TRANSPORTATION AND DISTRIBUTION PACKAGE TESTING SOLUTION AT NELSON LABS
September 23, 2010 – Utah Business Daily- (Nelson Labs is a UMA member company)
As a microbiology lab, Nelson Labs (www.nelsonlabs.com) typically isn’t the first option to come to mind when searching for a distribution and transportation package testing service provider; however, there are benefits to doing the testing at the same facility where sterility and other microbiology testing is performed.
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VIAWEST TO PROVIDE DATA CENTER SERVICES FOR FAST-GROWING FUSION-IO
September 23, 2010 – ViaWest- (A UMA member company)
Fusion-io chose ViaWest to provide a secure and scalable data center solution
ViaWest, a leading provider of adaptable colocation and managed services, has announced Fusion-io has inked an agreement with ViaWest for colocation services in Utah.
“We were in need of a rapid and easily scalable solution for some of our infrastructure, and we wanted a provider here in Salt Lake City,” said John Walker, Fusion-io SVP Operations.
“ViaWest was able to meet our requirements as well as our timetable, and we couldn’t be more pleased with the result. The quality of their proposed solution, coupled with extremely high levels of redundancy and support, made our decision to go with ViaWest easy.”
“Fusion-io is without a doubt a key addition to our Utah customer base,” said David Tietjen, ViaWest’s Vice President & General Manager in Utah. “They represent the pinnacle of advanced technology here in the region, and we are very pleased to be able to be a part of the growth plan of such an innovative company.”
ViaWest has a total of 16 data center facilities nationally spanning Colorado, Texas, Nevada, Oregon, and Utah where the company currently operates three regional data centers, two in Salt Lake City and a third in the Lindon/Provo area. For additional information on ViaWest, please visit the company website at www.viawest.com or contact the Utah office at (801) 994-0761 or Utah.Sales@viawest.com.
About ViaWest
Headquartered in Denver, ViaWest provides a unique set of colocation, managed hosting solutions, and comprehensive services to mid-sized and enterprise level businesses. As a super-regional service provider ViaWest maintains 16 enterprise-class data center facilities in Colorado, Texas, Oregon, Utah, and Nevada, and offers broad expertise to furnish customers with leading technology infrastructure solutions, as well as the critical resources to support their unique business needs. ViaWest currently serves thousands of customers nationwide including Frontier Airlines, The Denver Broncos, Chipotle, and Northrop Grumman. The company was also recently named 'Technology Company of the Year' 2008 by CSIA, and one of 'Colorado's Top 10 Companies to Work For'.
The NAM continues to work with Congress to prevent attempts by executive agencies to side-step the legislative process and change labor laws. Earlier this year, the National Mediation Board (NMB) finalized a rule that changes union election rules in favor of union organizers for employees covered under the Railway Labor Act. The actions of the NMB overturn more than 80 years of precedent and are contrary to the intent of our nation’s labor laws. This new rule is yet another attempt to circumvent the legislative process to enact elements of labor leaders’ agenda. Sen. Isakson (R-GA) has introduced a “resolution of disapproval” under the Congressional Review Act to prohibit the NMB from implementing the changes.
The NAM sent a letter in support of this resolution to all Senate offices. The resolution, which needs 60 Senate votes to move forward, is slated to be considered September 23.
The NAM continues to educate senators about the impact of the Paycheck Fairness Act (S. 3772) on manufacturers. The NAM joined with 24 other organizations in sending a letter to the Senate in opposition to the bill this week. Under the guise of creating gender pay equity, the Paycheck Fairness Act would significantly expand the ability of trial lawyers to sue manufacturers for legitimate pay practices while doing little to prevent actual illegal acts of pay discrimination.
This legislation would create a complex system of litigation for allegations of gender discrimination and would force employers to second-guess almost every pay decision they make.
This bill also would allow the government to collect data from private-sector businesses and could potentially make employee salaries public. It is unclear if the Senate will turn to the legislation before senators leave for the mid-term elections at the end of this month. Click here to contact your senators to urge them to oppose the proposal.
“So the opportunity to actually get [the Employee Free Choice Act] passed right now is not real high. What we’ve done instead is try to do as much as we can administratively to make sure that it’s easier for unions to operate and that they’re not being placed at an unfair disadvantage.”
- President Barack Obama in response to a question on the status of card check legislation on 9/13/2010
OBAMA PRAISES U.S.-CHINA COOPERATION ON ECONOMY
September 23, 2010 - Today in Manufacturing.net
President said cooperation between U.S. and China 'has been absolutely critical' to easing the financial crisis, but steered clear of a spat over Beijing's currency policy ... continue
NEW REPORTING REQUIREMENTS ADD BURDENS AND COSTS TO MANUFACTURERS
September 23, 2010 – NAM Capital Briefing
Beginning in 2012, a provision in the health care reform legislation signed into law in March 2010 will require businesses to file a miscellaneous 1099 form with the Internal Revenue Service (IRS) for all purchases of property and services greater than $600. This change to America’s tax laws will significantly increase the tax reporting requirements for manufacturers and businesses throughout the country.
