Just because the reconciliation effort to repeal and replace the Affordable Care Act (ACA) has been eclipsed in Washington—for now—doesn’t mean that consumers all over the country aren’t feeling the pain of the law’s shortcomings. Premiums continue to rise and choices in the individual market continue to dwindle. Fortunately, there are at least two critical actions Congress could take to help stabilize Obamacare’s exchanges.
First, Congress should fully fund cost sharing reduction (CSR) payments, and the administration must continue to provide them. The ACA mandated that insurers reduce out-of-pocket costs for certain low income individuals in exchange for compensation through CSR payments. If the administration ends these payments, insurers will still be required to limit out-of-pocket costs but may have to raise premiums by as much as 20%. Washington is actively talking about preserving these payments. Now it’s time to get this done.
A second priority, which to date has received less attention from policymakers, is extending the suspension of Obamacare’s health insurance tax (HIT). Originally part of Obamacare, the HIT was suspended in 2015 but under current law will be reinstated next year, slamming a $14.3 billion fee on millions of health insurance policies. Individuals, families, seniors, and small businesses will pay the price in higher premiums. According to one study, reimposing the tax would hit families in the small group market, which serves many small businesses, with a $500 increase. Seniors enrolled in Medicare Advantage would also see $245 more in costs. But if the HIT is repealed, it will save individuals and families up to $6,675 over the next 10 years.
The U.S. Chamber of Commerce is working to build public awareness of the looming HIT, and we urge all lawmakers to stop it in its tracks. I doubt that many lawmakers will want to explain why they allowed a tax on health insurance to take effect. While we ramp up pressure on both the HIT and CSR payments, we will continue pressing for action on other health care priorities—namely, the medical device tax and the so-called Cadillac tax on premium insurance plans.
Businesses across the country are wondering what will happen next with health care. Congress and the White House must do all they can in the short term to ensure that our existing health care system is as stable as possible. But soon our leaders will have no choice but to offer a new vision for American health care—and the Chamber will be ready to help when the time comes.
US CHAMBER OF COMMERCE: Leveling the Playing Field for Global E-Commerce
Blog posted on 9/ 6/ 17 (link source)
The boom of the internet and the rapid expansion of e-commerce have created incredible opportunities for American businesses by connecting them to consumers all over the world. Why is it, then, that too few small businesses export to foreign markets? The primary reason is due to onerous trade barriers.
With negotiations underway on the North America Free Trade Agreement (NAFTA), one trade barrier, in particular, should be made a priority because it has a direct effect on American small businesses engaging in cross-border e-commerce: de minimis. This is the value below which shipments entering the country are exempt from customs duties and burdensome paperwork. De minimis thresholds vary by country. Last year the U.S. threshold was raised to $800. Many other countries, however, continue to maintain much lower de minimis thresholds.
Raising the de minimis thresholds of our trade partners would significantly reduce red tape for small businesses and boost cross-border e-commerce sales. According to the Ecommerce Foundation, over 1.4 billion people made at least one e-commerce purchase in 2015. That represents a huge market of e-shoppers located outside the U.S. who could be tapped by American small business.
Burdensome trade barriers, like unduly low de minimis thresholds, put small businesses at a serious disadvantage and discourage them from participating in cross-border e-commerce altogether. The Organisation for Economic Co-operation and Development (OECD) has estimated that customs and other border barriers can add a premium of up to 24% to the price of goods sold. Small businesses typically don’t have the time or resources necessary to navigate through the plethora of documentation and taxes required by foreign customs authorities.
Removing these trade barriers would greatly benefit small business growth and the American economy as a whole. Small businesses represent 99% of U.S. employers and create two out of every three jobs. Raising the de minimis thresholds of our trade partners would help small businesses gain access to consumers abroad. (read more on story from the link source)
IRS Reminds Partnerships that Received Extensions: Returns Due Sept. 15 Tax Relief Available for those Affected by Hurricane Harvey; IRS Monitoring Hurricane Irma, Upcoming Deadline
PRESS RELEASE ISSUED 9/ 8/ 17 (link source)
WASHINGTON — The Internal Revenue Service continues to monitor Hurricane Irma, but reminds calendar-year partnerships that the due date for filing a return after receiving an extension remains Sept. 15 following a recent change in the tax law.
