s proposal. Democrats said they would review it, but would insist on a comprehensive legislative response.While talks with Republicans are expected to continue, Democrats are set this week to put in motion a budget process known as reconciliation that is not subject to a filibuster, allowing them to push through pandemic legislation on their own if no bipartisan agreement emerges.That possibility has Republicans squawking that Democrats are abandoning their bipartisan pledge without giving it a chance and warning that the effort will poison their ability to reach bipartisan deals. The objection ignores the fact that when they controlled Congress, Republicans rolled over Democrats in January 2017 and began their own reconciliation process even before Donald J. Trump was sworn in as president, paving the way for the enactment of a $1.5 trillion tax package that was muscled through without a single Democratic vote.“We’re giving an opportunity to come together on important and timely legislation, so why wouldn’t you do that rather than trying to move it through with reconciliation and having a fully partisan product?” asked Senator Lisa Murkowski, Republican of Alaska and one of the signers of the new letter.While they have yet to roll out their plan, members of the group said it would omit Democrats’ proposal for a federal minimum wage increase and scale back direct stimulus payments to individuals, excluding Americans earning more than $50,000 a year or families with a combined income exceeding $100,000.“Let’s focus on those who are struggling,” Senator Rob Portman, Republican of Ohio, said on the CNN program “State of the Union” on Sunday.But to Democrats, the scars from 2009 cut deep. First, they believe they were too accommodating to Republicans, who called for restraint in providing stimulus for the economy. Then Democrats saw themselves as sandbagged by Republicans who engaged in prolonged negotiations over health care before pulling the plug entirely, opposing legislation that they had helped draft and inflaming a partisan fight that cost Democrats dearly in the 2010 midterm elections.This time, Democrats say the new aid must be robust and delivered quickly. They do not intend to allow Republicans to dictate the timing nor the reach of the legislation.“I’m not going to let Republican senators stall for the sole purpose of stalling,” Senator Ron Wyden, Democrat of Oregon and the incoming chairman of the Senate Finance Committee, said on a conference call hosted by the advocacy group Invest in America. He added that his view grew out of his own experience serving as a junior member of the panel during the Great Recession.Mr. Biden would no doubt prefer to push his proposal through with bipartisan support to show he is able to bridge the differences between the two parties. But the White House has been adamant that it will not chop up his plan to try to secure Republican backing and that while the scope could be adjusted, the changes will not be too substantial.“We have learned from past crises that the risk is not doing too much,” Mr. Biden, who was vice president in 2009, said on Friday at the White House, striking the same theme as Mr. Schumer. “The risk is not doing enough.”Like Mr. Biden this year, Mr. Obama entered the White House in 2009 optimistic he could cooperate with Republicans, and there had been promising signs in 2008. In the face of a dire economic emergency, congressional Republicans, Democrats and George W. Bush’s administration had worked closely to approve the $700 billion Wall Street bailout. Republicans also seemed dispirited by steep election losses in November, suggesting some might be open to cooperation.But to an extent that was not immediately apparent, top Republicans in the House and Senate quickly decided that their best path to reclaiming power was to remain united against Mr. Obama’s agenda, a stance Republicans later acknowledged.As a result, the administration and Democratic leaders had to make multiple concessions to ensure the votes of three Republicans and a few moderate Democrats needed to provide the bare minimum of 60 votes to overcome deep Republican opposition to the stimulus package. That meant holding the amount to $787 billion, less than what some economists at the time said was needed, and potentially slowing the recovery.President Obama speaking about health care in 2009. Democrats say they settled for too small an economic stimulus to gain needed Republican support while also extending talks on health care for too long.Credit…Stephen Crowley/The New York TimesThen came the health care law. Democrats were determined to both expand access to affordable health insurance and to work with Republicans in doing so. They were also concerned then about repeating past mistakes, particularly the Clinton health care effort in 1994, whose spectacular collapse was attributed partly to a failure to involve Republicans from the start.While many