TWICDEC8iii

The House and Senate folded elements of four bills into a minor tax bill, HR 6111, to provide extensions of existing tax breaks, revise trade arrangements with Haiti and some African and South American countries. The bill also provides the President with his sought after normalized trade relations with Vietnam, modifies and revises healthcare and Medicare issues, provides funds for coal mine safety and cleanup and allows for oil and gas exploration to begin in certain areas of the Gulf of Mexico. Tax breaks for energy from biomass are also in the bill.

The Tax breaks ranged from restoring the popular sales tax deduction for residents of states that do not have a state income tax, a $4000 deduction cap for higher education borrowing, revised tax credits for corporate research and development and beefed up tax break incentives for employers who hire those on welfare. Medicare will freeze payments to physicians and will provide a 1.5% bonus incentive to physicians that report on quality measures and will continue to pay doctors for administering vaccines even though the vaccines are covered under the new Medicare Part D. Dialysis treatment payments will gain 1.6%. Valley Fever a geographically sectionalized virus will be fought with $40 million in grants. (More details on the bill's tax and healthcare provisions)

Haiti and African countries will benefit from reductions in tariffs on some export items, mostly apparel exports. Industrial chemicals, flat screen monitors, footwear, engine parts, fishing gear and much more are eligible for tariff reductions, modifications or continuation of previous tariff deals. But it was not just businesses that acquired tax breaks-The City of Seattle managed free tariffs on parts for streetcars and individual consumers of tobacco products who would normally be restricted to legally receiving, in a bulk purchase, only a personally consumable amount of tobacco products will find that ordering by phone or over the Internet lifts those personal use quantity limits.

Vietnam is granted permanent normal trade relations status. Because Vietnam is soon to be a member of the World Trade Organization, recognition by the U.S. is necessary before the U.S. can take advantage of any commitments Vietnam makes to the WTO. Vietnam would agree to tariffs of 15% or less on 94% of US exports. On some products including US construction equipment, pharmaceuticals and aircraft, duties will be zero to 5%. Tariffs of 15% or less are expected on three quarters of US agriculture exports. Vietnam must also open it services sectors to US providers including banking, insurance, telecommunications, express delivery and distribution services. (More on the bill's trade provisions)

The bill also moves forward on oil and gas drilling in certain areas of the Gulf of Mexico. The revenues from successful wells would be extended to the Gulf States, of Alabama, Louisiana, Texas and Mississippi in increments over several years. Most other funds will be used for environmental mitigation and other such expenses. (More on the energy provisions)

A special provision manages the disposition and acquisition of a block of Nevada land equaling around 45,000 acres. The federal land would be purchased, auctioned and reorganized to provide for recreation, conservation and development. §

Bill Requiring Pentagon to Report to Congress on Earmarks in Spending Bills Fails HR 6375

Public Health Service to be Lead Agency

in the Event of Bio-Terror

Congress passed the Public Health Security and Bio-terrorism Preparedness and Response Act in 2002 but a 2005 study showed that local public health agencies are still unprepared to handle large infectious disease outbreaks. A GAO study uncovered that few states can evaluate, diagnose and treat 500 or more patients in a single incident. (Full Story)§

Surplus Monkeys Not for Invasive Research

HR 5798

Bill Protecting Children from being Sucked Into Pool Drains Fails

S 3718

High School Students Urged to Create Living Wills HRES 934 & Register to Vote HCR 73

Funds to Air Carriers

for 9-11 Recoup Used Up

HR 5076

FTC GIVEN MUSCLE TO FIGHT SPAM AND SPYWARE

Cross-border fraud affects American consumers, businesses and foreign consumers (Story)

CALLER ID SPOOFING

Anyone who knowingly modifies their caller ID information ...is headed for fines and imprisonment. (Story)

FETUS PAIN BILL FAILS IN HOUSE

Mother Could Decide to use Anesthetic on Fetus

HR 6099

TSUNAMI & DROUGHT WARNING CENTERS ORDERED

Warning centers would be established to disseminate forecasts and warning bulletins to all levels of government and the public. (Tsunami Story)

DROUGHT

"Droughts cost the US economy about $6 to $8 billion yearly"

(Drought Story)

Photo: Morguefiles

The exploration and extraction of oil and gas often brings to the surface extensive amounts of water that, under this bill, would be put to use for irrigation and hydro-electric energy production and other uses. (Full Story)

FUND FOR LEAKING FUEL TANK CLEANUP

Expenditures would be authorized from the Leaking Underground Storage Tank Trust Fund for a variety of projects (Story)

SOCIAL SECURITY TRUST FUND ERROR CORRECTED

S 4091

Photo: DOD

NAVAL VESSELS SOLD TO FOREIGN COUNTRIES

Transfer Requires Congress Oversight

S 3722

Photo: Ira

NUCLEAR TRADE DEAL WITH INDIA FINALIZED

The US seeks to increase the number of countries participating in the Nuclear Non-proliferation Treaty and finds India a prime example of the type of country that qualifies. However, India has not joined the NPT but this bill would take a step in requiring some of the NPT guidelines to be adhered to...(Story)

Photo: Ronnie Bergeron

RATE HIKE POLICY AND OTHER POSTAL CHANGES

"Postage rates will be established yearly by setting an annual limitation of percentage changes that will be equal to the change in the Consumer Price Index..." (Story)