FALL 2017

148
THE DISTRIBUTOR’S LINK
STAFDA STAFDA’S AUSTIN CONVENTION & TRADE SHOW: UNPRECEDENTED RESPONSE from page 44
¤ STAFDA’s elaborate General Session will
feature an update on the construction/industrial channel
through a video presentation, a distributor “State of the
Industry” talk along with a manufacturer’s perspective on
the industry. The keynote speaker is John Ratzenberger,
the former ‘Cliff Claven’ from Cheers and the voice of
several Pixar movie characters, who will address the
importance of ‘Made in America.’ More manufacturers
are stressing ‘Made in America’ in marketing/branding
campaigns and many jobsite contractors demand ‘Made
in America’ products. (Monday, November 13, 8:30 –
11am)
¤ Following the General Session, the Trade Show
opens. This is an incredible opportunity for distributors
to see the latest innovations. Many exhibitors use the
STAFDA Show to introduce products for the following
year so the newest and greatest is always on display!
The Show completely filled three halls in the Austin
Convention Center so more exhibit space was added
across the street at the Austin Hilton. (Monday,
November 13, 12:00 – 6pm; Tuesday, November 14,
10:30am – 4pm)
¤ The Closing Party wraps-up the meeting
allowing attendees the chance to enjoy a good meal over
more business conversation or tap their toes to musical
entertainment. (Tuesday, November 14, 5 – 6:30pm)
There are also spouse/companion programs and
tours for those who are coming to Austin to enjoy the city
and surrounding area.
STAFDA offers other activities and events as well. Visit
www.stafda.org and click on the Annual Convention tab to
view the full agenda. Only members may attend. For more
information, please contact Catherine Usher, Member
Services Director, cusher@stafda.org or 262/784-4774.
SPECIALTY TOOLS & FASTENERS DISTRIBUTORS ASSOCIATION
ROMAN BASI THE PRESIDENT’S EXECUTIVE ORDER 13789 AND ITS FUTURE EFFECT ON THE TAX CODE from page 46
However, Section 199 is highly complex, often
frustrating both those businesses that fail to qualify as
well as businesses that do qualify but only after navigating
a substantial paperwork burden. By cutting the corporate
rate to 20 percent, and by cutting the top rate on the active
business income of pass-through entities to 25 percent,
the Blueprint makes section 199 unnecessary.”
This is an extremely popular section of the Internal
Revenue Code and is used by a lot of our clients. Not
only does it apply to traditional manufacturers it applies
to many broadly defined firms that would otherwise not
be considered manufacturers. Items such as growers,
software firms, and construction and even automotive
rebuilders can be considered manufacturers.
Another identifiable issue is the Earned Income Tax
credit. The Blueprint states:
“The IRS makes billions of dollars in improper payments
through the programs it administers, particularly the Earned
Income Tax Credit (EITC). At 24 percent, the EITC has the
highest level of improper payments of any Federal program,
with nearly $15.6 billion in improper payments in fiscal year
2015, nearly double the rate of the next highest program.”
Conclusion
This Executive Order and the House Ways and Means
Committee’s Blueprint means that tax reform will come.
This reform will have an impact on transferring businesses
across the United States. Many Companies and business
owners across the country are on the edge of selling
their business and/or retiring and transferring it to the
next generation. It is very possible that we will have more
favorable tax rates in the near future. With the two
primary catalysts of tax reform lining up their proposals in
similar methods, and with the White House requesting for
simplification of overly burdensome taxes and regulations,
there has never been a better time to position your
company or your business for its succession to the next
generation or for the sale of it on the open market.
ROMAN BASI