Republicans were considered out of reach in 2009, a group of three senators influential on health care policy — Charles E. Grassley of Iowa, Mike Enzi of Wyoming and Olympia Snowe of Maine — engaged in lengthy negotiations with three Democratic counterparts, in a group that came to be known as the Gang of Six.To bring them along, Democrats proposed a market-based approach rather than the kind of government-run, single-payer program sought by many liberals. They even eschewed a limited public option to mollify Republicans and some moderate Democrats. Still, the talks dragged, and Republicans began pulling back amid a rash of raucous protests at congressional town hall events across the country.Frustrated and believing Democrats were being strung along, Mr. Obama in September 2009 summoned Mr. Grassley to the White House along with Senator Max Baucus, Democrat of Montana, who was leading the Gang of Six.Mr. Obama recounted the scene in his new memoir, writing that he had pressed Mr. Grassley on whether, “if Max took every one of your latest suggestions, could you support the bill?” Mr. Grassley was hesitant. “Are there any changes — any at all — that would get us your vote?” Mr. Obama asked, drawing what he described as an awkward silence from the Republican senator.“I guess not, Mr. President,” Mr. Grassley eventually responded.As they plunge forward this year, Democrats say they do not want to find themselves in a similar position, working with Republicans only to come up short with an insufficient response that does not draw bipartisan support.Some Democrats still hold out hope of reaching bipartisan agreement on at least some elements of the administration’s coronavirus response and say the party must make a legitimate attempt to come together with Republicans.“We ought to try to do what we can do in a bipartisan way,” Senator Joe Manchin III of West Virginia, a leading Democrat in the bipartisan talks, told reporters. He said it would then be appropriate for Mr. Schumer to use “other means to move things along” if progress could not be made.Emily Cochrane More

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    ‘We Need to Stabilize’: Big Business Breaks With Republicans

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    #masthead-section-label, #masthead-bar-one { display: none }Capitol Riot FalloutInside the SiegeVisual TimelineNotable ArrestsCapitol Police in CrisisAdvertisementContinue reading the main storySupported byContinue reading the main story‘We Need to Stabilize’: Big Business Breaks With RepublicansLow taxes and light regulation made the party popular with corporate America for decades. President Trump and his supporters have frayed those bonds.After the deadly Capitol rampage by President Trump’s supporters, corporate America is flexing its political muscle like never before.Credit…Kenny Holston for The New York TimesJan. 15, 2021The longstanding alliance between big business and the Republican Party is being tested as never before.As President Trump and his allies sought to overturn the election results in recent months, chief executives condemned their efforts and called on Republicans to stop meddling with the peaceful transfer of power.Now, in the aftermath of the deadly Capitol rampage by Mr. Trump’s supporters, corporate America is turning its back on many senior Republicans, and flexing its political muscle.One major trade group called on Mr. Trump’s cabinet to consider removing him from office. Dozens of companies, from AT&T to Walmart, have said they will no longer donate to members of Congress who opposed the Electoral College certification of President-elect Joseph R. Biden Jr.And a senior House Democrat asked big banks and other financial services companies on Friday to stop processing financial transactions for people and organizations that participated in the Capitol riot.Tim Ryan, the chief executive of PWC, who said his firm was among those suspending donations to members who voted against certification, called for the country to come together. “I believe this is the best country in the world, and we can’t let all that go to hell in a handbasket,” he said. “We need to stabilize. We need certainty.”He added, “If we can’t come together, can’t stabilize, or if it got worse, it wouldn’t be good for business.”The proclamations of chief executives might not normally matter much in political discourse, and there are some who are skeptical that their motives are anything beyond self-interest. But in a fractured moment, the unified voice of the mainstream business world carries a great deal of symbolic heft.A recent study by Edelman found that the public trusts business more than nonprofit organizations, the government or the media.