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Frank Quis, Jr., chairman of WMIA's National Affairs Committee and WMIA Executive Director Bill Miller, CAE recently spent a day in Washington, DC meeting with WMMA and AWFS concerning legislative issues that affect the woodworking industry. The issues discussed included the high productivity investment act, Social Security, the cost of health care, tax cuts, estate tax repeal, legal liability reform and economic stimulus.

After a briefing on these issues they departed for Capitol Hill for prearranged appointments with elected officials. Since their time with various Congressmen was limited, they focused on three specific issues, The High Productivity Investment Act, the cost of health care and legal liability reform. A brief overview of those issues follows:

High Productivity Investment Act

WMIA supports the ãHigh Productivity Investment Act (HPIA).ä  This legislation would modernize the depreciation system used for tax purposes. The current system was adopted in 1986, and the simple reality is technological changes outpace the allowable depreciation schedules.

There is a second reason to make changes now. Our sector of the economy needs help. While a depreciation bonus was enacted last year with the help of the WMIA membership, we believe more must be done to stimulate business investment to pull the industry out of the current doldrums.

In the last Congress this bill was H.R. 2485. As of this date, there is not a specific bill to watch since the 108^th Congress is preoccupied with other issues. 

Cost of Health Care

There is plenty of data on the rising costs of health care, but there was no action by the 107^th Congress to provide relief. According to a U.S. Census Bureau report released on September 27, 2002, the number of Americans without health insurance climbed by 1.4 million from 2000 to 2001. A decline in job-based health insurance coverage is cited as a major reason. The increase in the ranks of the uninsured from 39.8 million in 2000 to 41.2 million in 2001 marks a reversal after two years of falling uninsured rates. An estimated 14.6 percent of the U.S. population lacked health coverage for all of 2001, up from 14.2 percent in 2000.

Data compiled by the National Association of Wholesaler-Distributors (NAW) January 17^th through February 7^th reveals a dramatic increase in group health insurance premiums paid by industry employers.  Information was provided by over 460 wholesale distribution companies of all sizes and across all lines of trade, 99% of which offer health insurance as an employee benefit. For the second year in a row, the average premium increase was 19%, according to the NAW survey.  Hardest hit are employers with 50 and fewer employees, which experienced a 23% average hike, a three-point boost in the rate of increase these small employers posted in a similar NAW survey conducted last spring. Wholesaler-distributors with more than 500 employers faced premium increases averaging 16%, a rate of increase equaling their previous yearâs experience.

By now, WMIA members are very familiar with the figures and the theories of causation. The time has come to debate the merits of other alternatives and to address some of the serious factors that influence the costs of health care. This is the message we left while on our recent visit. 

Legal Liability Reform

WMIA along with other woodworking machinery companies have a keen interest in bringing the problems of product liability law to the attention of Congress.

The woodworking machinery industry prides itself on its efforts to promote the safe use of machinery, but cannot be asked to assume more than itâs fair share of the responsibility and still be expected to contribute to the economy. The operation of woodworking machinery has its risks.  Product liability claims have taken an exacting toll on the industry and penalized the industry for making product that lasts a long time.

WMIA strongly supports a firm statute of repose for capital goods among the product liability reforms that should be enacted by Congress.

Conclusion

We are providing this report to keep you abreast of the activities of your association relative to issues and legislation that may affect your business. In the event you care to share your views with your elected officials related to the above topics you will find complete contact information at www.congress.com or www.senate.com