The House will meet on Monday and Tuesday to consider several pieces of legislation under suspension of the rules, with no votes expected. The Senate will resume consideration of the National Defense Authorization Act. The White House proposed a fiscal cliff deal including $1.6 trillion in tax increases and $600 billion in entitlement cuts, but Republicans rejected it as a non-starter due to high tax increases and insufficient entitlement reform details. Negotiations appear stalled as both sides hold firm in their positions on taxes and spending.
The House Republican fiscal 2013 federal budget blueprint proposes significant cuts in government spending and includes reforms to the tax code. It recommends consolidating the current six individual tax brackets into two brackets of 10 and 25 percent, lowering the corporate tax rate to 25 percent, and shifting the U.S. to a territorial tax system. The blueprint also proposes expanding the tax base by enacting unspecified base broadening measures for both individual and corporate taxpayers.
The document discusses recent legislative activity in Congress and regulatory actions by federal agencies. It covers topics such as the fiscal cliff negotiations, defense appropriations, agriculture issues including a potential one-year farm bill extension, education reforms, and energy policies including a natural gas export study. Upcoming hearings are also noted on various topics.
Senate Finance Committee Asks Members to Communicate Tax Reform PrioritiesPatton Boggs LLP
The Senate Finance Committee is asking Senators to submit proposals by July 26th detailing which tax expenditures should be maintained, repealed, or added as part of tax reform efforts. The Committee intends to take a "blank slate" approach and eliminate all special tax provisions unless there is clear evidence they help the economy, make the tax code fairer, or promote other policy objectives. Both the Senate Finance Committee and House Ways and Means Committee are committed to fundamental tax reform legislation within the next year before certain Chairmen leave their positions.
Cbizmhm special report_fiscal-year-2016-budget-proposalsCBIZ, Inc.
President Obama released his $3.99 trillion FY 2016 budget proposal calling for tax increases on higher-income individuals and businesses, expanded tax credits for families and education, and making some business tax breaks like research credit permanent. The budget also proposed international tax reforms including a one-time 14% tax on foreign earnings and a 19% minimum tax on foreign profits. Congressional Republicans and Democrats have indicated willingness to discuss tax reform but differ on key issues like rates and which deductions to eliminate.
The summary provides the following key points in 3 sentences:
The House will consider several bills under suspension of the rules on Monday and Tuesday, including bills related to natural gas pipelines in national parks and the redesignation of federal aeronautical facilities. The Senate will consider an emergency supplemental appropriations bill on Monday to provide $60.4 billion in disaster aid. The House schedule for the rest of the week includes consideration of various bills related to small businesses, Medicare, defense authorization, and intercountry adoptions.
The document discusses America's growing debt problem and some potential solutions. It outlines several "hidden debt bombs" not captured in official debt figures, such as losses from Fannie Mae and Freddie Mac, unfunded promises for Social Security and Medicare, and reduced tax revenue from tax breaks. Some proposed solutions mentioned include raising the Social Security retirement age, reducing health insurance tax breaks, broadening the tax base, and considering new revenue options like a value-added tax.
The document discusses W. Edwards Deming and his contributions to quality management. It provides background on Deming, including that he was born in Iowa in 1900 and studied physics and statistics. It outlines Deming's famous 14 Points for management, which focus on continuous improvement, eliminating fear in the workplace, and involving all employees. It discusses some of Deming's key ideas, including that 85% of a worker's effectiveness depends on their environment, not individual skill. Deming believed in cooperation and eliminating competition between workers. His theory of profound knowledge emphasized understanding psychology and systems thinking. Deming had a significant impact on management practices in the 20th century by pioneering statistical quality control and total quality management.
The House Republican fiscal 2013 federal budget blueprint proposes significant cuts in government spending and includes reforms to the tax code. It recommends consolidating the current six individual tax brackets into two brackets of 10 and 25 percent, lowering the corporate tax rate to 25 percent, and shifting the U.S. to a territorial tax system. The blueprint also proposes expanding the tax base by enacting unspecified base broadening measures for both individual and corporate taxpayers.
The document discusses recent legislative activity in Congress and regulatory actions by federal agencies. It covers topics such as the fiscal cliff negotiations, defense appropriations, agriculture issues including a potential one-year farm bill extension, education reforms, and energy policies including a natural gas export study. Upcoming hearings are also noted on various topics.
Senate Finance Committee Asks Members to Communicate Tax Reform PrioritiesPatton Boggs LLP
The Senate Finance Committee is asking Senators to submit proposals by July 26th detailing which tax expenditures should be maintained, repealed, or added as part of tax reform efforts. The Committee intends to take a "blank slate" approach and eliminate all special tax provisions unless there is clear evidence they help the economy, make the tax code fairer, or promote other policy objectives. Both the Senate Finance Committee and House Ways and Means Committee are committed to fundamental tax reform legislation within the next year before certain Chairmen leave their positions.
Cbizmhm special report_fiscal-year-2016-budget-proposalsCBIZ, Inc.
President Obama released his $3.99 trillion FY 2016 budget proposal calling for tax increases on higher-income individuals and businesses, expanded tax credits for families and education, and making some business tax breaks like research credit permanent. The budget also proposed international tax reforms including a one-time 14% tax on foreign earnings and a 19% minimum tax on foreign profits. Congressional Republicans and Democrats have indicated willingness to discuss tax reform but differ on key issues like rates and which deductions to eliminate.
The summary provides the following key points in 3 sentences:
The House will consider several bills under suspension of the rules on Monday and Tuesday, including bills related to natural gas pipelines in national parks and the redesignation of federal aeronautical facilities. The Senate will consider an emergency supplemental appropriations bill on Monday to provide $60.4 billion in disaster aid. The House schedule for the rest of the week includes consideration of various bills related to small businesses, Medicare, defense authorization, and intercountry adoptions.
The document discusses America's growing debt problem and some potential solutions. It outlines several "hidden debt bombs" not captured in official debt figures, such as losses from Fannie Mae and Freddie Mac, unfunded promises for Social Security and Medicare, and reduced tax revenue from tax breaks. Some proposed solutions mentioned include raising the Social Security retirement age, reducing health insurance tax breaks, broadening the tax base, and considering new revenue options like a value-added tax.
The document discusses W. Edwards Deming and his contributions to quality management. It provides background on Deming, including that he was born in Iowa in 1900 and studied physics and statistics. It outlines Deming's famous 14 Points for management, which focus on continuous improvement, eliminating fear in the workplace, and involving all employees. It discusses some of Deming's key ideas, including that 85% of a worker's effectiveness depends on their environment, not individual skill. Deming believed in cooperation and eliminating competition between workers. His theory of profound knowledge emphasized understanding psychology and systems thinking. Deming had a significant impact on management practices in the 20th century by pioneering statistical quality control and total quality management.
2012 Post-Election Analysis - A Narrowly Divided Electorate Has Spoken: How W...Patton Boggs LLP
With President Barack Obama having been reelected and the Senate and the House having stayed in Democratic and Republican hands, respectively, attention now will turn to the lame duck session that will formally get underway the week of November 12 but won’t likely get down to business until the week of November 26. Based on past experience, we expect to hear sleigh bells before the 112th Congress leaves town. Since so much that will happen next year will be driven by what happens in the next two months, we principally focus this introduction on the challenges facing the President and the Congress in the lame duck session.
Current Thinking, November/December 2012Kevin Lenox
- If lawmakers cannot agree on a deal by the end of the year to avoid the "fiscal cliff", $560 billion in tax increases and $136 billion in spending cuts will automatically go into effect in 2013, resulting in a 3.6% decline in GDP and average household tax bills rising by $3,500.
- With many popular tax deductions and credits set to expire, tax planning strategies are more important than ever given the uncertainty around which provisions will be extended or changed.
- Estate and gift tax exemptions could be reduced substantially if Congress does not act, so accelerating gifts may help move assets out of estates before year-end.
The post-election political landscape leaves President Obama working with a Democratic Senate and Republican House for at least two more years. With little time left, they must address expiring tax provisions, automatic spending cuts, and reaching the debt ceiling. Expiring tax cuts and provisions at the end of 2012 could significantly raise income tax rates and reduce many tax breaks unless extended. Automatic spending cuts are set to begin in 2013 to reduce the deficit, but they apply broadly across all programs. The debt ceiling will likely be reached before the end of the year as well, requiring Congress to raise the borrowing limit.
Congress returns from summer recess for a pre-election session focused on passing a continuing resolution to fund the government through September 30th and additional funding to combat the Zika virus. The session is expected to be short with little other legislation passed due to the pre-election environment. Both chambers will also discuss tax reform proposals and other health and regulatory issues. The House may consider several bills aimed at reducing regulations before adjourning in late September, while the Senate may take up water resources legislation.
Congress returns from summer recess for a pre-election session focused on passing a continuing resolution to fund the government through September 30th and additional funding to combat the Zika virus. The session is expected to be short with little other legislation passed due to the pre-election environment. Both chambers will also discuss tax reform proposals and other health and regulatory issues. The House may consider several bills aimed at reducing regulations before adjourning in late September, while the Senate may take up water resources legislation.
Mercer Capital's Value Matters™ | Issue No. 3, 2021 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
This document summarizes the tax code changes and spending cuts that would go into effect on January 1, 2013 if Congress fails to act, known as the "fiscal cliff." Most individual income tax rates would increase substantially. Capital gains and dividend tax rates would also rise significantly. Spending cuts of 9.4% for defense and 8.2% for non-defense programs would take effect. The Congressional Budget Office predicts this would cause the economy to enter a recession with unemployment rising to over 9%. There is debate around a more balanced approach that raises revenues through tax reform in addition to spending cuts.
Deficit-Financed Extension of Research Tax Credits Gets Nod from HouseCBIZ, Inc.
Several days of hotly contested debate over legislation that would make the Code Sec. 41 research tax credit permanent gave way to a bipartisan vote for House passage on May 9. House lawmakers approved the American Research and Competitiveness Bill of 2014 (HR 4438) over the objections of Democratic leaders, who faulted the bill because its 10-year cost of $155.5 billion will be added to the federal deficit.
The document provides updates on state and local policy and politics issues. Key points include:
- A study found the Senate tax plan would increase GDP, wages, and jobs over the long term. Vice President Pence promoted tax reform to governors. The plan puts some vulnerable House Republicans in a difficult position.
- Changes to state and local tax deductions in the tax plans could impact budgets in high-tax states like New York and California. Some states are looking to weigh in on reforms to state and local tax deductions.
