On The Money: Key GOP chairman endorses Trump's new tax cuts | WH warns of ‘costs of socialism‘ ahead of midterms | Volcker worries US descending into 'plutocracy'

View in your browser     Happy Tuesday and welcome back to On The Money. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N. Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis.   THE BIG DEAL -- Key GOP chairman endorses Trump's new tax cut promise: House Ways and Means Committee Chairman Kevin Brady (R-Texas) said Tuesday that the House would work with President Trump on a new round of tax cuts if Republicans keep control of both chambers in the midterm elections next month. "We will continue to work with the White House and Treasury over the coming weeks to develop an additional 10 percent tax cut focused specifically on middle-class families and workers, to be advanced as Republicans retain the House and Senate," Brady said in a statement. Brady's comments came days after the president caught Congress and the administration off guard by promising a new round of tax cuts before the November midterm elections. Congress is in recess until after the Nov. 6 election. Trump later said that the cuts would take place after polls close next month.   Top White House economic adviser Larry Kudlow on Tuesday also lowered expectations that the tax cut would come to fruition shortly after the November midterm elections. "It may not surface for a while. But that's his goal. That's his policy intent. I don't see anything wrong with that," Kudlow told reporters at the White House. "Promises made, promises kept," he said. "Take him seriously when he comes out with these things. That's been his pattern for a long time. People should not underestimate that."   ON TAP TOMORROW The American Enterprise Institute hosts a two-day conference on housing markets and finance, 8:15 a.m. The Brookings Institution hosts an event on financial tools for U.S. policy toward Nicaragua and Venezuela with Treasury Assistant Secretary Marshall Billingslea, 11 a.m.   LEADING THE DAY White House report warns of the 'costs of socialism' ahead of midterms: The White House on Tuesday issued a report warning of the dangers of socialism two weeks ahead of pivotal midterm elections. The report from the White House Council of Economic Advisers fits with a larger campaign strategy from Republicans trying to portray Democrats as extremists for ideas gaining traction in their party, including Medicare for All, the health proposal that would provide government-run health insurance to cover everyone.  Some cases cited by the White House report, however, are far from anything that Democrats have actually proposed. The Hill's Peter Sullivan breaks down the bizarre report here.  The report warns against the economic systems of the Soviet Union and Venezuela. The report also makes extreme comparisons between notable communist leaders like Mao Zedong, and political foes of President Trump and possible 2020 presidential candidates such as Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.). "The Chinese leader Mao Zedong, who cited Marxism as the model for his country, described 'the ruthless economic exploitation and political oppression of the peasants by the landlord class,' " the report states. "Expressing similar concerns, current American senators Bernie Sanders and Elizabeth Warren have stated that 'large corporations ... exploit human misery and insecurity, and turn them into huge profits' and 'giant corporations ... exploit workers just to boost their own profits.' "   Other parts of the report do examine policies that some Democrats are proposing, like Medicare for All, which is gaining support on the left, or higher taxes. The report states that Medicare for All would have to be financed through higher taxes and would cause GDP to "fall by 9 percent."   Former Fed chief Volcker warns of US descent into 'plutocracy': Former Federal Reserve Chairman Paul Volcker said in an interview published Tuesday that the United States is "developing into a plutocracy" and suffering from a crisis in good governance. Volcker, 91, told The New York Times that he feared the skill and reputation of the U.S. government has been corroded by self-interested elites shaping law through lobbying and campaign donations. He said the country was "in a hell of a mess in every direction." "Respect for government, respect for the Supreme Court, respect for the president, it's all gone," said Volcker, who was an economic adviser to former President Obama. "Even respect for the Federal Reserve." "How can you run a democracy when nobody believes in the leadership of the country?" he added. I've got more on Volcker's warning here.   Talking Brexit: Edward Luce, the Financial Times Washington columnist, led a panel discussion on the status of Brexit at the Brookings Institution on Tuesday, The Hill's James Wellemeyer reports. The panel comes at a critical point in negotiations between the United Kingdom and the European Union (EU). At the event, Sir Kim Darroch, British Ambassador to the U.S., reaffirmed British Prime Minister Theresa May's claim that the Brexit deal is "95 percent done." Luce highlighted the biggest issue on the table, how Brexit would affect the border between Northern Ireland and Ireland. Darroch pushed back on those worries. "All of us want the same objective: no hard border between Northern Ireland and proper Ireland." But former Irish Minister for European Affairs Lucinda Creighton highlighted the concerns over the issue, saying "there is a legitimate and a really deep emotional concern in Ireland" regarding the future of peace in Northern Island with the border question still open. Douglas Alexander, a senior fellow at the Harvard Kennedy School and the former U.K. Secretary of State for Scotland, also raised the issue that Parliament could reject whatever Brexit deal May's government strikes. "I have my doubts," Alexander said. Amanda Sloat, a Brookings Institution senior fellow and the only American on the panel, called the the lack of U.S. involvement in the Brexit process "surprising" given the strong U.S. efforts to broker peace in Northern Ireland in the past.   