Iowa Ag Producers Offer a Lesson Going into NAFTA Negotiations
From the Chamber of Commerce blog post 8/ 11/ 17
SEAN HACKBARTH, Senior Editor, Digital Content
With a pork processing plant under construction, residents of Eagle Grove, IA, see first-hand the jobs and economic growth trade can bring to a community, Politico reports:
The plant represents an opportunity not many Midwest towns the size of Eagle Grove are afforded given today's economic realities.
[Mayor Sandy] McGrath said the plant will bring much-needed jobs to the area, which has had a dwindling population for years. From its 1970 height of 4,489 people, the town suffered a 31 percent decline in population to 3,427 in 2016. Now Eagle Grove is expecting at least 200 of the 900 workers the plant will initially employ to find housing in the town. This would give a sorely needed boost to retailers and service providers, as well.
Unfortunately the economic situation got dicier after President Donald Trump pulled out of the Trans-Pacific Partnership (TPP) in January. Now, as other nations negotiate trade deals among themselves, American agricultural producers are on the outside looking in:
A POLITICO analysis found that the 11 other TPP countries are now involved in a whopping 27 separate trade negotiations with each other, other major trading powers in the region like China and massive blocs like the EU. Those efforts range from exploratory conversations to deals already signed and awaiting ratification. Seven of the most significant deals for U.S. farmers were either launched or concluded in the five months since the United States withdrew from the TPP.
Other countries will get a competitive advantage over U.S. agricultural producers:
On July 6, the EU, which already exports as much pork to Japan as the United States does, announced political agreement on a new deal that would give European pork farmers an advantage of up to $2 per pound over U.S. exporters under certain circumstances—a move which, if unchecked, is all but certain to create a widening gap between EU exports and those from the United States.
European wine producers, who sold more than $1 billion to Japan between 2014 and 2016, would also see a 15 percent tariff on exports to Japan disappear while U.S. exporters would continue to face that duty at the border. For other products, the deal essentially mirrors the rates negotiated under the TPP, which the United States has surrendered, giving the EU a clear advantage over U.S. farmers.
I bring up this story, because NAFTA negotiations will start up shortly, and American businesses and farmers want good deals that allow them to sell to more customers internationally.
Going into the negotiations, the Trump administration wisely staked a “do no harm” position that preserves market access and rules that have been working well for a few decades. Now, the U.S., Canada, and Mexico have the opportunity to modernize and update the successful 23-year-old agreement to fit how the North American economy operates today.
Take e-commerce for example. Right now, American companies selling products online to Canadian or Mexican consumers have to pay duties on items as small as a t-shirt or a pair of shoes:
A U.S. proposal for Mexico and Canada to vastly raise the value of online purchases that can be imported duty-free from stores like Amazon.com and eBay is emerging as a flashpoint in an upcoming renegotiation of the NAFTA trade deal.
Vulnerable industries like footwear, textiles and bricks and mortar retail in Mexico and Canada are pushing back hard against the proposal by the U.S. trade representative to raise Mexican and Canadian duty-free import limits for e-commerce to the U.S. level of $800, from current thresholds of $50 and C$20, respectively.
Raising the threshold would, as the U.S. Chamber explained, “simplify entry requirements and reduce transaction costs for American small and medium-sized businesses, making them more competitive in the Canadian and Mexican markets.”
Recently Commerce Secretary Wilbur Ross correctly wrote, “[W]hen given a fair chance to compete, Americans can make and sell some of the best, most innovative products in the world.”
Trade with Canada and Mexico supports 14 million American jobs, and if NAFTA is successfully modernized, more opportunities will be available for American companies, farmers, ranchers, and workers. Lowering trade barriers and opening markets will result stronger economic growth, higher-paying jobs, and stronger communities.
Failure To Pass Tax Reform Would Have Dire Consequences
From the US Chamber of Commerce blog posted dated 8/ 10/ 17
By, J.D. FOSTER, Senior Vice President, Economic Policy Division, and Chief Economist
Comprehensive pro-growth tax reform can do more to strengthen the U.S. economy for years to come than any other policy currently before Congress. At the same time, failure to achieve a significant tax reform would probably do more to weaken the economy, perhaps even triggering a recession, not to mention a wave of foreign purchases of U.S. companies, than any other policy currently before Congress. When U.S. Chamber of Commerce President Tom Donohue says, “failure is not an option,” he’s not kidding.
