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National LegislationAGD continuously monitors national legislation so that the organization can communicate the interest of the general dentist to interested parties. In addition, the organization maintains policies to communicate the AGD position when speaking to national legislators on the general dentists’ behalf. AGD encourages its members to advocate on behalf of the profession as well. Review the current list of the AGD dental care and legislative policies to use in your communications with local lawmakers. In addition, the AGD publishes updates on national legislation that may affect general dentists. Click on the links below to learn more about national legislation that the AGD is monitoring or view earlier legislative updates from the AGD by click on the archive link on the right.
On April 20, 2012, the U.S. House of Representatives approved the Interest Rate Reduction Act (H.R.4628), which, if signed into law, would temporarily prevent an interest rate hike on federally subsidized, undergraduate student loans from going into effect on July 1, 2012. Under a 2007 statute, the interest rate on subsidized federal Stafford loans for undergraduate students was trimmed from 6.8 percent to 3.4 percent. However, these rates are scheduled to return to 6.8 percent unless Congress intervenes before July 2012. The proposed Interest Rate Reduction Act would extend the current 3.4 percent interest rate for an additional year. The bill was approved by a vote of 215 to 195, and is currently with the Senate for consideration.
However, in order to finance the $5.6 billion program extension, funds were siphoned from a part of the Patient Protection and Affordable Care Act (PPACA), the Prevention and Public Health Investment Fund. Earlier this year, the fund was also raided to finance short-term extensions of the payroll tax cut, unemployment benefits, and a 10-month delay in scheduled cuts to Medicare physician payments. The Senate proposed its own legislation, S.2343 or the Stop Student Loan Interest Rate Hike Act, to prevent the scheduled interest rate from doubling. This proposed legislation would help finance the continued lower loan interest rate by increasing taxes on S corporationsand restricting the definition of taxable income, making it tougher for S corporations to reduce the amount of Social Security and Medicare taxes paid on earnings. Senate Republicans voted unanimously to block the Democratic bill on May 8, 2012, with a vote of 52-45.
Impact on General Dentistry: The Academy of General Dentistry (AGD) recognizes the need to keep education as affordable as possible, but also acknowledges the importance of protecting the Prevention and Public Health Investment Fund and keeping taxes lower for small business owners. The AGD will continue to monitor both the House and Senate proposals as they move through the legislative process.
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