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February 16, 2001
In this edition: Bush tax cuts; energy;
permanent tuition tax credits; H-1B
rule; foreign sales corporations; financial accounting;
subpart F letter;
meet and greet; news in brief.
TODAY IN CONGRESS
Both chambers are in recess until 2/ 26.
LOTT PREDICTS SENATE WILL PASS BUSH
TAX CUT
Senate Majority Leader Lott (R-MS) predicts there will be
enough votes to
pass President Bush's entire $1.6 trillion tax cut, despite
the announced
opposition of two GOP Senators. Lott continues to stress that
the tax cut
will move in the Senate as a single bill, despite the House's
intention to
move such legislation in pieces. He says tax cuts Congress
approves as part
of education and energy legislation will not count against the
$1.6 trillion
tax cut.
SENATE ENERGY BILL TO BE UNVEILED
SHORTLY
Senate Energy Committee Chair Murkowski (R-AK) said yesterday
that he would
introduce comprehensive energy legislation 2/26. "We have
to recognize that
we have an energy crisis...," he said. Key provisions are
likely to include:
a proposal to permit environmentally sound energy development
in ANWR;
review interstate natural gas pipeline projects; new money
authorized to
develop uses of coal and natural gas; and tax credits for
producing fuel
from non-traditional sources and for construction of
energy-efficient homes.
PERMANENT TUITION ASSISTANCE TAX
BENEFITS VITAL
Following this week's Senate Finance Committee hearing on
education tax
proposals, the NAM reiterated strong support for permanent tax
benefits for
employer-provided undergraduate and graduate tuition
assistance. They're
"just the right kind of pro-productivity tax incentives
our lagging economy
needs," says NAM lobbyist Sandy Boyd. Studies indicate
that each additional
year of post-high school education is worth about 5-15 percent
more in
earnings.
CUTOFF FOR COMMENTS ON H-1B RULE NEXT
WEEK
DOL is taking comments through 2/20 on new rules for firms
using high-skill
H-1B foreign workers. The NAM will be co-filing comments
seeking to make the
new requirements more workable for employers and more
reflective of the
realities of today's global economy. A summary of the
new regulation is
available in the 2/12 Briefing online at www.nam.org.
WTO PANEL DELAYS FSC RULING
A three-member WTO panel has decided to push back its decision
until early
July on whether U.S. legislation replacing the FSC system is
compatible with
WTO rules. The delay means that final resolution of the
dispute at the WTO
and any possible EU trade sanctions against the U.S. for
noncompliance may
not occur until late November at the earliest.
FINANCIAL ACCOUNTING CLEAN UP
CONTINUES
The Financial Accounting Standards Board (FASB) yesterday
continued clean-up
operations in its business combinations project, making
tentative decisions
on footnote disclosures, how items are presented in the
financial statements
and the definition of an intangible asset. FASB plans to issue
a final
standard in its effort on mergers and acquisitions accounting
in late June.
INTERNAL REVENUE CODE REFORM
HIGHLIGHTED
Senior Bush economic advisors were sent a letter 2/14 by the
NAM and other
business groups urging support for permanent enactment of the
active
financial services provision of subpart F of the Internal
Revenue Code. The
provision treats income earned by active financial services
companies
outside the U.S. in the same manner as foreign manufacturing
income. The
current temporary nature deprives the provision of its full
effect.
MEET AND GREET THE SMALL BUSINESS
COMMITTEE MEMBERS
As part of our Manufacturers' Week in Washington: 72 Hours to
Educate and
Celebrate, the NAM will host a "Meet and Greet" with
members of the House
and Senate Small Business Committees. Come meet the lawmakers
and learn how
these two committees want to help small and medium
manufacturers.
Continental Breakfast. 3/1, 8:30-9:30 a.m. Room B369, Rayburn
House Office
Building. RSVP by fax (202) 637-3182.
NEWS IN BRIEF
The San Francisco Chronicle reports Gov. Gray Davis (D-CA) is
expected to unveil a rescue plan today for CA's near-bankrupt
utilities.
