Daily Whipline

December 2, 2010

Whipline

Printable Format

Floor Schedule and Procedure

• H. Res. 1745 – Rule providing for Consideration of the Motion to Concur in the Senate amendment to H.R. 4853 - Middle Class Tax Relief Act of 2010 (Rep. Pingree–Rules):  The rule provides for the consideration of the Senate amendment to H.R. 4853.  The rule makes in order a motion by the chair of the Committee on Ways and Means that the House concur in the Senate amendment with the amendment printed in the report of the Committee on Rules accompanying this resolution.  The rule provides one hour of debate on the motion equally divided and controlled by the chair and ranking minority member of the Committee on Ways and Means.  The rule waives all points of order against consideration of the motion except those arising under clause 10 of rule XXI.  The rule provides that the Senate amendment and the motion shall be considered as read.  The rule further provides that measures may be considered under suspension of the rules at any time through Friday, December 3, 2010.  The Speaker or her designee shall consult with the Minority Leader or his designee on the designation of any matter for consideration pursuant to this section.  Debate on the rule will be managed by Rep. Pingree, and consideration will proceed as follows: 
  • One hour of debate on the rule.
  • Possible vote on a Democratic Motion ordering the previous question. Members are urged to VOTE YES.
  • Vote on adoption of the rule. Members are urged to VOTE YES.


• Motion to Concur in the Senate amendment to H.R. 4853 - Middle Class Tax Relief Act of 2010 (Rep. Levin – Ways and Means): Pursuant to the rule, general debate on the motion to concur in the Senate amendment will be managed by Ways and Means Committee Sander Levin, or his designee.  Debate on the motion will proceed as follows:
  • One hour of general debate on the motion.
  • Vote on motion to concur in Senate amendment.  Members are urged to VOTE YES.


• Complete Consideration of S. 3307 - Healthy, Hunger-Free Kids Act of 2010 (Sen. Lincoln – Education and Labor)


• Suspension Bills: Today, the House will consider several bills on the Suspension calendar.  Bills considered on the Suspension calendar are debatable for 40 minutes; may not be amended; and require a two-thirds vote for passage.  If a recorded vote is requested, it will be postponed.

1. H.R. __ - Airport and Airway Extension Act of 2010, Part IV (Rep. Oberstar – Transportation and Infrastructure)


2. H.R. 6469 - To amend section 17 of the Richard B. Russell National School Lunch Act to include a condition of receipt of funds under the child and adult care food program (Rep. George Miller – Education and Labor)

• Postponed Suspension Votes:

1. H.Res. 1638 - Supporting the goals and ideals of National GEAR UP Day (Rep. Fattah - Education and Labor)


2. H.Res. 1598 - Expressing support for the designation of the month of October as National Work and Family Month (Rep. McCarthy (NY) - Education and Labor)


3. H.Res. 1576 - Expressing the sense of the House of Representatives that a National Day of Recognition for Parents of Special Needs Children should be established (Rep. Burton - Education and Labor)


4. H.Res. 1313 - Expressing support for designation of May as "Child Advocacy Center Month" and commending the National Child Advocacy Center in Huntsville, Alabama, on their 25th anniversary in 2010 (Rep. Griffith - Education and Labor)


5. H.Res. 1690 - Supporting the observance of American Diabetes Month (Rep. DeGette - Energy and Commerce)


6. S. 2847 - CALM Act (Sen. Whitehouse - Energy and Commerce)


7. H.Res. 527 - Commending the NATO School for its critical support of North Atlantic Treaty Organization (NATO) efforts to promote global peace, stability, and security (Rep. Tanner - Foreign Affairs)


8. H.Res. 528 - Commending the George C. Marshall European Center for Security Studies for its efforts to promote peace, stability and security throughout North America, Europe, and Eurasia (Rep. Tanner - Foreign Affairs)


9. H.Con.Res. 325 - Supporting the goals and ideals of National Homeless Persons' Memorial Day (Rep. Hastings (FL) - Financial Services)

Bill Summary & Key Issues

Summary of the Middle Class Tax Relief Act of 2010

I. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF

Two-year extension of alternative minimum tax relief.  The alternative minimum tax (“AMT”) has the effect of taking back many of the benefits of the 2001 and 2003 tax cuts.  In order to ensure that middle-class taxpayers are able to enjoy the benefits of extending these tax cuts, the bill would extend AMT relief for nonrefundable personal credits and increasing the AMT exemption amount to $72,450 for joint filers and $47,450 for individuals in 2010 and 2011.  This will protect more than 25 million families from the AMT.  This proposal is estimated to cost $134.609 billion over 10 years.

