The Congressional Budget Office (CBO) this week revealed its estimate on the price tag of the Senate health care reform legislation authored by Sen. Kennedy (D-MA), stating that the legislation would cost approximately 1.5 to 1.6 trillion over 10 years. This estimate is incomplete as the bill's provisions on two highly controversial items-a public plan or government-run option and an employer mandate to provide health insurance to workers-have yet to be determined. Even so, the initial cost estimate quickly caused condemnation from Senate Republicans and sent Democrats back to the table to seek ways to trim costs from their signature proposal. In addition to the cost estimate, CBO also indicated that the Kennedy plan could cause up to 15 million workers to leave employer-sponsored health insurance, which causes concern over the risk pools that might be left in an employer-sponsored (or mandated) health coverage structure.

The estimate also drew a variety of "revenue raiser" ideas that would address the major question of how to "pay for" the Kennedy bill or similar legislation. Among ideas discussed by Senators-and in a document circulated this week by House Ways & Means Democrats-are: ending the current tax exclusion on employer-provided health benefits, raising the payroll tax on employers and employees that funds Medicare, "sin" taxes on items like alcohol or sugar sodas and drinks, charging a surtax on individuals earning more than $200,000 and households earning more than $250,000, and more. None of these options have been decided; all are in the discussion phase. However, it is evident that the cost of potential health care reform will, in fact, be funded in part by tax increases. On another note, the CBO also offered an estimate of savings that are to be incurred from major stakeholders in the health care economy, such as hospitals, pharmaceutical companies, private insurers, and others, following a major White House announcement that wringing more efficiency from the system would help pay for a reform effort. The CBO found that most savings would not occur or that the proposed savings plans put forth by the stakeholders were too incomplete to analyze.

Wednesday, House Democratic leaders introduced pay-as-you-go legislation requiring that new tax and mandatory spending legislation that adds to the deficit must be offset. However, several tax provisions which Congress historically has failed to offset, such as: middle class tax cuts, the estate tax, patching the alternative middle class tax, and providing higher Medicare payments to physicians, would be exempt under this legislation. Introduction of the bill, which has 155 co-sponsors, follows a recent call by President Obama for Congress to restore pay-go spending constraints. Pay-go rules have been historically important and a leading issue for the Blue Dog Coalition, which is fully supportive of the legislation. While there is not a companion bill in the Senate, the upper chamber remains more skeptical of statutory pay-go.  

The ongoing difference of opinion between key House Democratic Committee Chairmen continued this week, with conflicting reports of how far apart the two might be. Chairman Waxman (D-CA), who chairs the House Energy & Commerce Committee, and Chairman Peterson (D-MN), who chairs the House Agriculture Committee, continued talks this week that included the Secretary of Agriculture and other Administration officials in order to reach a compromise that would allow comprehensive climate change legislation and a cap and trade structure to move forward. Meanwhile, Chairman Rangel (D-NY) continued to play little to no role in the effort as the House Ways & Means Committee he chairs focuses on its jurisdiction over health care reform. For those concerned with the issue of cap and trade, including Printing Industries of America and allied paper products associations, the slowed momentum of this legislation is welcomed as it provides more time to further educate Congress against the cost and productivity hits printers are estimated to take should a cap and trade structure be implemented. On the Senate side, no focused cap and trade legislation has moved to date.

Continued confusion in the marketplace exists over the amended Lacey Act, a 100-year-old law regulated by the USDA that governs illegal imports of wildlife. In 2008, the Act was amended to include plant species and products made from certain plant species, including paper. The underlying law makes it illegal to "knowingly" import or purchase illegally imported products, and the amendment includes a requirement that importers of products issue a declaration verifying descriptions of such products. As with the CPSIA, the implementation of the Lacey Act as amended is slow-going, complex, and somewhat confusing. The American Forest & Paper Association, as the lead advocate for forestry products and issues involving illegal logging, continues to work in concert with environmental groups and NGOs (non-governmental organizations) to urge more clarity from the USDA. The FAQs sheet on the Lacey Act posted online is intended to provide more specific information on this law.

Printing Industries of America has weighed in on the potential nomination by President Obama of a Public Printer to lead the Government Printing Office (GPO). Printing Industries is supportive of the current leadership of Public Printer Robert C. Tapella, but acknowledges that the Public Printer serves at the pleasure of the President and the White House may seek to nominate a different leader for the agency. In a letter to the Obama Administration, Printing Industries noted the "significant and rapid technological evolution that impacts the delivery and use of print in both the private and public sectors" as well as the positive steps taken at the GPO in recent years. Printing Industries encouraged President Obama to nominate an individual who committed to "further modernization and efficiency" and to do so expeditiously as to "ensure a successful future for the GPO."

Sen. Ensign (R-NV) this week stepped down from the fourth highest ranking Senate GOP Leadership post following an admission of an extramarital affair setting off a shuffle for key leadership posts within the conference. All indications point to Sen. Thune (R-SD) ascending from his current leadership position to fill the position vacated by Ensign. At this time, no other Senator has announced a bid for the vacant leadership position. Thune's seat will create another available leadership post; Sens. Murkowski (R-AK) and Burr (R-NC) are rumored candidates to fill that spot. Ensign does not plan to resign his Senate seat.

Rep. Kline (R-MN) was elected by the House GOP Steering Committee this week as the new Ranking Member of the House Education and Labor Committee, filling a position vacated by Rep. McKeon (R-CA) who replaces Secretary of the Army nominee Rep. McHugh (R-NY) as the Ranking Member of the House Armed Services Committee. Kline, a former Marine and a 110^th Congress Ben Franklin Friend of Print award recipient, previously chaired the subcommittee responsible for overseeing OSHA, health care, and other workforce issues. Kline will have the job of serving as the lead GOP spokesperson going toe to toe with Chairman Miller (D-CA), an aggressive lawmaker who champions many of organized labor's top priorities. Kline and Miller are diametrically opposed to the Employee Free Choice Act, which is considered the most controversial, high-profile bill emanating from the committee this Congress.