Paul Suplizio

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Latest News on Payroll Tax Cut Extension and WOTC Renewal

Wednesday, February 15th, 2012

I thought you might appreciate the following excerpt from a recent email update I received from WOTC Coalition President Paul Suplizio.  Some of this has been reported in the news but Paul’s perspective adds something important.  I am re-publishing this with his permission.

In a statement [Monday], Speaker John Boehner and Majority Leader Eric Cantor said they will no longer require offsets for the $100 billion cost to extend the payroll tax cut to the end of the year, and are preparing a bill that will extend the payroll tax cut separately if the conference reaches no agreement, leaving the conference to continue working on unemployment insurance and Medicare doctors’ payments.

The conference committee is being notified of this new Republican position, which means $100 billion of the total $160 billion cost of the payroll bill would not have to be offset.

The conferees still have time to reach agreement on a total package, but if they don’t the Speaker is free to make the effort to pass a stand-alone bill extending the payroll tax only. This would remove payroll tax as a partisan issue, but the Speaker is likely to need Democratic support because of the roughly ninety Republicans who would not vote to increase the deficit.

Senator Reid is expected to make the extenders part of the bill he has said he will introduce if the conference bogs down. He will have the option to bring it to a vote or attach it to any stand-alone payroll bill that passes the House.

Unemployment compensation and doc fix remain “must do” issues, even if payroll tax is passed separately—thus we continue to work for the tax extenders to be added to HR 3630 in conference.

If $40 billion for tax extenders is added, the total requiring offset would be $100 billion for unemployment insurance, doctors’ fix, and the tax extenders. Democrats are arguing unemployment insurance should not be offset, and a good case can be made for not offsetting the tax extenders.

Comments: The Republican leadership’s concession on not requiring a budget offset to the “cost” of the payroll-tax-cut extension reduces the total amount of offsets needed to pass all of the priority items.  One of those priority items is the tax extenders, which will presumably include WOTC.

What this boils down to is that we are likely to at least see legislation soon with tax extenders attached.  Whether Congress can pass it, of course, is a separate question.  Nothing is certain and the political environment remains volatile.

WOTC Call to Action – New Developments for WOTC and Tax Extenders

Friday, January 27th, 2012

There are new developments in the effort to include WOTC and other tax-extenders in the upcoming payroll tax cut bill. A Senate-House conference is currently negotiating to extend the payroll tax cut, which expires in February.

Paul Suplizio, President of the WOTC Coalition, reports that Ways and Means Chairman Dave Camp is “waving off in advance an expected offer from Senator Baucus” to include tax extenders in the bill. Max Baucus is Chairman of the Senate Finance Committee.

Mr. Suplizio goes on to explain, however, that while Chairman Camp’s statements should be taken seriously they do not halt the current tax-extenders discussion.

The Senate and President Obama both want the tax extenders in the bill. As a result, WOTC and other tax extenders have become a negotiating chip for Chairman Camp and the House Republicans who want to include other important but controversial provision in the bill.

For WOTC supporters, our job now is at least two-fold. (1) We must persuade Senate conferees to INSIST on including WOTC and the other extenders in the bill. And (2) we must persuade House Speaker Boehner that it will be in the House Republicans’ interest to agree on their inclusion.

Paul Suplizio said it well in a recent correspondence to members of the WOTC Coalition.

“We need to drive home to Speaker Boehner that not including the extenders is putting House Republicans on record as favoring a tax increase on businesses, farmers, communities, and workers—a tax increase they don’t need at this stage of the recovery.”

Is your fax machine and telephone working? Time is short. Time to roll.

WOTC – Calm Before the Storm in Congress

Tuesday, January 10th, 2012

Is it the calm before a storm? Congress is on vacation. The Senate is scheduled to reconvene on January 23rd. The House on January 17th.

Before members of Congress left for the holiday in December, they had tumultuously agreed on a 2-month extension of the 2011 payroll tax cut and left many expiring tax items floating into limbo. The Work Opportunity Tax Credit, of course, is counted among these unfinished items.

Although nothing has made significant news yet, the conference that was promised last month by House and Senate leaders is already busy behind the scenes. According to Paul Suplizio, lobbyist and President of the WOTC Coalition, conferees for the Senate and House respectively are in discussion with their own members but not yet with each other. The first meeting between Senate and House conferees will likely take place next week.

The goal of the conference is to hammer out a compromise that will allow Congress to pass a full-year extension of the payroll tax cut, in addition to other high-priority items. They need to do it before the end of February when the 2-month extension expires.

Our goal is to include WOTC and other tax items in that legislation. The conferees, however, face historically difficult and stressful circumstances. WOTC remains in a very precarious situation. If the tax extenders do not make it into the anticipated payroll tax cut bill, it will be difficult to see another vote on these items until after the November election.

