2006 u.s. mid-term elections outlook for the next congress november 9, 2006
TRANSCRIPT
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2006 U.S. Mid-Term Elections
Outlook for the Next Congress2006 U.S. Mid-Term Elections
Outlook for the Next Congress
November 9, 2006
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Congressional Overview
• Make-up of the new Congress
• Leadership, Key Chairmen
• How the Congress will function
• Gridlock? Working majority? Role of the Blue Dog Democrats and Mainstreet Republicans
• How will the majority govern? What’s the general agenda?
• How lobbying reform will impact advocacy
• Senate lack of “power sharing”
• How the Administration will function in this environment
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• New Atmosphere – aggressive oversight
• Likely Topics – Support agenda on Health Care, Energy and Antitrust, Government Contracts (especially Iraq), Corporate Governance
• Typical Scenario – Media Coverage, Congressional Hearing, Agency Investigation, Possible DOJ Referral
Congressional Investigations
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Congressional Investigations
Pitfalls for Corporations and Individuals
• Reputational Damage – can happen early
• Little time for internal investigation/fact finding
• Dealing with Congress vastly different from Courtroom
• Executives on the hot seat – beware perjury trap
• Need to cover all the bases –Democrat / Republican andConservative / Moderate / Liberal
• A Cover-up Hurts the Most
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• New Ratios, Chairman, and Members of Tax Writing Committees
• Tax Dynamic for ’07
• “Pay Go” means tax increases on some to “pay for” cutting taxes on lower and middle class
• Intensive examinations of executive compensation and option “backdating”
• Revenue Raisers focused on loopholes, the tax gap, oil companies, accounting methods, and companies doing business overseas
• AMT reform a pressing issue
Taxes and Executive Compensation
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Health Care
• New Leadership of Health Care Committees
• Aggressive Agenda with Emphasis on Savings
• Repeal Medicare Part D prohibition of government price negotiation with pharmaceutical companies
• Prescription drug re-importation
• PDUFA Reauthorization
• FDA approval process and drug safety
• Oversight of Medicare Advantage program
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Health Care
• Aggressive Agenda with Emphasis on Savings (continued)
• Examination of brand pharmaceuticals pricing and Hatch-Waxman
• Oversight of non-profit hospitals
• Federal funding for embryonic stem-cell research
• Not on the Agenda
• Medical malpractice liability reform
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Financial Services
• New chairs and ranking members
• Jurisdictional tug-of-war between House Banking and Energy and Commerce?
• Agenda to be dominated by oversight and populist issues:
• Mortgage products
• Role of financial sector in preventing terrorism
• GSE Reform
• Capital market regulation
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Financial Services
• Agenda to be dominated by oversight and populist issues (continued)
• Executive compensation – stock options
• Consumer data protection
• No likely progress on industry-specific measures, including
• Insurance regulation
• Terrorism insurance
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Other Key Issues
• Iraq – Bi-partisan exit strategy; House leadership summit; Baker-Hamilton report; oversight of contracting and execution of the war
• Energy – Renewed focus on global warming; examination of royalties on production from federal lands; competitiveness of U.S. electricity industry; renewable energy sources; effects of speculative energy trading
• Immigration – Renewed push for comprehensive immigration reform; expansion in business visas
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Other Key Issues
• Legal Reform – Affirmative efforts unlikely; defensive posture on class action reform, securities litigation, and bankruptcy
• Trade – Expiration of trade promotion authority in June 2007; potential for bi-partisan/bi-cameral legislation to address currency issues with China
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Mickey Kantor – [email protected]
Andrew Shore – [email protected]
David McIntosh – [email protected]
James Jochum – [email protected]
Robert Glennon – [email protected]
Carolyn Osolinik – [email protected]
Peter Scher – [email protected]
David Bloom – [email protected]
Allen Erenbaum – [email protected]
Tom Delaney – [email protected]
Contact Information