Don't get mad �� get active! - legislations that affects the restaurant industry - Column

After assuming the presidency of the National Restaurant Association last month at our annual show in Chicago, I had a chance to talk with dozens of America's foodservice professionals. Throughout those conversations, a theme began to develop: Restaurateurs are deeply concerned that government is threatening to take away all they've worked so hard to get.

Many of you asked me how the effort to repeal the FICA tax-on-tips law is coming. You inquired about the Target Jobs Tax Credit. You asked if a proposed mandated health plan would be passed and if it would put you out of business. You wanted to know about new teen labor laws. And, I'm glad to say, many of you asked, "How can I help?"

I realize that for every operator to whom I spoke at the show, there are a 100 who have the same questions about these key issues. So here's an update on a handful of the issues that are vital to the industry and the association as I begin my term.

FICA Tax On Tips

In 1992 restaurateurs waged an extraordinary grass-roots war against the 1988 law requiring employers to pay Social Security (FICA) payroll taxes on all tips their employees earn. On March 20 we finally broke through. Congress approved a tax bill that included a tax credit to reimburse your FICA tax-on-tips payments. That same day, for reasons unrelated to our issue, President Bush vetoed the whole bill.

Nevertheless, the precedent has been set; our lawmakers now realize that the FICA law is unjust. Congress is likely to start drawing up new tax legislation this summer, and we'll again need your help to get Congress to include some redress for the FICA provision in that bill.

Targeted Jobs Tax Credit (TJTC)

The popular tax credit gives many employers the means to hire disadvantages workers. TJTC is due to expire along with other tax credits on June 30, 1992. We're confident that Congress will, at a minimum, extend TJTC for another six months. But we will continue to fight for permanent extension of this important tax credit. The June 30 deadline will force Congress into enacting some tax legislation, which could act as a vehicle to FICA tax reform.

Health Care

Health-care reform is a hot topic on Capitol Hill, and a glut of legislation has been introduced. Much of it, however, centers around forcing employers to provide expensive benefits or pay a hefty tax.

Last year the association helped form HEAL, the Healthcare Equity Action League. Some of HEAL's recommendations are already being picked up by Congress and put in various "Incremental Health Care" bills that seek to bring the cost of insurance within reach for small business. Among other solutions, HEAL advocates: * Enacting legislation that would eliminate state

mandates requiring "Cadillac" coverage that is too

expensive for small business. * Allowing all business owners to take a 100-percent

deduction for the cost of health insurance premiums. * Providing information to help patients shop for

health care just as they shop for appliances -- looking

for high value and low prices.

Teen Labor

Last year our members did a great job fending off a bill that would have put heavy criminal penalties on teen labor law violators. This issue is back in the headlines in 1992.

Congress is now considering a bill to establish a national work-permit program for workers under age 18. That is another example of the federal government's dreaming up more bureaucracy and telling the state governments, "Now you can administer and pay for it." Small business should oppose this bill because it creates a huge administrative burden and would result in fewer teens getting hired.

In addition, the U.S. Department of Labor began a teen-labor law enforcement sweep on March 30. The DOL wants to send a strong message before the summer teen-hiring season begins. Now is a perfect time to make sure your business is in compliance will all labor laws.

In addition to the FICA tax-on-tips, TJTC, mandated health benefits and teen labor, we face another challenge -- political indifference. These days the "none of the above" candidate is leading in presidential polls and Congress' popularity rating lies somewhere between the IRS and killer bees.

Obviously, Americans are disenchanted with the political process. But disenchantment should not preclude us from pursuing our own political goals. In fact, it gives us more reason to get involved. With the scandal-of-the-day atmosphere of Capitol Hill, legislators cannot afford to ignore their constituents.

We need to turn up the volume on the voice of foodservice. Letters, phone calls, attendance at meetings, supporting candidates through political action committees -- these are all ways of strengthening that voice.

And this year we have a real chance to create change, both in terms of legislation and legislators. Redistricting, various scandals and a powerful anti-incumbent mood already have forced at least 60 House members to announce their retirement. Some pundits even are predicting that retirement along with the November elections will produce 150 new faces in Congress next year.

Our charge is to help elect those Congressional members who understand our labor-intensive business, our heavytax load and our thin margins. Also, we must educate the current Congress about what it takes to run a restaurant and how FICA tax, health benefit mandates and teen labor regulations could destroy us.

I've always believed that collective action is the most effective and efficient solution to common problems. During my term political participation by all segments of our industry will be a cornerstone to my message. Richard E. Marriott is 1992-93 president of the National Restaurant Association.

COPYRIGHT 1992 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
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