A long list of issues face Congress when they return to the nation’s capital next week, including a meeting between President Obama and the incoming GOP House Leadership. Several issues are certain to draw attention next week, including: expiring unemployment benefits (November 30); a report on Don’t Ask Don’t Tell (due December 1); and a report by the National Commission on Fiscal Responsibility (December 1).
The commission’s early proposal includes an AGC-endorsed recommendation to increase the federal gas tax but it faces the steep hurdle of garnering the support from 14 of the commission’s 18 members. See article above under Take Action.
Other issues include:
Taxes
In addition, Congress will have to decide how to resolve the extension of the 2001 and 2003 Bush tax cuts, which are due to expire on December 31. Democratic leaders are facing pressure from Republicans to extend all of the tax cuts rather than the president’s proposal to extend the tax cuts only for families with annual incomes less than $250,000.
Another tax provision set for a vote is the 1099 reporting provision. This provision was included in the healthcare bill that passed earlier this year and requires government, nonprofits and businesses of all sizes to file Form 1099s with the IRS when goods or services in excess of $600/year are purchased without a credit card from another business. AGC opposes this provision as it raises money to pay for the healthcare law but does nothing to improve healthcare. A vote to remove the provision is scheduled for November 29 as part of food safety legislation. See article above under Take Action.
Infrastructure
Congress is also confronted with numerous infrastructure programs that expire or must be extended. The surface transportation program has been operating under short-term extensions since it expired in 2009 and the current extension expires on December 31. AGC has been advocating Congress to pass a multi-year reauthorization of the program and at the very least a long-term extension. Congress also failed to extend aviation funding and water infrastructure bills. Also expiring on December 31 is the highly successful Build America Bond program.
Budget
The continuing resolution passed by Congress in September to provide funds to operate the federal government expires December 3. The continuing resolution was necessary because Congress failed to enact any of the 12 appropriations bills for FY 2011.
In the few remaining weeks of the 111th Congress the number of contentious issues is notable, however debate on many of them is likely to be scuttled. The wide range of issues includes:
- AMT patch (expires December 31)
- Capital gains/dividends tax rate (expires December 31)
- Cuban trade and travel restrictions
- Defense authorization
- “Doc fix” extension for Medicare (expires November 30)
- Energy provisions
- Food safety
- FY 2011 appropriations (expires December 3)
- Labor reform and “card check” (likelihood of passage severely diminished with large GOP gains)
- Russian Arms Treaty
- Tax extenders (expires December 31)