| | | | | |  | | By Rachael Bade, Tara Palmeri, Eugene Daniels and Ryan Lizza | | | | | | |  | DRIVING THE DAY | | READING AHEAD OF TODAY'S BIDEN-MERKEL SITDOWN: "Angela Merkel's White House Visit Ends Trump-Era Hostilities, but Trans-Atlantic Drift Continues," by WSJ's Bojan Pancevski in Berlin MCCARTHY'S CALL — Back in 2019, when the House Intelligence Committee was about to kick off public hearings for DONALD TRUMP'S first impeachment, Trump and his allies pressed KEVIN MCCARTHY to yank centrist Republicans from the panel and install the president's most vocal allies instead. They wanted people like Reps. ELISE STEFANIK (N.Y.) and WILL HURD (Texas) gone and replaced with his future chief of staff, MARK MEADOWS (N.C.), or MATT GAETZ (Fla.). McCarthy wouldn't do it. The GOP leader knew Trump diehards would appease the president, but they would also repel swing voters whom he wanted to convince that the impeachment effort was a sham. To this day, many GOP lawmakers think the decision was one reason impeachment never drew significant bipartisan public support. A year-and-a-half later, McCarthy is in essentially the same position: about to decide which Republicans to appoint to the special committee on the Jan. 6 siege of the Capitol. Some GOP lawmakers want him to refuse to name any members at all in protest. Others on the far right are lobbying for bomb-throwers like Gaetz, MARJORIE TAYLOR GREENE (Ga.) or LAUREN BOEBERT (Colo.). If past is prologue, McCarthy will again put at least some moderate members out front — and hope they're the most effective agents to blunt any political fallout for his members. His office declined to comment, but we hear he hasn't named members in part because he's still thinking through his strategy. Here are some of his options: — Name a Republican who voted to impeach Trump, but then voted against the creation of a special committee. Someone like JOHN KATKO (N.Y.) would carry max credibility in the eyes of swing voters for his work trying to establish a bipartisan commission to investigate the matter. Katko is also a valued ally of leadership. The issue here is that these types of members, including some like Katko who have tough reelections, might not want the job. Serving on the committee could put them in an awkward position in a primary or general election. — McCarthy could choose Republicans who rebuffed Trump by voting to certify the election. That would give them some air of independence. Some GOP members are lobbying for RODNEY DAVIS (Ill.), the moderate who serves as ranking Republican on the House Administration Committee and who is already very knowledgeable about Jan. 6. — Pretty much every House Republican thinks McCarthy will need at least a few JIM JORDAN types on the panel, if not the Ohio Republican himself. Jordan has been the GOP's top oversight bull for years, and he singlehandedly led the impeachment defense of the president with McCarthy's office and staff. Trump, we heard, has been agitating for McCarthy to pick heavy hitters like Jordan and STEVE SCALISE (La.), whom he also views as loyal and high profile. He's also become a big fan of Stefanik, who once kept Trump at arm's length before becoming a full-throated Trump defender during the impeachment fight. WHEN WE MIGHT HEAR: Sources tell us that McCarthy has been working aggressively to identify staff for the GOP side of the panel before he names members to it. But the job is proving to be a tough sell. Its first hearing is scheduled for July 27, with police officers who defended the Capitol expected to testify. Good Thursday morning, and thanks for reading Playbook. Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza, Tara Palmeri. | | A message from Amazon: "Amazon has allowed me to live a comfortable life." When Luv-Luv joined Amazon, she was just looking for a job — any job — with health care. What she found was so much more. Thanks to Amazon's starting wage of at least $15 an hour and comprehensive benefits, she is able to live life on her own terms. Watch her story here. | | | DEMOCRAT LOVE-FEST: Democrats are experiencing a high after unveiling their $3.5 trillion budget plan to plaudits from across the party. President JOE BIDEN received multiple standing ovations during a private lunch where not a single senator complained about the price tag. In the House, even Congressional Progressive Caucus leader PRAMILA JAYAPAL (Wash.) had positive things to say. Still, issues are creeping to the fore and expected to grow. Sen. JOE MANCHIN (W.Va.) told CNN's Manu Raju that budget language seemingly calling for eliminating fossil fuels is "very, very disturbing." And our Heather Caygle, Marianne LeVine and Sarah Ferris scooped that there's already a fight brewing in the House: Progressives want to pass the budget first to put their own stamp on it — but moderates in tough seats would prefer the Senate go first in order to avoid having to take two tough votes. Some key headlines: "Biden pitches huge budget, says Dems will 'get a lot done,'" by AP's Alan Fram and Lisa Mascaro … "Biden rallies support on Capitol Hill for sweeping spending deal," by NBC's Lauren Egan, Sahil Kapur and Rebecca Shabad … "Climate, immigration, Medicare lead progressive highlights in Democrats' $3.5T budget plan," by Caitlin Emma, Sarah Ferris and Anthony Adragna … "Vulnerable House Democrats call for sweeping drug pricing reforms in spending plan," by Sarah Ferris MEANWHILE, ON THE GOP SIDE: "Pigs fly: McConnell weighs giving Biden a bipartisan win," by Burgess Everett and Marianne LeVine: "Other than questioning its financing, [Senate Minority Leader MITCH] MCCONNELL has aired little criticism of the bipartisan agreement to fund roads, bridges and other physical infrastructure, even as he panned Democrats' separate spending plans on Wednesday as 'wildly out of proportion' given the nation's inflation rate. "His cautious approach to a top Biden priority reflects the divide among Senate Republicans over whether to collaborate with Democrats on part of the president's spending plans while fighting tooth and nail on the rest. Many Democrats predict McConnell will kill the agreement after stringing talks out for weeks, but the current infrastructure talks are particularly sensitive for the GOP leader because one of his close allies, Ohio Sen. ROB PORTMAN, is the senior Republican negotiator. | | A message from Amazon: $15 an hour and benefits give Luv-Luv and Amazon employees like her the freedom to do more — save up for a family vacation, go back to school, or upgrade their homes. | | | BIDEN'S THURSDAY: — 9:30 a.m.: The president will receive the President's Daily Brief. — 11:45 a.m.: Biden and VP KAMALA HARRIS will speak to mark the first day of Child Tax Credit payments being disbursed to tens of millions of families. — 2 p.m.: Biden will host German Chancellor ANGELA MERKEL for an official working visit, including an expanded bilateral meeting at 2:25 p.m. and a joint press conference at 4:15 p.m. — 6:30 p.m.: The Bidens will host Merkel and her husband, JOACHIM SAUER, for dinner along with Harris, second gentleman DOUG EMHOFF and "others who have been supporters of the bilateral relationship with Germany." HARRIS' THURSDAY: The VP will also host Merkel for a working breakfast at her residence at 9 a.m. Press secretary JEN PSAKI will brief at 12:30 p.m. along with Surgeon General VIVEK MURTHY. THE SENATE is in. Fed Chair JEROME POWELL will testify before the Banking Committee at 9:30 a.m. Majority Leader CHUCK SCHUMER will hold a press conference on the Child Tax Credit at noon. THE HOUSE is out. | | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | | | PLAYBOOK READS | | | 
PHOTO OF THE DAY: Rep. Matt Gaetz (R-Fla.) attends a #FreeBritney Rally at Stanley Mosk Courthouse in Los Angeles, California on Wednesday, July 14. | Emma McIntyre/Getty Images | POLITICS ROUNDUP A KEY GOP DYNAMIC TO WATCH IN 2022 — "'It will be remembered': Trump allies cross him in special election," by Alex Isenstadt: "Trump last month announced his support for MIKE CAREY, a former energy lobbyist running for a vacant Columbus-area congressional seat. But Kentucky Sen. RAND PAUL is bolstering former state Rep. RON HOOD in the Republican primary, while DEBBIE MEADOWS, a prominent conservative activist and the wife of former White House chief of staff MARK MEADOWS, is promoting church leader RUTH EDMONDS. "Their intervention has rankled some senior Trump advisers, who