II. EXTENSION OF THE 2001 AND 2003 TAX CUTS

Permanent extension of marginal individual income tax rate reductions for middle-class taxpayers.  The Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) created a new 10-percent regular income tax bracket for a portion of taxable income that was previously taxed at 15 percent.  EGTRRA also reduced the other regular income tax rates of 28%, 31% 36% and 39.6% to 25%, 28%, 33%, and 35%, respectively.  These marginal individual income tax rate reductions are scheduled to expire for taxable years beginning after December 31, 2010.  The bill would permanently extend the 10%, 25% and 28% rate brackets.  It also permanently extends the 33% rate bracket to the extent that this bracket applies to income of $200,000 or less for single filers ($250,000 or less for joint filers).  This proposal is estimated to cost $655.686 billion over 10 years.

Permanent reduced capital gains and dividend tax relief for middle-class taxpayers.  The bill would make permanent the temporarily reduced rates on capital gain and dividend income for taxpayers with adjusted gross income up to $200,000 for single filers and adjusted gross income up to $250,000 for married couples filing jointly.  The bill would maintain the current 15% rate for middle-class taxpayers.  For taxpayers with income above $200,000 ($250,000 for married couples filing jointly), the capital gains rate would revert to the pre-tax cut rate of 20%, and the dividend rate would revert to the pre-tax cut ordinary income rates.  This proposal is estimated to cost $99.113 billion over 10 years.

Permanent extension of EGTRRA and ARRA improvements to child tax credit.  EGTRRA doubled the value of the child tax credit from $500 to $1,000, allowed the child tax credit to be claimed against the alternative minimum tax, and enhanced the refundable child tax credit.   The American Recovery and Reinvestment Act of 2009 (“ARRA”) further enhanced the refundable child tax credit by allowing taxpayers to begin claiming the refundable credit once the taxpayer has received $3,000 of earned income (e.g., wages, tips, salaries).  All of these enhancements are scheduled to expire for taxable years beginning after December 31, 2010.  The bill would permanently extend these enhancements.  This proposal is estimated to cost $432.748 billion over 10 years.

Permanent extension of PEP and Pease relief for middle-class taxpayers.  Prior to 2010, certain taxpayers were subject to limitations on the amount that they could claim with respect to itemized deductions (the “Pease” limitation) and personal exemptions (the “PEP” limitation).  These limitations reduced the value of itemized deductions and personal exemptions based on the amount that the taxpayer’s adjusted gross income exceeded a specific threshold.  EGTRRA gradually phased out these limitations and these limitations were fully repealed in 2010.  However, these limitations are scheduled to come back in full force for taxable years beginning after December 31, 2010.  The bill would permanently set the threshold at which these limitations apply so that taxpayers with adjusted gross income under $200,000 ($250,000 for a married couple filing jointly), adjusted for inflation, would not be subject to these limitations.  This proposal is estimated to cost $10.158 billion over 10 years. 

Permanent marriage penalty relief for middle-class taxpayers.  A “marriage penalty” exists when the combined tax liability of a married filing a joint return is greater than the sum of the tax liabilities of each individual computed as if they were not married.  Prior to EGTRRA, numerous marriage penalties existed in the tax code.  Among other things, EGTRRA increased the basic standard deduction for a married couple filing a joint return to twice the basic standard deduction for an unmarried individual filing a single return and also increased the size of the 15% regular income tax bracket for a married couple filing a joint return to twice the size of the corresponding rate bracket for an unmarried individual filing a single return.  The bill would permanently extend this tax relief.  This proposal is estimated to cost $140.682 billion over 10 years.

Permanent earned income tax credit simplification and increase.  The bill would make permanent certain EGTRRA modifications and ARRA modifications to the earned income tax credit.  The bill would retain the EGTRRA provisions to simplify the definition of earned income; simplify the relationship test, simplify the tie-breaking rule; provide additional math error authority for the IRS; repeal the prior-law provisions that would reduce an taxpayer’s earned income tax credit by the amount of the taxpayer’s AMT liability; and increase the beginning and ending points of the credit phase-out for married taxpayers.   The bill would also make permanent the ARRA provision that increases the beginning point of the phase-out range for all married couples filing a joint return (regardless of the number of children) by $1,880.  The estimated cost of this proposal is included in the estimate immediately preceding.  

Permanent extension of education tax incentives.  The bill would make permanent certain modifications to the suite of education tax incentives included in the EGTRRA.  Included in this extension would be the deduction of student loan interest (maximum of $2,500) for single filers with adjusted gross income up to $75,000 and married couples filing jointly with adjusted gross income of $150,000; allowance of up to $2,000 in contributions per beneficiary to a tax-preferred Coverdell education savings account for qualified education expenses; and extensions of tax-preferences for certain bond-financing mechanisms for education facilities. This proposal is estimated to cost $18.741 billion over 10 years.

