THIS WEEK IN A NUTSHELL

Albany, N.Y.--Lawmakers Return to Albany

New York's Legislature returned to Albany for a special session called by Governor Paterson. They did not act on legislation to cut spending to address a midyear budget gap. However, legislators did pass other legislation including creating a panel to examine judicial pay raises, placing a temporary moratorium on hydraulic fracturing and renaming the Brooklyn Battery Tunnel in honor of former Governor Hugh Carey.

Assembly Speaker Sheldon Silver, Democratic Conference Leader John Sampson and Senate Republican Leader Dean Skelos were all re-elected as leaders of their respective conferences.

Congress Fights Over Tax Cuts

As we have reported previously, tax cuts enacted in 2001 and 2003 are set to expire on December 31. Congress is currently deliberating on whether to extend all of them or only ones for lower and middle income Americans. Extending the tax cuts for the wealthiest Americans will cost $700 billion over the next 10 years.

On Thursday, the House of Representatives passed legislation that preserves the tax cuts for Americans who make under $200,000 (individual) and $250,000 (joint filing). This plan would preserve tax cuts for nearly all Americans while not adding billions of dollars to the federal deficit.

A deal must be reached prior to Congress adjourning for the year or tax rates will revert back to where they were before 2001.  This just in as of 12.04.10 @ 1:30 pm, GOP Senate votes to refuse tax break to the middle class, stay tuned for a follow-up report. 

Commission Votes Down Final Report

The National Commission on Fiscal Responsibility and Reform, the commission created by President Obama to help lower the federal deficit, issued their initial report. The plan included capping federal spending, cutting $200 billion in federal spending, and increasing the Social Security retirement age to 69 by 2075.

The plan, which required 14 votes by the Commission in order to be formally recommended to Congress, did not pass. Only 11 members of the Commission voted in favor of it.

President Obama Imposes Wage Freeze

President Barack Obama has imposed a two-year freeze on salaries of federal workers. This action is harmful to working families and sets a bad precedent that many governors and leaders throughout the country may follow.