In the know. Avoiding Another Shutdown The FY 2015 budget is set to expire on Dec. 11th. Congress must act on the budget in order to avoid a government shutdown. And it seems that Republicans and Democrats alike want to avoid a shutdown this year! Before adjourning, Congress passed HJRes 124, a continuing resolution that funds the federal government until Dec. 11. Congress now must pass either another short-term funding bill or a long-term “omnibus” bill that would fund the government through the end of FY 2015. Looking ahead to the Republican-led Senate and House, House Appropriations Chairman Hal Rogers (R-KY) explained: “We need to do an omnibus bill funding the entire government for the rest of the year, and get that whole business behind us, so that come January, [McConnell] will have a clean slate rather than looking backwards to old fights that we could look forward to making positive changes,” in an interview with Roll Call. Senate Appropriations Chairwoman Barbara Mikulski (D-MD) has also stated her interest in passing an omnibus funding bill in December that will include all 12 appropriations bills.” From our Hill Sources: Passing an omnibus bill shouldn’t be difficult this time around. With the spending caps for FY 2014 and 2015 that were established in last December’s bipartisan budget deal, the House and Senate are relatively close in their versions of various appropriations bills. However, some conservatives in Congress may push for another short-term continuing resolution so they can introduce new appropriations bills with next years Republican-led House and Senate. Appropriations Bills Currently Pending Before Congress: Agriculture, Rural Development, Food and Drug Administration Approps: HR 4800 in the House and S 2389 in the Senate Commerce/Justice/Science Approps: HR 4660, passed by the House on May 30th; and S 2437 in the Senate. Defense Approps: HR 4870, passed by the House on June 20th. Energy & Water Approps: HR 4923, passed by the House on July 10th. Financial Services Approps: HR 5016, passed by the House on July 16th. Homeland Security Approps: HR 4903 in the House. Interior & Environment Approps: HR 5171 in the House. Legislative Branch Approps: HR 4487, passed by the House on May 1st. Military Construction/Veterans Affairs Approps: HR 4486, passed by the House on April 30th. State/Foreign Operations Approps: HR 5013 and S 2499 in the House. Transportation/HUD Approps: HR 4745, passed by the House on June 10th; and S 2438 in the House. Ebola The Obama Administration has requested emergency funding from Congress to address Ebola in the US and abroad. The $6.18 billion request aims to enhance comprehensive efforts to address this urgent situation. According to the White House, “to help meet both immediate and longer-term requirements, $4.64 billion is requested for immediate response and $1.54 billion is requested as a Contingency Fund to ensure that there are resources available to meet the evolving nature of the epidemic.” On Wednesday, Nov. 12, 2014, at 2 pm, the Senate Appropriations Committee will hold a Full Committee hearing on the US governments response to the Ebola outbreak. (See the list of people testifying). The Committee will also evaluate the President’s request for emergency supplemental funding request. Proposed Travel Bans Congressmen Kenny Marchant (R-TX) and Sam Johnson (R-TX) plan to introduce legislation that would ban travel and travel visas to the US for foreign nationals traveling from or through countries designated by the World Health Organization (WHO) as having widespread and intense transmission of Ebola. Stop Ebola Act (Draft): Would impose special limitations on the issuance of visas to, and the admission into the United States of, aliens having certain associations with countries with widespread and intense transmissions of Ebola Virus Disease. Rep. Dennis Ross (R-FL) has drafted a bill that will restrict all commercial flights from traveling to and from Ebola affected countries until the virus is declared to be contained and no longer a threat as determined by the Director of the Center for Disease Control. Rep. Ross explained, now that two of our health care workers have contracted the virus I am putting my foot down. This legislation is a more serious approach to preventing Ebola from further infiltrating our homeland. Contain Ebola and Stop the Epidemic (CEASE) Act (Draft): Would ban the arrival of any commercial aircraft from a country in which the Ebola virus disease has reached epidemic proportions as determined by the Director of the Center for Disease Control. Would deny a visa to any individual whose travel itinerary includes a departure from such a country. Military Authorization against the Islamic State (ISIS/ISIL) Last Wednesday, President Obama announced that he will ask Congress for new war power authorities against the Islamic State: I’m going to begin engaging Congress over a new Authorization to Use Military Force against ISIL. The world needs to know we are united behind this effort, and the men and women of our military deserve our clear and unified support.” His announcement came after months of debate on whether the President already had sufficient authority to fight the Islamic State as commander-in-chief. Some in Congress believe that the President should seek authorization for military action against ISIS, especially as the airstrikes continue. Congress did approve funding to train and arm moderate Syrian rebels in the fight against ISIS, which was a part of the Continuing Resolution (HJRes 124). House Speaker John Boehner believes Congress should debate authorizing military action against ISIS in Syria after the new Congress convenes in January, according to the New York Times. Proposals Regarding Military Action Before adjourning for recess, Members of Congress introduced several proposals authorizing military action. Authorization for Use of Military Force against International Terrorism Act (HR 5415): —Bipartisan— Authorizing the use of military force against international terrorist groups, including the Islamic State in Iraq and Syria (ISIS) and al Qaeda and its affiliates, like al Nusra, Ansar al Sharia, al Shabaab and Boko Haram, while encouraging close coordination with NATO and regional allies on any action. According to the bill sponsor, Congressman Frank Wolf (R-VA), the motive behind the bill is to end any ambiguity about the Presidents authority -- or the Congress support -- for a US-led international coalition to disrupt and eliminate ISIS and al Qaeda-affiliated terrorist groups from committing genocide. Authorizing Military Force Against ISIL; Sunsetting After 18 Months (HJRes 125): According to the resolution’s sponsor: would give temporary, tailored authority for the combat ongoing against ISIL