GOOD TO KNOW The Treasury Department on Tuesday targeted eight members of the Taliban and Iranian Revolutionary Guard Corps Qods Forces with financial sanctions through a year-old partnership with six Middle Eastern countries. A key Chinese bank is preparing to halt transactions with Iran ahead of imminent U.S. sanctions against Tehran, according to Reuters.  Industrial services powerhouse Caterpillar on Tuesday saw its stock price dive 8 percent when it gave disappointing adjusted earnings guidance for 2018, blamed partly on tariffs imposed by President Trump. Harley-Davidson's sales plunged by 13 percent last quarter after President Trump said he would support a boycott against the company.  Yahoo has said it will pay $50 million in damages and provide free credit-monitoring services to millions of Americans and Israelis following a data breach beginning in 2013 that led to as many as 3 billion accounts being compromised by hackers. Bloomberg Law explains how payday lenders could escape tighter regulation as the Trump-led Consumer Financial Protection bureau considers eliminating a requirement that they first assess borrowers' ability to repay loans. Trump's trade war is already prompting farmers and agricultural forecasters to plan for a dismal 2019 growing season before the fall harvest is complete, according to Politico.    ODDS AND ENDS Hollywood Democrats are pouring money into the midterm elections, infusing races with cash in a last-ditch push to flip control of Congress. E-cigarette company Juul Labs has increased its spending on lobbying by more than 400 percent in the past three months as it faces regulatory threats from the Trump administration and Congress.           Did a friend forward you this email? Sign up for Finance Newsletters     Forward Finance Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2018 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Live coverage: Abrams faces Kemp in Georgia debate showdown

View in your browser     Live coverage: Abrams faces Kemp in Georgia debate showdown Democrat Stacey Abrams and Republican Brian Kemp are set to clash on Tuesday in the first debate of their razor-tight gubernatorial race in Georgia. The race has been marked by sharp attacks from both parties, especially over allegations of voter suppression. Kemp and Abrams are neck-and-neck, according to recent polls, and the race has been rated as a "toss-up" by the Cook Political Report. The two will be joined by libertarian candidate Ted Metz. Follow along with The Hill's live coverage of the debate, due to start at 7 p.m. ET. Read the full story here           Did a friend forward you this email? Sign up for News Alerts     Forward News Alerts     You Might Like       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Energy: Trump slams California over water, fire management | Trump could formally tap Wheeler to lead EPA | Canada outlines carbon tax plans

View in Browser     TRUMP ATTACKS CALIFORNIA OVER WATER: President Trump on Tuesday lobbed a number of attacks at California over the state's water practices and fire management, going as far as threatening to withhold future federal aid. Speaking at an address to the White House State Leadership Day Conference, Trump warned California to "get on the ball" with how it manages its forests and regulates water releases from its dams, insinuating that both practices are responsible for a number of the state's devastating forest fires. "They have lousy management," Trump said. "This is a seriously defective thing there. I thought they had a drought. I didn't realize. They said 'no, we have so much water we don't know what to do with it.' Then you have all the forest fires. We have so much water they could actually water some of it." As of Tuesday, about 48 percent of California's land -- where about 63 percent of the state's population lives -- was experiencing drought, according to the federal government's National Integrated Drought Information System. Trump also threatened to withhold federal aid from the state as a result of future fires. "We're tired of giving California hundreds and hundreds of millions of dollars all the time for their forest fires when you wouldn't have them if they manage their forests properly," he said.   What's behind it: The debate at the heart of Trump's comments rages over the designation of waters from the Sacramento-San Joaquin Delta in California's Central Valley. The water is pumped to 25 million people in Southern California and the Bay Area a well as 3 million acres of farmland in the San Joaquin Valley. But an endangered fish species called the Delta smelt also resides in the waters. Environmentalists warn their numbers are getting lower and scientists argue the best way to save the species is by letting the water flow directly to the Pacific Ocean. Trump's memorandum was hailed by a number of Republican leaders in California's farm heavy Central Valley, including Rep. Devin Nunes (R-Calif), a longtime Trump supporter who first told him of the battle between environmentalists and farmers over the future of water in the state during Trump's presidential campaign. "I saw it on the campaign trail and I saw it numerous times when I was out in that area I look at these incredible, beautiful fields, and they're dry, like dry as a bone," Trump said Tuesday of his previous visit to the region. Read more.   