February 26, 2010

 
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Dems Plot Strategy After Health Summit Stalemate
President Obama on Feb. 25 hosted a seven-hour health care summit with Republican and Democratic leaders from both chambers of Congress that failed to produce a bipartisan compromise and sets the stage for Democrats to move forward on their own.

While it is still unclear how the Democrats plan to proceed, one emerging option for passage of health care reform is for the House to pass the Senate bill that was approved on Christmas Eve. Senators would then vote on a package of changes to the Senate bill under a budget process known as reconciliation, which only requires 51 votes for passage. This option requires at least 218 members of the House to take a leap of faith by voting for a Senate bill they do not like with the hope that the Senate will be able to pass the reconciliation package that addresses the concerns of House Democrats.

It is important to note that Senate reconciliation procedures, while allowing for an expedited process and a simple majority for passage, permit an unlimited amount of relevant amendments to be offered.  Senate Republicans have seized on this loophole and have stated publicly that they are prepared to offer a never-ending list of amendments in an effort to kill health care reform. 

Given the risk of Senate Republicans successfully stalling reconciliation, finding 218 House Democrats who are willing to approve the Senate measure will be difficult; however, there is a rising possibility that the votes may be found to pass the Senate bill. 

The Senate bill contains a provision offered by Sen. Jeff Merkley (D-Ore.) that  targets small businesses in the construction industry. The Merkley language unfairly targets small construction firms by requiring them to provide health insurance or face stiff fines if they employ more than five workers. Meanwhile, small businesses in all other industries would be exempt from providing mandatory health coverage if they employ 50 workers or less.

If Congress proceeds along the reconciliation path, NAHB will mobilize an intensive lobbying and grassroots push in an effort to have the Merkley provision stripped out of the bill during the reconciliation process. The association has already spent many weeks laying the groundwork for this endeavor. Led by Sen. Blanche Lincoln (D-Ark.), four Democratic senators are on record opposing the provision, along with 18 Senate Republicans.  Other House and Senate Democratic and Republican leaders have also indicated to NAHB that they oppose the Merkley provision.

The situation remains fluid, as Democrats have still not determined their legislative strategy to push the health care overhaul across the goal line. Further complicating the circumstances is a crowded legislative calendar and the need to continue addressing the struggling economy. NAHB is monitoring events closely and will continue to lead the fight with other like-minded business groups to ensure that the Merkley language is eliminated from any final health care legislation to emerge from Congress.

For more information, contact Carlos Guiterrez at 1-800-368-5242, ext. 8242.

Geithner: Fannie, Freddie Overhaul Will Wait Until Next Year
Treasury Secretary Timothy Geithner told the House Budget Committee this week that the Administration will wait until 2011 to propose an overhaul of Fannie Mae and Freddie Mac.  While it is highly unlikely that Congress will act on this issue this year, lawmakers are expected to a hold a series of hearings on the future of Fannie and Freddie, with House Financial Services Committee Chairman Barney Frank (D-Mass.) planning to kick off the process next month. NAHB remains fully engaged in the debate, maintaining an open dialogue with key members of Congress on the association’s policy proposals to reform the two mortgage giants. For more information, contact Scott Meyer at ext. 8144. [return to top]
Wyden, Gregg Offer Bipartisan Tax Reform Plan
Sens. Ron Wyden (D-Ore.) and Judd Gregg (R-N.H.) this week introduced the “Bipartisan Tax Fairness and Simplification Act of 2010, legislation designed to overhaul the tax code around a broader tax base and lower rates.

The plan would create three tax rates for individuals at 15 percent, 25 percent and 35 percent and lower the top corporate tax rate from 35 percent to 24 percent. It would also repeal the alternative minimum tax, triple the standard deduction and retain popular deductions for home mortgage interest and charitable deductions. To help offset the tax reductions in the bill, Wyden and Gregg propose to eliminate or trim several tax breaks in the current code, particularly those that benefit multinational corporations.

 

The measure is the first major tax overhaul plan since House Ways and Means Committee Chairman Charlie Rangel (D-N.Y.) sought to lower the 35 percent corporate tax rate to 28 percent in 2007.

 

For more details on the legislation, click here or contact Greg Brown at ext. 8421. [return to top]

For more information or to contact us directly, please visit www.NAHB.org l ©2009, National Association of Home Builders

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