Republicans Reach Deal on U.S. Debt Ceiling Extension, Spending Plan

27 Oct 2015 | Author: | No comments yet »

Details of Boehner-White House two year budget deal.

House GOP leaders struck a budget deal made with the White House just before midnight Monday aimed at averting a government shutdown and forestalling a debt crisis.Congressman Mo Brooks speaks to a crowd of 800 during the Huntsville Chamber of Commerce of Huntsville/Madison County Washington Update Luncheon in the North Hall of the Von Braun Center Monday, March 9, 2015 in Huntsville, Ala. (AL.com file photo/Eric Schultz) (Eric Schultz) In his bid to be voted Speaker of the House, Wisconsin Congressman Paul Ryan has made concessions on immigration policy to satisfy a conservative wing of House Republicans, according to U.S.

The pact, which would take these volatile issues off the table until after the 2016 presidential election, emerged in behind-the-scenes negotiations late Monday on Capitol Hill. Speaker John Boehner is pressing ahead with one last deal as he heads for the exits, pushing to finalize a far-reaching, two-year budget agreement with President Barack Obama before handing Congress’ top job over to Rep. Sources told Fox News the House GOP leadership will likely require the support of almost all House Democrats and between 90 and 100 Republicans to see the agreement through.

Amash was one of a group of more conservative Republicans in the House who had forced out Speaker Boehner – but even as Boehner’s final days neared, he was actively negotiating this deal with President Obama in order to clear the decks for his successor, Paul Ryan. Ryan, Republican of Wisconsin, in the coming days. • Representative John Fleming, Republican of Louisiana, to the Associated Press: ‘‘This is again just the umpteenth time that you have this big, huge deal that’ll last for two years and we were told nothing about it and in fact even [Monday], were not given the details.

In fact, Brooks, R-Huntsville is scheduled to give a speech on the House floor on Tuesday morning outlining the agreement Ryan struck with Brooks and other members of the Freedom Caucus in a face-to-face meeting last week. In fact, the deal is much like one struck by Ryan two years ago, which was also rejected by Tea Party lawmakers – but they were unable to stop the plan. The budget pact, in concert with a must-pass increase in the federal borrowing limit, would solve the thorniest issues awaiting Ryan, who is set to be elected speaker on Thursday. The Washington Post — with a headline that read “Fuming over Ryan, some conservatives turn on Freedom Caucus” — reported on Monday that the “hard-right” Freedom Caucus was abandoning its conservative principles by working with Ryan. The revised security category is defined to be the National Defense budget function (Function 050) which includes funding for the Department of Defense, the nuclear weapons- related work of the Department of Energy, intelligence-related activities, and the national security elements of the Departments of Commerce, Justice, Homeland Security, and several independent agencies.

Paul Ryan’s election as his successor, expected Thursday Boehner had promised to clear away as much business as possible before handing his speaker’s gavel to Ryan, R-Wis. The emerging framework would give both the Pentagon and domestic agencies two years of budget relief of $80 billion in exchange for cuts elsewhere in the budget. The newly-assembled budget plan would restore order to Washington and remove the threat of budget and debt chaos — a premier goal of congressional Republicans like Senate Majority Leader Mitch McConnell of Kentucky, a key architect of the pact. Capitol Hill Democrats are likely to solidly support the agreement, although it gives greater budget relief to the Pentagon than it does domestic programs. In addition to the limits on discretionary spending, section 251A of BBEDCA also includes a sequester of direct spending, the size of which interacts with the discretionary spending levels.

It also would clean up expected problems in Social Security and Medicare by fixing a shortfall looming next year in Social Security payments to the disabled, as well as a large increase in Medicare premiums and deductibles for doctors’ visits and other outpatient care. “Cleaning out the barn,” Boehner said, as he entered the evening meeting of Republicans to pitch the deal. Matt Salmon, R-Ariz. “A two-year budget deal that raises the debt ceiling for basically the entire term of this presidency.” The agreement was panned by two prominent conservative groups, Heritage Action and the Club for Growth. It also replaces the arbitrary dips and increases in the Medicare sequester percentages in 2023 and 2024 with a flat two-percent rate as applies under current law in fiscal years 2016 through 2022.

