On The Money — Manchin swaps proposals with Sinema

Sen. Joe Manchin (D-W.Va.) is working on getting Sen. Kyrsten Sinema’s (D-Ariz.) support for the deal he cut with Senate Majority Leader Charles Schumer (D-N.Y.). We’ll also look at the latest data on the strength of the labor market and more sanctions on Russia. 

But first, Dee Snider is going after a top GOP candidate. 

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan LaneAris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.

Manchin, Sinema in discussions on climate, tax deal

Sen. Joe Manchin (D-W.Va.) says he is exchanging materials with Sen. Kyrsten Sinema (D-Ariz.) to help her better understand the broad tax reform and climate bill he negotiated with Senate Majority Leader Charles Schumer (D-N.Y.) and says he is open to her suggestions as Democrats seek 50 votes to put the bill on the floor.   

Manchin finally got a chance to speak to Sinema after lunch Tuesday, when she was scheduled to preside over the chamber.   

  • Manchin didn’t reveal details of the conversation but said that he’s willing to consider changes Sinema might want to make to the deal. 
  • Those include potentially axing the proposal to close the carried interest loophole, a priority for Manchin that Sinema has expressed skepticism about.  

Asked whether Sinema is upset that she didn’t get looped into last week’s talks with Schumer, which produced the surprise deal, Manchin said he didn’t want to get anyone’s hopes up when he didn’t know whether an agreement was even possible.  

“She’s my dear friend,” he said. “But why bring anyone in and all their aspirations get high and the drama we go through and it doesn’t work out?” 

Alexander Bolton has the details here

Read more: Schumer ‘in touch’ with Sinema as Dems seek to move climate, taxes package

JOLTS OF LIFE

Workers still empowered despite fewer open jobs in June 

U.S. jobseekers still held power despite slightly fewer open gigs to choose from in June amid record demand for workers, according to data released Tuesday by the Labor Department. 

  • The June Job Openings and Labor Turnover Survey released Tuesday showed a slight decrease in job openings, which are still near record highs set earlier this year.  
  • But the number of workers who were hired, laid off or quit their jobs held about even in June, even amid high inflation and a slowing economy. 

The context: Job openings have remained at historically high levels since 2021 as the rapid economic rebound from the COVID-19 recession ran into obstacles created by the lingering pandemic. 

While consumer activity is well above pre-pandemic levels, businesses have struggled to meet that demand because the size of the U.S. workforce has not yet recovered. 

By the numbers:  

  • Job openings fell to 10.7 million on the final business day of June, according to the Labor Department, down from 11.3 million the previous month.  
  • That still left almost two open jobs for each of the 5.9 million Americans who were unemployed in June, giving workers ample power to find better work for higher wages. 
  • Roughly 4.2 million Americans quit their jobs in June, likely to take new ones with better compensation or career opportunities. 

Sylvan has it all here.

MORE SANCTIONS

US sanctions Putin girlfriend, Russian billionaires 

The Biden administration on Tuesday imposed sanctions on Russian President Vladimir Putin’s rumored girlfriend Alina Kabaeva and several other wealthy Russians, further squeezing Moscow over its war in Ukraine.   

The Treasury Department said in an announcement that it was designating Kabaeva, a former Olympic rhythmic gymnast who currently heads the pro-Kremlin National Media Group and is reportedly the longtime girlfriend of the Russian president. 

  • Treasury also imposed sanctions on Russian billionaire Andrey Guryev, a former Kremlin official and founder of Russian chemical company PhosAgro, and his son. 
  • Additionally, the administration is sanctioning Russian billionaire Viktor Rashnikov and the Russian steel company he owns, along with Natalya Popova, first deputy director of the Russian tech company Institute Innopraktika. 

Morgan Chalfant has more here.

THAT’S A LOT

Americans’ household debt surpasses $16T for first time 

Total household debt for Americans has risen to a record $16 trillion, according to a report from the Federal Reserve Bank of New York, as Americans grapple with inflation and rising costs. 

“Americans are borrowing more, but a big part of the increased borrowing is attributable to higher prices,” NY Fed researchers wrote in a blog post accompanying the report, released Tuesday. 

The total rose 2 percent between the first and second quarters of 2022, or about $312 billion. This year’s $16.15 trillion household debt dollar amount is $2 trillion higher than what was recorded in pre-pandemic 2019.  

Read more on the numbers here.

Good to Know

A group of more than 120 economists is backing the climate, health care and tax package that Senate Majority Leader Charles Schumer (D-N.Y.) will bring to a vote this week. 

The economists said in a letter to congressional leaders that the Inflation Reduction Act will reduce prices for American families while making “crucial” investments in energy and health care.  

Here’s what else we have our eye on: 

  • The U.S. Chamber of Commerce and Arizona Chamber of Commerce on Tuesday ran ads pressuring Sens. Kyrsten Sinema (D-Ariz.) and Mark Kelly
    (D-Ariz.) to vote against their party’s climate and tax spending package. 
  • The Georgia Department of Revenue said Monday that in-state residents can claim embryos with a “detectable human heartbeat” as dependents on their taxes.

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow.

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