The U.S. economy has settled into a pattern of moderate, sustained growth. This growth was likely given a tidy uptick with Donald Trump’s election as it meant, at the very least, that Barack Obama’s heavy regulatory foot had been taken off the economy’s brake. On the other hand, as the remaining slack in the economy is taken up, the tendency will be for the growth rate to slide a bit pending future developments. One such development should be the beneficial consequences of a successful tax reform effort.
Many politicians and pundits seem quite enamored of cutting taxes. Tax cuts are nice, and often popular, but tax reform’s power to improve the lives of American families and businesses doesn’t lie in the prospect for a tax cut. Tax reform’s power lies in its ability to reduce and even eliminate many of the most damaging distortions the tax code inflicts on economic decision making. Substantially lower tax rates plus expensing and an internationally competitive tax system for American businesses competing overseas would all reduce these distortions dramatically, leading to more economically rational decisions and improving economic efficiency.
Improving efficiency and thereby raising productivity is the key to raising standards of living. The key to raising productivity is improving the allocation of capital and labor across industries and activities, increasing the amount of physical and human capital employed, and increasing the technological content of the capital employed. Tax reform can help in all these areas and do so more than any area of public policy available today. Want a stronger economy? Pass tax reform that works.
However, tax reform also comes with an economic warning label. Businesses and individuals have waited for decades for Congress and a President to accept the challenge to reform the tax code. Congress and President Trump are now on the same page and on the right page, but if they were to fail now it seems highly unlikely they’ll have a better shot in the next few years.
A big issue with tax reform is not merely how much better the economy could perform, but also how much weaker the economy would be without tax reform. One might think absent tax reform the economy would continue on its current trajectory of moderate growth, but that is incorrect. Tax reform’s prospects dimming to a feint flicker would almost surely trigger a dramatic decline in business investment at home. To remain globally competitive at home and abroad, many U.S. companies would be forced by the indefinite reality of the current, antiquated federal tax code to shift substantial operations overseas. The hope for tax reform has held these kinds of decisions at bay.
At the same time, a great many U.S. multinational companies would quickly become takeover targets of foreign companies. Why? First, because those foreign companies face much lower tax rates.
To understand the second reason, imagine a U.S. parent company with a profitable foreign subsidiary. The subsidiary, call it ForSub, is currently taxed at a U.S. rate of 35 percent. Suppose a foreign company subject to a 25 percent tax rate buys the U.S. parent company. In a flash, the tax on ForSub’s profits drops from 35 percent to 25 percent. This isn’t tax evasion, or even tax planning. This is a simple, rational, necessary economic response to public policy.
American and foreign businesses are poised at the edge of their seats waiting to see which way tax reform goes. Get it right, and foreign purchases of U.S. companies will be very rare, while many U.S. companies will be on the prowl for opportunities to purchase foreign companies – reversing recent trends. Blow the opportunity for tax reform and foreign companies will be the buyers.
If Congress failed to enact comprehensive tax reform, then the effects on investment and corporate ownership at home could be profound, certainly enough to knock the legs out from under the economy in the latter half of 2018. Tax reform is now truly a two-edged sword. Get it right, and the economy would be given a strong boost for years to come. Fail, and though the tax code will remain status quo, the rate of economic growth for a period would almost certainly drop a lot and quickly.
Washington has few opportunities to really help the economy, but Washington also thankfully has few opportunities for triggering a major slowdown or even recession. Tax reform offers the former, but failing to pass a solid tax reform threatens the latter.
US DEPT. of LABOR: PRESIDENT TRUMP AND U.S. SECRETARY OF LABOR ACOSTA DISCUSS APPRENTICESHIPS AND THE AMERICAN WORKFORCE
PRESS RELEASE ISSUED 8/ 11/ 17
BEDMINSTER, NJ –Today, U.S. Secretary of Labor Alexander Acosta delivered remarks following his meeting with President Donald J. Trump on the optimistic outlook of the American workforce. They specifically discussed the Department of Labor’s progress implementing his Executive Order on Apprenticeships.
