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THINGS TO COME
HOW TO HOW TO
ENGRAVING LEGISLATION BY ASHLEY BRAY BY DAVID HICKEY
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Things to Come
A preview of possibilities during the Biden administration.
As the new year rolled in, it brought a new look in Washington. We saw the transition of the White House from Republican to Democratic, a split Senate (with ties broken by the Democratic vice president), and a tightening of the Democratic majority in the House.
No matter how you feel about the results personally, it is clear that a new presidential administration and new Congress can impact our industry in the months and years ahead.
Of course, there are complicating factors, such as the slim margins in Congress and the priority of fighting against COVID-19.
These may slow any initial changes. But looking at President Biden’s experience through four decades in the Senate and as vice president, we can get some insight into how he might govern.
During the campaign, Biden promised to provide incentives for smaller manufacturers (particularly those owned by women and minorities) and to invest in new technologies such as electric vehicles, 5G networks, and artificial intelligence.
Other campaign promises vowed to deliver universal paid sick days, twelve weeks of paid family and medical leave, and a fifteen-dollars-per-hour minimum wage.
There are issues that are bipartisan in nature, and with neither party completely dominating Congress, we might actually see some success here. That could include more infrastructure spending, stimulus packages to help the economy recover from the pandemic, workforce development programs, and immigration reform.
Here are a few areas that should be on your watchlist for 2021 and beyond: Tax Policy President Trump pushed through tax cuts in 2017 that have a high probability of being overturned in the new Congress, and which will especially affect those sign and graphics companies that file as S-corps, or pass-throughs.
It is anticipated that the top individual tax rate will increase from 37 percent to 39.6 percent and that we will see a phaseout of the 20 percent deduction for qualified business income.
It also is likely that the corporate tax rate will increase, too, from 21 percent to 28 percent.
The estate tax exemption is likely to return to pre-2017 levels of $5 million instead of the Trump-era $11 million.
HOW TO
LEGISLATION BY DAVID HICKEY
proach is likely to be tougher and bring with it a potential increase in enforcement. If you aren’t up to date on the regulations that impact our industry—crane operator certification, silica compliance, and others—visit signs.org/fedregs. It is always
good policy to ensure that you are in compliance, no matter the administration.
Energy It is anticipated that an emphasis on low- or zero-carbon energy and more green industry manufacturing will be a priority.
It also is possible that we will see a transition away from coal and fracking. There could be an increased tax on fossil fuels.
These policies can have a direct impact on our industry’s customers and may cause them to look for signs that are en-
ergy efficient or potentially to choose another type of sign to save on energy costs.
Health Care President Biden has vowed to strengthen Obamacare and to add a public option.
Its potential impact on employer-provided coverage is uncertain until we see some of the details that his plans will bring.
Conclusion This is a fairly tall agenda, and it is important to be informed about it.
ISA’s advocacy team is here, keeping an eye on these issues for you.
If you have any area of concern, please let me know at david.hickey@signs.org.
David Hickey is vice president of Government A airs at the International Sign Association.
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