David Reichert RSS Articles

Reichert Statement on New 8th Congressional District Map

Wed, 28 Dec 2011 05:00:00 GMT

Congressman Dave Reichert (WA-08) today released the following statement on the new 8th congressional district map:

"It has been an honor and a privilege to serve the constituents of the 8th Congressional district over the last seven years. Even before my time in Congress – as a member of the Air Force and as King County Sheriff – I have strived every day to perform my job with honor and integrity and with the heart of a servant. While some of the communities I am representing may change, my commitment and dedication to being a public servant will not. I am excited to have an opportunity to represent new communities in central and western Washington and continue to serve as a voice for Washingtonians."

# # #

Republican Lawmakers Question AARP's Tax-Free Profits From Product Endorsements

Mon, 26 Dec 2011 05:00:00 GMT

Three House Republican lawmakers are asking the IRS to explain how nonprofit seniors group AARP is able to shield hundreds of millions of dollars from tax levies even though, they say, the group is effectively in “day-to-day control” of products offered by private firms with the AARP stamp of approval.

Rep. David Reichert, R-Wash., said companies that use AARP’s brand to sell everything from health insurance to hearing aids are helping the seniors’ group make huge profits. All the while AARP’s profits gain tax-exempt status.

“They're really trying to manage these companies to increase their revenue," said Reichert, one of the House Ways and Means Committee GOP members to sign onto a letter sent to the IRS.

Republican critics note AARP's income from United HealthCare alone skyrocketed from 2007 to 2009, even as the recession was hitting, leaping from $284 million to $427 million during that time, a 50 percent jump. In 2010, those revenues soared even higher -- to $670 million.

“Those increases, I think, are dramatic," Reichert told Fox News.

A longtime Democratic tax lawyer says “royalties,” or “passive income” are a common tool for nonprofit groups to earn revenues, and pointed to the Sierra Club as another beneficiary of “arms-length” arrangements.

"That is the classic royalty situation where the Sierra Club in effect simply makes its mailing lists available to other charities in return for royalty," said attorney Bill Josephson. "I don't have any problem with that, nor does anybody else."

But Republicans say AARP's deal with United HealthCare is different, and in the letter to the IRS, they point to what they say are several examples of AARP’s daily influence over the business, including its “authority over United's ‘operating plan’” and its ability to "approve, modify on a line-by-line basis, or provide specific direction to United."

Josephson said if that’s indeed the case, "the kinds of hands-on relationships (AARP) has with its supposedly arms-length insurance companies are hardly passive."

And if it’s not passive, lawmakers contend, the income is taxable.

AARP did not make anyone available for an interview, but did send a letter to Fox News from Kevin Donnellan, AARP executive vice president and chief communications officer, who wrote that AARP’s chief aim is upholding its standards, and its actions are a detailed commitment to quality control on products offered in its name.

"We have spent more than five decades proving our commitment to helping older Americans obtain quality, affordable health so, of course, we take seriously how others use our name," Donnellan wrote. “We are disappointed that this work should be the subject of congressional criticism.”

AARP makes the majority of its revenues from United's supplemental insurance policies to seniors, including what is known as Medigap, which covers things for which Medicare does not pay. One of AARP's many ads tells seniors that the insurance can help them protect themselves “from some of what Medicare doesn't pay.”

“Save up to thousands of dollars in potential out-of-pocket expenses with an AARP Medicare Supplement Insurance Plan," the ad says.

Donnellan wrote that the group’s supplemental plans "help many of the sickest and most disadvantaged seniors who would otherwise be denied insurance by accepting more than 99 percent of applicants, which is far higher than the market standard."

But AARP’s support for the Obama administration’s new health care law, which calls for $500 billion in cuts to Medicare, critics say, makes it all the more likely people would need supplemental insurance, something AARP stands ready to provide.

