Businesses Keeping Watch On Washington

While much attention is focused on sweeping Wall Street reform — this week, it’s important to remember the banking reforms called for by the Banking Committee that would cover finance from Wall Street to Main Street to dealer’s lots and showrooms.

Proposed Amendment to Financial Regulation Bill: The Washington Post reports, “In recent days, GE and other manufacturers have ramped up their efforts to draw attention to how the Senate legislation affects industrial companies.” These manufacturers are in support of a proposed amendment to the Senate’s financial regulation bill that would limit the government’s power to address high-risk financial practices at companies, if their main business is manufacturing.

Sponsored by Sen. David Vitter (R-LA), the amendment would exempt from this stricter oversight any companies that earn less than 85% of their revenue from financial services. Manufacturers and other groups argue that companies such as Deere, Caterpillar and Harley-Davidson provide financing for their customers but should not be caught in the same net as companies like insurance giant AIG.

Supporters of the provision, which include the National Association of Manufacturers and the U.S. Chamber of Commerce, say the amendment makes common sense. Sen. Sam Brownback (R-KS) is sponsoring an amendment that would specifically carve auto and other dealers out of the bill’s consumer protections provisions.

Cap & Trade Still Alive In The Senate? The Wall Street Journal said that, “Despite the most creative rhetoric this side of ‘ObamaCare’, voters have figured out that cap and trade involves artificial carbon rationing and vast new energy taxes.” So the main goal of John Kerry (D-MA) and Joe Lieberman (I-CT) has been attempting to disguise these truths in the climate bill they released to much fanfare last week. The bill sets a 2020 target for reducing CO2 emissions by 17% from 2005 levels, and 83% by 2050, the same as the House.

Health Care Battle Turns to the Courts. The National Federation of Independent Business (NFIB) has joined 20 states in challenging the constitutionality of the Patient Protection and Affordable Care Act. The association statement announcing their challenge said, “Small business owners everywhere are rightfully concerned that the unconstitutional new mandates, countless rules and new taxes in the health care law will devastate their business and their ability to create jobs.” NFIB added, “small businesses are also concerned about their personal freedoms. This law is the first time the federal government has required individuals to purchase something simply because they are alive. If Congress can regulate this type of inactivity, then there are essentially no limits to what they can mandate individuals to do.”

NFIB said they have encouraged reforms that cover pre-existing conditions, help to create effective and affordable national exchanges, provide the ability to buy across state lines, and include liability reform. But the pro-business group believes this new law will result in more bad than good for our nation’s job creators; it’s a bridge too far in terms of the future of our constitutional freedoms and liberties.

Your Association will continue to follow these bills and other legislation that could impact our members and do our best to keep you informed, as to not only the status of bills, but also let you know when your voice needs to be heard both in Washington and in your state capitals.