- Other topics covered include infrastructure provisions in the tax bills, rising state spending, medical marijuana policies, trade deals like NAFTA and TPP, and climate accord commitments despite the US withdrawal from the Paris
1. Several attempts have been made recently to address reducing the debt and deficit through legislation like the Budget Control Act and the establishment of a bipartisan commission, but progress has been difficult.
2. President Obama recently announced a new budget proposal that includes $1.8 trillion in deficit reduction over 10 years through spending cuts and tax reforms, but it does not adequately address long-term reductions and includes some additional spending.
3. Finding agreement between the Democrat-supported and Republican-supported budget plans will be challenging as the two parties disagree on the need to raise taxes, but compromises may include further cuts to entitlement programs and military spending.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
This newsletter from Cedar Point Financial Services provides information on upcoming interest rate hikes and how they could impact various financial products. It discusses how adjustable rate mortgages, credit cards, and variable rate student loans may be affected if interest rates rise. The newsletter recommends ways for readers to protect themselves, such as refinancing a mortgage, paying down credit card debt, and reviewing student loan terms. It also provides two articles on estate tax reform possibilities and the connection between health and personal finances.
Trademark Clearinghouse Adds To Brand ProtectionsPatton Boggs LLP
The document discusses the Trademark Clearinghouse, which was created by ICANN to help protect trademarks as new generic top-level domains (gTLDs) are introduced. It allows trademark owners to register their marks, which provides benefits like priority to register matching domain names during a "Sunrise Period" and notices of potentially infringing domain name applications. While registration provides advantages, there are limitations like only national/regional registered marks can be included. The law firm recommends clients consider Clearinghouse registration to increase protections for their trademarks under the new gTLD program.
The document provides information about regulatory and enforcement updates from various agencies, including:
1. MSHA has adopted OSHA's 6-foot fall protection standard but uncertainty remains about enforcement below that height.
2. NIOSH found lung disease in 2% of surface coal miners, which may increase pressure to finalize MSHA's proposed coal dust rule.
3. MSHA conducted impact inspections at 17 coal mines and 4 metal/non-metal mines, issuing over 500 citations and orders.
The document summarizes recent developments regarding mutual funds investing in commodities. Specifically, it discusses:
1) A Senate hearing where Senators criticized the IRS for private letter rulings allowing mutual funds to invest in commodities through offshore subsidiaries, claiming this maneuvered around rules limiting commodity investments.
2) In response, the IRS suspended new private letter rulings on this issue and will re-examine whether such income should be considered qualifying income for mutual funds.
3) This action creates uncertainty for mutual funds' ability to invest in commodities until the IRS issues new guidance.
The U.S. Chemical Safety Board to OSHA: Get to Work on Combustible DustPatton Boggs LLP
The Chemical Safety Board held a meeting on July 25, 2013 where it designated the development of an Occupational Safety and Health Administration (OSHA) standard for combustible dust as its top priority. The Board criticized OSHA for failing to advance this regulatory process since 2009. It deemed OSHA's response to recommendations regarding combustible dust standards as "unacceptable." The alert discusses the implications of this designation, including that it could spur OSHA to resume its rulemaking process for a combustible dust standard, which would impact various industries if finalized.
Community Development Financial Institutions Fund's Bond Guarantee Program Fu...Patton Boggs LLP
The Community Development Financial Institutions Fund's Bond Guarantee Program was authorized to guarantee up to $500 million in bonds for 2013 to promote investment in underserved communities. The program allows certified CDFIs to issue bonds guaranteed 100% by the fund to lend proceeds to other CDFIs. To qualify for the program, entities must be certified as CDFIs by meeting requirements including having community development as their primary mission. The fund also offers other programs including financial assistance awards, technical assistance awards, and tax credits to encourage investment in low-income communities.
The document provides information on upcoming legislative activities and regulatory actions related to the environment. It notes that the House Science, Space and Technology Committee has created a new Subcommittee on Environment and the House Natural Resources Committee has established a Subcommittee on Public Lands and Environmental Regulation. The EPA has also updated the rule for pathogens in drinking water, setting a limit for E. coli and requiring water systems to notify the public if that limit is exceeded.
Kiobel: Major U.S. Jurisdictional Limitation for Overseas ActionsPatton Boggs LLP
The Supreme Court issued a decision in Kiobel v. Royal Dutch Petroleum Co. that places major limitations on using the Alien Tort Statute to sue foreign defendants in U.S. courts for acts occurring outside U.S. territory. A majority of justices based the decision on a presumption against extraterritorial application of U.S. law to protect foreign relations. However, some justices left open the possibility that certain cases involving distinct U.S. interests could still be brought under the ATS. The decision significantly limits but does not completely bar ATS lawsuits over conduct abroad.
The House will meet on Monday July 23rd at 2pm to consider several pieces of legislation under suspension of the rules. From Tuesday July 24th through the rest of the week, the House will consider bills relating to the Federal Reserve, family farms, trade agreements, offshore drilling, and reducing red tape for small businesses. The Senate will meet on Monday at 2pm to consider the nomination of Michael Shipp to be a US District Judge for New Jersey.
The Current Landscape in FLSA Unpaid Intern Litigation - Law Firms Ready to P...Patton Boggs LLP
This document summarizes recent developments in unpaid intern litigation under the Fair Labor Standards Act. It discusses a recent court decision that found unpaid interns on the film Black Swan were actually employees entitled to wages. The decision established a test for determining whether internships violate labor laws. Several law firms have since filed class action lawsuits on behalf of unpaid interns against media companies. The document outlines these cases and advises employers to ensure any internship program meets the criteria to qualify for an exception to labor laws.
2012 Post-Election Analysis - A Narrowly Divided Electorate Has Spoken: How W...Patton Boggs LLP
With President Barack Obama having been reelected and the Senate and the House having stayed in Democratic and Republican hands, respectively, attention now will turn to the lame duck session that will formally get underway the week of November 12 but won’t likely get down to business until the week of November 26. Based on past experience, we expect to hear sleigh bells before the 112th Congress leaves town. Since so much that will happen next year will be driven by what happens in the next two months, we principally focus this introduction on the challenges facing the President and the Congress in the lame duck session.
Current Thinking, November/December 2012Kevin Lenox
- If lawmakers cannot agree on a deal by the end of the year to avoid the "fiscal cliff", $560 billion in tax increases and $136 billion in spending cuts will automatically go into effect in 2013, resulting in a 3.6% decline in GDP and average household tax bills rising by $3,500.
- With many popular tax deductions and credits set to expire, tax planning strategies are more important than ever given the uncertainty around which provisions will be extended or changed.
- Estate and gift tax exemptions could be reduced substantially if Congress does not act, so accelerating gifts may help move assets out of estates before year-end.
The post-election political landscape leaves President Obama working with a Democratic Senate and Republican House for at least two more years. With little time left, they must address expiring tax provisions, automatic spending cuts, and reaching the debt ceiling. Expiring tax cuts and provisions at the end of 2012 could significantly raise income tax rates and reduce many tax breaks unless extended. Automatic spending cuts are set to begin in 2013 to reduce the deficit, but they apply broadly across all programs. The debt ceiling will likely be reached before the end of the year as well, requiring Congress to raise the borrowing limit.
Congress returns from summer recess for a pre-election session focused on passing a continuing resolution to fund the government through September 30th and additional funding to combat the Zika virus. The session is expected to be short with little other legislation passed due to the pre-election environment. Both chambers will also discuss tax reform proposals and other health and regulatory issues. The House may consider several bills aimed at reducing regulations before adjourning in late September, while the Senate may take up water resources legislation.
Congress returns from summer recess for a pre-election session focused on passing a continuing resolution to fund the government through September 30th and additional funding to combat the Zika virus. The session is expected to be short with little other legislation passed due to the pre-election environment. Both chambers will also discuss tax reform proposals and other health and regulatory issues. The House may consider several bills aimed at reducing regulations before adjourning in late September, while the Senate may take up water resources legislation.
Mercer Capital's Value Matters™ | Issue No. 3, 2021 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
This document summarizes the tax code changes and spending cuts that would go into effect on January 1, 2013 if Congress fails to act, known as the "fiscal cliff." Most individual income tax rates would increase substantially. Capital gains and dividend tax rates would also rise significantly. Spending cuts of 9.4% for defense and 8.2% for non-defense programs would take effect. The Congressional Budget Office predicts this would cause the economy to enter a recession with unemployment rising to over 9%. There is debate around a more balanced approach that raises revenues through tax reform in addition to spending cuts.
Deficit-Financed Extension of Research Tax Credits Gets Nod from HouseCBIZ, Inc.
Several days of hotly contested debate over legislation that would make the Code Sec. 41 research tax credit permanent gave way to a bipartisan vote for House passage on May 9. House lawmakers approved the American Research and Competitiveness Bill of 2014 (HR 4438) over the objections of Democratic leaders, who faulted the bill because its 10-year cost of $155.5 billion will be added to the federal deficit.
The document provides updates on state and local policy and politics issues. Key points include:
- A study found the Senate tax plan would increase GDP, wages, and jobs over the long term. Vice President Pence promoted tax reform to governors. The plan puts some vulnerable House Republicans in a difficult position.
- Changes to state and local tax deductions in the tax plans could impact budgets in high-tax states like New York and California. Some states are looking to weigh in on reforms to state and local tax deductions.
- Other topics covered include infrastructure provisions in the tax bills, rising state spending, medical marijuana policies, trade deals like NAFTA and TPP, and climate accord commitments despite the US withdrawal from the Paris
1. Several attempts have been made recently to address reducing the debt and deficit through legislation like the Budget Control Act and the establishment of a bipartisan commission, but progress has been difficult.
2. President Obama recently announced a new budget proposal that includes $1.8 trillion in deficit reduction over 10 years through spending cuts and tax reforms, but it does not adequately address long-term reductions and includes some additional spending.
3. Finding agreement between the Democrat-supported and Republican-supported budget plans will be challenging as the two parties disagree on the need to raise taxes, but compromises may include further cuts to entitlement programs and military spending.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
This newsletter from Cedar Point Financial Services provides information on upcoming interest rate hikes and how they could impact various financial products. It discusses how adjustable rate mortgages, credit cards, and variable rate student loans may be affected if interest rates rise. The newsletter recommends ways for readers to protect themselves, such as refinancing a mortgage, paying down credit card debt, and reviewing student loan terms. It also provides two articles on estate tax reform possibilities and the connection between health and personal finances.
Trademark Clearinghouse Adds To Brand ProtectionsPatton Boggs LLP
The document discusses the Trademark Clearinghouse, which was created by ICANN to help protect trademarks as new generic top-level domains (gTLDs) are introduced. It allows trademark owners to register their marks, which provides benefits like priority to register matching domain names during a "Sunrise Period" and notices of potentially infringing domain name applications. While registration provides advantages, there are limitations like only national/regional registered marks can be included. The law firm recommends clients consider Clearinghouse registration to increase protections for their trademarks under the new gTLD program.
