April 2010 E-News

Statement

Welcome to the April Edition of E-News! In today's 24-hour news environment, providing you with timely information on federal efforts and legislation important to Idaho and our country is a top priority for me. This electronic newsletter, along with my website, iTownHall meetings, podcasts, Facebook and YouTube gives me the opportunity to keep you informed on issues important to Idaho, the West and our country. In every edition of E-News, I include a survey question that gives you a chance to weigh in on key issues of the day, and it helps keep me informed of your views.

Reaching as many Idahoans as possible is extremely important to me, and you can use the "Tell a Friend" form on the lower left to pass this along to friends, co-workers and family members. It is my intent that E-News provides you with an interesting and informative resource to help you keep informed on developments in Washington that affect our state, and that you will let me know of anything that I can do to improve E-News and other communications tools.

President Ronald Reagan quipped, "The problem is not that people are taxed too little; the problem is that government spends too much." When we think of April, one thing that, unfortunately, comes to mind is tax day. In recent weeks, Congress has taken steps that will affect future tax days. The Reconciliation bill will force even more taxes on Americans, and during a recession that is the last thing that this Administration and the Congress should be doing.

In this month's E-News, you will find information on:

* Health Care- The fight is far from over
* Taxes-Uncertainty on taxes remains a concern
* Financial Services-Recent legislation does not solve too big to fail
* Transportation-FAA bill will halt the consolidation of the Boise TRACON into the Salt Lake City TRACON
* Property Rights-Improvements to the Endangered Species Recovery Act introduced

Health Care
On Sunday, March 21, the House of Representatives passed two bills -- H.R. 3590, the Patient Protection and Affordable Care Act, which the Senate passed on Christmas Eve, and H.R 4872, the Health Care and Education Affordability Reconciliation Act. Both of these bills were passed on strictly partisan lines with no Republicans supporting either bill. Since the Senate has already voted on H.R. 3590, President Obama signed it into law on Tuesday, March 23. H.R. 4872, the Health Care and Education Reconciliation Act of 2010, came before the Senate this week and ultimately passed the Senate on Thursday by a vote of 56 to 43.

Much like the earlier health care bills before Congress, this bill contains higher taxes, higher premiums, higher costs, more government control, unacceptable gimmicks and Medicare cuts for seniors. It is most definitely not what Americans want for health care reform. Over the last several days, I have joined with my colleagues in offering amendment after amendment to deal with these problems. I offered an amendment that would have held the President to his promise that families earning under $250,000 won't see their taxes increased; it was rejected. Amendments were offered to strike the sweetheart deals reached by various states; to require certification that the bill won't result in an increase in health insurance premiums; and to direct Medicare cuts back into Medicare to strengthen and preserve the program--all of these, and dozens of others, were rejected. However, the fight is far from over. I look forward to continuing to work with my Republican colleagues in the coming months to achieve two goals: to repeal the bad policies contained within these new laws and to replace them with the common-sense and cost-effective policies that Idahoans and Americans want. Return to the top.

Taxes

As Idahoans, and all Americans, prepare for Tax Day 2010, we do so with more uncertainty than ever about what next year's tax returns will look like. As things are set under current law, the income tax rates that have been in effect since 2001 are on track to go back up next year to pre-2001 levels. Moreover, for parents looking to make investments now to start saving for their child's college education and for Baby Boomers looking to make investments to allow them to maintain their standard of living in retirement, the current tax rates on capital gains and dividends that have been in place since 2003 are set to go up next year, if Congress does not act.

