Treasury Recommends Withdrawing Regulations that Would Harm Family Businesses
Good news! The Treasury Department has formally recommended withdrawing the Section 2704 regulations on family business valuation. PMAA has pushed back against the proposed regulations as they would have increased the death tax burden on family businesses.
Earlier this year, President Trump issued Executive Order 13789 (Identifying and Reducing Tax Regulatory Burdens) which was designed to reduce burdensome tax regulations. In August, PMAA along with other members of the Family Business Estate Tax Coalition (FBETC) submitted a letter to the Internal Revenue Service (IRS) regarding implementation of President Trump’s Executive Order. The Executive Order calls for the Secretary of the Treasury to review all significant tax regulations issued on or after January 1, 2016 that “impose an undue financial burden on United States taxpayers; add undue complexity to the Federal tax laws; or exceed the statutory authority of the IRS.”
In response to the Executive Order, the Treasury Department identified eight sets of regulations for review and asked the public to comment on how these regulations should be fixed. Pursuant to the requests of PMAA and the Small Business Legislative Council (SBLC), IRS identified the proposed regulations under Section 2704(b) of the Internal Revenue Code for consideration. Section 2704(b) would minimize the number of estates that would be eligible for valuation discounts and avoidance of double taxation via the estate, gift or transfer taxes. Treasury's final report issued in accordance with the President's Executive Order 13789 lists Sec 2704 under proposed regulations to be withdrawn entirely.
After reviewing these comments, Treasury and the IRS now believe that the proposed regulations’ approach to the problem of artificial valuation discounts is unworkable. In particular, they agree with commenters that taxpayers, their advisors, the IRS, and the courts would not, as a practical matter, be able to determine the value of an entity interest based on the fanciful assumption of a world where no legal authority exists.
In light of these concerns, Treasury and the IRS have decided that these proposed regulations should be withdrawn in their entirety and will publish a withdrawal of the proposed regulations shortly in the Federal Register.
PMAA has opposed the regulations since their introduction because it is fundamentally unfair to single out family-owned small businesses for worse treatment under the tax laws than non-family-owned businesses. PMAA has maintained that the proposed regulations should simply be withdrawn and not replaced.
PMAA Signs Letter Opposing Processing Fees for SNAP
Earlier this week, PMAA joined eight groups involved in food retailing, including NACS, NATSO and SIGMA, in sending a letter to the House and Senate Agriculture Committees opposing recent proposals to impose new processing and swipe fees on Supplemental Nutrition Assistance Program (SNAP) retailers. The transition from paper food stamps to the Electronic Benefits Transfer (EBT) system has benefited both SNAP customers and retailers by achieving new efficiencies at the checkout counter and in the administration of the program. However, there have recently been attempts to undermine the EBT system in a way that unjustifiably benefits payment processors and card networks at the expense of retailers and their customers.
PMAA will continue to urge Congress to oppose any efforts to impose new processing fees that would lead to at least $1.3 billion in costs per year for SNAP retailers.
Urge EPA to Reduce the Ethanol Mandate
Given that EPA is taking additional comments on possible reductions to the total renewable fuel volumes under the 2018 Renewable Fuel Standard (RFS) program, PMAA is asking you again to highlight your concerns with the corn ethanol mandate. Although EPA does not single out the corn ethanol mandate, it is considering reducing the total renewable fuel requirement by 2.5 percent, from 19.24 billion gallons under the proposed 2018 standard to 18.77 billion gallons.
The RFS is important to petroleum marketers because it ultimately determines whether E15 gasoline is mandated to meet annual refiner blending mandates. The existing RFS ethanol blending mandates have already pushed E10 blends into virtually every gasoline market in the country. Any significant increase in the ethanol blending standard will force refiners to move to E15 blends unless gasoline demand rises to offset new blending mandates. The vast majority of the nation’s retail outlets, 95 percent of which are owned by independent petroleum marketing businesses, cannot legally store and dispense blends of gasoline over 10 percent ethanol. Existing equipment is certified for a maximum E10 blend. Currently, there is no viable way for UST system operators to demonstrate that existing equipment is compatible with gasoline blends over E10.
PMAA believes the best path forward to fix the E10+ compatibility issue and inflated RIN problem is to immediately set the ethanol mandate at 9.7 percent of projected gasoline demand as determined by the Energy Information Administration (EIA). Reducing the ethanol mandate may likely prevent obligated parties from turning to large scale introduction of E15 blends nationwide to shore up sagging margins. This would amount to a de facto E15 mandate and set off a chain of events, resulting in a significant disruption of the nation’s gasoline distribution and supply chain and skyrocketing prices at the pump.
Click here to send comments to the EPA in support of reducing the corn ethanol mandate. PMAA has provided a template that can be found here.
Senate GOP Budget Paves Way for Oil Drilling in Artic Refuge
Yesterday, the Senate Budget Committee approved its fiscal 2018 budget resolution that contains a provision to permit drilling in northeastern Alaska’s Arctic National Wildlife Refuge (ANWR). The budget resolution contains instructions for the Senate Energy and Natural Resources Committee to develop policies that would save at least $1 billion in revenue over the next decade, which is the first legislative step necessary for Congress to approve drilling in the ANWR without the threat of a Democratic filibuster. The Senate Budget Committee passed the measure by a vote of 12-11 along party lines.
