The Legislative Action Network brings its members the latest news from Capitol Hill each week Congress is in session. Capitol Insight, L.A.N.'s Grassroots E-Newsletter, provides the best Capitol Hill insider news available. From L.A.N. Action and Call Alerts to the latest on fast-moving legislation, it's in Capitol Insight. Join the L.A.N. to begin receiving Capitol Insight - dealers and dealership employees are welcome as well.
District Work Period Set to Begin
Many in Congress will be homeward bound this weekend. The House of Representatives will adjourn today for their August District Work Period. Next week the Senate will follow suit and head home for their State Work Period. Both chambers are currently scheduled to return to D.C. on September 13th for one more stretch of legislative activity before they return back home to campaign for the November elections.
Capitol Insight has prepared a run down on where key legislative issues stand before the summer adjournments. Take a minute to read up on the issues and AIADA's position so that you are prepared to discuss them with friends, employees, or even your Member of Congress should you have the chance.
Speical Note: Capitol Insight will not be published while Members of Congress are back home in their states and districts. Our next issue will be September 17th.
SMALL BUSINESS ADMINISTRATION LENDING UPDATE
The Senate, once again this week, was unable to reach an agreement on H.R. 5297, the Small Business Jobs and Credit Act of 2010. Included in the base text of the legislation is the increase in the maximum loan size from 2 million to 5 million and an extension of the 90 percent loan guarantee and borrower fee reductions - making the Small Business Administration's 7(a) loan program more accessible to auto dealers. Current negotiations are focusing on the amendment process and exactly which amendments will be able to proceed to the floor for debate. On Thursday of this week, the bill was once again unable to meet the 60 vote threshold needed to invoke cloture and move onto debate. AIADA supports H.R. 5297 because of the inclusion of language to make SBA 7(a) loans a more viable option to dealers. Click here to see our most recent Access to Credit Coalition letter to the Senate.
DEATH TAX UPDATE
There was no compromise legislation on the estate tax to make it to either the House of the Senate floor before the summer work period began. One amendment that Republicans wanted to vote on and include in the Small Business Jobs Act was an estate tax amendment to phase-in a $5 million exemption and phase-down the tax rate to 35 percent over ten years. The compromise estate tax language was authored by Senators Blanche Lincoln (D-Ark) and Jon Kyl (R-Ariz) who have tried to attach the compromise to various bills being debated on the Senate floor. AIADA supports a permanent solution that would help family-owned dealerships effectively plan for transition periods.
CARD CHECK UPDATE
While there has been no effort to pass the Employee Free Choice Act (EFCA) in the Senate, L.A.N. activists need to know that that the issue has not been forgotten. This legislation is ready and able to move at any point - forcing a card-check system and mandatory binding arbitration upon dealers and business across the country. Keep in mind the comment from Senator Tom Harkin (D-Iowa) just one month ago in an appearance on the Bill Press radio show. Harkin said, "To those who think it's dead, I say think again." AIADA opposes EFCA.
GLOBAL TRADE UPDATE
Trade continues to be a hot topic of conversation in D.C., both on Capitol Hill and in the Administration. While no specific date has been set to either renegotiate or to consider the current Korea - U.S. Free Trade Agreement (KORUS FTA) speculation is high on just how a positive vote on the legislation can move forward.
In other trade news, recently, House Majority Leader Steny Hoyer (D-Md) and fellow democrats unveiled an agenda to highlight legislation that endorses manufacturing in America. The "Make it in America" initiative includes a focus on creating jobs to boost the economy and urges President Obama to create a manufacturing strategy. "When more goods are made in America," Hoyer said, "more middle-class families will be able to make it in America." Make sure you know all there is to know on international auto manufacturing details here in the United States. Read former AIADA Chairman Russ Darrow's blog about American manufacturing of international nameplate vehicles here.
MOTOR VEHICLE SAFETY ACT UPDATE
As reported in last week's Capitol Insight, the Motor Vehicle Safety Act remains on hold. While discussions continue on how to move the legislation to the floor of both the House and the Senate, a clear path has not been laid out. To see the letter, which fully outlines the industry positions, please click here. AIADA remains committed to working with the House and the Senate as they pursue legislation to address the motor vehicle recall process and is dedicated to make the sure the dealer's voice is heard.
EXPIRING TAX CUTS UPDATE
The expiring Bush-era tax cuts - an issue affecting everyone - will be a front burner issue as Members of Congress return to D.C. in September. Currently there is a long list of taxes that are set to expire on December 31, 2010. President Obama is on record stating he wants to extend the tax cuts only for the middle class. There are those in his own party that agree with him and then there are those who want to extend the middle class tax breaks for a short period. Next there are the Republicans and a handful of Democrats that want to extend all the expiring tax cut provisions. So you can see why this issue continues to be negotiated with no solution in clear sight. Included on the list of expiring provisions are income tax levels, dividends and capital gains tax, along with the estate tax and the child tax credit. Stay tuned, AIADA will keep you posted on the developments.
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