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New Momentum For 9/11 Health Bill

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Freedom Isn't Free

One objection the Rethuglicans have to the James Zadroga 9/11 Health and Compensation Act is of funding. Faux deficit hawks like Tom Coburn want the costs of the bill to be paid for by reducing a social service, or gutting EPA, or something along those lines. Senators Gillibrand and Schumer proposed instead:

Summary of New Offsets for 9-11 Health Care Act (HR 847) In the substitute amendment planned for HR 847, three offsets will replace the House-passed bill’s “treaty swapping” provision. The offsets, described below, contain no new taxes or fees on the American taxpayers or American businesses. Furthermore, the substitute amendment is estimated to reduce the deficit by $57 million over 10 years.

1. Savings Generated by Reducing Future U.S. Government Procurement Payments by 2 Percent to Companies Located in non-GPA countries ($4.59 billion over 10 years) Every year, the United States spends between $35 billion to $40 billion per year on procurement of goods and services from foreign manufacturers and companies located abroad in countries that are not members of the Agreement on Government Procurement (GPA) instead of from American companies.

The 9/11 rescue worker bill would impose a 2 percent excise fee on foreign manufacturers/companies located in non-GPA countries receiving government disbursements made pursuant to future procurement agreements. This proposal would both legally and practically operate to prohibit companies from raising their prices to offset the new fee. Imposing this new fee will create short-term and long-term savings. In the short term, savings will materialize from competitive foreign contracts as companies offering substitute products and substitute processes will agree to digest all or some portion of the 2 percent fee decrease to attract/maintain lucrative U.S. procurement business. In the long term, foreign countries will be incentivized to sign the GPA and the U.S. will be incentivized to look to domestic sources to fill procurement needs.

Even though the cost of procurement to the U.S. Government might initially increase when we purchase U.S. goods and services, net revenues to the government will increase when U.S. employees and U.S. companies pay taxes on the procurement contracts they receive (as opposed to foreign companies and employees receiving these contracts who pay less/no taxes).

2. Continuation of H-1B and L-1 Visa Fee for Outsourcing Companies ($800 million over 10 years) As part of the Emergency Border Security Appropriations Act of 2010, which passed the Senate unanimously in August 2010, fees were raised on H-1B and L-1 visas for companies who have more than 50 percent of their employees on these visas (this affects outsourcing companies such as: Wipro, Tata, Infosys, Satyam—but does not affect American companies such as: Microsoft, Oracle, Intel, Apple, etc). This fee was set to expire on September 30, 2014. This bill will extend this fee until September 30, 2021 to continue leveling the playing field between companies that follow the Congressional intent behind these visa programs and companies that use these visas to outsource American jobs.

3. Continuation of Travel Promotion Fee ($1 billion over 10 years) The Travel Promotion Act, which passed the Senate 78-18 in 2010, placed a small travel promotion act fee on certain travelers to the United States that was set to expire in 2015. This fee will simply be extended until 2021 and sunsets at that point.

(click to continue reading Gillibrand, Schumer: New Momentum For 9/11 Health Bill | WKBW News 7: News, Sports, Weather | Buffalo, NY | Local.)

Senator Coburn (R-Lunatic) is having none of that:

Oklahoma Republican Sen. Tom Coburn will not allow a proposal that would cover health-care costs for Ground Zero workers to go through the Senate before Christmas, a Coburn aide told Washington Wire this morning.

Mr. Coburn wants the package to be funded through spending cuts, the aide said. He and others in his party have questioned whether the money would overlap with workers’ compensation and other aid provided to Sept. 11 first responders. Mr. Coburn told Politico he wants the measure to work its way through committee rather than being fast-tracked, which would make it tough for senators to finish their work in the next few days.

Written by Seth Anderson

December 21st, 2010 at 12:47 pm

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