October 6, 2011

RETAILERS SEE SOLID GAINS IN SEPTEMBER

Today in Manufacturing
Retailers are reporting strong revenue gains for September, capping a solid back-to-school shopping season ... continue

MORE SOUGHT UNEMPLOYMENT AID LAST WEEK
Today in Manufacturing
The number of people who applied for unemployment benefits rose by 6,000 the last week in September, a sign that the job market remains weak ... continue

THE ART OF CUTTING COSTS, WHILE GROWING REVENUES
Quick Manufacturing News
A recent study of executives found that while they expected their company to grow at a rate equal to or significantly greater than most economic growth forecasts, they have embarked on a renewed focus on cost-cutting. Click to continue

GOVERNOR HERBERT: "LET'S SEE IF WE CAN HIRE 100,000 NEW PEOPLE OVER THE NEXT 1,000 DAYS."

On September 20, Governor Gary Herbert announced a plan to accelerate support of the private sector in creating 100,000 new jobs in 1,000 days. The plan focuses recruiting new companies to the state, reducing taxes on business expansion, increasing access to capital for small and startup businesses, doubling Utah exports in the next five years, and more.

Click here for more information

AFTER FOUR YEARS, HOUSE TO VOTE ON FREE TRADE AGREEMENTS
NAM Capital Briefing
President Obama sent the pending free trade agreements (FTAs) with Colombia, Panama and South Korea to Congress on Monday, October 3. The House Ways and Means Committee marked up the legislation this week, and the full House will vote on each of the three agreements on October 12. The three agreements are protected by Trade Promotion Authority (TPA), so they cannot be amended. Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) have both indicated that they plan to move the three FTAs quickly once the House approves the agreements. The House will also vote next week on extending some Trade Adjustment Assistance (TAA) programs, which the Senate passed in the last week of September and the Administration has made contingent upon transmission of the FTAs. The NAM is a strong supporter of the three FTAs and TAA and continues to work with member companies to ensure Congress votes to pass all four bills. Click here to read NAM President and CEO Jay Timmons' Politico op-ed on the pending agreements.

NLRB DELAYS POSTING REQUIREMENT RULE FOLLOWING NAM LAWSUIT
NAM Capital Briefing
On Wednesday, October 5, during a status conference in the U.S. District Court for the District of Columbia, the National Labor Relations Board (NLRB) announced it would voluntarily delay implementation of its "posting requirement" rule until January 31, 2012. This announcement follows the NAM's lawsuit on the rule. On September 8, the NAM was the first to file suit against the NLRB, arguing that requiring all employers to post a notice of employees' rights to unionize is outside the Board's authority under the National Labor Relations Act and is in violation of the Administrative Procedure Act. The rule was slated to go into effect on November 14. The decision to delay gives the Court time to adjudicate the complaint filed by the NAM. The Court also set December 19 for a hearing on summary judgment motions. A decision will be rendered before the new effective date of January 31.

HOUSE BILL DEFENDS EMPLOYERS' RIGHTS
NAM Capital Briefing
On Wednesday, October 5, House Education and Workforce Committee Chairman John Kline (R-MN) introduced the Workforce Democracy and Fairness Act (H.R. 3094), addressing the NLRB's proposed rule on ambush elections and the agency's decision in the Specialty Healthcare case. The legislation guarantees an employer's ability to participate in a fair union election process by establishing a 14-day timeframe for an employer to prepare a case to be heard by the NLRB. It also ensures employees are able to make fully informed decisions by providing that no union election will be held in less than 35 days; re-establishes decades of law by reinstating the standard by which employees vote in union elections; prevents the possibility of several "micro-unions" at one facility; and allows employees to choose the type of personal contact information that is provided to a union.

MANUFACTURERS FILE PETITION ON EPA'S CROSS-STATE AIR POLLUTION RULE
NAM Capital Briefing
On Wednesday, October 5, the NAM petitioned the Environmental Protection Agency (EPA) to reconsider and administratively stay the Cross-State Air Pollution Rule (CSAPR), which requires power plants in 27 states to reduce emissions of sulfur dioxide and nitrous oxide. The EPA estimates that the final rule will cost close to $2.4 billion annually, and some utilities have already indicated they will close certain facilities because of the rule's strict emissions limits. Manufacturers are concerned that this rule will raise energy costs and compromise grid reliability, causing additional uncertainty and potential job losses in a tough economy. To prevent significant harm to the manufacturing sector, the NAM is arguing that the EPA should immediately stay and reconsider the rule.

TAX RATE ON CAPITAL GAINS AND DIVIDENDS SHOULD BE PERMANENT
NAM Capital Briefing
On Wednesday, October 5, manufacturers sent a letter to Sen. Mike Crapo (R-ID) and Rep. Peter Roskam (R-IL) thanking them for introducing legislation to make the current 15-percent tax rate on capital gains and dividends permanent (S. 1647/H.R. 3091). Keeping these rates low is critical. Corporate profits in the U.S. are already subject to double taxation—first under the corporate income tax and again under the individual income tax system when the profits are received. Reducing these taxes to 15 percent has helped mitigate this double burden. Without congressional action in 2013, the tax on capital gains is set to increase from 15 percent to 20 percent and the maximum tax rate on dividends will escalate from 15 percent to 39.6 percent. Numerous studies have demonstrated that higher tax rates result in reduced investment and capital formation and that the burden of higher taxes largely falls on workers through lower wages. The NAM has strongly supported the 15-percent rate for both capital gains and dividends and calls upon Congress to consider these bills to make this current tax treatment permanent.

SENATORS URGED TO COSPONSOR R&D CREDIT BILL
NAM Capital Briefing
The R&D Credit Coalition leadership, including the NAM, signed a letter sent Tuesday, October 4, urging senators to cosponsor the bipartisan Greater Research Opportunities with Tax Help (GROWTH) Act (S. 1577), which would simplify, strengthen and make permanent the research and development (R&D) credit. The bill would repeal the regular credit formula, strengthen the alternative simplified credit formula to 20 percent from its current 14 percent rate and make it permanent. A similar bill, H.R. 942, was introduced by Reps. Kevin Brady (R-TX) and John Larson (D-CT) earlier this year.

NAM OPPOSES EPA COMPLIANCE ORDER
NAM Capital Briefing
Several federal courts have denied manufacturers and landowners the right to challenge Environmental Protection Agency (EPA) environmental compliance orders in court. The Supreme Court will soon decide whether such unreviewable orders violate due process and Administrative Procedure Act requirements. The NAM filed an amicus brief Monday, October 3, in the Sackett case, arguing that this power essentially coerces alleged violators into compliance and immediately deprives them of substantial property rights. In addition, requiring the EPA to provide a pre-enforcement hearing is a minimal cost to protect constitutional rights.