NU Online News Service, Dec. 9, 2:33 p.m. EST
Legislation that packages the House version of a five-year National Flood Insurance Program extension into a deal that would extend expiring tax cuts is headed for House floor action and likely approval.
The deal would essentially include an NFIP extension in House Republicans' demands for budget cuts in exchange for their support on extending expiring tax cuts.
However, because of provisions other than the NFIP reauthorization, the White House issued a veto threat, and Senate Majority leader Harry Reid, D-Nev., said it would not win Senate approval.The House Republicans want prompt passage of the legislation as part of the "pay-fors" they are demanding. They calculate that passage of the NFIP reauthorization bill would reduce the deficit by $4.5 billion over 10 years.
Industry officials privately confirm that passage of the NFIP-extension bill is being held up while talks continue.
However, one industry lobbyist questions the math involved in saying passing the NFIP reauthorization would save $4.5 billion over 10 years when the program currently owes the Treasury almost $18 billion due to losses created by paying claims from Hurricanes Katrina and Rita in 2005.
Tax cuts that would gain House Republican support in exchange for cuts include reducing an employee's share of the Social Security payroll tax by 2 percentage points, to 4.2 percent of wages. This tax cut was passed last December. If Congress does nothing, the rate will revert to 6.2 percent in January.
Other parts of the tax package including an extension of jobless benefits for the long-term unemployed and sparing doctors from a 27 percent increase in their Medicare payments.
The current reauthorization of the NFIP runs out Dec. 16. The Senate Wednesday night passed S. 1958, a stand-alone measure that would extend the current NFIP program until May 31, 2012, while talks continue between the House and Senate on legislation reauthorizing the NFIP until 2016.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
