Bush vs. Kerry: candidates address wood industry issues.

Wood & Wood Products has been asking presidential candidates to address wood industry issues since 1980, when we submitted questions to the Democratic President, Jimmy Carter, his Republican challenger, Ronald Reagan and independent, John Anderson. Among the topics that year were: wood as an alternative energy source, affordable housing and fair trade. Not surprisingly, housing and trade are still hot topics in the woodworking world. And with the current escalation of oil prices, "wood as fuel" could become a retro issue this winter.

Bigger issues are at stake in this year's election than those directly affecting the secondary wood products industry. The war on terror, the war in Iraq, the health of the overall economy and the candidates' military settee have dominated mainstream media coverage as the campaigning heats up in so-called "swing" states.

Nevertheless, the loss of manufacturing jobs, including those in the residential and office furniture industries, is on the radar screen of George W. Bush and John Kerry. North Carolina, home state of Kerry's running mate John Edwards, lost 26,000 furniture manufacturing jobs between 1997 and 2002. And Bush has been widely criticized for lauding a "jobless" recovery.

Bush and Kerry each claim to be the friend of small business. Both pledge tax breaks for small businesses, investment incentives, and help with reining in health care costs for their employees. However, the candidates are more polarized on issues like tort reform, the role of the Environmental Protection Agency and forest management.

It should be noted that the campaign workers for both candidates were eager and willing to accommodate Wood & Wood Products for this report. By contrast, four years ago, Al Gore's campaign did not supply us with his responses. Another note: At press time, an unscientific poll of visitors to Wood & Wood Products' Web site, iswonline.com, showed Bush leading Kerry 51% to 46%.

Exodus of furniture manufacturing jobs to China

W&WP: Between the years of 1997 and 2002, North Carolina lost more than 26,000 jobs in furniture manufacturing, according to North Carolina State University. What can we expect from the Bush administration to reverse this trend?

BUSH: My number one economic priority is the creation of new, good-paying jobs at home. To create more jobs, we must create an economic environment in which small business can thrive. To help create that environment, we must implement my six-point plan. Making tax cuts permanent, making health costs more affordable, reducing frivolous lawsuits, easing the burden of Federal regulations, enacting a national energy policy and opening foreign markets to American goods is the right formula. I will not be satisfied until every American looking for work can find a good-paying job. In the past 12 months, our economy has added 1.7 million new jobs, including 107,000 new manufacturing jobs since January.

Economic isolationism is not the answer. Opening markets to U.S. exports is a key part of sustaining America's economic recovery and creating new jobs for American workers.

U.S. exports accounted for almost 25% of U.S. economic growth during the 1990s and support an estimated 12 million jobs today. Jobs in exporting plants pay wages that average 13 to 18% more than jobs in non exporting plants. Approximately one out of every five factory jobs is due to manufacturing exports, and American farmers plant one out of every three acres for export, generating nearly 25% of their gross cash sales.

But we know that any economic change--whether arising from trade or technology or increased productivity--can cause painful dislocation for some workers and their families. It is terrible to lose a job for any reason. That is why I have proposed an aggressive agenda to help workers acquire the skills to find good-paying jobs. In my FY 2005 budget, I proposed $23 billion for job training and employment assistance.

To ease the effects of economic change, I have requested $1.1 billion in the FY 2005 budget for training and cash benefits for workers dislocated by increased imports or a shift of production to foreign countries. The Department of Labor provides benefits and training to displaced workers through Trade Adjustment Assistance (TAA). This program is designed to help trade-impacted workers gain or enhance job related skills and find new jobs. It provides eligible workers with career counseling; up to two years of training to acquire the skills needed to return to work; income support during training or remedial education classes; job search assistance with 90% of the expenses reimbursed (up to $1,250) to support workers exploring out-of-area job opportunities; health care assistance in the form of a 65% tax credit; an alternative wage insurance program for workers over the age of 50 earning not more than $50,000, who are entitled to 50% of the difference between their old and new salaries, up to a maximum of $10,000 over a two-yea r period; and relocation support by reimbursing 90% of the costs of moving the worker and their family.

