Washington News

Immediately after the November 6 election, members of Congress will meet on Capitol Hill to discuss potential budget and tax solutions.

A "Gang of Eight" Senators have been meeting to prepare a comprehensive proposal. Four Democratic and four Republican Senators representing the whole spectrum of the Senate are diligently seeking a solution. Democratic Senators Richard J. Durbin (D-IL), Michael Bennet (D-CO), Mark Warner (D-VA) and Kent Conrad (D-ND) are joined by Republican colleagues Tom Coburn (R-OK), Mike Crapo (R-ID), Saxby Chambliss (R-GA) and Mike Johanns (R-NE).

If there is no action, the economy could face a sharp downturn. The National Association of Manufacturers published a statement and noted, "The fiscal cliff has forced manufacturers to plan for a future in which business is down and their tax bills are up. Manufacturers have had to put off plans to expand and hire new workers to protect themselves against an increasingly negative business climate - resulting in slowing economic growth and job loss in the manufacturing community."

While the "Gang of Eight" is attempting to pursue solutions, Senate rules create obstacles to proceeding directly to a completed bill. The Senate Budget Committee and Senate Finance Committee have both been holding hearings and it requires several months to follow the normal Senate process.

Both Senate leaders are monitoring the actions, but are not actively participating. Sen. Majority Leader Harry Reid (D-NV) indicated that he will listen to proposals by the group. Minority Leader Mitch McConnell (R-KY) also has indicated he will review proposals from the "Gang of Eight."

Editor's Note: While moving a bill through the Senate will be challenging, the sheer urgency of the economic picture after the elections on November 6 will encourage prompt action. The major negotiations are likely to be between President Barack Obama and Speaker of the House John Boehner (R-OH), with input from Majority Leader Reid and other Congressional leaders. However, the "Gang of Eight" solutions may provide a basis for a compromise budget and tax bill.

Hurricane Sandy Prompts Charitable Giving

The Charitable Giving Coalition is a group of over 40 charities that is encouraging Washington to support philanthropy. Following the devastation of Hurricane Sandy, particularly in New Jersey and New York, the coalition praised the willingness of the American people to support relief efforts in the devastated areas.

Many relief organizations are participating in the effort to restore services after Hurricane Sandy. These include the United Way, the Salvation Army, Catholic Charities, the New York and New Jersey Community Foundations along with hundreds of other relief organizations. Many of these have created "Sandy Relief Funds."

One of the leaders of the Charitable Giving Coalition is Father Larry Snyder. He noted, "America is at its best when it comes together in response to a crisis or to help others in need. There is no better example to demonstrate that can-do, giving spirit than during a national disaster like Hurricane Sandy."

The Charitable Giving Coalition has also responded to proposals by President Obama and Presidential Nominee Mitt Romney to limit itemized deductions. The proposed limits by both the President and candidate Romney could impact charitable deductions.

In the view of the Charitable Giving Coalition, a limitation on deductions "will have a devastating impact on charities and nonprofits."

The coalition is sponsoring "Protect Giving-D.C. Days" on Dec. 4-5, 2012. Leaders of nonprofit organizations from throughout the country will be meeting with Members of Congress on both days to emphasize the importance of supporting charitable giving as the "fiscal cliff" tax and budget solutions are developed.