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JULY 2004 |
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Grange
Partners with Bob Dole and Pfizer to Educate Seniors about Medicare Prescription
Drug Discount Cards
On June 24, 2004, the National Grange participated
in a press conference in Washington, D.C. with Bob Dole, NAMI, and the Visiting
Nurses Association of America to report on the Grange's grassroots education activities
on Medicare Prescription Drug Discount Cards.
"The
National Grange will be sponsoring educational programs on Medicare-Approved Discount
Drug Cards in over 1000 communities across America. The National Grange through
its local and state affiliates will be distributing informational materials, conducting
informational sessions, and taking part in county and state fairs to inform beneficiaries
and their families about the Medicare-Approved Discount Drug Cards," said Richard
Weiss, COO of the National Grange. Former
Senator and presidential candidate Bob Dole has been touring the nation over the
last five months with Pfizer's sponsorship speaking to seniors about the implementation
of the new Medicare Discount Card. "After
speaking to thousands of seniors across the country, I've found that those who
have educated themselves about the card and understand the different choices available
to them are taking advantage of the opportunity to receive significant medications," said Senator Dole. While there is no doubt that there are a lot of seniors who
are confused by the card, I believe the answer is to continue presenting opportunities
like these programs for seniors to learn more about these cards."
| | Richard
Weiss, COO of the National Grange | Sen.
Bob Dole (left) and Richard Weiss |
The
Grange and 16 other organizations are planning programs to educate seniors on
the new Medicare Prescription Drug benefit, for more information go to: www.medicare.gov
www.bobdoleonmedicare.com
Or call 1-800- MEDICARE
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Supports Legislation to Eliminate European Tariffs on US Exports
The National
Grange recently sent a letter to Congress, along with 235 other associations and
companies, emphasizing the urgency of resolving the FSC/ETI export tax issue as
soon as possible. On
November 18, 1997, the European Union (EU) challenged the use of foreign sales
corporations (FSCs) by the United States as an illegal export subsidy under the
World Trade Organization (WTO) rules. Under US law, foreign sales corporations
that are subsidiaries of U.S. corporations received special tax treatment that
foreign based corporations that operate in the U.S. are not eligible for. On
October 8, 1999, a WTO dispute panel ruled against the United States by finding
that FSCs are an illegal export subsidy.. Following appeals by both the United
States and the EU, the WTO Appellate Body upheld the panel's decision on February
24, 2000. The United States then agreed to repealed the FSC rules. The
US replaced the FSC rules with new federal tax preferences on extraterritorial
income (ETI) which provided similar benefits to US based corporations that operate
overseas, on November 15, 2000. The EU immediately challenged the new tax preferences
at the WTO, and the WTO panel issued a ruling against the United States on August
20, 2001. The United States again appealed, but the WTO Appellate Body on January
14, 2002, again upheld the decision, that the ETI tax preferences also violated
WTO rules. Because
the U.S. has not yet formally repealed the ETI tax preferences, the WTO also ruled
that the EU was entitled to impose economic sanctions against US exports until
the ETI tax preferences are finally repealed. A WTO arbitration panel issued its
report on the appropriate level of sanctions on August 30, 2002. The decision
was a complete win for the EU, authorizing them to impose more than $4 billion
annually in retaliatory sanctions. EU Member States agreed on a final retaliation
list for possible sanctions against the United States, and the European Commission
(EC) formally approved the 1,700-product list of US exports that would be subject
to EU tariffs. The EU list was then submitted to the WTO, and the WTO Dispute
Settlement Body (DSB) on May 7, 2003, gave the EU authority to actually implement
the tariffs.
On
December 8, 2003, the EU approved legislation that allowed the automatic imposition
of punitive tariffs against U.S. exports beginning March 1, 2004 if the ETI regime
had not yet been repealed. These sanctions took effect as expected on March 1,
and they are currently in place. Currently
the House of Representative and the US Senate have passed separate pieces of legislation
to repeal the ETI tax preferences. The final legislation is in conference between
the two houses. Quick enactment of final legislation by Congress is necessary
now to comply with our WTO obligations, end the imposition of $4 billion in punitive
tariffs on U.S. exports, and end retaliation that began four months ago against
U.S. products. On June 17, 2004, House of Representatives passed the American Jobs Creation Act
of 2004 with a strong 251-178 bipartisan vote. In addition to repealing the ETI
tax preferences within three years, the House legislation would also provide additional
tax benefits for family farmers, farm cooperatives coops and rural development
activities including: coordinating farmers' income averaging with the alternative
minimum tax; reducing the general corporate federal income tax rate from 35 percent
to 32 percent for domestic manufacturing and production activities (including
agriculture production); extending the R&D credit through 2005; and a number of
provisions favorable to small business, including section 179 and S corporation
reforms. The
US Senate ETI legislation was passed by the full Senate on May 11, 2004, following
addition of the energy tax package to the bill that is favorable to ethanol and
biodiesel. The Senate legislation combines a tax deduction for domestic manufacturing
activity with a package of international tax reforms and allows a tax credit for
the retail sale of alternative fuels as motor vehicle fuel.