"That move alone, as seniors began to go to Medigap insurance, increases AARP's revenue over a 10-year period by $1 billion. And we think that's just a little bit suspicious," Reichert said.

###

Ways and Means Members Turn Over New Information on AARP to IRS

Thu, 22 Dec 2011 05:00:00 GMT

Health Subcommittee Chairman Wally Herger (R-CA), Ways and Means Member Dave Reichert (R-WA), Oversight Subcommittee Chairman Charles Boustany, Jr. (R-LA) sent a letter to Internal Revenue Service (IRS) Commissioner Douglas Shulman with new information relevant to AARP’s tax-exempt status. Specifically, the letter requests that IRS examine new information regarding AARP’s financial arrangements with HearUSA, Inc. (HearUSA) and UnitedHealth Group (United).

Following a year-long investigation, the Members authored and issued a report in April. The report found that, as a result of the new health care law, AARP stands to make an additional one billion dollars over the next ten years through the sale of AARP-endorsed insurance products. The report raised serious concerns about whether AARP was fulfilling the requirements of a tax-exempt organization, or if AARP’s significant involvement in the business affairs of its numerous partners indicates the organization is a for-profit business operating under a tax-exempt status. Following a joint hearing of the Ways and Means Health and Oversight Subcommittees, the Members forwarded the report to the IRS for review and requested the agency assess whether AARP’s tax status should be reconsidered.

As a follow-up to the hearing, the Members obtained additional information regarding AARP’s business practices. Today’s letter details the new findings and requests the IRS consider the new details when conducting its review of AARP's tax status. In particular, the letter raises specific concerns about AARP’s involvement in third-party contractors’ day-to-day business activity.

The letter notes, “These contracts suggest that AARP’s relationship with United is much more than an agreement to license the AARP name. Rather, AARP has extensive decision-making authority over, and is deeply involved in, United’s business operations. The AARP relationship with both United and HearUSA seem to suggest a pattern of business partnerships and activities that permits AARP to engage in for-profit businesses under the cover of its tax-exempt status.”

In 2008, AARP entered into a financial arrangement with HearUSA to endorse the company's hearing aids, and in return AARP would receive a commission on each hearing aid sold. The HearUSA contract raises additional issues regarding AARP's ongoing characterization of certain payments as tax-exempt "royalties." AARP's ability to dictate HearUSA advertising expenditures and mandate "charitable" donations from HearUSA to AARP's Foundation exceeds simple brand and quality management.
Additionally, information gleaned from AARP, AARP Services Inc. (ASI), and United's three Medicare contracts reveals the financial incentives for different insurance product lines. The contracts dictate United’s marketing and sale of AARP-branded Medigap, Medicare Advantage, and Medicare Part D policies and details AARP and ASI’s extensive influence over and involvement in United’s daily business operations.

The full letter can be found here.

###

Reichert Reaffirms Support for a Full-Year Payroll Tax Cut Extension

Tue, 20 Dec 2011 05:00:00 GMT

Washington, DC, Dec 20 – Congressman Dave Reichert (WA-08) released the following statement after reaffirming his support for a full-year payroll tax cut extension by supporting a measure that asks the Senate to return to Washington, DC to complete its work:

"Today, the U.S. House of Representatives insisted on providing seniors, struggling businesses, and working families with certainty through 2012,” said Reichert. “The public policy we are debating is too important to leave unresolved over a holiday vacation. Seniors need care. The jobless need temporary assistance. Families and businesses will need tax relief in the coming year.

“That is why, last week, I helped the House pass a fully offset, bipartisan package that would have taken care of these legislative loose ends. I was disappointed that HR 3630 failed in the Senate but I’m not giving up on the effort or my constituents. I am ready to fight for a year-long solution and won’t settle for a short-term political fix. The President has said it is inexcusable to let these provisions expire. I agree.”

