** Protects and Expands
“Nevada Check Up” Program **
Seeking to
cover even more uninsured kids in Nevada, Congresswoman Shelley Berkley voted
for H.R. 2, The State Children’s Health Insurance Program (SCHIP)
Reauthorization bill. The bipartisan bill, passed on a vote of 289-139,
renews and improves SCHIP by preserving coverage for the 7 million children
currently covered under the program, including 23,000 in Nevada, and by
extending coverage to an additional 4 million uninsured children who are
currently eligible for, but not enrolled in, SCHIP and Medicaid.
“This
legislation will protect vital healthcare coverage for the more than 23,000 kids
already enrolled at home in the state version of SCHIP, the Nevada Check Up
program. Expanding SCHIP will also ensure that more children in Las Vegas and
nationwide have access to the medical and dental care they need to stay
healthy,” said Berkley. “Preventive care saves money and this legislation is a
wise investment in keeping America’s kids healthy. Nevada will see a nearly 20%
increase in its funding for SCHIP under this package and the $60 million it
provides will allow the state to increase the number of families receiving
healthcare coverage under this key program.”
Highlights of SCHIP Expansion Package:
Ensures health care coverage for 11 million American children.
The bill renews and improves the State Children’s Health Insurance Program (SCHIP),
reauthorizing it for four and a half years – through FY 2013. The bill ensures
that the 7 million children who currently participate in SCHIP continue to
receive coverage. It also extends coverage to 4 million uninsured children,
according to the nonpartisan Congressional Budget Office (CBO).
Provides resources for states to reach uninsured children who are today eligible
for SCHIP and Medicaid but not yet enrolled. Two-thirds of uninsured children are currently eligible
for coverage through SCHIP or Medicaid – but better outreach and adequate
funding are needed to identify and enroll them. This bill gives states the
resources and incentives necessary to reach and cover millions of uninsured
children who are eligible for, but not enrolled in, SCHIP and Medicaid.
Improves SCHIP benefits – ensuring dental coverage and mental health parity.
Under the bill, quality dental coverage will now be provided to all children
enrolled in SCHIP. The bill also ensures that states will offer mental health
services on par with medical and surgical benefits covered under SCHIP.
Nevada Will Benefit Under
Berkley/Dems Ways And Means Package Clean Energy Incentives/ Medicaid Help/
First Time Homebuyer Tax Credit Of $7,500/ School Construction Bonds
Ways and Means
Republicans Face Quandary: Follow or Fight Obama?
Republicans heading into
Thursday’s Ways and Means Committee markup of economic recovery legislation face
a strategic choice.
They control just 15 of
the panel’s 41 seats, making it difficult for them to win votes on amendments to
the $275 billion tax portion (HR 598) of the legislation. But President Obama
also wants his first major legislative accomplishment to be bipartisan, meaning
that even if Republican votes aren’t needed for a committee majority, they may
be politically valuable.
So do they fight hard
against a popular new president, bombarding the majority with loud criticism? Do
they offer carefully crafted amendments, forcing politically tricky votes for
Democrats? Do they search for relatively small changes that might be find favor,
giving the GOP a chance to make a mark on the bill without altering its
structure?
For now, they seem most
likely to mount vigorous opposition to the thrust of the Democratic proposal,
arguing that it would not effectively stimulate the economy.
“The money that they’re
going to throw out the door, at the end of the day, is not going to work,” said
Ways and Means member Devin Nunes, R-Calif.
Republican leaders said
Wednesday that they are developing their own set of “fast-acting” tax plans they
hope to pitch to Obama at a meeting they have requested. The GOP
counterproposals will focus on cuts to capital gains and dividends taxes, as
well as marginal rate cuts, said Charles Boustany Jr., R-La.
The tax title released
late last week already contains several items Republicans like.
A $15 billion provision
would allow businesses to use their losses in 2008 and 2009 to offset profits
from five previous years instead of just two. First-time homebuyers who purchase
homes in the first half of 2009 would not have to repay a $7,500 tax credit, as
current law (PL 110-289) requires. And a $5.1 billion provision would extend,
for another year, the bonus depreciation enacted in last year’s stimulus law (PL
110-185).
But the tax title also
contains provisions bound to irritate Republicans.
