AED Washington Insights Newsletter
August 2010
Prepared by Christian A. Klein, AED Vice President of Government Affairs
and the AED Washington team
In this Issue:
Start Us Up USA! Launches Infrastructure Campaign Pledge
Last week, AED and the Association of Equipment Manufacturers (AEM) launched an unprecedented effort to get U.S. House and Senate candidates from across the country to commit to making surface transportation and water infrastructure investment a top priority in the next Congress.
The infrastructure pledge effort is part of Start Us Up USA!, AED's and AEM's national grassroots campaign. Start Us Up USA! will send the pledge to every candidate for the U.S. House and Senate. The pledge gives them the opportunity to publicly commit to supporting robust federal investment in surface transportation and water infrastructure programs if elected. Such programs would create jobs, spur economic growth, ensure the country's global competitiveness, protect public safety and the environment, and create a better quality of life for every American.
"The next Congress must lay a solid foundation for America's growth and economic future, while creating a cleaner environment and a better quality of life for all. Support for America's infrastructure not only brings a bounty of long-term rewards, but yields immediate benefit by jump-starting a struggling economy and creating much needed jobs," said AED President and CEO Toby Mack.
"The pledge communicates to candidates that we need action now on building needed infrastructure and boosting job creation. Candidates for the 112th Congress must take the opportunity to demonstrate their commitment to building America's future by signing the pledge. Those seeking to serve through higher office must lead the way in securing sorely needed investments for our roads, bridges, and water systems," said AEM President Dennis Slater.
As candidates sign and return the pledge, their names will be added to a growing list of leaders who recognize that America's future prosperity is directly tied to a modern infrastructure system.
AED members should use the pledge as a tool to engage with candidates about the need for a new multiyear highway bill. Visit www.AEDaction.org to send your candidates a quick message asking them to sign.
For a complete list of signatories and more information about this effort, visit http://www.startusupusa.com/campaign_pledge.cfm.
[ TOP ]
|
AED PAC Making an ImPACt
There is a lot at stake in the 2010 congressional elections, and AED members around the country are working to elect a pro-infrastructure, pro-growth majority to shape the congressional agenda for the next two years.
Fortunately, even during these unprecedented economic times, support for AED PAC has remained strong. As a result, AED members are hosting ImPACt events across the country for incumbent, challenger, and open seat candidates who understand our industry and the need for infrastructure investment and pro-growth tax policies.
The AED members who have contributed to AED PAC this year are listed below. Only executives and owners of AED distributor member companies who have given solicitation consent in accordance with the Federal Election Campaign Act are eligible to support AED PAC. For more information, contact AED Vice President of Government Affairs Christian Klein at 703.739.9513 or caklein@aednet.org.
2010 PAC Contributors
President's Circle ($5,000)
James E. Stephenson, Yancey Bros. Co.
Donna Y. Stephenson, Yancey Bros. Co.
Kenneth Taylor, Ohio CAT
Chairman's Caucus ($2,500)
Donald Chambers, Unified Equipment Resources
Tom Kirchhoff, Cleveland Brothers Equipment Co., Inc.
Dale Leppo, Leppo Rents/Bobcat of Akron
Wes Stowers, Stowers Machinery Corporation
Gerald Tracey, Tracey Road Equipment
Capitol Club ($1,000)
Diane M. Benck, West Side Tractor
Walter Berry, Berry Companies, Inc.
Craig Burkert, ROMCO Equipment Co.
Paul Campbell, Wheeler Machinery
Robert B. Campbell, Wheeler Machinery
Charles F. Clarkson, ROMCO Equipment Co.
C.E. Thomas Cleveland, H.O. Penn Machinery & Supply Co.
Robert Cleveland, H.O. Penn Machinery Supply Co.
James Cowin, Cowin Equipment Company, Inc.
Rick Dahl, Metrolift, Inc.