Conservatives in Congress have been pushing for years to allow energy exploration in a 1.5 million-acre section of the ANWR, where billions of barrels of oil lie beneath its coastal plain. However, most democrats have blocked those efforts twice in the past. Although the Senate is set to use the budget process of reconciliation to avoid a filibuster by Democrats, Republicans must convince Sen. John McCain (R-AZ) and Sen. Susan Collins (R-ME), who have voted against past efforts to open the refuge for drilling, to change their minds and vote in favor of the provision. Senate Energy and Natural Resources Committee Chairwoman Lisa Murkowski (R-AK) and Sen. Dan Sullivan (R-AK) pressed to get this provision in the budget and have previously backed legislation that would allow oil and gas development on the ANWR. President Trump is also in favor of opening up parts of the refuge for oil and gas development.
House Committee Passes Reversal of Joint Employer Ruling
On Thursday, the House Education and the Workforce Committee approved the “Save Local Business Act” by a vote of 23-17. H.R. 3441 would limit the extent to which businesses can be held liable for labor violations committed by their franchisees or contractors. This would reverse the National Labor Relations Board’s (NLRB) 2015 Browning-Ferris decision by narrowing the circumstances under which businesses can be classified a joint employer. Under Browning-Ferris, companies that exert only "indirect" control over franchisees may still be joint employers. The bill would revert to a standard of "direct" control.
In June, Labor Secretary Alexander Acosta announced that the Department of Labor (DOL) was withdrawing the Obama Administration’s informal guidance on joint employment. The DOL’s Wage and Hour Division issued the "administrator's interpretation" less than six months after the NLRB issued the controversial ruling in the Browning-Ferris Industries case that broadened a business’s potential liability for the labor practices of third-party business partners. The Wage and Hour Division’s January 2016 interpretation attempted to expand the concept of joint-employer liability under federal wage and hour laws as well.
PMAA applauds Congress for moving forward to change the actual ruling and we applaud Secretary Acosta for withdrawing the guidance.
PMAA Corporate Platinum Partner Spotlight Featuring: Federated Insurance
Don’t Let Your Business Go Up in Smoke
Fire Prevention Week – October 8-14, 2017
Every year, fires costs business owners billions of dollars—and that number doesn’t even begin to measure the impact fires have on the business itself and the families of employees who are injured or killed by the blaze.
Fire Prevention Week, October 8-14, 2017, is a great reminder that preventing workplace fires is not something to be done yearly, monthly, or even weekly—it should be a daily activity. Investigations reveal that most business fires can be prevented if workers consistently pay attention to a few, very specific hazards. To help you and your employees make it home safely each day, your Federated Insurance team is excited to provide a customizable fire prevention checklist you can use to review your business’s fire prevention techniques. (The latest full version of Adobe Reader is required to open and use the customizable checklist.)
Made available to all association members through our partnership with Federated, the checklist helps you identify and implement high priority fire prevention practices that can significantly impact your business. It’s designed to also allow businesses to add checkpoints for the unique risks and exposures they face. Go to federatedinsurance.com to access the sample checklist and view a video that shows the reality of business fires and discusses the need to make fire safety everyone’s responsibility.
Federated clients can find more fire prevention resources by logging on to Federated’s Shield Network®, or contacting Federated’s Risk Management Resource Center at 1.888.333.4949 or riskmanagementmaterials@fedins.com.
At Federated Insurance, It’s Our Business to Protect Yours®.
September 2017 PMAA Small Business Committee (SBC) PAC Contributions
PAC Co-Chairs Brad Bell and Tim Keigher are grateful for the PMAA Small Business Committee (SBC) PAC contributions from the following individuals during the September 1 - 30, 2017 time frame:
Arizona: Mike Clark, Jason Davis, Ed Flores, David Kec, Claudia Mink, Jami Moore, Rick Owens
Arkansas: Steve Turner
Colorado: Brian Haldorson
Connecticut: David Daniels, Chris Herb, Peter Russell, Gary Sippin, Craig Snyder, Robert Wesson
Louisiana: Bud Breaux, Anne Gauthier, Herb Hargraves III, Joe McCartney, Frank Marcello, Ali Momenzadeh, Amanda St. Romain, Nick St. Romain, Todd St. Romain, Steven Waguespack
Michigan: Abby Moniz
New Jersey: Mark Fredericks, Shelley Fredericks, Gary Hough
Ohio: James Doersam, Benjamin Englefield, Frederick Englefield IV
South Carolina: Ron Leone
Utah: Jim Larson
West Virginia: Greg Darby, Joseph A. Defazio, Gregory E. Rogers, Todd St. Romain, Dennis Thompson
Wyoming: Michael Bailey
Purchase Tickets for a Chance to Own a Tom Brady New England Patriots Collage
Purchase your PMAA Small Business Committee (SBC) PAC raffle tickets now for an opportunity to win your own Tom Brady New England Patriots Collage.
