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Dealmakers turn eyes to D.C. as Biden prepares to unveil corporate tax hike

Washington, D.C. is about to take center stage for the deal-making business, as both legislators and regulators are eyeing major changes.

Driving the news: The key issue is taxes, with President Biden expected to push for a corporate rate increase to 28%.

  • Some moderate Democrats only want to push the corporate rate to 25%.
  • Republicans generally want it to remain at 21%, but they don't really matter unless all that's on the table is 28% and Joe Manchin is opposed.
  • Biden plans to unveil his proposal in Pennsylvania next week, Axios' Alayna Treene tells me. His administration will try and have Congress pass his bill the "standard way" over the next few months — with 60 votes in the Senate. If that fails, they'll use the same reconciliation process they relied on for coronavirus relief, which only requires a simple majority to pass.

In terms of carried interest, Biden may step over the loophole and plug it at the same time.

  • The Washington Post's Jeff Stein reports that the White House is considering language that would eliminate beneficial treatment for capital gains once those gains top $1 million.
  • And as a double-whammy for wealthy dealmakers, it sounds like top individual income rates would also rise.

But wait, there's more: The SEC has opened an investigation into SPACs, with a focus on how banks are managing risk, according to Reuters.

  • Biden also this week confirmed he'll nominate Lina Khan to become an FTC commissioner. She's best known in tech circles for a 2017 paper called Amazon's Antitrust Paradox, in which she argues that current antitrust law is antiquated, and must be updated to address potentially monopolistic practices by Big Tech companies.
  • This follows Biden's earlier addition of antitrust agitator Tim Wu to the National Economic Council, as a special assistant to the president for tech and competition policy.

The bottom line: Deal math is about to change.

Read: What Liz Cheney told the House GOP behind closed doors before her ouster

"If you want leaders who will enable and spread his destructive lies, I’m not your person, you have plenty of others to choose from," Rep. Liz Cheney (R-Wyo.) told House Republicans before they voted to remove her as the party's conference chair on Wednesday.

Why it matters: In her address, Cheney promised that she "will be leading the fight to restore our party" and make it "worthy again of being the party of Lincoln," signaling that she doesn’t plan on going anywhere soon and will continue to be a voice of dissent in the party.

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House Republicans remove Liz Cheney from leadership over Trump opposition

House Republicans voted Wednesday to oust Rep. Liz Cheney (R-Wyo.) as conference chair, capping months of growing backlash over her criticisms of former President Trump, according to two sources in the room.

Why it matters: The stunning removal of the No. 3 House Republican over her condemnation of Trump's election lies reflects the influence the former president still retains over the GOP. It's the most significant turning point in an internal party feud that is unlikely to subside any time soon.

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Biden names third slate of judicial nominees

President Biden on Wednesday announced a new slate of nominations for federal judges, with the president now having put forward 20 names to fill judicial vacancies.

Why it matters: The administration described the most recent picks as an embodiment of "the diversity of our nation," and said that Biden is continuing a trend of announcing judicial nominees at a record pace.

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Consumer prices jumped 4.2% in April compared to last year

The latest gauge on inflation released Wednesday morning showed that prices rose 4.2% over last year, based on the Consumer Price Index (CPI).

Why it matters: The gains were highest since September 2008. Prices jumped significantly compared to the start of the pandemic last year, when lockdowns drove down demand.

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What China's population woes mean for the rest of the world

China released its censusreport on Tuesday, showing that the number of births in the country last year dropped 18% from 2019. And China isn't alone — populations have been stagnating globally for decades, including in the U.S.

Why it matters: China has long relied on its large population — the biggest in the world — as a core engine for economic growth. The way that it, and officials across the globe, deal with changing demographics will lead to shifts in the economy and geopolitics.

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Inside Liz Cheney's plans to continue fighting for soul of GOP after leadership ouster

As she faces a voteto be thrown out of House Republican leadership, Rep. Liz Cheney has told associates she doesn’t plan on going anywhere — and plans to run for re-election.

What to watch: In the meantime,as she sees it, she will aggressively pursue a fight for the soul of the Republican Party, after an expected vote to strip her of her post as GOP conference chair, the party's No. 3 House post.

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Biden plans to send envoy as Israel and Hamas escalate toward war

Tel Aviv — With Israel and Hamas now engaged in their most destructive fight in seven years, the Biden administration is considering plans to dispatch a State Department official to join the de-escalation efforts, five Israeli officials and Western diplomats tell me.

Driving the news: The fighting intensified overnight, with Hamas and other militants firing a second barrage of over 100 rockets toward Tel Aviv and other nearby cities, and Israel continuing its air campaign in the Gaza Strip by destroying high-rise buildings, Hamas facilities and rocket units.

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Swing-voter focus group says ousting Liz Cheney is a mistake

As House Republicans meet to oust Rep. Liz Cheney from her leadership post for criticizing Donald Trump, swing voters in Axios' latest Engagious/Schlesinger focus groups hold a near-unanimous view that Minority Leader Kevin McCarthy and his caucus are making a mistake.

The big picture: Nine of 14 voters said they could vote for a Republican for U.S. House or Senate races next year. All but one ruled out backing any candidate who clings to the former president's lie that the 2020 election was stolen from him.

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