On behalf of over 300,000 of our supporters and activists across the nation, CFIF has written the following…
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CFIF to U.S. Senate: On Drug Prices, Say "NO" to Mandatory Inflation Rebate Proposals

On behalf of over 300,000 of our supporters and activists across the nation, CFIF has written the following letter opposing any use of Mandatory Inflation Rebate Proposals when it comes to the issue of addressing drug prices:

We believe that market-oriented solutions offer the optimal solution, and resolutely oppose any use of mandatory inflation rebate proposals – which would unfairly penalize a drug’s manufacturer with higher taxes whenever that drug’s price rises faster than inflation - that will make matters worse, not better. Among other defects, such a government-imposed penalty would undermine Medicare Part D’s current structure, which uses market-based competition to mitigate drug costs. Part D currently works via privately-negotiated rebates, meaning that no specific price…[more]

July 15, 2019 • 02:48 pm

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"Save Local Business Act" Before Congress Can Accelerate Job and Economic Growth Print
By Timothy H. Lee
Thursday, August 31 2017
[T]he 'Save Local Business Act' (H.R. 3441) would rescind one of the Obama Administration's most egregious bureaucratic abuses and restore decades of prevailing labor law.

Whatever evanescent controversy happens to induce media hysteria on any particular day in the Trump Era, jobs and economic growth remain the top priorities for Congress, the White House and the American public. 

To that end, this week brought a pleasant surprise when second-quarter economic growth registered at a more robust 3%, exceeding expectations and earlier estimates. 

And in the effort to cultivate even greater growth and job creation going forward, much-needed comprehensive tax reform has understandably taken center stage. 

As tax reform wrangling begins and actual legislation slowly takes form, however, there's already a bill before Congress that can ignite instant business confidence and job growth. 

Namely, the "Save Local Business Act" (H.R. 3441) would rescind one of the Obama Administration's most egregious bureaucratic abuses and restore decades of prevailing labor law. 

Here's the background, and why the bill is so important. 

Under longstanding court precedent and National Labor Relations Board (NLRB) interpretation, an "employer" for purposes of applying the nation's labor laws was generally defined to include only those businesses that determined the essential terms and conditions of employment. 

As a textbook illustration, imagine a franchise arrangement whereby the franchisee determines whom to hire, whom to fire, wages and other everyday working conditions.  The distant franchisor, in contrast, obviously doesn't fly every potential franchisee employee in for an interview at corporate headquarters or micromanage its franchisees' working conditions. 

On that logic, the Third Circuit Court of Appeals ruled in NLRB v. Browning-Ferris Industries (1982) that the appropriate standard for defining an employer with regard to a particular set of employees was established by the U.S. Supreme Court in Boire v. Greyhound Corp. (1964).  It held that only businesses exercising control over "those matters governing the essential terms and conditions of employment" were subject to collective bargaining requirements and liabilities. 

Two years later, the NLRB formally adopted that standard, ruling in separate cases that "there must be a showing that the employer meaningfully affects matters relating to the employment such as hiring, firing, discipline, supervision and direction."  In other words, an "employer" for purposes of labor law mandates required direct and immediate control over the terms and conditions of employment. 

That stands to reason, since it makes no sense to impose legal liability upon employers that don't actually control a bargaining unit's employment conditions. 

In August 2015, however, Obama's NLRB suddenly and needlessly upended that established legal standard by redefining what's known as the "Joint Employer Doctrine."  Essentially, the Joint Employer Doctrine allows multiple businesses to be held legally liable and responsible for the same set of employees. 

Thus, in the infinite wisdom of the Obama NLRB, even employers with indirect or even merely potential ability to affect employment terms could suddenly find themselves subject to federal labor law mandates. 

As you probably guessed, that reversal constituted a gift to union bosses and liberal politicians who receive union campaign donations.  It instantly allowed unions to target deeper pockets and streamline organizing campaigns.  As union membership continues to decline and unions’ ability to control elections has progressively waned over recent decades, they're desperate for methods to retain power and funding sources. 

Here's why all of that matters in terms of America's economy and job growth. 

Today, nearly 800,000 franchise enterprises exist in the United States, accounting for approximately 8.5 million jobs.  And according to an American Action Forum study, the Obama NLRB decision could reduce private sector employment by 1.7 million jobs, including 500,000 in the leisure and hospitality industry alone. 

In addition to the direct impact of jobs lost, that also translates to taxpayer pain in the form of more unemployment payments, Medicaid enrollment and other forms of government assistance. 

That's why the Save Local Business Act is of such immediate importance. 

The bill would overturn the Obama NLRB's recent joint employer redefinition, and restore decades of judicial and NLRB precedent by subjecting only actual employers exercising direct and immediate control over the essential terms and conditions of employment to federal collective bargaining liabilities. 

It was simply unfair and illogical for the Obama NLRB to extend federal labor requirements to businesses that do not hire, fire, set wages or supervise employees, and it jeopardizes thousands of businesses and potentially millions of American jobs. 

So while important tax reform negotiations begin in Washington, D.C., Congress can take an easy and important step toward improving economic and employment conditions by passing the Save Local Business Act. 

 

 

Question of the Week   
Which one of the following was the longest-serving U.S. Secretary of State?
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"[A]s ICE prepared to conduct a nationwide operation, Democratic leaders such as Nancy Pelosi held a press conference to instruct those who have violated our nation's laws on how they can evade federal law enforcement. How they can evade the law. How what ICE is doing is un-American and they need to resist.Are you kidding me?The Speaker of the House, a lawmaker for decades, is instructing those who…[more]
 
 
—Thomas Homan, Former Acting Director of Immigration and Customs Enforcement (ICE)
— Thomas Homan, Former Acting Director of Immigration and Customs Enforcement (ICE)
 
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