The House Government Reform Committee has prepared subpoenas
for
former Clinton aides John Podesta, Bruce Lindsey and Beth
Nolan over the
pardon of fugitive Marc Rich.
Sen. Fred Thompson (R-TN) announced yesterday that he will not
run
for governor and probably will seek re-election in 2002.
The Columbia State reports Rep. Lindsey Graham (R-SC) 2/21
will
announce he is running for the seat retiring Sen. Strom
Thurmond (R-SC) in
2002.
Former Rep. Rick Lazio (R-NY) is considering a run for county
executive in Nassau County, the New York Times reports.
The moderate-to-conservative Blue Dog Coalition and the
moderate New
Democrat Coalition may develop their own tax plan,
CongressDaily reports.
BBCNews.com says outgoing Israeli PM Ehud Barak has accepted
the
post of defense minister in a national unity government headed
PM-elect
Ariel Sharon.
For additional information on the issues covered in this
report, contact Tim
Lugbill or Grant Cole at (202) 637-3187 in the NAM's Member
Communications
Department.
Copyright 2001 National Association of Manufacturers
February 15, 2001
In this edition: energy debate; medical privacy;
Social Security reform;
China trade; tax cut opposition; technology assistance bill;
NAM legislative
awards; NAM public affairs conference; 107th Congress
Directory; news in
brief. All NAM lobbyists can be reached via (202) 637-3000.
TODAY IN CONGRESS
The Senate may consider a bill honoring former Sen. Paul
Coverdell
(R-GA); a resolution concerning the energy crisis; and/or the
nomination of
Joe Allbaugh as FEMA director.
The House is not in session.
ENERGY DEBATE HEATS UP
Senate Minority Leader Tom Daschle (D-SD) told CongressDaily
yesterday that
there is a "real possibility" for action on energy
policy legislation this
year. Daschle has asked President Bush for a meeting to
discuss rising fuel
prices and possible emergency measures. Energy policy is
one of Senate
Majority Leader Trent Lott's top priorities in 2001.
Senate Energy
Committee Chair Murkowski (R-AK), ranking Democrat Bingaman
(D-NM) and House
Energy/Clean Air subpanel Chair Barton (R-TX) are expected to
unveil
separate proposals in the coming weeks.
MEDICAL PRIVACY REGULATION TO ATTRACT
ATTENTION
Rules issued by HHS in December exacerbate the confusing
patchwork of
conflicting federal and state laws. The regs, issued pursuant
to the 1996
insurance portability law (HIPAA), take effect in 02/2003 for
all but small
plans. That gives the Bush Administration time to fix the
rules.
SOCIAL SECURITY REFORM COMMISSION A
POSSIBILITY
The Bush Administration may embrace a commission for
expediting reform based
on individually owned and managed accounts. Senate Finance
Committee Chair
Grassley (R-IA) among those favoring a commission. A 1/31
letter to the
President from NAM President Jerry Jasinowski suggested that:
1) any
commission should be instructed to work within a fairly rapid
timeline; and
2) the task force should make use of expertise in and out of
government.
Social Security will begin paying out more than it takes in by
2016; and
will go bust by 2040.
SECOND CHINA TRADE BILL NEEDED?
House Trade Subcommittee Chair Crane (R-IL) said yesterday
that unless China
joins the WTO by June, Congress might be forced to vote again
on U.S. trade
relations with China. Beijing has taken longer than expected
to complete
final WTO membership negotiations. Unless that process
accelerates,
President Bush may be required to certify by 6/3 whether to
grant normal
trade relations to China for one year, which could trigger
another
contentious vote on Capitol Hill.
OPPOSITION TO BUSH TAX PLAN SURFACES
Two members of the Senate Centrist Coalition say they are
unlikely to
support tax cut legislation based on the President Bush's
proposal if it is
brought to the Senate floor in its current form. Sen. Jeffords
(R-VT) says
changes are needed before he can support the tax cut, and Sen.
Chafee (R-RI)
believes the $1.6 trillion figure is too large. Meanwhile,
Sen. Snowe (R-ME)
says she is undecided about the tax cut if it lacks a trigger
mechanism.
