Updates From the Capitol

NAMM’s "Updates from the Capitol" provides summaries of new and emerging policies and issues that have potential impact for NAMM member businesses.  Information offers baseline data and information and does not represent specific advocacy positions.

Update: June 13, 2017. ‘How Federal Legislation is Reconciled or Passed on the Way to Becoming a Law.’ Source: U.S. House of Representatives, U.S. Senate and Congressional Research Service, and Politico Pro DataPoint.

How Legislation is Passed in the House
How Legislation is Passed in the Senate
How the House and Senate Settle Legislative Differences

Update: May 1, 2017. 'The First 100 Days: Legislation Introduced'

In October of 2016, then-presidential candidate Donald Trump released a “Contract with the American Voter” outlining 10 legislative measures that he planned to work with Congress to introduce and fight for their passage within the first 100 days of his administration. To date, 1 of 10 pledges - the attempt to repeal the Affordable Care Act - have been written into legislation.  See summary graphic here. Source: Taylor Thomas, Politico Pro DataPoint.

Update: May 1, 2017. 'Marketplace Fairness: Online Sales Tax Legislation Reintroduced'

The Marketplace Fairness Act is proposed legislation pending in the United States Congress that would enable state governments to collect sales taxes and use taxes from remote retailers with no physical presence in their state. Identical versions were introduced into both the House and the Senate during the 113th United States Congress, but expired without enactment. As of April, 2017, legislation has been reintroduced. Read more here.

Update: February 17, 2017.  ‘State and Local Sales Tax Rates in 2017’

In an effort to stabilize budgets and make up for revenue shortfalls, many states allow local governments to impose a range of sales taxes to raise annual revenue. These rates can be substantial, so a state with a moderate statewide sales tax rate could actually have a very high combined state and local rate compared with other states.  Sales taxes are just one part of an overall tax structure and should be considered in context, according to the nonprofit tax policy organization Tax Foundation.  As states consider cutting income taxes, they will likely need to shift their reliance on revenue sources. This shift may create spending challenges for local governments because they rely on sales tax revenue, which is typically the second major source of revenue behind property taxes. While many factors influence business location and investment decisions, policymakers’ often focus on sales taxes as an immediate means of generating revenue. View an infographic here. By Todd Lindeman, Director of Pro Graphics, Politico.

Update: February 10, 2017. ‘The Border Adjustment Tax, Explained’

As part of a broader corporate tax reform, Congressional Republicans are proposing a "border adjustment tax" that would change the ways in which corporations are taxed for imports and exports. Click here to learn more. By Tucker Doherty, POLITICO Pro DataPoint. Sources: Interview with David French, senior vice president of government relations for the National Retail Federation; Interview with Kyle Pomerleau, director of federal projects for the Tax Foundation; U.S. Census Bureau; Goldman Sachs, “What would the transition to destination-based taxation look like?”; Citizens for Tax Justice; Alan Auerbach and Douglas Holtz-Eakin, “The role of border adjustments in international taxation.”

Update: January 31, 2017. ‘Knock Out Two Regulations For Every New Regulation’

On Monday, President Donald Trump signed an executive order requiring that for every new regulation, “at least two prior regulations be identified for elimination.” Click here to learn more. Sources: Federal Register, POLITICO staff reports, Jan. 30 executive order “Reducing Regulation And Controlling Regulatory Costs” By Janie Boschma, POLITICO Pro DataPoint. 

The White House issued an interim guidance on Friday, February 03, to implement the Jan. 30 executive order requiring the elimination of two existing regulations for each new regulation that's proposed. The guidance clarifies that the two-for-one rule applies only to "significant" regulations. Under a 1993 executive order still in effect, a "significant" rule is defined as any that that imposes an annual economic cost of $100 million or more. Read more here. Source: POLITICO LLC. By Marianne LeVine, Employment & Immigration reporter.