When the Going Gets Tough … Take a Vacation

Congressional Quarterly, in its daily update last Friday, described what is next for Congress:

The House "is done for the next 10 days," having voted to take the next week off (Democrats, to their credit, wanted to cancel the recess for more budget talks). The Senate's "President's Day recess has begun; the next session where something might get done (emphasis added) starts at 2 on Monday, Feb. 25."

Ron Fournier is a veteran political journalist, having worked at The Associated Press in two stints (among other stops) before joining the National Journal. I've always respected his writing.

A short but powerful take from Fournier on the current state of Congress:

The amount of unfinished business is stunning: A vacancy atop the Pentagon’s chain of command, billions of dollars of haphazard budget cuts due soon to take effect, immigration reform, gun control, climate change, and millions of jobless Americans. So what’s a Congress to do?

Take a vacation.

In Washington, it is politely called a 10-day “recess.” Lawmakers explain how hard they work at town halls and fundraisers back home. But their job is to legislate and to fix problems.

If you took 10 days off with critical work undone and deadlines threatening, how would your boss respond?

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Chamber and Rep. Young Release Business Tax Survey Results

As President Obama calls for a “balanced approach” and shared burden to end the current federal fiscal crisis, the Indiana business community is showing willingness to make such a sacrifice, provided there is real reduction in federal spending and substantive reform to simplify the tax code. That’s the overriding message from a recent survey conducted by the Indiana Chamber of Commerce in partnership with Congressman Todd Young (R-9th District), who is a new appointee to the U.S. House Ways and Means Committee.

The electronic survey of Indiana Chamber members and the business community at-large focused on the fiscal cliff, federal tax code, tax reductions, corporate tax system and the U.S. tax structure in general. A total of 188 respondents took part, representing both larger companies (27%) and small businesses (73%).

“Raising tax rates isn’t the right way to go to raise revenue. It may be good politics, but it is lousy economics. Reforming and simplifying the tax code, which will stimulate job creation and economic growth, is the preferred and needed path for Indiana businesses and their employees,” explains Indiana Chamber President Kevin Brinegar.

“We also need to reject Washington’s usual accounting gimmicks and cut actual spending, not just cut the rate of spending growth. We must reform federal entitlement programs – Medicare, Medicaid and Social Security – to address fiscal and demographic realities.”

Survey respondents clearly determined the fiscal crisis was more a spending problem (67%) than a revenue one (less than 1%). Additionally, 33% felt both spending and revenue were the culprits.

When asked to rate the most important principles which should guide tax reform, the top four answers respondents selected were: 1) emphasize shared sacrifice; 2) emphasize global competitiveness; 3) refrain from picking winners and losers; and 4) simplify the tax code.

Many businesses and individuals find the complexity of the tax code too much of a burden, resulting in 60% of individual taxpayers and 71% of unincorporated businesses hiring out their tax compliance. In the survey, nearly 30% said tax code simplification was even more important than rate reduction; 62% labeled simplification important, but not as important as rate reduction. To that end, some 71% of businesses surveyed indicated a willingness to give up some of their favorable tax credits and/or deductions for lower individual and corporate tax rates.

Brinegar and Young both acknowledge that, despite what needs to happen, a short-term measure – extension of credits, etc. for six months, for example – to buy more time for substantive and comprehensive reform is likely the most positive outcome that can be expected this month. 

In addition to the survey of businesses, Young’s office also electronically surveyed constituents in his district with similar questions. The results from the more than 2,700 individual respondents largely echoed the findings on the business survey.

“It’s clear to me there is a real appetite right now for comprehensive tax reform,” said Young.  “As negotiations continue on the so-called ‘fiscal cliff’, tax reform paired with spending cuts isn’t just my desired approach, it’s also the approach favored by individual Hoosiers and Indiana businesses. As a new member of the Ways and Means Committee, I look forward to representing those wishes as we move forward on this front.”

A plurality of individuals said the fiscal crisis was more of a spending problem (46%) than a revenue problem (11%), while 40% said both are to blame. 

Additionally, 54% (compared to 26% opposed) of individuals support a model of tax reform similar to the House Republican proposal of eliminating deductions in order to simplify the tax code. But regardless of what approach is taken, 85.5% of individuals said they support extending most or all of the current tax rates while Congress works through the issue.