American workers are the best in the world, and when given a level playing field, they can compete against workers anywhere. My administration will use every tool at its disposal to stop unfair trade from hurting American businesses and workers. We have worked aggressively to do this by removing barriers that hinder American exporters, bringing WTO enforcement actions, combating unfair trading practices and increasing dedicated trade enforcement resources. For example, the Commerce Department initiated the largest cases against China ever on imports of a number of products, including furniture, valued at over $1.5 billion.

I have also proposed $50 million in Personal Reemployment Accounts that would provide workers with additional flexibility in selecting services to help them return to work. Under the plan, states would offer up to $3,000 to eligible unemployed workers that can be used for whatever training and services--such as child care, transportation and job training--they believe will help them get back to work. As an incentive, the program would allow the recipients to keep the balance of the account as a cash bonus if they find a job within 13 weeks.

I have also proposed my Jobs for the 21st Century Initiative, which includes $250 million to train and retrain workers through America's community colleges for jobs in growing fields. Through job training partnerships, workers will have an opportunity to retool, refine, and broaden their skills.

Implementing a pro-growth economic agenda, a strong education system, and helping American workers gain the skills needed to secure 21st century jobs are the right ways to respond to the challenges of our growing and changing economy. Our plan is working, our economy is growing and a retreat to economic isolationism would be the wrong course to take.

W&WP: What can we expect from the Kerry/Edwards team to reverse the exodus of furniture manufacturing jobs to China?

KERRY: I believe that when America competes on a level playing held, our workers, products and innovation are second to none. But the Bush administration has skewed the playing field by defending tax breaks for corporations that move American jobs overseas, while failing to ensure that our trading partners are playing by the rules.

As president, I will stand up for American workers and regain America's leadership in the global economy by enacting a six-point plan to enforce existing trade agreements and laws. My plan will (1) push President Bush to reinstate the "Super 301" process immediately so his administration will be required to report and act on foreign trade barriers, (2) enact a 120-day review of all existing trade agreements, (3) immediately investigate China's workers' rights abuses and increase funding for workers' rights and anti-abusive child labor efforts, (4) enact more forceful efforts to end illegal currency manipulation by China and other countries, (5) provide increased resources for trade enforcement and action at the World Trade Organization and (6) enact structural reforms to enhance small business competitiveness and high-tech trade enforcement capacity.

In future free trade agreements, I will fight to include internationally recognized enforceable labor rights and environmental standards and break down barriers in key export markets.

To curtail outsourcing, I will enact the most sweeping reform of the international tax code in 40 years. I will close loopholes that encourage companies to move American jobs overseas and make the tax code work for the American worker and provide a onetime tax holiday for companies to reinvest their foreign profits in America.

To make America more competitive, I will cut costs for businesses, enact a New Jobs Tax Credit that will cover an employer's share of payroll taxes for new hires, lower the corporate tax rates by 50%, save workers up to $1,000 on health care premiums and cut energy costs by moving America towards energy independence. I will also expand Trade Adjustment Assistance programs and support jobs in America through "buy American" guidelines.

Finally, I will secure future prosperity for American businesses and American workers by investing in the jobs of the future and the people who will fill them. I will fight to expand training and lifelong learning by expanding training as part of the Trade Adjustment Assistance program, support regional skills alliances, protect training conducted at community colleges and create universal access to four years of college with a College Opportunity Tax Credit on up to $4,000 of tuition for four years of college.

Tort reform

W&WP: Product liability and medical malpractice lawsuits are cited by woodworking companies as having crippled innovation and created skyrocketing healthcare costs. What will the Kerry/Edwards team do to allay business fears that they are in the pocket of trial lawyers?

KERRY: I have an economic plan that will foster a climate for America's businesses to create good-paying jobs. I understand that America's businesses are the engine of job creation, economic growth and the key to rising prosperity for all Americans. My plan will help restore confidence, improve the competitiveness of American business, and foster long run growth.