The NAM strongly opposed including this provision in the health care legislation. Since its enactment, the NAM has been lobbying to repeal the provision in meetings on Capitol Hill.
The objective of the requirement is to prevent vendors from underreporting their income to the IRS, which estimates that it will bring in $19 billion over the next decade. As a result, small business owners will have to file two forms – one with the vendor and one with the IRS – for almost every business-to-business transaction.
On September 14, Sen. Johanns’ (R-NE) amendment to the Small Business Jobs and Credit Act (H.R. 5297), which would have fully repealed the provision and was supported by the NAM, was rejected in the Senate by a vote of 46-52. The NAM opposed the amendment offered by Sen. Nelson (D-NE), which would have levied roughly $8 billion in taxes on major energy producers to offset the costs of modifying the 1099 reporting requirement. It also failed in the Senate by a vote of 56-42, as 60 votes were needed for passage. The NAM key voted both of these amendments. The NAM’s letters to the Senate in favor of the Johanns amendment and opposing the Nelson amendment are available here and here.
Similarly, legislation in the House of Representatives by Rep. Murphy (D-NY) that would have repealed the 1099 reporting requirement provision but also included substantial new tax increases on worldwide American companies was rejected in late July.
The NAM supports efforts to ensure tax compliance, but not at the expense of and cost to small manufacturers who are following the law. The NAM will continue to urge Congress to fully repeal the 1099 reporting requirement with no offsetting tax increases that will further harm manufacturers in America.
NAM HOSTS CUSTOMS AND BORDER PROTECTION COMMISSIONER
September 23, 2010 – NAM Capital Briefing
The NAM’s Customs and Border Coalition (CBC) hosted Customs and Border Protection (CBP) Commissioner Alan Bersin on September 22 for a discussion on actions his Agency has taken or will take to improve trade facilitation within the CBP. Commissioner Bersin stressed that national security and trade facilitation are not mutually exclusive. He highlighted many initiatives underway to improve trade facilitation, such as implementing a robust management-by-account system based on risk management, the need for a single trusted shipper program that provides real benefits to manufacturers and increased intellectual property protections. He also committed to greater collaboration with manufacturers and asked to be held accountable for improving operations within the Agency. The NAM is committed to working with the CBP and will continue the dialogue.
LEADING ECONOMIC INDICATORS SEE MODEST RISE
September 23, 2010 – Today in Manufacturing.net
Conference Board, a private research group, said its index of leading economic indicators increased 0.3 percent last month after rising 0.1 percent in July ... continue
INITIAL CLAIMS FOR UNEMPLOYMENT AID RISE TO 465K
September 23, 2010 – Today in Manufacturing.net
Initial claims for jobless aid rose by 12,000 to a seasonally adjusted 465,000, the Labor Department said; economists had expected a flat reading or small drop ... continue
HEALTH CARE REFORM UPDATE
September 23, 2010 – AON Consulting
Last Week in Washington
State Lawsuit Challenging Health Reform Law Moving Forward
U.S. District Judge Roger Vinson, who is weighing a motion by the Justice Department to dismiss the lawsuit by 20 states seeking to block the overhaul of the U.S. health care system, said September 14 that he would formally rule on the dismissal motion by October 14, but has already strongly indicated that the case would not be dismissed. The hearing is scheduled for December 16. Legal analysts predict that the matter might reach the U.S. Supreme Court, but many feel that it is unlikely the states would prevail. Click here for the Washington Post’s coverage and here for Business Insurance’s coverage.
Sebelius Warns Health Insurers
The Wall Street Journal reports that in response to some insurers notifying enrollees that their insurance premiums will increase next year due to the health care law’s new benefits, Health and Human Services Secretary Kathleen Sebelius warned that the companies who enact unjustified rate increases linked to the overhaul may be blocked from participating in the insurance exchanges. In her letter to AHIP President and CEO Karen Ignagni, Sebelius wrote that “there will be zero tolerance for this type of misinformation and unjustified rate increases.” Ignagni’s response attributed increasing premiums to the higher costs of medical services, the impact of younger and healthier people dropping coverage during the weak economy, and the additional benefits required under the new law.
Health Savings Account Rules for 2010—CRS Report
On September 9, the Congressional Research Service released a report addressing Health Savings Accounts. The report summarizes current rules regarding eligibility, qualifying insurance, contributions, and withdrawals. Changes to the definition of qualified expenses and increases to the penalty for distributions for non-qualified expenses effective in 2011 are also covered.
Health Reforms To Boost Demand For Services—CMS Report
The Centers for Medicare and Medicaid Services released a report September 9, analyzing the effects of health care reform on the composition of U.S. health care spending. The researchers found the following:
- Coverage will substantially increase in 2014 as a result of the implementation of insurance exchanges and the increased availability of Medicaid;
- Health expenditure growth is expected to peak in 2014 and decrease through the end of the decade;
Health care’s share of GDP is expected to be 19.6% in 2019.
