The Washington Post - USA (2021-10-23)

SATURDAY, OCTOBER 23 , 2021. THE WASHINGTON POST EZ RE A

Economy & Business

INTERNATIONAL TRADE

G-7 nations agree on

data use, digital trade

The Group of Seven wealthy
nations agreed on principles to
govern cross-border data use and
digital trade, Britain said, in
what was described as a
breakthrough that could
liberalize hundreds of billions of
dollars in international
commerce.
Trade ministers from the G-
reached the agreement at a
meeting in London on Friday.
The deal sets out a middle
ground between the h ighly
regulated data protection

regimes used in European countries and the more open approach of the United States. “ We oppose digital protectionism and authoritarianism and today we have adopted the G7 Digital Trade Principles that will guide the G7’s approach to digital trade,” the communique published by Britain said. Digital trade is broadly defined as trade in goods and services that is either enabled or delivered digitally, encompassing activities such as film and TV distribution and professional services. But differing rules governing the use of customer data can

create barriers, particularly for small and medium-size businesses for which compliance is complicated and costly. Friday’s deal is a first step in reducing those barriers and could lead to a common rule book of digital trade. — Reuters

HEALTH INDUSTRY

23andMe buys telehealth service

C onsumer DNA testing giant 23andMe agreed to purchase telehealth upstart and drug- delivery service Lemonaid Health in a bid to make its

personalized genetics approach part of patients’ primary care. 23andMe will pay $ million for Lemonaid, with 25 percent of the purchase price in cash and the rest in stock, according to a statement Friday. The acquisition is expected to close by the end of the year. Chief executive Anne Wojcicki founded 23andMe in 2006 with the aim of not only selling tests that could yield entertaining information about customers’ ancestry and cilantro preference, but also using genetics to change how patients receive health care. In 2015, the company launched a therapeutics unit to use its trove of genetic data to

develop drugs. Part of the reason the company went public, Wojcicki has said, was to help fund those efforts. More recently, she has hinted that she would like to bring genetic insights into the doctor’s office, perhaps by making the company a health- care provider itself. Wojcicki said the company will train Lemonaid doctors in how to integrate genetic risk reports and pharmacogenetics into care. While there is no “defined product roadmap,” she said, the eventual goal is to create a mode of care that best makes use of genomic information. — Bloomberg News

ALSO IN BUSINESS Walmart is recalling about 3,900 bottles of its Better Homes and Gardens-branded room spray because of the possible presence of a rare and dangerous bacteria, the U.S. Consumer Product Safety Commission (CPSC) said Friday. The Centers for Disease Control and Prevention has been investigating a cluster of four confirmed cases of melioidosis, including two deaths, although the source of the four infections has not been confirmed, the CPSC said.

— From news services

DIGEST

BY JEFF STEIN, RACHEL ROUBEIN AND MARIANNA SOTOMAYOR

Even as negotiations over Pres-
ident Biden’s economic package
continue, Democratic officials
have started signaling which
parts of the White House agenda
could be cut from the legislation
and which are likely to be ap-
proved.
Biden, for instance, said on
Thursday night that his plan to
create universal free community
college had fallen out of the bill.
The president acknowledged his
new clean energy plan to incentiv-
ize utility firms to move away
from fossil fuels is in danger of
being jettisoned. By contrast, uni-
versal prekindergarten and a na-
tional child care program are
widely seen as all but guaranteed
to be included, enjoying the back-
ing of the Democratic caucus.
The bill is also likely to retain
significantly smaller versions of a
wide range of Biden’s proposals,
such as initial plans to provide
roughly $300 billion for housing
and homelessness, $400 billion on
eldercare for seniors and $450 bil-
lion for the child tax credit. Each
initiative stands to be cut from
anywhere from a third to a half of
their initial proposed amounts,
though estimates on how much
vary by significant margins.
And while a higher corporate
tax rate may be out of a deal, due
to the demands of Sen. Kyrsten
Sinema (D-Ariz.), a new tax on
billionaires’ accrued wealth is
newly in play as part of potentially
significant shifts in Democrats’
tax plans to fund the legislation.
The emerging changes to the
package come as Biden this week
told House Democrats that the
legislation may have to spend up
to $1.9 trillion. The White House
and Democratic of ficials initially
agreed to a $3.5 trillion plan —
itself smaller than what the ad-
ministration had initially pitched
— and House Democrats’ version
of the bill costs as much as
$4.5 trillion, according to budget
experts.
Sinema and Sen. Joe Manchin
III (D-W.Va.) have been adamant
that overall spending figures
must be dramatically cut, forcing
difficult decisions about which
programs to shrink or eliminate.
But Democrats are also worried
that failure to reach an agreement
could lead to no bill at all being
passed, a potentially calamitous
outcome for the party.
Below is a rough rundown of
where key provisions surrounding
the bill stand, based on interviews
with more than a dozen congres-
sional aides, lobbyists and admin-
istr ation officials with knowledge
of the negotiations. These people,
who spoke on the condition of
anonymity to discuss sensitive
matters, stressed that negotia-
tions are moving very swiftly and
key provisions could change.

