Tax Proposal Framework Released
Yesterday, President Trump delivered a speech on the just-released framework for comprehensive tax reform in Indiana, which aims to: (1) reduce the tax rate for the middle class; (2) simplify the tax code and (3) create jobs by lowering taxes for small businesses to a 25 percent rate and lower the corporate tax rate to 20 percent. With regard to priority items for the Alliance, the framework eliminates Section 199, also known as the “manufacturers’ deduction,” given that the proposal would lower the corporate rate. The document does not propose changing the deduction for advertising costs as an ordinary and necessary business expense. The Alliance, however, believes limits on the deduction remains an attractive revenue option, as significant offsets will be needed to lower the corporate rate. The Alliance has been aggressively advocating to sustain the deduction, which has been treated as fully deductible for over 100 years. Many of the details on tax reform will be flushed out during the legislative process, which requires a budget resolution, legislative text to amend in committee, among other procedural hurdles. As this process moves forward, we will provide updates to the membership.
Related: CEO Column: Tax Reform
Investigation on Newsprint Antidumping Moves Forward
On September 22, the International Trade Commission (ITC) voted unanimously (4-0) to continue with the antidumping investigation brought on by a petition from the North Pacific Paper Company (Norpac). In its petition, Norpac claimed that Canadian manufacturers of ground wood paper received subsidies from the Canadian government that allowed for below-market pricing of imported newsprint, which caused harm to domestic producers. Norpac was the only U.S. mill to file the petition. The decision to move forward was expected, as only 10 percent of these types of petitions are denied by the ITC in the preliminary phase. We expect to receive the ITC’s rationale for moving forward when it releases its public report on the decision early next week. The ITC and the Department of Commerce will now move forward with separate investigations that will occur simultaneously in spring 2018. The ITC will examine the claim from the petitioner that it has been injured by dumping from Canadian manufacturers (rather than being negatively impacted by other market factors). The Department of Commerce’s investigation will examine whether dumping of newsprint from Canada actually occurred. A final decision on this case is expected in summer or fall of 2018. In the months ahead, the Alliance will work vigorously to fight this case. This case and others related to Canadian imports of lumbar and paper likely will be topics discussed between U.S. and Canadian officials during negotiations over the North American Free Trade Agreement (NAFTA).
LawView Monthly Updates Return in January, Access LawView Interactive Map
LawView is a tool that tracks state legislation critical to the news media industry so that our members can affect policy decisions at a local level. This members-only tool is shaped by member input that determines what issues, bills and legislatures are covered. The LawView Monthly Legislative Update will not be published during the fall since most state legislatures are adjourned – see state legislative session dates. In the meantime, to receive real-time updates please visit our LawView interactive map to view state legislative initiatives, developments, bill text, sponsors and voting history and more. We will resume regular monthly updates when state legislatures are back in session in January.