Managing Business in an Increasingly Regulated Environment

Karen Wanamaker, V.P.Industry and Government Affairs

NWPCA

Priority Issues

• Health Care Costs

• Estate (Death) Taxes

• US Postal Service

• Debarking vs. Bark-Free

• Wood Quarantine

• Immigration Reform/Access to Labor

Health Care: Affordability and Access

• Americans happy with quality

• Concerns over affordability and access

• Costs doubled between 1993 and 2004

• 18% of non-elderly people lack health insurance

Small Business Health Plans

• Purchase through trade associations.

• Same benefits as Fortune 500 and Unions – economies of scale – lower premiums – administrative efficiencies – superior medical coverage

Estate Tax Exemption/Tax Rates

1998 $625,000 55%

1999 650,000 55%

2000 675,000 55%

2001 675,000 55%

2002 1,000,000 50%

2003 1,000,000 49%

2004 1,500,000 48%

2005 1,500,000 47%

2006 2,000,000 46%

2007 2,000,000 45%

2008 2,000,000 45%

2009 3,500,000 35%

2010 Estate Tax Repealed 0

2011 $1,000,000 55%

Compromise Legislation

• New majority does not support permanent repeal• 109th Congress – Compromise Support

– Democrats expressed support for using 2009 rates under current law – tax estates over $3.5 million at 45%

– Republicans supported exempting estates under $10 million in assets and taxing those over that threshold at 15%.

U.S. Postal Pallets

TOTAL PALLETS

PRICE PER PALLET

TOTAL COST

2004 2,244,672 $11.36 $25,506,006

2005 670,000 14.23 10,000,000

2006 (Jan-Mar) 299,700 22.75 6,818,175

USPS Strategies

• Media

• Congressional Committee with Oversight

ISPM 15

• Bark-Free vs. Debarked

• Penn State Study

• Congressional Resolution

• Department of Commerce

• U.S. Trade Rep.

• Definition– Clear– Practical– Train Port Inspectors

USDA Ash Wood Quarantine

• Dec 2006: Illinois, Indiana, Ohio joined lower Michigan• Maryland (State Quarantine – Federal Pending)• Other States Involved• Not yet a Paperless System• NWPCA

– Member Alert

– Customer Alert

– Magazine Article

• Alternative Materials Using Issue

Comprehensive Immigration Reform

• Border security• State financial assistance for criminal aliens• A new H-5A essential worker visa program• Employer verification mandates and penalties for hiring

undocumented workers• A partnership with Mexico to promote economic

opportunities, improved health care access, and encourage re-integration of citizens to their home country

• Family unity• Path to citizenship for H-5 visa holders and their families• Federal reimbursement for hospitals providing emergency

care to undocumented immigrants.

Comprehensive Reform

• Many Targets

• Separate Bill Passed

• Those Here Stay – From Now On KEEP OUT!

• Employers as Immigration Police– Intense Enforcement– Reap Benefits/Pay Costs

Legal Worker Access

• Existing H2B Visa – Unskilled Workers

• Cap of 66,000 (1990)

• Industry Marketing & Government Affairs Committee

• Market-based approach to setting cap

• NWPCA – Lobbying Staff & Members

NWPCA Coalitions & AlliancesSmall Business Health Plans

– U.S. Chamber of Commerce– National Federation of Independent Businesses– National Association of Manufacturers – National Association of Realtors

Permanent Death Tax Repeal – See SBHPU.S. Postal Pallets: NWPCA ISPM 15

– NWPCA Wood Coalition– American Lumber Standards Committee– Hardwood Federation

U.S. Wood Quarantine: NWPCA Worker Access

– Essential Worker Immigration Coalition– U.S. Chamber of Commerce– NWPCA

What Does it Mean to Members?

• Quarantine– Member alert: step-by-step compliance guide– End user alert: member to customer handout– USDA discussions

• US postal service– E-mail confirmation system to USPS and NWPCA– PDS for comparable wood pallets– Ongoing negotiations

• Worker access– Member alert about industry raid– PalletCentral article– Audio PalletCentral interview with I-9 attorney– Seminar in Richmond with I-9 attorney– Seminar in Atlanta at R&R with ICE agents and I-9 attorney– Chief of the Employment Verification System– Seminar with former INS general counsel and former DHS attorney

NWPCA Participation

• Annual Leadership ConferenceFebruary 17-20, 2007

Orlando, Florida

(Committees Feb 16; Board Feb 17)

• Federal Legislative DayApril 17-18, 2007

Washington, D.C.