• The Filibuster Fight Fuses into Compromise
• Bill to Allow Banks to Pay Interest on Business Checking Sails Through the House
• TaxTalk Expert to Testify on Capitol Hill

The Filibuster Fight Fuses into Compromise

Ben Nelson Seven Republicans and seven Democrats united on Monday evening to stop a controversial vote to ban judicial nominee filibusters. With the deadline approaching for a vote on the “nuclear option,” the bipartisan negotiators produced a two-page memorandum laying out a compromise that would involve preventing filibusters except under “extraordinary circumstances” and would defeat any effort to ban filibusters completely during the 109th Congress. Leading the negotiations were Senators John McCain (R-AZ) and Ben Nelson (D-NE) with support from veteran Senators John Warner (R-VA) and Robert Byrd (D-WV). This negotiation effort was seen as the last hope for compromise since talks between the Republican and Democratic leadership fell apart last week. The debate over the judicial filibuster has been of critical importance to the 109th Congress and has dominated the Senate agenda for weeks. It has become a particularly important battle for both sides since there will most likely be a U.S. Supreme Court nomination during this Congress. Some senators hope that this compromise will send a message to the White House that the Bush Administration needs to consult with Congress more on its nominations. “We’re going to start talking about who would be a good judge and who wouldn’t,” said negotiator Lindsey Graham (R-SC). “And the White House is going to get more involved and they are going to listen to us more.” John McCain

Bill to Allow Banks to Pay Interest on Business Checking Sails Through the House

The Business Checking Freedom Act of 2005, a bill that would allow banks and thrifts to pay interest on business checking accounts, passed in the House of Representatives this week 424-1. H.R. 1224 was introduced by Representative Sue Kelly (R-NY) and cosponsored by House Small Business Committee Chair Donald Manzullo (R-IL) and Ranking Member Nydia Velázquez (D-NY). While similar legislation has been passed in the House in previous Congressional sessions, it is unlikely the bill will pass in its current form through the Senate. Instead, it will probably be included in a banking regulatory relief bill, according to a spokesman for Senate Banking Committee Chairman Richard Shelby (R-AL). The bill would help small banks who have been disadvantaged in the past by the current banking regulations. Larger banks could implement “sweep” accounts where money would be transferred between companies’ non-interest checking accounts and interest-bearing accounts, something smaller banks could not afford. Additionally these sweep accounts usually require large minimum balances and extensive paperwork, which small businesses had difficulty using. Advocates claim that smaller banking institutions would be able to compete for more business accounts and that more businesses would be able to gain interest on monies in checking accounts. The NASE will continue to follow the status of the Business Checking Freedom Act of 2005. For more information on the bill, visit http://thomas.loc.gov/ and search H.R. 1224.

TaxTalk Expert to Testify on Capitol Hill

NASE TaxTalk expert, Keith Hall, will testify to the House Subcommittee on Regulatory Affairs this week during a hearing titled “Less is More: The Increasing Burden of Taxpayer Paperwork.” Hall will convey the tax needs of micro-businesses in testimony and will take questions from the legislators. Also scheduled to testify are Mark Everson, the IRS commissioner and Larry Gray of the National Association of Tax Preparers. This is the third time the NASE has testified before Congress this year.