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Government
& Public Affairs Update
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Government &
Public Affairs Team
Reginald M. Turner
John
Van Fossen, Practice Group Leader
Lucius A. Vassar
Chris Wagner
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Downsized Reid Bill is First on
Democrats' Docket
Despite
complaints from a variety of groups within the Democratic Party,
movement on the scaled back Reid Jobs Bill indicates that House and
Senate Democratic Leaders have convinced their caucus that quick
movement on individual components of a broader jobs package is
preferable to continuing protracted discussions that come with
passing comprehensive legislation.
The House passed its jobs bill before leaving for recess in
December. The House version has a price tag of $154
billion. In February, Senate Finance Committee Chairman Max
Baucus (D-MT) and Ranking Member Charles Grassley (R-IA) announced
their bipartisan $85 billion bill only to have Democratic Leader
Harry Reid (D-NV) undercut their efforts hours later by introducing
his $16 billion measure as an amendment to the House bill while
limiting other Senators' opportunities to offer competing proposals
through the amendment process.
Last Friday, House Speaker Nancy Pelosi (D-CA) said that she expects
to complete action on the Reid billl by
March 5. One of the key features of the Reid bill is a $13
billion tax credit to encourage businesses to hire workers who have
been unemployed for at least 60 days, an extension of Build America
Bonds used by state and local governments to cut financing costs for
infrastructure projects, and an extension of increased expensing
limits for small businesses.
In addition, the Senate is preparing to address the extension of $31
billion in expiring tax cuts this week. The bill would
extend the popular research and development tax credit, an exception
for Subpart F active financing income, the deduction for state sales
and real property taxes, and the deduction allowed for teachers who
purchase their own classroom supplies.
The Senate is also likely to use the tax extenders bill to extend
unemployment benefits and provide subsidies to help displaced
workers continue their employer-provided health insurance benefits.
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If you have
any questions concerning these issues, please contact Chris Wagner at
202.772.0924 or cwagner@clarkhill.com.
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To find out
more about Clark Hill and our Government & Public Affairs
Practice Group, visit clarkhill.com
or call 800.949.3124
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