During the past 15 years, WOTC has expired and been renewed at least 7 times. Three of these renewals took place well into the next calendar years — as much as 11 months after expiration.

If the program is not renewed in February, business will continue as usual. Employers will continue to screen for all of the WOTC target groups. The State Workforce Agencies, however, will receive instructions to place a hold on WOTC employee certifications — except for those who qualify under the military veteran categories, which have been extended already through December 2012.

Then, as soon as the renewal legislation is passed, the State Workforce Agencies will complete and issue the rest of the outstanding WOTC employee certifications.  We’ve lived through it before. But let’s hope it doesn’t come to that.

My office will be following the lead of the WOTC Coalition by contacting key legislators during the upcoming weeks. I’ll post new information and guidance as it becomes available.

Please feel welcome to contact me personally if you would like to discuss (or simply commiserate). vah@WOTCPlanet.com

WOTC Extension Must Wait Until 2012

Friday, December 23rd, 2011

It’s been all over the news. The U. S. House and Senate agreed to pass a 2-month extension of the 2011 payroll tax reduction. Unfortunately, the tax extenders including WOTC, Research and Development and other important tax incentive programs were not included in this hotly contested legislation.

It is clear, however, that the White House and Senate leadership continue to support tax extenders, which are one of the Senate’s top priorities.

With the agreement to pass the 2-month extension of the payroll tax reduction, Senate and House leaders have also agreed to appoint conferees to hammer out a full 12-month extension. It is in this process that we have our next opportunity to see tax extenders, including WOTC, gain traction for 2012 renewals.

Paul Suplizio, President of the WOTC Coalition, has set the Coalition on course to begin a new campaign on January 2, 2012. The objective, of course, is to persuade House and Senate conference members to include the full-WOTC extension and other tax extenders in the final payroll bill.

Stay tuned . . . it won’t be long.

 

Renewal of WOTC and Payroll Tax Cut Still Possible This Year

Monday, December 19th, 2011

If you’ve been following the news during the past few days, you might be aware that Congressional leaders are sparring over legislation to extend the existing payroll tax cut. Over the weekend, the Senate rejected the House’s proposal and responded with a proposed 2-month extension, obviously intended to buy time for further negotiations.

Neither version of the legislation included WOTC nor other sought after tax-extenders. This is not, however, the end of the game.

The limited 2-month extension is not looked upon favorably by the House Republican leadership, which is demanding a full year.  The House is scheduled to vote on the bill this evening.

According to Bloomberg,

With the House set to return to Washington [Monday], Republican leaders are studying their options, Laena Fallon, a spokeswoman for House Majority Leader Eric Cantor, a Virginia Republican, said in an e-mail.

When the House meets [Monday evening], it will either vote to amend the Senate-passed measure “so that it is responsible and in line with the needs of hard-working taxpayers and middle class families” or vote to appoint representatives to a House-Senate conference to reconcile differences between the two chambers, she said.

Got that? The House will either amend the Senate bill and return it. Or it will vote to appoint a conference with the Senate to negotiate revisions. If the House does call for a conference, the Senate leadership (aka Senator Harry Reid) could accept or reject it. But rejecting it in that case would result in a tax increase on January 1 as the payroll tax reduction expires. Not a pretty political sight.

If a conference is called, Paul Suplizio, President of the WOTC Coalition sees still another opportunity to get WOTC and other tax extenders passed this year.

“If it gets to a conference, Ways and Means Chairman Dave Camp of Michigan would be one of the conferees for the House (he was floor manager for the House bill) and Finance Chairman Max Baucus of Montana a likely conferee for the Senate.”

“Chairman Camp has been the target of much of our lobbying and knows the situation of WOTC and the extenders. Senator Baucus has been a champion for including WOTC and the other extenders in the payroll bill.”

If you have any opportunity to encourage Representative Dave Camp or Senator Max Baucus, now is the time. Senator Harry Reid and his friends in the Whitehouse should also be contacted.  Senator Reid will likely require encouragement from the Whitehouse to include WOTC and other tax extenders in any negotiated resolution to this legislative conflict.

Urgent WOTC Update – Inform Your Republican Senators Now

Tuesday, December 6th, 2011

Our friend Paul Suplizio, President of the WOTC Coalition, issued two urgent updates this morning from Washington DC.  The immediate extension of WOTC and other tax incentive programs faces what amounts to a precarious opportunity.

As the calendar year winds to a close, opportunities to extend the WOTC program are few in number. The good news is Senate Majority Leader Harry Reid has announced his intention that Congress will NOT adjourn until tax extenders are done.  He made this announcement in a news conference after the Senate Democrats’ most recent weekly luncheon.

