Stuart Rothenberg, editor and publisher of Rothenberg Political Report and columnist for Roll Call, of- fered insight on the upcoming election and fi ght for the White House at the recent American Foundry Society Government Affairs Conference.
exemption will drop from $5.12 mil- lion to $1 million if no action is taken before Dec. 31. T e tax rate also will jump from 35% to 50%. Both inci- dences would discourage investments in the growth of small and medium- size manufacturers. T e Death Tax Repeal Permanency
Act proposes to make the 35% gift rate permanent and establish a $5 million lifetime gift tax exemption. Modifi ca- tions also would repeal the federal estate tax and generation-skipping tax.
Last-In, First-Out T e last-in, fi rst-out (LIFO)
expired again in December 2011. Two bills, the American Research
and Competiveness Act of 2011 and Greater Research Opportunities With Tax Help Act are currently in front of the Senate’s Committee of Finance for review. T e bills would make the R&D tax credit permanent, increase the rate from 14% to 20%, and modify the rules for calculating the credit.
Death Tax Repeal Permanency Act Of particular importance to
family-run businesses, including many metalcasting facilities, the estate tax
accounting method has been used by companies that carry inventory for close to 70 years. It allows metalcasters to match their current sales revenues with inventory replacement costs and, in many cases, reduces income tax liability. President Obama included a
proposal to disallow the use of LIFO in the budget he recently submitted to Congress. Repealing the act would cause a wide range of metalcasting facilities to be hit by a tax increase and a decrease in working capital. Congress has yet to take action on
the president’s FY2012 budget, leaving LIFO in limbo.
THE RULEMAKING PROCESS
Regulatory Accountability Act T e Regulatory Accountability Act,
received in the Senate and read twice before being referred to the Com- mittee on Homeland Security, would make the following amendments to federal rulemaking processes: • Agencies would be required to perform a cost-benefit analysis of their regulation.
• Agencies would have to adopt the least costly alternative.
• Requirements would be expanded for independent agencies.
• An advance notice would have to be published at least 90 days before publishing a notice of the proposal for new major rules, high impact rules and rules involving novel legal or policy issues.
• Retrospective review would be allowed in outdated regulations.
• Judicial review would be provided if new guidelines are not followed.
Sunshine for Regulatory Decrees and Settlements Act of 2012
In recent years, “sue and settle” law-
suits have occurred more frequently, leading to the creation of many con- troversial rulemakings. Many agencies have reported an increase in lawsuits being brought against them and the number of consent decrees/settle- ments they have entered. T e so-called Sunshine Act attempts to bring light to a closed door agreement process that many times leaves out scientifi c judgment
June 2012 MODERN CASTING | 33
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