Reichert Honors Troops for Service in Iraq

Thu, 15 Dec 2011 05:00:00 GMT

Congressman Dave Reichert (WA-08) today released the following statement after the United States formally concluded its military presence in Iraq:

"I am so proud of our troops serving in Iraq and am glad many of them will now be able to spend the holidays at home with friends and family,” said Reichert. “The service and commitment of more than one million American military personnel liberated Iraq and brought a new democracy to the Middle East. The 30,000 that were wounded and nearly 4,500 that gave the ultimate sacrifice will never be forgotten.

“American soldiers worked hard to ensure Iraqi security forces are equipped to keep order and protect their borders. I remain concerned by the regional influence of an increasingly hostile regime in Iran, but hope Iraq will have a prosperous, safe future as we welcome American forces home. Our men and women in uniform have been fighting around the world in the defense of liberty for generations. The troops coming home this month are the latest part of that noble tradition.”

# # #

Washington State Delegation and Governor Gregoire Launch Campaign to Bring KC-46A Tankers to Fairchild

Wed, 14 Dec 2011 05:00:00 GMT

Senator Patty Murray, Representative Cathy McMorris Rodgers, Senator Maria Cantwell, and Governor Christine Gregoire have launched a campaign to ensure that Fairchild Air Force Base becomes home to the next generation of aerial refueling tankers. As part of that campaign, Washington state’s full congressional delegation sent a letter to U.S. Air Force Secretary Michael B. Donley to outline the exceptional assets Fairchild has to offer the new fleet. The letter was sent in conjunction with efforts by Washington state legislative leaders who also voiced their support for tanker placement at Fairchild.

“Fairchild Air Force Base has been a historic part of our nation’s aerial refueling effort and is well suited to achieve global-level reach to the emerging Asia-Pacific theater,” the delegation members wrote. “Fairchild provides an exceptional quality of life for its airmen and the local community has embraced the base. The Spokane community has a rich history with the military and embraces military personnel, their families, and retirees through programs and events that have drawn numerous military recognitions awarded to the community.”

The KC-46A is intended to replace the U.S. Air Force's aging fleet of KC-135 Stratotankers which has been the primary refueling aircraft for more than 50 years. With more refueling capacity and enhanced capabilities, improved efficiency and increased capabilities for cargo and aeromedical evacuation, the KC-46A will provide aerial refueling support to the Air Force, Navy, Marine Corps as well as allied nation coalition force aircraft.

The full text of the letter follows:

Michael B. Donley
Secretary of the Air Force
1690 Air Force Pentagon
Washington, DC 20330

Dear Secretary Donley,

On behalf of the State of Washington, we would like to thank you for the service and sacrifice made by the men and women and their families of the United States Air Force on behalf of our nation. It is with that gratitude that we write to you today in support of the KC-46A aerial refueling program and the Air Force’s strategic basing process. As you know, the KC-46A will play a critical role in the United States’ global strategy. Mission successes will rely heavily on the strategic basing determination process and the effective and efficient use of these aircraft.

Fairchild Air Force Base has been a historic part of our nation’s aerial refueling effort and is well suited to achieve global-level reach to the emerging Asia-Pacific theater. The base is a strategic staging platform supporting the rapid worldwide global mobility mission with access to a number of aerial refueling routes while minimizing transit fuel consumption.

Fairchild is also home to a classic association of the 92^nd Air Refueling Wing with the Air National Guard 141^st Air Refueling Wing. The association marries the best the active duty and reserve component have to offer, providing for world-class aerial refueling, airlift and aeromedical evacuation capabilities while fostering innovation and efficiency in operation. Together, the integrated ARWs deliver a full spectrum of capability with one of the largest, most experienced organizations in the Air Force today.

The Air Force continues to recognize Fairchild’s assets and has invested over $400 million in base infrastructure over the last several decades. Accommodating the new KC-46A will require a modest investment in infrastructure as the Air Force has already improved the 14,000 foot runway and has plans to build a new Wing Headquarters and improved SERE facilities.

