It has been an extremely busy week on Capitol Hill and next week should be even busier. There are a number of critical issues that NACS is actively following right now.
Petroleum Retailing/Price Gouging
Gasoline prices this week crossed the $3.00 per gallon threshold and that has brought out renewed calls to "fix" things. To get this started, the House Judiciary Committee's Antitrust Task Force has scheduled a hearing for Wednesday, May 16, to determine why gasoline prices are at record levels. As of last night, it was uncertain who would be invited to testify or what the overall scope of the hearing might be. Rumors indicate that this hearing would be followed the subsequent week by a hearing at the House Energy and Commerce Subcommittee on Oversight and Investigations. It is anticipated that Congress will follow regular order, proceeding with a committee vote on price gouging legislation in early June before commencing with consideration by the entire House of Representatives. However, given the media coverage regarding gasoline pricing and the political value affixed to the issue, it is possible that regular order could be set aside and legislation could be brought directly to the floor much more quickly than anticipated.
Meanwhile, the Senate still anticipates moving an energy bill shortly after Memorial Day. This bill would include the price gouging legislation adopted by the Senate Commerce, Science and Transportation Committee earlier this week.
NACS is working with members of Congress in both the House and Senate to ensure that any definition of price gouging provides retailers with the means necessary to respond to market conditions, meet competition and consider replacement costs when setting prices. We will provide regular updates as this important issue moves forward.
Tobacco
NACS is working with all major tobacco manufacturers and wholesalers to oppose a proposed increase in the federal tobacco excise tax. If it were to become law, this increase could be as much as 61 cents per pack. As you know, an increase in the federal excise tax would not only shift market share to black market operations, but also create an elevated crime risk within stores as tobacco products will have better "street value." NACS sent out an action alert asking its members to contact their senators and representatives to ask them to oppose any attempt to increase the federal excise tax on tobacco.
Estate Tax Update
In another positive step that says Congress has not forgotten about the estate tax, this week the Senate passed a motion sponsored by Senator Jon Kyl (R-AZ) that insists that the final budget plan contain a meaningful death tax compromise.
His motion was accepted by a bipartisan 54-41 vote. It includes specifics that push for an estate tax compromise with no higher than a 35 percent top rate, a lower rate for smaller estates, and an exemption of $5 million (indexed for inflation). This is another good sign that the Senate has not abandoned this issue. Hopefully the House will continue to move this issue forward as well.
Age Verification
NACS submitted concise comments (PDF) to the Department of Homeland Security supporting standardized machine-readable identification data on all drivers' licenses.
Tribal Recognition
Last but not least, NACS sent a letter (PDF) of opposition to Congress regarding the shortened debate on the recognition of additional tribes until Congress can fix the current process for tribal recognition.
Have great weekend!
Chris Tampio
Senior Director, Government Relations