As part of this plan, I will ensure that the American legal system works for American businesses--not against them. I recognize that our legal system should establish the rules and incentives that are needed for the economy to function--without wasting time or money. Our courts play a central role in making sure that even the most vulnerable people have protections. At the same time, there is no question that frivolous malpractice lawsuits and class actions waste time and money. That is wrong and I support reforms that prevent and punish these abuses--while at the same time preserving the principles of responsibility and fairness that make our system work.

W&WP: Will the Bush administration bring about tort reform?

BUSH: Our nation's tort litigation system is badly broken, and consumers, small business owners, and their employees are paying the price. We need reform that is fair and just, that ensures every person has his or her day in court and that prevents baseless litigation from hindering our economy's growth.

Personal injury trial lawyers are clogging the courts with frivolous and junk lawsuits. Doctors are increasingly forced to practice costly defensive medicine, raising health care costs for all. Sky-rocketing liability insurance rates are driving doctors to limit or close their practices altogether, reducing access to care. I have proposed a medical liability reform plan that will reduce the number of frivolous lawsuits, make the liability system more fair, predictable and timely, and help maintain strong doctor-patient relationships. My proposal would ensure that injured persons are compensated fully for their economic losses, while reasonably limiting non-economic damage awards to $250,000. Reasonable punitive damages would be available in egregious cases and judgments would be paid in proportion to fault.

I also support legislation that will eliminate the waste, inefficiency and unfairness of multiple overlapping class action cases by making interstate class actions removable to Federal courts when a certain level of damages is at stake. The legislation includes a consumer class action hill of rights to ensure that the benefits of class action settlements go to the people who are injured, rather than to wealthy trial lawyers.

Finally, we must pass a plan for asbestos litigation reform that protects victims with asbestos-related injuries while preserving the security of dozens of companies and tens of thousands of jobs. My proposals have support in the House--now it is time for the Senate to act.

Western wildfires

W& WP: Millions of acres of western timberland have gone up in flames over the last decade. What will your administration do to reduce this trend?

KERRY: I have a forest management plan that will provide real funding to support and protect at-risk communities and create jobs in forest management and restoration. A Kerry/Edwards administration will direct more resources to communities and will fully fund my fire plan. The centerpiece of this plan is the establishment of a Forest Restoration Corps, which will provide jobs and invest in the long-term health of our forests. I will practice balanced, science-driven forest management and rely on the consensus-based decision making process established by the Western Governors Association.

BUSH: Our nation's forests are an important and a vital resource. For decades, government policies have allowed conditions to exist that make our trees vulnerable to catastrophic wildfires. The resulting devastation not only damages trees, but the unnaturally hot fires damage the habitats of endangered species, cause flooding and soil erosion, harm air quality, ruin water supplies, destroy homes and businesses that depend on wood products and threaten and destroy peoples lives.

In 2002, I announced my Healthy Forest Initiative to help reduce severe wildfires by thinning out and removing forest undergrowth before disaster strikes. Through these efforts, we have made good progress--we restored almost 5 million acres of overgrown forest and rangeland in my administration--nearly twice the previous pace.

That is why I signed the Healthy Forest Restoration Act of 2003 to expand the work to a greater scale that the dangers of wildfires demand. This pro-environment legislation is based on sound science and helps further my pledge to care for America's forests and rangelands by reducing the risk of catastrophic fire, bug and disease outbreaks to communities, helping save the lives of firefighters and citizens and protecting our vital forests, rangelands and endangered species.

My 2005 budget includes $760 million to continue implementation of the Healthy Forests Initiative, including an approximately $58 million increase in hazardous fuels reduction.

The role of the EPA 

W&WP: Manufacturers in our industry say the current regulatory climate makes it difficult to build or expand new plants in this country. Describe the role of the Environmental Protection Agency in the next four years of the Bush administration.