regard it as an act of disloyalty — and one that could lead to an embarrassing defeat for the former president, who has put his name on the line by getting involved. A late infusion of cash, they worry, could complicate Carey's prospects in the Aug. 3 contest, given that he is already at a financial disadvantage." WHAT THE LEFT IS WATCHING — "Beacon Poll Shows Brown and Turner Tied in Ohio 11," by The Washington Free Beacon's Eliana Johnson: "A Washington Free Beacon poll shows [SHONTEL] BROWN and [NINA] TURNER locked at 33 percent … While Turner began as an overwhelming favorite in the race and took an early lead, the numbers show Brown has consolidated her support among voters looking for an alternative to the BERNIE SANDERS-endorsed socialist." Ally Mutnick on Monday: "New poll shows Nina Turner's lead shrinking in Ohio special election" A SUREFIRE MESSAGE FOR DEMS TO LOSE FLORIDA — " Black Lives Matter Calls on Biden to Immediately Lift 'Cruel' Cuba Embargo," by Newsweek: "In a statement posted on BLM's Instagram page late Wednesday, the organization said: 'Black Lives Matter condemns the U.S. federal government's inhumane treatment of Cubans, and urges it to immediately lift the economic embargo.' It described the embargo as a "cruel and inhumane policy" that is at the heart of Cuba's current crisis. It was instituted with "the explicit intention of destabilizing the country and undermining Cubans' right to choose their own government…" — ICYMI: " Florida Dems to Biden: Don't blow 'golden opportunity' on Cuba," by Marc Caputo DeSANTIS STOCK RISING — "Poll: Without Trump in the race, DeSantis dominates 2024 GOP White House hopefuls," by Maya King: "Trump remains the clear leader of the party. If he decided to run again for president in a crowded 2024 primary field, he would get roughly half of the vote, with DeSantis in a distant second place at 19 percent, according to a new survey of GOP voters from veteran Republican pollster TONY FABRIZIO. … Without Trump running, the poll shows DeSantis gets 39 percent of the theoretical GOP primary vote and [MIKE] PENCE is at 15 percent." Also: "DeSantis' tryst with Democrats is done," by Gary Fineout | | | | A message from Amazon:   Luv-Luv says her co-workers are like family to her. | | | POLICY CORNER PAGING THE INFRASTRUCTURE NEGOTIATORS — "As IRS audits waned, big businesses racked up unapproved tax breaks," by WaPo's Douglas MacMillan and Kevin Schaul: "In the past, the Internal Revenue Service audited virtually every tax return filed by large corporations and rejected tax breaks it deemed inappropriate, data show. But during the Obama administration, congressional Republicans moved to slash the IRS budget … "As a result, the federal government now examines just half of all large company tax returns, despite businesses claiming increasing tax benefits over this period that they say could be overturned by authorities … Companies currently in the S&P 500 index had $235 billion in tax breaks awaiting audit at the end of last year, up 43 percent from a decade earlier." TODAY'S MAIN EVENT — "Cash for Kids Comes to the United States," by The Atlantic's Annie Lowrey: "[It's] a technical change to a federal tax expenditure that is also the most radical expansion of the welfare state since the Great Society. Beginning this week, the IRS will start sending monthly, no-strings-attached cash payments to an estimated 65 million children living in low- and middle-income families, potentially slashing the country's child poverty rate by 45 percent. … "An estimated 88 percent of recipients will not need to do anything to get the cash—the IRS will send the money automatically. But an estimated 4 million to 8 million eligible children are at risk of missing out, because their parents or guardians do not need to file taxes or are not filing taxes — and because they might not even know the complicated, obscure-sounding, and scarcely advertised policy exists." TRUMP CARDS MORE POST-ELECTION CRAZINESS — "Joint Chiefs chairman feared potential 'Reichstag moment' aimed at keeping Trump in power," by WaPo's Reis Thebault: "As Trump ceaselessly pushed false claims about the 2020 presidential election, Gen. MARK A. MILLEY, chairman of the Joint