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Tax Credits Blog

The Latest on the WOTC extensions

December 4, 2014

 

The Senate adjourned tonight without action on HR 5771, the Tax Prevention Act of 2014 passed by the House yesterday.

The Senate will reconvene on Monday, December 18th, for the last week of the lame duck session.

Senator Reid has told the Senate to be prepared for a long week and possibly longer.

The latest word from the Majority Leader today is, “We’re still trying to do tax extenders.”

 

During the last week of a session a single senator can kill a bill by filibustering.  At such times, the two Leaders are in continuous negotiations over bills or amendments other senators want. 

 

Senator Reid and Senator McConnell will be working privately this weekend with senators to dispose of matters they want dealt with in the remaining important bills—Omnibus Appropriations, Defense Authorization, and Tax Extenders.

 

Right now, what’s holding up a two-year tax extender bill is the question of what precisely should go into a Senate amendment to H.R. 5771—Republicans have provisions they would like to see, and  Democrats have been unable to agree to some.  At this point they’ve boxed themselves in and Senator Reid and Senator McConnell are still talking about what can be done.

 

If Reid and McConnell can’t resolve matters this weekend there’s still a way forward, and that’s for the Leaders to bring an amendment to H. R. 5771 that only changes the expiration date from end-2014 to end-2015. 

 

Our lobbying can help them out.  Let’s re-double our efforts with senators tomorrow and Monday.  Reserve those whom you know are already supportive of a two-year extension, and reach out to other senators of your state, or states where you have operations, and press them to support amending H.R. 5771 to change the expiration date from 2014 to 2015.  Tell them the Senate should be able to agree on that much—even Ways and Means Chairman Dave Camp said after passing H.R. 5771 that a two-year extension would be more effective.

 

PAUL E SUPLIZIO

President, WOTC Coalition

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The latest on WOTC - good news on the horizon!

From Paul Suplizio, President of the WOTC Coalition

 

November 21, 2014

 

Both houses of Congress have now adjourned until December 1 for Thanksgiving recess.

 

House and Senate leaders are staying in town to wind up talks for a bill to fund the government and a tax extenders bill.

 

Republicans and Democrats are far apart on extenders to be made permanent, which is the main hold-up; but Speaker Boehner, Senator Reid, and Senator McConnell are becoming engaged in these talks and this  should speed up progress for a deal.

 

When Congress returns there will be eight legislative days remaining in the lame duck session, assuming adjournment on December 11th

 

Leaders can keep Congress in session if they haven’t completed “must-do” bills like government appropriations and the tax extenders, but there’s a strong desire to end the lame duck as soon as possible and start over in the new Congress on January 6th.

 

 

PAUL E SUPLIZIO

President, WOTC Coalition

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If you want WOTC to continue, now is the time to act

November 5, 2014

 

What happens to WOTC and other tax extenders now is up to Senator McConnell and Speaker Boehner—we’ll know their minds soon because they can’t duck a decision at this date.  McConnell and Boehner need to get the extenders out of the way so they can start the new Congress  with a big push on tax reform and other Republican priorities.

Senior staffs are still assuring everyone an extenders bill will be top priority when Congress returns on November 12th.  That’s a frail basis for optimism because the two leaders who count haven’t decided the route they’ll take to get an extenders bill through the House.  It isn’t a slam-dunk because many House conservatives oppose extenders as “special interest” carve-outs adding $700 billion to the deficit over ten years.

 

The fastest route is for the House to pass the Senate EXPIRE bill—this works best for WOTC, but House leaders will have to corral Republicans who object to the Senate package as crony capitalism and a deficit raiser. 

 

Another route is for McConnell and Boehner to negotiate a package the House will agree to.  This poses a danger—the House might insist on passing only a handful of “must-do” extenders like the mortgage relief exclusion, state sales tax deduction, R&D, etc, and defer the remainder to a tax reform bill that won’t be voted till July at the earliest.  If they start negotiating, we’ve got to assure WOTC is on their “must-do” list.

 

Senator McConnell has always voted for the full package of EXPIRE extenders and went to the floor not long ago to support them publicly.  On the other hand, Speaker Boehner and Chairman Camp support some extenders and not others—they’ve already passed bills making permanent fifteen extenders they support, and WOTC isn’t one of them.

 

The political difficulty is that Speaker Boehner has to placate members who complain regularly that extenders are a boondoggle, crony capitalism, and a drain on Federal revenue.  He won’t chance a split in his caucus after a successful election and leadership contests ahead in January, so culling the list of extenders, lowering their cost, and telling his members, “This tax extenders bill will be the last” (due to tax reform) could happen.

In sum, we have to work plenty hard starting now to get Senate Republicans to join with Democrats to pass the bi-partisan EXPIRE bill when they return, and House Republicans to pass the Senate bill when it comes before them.  By going all-out to press the case for passing EXPIRE “as is” in both houses, we’ll have the best chance of forestalling a negotiation that might not turn out in our favor.

 

PAUL E SUPLIZIO

President, WOTC Coalition

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Update from the person in the know about WOTC

Here's an update on the WOTC program from Paul Suplizio, President of the WOTC Coalition (http://www.wotccoalition.org)

 

Ken, odds are good for Senate to pass a two-year retroactive extension when they return in November. Situation in House is uncertain--strong conservatives can try to block an extenders bill but it will pass if the Speaker will allow a vote of the full House as he did last time. Odds are we'll pull through by December 12. I'll put you on our e-mail list to receive our reports to keep you up to date.

 

Paul

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No new news since they've come back from vacation

Apparently the Congress has more pressing issues than WOTC and EZ so we're not hearing any jungle drums about the extensions from them.  We are, however,hearing from states that are rolling out new online systems (New Mexico, Michigan) to capture WOTC enrollments, states are indicating that there may be a "look back" period where companies can submit hires in 2014 that they hadn't submitted before so we're still bullish tha the programs are in the pile.  It may take until after the midterm elections to get the signatures needed but confidence levels are high.  How do you think Walmar, GM and HomeDepot and other huge corporations would like to take an earnings hit because they don't get their credits?  Not very likely - so we have the lobbying power of these companies behind us.

 

Don't stop sending in forms - those that make the 28 day window will be the first reviewed one the programs are re-authorized.  In a worse case scenario, its only costing some time on the new hires orientation and $.49 stamps.  Better safe than sorry.

 

If you have any questions, call me.

 

Ken Brice

609-252-0044

 

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