February 3, 2014

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MnRA's Board met January 23 to approve policies in advance of the 2014 legislative session.
Issue Update
Owatonna People's Press Says Deposit-Based Recycling Proposal Is Wrong For Minnesota    

 

The following editorial by the Owatonna People's Press was published January 27, 2014. 

"We have said it before and we undoubtedly will say it again: No one would ever accuse us of hugging trees. That being said, we would hasten to add there are some things that just make sense when it comes to being good stewards and caretakers of this planet we call home. One of those things that make sense and of which we are very much in favor is recycling.

It is precisely for that reason that we oppose the proposal that may find itself before Minnesota legislators in the upcoming session - a proposal that would place a 10-cent deposit on beverage containers. Our best guess is that rather than improving recycling throughout the state, the deposit would end up setting recycling efforts back or, at the very least, angering most consumers.

The logic behind the proposal is this: If you put a deposit on beverage containers - on soda pop bottles, for example - consumers would be more apt to recycle the containers because they would be losing money if they tossed that container in the trash. And perhaps there is some logic in that. There are those among us for whom it takes little effort to go through a six-pack of soda pop in a single day. The deposit would encourage us to recycle, the conventional wisdom would suggest, because if we don't recycle, we would lose 60 cents a day, $4.20 per week and nearly $220 annually if we didn't. So in theory, so it seems, it's a good idea. In theory.

In reality, however, the idea will probably hurt most people, especially folks like those here in Steele County where the county has gone to a single-sort system for recycling. In the current system, consumers can dump all recyclable materials - both plastic and glass bottles, cardboard boxes and even newspapers - in one container, take that container out to the curb and wait for that material to be taken to a place where it will be sorted and recycled.

Under the 10-cent deposit proposal, those of us who buy beverages in containers, which would be most of us, we would have a choice of continuing with the single-sort system, thus giving up our deposit, or getting our deposit back by abandoning the simplicity of the single-sort system and taking our beverage containers to a recycling center. Beyond the inconvenience of the drive, there is the cost of transporting those containers to the center.

And this is supposed to encourage recycling? We think not.

The adage rings true: If it ain't broke, don't fix it. And in Steele County, at least the single-sort system not only is unbroken, it's increased recycling rates. In just over its first year in the county, the single-sort system increased the tonnage of recycled materials by about 50 percent. And officials here estimate that recycling in Steele County likely will decrease if the state goes to a deposit-based system.

If recycling here - and in other counties, we might add - has increased as a result of single-sort, then it seems like a better idea to find a way to implement single-sort across the state than to go to the 10-cent deposit proposal. Better to go with a proven system than to try something that people can't be certain will work."

Read a related Owatonna People's Press article here.

 


Better, Smarter, Faster Retail
Get Essential 2014 Tax Strategies February 11

  

Join Boulay senior partners Tom Johnson and  Greg Margarit February 11 as they walk through important tax strategies and considerations essential for businesses and individuals in 2014. 
 
Event Details:
Essential 2014 Tax Strategies
Boulay - Eden Prairie, First Floor Conference Room
Tuesday, February 11, 2014
8:30 - 10:00 a.m.

No cost to attend. Non-members welcome. Pre-registration preferred, but walk-ins welcome. Call (651) 227-6631 or register online now.

Invite Others or Share This Event:
To invite others to this event, simply share the web address mnretail.org/taxtips or click here for a printable PDF event flyer.
 

Federal Healthcare
Retailers, Other Businesses Seek Revision Of Obamacare's "30 Hour" Rule  

  

From TwinCities Business, Jake Anderson, January 29, 2014

"The National Retail Federation and the International Franchise Association are among those urging Congress to change the definition of "full time" to 40 hours a week, rather than 30.

 National business groups are intensifying their efforts to revise the Affordable Care Act's definition of a "full-time" worker.

One of the most divisive components of the ACA is the so-called "play or pay" provision, which will require employers with more than 50 full-time (or full-time equivalent) employees to offer a certain level of health insurance coverage to their workers or face monetary penalties. The provision was initially set to take effect in 2014 but was pushed back to 2015.

