Chuck Schumer's Heir Emerges, And He Already Sucks | David Dayen | TMR

A housing bill co-authored by Elizabeth Warren and Tim Scott passed the Senate with 89 votes, representing the most significant housing legislation in decades. It promotes manufactured housing, increases funding opportunities for affordable housing via Community Development Block Grants, and incentivizes states to improve land use and zoning. While not revolutionary, it is expected to modestly increase housing supply and financing capabilities.

The bill received 89 Senate votes and White House support. It changes definitions to promote manufactured housing, increases funding through CDBG, and offers money to states for zoning reforms.

Donald Trump, seeking to address economic concerns, demanded the inclusion of a provision targeting private equity's role in the single-family home market. This provision bans private equity firms owning over 350 homes from purchasing 'build-to-rent' properties unless they commit to selling them after 7-10 years. While a small part of the market, this was the 'price paid' for Trump's signature and support.

Trump's executive order on private equity in housing led to negotiations that inserted a specific provision into the bill. White House statements of administration policy shifted from concern to strong support after the provision was added.

Senator Brian Schatz, positioned as the heir apparent to Chuck Schumer's leadership, publicly opposed the private equity 'build-to-rent' provision, labeling it 'positively Soviet.' Despite calling it a 'two-line fix,' he did not file an amendment or change any votes, suggesting his floor speech was a calculated signal of allegiance to the private equity industry rather than a genuine attempt to alter the bill.

Schatz made a 5-minute floor speech opposing the bill, voted against it, and called the provision 'positively Soviet.' Senate aides confirmed he never filed an amendment, and the bill's vote count increased from 88 to 89 after his speech.

A former Hill staffer coined the term 'to shhatz something' to describe Senator Schatz's pattern of undermining bills that challenge corporate power. This involves feigning progressive concerns while transparently building 'chits' with powerful industries, as seen in his actions on both the housing bill and a previous big tech regulation bill.

A former Hill staffer's quote: 'In some circles, to shhatz something is starting to be used as a verb. By which I mean undermining bills that take on corporate power, pretending to be motivated by progressive concerns when it is transparent to everyone involved that he is just trying to build chits with powerful industries.'

Several prominent Democrats, including Cory Booker and Chris Van Hollen, are proposing significant middle-class tax cuts, primarily by raising the standard deduction. Critics argue this strategy is a misguided attempt to 'out-Republican the Republicans' on tax cuts, potentially depleting funds needed for crucial social programs and blurring the party's ideological stance on government's role in providing services versus individual tax relief.

Booker's plan benefits people from the 40th to 90th percentile, and even high-income earners, by significantly raising the standard deduction without sufficient caps. Van Hollen's plan also raises the standard deduction to $46,000 for individuals and $92,000 for households. This approach is seen as a reaction to Trump's tax cut rhetoric.

Despite the Department of Justice settling its antitrust case against Live Nation, several states, including Texas and Tennessee, are continuing their own jury trial against the company. This ongoing legal battle is bolstered by incriminating text messages from Live Nation executives, such as 'Robin blind, baby. That's how we do it,' suggesting the market still perceives significant risk for the company.

States are in court today, restarting the trial after the DOJ settled. Text messages from Live Nation executives stating 'Robin blind, baby. That's how we do it' emerged. Live Nation stock, which initially soared after the settlement, fell below its pre-settlement value by the end of the week.