February 18, 1999
JA Asks Industry for Help
Jewelers of America is asking its members to write or call their Congressional representatives concerning a proposed tax increase for associations that would force JA to cut its operating budget by 43%.
A proposal in the Clinton Fiscal Year 2000 budget, if accepted, would severely increase taxes on not-for-profit organizations such as JA. The proposal would amend the Unrelated Business Income Tax associations currently pay to include a 40% tax on annual investment income over $10,000. Currently, not-for-profit organizations are exempt from taxes on investment earnings.
If the measure is enacted, JA estimates it will need to cut its budget from approximately $4.7 million (in 1998) to $2.7 million. The association says its influential industry efforts, including certification programs, funding to affiliates and consumer public relations, would be scaled back.
JA advises the best time to contact representatives is during their current recess, which lasts until the week of Feb. 22. By law, Congress must enact a budget resolution by April 15. Contact the U.S. House of Representatives and U.S. Senate, Washington, D.C. 20515; or find their e-mail addresses at thomas.loc.gov.
- by Peggy Jo Donahue