With help from Andrew Hanna

TAX BILL SPEEDS TO FINISH LINE: The House and Senate are poised to approve a sweeping overhaul of the nation’s tax laws this week, with votes expected in the House Tuesday morning and in the Senate Tuesday night or Wednesday morning. The bill’s passage will be a major legislative victory for Republicans — their only such for 2017. Then Congress must pass a spending bill by midnight Friday to avoid a government shutdown (more on that later).

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Republicans reached a compromise last week to meld the House and Senate versions of the tax bill, H.R. 1 (115). The conference report contains several provisions that deal with employment and immigration:

Retirement: The bill would eliminate part of the tax code that allows people to undo conversions of traditional IRAs (which defer taxes until withdrawal) to Roth IRAs (on which taxes must be paid up front). People typically convert to a Roth if they believe they’ll pay less in taxes at present than they would in retirement. The conversions themselves would remain untouched, but the ability to reverse them (known as a “recharacterization”) would be nixed.

Dan Caplinger writes in the Motley Fool that the new guidelines could influence whether savers decide to move forward with the conversions. “Because you won't have the ability to get a do-over, you'll have to be extremely careful to make the right decision at the outset,” he writes. “Otherwise, you won't have the ability to change your mind and will be stuck with a financial move that you might later regret.”

Sexual harassment settlements: The final bill includes an amendment from Sen. Bob Menendez (D-N.J.) that targets people who settle sexual harassment or abuse claims. The provision states that taxpayers can’t deduct such a settlement (or related attorney fees) if the payment was subject to a nondisclosure agreement. Several well-known public figures have reached settlements over claims of sexual misconduct and reportedly used nondisclosure agreements to cover their tracks, including former Fox News host Bill O’Reilly and Hollywood producer Harvey Weinstein.

Undocumented immigrant taxpayers: The Republican tax bill would double the child tax credit from $1,000 to $2,000, and increase the refundable portion of the credit to $1,400. But the measure requires people who file to include the Social Security number of each child — a way to keep undocumented immigrants from claiming the credit. The Pew Research Center estimated in 2012 there were roughly 775,000 unauthorized immigrants younger than 18 in the United States. The final legislation does not include provisions in the House bill that blocked undocumented immigrants’ access to the earned income tax credit and a credit for higher education expenses.

After the tax bill, Congress turns to a spending deal. House Republicans introduced legislation last week that would fund defense spending for the rest of the year and give lawmakers until Jan. 19 to sort out everything else. But 44 Senate Democrats sent a letter to GOP leadership that said they’d oppose such legislation. With that in mind, Senate Republicans are expected to rework the bill and send it back to the House, “which is where things could get ugly,” POLITICO’s Rachael Bade, Seung Min Kim and Jennifer Haberkorn report.

“While Democrats have at times struggled to fend off GOP legislative efforts, this time they have leverage,” the trio write. “Democratic leaders Nancy Pelosi of California and Chuck Schumer of New York appear to have backed off immigration demands they initially wanted addressed by the new year, but they're still adamant that any boosts in defense money be matched by increases in domestic spending.” Read the tax bill here, a summary of provisions here, and the latest on the spending bill dealmaking here.

GOOD MORNING! It's Monday, Dec. 18, and this is Morning Shift, POLITICO's daily tipsheet on employment and immigration policy. Send tips, exclusives and suggestions to thesson@politico.com, ikullgren@politico.com, ahanna@politico.com and tnoah@politico.com. Follow us on Twitter at @tedhesson, @AndrewBHanna, @IanKullgren and @TimothyNoah1.

NLRB RULES AGAINST MICRO-UNITS: The NLRB closed out Chairman Philip Miscimarra’s term Friday night by reversing yet another Obama-era decision. In a 3-2 vote, the board overturned the 2011 Specialty Healthcare ruling, which allowed workers under certain circumstances to form bargaining units that represented only a portion of the workplace (so-called “micro-units”). The decision lets the NLRB “undertake a more vigorous assessment of unit appropriateness,” the board’s Republican members wrote in a case that involved PCC Structurals, Inc., a metal casting company. Miscimarra’s term officially ended Saturday at midnight, but it’s possible that before the witching hour he signed other decisions that will trickle out in the coming days. Read the micro-unit decision here and more from Reuters here.

TODAY:

TRUMP’S NATIONAL SECURITY STRATEGY: President Trump will deliver remarks related to the administration’s National Security Strategy at 2 p.m. in the Ronald Reagan Building and International Trade Center. The document has in the past covered everything from international conflicts to domestic issues. Brian Bennett reports in the Los Angeles Times that “Trump’s draft was structured around four main pillars.” They are: “protecting the homeland through tightening immigration, advancing American economic prosperity by pressuring China and other trading partners, projecting hard power by building up the military, and increasing American influence.” More from the L.A. Times here.