Fairchild provides an exceptional quality of life for its airmen and the local community has embraced the base. It is a strongly desired duty station and is the second-most requested Air Force assignment in the United States. There are also 1000 Air Guard members who reside in the community with additional retirees who choose Spokane as their home following their military careers.

The Spokane community has a rich history with the military and embraces military personnel, their families, and retirees through programs and events that have drawn numerous military recognitions awarded to the community.

The Spokane community has developed a white paper by “Forward Fairchild,” a coalition of Spokane businesses and community advocated that further detail the benefits associated with Fairchild Air Force Base, the Spokane community and Washington State. We have enclosed it for your review.

We look forward to your consideration of Fairchild Air Force Base as a home for the new tanker fleet.

Sincerely,

U.S. Senator Patty Murray
U.S. Representative Cathy McMorris Rodgers
U.S. Senator Maria Cantwell
U.S. Representative Jay Inslee
U.S. Representative Rick Larsen
U.S. Representative Jaime Herrera Beutler
U.S. Representative Doc Hastings
U.S. Representative Norm Dicks
U.S. Representative Jim McDermott
U.S. Representative Dave Reichert
U.S. Representative Adam Smith

Reichert Votes to Extend Payroll Tax Cut, Unemployment Insurance

Tue, 13 Dec 2011 05:00:00 GMT

Congressman Dave Reichert (WA-08) today released the statement below after supporting the Middle Class Tax Relief & Job Creation Act (H.R. 3630), which passed the House by a vote of 234-193. The fully offset legislation extends the payroll tax cut through 2012, reforms and extends unemployment insurance, and ensures Medicare providers will continue to be reimbursed for healthcare services they provide to seniors.

"This package is critically important to many of this country’s most vulnerable citizens,” said Reichert. “It is a comprehensive bill made up of proposals from both sides of the aisle. Extending the payroll tax cut without raiding Social Security will allow middle class families to keep and spend more of their hard-earned wages next year. Those who are currently out of work also won’t see their temporary assistance disappear. This bill extends federal unemployment insurance while also granting states the flexibility to test new strategies to help people get back to work more quickly. Inaction is unacceptable. Congress cannot stand by while families continue to struggle and seniors need care.”

Reps. Dave Reichert and Adam Smith Host Bipartisan Jobs Fair

Tue, 22 Nov 2011 05:00:00 GMT

Congressmen Dave Reichert (WA-08) and Adam Smith (WA-09) released the following statement after hosting the Help Identify Real Employment (HIRE) for America Jobs Fair at the ShoWare Center in Kent where nearly 2,400 job seekers met with 90 local employers:

“The HIRE America jobs fair was a success,” said Reichert. “I spent the entire day talking with local employers and job seekers, hoping to fill hundreds of jobs. It’s too early to tell exactly how many positions will be filled but I’m confident, after speaking with those in attendance, that today’s bipartisan effort was effective. I spoke with constituents who were eager to make an impression and employers who were energized by their interviews with capable candidates. What a blessing it would be to a family, a business, and the community if we can place one employed person in a new position this holiday season.

“The community pulled together to make this successful event possible. I plan to take this best practice – along with a strong spirit of bipartisan cooperation – to Washington, DC in hopes of spreading this message with my colleagues.”

“I am extremely proud that thousands of job seekers joined me and Congressman Reichert to meet with more than 90 employers at today’s event," said Smith. "Our goal is to put Americans back to work, and it starts by making sure we connect employers with potential employees who have matching skills and needs. That is exactly what happened today. This bipartisan effort brought our community together to address the most important issue our country faces right now, and we’re grateful to everyone who participated for making it a success.”

