Congress is discussing the possibility of increasing the federal minimum wage. The passage of this could affect your business. as S. 460 would increase the wage to over $10.00 per hour from the current $7.25. The Obama Budget includes a new wage of $9.00.

Also, a companion bill in the House (H.R. 1010) has been introduced with 140 co-sponsors by Rep. George Miller (D-California). The Tom Harkin (D-Iowa) Bill, S. 460, has 30 co-sponsors in the Senate. Find more here.

 – Larry Innis

The Renewable Identification Numbers rose to record highs yesterday, indicating that the blendwall is upon us. This article speaks to how ethanol blends would clearly spike gas prices—something that is obviously not good for recreational boating and fishing. Read the full article here.

In addition to the likely increase in gas prices, an increase in ethanol blend level may lead to a reduction in gasoline available for sale. The MRAA continues to work with the federal government to oppose this increase in ethanol blend.

Remember, ninety-five percent of all recreational boats are fueled at traditional gas stations, and if E15 becomes the commonly-available blend at these stations, misfueling will occur, and marine engines will be damaged.

 – Larry Innis

The Governor of Ohio signed a bill into law on July 11 that becomes effective with the signing that establishes clear criteria for watercraft safety instructions before a recreational boat can be stopped and boarded on Lake Erie and other Ohio waters. In the past, water safety officers could stop a boat at any time for safety inspections.

This bill, sponsored by Rep. Rex Damschroder, which went into effect with the Governor’s signature, establishes that a state or local law enforcement officer will no longer have the authority to stop or board a vessel to conduct a safety inspection. This bill should enhance the boating experience in Ohio.

Please go to this link to see more info.

Ohio Governor Signs Boater Freedom Act : The Fishing Wire

– Larry Innis

As was published in the national media recently, the White House announced a one-year delay in implementation of the employer mandate that requires employers with greater than 50 employees to pay for health insurance or face a penalty. MRAA worked during the drafting of the Affordable Care Act to exempt employers with fewer than 50 employees from the mandate, which MRAA thought would exempt most marine retailers.

In a letter to the White House, Republicans demanded answers why businesses are off the hook but the rest of America is not. House leadership on July 9 seized on the Administration’s one-year delay of the requirement that employers offer health insurance or face penalties by demanding the same postponement for the mandate on individual insurance purchases and promised a series of showdowns.

Speaker John Boehner (R-Ohio) clearly took aim at the individual mandate by saying, “each provision you delay continues to demonstrate that the entire law is unworkable.” Rumors in DC indicate troubles in the Department of Health and Human Services in writing the rules and regulations needed to implement Obamacare.

– Larry Innis, Legislative Affairs

Senator Susan Collins (R-Maine) recently introduced s.1085, the Small Business Tax Certainty and Growth Act. The bill would allow small businesses to plan for capital investments that are vital to business expansion and job creation by easing complex accounting rules for the smallest businesses and reduces the tax burden on new ventures.

The bill would provide small businesses with the ability to make long-range plans by making permanent the maximum allowable deduction under Section 179 of the Internal Revenue Code. This section allows a more rapid deduction of the cost of acquired assets. The amount of the maximum deduction has changed three times in the past six years and has been addresses by Congress as a “year-end” extended bill making it unpredictable from year to year. The amount of $250,000 would be permanent and would be indexed for inflation. It also extends a15-year depreciation for improvements with respect to restaurants, retail facilities, and leaseholds.

S. 1085 would also allow more companies to use the simpler cash method of accounting by doubling the threshold at which the accrual method is required from $5 million in gross receipts to $10 million.

Finally, the bill would permanently double the deduction for business start-up expenses from $5,000 to $10,000.

“MRAA supports this bill because marine retailers are among the small businesses that create jobs,” said Matt Gruhn, MRAA President. “Taxes and tax reform are the most important concerns of our members. We believe this bill is a good step that will make a difference to allow marine retailers to thrive and create jobs.”

– Larry Innis, Legislative Affairs

Congress returned Monday, July 8, to potentially incendiary fights over nominations, unresolved disputes over student loans and the farm bill, and the uncertainty of whether lawmakers have the political will to rewrite the immigration laws.

Two Cabinet-rank choices, Tom Perez as Labor Secretary and Gina McCarthy to head the USEPA, are on the agenda in the Senate. In addition, the GOP has challenged several judicial nominees. The Senate is changing longstanding rules in this regard, which require a three-fifths majority, in an attempt to make consent an easier process. The cooperation between Senate Democrats and Republicans in passage of the Farm Bill may soon be wiped out tries to make this rule change.

The Immigration Bill passed the Senate but now faces a challenge in the House. The outlays for farm subsidies in the Farm Bill have caused considerable debate in the House where passage is doubtful.

These immediate actions in the House and Senate set the stage for consideration of issues facing marine retailers, like a tax reform bill. Many on Capitol Hill believed the likelihood of a tax reform bill was very high for later this Summer and Winter. But with a strong anti-tax sentiment and newly fueled issues on contention, likelihood is becoming remote for this year.

In addition, negotiations of the re-authorization of the Sport Fish Restoration and Boating Trust Fund are set to begin later this Summer. MRAA expects a simple passage of the same programs in effect today at the same level of funding. The Trust Fund has been attached to the Highway Bill in prior years, which may be under the radar screen of the House where some Members want to increase gas taxes to pay for road and bridge construction and other watchful of the deficit and tax increases want to keep expenditures as they are.

– Larry Innis, Legislative Affairs

The following link is a report from the conservative National Center for Policy Analysis on the Congressional Budget Office budget projections. As you will see the budget deficit is going down in large part to an increase in revenues (a sign of an improving economy). However, the budget deficit is so large that it is still considered high by most standards.

• Temporary Deficit Reduction

– Larry Innis, Legislative Affairs

The luxury tax on boats bill has died in Connecticut. Legislation was successfully passed to repeal the luxury tax on boats costing more than $100,00 (Sections 77-78, E-Cert. HB 6704, Budget/Tax Bill), effective July 1, 2013. Rep. Pat Widlitz was a lead advocate to energize the boating industry in Connecticut. The Governor signed the budget/tax bill, now Public Act 13-184, into law on June 19th, 2013.

– Larry Innis, Legislative Affairs