Office of Management and Budget Director Peter Orszag this week floated the possibility that the administration would seek to use the reconciliation process to pass health care reform legislation. This process, which allows for a bill to pass with a simple 51-vote majority in the Senate, is typically used for deficit reduction, but the administration is making the argument that health care reform would lower costs for the federal government and therefore the Senate process is legitimate. A similar proposal to use reconciliation for climate change legislation is under fire from Senate Republicans and moderate Democrats. Senate Budget Chairman Kent Conrad (D-ND) and Ranking Member Judd Gregg (R-NH) have indicated their opposition. Gregg stated this week on the Senate floor, "Using reconciliation in this manner would do fundamental harm to the institution of the Senate." From a political standpoint, bills requiring a supermajority of 60 votes to filibuster proof bills can prove problematic on controversial pieces of legislation. Thus, using the reconciliation process can be considered an end run around the magic number "60."

This week, Printing Industries of America-supported Small Business Coalition for Affordable Healthcare released its mission statement laying out principles for coming health care reform legislation. The coalition seeks increased accessibility and affordability of health insurance for small-business owners, employees, and the self-employed. The mission statement principles include supporting: market-based reforms such as pooling arrangements, tax-based health insurance incentives, and understandable and easy-to-compare health care information for consumers.

The IRS updated two key forms, Forms 1045 and 1139, in order for small businesses to take advantage of the extended net operating loss (NOL) carry back period contained in the American Recovery and Reinvestment Act (ARRA). The ARRA increases the carry back period to five years, but only for businesses with average gross receipts of $15 million or less. Typically, the carry back period is limited to two years.

Twenty-eight senators, including eight Democrats, have signed a letter to Senate Budget Committee Chairman Kent Conrad (D-ND) and Ranking Member Judd Gregg (R-NH) opposing any effort to use the reconciliation process to pass carbon cap and trade legislation. Senate Majority Leader Harry Reid (D-NV) continues to hold out the possibility that reconciliation would be used to overcome a Republican veto. Conrad commented this week, "Reconciliation, I believe was written for deficit reduction." Centrist Sen. Ben Nelson remarked, "I think it is totally inappropriate to use the reconciliation process for something like cap and trade." With little support for using a process that would only require a simple majority vote, Democratic leadership will need the strong support of Republicans and moderate rust belt senators already skeptical of cap and trade proposals.

The White House this week revealed that the true cost of the carbon cap and trade program in the 2010 budget could be more than $2 trillion, or three times the official estimate. The Wall Street Journal reported that the administration revealed this information at a briefing for Senate and House staff soon after the budget was announced. Obama's outline would institute a cap on carbon emissions and create a new market to trade emissions certificates. Profits from the sale of certificates would be used to assist individuals and businesses who would be affected by the increased energy prices that would result under cap and trade. Republicans have responded by calling cap and trade an energy consumption tax on consumers and businesses.

As of February 10, 2009, the CPSIA's new regulations on lead and phthalates in children's products are in effect. While it is important to note that Printing Industries of America and other advocacy organizations were successful in achieving a temporary, one-year relief in testing requirements and that the Consumer Product Safety Commission issued enforcement policy statements saying it would not pursue prosecution of manufacturers of children's books, the overall law itself is in effect. Therefore, there are certain actions a printer must take to remain in compliance. Please see the updated "What to do Now about the CPSIA." For more issue education on the CPSIA and its impact on the printing industry, please visit www.printing.org/cpsia, which contains multiple resources on the issue. Printing Industries of America continues to work toward a full and permanent exemption for children's books and other printed materials from the CPSIA.

The Postal Regulatory Commission this week confirmed the USPS price increases scheduled for May. The price of a first class stamp will increase from 42 cents to 44 cents. Please see the USPS website for details on increases for specific products. This marks the second time that prices have been increased under the new regulations set forth by the Postal Reform bill passed in 2006, which caps postal rates by tying them to the Consumer Product Index in order to prevent what were historically unpredictable and capricious rate hikes.

The Florida House Do Not Mail bill, HB 781, sponsored by Rep. Mary Brandenburg (D) appears to be on hold for now. Brandenburg indicated that she will not request a hearing on the bill and expressed her interest in working with the business community to raise awareness of the options that currently exist to help customers manage their mail. As reported last week, the sponsor of the companion bill in the state Senate, SB 1324, has also indicated that he will not move the bill forward. The Printing Association of Florida, Printing Industries of America, and allies in the Mail Moves America coalition acted quickly to quash the Do Not Mail momentum in that state. Florida is among four states to introduce such legislation in 2009.

This week, Rep. Peter King (NY-3) became the first Republican House member to announce a reversal in his or her position on the Employee Free Choice Act. King, who voted for the bill in the 110^th Congress, announced that he would not do so in the current Congress. Citing the nation's current economic turmoil as a reason that EFCA should not be made law, King stated, "While I am confident we will recover, I believe the road ahead will be long and difficult. Under these conditions, I have concluded that the Employee Free Choice Act would be too severe a shock to our economy at this time and would be counterproductive." A handful of Republican House members bucked party leadership to support the bill, which was considered dead in the water due to President Bush's veto threat. However, President Obama has publicly stated he intends to sign the bill into law should it pass Congress, thus changing the political dynamics of the issue. Two Democrats bucked Speaker Pelosi to oppose EFCA in the last Congress. While the House has a majority of votes to pass the legislation, Printing Industries of America is lobbying as many members of that chamber in both parties as possible to vote "no" should the measure be considered on the House floor.

A Minnesota state court could rule shortly on Sen. Norm Coleman's (R) challenge to the official results of last fall's election. While the ruling has not yet been issued, some Republicans are already encouraging Coleman to take his case as far as the U.S. Supreme Court. Coleman could point to the Court's ruling in Bush v. Gore that found fault with Florida's presidential recount because standards to count ballots varied from county to county. During his case, Coleman argued absentee ballots in Republican-leaning counties were subject to higher standards. An appeal to the Supreme Court could mean that Minnesota will continue to go without a second Senator for months more.

Former Rep. Rob Simmons (R) announced that he will run for the U.S. Senate seat currently held by Sen. Chris Dodd (D). A recent poll showed that Simmons holds a slight lead over Dodd, who chairs the Senate Banking Committee and who this week found himself in the center of controversy surrounding AIG. At this point, the race is expected to be competitive.

Rep. Carol Shea Porter (D) announced that she will not run for Sen. Judd Gregg's (R) Senate seat in 2010, paving the way for Rep. Paul Hodes (D) to run in the Democratic primary unchallenged. New Hampshire is expected to be one of the main battlegrounds in the 2010 races. Gregg has indicated that he will not run for reelection in 2010.

"By getting capital flowing again to small businesses, we will help get the country out of the economic crisis. Washington must focus on small businesses."

- Sen. Mary Landrieu (D-LA)

"Small businesses create 7 out of every 10 jobs in this country and will play a vital role in our economic recovery.  I agree with the President about the need to unlock credit for small businesses, but it is just one part of helping small businesses get back on track."

- Rep. Sam Graves (R-MO)