Dec 18, 2017

Last-minute tax break for real estate investors "air dropped" on Capitol Hill

House Ways and Means Committee Chairman Rep. Kevin Brady, R-Texas., speaks to reporters on Capitol Hill. Photo: Susan Walsh / AP

"Trump, Real Estate Investors Get Last-Minute Perk in Tax Bill," by Bloomberg's Lynnley Browning and Benjamin Bain report: "Lawmakers scrambling to lock up Republican support for the tax reform bill added a complicated provision late in the process — one that would provide a multimillion-dollar windfall to real estate investors such as President Donald Trump."

"The change, which would allow real estate businesses to take advantage of a new tax break that's planned for partnerships, limited liability companies and other so-called 'pass-through' businesses, combined elements of House and Senate legislation in a new way."

  • "Republican Senator Bob Corker of Tennessee ... wrote [yesterday] to Senate Finance Committee Chairman Orrin Hatch seeking an explanation for how the provision came to be included in the final bill after being asked about it by a reporter."
  • Corker: "The suggestion was that it was airdropped into the conference without prior consideration by either the House or the Senate."

N.Y. Times Quote of the Day: Jeff Lajqi, manager of a Jewish deli in Livingston, N.J., where residents worry about the economic shock from Republican plan to limit how much property tax they can deduct on federal returns: "If they're raising the taxes, you know what's going to happen: Everyone's going to raise prices. Raise my taxes, I raise your challah."

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Why it matters: Navarro did not deny reporting from Axios' Jonathan Swan that he got into a heated exchange in the White House Situation Room over the weekend with infectious disease expert Dr. Anthony Fauci about the drug's prospects against the illness.

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Photo Illustration: Sarah Grillo/Axios. Photos: Angela Weiss/AFP via Getty Images, Bruce Bennett/Getty Images, and Europa Press News/Europa Press via Getty Images

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Backed by the Fed, bond investors get bullish

Illustration: Sarah Grillo/Axios

The Fed's massive injections of liquidity have reopened much of the bond market, and after back-to-back weeks in which more than $100 billion flowed out of bond funds, investors have regained their bearings and now see opportunity.

What's happening: But after the hemorrhaging outflows relented last week, bulls may now be sticking their heads out a bit too far. Junk bond funds took in more than $7 billion for the week ended April 1, according to Refinitiv Lipper, setting a new weekly record.