Tom Brady is an American football quarterback for the New England Patriots of the National Football League (NFL). He is one of only two players to win five Super Bowls and the only player to win them all playing for one team. Each piece comes designed with photographs, season schedule, a team logo, and a piece of game-used football, all framed in black wood. The product is officially licensed by the National Football League. This collectible is a limited edition of 1,000.
The PMAA SBC PAC will hold the raffle during the Fall Meeting in Chicago October 16-17 and the raffle winner will be identified during the Board Meeting on October 17. The winner does not have to be present to win. If you are not attending the conference, you will be notified the week following the October drawing if you are the fortunate owner of the Tom Brady New England Patriots Collage.
The proceeds of the raffle will benefit the PMAA SBC PAC. The money distributed to the PAC is used to benefit federal legislators who support the industry and have a solid record on key industry legislative issues. Tickets are $25 each or five for $100. Advanced tickets are available until October 13 by contacting Sabrina Pitcher at 703-351-8000. Ticket sales will continue at PMAA’s Fall Meeting in Chicago until the drawing on October 17. Tickets must be paid for with personal funds by MasterCard, VISA, American Express, cash or check (checks should be made out to the PMAA Small Business Committee).
September 2017 Contributors to PMAA MDF
PMAA’s Marketer Defense Fund wants to thank the following individuals for their contributions during the September 1- 30 timeframe:
North Carolina: E.J. Pope III
North Dakota: Paul Mutch
Ohio: Janel Kruse
Oklahoma: Tom Cowden
Pennsylvania: Dell Cromie
Tennessee: David Adcox
West Virginia: Dennis Thompson
Corporate donations are acceptable. MDF funds have been used for various studies, litigation and disaster relief dedicated to strengthening our lobbying efforts on Capitol Hill. Click here to donate to the PMAA MDF.
MDF Raffle Items - Amazon Echo & An Echo Dot
Get your PMAA Marketer Defense Fund (MDF) raffle tickets now for a chance to win an Amazon Echo and Echo Dot!
The PMAA Marketer Defense Fund (MDF) will hold a raffle during the Fall Meeting in Chicago October 16-17 conference and the raffle winner will be identified during the conference on October 17. The winner does not have to be present to win. If you are not attending the conference, you will be notified the week following the October drawing if you are the fortunate owner of the Amazon Echo and Echo Dot.
The proceeds of the raffle will benefit the PMAA MDF. PMAA established the Marketer Defense Fund, sometimes referred as the 535 Fund or MDF, as a method to obtain corporate donations for priority projects. The MDF Program is different from PMAA’s Small Business Committee PAC and is designed to supplement PMAA’s lobbying budget to cover priority projects, i.e., some aspects of a political event or for public relations campaigns related to a legislative initiative. For example, part of the monies collected for the MDF have been used for research projects to defeat regulatory initiatives such as an efforts to mandate a 10 micron diesel filter, wetlines retrofit, as well as automatic temperature compensation (ATC) at retail. The MDF has saved marketers approximately $1.3 billion which equals $162,500 per marketer. Additionally, the MDF has been used on:
- A diesel fuel corrosion study
- Hiring outside consultants to represent PMAA at several regulatory agencies
- Paying for PMAA marketer travel for important underground storage tank (UST) meetings
- Splash blending litigation
- Interchange fee coalition activities
- Supporting local charity events.
A marketer can make corporate contributions by check or credit card to this program and there is no limit on the amount of contribution. All the money is used to support PMAA lobbying goals. You can donate online by clicking here.
Tickets are $25 each or five for $100. Advanced tickets are available until October 13 by contacting Susan Isard or 703-351-8000. Ticket sales will continue at PMAA’s Fall Meeting in Chicago until the drawing on October 17. Tickets can be purchased with personal or corporate funds by MasterCard, VISA, American Express, cash or check (checks should be made out to the PMAA Marketer Defense Fund).
PMAA Member Services Spotlight Featuring: Laborchex
What About Applicants Who Claim Self-Employment? And Younger Applicants?
Not all of your job applicants have a work history as the employee of a company. That is, some have been self-employed and are now looking to join your team. Unlike a more traditional applicant who has worked for an employer, these applicants don’t have what we would consider a traditional work history. So how do you check on that history for a person who claims self-employment?
The easiest way is to ask him/her for the names of 2-4 persons he/she provided services to. Services can range from bartending and lawn maintenance to computer consulting and home healthcare. Our investigators will ask a series of specific questions for these professional references, designed to give you insight about the applicant’s skills, reliability, and temperament. For young applicants who don’t have a work history, contacting personal references is helpful. We will ask a different set of questions to teachers, clergy, coaches, etc. It is always preferable to have some written proof of a background check, regardless of how extensive it may or may not be. Our managers and investigators can help you create the best questions customized to your needs.
Please note that the general information provided is not a substitute for legal advice. Please consult with your legal counsel regarding these topics and other general employment questions.
Laborchex, a PMAA Vendor who has been serving clients nationwide since 1991, provides a program of background checks for PMAA members. For more information and to discuss your needs, please review PMAA’s current program, email PMAA’s New Account Consultant Ricky Rayborn or call him directly at 601.832.2174. |