Chiefs of Staff, grew more and more nervous, telling aides he feared that the president and his acolytes may attempt to use the military to stay in office, CAROL LEONNIG and PHILIP RUCKER report in "I Alone Can Fix It: Donald J. Trump's Catastrophic Final Year.' … "Milley described 'a stomach-churning' feeling as he listened to Trump's untrue complaints of election fraud, drawing a comparison to the 1933 attack on Germany's parliament building that Hitler used as a pretext to establish a Nazi dictatorship." | | | | SUBSCRIBE TO "THE RECAST" TODAY: Power is shifting in Washington and in communities across the country. More people are demanding a seat at the table, insisting that politics is personal and not all policy is equitable. The Recast is a twice-weekly newsletter that explores the changing power dynamics in Washington and breaks down how race and identity are recasting politics and policy in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country and hear critical new voices that challenge business as usual. Don't miss out, SUBSCRIBE . Thank you to our sponsor, Intel. | | | | | | | PLAYBOOKERS | | LADY LIBERTY À D.C.: For months, French diplomats talked up the Bastille Day party as the place to usher back the post-pandemic diplomatic social season. The British and Italians beat them to the punch (double entendre intended), as careful Playbook readers know. But Philippe Étienne, Emmanuel Macron's man in Washington, had a card to play: the unveiling of a miniature version of the Statue of Liberty in the front garden of his Kalorama ambassadorial residence. With the Francophone Tony Blinken and visiting French Foreign Minister Jean-Yves Le Drian in attendance, he created quite a splash. He also managed to snag George Cleveland, the grandson of President Grover Cleveland, who unveiled the original Statue of Liberty, to unveil the smaller, bronze statue cast from the original mold. For the apparent bonhomie between the men and paeans to America's post-Trump return to "multilateralism" and good behavior (in European eyes), there was an undercurrent of pique. It wasn't lost on those in attendance that the countries aren't quite on the same page on Iran, Russia and China, and French officials aren't shy to remind anyone who'll listen that a Trump-style president might one day come back to power and Europe needs "strategic autonomy." Even Blinken's fluency in French — which he deployed only briefly at the start of his remarks — elicited some Gallic shrugs that John Kerry spoke the language too. The party perhaps took inspiration from France's recent Covid-19 crackdowns, limiting access to those with proof of vaccines. Despite the restrictions, Étienne has been lobbying hard for the U.S. to loosen travel restrictions on French nationals, who would like to see their families abroad after more than 18 months apart, but risk not being able to re-enter the U.S. He and his wife, Patricia, are heading back to France in a few days to see their new grandchild, but lamented that they are among the very few who can return to the U.S. because of their diplomatic passports. Meanwhile, former Secretary of Health and Human Services Alex Azar reminded Playbook that a party of this scale — with 240 bottles of champagne, oysters, caviar, truffles, macarons and hundreds of people — couldn't have happened without his operation Warp Speed. Also spotted: Sen. Chris Coons (D-Del.), co-chair of the Senate French Caucus, flexing his near-perfect French, Sens. Amy Klobuchar (D-Minn.), Sheldon Whitehouse (D-R.I.) and Ed Markey (D-Mass.), Chuck Hagel, NASA boss Bill Nelson, Maureen Dowd, Shawn McCreesh, Paula Dobriansky, Daleep Singh, Abby Phillip, Kurt Volker and Ia Meurmishvili, Michael Hirsh and Maura Flynn, Rob Malley, Anne Neuberger, Matt Kaminski, Mark Leibovich, John Hudson, Suzanne Kianpour, Jim Hoagland, Robin Wright, Mike Allen, Andrea Mitchell, Henry Olsen and, naturally, Steve Clemons. SPOTTED at a book party for Sheera Frenkel and Cecilia Kang to celebrate the publication of "An Ugly Truth: Inside Facebook's Battle for Domination" ($29.99) hosted by Kara Swisher and Brian Stelter at Comet Ping Pong on Wednesday night: Sen. Amy Klobuchar (D-Minn.), Rep. Ro Khanna (D-Calif.), Tim