Capitol Hill

When the 114th Congress convened Jan. 6, Republicans had majority control of the House and Senate for the first time since 2006. They are expected to move forward with an ambitious policy agenda early this year, some of which could have direct implications for NRCA members.

Big numbers

In the House, Republicans have the largest majority they have enjoyed since the 1940s. With a larger majority, Republican leaders may be able to craft legislation that can get the minimum 218 votes needed to pass legislation on issues where they have previously failed to develop consensus within their ranks, such as immigration reform and transportation infrastructure.

In the Senate, Republicans have a 54-46 majority and will control the agenda. However, it usually is necessary to get 60 votes to pass legislation in the Senate, so new Majority Leader Mitch McConnell (R-Ky.) will have to keep all Republicans together while also getting the support of at least six Democrats to pass most bills. Regarding issues that directly affect the budget, such as the Affordable Care Act (ACA) or tax issues, McConnell may use the "reconciliation" process to pass legislation with as few as 51 votes, allowing such bills to be approved with only Republican support.

Of course, President Obama retains his veto power, so the big question is whether the president and Republicans will work together or give the nation two more years of gridlock. McConnell and House Speaker John Boehner (R-Ohio) have indicated a desire to cooperate with the president, but it is unclear whether they can bring their most conservative members to support such efforts. Moreover, President Obama's controversial executive action on immigration in November is a strong indication he will pursue a more confrontational approach during his final two years in office.

The issues

Three policy areas of interest to NRCA members that will be prominent on the 2015 Republican agenda are tax reform, regulatory relief and the ACA.

Republicans have indicated their desire to move forward on tax reform legislation that lowers income tax rates for all types of businesses to jump-start economic growth. House Republicans may be able to pass tax reform that lowers tax rates for corporations and pass-through businesses to somewhere between 25 to 28 percent.

President Obama and most Democrats want to increase the top individual tax rates to provide funding for infrastructure spending while lowering only the corporate rate in any tax reform bill. Most observers believe the prospect that Republicans and Democrats will find common ground on tax reform in 2015 is low, but some type of compromise is possible.

Another important issue for the roofing industry that will be high on the Republican agenda is regulatory reform. Given the deluge of regulations NRCA members face, legislation to reduce the ever-increasing regulatory burden on employers is a top priority for NRCA.

The Republican-led House has approved the Regulatory Accountability Act, which would strengthen protections for businesses against intrusive regulations, and other regulatory relief bills in recent years and is expected to do so again in 2015. NRCA also expects Republicans to aggressively pursue regulatory reform in the Senate, and such legislation may receive sufficient bipartisan support to pass.

The ACA was a major issue in the elections, and Republicans will make efforts to modify or repeal certain components of the law. This likely will include legislation to replace the ACA with market-oriented reforms proposed by Republicans, such as deregulating state insurance markets and medical malpractice reform. However, truly transformative legislation is unlikely to have sufficient bipartisan support to pass the Senate and will face a presidential veto.

Republicans then likely will move forward with targeted bills to repeal the most controversial components of the ACA, some of which could get support from Democrats who have acknowledged a need to fix the law. Bills that could pass the House and Senate with bipartisan support include repeal of the medical device tax, redefining full-time employment as 40 hours (rather than the current 30-hour standard) per week, modifying or eliminating the employer mandate, and delaying or repealing the new health insurance tax that will drive up premiums for many small and mid-sized businesses.

The key to enacting legislation to achieve NRCA's ultimate objective, which is improving the conditions that enable employers to start and grow businesses, may be McConnell's ability to craft deals that garner bipartisan support. Success in this regard could pressure the president to sign legislation that could positively affect NRCA members.

Duane L. Musser is NRCA's vice president of government relations.