The document provides information about regulatory and enforcement updates from various agencies, including:
1. MSHA has adopted OSHA's 6-foot fall protection standard but uncertainty remains about enforcement below that height.
2. NIOSH found lung disease in 2% of surface coal miners, which may increase pressure to finalize MSHA's proposed coal dust rule.
3. MSHA conducted impact inspections at 17 coal mines and 4 metal/non-metal mines, issuing over 500 citations and orders.
The document summarizes recent developments regarding mutual funds investing in commodities. Specifically, it discusses:
1) A Senate hearing where Senators criticized the IRS for private letter rulings allowing mutual funds to invest in commodities through offshore subsidiaries, claiming this maneuvered around rules limiting commodity investments.
2) In response, the IRS suspended new private letter rulings on this issue and will re-examine whether such income should be considered qualifying income for mutual funds.
3) This action creates uncertainty for mutual funds' ability to invest in commodities until the IRS issues new guidance.
The U.S. Chemical Safety Board to OSHA: Get to Work on Combustible DustPatton Boggs LLP
The Chemical Safety Board held a meeting on July 25, 2013 where it designated the development of an Occupational Safety and Health Administration (OSHA) standard for combustible dust as its top priority. The Board criticized OSHA for failing to advance this regulatory process since 2009. It deemed OSHA's response to recommendations regarding combustible dust standards as "unacceptable." The alert discusses the implications of this designation, including that it could spur OSHA to resume its rulemaking process for a combustible dust standard, which would impact various industries if finalized.
Community Development Financial Institutions Fund's Bond Guarantee Program Fu...Patton Boggs LLP
The Community Development Financial Institutions Fund's Bond Guarantee Program was authorized to guarantee up to $500 million in bonds for 2013 to promote investment in underserved communities. The program allows certified CDFIs to issue bonds guaranteed 100% by the fund to lend proceeds to other CDFIs. To qualify for the program, entities must be certified as CDFIs by meeting requirements including having community development as their primary mission. The fund also offers other programs including financial assistance awards, technical assistance awards, and tax credits to encourage investment in low-income communities.
The document provides information on upcoming legislative activities and regulatory actions related to the environment. It notes that the House Science, Space and Technology Committee has created a new Subcommittee on Environment and the House Natural Resources Committee has established a Subcommittee on Public Lands and Environmental Regulation. The EPA has also updated the rule for pathogens in drinking water, setting a limit for E. coli and requiring water systems to notify the public if that limit is exceeded.
Kiobel: Major U.S. Jurisdictional Limitation for Overseas ActionsPatton Boggs LLP
The Supreme Court issued a decision in Kiobel v. Royal Dutch Petroleum Co. that places major limitations on using the Alien Tort Statute to sue foreign defendants in U.S. courts for acts occurring outside U.S. territory. A majority of justices based the decision on a presumption against extraterritorial application of U.S. law to protect foreign relations. However, some justices left open the possibility that certain cases involving distinct U.S. interests could still be brought under the ATS. The decision significantly limits but does not completely bar ATS lawsuits over conduct abroad.
The House will meet on Monday July 23rd at 2pm to consider several pieces of legislation under suspension of the rules. From Tuesday July 24th through the rest of the week, the House will consider bills relating to the Federal Reserve, family farms, trade agreements, offshore drilling, and reducing red tape for small businesses. The Senate will meet on Monday at 2pm to consider the nomination of Michael Shipp to be a US District Judge for New Jersey.
The Current Landscape in FLSA Unpaid Intern Litigation - Law Firms Ready to P...Patton Boggs LLP
This document summarizes recent developments in unpaid intern litigation under the Fair Labor Standards Act. It discusses a recent court decision that found unpaid interns on the film Black Swan were actually employees entitled to wages. The decision established a test for determining whether internships violate labor laws. Several law firms have since filed class action lawsuits on behalf of unpaid interns against media companies. The document outlines these cases and advises employers to ensure any internship program meets the criteria to qualify for an exception to labor laws.
This document provides a summary of legislative activity in Congress for the week of July 22, 2013. It covers developments in various policy areas including the farm bill, appropriations bills, cybersecurity legislation, and hearings scheduled. The Senate is expected to take up the transportation appropriations bill this week but there may be a budget point of order raised. The House will consider the defense appropriations bill but there are disagreements over amendments. In cybersecurity, a Senate committee plans to mark up a bipartisan bill by the end of the month focusing on NIST coordination and workforce issues.
The SEC adopted a final rule implementing Section 1502 of the Dodd-Frank Act requiring disclosures related to conflict minerals originating from the DRC. The rule applies to companies that file SEC reports and manufacture or contract to manufacture products containing necessary conflict minerals. Companies must conduct a reasonable country of origin inquiry and, if minerals may have originated in the DRC, perform due diligence to determine if minerals financed armed groups. The results must be reported annually to the SEC by May 31 on Form SD, and may require a Conflict Minerals Report and audit.
President Obama's Action Plan on Climate Change and Its Relevance for the Uni...Patton Boggs LLP
This document summarizes President Obama's Action Plan on climate change and discusses its relevance for the United Arab Emirates. The plan aims to cut US greenhouse gases by 17% below 2005 levels by 2020. It also calls for limits on carbon pollution from power plants and increased investment in clean energy technologies. The plan emphasizes international cooperation on climate finance and promoting renewable energy and resilience. The firm Patton Boggs will offer workshops in the UAE on topics like carbon offsetting and developing additional revenue streams from sustainable projects.
This document summarizes a newsletter about recent developments related to the False Claims Act (FCA). It discusses a case involving a government contractor accused of violating the Byrd Amendment, resulting in false claims under the FCA. It also discusses record recoveries by the Department of Justice and Department of Health and Human Services in FCA cases in the healthcare sector totaling $4.2 billion. Additionally, it analyzes recent court cases related to retaliation claims under the FCA's whistleblower protections and the potential implications of a case related to off-label drug promotion cases.
The House will consider several bills under suspension of rules on Tuesday, July 17, including bills on levee construction, terrorist designations, foreign aid appropriations, US-Israel security cooperation, and insular areas. On Wednesday and the rest of the week, the House will consider bills on sequestration transparency and Department of Defense appropriations. The Senate will consider the nomination of a federal judge on Monday and is scheduled to discuss protecting the electric grid from cyberattacks on Tuesday.
Post Election Special Edition Whitepaper: Eye on WashingtonCBIZ, Inc.
*Key Issues in the Tax Reform debate
*Important Dates
*What Happened in Congress?
*The Fiscal Cliff
*The PAYGO Rules
*The Tax Writing Committees
*The President’s Tax Reform Plan
*Other Tax Issue
For more information, visit www.cbiz.com or contact the author.
With Republicans controlling both chambers of Congress and the Presidency, it is reasonable to expect that traditional Republican policy priorities will be enacted. One prominent priority is comprehensive tax reform that significantly lowers the corporate tax rate.
The research paper is based on the US Fiscal Cliff deal, a the popular term to describe the expiry of tax breaks and introduction of spending cuts leading to conundrum that the US economy faced at the end of 2012
The document discusses the 2013 United States debt ceiling crisis. It provides background on the debt ceiling and defines it as the maximum amount of money the US can borrow. It describes the political debate between Republicans who wanted spending cuts in exchange for raising the ceiling, and Democrats who argued the ceiling should be raised without conditions. The crisis began in January 2013 and ended in October when a short term deal was passed, though the debate around spending and long term budget solutions continued.
Fiscal cliff deal details and critical appraisalSadaf Shaikh
The document discusses the fiscal cliff faced by the U.S. government at the end of 2012. It provides background on the Budget Control Act of 2011 and the series of disagreements between Democrats and Republicans that led to failure to reach a budget deal. Lawmakers had 3 options: do nothing and let policies take effect, cancel some or all tax increases and spending cuts, or reach a compromise. On January 1, 2013, the Senate agreed to a last-minute deal that increased taxes on individuals making over $400,000 and couples over $450,000 but postponed discussion of spending cuts. The deal provided some short-term certainty but left major long-term issues around the national debt unaddressed.
The document summarizes legislative activity in Congress during the week leading up to Christmas regarding the fiscal cliff negotiations and other issues. It notes that the House pulled a tax bill from consideration due to lack of Republican support. It also discusses upcoming Senate sessions and the President calling for a tax cut extension for those under $200k/$250k. Other topics covered include agriculture, appropriations, energy, and financial services.
The document summarizes key fiscal issues facing Congress and the Obama administration. It reports that the Congressional Budget Office warned that allowing the Bush tax cuts to expire and automatic spending cuts to take effect would likely trigger a recession, but continuing high deficits would hamper the government's ability to respond to future crises. It also notes that House Democratic Leader Nancy Pelosi predicted Congress would address the fiscal cliff in the lame duck session to avoid going over it.
The document discusses the 2013 United States debt ceiling crisis. It provides background on the debt ceiling and defines it as the maximum amount of money the US can borrow. It describes the political debate between Republicans who wanted spending cuts in exchange for raising the debt ceiling, and Democrats who argued the ceiling should be raised without conditions. The crisis began in January 2013 and was temporarily resolved in October 2013 when Congress passed a bill to raise the debt ceiling until February 2014.
The document provides information on legislative activities for the week of July 9, 2012. It summarizes bills scheduled for consideration in the House and Senate that week related to veterans, the farm bill, appropriations, cybersecurity, and education issues. It also outlines regulatory actions and hearings scheduled related to education issues like No Child Left Behind waivers and the gainful employment ruling.
The fiscal cliff refers to the combination of tax increases and spending cuts scheduled to take effect in January 2013 as a result of previous legislation. If Congress does not act, the fiscal cliff could cut GDP by 4% and cause a recession with higher unemployment. However, Congress still has opportunities to compromise and pass replacement legislation to avoid the full impact. The term "fiscal cliff" is somewhat misleading because Congress can still retroactively change the scheduled policies after January 2013.
The House will consider legislation related to the sequestration and continuing appropriations. The House will vote on combining FY2013 defense and military construction spending bills with a six-month continuing resolution for other agencies. The Senate may replace the continuing resolution with an omnibus appropriations bill. Upcoming hearings this week will address the impacts of sequestration on education, the environment, and transportation programs.
