BCA's CANARY NAMED TO NAM's SAG EXECUTIVE COMMITTEE

Business Council of Alabama President and CEO William J. Canary has been named to the Executive Committee of the National Association of Manufacturers' State Associations Group.

The NAM State Associations Group plays a critical role in grassroots efforts to advance policies that will enhance business growth and job creation. Its aim is to facilitate communications among the NAM affiliates and enhance relationships the NAM and other associations have with national issues, federal legislators and government agencies, The Nam said.

The BCA is Alabama's exclusive affiliate to the NAM.

In addition to Canary, the SAG Executive Committee is comprised of Jay Moon, President and CEO, Mississippi Manufacturers Association; Eric L. Burkland, President, the Ohio Manufacturers' Association; Charles Hadden, President and CEO, Michigan Manufacturers Association; Webb Brown, President and CEO, Montana Chamber of Commerce; Barry Kennedy, President, Nebraska Chamber of Commerce and Industry; Heather Briccetti, Business Council of New York State, Inc.; S. Lewis Ebert, President and CEO, North Carolina Chamber; and Kurt Bauer, President and CEO, Wisconsin Manufacturers and Commerce.

The Senate this week approved the so-called tax extenders package of tax deductions for 2014, preventing a $42 billion tax increase, and sent the measure to President Obama for consideration.

The bill approved 76-16 will retroactively reauthorize a package of expired tax breaks for 2014 but only until Dec. 31. The new Congress next year will have to make the tax deductions permanent or explain the reason for the tax increase.

The Senate Finance Committee will have to pick up negotiations again when members return in January. Incoming Finance Committee Chairman Orrin Hatch, R-Utah, wouldn't commit to when that work would start, Politico reported.

"We're going to have to work on it, there's no question about it," Hatch said. "I just wish we could get permanency."

Business Council of Alabama President and CEO William J. Canary said reaffirming the tax deductions will help Alabama business at home and abroad. But he urged Congress to tackle permanent tax reform.

"Congress in the new term beginning next month can help business and the millions of its employees and investors by passing comprehensive tax reform that will lower the tax rate, enabling Alabama and American companies to compete for investment across the globe," Canary said.

Tax reform is part of the BCA's 2014 federal legislative agenda.

Senate leaders reluctantly accepted weeks ago that there would not be enough time to force further negotiations to craft a longer extension.

"This is ridiculous because we're not extending it beyond the tax year and by the time we get back here, it will already be expired for a week or two," said Sen. Rob Portman (R-Ohio). "It is a failure of Washington again to get its act together and do what should be done."

The general sense was that the $42 billion retroactive bill was better than nothing. "I'd much rather have had a two-year bill so people had the certainty of planning for next year," said Sen. Bill Nelson, D-Fla.

The bill included more than 50 tax deductions for business and individuals that must be periodically reauthorized. They usually were renewed with relatively little controversy but recent battles over spending and tax increases contained in the fiscal cliff deal of 2012 have turned the deductions into an annual battle.

Sessions Concedes Budget Chair to Wyoming Senator

Yellowhammer (Sims 12/18) "U.S. Senators Jeff Sessions (R-Ala.) and Mike Enzi (R-Wyo) have come to an agreement regarding the Budget Committee in the 114th Congress. Pending a committee vote and GOP Caucus approval, Enzi will chair the committee and Sessions will take on a significant role in reforming welfare spending and identifying and eliminating wasteful federal spending. Sessions' and Enzi's statements can be found below:

"Sen. Sessions: My good friend Mike and I have been close since we both entered the Senate together eighteen years ago. We will long remain good and close friends. We have talked and I am deferring to his seniority so that he can lead the Budget Committee as its Chairman beginning in 2015. Mike graciously deferred to me two years ago after he timed out on HELP as Ranking Member, and it has been my enormous privilege to serve as the panel's Ranking Member these last four years, as well as to serve as the Judiciary Ranking Member for the two years before that. I am eager to assist him next year, and I hope to tackle the important issue of welfare reform.

"I look forward to being active as a senior member on four committees of enormous importance: Armed Services, Budget, Environment and Public Works, and Judiciary. I also look forward to serving as Chairman of critical Senate subcommittees. My roles in the Senate will give me the opportunity to focus on important issues such as defense, national security, federal debt, EPA reform, crime and immigration. Our new GOP Congress must put the needs of Americans first.