BUSH: During the next four years of my Administration, I will direct my EPA to continue to regulate to meet our environmental goals without costing jobs or harming the economy. This is the approach I have pursued over the last four years. In the coming years, the Clean Air Interstate Rule (CAIR), proposed in January 2005, will provide additional, dramatic reductions in sulfur dioxide and nitrogen dioxide emissions in many eastern states. This program, due to be finalized by the end of 2004, would utilize a cap-and-trade program to provide cost-effective reductions in pollution and will ultimately result in a 70% reduction in emissions of sulfur dioxide and a 65% reduction in emissions of nitrous oxides from current levels. This is the same type of program utilized by the successful acid rain program which has helped to reduce sulfur dioxide emissions by approximately 7 million tons per year since 1990. In 2002, my administration also proposed several improvements to the New Source Review program enabling manufacturers to upgrade and expand their facilities without undergoing a costly, time-consuming permitting process. At the same time, these changes maintain the program's intended environmental benefits.

Under my administration, EPA will continue to work with states, cities and businesses to quickly redevelop areas known as "brownfields" (abandoned and polluted industrial sites), so that manufacturers can once again locate and expand in urban areas. We will continue our work to improve rules governing recycling to provide further incentives for companies to re use materials, and we will continue our work to provide good guidelines to assist states in reducing water pollution. My administration will continue streamlining regulatory policies to reduce waste and decrease costs on small businesses. I remain committed to passing legislation that elevates the Administrator of EPA to a Cabinet Secretary.

KERRY: I will ensure protection of human health and the environment. Environmental standards will be clear and enforceable, and we will involve stakeholders to develop the fairest, most effective rules.

Finally

W&WP: Our readership consists of more than 000,000 small business owners (cabinet manufacturers, millwork companies, store fixture, home and office furniture, etc.). Why should they vote for you?

KERRY: As the former Chairman and current Ranking Member of the Senate Small Business and Entrepreneurship Committee, I have been a national leader in promoting small businesses growth. As president, I will put government back on the side of small business and tap its ingenuity and inventiveness to usher in a new era of opportunity for small business.

I will create a "Small Business Opportunity Fund" that will expand loans and equity to help micro-enterprises, bridge the gap between entrepreneurs' need for capital and traditional financing sources by increasing the federal government's venture capital investments, and expand loan programs to help more small businesses get off the ground.

To give small business a fair share in federal contracting I will work with federal agencies--including the Department of Defense, the Department of Homeland Security, and the Department of Health and Human Services--to reduce contract bundling and increase the government-wide goal for small business's share of federal contracts to 30%.

To reduce the burden of complex, tax-related paperwork, my plan will simplify tax filing for small businesses by allowing the IRS and state agencies to combine state and federal employment tax returns on one form.

To help small businesses reduce their utility bills, my plan will provide a tax credit to purchase new equipment that meets energy-efficiency standards for heating and cooling in new buildings and retrofit old ones. My plan will also provide a 20% tax credit for the purchase of energy-efficient building equipment, including electric heat pumps, hot water heaters and natural gas heat pumps.

To strengthen America's base of small manufacturers, my plan will increase loan and investment limits, develop a three-tier manufacturing skills training program for workers, college and high school students, double funding for the Manufacturing Extension Partnership program and create an Office of Manufacturing at the Small Business Administration

To give small business a big voice in Washington, I will create a cabinet-level position to ensure that federal regulations are fair for small business and a voice in the World Trade Organization to ensure that small business interests are considered in trade issues.

To help small businesses support their employees, I will cut health care costs by two-thirds, eliminate capital gains taxes for long-term investments in small businesses, create a New Jobs Tax Credit, enact a new "small business retirement initiative" to help small businesses offer retirement plans and provide tax credits for called-up reservists.

BUSH: Small businesses are the en sine of American prosperity, and I have an agenda that will build on the success of the last four years and continue to promote growth and entrepreneurship over a second term. I signed the largest tax relief package in two decades, which has left more money in the hands of small business owners to help them grow their businesses. By quadrupling the amount that small businesses can expense and by putting the death tax on its way to extinction, this new tax relief allows entrepreneurs to retain more of their assets and to spend them in ways that will benefit their businesses and strengthen the economy.

