Government Regulation

November 16, 2018

Future Taxes Here Now

Chicago PlayStation Users Furious They Must Now Pay A 9% “Amusement Tax”

 

When they powered up their Playstations on Nov. 9, Gamers in the Windy City were furious to learn that they will now need to fork over a 9% levy to the city every time they pay for any of a suit of online services as Chicago steps up enforcement of its supremely unpopular Amusement Tax, which was expanded in 2015 to cover video games, streaming services and other digital-entertainment mediums. While some companies have resisted what they have decried as an overreach by city tax collectors, who are desperately trying to plug a massive budget hole while supporting some of the most under-funded public pensions in the country, Sony has become the latest video gaming company to acquiesce to the city’s demands. Meanwhile, Nintendo and Microsoft (which owns Xbox) have been collecting the levies since 2015.

https://www.zerohedge.com/sites/default/files/inline-images/2018.11.15playstation.JPG?itok=yUqZx8gA

According to the Chicago Tribune, the city’s amusement tax once only applied to concerts and sporting event tickets, but several streaming companies like Netflix and Hulu have bowed to the city’s demands since the levy was first expanded. Apple, on the other hand, filed a lawsuit against the city back in August alleging that the tax on its streaming service was “illegal and discriminatory”. The company isn’t paying the tax while the case works its way through a Cook County court.

Previously, a group of streaming companies including Netflix, Amazon Prime, Spotify, XBox Live and Hulu sued Chicago back in 2015 alleging that the tax was in violation of federal law. However, the judge ruled in the city’s favor in May. After an appeal, the case is awaiting a ruling from an appellate court.

Bill McCaffrey, a spokesman for the city’s Law Department, told the Tribune that the city “uniformly enforces the amusement tax,” and neglected to address the outcry.

“If a business is not collecting the tax where we believe it applies, the city takes the necessary steps and works with the company to ensure compliance with the law,” he said.

The tax will now apply PlayStation subscription services, like PlayStation Now, PlayStation Plus, and PlayStation Music. Regular game purchases from the PlayStation store are untouched by the tax.

As the city grows increasingly desperate, there’s still room for the problem to get worse. As ratings agencies have demonstrated, the city’s pension funding projections consistently err on the unrealistically optimistic. According to a Moody’s report, the true magnitude of the unfunded liabilities facing the city is closer to $130 billion.

https://www.zerohedge.com/sites/default/files/inline-images/2018.11.15pensions.png?itok=dI3n583K

What other reason could there be for discouraging one of the safest forms of entertainment in a city where the murder rate is spiking?

https://www.zerohedge.com/news/2018-11-15/playstation-users-cash-strapped-chicago-must-now-pay-9-amusement-tax

November 12, 2018

FR Issues in New Zealand

Furnishings {industry} shake-up over flammable foam issues

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The furniture industry is in for a massive shake up with the government looking at whether it should ban a widely-used highly flammable foam filling.

Most modern furniture, such as couches and mattresses, are made using polyurethane foam, which ignites quickly and burns off toxic fumes.

Consumer Affairs Minister Kris Faafoi said after seeing a fire demonstration showing how quickly the foam went up, leaving things as they were would be unlikely.

“Certainly something needs to change, it just took off so quickly and doesn’t leave a lot of time for a family to respond and certainly doesn’t leave a lot of time for Fire and Emergency to respond as well.”

In the last 10 years, 180 people have died in avoidable house fires.

Fire and Emergency fire investigations manager Peter Wilding said foam-filled furniture ignited rapidly and burned hot and fast while emitting toxic fumes.

“Primarily the biggest contributor of heat and toxic smoke is the polyurethane foam furnishing – the padding that you find in seats and thing like that.

“There’s other things in a room that will burn but nothing burns and gives off as much heat as quickly as that.”

One suggestion to make the furniture safer was to mix it with flame retardant.

But there are concerns adding more chemicals to households would have unintended consequences.

Four furniture manufacturers RNZ spoke to expressed concern that flame retardants are known carcinogens.