HOUSE PASSES BILL 409-6 TO HELP FIRMS
BUY SOFTWARE, HARDWARE
The House yesterday passed H.R. 524, directing the Natl. Inst.
of Standards
and Technology (NIST) to offer information to small- and
medium-sized
manufacturing companies that are interested in purchasing
hardware or
software but do not know where to start. The "Electronic
Commerce
Enhancement Act," sponsored by Rep. James Barcia (D-MI),
expands the
authority of NIST's Manufacturing Extension Partnership
program to include
advice about high technology.
NAM LEGISLATIVE HONORS EVENT TO
ATTRACT LARGE TURNOUT
More than 80 lawmakers who are recipients of the NAM Award for
Manufacturing
Legislative Excellence will attend our honors reception on
2/28. More are
expected. Make sure your company or association is
represented at the NAM
Congressional Award Reception and Welcome to the Freshman
Class on Wednesday
2/28, 5-8 pm, at the House Cannon Caucus Room in Washington.
Go to
www.nam.org/pa to register
on-line.
NEWS IN BRIEF
President Bush has retained former President Clinton's
market-driven
air quality program that lets companies buy and trade
pollution rights in
selected states, the Washington Post reports.
The Trenton Times says former Rep. Bob Franks (R-NJ) yesterday
"staked claim" to next year's GOP Senate nomination
because of his close
race against Sen. Jon Corzine (D-NJ).
The Houston Chronicle says William S. Farish III, a longtime
friend
of President Bush's parents and Queen Elizabeth, is likely to
serve as
ambassador to Great Britain.
All but one GOP Senator are urging Bush to nominate former
Sen.
Slade Gorton (R-WA) for a federal judgeship," Roll Call
reports.
The U.S. attorney in New York has begun a preliminary criminal
investigation into the circumstances of former President
Clinton's pardon of
Marc Rich, says the New York Times.
For additional information on the issues covered in this
report, contact Tim
Lugbill or Grant Cole at (202) 637-3187 in the NAM's Member
Communications
Department.
Copyright 2001 National Association of Manufacturers
February 14, 2001
In this edition: energy; ergonomics; Greenspan
testimony; Bush tax cut plan;
climate change; NAM awards; teacher report; news in
brief.
TODAY IN CONGRESS
The House will take up H.R. 524, the Electronic Commerce
Enhancement
Act of 2001, under suspension of the rules.
The Senate will consider S. 320, a bill on copyright and
patent
laws.
NAM, ADMINISTRATION TO DISCUSS ENERGY
STRATEGY
NAM staff will share member-company concerns at a meeting
today with Energy
Sec. Spence Abraham. The NAM, leader of the Coalition for
Energy and
Economic Growth, is urging policy-makers to craft a long-term
strategic
national energy plan to increase our energy supply, improve
energy
efficiency and optimize all energy resources, including
natural gas, oil and
coal. To join the coalition, call (202) 637-3150.
SENATE VOTE ON ERGONOMICS POSSIBLE
SOON
Sen. Mike Enzi (R-WY), chair of the subpanel with jurisdiction
over OSHA,
yesterday said he would work aggressively to block the
agency's flawed
ergonomics rule. "If ever there was an instance that
called for Congress to
step in and send an administrative agency rule back to the
drawing board,
this is it," said Enzi. NAM members are urging
Congress to quickly pass a
joint resolution of disapproval (JRD)-as outlined in the 1996
Congressional
Review Act-that would render the 1,688-page, $18 billion final
ergonomics
rule null and void.
GREENSPAN TO CONGRESS: BUDGET
SURPLUS SHOULD FUND TAX CUTS
Fed Chair Alan Greenspan urged the Senate Banking Committee
yesterday to
reinstate budget controls designed to rein in federal
spending. The
"stampede to spend is almost irresistible," he said.
Greenspan prefers to
use the budget surplus to fund tax cuts. He continues to
oppose capital
gains taxes. The Fed chief reprised his support for a
tax cut but did not
have "a strong view" on retroactivity.
