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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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