BANKRUPTCY BILL CLEARS SENATE

Next Stop: President’s Veto Pen?

 

            With a speed and ease that astonished supporters and opponents alike, the Senate this week easily approved long-stalled bankruptcy reform legislation by a veto-proof 70 to 28 margin.  The victory puts the bill one step from enactment or, should the White House follow through on numerous threats, a Presidential veto.

            Members of the Senate returned to Washington to resume the lame duck session after a Thanksgiving break and almost immediately took up a pending cloture petition on H.R. 2415, the ‘Bankruptcy Reform Act of 2000.”  After a brief debate, the Senate mustered 67 votes to approve the cloture motion.  With deliberations limited to 30 hours, opponents took turns attacking the bill until the time expired. 

            As the black clouds of the Administration’s veto threat hung over the Capitol Building, Senators dutifully showed up to cast their votes.  After a few tense moments, the Clerk of the Senate officially announced:  “The Yeas are 70, the nays are 28, with one Senator voting ‘Present.’  The measure is agreed to.”  As supporters congratulated themselves, White House staffers immediately renewed the veto threat.

            In the end, 17 Democrats joined all but one Republican in support of the measure, despite furious last minute lobbying by an Administration trying to keep the vote below the two-thirds required for a veto override.

            The concern now for supporters is how long Congress will remain in session.  If legislators complete their work on the remaining appropriations measures and adjourn in the next 10 days, the President can simply do nothing, resulting in a ‘pocket veto.’  However, if Congress stays in town, the President will be forced to put pen to paper to veto the measure and face the possibility of an override.  Some Senators have expressed their desire to prolong the legislative session to prevent a pocket veto, but it is unclear if Senate leadership will oblige them.

            NRF urges its members to write their Senators who voted in favor of the bill to thank them for their support of bankruptcy reform and ask them to contact the White House and urge the President to sign the bill.  A list of how the Senate voted and a sample letter are available on NRF’s website at http://www.nrf.com/.

            If you have any questions, please contact Mallory Duncan or Katherine Lugar at (202) 783-7971.

 

 

IRS SIMPLIFIES TAX DEPOSIT RULES FOR SMALL BUSINESS

            In a move to simplify a major area of tax administration, the Internal Revenue Service will end monthly tax deposit requirements for nearly 1 million small businesses.  Starting January 1, 2001, many small businesses will be allowed to make employment tax payments on a quarterly rather than a monthly basis.
            Under the new rules, the IRS will allow businesses to make payments every three months if they have less than $2,500 in quarterly employment taxes.  It replaces the current standard, which allows quarterly payments only if businesses have less than $1,000 in quarterly employment taxes.  Many small businesses above these threshold levels must make payments on a monthly basis.
            The change creates a number of advantages for small businesses:

o        IRS notices to small businesses are expected to decrease nearly 70 percent as there are fewer deposits;

o        With fewer deposits, small businesses will encounter fewer mistakes and fewer penalties; and

o        Payments on a quarterly basis will help small businesses on cash flow issues.

            Previously, the threshold had been $500 and was raised to $1,000 on June 17, 1998. After further study by the IRS, the agency produced regulations to increase the threshold to $2,500.  The Treasury Department is expected to issue new regulations within a few days.
            If you have any questions, please contact Scott Cahill at (202) 626-8168.

 

 

NRF COMMITTEE TACKLES PRIVACY ISSUES

 

            With a range of privacy issues capturing the attention of the media and legislators at the state and federal level, NRF has created a committee to help its members deal with the legislative and regulatory challenges that are sure to follow.

            The Privacy Working Group, created in December 1999, is charged with providing resources and back-up to the state retail associations on privacy issues affecting the retail community at the state level.  This is accomplished through a multi-pronged approach.  Privacy experts Professor Fred Cate (Indiana University) and Professor Mike Staten (Georgetown University) have been retained to develop a series of papers on various aspects of the privacy issue.  These papers will serve as persuasive tools for lobbying efforts by the state retail associations in their respective states.  Professors Cate and Staten have also been retained to assist in the preparation and presentation of written and verbal testimony at hearings, and in private meetings with state lawmakers.  The Working Group also serves as a facilitator for information sharing of legislative and regulatory activity at the state and federal levels. 

            Participating companies are required to provide a financial contribution.  If you would like more information on the Privacy Working Group or on privacy issues, contact Sarah Whitaker at (202) 626-8109.

 

 

RETAIL FACTOID

 

Total Holiday & Annual Retail Sales

 

Year            Holiday GAF Sales           Annual GAF Sales           Holiday's Share

                         (in millions)                   (in millions)                       Total GAF Sales

 

1999                $186,003                                $781,718                    23.8%

1998                $172,439                                $727,160                     23.7%

1997                $163,227                                $685,577                    23.8%

1996                $156,318                                $656,527                     23.8%

 

* GAF represents those retail formats where the bulk of consumer goods shopping occurs.  These formats include general merchandise, department, apparel, furniture, and miscellaneous shopping goods stores.  It does not include automobile sales or restaurants.

 

UPCOMING NRF MEETINGS

Independent Stores Board - January 13, 2001, New York, NY

General Counsels Forum - January 16, 2001, New York, NY

Washington Leadership Conference - March 27-28, 2001, Washington, DC

 

CONGRESSIONAL OUTLOOK

December 11 - 15

House: In session.

Senate: In session.