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Large Regulation With Extra Unintended Consequences

The next time you order a pizza, try to imagine how many combinations of toppings, crust, and cheese are possible. If you think it’s astronomically high, you’re exactly right – it’s actually over 34 million (according to Domino’s who helpfully did the math). Now consider a provision within the Affordable Care Act that requires chain restaurants to feature detailed breakdowns of ingredients and calories in each possible variation of fresh made foods.

Do individual Papa John’s and Domino’s locations have room for 34 million signs for each pizza combination? If they did, would anyone even see them? The vast majority of their customers get their pizza delivered.

While the intent of these new regulations – aiding consumers in making more healthy dietary choices – is admirable, the unintended consequences are potentially disastrous, particularly if they were extended to related industries like supermarkets and convenience stores as the FDA is now attempting to interpret.

The Food Marketing Institute (FMI), who advocates in Washington on behalf of its 1,500 food retailers and wholesalers, argues strongly that the menu labeling law does not regulate grocery stores and that a law written for chain restaurants shouldn’t be applied to them. FMI estimates that costs associated with supermarkets’ compliance with the new regulations would exceed $1 billion, including nutrition analysis of each item, developing corresponding menu boards and signs, store-level training, and record keeping.

Erik Lieberman, counsel for FMI, explained the potential effect on grocery stores in a recent interview with the Washington Examiner:

“Consider just one fresh-baked blueberry muffin. If one is sold, you need a nutrition sign or sticker. If a half dozen are sold, a different one is required. Same if you sell a dozen.”

Thankfully, professional advocates and a bipartisan group of legislators are bringing some common sense to this process with the introduction of the appropriately named “Common Sense Nutrition Disclosure Act of 2012”. The House bill and its Senate companion would amend the current regulation to allow for sensible solutions like allowing restaurants to provide nutritional information on the Internet – not in 34 million signs.

In the policy making process, good intentions often have unintended consequences and professional advocacy plays a critical role in ensuring common sense in the end.

Lobbying On the Edge

The ‘fiscal cliff’ – automatic tax increases and spending cuts set to take effect on January 1st, 2013, isn’t just dominating the news, it’s top of mind for lobbyists as they work with lawmakers during the lame duck session to help avoid potentially devastating economic effects.

While there is still much disagreement on exactly how to step back from the “edge” of the fiscal cliff, there is near consensus on all sides that it must be avoided.  If not, many economists fear the combination of $500 billion in tax increases and blunt spending cuts could pull the already fragile U.S. economy back into recession.

Nearly every industry and interest group would be affected.  For their part, business leaders continue to urge President Obama and congressional lawmakers to find the quickest possible resolution.  Some, like Morgan Stanley Chief Executive James Gorman, have even taken the unusual step of asking their employees to join in the lobbying effort to avoid the cliff by contacting their members of Congress.

Understanding that business will play a significant role in the negotiations, President Obama is scheduled on Wednesday to speak to the Business Roundtable, an advocacy organization comprised of chief executives of leading U.S. companies.  Business leaders and many Republicans on Capitol Hill have stated their desire to extend the current tax rates for all Americans through 2013, something the administration doesn’t support.

As the January deadline approaches, we are presented with a prime opportunity for quality professional advocates to help bridge the divide between the White House and Capitol Hill and find a solution that eases uncertainty and promotes a stronger, healthier economy.

Cyber Monday Trending on Capitol Hill

Big sales aren’t the only thing attracting lots of attention to the busiest online shopping day of the year. A broad coalition of businesses and lawmakers are working to advance legislation during the lame duck session that would make this the last year Cyber Monday shoppers largely avoid paying sales taxes on their purchases.

The Hill reports:

Under current law, states can only collect sales taxes from retailers that have a physical presence in their state. People who order items online from another state are supposed to declare the purchases on their tax forms, but few do.

The Marketplace Fairness Act (MFA), authored by Sens. Dick Durbin (D-Ill.), Mike Enzi (R-Wyo.) and Lamar Alexander (R-Tenn.), would empower states to collect taxes on online purchases. The bill exempts small businesses that earn less than $500,000 annually in out-of-state sales.

The National Retail Federation, which advocates for millions of retailers of all sizes, has come out in strong support of “sales tax fairness”. From the NRF Retail Means Jobs website:

It’s time to level the playing field so all retailers — no matter which channel they sell in — can remain competitive. While a number of states have passed their own legislation attempting to address the issue, NRF believes the solution to sales tax collection must be mandated by federal law; be fair and apply to all sellers; and be flexible enough for states to adopt and sellers to comply.

 

Those opposed to the legislation including ecommerce giant eBay Inc. cite concerns that MFA will actually raise taxes and further complicate the tax code and burden on small businesses in particular:

eBay believes that including a robust small business exemption in any Internet sales tax bill is critical to ensuring small businesses play an important role in the Internet marketplace. Therefore, eBay Inc. opposes any attempts by Congress to pass legislation that does not include robust protections for small businesses across the country.

