Sep 9, 2011
Guide to the Congressional Super Committee
Consider This…
Below is your –hopefully– handy guide to the new Congressional Super Committee (“SC”). All of Washington will be riveted by their efforts over the next 100 days. Needless to say, we are paying close attention to their work.
What is the SC? The Super Committee is a group of twelve members divided equally between the House and Senate and Democrats and Republicans.
What are they supposed to do? They’ve been tasked with coming up with at least $1.2 trillion in deficit reduction over ten years.
What happens if they don’t? Automatic spending cuts will go into effect in 2013.
Who is chairing the SC? Senator Patty Murray, a Democrat from Washington State, and Congressman Jeb Hensarling, a Republican from Texas. Interesting tidbit – up until this week, they’d never met.
Who are the other members? Sens. Baucus (D-MT), Kerry (D-MA), Portman (R-OH), Kyl (R-AZ), Toomey (R-PA) and Congressmen Camp (R-MI), Upton (R-MI), Van Hollen (D-MD), Clyburn (D-SC) and Becerra (D-CA). That roster represents the far left and far right of their respective parties and just about everything in between.
What are their deadlines? By October 14th, all Congressional Committees – including Ways and Means and Finance – may make recommendations to the SC. We think it’s likely the Democrats and Republicans on Ways and Means and Finance will submit separate recommendations. By November 23rd the SC is required to vote on legislation to reduce the deficit. In order to send that legislation to the House and Senate floors for consideration, seven votes are required. If a bill is sent to the House and Senate, it must be considered by December 23rd. A simple majority is required in both Chambers and no amendments are allowed.
Do we think tax increases and cuts to programs like Social Security and Medicare will be part of the SC recommendations? We don’t believe significant actual changes in these areas will be recommended but we can easily see the SC including legislative language that serves as a “roadmap” for tax and entitlement reform in the longer term.
What might the SC propose that we care about? In the context of a tax reform “roadmap” we believe the charitable deduction will be on the table. This is a good time to be in touch with your legislators to talk about the value of the deduction to the nonprofit sector and why it is important to maintain it.
What happens after December 23rd? Goodbye SC. Hello, holidays. Stay tuned.