“This thing was a little different. I mean, we had sedition and insurrection in D.C.,” said Jamie Dimon, the chief executive of JPMorgan Chase.Credit…Sarah Silbiger/The New York Times“They’re not just the money,” said Nancy Koehn, a historian at Harvard Business School. “They’re also this collective seal of approval. They carry an enormous amount of weight, regardless of your political loyalties.”For decades, the Republicans were seen as the party of big business. Their support for low taxes and light regulation was manna to executives eager to raise profits and avoid government entanglements, and chief executives and big companies were reliable funders of Republicans up and down the ballot.Mr. Trump has frayed those bonds. Four years ago, few major chief executives supported Mr. Trump during his first campaign. And throughout his time in the White House, executives from many of the company’s biggest brands publicly sparred with the president on everything from gun control to climate change to immigration.“I can’t remember a time when the business community has spoken out so strongly in opposition to an administration on so many important issues,” said Rich Lesser, chief executive of Boston Consulting Group.“It’s not just a break with Trump but potentially with the Republican Party,” said Richard Edelman, chief executive of the global corporate communications firm Edelman. “It’s not OK what’s going on in America, and businesspeople are going to hold you to account.”Even as they objected to some of Mr. Trump’s stances, however, business leaders continued to take seats at the table, working with the Trump administration on issues including taxes and trade policy.But last week seemed to be a breaking point. Big business could evidently tolerate working with Mr. Trump despite his chauvinism, his flirtations with white nationalism and his claims of impunity, but the president’s apparent willingness to undermine democracy itself appeared to be a step too far.“This thing was a little different. I mean, we had sedition and insurrection in D.C.,” said Jamie Dimon, the chief executive of JPMorgan Chase. “No C.E.O. I know condones that in any way, shape or form. We shouldn’t have someone, you know, gassing up a mob.”The fallout has been swift. After the president exhorted his supporters to march on the Capitol, chief executives used their strongest language to date to repudiate Mr. Trump, and some of his longtime allies have walked away. Ken Langone, the billionaire co-founder of Home Depot and an ardent supporter of the president, renounced Mr. Trump, telling CNBC, “I feel betrayed.”Twitter, Facebook and YouTube have banned or suspended Mr. Trump’s accounts. Amazon, Apple and Google have cut ties with Parler, a messaging app popular among his supporters.Charles Schwab, the brokerage firm founded by a Republican who supported Mr. Trump, said it would shut down its political action committee altogether. And many companies, along with the U.S. Chamber of Commerce, have sought to punish Mr. Trump’s supporters in Congress by depriving them of crucial funds.“For those members of Congress that were involved in helping to incite the riot, and support the riot, there’s going to be consequences, no question about it,” said Ed Bastian, chief executive of Delta Air Lines.Senator Ted Cruz fist bumped with a House member after a joint session of Congress to confirm the Electoral College presidential votes on Jan. 6.Credit…Erin Schaff/The New York TimesA total of 147 members, or more than half of Republicans in Congress, voted to overturn the election results, including Senators Ted Cruz and Josh Hawley, and the House minority leader, Kevin McCarthy.Corporate giving represents a small but important part of overall campaign contributions. Company PACs gave $91 million to members of the House of Representatives in the last election cycle, accounting for 8 percent of that chamber’s total funds raised, according to figures compiled by the Center for Responsive Politics. In the Senate, the figure was smaller, accounting for just 3 percent of donations..css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-c7gg1r{font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:0.875rem;line-height:0.875rem;margin-bottom:15px;color:#121212 !important;}@media (min-width:740px){.css-c7gg1r{font-size:0.9375rem;line-height:0.9375rem;}}.css-rqynmc{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.9375rem;line-height:1.25rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-rqynmc{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-rqynmc strong{font-weight:600;}.css-rqynmc em{font-style:italic;}.css-yoay6m{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}@media (min-width:740px){.css-yoay6m{font-size:1.25rem;line-height:1.4375rem;}}.css-1dg6kl4{margin-top:5px;margin-bottom:15px;}.css-16ed7iq{width:100%;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:center;-webkit-justify-content:center;-ms-flex-pack:center;justify-content:center;padding:10px 0;background-color:white;}.css-pmm6ed{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;}.css-pmm6ed > :not(:first-child){margin-left:5px;}.css-5gimkt{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.8125rem;font-weight:700;-webkit-letter-spacing:0.03em;-moz-letter-spacing:0.03em;-ms-letter-spacing:0.03em;letter-spacing:0.03em;text-transform:uppercase;color:#333;}.css-5gimkt:after{content:’Collapse’;}.css-rdoyk0{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;-webkit-transform:rotate(180deg);-ms-transform:rotate(180deg);transform:rotate(180deg);}.css-eb027h{max-height:5000px;-webkit-transition:max-height 0.5s ease;transition:max-height 0.5s ease;}.css-6mllg9{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;position:relative;opacity:0;}.css-6mllg9:before{content:”;background-image:linear-gradient(180deg,transparent,#ffffff);background-image:-webkit-linear-gradient(270deg,rgba(255,255,255,0),#ffffff);height:80px;width:100%;position:absolute;bottom:0px;pointer-events:none;}#masthead-bar-one{display:none;}#masthead-bar-one{display:none;}.css-1cs27wo{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;}@media (min-width:740px){.css-1cs27wo{padding:20px;}}.css-1cs27wo:focus{outline:1px solid #e2e2e2;}.css-1cs27wo[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-1cs27wo[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-1cs27wo[data-truncated] .css-5gimkt:after{content:’See more’;}.css-1cs27wo[data-truncated] .css-6mllg9{opacity:1;}.css-k9atqk{margin:0 auto;overflow:hidden;}.css-k9atqk strong{font-weight:700;}.css-k9atqk em{font-style:italic;}.css-k9atqk a{color:#326891;-webkit-text-decoration:none;text-decoration:none;border-bottom:1px solid #ccd9e3;}.css-k9atqk a:visited{color:#333;-webkit-text-decoration:none;text-decoration:none;border-bottom:1px solid #ddd;}.css-k9atqk a:hover{border-bottom:none;}Capitol Riot FalloutFrom Riot to ImpeachmentThe riot inside the U.S. Capitol on Wednesday, Jan. 6, followed a rally at which President Trump made an inflammatory speech to his supporters, questioning the results of the election. Here’s a look at what happened and the ongoing fallout:As this video shows, poor planning and a restive crowd encouraged by President Trump set the stage for the riot.A two hour period was crucial to turning the rally into the riot.Several Trump administration officials, including cabinet members Betsy DeVos and Elaine Chao, announced that they were stepping down as a result of the riot.Federal prosecutors have charged more than 70 people, including some who appeared in viral photos and videos of the riot. Officials expect to eventually charge hundreds of others.The House voted to impeach the president on charges of “inciting an insurrection” that led to the rampage by his supporters.Some companies said they were only temporarily stopping their corporate giving, but executives were sending a clear message that they were fed up with Washington.“It’s just a sad time for our country,” said Chuck Robbins, the chief executive of Cisco, which is also halting donations to members who voted against certification. “At a time where we have so many challenges, the partisanship is astounding.”With political rancor worsening by the day and few politicians enjoying bipartisan support, business leaders have emerged as a uniquely potent force, the rare constituency whose pleas for stability and national unity are largely untainted by allegiance to one party or the other.“C.E.O.s have become the fourth branch of government,” said Jonathan Greenblatt, chief executive of the Anti-Defamation League, which has pressured big companies to take stands on social issues. “They’re trying to hold the country together.”Executives are confronting their newfound authority with a mix of swagger and reticence. “There’s no question that our voice is seen as more important than ever,” said Mr. Bastian of Delta, which said it was reviewing its political giving and has banned some pro-Trump protesters from its flights.But the impulse to speak out is tempered by a wariness about becoming too prescriptive. “Companies don’t want to take partisan points of view,” Mr. Dimon said. “I don’t want to tell my employees what to think.”At stake is much more than just the fortunes of Mr. Trump. With the democratic process itself appearing in jeopardy, executives are confronting broader concerns about what that might mean for the economy.“The erosion of norms and the destabilizing of democracy is bad for business,” Mr. Greenblatt said.Yet with many Republicans still aligned with Mr. Trump and more unrest on the horizon, companies may be forced to reckon with this version of the Republican Party for years to come.Cisco said it would no longer donate to members who opposed the election certification, for instance, but Mr. Robbins said that did not represent a wholesale split from Republicans. “There are plenty of members in the Republican Party who stood up and did the right thing last week that we’ll continue to support,” he said.But for those who interfered with the certification of the election, there are no signs that big business is prepared to forgive and forget. JPMorgan said it was pausing all political contributions for six months, and Mr. Dimon, who has flirted with a run for president in the past, was unsparing in his critique.“No one thought they were giving money to people who supported sedition,” he said.AdvertisementContinue reading the main story More

