Policy Update

Finance Committee to Hold Hearing on Tax-Exempt Hospitals

9/06/2006

Source: Independent Sector

The Senate Finance Committee will hold a hearing on tax-exempt hospitals next week - most likely on September 14 - focusing on the charity care standard.  Although witnesses have not yet been confirmed, they are likely to include patients who had difficulty securing charitable hospital care, state attorneys general, and a state hospital administrator. 

NAACP Releases Documents from IRS

The National Association for the Advancement of Colored People has released documents (pdf) it received from the Internal Revenue Service through Freedom of Information Act requests.  The documents pertain to the IRS' investigation into whether remarks by former NAACP Chairman Julian Bond constituted prohibited political intervention.  The NAACP announced on August 31 that the IRS had closed the two-year audit, concluding the organization will retain its tax-exempt status.  Source: BNA Daily Tax Report

FY07 Spending Bills Face Uncertain Fate

With lawmakers behind schedule on FY2007 appropriations legislation, it is becoming more likely that Congress will pass a continuing resolution temporarily funding programs at FY2006 levels.  The Senate has passed only one FY2007 spending bill and the House must still pass a contentious Labor-HHS-Education bill.  According to a senior aide to Senate Majority Leader Bill Frist (R-TN), the continuing resolution would likely be attached to the Defense or Homeland Security spending bills and would be in effect until at least November 13. 

In addition, some lawmakers predict Congress is likely to pass any remaining spending bills as one large omnibus package following November's elections.  Source: CQ Today, Congress Daily AM

Outlook for Budget Reform Also Unclear

Proposals to reform the federal budget process also face an uncertain fate.  Although the White House continues to list the 'legislative line-item veto' at the top of its agenda, Congress is unlikely to find time to pass the measure before November's elections.  House Majority Leader John Boehner (R-OH) has similarly said earmark reform remains a top priority, however, has not committed to a concrete timetable for passage. 

Even if earmark reforms are passed in the House, lawmakers will likely have to invest substantial time to reconciling the new rules with Senate procedures.  Source: BNA Daily Tax Report, CQ Today, Roll Call    

Democrats Promise to Tackle Budget

Democrats said yesterday that they will work to balance the federal budget and enact tough budget enforcement rules if they take control of Congress in November.  In particular, they would attempt to restore "pay-as-you-go" rules applying to both spending and taxes, limit tax cuts favoring wealthy Americans, and eliminate wasteful spending.  Source: CQ Today    

Senate Continues to Mull Tax Issues

Senate Majority Leader Bill Frist (R-TN) again said yesterday that he may schedule a September vote on the 'trifecta' tax bill (H.R. 5970) including a permanent reduction of the estate tax, popular tax extenders, and a minimum wage increase.  Majority Leader Frist must secure three additional votes to advance the bill.  According to a Senate GOP leadership aide, he may try to appease Democrats by revising language relating to the treatment of tips in the minimum wage provision. 

It is also possible that Majority Leader Frist brings only portions of the bill to the Senate floor.  Frist also said yesterday that he may schedule a September vote on extensions of the child tax credit and marriage penalty relief.  Source: BNA Daily Tax Report, Congress Daily AM, The Hill