The
Bush Administration is also required by the trade promotion authority granted
to the President in 2002 to include final resolution of the FSC/ETI issue as a
negotiating objective in the Doha trade round. While
progress is being made on the legislative front, the economic pressure is still
on to resolve this issue. On July 1, 2004 the European Union (EU) increased the
retaliatory tariff from 8 percent to 9 percent on its list of American export
products. Further Congressional delay will ultimately result in EU tariffs going
as high as 17 percent on affected U.S. exports. Affected products range from jewelry,
agriculture, wood products, toys, textile, apparel and footwear products to refrigeration
equipment, iron and steel products, construction equipment, industrial trucks,
and paper products. Seventeen percent of the export products subject to EU tariffs
are agricultural products, including: fruits, vegetables, seeds, oils, and dairy
products. These
retaliatory tariffs are hurting U.S. exports to Europe at a time when U.S. exports
are just beginning to rebound and the global economy is showing signs of renewed
growth. Moreover, these tariffs negatively impact jobs of American workers, small
businesses and family farmers. The National Grange is strongly urging the House
and Senate to immediately produce a bill that can be signed by the President as
soon as possible to repeal the ETI tax provisions and resolve these issues once
and for all.
top Grange
urges Congress to fix the Universal Service Fund
On June 23, 2004 the
National Grange, as a member of the Coalition for Equitable and Affordable Rural
service (CLEAR), hosted a press conference with Senator Gordon Smith (R-OR) and
U.S. Representative Lee Terry (R-NE) on the Universal Service Fairness Act S.
1380 and HR. 1582.
| | (National
Grange Legislative Director, Leroy Watson
with Rep. Lee Terry and Sen. Gordon
Smith) | (Leroy
Watson with Rep. Lee Terry) |
The
purpose of the Universal Service Fund (USF) is to keep telephone service affordable
and up-to-date in high cost rural areas, but most rural areas in the United States
receive no USF support because they happen to be served by so-called "non-rural" carriers that serve both urban and rural areas. House lead sponsor Rep. Lee Terry (R-NE) said, "The most important component of
USF is broken, and it needs to be fixed as soon as possible. Every year that goes
by without reform of this program is another year in which many rural Americans
fail to receive their fair share." Currently
only eight states receive the $233 Million of federal funding leaving 42, states
that span a large portion of rural America, with no funding.
Current
distribution of the USF | Distribution
based on the enactment of HR. 1582 | | |
"S. 1380 and HR 1582 would correct the current USF formula in a common sense,
fair manner. The National Grange supports this legislation," said Leroy Watson,
Legislative Director of the National Grange. The
program can be fixed without any increase in phone rates, consumer surcharges
or overall federal spending. Rural America's needs can be met by distributing
the existing money more fairly. Comprehensive reform is needed, but it will be
complex and controversial. In contrast S. 1380 and HR. 1582 are non-controversial,
targeted reforms that enjoy broad support from both Republicans and Democrats,
as well as from rural, labor, business, and other organizations. After
the press conference the CLEAR Coalition sent a letter to Senator McCain, Chairman
of the Senate Committee on Commerce, Science, and Transportation. The letter emphasized
that:
Congress
established the USF to replace the old system of "implicit" rural phone subsidies
and ensure affordable, up-to-date telecom services in all parts of rural America.
However, under current rules, most rural areas receive little or no support from
the USF if they are served by one of 30 so-called "non-rural carriers," which
actually serve the majority of rural consumers. Instead, under this key component
of USF, nearly 90 percent of the funding goes to just five states. Another five
states split the remaining 10 percent, and 40 states - including Arizona and many
others with significant rural areas - receive zero support.
The U.S. Senate Commerce Committee may vote as early as July 20 on legislation
that would deliver millions of dollars to more than 40 states for investment in
rural telephone networks.
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