Post by RPankn on Mar 1, 2005 5:10:36 GMT -5
[From the neocon Financial Times:]
By Holly Yeager in Washington
Published: February 27 2005 19:38 | Last updated: February 27 2005 21:37
Bill Frist, the Senate majority leader, appeared before the US Chamber of Commerce this month, boasting of the actions made possible by the Republicans' strengthened majority.
Celebrating the passing of a bill to limit class-action lawsuits, he told the business group: "We can deliver on issues that in the last Congress were tough."
On Monday, Mr Frist is hoping to deliver on another, as the Senate begins debate on bankruptcy legislation that has vexed Congress for years.
The measure, first considered in 1997, would make it more difficult for consumers to wipe out their debt by declaring bankruptcy. "Instead of falling back on bankruptcy as an option of last resort, more Americans misuse it as a financial tool to wipe away their debts altogether," says Chuck Grassley, author of the bill. [What an ass.]
The measure is backed by the credit card industry, but criticised by consumer advocates. They say proponents have exaggerated the abuses of the system, and that the proposed changes would make it harder for some people who are trying to repay their debts to succeed.
With the four seats Republicans gained in the Senate in November, momentum is on the bill's side, but its fate is far from certain.
"This bill has a habit of getting bogged down on issues that often seem minimal or irrelevant," says Travis Plunkett, legislative director at the Consumer Federation of America, which opposes the measure.
One potential hurdle is an amendment that Charles Schumer, a Democrat from New York, plans to offer. It would prohibit individuals from filing for bankruptcy protection to avoid paying fines for illegal protests at abortion clinics.
James Sensenbrenner, chairman of the House Judiciary committee, calls the amendment a "poison pill", but predicts that, without it, the House would quickly approve the measure and send it to President George W. Bush for another early second-term accomplishment.
In each of the past two years, the House passed a bankruptcy bill only to see the Senate fail to act because Republicans leaders feared they did not have the votes to block Mr Schumer's provision.
This year, though, with 55 Republican seats and signs that some who supported Mr Schumer in the past may be backing away, Mr Frist is going ahead with the vote.
Mr Schumer has vowed to do all he can to protect the amendment. "We're still counting the votes," said a spokesman for Mr Schumer.
Debate is expected on several other amendments as well, including a proposal by Edward Kennedy, a chief Democratic opponent, designed to ease treatment of people who face bankruptcy due to illness or serious injury. About a half of US bankruptcies are caused by medical bills, affecting about 2m people a year, according to a report this month from Harvard Medical School.
During the judiciary committee's consideration of the measure, Mr Kennedy offered another addition - adopted by the panel - that increased the power of bankruptcy courts to go after corporate insiders and their severance packages when their companies are in financial distress. He plans to offer additional provisions to go after corporate abuses.
Despite a debate that is expected to be lengthy, the bill's supporters are hopeful that their time has come.
As Thomas Donohue, president and chief executive of the US Chamber of Commerce, told Mr Frist: "We have been working on this since we were children."
news.ft.com/cms/s/1b5919ec-88f4-11d9-b7ed-00000e2511c8.html
By Holly Yeager in Washington
Published: February 27 2005 19:38 | Last updated: February 27 2005 21:37
Bill Frist, the Senate majority leader, appeared before the US Chamber of Commerce this month, boasting of the actions made possible by the Republicans' strengthened majority.
Celebrating the passing of a bill to limit class-action lawsuits, he told the business group: "We can deliver on issues that in the last Congress were tough."
On Monday, Mr Frist is hoping to deliver on another, as the Senate begins debate on bankruptcy legislation that has vexed Congress for years.
The measure, first considered in 1997, would make it more difficult for consumers to wipe out their debt by declaring bankruptcy. "Instead of falling back on bankruptcy as an option of last resort, more Americans misuse it as a financial tool to wipe away their debts altogether," says Chuck Grassley, author of the bill. [What an ass.]
The measure is backed by the credit card industry, but criticised by consumer advocates. They say proponents have exaggerated the abuses of the system, and that the proposed changes would make it harder for some people who are trying to repay their debts to succeed.
With the four seats Republicans gained in the Senate in November, momentum is on the bill's side, but its fate is far from certain.
"This bill has a habit of getting bogged down on issues that often seem minimal or irrelevant," says Travis Plunkett, legislative director at the Consumer Federation of America, which opposes the measure.
One potential hurdle is an amendment that Charles Schumer, a Democrat from New York, plans to offer. It would prohibit individuals from filing for bankruptcy protection to avoid paying fines for illegal protests at abortion clinics.
James Sensenbrenner, chairman of the House Judiciary committee, calls the amendment a "poison pill", but predicts that, without it, the House would quickly approve the measure and send it to President George W. Bush for another early second-term accomplishment.
In each of the past two years, the House passed a bankruptcy bill only to see the Senate fail to act because Republicans leaders feared they did not have the votes to block Mr Schumer's provision.
This year, though, with 55 Republican seats and signs that some who supported Mr Schumer in the past may be backing away, Mr Frist is going ahead with the vote.
Mr Schumer has vowed to do all he can to protect the amendment. "We're still counting the votes," said a spokesman for Mr Schumer.
Debate is expected on several other amendments as well, including a proposal by Edward Kennedy, a chief Democratic opponent, designed to ease treatment of people who face bankruptcy due to illness or serious injury. About a half of US bankruptcies are caused by medical bills, affecting about 2m people a year, according to a report this month from Harvard Medical School.
During the judiciary committee's consideration of the measure, Mr Kennedy offered another addition - adopted by the panel - that increased the power of bankruptcy courts to go after corporate insiders and their severance packages when their companies are in financial distress. He plans to offer additional provisions to go after corporate abuses.
Despite a debate that is expected to be lengthy, the bill's supporters are hopeful that their time has come.
As Thomas Donohue, president and chief executive of the US Chamber of Commerce, told Mr Frist: "We have been working on this since we were children."
news.ft.com/cms/s/1b5919ec-88f4-11d9-b7ed-00000e2511c8.html