CARE Act Stalled Again - November 3, 2003 Vol. 4 No. 22

November 3, 2003 Vol. 4 No. 22:

Published: 11/03/2003

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CARE Act Stalled Again

Senate Democrats are objecting to their exclusion from conference-committee meetings on a number of bills by refusing to add the child tax credit and extension of several tax provisions to the CARE Act. Late last week, Sen. Rick Santorum (R-PA), a sponsor of the CARE Act, told a meeting of nonprofits that Democrats are playing politics with the bill, but Minority Leader Tom Daschle (D-SD) told BNA, “We can’t agree to participate in conferences that lock us out.”

Earlier, the CARE Act was held up because Sen. Tom Harkin (D-IA) had concerns that one of the expiring tax provisions (Section 420 of the tax code) could weaken the viability of pension funds. The Republicans agreed to changes that resolved that issue, but beside the clash over conference committee procedures, there are still major questions to be answered to reconcile the Senate and House versions.

This includes how to make up for the revenue loss from charitable giving incentives, how to fund the Social Services Block Grant program, and the appropriateness of fees for foundation trustees. If the impasse continues, the CARE Act could remain on the table until next year, or be included in an omnibus tax bill at the end of the year.