Public Policy Initiatives
PTDA relies on its memberships in the National Association of
Wholesaler-Distributors (NAW) and National Association of Manufacturers
(NAM) to fulfill all public policy and government relations
functions.
Through these organizations, PTDA is active in supporting efforts to
pass or amend legislation to address the following priority
issues. Click on a link for a particular issue:
Research and Development Credit
Manufacturers perform nearly two-thirds of all private research and
development in the United States, with nearly 16,000 companies using the
research and development tax credit. A strengthened credit will
ensure that all companies performing significant research and
development in the United States benefit.
Status: The temporary credit expired on Dec. 31,
2005. NAM seeks to extend the credit.
MORE
Comprehensive Energy Strategy
The U.S. Senate and House of Representatives enacted the Energy
Policy Act on Aug. 8, 2005 which works to increase supplies of reliable,
affordable and renewable energy; provide incentives to improve energy
infrastructure; and promote efficiency and conservation.
Status: Energy Policy Act enacted in 2005.
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Medical Liability Reform
Unlimited damage awards, the rising cost of medical liability
insurance and wasteful defensive medical practices contribute to the
rising cost of health coverage and reduce the availability of doctors
and other health care services. Medical liability reform will
improve patient access to health care services and lower health care
costs.
Status: The U.S. House of Representatives advanced
several significant portions of NAM's health care agenda in July
2005.
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Undervalued Chinese Currency/Currency
Manipulation
In 1994, China devalued its currency by approximately 30 percent and
maintained that value for over ten years, despite a huge increase in
production capability and quality, productivity, foreign direct
investment and other factors that normally would be expected to cause a
currency to appreciate. This currency undervaluation has had a
significant effect on the U.S. trade deficit with China, which was
approximately $200 billion in 2005.
Status: Modest
progress has been made with China. In July 2005, China said
it would no longer base its currency to the dollar, but to a basket of
currencies, and raised the yuan's value 2.1 percent.
MORE
Asbestos Litigation
Nearly 70 companies have gone into bankruptcy due to asbestos
liability, abolishing 60,000 jobs, pensions and 401(k)s, and bringing
8,400 companies into court, at a cost of $343 billion to the U.S.
economy. NAM seeks a congressional solution providing sensible
reforms.
Status: The Fairness in Asbestos Injury Resolution
(FAIR) Act awaits a Senate vote in early 2006.
MORE
Permanent Estate Tax Repeal
Unless the estate tax bill is fully repealed or a compromise is made,
under current law, the tax will phase out in 2010, then return to
pre-tax-cut levels in 2011.
Status: The bill was passed in the U.S. House of
Representatives in April 2005 and now will go to the Senate for
vote.
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Association Health Plans
The association health plans (AHP) bill would allow bona-fide trade
associations to offer health care coverage to members across
state lines and without state benefit mandates, private coverage more
affordable.
Status: The bill was defeated in the U.S. Senate on
May 12, 2006.
MORE
Inside Sales Overtime Rules Reform
On April 23, 2004, the Department of Labor (DOL) issued final
regulations under the Fair Labor Standards Act (FLSA) implementing new,
updated regulations covering exemption from minimum wage and overtime
pay for executive, administrative, professional, outside sales and
computer employees. Unfortunately, the new rules do not remedy
that inside sales are classified as non-exempt.
Status: Congress needs to amend the FLSA to grant
the Labor Department the authority to promulgate regulations concerning
inside sales personnel. NAW continues to actively pursue
legislation to provide reform.
MORE
Ergonomics Standards
Rather than issuing federal legislation to address ergonomic
issues in the workplace that would have been costly for businesses to
implement, the Department of Labor (DOL) has issued a comprehensive
four-pronged approach that focuses on highly hazardous
industries. OSHA’s guidelines are being used in nursing
home, retail grocery and poultry processing industries under the OSHA
Act’s general duty clause.
Status: Ergonomics issues are currently being
monitored.
MORE
Abolition of Capital Gains Tax
Legislation enacted in 1997 lowered the top rate on individual
capital gains from 28 percent to 20 percent. In May 2003, the top
tax rate on individual capital gains was lowered to 15 percent.
NAM supports similar permanent reductions in capital gains tax rates for
corporations and is lobbying to extend or make these cuts
permanent.
Status: Congress has yet to act in
2006, but the outlook for an extension looks promising.
MORE
Lawsuit Abuse Reform
The U.S. House of Representatives passed the Lawsuit Abuse Reduction
Act of 2005 (LARA),on Oct. 27, 2005. LARA will deter the filing of
“junk” lawsuits by sanctioning lawyers that bring them and
also properly limiting the filing of personal injury claims to places
where plaintiffs live or were hurt, or in the jurisdiction of the
defendant’s principal place of business.
Status: Lawsuit Abuse Reduction Act enacted in
2005.
MORE
LIFO Repeal
The U.S. Senate Finance
Committee recently has threatened to repeal the last-in, first-out
(LIFO) inventory and accounting method. The repeal would change a
70-year old GAAP approved accounting procedure that dominates the
distribution industry.
Status: In June, an accounting
professor provided an inaccurate testimony in front of the Finance
Committee criticizing LIFO. PTDA members are
encouraged to take action against this testimony and the proposed
repeal.
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