R. Christopher Gaylor, Power Equipment Co.
Lawrence F. Glynn, CMW Equipment
Dennis J. Heller, Stephenson Equipment, Inc.
Robert G. Mullins, ROMCO Equipment Co.
Robert O. Mullins, ROMCO Equipment Co.
Joseph A. Paradis, III, Brandeis Machinery & Supply Co.
Rick Piper, Unified Equipment Resources
Michael Quirk, Wagner Equipment Co.
William Reardon, Unified Equipment Resources
Alvin Richer, Arnold Machinery Co.
John Riggs, IV, J.A. Riggs Tractor Co.
Washington Team ($500)
Michael Brennan, Brandeis Machinery & Supply Co.
Gayle Humphries, Unified Equipment Resources
Other
Becky Partin, Unified Equipment Resources
Fred Berry, Berry Companies, Inc.
[ TOP ]
|
Senate Set to Consider Small Business Bill after August Recess
Legislation aimed at aiding small businesses will return to the forefront of the congressional calendar when the Senate returns to work after the August recess. Despite repeated failures to pass the Small Business Jobs and Credit Act (H.R. 5297), the bill remains a top priority for Senate Democrats and the Obama administration.
While debates over procedure and deficits have led to delay in passage of the legislation, Democratic leaders see some hope for the measure. There is widespread bipartisan support for many of the provisions in H.R. 5297. Among the popular items in the bill are the reinstatement of the depreciation bonus for 2010 (a top AED priority), modification of onerous IRS 1099 reporting requirements enacted in the health care law, a 100 percent exclusion of capital gains from the sale of certain small-business stock held for more than five years, and the creation of a $30 billion small businesses lending fund.
Senate Majority Leader Harry Reid (D-NV) has already committed to bring the bill back to the floor when the Senate returns to Capitol Hill in mid-September. However, its future is up in the air. Lawmakers must forge a bipartisan compromise to move the bill forward, a task complicated by the rapidly approaching elections. While Republicans want to limit Democrats' chances of a legislative success, they face a strong incentive to compromise due to the legislation's perceived benefits for small businesses.
AED supports several provisions in the legislation and continues to lead an ad-hoc coalition of business groups advocating for reinstatement of the depreciation bonus for 2010. Additionally, we recently joined hundreds of businesses and associations encouraging the repeal of the health care law's tedious 1099 reporting requirements. The provision, which goes into effect in 2012, will subject businesses to data collection and IRS filing burdens on virtually all non-credit card purchases totaling $600 or more with any vendor in a tax year.
It is critical that your representatives hear directly from you about the positive impact the depreciation bonus will have on your business. To weigh in with your members of Congress in support of the depreciation bonus and the small business lending bill visit, www.aedaction.org.
[ TOP ]
|
OSHA Unveils New Crane Rules
The Occupational Safety and Health Administration (OSHA) released a long-anticipated final rule for the use of cranes and derricks in construction projects this month. This final rule addresses advances in the designs of cranes and derricks, related hazards, and the qualifications of employees needed to operate them safely.
Under the regulation, employers must ensure the safety of the crane and derricks and determine whether the ground is sufficient to support the anticipated weight of hoisting equipment and associated loads. The employer is then required to assess hazards within the work zone that would affect the safe operation of hoisting equipment, such as those of power lines and objects or personnel that would be within the work zone or swing radius of the hoisting equipment. Finally, the employer is required to ensure that the equipment is in safe operating condition via required inspections and that employees in the work zone are trained to recognize hazards associated with the use of the crane.
With regards to training and qualifications of workers, contractors must:
- Pay for certification or qualification of their currently uncertified or unqualified operators
- Administer written certification tests in any language understood by the operator candidate
- Use a qualified rigger for rigging operations during assembly/disassembly
The rule applies to most equipment used in construction that can hoist, lower, and horizontally move a suspended load, but excludes some equipment, including: automotive or mechanics trucks with hoisting capabilities; power shovels, excavators, loaders; machinery converted to non-lifting use; digger derricks; gantry systems; tree trimming and removal equipment; stacker cranes; and machinery that hoists using a come-a-long or chainfall. The full scope of the rule is set forth at 29 CFR § 1926.1400, page 232, sub-part CC.
