Nutter's Washington

Tax Extenders: What happened?

One issue that could move thorough Congress is the “tax extenders” package extending about 50 tax provisions that expired at the end of last year. On April 29, the House Ways and Means Committee approved six separate bills to make permanent a select group of the expired business tax provisions, including the R&D Credit, the active financing exception under Subpart F, and the controlled foreign corporation (CFC) look-through rule.  The cost of the Committee bills approaches $317 billion on a ten year basis without corresponding tax or spending reduction offsets.

The House has now passed the popular R&D bill. Ways and Means Chairman Camp (R-MI) has not announced plans for the Committee to consider additional bills addressing the other expired tax provisions.

In contrast to the House approach of moving selected permanent bills on a piecemeal basis, the Senate Finance Committee ordered reported a two-year retroactive extension, for 2014 and 2015, of almost all of the provisions that expired at the end of last year. The extension legislation has a two-year revenue cost of $84 billion with any offsets. 

Again, Senate Majority Leader Harry Reid formally blocked all floor amendments to the extender tax bill -- setting up another series of procedural votes amid continuing tension over floor procedure. The Reid move put the legislation in jeopardy despite its substantial bipartisan support.

Following on the heels of the Shaheen-Portman, Reid's blocking of GOP amendments to the tax extenders bill further enraged the minority party and led Republicans, in protest, to block the extender legislation. The GOP vote last Thursday blocked the extender legislation in protest over a longstanding Democratic policy. Sixty votes were needed to invoke cloture. Even though the bill enjoyed wide bipartisan backing, the measure fell short of cloture by seven votes.

It is too soon say the legislation will be buried as many members -- including many Republicans -- support it. Both sides appear eager to resuscitate the tax bill and will likely work behind the scenes on an amendment deal and eventual Senate passage.  Senators from both parties have filed a long list of amendments; the question is will any of them be considered?

I do not like the concept of extenders and would not vote to prolong the life of any of the expiring provisions. I believe they should be part of tax reform and be appointed into law by their merits. The sneaky budget gimmicks each year are dishonest and a fraud. However, I do believe in debate and voting, something the Senate Leadership obviously does not.  

 

Congress: Time is running out, almost time to go

It is hard to believe that it is the end of May and less than 20 days remain on the legislative calendar. Unlike past years, there are no major fiscal issues to resolve by Congress, no cliffs to climb, no impasses. There are very few must do legislative issues.  Much of the remainder of the legislative year will be spent on election year politics and addressing politically driven bills and amendments.

Underlying all the Congressional activity and non-activity are the coming elections. Predictions abound about Republican gains in the House and perhaps a change of control in the Senate. For the Republicans, the numbers look good.  However, each race has to be analyzed one by one and nothing can be certain with so much time to go. However, the prospects of the election results have acted to drive an even deeper wedge in Congress. 

 

 

 

Senator Reid: Displays anti-democracy course again.

The Senate is considering today a tax bill which would breathe life into around 50 tax provisions that expired at the end of last year. I believe that all these provisions should stayed expired but be considered as part of comprehensive tax reform. However, the passage of the extenders, as they are called, is supported my a wide swatch of Senators.

However, the process has hit a major snag. Majority Leader Harry Reid (D-NV) has refused yet again to allow amendments on a bill before the Senate. This is the second time this week. Kind of unbelievable.  The Senator has filed a cloture motion which will need 60 votes before the body can move for consideration.

I cannot figure out what or why Mr. Reid is doing this. This type of consistent conduct is way beyond political. It is destructive, against all rules of political comity and is contrary to our form of democracy. Reid should be ashamed. 

Whom is Reid protecting? Does he really distain Republicans so much that he does not believe that they deserve a vote. Does not he realize he has the democrat votes to table any amendment offer by the minority party. Does he think the public is so stupid they will not eventually think he is being unfair.

I do not like to raise the same subject again, but Senator Reid’s conduct is a insult to us all. Vote, let them vote. 

 

Energy Efficiency: Not on the watch of Harry Reid

The U. S. Senate failed yesterday to move to consideration of a bill which was largely thought as benign, not very intrusive, not very expensive as far as federal largesse goes and was supported by nearly everyone. The measure –sponsored by Senator Jeanne Shaheen (D-NH) and Senator Rob Portman (R-OH) called for tighter energy use efficiency guidelines for new federal buildings and incentives to make homes and commercial buildings more efficient.

