In a major victory for NPES members, Congress passed H.R. 1836, the $1.35 trillion tax relief reconciliation bill, which will set into motion the largest tax relief package in 20 years. NPES was a member of the Tax Relief Coalition steering committee that lobbied for the legislation. We urge you to thank the members of the House and Senate who voted in favor of the final tax relief package.

This expeditious approval by Congress is not only a victory for the Bush administration, but to all taxpayers, as it will grant across the board income tax breaks, thus generating increased investment and economic activity. This vote took place right before the recent deadline eyed by the Republican leadership as the last chance to get the bill passed and to the President’s desk before the Memorial Day recess. Twenty-eight Democrats and one independent joined all 211 Republicans in the House to vote in favor of the bill. The Senate comfortably passed the bill 58 to 33 with the support of 12 Democrats while losing 2 Republicans to a "no" vote.

Key Provisions

>  Reduction in the top income rates starting July 1. By 2006, the bill will lower the:
        36 percent rate to 33 percent
        31 percent rate to 28 percent
        28 percent rate to 25 percent
        15 percent rate will remain unchanged

NPES urges you to contact your Congressman and Senators commending them for their vote in favor of the bill. We have provided you with the attached drafted thank you letters for your use. Roll call votes and NPES thank you letters are located at www.npes.org/government/index.htm.

           NPES urges you to contact your senators immediately to encourage them to vote for the Senate Finance Committee Tax Relief Act of 2001 and to oppose any attempt to forestall the repeal of the estate tax. We also urge you to encourage Democratic Senators Baucus (MT), Lincoln (AR), Torricelli (NJ), and Breaux (LA) to support the tax relief package as they did in the Senate Finance Committee.

           Please contact your senator and the following senators who are crucial to this upcoming vote:

Max Cleland (D-GA) 202-224-3521; (f) 202-224-0072
Mary Landrieu (D-LA) 202-224-5824; (f) 202-224-9735
Zell Miller (D-GA) 202-224-3643; (f) 202-228-2853
Lincoln Chafee (R-RI) 202-224-2921; (f) 202-228-2853
senator_chafee@chafee.senate.gov
Ben Nelson (D-NE) 202-224-4224; (f) 202-224-5213;
ben_nelson@bennelson.senate.gov
Tim Johnson (D-SD) 202-224-5842; (f) 202-228-5765; tim@johnson.senate.gov
Evan Bayh (D-IN) 202-224-5623; (f) 202-228-1377; senator@bayh.senate.gov
Jean Carnahan (D-MO) 202-224-6154; (f) 202-228-2243;
senator_carnahan@carnahan.senate.gov
Ron Wyden (D-OR) 202-224-5244; (f) 202-228-2717
Patty Murray (D-WA) 202-224-2621; (f) 202-224-0238;
senator_murray@murray.senate.gov

Senate Finance Committee Passes Tax Package

           In a major victory for NPES, the Senate Finance Committee passed the $1.35 trillion dollar tax cut package while leaving intact the much-sought after estate-tax repeal provision. In a vote of 14 to 6, 4 Democrats joined all 10 Republicans in passing the largest tax reduction package in 20 years.

           After finishing debate on a variety of proposed amendments to the bill, the Senate Finance Committee passed the $1.35 trillion tax package, designed to fit within the House and Senate-passed $1.35 trillion budget outline. This bill not only includes the estate-tax repeal, but it also reduces tax rates, doubles the $500 child tax credit, and eases the marriage penalty tax. The plan calls for a cut in taxes by $1.35 trillion over 11 years while offering $100 billion in immediate tax relief to help stimulate the economy.

           The Senate Finance Committee vote follows the recent passage of the budget resolution, which allowed the Senate to pass the $1.35 trillion tax plan with a simple majority. The passage of the budget resolution is key to the tax relief process, because without it a sixty-vote majority would be needed to pass the tax plan. The Senate approved the resolution 53-47 after the House passed it with a near party-line vote of 221-207.

           It is imperative that you contact the members of the Senate Finance Committee today urging that the repeal of the death tax be included in the final Senate Finance Committee tax relief package!

           Please contact the following Senators in support of death tax repeal:

Vice President Cheney Commends NPES For Support of Tax Plan

March 21, 2001

Five representatives from NPES The Association for Suppliers of Printing, Publishing and Converting Technologies joined other small business leaders in a meeting with President George W. Bush at the White House March 16.  The meeting was a thank you to those in the small business sector who have worked for the President’s tax relief proposal.  NPES is supporting the proposal through participation in the Tax Relief Coalition (TRC).

