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Tuesday, July 29, 2008
Senate Republicans Remain Mighty Stubborn
Last night, Senate Majority Leader Harry Reid (D-NV) filed a motion to proceed to a package of tax cuts commonly called the "extenders" for the third time this year. Senate Republicans have blocked consideration of the proposal twice before, insisting that the Senate continue to debate an energy market speculation bill until lawmakers add something dealing with gas prices. While it isn't clear if the Senate will reach the 60 votes necessary to begin debating the bill (the vote is this afternoon), it is certain that time is running out. With only this week left before Congress' typical lengthy August recess, and only three weeks in September before the legislature will likely adjourn for the year, time is of the essence.
The machinations over this bill appear to be due to the usually shenanigans in Washington. Get this - almost all of the Republican Senators blocking the bill support the content of the extenders bill. In fact, not only have over 300 major U.S. companies weighed in with the full Senate giving their strong support to the Democrats' extenders package, but yesterday, over 2,100 high-tech employees who work on research and development from 74 different companies in 39 states sent all senators a letter indicating their support for the research and development credit, calling themselves "dismayed" that Congress has allowed the credit to expire. The R&D credit is the largest provision in the extenders bill.
Add to that the fact that this package of tax cuts includes an expansion of the Child Tax Credit. The legislation would lower the income threshold that parents must meet to qualify for the refundable portion of the tax credit from $12,050 to $8,500. This change would benefit over 13 million children, according to data from the Tax Policy Center. The Center on Budget and Policy Priorities also points out that many children who stand to benefit come from families with parents who work year round, include individuals with a disability, and/or contribute to a broad range of jobs in critical services that often pay low wages, such as caring for the elderly or teaching young children.
So, let's see. Hundreds of major U.S. companies support the extenders, high-tech employees support it, and a huge grouping of organizations from faith-based groups to labor and child welfare advocates to direct service providers support the Child Tax Credit expansion. Why is the Senate having such a hard time getting the bill passed? Lord knows it isn't because the package increases the deficit (it does increase the deficit, but few in the Senate care about that). What could the reason be? Hmmmm...
Update:
The Senate failed for the third time to invoke cloture on the tax extenders bill by a vote of 53-43.
Posted by Adam Hughes
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