Congressman Young is using the information gathered in the survey and via constituent research to help inform his approach to these fiscal issues. Likewise, the Indiana Chamber’s lobbying efforts on federal tax reform are relying heavily on the survey findings.

Charts detailing the results of the tax surveys of business owners and Congressman Young’s individual constituents can be found online at www.indianachamber.com/federal.

P2 Brings a Little Less Conversation, a Lot More Action

I get it – we’re less than two months away from an election. Stop yelling at me.

Because it seems no matter where I turn, people are yelling at me: on television, on the radio, through Facebook posts, in person, with newspaper articles, through inflammatory e-mails. They’re telling me why I should vote one way or another in November. And they’re telling me that their candidate is better because the other one is the devil and voting for him or her will literally kill me someday.

Enough. No more misinformation; no more spin; no more lies or half-truths or deceptions.

I am a decently informed voter. I don’t claim to know all the answers, or even have fully-formed opinions on all of the issues (because there are so many). But I know what matters to me at the end of the day. I’m sure you know what issues concern you as well. 

The question then becomes: How do we get everybody else on board this well-informed voting wagon? Call me naïve, but we need to get rid of the external nonsense and take a serious look at all of the candidates up for office – from local offices and state legislature all the way to Congress and the president.

I want to see voting records (because, the proof is in the pudding, folks). I want to know where politicians stand on substantial issues. And I’d like to know these things without partisan rhetoric. Meaning I can’t listen to the politicians themselves – or even the media at times – because it doesn’t seem like they want to give me true information.

Who do I turn to then? My family; a few friends. What about my employer? Maybe the boss doesn’t come right to mind as a source of political information. But, don’t you want to know if a legislator in your district previously passed a law that would have affected your paychecks? Bet you that your employer knows exactly who those legislators are already.

Even if we are just hearing from employers that it is our civic duty to be informed citizens and voters; that is the way we can right this ship.

With the Indiana Prosperity Project (Indiana P2), employers have access to great resources and tools to spread the message – and the information is presented in a non-partisan way. Voting records, legislator profiles, contact information, links to government information (how to register to vote online, how a bill becomes a law, the Indiana election process and much more) are available for free. The Prosperity Project staff will even build employers a customized web site to go along with their brand.

A newly-redesigned and user-friendly Prosperity Project web site is available for employers to explore and share with employees at www.indianaprosperity.org.

Employers – check it out and start using it. Employees – take heed and trust your employer.

And for goodness’ sake – everybody else stop yelling at me.
 

Good Journalism; Broken Congress

I  love reading The New York Times headline stories. I continue to be shocked by the fact that Congress is so dysfunctional. The two came together late last week.

Here’s the first sentence of a Times story from early in the week. "Members of Congress feel mighty proud of themselves this week, mainly because they appear to be avoiding a government shutdown — an outcome taken as an actual accomplishment in this turbulent and acrimonious legislature." (Which is exactly what happened early Saturday with a stopgap budget measure to fund day-to-day government through late March 2013).

Other gems from this Times article:

  • The 112th Congress is set to enter the Congressional record books as the least productive body in a generation, passing a mere 173 public laws as of last month. That was well below the 906 enacted from January 1947 through December 1948 by the body President Harry S. Truman referred to as the “do-nothing” Congress, and far fewer than even a single session of many prior Congresses.
  • Appropriations bills, once the central function of the legislative branch, have been ditched in favor of short-term spending measures that do little more than keep the lights on.
  • After the election, when the makeup of the White House and the next Congress are known, there will be a lame-duck session during which myriad tax issues will be tackled, or, somehow punted into the next year.

Saxby Chambliss, a Republican senator from Georgia, sums up the situation. "There has been way too much politics injected into the work that is going on in the Senate. We’ve been spinning our wheels all year."

And that, while true, is simply unbelievable. 

Little From Congress Now … And Maybe Later

If you already thought Congress was in gridlock and you could count the quantity of meaningful legislation without using too many digits, don’t expect much this week — or even post-election. So says Congressional Quarterly, an authority on all things Washington.