The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changed the date by which a partnership must file its annual return, Form 1065 or Form 1065-B. For calendar year partnerships, the due date for filing the annual return or request for an extension changed from April 15 (April 18 in 2017) to March 15. The due date for filing the return after receiving an extension of time to file was Sept. 15 when the due date was April 15, because the duration of the extension was five months. Under the new law, the due date for filing the return after receiving an extension of time to file is still Sept. 15, because the duration of the extension of time to file is now six months.
The IRS issued guidance, Notice 2017-47, providing penalty relief for certain partnerships that did not file the required returns by the new due date for their tax year that began in 2016, but filed their returns or their extension requests for that year by the15th day of the fourth month after the end of their taxable year (April 18 for calendar-year filers). If not for the Surface Transportation Act, these returns and requests for extension of time to file would have been on time.
The new deadlines are included in the instructions for Form 7004, instructions for Form 1065 and the instructions for Form 1065-B.
The IRS provided tax relief to taxpayers affected by Hurricane Harvey, including partnerships; affected taxpayers (as defined in the news release providing relief) have until Jan. 31, 2018, to file their returns. Calendar-year partnerships that are affected taxpayers that also receive relief from penalties under Notice 2017-47 if they file a return on or before Sept. 15, 2017, will receive relief from the failure-to-file penalty if they file the return by Jan. 31, 2018.
As Hurricane Irma approaches, the IRS is closely monitoring the storm and will be assessing next steps that will be needed for areas declared a federal disaster area.
The IRS projected that corporations and partnerships would file almost 6.9 million extension requests during 2017. The IRS expects to receive more than 4 million partnership returns during 2017.
Interest Rates Remain the Same for the Fourth Quarter of 2017
IRS PRESS RELEASE ISSUED 9/ 8/ 17 (link source)
WASHINGTON – The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning October 1, 2017. The rates will be:
four (4) percent for overpayments [three (3) percent in the case of a corporation];
1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
four (4) percent for underpayments; and
six (6) percent for large corporate underpayments.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during July 2017 to take effect August 1, 2017, based on daily compounding.
Revenue Ruling 2017-18, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2017-39, dated September 25, 2017.
Federal and state banking agencies issue statement on supervisory practices regarding financial institutions and borrowers affected by Hurricane Irma
THE FED PRESS RELEASE ISSUED 9/ 6/ 17 (link source)
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and state bank regulators recognize the serious impact of Hurricane Irma on the customers and operations of many financial institutions and will provide regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions in the affected areas to meet the financial services needs of their communities.
A complete list of the affected disaster areas can be found at www.fema.gov.
Lending: Bankers should work constructively with borrowers in communities affected by Hurricane Irma. The agencies realize that the effects of natural disasters on local businesses and individuals are often transitory, and prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism. In supervising institutions affected by the hurricane, the agencies will consider the unusual circumstances they face. The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound banking practices as well as in the public interest.
Community Reinvestment Act (CRA): Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas. For additional information, institutions should review the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm.
Investments: Bankers should monitor municipal securities and loans affected by the hurricane. The agencies realize local government projects may be negatively affected. Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.
Regulatory Reporting Requirements: Institutions affected by Hurricane Irma that expect to encounter difficulty meeting the agencies' reporting requirements should contact their primary federal regulatory agency to discuss their situation. The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies' regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of the effects of Hurricane Irma. The agencies' staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution's particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records.
Publishing Requirements: The agencies understand that the damage caused by the hurricane may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations. Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and state regulatory agency.
Temporary Banking Facilities: The agencies understand that many banks face power, telecommunications, staffing and other challenges in re-opening facilities after the hurricane. In cases in which operational challenges persist, the appropriate primary federal and state regulator will expedite any request to operate temporary banking facilities to provide more convenient availability of services to those affected by the hurricane. In most cases, a telephone notice to the primary federal and state regulator will suffice initially. Necessary written notification can be submitted later.
US DEPT. OF LABOR BLOG: Electrical Apprentice Finds Passion for Her Trade
Blog posted on 9/ 6/ 17 (link source)
Erin Lakenen works full time at B&B Electric Inc. in Iron Mountain, Michigan. At just 22, the third-year apprentice electrician already owns her own home, and is an example of the benefits available to young women who pursue career opportunities in the skilled trades.
Apprenticeship as a career path was a natural fit for the Marquette native.
