Oct 31, 2017

Venture capital's wish list for GOP tax plan

Rep. Kevin Grady (R-TX), chair of the House Ways & Means Committee

Justin Field, VP of government affairs for the National Venture Capital Association, talks to Axios about what he's hoping for when the House GOP unveils its plan tomorrow.

Broad stokes: "There has been a lot of talk about making existing large companies and small businesses more competitive, but we also want focus on how tax reform can increase startup formation."

VC wish list:

  • Retain existing tax treatment of carried interest.
  • Improve R&D tax credits for startups.
  • Create safe harbor for startups from net operating loss limitation rules.
  • Simplify qualified small biz stock rules.

Horror story: Anything that reminds the NVCA of the plan put forth in 2014 by former GOP Congressman Dave Camp.

Money matters: The NVCA's political action committee donated $5,000 to Rep. Kevin Brady (R-TX), who is leading the House GOP's tax-writing group, this past March.

Go deeper: Axios' Caitlin Owens reports on how the Senate's plan is shaping up. Worth noting that both chambers seem to be warming to the idea of phasing in that 20% corporate rate.

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Airline industry braces for a forever-changed world

Illustration: Sarah Grillo/Axios

The airline industry got a $58 billion lifeline in the coronavirus federal aid package. But the path is unclear for these companies, whose operations and prospects will be forever changed by the global pandemic.

Why it matters: People may want to minimize travel for the foreseeable future. Investors, analysts and industry watchers are trying to determine how much airlines will need to spend — and how much more in lost revenue they'll see — while they adapt to the new reality.

Trump denies seeing Navarro memos warning about toll of coronavirus

President Trump said at a press briefing Tuesday that he "didn't see" memos from his trade adviser Peter Navarro warning in January and February that the coronavirus crisis could kill more than half a million Americans and cost close to $6 trillion.

Why it matters: Trump insisted that despite not seeing the memos, he did "more or less" what Navarro suggested by banning non-U.S. citizens from traveling from China effective Feb. 2.

Acting Navy secretary resigns over handling of virus-infected ship

Thomas Modly. Photo: Chip Somodevilla/Getty Images

Acting Navy Secretary Thomas Modly resigned Tuesday after apologizing for comments he made about Capt. Brett Crozier, who was removed when a letter he wrote pleading with the Navy to address the coronavirus outbreak aboard the USS Theodore Roosevelt was leaked to the press. The resignation was first reported by Politico.

Why it matters: The controversy over Crozier's removal was exacerbated after audio leaked of Modly's address to the crew, in which he said Crozier was either "too naive or too stupid to be a commanding officer of a ship like this." After initially backing Modly's decision, President Trump said at a briefing Monday that he would "get involved."

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