WASHINGTON — With considerable support for business in Washington these days, it may be more important than ever for distributors to stand up and let their voices be heard.

That was a key message at the recent Executive Summit of the National Assn. of Wholesaler-Distributors, a trade association representing the wholesale-distribution industry. The meeting came during an exciting time in Washington – January 27-29, as President Bush prepared for and delivered his State of the Union address. Talk of war and the economy took center stage as NAW members listened to the predictions of politicians, news analysts and economists.

Speaker upon speaker at the two-day meeting noted the friends businesspeople have in the nation's capital today – especially at 1600 Pennsylvania Avenue. Individuals and groups like NAW are hoping such a climate paves the way for action on the President's economic stimulus plan, permanent repeal of estate taxes and the formation of association health plans, to name a few issues that top the business agenda.

"This administration is doing everything possible to put more money in the pockets of the American taxpayer," Secretary of Labor Elaine Chao said during a speech to the NAW meeting on Tuesday, January 28. She urged passage of the president's economic stimulus package and previewed the State of the Union address by telling attendees, "I think you're going to like what you're going to hear."

Chao referred to the president's economic plan as a "blueprint for a stronger economy," noting that the Bush administration's theme is fewer taxes, support of the entrepreneurial spirit and job creation.

When it comes to action on many of these issues, the politicians say they can't do it alone, however. Support from individuals, companies and trade associations is a vital part of the democratic process, Senator Jim Talent, R-Mo., told NAW members in a lunchtime speech on Wednesday, January 29.

"I just want to encourage you to continue your advocacy and believe it makes a difference, because it does make a difference," Talent said.

He pointed to progress made on the estate tax issue in the last two years. The estate tax rate was scaled back as part of the Tax Relief Act of 2001, but permanent repeal has been the mission of business advocates, who continued to push for that last year. A bill to permanently repeal the estate tax – which can claim a significant portion of a person's accumulated wealth when they die — was passed in the House last year, but did not get the 60 votes needed to surpass opposition from Democrats in the Senate.

Strides were made in part, Talent said: "Because you all advocated effectively for it … you made that case so well."

Permanent repeal is something Talent and others say may become a reality in this Congress. President Bush re-stated his commitment to the issue in his budget proposal to Congress on February 3, rolling out a plan to permanently repeal estate taxes along with eliminating taxes on stock dividends.

Repeal of the estate tax is viewed as a win for small-business owners who want to pass their companies on to their children.

The estate tax issue remains a top priority for NAW, second only to pushing for passage of the president's economic stimulus package. In an announcement supporting the president's plan, NAW president Dirk Van Dongen said it will help restore business and consumer confidence in the economy.

"Economic growth means more jobs. Growth reduces deficits caused by soft economic activity. We need to pass the president's proposals quickly, and NAW's members will work hard to make this happen," Van Dongen said.

Secretary Chao echoed those sentiments, pointing to the proposed elimination of dividend taxes and the tax incentives for small business as important steps that will impact American companies. The tax incentives for small business – specifically, a proposal to increase the expensing limits for equipment purchases from $25,000 to $75,000 – are especially important, she said, because small business is the "engine of job creation" in the U.S. economy.

Rounding out NAW's top three concerns is an effort to pass legislation forming association health plans, said senior vice president-government relations Jade West. This year, lawmakers are expected to introduce legislation that would allow national associations, such as NAW, to offer health coverage to their members. Congress has twice tried to pass association health plans within the Patients Bill of Rights, but failed to get Senate support.

This year, things may be different.

"We're more optimistic than we've been in the past," on this issue, West said.

That's because the rising cost of health care has become such a major issue nationwide.

Proponents of association health plans say they would increase competition in the health insurance market, driving down costs for businesses — especially small ones. Opponents worry the plans would waive state-mandated coverage requirements, leaving only the youngest and healthiest workers with affordable coverage.

Allowing business associations to pool members across state lines requires pre-empting state law and operating under the federal statute known as ERISA, the Employee Retirement Income Security Act.

Despite the opposition, Sen. Talent is confident that an association health plan bill will become law this year. Talent was a proponent of the issue during his tenure in the House of Representatives and told NAW the issue will have his support in the Senate.

Talent also said association health plans will help lower healthcare costs by 10 to 20 percent – good news for millions of small businesses finding it increasingly difficult to provide employees with health insurance.

Also on the radar screen of business advocates is inside sales reform, an issue that languished in Congress last year. For several years, business groups like NAW have pushed for inside sales reform, which would exempt inside salespeople from certain wage and hour laws. The argument is that inside salespeople perform the same or similar duties as outside sales personnel, and therefore should be paid on a salary and commission structure, not by the hour.

West is hopeful that a proposal to update the Fair Labor Standards Act of 1938 will lead the way to renewed action on the inside sales issue. The Department of Labor submitted FLSA regulatory change recommendations last year to the Office of Management and Budget. The OMB is expected to publish a final draft of the changes – which supposedly address the exempt/ non-exempt status of employees – by the end of the first quarter.

"We're hoping that strengthens our hand to get a legislative fix," for inside sales, said West.

NAW has joined with other business allies to revive the inside sales issue and hopes to introduce another bill on the subject this year.

Whatever happens on Capitol Hill in 2003, West agrees with Talent and others that it's vital for businesspeople to stand up and be heard on the issues that concern them.

"Stay involved, stay en-gaged," West advised. "The business voice is a growing voice."

Industrial Distribution Assn. president Mort Harris agrees. Harris attended the NAW Executive Summit and said he was encouraged by the speakers' words.

"I came back and told a lot of my friends that, if you think your vote doesn't count, you're wrong," said Harris. "Not only does your vote count, but so does your voice."