Permanent extension of tax benefits for families and children.  The bill would make permanent certain tax benefits for families and children enacted in the EGTRRA, including: the maximum $13,170 adoption tax credit (as well as the maximum exclusion of $32,170 per eligible child), the employee tax credit for employee child care (25 percent of qualified expenses for employee child care and 10 percent of qualified expenses for child care resource and referral services), and the increased dependent care tax credit (35% of up to $3,000 of eligible expenses for one qualifying individual up to $1,050, and 35% of up to $6,000 of eligible expenses for two or more qualifying individuals up to $2,100).  This proposal is estimated to cost $6.314 billion over 10 years.

Permanent extension of enhanced small business expensing.  The bill would make permanent the increased small business expensing amounts set to expire at the end of 2010 that were enacted prior to the ARRA and prior to the “Small Business Jobs Act of 2010”.  In order to help small businesses quickly recover the cost of certain capital expenses, small business taxpayers may elect to write-off the cost of these expenses in the year of acquisition in lieu of recovering these costs over time through depreciation.  The bill would provide that small business taxpayers be allowed to write-off up to $125,000 (indexed for inflation) of capital expenditures subject to a phase-out once capital expenditures exceed $500,000 (indexed for inflation).  This proposal is estimated to cost $25.693 billion over 10 years.

Summary of S. 3307 – Healthy, Hunger-Free Kids Act of 2010

• Increases the number of eligible children enrolled in the school meals programs by using Medicaid data to directly certify children who meet income requirements without requiring individual applications. This provision will connect approximately new 115,000 students to the school meal programs.


• Connects more children with school meals by setting benchmarks for states to improve their direct certification. Incentive bonuses will encourage improved performance. This will help certify an additional 4,500 students per year, on average.


• Enhances universal meal access for eligible children in high poverty communities by eliminating paper applications and using census data to determine school wide income eligibility.


• Provides more meals for at-risk children nationwide by allowing Child and Adult Care Food Program (CACFP) providers in all 50 states and the District of Columbia to be reimbursed for providing a meal to at-risk children after school. This provision will provide an additional 21 million meals to children annually.


• Encourages innovative methods to provide meals to children through pilot projects in- and out-of school.

Increases Focus on Nutrition Quality and Children’s Health

• Improves the nutritional quality of school meals by increasing the federal reimbursement rate for school lunches for districts who comply with federal nutrition standards. An additional 6 cents per meal will help schools meet new meal standards to provide children with healthier school meals. This is the first real reimbursement rate increase in over 30 years.


• Establishes national nutrition standards for all foods sold in schools throughout the day.


• Promotes nutrition and wellness in child care settings by establishing nutrition requirements for CACFP and providing guidance and technical assistance to support healthy child care settings.


• Connects more children to healthy produce from local farms by helping communities establish local farm to school networks, create school gardens and use more local foods in school cafeterias.


• Strengthens local school wellness policies by updating existing requirements, increasing transparency, providing opportunities for community involvement, and compliance measurements.


• Supports breastfeeding for low-income women by establishing performance measures and permanently authorizing cash bonuses to recognize exemplary breastfeeding practices at WIC clinics and agencies. 

Improves Program Management & Program Integrity

• Supports school’s food service budgets by preventing unrelated expenses from being charged to school food service accounts.


• Establishes professional standards and training opportunities for school food service providers.


• Streamlines program administration by reducing paperwork for CACFP providers. Sponsors will have greater flexibility with their administrative funds, be freed from duplicative paperwork requirements and wasteful monitoring practices.


• Provides for greater information sharing between WIC and CACFP providers in order to reduce administrative burdens for CACFP providers.


• Increases efficiency and modernizes the WIC program by transitioning from paper food vouchers to an electronic benefit program.


• Improves food safety requirements for school meals by improving recall procedures and extending existing HACCP requirements to all places where school meals are prepared or served.

Offsets

• Saves $1 billion over 10 years by extending a provision that allows the Secretary of Agriculture to include the value of commodities purchased specifically for the purpose of stabilizing the market toward the requirement that ensures 12 percent of the total federal support for the National School Lunch Program be provided in the form of commodity foods.


• Saves approximately $1.3 billion over 10 years by restructuring the nutrition education component of the Supplemental Nutrition Assistance Program (SNAP) into a new grant program. The new grant program would distribute Federal funds by formula to States and eliminates the requirement for States to provide matching funds.


• Saves approximate $2.2 billion over 10 years by eliminating a Supplemental Nutrition Assistance Program (SNAP) temporary benefit increase provided by The American Recovery and Reinvestment Act (ARRA). This provision brings SNAP benefits back to base levels November 1, 2013.

Quote of the Day