I will also work to make health care more affordable for small business owners, entrepreneurs and their employees, by promoting Association Health Plans (AHPs), which will allow small businesses to band together to negotiate for more affordable health care for their employees, the way large employers do. We also established the new Health Savings Accounts (HSAs), which, when combined with a low-cost health insurance plan, will allow small business employees to save their money in a tax-free account to pay for their routine medical expenses and future health care needs. To further help small businesses and their workers with health care costs, I have proposed a new tax credit for small firms that contribute to their workers' HSAs.

I also have worked to reduce bureaucratic regulations and to streamline policies so that small businesses can focus their resources on job creation instead of on excessive paper work. Because we streamlined tax reporting requirements for small businesses, we are helping 2.6 million small businesses save 61 million hours of unproductive work.

We are also increasing the number of loans that the Small Business Administration guarantees to women and minority business owners. Last year, the number of loans that went to African Americans, Hispanics, Asian-Americans and women business owners grew by 38% to a 50-year record. And a new record was set in August 2004.

Businesses rely on a reliable and affordable energy supply, so I will continue promoting a comprehensive National Energy Policy that will up grade the nation's electrical grid, promote energy efficiency, increase domestic energy production and provide enhanced conservation efforts--all while reducing air pollution and protecting the environment.

And by reducing the costly lawsuit burden that can impede small businesses from growing and working to open markets abroad, we will keep America the best place in the world to do business and foster an economy that is ripe for growth and expansion.

Bush or Kerry?

Cast your vote on www.iswonline.com.

Sound Bites ...

... on fair trade

BUSH: My administration will use every tool at its disposal to stop unfair trade from hurting American businesses and workers. We have worked aggressively to do this by removing barriers that hinder American exporters, bringing WTO enforcement actions, combating unfair trading practices and increasing dedicated trade enforcement resources. For example, the Commerce Department initiated the largest cases against China ever on imports of a number of products, including furniture, valued at over $1.5 billion.

KERRY: I will stand up for American workers and regain America's leadership in the global economy by enacting a six-point plan to enforce existing trade agreements and laws. My plan will (1) push President Bush to reinstate the "Super 501" process immediately so his administration will be required to report and act on foreign trade barriers, (2) enact a 120-day review of all existing trade agreements, (3) immediately investigate China's workers' rights abuses and increase funding for workers' rights and anti-abusive child labor efforts, (4) enact more forceful efforts to end illegal currency manipulation by China and other countries, (5) provide increased resources for trade enforcement and action at the World Trade Organization, and (6) enact structural reforms to enhance small business competitiveness and high tech trade enforcement capacity.

... on tort reform

BUSH: I have proposed a medical liability reform plan that will reduce the number of frivolous lawsuits, make the liability system more fair, predictable, and timely, and help maintain strong doctor-patient relationships. My proposal would ensure that injured persons are fully compensated for their economic losses, while reasonably limiting non-economic damage awards to $250,000. Reasonable punitive damages would be available in egregious cases and judgments would be paid in proportion to fault.

KERRY: There is no question that frivolous malpractice lawsuits and class actions waste time and money That is wrong, and I support reforms that prevent and punish these abuses--while at the same time preserving the principles of responsibility and fairness that make our system work.

... on why Wood & Wood Products readers should vote for you?

BUSH: I signed the largest tax relief package in two decades, which has left more money in the hands of small business owners to help them grow their businesses. By quadrupling the amount that small businesses can expense and by putting the death tax on its way to extinction, this new tax relief allows entrepreneurs to retain more of their assets and to spend them in ways that will benefit their businesses and strengthen the economy.

KERRY: I will create a "Small Business Opportunity Fund" that will expand loans and equity to help micro-enterprises, bridge the gap between entrepreneurs' need for capital and traditional financing sources by increasing the federal government's venture capital investments and expand loan programs to help more small businesses get off the ground.

To give small business a fair share in federal contracting, I will work with federal agencies--including the Department of Defense, the Department of Homeland Security and the Department of Health and Human Services--to reduce contract bundling and increase the government-wide goal for small business' share of federal contracts to 30%.