House Members return to their districts this week while the Senate will not convene until January 21 for Inaugural Ceremonies. Congress passed a fiscal cliff deal negotiated by Biden and McConnell, representing the second step in deficit reduction after the 2011 Budget Control Act. The deal focused on $600 billion in tax increases but Republicans want further entitlement reforms in exchange for raising the debt ceiling. The House and Senate will consider reauthorizing education, workforce, and higher education laws as top priorities for the new Congress.
Comments ( add 5) So in what other ways do these budgetary structu.docxclarebernice
Comments ( add 5) So in what other ways do these budgetary structures lead to situations like the debt ceiling and the debates about it? Any thoughts?
Response one pol-06
Recently, the U.S. experienced a government shutdown. Although it was for only a short period of time, the shutdown resulted in consequential disruptions of key services and facility closures, as well the temporary furlough of countless Federal Government employees. The government shutdown was the result of a political impasse in Congress, where the Republican majority did not have sufficient votes in the U.S. Senate to garner the 60 votes required to pass the budget resolution. It passed the House of Representatives with the required votes.
Senate Republicans and Democrats reached a probable compromise related to defense spending, border protection spending and protection for Deferred Action for Child Arrivals (DACA) aliens, with the Republicans focused on the two former and the Democrats focused on the latter. Initially, a bi-partisan Senate agreement was struck, but the President rejected the deal causing the political parties to return to impasse. In this instance, Congress had reached a compromise, but the Executive Branch, specifically the President, chose not to accept the compromise causing the deal to collapse, resulting in the shutdown. Within 72 hours following the shutdown, another compromise was struck to pass a continuing spending resolution to temporarily fund the Federal Government until February 8, 2018, upon which another vote would be required. Partisan politics hard-lines, or hyper-partisanship, significantly reduce paths to compromise and it is the American people who suffer in the end.
Interestingly, however, partisan political positions can reverse over time due to changing circumstances. In 2011 and 2013 during the Obama Administration, Congressional Democrats wanted to raise the U.S. debt ceiling to preclude the national debt from surpassing the limit set by law. When the national debt reaches the debt ceiling, and when expenses exceed revenues, the U.S. Treasury cannot increase its borrowing; it may only fund expense for which there is sufficient available cash. 1 The Republicans, wishing to reduce government spending, and who also held the majority in Congress, opposed increasing the debt ceiling to further their own political agenda to cut government spending. 2 In 2013, Republicans used their vote for the debt ceiling to negotiate entitlement reform impacting the Affordable Care Act 3. President Obama responded by saying that he is not going to “negotiate on jeopardizing the full faith and credit of the United States.”2 The impasse resulted in a lapse in funding and a government shutdown. Ultimately, Republicans succeeded in reducing government spending, but they were unsuccessful in their attempts to cripple the Affordable Care Act. 2
Fast forward to 2018, and the tables are turned. With Republicans in control of both the White House a ...
The document summarizes the key provisions of the American Taxpayer Relief Act of 2012, which addressed the "fiscal cliff" issues. Some of the key points included:
- Income tax rates were made permanent at 10-35% instead of increasing. A 39.6% rate applied to income over $400,000/$450,000.
- The capital gains and dividend rates were made permanent at 0-20% instead of increasing, with the higher rates applying to income over $400,000/$450,000.
- The AMT exemptions were made permanent, providing relief to many taxpayers.
- Personal exemption and itemized deduction phaseouts were reinstated for higher income taxpayers.
The document summarizes the Debt Ceiling Deal passed by Congress and its potential impacts. It establishes a bipartisan committee to cut $1.2-1.5 trillion in spending over 10 years, with automatic cuts taking effect in 2013 if no deal is reached. Many programs are exempt from these cuts, but discretionary programs and entitlement reforms are on the table. The deal could reduce funding for services like nutrition assistance and Medicaid, threatening vulnerable populations. Advocates encourage engaging with members of Congress to prioritize critical social programs in further deficit reduction efforts.
The House will meet today to consider legislation allowing the use of Capitol grounds for memorial events and postponing votes until 6:30pm. On Tuesday and the rest of the week, the House will consider the FY2014 budget and funding committee expenses. The Senate will continue considering the FY2013 continuing resolution to fund the government through September, aiming to send an amended bill back to the House this week before recess.
The document provides details on legislative activities scheduled for the House and Senate for the current week. It summarizes bills under consideration, including continuing appropriations legislation, and budget resolutions expected to be debated.
Capital Thinking Update Special Edition - The Budget Control Act of 2011Patton Boggs LLP
The Budget Control Act establishes spending caps and a process for raising the debt ceiling. It creates a Joint Select Committee to find $1.2-$1.5 trillion in deficit reduction by November 23rd. If the committee fails, automatic across-the-board cuts will occur. The Act sets FY2012 discretionary spending at $1.043 trillion and caps overall growth at 2% through FY2021. It defines security and nonsecurity spending and prevents cuts to the former from impacting the latter in FY2012-2013. The Act's implementation could impact future appropriations bills and public agencies.
The post-election political landscape leaves President Obama working with a Democratic Senate and Republican House for at least two more years. With little time left, they must address expiring tax provisions, automatic spending cuts, and reaching the debt ceiling. Expiring tax cuts and provisions at the end of 2012 could significantly raise income tax rates and reduce many tax breaks unless extended. Automatic spending cuts are set to begin in 2013 to reduce the deficit, but they apply broadly across all programs. The debt ceiling will likely be reached before the end of the year as well, and must be addressed to avoid defaulting.
The post-election political landscape leaves President Obama working with a Democratic Senate and Republican House for at least two more years. With little time left, they must address expiring tax provisions, automatic spending cuts, and reaching the debt ceiling. Expiring tax cuts and provisions at the end of 2012 could significantly raise income tax rates and reduce many tax breaks unless extended. Automatic spending cuts are set to begin in 2013 to reduce the deficit, but they apply broadly across all programs. The debt ceiling will likely be reached before the end of the year as well, requiring Congress to raise the borrowing limit.
The post-election political landscape leaves President Obama working with a Democratic Senate and Republican House for at least two more years. With little time left, they must address expiring tax provisions, automatic spending cuts, and reaching the debt ceiling. Expiring tax cuts and provisions at the end of 2012 could significantly raise income tax rates and reduce many tax breaks unless extended. Automatic spending cuts are set to begin in 2013 to reduce the deficit, but they apply broadly across all programs. The debt ceiling will likely be reached before the end of the year as well, requiring Congress to raise the borrowing limit.
Similar to Capital Thinking ~ December 3, 2012 (20)
Crimea: U.S. Response Intensifies As Congress, President Obama Issue More San...Patton Boggs LLP
The U.S. has intensified its response to Russia's actions in Crimea through additional sanctions passed by Congress and issued by President Obama. The House passed legislation authorizing sanctions on those responsible for corruption or undermining Ukraine. President Obama signed an order allowing sanctions on broad sectors of the Russian economy. The U.S. has also frozen export licenses to Russia and designated more individuals under prior orders. Further sanctions may be imposed if Russia takes additional actions in Ukraine.
Update: Employer Responsibilities Under the Affordable Care ActPatton Boggs LLP
This document summarizes employer responsibilities under the Affordable Care Act that take effect in January 2015. It outlines key timelines employers should be aware of, including penalties for employers with 50 or more full-time employees in 2016. It provides guidance on determining if a company qualifies as a large employer based on number of full-time equivalent employees. It also discusses options for employers who are subject to penalties, such as providing affordable health insurance or paying penalties.
Crimea: U.S. Executive Actions and Legal Implications of Overlapping Global S...Patton Boggs LLP
The document summarizes the recent executive actions taken by the United States and European Union imposing sanctions in response to Russia's annexation of Crimea from Ukraine. It provides details on:
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Protecting Patient Information - Feds Find Security Lapses in State and Local...Patton Boggs LLP
This document summarizes two recent announcements from the Department of Health and Human Services highlighting the need for state and local governments to regularly review their policies and procedures for protecting patient health information. An audit found serious cybersecurity lapses in 10 state Medicaid systems, including lack of security plans, encryption of laptops, and disaster recovery testing. Additionally, Skagit County, Washington agreed to a $215,000 settlement for exposing patient information on a public server in violation of privacy and security rules. Both announcements emphasize the importance of risk assessments, administrative and technical safeguards, and compliance with health information privacy laws.
American University International Law Review Annual Symposium: Managing the G...Patton Boggs LLP
DC Partner Frank Samolis will address participants during a symposium hosted by American University’s Washington College of Law on February 18, 2014. The event will examine issues around international trade and the environment through dialogue on the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership negotiations, the state of Article XX of the General Agreement on Tariffs and Trade, enforcement mechanisms under regional trade agreements, and potential future means of protecting the environment through International Trade Law Society. Mr. Samolis will serve as a panelist during a discussion on TTP talks and TTIP negotiations at 12:45 p.m. during the symposium.
This newsletter provides summaries of recent reinsurance case law and regulatory developments from March 2014. It includes summaries of cases from New York, Tennessee, and California federal courts related to arbitration awards, protected cell reinsurance agreements, preclusion of subsequent arbitrations, and common interest privilege with reinsurers. It also summarizes cases related to tax treatment of retrocessional agreements, dismissal of defenses in a facultative reinsurance dispute, denial of stay in a mortgage reinsurance case, and assumption versus reinsurance.
With increasing demand on limited public resources, national and local governments are recognizing the need for a new approach to social services that emphasizes the identification of effective, innovative ideas. However, a lack of available funding and the reluctance to take on the risk that a promising, but unproven, idea might fail have created obstacles to this new approach. The social impact bond model is designed to eliminate these obstacles.
Supreme Court Agrees to Hear Two Cases on Attorneys' Fees in Patent CasesPatton Boggs LLP
The Supreme Court agreed to hear two cases that deal with awarding attorneys' fees in patent cases. In the first case, Octane Fitness v. ICON Health, the Court will consider whether to lower the standard for determining an "exceptional case" in which fees can be awarded. In the second case, Highmark v. Allcare Health, the Court will determine how much deference appellate courts must give to lower court decisions on awarding fees. These rulings could make it easier for prevailing parties to recoup fees and deter patent holders from filing weak infringement claims.
FTC Announces Study of "Patent Assertion Entities"Patton Boggs LLP
The FTC announced it will conduct a study of patent assertion entities (PAEs) by collecting detailed information from 25 PAEs and 15 other companies through its authority under Section 6(b) of the FTC Act. The FTC will seek information about PAE operations, patent acquisitions, assertion activities like litigation and licensing, costs and revenues. Responding companies may be able to keep some information confidential, but it could also be subject to disclosure. The FTC must get approval from the OMB before collecting information and is seeking public comment on the study by December 2nd.