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    Buried in Covid Relief Bill: Billions to Soothe the Richest

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    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesThe Stimulus DealThe Latest Vaccine InformationF.A.Q.AdvertisementContinue reading the main storySupported byContinue reading the main storyBuried in Pandemic Aid Bill: Billions to Soothe the RichestThe voluminous coronavirus relief and spending bill that blasted through Congress on Monday includes provisions — good, bad and just plain strange — that few lawmakers got to read.Senator Joe Manchin III, Democrat of West Virginia, at the Capitol last week. He said leadership intentionally waited until the last minute to unveil final proposals to the spending bill.Credit…Anna Moneymaker for The New York TimesLuke Broadwater, Jesse Drucker and Dec. 22, 2020WASHINGTON — Tucked away in the 5,593-page spending bill that Congress rushed through on Monday night is a provision that some tax experts call a $200 billion giveaway to the rich.It involves the tens of thousands of businesses that received loans from the federal government this spring with the promise that the loans would be forgiven, tax free, if they agreed to keep employees on the payroll through the coronavirus pandemic.But for some businesses and their high-paid accountants, that was not enough. They went to Congress with another request: Not only should the forgiven loans not to be taxed as income, but the expenditures used with those loans should be tax deductible.“High-income business owners have had tax benefits and unprecedented government grants showered down upon then. And the scale is massive,” said Adam Looney, a fellow at the Brookings Institution and a former Treasury Department tax official in the Obama administration, who estimated that $120 billion of the $200 billion would flow to the top 1 percent of Americans.The new provision allows for a classic double dip into the Payroll Protection Program, as businesses get free money from the government, then get to deduct that largess from their taxes.And it is one of hundreds included in a huge spending package and a coronavirus stimulus bill that is supposed to help businesses and families struggling during the pandemic but, critics say, swerved far afield. President Trump on Tuesday night blasted it as a disgrace and demanded revisions.“Congress found plenty of money for foreign countries, lobbyists and special interests, while sending the bare minimum to the American people who need it,” he said in a video posted on Twitter that stopped just short of a veto threat.The measure includes serious policy changes beyond the much-needed $900 billion in coronavirus relief, like a simplification of federal financial aid forms, measures to address climate change and a provision to stop “surprise billing” from hospitals when patients unwittingly receive care from physicians out of their insurance networks.But there is also much grumbling over other provisions that lawmakers had not fully reviewed, and a process that left most of them and the public in the dark until after the bill was passed. The anger was bipartisan.“Members of Congress have not read this bill. It’s over 5000 pages, arrived at 2pm today, and we are told to expect a vote on it in 2 hours,” Representative Alexandria Ocasio-Cortez, Democrat of New York, tweeted on Monday. “This isn’t governance. It’s hostage-taking.”Senator Ted Cruz, Republican of Texas, agreed — the two do not agree on much.“It’s ABSURD to have a $2.5 trillion spending bill negotiated in secret and then—hours later—demand an up-or-down vote on a bill nobody has had time to read,” he tweeted on Monday.The items jammed into the bill are varied and at times bewildering. The bill would make it a felony to offer illegal streaming services. One provision requires the C.I.A. to report back to Congress on the activities of Eastern European oligarchs tied to President Vladimir V. Putin of Russia. The federal government would be required to set up a program aimed at eradicating the murder hornet and to crack down on online sales of e-cigarettes to minors.It authorizes 93 acres of federal lands to be used for the construction of the Teddy Roosevelt Presidential Library in North Dakota and creates an independent commission to oversee horse racing, a priority of Senator Mitch McConnell, Republican of Kentucky and the majority leader.Mr. McConnell inserted that item to get around the objections of a Democratic senator who wanted it amended, but he received agreement from other congressional leaders.Alexander M. Waldrop, the chief executive of the National Thoroughbred Racing Association, said on Tuesday that Mr. McConnell had “said many times he feared for the future of horse racing and the impact on the industry, which of course is critical to Kentucky.”The Coronavirus Outbreak More

