©SHRM 2010 Bob Carragher – Winona Area SHRM Legislative Update – September 11, 2012 ©SHRM 2012 HR Public Policy – Washington Outlook

©SHRM 2012 HR Public Policy – Washington Outlook Too Close to Call! Presidential Election

©SHRM 2012 HR Public Policy – Washington Outlook 3 In Elections, Jobless Trend Matters More Than Rate 2012 Presidential Race

©SHRM 2012 HR Public Policy – Washington Outlook 4 The Battle for the Senate 9 Toss-up Seats Will Decide Control in 2013 November 2012 Elections – Real Clear Politics.com

©SHRM 2012 HR Public Policy – Washington Outlook 5 Tax and Benefit Issues The Impending Fiscal Cliff

©SHRM 2012 HR Public Policy – Washington Outlook  Debt limit may need to be increased again before the end of Current U.S. debt is now over $16 trillion.  Failure of the “Super Committee” a year ago triggered a $1.5 trillion sequester in both discretionary and direct spending effective in  “Taxmageddon” looms on the horizon as $5 trillion in various tax provisions are set to expire on December 31, Key tax cuts include:  Payroll tax cut  Bush Era tax cuts  Section 127 Employer-Provided Education Assistance  Alternative Minimum Tax  Action in Fall after election is likely given debt and tax issues. 6 Tax and Benefit Issues The Impending Fiscal Cliff

©SHRM 2012 HR Public Policy – Washington Outlook 7 Congressional Budget Office August 2011 Tax and Benefit Issues

©SHRM 2012 HR Public Policy – Washington Outlook 8 Cumulative Budgetary Effect of Major Income Tax Expenditures 2010 to 2014 Tax and Benefit Issues

©SHRM 2012 HR Public Policy – Washington Outlook 9 Employee Educational Assistance Act  H.R was introduced in the House on March 5 th by Representatives Sam Johnson (R-TX) and Richard Neal (D-MA).  Would extend and make permanent Internal Revenue Code Section 127, which allows an employer to provide up to $5,250 per year tax-free in tuition, fees, and books to employees for courses on the undergraduate and graduate levels.  Currently, Section 127 is set to expire on December 31,  SHRM is the co-chair of the Coalition to Preserve Employer-Provided Educational Assistance Tax and Benefit Issues

©SHRM 2012 HR Public Policy – Washington Outlook SHRM’s Election 2012 Get-Out-the-Vote Campaign 10 Taking action and exercising your voice is neither difficult nor complex. SHRM’s new “Have a Voice!” campaign can help! SHRM’s non-partisan “Have a Voice!” campaign aims to motivate HR professionals to exercise their constitutional right to vote in the primaries and November Presidential election. SHRM launched its “Have a Voice” website at during our 2012 Employment Law and Legislative Conference. The website has many great resources, including:  Voter information  Reports from the Conventions (SHRM was there!)  Presidential debate schedule  Step-by-step instructions on conducting a voter-education campaign  “Returns Party” starter kit  State ballot initiatives  HR Votes 2012 gear and supplies

©SHRM 2012 HR Public Policy – Washington Outlook 11 Bob Carragher Senior Advisor for State Affairs Duke Street Alexandria, VA 22314