Congress is out on recess this week and will return on Monday, May 6th. Before leaving town, both the House and Senate struck a deal to end furloughs that affected air traffic controllers and created heavy airline delays across the country. These furloughs were mandated as part of sequestration cuts that began on January 1st. Other federal agencies are reportedly queuing up to make their case to Congress for a reprieve from cuts to their programs. The Senate also completed work on the Market Place Fairness Act, a bill that would force Internet retailers to collect sales taxes from their customers. Prospects of this bill passing the House are not bright.
>> Senate Finance Committee Chairman Baucus to Retire
>> Debt Ceiling and Tax Reform
>> Special Elections
Senante Finance Committee Chairman Baucus to Retire
The most talked-about headline in Washington last week was the announcement that Senate Finance Committee Chairman Max Baucus (D-MT) will retire from the Senate at the end of his term in 2014. In a statement, Chairman Baucus said he will “double-down” on issues important to Montana as well as simplifying and improving the tax code.
As for how his retirement impacts tax reform, we believe it increases the chances for a comprehensive deal because the Chairman is relieved of one big political anchor – a re-election campaign.
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Debt Ceiling and Tax Reform
As you may recall, in January Congress temporarily suspended the debt ceiling until mid-May after which the Treasury Department will be able to employ ‘extraordinary measures’ to avoid defaulting on the government’s interest payments. Previous official estimates have said Treasury would be out of options in July or August, and some newer Wall Street projections estimate that date could be pushed as late as October. So get ready for another showdown – the President needs the debt ceiling raised by Congress and the Republicans will likely use this opportunity to push for one of their big priorities. Increasingly we’re hearing it could be tax reform.
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Special Elections
On Tuesday, Rep. Ed Markey (D-MA), who has served in the U.S. House of Representatives for 36 years, beat Rep. Steve Lynch (D-MA) in the Democratic primary for Massachusetts’ special Senate election to replace now-Secretary of State John Kerry. Rep. Markey will face Republican Gabriel Gomez, a former Navy SEAL, in the general election on June 25. Preliminary polls suggest that Rep. Markey is favored to win.
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