Jim Brandenburg, CPA, MST, Shareholder - Tax email | bio June 2009
Politics is often described in terms of a battle, and this year is no exception. In military operations, it is necessary that officers know the “rules of engagement” (e.g. whether they can fire first, weapons to use, etc.). Troops must follow these rules as they carry out their missions.
Political battles also involve, in a way, their own rules of engagement. All legislation must run a gauntlet of attacks. Supporters and opponents of a bill have various weapons at their disposal. A common defensive tactic in recent years has been the deployment of the Senate filibuster, which is used to delay legislation and requires 60 votes to break, not a 51 vote majority.
An offensive weapon to counter the filibuster is budget “reconciliation.” Reconciliation defines the legislative rules for votes later in the year on certain spending and tax bills. Any bill protected by the reconciliation shield is not subject to a filibuster, but it must be revenue neutral. Any bill outside of reconciliation can be attacked.
The armor of reconciliation was greatly expanded this year. For instance, the recently passed budget reconciliation includes an overhaul of our nation’s health care system. The details and costs to fully pay for this overhaul will see many attacks, but the rules of engagement prevent a filibuster—only majority votes are needed in the House and Senate.
As political battles flare up this year, it is vital to learn whether a certain bill has reconciliation protection. This determination will spell out the rules of engagement for all politicians involved.
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