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Big Workload Left for Next Congress
by Senator Kay Bailey Hutchison
Published in the San Antonio Express News October 28, 2008
Thomas Jefferson once said, “Never put off till tomorrow what you can do today.” Unfortunately, in the U.S. Congress, the business of the day is too often left unfinished. Throughout 2008, progress in the Senate was hindered by partisanship and counterproductive procedural moves to stall legislation. As a result, during the brief working session this fall, the Senate had a lengthy to-do list. While we were able to successfully complete business on a few important measures, much remains for us to address in the next Congress.
Throughout this Congress I pushed for passage of a broad tax relief bill that extends energy tax credits, patches the faulty alternative minimum tax (AMT), and renews expiring tax provisions for businesses and individuals. We finally passed this measure in the closing hours before recess. It includes a two-year extension of the state and local sales tax deduction, which will save the average Texan $520 in tax deductions when filing his or her 2008 income taxes. The bill also reauthorized the Secure Rural Schools program, which is particularly important to many East Texas communities. This program ensures schools have additional funding by supporting counties with a higher proportion of federally owned land, which limits tax revenue. Finally, to aid with recovery efforts in the 29 Texas counties hit by Hurricane Ike, the bill provides $600 million in targeted tax benefits to help communities rebuild their low income housing infrastructure.
Another key accomplishment was replenishing the federal Highway Trust Fund, which is the largest single source of funding for roads nationwide. Nearly $8 billion in gas tax revenue had been transferred out of the trust fund to support various emergencies over previous years, leaving a shortfall for current projects and ongoing maintenance. To ensure our roads are safe, Congress replenished the trust fund. However, this stop gap measure does not address the long-term solvency of the fund and the underlying reality that incoming gas tax revenues aren’t keeping up with trust fund obligations. Congress must resist raiding this fund in the future and instead ensure safeguards are included in next year’s Highway Reauthorization bill.
The Federal Aviation Administration (FAA) Reauthorization bill must also be a top priority next year. As Ranking Member on the Aviation Subcommittee, I fought efforts to weigh down good legislation with unrelated tax provisions. Ultimately, we were successful in passing a clean FAA extension through March without new taxes. The next Congress must adequately address the mounting challenges facing the commercial airline industry by passing a new FAA bill that will improve safety and passenger protections, while implementing air traffic modernization in manner that is fair to the entire aviation sector.
Finally, this fall, our financial crisis reached a flashpoint that threatened the sustainability of our credit markets and the economic security of every American family and business. We were originally presented with a deeply flawed proposal that extended broad authority for the Treasury Secretary to buy troubled financial instruments with no oversight, few taxpayer protections, and no potential upside for taxpayers if there is a profit made on the resale of bad loans. After two weeks of bipartisan, bicameral negotiations, Congress passed a rescue package to stabilize our imperiled economy. Though far from perfect, the final legislation contained significant taxpayer protections and oversight. Many opposed the rescue, but I heard from many small business owners and families that they were unable to get credit for payroll and inventory purchases. Credit dried up. Action had to be taken and even with that it will take months to completely recover.
As Texans, we have learned to take responsibility for our actions and being asked to pay for the mistakes of others is something many, including myself, find deeply troubling. Government officials encouraged lenient lending practices in the mortgage industry and some borrowers made imprudent decisions. Many lawmakers resisted calls to reform Fannie Mae and Freddie Mac before it was too late. Congress must now make the massive overhaul of our banking regulatory system a top priority so our country is never put in this precarious spot again.
When the 111th Congress convenes in January, it should be the shared challenge of lawmakers – new and old – to craft, negotiate, and pass laws in a productive way. We must break the cycle of short-term “fixes” that don’t solve long-term problems.
Kay Bailey Hutchison is the senior Senator from Texas.
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