1.The Pension Benefit Guaranty Corporation (PBGC) issued a report projecting that, absent a significant increase in pension plan premiums, its multiemployer insurance program is likely to become insolvent by 2025.
NECA’s Look Ahead: In a recent meeting with the PBGC, NECA emphasized that the program’s large deficit highlights the importance of authorizing new composite plan models as soon as possible. NECA will continue to lobby against additional premium increases, though it may be difficult to avoid entirely as Congress seeks to address the multiemployer system’s $52.3 billion shortfall.
2. This week the Obama Administration updated their corporate tax reform outline.
NECA’s Look Ahead: The bottom line is that not much has changed from the last version. The plan still does nothing to help address the needs of the pass-through community by making no changes for S corporations and only reducing rates for companies organized as C corporations. As a result, successful pass-through businesses would be subject to 45 percent top rates on a broader base of income. The release of this plan also makes clear just how far apart the Administration and Congress truly are on tax policy. Meanwhile, the House Ways and Means Committee continues to work on an international reform package and Senate Finance Committee Chair Orrin Hatch (R-UT) continues to refine his plan to integrate the corporate and individual tax codes – an issue NECA has argued must be an essential component of tax reform.
3. NECA is working with a coalition of Associations to repeal the burdensome prior approval requirement imposed on corporate member trade association PACs. Under the Federal Election Campaign Act of 1971, NECA is required to obtain separate and specific written approval from member companies if they would like to learn more about and/or be solicited by its political action committee (PAC). No other class of PAC, including corporate, labor union, and individual membership association PACs, is subject to the prior approval requirement.
NECA’s Look Ahead: Tell Congress to repeal the prior approval requirement today!