ALJ Ruling on Heart Attack Reporting Requirements Creates Split of AuthorityPatton Boggs LLP
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2) The regulations require immediate reporting of accidents involving injury with a potential for death; the ALJ found a heart attack was an illness, not an injury.
3) However, the ALJ distinguished cases where CPR was required or the victim was unresponsive, requiring immediate reporting in those scenarios still. The full Commission has yet to address this issue definitively.
New TCPA Requirements for "Prior Express Written Consent" Effective October 16Patton Boggs LLP
This document summarizes new requirements under the Telephone Consumer Protection Act (TCPA) for obtaining "prior express written consent" before making telemarketing calls or texts. Beginning October 16, 2013, companies must get written permission that specifically authorizes automated calls or prerecorded messages to wireless or residential lines. The rules also eliminate exceptions for current customers and require consent for each phone number. Violations of the new consent rules could result in substantial damages in consumer lawsuits. Companies are advised to review their practices to ensure compliance.
This newsletter provides summaries of recent reinsurance cases:
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2) A California court ordered parties to complete their arbitrator selection process and let the panel decide issues of consolidation and contractual provisions, rather than the court making those decisions.
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The Transatlantic Trade and Investment Partnership: The Intersection of the I...Patton Boggs LLP
This document summarizes a client alert from the law firm PattonBoggs regarding the Transatlantic Trade and Investment Partnership (TTIP) negotiations between the EU and US. It notes that digital commerce and data privacy will be key issues discussed, as the EU and US have different approaches to these matters. Specifically, the EU views data privacy as a fundamental right while the US takes a sector-specific approach. Recent NSA surveillance revelations have heightened these differences. The next round of TTIP talks in October will likely start substantive discussions on finding common ground regarding data privacy standards.
The document provides a summary of legislative activities in the United States Congress for the week of July 29, 2013. In the Senate, cloture was filed on several nominations including the nomination of James Comey as FBI Director. The Senate also passed a bill tying student loan interest rates to Treasury rates. In the House, the agenda for the week includes consideration of an appropriations bill and several other pieces of legislation under suspension of the rules. The document also summarizes legislative activities relating to various policy areas such as agriculture, budget, cybersecurity, and defense.
The document is a summary of frequently asked questions from the CFTC's cross-border guidance. It defines key terms like U.S. person, foreign branch, and affiliate conduit. For U.S. person, it provides a broad definition that includes natural persons residing in the U.S., entities organized in the U.S., certain trusts, collective investment vehicles majority-owned by U.S. persons, and entities with unlimited liability that are majority-owned by U.S. persons. It also considers factors like a party's connections to U.S. commerce in determining U.S. person status. For foreign branches, it notes they are considered part of the principal U.S. entity but may
Tony Abbott and the conservative National Liberal Coalition secured a landslide victory over the Labor party in Australia's federal election. Abbott stated that Australia is now "under new management and open for business." The Coalition is expected to focus on economic policy, including repealing the carbon tax, increasing infrastructure spending, returning the budget to surplus, and abandoning Labor's emissions trading policy in favor of a direct action climate plan. Julie Bishop will remain as Australian ambassador to the United States, and Kevin Rudd has stepped down as Labor leader.
"Advance Australia Fair" - The Australian Federal Election 2013Patton Boggs LLP
This document summarizes the key issues of the upcoming Australian federal election on September 7, 2013. It outlines the stances of the ruling Labour Party and opposition Liberal National Coalition on climate change, the economy, national security, and asylum seekers. On climate change, Labour supports moving to an emissions trading scheme while the Coalition prefers "direct action." Both parties aim to reduce carbon emissions by 5% by 2020 but the Coalition has made no commitments beyond that. The economy and returning the budget to surplus are also major issues. National security policies focus on continued US defense cooperation and engagement in the Indian Ocean region. The parties differ on their approaches to offshore processing of asylum seekers.
U.S. Securities and Exchange Commission Proposes New Rule on Pay DisclosurePatton Boggs LLP
The SEC proposed a new rule that would require public companies to disclose the ratio of the compensation of its principal executive officer to the median compensation of all employees. The rule is meant to provide transparency on pay disparity and rein in bloated executive pay. It allows companies flexibility in calculating median pay and identifying employees. Companies can use statistical sampling or other reasonable methods. They can make reasonable estimates and do not need to include contractors. The ratio must be expressed as a ratio or narrative multiple. Companies must disclose their methodology and assumptions. The rule applies to companies already providing executive pay disclosure but provides exemptions for smaller companies.
This document provides answers to legal questions about hotel operations in the Arabian Gulf. It discusses identifying an appropriate hotel operator through comparing terms, conducting due diligence, and ensuring a good relationship fit. It also covers establishing a corporate presence, employing hotel staff, performance requirements, financial safeguards, governing law, and dispute resolution mechanisms. The document was written by lawyers at Patton Boggs LLP who have significant experience advising hotel owners and operators on projects in the region.
Non-Practicing Entity Sued Under RICO for Bringing Allegedly Frivolous Patent...Patton Boggs LLP
The document summarizes a lawsuit filed by FindTheBest.com (FTB) against Lumen View Technology and associated individuals and entities. FTB alleges that Lumen is a non-practicing entity that brings serial patent infringement lawsuits without merit in order to extort settlements. Specifically, FTB claims that Lumen uses threats of expensive litigation and damage to businesses to coerce "licensing fees" from targets even though their technologies do not actually infringe Lumen's patents. FTB sued Lumen under RICO and various state laws, seeking damages and injunctive relief. This type of RICO counterclaim against serial litigators is an emerging strategy in response to allegedly frivolous patent infringement claims.
2. General Legislative
On Monday, December 3, the House will meet at noon for morning hour and at 2:00 for legislative
business. No votes are expected in the House. Legislation under consideration will include H.R.
5817 – Eliminate Privacy Notice Confusion Act. On Tuesday, December 4, and Wednesday,
December 5, the House will meet to consider the following legislation under suspension of the
rules: H.Res. - Providing for the concurrence by the House in the Senate amendments to H.R.
2838, with an amendment; H.R. 6582 - To allow for innovations and alternative technologies that
meet or exceed desired energy efficiency goals, and to make technical corrections to existing
Federal energy efficiency laws to allow American manufacturers to remain competitive, as
amended; H.R. 6602 - To make revisions in title 36, United States Code, as necessary to keep the
title current and make technical corrections and improvements; H.R. 6605 - To eliminate an
unnecessary reporting requirement for an unfunded DNA Identification grant program; H.R. 6620 -
To eliminate certain limitations on the length of Secret Service Protection for former Presidents
and for the children of former Presidents; H.R. 6223 - To amend section 1059(e) of the National
Defense Authorization Act for Fiscal Year 2006 to clarify that a period of employment abroad by
the Chief of Mission or United States Armed Forces as a translator, interpreter, or in an executive
level security position is to be counted as a period of residence and physical presence in the
United States for purposes of qualifying for naturalization if at least a portion of such period was
spent in Iraq or Afghanistan, and for other purposes, as amended; S. 3486 - Patent Law Treaties
Implementation Act of 2012; and S. 2367 - 21st Century Language Act of 2012. No votes are
expected on Thursday and Friday.
The Senate will convene on Monday, December 3, and resume consideration of S. 3254, the
National Defense Authorization Act for Fiscal Year 2013.
Fiscal Cliff
On November 28, President Obama met with Erskine Bowles and a group of prominent CEOs in a “fix-
the-debt” effort. At that meeting, President Obama hinted at a possible compromise on taxes. Earlier in
the day, a number of the same CEOs met separately with House Republican and Senate Democratic
Leadership.
The next day, Treasury Secretary Geithner met individually with the four Congressional Leaders,
unveiling the latest White House proposal for averting the fiscal cliff. Per Administration officials, the offer
proposes $1.6 trillion of net tax increases, which would occur in two steps: (1) the first trillion up front, with
(2) the remainder in a tax reform process to be completed by August 1, 2013. Although initial reports from
Congressional Republicans indicate that the Administration offered $400 billion in entitlement cuts to
occur next year, Administration officials have told the press that the proposal would accomplish $600
billion in entitlement cuts. It is unclear what accounts for this $200 billion discrepancy – there is some
conjecture that the Administration is proposing $400 billion in net entitlement savings. Entitlement reform
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3. would also be set to occur by August 1, 2013. Further, the Administration proposes delaying the
sequester until August 1, 2013, using that date as a means to press Congress to action on tax and
entitlement reform. The details of the two-stage proposal follow:
STAGE ONE (to occur immediately):
Taxes
• Consistent with the President’s FY13 Budget proposal, the White House asks for an immediate
increase in top marginal rates for upper-income earners (those making above $200,000
individual/$250,000 married, filing jointly per year); reinstatement of personal exemption phase-out (PEP)
and the Pease limitation on itemized deductions; and capital gains and dividends tax increases (with the
top long-term capital gains rate to be set at 20 percent and the top dividend rate to rise to 39.6 percent)
• Reversion to 2009-level estate and gift tax structure ($3.5 million exemption, with a 45 percent rate for
larger estates)
• AMT patch and business tax extenders
• Payroll tax extension or new alternative policy
• Bonus depreciation extension
Spending/Extras
• Unspecified savings from certain non-entitlement mandatory programs
• Deferral of the sequester to August 1, 2013
• Extension of unemployment insurance
• Patch for SGR (“doc fix”)
• Multi-year stimulus package starting with at least $50 billion in FY 2013
• White House proposal for refinancing underwater mortgages
• Permanent increase in the debt limit, sufficient to avoid affirmative action to raise it again
STAGE TWO (to occur by August 1, 2013):
• Tax reform, including additional tax increases to equal $600 billion
• Medicare/entitlement policies from the President’s budget that could total $600 billion (likely $600
billion gross) in savings
On Friday, the Administration tweeted some specifics on the tax proposals underlying $1.6 trillion
proposed tax increase, including a host of corporate revenue raisers. While the corporate policies have
long been part of the President’s budget proposals, they were not previously part of fiscal cliff
discussions. Specific targets include: reforming the international tax system, repealing Last In First Out
(LIFO) accounting, repealing certain oil and gas preferences, reinstating Superfund taxes, changing the
treatment of financial and insurance products, and taxing carried interest as ordinary income.
Even with the clarifications offered by the Administration on Friday and over the weekend, Congressional
Republicans continue to reject the Administration’s proposal as a non-starter, arguing that: (1) the
proposed tax increases are way too high, front loaded, and raise marginal rates; (2) the extent of the
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4. proposed entitlement reform is insufficient and lacking in detail; (3) the proposed spending provisions are
intolerable; and (4) the proposal to raise the debt ceiling is a non-starter.