###

Reichert Statement on Balanced Budget Amendment

Fri, 18 Nov 2011 05:00:00 GMT

Congressman Dave Reichert (WA-08) today released the following statement after supporting a balanced budget amendment (H.J. Res. 2) to the Constitution:

"Americans are tired of the federal government spending money it doesn’t have and borrowing money it can’t pay back,” said Reichert. “I have consistently supported a balanced budget amendment because it is a practical step toward accountable government and long-term fiscal responsibility.

“Businesses and families have to balance their budgets and plan for the future. The federal government should do the same. A balanced budget amendment would force politicians in Washington, DC to make the tough choices they have too often avoided. I hope that today’s consideration of a balanced budget amendment will encourage more of my colleagues to join me in focusing on getting our country back on track; getting Americans back to work; creating opportunities for advancement through education; and providing for a successful future for generations to come. The prosperity of our children and grandchildren depend on it.”

H.J. Res. 2 is nearly identical to the balanced budget amendment that passed the House in 1995 with 300 bipartisan votes.

Prohibits Congress from spending more than it receives in revenues unless
3/5 of both chambers votes to allow excess spending.
Requires the President to submit a balanced budget to Congress
Requires a majority roll call vote for any proposed bill to increase taxes
Requires a 3/5 vote in both Chambers to raise the debt ceiling
Provides for a limited exception in times of war and military conflicts that pose an imminent and serious threat to national security

# # #

Reps. Reichert, Pascrell Rally Congress to Save the Cops Program From Elimination

Thu, 17 Nov 2011 05:00:00 GMT

After a concerted bipartisan effort that began months ago, U.S. Reps. Dave Reichert (R-WA) and Bill Pascrell, Jr. (D-NJ) successfully saved local law enforcement resources from the chopping block earlier this evening. By a vote of 298-121, the House reversed course and passed legislation funding the Community Oriented Policing Services (COPS) program. The bill provides funding for the U.S. Department of Justice for Fiscal Year 2012, which includes a total of $198.5 million for COPS; $166 million of which will be made available for municipal police departments to apply for competitive grants to hire or rehire police officers.

“I am proud to report that the collective voice of the law enforcement community and their advocates in Congress was heard,” said Reichert. “The men and women who patrol and protect our neighborhoods are vital to maintaining public safety and this bill will ensure that many of them can continue to serve our communities. Understandably, my colleagues and I in the House are evaluating the effectiveness of every federal program in our effort to reduce the deficit. Reversing the decision to eliminate the COPS office proves that public safety is a national priority and an important investment. I was motivated in this effort by the firsthand knowledge that COPS plays an important role in protecting our businesses, homes, and families. I am grateful to Congressman Pascrell, the Law Enforcement Caucus, and all of the concerned citizens who joined me in standing up to preserve needed resources that keep us safe.”

"I am greatly heartened that common sense prevailed over petty politics with the passage of this legislation that includes funding to help communities keep police on the streets," said Pascrell, a member of the House Budget Committee. "This has been a battle we have been fighting all year. But with the help of my strong partnership with Congressman Reichert, and the support of the bipartisan Law Enforcement Caucus, the House and Senate have come together to support the police departments that protect our communities and families. I'm proud of what we've accomplished. But rest assured that if the need ever arises, we'll fight this fight over and over again. Fewer police means more crime, and the safety of our communities must never be compromised."

BACKGROUND
Congressmen Reichert and Pascrell, co-chairs of the bipartisan Law Enforcement Caucus, have worked together throughout the year to save the COPS office from elimination. In July, the lawmakers rallied their colleagues against the House Appropriations legislation that did not fund the COPS office at all. On November 2, Reichert and Pascrell recommitted themselves to defending local law enforcement jobs in a letter to the leadership of the House Appropriations Committee, ahead of their conference to reconcile the relevant funding bill with the Senate.

A report released last month by the U.S Department of Justice’s COPS office revealed that that nearly 12,000 law enforcement officers will lose their jobs this year alone. Another 30,000 positions remain unfilled, and 2011 could produce the first national decline in law enforcement officer positions in the last 25 years.

###