Washington Snapshot - September 12, 2013

On Capitol Hill

Members Return to Washington

Activity in the halls of Congress increased as lawmakers returned to the Capitol on Monday. Although debate continues on Syria, the votes on the use of force have been put off while a diplomatic solution is explored. In the meantime, House and Senate leaders have taken to the Floor and the media to outline their legislative priorities for the next six weeks.

Tax Reform Conversations in Committee

House Ways and Means Committee Chairman Dave Camp (R-MI-4) continues to aim for comprehensive tax reform. PoliticoPro reports that Camp is in ongoing conversations with House leadership about getting on the legislative calendar, and has invited his Republican committee colleagues to a series of four private meetings to prepare for a possible October tax markup (The Hill, September 11, 2013). Bloomberg outlines that Republican Committee members believe the scope of the meetings will be comprehensive, including discussion on corporate and individual tax rates, deductions and credits. No similar meetings have been announced yet on the Democratic side, but Ways and Means Ranking Member Sander Levin (D-MI-9) urged Camp for inclusion, saying, "This started out on a bipartisan basis, and I think that's the way to continue." Democratic staff on House Ways and Means are concerned that they will not be given much time to review and respond to a possible bill before the possible October markup.

In the Senate, Chairman Max Baucus reiterated his timeline to move comprehensive tax reform this year. PoliticoPro reports that the Chairman is considering several options, including the possibility of breaking a comprehensive tax reform package into several pieces. Committee staff stress that while the Chairman prefers a comprehensive overhaul of tax law, they are looking at all options. Senator Orrin Hatch (R-UT) predicted today that a tax reform overhaul could be completed in 2014.

Senate and House Floor Prepare for Budget and Debt Ceiling Debates

This week the debate and floor schedule on the spending and debt limit bills changed daily, and even hourly. On Tuesday, House Republican leadership released their

Late Wednesday, Republican House leadership delayed a vote on the government spending measure, according to the Washington Post, which may allow time for a deal to be brokered. If lawmakers do not reach agreement before September 30, a partial government shutdown could begin. House Majority Leader Eric Cantor (R-VA-7) announced that the House recess planned for the week of September 23rd may be cancelled if these issues remain unresolved.

The debt ceiling is the other critical issue on the horizon that will require swift Congressional action to avert economic consequences. The Wall Street Journal reports that the U. S. government could lose its ability to borrow money and be unable to pay its bills sometime between October 18 and November 2, according to the Bipartisan Policy Center. 

To make a complicated matter even more complex, House Majority Chief Deputy Whip Peter Roskam (R-IL-6) suggested to Wall Street Journal reporters that the debt ceiling issue should be linked to comprehensive tax reform to tackle two of the biggest fiscal issues at the same time.

Capitol Hill’s top leaders, House Speaker John Boehner (R-OH-8), Senate Majority Leader Harry Reid (D-NV), House Minority Leader Nancy Pelosi (D-CA-12) and Senate Minority Leader Mitch McConnell (R-KY)

Capitol Hill observers predict a lot of partisan debate, behind the scenes maneuvering, and some chaos and confusion before these two issues are resolved. While this may crowd the floor schedules, the immediate work on tax reform is occurring at the committee level and among Members and staff. This will certainly continue as these other debates are in the spotlight.

Thanks to the Tax Reform Tour, Tax Reform Did Garner Some Headlines this Week

The ongoing Tax Reform Tour gained both local and national media coverage. Chairman Max Baucus (D-MT) and Chairman Dave Camp (R-MI-4) stopped in Memphis, TN, visiting a family farm and Federal Express’ headquarters. A WSJ blog, “Lessons From the ‘Simpler Taxes for America’ Tour” noted that despite the across-the-party-lines interest or support that the Chairmen received from the majority of Americans, the measure still faces tough obstacles, including the revenue raising vs. revenue neutral debate.

The visit prompted two former Tennessee governors to co-author an op-ed for The Tennessean urging bipartisanship on fiscal issues.

Ways and Means Hearing on the IRS Exempt Organizations Division Planned for Next Week

Representative Charles Boustany (R-LA-3), Chairman of the Ways and Means Oversight Subcommittee will hold a hearing on September 18 to check on the agency’s progress four months after the initial disclosure that some exempt organizations were receiving additional scrutiny. Acting IRS Commissioner Danny Werfel is expected to testify.