A portion of its analysis from last Friday:

If this September session of Congress seemed largely pointless before it even began, that feeling only got stronger this week. The Senate managed to push its veterans’ jobs bill into the second half of the month, while the House passed noncontroversial bills and took a few symbolic votes on fiscal issues in addition to moving the six-month CR (continuing resolution). If the Senate clears that stopgap bill next (this) week — which would be refreshingly well ahead of the Sept. 30 deadline for action — it’s possible that only a few more days of wheel-spinning will remain before everybody goes home to campaign for the rest of the fall.

That’s largely because the month’s other big deadline-driven decision — what to do about the expiring farm law — doesn’t seem to have an immediate solution. And some lawmakers in the know, including Collin Peterson, the top Democrat on House Agriculture, say there won’t be one before the election. That means the 2008 farm law would expire at the end of September, and federal support for dairy products and commodity crops would revert to formulas set in the 1940s, which would pay significantly more to farmers than what they get now.

If September has been uneventful, what about December? The lame duck might not produce much significant long-term legislation, either, even though both sides could make the argument that they’ll have new leverage once the election results are known. Leverage aside, the calendar is a powerful thing — especially when the holidays are ahead. And it seems increasingly improbable that Congress can write a comprehensive response to the budget sequester and the expiring tax cuts in a single hectic month. There might be dramatic votes on Christmas Eve, but the odds favor those votes being on short-term solutions to the fiscal cliff, with the 113th Congress being the forum for all the big decisions.

 

CEO and NFL Finish in a Tie

I expected voters in our most recent poll to return to their youth and opt for baseball, basketball, football (or the athletic endeavor of their choice) glory. But when you’ve got a large business audience, I guess it should be no surprise that many also aspire for the corner office.

The question, building on Gov. Mitch Daniels’ pending move to the presidency of Purdue University, asked about your ultimate dream job. The answers:

  • Fortune 500 CEO and professional athlete: 29% each
  • University president: 21%
  • Member of Congress: 13%
  • Governor: 8%

The current poll (top right) combines athletics with a much bigger economic impact. Give us your thought on Indianapolis seeking a Super Bowl encore.

Young: Americans Need to Choose Which Vision They Support

If you’re an Indiana Chamber member, one of the benefits that you should not overlook are the Policy Issue Conference Calls. John Gregg and Mike Pence are coming (more on that below), and here are just a few of the comments from Indiana 9th District Congressman Todd Young during today’s discussion.

  • On the "tense" atmosphere in Washington and the prospects for budget reform: "No one anticipates great breakthroughs or grand bargains in the next several months. You want to assure you have maximum leverage when you sit down at the bargaining table and this election is about leverage."
  • While he is frustrated, like others, by politics taking precedence over policy, Young admits that the parties have "different, irreconcilable visions and we need the American people to weigh in."
  • In discussing the prospects for broad tax reform, he says this Congress simply doesn’t have the "presidential leadership." He notes the 1986 tax reforms involved a Democrat-led House and Republican Senate, with the leadership of President Reagan allowing those groups to "come together and reconcile their differences."
  • About his co-sponsorship of the REINS Act, which would require up-or-down votes by Congress on any federal regulation with a projected $100 million or higher economic impact. "This would allow you to hold us accountable, and I want to be held accountable. In the end, you can then blame us if these rules and regulations are made the law of the land."
  • On his role on the Armed Services Committee, noting that administrations of both parties have not done a good job at developing a strong military strategy: "In the end, strategy ought to drive military spending. I wanted to be part of that larger conversation."

Young adds that a House vote is expected next week on the repeal of the medical device tax that could be so devastating to the Indiana economy. While House passage is possible, the Senate is not expected to act on the legislation. Also, look for the opportunity for Chamber members to weigh in on tax reform priorities with Rep. Young.

This writer (and many others) thinks we’re looking at a rising star in Congress. Thank you, Rep. Young, for your time today and we look forward to working with you at even greater levels in the future.

As far as future policy calls, mark September 21 and September 28 for one-hour discussions with Indiana gubernatorial candidates John Gregg and Mike Pence. Listen to the conversations and feel free to weigh in with your questions and comments. Much more to come as we approach those September sessions.

Striving to Shrink the Red Tape for Companies

The Indiana Chamber hosted Congressman Todd Rokita (4th District) on Monday for the one-year anniversary of the Red Tape Rollback program. Rokita and the Chamber teamed together in the spring of 2011 to strive to identify and do something about unnecessary and overly burdensome federal regulations that kill jobs and negatively impact the economy.

