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Hey, good morning, Playbooker, some Rogumonovalin. It's Thursday.

Today's show how inflation is impacting the latest round of reconciliation talks.

It's your Politico Playbook daily briefing.

Inflation hit a 41-year high on Tuesday, as the consumer price index accelerated to 9.1% in June. That, in turn,

affects what might be Biden's last best shot at a deal on reconciliation. Senator Joe Manchin told

reporters that the new numbers make him, quote, more cautious than I've ever been. Everything

needs to be scrubbed, anything that can be inflationary. From Alan Fram from

the Associated Press, quote, it was unclear what Impact Mansion's comments would have on his

closed-door talks with Schumer, which have shown progress lately. But they suggested he believed

that Dey's inflation report strengthened his leverage in that bargaining. And beyond that,

in winning enough Democratic votes to push any agreement

through the tightly divided Congress. Which brings us to an emerging source of anxiety for

Democrats in negotiations, taxes. Democrats have long campaigned on raising tax rates on the

wealthiest Americans and large corporations, and Mansion himself wants to use reconciliation

to revisit the issue in the context of deficit reduction.

But now, Dems are agonizing over the potential political pitfalls that come with raising taxes in an election year,

as Politico's Burgess Everett and Sarah Ferris write in Playbook this morning.

The policy considerations at play, quote,

There's relatively broad agreement on using any

party line bill to increase taxes on some high-earning Americans who run so-called pass-through

businesses to pay for Medicare solvency.

...