According to research firm comScore, Cyber Monday sales will hit $1.5 billion in 2012 , up 20 percent from 2011, so it’s clear there’s a great deal at stake and advocates from both sides of the issue will working hard to make their case before lawmakers and staff on Capitol Hill. If you’d like to take a break from shopping to show your support for either side of this issue, you’ll find NRF’s grassroots advocacy page here, and the corresponding eBay effort here.

What do you think? Should Congress enact a national Internet sales tax? Tell us why or why not in the comments below.

Giving Thanks For Advocacy

This week as we gather with family and friends to celebrate all we have to be thankful for, take a moment to consider how fortunate we are as a nation to have knowledgeable, experienced professionals working together with elected officials to produce sound public policy. That’s right – be thankful for lobbyists.

No, we’re not kidding.

Yes, advocacy as a trade, and lobbyists in particular, have long played a popular villain in the media and on the campaign trail, and like any industry there are ample bad actors that can be used to support that narrow view. The facts are far less sinister though: professional advocates play a critical role in our government, one that affects nearly every aspect of our daily lives, and even holidays.

However you decide to travel to your destination this Thanksgiving, local and federal lobbyists have played a role. Advocates have fought to modernize your roads and keep the planes you fly in safe.

When you’re at the local supermarket picking up this year’s turkey and other foods that make this holiday so delicious, consider the men and women working for the farmers, the transporters, the grocers, and the consumers to ensure your food is safe, affordable, and plentiful.

Even as you doze off on the couch with one eye on the football game, advocates play a role. They’re working for the NFL, the players, the cable providers, and many others, to produce the product we enjoy every week.

All of this is possible because of the fundamental right as Americans to petition our government. Whether you’re a seasoned professional advocate or a concerned citizen, the First Amendment to the Constitution guarantees your right to be a lobbyist.

That’s something we can all be thankful for.

Tomorrow We’re All Lobbyists

Here at the Bryce Harlow Foundation, much of our time is spent working with lobbyists and future lobbyists to help increase the quality of professional advocacy in the nation’s capital. The business of helping to develop sound public policy can sometimes seem insulated from the rest of the country, and out-of-reach to many Americans.  Tomorrow, and every other November, all of that changes as every citizen has the chance to use the most powerful lobbying tool available: their vote.

Whether you’re passionate about jobs and the economy, education, health care, entitlement reform, or any other issue – tomorrow is your chance to have your voice heard and do your part to shape our government.

To do that, you need to get to the polls.  While the most accurate and up-to-date information on where to vote is kept by your local election official, there are a number of tools available on the Internet to help you find your polling place and even show you what will be on the ballot.

If you click on the image below, you’ll be taken to Google’s Politics and Elections Voter Information page.  There you can enter your address to find your polling location and get more information on the candidates and issues.

find your polling place

Bryce Harlow once summed up his philosophy by saying: “If informed, responsible citizens… will devote an increasing share of their organizational skills and ability to influencing public affairs, then America’s liberty and America’s future will be secure.” Voting is all Americans’ greatest opportunity to do just that –  influence public affairs and secure their future.

Don’t miss your opportunity to lobby for what you care about – get out and vote tomorrow.

The Bryce Harlow Foundation is Social

Today we have some exciting news about the Bryce Harlow Foundation, and how we’re finding new ways to promote the highest standards for lobbying and government relations.

Like many industries, advocacy is changing to keep pace with a rapidly evolving media landscape. We’ve recently increased our efforts online and in social media, and we’d like you to get involved.

Take a moment to like BHF on Facebook and share with your friends. On Twitter, you’ll find real-time news and views on advocacy via @BryceHarlowFdtn

On our social channels you’ll find news, links, images, and discussions on lobbying in DC and around the nation. Our views are just the beginning – we hope you’ll add your voice to the discussion and invite others to join us.

If you’re here, you’ve already had a look at the newly redesigned BryceHarlow.org. Please take some time while you’re here to check out more about:

  • Bryce Harlow: Learn about the namesake of the foundation that served as a trusted counselor to presidents, Congress, and private enterprise.
  • The Bryce Harlow Board and Fellows: Find out more about the esteemed group of Washington representatives that lead the Foundation, and the fellows that represent the next generation of professional advocacy. You can also find out if the fellowship is right for you, and apply online in January.
  • Advocacy Forums: Whether you’re looking for an expert to speak at your organization, or you’re a lobbyist interested in sharing your experience with students, we can help.
  • Awards Dinner: Enjoy the highlights of last year’s Bryce Harlow Awards Dinner and register now for next year’s popular event.

While the ways we communicate may be changing, the need for integrity and high standards in government relations never will.

The Awards Dinner

The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession. The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession. The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession.

The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession. The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession. The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession.

The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession. The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession. The annual Bryce Harlow Awards Dinner brings together the Washington government relations community for an evening of celebration and recognition of the best in the profession.

The Foundation

The Bryce Harlow Foundation is dedicated to enhancing the quality of professional advocacy and increasing the understanding of its essential role in the development of sound public policy. The Bryce Harlow Foundation is dedicated to enhancing the quality of professional advocacy and increasing the understanding of its essential role in the development of sound public policy.

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