In the initial 12 months, 71 Hoosier companies and individuals contacted the congressman’s office about 41 different regulatory issues. The work of Rokita and his staff has yielded 18 Red Tape Rollback victories thus far, with efforts continuing on other issues.

An annual report outlines the concerns and the accomplishments. It’s not too late for you to let us know about federal regulations and their impact on your business.

In case you’re not convinced there is a problem, consider that the most recent edition of the Code of Federal Regulations consists of more than 101 million words. That compares to just over 4,500 words in the U.S. Constitution.

Plain and Simple: Communications Missing the Mark

The 2010 Plain Writing Act, an attempt to make government communicate more clearly with the public, was a great idea. Saying it has to happen, however, is proving a lot easier than making it happen.

An update from The Washington Post:

Advocates estimate that federal officials have translated just 10 percent of their forms, letters, directives and other documents into “clear Government communication that the public can understand and use,” as the law requires.

Official communications must now employ the active voice, avoid double negatives and use personal pronouns. “Addressees” must now become, simply, “you.” Clunky coinages like “incentivizing” (first known usage 1970) are a no-no. The Code of Federal Regulations no longer goes by the abbreviation CFR.

But with no penalty for inaction on the agencies’ part, advocates worry that plain writing has fallen to the bottom of the to-do list, like many another unfunded mandate imposed by Congress. They say many agencies have heeded the 2010 law merely by appointing officials, creating working groups and setting up Web sites.

There are examples of plain language working.

In Washington state, a revamped letter tripled the number of businesses paying a commonly ignored use tax, bringing $2 million in new revenue in a year, according to law professor Joseph Kimble, author of a forthcoming book on the benefits of plain language.

And after the Department of Veterans Affairs revised one of its letters, calls to a regional call center dropped from about 1,100 a year to about 200, Kimble said.

“People complain about government red tape and getting government out of your hair,” said Rep. Bruce Braley (D-Iowa), House sponsor of the Plain Writing Act. “If every one of these forms was written in plain language, the number of contacts to federal agencies would plummet.” 

Business Movement Grows to Support Transportation Infrastructure

The U.S. Chamber of Commerce sent a letter to Congress on January 23 encouraging it to support investment in the nation’s surface transportation infrastructure. The letter had around 1,000 signatories from the business community, as most feel enhanced transportation infrastructure (better bridges, public transportation, etc.) will make America a better place to do business. Congress has until March 31 to reauthorize the current funding law: 

TO THE MEMBERS OF THE UNITED STATES HOUSE AND SENATE:

As Congress embarks on a new legislative session, we, the undersigned companies and organizations, urge you to Make Transportation Job #1 in 2012 and pass federal highway, transit and safety legislation before the current law expires on March 31. The long-delayed reauthorization of federal highway and public transportation programs is a major piece of unfinished business that can provide a meaningful boost to the U.S. economy and its workers and already has broad-based support.

To grow, the United States must invest. There are few federal efforts that rival the potential of critical transportation infrastructure investments for sustaining and creating jobs and economic activity over the short term.

Maintaining at 2011 levels—and ideally increasing—federal funding for road, bridge, public transportation and safety investments can sustain and create jobs and economic activity in the short-term, and improve America’s export and travel infrastructure, offer new economic growth opportunities, and make the nation more competitive over the long-term. Program reform would make the dollars stretch even further: reducing the time it takes transportation projects to get from start to finish, encouraging public-private partnerships and use of private capital, increasing accountability for using federal funds to address the highest priority needs, and spurring innovation and technology deployment.

We recognize there are challenges in finding the resources necessary to adequately fund such a measure. However, with the economic opportunities that a well-crafted measure could afford and emerging political consensus for advancing such an effort, we believe it is time for all involved parties to come together and craft a final product.

In 2011, political leaders—Republican and Democrat, House, Senate and the Administration — stated a multi-year surface transportation bill is important for job creation and economic recovery. We urge you to follow words with action: Make Transportation Job #1 and move legislation immediately in the House and Senate to invest in the roads, bridges, transit systems that are the backbone of the U.S. economy, its businesses large and small, and communities of all sizes.