The House and Senate budget committees are currently marking-up their versions of the Fiscal Year 2009 budget. Despite the many similarities between the budget resolutions, there are key differences. The House budget allows for $22 billion more in spending and the Senate budget allows for $18 billion more than the President's request for discretionary spending.
The Senate's version of the resolution does not allow any filibuster protection. The package provides for a one-year "patch" for the Alternative Minimum Tax but would cost $62 billion. The Senate's budget also proposes $35 billion for a second economic stimulus package.
The House's version of the resolution includes reconciliation language. It also provides a way to move items like a fully-offset, one-year "patch" for the Alternative Minimum Tax. The resolution will also potentially have language preventing a 10% cut in Medicare payments to doctors. In the next couple weeks the resolutions will be debated on the floor. Much of the debate will focus on President Bush's signature tax cuts set to expire in 2010.
WILL ALTERNATIVE ENERGY TAX CREDITS RESURFACE?
The energy tax credits were not included in either the Senate budget resolution or the House budget resolution. The resolutions from both houses will be debated this week; therefore, it remains a possibility for the energy tax credits to resurface in the proposed amendments.
The House and Senate leadership may accept a decoupling of the renewable energy tax credits from the proposed oil and gas tax increases. This strategy is dependant, however, that alternate offsets can be identified. If different offsets are found, the renewable energy tax credits are likely to be scaled back to a one year extension.
FARM BILL DEADLINE FAST APPROACHING
The current farm law will expire on March 15. Both Speaker Pelosi and Senate Majority Leader Reid oppose a long-term extension of the current law. If there is an extension it will likely extend the law for only an additional month. Negotiators continue to try to find acceptable offsets for the $10 billion additional spending. The Bush Administration has proposed a list of thirteen offset choices that totaled $22 billion. Congressional negotiators will continue to analyze their choices.
Congress is considering trimming the generous tax incentives provided in the original House and Senate bills. For example, $1.7 billion over 10 years could be eliminated from the habitat conservation tax incentives provided in the Senate bill.
APPROPRIATIONS SUBCOMMITTEE HEARINGS BEGIN
As the Budget Committees continue work on the annual budget
resolution, the twelve appropriations subcommittees in both the
Senate and House will begin hearings on the Administration's budget
request for the agencies under their jurisdiction.
For a full list of Appropriations Committee hearings, visit:
http://appropriations.house.gov/calendar.aspx
http://appropriations.senate.gov/hearings.cfm