The law defines full-time or full-time-equivalent workers as those who work at least 30 hours per week. (The actual calculation can get quite complicated, as it is based on a formula that takes into account average hours worked. Learn how to calculate your full-time employee count here.)

Now, national business associations are ramping up efforts to amend the law, urging Congress to re-define full-time workers as those who work an average of 40 hours or more per week.

Bruce Nustad, president of the Minnesota Retailers Association, told Twin Cities Business that, while his organization "doesn't have an official position" on the 30-hour threshold, the majority of "main street" retailers his organization represents "would prefer 40 hours to 30 hours." The 30-hour limit is "less comfortable for them," he added."
 


State of the Union
Obama Promises 'Opportunity For All' In State Of The Union Address     

 

From the National Retail Federation, J. Craig Shearman, January 29, 2014.

"President Obama covered a wide range of issues with implications for retailers in his annual State of the Union address Tuesday night, calling for a controversial minimum wage increase but also promising action on tax reform, immigration, trade, infrastructure and other issues as he outlined steps to boost the economy, create jobs and yield "opportunity for all."

"Even in the midst of recovery, too many Americans are working more than ever just to get by, let alone get ahead, and too many still aren't working at all," Obama said as he addressed a joint session of the House and Senate at the U.S. Capitol. "What I offer tonight is a set of concrete, practical proposals to speed up growth, strengthen the middle class, and build new ladders of opportunity."

With the politically divided House and Senate often deadlocked, Obama said he would act "wherever and whenever I can" to use the power of the White House to enact initiatives without waiting for Congress to pass legislation.

Obama made an increase in the $7.25-an-hour federal minimum wage one of his top priorities, saying he would sign an executive order raising the amount to $10.10 for workers covered by new government contracts, and that he would ask Congress to approve legislation that would do the same for all workers. He also called on cities and states to act on their own minimum wage increases.

"You don't have to wait for Congress to act," Obama said. "Americans will support you if you take this on."

Citing retailer Costco with its starting wage of $11.50 and a Minneapolis pizzeria that pays $10, Obama even called on private employers to voluntarily raise wages.

Obama contended that a higher minimum would boost productivity, reduce turnover and give customers more money to spend, but NRF responded that it would harm attempts at job creation.

"If you want to create minimum opportunities, then raise the minimum wage," NRF President and CEO Matthew Shay said."
 

Retail Consumers
Consumer Sentiment Dips In January 

  

From Reuters, January 31, 2014

"Consumer sentiment dipped slightly in January, with recent economic improvement not translating to expectations for future gains, a survey released on Friday showed.

The final reading on the Thomson Reuters/University of Michigan's overall index of consumer sentiment slipped to 81.2 in January, down from the 82.5 posted in December but up from the preliminary January reading of 80.4.

Analysts were looking for a reading of 81.0 in the month.

While upper income households reported improved confidence, households with incomes less than $75,000 reported a decrease.

"Prospects for either consumers' own personal finances or for the economy as a whole have remained more resistant to improvement, especially longer term prospects," survey director Richard Curtin wrote in a statement.

"This has prevented recent economic gains from building the type of positive upward momentum that has sparked and sustained increases in consumer optimism and confidence."

The survey's barometer of current economic conditions dropped to 96.8 in January, down from the 98.6 December reading but above both the initial read of 95.2 and the analyst expectation for a read of 95.5.

The survey's gauge of consumer expectations fell to 71.2 from 72.1 in December and was slightly below the mean estimate of 71.5. However, it was up from the preliminary reading of 70.9."
 

Member Service
MnRA's RetailPlus+ Buying Group

The Minnesota Retailers Association (MnRA) has leveraged the collective clout of our members to offer increased savings on the products and services essential to retailers. These vital products and services help Minnesota retailers navigate the often complicated terrain of operating as a retailer.

Thank you for your patience as we redesign the web presence of the RetailPlus+ Buying Group in the coming weeks.

Question on the program? Contact the MnRA staff at (651) 227-6631.  

 
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Minnesota Retailers Associaiton
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - [email protected]


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