It would require workers
on many projects funded by the stimulus package to be paid the prevailing wage
under the Davis-Bacon Act. That move is popular among unions and Democrats, but
Republicans argue it unnecessarily drives up costs.
The bill also contains a
variety of provisions that operate like targeted spending.
The renewable-energy
sector would get a $20 billion boost. The main tax credit for producing
electricity from renewable sources would get a three-year extension, and
corporate research into certain energy and battery technology would get an
additional tax credit.
Homeowners making
energy-efficiency improvements to existing homes, now eligible for a 10 percent
tax credit, would see that boosted to 30 percent, with a cap of $1,500.
The bill also would direct
billions of dollars to education, creating $22 billion in tax credit bonds for
school construction and offering a new $2,500, partially refundable tax credit
for tuition and other expenses.
State and local
governments would also get a range of assistance through the tax code under the
bill.
The largest, at $18.3
billion, would allow state and local governments to issue tax credit bonds
instead of tax-exempt bonds in 2009 and 2010. Instead of avoiding tax on their
income, bond holders would receive a federal tax credit. That would help the
governments cover the cost of the interest. The provision would also allow state
and local governments to receive direct federal subsidies instead of tax credits
if they choose, in a nod to the difficulties in the bond and tax-credit markets.
Another $25 billion in tax
credit bonds would go to states and regions based on their job losses, to be
spent in targeted “recovery zones” on infrastructure, job training and other
investments.
Targeted Personal Cuts
The individual tax
provisions in the bill are targeted toward lower-income people, as opposed to
the broad rate cuts that Republicans generally favor.
The largest single
provision in the package is the $145.3 billion Making Work Pay tax credit, which
would give workers a break on their income taxes, or a rebate check, to cover
their first $500 in payroll taxes, though it would begin to phase out for
individuals making more than
$75,000 and couples making more than $150,000. Workers could change their
withholding immediately or receive the money when they file their tax returns in
April 2010.
Under the bill, the tax
credit would last through 2010. That’s also when the 2001 and 2003 tax cuts (PL
107-16, PL 108-27) are set to expire, forcing Congress to make a wide range of
decisions about the tax code.
The bill also would expand
the earned income tax credit for low-income workers by increasing the size of
the credit for families with three or more children and by raising the threshold
at which the credit begins phasing out for married couples.
The child credit would
grow under the bill. An $18.3 billion provision would make the child credit
completely refundable for 2009 and 2010. The credit is worth 15 percent of
income up to a maximum of $1,000 per child. Current law limits the refundable
credit for families making less than $8,500.
These provisions,
particularly the Making Work Pay proposal, seem likely to face criticism from
Republicans. House Republican Whip Eric Cantor, R-Va., called the payroll tax
break a “gimmick” that would undermine the idea that everyone shares the burden
of the Social Security system.
A House Budget Committee
release described such refundable credits and rebates as “spending that
masquerades as tax relief.”
“Is it fair to give
Americans more than they’ve actually paid in taxes?” asked ranking member Dave
Camp, R-Mich.
The House bill lacks a
one-year “patch” to prevent the alternative minimum tax from growing in 2009 and
ensnaring more than 20 million additional taxpayers.
But that roughly $70
billion idea has support in the Senate, and Ways and Means Chairman Charles B.
Rangel, D-N.Y., said he expects it to get added there on top of the $275 billion
House plan.
Senate Finance Chairman
Max Baucus, D-Mont., who plans to mark up his bill Jan. 27, said it would be
somewhat larger than the House version.
Unemployment Provisions
The Ways and Means bill
also extends an emergency program to put federal funds behind state-based
programs to provide extended unemployment benefits to laid-off workers. Under
the bill, the term of such emergency lending is extended by eight months, from
March 31 to Dec. 31, and the secretary of Labor is given the authority to
receive from the Treasury Department whatever funds are necessary to keep the
program going.
The bill also gives states
an opportunity to slightly increase the size of unemployment payments, by
entering into agreements with the secretary of Labor to increase the weekly
benefits being paid to people in the system and their dependents by $25 per
week.
The legislation also
attempts to make the program more flexible by enabling states to transfer funds
among themselves, in order to catch the body of “displaced” workers who have
moved to seek new jobs.
Drafters hope the
unemployment spending will deliver a relatively powerful, immediate effect.
