In addition to the major controversial provisions being debated in the comprehensive health care reform push, another concern to employers is on the table: how to address temporary workers in the requirements for "shared responsibility" (i.e., employer obligations). Under committee legislation passed in the House and Senate, all but the smallest employers would be required to pay a fee for not offering mandated health insurance to "full-time" workers. However, the bill defines "full-time" as 30 hours per week but does not define how many weeks per year these employees would have to work in order to qualify for insurance coverage. Sen. Maria Cantwell (D-WA) is pushing a provision backed by the retail and restaurant industry that would define full-time employees as those working at least 30 hours over the course of a calendar quarter. Also at issue is whether a 90-day waiting period for health insurance would be allowed; no grace period is written into versions of health care reform as of now. Printing Industries of America members concerned with the temporary worker issue should weigh in with their Senators and urge inclusion of the Cantwell provision into a final legislative package.

President Obama this week extended the economic recovery theme to small business and made remarks at a Maryland small business. The President announced a plan to ease the small business credit crunch. Specifically, he called for an expansion of Small Business Administration (SBA) loan programs, under which the U.S. Department of Treasury would purchase up to $15 billion of SBA loans through the Troubled Asset Relief Program (TARP). The government would immediately unfreeze the secondary market for SBA loans and increase the liquidity of community banks, allowing them to sell those loans. He also called for reducing to zero the capital gains tax for investments in a small or startup business, health insurance tax credits, and other measures. Printing Industries of America welcome the President's interest in small business tax policy that would ease the credit crunch and spur job creation for the nation's small printers.

Thursday, Rep. Shelley Berkley (D-NV), joined by Rep. Kevin Brady (R-TX), Devin Nunes (R-CA), and Artur Davis (D-AL), introduced a bipartisan compromise estate tax bill that creates permanent relief for family businesses. The bill, the Estate Tax Relief Act of 2009, establishes a phase-in of a $5 million estate tax exemption in 10 years and a phase-out of the tax to 35 percent in 10 years. Specifically, the phase-in starts at $3.5 million in 2009 and increases by $150,000 each year until 2019 when the exemption becomes $5 million. The phase-out of the tax works the same way: decreasing from 45 percent to 35 percent by 1 percent increments from 2009 to 2019. The bill maintains step up in basis and is indexed for inflation after 2019. This compromise legislation is preferable compared to proposals floated by the Administration and Democratic leadership which would freeze 2009 estate tax levels ($3.5 million exemption; 45 percent) for one to three years. Printing Industries continues to work with Senate estate tax champions, Sens. Blanche Lincoln (D-AR) and Jon Kyl (R-AZ), as they prepare to introduce legislation later this fall.

Majority Leader Harry Reid (D-NV) and Finance Chairman Max Baucus (D-MO) are considering adding a four-year net operating loss (NOL) carry-back provision to the unemployment insurance extension, in an attempt to gain Republican support for the measure. The provision would enable unprofitable companies to obtain immediate cash refunds on taxes they paid over the prior four years, instead of the usual two years, but only for 2008 NOLs or 2009 NOLs (not both years). The draft amendment is a scaled back version of NOL carry-back relief compared to Printing Industries-supported NOL legislation (S. 823/H.R. 2452). The House-passed unemployment insurance legislation does not include NOL relief, and the Senate version is slated for floor consideration next week. As Congress continues to discuss different versions of NOL amendments, Printing Industries will continue to advocate for a five-year NOL carry-back for both 2008 and 2009 NOLs for all companies.

Sens. Barbara Boxer (D-CA) and John Kerry (D-MA) are expected to unveil more details of their climate change bill, including provisions addressing coal state concerns and what formula would be used to allocate emissions credits to businesses, such as printing facilities, along with an initial Environmental Protection Agency (EPA) economic analysis. Both Boxer and Kerry indicated they expected the EPA assessment to bode well for their bill. Meanwhile, GOP Senator Lindsay Graham (R-SC) made news last week as he announced he will partner with his colleagues across the aisle to support the Boxer/Kerry effort. Five committees in the Senate have jurisdiction over the climate change issue; of the five, only Boxer's committee has indicated it will mark up the bill this year. Kerry had planned to meet with Majority Leader Reid today to urge other committees to move aggressively to act by Thanksgiving, but the meeting was cancelled after Kerry was invited to join President Obama at an environmental speech at Massachusetts Institute of Technology.

Postmaster John E. Potter announced last week that the USPS would not increase postal rates on market-dominant products in 2010. According to Potter, "We want mailers to continue to invest in mail to grow their business, communicate with valued customers and maintain a strong presence in the marketplace." He added, "We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing."

Printing Industries of America this week joined other allied trade associations in writing the Senate to oppose the nomination of Craig Becker to become a Member of the National Labor Relations Board (NLRB). This letter notes that many of the positions Mr. Becker has taken on the role of the NLRB is "well outside the mainstream" and would have a serious disruption of "established precedent and the delicate balance in current labor law." The letter called upon a hearing for the public to have an opportunity to hear directly from the nominee on positions he has espoused; however, the Senate HELP Committee passed the nomination by a vote of 15-8 without conducting a hearing to vet the candidate. Sen. John McCain (R-AZ) has announced his hold on the nomination, calling Becker "probably the most controversial nominee that I have seen in a long time." (Any one Senator can prevent a floor vote on a nomination.) Senate HELP Committee Chairman Tom Harkin (D-IA) called Becker "one of the pre-eminent labor law thinkers in the United States." The skirmish over the NLRB nomination is considered a precursor to similar arguments expected in a future Employee Free Choice Act battle.

U.S. House:  NY-23

Candidates in the NY-23 special election to replace former Rep. John McHugh (R) have agreed to debate on October 29. Doug Hoffman (Conservative Party), Bill Owens (D), and Dede Scozzafava (R) are in a tight three-way race that will be determined on November 3. Originally, the race was considered notable as it could serve as early referendum on President Obama's agenda. However, the race is now drawing national attention because conservative "tea party" activists and grassroots organizations like FreedomWorks are sending volunteers and financial resources into the district to support the third-party candidate, Hoffman, while national GOP establishment organizations like the National Republican Congressional Committee (NRCC) have endorsed Scozzafava. Scozzafava's positions, such as her support of the Employee Free Choice Act (for which McHugh voted in the previous Congress), have come under fire from conservative GOP activists. The special election is set for November 3.

PrintPAC Honors Blue Dog Coalition

PrintPAC added its support this week to a fall reception honoring the Blue Dog Coalition, led by Reps. John Tanner (D-TN) and Alan Boyd (D-FL). The 50+ group of House Democrats seeks to add a fiscally moderate voice to public policy debates and has served as a counter to other factions within the Democratic party on key votes, such as cap and trade and health care reform committee proceedings, impacting the printing and graphic communications industry.