Climate: Democrats search
for alternative to key plan

The single biggest part of the
spending bill has been hundreds
of billions of dollars to fight cli-
mate change. Democrats have re-
mained optimistic that most of the
initial White House climate pro-
posal — including $300 billion in
clean energy tax credits — is likely
to be approved in the final bill.
But Manchin’s demands ap-
pear to have forced Democrats to
question whether they will have
to je ttison perhaps the linchpin of
their climate initiatives: the Clean
Energy Payment Program, which
would create financial incentives
and penalties for utility compa-
nies to encourage them to transi-
tion to clean energy sources.
Some Democratic lawmakers
have been adamant that they can
still reach their carbon reduction
targets even without the clean
energy program. But others are
skeptical, arguing that without
the utility program, the plan will
lack sufficient impact to mitigate

catastrophic warming. A h ost of potential alternatives — i ncluding a carbon tax and emissions trad- ing system for industry — have surfaced in recent days, but it is unclear whether these alternative options will end up in the bill. The White House and multiple senior Senate Democrats are working through what policies could both get Manchin’s approval and provide adequate financial resources or new regulations to address the threat of climate change. Biden told CNN on Thurs- day that the provision had not yet been eliminated but acknowledged Manchin’s opposition. He also suggested adding the $150 billion originally allocated for the Clean Energy Payment Program for new incentives to reduce fossil fuel intensive costs.

Daycare and preschool: Early education programs secure Beyond the climate provisions, the bulk of the Democrats’ package is designed to expand federal safety net and social programs through new initiatives in health care, education, housing, child care, elder care and other areas. Of the social programs, the two that have consistently emerged as the safest are Democrats’ plans to establish a universal prekindergarten program and a new national child-care program. Manchin has indicated his support for universal pre-K, for instance, which already exists in West Virginia. Biden initially proposed $200 billion to extend free and universal pre-K, as well as an additional $225 billion to subsidize child care, proposing to cap at 7 p ercent of income the amount families can spend on child care for children younger than 5. These plans appear likely to pass largely intact, although a report in the People’s Policy Proj- ect, a left-leaning think tank, argued this week that the child-care provision could dramatically in- crease costs for middle class families not eligible for the program’s new subsidies. Democrats have denied that claim.

Child tax credit: Antipoverty efforts face more challenges In its stimulus bill passed in March, the White House approved

a one-year expansion of the child tax credit, so the benefit gave out sub stantially more money per chil d and was also extended to reach millions of children in poverty previously denied the payment. The White House proposed extending the more robust child benefit through 2025 at a c ost of roughly $450 billion, a measure it has called necessary to achieve major reductions in child poverty. The program now appears vul- nerable. Manchin has called for new work requirements on government programs as part of the package, which could prevent parents who do not work from receiving the benefit. The admin- istr ation has also discussed whether the child tax credit would only be extended for one additional year, after which Democrats would seek to extend it further, as they try to bring down the cost of the package overall. If Democrats lose the midterms in 2022, it could mean that Biden’s signature ex- panded child tax credit may die after only a brief trial run. Yet the White House is still trying to seek approval to perma- nently ensure the program reach- es the poorest families. The origi- nal expansion of the child tax credit from earlier this year was able to reach more families because it was extended to those families who had no earnings. The White House wants to ensure that change does not expire, as it is set to under current law. Biden said Thursday he does not support adding a work requirement to the child tax credit.

Taxes: Democrats weigh massive changes to plan To pay for all the spending in the measure, the White House proposed trillions of dollars in new tax hikes on corporations and the rich. House Democrats ad- vanced a roughly $2 trillion tax plan that similarly raised tax rates on individuals, corporations and wealthy investors, among other measures. But due to resistance from Sinema, the administration is being forced to consider alternative approaches as the package inches forward. On a call this week with congressional Democrats, senior administration officials said they

are discussi ng a series of measures that would not raise tax rates — which Sinema has opposed — b ut still raise trillions of dollars in new revenue, primarily from companies and the rich. The measures discussed by the administration officials on the call included a new minimum tax on corporations, a plan to beef up tax enforcement through the In- ternal Revenue Service, a tax on companies issuing stock “buy- backs” to company shareholders and, perhaps most surprisingly, a new tax on the assets held by American billionaires. The White House has been adamant its spending package will be fully paid for with new revenue, meaning it probably h as to reach a deal on the tax provisions for the proposal as a whole to advance.

