House of Representatives
Yesterday, the House Ways and Means Committee and the Senate Finance Committee held a joint hearing on tax reform and the tax treatment of capital gains. Base broadening tax reform with the payoff of lower rates is one of the key components of both the Simpson-Bowles and Domenici-Rivlin plans. But in order to get the lower rates in a fiscally responsible way, everything must be on the table, and that includes capital gains.
There has been much discussion over the "Ryan Plan" since the House Budget Chairman was selected by Governor Romney to be his running-mate. However, there is not just one Ryan plan, but multiple iterations of the Congressman's proposals. They have evolved over time on specifics, although the overall approach has remained clear.
The Council on Foreign Relations has joined in on those warning of the dangers of the fiscal cliff due to hit early January and unsustainable rising levels of debt. The helpful "backgrounder" piece explains both the domestic, national security, and economic consequences of the cliff as well as some context to how we got to this point.
A few members of Congress are now proposing House-Senate working groups to try and negotiate a compromise that would avoid the squester. From The Hill:
Sen. Kelly Ayotte (R-N.H.) said that forming the bipartisan working groups would be a critical piece in getting lawmakers in both chambers on the same page, regarding the automatic defense cuts under sequestration.
Update: The House has passed the reconciliation and replacement bills by a 218-199 vote.
Recently, both the House and Senate proposed cuts to the Department of Agriculture. Though the proposals are fairly similar in magnitude, they achieve their savings in very different ways. With the 2008 Farm Bill expiring in September, it will be interesting to see how these bills will shape the final outcome for that legislation.