AED's early analysis of the more-than-200 page regulation is that the rule only applies to cranes and derricks on construction sites. However, OSHA is expected to issue guidance in the coming weeks; standby for further analysis.
In the meantime, for more information on crane, hoist, and derrick safety, visit OSHA's website.
[ TOP ]
|
House Unanimously Approves Drinking Water SRF Bill
Before adjourning for August congressional recess the House, by voice vote, passed the Assistance, Quality and Affordability (AQUA) Act (H.R. 5320), which would reauthorize and increase funding for the Drinking Water State Revolving Fund (SRF). The legislation approves $4.8 billion over three years for the drinking water construction programs.
The Drinking Water SRF has not been reauthorized in 14 years. AED estimates that the legislation would translate to over $576 million in potential market opportunity for equipment distributors. The House already enacted a Clean Water SRF reauthorization bill early last spring.
Meanwhile, bipartisan legislation to reauthorize both the Drinking Water SRF and the Clean Water SRF remains stalled in the Senate. The Water Infrastructure Financing Act (S. 1005) would authorize $14.7 billion for the Drinking Water SRF and $20 billion for the Clean Water SRF over the next five years.
Unfortunately, S. 1005 has been held up on the Senate floor due to the Davis-Bacon provision and issues related to the formula used to determine the allocation of SRF funding between the states. Urge your senators to enact water infrastructure legislation this year.
[ TOP ]
|
LIFO Repeal Resurfaces in House
New legislation introduced by Rep. Dan Maffei (D-NY) shows why the equipment industry must remain vigilant against efforts to repeal the last-in, first-out (LIFO) accounting method.
Maffei recently introduced the American Business Competitiveness Act (H.R. 5962). The bill would lower the corporate tax rate to 23 percent and make increased Sec. 179 expensing levels permanent. However, the lost revenues to the Treasury would be offset by repealing LIFO and making other changes to the tax code.
The bill isn't going anywhere this Congress (Maffei is a first-term Democrat and isn't even a member of the tax-writing House Ways & Means Committee), but it is a hint of a coming comprehensive tax reform debate.
For now, let's keep up the drumbeat and remind members of both parties that repealing LIFO would be devastating to small businesses that use it to mitigate the impact of inflation. Tell your representatives to protect a long-accepted accounting method and oppose LIFO repeal.
[ TOP ]
|
Oberstar Introduces New Water Resources and Development Act
In the flurry of pre-recess activity, House Transportation & Infrastructure (T&I) Committee Chairman James Oberstar (D-MN) and other senior committee members introduced the Water Resources Development Act (WRDA) of 2010 (H.R. 5892). In addition to providing much-needed funding for dam and levee construction, the measure would generate hundreds of millions of dollars in equipment spending.
Unfortunately, given the few legislative days left, Congress is unlikely to consider the bill this year. For more information on WRDA, click here to view a summary from the T&I committee.
[ TOP ]
|
INED hosts leading IA politicians, receives AED Founders Award
The Iowa-Nebraska Equipment Distributors held its annual meeting in Des Moines on Aug. 12. The agenda included an ImPACt 2010 AED PAC check delivery meeting with Senate Finance Committee Ranking Member Charles Grassley (R-IA), and presentations by Iowa Governor Chet Culver (D) and former governor and current gubernatorial candidate Terry Branstad (R).
As part of the meeting, AED Vice President of Government Affairs Christian Klein updated members on recent developments on Capitol Hill. AED President Toby Mack and Executive Vice President Robert Henderson were also on hand to present AED's Founders Award to INED in recognition of the group's outstanding record of political and legislative activism.
[ TOP ]
|
|
Home