Original post: It looks like Joe Biden’s sales effort has failed, ast least so far. The news was first tweeted by Ben Smith at POLITICO.
The House Democratic Caucus has voted to reject the tax “framework” deal.
This doesn’t mean it’s dead, but it’s not a positive development for the President. The question is: What can Democrats extract from the GOP at this point, so that it’s palatable to both sides?
Markets are mixed and haven’t moved much on the news.
Update: A question that’s come up is: what are the Democrats holding out for? We’ve heard a few things. Democrats don’t like the estate tax aspect of the deal, and they may be pushing for a Build America Bond extension, which is not currently in the deal.
Note that the big muni ETF spiked on the news, suggesting some ray of hope that it’s the Build America Bond program — which backstops state debt — will find its way into the end law.
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