Sunday, March 21, 2010

Senate Fight Starts: GOP Says Senate Parliamentarian Will Kill Fix-Its Bill - The Note

Senate Fight Starts: GOP Says Senate Parliamentarian Will Kill Fix-Its Bill - The Note

Although reconciliation was originally understood to be for the purpose of improving the government's fiscal position (reducing deficits or increasing surpluses), the language of the 1974 act referred only to "changes" in revenue and spending amounts; not specifically to increases or decreases. Former Parliamentarian of the Senate Robert Dove has stated that reconciliation

was never used for that purpose. But in 1975, just a year after it had passed, a very canny Senate committee chairman -- Russell Long of Louisiana -- came in to the Parliamentarian's Office, and he kept having trouble with his tax bills because of the Senate rules. People were offering amendments to them that he didn't like. They were debating them at length, and he didn't like that. And he saw in the Budget Act a way of getting around those pesky little problems. And he convinced the Parliamentarian at the time -- I was the assistant -- that the very first use of reconciliation should be to protect his tax cut bill.[3]

The Byrd Rule was adopted in 1985 and amended in 1990. Its main effect has been to prohibit the use of reconciliation for provisions that would increase the deficit beyond 10 years after the reconciliation measure.

Congress used reconciliation to enact President Bill Clinton's 1993 (fiscal year 1994) budget. (See Pub.L. 103-66, 107 Stat. 312.) Clinton wanted to use reconciliation to pass his 1993 health care plan, but Senator Robert Byrd insisted that the health care plan was out of bounds for a process that is theoretically about budgets.

In 1999, the Senate for the first time used reconciliation to pass legislation that would increase deficits: the Taxpayer Refund and Relief Act 1999. This act was passed when the Government was expected to run large surpluses: it was subsequently vetoed by President Clinton. A similar situation happened in 2000, when the Senate again used reconciliation to pass the Marriage Tax Relief Reconciliation Act 2000, which was also vetoed by Clinton. At the time the use of the reconciliation procedure to pass such bills was controversial.[4]

During the administration of President George W. Bush, Congress used reconciliation to enact three major tax cuts, each of which was predicted by the Congressional Budget Office to substantially increase federal deficits.[5] These tax cuts were set to lapse after 10 years to satisfy the Byrd Rule.

Deficit impact of the Health Care Reform Bill

The Congressional Budget Office's preliminary estimate is that if both bills are passed into law in 2010, the federal deficit will be increased by $138 billion over the 2010–2019 period.[2]

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