Masonry Magazine February 1987 Page. 33
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The 100th Congress
The 100th Congress will see a lot more conflict and turmoil than was the case in the not-very-peaceful session of the year just ended. That's the view of veteran political observers on Capitol Hill at this time. The November election results alone suggest many bitter political contests. The Democrats captured the Senate last fall. They now control both houses. They will push their own agenda for the nation, rejecting many Reagan plans.
The President's once enormous influence will be seriously challenged. The uproar over Iranian arms puts him on the defensive, though perhaps temporarily. Still, there will be some progress, despite his possible lame-duck status.
Congress's accomplishments on key issues were substantial last year. The tax-reform legislation must be viewed as the major achievement of 1986. Tax simplification, which appeared dead at one point, was finally enacted. It was one of the most sweeping revisions of the tax code in U.S. history. And far-reaching changes in the nation's immigration laws were also voted. The compromise plan exempts some aliens from registration and deportation, while putting new restrictions on business to halt employment of illegals.
Progress was also made in trimming the enormous Federal Budget deficit. But Congress will still have to wrestle with spending programs that stubbornly resist reduction.
It should be an entirely new ballgame on Capitol Hill during 1987. The Democrats' control of both houses will make them bolder than in previous years. All committee chairmen will be Democrats. They will set the floor schedule, the agenda for consideration of legislation, and the hiring of key staffers. The Democrats are in a vastly stronger position-able to draft legislation, hold oversight hearings, and focus critical attention on the Administration.
Administration officials hope that the Iranian crisis will fade away-allowing the President to move ahead on domestic and national security matters. But the Iran arms fall-out lingers, threatening to stop action and block his policies.
Democrats have problems, too. They have the ball, but can fumble. They don't intend to be tarred with the "tax and spend" label of the past. They want to seem more centrist, to position the Party for voting in 1988. But Party unity is hardly assured. The Democrats cover a broad spectrum, from conservative Southerners to liberal Northeasterners... and in between. Clumsy moves by Congressional leaders could damage the Democrats in 1988.
Shrinking the budget deficit looms as a key issue for the Congress. Strong differences remain between the parties on how to attack the problem. The White House will continue to propose spending cuts as the best solution, an approach it has stressed for some six years, with only limited success. Reagan has sent up a budget plan calling for spending about $1.02 trillion for fiscal 1988-the government accounting year that begins in October 1987: it is projecting a deficit of $108 billion, down from $170 billion this year. The President's budget includes $50 billion in domestic spending reductions, as well as sales of Federal assets and some other revenue-raising measures. It also provides $308 billion for the Defense Department, up 3% from 1987.
A spate of new securities regulations will be offered during 1987, after the insider-trading scandals. Such legislation stands a better chance under Democrats, but this doesn't mean that voting of restraints is assured. Many key Democrats are interested in bills to discourage hostile takeovers. One would reduce the period of disclosing major stock purchases to the SEC. Another would focus on the antitrust implications of partnership take-overs. A third would prohibit greenmail-paying a premium to a raider who gives up.
Other bills would fine companies whose employees have been found profiting from insider trading.
A major overhaul of the banking laws may be undertaken during 1987, but this time with Democrat William Proxmire heading the banking committee. Major banks want the Reagan Administration to take the lead on reform, addressing the question of allowing the banks to offer additional services and the issue of what to do about so-called limited-service institutions. These "non-bank banks" don't fit the legal definition of a commercial bank, because they either accept deposits or make commercial loans, but not both. Thus, they skirt Federal prohibitions against mixing commerce and banking.
Proxmire favors closing the non-bank loophole to protect the banking industry. But he is not prepared to go along with granting banks all of the new powers that they want.
Health legislation will receive increased attention from Congress. The battle lines between the conservatives and liberals are already drawn. The liberals will press to expand health-care coverage to more Americans. They support proposals for health insurance for all catastrophic illness, financed by higher Medicare premiums: the White House calls it too costly. They are also recommending an IRA-type account, with the interest tax-free; such an Individual Medical Account could be used only for long-term care.