The two organizations issued a joint statement saying the deal was “brokered by a lame-duck speaker and a lame duck president [and] represents the very worst of Washington – a last minute deal that increases spending and debt under the auspices of fiscal responsibility.” The measure under discussion would suspend the current $18.1 trillion debt limit through March 2017. A lot of conservatives disliked the measure and many on the GOP’s right flank are already swinging against the new one, which would apply to the 2016-17 budget years. “I’m not excited about it at all,” Rep. Offsetting spending cuts that would pay for domestic spending increases included curbs on certain Medicare payments for outpatient services provided by hospitals and an extension of a 2-percentage-point cut in Medicare payments to doctors through the end of a 10-year budget. Subsection 102(b) provides that the chair of the Senate Committee on the Budget will submit after April 15 and no later than May 15, 2014 for publication in the Congressional Record allocations of budgetary resources for each congressional committee, aggregate spending and revenue levels, and levels of revenues and outlays for Social Security that will be enforceable as if included in a conference agreement on a budget resolution.

There’s also a drawdown from the Strategic Petroleum Reserve, reforms to crop insurance, and savings reaped from a Justice Department funds for crime victims and involving assets seized from criminals. Subsection 301(a) amends the Communications Act of 1934 to authorize the use of automated telephone equipment to call cellular telephones for the purpose of collecting debts owed to the United States government. I want to clean the barn up a little bit before the next person gets there.” “The outline that was presented seems like a path forward,” said Rep. Subsection 301(b) requires the FCC to issue regulations to implement this section within 9 months of the date of enactment of the Bipartisan Budget Act of 2015. Section 402 requires DOE to conduct a strategic review of SPR and develop proposals related to its role in national policy, relevant legal authorities, configuration and performance, and long- term effectiveness.

Subsection 403(b) prohibits sales under subsection (a) if such sales would limit the ability of the SPR to meet its strategic purpose of preventing and reducing the adverse impacts of severe domestic energy supply interruptions. Subsection 404(c) authorizes the sale (subject to approval in advance through the appropriations process) of up to $2 billion of oil from the SPR and for deposit of the proceeds of the sale in the Modernization Fund. Current law: Single-employer pension plans annually pay a fixed premium to the PBGC, which is indexed for inflation, and will be $64 per person in 2016. Provision: The premium due date for plan years beginning in 2025 would be the fifteenth day of the ninth calendar month beginning on or after the first day of the premium payment year.

Current law: Private sector defined benefit pension plans generally must use mortality tables prescribed by the Treasury for purposes of calculating pension liabilities. Plans qualify to use a separate table only if (1) the proposed table reflects the actual experience of the pension plan maintained by the plan sponsor and projected trends in general mortality experience, and (2) there are a sufficient number of plan participants, and the plan was maintained for a sufficient period of time to have credible information necessary for that purpose.

Provision: The determination of whether the plan has credible information shall be made in accordance with established actuarial credibility theory, which is materially different from the current rules. Under MAP-21 (the 2012 highway bill) and HAFTA (the 2014 highway bill), interest rates for valuing liabilities in 2012-2017 are deemed not to vary more than ten percent from the average interest rates over the prior twenty-five years.

That corridor increases by 5 percent per year through 2021, at which point it remains permanently at 30 percent, which has the effect of deferring companies’ deductible required pension contributions. This policy accomplishes this by setting a new 2016 basic Part B premium for the beneficiaries not held harmless at $120, which is the amount the Part B premium would otherwise be for all beneficiaries in 2016 if the hold harmless provision in current law did not apply. To effectuate this policy, in 2016, there would be a loan of general revenue from the Federal Treasury to the Supplemental Medical Insurance (SMI) Trust Fund. Currently, single source and innovator multiple source drugs pay an additional rebate if the price of the drug has increased faster than inflation (CPI-U).

Section 603 would codify the Centers for Medicare & Medicaid Services (CMS) definition of provider-based (PBD) off-campus hospital outpatient departments (HOPDs) as those locations that are not on the main campus of a hospital and are located more 250 yards from the main campus. New PBD HOPDs, as defined by this section, would be eligible for reimbursements from either the Ambulatory Surgical Center (ASC PPS) or the Medicare Physician Fee Schedule (PFS).