in Iraq, and for strikes against ISIL targets in Syria; and would harmonize the legal authorities under which the President is authorized to take offensive action by sunsetting the 2002 Iraq AUMF immediately and then sunsetting both the new authorities and the 2001 AUMF eighteen months after the enactment of the joint resolution. Does not authorize the use of ground combat forces in Iraq or Syria. Authorization for Use of Military Force against the Islamic State; Sunsetting in One Year (SJRes 44): Authorizes the use of United States Armed Forces against the Islamic State in Iraq and the Levant, with four key limitations, according to the resolution’s sponsor: 1) No US ground troops; 2) Repeal of the 2002 Iraq Authorization for Use of Military Force; 3) Sunset after one year; 4) Narrow definition of associated forces. Authorization for the Use of Military Force Against the Islamic State of Iraq and the Levant (ISIL) (HJRes 123): According to the bill sponsor, it’s past time for President Obama to define a course of action. The brutal murder of two American journalists was a shocking wake up call for the public, but the threat ISIL poses to America’s national interests has grown unchecked for some time. We need a strategic plan to stop the spread of their hateful ideology and violence. The defeat of ISIL must be a top priority – this resolution authorizes the use of force for a definite period and requires President Obama to develop and share his strategy with Congress and the American people. Tax Reform and Tax Extenders Taxation looms large as Congress returns from recess, particularly with House Ways and Means Committee Chairman Dave Camp’s (R-MI) plans to retire. He’s making tax reform a priority during the Lame Duck session. (In fact, there’s a draft comprehensive tax reform bill, the Tax Reform Act, that’s been circulating in Congress). Rather than comprehensive tax reform, Congress may consider extending certain tax provisions that expired on January 1, 2014 — and reinstituting them retroactively. Senate Finance Committee Chairman Ron Wyden (D-OR) is hopeful to pass tax extender legislation during the Lame Duck session: EXPIRE Act (S 2260): Provides an expiration date for America’s dysfunctional tax code. Its passage is a jumping off point for comprehensive bipartisan tax reform that focuses on America’s economic growth and strengthening the middle class,” according to the Senate Finance Committee. As Chairman Wyden explained, in the absence of needed long-term reforms, here’s what happens if Congress now justdrops extenders at this time: The tax credit that helps returning veterans find good-paying jobs would expire. The biggest federal incentive for scientific research would vanish. Homeowners fortunate enough to have their mortgages lowered or forgiven could get hit with a huge, unexpected tax bill. Without the New Markets Tax Credit, communities mired in poverty would lose a proven tool to draw investments and jobs. Clean energy would take a blow, threatening good American jobs and our ability to compete on technology with countries like China and Japan. Families paying for college would lose a $4,000 deduction. The House may take a piecemeal approach to address the expired provisions included in the Senate’s EXPIRE Act. They’ve introduced a series of bills that would make 10 provisions permanent: America Gives More Act (HR 4719): According to the House Ways and Means Committee, this bill: will make permanent and expand the charitable deduction for contributions of food inventory by businesses regardless of how they are organized; ensures that seniors who donate to charities from their Individual Retirement Accounts can do so without a tax penalty; will make permanent the deduction for contributions of conservation easements. — Passed the House on July 17, 2014; goes to the Senate next for consideration — American Research and Competitiveness Act (HR 4438): —Bipartisan— Makes permanent the research and development credit, which has been part of the tax code since 1981, according to the House Ways and Means Committee. — Passed the House on May 9, 2014; goes to the Senate next for consideration — Permanent S Corporation Built-In Gains Recognition Period Act (HR 4453): —Bipartisan— Under current law, an S corporation is subject to an entity-level tax at the highest corporate rate on certain built-in gains of property that it held while operating as a C corporation,” according to the House Ways and Means Committee. The tax applies to gain recognized within ten years from the date that the C corporation elected to be an S corporation, and in the past, Congress has shortened that period to five years. This bill would make permanent the five year period, eliminating a significant deterrent that often discourages closely held C corporations from electing S corporation status, thus subjecting them to double tax. — Passed by the House on June 12, 2014, and goes to the Senate next for consideration. — CFC-related payment look-through rule (HR 4464): —Bipartisan— Makes permanent the look-through treatment of payments between related controlled foreign corporations Permanently Extend the Subpart F Exemption (HR 4429): —Bipartisan— Would permanently extend the subpart F exemption for active financing income. Permanent Bonus Depreciations (HR 4718): —Bipartisan— Would help companies better access capital, invest in new facilities and create American jobs by permanently extending 50 percent bonus depreciation – i.e., allowing businesses to deduct immediately, or “expense,” half of the cost of new equipment purchases – while lifting some restrictions to allow certain tax credits to be used for capital reinvestment, and ensuring more companies may take advantage of bonus depreciation,” according to the bill sponsor. — Passed by the House on July 11, 2014 and goes to the Senate next for consideration — America’s Small Business Tax Relief Act (HR 4457): —Bipartisan— Would provide a permanent extension of Section 179 expensing at a level of $500,000. According to the House Ways and Means Committee, Section 179 is a bipartisan provision that has been in place since the 1950’s. But, businesses, farmers and ranchers cannot reap the full benefits when they have no idea if the provision is going to be around the next year, or what it may look like. This hurts their ability to plan for the future and expand their business. — Passed by the House on June 12, 2014 and goes to the Senate next for consideration — From our Hill Sources: Congressional staffers believe a two-year extenders package would be likely during the Lame Duck session. And then looking ahead, they felt optimistic about broader tax reform in 2015 or beyond
Posted on: Tue, 11 Nov 2014 02:31:08 +0000
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