The bill failed to pass for one reason and one reason only. The Majority Leader of the U.S. Senate Harry Reid (D-NV) refused to allow amendments sponsored by Republicans, including preventing a measure that would have approved construction of the proposed Keystone XL pipeline from even being considered. Republicans also were seeking amendments to speed up natural gas exports and prevent certain EPA regulations on coal-fired power plants from going into effect.

Mr. Reid offered to eventually have a vote on the Keystone pipeline but many of his promises of this nature seem to never get fulfilled. I am not sure what is the difference of having the vote now or later--other than later never comes. Senator Reid, of course, blamed Republicans for the bill's failure. He blames the Republicans for everything. In this case, he cannot legitimately blame them for denying a vote-even debate- on very serious national issues.

Senator Dan Coats, (R-IN) was quoted as saying "Over the past 10 months, the majority leader has allowed just nine roll call votes on Republican amendments," Wow, nine votes, How did ole Harry allow those?

I believe that in order for democracy to work, in order to maintain a sustainable system, the process must be open, fair and robust. Not the case anymore in the U.S. Senate and Senator Reid should stop being so chicken. If measures like the Shaheen-Portman bill cannot even get to consideration he can blame himself.  Let them votes. 

 

What are you afraid of, Senator Reid? Let them vote

 

I was wondering where democracy has gone? What has happened that the will of the elected representative is so thwarted/ Where is the ability that allowed issues to be discussed and voted in Congress, an ability that has vanished.  How did we get such into such a partisan dead end?

In this case I am referring to the United States Senate. Why are the Senators-particularly the Majority Leader Harry Reid (D-NV)- afraid to permit the minority party from offering amendments? What is Mr. Reid afraid of? Why is there such an impediment? He has the votes to defeat any Republican amendment. 

There is a bill pending now in the Senate sponsored by Senator Jeanne Shaheen (D-NH) and Senator Rob Portman (R-OH). The substance involves the low hanging fruit of energy efficiency. The legislation has bipartisan support, is loved by the business and environmental community and has been around for the last 3 or 4 years. Seems like some good policy there. It is about as noncontroversial as you can get and still do some good.

Consideration of this benign energy efficiency bill is set to fail in the Senate early next week at the hands of a filibuster by Republicans who are again livid of their inability to secure and votes on several amendments. Many will say the bill is a victim to the poisonous partisan atmosphere that pervades the Capitol.  In a way it is, but it is more than that.  It seems Harry Reid and Mitch McConnell (R-KY), the Republican leader are unable to agree on the process to consider the bill. Senator Reid took the usual action to block consideration of any amendments through a series of procedural steps to bar Republican amendments to the bill.

Republicans want to offer and get a vote on amendments involving on KXL pipeline, liquefied natural gas exports and U.S. EPA climate regulations. These are important issues, they deserve to be debated. The voters deserve to know the positions of their representatives.

 I understand the power of the majority. I know how the process works. Republicans have used the process when in the majority, although not to this extent. Every time, time and again, the minority party and even his own Democrats are denied a chance. What is he protecting? 

The conduct by the Majority Leader is wrong, it is destructive to the institution and it cheats the country. But, as I said, why are you afraid?

 

 

Time to Start to Pay Attention Again.

Congress has been back in session for the last couple of days. Can you feel the difference?   Mr. Obama, not sure where he is, not that it makes a difference. I have been taking a bit of time away from writing because it was tax season, was involved in a major local community event (where I got to carry a hammer around) and because not much is interesting.

Oh I know, the Donald Sterling mob is out there. The Russkies are sticking our country’s nose in all kinds of things while major geopolitical events are going on. Iranians continue to push their nuclear program along, Syrians are still laughing at the “red line” and horrors or horrors, and our government seems to want to pretend Israel is the only democracy in the Middle East.  Oh yeah, more things to ignore like IRS, Lois Lerner, Libya, health care, class warfare, racial politics, and on and on.  

 In any event, there are a few things going on. Tax extenders are coming up. Appropriation bills will spark some stuff.  Elections in a few months.  Time to pay attention again.