“There are five things we’ve got to do, the Omnibus (bill to fund the government), payroll tax, unemployment compensation, doc fix, and tax extenders.”

 What to do Right Now:
According to Mr. Suplizio, if the tax extenders are not passed before December 31, there is a strong possibility they won’t be passed until after the elections next fall.  For this, and other reasons:

“It’s imperative we now work to persuade Senate Minority Leader Mitch McConnell to commit to enacting the tax extenders before adjournment. Please concentrate urgently on your Republican senatorial contacts. . . .”

Specifically,

  1. Inform your Republican contacts in the Senate about Majority Leader Harry Reid’s goal to pass tax extenders before adjournment
  2. Urge Senate Republicans to support the tax extenders
  3. Urge them specifically to talk with Senate Minority Leader Mitch McConnell and Republican Whip Senator Jon Kyl about the importance of including tax extenders in whatever bills emerge from their negotiations with Senate Democrats.

 

Urgent WOTC Call to Action – Unique Opportunity Limited to This Morning

Wednesday, November 16th, 2011

I received late arriving news on Tuesday from Paul Suplizio of the WOTC Coalition that Congressman Aaron Schock will be making the case for WOTC renewal at the House Republican luncheon today. The luncheon will be from noon until 1:00 PM (eastern), on Wednesday November 16th.

The immediate goal THIS MORNING is to give other Republican House members an advance notice that Congressman Schock will be speaking on this subject and to ask them to support him.

If you’ve been lobbying a Republican House member in this effort, this morning is a crucial opportunity. Call your member and speak to their Legislative Director, Appointment Secretary or other staff members and give them the information and request.

Here is the message, as suggested by Mr. Suplizio:

“At the House Republican luncheon today, Congressman Aaron Schock will call for action on a bill to extend the work opportunity tax credit and several other important tax provisions. Please get word to Congressman _______________that Congressman Schock will be asking for action on WOTC and several other important provisions of the tax code which will expire on December 31st . Tell Congressman_____________ it will be very helpful if he or she would support Congressman Schock in this matter.”

Please note, the recent VOW to Hire Heroes Act has already passed the Senate and is being shepherded through the House. It is expected to become law and will expand and extend the WOTC program’s military veteran categories. Congressman Schock’s address will be making the case for extending the rest of the WOTC program.

 

Alert! Alert! WOTC on the Budget Chopping Block! Immediate Action Needed!

Tuesday, July 12th, 2011

Paul Suplizio, president of the WOTC Coalition warned coalition members this morning that the Department of Labor has recommended termination of the WOTC program as a contribution toward addressing the federal budget crisis.  Let me save time by quoting Mr. Suplizio directly:

“[President Obama] has been negotiating with congressional Republicans to identify spending cuts to reduce the deficit; those cuts would become part of a bi-partisan agreement to pass a bill to raise the debt ceiling.”

“We’ve now learned the Department of Labor has forwarded to OMB a recommendation to terminate the WOTC program, saving $700 million a year. The President asked each member of the cabinet to identify savings that could be made in their departments, and one of Labor’s answers was to terminate WOTC.”

“We’re not sure at this point whether this “saving” will make it into the final agreement with Republicans which, as everyone knows, is still being negotiated in daily meetings at the White House. There is much talk about agreement on $2 trillion in spending cuts, but as the President has said, ‘There’s no deal until there’s a deal.’”

What does this amount to? There is a POSSIBILITY that the future of the WOTC program will be eliminated by a federal budget compromise made within the next two weeks.

This issue requires your immediate action. If you’ve been following the news, you already know that the stated deadline for a compromise to raise the U.S. debt-ceiling is August 2nd.

In his evaluation this morning, Mr. Suplizio estimates only a 50 – 50 chance of WOTC’s survival if we do not act to preserve it. Quick action, however, considerably increases its chances.

The coalition is organizing grass root efforts in Washington DC at this time. Across the country, however, organizations with a stake in preserving the program should be contacting U.S. legislators from their state TODAY.

Here is a short but hot-list of specific U.S. legislators that should be contacted immediately. Again, this was provided by Paul Suplizio to the WOTC Coalition this morning.  Contact me and I can provide this list to you in a spreadsheet format that can be used for word-processor mail merge.

