Chairman Archer Announces Death Tax Markup and Vote at Bipartisan Press Conference

Chairman Archer's House Ways and Means Committee will mark up death tax repeal legislation next week. It will closely mirror the death tax provision in last year's vetoed tax bill that called for a gradual rate decrease leading to full elimination over 10 years. It also changed the credit to a true exemption (thereby lowering the overall death tax liability) and reduced the step-up in basis for inherited assets. Archer was joined at the conference by 6 other Members - including 5 Democrats. Look for a Tax Bulletin next week with more details and sample letters you can use to write your Members of Congress.

Health Care Conferees Meeting Today to Discuss Expanded Liability: This is the first time Democrat and Republican managed care conferees have officially met to exchange views on this controversial issue. The House-passed managed care bill allows patients to sue insurance companies for delayed or denied care. This provision also exposes to lawsuits businesses providing health benefits to employees. The Health Benefits Coalition, a coalition of business and insurance groups to which AGC belongs, released a poll this week that found 71% of likely voters prefer a swift, independent review of their claim against the health plan rather than an expanded right to sue. 

Tax Committees Approve Permanent Normal Trade Relations (PNTR) with China: The Senate Finance Committee vote tallied 18-1, while the House Ways and Means Committee approved PNTR by a 34-4 margin. AGC has written Congress in support of PNTR, as China is by far the biggest and most important emerging construction market. The World Bank estimates China needs approximately $750 billion in new infrastructure facilities over the next ten years. If PNTR is rejected, China will retaliate by restricting U.S. access to its markets, thereby forcing American contractors onto the sidelines while construction work is completed by foreign competitors.

House Rejects Budget Reform Bill: On May 16, the House overwhelmingly rejected a major budget process reform bill (H.R. 853) after first defeating an amendment calling for a switch from an annual to a two-year budgeting and appropriating cycle. The vote killing the budget process reform bill was 166-250. House Transportation and Infrastructure Committee Chairman Bud Shuster (R-PA.) and ranking member James Oberstar (D-WI) opposed the budget process reform bill because it would adversely affect transportation trust funds. Their letter to other members of the House said the bill would "undermine TEA 21 and AIR 21, and will make it more difficult to reauthorize these programs in the future." They said that while backers of the budget bill "have in good faith addressed some of the concerns" the Transportation Committee raised, "we have nevertheless concluded that the bill still falls far short of being acceptable." 

House Committee Approves Record Funding for Highway and Airport Construction: Fully funding the historic TEA-21 and Air-21 legislation, the House Appropriations Committee approved $30.7 billion for highways (about 7% higher than current year funding) and $3.2 billion for Airport construction (64% higher than current year funding). The bill may be considered by the full House next week. Senate consideration of the legislation may also begin next week.

Total Maximum Daily Load Hearing Caught up in Larger Senate Controversy: A hearing regarding S. 2417, the Water Pollution Program Enhancements Act, was unexpectedly delayed due to partisan wrangling on the Senate Floor. The legislation addresses EPA's proposal to inventory watersheds, regulate the forestry industry, and regulate nonpoint source pollution through the currently regulated community. EPA proposes to amend the construction general permit to require offsets from other storm water sources) S. 2417 would increase funding for states to complete watershed inventories. A National Academy of Sciences' study of the science behind EPA's proposal is required. In addition, an 18-month moratorium preventing EPA from finalizing the proposal until the scientific study has been completed is in the legislation. AGC supports S. 2417.

EPA Proposes Tighter Diesel Emissions: EPA Administrator Carol Browner announced plans to require diesel engine manufacturers to reduce particulate emissions 95% starting in the year 2007. This will be accomplished through a 97% reduction in the sulfur content of diesel fuel and mandating pollution control technology that is not currently found on diesel trucks. EPA estimates these regulations could add 3 to 4 cents for a gallon of fuel, but the oil industry refutes such claims stating the range is 10 to 15 cents per gallon. Also, the petroleum industry is concerned about the possibility of supply problems. This proposal is expected in the Federal Register shortly. 

Senate Subcommittee will Examine Project Labor Agreements: On Monday, June 5th in Orange County, California, the Senate Subcommittee on Employment Safety and Training will convene a hearing to examine the impact of government mandated project labor agreements (GMLAs) on the construction industry and their public sector clients. The hearing will be Chaired by Sen. Tim Hutchinson (R-AR). The witness panel will include Congressman Gary Miller (R-CA) (Chairman of the Build A Better America Caucus) and other state and local representatives. 

Utilize Congress at Your Fingertips Located in the Member’s Only Section at http://www.agc.org/ to contact your Congressional Representatives.