"Sen. Enzi: Jeff is an outstanding leader and an outstanding speaker. If this were football, Jeff would be an all-star linebacker, corner, and safety all at the same time. He is our first line of defense on many issues. The team needs him and Jeff will be right there with his expertise taking the lead on welfare reform and, where we will miss Senator Coburn, Jeff will be there eliminating duplication and waste. He will also be eliminating reports of little value and forms that don't produce significant results. He will handle those and other critical parts.

"I look forward to working with Jeff and the rest of the Budget Committee members on a budget that cuts spending, targets executive overreach, and reduces the size of government. We have an incredible opportunity to do something great for our country and Jeff will play an integral role in this. He has a love for this country that is hard to rival. He speaks his mind and takes a stand for our principles even in the face of daunting opposition. He's been an amazing friend for over 18 years and I can't think of a better partner to work with on so many issues in the next Congress than him." 

Senate does not pass terrorism insurance bill House overwhelmingly passed

POLITICO (Warmbrodt 12/16) "Congress is leaving for the year without reauthorizing the government's 9/11-era terrorism risk insurance backstop, dealing a blow to the business community and throwing the program's future into question.

The Senate Tuesday night was unable to overcome an objection by retiring Sen. Tom Coburn (R-Okla.), who was holding up a House-passed bill to extend the program for six years over a states' rights issue that was unrelated to terrorism insurance. The Terrorism Risk Insurance Act is on track to expire Dec. 31.

"Coburn's opposition was no surprise but industry did not expect the Senate to throw in the towel on a bill that otherwise had overwhelming bipartisan support in Congress. Senate leaders could have chosen to stay in session longer to get around Coburn's objections.

"'We are incredibly disappointed in Congress, for waiting until the lame duck to reauthorize TRIA, for allowing politics to trump policy and for failing the American people by not providing protection for our economy from a terrorist event'," said Jimi Grande, senior vice president at the National Association of Mutual Insurance Companies. 'The country deserved better'.

"Losing the program will be a shock to insurers and their customers who have relied on the untapped government promise of potential financial assistance after devastating terrorist attacks to keep funds flowing for commercial development projects, such as skyscrapers and sports stadiums, since the program was enacted in 2002. Senate Republicans and Democrats said coming up with a new bill would be a priority when the new Congress arrives in January. Sen. John Cornyn (R-Texas), the GOP whip, said he did not think there would be a stop-gap extension bill to carry over to next year."

Starting the Tax Reform Conversation in the 114th Congress

U.S. Chamber of Commerce (Harris 12/16) "Last week, the Republican Staff of the Senate Finance Committee released a report titled 'Comprehensive Tax Reform for 2015 and Beyond', a primer on where we have been, where we are going, and highlighting the pressure points in individual, corporate, and international tax reform. It is a well-crafted, educational document. On the business side, the report explores integration, providing both a solid historical background and substantive review of the issue. It touches on rates, tax expenditures, accounting issues, and pass-through entities - focusing there on the need for harmonization throughout the pass-through regime.

"In the international realm, the report notes the rising importance of an international tax regime in our increasingly global economy. It discusses theories of international taxation and calls for a shift to a 'territorial' system of taxation, a step desperately needed to bring our international tax regime in line with other developed countries and give American companies the chance to compete on a level playing field. It also touches on the complex issues of expense allocation, how to incentivize research and development, minimum taxes, treatment of foreign companies doing business in the United States, and even non-resident U.S. citizens (who are likely delighted to finally be acknowledged as part of this conversation!). The international section is peppered with both historical and other country examples that help explain complex international issues.

"On the individual side, it explores things we often refuse to look at in this country, including tax bases other than income, such as consumption or wage bases. It even explains how the often politically unpopular value added tax (VAT) works, in plain English. This report also is notable for what it does not include - something Martin Sullivan highlighted in his December 15th Forbes piece, where he noted that the report commits to no specific marginal individual or corporate tax rates, offers no specifics on how to limit popular deductions, offers no commentary on the specifics of outgoing House Ways & Means Chairman Dave Camp's tax reform proposal, and likewise is silent on contentious issues like the appropriate baseline and the correct definition of revenue neutrality. Sullivan concludes that if presumptive Chairman Hatch is so serious about tax reform 'should he not also go beyond publishing reports and principles and write a real bill'?"