CONGRESS MUST EXTEND LOW TAX RATES TO HELP MANUFACTURERS
September 23, 2010 – NAM Capital Briefing
Congress has little more than a week remaining before its members return to their states and districts for the final swing of the campaign season. With the economy struggling to emerge from the recession and unemployment stubbornly high, the country’s top priority is jobs. One of the best things Congress can do right now is to extend the low tax rates enacted in 2001 and 2003 that have proven so beneficial to manufacturers and businesses throughout the United States.
Maintaining these tax rates will help manufacturers create good, high-paying jobs. Small businesses are responsible for the bulk of new jobs created in the United States, and the nation’s tax policy should encourage, not restrict, expansion and job growth. When Congress raises taxes, it makes manufacturers in the United States less competitive and forces them to divert resources away from expanding their workforces. A key element of the NAM’s “Manufacturing Strategy for Jobs and a Competitive America” is the call for permanent low tax rates for individuals and small businesses.
There is growing support in Congress for extending these tax rates for all income levels. Thirty-one House Democrats sent a letter on September 15 to Speaker Pelosi (D-CA) and Majority Leader Hoyer (D-MD) urging action on this issue. In particular, they noted how Congress’ inaction on these tax cuts is causing uncertainty in the business community, which makes it more difficult to plan, make sound budget decisions and add workers. Preserving the tax rates will provide the certainty that “will give small businesses, the backbone of our economic recovery, confidence and stability.”
About 73 percent of all manufacturers are organized as S-corporations or other flow-through entities that pay income taxes at the individual rate, and they will be disproportionately impacted by the tax increases. Since 2007, these companies have lost more than 850,000 jobs, and if Congress fails to act they will be hit with a tax hike that will only add to the burdens and costs associated with proposed higher energy taxes that limit small manufacturers’ ability to compete. The NAM estimates that manufacturers will lose an additional 238,000 jobs by 2019 if these tax increases are enacted.
Despite repeated calls for extending the lower rates for all taxpayers, the Administration and congressional leaders are advocating extending lower rates only for the bottom three tax brackets – while letting the top two rates revert to 2001 levels. As a result, some manufacturers will face tax rates of almost 40 percent. Small businesses are growing increasingly concerned with these tax increases scheduled for January 1, 2011, and many are delaying expansion and hiring decisions until more clarity is provided.
The individual income tax rates are not the only ones set to increase at the beginning of 2011. Capital gains taxes will increase to 20 percent and dividend tax rates will revert back to the top individual rate of 39.6 percent from the current 15 percent. The lower tax rates on capital gains and dividends help drive economic growth and were instrumental in pulling the economy out of the 2001-2002 recession. Following enactment of the lower rates on investment income in 2003, the economy averaged 3.6 percent annual growth – more than double the pace of the prior three years and faster than the average pace during the previous three decades. However, if they are allowed to expire, manufacturers will be among the first to feel the effects.
Finally, the estate tax, which was temporarily repealed for 2010, will rise to a job-killing 55 percent in January with a $1 million exemption. Small and medium-sized manufacturers spend an average of $94,000 a year to plan for the estate tax, and these costs have increased significantly since the legislation was passed in 2001. It hurts these companies by discouraging savings and investments. The estate tax also reduces wages, stifles job creation and ranks as the leading cause of dissolution of thousands of family-run businesses.
It is clear why many businesses have been reluctant to expand and hire new employees. The scheduled tax increases and uncertainty about how Washington will address this issue makes it nearly impossible for manufacturers to plan. A lack of confidence that policymakers in Washington will act to extend the low tax rates make it even less likely that employers will add jobs in the near future.
As the recession eases, smaller manufacturers will lead our national recovery by acting first to bring back laid-off workers and recruit new employees. Legislation enacted since 2001 to lower tax rates has been extremely helpful to smaller companies, but permanent, lower individual tax rates are needed to revitalize the U.S. economy.
There is a clear choice to be made, and Congress is running out of time. Raising taxes will hurt manufacturers and destroy jobs. Congress needs to act soon to extend the low tax rates so manufacturers and businesses can resume hiring. For more information, contact NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman at dcoleman@nam.org or (202) 637-3077.
NAM-SUPPORTED BUSINESS INVESTMENT INCENTIVE HEADED TO WHITE HOUSE
September 23, 2010 – NAM Capital Briefing
At press time, the House is expected to pass today the earlier Senate-passed version of small business bill H.R. 5297, which has a provision that temporarily extends bonus depreciation through 2010 for all size companies. Specifically, this tax relief will allow faster capital cost recovery of business investments by permitting businesses to immediately write-off in the first year 50 percent of the cost of depreciable property purchased and placed in service in 2010. Also included is an NAM-supported provision to increase Section 179 expensing. The President is expected to sign the bill into law soon.
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