Supplier Group Urges Stimulus

After commending the House of Representatives for passing the Economic Security and Recovery Act of 2001 (H.R. 3090), NPES The Association for Suppliers of Printing, Publishing and Converting Technologies, Reston, Va., is now urging the Senate to pass legislation that includes the key provisions outlined in President Bush's economic stimulus plan.

In the Senate, finance committee ranking member Charles Grassley (R-IA) has drafted a similar bill, which NPES supports because it includes key provisions outlined in the President's plan.

An alternative in the Senate is a $70 billion bill, introduced by majority leader Tom Daschle (D-SD) and finance committee chairman Max Baucus (D-MT), which NPES views as lacking the strength to produce increased consumer confidence and investment in the business sector.

The group notes that the latter version of the economic stimulus plan contains provisions that are less beneficial to business.

For example, the House version, passed by a slim majority of 216-214, includes repeal of the corporate Alternative Minimum Tax with immediate refund of past credits and the 30% expensing of all assets acquired between September 11, 2001 and September 11, 2004 (for more, turn to page 22). The Daschle-Baucus version calls for just 10% expensing for one year for new investments.

Says newly elected NPES chairman David R. Reny (vice president and managing director, Standard Finishing Systems, Andover, Mass.), "Congress needs to follow President Bush's lead in quickly approving an economic stimulus plan that will renew consumer confidence and re-ignite the U.S. economy. An absolutely vital element of economic recovery must be increased capital investment by American industry."

Reny calls the accelerated depreciation of capital equipment a good solid long-term tax policy for future growth.

Last month, NPES, as one of the 1,000-plus members of the Tax Relief Coalition, announced its strong support for the President's tax stimulus plan. Earlier, the group had urged support for H.R. 2485, the High Productivity Investment Act, introduced by Reps. Phil English (R-PA) and Richard Neal (D-MA).

Remarks NPES government affairs committee chairman H.A. Brandtjen III (president of Brandtjen & Kluge, Inc., St. Croix Falls, Wis.), "As president of a small company that manufactures capital-intensive machinery, the expensing of capital assets, especially high-tech equipment, will undoubtedly increase investment and benefit small businesses and their workers."

Adds NPES president Regis J. Delmontagne, "President Bush's tax plan is a step in the right direction to restoring economic growth. The depreciation tax breaks are precisely what the U.S. economy and our members need."

The trade group represents more than 470 companies that manufacture and import machinery, software, and supplies for a range of graphic arts activities.

In September, NPES treasurer Gerald F. Clark (commercial web sales vice president for MAN Roland, Inc., Westmont, Ill.), along with other NPES member company executives, played host to Washington guests, who visited Chicago to see innovative technology on display at Print 01.

Clark called the visit a "great opportunity" for policymakers to sees firsthand the likely benefits of accelerated depreciation.

NPES also announced its support of H.R. 3005, the Bipartisan Trade Promotion Authority Act of 2001, and hopes for its approval by the end of the year. NPES international trade committee chairman Don Ohlig (managing director, Olec Corporation, Irvine, Calif.) explains, "The United States is long overdue in passing trade negotiation authority for the President. Now more than ever, the U.S. needs this authority to help improve the economy, international cooperation, and security."