Washington Update - 02/24/2005 (Plain Text Version)

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Class Action Measure Enacted Into Law

Following up on the Senate’s passage of landmark tort reform legislation a week earlier, the House did as promised when it approved the “Class Action Fairness Act” on Feb. 17 – and President Bush immediately signed the bill into law the next day. NAHB applauded this swift action, which will help curb the number of frivolous lawsuits that have needlessly cost the business community billions of dollars annually and harmed housing affordability.

The bill specifically addresses ongoing abuses in multi-state class action cases, including "forum shopping" — where lawyers actively seek out local venues that have the reputation of handing out huge damage awards to plaintiffs. NAHB helped secure passage of the reform bill by designating it as a "key vote" for members of Congress. To view NAHB’s press release, click here. For further information, contact J.P. Delmore at 800-368-5242 x8470.

Lawmakers Mobilize on Canadian Softwood Lumber

At the request of NAHB, Reps. Jim Kolbe (R-AZ), Roy Blunt (R-MO), Steny Hoyer (D-MD) and Richard Neal (D-MA) sent a “Dear Colleague” letter to the full House of Representatives requesting signatures on a letter to President Bush in support of affordable housing and in opposition to the continuing duties on imported Canadian softwood lumber. Access to Canadian lumber supplies are currently jeopardized by anti-dumping duties and countervailing duties totaling more than 20%. The letter states: “The current duties, which have been found illegal under both the WTO and NAFTA, deprive Americans of affordable housing, the first step in the American Dream. The border taxes should be stopped at once, and past payments given back.” NAHB will be working with the letter’s sponsors to get more House members to sign on to the correspondence before sending it to the President. For more information, contact Jason Lynn at x8470. [return to top]

Association Health Plans Introduced in Senate

The Senate last week introduced its version of association health plan legislation when Senators Olympia Snowe (R-ME), Jim Talent (R-MO) and Christopher “Kit” Bond (R-MO) introduced S. 406, the “Small Business Health Fairness Act.” The measure would allow small businesses to band together across state lines to purchase discounted insurance through association health plans. The lead sponsors were joined by several original cosponsors, including Senators Robert Byrd (D-WV), Elizabeth Dole (R-NC), Kay Bailey Hutchison (R-TX), Mel Martinez (R-FL), John McCain (R-AZ) and David Vitter (R-LA). Earlier this month, the House introduced companion legislation H.R. 525, championed by Reps. John Boehner (R-OH), Sam Johnson (R-TX), Nydia Velazquez (D-NY) and Albert Wynn (D-MD). The House Education and Workforce Committee is expected to consider the legislation shortly. For more information, see our press release or contact Jenna Morgan Hamilton at x8470. [return to top]

Bankruptcy Bill Advances in Senate

On Feb. 17, the Senate Judiciary Committee approved by a vote of 12 to 5 bankruptcy reform legislation S. 256, the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.” Three Democrats -- Senators Dianne Feinstein (CA), Herb Kohl (WI) and Joseph Biden (DE)-- joined all the Republicans in approving the bill. Senate Majority Leader Bill Frist (R-TN) has stated that he will bring S. 256 to the Senate floor during the week of Feb. 28. The measure contains two provisions important to NAHB members—one dealing with the homestead exemption and one regarding the automatic stay that provides for an expedited process by which a landlord can move to evict a tenant who has declared bankruptcy. NAHB supports the current version of the bill. The measure is expected to go to the Senate floor in early March. To view the bill, click here and type S. 256 in the upper left hand corner. For more information, contact J.P. Delmore at x8470. [return to top]

Greenspan Urges Fannie/Freddie to Limit Holdings

The Senate Banking and House Financial Services Committees heard testimony last week from Federal Reserve Chairman Alan Greenspan on the state of the nation’s economy. While the focus of his testimony was U.S. monetary policy and not about Fannie Mae and Freddie Mac, Greenspan did comment briefly on the housing government-sponsored enterprises (GSEs) during the House Financial Services Committee hearing. The Fed chief suggested that Congress should limit the portfolios of Fannie Mae and Freddie Mac to prevent “potential systemic risks down the road.” Specifically, Greenspan said that he felt the two companies should reduce their portfolios of mortgage loans to about $100 billion or $200 billion from a combined total of $1.7 trillion today. He went on to note that the GSEs have been very effective at securitizing mortgages and should be encouraged to do more. The Senate Banking Committee is considering calling Greenspan back to Capitol Hill at a future date to testify on GSE regulatory reform efforts currently under way in Congress. NAHB continues to engage in talks with key members of the Senate Banking Committee and House Financial Services Committee regarding our interests and concerns with pending legislation. For more information, contact Greg Brown at x8470. [return to top]

Presidential Tax Reform Panel Holds First Meeting

The President’s Advisory Panel on Federal Tax Reform met for the first time last week, receiving testimony from four witnesses. The hearing focused on the history of the income tax system and a comparison of an income tax versus a consumption tax. The witnesses all generally agreed that the presidential directive to maintain a progressive tax code that incorporates homeownership and charitable giving incentives would make it extremely difficult to eliminate the current income tax and replace it with a consumption tax. When the panel next convenes on March 3 in Washington, it is expected to focus on the complexity of the current tax system. Once the panel moves from the current fact-finding portion of its agenda, NAHB will likely submit testimony on the current income tax system and alternative tax systems. The focus will be on alternatives that preserve tax incentives for homeownership. For more information, contact Jim Tobin at x8470. [return to top]

“No Taxation Without Respiration”

On Feb. 17, Reps. Kenny Hulshof (R- MO) and Bud Cramer (D- AL) introduced H.R. 8, the “Death Tax Repeal Permanency Act,” which would permanently repeal the unpopular estate tax, also known as the death tax, after 2010. The legislation is identical to a bill that passed the House in the 108th Congress by a wide 264-163 margin. Senators Jon Kyl (R-AZ) and Bill Nelson (D-FL) last week also introduced a companion Senate bill (S. 420) that would kill the death tax. In 2001, President Bush signed into law the “Economic Growth and Tax Reconciliation Act,” which phases out the estate tax until it disappears entirely in 2010. But it roars back to life in 2011, when the entire estate tax cut sunsets. NAHB issued a press release in support of making the death tax permanent. To view the bills, click here and type H.R. 8 or S. 420 in the upper left hand corner. For more information, contact Jim Tobin at x8470. [return to top]