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Tuesday, May 20, 2008
DAILY FISCAL POLICY REPORT -- May 20, 2008
Housing -- Senate Banking Compromise Mark-Up Today: The Senate Banking Committee's compromise housing package, the Federal Housing Finance Regulatory Reform Act, will be marked up by the committee this morning. The bill, which provides $300 billion in mortgage guarantees, includes "major efforts to help prevent the rising number of foreclosures, to create more affordable housing for Americans and to reform the regulation of government-sponsored [housing finance] enterprises in order to improve their role in the housing finance system." Committee Release.
Farm Bill -- Veto and Override Vote Loom Ahead: Congress awaits action from the president on a new five-year farm bill (H.R. 2419), which passed both houses by a veto-proof margin during the week of May 12. The $289 billion, five-year measure includes a $10 billion increase in domestic and international nutrition programs over 10 years. The Senate's 81-15 vote was the widest margin for a farm bill since 1973.
NYT Analysis.
Taxes -- HSAs Benefit Wealthy; Used as Tax Breaks: A Government Accountability Office (GAO) report indicates that Health Savings Accounts (HSA) are used disproportionately by affluent households. The GAO findings also suggest that HSAs are being used extensively as tax shelters. The average adjusted gross income of tax filers who made HSA contributions in 2005 was $139,000, as compared to $57,000 for all other tax filers under age 65. GAO Report. CBPP Comment.
Taxes -- Sup Ct OKs State Bond Tax Breaks: In a 7-2 vote yesterday, the Supreme Court ruled that states may offer special tax breaks for investing in their municipal bonds. All 50 states had asked the court to uphold Kentucky's system of exempting its residents from paying taxes on the interest from the state's own bonds. Justice Souter wrote the opinion; JUstices Alito and Kennedy dissented. Story.
Posted by Dana Chasin
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