January 25, 2021

#RallyForRecovery Advocates for Putting Employees Back to Work

The U.S. Chamber of Commerce is making another push to urge lawmakers to support COVID-19 recovery legislation.

The latest effort asks businesses to send a letter to their congressional representatives asking them to turbocharge vaccination efforts, pass a fiscally and environmentally responsible infrastructure package and address the country’s workforce challenges, including working training programs and fixing the immigration system. FEDA members interested in signing on to the letter may do so by visiting this page.

Additionally, the Chamber has created the hashtag #RallyForRecovery and the 2021 State of American Business Toolkit to help businesses reach lawmakers on social media.

At the recent 2021 State of American Business address, U.S. Chamber CEO Thomas Donohue said: “Working together, we can recover and rebuild, we can reform what’s broken, we can reaffirm our leadership, and we can renew the American promise of equal opportunity for all… Let’s go do it.
 

December 18, 2020

Urge Your Legislators to Allow PPP Deductions

Summarized from Jade West, National Association of Wholesaler-Distributors
 
Negotiations continue on a new COVID-19 relief package, but an agreement has not been reached on some significant issues. Among the outstanding issues is how to treat the deductibility of expenses paid with the Paycheck Protection Program (PPP) loan. The business community in Washington D.C. has been fighting an aggressive battle with some on Capitol Hill wanting to limit the deductibility to businesses that took out very small loans. If not that specific policy, we are told that “some compromise” will be in the final legislation, meaning that some PPP borrowers will not be able to deduct PPP-paid expenses.
 
We are arguing – emphatically – that all PPP borrowers who maintained payroll, especially through the grim first few months of the pandemic, should be entitled to the protections of the language of the CARES Act enacted in March. Nonetheless,  arguments are being made that deductibility should be denied to some PPP borrowers, presumably borrowers of larger loans. The statute made no distinction between the size of the loans when it mandated that all PPP proceeds are to be non-taxed income. Clearly, denying deductibility of PPP-paid expenses of ANY employers makes that part of the loan taxable.
 
If you are a PPP borrower, please call your Representatives and Senators NOW to tell them to enforce the law for ALL employers, not just some. Congress should not be picking winners and losers among the employers who all played by the rules. Tell them how many jobs you protected with your PPP loan and why a tax increase is both unfair and a threat to your business and your workers.
 
You can reach every office on Capitol Hill by dialing 202-224-3121 and asking for the office of your senators and representatives. Congress is in session now and that is the fastest way to make your voice heard. To find your U.S. representative and his or her contact information, visit house.gov/representatives and enter your home zip code in the top right corner. For your U.S. senators, visit senate.gov and click on the “Find Your Senators” by state dropdown menu in the top left corner.
 
There are multiple moving parts to the effort to get a new COVID-19 relief bill passed by Congress and signed by the president. This report is current as we write it, but the situation is very fluid and changing fast. We will keep you updated as the process moves forward.
 
December 14, 2020

Association Reports Broad Bi-Partisan Support to Reverse IRS Ruling

Summarized from Jade West, National Association of Wholesaler-Distributors

Extension and possible expansion of the Paycheck Protection Program (PPP) will almost certainly be included if a COVID-19 relief package gets through Congress this month. Moreover, even if a larger COVID package is not agreed to, there is still a chance that a PPP bill could pass.

One of the key issues to be decided on the PPP is whether Congress will pass legislation to reverse the IRS ruling that PPP borrowers cannot deduct otherwise-tax-deductible expenses if paid with a forgiven loan. There is broad and bi-partisan support in both the House and Senate for fixing this IRS-created problem, but Treasury Secretary Steven Mnuchin is adamantly supporting the IRS position and opposed to Congress acting to reverse the agency decision. NAW and our association colleagues have been aggressively working to persuade Congress to act to enforce Congressional intent despite the Secretary’s opposition.

To contact your legislators and urge the reversal of the IRS ruling, please visit this page.

In an op-ed in the Houston Chronicle, Sen. John Cornyn (R-TX) said it’s time for Congress to pass the Small Business Expense Protection Act to safeguard small businesses’ tax deductions during this unprecedented pandemic. The Small Business Expense Protection Act will clarify Congress’ intent and ensure businesses are still able to deduct these business expenses as usual. The bill has three dozen bipartisan cosponsors, and this fix won’t cost one more dollar of federal money than expected because this was Congress’ intent all along.