Bill Could Be Tough Sell Again

Davis’s sponsorship of the premium conversion bill is significant since he chairs the House Government Reform Committee, the measure’s first stop in the legislative process. In the prior Congress, that committee approved a similar bill but the proposal also falls under the jurisdiction of the House’s tax committee, Ways and Means. The measure died there in the prior Congress, mainly out of concerns about the cost. That includes not only the cost of improving the benefits for federal retirees–estimated at $7 billion in lost tax revenue over 10 years–but also the potential precedent that would be set for private sector retirees to seek the same tax advantage, at a much higher cost in lost tax revenue.