NLBMDA ALERT: Health Care Reform

NLBMDA has long worked with a broad-based coalition of business groups to advance health care reform that would lower costs and increase access to quality health care. Unfortunately, the Democratic health care bill introduced in the House of Representatives, "America's Affordable Health Care Choices Act of 2009," (H.R. 3200) is a misguided approach that aims to expand health care coverage through a government-run public plan and costly mandates and taxes on the very small businesses the bill purports to help.

H.R. 3200 is a massive restructuring of the health care system in this country and includes many mandates and additional taxes on employers. The bill will create a public health care option and establish an individual mandate requiring every American to either buy private insurance or buy into the government run plan. If an individual fails to do so then they will be faced with a 2.5% tax on their modified gross income. Employers will be required to provide a payment towards healthcare costs to their workers. The minimum employer contribution in the case of an offering employer is 72.5% of the premium on individual plan and 65% of the premium for family coverage.

The so-called "pay or play" provision requires employers to offer a qualified plan to all employees. What is considered qualified will be determined by the Federal Government and currently the definition of employee appears to include both full and part time workers. If the offered plan does not meet federal standards or the employee opts to enter the public plan, then the employer must pay an 8% tax that will be contributed to the federal healthcare exchange.

This is a major burden for business in the current economic climate. An additional "surtax on the wealthy" that has been proposed to help cover the $1 trillion price tag of H.R.3200 will also impact the many small businesses that pay taxes on their individual tax returns. The surtax will begin for couples with a modified adjusted gross income of $350,000, and is expected to raise $554 billion, or half the total costs of the Democratic plan. Data from the Joint Committee on Taxation, however, says that at least 55% of the revenue raised by increasing the top two tax rates will come from small business income.

Take Action: The House may vote on H.R. 3200 this week before the August Congressional recess. NLBMDA and many of our federated state and regional associations have signed on to a coalition letter today to the Hill expressing our strong opposition to employer mandates and tax increases. Contact your Representatives today to urge them to oppose H.R. 3200 and work instead for real reform that cuts cost and improves competition in the health care system. You can quickly email your member of Congress through NLBMDA's Build the Vote website. Health care reform that increases costs for small businesses is a risky move that threatens our economic recovery.

From NLBMDA Legislative Affairs Federal

NLBMDA Participates in Congressional Health Care Roundtable

With health care reform the next priority on the new Administration's "to do" list, debate is heating up on Capitol Hill. Half a dozen hearings have been held in the committees of jurisdiction over various aspects of the plan, and NLBMDA Director of Government Affairs Colleen Levine participated in a House Small Business Committee Democratic Roundtable on health care reform last week. Levine and other participants, including representatives from the National Retail Federation, National Association of Realtors, National Roofing Contractors Association and other industry and medical organizations, urged support for market-based reforms that increase competition and lower costs without imposing costly mandates on already struggling business owners. Read more.

Federal Budget Outline Passes Congress without Estate Tax Relief

The final House-Senate compromise on the FY2010 budget resolution passed last week on a largely party-line vote. Unfortunately, the Lincoln-Kyl estate tax relief included in the Senate-passed version was stripped from the final bill. Read more.

Specter Switch Encourages Card Check Supporters

While Sen. Arlen Specter's dramatic move to the Democratic party was coupled with a pledge to continue to oppose the Employee Free Choice Act, the switch gave new life to compromise efforts as labor continues to press for the 60 votes they need in the Senate. Read more.

Mortgage Cramdown Bill Defeated

A scaled-down mortgage "cramdown" amendment by Sen. Richard Durbin (D-IL) to a housing finance bill, which would have allowed bankruptcy judges to modify certain mortgages on primary residences issued prior to Jan. 1, 2009, failed in the Senate last week by a vote of 45 to 51. Read more.

NLBMDA News - Legislative Affairs

From the National Lumber and Building Materials Dealer Association

Legislative Affairs

Recess Is Over
Members of Congress return to Washington today with a daunting agenda planned between now and the summer breaks. Both the House and the Senate passed FY2010 budget resolutions before the break, which must now be reconciled into a final version. NLBMDA is hopeful that the final resolution will contain the Senate-passed allowance for the estate tax ($5 million exemption and 35 percent rate) but such relief would still have to overcome a likely Senate filibuster with at least 60 votes in support. Both Chambers will be taking up climate legislation with a goal of final passage by the August recess. Card check proponents were active over the spring break but still face a challenge in reaching the 60 votes they need to move forward. NLBMDA and the business community must remain vigilant in informing legislators of the dangers of this legislation, or any so-called compromises, that effectively strip workers of their right to a secret ballot election to determine union representation.

TAKE ACTION: Tell your Representative and Senators to reject card check legislation that would further jeopardize jobs and our economic recovery. Visit Build the Vote and follow the prompts to quickly send an e-mail message today.

Bill Targeting Chinese Drywall Introduced
Senators Ben Nelson (D-FL) and Mary Landrieu (D-LA) have taken further steps to address the Chinese drywall investigations currently underway in Florida and other states. Together with Rep. Robert Wexler (D-FL), they have introduced the "Drywall Safety Act" (S. 793/H.R. 1977) to require the Consumer Product Safety Commission (CPSC) to study drywall imported from China in 2004 through 2007 and call for a ban on the import of Chinese drywall and "related materials." Dealers with questions or concerns should contact Colleen Levine at colleen@dealer.org.

Softwood Lumber Tariffs Increased
In response to an arbitration panel's finding that Canada failed to correctly adjust quotas from four provinces in the first half of 2007, as required under the Softwood Lumber Agreement, the US Trade Representative's (USTR) office last week announced an additional 10 percent tariff would be imposed on softwood lumber exports from Ontario, Quebec, Manitoba, and Saskatchewan. USTR is accepting comments on the appropriateness of this action; comments are due May 11. Please contact Colleen Levine at colleen@dealer.org if you have any feedback NLBMDA should consider in drafting comments.

Senate Committee Drafting Health Care Bill
Senate Finance Committee Chair Max Baucus (D-MT) and Health, Labor and Pensions Committee Chair Ted Kennedy (D-MA) recently outlined their plans for advancing major health care overhaul legislation this spring. The two committees are currently working to draft separate bills which will later be combined before a Senate floor vote. Committee markups of the draft bills are targeted for early summer.