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August 2013

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Washington Insider New Gallup Poll is Bad News for Congress, But Good News for You It just may be that you are the most trusted citizen in America right now. By Christian Klein The results of a recent Gallup poll reinforce what we've telling AED members for a long time: Small business owners are highly credible messengers. That's good news for you and the construction equipment industry's public policy advocacy efforts. It may also be the key to solving some of the most intractable issues we're dealing with in Washington, D.C. The poll, conducted in early June, found that 65 percent of Americans had either "a great deal" or "quite a lot" of confidence in "small business," second only to "the military," which scored 76 percent. The only other institution to score above 50 percent was "the police." Who scored lowest? "Newspapers" (23 percent), "big business" (22 percent), "organized labor" (20 percent), and "health maintenance organizations" (19 percent). And what's the least credible institution? You guessed it: "Congress," which scored an abysmal 10 percent. So what does it all mean for us? AED has been working for years to build the small business-dominated construction equipment industry's grassroots infrastructure. We've been developing a culture of political engagement within AED's membership and turning equipment distributors into effective spokespeople and grassroots lobbyists. Among other things, that's meant raising the visibility of our industry and member companies on Capitol Hill and helping industry execs forge relationships with policymakers through our Washington Fly-In, ImPACt events, facility visits, etc. The ultimate goal is to ensure that policymakers (particularly at the federal level) understand how decisions they make affect our members and their employees. We're hoping that all the hard work will pay off as we try to resolve one of the top policy challenges facing the equipment industry: putting the federal Highway Trust Fund (HTF) back on solid footing. All of the revenues the HTF collects from the 18.4 cent per gallon federal gas tax, diesel taxes, and other highway user fees are spent on surface transportation. Unfortunately, those revenues are inadequate to support the roughly $40 billion annual federal highway program. Due to budgeting and cash flow nuances, without a new infusion for the HTF federal highway spending will fall by more than 90 percent in 2015. We estimate that the $35 billion drop in annual investment will translate to $2.3 billion in lost equipment market opportunity nationwide. The HTF will be able to support a bigger program in 2016 and beyond, but nowhere near the current investment levels. That leaves Congress with three options: (1.) Do nothing and let highway investment drop dramatically, (2.) transfer money from the general fund to the HTF to make up the shortfall (which would make the federal budget deficit worse), or (3.) restore the HTF's long-term solvency by increasing user fees (e.g., raising the gas tax, creating a new vehicle miles traveled tax, or some other option). AED is a strong advocate of the latter option, as are all the other major construction industry associations and the U.S. Chamber of Commerce. In the past, increasing the gas tax has been a fairly simple proposition (the last time it happened was in 1993). It's not now because of the breakdown in trust. Voters don't trust Congress to make good decisions and don't trust that tax dollars are being spent wisely. Lawmakers themselves reflect that public sentiment. Many don't trust their fellow members of Congress when it comes to policy problems and solutions. That's where you come in. The Gallup poll is proof that people – broadly defined to include voters, the local media, your employees, and elected officials – trust you and want to hear what you think. With that in mind, it's critical that our industry's leaders put themselves out in the forefront, talking about issues that affect our industry's markets and costs of doing business. Whether it's the highway program, tax reform, labor issues, energy policy, or regulatory issues, you can achieve tangible results when you take the time to speak up. AED is your partner in that effort. In addition to the resources on our main web page, our Highway Action Center, or other AED sites, we can also provide assistance preparing letters to the editor and op-eds for local papers, developing state-specific briefing materials, and helping facilitate meetings between you and key audiences to help you make your case. To see the Gallup poll results for yourself, go to http://www.gallup.com/ poll/163052/americans-confidencecongress-falls-lowest-record.aspx. Give them a quick look, be proud that you're so credible, and get out there and start talking! Christian klein (caklein@aednet.org) AED's vice president of Government Affairs and Washington counsel. He can be reached at 703-739-9513. August 2013 | Construction Equipment Distribution | www.cedmag.com | 59 59_washington insider_KP2.indd 59 7/25/13 1:02 PM

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