Aired On Tuesday, October 19, 10 AM, On POLITICO Playbook Audio Briefing.

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An unusual confluence of factors have brought back a climate change fighting policy that many Democrats saw politically toxic, the carbon tax, while the idea has long been the favorite tool of economists like Janet Yellen, Republicans like Mitt Romney, and the American petroleum institute, the Biden White House has always avoid pricing carbon. The president's deficit both the general politics and the specific fact that a carbon tax could violate the president's pledge not to raise taxes on Americans making under $400,000 a year. Instead, by then placed his faith in the clean electricity performance program, doctored by senator Tina Smith, which would pay utilities to shift to clean energy and find those that didn't. But the CEP now seems almost dead, a casualty of reconciliation grim Reaper Joe Manchin, proponents of the plant say the mansion, despite his public opposition to the Biden version, spent weeks engaged in negotiations over a modified CEP that was friendlier to coal and natural gas, but eventually declared it unworkable. A search familiar with the talks said, Manchin and The White House were negotiating on CEP. And mention was into something, likely a lesser version or a watered down version, but still something, and then he decided no CEP at all. So it's not like he had always been against it. That was a new position. Now The White House is looking to meet targets without CEP. Sack Coleman, who covers the issue closely for Politico, told us that while his sources say that CEP isn't technically dead, an assessment shared by a top White House official, the fact that Manchin, who talked about it over the phone on Monday, isn't actively offering ideas for how Democrats in The White House could make it work for him is just as problematic, so the source close to the talks. Basically the question is can The White House revive CEP in some form? The answer from Senate negotiators is that it's unlikely in civil progressive Democrats are happy to have a shot at resurrecting the carbon tax, which is supported by democratic senator Ron wyden, Chris Coons, and Brian shouts among others when democratic senator involved with the climate negotiations said that a carbon tax was still in the mix and that we are getting pretty close to a deal. Majority leader Chuck Schumer has previously told senator whited to make sure that any carbon tax complies with Biden's $400,000 tax pledge, which could be accomplished by semi rebates back to consumers. Enter Kirsten sinema, the return of the carbon tax has also been facilitated by the Arizona senator, whose revolt against some of the other tax hikes in the Biden plan forced legislators to come up with additional options. Those include a few on carbon, which widen, it was Senate finance chairman is in charge of writing the tax provisions, was happy to put back on the policy menu. AP also sees things headed toward a carbon tax as well, building that a middle ground proposal after the demise of CEP could include widens quote tax credits for energy producers that reduce emissions and pollution fees to be paid by industries for every ton of planet warming carbon dioxide they emit. Finally, CNN reports that meeting himself broke the news to Smith that the west virginian couldn't back any form of CEP. Smith told CNN. He told me last week he just didn't think he could get there on the clean electricity program. For rolling back to CEP, which is a foundation of the president's action plan, that's a huge concession. The question on my mind is, what are we going to do instead? She said senators are now considering a carbon tax. But CNN also added this rather important caveat. It's unclear if Manchin will support that. Democrats today are expected to reveal a scaled back version of the party's proposal to use the IRS to crackdown on tax cheats. The move scooped by Washington Post Jeff Stein comes after the banking industry and Republicans called foul, suggesting the proposal would be a gross invasion of people's bank accounts and privacy. The change according to The Washington Post. Initially, the department of treasury and Senate Democrats had proposed requiring financial institutions to provide information on bank accounts with the more than $600 in annual deposits or withdrawals. The new proposal will instead require the provision of additional information for accounts with the more than $10,000 in annual deposits or withdrawals. Here's what's up in Washington today, starting with The White House. And 9 30 a.m. eastern, president Joe Biden will receive the president's daily brief. At two p.m., Biden and vice president Kamala Harris and treasury secretary Janet Yellen will meet with House progressives in the Oval Office. At four 30, they'll do the same with a bicameral group of moderates in the Oval Office. Press secretary Jen soccer will brief at one p.m.. The Senate will meet at ten. The finance committee will hold a hearing at 9 30 a.m. on the nomination of Chris Magnus as customs and border protection commissioner, the house will meet at two p.m. to take up several bills with votes postponed until 6 30. The January 6th select commission will meet at 7 30 p.m. to vote on holding Steve Bannon on criminal contempt of Congress. All right, that's all I've got for you today. Formalism was breaking in D.C. right now. Subscribe to the playbook newsletter. Let's add Politico dot com slash playbook. Our music is composed by breakmaster cylinder. I'm rogue metal and have a great Tuesday. We'll see first thing tomorrow morning. Google keeps more people safe online than anyone else, with products that are secure by default, private by design and put you in control. Everyday Google blocks a 100 million phishing attempts checks the security of 1 billion saved passwords and.

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