Washington update

Agency Sales,  Mar 2003  by Noah, Jeff

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FROM

NAM National Association of Manufacturers

In order to capitalize are the principle of strength in numbers, especially where legislation is concerned, MAMA constantly reaches out to organizations with similar interests to our association and its members. With this in mind, we have partnered with the NAM The National Association of Manufacturers), the nation's largest and oldest multi-industry trade association, founded in 1895. For more information on the NAM, visit their web site at www.nam.org.

Stimulus Plan/Tax Package: President Bush's new $674 billion economic stimulus plan offers a creative mix of incentives that will encourage more aggressive investment in the stock market and new capital investment by business, which will create more jobs. Designed to jump start the sluggish economic recovery, the package includes accelerated tax rate cuts for individuals and many small businesses, expanded Sec. 179 expensing and elimination of the tax on corporate dividends paid to individuals. The President has asked Congress to send him a final economic stimulus bill by 4/15.

Pension Policy: The last Congress ended without lawmakers making major changes to U.S. pension law. That was good news, since many of the proposals would have jeopardized retirement security for many families. The topic will continue to receive attention in Washington. Issues include: company-stock diversification requirements; joint-plan trusteeship mandates; expanded ERISA penalties and fiduciary requirements; and investment advice. A business coalition will remain active on the pension issue.

Health Care: Network TV news accounts are reinforcing what employers have known for several years - that health costs, which were contained reasonably well in the mid-1990s, are again rising uncontrollably. Business groups are working with policy-makers on strategies such as health-care tax credits, Medicare reform and medical-liability reform. Business will continue to oppose the ill-advised "Patients' Bill of Rights." That legislation, which calls for expanded liability, died when Congress adjourned in late 2002. Similar schemes are being proposed for the new Congress.

Asbestos Litigation: More than 6,000 companies have been named defendants in asbestos lawsuits; at least 61 have been forced into bankruptcy. Claims -- 95 percent of which are filed by plaintiffs who show no sign of illness - could continue another 50 years. Sensible legislation is needed that allows courts to distinguish between plaintiffs deserving of compensation and others who aren't. There are positive signs that the new Congress may be willing to tackle this issue this year.

Mobile Machinery: There is growing opposition to the IRS' proposed regulation to repeal the mobile machinery exemption from highway excise taxes. If the IRS believes such a change is warranted, it should work with the new Congress to review current policy before implementing this significant change. Companies in certain industries - like oil and water drilling, utilities, commercial construction, timber, tower erectors, equipment leasing and mining - that use special mobile machinery could be subject to a significant tax increase if the proposed regulation is finalized. Special mobile machinery has been exempt for more than 25 years from the highway excise taxes - the fuel tax, the heavy-duty tire tax, the retail tax on heavy vehicles, and the annual heavy vehicle use tax.

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Copyright Manufacturers' Agents National Association Mar 2003
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