Section 1511 requires employers with more than 200 employees to automatically enroll new full-time equivalents into a qualifying health plan if offered by that employer, and to automatically continue enrollment of current employees. Section 701(a) establishes the short title for this section as the “Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.” Section 701(b) amends the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) to: Require all agencies with civil monetary penalties covered by the statute to update penalties based on their value in the last update prior to 1996 and the change in the CPI between that date and October 2015. The increase in penalties that results from this “catch up” calculation would be capped at 150% (so a penalty now set at $10,000 could not increase to more than $25,000). These annual inflationary adjustments would not require Improve oversight and agency compliance by (a) requiring agencies to include information about penalties and their adjustments in agency annual financial statements, and (b) calling on GAO to assess compliance with required inflation adjustments as part of its annual agency Section 802 rescinds and permanently cancels $1.5 billion from the Crime Victims Fund. Requires nationwide coverage by Cooperative Disability Investigations (CDI) units, jointly run by the Social Security Administration (SSA) and the Office of the Inspector General (OIG), and consisting of staff from local SSA offices, the OIG, State Disability Determination Services (DDS), and local law enforcement.

Increases the maximum Civil Monetary Penalty (CMP) that the SSA can levy against individuals in a position of trust from $5,000 to $7,500 for each false statement, representation, conversion, or omission the individual makes or causes to be made. Updates requirements for the Congressional review period, under which the Commissioner must notify Congress in advance of any experiment or demonstration project conducted under this authority.

Authorizes Social Security to obtain, with beneficiary consent, data on beneficiary earnings from payroll providers and other commercial sources of earnings data through a data exchange. The SSA would be required to publish regulations governing this process prior to implementation. (Effective one year after enactment) When a DI beneficiary works, the SSA must consider which month the income was earned in determining whether the individual’s earnings exceed the Substantial Gainful Activity amount. In some cases, OPM pays the FERS annuity before the SSA has determined whether the annuitant is also entitled to Social Security disability, resulting in a FERS overpayment.

Subsection 901(b) further provides that on March 16, the public debt limit will be increased, but only to the extent that: (1) the face amount of obligations issued and the face amount of obligations whose principal and interest are guaranteed by the federal government (except guaranteed obligations held by the Secretary of the Treasury) outstanding on March 15, Subsection 902(a) limits the adjustment under section 901(b) by prohibiting an obligation from being taken into account unless its issuance was necessary to fund a commitment incurred by the federal government that required payment before March 16, 2017. This section expands the eligible uses of the Spectrum Relocation Fund to include research and development of spectrum technologies and systems to improve government spectrum efficiency. For partnerships with 10 or fewer partners, the IRS generally applies the audit procedures for individual taxpayers, auditing the partnership and each partner separately. Under the TEFRA rules, once the audit is completed and the resulting adjustments are determined, the IRS must recalculate the tax liability of each partner in the partnership for the particular audit year.

A third audit regime applies to partnerships with 100 or more partners that elect to be treated as Electing Large Partnerships (ELPs) for reporting and audit purposes. A distinguishing feature of the ELP audit rules is that unlike the TEFRA partnership audit rules, partnership adjustments generally flow through to the partners for the year in which the adjustment takes effect, rather than the year under audit. As a result, the current-year partners’ share of current-year partnership items of income, gains, losses, deductions, or credits are adjusted to reflect partnership adjustments relating to a prior-year audit that take effect in the current year.

Partnerships would have the option of demonstrating that the adjustment would be lower if it were based on certain partner-level information from the reviewed year rather than imputed amounts determined solely on the partnership’s information in such year. This information could include amended returns of partners opting to file, the tax rates applicable to specific types of partners (e.g., individuals, corporations, tax-exempt organizations), and the type of income subject to the adjustment (e.g., ordinary income, dividends, capital gains).

The partnership generally would be permitted to take the adjustment into account at the partnership level or issue adjusted information returns to each reviewed-year partner. A person also may be recognized as a partner if capital is a material income-producing factor, whether such interest was obtained by purchase or by gift. The provision would clarify that Congress did not intend for the family partnership rules to provide an alternative test for whether a person is a partner in a partnership.

Capitol known as the small House rotunda as “Freedom Foyer.” Busts of Winston Churchill, Lajos Kossuth, and Vaclav Havel are on display in the Freedom Foyer.

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