News: Capitol Hill Actions May Affect NPO’s

Our colleagues at the National Council of Nonprofits shared this news from D.C.

Political Positioning, Not Policymaking
With the political campaign season heating up, partisans in Congress appear to be focusing on preening for their base voters rather than making any meaningful progress on the great issues facing the nation. Last week, the House voted – for the 33rd time – to repeal the health care reform law, the Affordable Care Act, knowing that the Senate will not follow suit. Senate Democrats took up a small employer jobs package that would provide nonprofit and for-profit employers a direct incentive to increase the wages of existing employees or make new hires, only to have the measure fail over a dispute with Senate Republicans over counter proposals to extend the Bush-era tax cuts. Today, Senate Democrats, believing that their base is appalled by the vast sums of monies secretly flowing to Super-PACs, will seek to take up the DISCLOSE Act to require groups to disclose all expenditures of $10,000 or more on election-related communications, as well as the names of contributors that gave $10,000 or more to fund such efforts. It is clear that the Senate Republicans will filibuster the bill, preventing any action. So goes Congress in the months before a major election.

Dueling Tax-Rate Extensions

President Obama has proposed, and most Senate Democrats support, a year-long extension of all of the expiring 2001 and 2003 individual tax rate cuts except for those applying to couples earning more than $250,000 per year. Senate Republicans are threatening a filibuster on the President’s proposal unless there also is a vote to maintain all of the lower tax rates through 2013. Senate Majority Leader Harry Reid (D-NV) has stated that any bill would apply only to the tax rates and not include other expiring or expired tax provisions, like the estate tax or charitable incentives such as the IRA rollover, although draft legislation reportedly includes several such provisions, presumably for negotiation purposes. Separately, House Speaker Boehner has promised a vote before the month-long August recess on extending all of the tax cuts for a year and including an as-yet undisclosed mechanism to ensure that Congress also enacts comprehensive tax reform.

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