Build Up in Down Time
3) Tax policy could see a major overhaul in the next Congress. PIA will press for repeal or reform of the estate tax, a low capital gains tax and a reformed Alternative Minimum Tax.
4) The environmental lobby has continued its push for restrictions on direct mail through their call for “Do Not Mail” legislation at the state and federal level. The printing industries will continue working with the Mail Moves America coalition to show the value of mail to the economy—and the industry’s dedication to sustainable practices.
5) The environmental and energy policy of greatest concern to printers in the next two years will be the high cost of energy. PIA is very concerned about how climate change legislation could affect regulations and the cost of energy.
NAPL’s Paparozzi believes economists should remain neutral and is hesitant about even giving the appearance of making a political statement in an economic forecast. He does commend both the incoming and outgoing administrations for the degree of cooperation they have shown, and finds it encouraging.
“What’s important in economic policy is certainty and clarity,” the economist explained. He was pleased by the number and tone of the press conferences President-elect Obama held early on and believes the focus will remain on getting the economy healthy again.
What was missing and would be most helpful is a statement that any tax increases are “on hold” for now, Paparozzi believes. He expects other policies that increase spending to also be tabled until the economy can support them.
A Time to Lead
This story’s headline was intentionally written to be readable in two ways. Printers who simply try to hold out for an economic turnaround risk not only seeing their volumes decline with GDP, but likely will be at a greater competitive disadvantage when the overall business climate improves. Both industry economists said their research shows that the disparity between industry leaders and the rest of the market is amplified by economic downturns.