January 15, 2015
Retailers offer President help with the State of Union speech
President Obama and his staff are no doubt preparing for next week’s State of the Union speech with all the seriousness required of such an event. The National Retail Federation wanted to be sure the President had all his talking points down and sent him a letter with topics retailers would like to see addressed.
Pointing to newly elected Republican majorities in the House and Senate, Matthew Shay, president and CEO of the NRF, wrote, "We encourage you and the leadership of both parties in both chambers of Congress to set aside partisan differences and seize this unique opportunity to finally act on a number of long-stalled bills that would boost the economy and jobs for the benefit of the American people."
Without saying so directly, Mr. Shay’s letter seemed to acknowledge that it was the Republican controlled House that prevented bi-partisan legislation on immigration and sales tax fairness passed by the Senate from reaching the President’s desk in recent years. How that is likely to change now that Republicans are in the majority of both houses of Congress remains to be seen.
There are other issues that have been opposed by Democrats, however, that could move forward if the President is willing to compromise with GOP leaders. Biggest of these would be making a change to what constitutes full-time work under the Affordable Care Act.
To this issue, Mr. Shay wrote, "While we have agreed to disagree on many aspects of the Affordable Care Act, at the very least the law should be amended to recognize that 40 hours a week is the time honoured standard of ‘full-time’ in America. And, in order to allow the nation’s smallest businesses to focus on job creation rather than federal mandates, it should apply only to those with 100 or more truly full-time employees."
Other items high on NRF’s legislative to-do list include comprehensive tax reform, cybersecurity, international trade agreements, patent litigation reform and investing in the nation’s infrastructure.
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Discussion Questions
Which of the items on NRF’s legislative agenda — sales tax fairness, immigration reform, changes to the Affordable Care Act, tax reform, cybersecurity, international trade, patent litigation reform and the nation’s infrastructure — do you think are most likely to be passed by Congress and signed by President Obama in the next two years? What items are most important to pass and why?
Poll
Cybersecurity costs retailers far more than living up to the existing terms of the ACA. It’s an issue that hits business and consumers equally hard. The president has already spoken out about it. Look for Congress to act on it. Patent litigation is an issue where both sides could meet.
I think there will be no changes in the ACA and little progress on immigration reform.
While everyone agrees that the nation’s infrastructure is in dire need of repair, the House will not come up with the necessary funds.
It’s not going to be a productive two years leading up to the 2016 presidential election as both parties look to make points with voters.
Asking for bipartisan cooperation is whistling in the wind. There is a solid reason citizens are frustrated with Congress.
Disagreement is acceptable. Obstinacy and a just “vote no” policy is not acceptable because it prevents the country from moving forward to achieve economic growth, security on land and in cyberspace, immigration policies that can work, etc.
If the NRF’s letter is general, it won’t have any impact. There’s a chance NRF recommendations will get attention, if the letter points out precise steps that both parties can easily agree upon without upending the positions they think will win them the next election.
At the same time the NRF has to look into how retailers are supporting what it is the NRF wants Congress and the President to agree upon. Let’s take cybersecurity for one. Are retailers delegating (perhaps abdicating) responsibility to Congress? How many retailers are taking steps toward (investing in) procedures and software that keep hackers out? I don’t see much activity in that area, just avoidance for the most part and occasional mea culpa recitations.
If you want the government to walk in lockstep with you, you have to actually be walking somewhere.
Whatever benefits the one percent and their lobbyists will be most likely to be passed. There will be a lot of deal-making and nasty things included in seemingly innocuous bills, making it impossible for the public to have a good grasp of what’s really going on. That’s what Congress is for, right?
Cybersecurity is the most likely to pass, as both parties have some common ground here.
I think continued focus on the economy and job creation would do the most for retailers. Having said that, it is hard to say which of the other agenda items would have a measurable impact and probably have a very low likelihood anyway.
In my opinion, sales tax fairness and transportation infrastructure are two areas where the Federal government can make real gains for the retail industry and the American people.
The sales tax issue has been on the table since at least 2000, and it’s quite frankly a black mark on both parties in Congress that such a simple action has not been completed. Most of the debate points (compliance complexity; no “new” taxes; economic damage) are really sideshows without merit. The wisest, simplest framework:
1) Online retailers and catalogs must collect sales tax according to the laws of the delivery address. This is unambiguous, even-handed and will deter temptations to commit fraud. It takes “nexus” out of the equation. (Good riddance.) You can write this bill in one sentence.
