US Analysis All right for some
Mussolini got the trains running on time, Hitler created jobs and brought inflation down. So, maybe (leaving aside the more pressing issues facing Americans under the administration) argues Sharon Harris, Donald Trump will be good for the attractions market…
The US Department of Justice (DOJ) quietly launched S
ince President Donald Trump’s inauguration on 20th January, his White House has launched a flurry of executive orders, meetings and policy amendments.
Some have successfully been passed; others have faced widespread protests around the world. Going forward, the Trump Administration wants to decrease or dissolve many Obama-era healthcare, labour, taxes, regulations and legislation written by former Congresses. Small business, especially those that employ more than 50 employees, have felt their impact for years. Perhaps the most consequential was the long-overdue
overhaul of America’s healthcare system, which despite improving care for millions of Americans (although severely watered down by Republicans), added significant costs to small businesses nationwide. Full-time (40-hour-a- week) employees often faced reduced hours to 30 or less - the new threshold - before mandated employer costs were assessed. Many suffered layoffs as employers nationwide took steps to minimise their financial liabilities. Quiet, unpublicised actions also took their toll until exposure motivated and organised pushback. This frequently resulted in court and federal agencies dismissing and/or negating many Obama Administration’s executive orders for overtime pay levels and union participation. These scenarios affected the amusement industry’s hundreds of small “mom and pop” arcade and street operations.
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www.globalamusementsandplay.com
Operation Choke Point (OCP) in 2013, but was revealed in a 2013 Wall Street Journal article. OCP proactively monitored more than 30 specific industries of the DOJ’s choice, deeming them money laundering or fraud risks. The list included ATMs, often supplied by amusement and vending operators, and tobacco, frequently sold via vending machines. ATMs regularly dispense fluctuating cash amounts. The initiative believed banks and payment processors were possible “choke points” that could identify and eliminate suspected illegal activity. Many banks cancelled longstanding customer relationships or froze accounts. In 2016, the Amusement and Music Operators Association (AMOA) reported several members facing sudden bank account closures or high compliance fees. The association joined other trade groups to support the Financial Institution Customer Protection Act (H.R. 766) legislation, which passed the House and went to the Senate. When President Obama threatened a veto, the Federal Deposit Insurance Corporation (FDIC), America’s national bank insurer, introduced modified rules. The FDIC also issued a Financial Institution Letter, urging a “risk-based approach” with customers. This letter, along with threatened legal action, has
dramatically decreased, but not ended these incidents. Those industries and many in Congress hope a Trump Administration will abolish OCP. American businesses also anticipate fewer
environmental and healthcare mandates they often considered punitive. Within days, several Executive Orders have already relaxed these former requirements, with more to come. The marketplace has reacted with more hiring. A soaring stock market is benefitting many large publicly-traded operators, equipment manufacturers and private investors. Banking changes may release more money for operator
loans. Since 2008, stringent federal regulations under the Dodd-Frank laws have controlled financial institutions and their lending practices. Trump wants to repeal Dodd-Frank, calling it detrimental to small businesses. Many experts
agree...many do not. A decision may be reached in 2017. Most PAVGA members are small family-owned
businesses. PAVGA projects hundreds of millions in tax revenues directed to Pennsylvania and its local municipalities. With safe operation, vendors and their suppliers may invest and hire more. You can join PAVGA at
www.info@
pavga.org.
February 2017
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