Health care: Priorities put senior Democrats at o dds While there is close to unani- mous support among Democrats about the early education programs, party leaders are dramatically split on how to expand health care through the legislation. Although left out of the admin- istr ation’s initial economic plan, White House officials this sum- mer agreed to back Senate Budget Chairman Bernie Sanders’ (I-Vt.) proposal to extend new dental, vision and hearing benefits to tens of millions of American seniors on Medicare. The initial provision cost as much as $380 billion, but Democratic lawmakers have suggested this week that the program may have to be cut to above $150 billion. But including all three benefits is a “reach,” Biden said at a C NN town hall on Thursday. He said that Manchin is opposed but that Democrats could cut a deal on an $800 voucher for dental care in- stead. On hearing benefits, Biden pointed to a new proposal from federal health officials to allow consumers to buy over-the-coun- ter hearing aids as a way to make products more affordable without changing Medicare. On vision, Biden says there is no consensus yet. Meanwhile, drafters of Presi- dent Barack Obama’s Affordable Care Act, including House Speak- er Nancy Pelosi (D-Calif.), have

pushed hard for more robust subsidies for those purchasing insur- ance on the public exchanges. That measure could also prove expensive. Democrats are consid- ering only extending the im- proved subsidies for Obamacare shoppers for only four years, though Pelosi wanted the plan approved for significantly longer. Separately, other party leaders have pushed for the inclusion of an expansion of Medicaid to 2.2 million poor adults in mostly Republican-led states refusing Obamacare’s expansion. Law- makers such as House Majority Whip James E. Clyburn (S.C.) and Sen. Raphael G. Warnock (Ga.) — Democrats in Southern states that rejected the Obamacare expansion — have argued doing so is crucial to closing the racial ineq- uities in the country’s health care system. Most Democrats would support all three health care programs, but party officials differ on which should be funded with limited resources.

Prescription drugs: Pricing reform could see defections To pay for the health-care spending, Democrats have pushed for changing existing law to allow Medicare to negotiate lower prescription drug prices, a measure aimed at both saving the government money and reducing seniors’ prescription drug costs. But that plan is under fire from a trio of House lawmakers who support a more limited drug nego- tiation measure and voted against the bill during a key committee hearing in September. On the other side of the Capitol, a plan has not yet come together, as Senate Finance Committee Chairman Ron Wyden (D-Ore.) has worked for months to try to strike a bal- ance between moderate and more liberal Democratic members.

Care: Housing, elder support and paid leave face some cuts The White House is widely expected to be forced to cut a range of other programs — such as its proposals for housing, elder care for seniors, and paid family and medical leave — from its initial ambitions. The administration’s initial housing plan included hundreds

of billions of dollars to create millions of new housing units and to house hundreds of thousands of homeless Americans. The housing program also would have funded vouchers for low-income tenants and repairs to public housing units. The overall amount of spending on housing is expected to be cut dramatically, possibly from $300 billion to $100 billion. But it’s not clear which housing programs are on the chopping block. Similarly, the White House initially pitched as much as $400 billion to help the elderly and those with disabilities receive in-home care from workers who often make below minimum wage. With the nation rapidly aging, the administration said the plan is necessary to help clear the back- log of thousands of people waiting years to receive in-home care from Medicaid. But the home care program may be cut by as much as a third or more. Yet another White House program — $225 billion to create a national paid family and medical leave program — also faces major downsizing. Initially, Democrats had looked to create 12 weeks of benefits for families and sick workers, but that number is now down to four weeks, and the program might not start until 2024, well after the 2022 midterms. Biden confirmed the four-week plan on Thursday.

Immigration: There remains some hope for reforms Democrats have not given up on including immigration reform from the reconciliation bill, allot- ting $100 billion to the matter. But how it gets divided up still de- pends on what the Senate parliamentarian rules as germane to include in the sweeping budget proposal. Democratic senators, led by Majority Leader Charles E. Schu- mer (N.Y.), Richard J. Durbin (Ill.), Alex Padilla (Calif.) and Robert Menendez (N.J.), are preparing their third proposal for the parliamentarian in the coming days. Unlike the previous proposals that focused on creating a path- way to citizenship for a broad swath of undocumented immi- grants, current negotiations are focused on reforming the green card visa system to make it more accessible to certain undocumented groups like farmworkers and recipients of Deferred Action for Childhood Arrivals. There is division among Democrats on whether the parliamentarian’s word is final, with some pushing to override her recommendation.

Overall: ‘More and smaller’ ahead of ‘bigger and fewer’ When it became clear the White House would have to shrink its legislation by as much as 60 percent, administration officials faced a difficult choice: They could either pursue a plan that contains partial investments across a wide range of areas, or one that approved a handful of programs but each one done in a durable and robust way. Several administration officials privately said they prefer legislation that took aggres- sive and comprehensive action on only a handful of priorities. Ultimately, however, the party appears to be pursuing the more diffuse approach. While free community college appears to be out of the plan, Democrats say they remain intent on pursuing virtu- ally all of their biggest programs, at least for now. While some administration officials agree that it would be better to implement a few large-scale programs, the White House needs every Demo- crat in the House and Senate to support the legislation for it to pass, and no Democrat wants his or her particular priority axed entirely. [email protected] [email protected] [email protected]

Where the Biden agenda stands

Officials signal the changes emerging on issues including taxes, climate, health and immigration

JABIN BOTSFORD/THE WASHINGTON POST Sen. Joe Manchin III (D-W.Va.) has been adamant that overall spending figures in an economic package must be cut.

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The Washington Post - USA (2021-10-23)

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