House of Representatives closes summer session with a flurry

With the summer recess looming, the United States House of Representatives was a beehive of activity as July reached its climax. Here’s a look at a few of the actions taken by the House before its members recessed on July 29. No further action will be taken on these measures, if any, until after the House reconvenes after Labor Day.

A roll of the dice
On July 11, the House approved legislation — H.R. 4411, the “Unlawful Internet Gambling Enforcement Act” — that would allow state lotteries to legally sell tickets directly to consumers over the Internet. The bill includes language that would allow states lotteries to conduct intrastate Internet lottery sales.

During debate, Rep. Shelley Berkley, D-Nev., offered an amendment that would have eliminated two provisions contained in the bill exempting lotteries and horse racing from the ban on Internet gambling. House Judiciary Chairman Sensenbrenner, R-Wis., and H.R. 4411 co-author Bob Goodlatte, R-Va., both labeled the Berkley amendment as a “poison pill” to final passage; however, the amendment was defeated 297-114.

Rep. John Conyers, D-Mich., offered a motion to recommit H.R. 4411 to the House Judiciary Committee to strengthen prohibitions on underage access to Internet gambling sites. The motion, also considered a “poison pill” to final passage, was defeated by a vote of 243-167.

Tax credits reworked
On July 29, hours before recessing, the House passed a tax package that includes provisions important to retailers. The legislation enhances the work opportunity tax credit by combining it with the welfare-to-work tax credit.

Beginning in 2007, the combined tax credit includes “expanded eligibility for WOTC (raised age ceiling for food stamp recipients from 25 to 40), revised eligibility requirements for ex-felons (without regard to family income) and a modification of the filing deadline for WOTC claimants from 21 to 28 days,” according to the House Ways and Means Committee.

Employers may claim the WTW tax credit if they hire individuals who have been receiving public assistance for an extended period of time. The maximum WTW credit is $3,500 during the employee’s first year and $5,000 during the second year of employment.

If passed by the Senate and signed into law by the president, the bill would also extend the current WOTC and WTW credits through the end of the year.

Death tax on life support
Also on July 29, House members voted 230-180 to pass a $310-billion tax package that includes $267.6 billion in death-tax relief. Congress Daily reported that the package was headed to the Senate where it is likely to “run into a wave of opposition.”

The death-tax measure was similar to legislation passed by the House in June. However, instead of a tax rate twice the capital gains rate for estates above $25 million, the rate would be set at 30 percent. Congress Daily wrote that the bill also includes a “cost-saving measure” that would gradually phase in an increase of the individual exemption from $3.5 million to $5 million in 2015, while gradually phasing in a reduction to the top rate on estates above $25 million from 40 percent to 30 percent in 2015.

Minimum-wage hike passed
The House’s tax-cut also package included a boost in the minimum wage to $7.25 per hour over a three-year period.

NACS reported that some members of the House had worked to attach language to the tax package that would allow small business to band together across state lines, through their membership with a trade or professional association, and provide their employees with affordable healthcare. NACS supports this effort and is disappointed it was not included in the final House-passed bill.

On Aug. 3, Senate Democrats blocked the effort to increase the minimum wage citing that two other provisions in the bill — a cut in the estate tax for the wealthy and an extension of certain tax credits for businesses — as the reasons. By a vote of 56-42, the bill fell short of the 60 votes needed to cut off debate and bring the package to the Senate floor, where it seemed certain to pass by a simple majority vote.