What is a PAC?
Since 1944, corporate entities have been prohibited by law from making campaign
contributions to candidates running for political office. However, federal election
laws permit trade associations, along with unions and corporations, to sponsor political
action committees (PACs). The underlying philosophy of a PAC is to allow people
with similar interests to pool resources to make meaningful contributions to candidates
for elected office likely to advance the group's interests.
All dollars raised by
PACs must be personal and not corporate. Individuals are limited to contributions
of $5,000 annually.
Today, there are more than 4,500 PACs registered with the Federal Election Commission
(FEC). The FEC, an independent regulatory agency, oversees all federal election
activity. All PACs are required to register, name a treasurer and file regular activity
reports with FEC. Organizations such as Service Employees International Union, National
Rifle Association, American Association for Justice (Trial Lawyers), National Association
of Home Builders and the National Association of Realtors raise $2 million to $3
million dollars each year from personal contributions from their members.
ROOFPAC
In the case of NRCA's PAC, ROOFPAC, $165,000 was raised in calendar year 2006. Other
construction-related PACs, such as Associated General Contractors, Associated Builders
& Contractors and the National Electrical Contractors Association raise more than
$500,000 each calendar year.
ROOFPAC aims to raise $250,000 in 2007, which can only
be accomplished with support from the industry.
Virtually all disbursements from ROOFPAC are made to congressional candidates for
the U.S. House of Representatives and U.S. Senate. A typical ROOFPAC disbursement
is $1,000 for House candidates and $2,000 for Senate candidates; PAC disbursements
are limited to $5,000 per candidate per election ($5,000 for the primary election
and $5,000 for the general election).
The limits are important because they help level the playing field. As long as no
single PAC can make a huge contribution to a candidate, all PACs are important and
are aggressively solicited by candidates. Even a $1,000 contribution is noteworthy
enough to ensure NRCA representatives are included in discussions and invited to
fundraising events—all important pieces in a well-rounded government-relations
program.
In the end, it does matter
There has not been much positive news coming out of Washington, D.C., about the
U.S. political process during the past few years. Still, the national debate matters,
and the issues that are being debated matter-for our industry and our country.
In
the current 110th Congress, it is likely we'll see laws debated dealing with national
immigration policy, tax rules for small businesses, health insurance and energy
policy. Any one of those can have a profound and immediate impact on any
business in the U.S.-but especially for small businesses, like most NRCA members.
And that's why ROOFPAC matters. It's a cornerstone of NRCA's government-relations
program, and it is NRCA's way of ensuring elected officials hear its problems, positions
and opinions.
NRCA's legislative agenda
With the new Democratic-controlled 110th Congress under way, following are some
of the issues roofing contractors may face:
- Immigration reform: Will Congress pass comprehensive immigration reform that
will create a guest-worker program, enable those here illegally to become documented
and truly secure our borders?
- Department of Homeland Security/Immigration and Customs Enforcement (DHS/ICE):
Will DHS/ICE pursue its proposed regulation to enforce how employers must respond
to Social Security Administration "no-match" letters for employees?
- Contractor withholding tax: Will federal, state and local governments have
to withhold 3 percent from contractors for their services beginning in 2011? And
will that timetable be moved up by Congress?
- Permanent tax cuts: Will the estate or "death tax" revert to its previous,
onerous levels in 2010 if new legislation is not enacted?
In addition, two tax initiatives will add to the bottom line:
- Tax incentives package: It's possible the House and Senate will agree on
a tax package that extends the Work Opportunity Tax Credit for five years for employers
who hire certain low-income workers; raise to $10 million the gross receipts threshold
for businesses to qualify to use the cash method of accounting; and extend through
2010 the Section 179 expensing provision that allows small businesses to deduct
as much as $112,000 annually in new capital investments.
- Changing roof depreciation rules: The Realistic Roofing Tax Treatment Act
again will be introduced in both houses of Congress to shorten the tax depreciation
for nonresidential roof systems from 39 years to 20 years.
Congress plays a critical role in the future of small businesses. Increasing the
number of legislators who understand and support the roofing industry is a primary
goal of ROOFPAC. Since 1990, NRCA's PAC has been working to help build a pro-business
Congress that understands the impact its actions have on the bottom lines of roofing
businesses across the nation.
ROOFPAC alone won't make the final difference in legislative outcomes. Nor will
NRCA's efforts, alone. But without either, the industry does not have a voice in
the political process to educate members of Congress about issues facing roofing
contractors today.
Political Insiders Council
In 2005, ROOFPAC created the Political Insiders Council (PIC) for those roofing
industry leaders who understand the importance of ongoing support for ROOFPAC. Council
members pledge annual personal contributions of $5,000 and receive "insider" information
from NRCA's Washington, D.C., staff; invitations to special events; and recognition
at ongoing ROOFPAC events. The council provides ROOFPAC with the opportunity to
secure significant funding on an ongoing basis and join the upper level of PACs
in Washington, D.C. In May 2007, PIC members were invited to Washington, D.C., for
a number of special events.