BUSH COMMITTED TO $1.6 TRILLION TAX
CUT PACKAGE
Treasury Sec. Paul O'Neill yesterday told the House Ways and
Means Committee
that President Bush wants swift congressional action on his
$1.6 trillion,
10-year tax cut proposal. House Majority Leader Dick Armey
(R-TX) says the
House could move the first of a series of tax bills in early
March. Senate
Majority Leader Trent Lott (R-MS) says the Senate would
probably move the
tax package as a single bill and could be finished by early
July.
HARVARD SCHOLAR QUESTIONS CLIMATE
CHANGE REPORT
Dr. Sallie Baliunas of the Harvard-Smithsonian Center for
Astrophysics
yesterday cast serious doubt on the findings of a recent
United Nations
report claiming that global temperatures would rise 6-10
degrees by the end
of this century. Addressing an NAM Environmental Forum
audience, Baliunas
said unreliable computer models were to blame for the U.N.
report's
inaccurate predictions. Her research shows the Southern
Hemisphere has been
experiencing a net cooling over the past 25 years.
NAM LEGISLATIVE HONORS EVENT TO
ATTRACT LARGE TURNOUT
More than 60 lawmakers who are recipients of the NAM Award for
Manufacturing
Legislative Excellence will attend our honors reception on
2/28. More are
expected. Make sure your company or association is
represented at the NAM
Congressional Award Reception and Welcome to the Freshman
Class on Wednesday
2/28, 5-8 pm, at the House Cannon Caucus Room in Washington.
Go to
www.nam.org/pa to register
on-line.
INVESTING IN TEACHING
An NAM/industry report recommends a framework for a new model
of teacher
preparation and professional development that will elevate
teaching to a
valued profession. Other proposals in "Investing in
Teaching" include:
creating a new model of pay tied to performance; and creating
a new school
environment that provides teachers with the freedom and
flexibility to
achieve results. The report is available at www.nam.org/workforce,
or call
(202) 637-3101.
NEWS IN BRIEF
President Bush says he will ask Mexican President Fox to allow
the
U.S. to participate in power production in Mexico as a partial
solution to
U.S. energy concerns.
Bush's pick to head the antitrust division of the Justice
Dept. is
likely to be Charles A. James.
The Des Moines Register reports Rep. Greg Ganske (R-IA) is the
first
Republican starting to raise money to challenge Sen. Tom
Harkin (D-IA) in
'02.
The Boston Globe says Matthew Kennedy, ninth child of Robert
and
Ethel, is the newest "wildcard" in the race to
succeed retiring Rep. Joe
Moakley (D-MA).
Governor Perry (R-TX) says tax increases will not be necessary
to
balance the state budget.
On a lighter note, the Washington Times reports that by the
end of
Valentine's Day, Americans will have spent over $1 billion on
candy, $300
million on cards, sent 110 million roses and surrendered 36
million
heart-shaped boxes of chocolate to loved ones.
For additional information on the issues covered in this
report, contact Tim
Lugbill or Grant Cole at (202) 637-3187 in the NAM's Member
Communications
Department.
Copyright 2001 National Association of Manufacturers
February
13, 2001
In this edition: Bush tax plan; education principles;
H-1B workers; business
outlook; telework report; new IRS rules; new role for
committee chairs; news
in brief; 107th Congress Directory.
TODAY IN CONGRESS
The
House takes up two bills under suspension: H.Res. 34,
congratulating Israeli PM-elect Sharon; and H.R. 2, the Social
Security and
Medicare Lockbox Act.
The
Senate could take up any legislative items or nominations
available for action.
BUSINESS PROVISIONS IN SECOND TAX
BILL?
Rep. Jerry Weller (R-IL) said yesterday that he and other
House Ways and
Means Committee members would seek the inclusion of business
tax provisions
in the second of two major tax bills this year. The first tax
bill this
spring will likely focus on President Bush's proposed
broad-based individual
tax cuts. Weller said he hoped Congress would support an
update of business
depreciation rules and other business-related tax breaks as
part of a second
bill later this year.
