The Relief Report ®

A newsletter covering regulatory reform efforts in Washington and across America, published by The National Center for Public Policy Research, 20 F Street NW, Suite 700 , Washington, D.C. 20001, (202) 507-6398, Fax (301) 498-1301, E-mail [email protected] Web

Issue #52 * April 4, 1997 * David A. Ridenour, Editor

Hill Watch - Regulatory relief initiatives
on Capitol Hill

Thousands of Businesses to Lose Constitutional Search and Seizure Protections Under New Treaty

Senate Majority Leader Trent Lott's apparent desire to bring the flawed Chemical Weapons Treaty to the Senate floor for a vote on ratification is bad news for business. Should the treaty be ratified over 8,000 American businesses - many in non-chemical industries - are expected to be forced to comply with intrusive new paperwork reporting requirements and, even worse, to open their businesses to international inspectors who may represent their foreign competitors. Judge Robert Bork has written that, should the treaty be ratified, "A foreign state will have the right to challenge inspection of a U.S. facility without the grounds that are essential for a search warrant. The U.S. is required by the CWC to enforce inspection by an international team, even over opposition from the owner. On-site personnel can be compelled to answer questions, provide data, and permit searches of anything within the premises - including records, files, papers, processes, controls, structures and vehicles." Contact Frank Gaffney of the Center for Security Policy at 202/466-0515 or [email protected] or for more information visit or for.

Administration Watch - Where the Clinton Administration stands on regulatory relief

Administration Uses Regulations to Increase Business Taxes

Through his new Hope, Growth and Opportunity "message tank," Steve Forbes is warning American businesses that "the Treasury Department is about to slip through a nasty little increase on America's partnerships - architects, consultants, engineers, actuaries, accountants, lawyers, etc." The tax, rejected by Congress in 1994, is being imposed by the Administration's regulatory apparatus. Says Forbes: "Here's how the stealth income tax works: Limited partners will have to pay what is in effect the 2.9% Medicare payroll tax not only on the incomes they receive, but also on the earnings that the partnership retains." Particularly annoying to Forbes, and, we understand, to House Speaker Newt Gingrich and Ways and Means Chairman Bill Archer, who learned of the tax increase April 3 and are now moving to thwart it, is the fact that the Administration is using its regulatory power to sneak the tax past Congress. Experts predict that if this tax-increasing regulation goes into effect it will soon also be applied to S corporations. In seeking to impose this new tax by regulation the Administration has not complied with several applicable rules, including Congressional Review provisions, the Small Business record-keeping provisions of the Regulatory Flexibility Act, and the President's Executive Order 12886. Contact Joel Rosenberg at 703/925-9281 or [email protected], or visit for more details.

Tales from the Dark Side --
Activities of the regulation lobby

Crockett Family Fights Modern Day Alamo on the Chesapeake

A battle over blue crab regulations affecting commercial watermen of the Chesapeake has the makings of a modern day battle of the Alamo, complete with a family named Crockett. Two years ago, fluctuating blue crab populations in the Chesapeake caught the attention of environmentalists. Armed with a survey from the Chesapeake Bay Commission and a report from the College of William and Mary, they argued that the Chesapeake's blue crab stocks would collapse without severe harvest restrictions. As a result, new regulations were imposed to protect the crabs. The most costly of these was a shortened crab season imposed in 1995. Due to the severity of the 1995/96 winter, an estimated 55% of the crab population died in the frigid muds of the Chesapeake -- crabs that could have been sold for up to $50 a bushel had regulations not prevented it. To add insult to injury, a National Oceanic and Atmospheric Administration study found that the environmentalists were wrong in the first place and that the crab populations were robust. One of the watermen fighting against unreasonable regulations is a song-writing, ballad-singing boat captain by the name of Davey Crockett. Hopefully, his battle will be more successful than the other Davey Crockett's. For more information, contact David Ridenour of The National Center for Public Policy Research at (202) 507-6398 or [email protected] (

Tactics of Union of Concerned Scientists "Sound Science Initiative" Exposed

For all those who viewed the Union of Concerned Scientists' (UCS) recent foray into "sound science" as akin to Dr. Kevorkian opening a suicide prevention hotline comes this bit of confirmation: The Tucson, Arizona-based Doctors for Disaster Preparedness has obtained a tape of a media training teleconference for scientists hosted by the UCS that exposes the group's "Sound Science Initiative" as merely a tactical device to promote the global warming scare. According to Doctors for Disaster Preparedness Newsletter, the scientists were told, among other things: "Don't confuse [journalists] with doubt. In other words, don't talk like a scientist, with caveats and error bars. Emphasize the word 'consensus.'" The very nature of "sound science," however, dictates that there will caveats, qualifiers and uncertainties. For more information, contact Doctors for Disaster Preparedness at 520/323-3110.

All editorial correspondence to The Relief Report should be directed to: The National Center for Public Policy Research * 20 F Street NW, Suite 700 * Washington, D.C. 20001 * Tel (202) 507-6398 * Fax (301) 498-1301 * E-mail [email protected] * Web Copyright 1998, The National Center for Public Policy Research. Coverage of meetings, activities or statements in the Relief Report does not imply endorsement by The National Center for Public Policy Research. Reprints of material in the Relief Report permitted provided source is credited. To receive all National Center newsletters free by e-mail, visit or send a message to [email protected].###


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