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    Coronavirus Stimulus Bolsters Biden, Shows Potential Path for Agenda

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    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesThe Stimulus DealThe Latest Vaccine InformationF.A.Q.AdvertisementContinue reading the main storySupported byContinue reading the main storyNEWS AnalysisPandemic Aid Bolsters Biden and Shows Potential Path for His Agenda in CongressWorking together with the president-elect, bipartisan groups in the Senate and House helped push feuding leaders to compromise. It could be a template for the future.Rather than face an immediate and dire need to act on a pandemic package, President-elect Joseph R. Biden Jr. and his team can take time to try to fashion a more far-reaching recovery program next month.Credit…Erin Schaff/The New York TimesDec. 21, 2020Updated 7:10 p.m. ETProducing it was a torturous, time-consuming affair that did nothing to improve Congress’s reputation for dysfunction. But the agreement on a new pandemic aid package showed the ascendance of moderates as a new force in a divided Senate and validated President-elect Joseph R. Biden Jr.’s belief that it is still possible to make deals on Capitol Hill.Along with struggling Americans and businesses, the new president was a major beneficiary of the $900 billion pandemic stimulus measure that Congress haltingly but finally produced on Sunday and was on track to approve late Monday, which will give him some breathing room when he enters the White House next month. Rather than face an immediate and dire need to act on an emergency economic aid package, Mr. Biden and his team can instead take a moment to try to fashion a more far-reaching recovery program and begin to tackle other issues.“President-elect Biden is going to have an economy that is healthier,” said Senator Mark Warner, Democrat of Virginia and one of the chief players in a breakaway effort by centrists in the Senate and House that led to the compromise. “This is a significant financial injection into the economy at a time that is critical.”The group of moderates was essential to the outcome, pushing Senate and House leaders of both parties into direct personal negotiations that they had avoided for months, and demonstrating how crucial they are likely to be to Mr. Biden. “I’m glad we forced the issue,” said Senator Susan Collins, the Maine Republican who, along with Senator Joe Manchin III, Democrat of West Virginia, were leaders of a monthslong effort to break the impasse over pandemic aid even as the virus exacted a growing economic and health toll on the country.Given the slender partisan divides that will exist in both the Senate and House next year, the approach could provide a road map for the Biden administration if it hopes to break through congressional paralysis, especially in the Senate, and pass additional legislation. Mr. Biden has said another economic relief plan will be an early priority.“I believe it is going to be the only way we are going to accomplish the president-elect’s agenda in the next two years,” said Representative Josh Gottheimer, Democrat of New Jersey and a leader of the 50-member bipartisan Problem Solvers Caucus that took part in forging the compromise. “In the long run, this is the way to govern.”But the extraordinarily difficult time Congress had in coming to agreement over pandemic legislation again showed the difficulty of the task Mr. Biden faces. Almost every influential member of the House and Senate acknowledged that the relief was sorely needed, but it was impeded in part by last-minute Republican attempts to undercut Mr. Biden’s future authority. Some Republicans are already suggesting that the latest package should tide over the nation for an extended period, with no additional relief necessary for some time.Senators Mark Warner of Virginia, left, Susan Collins of Maine and Joe Manchin III of West Virginia were part of a moderate bipartisan group that helped negotiate the legislation.Credit…Anna Moneymaker for The New York TimesMr. Biden on Sunday applauded the willingness of lawmakers to “reach across the aisle” and called the effort a “model for the challenging work ahead for our nation.” He was also not an idle bystander in the negotiations.With Republican and Democratic leaders in the House and Senate far apart on how much they were willing to accept in new pandemic spending, Mr. Biden on Dec. 2 threw his support behind the $900 billion plan being pushed by the centrist group. The total was less than half of the $2 trillion that Speaker Nancy Pelosi and Senator Chuck Schumer, Democrat of New York, had been insisting on.The Coronavirus Outbreak More