COALITION ON EDUCATION DISCUSSING
PRINCIPLES
The business coalition on education legislation will convene
today to review
a draft of the principles currently being considered.
The draft principles
will identify our areas of interest in legislation along with
more detailed
recommendations under each principle describing what business
wants to see
in any final compromise legislation.
NEW RULES FOR FIRMS USING H-1B
WORKERS
If your company employs even one H-1B foreign professional
worker, you're
covered under new Labor Dept. regulations that took effect
1/19. DOL will
accept comments through 2/20. The NAM-led ABLI Coalition
is teaming with
the American Council on International Personnel to urge
improvements. Learn
more from the online 2/12 edition of Briefing at www.nam.org,
keyword search
"H-1B visa."
MANUFACTURERS' BUSINESS OUTLOOK FOR
2001 DROPS SIGNIFICANTLY
Results of the NAM/Fortune magazine quarterly survey released
2/9 found that
manufacturers' confidence in their business outlook for 2001
dropped to its
lowest point since the index began in 1997. High energy
prices, high
interest rates, an overvalued dollar, tight global
competition, etc. are to
blame. Visit www.nam.org,
keyword search "Fortune" for survey results and
the NAM's reaction.
TELEWORK REPORT RELEASED
The Labor Dept. has released "Telework and the New
Workplace of the 21st
Century," a report on technology's effect on the
workplace. Between 13
million and 19 million Americans telework in some form. The
report addresses
telework's potential to help employers address the skills
shortage; help
workers meet family obligations; and help achieve greater
workplace
diversity. Access http://www.dol.gov/dol/asp/public/telework/main.htm
for
more information.
FINAL RULES FOR TREATING STOCK
PURCHASE AS ASSET PURCHASE
Final IRS regulations (T.D. 8940) recently issued allow buyers
of a
corporation's stock to elect to treat the transaction as a
purchase of the
corporation's assets. The rules, similar to the temporary regs
issued a year
ago, indicate how to allocate the stock's purchase price to
the assets
acquired in deemed asset purchases under Section 338 and
actual asset
purchases under Section 1060.
HOUSE COMMITTEE CHAIRS TO TAKE MORE
PUBLIC ROLE
House GOP Conference Chair J.C. Watts (R-OK) is asking
committee chairs to
take the lead in communicating their work to the public.
The Conference
will no longer produce the weekly Legislative Digest--an
analysis of bills
scheduled for floor action. Watts says the Conference
will continue to
coordinate common GOP themes but committee chairs will provide
the details.
This follows House Speaker Hastert (R-IL) comments earlier
this year that he
desired a higher public role for committee chairs.
NEWS IN BRIEF
Senate
Budget Committee Chair Pete Domenici (R-NM) says there will
be enough money to keep spending ahead of inflation next
fiscal year, meet
priorities and cover proposed tax cuts.
Mexican
President Fox says he hopes to agree with President Bush on
an across-the-border bargain to allow billions of dollars of
energy to flow
to the U.S., the New York Times reports.
House
Speaker Dennis Hastert (R-IL) will stay in IL this week to
recover from a kidney stone operation.
Reuters
reports former President Clinton may be looking at office
space in Harlem instead of midtown Manhattan.
Russian
President Putin could meet President Bush before the G8
summit of industrialized countries in Italy this July, says a
senior aide to
Putin.
President
Bush appointed Laura Unger as acting chairwoman of the
SEC.
Gov.
Paul Cellucci (R-MA) is expected to be named ambassador to
Canada today.
GETTING TO KNOW THE 107TH CONGRESS
Congress has many new committee/subcommittee chairs and
assignments and more
than 50 House and Senate freshmen. When you order the
NAM's 107th Congress
Directory, you'll receive photos, addresses, phone/fax
numbers, key staff
names, and NAM vote ratings for each member of Congress. .
Click here to
order <http://www.nam.org/namshop/hotitems.asp?&TrackID=>
For additional information on the issues covered in this
report, contact Tim
Lugbill or Grant Cole at (202) 637-3187 in the NAM's Member
Communications
Department.
Copyright 2001 National Association of Manufacturers
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