SESSIONS TO WISCONSIN AND OHIO: Attorney General Jeff Sessions travels today to Milwaukee, Wis., and Toledo, Ohio, to deliver remarks on the administration’s efforts to combat violent crime. Last week, Sessions announced that the Justice Department will reallocate funds to deploy 40 assistant U.S. attorneys to various cities and towns, including Central Islip, N.Y., where the department will focus on the Salvadoran MS-13 street gang. The Milwaukee speech takes place at 11:15 a.m. (10:15 a.m. CT) and the Toledo speech at 3:10 p.m. Sessions heads to Charlotte on Tuesday. Watch livestreams here.

WHITE HOUSE TARGETS FAMILY MIGRATION: “The White House is embarking on a major campaign to turn public opinion against the nation’s largely family-based immigration system ahead of an all-out push next year to move toward a more merit-based structure,” Zeke Miller and Jill Colvin wrote Friday in the Associated Press.

“The administration was laying the groundwork for such a drive even before an Islamic State-inspired extremist who was born in Bangladesh tried to blow himself up in Midtown Manhattan [last week],” the pair write. “It is assembling data to bolster the argument that the current legal immigration system is not only ill-conceived, but dangerous and damaging to U.S. workers. … But their effort will play out in a difficult political climate, as even Republicans in Congress are leery of engaging in a major immigration debate ahead of the 2018 midterm elections.”

Trump took aim at family-based immigration in his weekly address Saturday, the Hill reports. "Because these individuals are admitted solely on the basis of family ties — not skill or not merit — most of this immigration is lower skill, putting great strain on federal welfare," he said. "And because there is no real selection criteria, the current system is totally incompatible with national security." The remarks follow Trump’s criticism of the diversity visa lottery during a speech Friday at the FBI's National Academy in Quantico, Va. The president called people who enter the U.S. through the lottery “the worst of the worst.” Read more from the AP here and the Hill here.

SEXUAL HARASSMENT UPDATE:

“Rep. Ruben Kihuen (D-Nev.) said Saturday that he will not seek reelection after facing accusations about sexual harassment,” POLITICO’s Elena Schneider reports. “Kihuen has been under fire after a former campaign staffer and a Nevada lobbyist both accused Kihuen of sexual harassment while he was a Democratic candidate and during his tenure as a state legislator.” The lawmaker denied the allegations against him, but said they would be a distraction in a reelection campaign. Kihuen joins four other members of Congress who have resigned or agreed to retire over allegations of sexual misconduct. The list includes one senator, Al Franken (D-Minn.), and Reps. John Conyers (D-Mich.), Trent Franks (R-Ariz.) and Blake Farenthold (R-Texas).

The tension on Capitol Hill over sexual harassment has soared to new heights, POLITICO’s Elana Schor and Rachael Bade report. “The details change almost daily, but the rumor won’t die: A credible news organization is preparing to unmask at least 20 lawmakers in both parties for sexual misconduct,” they write. “Speculation about this theoretical megastory is spreading like wildfire across Congress and beyond, a lurking bad-press boogeyman that’s always described as on the verge of going public. And it’s far from the only worry that’s seeped into the collective psyche of Capitol Hill, where members and aides are now perpetually bracing for the next allegation to drop. … Lawmakers and aides are consumed by one simple question: Who’s next?” More here.

“Democrat Andrea Ramsey [on Friday dropped] out of the race to take on GOP Rep. Kevin Yoder in Kansas after The Kansas City Star began questioning Ramsey about accusations made against her in a 2005 sexual harassment lawsuit,” POLITICO’s Scott Bland and Maggie Severns report. “Ramsey was accused of making sexual advances towards a former employee of LabOne, a company where she worked in human resources.” More here.

“The nation’s moment of reckoning on sexual harassment isn’t simply shaking up the upcoming midterm election by forcing candidates and incumbents out of races — it’s also altering the traditional terms of debate,” POLITICO’s Elena Schneider reports. “In Florida, where Democrat Mary Barzee Flores is running in a crowded primary to replace retiring GOP Rep. Ileana Ros-Lehtinen, the former state circuit judge focused her first ad on the issue of sexual misconduct in the workplace.” More here.

