An Update from Washington – Debt Ceiling, Taxes, and Health Care – Oh My!

Election year politics already have arrived at the Capitol.  Members of the House and Senate in both parties have their eyes on November 4th and are putting forward agendas and proposals to position themselves favorably in the eyes of the electorate.  Look and listen for a lot of rhetoric—and possibly some action—on jobs and the economy.  With a significant number of Democratic Senate retirements and numerous competitive races, conventional wisdom is that control of the Senate is in play and that Republicans have a solid chance of taking the chamber in the November election.  Pundits agree that the House remains solidly in Republican control and the Democrats will remain in the minority for the next two years.

With the budget deal struck by Senator Patty Murray (D-WA) and Representative Paul Ryan (R-WI) late last fall, much of the Congressional work on the budget and federal appropriations already has been predetermined for the year.  Treasury Secretary Jack Lew recently announced the nation will hit its debt ceiling on February 27th; so before the deadline, the Congress is expected to enact a measure to increase the nation’s borrowing authority without the previous political jockeying and drama.

Senate Finance Committee Chairman Max Baucus (D-MT) was confirmed as U.S. Ambassador to China late last week—causing a Senatorial game of musical chairs with respect to the chairmanship of numerous committees.  The Senate Finance Committee, which has tax policy writing authority, will soon be led by Ron Wyden (D-OR), who has expressed an interest in rewriting the tax code.  Changes he wishes to make include increasing the standard deduction, using the tax code to incentivize businesses to invest overseas earnings in domestic infrastructure, and bringing closer in line the taxation of investment income and ordinary income.

The latest in the implementation of the Affordable Care Act:  on Monday, February 10th the White House announced it again was modifying the requirement for businesses with between 50 and 99 employees—they now have until 2016 to provide health insurance to full-time workers (those working at least 30 hours a week) or pay a penalty.  This requirement already had been delayed a year; such businesses have one more year without being subject to the mandate.  Beginning this year, businesses with more than 100 full-time workers are required to offer coverage to at least 70 percent of their full-time workers or face a penalty; starting next year they must offer health care to 95 percent of their full-time workforce.

Meanwhile, Republicans in the House of Representatives are seeking to change the Affordable Care Act definition of full-time workers from 30 hours a week to 40; earlier this week, the proposal gained some momentum with three Democrats signing on as cosponsors of the measure.  However, with the Democrats still in control of the Senate, at least through this calendar year, it is highly unlikely such a measure would be brought up for a vote in that chamber.  Should the Republicans sweep in November, it is likely that starting in 2015, the President will be sent numerous measures related to repealing or replacing provisions of the Affordable Care Act; if such legislation is attached to other proposals, President Obama will be put in a difficult position of deciding whether or not to enact or veto them.  Only time and the election will tell what the future holds with respect to the long term viability of health care reform.

This entry was posted in 113th Congress, Appropriations, Budget, House, Senate by Ilisa Halpern Paul. Bookmark the permalink.
Ilisa Halpern Paul

About Ilisa Halpern Paul

Ilisa Halpern Paul leads the District Policy Group and has more than 20 years of experience in government relations, advocacy, and policymaking in non-profit, academic, federally-funded, and government settings. Ilisa’s practice centers on advising clients with respect to advancing their federal legislative, regulatory and programmatic policy agendas. Ilisa works with clients to establish and strengthen relationships with elected officials and federal agencies, develop and implement government relations and advocacy programs, craft effective grassroots campaigns, establish coalitions and third-party stakeholder partnerships, and affect the outcomes of appropriations measures, authorizing legislation and federal regulatory actions. Ilisa is particularly skilled in creating innovative messaging, tactics, and materials in support of her clients’ policy goals. She helps her clients by bringing traditional and nontraditional partners to the table in support of common goals, fostering relationships with members of Congress and their staff, and collaborating with the administration and federal agencies. Ilisa frequently speaks at meetings and briefings providing political insight and analysis to help clients navigate the current policy environment. Ilisa previously served as director of federal government relations for the American Cancer Society and as director of federal affairs with the American Public Health Association. Ilisa worked on the legislative staff for U.S. Senator Dianne Feinstein (D-CA). She earned a bachelor’s degree in English at UCLA and a master's of public policy degree from Georgetown University's Public Policy Institute. Originally from California, Ilisa planned to become a doctor, but found her health care niche after doing a policy internship in D.C. Ilisa lives with her husband, Scott, and their twin boys in Silver Spring, Maryland, where she is currently learning to play the drums.

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