But Mr Wilding said while older-style retardants were concerning, modern ones were safe.

“Chemical technology has moved on light years over the last few decades. There’s much safer things that are being used now than what used to be used.

“Some of the retardants that were used back in the ’50s and ’60s are no longer even allowed to be produced.”

Another option was to add a barrier lining to the outside of furniture or to phase out the polyurethane foam altogether.

The government has proposed setting up a Product Safety Policy Statement which means that whatever changes are decided on would be industry-led.

However, this type of policy would only work if everyone was onboard.

One concern about a policy statement was the monitoring of overseas imports of foam and pre-made furniture.

Daryl McLaren who works for New Zealand foam making company Dunlop Foams said they know exactly what went into their foam and label accordingly, but imported products were not as transparent.

“We’ve had a customer that was about to lose a job to imported foams and they said ‘can we have a sample of it’, all the paperwork all matched up to say what the grade was, the fact that it was FR [flame retardant]. They put a match to it and it burnt away – there was no fire retardant in it at all,” Mr McLaren said.

“You just don’t know that it’s happening. It was just fortunate that the company which is our customer, had a close relationship with their customer and was able to do that sort of thing. But nine times out of 10, in fact I would say 99 times out of 100 more like, nobody’s gonna know.”

Mr Faafoi said monitoring imports to make sure they were up to code and labelled correctly would require significant resourcing, and changes like phasing out the use of the foam could take years to be fully in effect.

However, he said the sooner work started the sooner it could be completed.

http://infosurhoy.com/cocoon/saii/xhtml/en_GB/news/furnishings-industry-shake-up-over-flammable-foam-issues/

November 12, 2018

FR Issues in New Zealand

Furnishings {industry} shake-up over flammable foam issues

0

The furniture industry is in for a massive shake up with the government looking at whether it should ban a widely-used highly flammable foam filling.

Most modern furniture, such as couches and mattresses, are made using polyurethane foam, which ignites quickly and burns off toxic fumes.

Consumer Affairs Minister Kris Faafoi said after seeing a fire demonstration showing how quickly the foam went up, leaving things as they were would be unlikely.

“Certainly something needs to change, it just took off so quickly and doesn’t leave a lot of time for a family to respond and certainly doesn’t leave a lot of time for Fire and Emergency to respond as well.”

In the last 10 years, 180 people have died in avoidable house fires.

Fire and Emergency fire investigations manager Peter Wilding said foam-filled furniture ignited rapidly and burned hot and fast while emitting toxic fumes.

“Primarily the biggest contributor of heat and toxic smoke is the polyurethane foam furnishing – the padding that you find in seats and thing like that.

“There’s other things in a room that will burn but nothing burns and gives off as much heat as quickly as that.”

One suggestion to make the furniture safer was to mix it with flame retardant.

But there are concerns adding more chemicals to households would have unintended consequences.

Four furniture manufacturers RNZ spoke to expressed concern that flame retardants are known carcinogens.

But Mr Wilding said while older-style retardants were concerning, modern ones were safe.

“Chemical technology has moved on light years over the last few decades. There’s much safer things that are being used now than what used to be used.

“Some of the retardants that were used back in the ’50s and ’60s are no longer even allowed to be produced.”

Another option was to add a barrier lining to the outside of furniture or to phase out the polyurethane foam altogether.

The government has proposed setting up a Product Safety Policy Statement which means that whatever changes are decided on would be industry-led.

However, this type of policy would only work if everyone was onboard.

One concern about a policy statement was the monitoring of overseas imports of foam and pre-made furniture.

Daryl McLaren who works for New Zealand foam making company Dunlop Foams said they know exactly what went into their foam and label accordingly, but imported products were not as transparent.

“We’ve had a customer that was about to lose a job to imported foams and they said ‘can we have a sample of it’, all the paperwork all matched up to say what the grade was, the fact that it was FR [flame retardant]. They put a match to it and it burnt away – there was no fire retardant in it at all,” Mr McLaren said.

