(Washington, DC) Despite slim voting margins and the unexpected challenges that faced the 107th Congress, the National Restaurant Association achieved several key victories for the restaurant-and-foodservice industry this past Congress. Among the victories achieved: repeal of the Occupational Health and Safety Administration's (OSHA) ergonomics regulation; elimination of the "death" or estate tax; passage of Association Health Plans (AHPs) in the House of Representatives, introduction of the Tip Tax Fairness Act and prevention of a hike in the entry-level wage.
"While this past session of Congress proved very challenging at times, the National Restaurant Association has maintained its excellent record of success. During the 108th Congress, we look forward to working even more closely with the President Bush and Congress to promote our pro-employee/pro-employer legislative priorities during the next session," said Association President and Chief Executive Officer Steven C. Anderson. "High profile victories from the 107th Congress will help to further our legislative agenda and set the stage for increased industry activity during the 108th Congress."
Highlights from the 107th Congress include:
Defeated OSHA Regulations
In a key victory, the Association – a steering committee member of the National Coalition on Ergonomics (NCE) – led the effort to repeal a Clinton-era "ergonomics" regulation. This issue alone would have cost the restaurant industry billions of dollars, according to the Association's estimates, while doing little or nothing to prevent repetitive stress injuries. In April 2002, OSHA announced a comprehensive voluntary plan to address this controversial and complex issue to ensure continued research, outreach to employers on ergonomic issues in the workplace and enforcement where appropriate. The Association has been supportive of this plan and is urging Congress to give this plan an opportunity to work.
Estate Tax
Since most restaurants are family-owned, many restaurateurs often have found themselves spending their hard-earned profits on estate planning to help pay exorbitant taxes, instead of investing in and growing their businesses.
The repeal of the estate tax has long been a priority for the Association and was included in President Bush's tax-relief package, the Economic Growth and Tax Relief Act, which was signed into law in June of 2001. As a steering committee member of the Tax Relief Coalition, the Association played a key role in the enactment of this legislation.
Under the new law, the estate tax provision will be phased out over the next 10 years. However, the provisions are, unfortunately, only temporary and will expire in 2010. Subsequently, the Association played a key role in working with the House and Senate leadership to pass a permanent repeal of this provision. Although successful in the House, the bill failed to garner the necessary 60 votes for passage. The Association will continue it efforts under the new leadership of the 108th Congress.
Health Care Reform–Association Health Plans (AHPs)
The House once again passed AHPs legislation as an amendment to Patients' Bill of Rights, but Congress adjourned for the year without finalizing this legislation.
In 2001, the House of Representatives and the Senate each passed separate versions of patients' rights legislation (H.R. 2563/S. 1052). Both bills included costly employer liability provisions, the Senate bill was slightly more onerous. The House bill, however, included provisions on AHPs, which would have allowed small businesses to group together to purchase health insurance and take advantage of the same uniform regulatory status, economies of scale, purchasing clout, and administrative efficiencies that large corporations enjoy. New coverage options under AHPs would promote greater access, competition and choice, and tough solvency standards to protect patients' and states' rights and ensure that benefits are paid.
Earlier this year, Secretary of Labor Elaine Chao released a report on AHPs stating that the Bush Administration is fully prepared to perform the necessary oversight and certification functions to ensure employees and employers are protected from fraud and abuse. The Association will continue to push for AHPs during the next session.
No Hike in Entry-level Wage
The 107th Congress adjourned without passing an increase in the entry-level wage. Restaurateurs around the country are pleased with Congress' very effective response to the dual economic challenges of September 11 and a recession. The Association leads the Coalition for Job Opportunities, a broad-based group of organizations opposed to federally-mandated wage hikes because they inhibit job creation and are neither pro-employer nor pro-employee.
Economic Stimulus Package
The Association was very supportive of President Bush's efforts to pass an economic stimulus package this year. The Association urged Congress to include in the legislation provisions to help those industries, such as the restaurant industry, that were hit hard in the economic
aftermath of September 11. Association priorities in the final economic stimulus package included:
Accelerated Depreciation – a provision to allow businesses to deduct a larger portion of the cost of certain assets in the first year a business is purchased. The package included a 30-percent bonus depreciation provision for purchases of equipment and for improvements made to leasehold properties.
Work Opportunity Tax Credit (WOTC) – an extension of the WOTC. Congress extended the credit retroactively by two years during this past session.
"The beginning of a new session of Congress provides us with an excellent opportunity to further our legislative priorities," said Association Senior Vice President of Government Affairs and Public Policy Lee Culpepper. "We plan to build on our past victories to promote legislation that will help restaurateurs run their businesses, keep more Americans employed and grow the economy."
For information on the Association's legislative issues, visit www.restaurant.org.
Source: National Restaurant Association |