Unemployment insurance — along with food stamps and tax cuts favoring the least
well-off — is seen as providing extra bang for the stimulus buck, as
economically stressed people are likely to spend whatever marginally increased
cash flow they are given when times are tight.
Rep. John Linder, R-Ga.,
said Republicans would offer an amendment to strike from the Rangel draft the
expansion of unemployment insurance and other social spending.
Also Wednesday, the U.S.
Chamber of Commerce stepped up its effort to include a two-year provision that
would reduce tax liability for companies that purchase their own debt back from
financial institutions at a discount.
The proposal is aimed at
encouraging businesses to reduce their debt loads and helping banks get rid of
devalued loans.
Jan. 22, 2009
By Richard Rubin, CQ Staff
Joseph J. Schatz, Drew
Armstrong and Karoun Demirjian contributed to this story.
Berkley Hopeful New Middle East
Envoy George Mitchell Can Help Achieve Peace And Stability In Region
Congresswoman Shelley
Berkley expressed her support for President Obama’s selection of Former U.S.
Senate Majority George Mitchell to serve as the administration’s special envoy
for the Middle East.
“Former Senate Majority
Leader George Mitchell has a long and distinguished record of public service and
he has earned tremendous respect for his work to bring about peace between the
UK and Northern Ireland,” said Berkley.
“As President Obama’s
special envoy for Middle East peace, former Senator Mitchell will play a key
role in negotiating agreements that seek to end violence in the region. I
welcome renewed attempts to bring lasting peace to the Middle East, provided
America’s envoy recognizes the need to stop terror attacks against Israeli
communities and families,” Berkley said. “In addition, Israel's right to exist
as a nation within secure borders -- and to defend its citizens -- must be
assured at all times.”
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Berkley Joins Ways And Means Democrats |
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Passing Stimulus Package |
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Congresswoman Shelley
Berkley today joined Ways and Means Democrats in approving a package of
provisions that will be folded into a broad economic stimulus now being debated
in Congress. The legislation, H.R. 598, passed the Committee 24 to 13.
“The energy provisions in
this bill will give geothermal and other renewable energy projects planned in
Nevada the push they need to get underway and start creating new, well
compensated green collar jobs. Our package also extends the tax credit for
energy-efficiency improvements to existing homes through 2010. This will create
new employment opportunities while also conserving energy and reducing
greenhouse gas emissions,” said Berkley. “The ‘Making Work Pay’ tax credit will
deliver tax savings of up to $500 per individual or $1,000 per married couple
over the course of a year. This provision will help nearly 950,000 Nevada
taxpayers at a time when working families are struggling just to cover the
basics like food, rent and gas.”
The legislation will now
be combined with other components of the recovery package from other House
Committees into H.R. 1, The American Recovery and Reinvestment Act, for
consideration by the full House of Representatives next week.
Critical Benefits to
Families, Businesses, Incentives to Create New, Green Jobs:
The Plan, as passed by the
Committee, will provide critical tax relief to working families and assistance
with healthcare costs as well as extended and enhanced unemployment benefits for
those who have lost their jobs during the economic downturn. In particular, the
plan would help create new, green jobs by making a critical investment in
renewable energy and energy efficiency.
The “Making Work Pay” tax
credit would cut taxes for more than 95% of working families in the United
States. For 2009 and 2010, the bill would provide a refundable tax credit of up
to $500 for working individuals and $1,000 for working families. Taxpayers can
receive this benefit through a reduction in the amount of income tax that is
withheld from their paychecks, or through claiming the credit on their tax
returns. The credit would phase out for taxpayers with adjusted gross income in
excess of $75,000 ($150,000 for married couples filing jointly).
Important Health
Benefits, Improvements to Care:
The Plan would also
provide payment incentives to encourage the widespread adoption of Health
Information Technology (HIT) and establish standards for interoperability and
privacy. The investment in HIT is a critical step toward modernizing American
healthcare, cutting red tape, eliminating redundant care and reducing health
insurance premiums for millions.
Finally, the Plan would
provide temporary subsidies to help families who have lost their jobs maintain
their healthcare coverage through the Consolidated Omnibus Budget Reconciliation
Act (COBRA). This benefit will be of tremendous assistance to families
struggling to find new work and maintain economic security during the downturn.
