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Immigration
Reform
This
continues to be a hot topic with no resolution in sight, at
least for this congressional session. Major concerns involve
recent raids on Swift Meat Co. which at the time was cooperating
in a voluntary verification program, and what happened at
McDonalds in Reno. It is evident that congress is looking to
put the burden of proof on employers and possibly will look at
criminal sanctions against businesses that don’t reply
satisfactorily to non match letters that they receive. The
challenge still remains with the approximate 12million illegal
aliens currently residing in this country. Not only is it
logistically impossible to deport 12 million people, but the
impact on businesses especially those in the service and trade
industries would be substantial and economically devastating
overall.
Senator Reid
and Representatives Berkley and Porter have all come out for
some type of immigration reform with Senator Ensign and Rep.
Heller being noncommittal.
As a
business organization, we have been staying on message that
there needs to be comprehensive immigration reform now, that a
guest worker program needs to be implemented so that labor needs
are met, and some action needs to occur with those currently
here illegally whether that be a substantially detailed path to
citizenship with a fine, or other action other than mass
deportation.
Free Trade
Agreements-Latin
America
(Peru
&
Panama)
Through
expanded trade, the United States will create new opportunities
to sell products and services abroad, and consumers will benefit
from lower prices and greater choices here at home.
What does this mean to Nevada?
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NV was
one of 3 states that doubled its exports between 2002 and
2006, increasing exports from $1.2 billion to $5.5 billion
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83% of
the 1,904 companies that exported goods in 2004 were small &
medium-sized enterprises.
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In 2005,
NV-produced manufactured goods generated nearly 12,100 jobs
for workers in NV
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U.S.
subsidiaries support 27,000 manufacturing jobs in
Nevada.
Manufacturers stimulate a substantial amount of activity and
jobs in other sectors through their demand for inputs from
other suppliers.
Transportation-Let’s
Rebuild
America
Initiative
U.S. Chamber
driven initiative will address the looming crisis of our
country’s infrastructure system. Action is needed to preserve
the enacted federal highway investment commitments.
The 2005 highway and transit reauthorization legislation,
SAFETEA-LU, guaranteed at least $223 billion for federal highway
program investments through FY 2009. This investment level was
based on a forecast of anticipated revenues collected for the
Highway Trust Fund over the life of SAFETEA-LU.
The Bush Administration’s FY 2008 mid-session budget review
forecasts revenues for the Highway Account to fall short and
result in a negative $4.3 billion balance during FY 2009.
There have been some suggestions that cutting previously
authorized highway investments to the states in FY 2008 and
beyond is now necessary. There have been a number of policy
choices endorsed by both the Bush Administration and Congress
that would generate sufficient trust fund revenues to ensure
that commitments to states are upheld.
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Reimburse the Highway Trust Fund for revenues lost as a
result of federal motor fuel tax exemptions provided by
governments. These exemptions currently cost the Highway
Account more than $1billion per year in unrealized income.
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Develop
additional mechanisms to further crack down on illegal fuel
tax evasion.
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Transfer
revenues generated from the “gas guzzler tax” from the
General Fund to the Highway Trust Fund.
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Credit
the Trust Fund with foregone interest from its unexpended
cash balances since 1998.
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Recapture a portion of the Highway Trust Fund balance that
was written off with the enactment of the 1998 surface
transportation reauthorization bill, TEA-21.
Carried
Interest
Congress has proposed to increase the tax rate on the general
partner’s share of a limited partnership’s profits, known as
carried interest, from the long-term capital gains rate of 15%
to ordinary income tax rates of up to 35%
Carried interest is a core element of partnership finance in
every sector of the US economy engaged in capital formation,
including real estate, private equity, hedge funds, healthcare,
retail, and distribution.
Business partnership is the cornerstone for organizing business
and investment ventures. In 2004, 15.5 million American
investors were partners in more than 2.5 million partnerships.
While it currently does not address LLCs, this proposal could
open the door to expanding the tax rate changes to include this
and other forms of business structures.
Call to Action-The House Ways & Means
Committee and the Senate Finance Committee are holding hearings
to discuss this issue (HR 2834 and S 1624). Congressional
leadership has made this tax increase a top priority for the
fall’s legislative agenda. This will be added to the chamber’s
Vote for Business website call for action before the end of the
week.
Reauthorization of the No Child Left Behind Act (NCLB)
While the No Child Left Behind Act is far from perfect in its
present form, it is the only system currently in place that
addresses accountability within the education system.
As the chamber and business community continually voices
concerns about the quality of the workforce and the education
system, it is imperative that we insist on some type of
accountability.
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