I thought you might appreciate the following excerpt from a recent email update I received from WOTC Coalition President Paul Suplizio. Some of this has been reported in the news but Paul’s perspective adds something important. I am re-publishing this with his permission.
In a statement [Monday], Speaker John Boehner and Majority Leader Eric Cantor said they will no longer require offsets for the $100 billion cost to extend the payroll tax cut to the end of the year, and are preparing a bill that will extend the payroll tax cut separately if the conference reaches no agreement, leaving the conference to continue working on unemployment insurance and Medicare doctors’ payments.
The conference committee is being notified of this new Republican position, which means $100 billion of the total $160 billion cost of the payroll bill would not have to be offset.
The conferees still have time to reach agreement on a total package, but if they don’t the Speaker is free to make the effort to pass a stand-alone bill extending the payroll tax only. This would remove payroll tax as a partisan issue, but the Speaker is likely to need Democratic support because of the roughly ninety Republicans who would not vote to increase the deficit.
Senator Reid is expected to make the extenders part of the bill he has said he will introduce if the conference bogs down. He will have the option to bring it to a vote or attach it to any stand-alone payroll bill that passes the House.
Unemployment compensation and doc fix remain “must do” issues, even if payroll tax is passed separately—thus we continue to work for the tax extenders to be added to HR 3630 in conference.
If $40 billion for tax extenders is added, the total requiring offset would be $100 billion for unemployment insurance, doctors’ fix, and the tax extenders. Democrats are arguing unemployment insurance should not be offset, and a good case can be made for not offsetting the tax extenders.
Comments: The Republican leadership’s concession on not requiring a budget offset to the “cost” of the payroll-tax-cut extension reduces the total amount of offsets needed to pass all of the priority items. One of those priority items is the tax extenders, which will presumably include WOTC.
What this boils down to is that we are likely to at least see legislation soon with tax extenders attached. Whether Congress can pass it, of course, is a separate question. Nothing is certain and the political environment remains volatile.
There are new developments in the effort to include WOTC and other tax-extenders in the upcoming payroll tax cut bill. A Senate-House conference is currently negotiating to extend the payroll tax cut, which expires in February.
Paul Suplizio, President of the WOTC Coalition, reports that Ways and Means Chairman Dave Camp is “waving off in advance an expected offer from Senator Baucus” to include tax extenders in the bill. Max Baucus is Chairman of the Senate Finance Committee. (more…)
Is it the calm before a storm? Congress is on vacation. The Senate is scheduled to reconvene on January 23rd. The House on January 17th.
Before members of Congress left for the holiday in December, they had tumultuously agreed on a 2-month extension of the 2011 payroll tax cut and left many expiring tax items floating into limbo. The Work Opportunity Tax Credit, of course, is counted among these unfinished items. (more…)
It’s been all over the news. The U. S. House and Senate agreed to pass a 2-month extension of the 2011 payroll tax reduction. Unfortunately, the tax extenders including WOTC, Research and Development and other important tax incentive programs were not included in this hotly contested legislation.
It is clear, however, that the White House and Senate leadership continue to support tax extenders, which are one of the Senate’s top priorities. (more…)
If you’ve been following the news during the past few days, you might be aware that Congressional leaders are sparring over legislation to extend the existing payroll tax cut. Over the weekend, the Senate rejected the House’s proposal and responded with a proposed 2-month extension, obviously intended to buy time for further negotiations.
Neither version of the legislation included WOTC nor other sought after tax-extenders. This is not, however, the end of the game. (more…)
Our friend Paul Suplizio, President of the WOTC Coalition, issued two urgent updates this morning from Washington DC. The immediate extension of WOTC and other tax incentive programs faces what amounts to a precarious opportunity. (more…)
I received late arriving news on Tuesday from Paul Suplizio of the WOTC Coalition that Congressman Aaron Schock will be making the case for WOTC renewal at the House Republican luncheon today. The luncheon will be from noon until 1:00 PM (eastern), on Wednesday November 16th. (more…)
Word has it that the National Association of Governors Committees on People with Disabilities (or NAGC) is drafting a letter to US Congressional leaders in support of extending the Work Opportunity Tax Credit (WOTC) program. WOTC is slated to expire on December 31, 2011. Some important eligibility categories expired last year. (more…)
Paul Suplizio, president of the WOTC Coalition warned coalition members this morning that the Department of Labor has recommended termination of the WOTC program as a contribution toward addressing the federal budget crisis. Let me save time by quoting Mr. Suplizio directly: (more…)
I received an update from Paul Suplizio, President of the WOTC Coalition today. There is recent progress on the legislative front for an extension of the Work Opportunity Tax Credit.
The WOTC program is currently slated to expire on December 31, 2011. While that might at first seem alarming if your company has been relying on the program to offset hiring costs, its par for the WOTC game. Over the years, Congress has repeatedly allowed the program to expire or nearly expire before renewing it for another term. (more…)