            Current Government Affairs Chairman Hank Brandtjen III, President of Brandtjen & Kluge; immediate past chairman Elinor Midlik, President of Prime UV Systems, and former committee chairmen Edward T. McLoughlin, President, Oxy-Dry Corporation, and J.M. Mike Murray, President/CEO of Brackett took part in the meeting, with Government Affairs Director Mark Nuzzaco.

New Labor Secretary Elaine Chao, who noted the important role played by small businesses in the U.S. economy, introduced President Bush to the guests in the East Room meeting.  Small Business Administrator nominee Hector Baretto also attended. The President spoke on the need for his $1.6 trillion tax cut in the context of budget priorities, including funding for education, defense, and health care and adding that even with a 4 percent increase in discretionary spending, there is still money left over that should be given back to taxpayers, or not taken from them in the first place.

Making his case for the benefits of his tax cut to small businesses in particular, President Bush referred to a statement released by the Treasury Department that same day reporting that at least 17.4 million small business owners and entrepreneurs currently pay tax as individuals at the top 39.6% rate. Drawing a standing ovation from the audience, the President also stressed the importance to small business of repealing the estate tax.   The NPES executives attending the meeting all represent privately owned companies of 250 or fewer employees, and many other NPES members are small businesses.

He observed that it is important to understand that small businesses generate 51 percent of private sector GDP, and provide 75 percent of net new jobs in the United States. In that regard, he urged the small business leaders in attendance to make their support of the tax cut proposal known to their senators. 

He concluded by stating that the role of the President is to lift the spirits of the country, and to call upon leaders such as his guests to go back to their communities and make a difference in someone’s life. President Bush shook hands with the NPES government affairs chairmen as they commended him for his leadership and pledged their continued work in furtherance of his tax relief package.

            The four NPES member companies represented in the meeting included:

• Brackett, Inc., a 91-year old manufacturer of a wide range of bindery equipment located in Topeka, Kansas

• Brandtjen & Kluge, a small four generation family-owned printing press manufacturer that has been in business since 1919 in St. Croix Falls, Wisconsin

• Oxy-Dry Corporation, a 60-year old third generation U.S. printing equipment manufacturer employing around 250 workers in Itasca, Illinois

• Prime UV Systems Corporation, a world-leader in environmentally friendly ultra violet (UV) curing technology, employing approximately sixty highly skilled workers in Carol Stream, Illinois.

These four companies are good examples of how many NPES members nationwide can benefit from President Bush’s tax relief plan,” said President Regis J. Delmontagne. Nearly 60% of NPES members are small businesses with gross sales of $5 million or less annually.          

March 21, 2001

HOUSE PASSES FIRST PART OF BUSH TAX RELIEF PACKAGE 

            On March 8^th, the House of Representatives approved H.R. 3, The Economic Growth and Tax Relief Act of 2001.  This bill, which calls for a $958 billion, 10-year reduction in marginal rates is the central component of President Bush’s pro-growth tax reform plan and was the first major victory in passing President Bush’s much needed tax relief plan.  This vote was not only a victory for President Bush but for the entire nation, as it would return to taxpayers some of their hard earned money, thereby helping to generate increased investment and economic activity.  NPES strongly supports President Bush’s $1.6 trillion tax relief plan and continues to urge its complete enactment by Congress. 

            NPES encourages you to thank your Congressman for voting in favor of H.R. 3.  For a listing of the roll call votes on this legislation or to view our letter thanking members of Congress for their support, please visit our website at http://www.npes.org.

March 21, 2001

CHABOT INTRODUCES STATUTE OF REPOSE REFORM BILL AGAIN

 House Resolution 940, Workplace Goods Job Growth and Competitiveness Act of 2001 was recently introduced by Rep. Steve Chabot (R-1- OH) and co-sponsored by Reps. Marcy Kaptur (D-9-OH), John Shimkus (R-20-IL) and George Gekas (R-12-PA). Specifically, it would create an 18-year Statute-of-Repose for claims arising from injuries involving durable goods used in the industrial workplace. The legislation would relieve manufacturers from undue long-tail liability for injuries occurring on equipment that has been in the workplace for many years, extensively used, and perhaps resold and/or modified without even the manufacturers’ knowledge or control. And it would bring about this reform while leaving no injured person without compensation.