“I’ve always been a little less traditional, and going to college full time didn’t really appeal to me. In apprenticeship, you are going to school and getting paid while learning a skill that you can use for the rest of your life,” said Erin. “I saw my sister going into debt with student loans for college and it really scared me. I love learning on the job.”
Erin has learned different methods of electrical installation in the industrial, commercial, and residential electrical industries, and she loves every minute of it.
“The trade has truly helped shape me into what I am today; it has increased my work ethic as well as given me financial stability and security, which leads to a lot more freedom and comfort,” explained Erin. “I just recently purchased a new home and I know that would have never happened at such a young age without the trades.”
She also enjoys participating in career fairs and trade conferences to help other women see that opportunities for good-paying jobs are available to everyone.
“I am proud to represent women in a nontraditional workplace and show that there are no barriers women cannot overcome in the trades,” Erin said.
The five-year electrical apprenticeship run by the International Brotherhood of Electrical Workers Local Union 906 includes 8,000 hours of on-the-job training and 1,000 hours of instructional learning. After completing the program and passing a state electrical exam, Erin will receive an industry-issued, nationally recognized journeyman certificate. Electricians in Michigan can expect to earn about $57,000 per year on average according to the Bureau of Labor Statistics.
There are more than 500,000 apprenticeships across the country, with more opportunities added every day. Find a program or learn how to sponsor one at www.dol.gov/apprenticeship.
U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Stainless Steel Flanges from China and India.
PRESS RELEASE ISSUED 9/ 6/ 17 (link source)
Today, U.S. Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether imports of stainless steel flanges from China and India are being dumped in the United States, and whether producers in China and India are receiving alleged unfair subsidies.
The Department will act swiftly, while assuring a full and fair assessment of the facts, to ensure that everyone trades on a level playing field,” said Secretary Ross. “The Trump administration will defend American workers and businesses with every tool at our disposal.”
These AD and CVD investigations were initiated based on petitions filed by the Coalition of American Flange Producers and its individual members: Core Pipe Products, Inc. (Carol Stream, Ill.) and Maass Flange Corporation (Houston, Texas) on August 16. The estimated dumping margins alleged by the petitioners range from 99.23 to 257.11 percent and 78.49 percent to 145.25 percent for China and India, respectively. The unfair subsidies alleged by the petitioners are estimated to be above de minimis.
In the AD investigation, the Commerce Department will determine whether imports of stainless steel flanges from China and India are being dumped in the U.S. market at less than fair value.
In the CVD investigations, the Commerce Department will determine whether Chinese and Indian producers of stainless steel flanges are receiving unfair government subsidies.
If the Commerce Department determines that stainless steel flanges from China and India are being dumped into the U.S. market and/or receiving unfair government subsidies, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of stainless steel flanges from China and India are causing injury to the U.S. industry, the Commerce Department will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist. (see more on the link source)
WORLD AND NATIONAL NEWS BRIEFS
From the UN NEWS CENTER:
Further development of DPRK nuclear programme cause of grave concern – UN atomic energy chief
11 September 2017 – Noting signs suggesting that a nuclear plant in the Democratic People’s Republic of Korea (DPRK) could be operating, the head of the United Nations atomic agency called on the country’s leadership to comply fully with its obligations under Security Council resolutions.
UN chief sends condolences, offers help after earthquake in Mexico
11 September 2017 – Secretary-General António Guterres has offered his condolences to the Government and people of Mexico and said the United Nations stands ready to provide support, should it be requested.
NATIONAL
AP: Irma loses hurricane status but keeps spreading misery
TAMPA, Florida (AP) — Hurricane Irma weakened to a still-dangerous tropical storm Monday as it pushed inland, triggering record flooding in Florida’s northeastern corner, while rescuers in its soggy, wind-battered wake mobilized to reach victims and learn the full extent of the damage.
AP: Solemn, personal ceremonies as US commemorates 9/11
NEW YORK (AP) - Holding photos and reading names of loved ones lost 16 years ago, 9/11 victims' relatives marked the anniversary of the attacks at ground zero on Monday with a solemn and personal ceremony.
Daily Bible Verse: [ God the Help of Those Who Seek Him ] [ A Song of Ascents. ] I will lift up my eyes to the hills— From whence comes my help? My help comes from the Lord, Who made heaven and earth.
Psalm 121:1-2 NKJV
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