VOLUME No: 63 Issue No:2

Washington, D.C. - July 9, 2004

Senate to Vote on Tort Reform

The Senate will vote this week on a Republican backed “tort reform” bill aimed at revamping the nation’s civil litigation system. The bill, sponsored by Sen. Chuck Grassley (R) of Iowa has drawn a considerable amount of support compared to past GOP tort reform attempts. Eleven Democrats in the Senate have indicated their willingness to back the bill giving Senate Republicans at the least 62 votes.

The legislation, if passed, would shift many class-action lawsuits into the federal judicial system in an effort to stop lawyers from using state courts who often times hand out huge damage awards. Supporters of the legislation emphasize the need to end “jackpot justice” that continually enriches lawyers and provides little reparation to the actual victim.

With congress coming to an end later this month, many Senate Democrats see the bill as a last ditch effort to get votes, in the form of amendments, on other big issues. Democrats are insisting, in order for the bill to pass, the Republicans must vote on various issues including minimum wage extension, global warming and an extended ban on assault weapons. The vote is scheduled for Friday morning.

Candidates Debate over Small Business Tax Breaks

Both President Bush and democratic presidential candidate John Kerry are making small business the centerpiece of their economic program. Both believe that emphasis on small business can help spark entrepreneurship, create jobs, and provide health coverage among American workers and business owners.

President Bush hopes to make permanent his individual income tax cuts passed in 2001 pointing to the 1.4 million jobs created since last August. The Whitehouse contends that small business owners should be treated as individual investors, estimating that 90 percent of small businesses file their taxes as individuals. Presumptive democratic nominee John Kerry, the ranking member of Senate committee on small business and entrepreneurship, favors adding new benefits for manufactures. Kerry hopes to slowly repeal Bush’s tax cuts while funding new initiatives for small business such as easier access to loans.

Cost of Government Day Fell in 2004

Each year, Americans for Tax Reform releases a report which details the total cost of government to American taxpayers from spending and regulations and calculates the date of the year the average American is done paying for those costs. Cost of Government Day for 2004 was July 7th this year

In 2004, the average American will need to work one less day than was required in 2003 which marks the first decline after three straight years of increases. As a result, the size of government is still 5 percent higher than in 2000 and the average American needs to work nine more days to pay for the cost of government than was required just four years ago.

2004 Election Update

Kerry Chooses Edwards as Vice Presidential Candidate

Business groups are not thrilled about John Kerry’s choice of John Edwards to be his vice-presidential running mate. Edward’s vocal opposition to NAFTA and his voting record against pro-business bills have many in the business community worried. U.S. Chamber of Commerce President Tom Donohue said his group would endorse Bush if Edwards is selected.

Besides being unfriendly on trade and tax issues, another area of concern is tort reform. Edwards is a trial lawyer and a Kerry-Edwards presidency could impede efforts to reform class-action suits, asbestos litigation and medical-malpractice cases.

Edwards Impact on Senate Race

Besides the Presidential Race, many democrats are hoping that John Edwards (D-NC) as the vice-presidential nominee can help them in several Senate campaigns. There are five southern Democratic Senators retiring this year and in an increasingly Republican region, the Democrats are hoping for a boost from Edwards being on the presidential ticket. The five open southern Senate seats are in Georgia, Florida, Louisiana, North Carolina, and South Carolina.