House Republicans

 John A. Boehner, Speaker of the House, Dayton, OH, fax 202-225-0704

Eric Cantor, Majority Leader, Culpeper, VA, fax 202-225-0011

Kevin McCarthy, Majority Whip, Bakersfield, CA fax 202-225-2908

Jeb Hensarling, Republican Conference Chair, Dallas, TX fax 202-226-4888

Tom Price, Republican Policy Committee Chair, Marietta, GA, fax 202-225-4656

Dave Camp, Chairman, Committee on Ways and Means, Troy, MI, fax 202-225-9679

 

House Democrats

Nancy Pelosi, Minority Leader, San Francisco, CA, fax 202-225-8259

Steny H. Hoyer, Minority Whip, Greenbelt, MD, fax 202-225-4300

James E. Clyburn, Assistant Democratic Leader, Columbia, SC, fax 202-225-2313

John B. Larson, Democratic Caucus Chair, Hartford, CT, fax 202-225-1031

Sander M. Levin, Ranking Minority Member, Committee on Ways and Means, Detroit, MI, fax 202-226-1033

 

Senate Republicans

 Mitch McConnell, Minority Leader, Louisville, KY, fax 202-224-2499

John Kyl, Minority Whip, Phoenix, AZ, fax 202-224-2207

Lamar Alexander, Republican Conference Chair, Nashville, TN, fax 202-228-3398

John Thune, Republican Policy Committee Chair, Rapid City, SD, fax 202-228-5429

Orrin G. Hatch, Ranking Minority Member, Committee on Finance, Salt Lake City, UT, fax 202-224-6331

 

Senate Democrats

 Harry Reid, Majority Leader, Las Vegas, NV, fax 202-224-7327

Richard J. Durbin, Majority Whip, Chicago, IL, 202-228-0400

Charles E. Schumer, Democratic Policy Committee Chair, New York, NY, fax 202-228-3027

Max Baucus, Chairman, Committee on Finance, Helena, MT, fax 202-224-9412

HR 2082 – Bill to Extend and Refine the Work Opportunity Tax Credit Program

Thursday, June 9th, 2011

I received an update from Paul Suplizio, President of the WOTC Coalition today. There is recent progress on the legislative front for an extension of the Work Opportunity Tax Credit.

The WOTC program is currently slated to expire on December 31, 2011. While that might at first seem alarming if your company has been relying on the program to offset hiring costs, its par for the WOTC game. Over the years, Congress has repeatedly allowed the program to expire or nearly expire before renewing it for another term.

Here’s a brief quote from Paul Suplizio’s update this morning.

“Congressmen Aaron Schock (R-IL) and Charles B. Rangel (D-NY) have introduced a bill, H.R. 2082, Work Opportunity Credit Improvements Act, calling for a three-year extension of WOTC till December 31, 2014. Congressman Schock and Congressman Rangel are Ways and Means Committee members and thus able to work for passage within the committee. “

 

“This is the bill WOTC supporters should rally around as Congress takes up tax legislation in the next two critical months. It’s important we get a maximum number of House members to co-sponsor H.R. 2082 before the measure is taken up in Ways and Means.”

The bill not only proposes to extend the WOTC for 3 years, it includes a number of very interesting refinements to the program and adds back the disconnected youth category.

If you have an interest in the WOTC program, you should definitely contact your member of Congress to recommend their sponsorship of this bill.  I plan to contact our legislators next week AND to send a correspondence to every member of the legislature about this issue.

Please feel welcome to contact me if I can help your efforts in any way.  I can offer you a mail-merge ready list of US Legislators that you could use in preparing your correspondence.

Good News! WOTC Program Reauthorization Included in White House’s 2012 Budget

Monday, February 14th, 2011

A delegation from the WOTC Coalition visited the Whitehouse on Friday where they met with Special Assistant to the President Kareem A. Dale and Domestic Policy Council member Lauren Dunn. Their goal was to obtain White House support for reauthorization of the federal Work Opportunity Tax Credit (WOTC) program. The mission was a clear success.

I received a correspondence today from Coalition President Paul Suplizio in which he described their meeting.

“We covered a great deal during the 45-minute meeting, and in many respects the White House staff was responsive to our appeal for a long-term authorization, funds to promote WOTC to more employers, restoration of disconnected youth and veterans target groups, and eligibility for disabled workers who are receiving Social Security Disability Income (SSDI).”

The group also presented a fact sheet titled, “How Can the Work Opportunity Tax Credit be Made More Effective?”

Today, in an email to Paul Suplizio, Mr. Dale confirmed that WOTC reauthorization has been included in President Obama’s 2012 budget proposal. Mr. Dale also said he looks forward to working with WOTC Coalition members on proposals to create more certainty.

The tax code as currently written requires frequent reauthorization of the WOTC program by Congress and the President. This has been a problem that introduces uncertainty and instability for employers attempting to use the programs.

The WOTC program was recently extended through December 31, 2011. Making the program permanent has been a long-term goal of program supporters.