While the President did not meet face-to-face with House and Senate Leadership this week, he did speak
briefly with Speaker Boehner by phone on Wednesday. Staff from the Congressional Leadership offices
continue to communicate with White House staff, but as evidenced by the Administration’s offer, such
discussions have not resulted in any real progress and have slowed considerably compared to the days
following the initial Big Four meeting with the President on November 16th. The stalled pace of the
dialogue is due, in large measure, to a White House belief that it has the upper hand in the negotiations.
The White House views time as an ally for attempting to force Republicans to reconsider their position
that the top individual marginal tax rate should be maintained at 35 percent.
Despite a lack of progress, both Republicans and Democrats directly involved in the process believe both
sides want to reach a deal and avoid plunging off the fiscal cliff. However, outside the inner circle of
negotiators, predictions of failure persist, particularly on the Republican side, where many maintain that
President Obama wants to go over the cliff in the short-term. On the Democrats’ side, contrary to the
view espoused by Sen. Patty Murray (D-WA) and others, most senior Democrats do not support going off
the cliff, believing that any short-term tactical advantage gained is not worth the cost to the economy.
However, from a communications standpoint, the Geithner offer has not helped matters, with both House
Speaker Boehner and Senate Republican Leader McConnell criticizing the Administration for not
presenting a serious plan; Speaker Boehner on Friday declared that talks were at a stalemate. For its
part, the Administration is making clear that they do not intend to revise their proposal until Republicans
agree to raise marginal tax rates on at least some upper income taxpayers.
The goal of the negotiation appears to be a roughly $4 trillion deficit reduction agreement, which is the
level necessary to stabilize the debt to GDP ratio at roughly 3 percent moving forward, and is viewed by
many as a sign to the markets that Congress and the Administration are serious about tackling long term
debt. However, negotiators will count as savings the $2 trillion pocketed last year by virtue of enactment
of the Budget Control Act.
In terms of the structure of a possible year-end compromise, the most likely shape of a deal would follow
the contours of what has been suggested publicly – a down payment on deficit reduction drawn from
both tax increases and mandatory spending reductions, along with greater measures to follow next year
through fundamental tax and fundamental entitlement reform. Aside from the magnitude of tax increases
and spending cuts, another thorny issue is the size and scope of the down payment.
Assuming such a deal materializes, expect to see an extension of the Bush tax cuts for most taxpayers,
with tax increases on certain upper-income taxpayers. It remains to be seen whether the Republicans’
position of limiting deductions or the President’s position of marginal rate increases (or a combination of
both) will prevail.
On the spending side, Republicans continue to maintain that there must be spending cuts included in any
year-end deal and, in his last meeting with principals, the President did signal a willingness to discuss
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5. such reforms. (Since that meeting, the President’s position has seemingly hardened, and he has refused
to offer details on what entitlement reform might look like until Republicans capitulate on marginal rate
increases for at least some upper-income taxpayers.) Programs that could be under consideration for
purposes of a down payment include SNAP, social security disability and, perhaps, even the manner by
which the social security COLA is calculated.
In-line with stages proffered by Administration’s current proposal, such a construct would likely contain a
process for expedited action next year for both tax and entitlement reform, with an agreed upon revenue
target for tax reform and an agreed upon savings from mandatory spending (mostly entitlements).
Presumably, Senate Finance and House Ways and Means would be tasked with filling in a broad
structure, though some working parameters might be outlined in a year-end deal (and, again, the
magnitude of the up-front savings could be relatively small or very large depending on a final negotiation).
Should tax and entitlement reform fail to be signed into law within a time certain, it is unclear whether
there would be legislative trigger or “backstop” to compel action next year, aside from reversion to current
law, and what such a trigger might look like.
Any deal on this scale will likely include a debt ceiling increase, along with the assorted priorities that
Congress still needs to address for 2012 and 2013 (e.g., AMT patch, tax “extenders,” doc fix, Medicare
extenders, etc.). However, these pieces are not likely to move this year absent a deal of some sort that
averts the fiscal cliff, as their fates are linked to broader negotiations.
Finally, it is highly probable that a deal will also delay the spending sequester, but it remains unclear
whether that would be paid for with revenue and/or spending cuts over and above the “down payment” or
whether additional pay-fors will be used to pay for a delay.
Agriculture & Food
LEGISLATIVE ACTIVITY
Farm Bill. As reported in the last edition of Capital Thinking, Senate Agriculture Committee
Chairwoman Debbie Stabenow (D-MI) continues to push for the Farm Bill to be included in the deficit-
reduction package to help Congress avert the fiscal cliff. However, as Congress now enters into the
month of December, the prospect of passing a five-year Farm Bill is becoming increasingly unlikely.
Late last week, House Agriculture Committee Chairman Frank Lucas (R-OK) shared a new proposal
that would include provisions in the deficit reduction package to extend the 2008 Farm Bill into 2013.
It would also require that the new five-year Farm Bill meet a floor for cost savings. Chairman Lucas
also shared that under this proposal, he would encourage Congress to pass a five-year Farm Bill by
next spring in order to include the bill in a budget reconciliation package, which traditionally only
requires an up-or-down vote and provides limited opportunities for amendments.
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6. Although including provisions in the deficit reduction package to extend the Farm Bill may gain
traction, we expect serious resistance from Senate and House Democrats on the budget
reconciliation component of Chairman Lucas’ plan. Democrats will not likely view budget
reconciliation as a viable Farm Bill vehicle because over the past three years, Congress has failed to
pass a budget reconciliation agreement. Given that the Senate remains in Democratic control in the
th
113 Congress, we expect that Congress will not adopt a budget reconciliation agreement in 2013.
In the unlikely event that Congress fully adopts Chairman Lucas’ proposal, many agriculture
stakeholders may feel increased pressure to expedite their efforts in reforming or adding provisions in
the Senate-passed bill or House Agriculture Committee’s bill, given that opportunities to offer
amendments during floor votes will be largely foreclosed.
Congressional Leadership. This week, the Republican Conference re-elected Rep. Frank Lucas (R-
OK) to serve a second term as Chairman of the House Agriculture Committee and Rep. Bob
Goodlatte (R-VA) to serve as Chairman on the House Judiciary Committee. As former Chairman of
the House Agriculture Committee farm groups will look to Representative Goodlatte to push
th
immigration reforms that align with agribusinesses interests in the 113 Congress.
Budget, Appropriations
LEGISLATIVE ACTIVITY
Supplemental Appropriations for Disaster Relief. With current federal aid requests from New
York, New Jersey and Connecticut totaling over $80 billion, the White House is expected to submit a
disaster relief funding request to Congress as early as next week. Approval of such a large request
would be complicated by the ongoing fiscal cliff negotiations as well as a Republican push to offset
any amount of funding over the $11.8 billion FY 2013 Disaster Relief Fund cap established in the
Budget Control Act of 2011 (P.L. 112-25). The six-month FY 2013 Continuing Resolution (P.L. 112-
175), which runs through March 27, 2013, allocated $6.4 billion to the Disaster Relief Fund; hence,
Congress could expedite the remaining $5.4 billion through a supplemental or omnibus appropriations
bill.
Omnibus Appropriations Bill. Appropriators continue to work on an FY 2013 omnibus
appropriations measure utilizing the $1.047 trillion discretionary spending cap established in the
Budget Control Act of 2011 (P.L. 112-25). Despite the impetus of using the omnibus as a vehicle for
disaster aid, there is currently no indication from Congressional leadership that they support moving a
comprehensive spending bill in the lame duck session.
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7. Cybersecurity
LEGISLATIVE ACTIVITY
Cybersecurity Legislation. With little hope of reaching a compromise on cybersecurity legislation in
the lame duck, the new leaders of the House Homeland Security Committee and Senate Homeland
Security and Governmental Affairs Committee (HSGAC), Rep. Michael McCaul (R-TX) and Senator
Tom Carper (D-DE) respectively, have both said that cybersecurity is one of their biggest priorities for
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the 113 Congress. A current co-chair of the Congressional Cybersecurity Caucus, Rep. McCaul
called cybersecurity the “single highest priority in the next Congress” and stated that he is planning to
reach out to the Senate HSGAC leadership to bring together the two chambers, given the lack of
cooperation that was seen in the last Congress. Senator Carper also said that he would like to see
cybersecurity legislation move in the first six months of next year.
EXECUTIVE BRANCH ACTIVITY
Executive Order: In light of the fact that legislation will likely have to wait for next year, the
Administration continues to prepare an Executive Order (EO) that is expected to be released before
the end of December. The White House has been meeting with key stakeholders in the private sector
throughout the month in order to gather feedback, address any concerns, and gain industry support
for the EO.
International Atomic Energy Agency Cyberattack. After breaking into one of the International
Atomic Energy Agency’s (IAEA) servers, a group of hackers leaked the email contact information of
many of the experts that work at the agency. The hacker group, Parastoo, planned the attack in order
to press the IAEA to investigate Israel’s nuclear activities at the Negev Nuclear Research Center.
Education
LEGISLATIVE ACTIVITY
Immigration and Highly Skilled Workers. While the House spent a great deal of time last week
reconsidering and eventually passing the revamped STEM Jobs Act (HR 6429) introduced by
Judiciary Committee Chairman Lamar Smith (R-TX), the measure is not likely to be taken up by the
Senate in the lame-duck. The bill is designed to increase visas for high-skilled immigrants with
advanced science, technology, engineering, and mathematics (STEM) degrees, but the White House
has threatened to veto the measure and instead wishes to consider proposals to attract and retain
highly skilled immigrants as part of a comprehensive immigration reform package. The Administration
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8. opposes the bill’s elimination of the Diversity Visa program and the limitations placed on the type of
STEM degrees eligible as well as the number of visas for family members through the “V”
nonimmigrant visa program.
Also last week, Senators Kay Bailey Hutchison (R-TX) and Jon Kyl (R-AZ) introduced a Republican
alternative to the Democrat-supported DREAM Act. Their bill, the ACHIEVE Act, would use a three-
step process to legalize qualified undocumented children, but would not provide a path to citizenship.
Though Senator John McCain (R-AZ) is a supporter and is pushing for a vote in the lame duck, the
bill is more likely to serve as a Republican starting point on immigration reform in the next Congress.
With both Senators Hutchison and Kyl retiring this year, Senators McCain and Marco Rubio (R-FL)
are expected to lead the issue for Republicans next year.