Without a doubt, this uncertainty about what Congress may do is a contributing factor to the continued sluggish economy. I have heard this sentiment in testimony in the Senate Finance Committee and from my fellow Idahoans. Idaho farmers, ranchers and small businesses are already faced with an awkward situation this year with regard to the Death Tax. Through legislation passed in 2001, the Death Tax has been gradually phased out in recent years and, despite fears about the awkward situation that would be created if Congress did not act before the end of last year, Congress unfortunately did not act; and the Death Tax has been completely eliminated for this 2010 year only. If Congress fails again to act this year, the Death Tax will rise again on January 1, 2011 - back to its pre-2001 levels.
While it seems there is some understanding among my Senate colleagues that the worst thing we can do in a recession is to raise taxes, it appears that the uncertainty as to whether or not taxes will rise is also quite stifling to our economy. As a member of the Senate Finance Committee, I continue to urge my colleagues to act immediately to provide Idahoans and the American people with some certainty and predictability as they make decisions that will affect their tax returns next year. For more information on taxes please visit the website of the Internal Revenue Service. Return to the top.

Financial Services

On March 22, the Senate Banking, Housing and Urban Affairs Committee, of which I am a member, passed the "Restoring American Financial Stability Act of 2010" by a party-line 13-10 vote. I voted against this 1,336-page proposal because it doesn't end "too big to fail" and future bailouts, creates disincentives for financial markets in this country to work, and fails to address the origins of the crisis.

No institution, however large or complex, should be considered "too big to fail." Because certain companies were not allowed to fail, the moral hazard that we face in this country has gotten worse and the burden is upon us to convince creditors and market participants that large failing financial institutions will be liquidated and not merely propped up. We must re-establish the principle that we have a market that will allow companies to fail.

This is a complex and massive bill that needs to be fundamentally overhauled before being brought to the Senate floor. There is no disagreement about the need to act to address the financial meltdown that occurred in 2008. Unfortunately, there is much less consensus about how reform should be structured and what the various pieces should look like. Done properly, financial reform will increase consumer protection and prudential protection. It will enhance our ability to manage systemic risk, end the too big to fail hazard or risk in the United States, and facilitate capital formation processes that are so necessary for job creation and American competitiveness. Like the health care reform bill, the "rush to judgment" lawmaking being used to accomplish policy goals is a disservice to our nation. Return to the top.

Transportation

Senator Jim Risch and I were recently successful in our efforts to prevent the Federal Aviation Administration (FAA) from moving the TRACON radar control system out of the Boise Airport until the new Air Traffic Control Modernization Board reviews and evaluates the proposal. An amendment included in the FAA Reauthorization Act requires more study and evaluation of the proposal. The FAA had sent an Article 46 notification of the FAA's intent to move the Boise TRACON to Salt Lake City. Senator Risch and I cited safety and cost issues related to the move and placed a statement in the Senate Record prior to the Senate approving the FAA Reauthorization Bill on a 93 to 0 vote. Return to the top.

Property Rights
Recently, I re-introduced legislation to provide tax credits for private property owners who assist in species recovery efforts. More than eighty percent of threatened and endangered species reside on private lands, including agricultural land. Creating new incentives for land owners benefits these species' recovery efforts. In 2008, I was fortunate to have similar legislation -- which provides tax deductions for these efforts -- included in the 2008 Farm Bill, but we must keep moving forward on these efforts. My bill, the Endangered Species Recovery Act, would create habitat protection easement credits and habitat restoration credits to fairly compensate landowners who provide conservation easements and assist with species recovery. The legislation is co-sponsored by Senators Jim Risch (R-Idaho), Sam Brownback (R-Kansas), Richard Burr (R-North Carolina), Thad Cochran (R-Mississippi), Olympia Snowe (R-Maine), John Cornyn (R-Texas), Blanche Lincoln (D-Arkansas) and Jon Tester (D-Montana). Return to the top.

Still looking for more information? Use the questions to the left to specify issues that are of concern to you.

It is my hope that you will benefit from being aware of changes in legislation of concern to you. Please visit the Issues and Legislation section of my website for information that addresses many issues important to all of us. As always, I highly value the opinions and concerns of my fellow Idahoans. With that in mind, we continue to work to improve my website. But please do not reply to this e-newsletter. Any comments, suggestions or concerns that you have should be sent to me through the E-mail Me section on my website. Also, let me know if there are issues that you would like me to address.

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