Nov 2, 2017

Axios PM

By Mike Allen
Mike Allen

Breaking: "Apple crushes expectations, sees record holiday quarter," from Axios' Ina Fried.

1. Tax rollout day

The House GOP tax plan keeps the 39.6% tax-rate for the wealthiest Americans ($1 million income for married couples) and caps the mortgage interest deduction for newly purchased homes at $500,000 (down from $1 million).

Other key details:

  • Elimination of student loan and medical expense deductions and the adoption tax credit.
  • Repeals the state and local tax deduction, but people can write off the cost of state and local property taxes up to $10,000.
  • Repeals the Alternative Minimum Tax.
  • Doubles the estate tax exemption immediately and repeals the tax in six years.
  • Business interest deductibility capped at 30 of interest.
  • More details.

Why it matters: Lawmakers are finally seeing the full details of the proposal this morning. Already some Republicans had expressed concerns and powerful lobbying groups like homebuilders had expressed opposition.

  • What comes next: Ways and Means Chairman Kevin Brady told reporters this morning he expects an analysis of the bill from the Joint Committee on Taxation later today, but expects it will meet the goal of increasing the deficit by no more than $1.5 trillion.
  • Be smart from Jonathan Swan: This will clear the House, even though you'll hear every complaint under the sun over the next few days. This is a must-pass for House Republicans, watch what happens when it gets to Senate Republicans like Bob Corker, John McCain and Susan Collins.

Go deeper: The winners and losers from this tax proposal.

2. What you missed
  1. It's official: Trump introduced Jerome Powell as his Fed chair nominee today. Highlights.
  2. The polling numbers: 58% of Americans approve of Robert Mueller's Russia probe. Details.
  3. New analysis: In almost every county covered by HealthCare.gov, the poorest consumers will be able to find an insurance plan that won't require them to pay a monthly premium. Take a look.
  4. Big in hedge funds: Robert Mercer is stepping down from Renaissance Capital, and is distancing himself from Breitbart. His statement.
  5. Another House Republican to retire: Lamar Smith won't run for re-election. The list of retirees.
3. 1 neat thing

Scientists have probed Egypt's mysterious Great Pyramid of Giza with tools of modern particle physics and say they have discovered a hidden "void" within its ancient walls. Seriously.

Mike Allen