National Defense Authorization Act (NDAA) Amendments. During the Senate’s consideration of
NDAA last week, Senators filed a number of amendments related to veterans’ education, including,
most notably, two amendments filed by retiring Senator Jim Webb (D-VA). The first amendment
(#2958) offered by Senator Webb adopts in its entirety the “Military and Veterans Educational Reform
Act of 2012.” Senator Webb introduced the bill earlier this year, which would require all education
programs receiving funding from the Tuition Assistance and Post-9/11 GI Bill be “Title IV” eligible and
create a complaint tracking system. The second amendment (#2957) would only implement the
proposed complaint tracking system. Despite the Senate’s recognition that both amendments are of
great priority to Senator Webb, particularly as he leaves the Senate, the prospects of the Senate
passing such amendments are increasingly slim. Both the American Council on Education and the
Veterans of Foreign Wars oppose the amendments. On Friday, the Senate filed for cloture, and we
expect a vote on NDAA by mid-week.
Hearings and Events. On Wednesday, December 5, the Senate Health, Employment, Labor, and
Pensions (HELP) Committee will hold an executive session meeting to consider nominations, as well
as the Uninterrupted Scholars Act (S. 3472), which seeks to improve education outcomes for children
in the foster care system. On Thursday, December 6, the Center for American Progress will hold an
event titled, “Lessons from the NFL for Managing College Enrollment.” Deputy Undersecretary for
Education Georgia Yuan is a featured speaker.
Energy
LEGISLATIVE ACTIVITY
Congressional Hearings. On Wednesday, the House Financial Services Committee will hold a
hearing on “Assessing the Economic and Market Implications of the Dodd-Frank Derivatives Title.”
REGULATORY ACTIVITY
Smart Grid. The Smart Grid Advisory Committee will next meet December 18-19 to discuss the
National Institute of Standards and Technology’s response to recommendations from the committee’s
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9. report, and to receive presentations on cybersecurity coordination and the NIST Smart Grid Program
Plan.
Utility MATS and NSPS Rules. Following the February 16, 2012 publication of EPA’s final rules, the
agency is reconsidering certain new source standards for fossil fuel-fired utility steam generating
units. This includes the applicable requirements during periods of startup and shutdown for the
Mercury and Air Toxics Standards (Utility MATS), the startup and shutdown provisions related to the
particulate matter standard in the Utility New Source Performance Standards (NSPS), and certain
revisions to the definitional and monitoring provisions of the Utility NSPS. EPA is also proposing
certain technical corrections to both. EPA will hold a public hearing on December 18; comments on
only those specific aspects of the final Utility MATS and NSPS rules are due by December 31. The
agency is not reconsidering any other provisions of the standards.
University ARPA-E. The Department of Energy will host an Advanced Research Projects-Energy
(ARPA-E) University on “Energy Innovation and IP Strategy” on December 12. It will focus on the
decision-making process about how best to protect an invention.
LNG Export Study. Independent third party analysis of a long-awaited report reviewing the economic
impacts of proposed liquefied natural gas exports is still in progress. The complete report is expected
by year-end. DOE will then solicit public comments in connection with pending applications and then
continue the statutory process to make public interest determinations on those applications.
State Decisions on Accounting and Auditing Relief for Federal Oil and Gas Marginal
Properties. Interior’s Office of Natural Resources Revenue has published its required year-end
notification regarding the list of states and their decision regarding marginal property relief. The two
options are (1) notification-based relief for annual reporting; and/or (2) other requested relief, as
industry proposed and ONRR and the affected state approved. State decisions are available here.
Offshore Wind. The Bureau of Ocean Energy Management is expected to issue notices for the
proposed sale of commercial wind energy leases offshore Rhode Island, Massachusetts, and Virginia
on December 3.
MODUs. New Coast Guard guidance regarding electrical equipment installed in hazardous areas on
foreign-flagged Mobile Offshore Drilling Units that have never operated, but will operate, on the
United States Outer Continental Shelf will become effective on December 3.
Environment
LEGISLATIVE ACTIVITY
Hurricane Sandy. On Tuesday, December 4, the House Committee on Transportation and
Infrastructure will hold a full committee hearing entitled, “A Review of the Preparedness, Response
To and Recovery from Hurricane Sandy.” The hearing will aim to examine superstorm Sandy,
focusing on the storm’s impact on the nation’s largest transportation systems.
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10. REGULATORY ACTIVITY
Greenhouse Gas Reporting. The Environmental Protection Agency (EPA) is extending its public
comment period for its proposed rule entitled, “Greenhouse Gas Reporting Program: Proposed
Amendments and Confidentiality Determinations for Subpart I.” The new deadline for public comment
is January 16, 2013. The comment period is being extended in part due to the new information the
agency has made available regarding the calculation of the “Tier 2a” emission factors that appear in
Tables I-11 and I-12 of the proposed rule.
EPA Appoints New Heads of Two Independent Science Advisory Committees. EPA
Administrator Lisa Jackson has appointed two engineers to serve for the next two years as chairs of
two independent advisory committees – the EPA Science Advisory Board (SAB) and the Clean Air
Scientific Advisory Committee (CASAC). The SAB provides advice to the EPA Administrator on
scientific and technical information being used as the basis for EPA decisions. The CASAC provides
advice to the Administrator on the technical bases for EPA’s standards for criteria air pollutants. Dr.
David Allen, an engineer specializing in air quality, will serve as the SAB Chair, and Dr. Christopher
Frey, an environmental engineer expert in quantitative methods for dealing with variability and
uncertainty, will serve as the CASAC Chair.
Convention on International Trade in Endangered Species of Wild Fauna and Flora. The
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is an
international treaty designed to control and regulate international trade in animal and plant species
that are not or may become threatened with extinction. (These species are listed in Appendices
available on the CITES Secretariat’s Website at http://www.cites.org/eng/app/index.php). Currently,
176 countries, including the United States, are parties to CITES. The Convention calls for regular
meetings to consider amendments to the lists of species and any country that is a party to CITES can
propose amendments. Currently, the United States is developing its negotiating positions on
proposed resolutions, decisions and amendments. The U.S. Department of Interior, Fish and Wildlife
Service will be holding a public meeting on December 13, 2012 to discuss items on the provisional
agenda. The United States, as a party to the Convention, will attend CITES Conference in Bangkok,
Thailand, March 3 to 15, 2013.
Financial Services
LEGISLATIVE ACTIVITY
House Subcommittee to Review Dodd-Frank Implementation. On Wednesday, December 5, the
House Financial Services Capital Markets Subcommittee will host a hearing titled “Assessing the
Economic and Market Implications of the Dodd-Frank Derivatives Title.” Witnesses will include
Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler, Securities and Exchange
Commission (SEC) Division of Trading and Markets Director Robert Cook, the Wholesale Markets
Brokers Association, the Institute of International Bankers, and other interested market participants.
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11. Senators to Discuss Federal Housing Administration. On Thursday, December 6, the Senate
Banking Committee will hold a hearing titled “Oversight of the FHA: Examining HUD’s Response to
Fiscal Challenges.” Shaun Donovan the Secretary of the Department of Housing and Urban
Development will appear before the Committee.
Legislation Introduced to Combine the SEC and CFTC. House Financial Services Committee
Ranking Member Barney Frank (D-MA) and Congressman Mike Capuano (D-MA), Ranking Member
of the Subcommittee on Oversight and Investigations, introduced legislation which would merge the SEC
and the CFTC into a single independent regulatory commission. The “Markets and Trading
Reorganization Act” proposes the establishment of the Securities and Derivatives Commission which
would carry out the functions currently performed by the two independent agencies.
REGULATORY ACTIVITY
FDIC Leadership Formally Appointed. On November 30, the Federal Deposit Insurance
Corporation (FDIC) announced that Martin Gruenberg and Thomas Hoenig were officially designated
by the President as the Chairman and Vice Chairman of the FDIC. On November 15, 2012, the
Senate confirmed both for their respective positions. President Obama recently signed the orders
making the confirmations official. Both were confirmed by the Senate for six-year terms as Members
of the FDIC Board of Directors on March 29, 2012.
FSOC to Meet in Closed Session. On Monday, December 3, the Financial Stability Oversight
Council (FSOC), chaired by Treasury Secretary Tim Geithner, will meet in a closed session. The
FSOC last met on November 13, at which time it approved issuing proposed recommendations for
money market mutual fund reform for public comment.
Health Care
LEGISLATIVE ACTIVITY
Fiscal Cliff Negotiations. After another week of negotiations between the White House, Senate and
House Leadership, Congress has made little progress in discussions to avoid the fiscal cliff. House
Republicans rejected the most recent plan from the Administration, which included $400 billion in cuts
to health care programs. Senator Bob Corker (R-TN) released a proposal that would produce $4.5
trillion in fiscal reforms, including $641 billion in reductions to Medicare spending through means
testing, incrementally raising the eligibility age, phasing out bad debt payments and accelerating
home health productivity adjustments, and $70 billion from Medicaid through increased state
flexibility. Talks regarding a physician fee fix and other end of the year health measures also
continue, though it remains uncertain whether the provisions will be wrapped up in a larger deficit
reduction package or move separately. Discussions will continue next week as both sides hope to
reach a deal before the end of the year.
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12. REGULATORY ACTIVITY
Regulations Under Review. The physician “sunshine” final rule, implementing an ACA provision that
requires manufacturers to disclose financial relationships with doctors, is now under review at the
Office of Budget and Management (OMB). The Flexibility, Efficiency, and Modernization of Child
Support Enforcement Programs Proposed Rule and the Transparency Reports and Reporting of
Physician Ownership of Investment Interests (CMS-5060-F) Final Rule are now under review at OMB.
OMB has completed review of the Opioid Drugs in Maintenance or Detoxification Treatment of Opiate
Addiction Final Rule and the Multi-State Exchanges; Implementations for Affordable Care Act
Provisions Proposed Rule.
CMS Bulletin on Inpatient Psychiatric Coverage. The Centers for Medicare & Medicaid Services
(CMS) released an informational bulletin that clarifies that states may structure coverage and
payment for the benefit category of inpatient psychiatric hospital or facility services for individuals
under age 21 (hereinafter referred to as inpatient psychiatric facility benefit) to ensure that children
receiving this benefit obtain all services necessary to meet their medical, psychological, social,
behavioral and developmental needs, as identified in a plan of care. This clarification is intended to
describe flexibility currently available to states to ensure the provision of medically necessary
Medicaid services to children in inpatient psychiatric facilities.