“You just don’t know that it’s happening. It was just fortunate that the company which is our customer, had a close relationship with their customer and was able to do that sort of thing. But nine times out of 10, in fact I would say 99 times out of 100 more like, nobody’s gonna know.”

Mr Faafoi said monitoring imports to make sure they were up to code and labelled correctly would require significant resourcing, and changes like phasing out the use of the foam could take years to be fully in effect.

However, he said the sooner work started the sooner it could be completed.

http://infosurhoy.com/cocoon/saii/xhtml/en_GB/news/furnishings-industry-shake-up-over-flammable-foam-issues/

November 12, 2018

PMA Concern on MOCA Tariffs

November 12, 2018

 

 

 

Dear PMA Member,

Over the past year, the United States has implemented tariffs on many items that are being imported and used in the manufacture of products. The latest listing of tariffs went in to effect in September and poses a 10% tariff now, and a 25% tariff beginning January 1, 2019.  Included in this list are several chemicals that will affect the hard cast polyurethane industry in the United States.  Most notably, MOCA (4,4′ methylene bis (2-chloroaniline)) is included on the list.  Over 85% of the world’s production of MOCA is in China and there is no United States based manufacturing operation for MOCA.  Left unchecked, this latest listing of tariffs will affect most all US manufacturers of hard cast polyurethane by creating an unfair competitive positon.

Please consider writing to your congress representative and your senators to express your concern for these tariffs and asking that they implement a process in order for the public to ask for an exclusion for certain products from tariffs.  This process has been in place for the first several listings of tariffs but is not in place for this last listing.

Below are two documents to download that we suggest you send to your leaders.  The first is a letter signed by 169 people in congress.  The second is a suggested letter that you tailor to your own company’s story and how the tariffs might affect you.  It would be most powerful if you would print the letter on your own company letterhead.  Lastly, please find the following links to be able to more easily find, and write to your representative and senators.

House Representative: https://www.house.gov/representatives/find-your-representative

Senate Representative: https://www.senate.gov/senators/index.htm

If your district has just elected a new Senator or Representative, please send a letter to BOTH the outgoing and incoming lawmakers.

Download Congressional Letter

Linda Katz
PMA President

https://mailchi.mp/1e95812c1f76/pma-canada-notice-to-provide-information-for-risk-management-fall-2905405?e=1a4ca4dc83

November 12, 2018

PMA Concern on MOCA Tariffs

November 12, 2018

 

 

 

Dear PMA Member,

Over the past year, the United States has implemented tariffs on many items that are being imported and used in the manufacture of products. The latest listing of tariffs went in to effect in September and poses a 10% tariff now, and a 25% tariff beginning January 1, 2019.  Included in this list are several chemicals that will affect the hard cast polyurethane industry in the United States.  Most notably, MOCA (4,4′ methylene bis (2-chloroaniline)) is included on the list.  Over 85% of the world’s production of MOCA is in China and there is no United States based manufacturing operation for MOCA.  Left unchecked, this latest listing of tariffs will affect most all US manufacturers of hard cast polyurethane by creating an unfair competitive positon.

Please consider writing to your congress representative and your senators to express your concern for these tariffs and asking that they implement a process in order for the public to ask for an exclusion for certain products from tariffs.  This process has been in place for the first several listings of tariffs but is not in place for this last listing.

Below are two documents to download that we suggest you send to your leaders.  The first is a letter signed by 169 people in congress.  The second is a suggested letter that you tailor to your own company’s story and how the tariffs might affect you.  It would be most powerful if you would print the letter on your own company letterhead.  Lastly, please find the following links to be able to more easily find, and write to your representative and senators.

House Representative: https://www.house.gov/representatives/find-your-representative

Senate Representative: https://www.senate.gov/senators/index.htm

If your district has just elected a new Senator or Representative, please send a letter to BOTH the outgoing and incoming lawmakers.

Download Congressional Letter

Linda Katz
PMA President

https://mailchi.mp/1e95812c1f76/pma-canada-notice-to-provide-information-for-risk-management-fall-2905405?e=1a4ca4dc83