Masonry Magazine October 1989 Page. 33
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CONGRESS IS BUCKLING DOWN TO WIND UP this year's unfinished business. So far, the legislators have accomplished little in the first seven months. The session has been filled with partisan turmoil and several distractions. Yet a formidable agenda of important legislation still looms ahead. Social welfare, environment and foreign policy issues must be settled. And there are some critical economic decisions, including some major taxation issues. In the end, the 101st Congress may well be able to point to accomplishments.
Congressional leaders concede that the record is uninspiring so far. The legislators have been forced to clean up several embarrassing situations. The fight over John Tower's Cabinet nomination occupied the Senate, nearly sabotaging the spirit of cooperation between the President and Congress. Meanwhile, the House drifted for months over Speaker Wright's troubles.
Congress gets credit for rescuing and reforming the savings and loans. But compared to the last one's record-on trade, welfare reform and civil rights-the 101st Congress seems to have expended most of its energies tinkering and bickering.
WHAT'S MORE, TENSIONS APPEAR TO BE GROWING between Bush and Congress. Democratic leaders have growing doubts that the President wants cooperation, saying he would rather dump problems on Congress after stating his concerns. And the President is grumbling that Congress isn't acting on his proposals. Much of the problem is an absence of money to pay for some popular programs.
The problem is to end the political deadlock over the budget deficit. If Bush agrees to a tax increase, the money will be there for key proposals. If not, it's hard to see progress.
MANY REMAINING MEASURES CARRY A POTENTIALLY BIG IMPACT for business. Bush sent Congress a clean-air bill that puts most of the cost on industry. The proposal is controversial and could be expensive for the private sector which has been trying with some success to soften certain key provisions.
Polls show that the voters strongly favor cleaning up the air. So a compromise overhaul of the Clean Air Act could well pass.
REVENUE CONCERNS ARE A DRIVING FORCE behind a capital-gains tax cut. A reduction in this tax would result in additional money to the government because it would encourage the sale of assets that otherwise would be held. But the President wants to cut the tax to 15% from today's top rate of 33%. Democratic leaders in the House, though, have come out in strong opposition, claiming that such a reduction would favor wealthy taxpayers over the poor.
But there are several compromise proposals floating around on Capitol Hill. One would cut the rate to 19.6% over a 24%-year period. Then, it would rise to 28%. All gains stemming from inflation would be exempt. The idea has some key supporters.
THE HOUSE WAYS AND MEANS CHAIRMAN LEANS TOWARD a different proposal. Rep. Rostenkowski would ease the burden on gains attributable to inflation. Special tax breaks would be offered on assets held for 5 years and 10 years. His plan would reduce the rate to 14% for some venture-capital investments.
A TAX MEASURE TO CURB CORPORATE TAKEOVERS MAY BE A SLEEPER this year. Senate Finance Committee Chairman Lloyd Bentsen is sponsoring a new measure that would limit tax advantages of mergers and defenses against takeovers. Ordinarily, the mere introduction of a bill says little about its chances. But many leaders in Congress are increasingly troubled by corporate raiding.
The bill would keep merging firms from using "loss carrybacks" by which a company borrowing to buy another uses high interest deductions incurred to offset its earnings. The measure would require companies to deduct any losses against future profits.
THE OUTLOOK REMAINS UNCERTAIN FOR A NUMBER OF SOCIAL-WELFARE bills, but there's a chance that Congress will vote increases in aid to the poor. The list covers more tax credits and benefits for work with poor children, a child-care program, Medicaid for pregnant women and a minimum-wage hike.
Bush favors most of these proposals, to a greater or lesser extent. Democrats want larger increases than the President.
A CIVIL-RIGHTS BILL WILL BE ENACTED IN 1989-with little controversy. It will protect the disabled as comparable laws do for minorities and women. Though some especially small businesses worry about its economic impact, the proposal has bipartisan support and the strong backing of the President. The measure bans discrimination against the mentally or physically impaired. All but very small employers would have to make "reasonable accommodations" to the limitations of the disabled in hiring practices and work conditions.
New and renovated buildings, buses, trains and public stations would be required to provide easy access for disabled people.
CONGRESS MAY STILL TACKLE SO-CALLED "ETHICS ISSUES" at this session, but so far there has been much more talk about the problem than any action. Underlying issues of salaries, honoraria for speeches, the re-