2) Online retailers should use any of several available sales-tax plug-ins to enable their shopping carts and automate compliance. This is inexpensive and turn-key. Anyone complaining is either ignorant or dishonest.
On the transportation issue, there is widespread recognition that our nation’s highway system (especially bridges and overpasses) are approaching a dangerous state of disrepair. The costs of ignoring this are likely to soon exceed the costs of addressing this. Investing the money may be unpopular with the “no taxes” crowd, but it’s high time for Congress to take responsibility and declare a “win.”
Great publicity stunt for NRF, which gets some press out of it.
The outstanding question here is whether Congressional Republicans, who’ve just said no over the past six years, will suddenly become policy wonks capable of beneficial societal change. The jury’s out on that one. But the ACA isn’t going anywhere…just try telling all the people like me with pre-existing conditions that they’re out of luck.
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Cybersecurity costs retailers far more than living up to the existing terms of the ACA. It’s an issue that hits business and consumers equally hard. The president has already spoken out about it. Look for Congress to act on it. Patent litigation is an issue where both sides could meet.
I think there will be no changes in the ACA and little progress on immigration reform.
While everyone agrees that the nation’s infrastructure is in dire need of repair, the House will not come up with the necessary funds.
It’s not going to be a productive two years leading up to the 2016 presidential election as both parties look to make points with voters.
Asking for bipartisan cooperation is whistling in the wind. There is a solid reason citizens are frustrated with Congress.
Disagreement is acceptable. Obstinacy and a just “vote no” policy is not acceptable because it prevents the country from moving forward to achieve economic growth, security on land and in cyberspace, immigration policies that can work, etc.
If the NRF’s letter is general, it won’t have any impact. There’s a chance NRF recommendations will get attention, if the letter points out precise steps that both parties can easily agree upon without upending the positions they think will win them the next election.
At the same time the NRF has to look into how retailers are supporting what it is the NRF wants Congress and the President to agree upon. Let’s take cybersecurity for one. Are retailers delegating (perhaps abdicating) responsibility to Congress? How many retailers are taking steps toward (investing in) procedures and software that keep hackers out? I don’t see much activity in that area, just avoidance for the most part and occasional mea culpa recitations.
If you want the government to walk in lockstep with you, you have to actually be walking somewhere.
Whatever benefits the one percent and their lobbyists will be most likely to be passed. There will be a lot of deal-making and nasty things included in seemingly innocuous bills, making it impossible for the public to have a good grasp of what’s really going on. That’s what Congress is for, right?
Cybersecurity is the most likely to pass, as both parties have some common ground here.
I think continued focus on the economy and job creation would do the most for retailers. Having said that, it is hard to say which of the other agenda items would have a measurable impact and probably have a very low likelihood anyway.
In my opinion, sales tax fairness and transportation infrastructure are two areas where the Federal government can make real gains for the retail industry and the American people.
The sales tax issue has been on the table since at least 2000, and it’s quite frankly a black mark on both parties in Congress that such a simple action has not been completed. Most of the debate points (compliance complexity; no “new” taxes; economic damage) are really sideshows without merit. The wisest, simplest framework:
1) Online retailers and catalogs must collect sales tax according to the laws of the delivery address. This is unambiguous, even-handed and will deter temptations to commit fraud. It takes “nexus” out of the equation. (Good riddance.) You can write this bill in one sentence.
2) Online retailers should use any of several available sales-tax plug-ins to enable their shopping carts and automate compliance. This is inexpensive and turn-key. Anyone complaining is either ignorant or dishonest.
On the transportation issue, there is widespread recognition that our nation’s highway system (especially bridges and overpasses) are approaching a dangerous state of disrepair. The costs of ignoring this are likely to soon exceed the costs of addressing this. Investing the money may be unpopular with the “no taxes” crowd, but it’s high time for Congress to take responsibility and declare a “win.”
Great publicity stunt for NRF, which gets some press out of it.
The outstanding question here is whether Congressional Republicans, who’ve just said no over the past six years, will suddenly become policy wonks capable of beneficial societal change. The jury’s out on that one. But the ACA isn’t going anywhere…just try telling all the people like me with pre-existing conditions that they’re out of luck.