Excerpts from his remarks are below:
It’s a pleasure to be here to update President Trump on the optimistic outlook of the American workforce.
Today, we specifically discussed our progress implementing his Executive Order on Apprenticeships.
The President’s top priority for Labor is jobs, more jobs, and even more jobs.
The Department of Labor is implementing the President’s vision to ensure that Americans have the skills that they need to fill good, stable jobs.
There are 6.2 million job openings nationwide. This is the highest number on record.
Yet 7 million Americans are looking for jobs.
Americans want to work.
American companies want to hire.
We need to close the skills gap between the skills demanded by these open jobs and the skills offered by the American people.
That is why the President signed this Executive Order on June 9th to expand apprenticeships to all sectors of our economy.
The concept of demand-driven education has been enthusiastically received by private industry, educational institutions and state and local officials across the country.
The CEOs of 180 major companies signed a joint letter in support of the Executive Order.
I have spoken with dozens of CEOs across a number of industries, college and university presidents, unions, and industry groups.
To a person, they are excited about apprenticeships and many have begun working on developing apprenticeship programs.
We are currently evaluating nominations for the Apprenticeship Expansion Task Force. We received hundreds of submissions.
We expect the Task Force to begin in September. It will advise the Administration on effective apprenticeship strategies for their industries.
The Department of Labor is partnering with industry groups, companies, non-profit organizations, unions, joint labor-management organizations and so many others to help them design apprenticeship programs.
Industry-recognized apprenticeships will teach workers skills that are transferrable within their industries, resulting in more job opportunities.
I want to thank the President for his leadership.
I also want to thank Ivanka Trump and the Office of American Innovation for their tireless efforts on this initiative.
IRS: IRS Reminds Truckers: For Most, Highway Use Tax Return Is Due Aug. 31; E-file Is a Convenient Filing Option
PRESS RELEASE ISSUED 8/ 10/ 17
WASHINGTON — The Internal Revenue Service today reminded truckers and other owners of heavy highway vehicles that, in most cases, their next federal highway use tax return is due Thursday, Aug. 31, 2017.
The deadline generally applies to Form 2290 and the accompanying tax payment for the tax year that begins July 1, 2017, and ends June 30, 2018. Returns must be filed and tax payments made by Aug. 31 for vehicles used on the road during July. For vehicles first used after July, the deadline is the last day of the month following the month of first use.
Though some taxpayers have the option of filing Form 2290 on paper, the IRS encourages all taxpayers to take advantage of the speed and convenience of filing this form electronically and paying any tax due electronically. Taxpayers reporting 25 or more taxed vehicles must e-file. Tax-suspended vehicles don’t count toward the 25-or-more taxed vehicle threshold. Visit IRS.gov for a list of IRS-approved e-file providers.
The highway use tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. This generally includes trucks, truck tractors and buses. Ordinarily, vans, pickups and panel trucks are not taxable because they fall below the 55,000-pound threshold. The tax of up to $550 per vehicle is based on weight, and a variety of special rules apply, explained in the instructions to Form 2290.
Truckers do not need to visit an IRS office to e-file Form 2290 . The form can be filed online and any required tax payment can also be made online. Find an approved provider for Form 2290 on the 2290 e-file partner’s page.
Generally, e-filers receive their IRS-stamped Schedule 1 electronically minutes after filing. They can then print the Schedule 1 and provide it to their state department of motor vehicles, without visiting an IRS office. For those who choose to visit, note that the agency’s taxpayer assistance centers now operate on a “by-appointment” basis. See the Taxpayer Assistance Center Office Locator on IRS.gov for details.
Federal Reserve Board issues guidelines to evaluate requests for joint accounts at Federal Reserve Banks
PRESS RELEASE ISSUED 8/ 9/ 17
The Federal Reserve Board on Wednesday released final guidelines that will be used to evaluate requests for joint accounts at Federal Reserve Banks effective upon publication in the Federal Register. Joint accounts are intended to facilitate settlement between depository institutions participating in private-sector payment systems.