Wu, Lisa Hansmann, Jessica Rosenworcel, Rohit Chopra, Maureen Dowd, Mignon Clyburn, Jim Steyer, Jake Tapper, John McCarthy, Katie Petrelius, Tammy Haddad, Alec MacGillis, Jeff Goldberg, Kaitlan Collins, Yasmeen Abutaleb, Yamiche Alcindor, Heather Podesta, Tom Wheeler, Kelley McCormick, Carol Melton, Niki Christoff, David Chavern, Jen Stout, Craig Gordon, Sudeep Reddy, Lisa Kaplan, Luther Lowe and Weija Jiang. FIRST IN PLAYBOOK — Maryam Janani-Flores is joining the Washington Center for Equitable Growth as deputy policy director. She previously was legislative director for Rep. Norma Torres (D-Calif.). D.C.'s NEWEST PHILANTHROPIST — "Bezos donates $200M to Smithsonian for Air and Space Museum," by the AP. It's the largest gift received by the Smithsonian Institution since its founding in 1846. WHITE HOUSE ARRIVAL LOUNGE — Jedidah Isler is now assistant director of STEM opportunity and engagement at the Office of Science and Technology Policy. She previously was an assistant professor of astrophysics at Dartmouth College and executive director of the STEM En Route to Change Foundation Inc. MEDIA MOVES — POLITICO's world/national security team is adding Phelim Kine as China correspondent (joining from Mighty Earth/Waxman Strategies) and Lee Hudson as a defense tech and influence reporter (joining from Aviation Week). A revamped Morning Defense newsletter and the new afternoon National Security Daily newsletter (led by Alex Ward) are launching Monday, as Quint Forgey starts working with the team as well. TRANSITIONS — Cassie Scher is now a VP at Rational 360. She previously was VP at Nahigian Strategies. … Allison Dong is now press secretary for Sen. Mike Braun (R-Ind.). She most recently was digital comms assistant for Sen. Marsha Blackburn (R-Tenn.). WEEKEND WEDDING — Audrey Pence, an associate at Covington and Burling, and Dan Tomanelli, a public sector manager at Orbital Insight and an NSC and DOD alum, recently married at The Beach House in Kauai in front of 80 guests. They had formally wed last November in Washington. The couple met in undergrad at Northeastern, and former VP Mike Pence walked his daughter down the aisle. Pic … Another pic WELCOME TO THE WORLD — Zoe Chace, a producer at This American Life and an NPR alum, and Lizzy Berryman, chief of staff at Fly By Jing, welcomed Maximo James Berryman-Chace on June 26. HAPPY BIRTHDAY: Reps. David Cicilline (D-R.I.) (6-0) and Chris Stewart (R-Utah) … WaPo's Paul Kane … Chris LaCivita … JPMorgan Chase's Heather Higginbottom … Penn Staples … Cecile Richards of Supermajority … Chris Krepich of Rep. Brad Wenstrup's (R-Ohio) office (3-0) … Bloomberg's Jodi Schneider … Svetlana Legetic … Tia Bogeljic of Rep. Ed Perlmutter's (D-Colo.) office … Alex Lasry … DCCC's Kathryn Crenshaw … David Miliband … Daily Beast's Max Tani … Sheerica Ware Wilkins … Chad Stovall … Ariel Zirulnick … Aspen Institute's Elliot Gerson … Ericka Perryman ... Andrew Usyk … Brunswick Group's Mark Palmer … Séverine de Lartigue … Michael Francisco ... Helen Hare ... Erica Fein … Susan McCue … Nate Gaspar of Targeted Victory … Heath Tarbert … Amanda Fernandez … former Reps. Mac Thornberry (R-Texas) and Dan Lipinski (D-Ill.) and Ileana Ros-Lehtinen (R-Fla.) … Arianna Huffington … Gareth Rhodes … POLITICO's Rebecca Moore, Pete Behr and Adrian Wyatt … Hayley Arader … Hassanal Bolkiah, sultan of Brunei … Alison Godburn … David Lippman Send Playbookers tips to playbook@politico.com. Playbook couldn't happen without our editor Mike Zapler, deputy editor Zack Stanton and producers Allie Bice, Eli Okun and Garrett Ross. | | A message from Amazon: Since starting at Amazon, Luv-Luv has been happy with the healthy work environment. She said, "People don't see the love and the kindness that goes on in here. They don't see the financial support and the fact that it's fair."
It's not just employees who noticed the immediate benefit of Amazon increasing their starting wage to at least $15 an hour — a new study from University of California-Berkeley and Brandeis University found that when Amazon raised their wages, the average hourly wage in the surrounding area rose by 4.7% as other employers followed their lead. | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