OTHER HEALTH NEWS
GAO Medicaid Report. The Government Accountability Office (GAO) released a report on Medicaid
spending. The report found that in fiscal year 2009, $43 billion in Medicaid expenditures could not be
traced to beneficiaries — the result of competing sets of data kept by CMS. While some of the
differences between the data sets were likely the result of spending on items like DSH payments, the
remaining differences between the two data sets are potentially explained by inconsistencies in CMS
guidance and states’ reporting practices, neither of which can be quantified. The report states that the
usefulness of these data sets as oversight tools is limited because of delays in reporting and
unnecessary inconsistencies between the two data sets, both of which are inconsistent with federal
internal control standards. Also, the 3-year lag in states’ reporting of MSIS data prevents its use for
timely oversight of beneficiary-related utilization and other spending trends.
MedPAC Meeting. The Medicare Payment Advisory Commission (MedPAC) has scheduled their
next public meeting for December 6 and 7, 2012. Agenda details will be provided when available.
IOM Meetings. The Institute of Medicine (IOM) Committee on Valuing Community-Based Non-
Clinical Prevention Policies and Wellness Strategies will host a briefing on December 5, 2012 on the
recently released report, “An Integrated Framework for Assessing the Value of Community-Based
Prevention.”
The IOM’s Roundtable on Value & Science-Driven Health Care will hold a meeting on December 5
and 6, 2012 on “Core Metrics for Better Care, Lower Costs, and Better Health.” Workshop
discussions will focus on measures core for insights on health care, costs, and status; existing
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13. requirements and sources of data currently available; perspectives of decision-makers and program
managers using the data to guide program decisions; challenges and barriers confronted; successful
pilot models to address the challenges; and strategies moving forward. The workshop aims to identify
issues, options and approaches to promoting and aligning existing national, regional, and institutional
measurement systems to assess progress toward achieving better care for individuals, lower per
capita costs, and better health for populations as the natural outcomes of a continuously learning and
improving health system.
International, Defense, Homeland Security
LEGISLATIVE ACTIVITY
National Defense Authorization Act (NDAA) and Iran Sanctions Developments. On Friday, the
Senate continued to consider amendments to S. 3254, its version of the annual defense authorization
bill. (The House passed its version, H.R. 4310, in June.) One of the most significant NDAA
amendments, offered by Senator Robert Menendez (D-NJ), Senator Mark Kirk (R-IL), and Senator
Joe Lieberman (I-CT) and co-sponsored by seven additional Democratic Senators, expands the
sanctions options intended to combat the Iranian nuclear program. The Menendez-Kirk-Lieberman
amendment passed 94-0 on Friday morning and is expected to be well-received by the House, if and
when the NDAA clears the Senate. If enacted into law, the amendment would bar transactions,
including non-U.S. transactions, with specially designated nationals and the Iranian port, shipping,
and energy industries, sectors which the provision labels as vital to Iranian proliferation efforts. The
amendment also would impose personal sanctions on individuals who supply certain metals and
software programs described as key for the Iranian shipping and nuclear sectors. The language also
deems as sanctionable Iranian Central Bank payments received in precious metals. The provision
also would sanction as human rights abusers individuals who divert humanitarian items intended for
the Iranian people, as well as block the assets of the Islamic Republic of Iran Broadcasting (IRIB)
network and its president in response to the IRIB’s broadcasting of allegedly forced confessions and
show trials of anti-regime elements.
Meanwhile, Senate Majority Leader Harry Reid (D-NV), Senate Armed Services Committee (SASC)
Chairman Carl Levin (D-MI), and SASC Ranking Member John McCain (R-AZ) intend to bring the full
NDAA to a final vote as soon as possible. Further down the line, following the expected completion of
the NDAA, Congressional leaders on defense issues again will turn their full attention to further
defense spending cuts, or the lack thereof, in any fiscal cliff package that emerges in the coming
weeks. If Congress and the President manage to strike a deal to stave off the $55 billion in defense
cuts next year under sequestration, the question remains what more targeted defense reductions, if
any, will replace them. Senator Levin has stated his willingness for approximately $100 billion in
additional defense cuts over the next decade (on top of the $500 billion in reductions agreed to last
year). However, the Senate and House Republican Caucus, as well as a few defense hawks in the
Democratic Caucus such as Senator Lieberman, will find that figure extremely hard to swallow.
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14. House Homeland Security Committee (HHSC) and House Foreign Affairs Committee (HFAC)
Developments. Following last week’s surprise choice of Congressman Mike McCaul (R-TX) to chair
the HHSC in the next Congress, look for the committee to emphasize cybersecurity issues in the
coming two years. Following multiple rounds of Steering Committee balloting on Tuesday,
Congressman McCaul narrowly defeated two fellow HHSC Subcommittee Chairs, Congresswoman
Candice Miller (R-MI) and Congressman Mike Rogers (R-AL), and the full House GOP Caucus
endorsed the selection of Representative McCaul the following day. During his HHSC tenure,
Representative McCaul has delved into cybersecurity issues and, to some degree, border security
concerns while devoting relatively less attention to transportation security matters. With his
background as a former federal prosecutor, Congressman McCaul also will be well-suited to continue
outgoing HHSC’s Chairman Peter King’s (R-NY) focus on domestic counterterrorism issues.
Meanwhile, look for incoming HFAC Chairman Ed Royce (R-CA), who defeated Congressman Chris
Smith (R-NJ) in a Steering Committee vote last week, to continue his longstanding focus on
nonproliferation issues (particularly involving North Korea) and counterterrorism matters. Also look for
the well-liked Royce to partner well with his likely Democratic counterpart, genial longtime HFAC
member Congressman Eliot Engel (D-NY). Representative Engel still faces Delegate Eni
Faleomavega (D-AS) for the Ranking Member spot, but Congressman Engel has consolidated
support from many HFAC Democrats, including Congressman Brad Sherman (D-CA), who recently
withdrew from consideration for the position.
REGULATORY ACTIVITY
Secretary of State Decision. In the coming week, look for President Obama to attempt to settle on
his nominee to replace Hillary Clinton as Secretary of State. Continued Republican criticism of U.S.
UN Ambassador Susan Rice for her response to the Benghazi attack, including following
Ambassador Rice’s multiple appearances on Capitol Hill this past week, has put the President in a
challenging position, no matter what he ultimately decides. If he has wanted to nominate Ambassador
Rice all along and decides to do so, she will face as grueling a confirmation battle as any Cabinet
nominee in recent memory, possibly since John Ashcroft for Attorney General in 2001. Of course, if
President Obama instead backs away from Ambassador Rice as his preferred nominee, by definition
he will have to settle for a second choice for his most highly-visible Cabinet post. Finally, if the
President instead has preferred Senate Foreign Relations Committee (SFRC) Chairman John Kerry
(D-MA), former SFRC Member Chuck Hagel (R-NE), or another candidate for Secretary of State all
along, he will have a difficult time convincing Senate Republicans of that fact, given his vociferous
defense of Ambassador Rice in recent days. On the other hand, if President Obama does nominate
Ambassador Rice, Republicans would face a dilemma of their own, since deciding to filibuster an
African-American woman with robust foreign policy experience may not sit well with swing sectors of
the electorate. Moreover, Senate Democrats have signaled a willingness to fight for Ambassador Rice
if she is nominated, despite her longstanding reputation for sharp elbows even within the Democratic
foreign policy establishment.
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15. Tax
LEGISLATIVE ACTIVITY
White House Releases Certain Details of Fiscal Cliff Proposal. Last week and over the weekend,
the Administration released certain details of its fiscal cliff proposal. While Congressional Republicans
continue to reject the basic contours of the Administration’s proposal, negotiations between the
President and Congressional Republicans have not yet begun in earnest. Please see the Fiscal Cliff
section above, for more detailed coverage of this topic.
Tax Hearings Next Week. The following tax-related hearing is scheduled next week in the Joint
Economic Committee:
December 6: Joint Economic Committee hearing on the Fiscal Cliff: How to Protect the Middle
Class, Sustain Long-Term Economic Growth, and Reduce the Federal Deficit
Transportation
LEGISLATIVE ACTIVITY
Infrastructure Funding and the Grand Bargain. Treasury Secretary Tim Geithner, the White
House’s lead negotiator on the Fiscal Cliff, unveiled the Administration’s proposal to lawmakers this
week. Among the tax and fiscal reforms, the President’s proposal included $50 billion in new stimulus
spending for infrastructure, reprising a proposal that the President has made dating back to Fall 2010.
The President’s infrastructure proposal reportedly included funding for a National Infrastructure Bank,
consistent with his earlier proposals for additional infrastructure stimulus. House Minority Leader
Nancy Pelosi (D-CA) immediately came out in support of the additional investments, although to this
point the proposal has not received broad traction in the Congress. The potential to include
infrastructure investment in a “grand bargain” will continue to be a focal point for stakeholders, many
of whom have been pressing for the fiscal cliff talks to address the need for move revenue into the
Highway Trust Fund (HTF) to sustain the federal program and avoid large-scale cuts.
Senate Committee Developments. Senator David Vitter (R-LA) will be taking over as Ranking
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Member of the Senate Environment and Public Works (EPW) Committee in the 113 Congress. The
focus in the Senate has been on Hurricane Sandy recovery and infrastructure needs, as well as
WRDA legislation. EPW Chairman Barbara Boxer (D-CA) and Senator Vitter have indicated their
intent to focus on WRDA first thing out of the gate in the next Congress and to move a bill out of
Committee within 30 days from the beginning of the session. Work will continue on WRDA legislation
behind the scenes, but otherwise there are no hearings or public events on the EPW Calendar.
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16. House Committee Developments. As expected, Congressman Bill Shuster (R-PA) was selected
this week to serve as Chairman of the House Transportation and Infrastructure Committee. The
Chairman outlined a broad agenda that included taking up the Water Resources Development Act
(WRDA), expiring rail policy legislation, and again confronting the surface transportation
reauthorization, as MAP-21 is set to expire on September 30, 2014. Chairman Shuster acknowledged
that the “number one challenge” facing the surface transportation program was “how to pay for it” and
signaled his openness to exploring various revenue alternatives to make up from the large and
growing shortfall in the HTF. It is expected that the Subcommittee Chairs will be announced in the
coming week(s). In the remaining days of the lame duck session, the Committee will hold hearings on
preparedness for, and the response to, Hurricane Sandy (December 4) and then another in a series
of hearings on passenger rail issues, focusing on the “High Speed and Intercity Passenger Rail
Program: Mistakes Made and Lessons Learned” (December 6).
REGULATORY ACTIVITY
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FTA Implementation of MAP-21. On Tuesday, December 4 , the FTA will be holding a live webcast
entitled “Overview of the MAP-21 Apportionment Notice and Guidance: What Does it Mean.” The
webcast will run from 1:30pm to 3:30pm EST. FTA’s apportionment notice lays out the available
funding and program conditions and is the first following the enactment of MAP-21.
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