The Reserve Banks have, in limited cases in the past, opened joint accounts where the rights and liabilities are shared among multiple depository institution account-holders. The final guidelines will provide consistency and transparency with respect to evaluation of future joint account requests, given continued innovation in the U.S. payment system and the likelihood that there may be broader interest in such joint account arrangements going forward.
The final guidelines broadly outline considerations for evaluating joint account requests. Requests will be evaluated on a case-by-case basis, and more specific considerations and information necessary to evaluate a particular request will likely be required based on the complexity of the arrangement and other factors.
The Board's Federal Register notice is attached. Parties may contact the Reserve Bank in their respective districts for more information about requesting a joint account.
WA UTC: On 8-11 remember to call 811 before you dig
Request utility locates at least two business days before digging starts
PRESS RELEASE ISSUED 8/ 11/ 17
OLYMPIA, Wash. – With Aug. 11 approaching, the Utilities and Transportation Commission marks the date, 8-11, as a natural reminder to call 811 for a free utility locate prior to any digging project.
Anyone planning to dig – installing a fence or mailbox, building a deck, planting a tree, or undertaking any other project below the surface – must call 811 at least two business days before the planned project start date.
In 2016, there were 2,509 reports of damages to underground utilities in Washington. Damage can be prevented by following safe digging practices, and making the call to 811.
A call to 811 connects you to the one-call notification center. The center will ask for specific information about your project, then notify the appropriate utility companies of your intent to dig. You will need to outline the dig site in white spray paint. Professional locators are then sent to the site to mark the approximate locations of underground lines with spray paint or flags.
You can also request a utility locate, and check the status of your request, online by visiting www.callbeforeyoudig.org.
The risk of damaging an underground utility line exists anytime you dig. Striking a utility line can cause injuries, damages, fines and outages. The depth of utility lines can vary for a number of reasons, such as erosion, previous landscaping and uneven surfaces.
If you have called 811 and your utility locate is late, incomplete or inaccurate, please call the UTC Consumer Help Line at 1-888-333-WUTC (9882) or email consumer@utc.wa.gov.
Visit www.utc.wa.gov/callbeforeyoudig for more information about 811 and the call before you dig process.
Established by the Legislature in 1955, the UTC’s Pipeline Safety Program regulates the safety practices of 32 pipeline operators and conducts safety inspections on more than 44,000 miles of natural gas and hazardous-liquid pipelines in Washington. The UTC also regulates private, investor-owned natural gas, electric, water, and telecommunication utilities in the state. More information on the UTC Pipeline Safety Program can be found at www.utc.wa.gov/pipeline.
WORLD & NATIONAL NEWS BRIEFS
UN NEWS CENTER: Congratulating Kenyan people on peaceful elections, UN chief stresses dialogue to ease tensions
12 August 2017 – United Nations Secretary-General António Guterres congratulated today the people of Kenya for their peaceful participation in the presidential elections, and, stressing the importance of dialogue to defuse tensions, called on the political leaders to send clear messages to their supporters urging them to refrain from violence in the wake of the polls.
UN NEWS CENTER: In Iraq, UN Youth Envoy says young people are 'most valuable force we have to shape a better future'
12 August 2017 – As International Youth Day events kicked off worldwide today, at a special event in Iraq, the United Nations Secretary-General's Envoy on Youth, Jayathma Wickramanayake, pledged to do everything in her power to ensure the voices of youths, including those working to build peace, are heard.
NATIONAL
WP: One dead as car strikes crowds amid protests of white nationalist gathering in Charlottesville; two police die in helicopter crash
CHARLOTTESVILLE — An explosion of violence turned deadly in this normally bucolic university town on Saturday as hundreds of white nationalists, neo-Nazis and Ku Klux Klan members clashed with counter-protesters in the streets as a car plowed into crowds, killing one person and leaving 19 others injured.
WP: White House doubles down on Trump’s Charlottesville comments, ignores calls to directly confront white supremacy
BRIDGEWATER, N.J. — Two of President Trump's top advisers on Sunday defended his decision not to specifically call out and condemn the white supremacists and neo-Nazis who gathered in Charlottesville this weekend and violently clashed with those who opposed their message.
Daily Bible Verse: For we are His workmanship, created in Christ Jesus for good works, which God prepared beforehand that we should walk in them.
Ephesians 2:10 NKJV
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