Quack! Quack! The Lame Ducks are here! What to watch for.
November 15, 2010
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No, I’m not talking about all those Canadian Geese that are blocking traffic and crapping all over your lawn. I’m referring to the “Lame Duck” session of congress. For the uninitiated, the term refers to the congressional session between the elections and the beginning of the new congressional term, when many of the members of congress are simply biding their time before they are shown the door and replaced. It’s a time where lots of shenanigans can occur; if you’ve been voted out and you only have a few weeks to “live,” you can vote on some things with no concern as to how it will affect you.
In this case, congressional democrats originally had lots of plans for the session. Unfortunately, November 2 hit like a category 5 hurricane and messed up their plans. But no worries, there will be fireworks. Here is a sample of what to watch for:
- The biggest issue to be resolved will be the extension (or not) of the Bush Tax Cuts. Republicans want all of them made permanent. Democrats want to draw the line at people making $200k/$250k individual/family. There is talk of a 2 year extension of all cuts, but Obama and Pelosi are holding firm that they want no compromise. Another compromise by Senator Chuck Shumer (D-NY) popped up over the weekend. We will see if anyone pays attention.
- The estate tax, aka the “death tax,” if not addressed, will go from 0% back to its original level of 55%.
- Funding of the government is currently done via a temporary spending bill. Congress will have to put in place a new spending bill for the year. Should be a simple thing, right? No. Dems are refusing to accept a Repub proposal to hold spending at 2008 levels to reduce spending.
Other things that may come up include “Don’t Ask Don’t Tell” (which needs to go), the DREAM Act (a little too soon and too controversial right now), and the Alternative Minimum Tax, which could hit a lot more people if nothing is done.