Will Wheeler drop the 'acting'?: Trump indicated Tuesday that he might seek to make acting Environmental Protection Agency (EPA) chief Andrew Wheeler the agency's head on a formal basis. "He's acting, but he's doing well, right? So maybe he won't be so acting so long," Trump said when calling Wheeler up to the stage at the State Leadership Day Conference. "Especially if he gets this done," he said, going on to explain an issue that a Texas port has had in getting permits to dredge their port facilities. Wheeler is limited to 210 days as acting EPA administrator. But a legal provision that applies specifically to EPA might give him the ability to stay in the position longer if needed. Read more.   Happy Tuesday! Welcome to Overnight Energy, The Hill's roundup of the latest energy and environment news. Please send tips and comments to Timothy Cama, tcama@thehill.com, and Miranda Green, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama, @mirandacgreen, @thehill. CLICK HERE to subscribe to our newsletter.   CANADA OUTLINES CARBON TAXES FOR PROVINCES WITHOUT CLIMATE POLICIES: Canada's federal government announced Tuesday it will impose a carbon tax in provinces that don't impose their own carbon pricing policies, though taxpayers will get money back. Prime Minister Justin Trudeau announced the plan in Toronto, promising about C$300 ($229 USD) a year for the average household in Ontario, where the conservative government is resisting the plan, CBC News reported. In rolling out the plan, Trudeau emphasized the predicted consequences of climate change, implicitly accusing opponents of a plan to tax carbon dioxide emissions of denying those consequences. "The problem exists because your political leaders have done far too little about this. Will we kick this can down the road yet again? Or will we show some courage to do what needs to be done," he asked, according to CBC. "Starting next year, it will no longer be free to pollute anywhere in Canada. And we're also going to help Canadians adjust to this new reality." Read more.   TRUMP PICKS FORMER MONSANTO OFFICIAL TO LEAD WILDLIFE SERVICE: Trump plans to nominate a former Monsanto executive to a top position in the Department of the Interior, the White House announced late Monday. Trump will nominate Aurelia Skipwith to be the director of the U.S. Fish and Wildlife Service (FWS). She is currently the deputy assistant secretary for fish, wildlife and parks, a position she was appointed to last year. In that role, she is responsible for the protection of lands and water in national parks and the wildlife refuge system. Skipwith is a biologist and lawyer who spent more than six years at agriculture giant Monsanto. She joined the Department of Agriculture in 2013. As head of FWS, Skipwith would be responsible for areas like the Trump administration's policies for importing trophies from elephant hunts, the nation's more than 560 refuges and the administration's efforts to make Endangered Species Act enforcement better for industry. The FWS said last week that it plans to finalize those changes in November. Skipwith said in a statement that she's honored to be picked. "During the past 18 months as deputy assistant secretary, I have had the distinction to work with dedicated people of the service to ensure the implementation of this administration's and Secretary Zinke's policies to protect our species, increase public access, and ensure science is at forefront of our decisions," she said in a statement. "If confirmed, I look forward to the opportunity to lead the service in achieving a conservation legacy second only to President Teddy Roosevelt." Interior Secretary Ryan Zinke said Skipwith is a "passionate conservationist," and would be an "incredible" FWS director. "She has helped lead some of my top priorities for getting more people to enjoy our public lands, like expanding access for hunting and fishing, recognizing National Urban Refuge Day, and designating sites on the African American Civil Rights Network," he said. Read more.   OUTSIDE THE BELTWAY: HP and Ikea are making new pledges to use ocean plastics in their supply chains, Bloomberg Environment reports. Christopher Faulkner, known widely as the "Frack Master," pleaded guilty to securities fraud, tax evasion and money laundering as part of an $80 million oil and gas scam, the Dallas Morning News reports. Crude oil prices fell to $66.43 per barrel Tuesday, their biggest loss in three months, CNBC reports.   FROM THE HILL'S OPINION SECTION: Jim Talent, a former Republican senator from Missouri, says the crisis over journalist Jamal Khashoggi's alleged murder by Saudi Arabia shows how important it is that the United States not be addicted to Middle Eastern oil.   IN CASE YOU MISSED IT: Check out Tuesday's stories ... - Trump indicates he might formally tap Wheeler to lead EPA - Trump attacks California over water, fire management - Court upholds ban on Mexican seafood imports tied to harming endangered porpoise - Canada to levy carbon tax if provinces don't - Judge cuts award in Monsanto weed-killer cancer case to $78M - Trump to nominate former Monsanto exec to top Interior position         Did a friend forward you this email? Sign up for Energy Newsletters     Forward Energy Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.