NPES Leaders Urge Congress to Act on Economic Stimulus Plan
Press release from the issuing company
"Congress needs to follow President George W. Bush's lead in quickly approving an economic stimulus plan that will renew consumer confidence and re-ignite the U.S economy," declared newly elected NPES Chairman, David Reny, Vice President and Managing Director, Standard Finishing Systems. "An absolutely vital element of economic recovery must be increased capital investment by American industry," Reny continued. He commended the U.S. House of Representatives for passing H.R. 3090 The Economic Security and Recovery Act of 2001, and urged the Senate to do likewise.
After the terrorist attacks of September 11 additional economic relief became crucial to consumer confidence, increased investment and the overall well being of the U.S. economy. H.R. 3090 includes the repeal of the corporate Alternative Minimum Tax with immediate refund of past credits; 30% expensing of all assets acquired between September 11, 2001 and September 11, 2004; accelerated tax rate cuts for individuals; deferral for active financing income (subpart F exemption); and tax relief for lower and moderate income workers.
NPES' other new officer, Treasurer, Gerald F. Clark, Vice President, Sales, Commercial Web, MAN Roland, Inc. especially emphasized the importance of the 30% expensing provision of H.R. 3090, stating that "accelerated depreciation of capital equipment will not only help the economy through this current downturn, but is also good solid long-term tax policy for future growth."
In an effort to urge support for this policy, Clark's company, along with several other NPES members hosted White House aid Susan Ralston, Executive Assistant to Karl Rove, The Senior Advisor to President Bush and Bridgette Johnson, Legislative Assistant to Congressman Richard Neal (D-MA) at PRINT 01, September 9-13, McCormick Place, Chicago, IL. Clark and other NPES member company executives showed the Washington guests some of the most innovative technology in the printing, publishing and converting industry and discussed with them some of the issues that directly affect the industry. "This was a great opportunity for these policy makers to see first-hand the likely benefits accelerated depreciation would have on a
capital intensive industry and the healthy by-products it would provide to the economy," Clark added. In this respect, the expensing provisions of H.R. 3090 are similar in their objective to those of H.R. 2485 The High Productivity and Investment Act, introduced by Congressman Phil English (R-PA) and Richard Neal (D-MA).
NPES' focus now shifts to the Senate where an alternative $75 billion Democratic bill, introduced by Senate Majority Leader Tom Daschle (D-SD) and Senate Finance Committee Chairman Max Baucus (D-MT), lacks many of the necessary provisions to ensure economic recovery. NPES views this legislation as lacking the strength to produce increased consumer confidence and investment in the business sector, and is particularly concerned that the depreciation provision only calls for 10% expensing for one year for new investments.
The repeal of the corporate Alternative Minimum Tax is also at the top of the list for NPES and many business leaders. A misnomer, the AMT is really a revenue-enhancing device that targets corporate taxpayers that use various tax preference items, such as accelerated depreciation, to reduce their regular tax liability.
Addressing NPES' recent Annual Meeting, Newth Morris III, President, Dixie Printing, Inc. stated, "although I have been able to use some AMT credits from prior years, I expect that my company will continue to be ensnared in the AMT in the future as I make further investments for the best interest of my company." Morris emphasized,
"Repeal of the corporate AMT is a must because it discourages capital investment which is a key element to turning our staggering economy around."
Morris' suburban Maryland package printing plant was the site of a recent policy speech by President Bush. F. Scott Macfarlane, Vice President and General Manager, Smurfit-Stone, who also spoke to the NPES meeting, echoed his sentiments.
NPES is a U.S. trade association representing more than 470 companies engaged in manufacturing and importing for sale or distribution of machinery, equipment, systems, software and supplies used in every printing, publishing and converting process from desktop design and image generation and processing to multiple output options and targeted dissemination systems. NPES is a co-sponsor of PRINT, GRAPH EXPO and CONVERTING EXPO, the leading expositions of printing, publishing and converting technologies in the Americas, and the regional exhibitions MIDWEST GRAPHICS in Minneapolis, GRAPHIC ARTS/THE CHARLOTTE SHOW in North Carolina, THE GUTENBERG FESTIVAL, in Long Beach, California, and the VUE/POINT Conference.
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