But Senate Majority Leader Mitch McConnell (R-Ky.) threw cold water on the possibility that a breakthrough could earn support from his members, who remain resistant to a package costing more than $1 trillion. McConnell said the sides remain “very, very far apart.” 

Pelosi on Wednesday agreed to postpone voting on a $2.2 trillion bill to continue talks with Mnuchin in hopes of a last-minute breakthrough. Mnuchin countered with a $1.62 trillion proposal, “offering more state and local assistance than GOP negotiators have to date in a sign of potential progress toward a deal,” Roll Call’s Lindsey McPherson reports. 

Per McPherson, “A person briefed on Mnuchin’s plan said it included $250 billion for state and local governments, which is $186 billion less than Democrats want in their latest $2.2 trillion package, but $100 billion more than the White House offered in talks that broke down over the summer.” The Treasury secretary offered to extend federal unemployment benefits at $400 a week through the end of the year. And Mnuchin says a deal would include another round of $1,200 stimulus checks:  

As the window for action begins to close in Washington, conditions for low- and middle-income earners continue deteriorating.

Indeed, the K-shaped recovery appears to be in full effect.

More financially secure people are enjoying the benefits of an ongoing recovery.

The stock market just closed out its second-straight quarter of major gains. In the last three months, “the S&P 500 and Dow Jones Industrial Average gained 8.5% and 7.6%, respectively,” the Wall Street Journal’s Gunjan Banerji writes. “The advances built on even bigger gains in the previous period, capping the best two-quarter performance since 2009. Both indexes are up more than 26% since the end of March.”

And homeowners are benefiting from a red-hot housing market, as those

Happy Tuesday and welcome back to On The Money, where we’re bracing for the first presidential debate of 2020.  I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL—Biden releases 2019 tax returns hours before first debate: Democratic presidential nominee Joe BidenJoe BidenTop House Republican calls for probe of source of NYT Trump tax documents Judge’s ruling creates fresh hurdle for Trump’s TikTok ban Harris says she hasn’t ‘made a plan one way or another’ on meeting Supreme Court nominee MORE and his running mate, Sen. Kamala HarrisKamala HarrisHarris says she hasn’t ‘made a plan one way or another’ on meeting Supreme Court nominee Compromise, yes — but how? A pre-debate suggestion Biden must clarify his stance on energy for swing voters MORE (D-Calif.), released their 2019 federal and state tax returns on Tuesday, hours before the former vice president meets face-to-face with President TrumpDonald John TrumpCensus Bureau intends to wrap up count on Oct. 5 despite judge’s order Top House Republican calls for probe of source of NYT Trump tax documents New Yorkers report receiving ballots with wrong name, voter addresses MORE in the first debate of the 2020 presidential race.

  • Biden and his wife reported an adjusted gross income of $985,233 and paid a total of $299,346 in taxes, for an effective tax rate of about 30 percent.
  • Harris and her husband, lawyer Doug Emhoff, reported an adjusted gross income of $3,095,590