House Votes to Help Struggling Homeowners

On October 4, the House voted 386 to 27 to adopt the Mortgage Forgiveness Debt Relief Act [H.R. 3648].  The legislation ends the tax on phantom income when a lender forgives some part of a family’s mortgage in foreclosure.  Under current law, the tax code treats forgiveness of mortgage debt like income, and requires that tax be paid on that income.  In the case of a foreclosure, an individual would owe income tax on the difference between the outstanding principal on their mortgage and the amount their lender gets for selling their house.  H.R. 3648 would end this unfair tax.

The legislation also contained a provision authored by Rep. Levin to extend the tax deduction for mortgage insurance premiums for seven years (through 2014).  “Mortgage insurance allows aspiring homeowners to take out safe, stable mortgages with lower down payments and provide an attractive alternative to so-called ‘piggyback’ loans,” said Rep. Levin, “It levels the playing field among different mortgage options.  Making mortgage insurance more affordable will help millions of families afford the American Dream of homeownership.” 

To view Congressman Levin speaking on the House Floor in support of the Mortgage Forgiveness Debt Relief Act of 2007 click here.  

For more information on H.R. 3648, click here.

President Vetoes Child Health Bill, Congress to Attempt Override

On October 3, President Bush vetoed the Children’s Health Insurance Program (CHIP) Reauthorization [H.R. 976] which seeks to provide health care coverage to more than 10 million low-income children.  Leaders in Congress pledged to attempt to override the veto, but it will be an up-hill fight in the House.  The vote is expected to occur on October 18.

Under the Constitution, two-thirds of both the House of Representatives and the U.S. Senate must vote to override in order for the bill to become law over the President’s objection.  There appears to be enough support for the bill in the Senate, but although a broad and bipartisan majority of House members voted for the SCHIP bill on September 25, nearly two dozen House lawmakers would have to change their votes in order for the veto override to succeed.

To view the House vote on the September 25 vote in the House on the CHIP bill, click here.

Millions of Dollars Wasted on Improper Government Travel

The Government Accountability Office (GAO) recently reported that at least $146 million was spent on improper first and business class travel over a one year period.  GAO is Congress’ non-partisan watchdog agency.

According to the report, the worst offenders were the U.S. Department of Agriculture, the Pentagon, and the State Department.

The report read, in part:  “Premium class tickets are costly – for example, a Department of Agriculture (USDA) executive flew business class from Washington, D.C., to Zurich, Switzerland, at a cost of $7500 compared to $900 for a coach class ticket.  Based on statistical sampling, GAO estimated that 67 percent of premium class travel was not properly authorized, justified, or both.”

To view the full GAO report, click here.

Lawmakers Focus on Misconduct of Private Security Contractors in Iraq

On October 4, the House overwhelmingly approved legislation [H.R. 2740] to ensure that all private security contractors working in war zones will be held accountable for any criminal behavior.  The measure, which was approved on a vote of 389 to 30, closes a loophole in current law that has resulted in a situation in which thousands of private contractors are working for the U.S. government but not subject to U.S. court jurisdiction.

This issue reached a boiling point on September 16, when private security guards employed by Blackwater USA were involved in a shooting incident in which at least eight Iraqi civilians were killed and many others injured.  A recent report by the House Committee on Oversight and Government Reform revealed that Blackwater employees have been involved in nearly 200 shooting incidents since early 2005. 

To view the full Committee report, click here.

H.R. 2740 gives U.S. federal courts jurisdiction over the actions by contractors working for any U.S. government agency in areas of foreign countries where U.S. military forces are conducting combat operations.

The Week Ahead

This week the House is expected to consider the National Affordable Housing Trust Fund Act [H.R. 2895]; the Tax Collection Responsibility Act [H.R. 3056], and the Federal Railroad Safety Improvement Act [H.R. 2095].  The House is also expected to consider legislation [H.R. 400] to crack down on contractor fraud, which has been a major problem in Iraq.

(####)

Home Page  |  Congressional Connector