“Nine more women say that Alex Kozinski — a high-profile federal judge who sits on the U.S. Court of Appeals for the 9th Circuit — subjected them to sexual comments or other conduct, including four who say he touched them inappropriately,” Matt Zapotosky writes in the Washington Post. “Kozinski, known for his libertarian views and colorful written opinions, already had been accused of subjecting several women to a range of inappropriate sexual conduct or comments, and the circuit’s chief judge on Thursday took the first step in launching an investigation into his behavior. … The new allegations — which span decades and include not just those who worked for Kozinski but also those who encountered him at events — bring the total number of women accusing the judge of inappropriate behavior to at least 15.” More here.

“Carolina Panthers owner Jerry Richardson will put the NFL franchise up for sale after the end of this season in the wake of accusations against him that include sexual harassment and a racial slur toward a scout who has since left the team,” according to ESPN. Sports Illustrated reported Sunday that Richardson had settled with at least four former employees over inappropriate workplace comments and conduct, including claims related to the team’s seemingly innocuous tradition of “jeans day" on Fridays. “As the team’s owner, Jerry Richardson, made his rounds on the way to his spacious office, he would ask women to turn around so he could admire their backsides,” Sports Illustrated reports. “Richardson’s conduct was treated as something of a running office joke, according to multiple former Panthers team employees, all of whom spoke on the condition of anonymity out of fear of retaliation.” More from ESPN here and Sports Illustrated here.

“A former NBC employee who worked on Chris Matthews' show and complained that the cable news star made inappropriate jokes and comments received a separation-related payment when leaving the network,” POLITICO’s Michael Calderone reports. “The woman, who has not been publicly identified, claimed in 1999 that Matthews made inappropriate comments about her in front of colleagues, according to the spokesperson. The incident was investigated and Matthews’ comments were determined to be inappropriate, but they were not found to be intended as propositions, according to the spokesperson.” More here.

MIN WAGE TO RISE IN 18 STATES: The minimum wage will go up in 18 mostly blue states in 2018 following a wave of ballot referenda and statehouse legislative action over the past several years. Arizona, California, Colorado, Hawaii, Maine, Michigan, New York, Rhode Island, Washington and Vermont have all passed minimum wage increases that go into effect across a period of several years. Eight other states — Alaska, Florida, Minnesota, Missouri, Montana, New Jersey, Ohio and South Dakota — will make automatic adjustments to match a higher cost of living.

Business for a Fair Minimum Wage, a Boston-based business network, cheered the rate hikes and said they’ll “boost consumer spending, reduce costly employee turnover and increase productivity and customer satisfaction.” The federal hourly minimum wage ($7.25) remains in place for 21 states. Peruse the minimum wage across the U.S. in an Economic Policy Institute chart here.

CUOMO LOOKS AT TIP CREDIT: New York Gov. Andrew Cuomo (D) will direct the state labor commissioner to hold public hearings that explore the possibility of ending the minimum wage tip credit. The credit allows employers to pay less than the minimum wage to certain tipped workers (see a breakdown for New York State here). Cuomo signed a bill last year that will bring the minimum wage to $15 for large employers in New York City by Dec. 31, 2018.

Paul Sonn, general counsel with the left-leaning National Employment Law Project, lauded the announcement. “Phasing out the unfair tip credit would improve the lives of hundreds of thousands of struggling New Yorkers, many of them women, workers of color and immigrants,” he said in a written statement. “Even with tips, most of these workers are barely scraping by.”

OPM TARGETS UNIONS: “Federal agencies may use President Trump’s executive order abolishing labor-management councils across government as justification for throwing out collective bargaining agreements with their workforces, guidance from the Office of Personnel Management suggested Wednesday,” Erich Wagner reports in Government Executive.

“In a memo to agencies, acting OPM Director Kathleen McGettigan instructed departments to abolish their labor-management forums and eliminate any rules or policies related to those forums,” the outlet reports. “The memo also ordered agencies to examine whether their agreements with federal employee unions include provisions involving the forums or other labor outreach for ‘pre-decisional involvement,’ and when applicable, to renegotiate or get rid of them.” More here.

COFFEE BREAK:

—“Trump had fewer deportations than Obama's first year,” from Axios

—“Gutiérrez says DACA fix may not come until 2018,” from the Hill

—“Geert Wilders calls for Trump-style Muslim travel ban in Europe,” from the Guardian

—“Kirsten Gillibrand, long a champion of women, finds the nation joining her,” from the New York Times

—“GOP, with tax bill finalized, makes its case to a skeptical public,” from the Washington Post

—“Video: Trump administration performing illegal immigration raid, advocates say,” from Newsweek

THAT’S ALL FOR MORNING SHIFT.