Articles, Op-Eds, and Blogs Hightlight Support for the Charitable Deduction

Katie Bascuas’ article in Associations Now highlights the message of the Charitable Giving Coalition. “Eliminating Charitable Deduction Not Just 'Dollars-and-Cents Story” makes the case that charitable giving is not just about the dollars and cents, and it goes beyond statistics such as job creation. There are human faces and stories behind the numbers, and those stories should be told and shared to give a complete picture of the positive impact of charitable giving.

Texas nonprofits co-authored an op-ed,“Congress, President must preserve charitable deductions,” that ran this week in the El Paso Times. This coalition of foundations and nonprofits used national data sources to make their point. Specifically utilizing IRS data they were able to illustrate the importance of protecting the charitable deduction for local economies. In El Paso’s case: charitable giving by residents amounts to an impact of more than $105,757,770 annually to their local economy.

A blog on the Minnesota Council on Foundations website highlights a visit by Representative Keith Ellison (D-MN-5) who urged everyone in the sector to “share their story” and raise awareness. The Congressman used the example of recent sharp budget cuts (sequester) and the negative impact on nonprofits and real people in the community. He offered suggestions that are similar to the “Summer of Action” plan created by the Charitable Giving Coalition.

Other Opinion Pieces

Last week’s Snapshot linked to a New York Times op-ed by Rob Reich, “Not Very Giving” that raised his concern about charitable giving to school foundations. This week, two columnists responded. Felix Salmon of Reuters wrote, “Why Charitable Contributions to Public Schools are OK.” He sees charitable giving to public schools as benefitting an entire school district and strengthening that community. If the community happens to be wealthy and parents can contribute more, his argument is that this charitable giving links those families to the public school system (as opposed to pulling away from the public school system into private schools). Richard Reeves of Brookings looks at it from a different angle in his blog. His concern is the disparity between wealthy school districts and poorer school districts. He urges states and the federal government to adjust funding formulas to equalize per-pupil resource availability, thus eliminating discrepancies district to district.

Intersting Articles

In a timely, well researched piece in Nonprofit Quarterly, Rick Cohen looks at the ramifications of a possible military strike in Syria on the nonprofit sector, especially the humanitarian needs engendered by the conflict.

And in a look at global philanthropy, “Can Charity Replace Government?” from McKinsey on Society’s online publication Voices, Ken Stern’s article examines historic trends in the nonprofit sector in both the United States and Europe. He cautions that charitable giving cannot effectively replace government services in all cases. In an era of worldwide budget cuts, we increasingly hear the call for charities to “pick up the slack.” Stern looks at the ramifications of these pressures on both the domestic U.S. and European arenas.

Council on Foundations Fall Conference for Community Foundations

Last week we showcased some of the preconference public policy offerings at our San Diego conference. This week we showcase some of the Advocacy breakout sessions which will give us an opportunity to-- talk in-depth about many of the policy issues and advocacy opportunities we have presented in Washington Snapshot.

Tuesday, September 24 (10:30am - 12:00pm) The Power of Advocacy and the Opportunity for Community Foundations

New to advocacy or want to take your efforts to the next level? Through audience engagement and real world illustrations, this session will explore several important issues, including the elements of an effective advocacy effort; important considerations related to your mission, your staff, your board and your community; the broad range of activities that can advance a cause and potential roles you can play; and, the legal and operational matters for your organization. Whether you’re a novice or a pro, we’re confident that this panel of experts will invigorate the way you think about the broad world of advocacy.

Tuesday, September 24 (1:00pm - 2:30pm) State of the States: Connecting with Lawmakers & Regulators for Policy Advocacy

There is a continuum of policy and advocacy options open to community foundations to protect and enhance both their operations and their programmatic goals. We’ll review the changes state and local legislators and regulators are considering that could impact your work and the work of your grantees, and how our field is responding to the threats and opportunities these changes present. Come engage with colleagues and other experts to develop practical strategies for strengthening your connections with policymakers, regulators, and other nonprofit and philanthropic leaders to achieve positive policy outcomes for philanthropy and advance your program goals. For more info on these and all the sessions offered at the conference, or to register please visit the conference website.

Keep in Touch

We hope to see many of you in person in San Diego, and we would welcome your input on Snapshot. Let us know in person what you think – or of any additional topics you’d like to see covered. But always feel free to reach out to any member of our team at govt@cof.org.