What Democratic Leadership in DC
Means for PBA Members

After years spent as the minority party in Congress, the electorate has given the Democrats control of the House of Representatives and the U.S. Senate. For months, the political pundits had predicted the likelihood of a Democratic takeover in the House-giving longer odds on a Senate takeover as well.

Election night saw the defeat of Rep. Nancy Johnson (R-CT) and Sen. Rick Santorum (R-PA)-both key sponsors of PBA's Cosmetology Tax Fairness & Compliance Act (H.R. 1345). Yet, the results of the 2006 elections appear to hold a bright future for the salon and spa industry.

H.R. 1345 resides in the House Ways & Means Committee and Senate Finance Committee, which are responsible for oversight of tax legislation. It's been no secret that the current chairman of Ways & Means Committee, Rep. Bill Thomas (R-CA), was somewhat less than collegial in his leadership of the committee. During much of his tenure, Rep. Thomas relied heavily on Republican support and had little contact with the committee's top Democrat, Charles Rangel (D-NY), or with other ranking Democrats on the committee. Moreover, Thomas was known for keeping his own counsel and rarely consulted with fellow Republicans when making leadership decisions.

With the Democrats' newfound majority status comes a wholesale change in committee leadership. When the new Congress begins in January, Rep. Charles Rangel will now be sitting in the powerful chairman's seat. Rangel has already publicly acknowledged a strong desire to chair the Ways & Means Committee in a more transparent and collegial manner. Having spent the last twelve years in the minority, Rangel has a deep understanding of what it's like to be the party out of power.

The Professional Beauty Association and H.R. 1345 have some very powerful supporters in the new Congress. Not only does PBA have a good relationship with Chairman Rangel, but he's also a co-sponsor of the association's tax bill. Further, the new top Republican on the committee will be Rep. Jim McCrery (R-LA)-a supporter of the industry, co-sponsor of H.R. 1345 and a 2006 recipient of PBA's Friend of the Industry Award.

Despite taking control of both houses of Congress, Democrats still face a challenge of translating wins at the polls into wins on Capitol Hill. With the threat of filibusters always possible, most legislation needs 60 votes to pass the Senate. Democrats will likely find it difficult to move legislation without the support of at least some Republicans and members of the more moderate wing of the Democratic Party. This reality makes key moderates like Sen. Blanche Lincoln (D-AR) very important players in the new Congress. Sen. Lincoln is also a supporter of the industry, a key member of the Senate Finance Committee and a co-sponsor of PBA's tip-tax legislation.

Of course, no matter who's in control of Congress, the challenge will always be finding an appropriate legislative 'vehicle' for the tip-tax language. Although it's still too early to tell what opportunities may exist next year, a vote on a minimum-wage increase is likely to come in the first days of the new Congress. Past increases in the minimum wage have been coupled with some form of tax relief provisions for the small business community.

As the new Democratic leadership takes control of dozens of congressional committees, the next several months will be a period of transition for both parties. In the coming weeks, we'll learn more about new appointments to key committees, as well as hear more about the agendas of incoming chairmen. We will surely get a clearer picture of the election's impact on Capitol Hill-and this will be the backdrop by which PBA crafts its new government affairs strategy.

Amidst all the change in Washington, one thing remains the same: our grassroots membership is PBA's greatest asset and your active involvement will absolutely make the difference.