One of the most serious threats for U.S. durable goods manufacturers is product liability lawsuits on overage products.  Although they were built decades ago in accordance with safety standards of their day, liability for injuries that occur during the use of these products is literally endless.  Even though most of these cases either never actually go to trial, or are won by defendant manufacturers, they still result in high and unnecessary legal costs.

March 21, 2001

LANDMARK DEVELOPMENTS IN ADMINISTRATIVE LAW

Two landmark developments in the area of administrative law/regulation have occurred in the past two months, each of which relates to a public policy issue of importance to NPES.  In February the U.S. Supreme Court unanimously upheld the

Environmental Protection Agency’s authority to set new and tougher clean air standards without first considering the potential economic impact on industry. However, the Court did remand the case back to the DC Circuit Court of Appeals, ruling that while the EPA has authority to set the new rules, its policy for implementing them with regard to ground-level ozone violated the 1990 Clean Air Act Amendments.

In March, Congress for the first time used the authority given it by the Congressional Review Act to nullify a federal regulation.  Specifically, it voted to strike down the OSHA Ergonomics Standard. and President Bush signed the joint resolution of disapproval. NPES had opposed the ergonomics standard on the grounds that it was not well supported by empirical data and would have been an extremely onerous burden on businesses, especially small firms. 

Supreme Court Upholds EPA Clean Air Standards

            The United States Supreme Court has upheld the Environmental Protection Agency’s authority to set federal air standards under the Clean Air Act (CAA).   In the case Whitman vs. American Trucking Association, the Supreme Court ruled that the Act’s requirement for EPA to establish national ambient air quality standards (NAAQS) at a level requisite to protect public health is within the constitutional scope of discretion that Congress can delegate to a federal agency.  

 On May 14, 1999, the U.S. Court of Appeals for the District of Columbia found that the EPA had incorrectly interpreted Section 109 by not setting forth intelligible principles that could be used to meet the Clean Air Act’s mandate.  The DC Court of Appeals found that the EPA’s interpretation of its authority to set primary standards caused a violation of the delegation doctrine, which allows only Congress to exercise legislative power.  However, the U.S. Supreme Court has now reversed this decision, saying that Section 109 of the Clean Air Act does not delegate legislative power to the EPA. Additionally, the DC Court of Appeals did find that the EPA must implement their standards according the Subpart 2 title I, Part D of the Clean Air Act and not through the general provisions of Subpart I.  However, the Supreme Court found that both subparts apply to the ozone standard and remanded the issue back to the EPA to develop a reasonable plan.     This opinion required the EPA to set standards requisite to protect public health, but not lower or higher than necessary. 

            In response to this ruling, industry representatives argue that the EPA should consider a cost/benefit analysis before issuing regulations under the CAA, which is contrary to the Supreme Court decision that the CAA unambiguously bars cost considerations from the NAAQS-setting process.  It is in the best interest for small and medium size businesses that the economic impact of a regulation be considered before the implementation of the regulation.  To assure that the EPA issues appropriate air-quality standards, there is a new interest in Congress for introducing cost/benefit legislation.     

Congress Strikes Down Ergonomics Standard 

On March 6^th, the Senate voted 56-44 in favor of a resolution disapproving the controversial OSHA ergonomic standard.  Six Democrats joined 50 republicans to approve the measure.  Following this vote the House approved the measure with a vote of 223-206.  This vote gaining the approval of sixteen Democrats and losing the support of 13 Republicans was a major victory for the business community because it eliminated the need for businesses to spend billions of dollars to change procedures and equipment without the assurance that these MSD injuries would be prevented or even caused by workplace activity at all.   NPES supports workers rights and workplace safety, however this standard was clearly too costly and would neither benefit employees nor businesses.  The vote to overturn the OSHA ergonomic standard is applauded by business nationwide, as there is new confidence that unreasonable regulations will be reassesses in the 107^th Congress.            

                Nullifying the OSHA Ergonomics Standard was the first use of the Congressional Review Act (CRA), allowing Congress to reassess controversial federal regulations. The CRA requires that regulations be reviewed by Congress and authorizes a termination of a regulation if a simple majority in both the House and the Senate pass a joint resolution of disapproval, stating that the rule has no force or effect.  

                NPES encourages you to contact your Congressman and Senators to thank them for their vote in favor of the resolution of disapproval.  For a full listing of the House and Senate roll call votes on this issue or to view a copy of our letter thanking the members for their support, please visit our website at http://www.npes.org.