Washington Report: Congress Back in D.C.?"Financial Services Reform First on the To-Do List

Also: NACS Fights for Ban on Internet Tobacco Sales; Possibility of Tax Extenders Dwindles

July 09, 2010

House and Senate Members Back to Work
After a weeklong work period at home, Congress comes back in session on Monday. The most pressing issue the Senate will deal with is the financial services overhaul. The legislation needs 60 votes to pass and is crucial to the success of swipe fee reform.

Most recent information suggests that there are still senators who need to be pushed into the "yes" category. Phone calls and emails to your member??s office will make a huge difference in getting this vital legislation to the president??s desk.

Go to http://www.capitolconnect.com/nacs and tell your senators to pass H.R. 4173, the Wall Street Reform and Consumer Protection Act.

NACS Staff Contact: Lyle Beckwith, lbeckwith@nacsonline.com

Tribes Challenge the PACT Act for Right to Sell Tobacco Over the Internet
More than 140 Seneca Nation businesses have held off implementation of the PACT Act for a few more weeks. Yesterday, in the case between the Seneca Nation and the federal government, which will decide how tobacco products can be sent through the mail, the judge extended restraining orders to keep the government from enforcing the new law.

The PACT Act (NACS worked hard to secure its passage) prevents the U.S. Postal Service from delivering commercial cigarette sales. It also requires companies that engage in interstate sales to make sure all federal, state and local taxes are paid, and the Act requires age verification for deliveries.

According to the Buffalo News, a lawyer for one of the Seneca businesses "argued that a seller could not possibly know about every state and local cigarette tax law in every state."

NACS filed an amicus brief in the litigation brought by Seneca tribal retailers challenging the PACT Act. More action is expected in the case by the end of the month.

NACS Staff Contact: Lyle Beckwith, lbeckwith@nacsonline.com

Out of Control Spending Puts Tax Extenders in Peril and the Budget on Hold
On June 30, 2010, the United States National Debt increased by $165,931,938,264.30 - an amount larger than the entire annual deficit for fiscal year 2007 and larger than the $140 billion in "savings" the new universal health-care plan will produce over its first 10 years.

With the national debt spiraling out of control, talk among House and Senate Democrats has come to a screeching halt when deciding whether or not to extend the Bush-era tax cuts. Arguments are no longer focused on the merits of extending the first-time homebuyers credit, estate tax reform, unemployment or income tax. They are now focused on how the country can afford it.

Democrats came into office promising to offset their increased spending by finding new ways to generate revenue. The only problem is, they have run out of these revenue generators and are now targeting the tax cuts that President George W. Bush enacted.

On June 24, 2010, Senator Harry Reid (D-NV) tried ?" for the third time ?" to pass the American Jobs and Closing Tax Loopholes Act in the Senate. The third vote showed the same thing as the first - he does not have the support of his Democratic colleagues because they do not approve of the revenue generators the bill is recommending to offset the tax extenders.

On June 22, 2010, House Majority Leader Steny Hoyer (D-MD) announced that the United States House of Representatives will not be voting on a budget this year. The House has passed an annual budget resolution every year since the current budget rules were put into place in 1974. Hoyer stated, "It isn??t possible to debate and pass a realistic, long-term budget until we??ve considered the bipartisan commission??s deficit reduction plan, which is expected in December."

However, weeks prior to this announcement, Democrat leaders were busy trying to negotiate with Blue Dog Democrats to compromise on a budget. Ultimately, the Blue Dogs balked at the price tag of the Democrat leadership??s "jobs agenda," which they saw as simply unaffordable.

NACS Staff Contact: Corey Fitze, cfitze@nacsonline.com

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