Reid Again Pulls Small Business Bill After Parties Fail to Reach Accord
By Heather M. Rothman
Publication Date: 07/30/2010
Unable to strike a deal with Republicans on the content and number of amendments to be offered on a small business tax relief and lending bill, Senate Majority Leader Harry Reid (D-Nev.) again pulled the legislation July 29 from floor debate.
Tempers have been flaring on the Senate floor over the past couple of days with Democrats and Republicans trading unanimous consent agreements and barbs over which party was at fault for the chamber's inability to move forward on the legislation (H.R. 5297). The measure has been on and off the floor for more than one month.
“I think we are making some real headway here,” Senate Minority Leader Mitch McConnell (R-Ky.) said prior to the bill being pulled.
The day began with the Senate failing to invoke cloture on a substitute amendment (S. Amdt. 4519) that included a $30 billion lending pool for small community banks with assets less than $10 billion, $1.5 billion in agriculture disaster funds, and a repeal of the advanced earned income tax credit.
The entirely partisan vote of 58-42 technically fell one vote short as Reid changed his vote to “nay,” so he could refile the cloture petition at a later time.
The day ended with Reid advising his colleagues to “take a little time over the next couple of days [to] kind of cool down.”
“To filibuster small businesses is not the way forward,” said Small Business Committee Chairwoman Mary Landrieu (D-La.).
Amendment Debate Persists
As has happened over the past few days, Reid and McConnell each offered agreements that would suit their own side, only to have objections raised.
Reid's agreement focused on giving Republicans three amendments—related to the research and development tax credit, expiring incentives for biodiesel and renewable diesel, and repeal of new information return reporting requirements—and also having votes on Democratic side-by-sides.
Although earlier in the day McConnell would not pin down how many amendments he wanted offered, in the evening, he asked for the three amendments Reid offered plus an additional amendment on discretionary spending caps. He also sought to ensure that the Democratic side-by-sides are “relevant” to GOP amendments.
Tax Provisions Languish
With the House not in session during the week of Aug. 2, even if the Senate could agree on a small business package, it would not be reconciled before August.
The bill contains an extension of bonus depreciation language for one year, the exclusion of gains from the sale of small business stock acquired after the date of enactment in 2010 and held for more than five years, and language to allow general business credits of small businesses to be carried back five years. The bill also raises tax code Section 179 expensing limitations for 2010 and 2011.
Further, it includes language that would require guarantee fees to be treated as interest for tax purposes, a provision removing cellular phones as “listed property,” allowing firms to deduct the cost of cell phones from their taxes without a need for extensive recordkeeping on workers' personal use of the phones, and a one-year extension of bonus depreciation.
“This is not Republican versus Democrat out in the real world. We've got Republican businesses, Democratic-owned businesses, tea party-owned businesses, all kinds of folks out there that can't get loans,” said Senate Finance Committee member Debbie Stabenow (D-Mich.). “It is extremely unfortunate that it has become a partisan issue here.”
The complete text of this article can be found in the BNA Daily Tax Report, July 30, 2010. For comprehensive coverage of taxation, pension, budget, and accounting issues, sign up for a free trial or subscribe to the BNA Daily Tax Report today. Learn more »
© 2010, The Bureau of National Affairs, Inc.
