This strategy is a blueprint for competitiveness that will unleash the economy and manufacturing’s outsized multiplier effect. Importantly, manufacturers’ aspirations—the four goals laid out in the pages that follow—are ones that all Americans who want to maintain our country’s economic advantage can rally around.
Manufacturers Oppose Tax Increases on Business
Senate Amendment Ties Important Proposals To a Bill that Denies Tax Relief To Many Manufacturers
Washington, DC, 12/04/10 - The National Association of Manufacturers (NAM) Executive Vice President Jay Timmons issued the following statement today on Senate Amendment (SA) 4727 to the Middle Class Tax Relief Act of 2010 (H.R. 4853):
“Manufacturers oppose the Senate’s amendment to the Middle Class Tax Relief Act of 2010 because it would result in a tax increase for the vast majority of America’s small and medium manufacturers. The tax relief enacted in 2001 and 2003 played a key role in stimulating our economy as it repealed the estate tax and lowered both the individual tax rates and tax rates on investment.
The Senate amendment being voted on today does not include this critical relief. As a result, in January 2011, many manufacturers will see a top tax rate of nearly 40 percent. Manufacturers strongly support extending the 2001 and 2003 tax rates for all taxpayers. According to the non-partisan Congressional Budget Office, fully extending the 2001 and 2003 tax cuts would add between 600,000 and 1.4 million jobs in 2011 and between 900,000 and 2.7 million jobs in 2012.
Over 70 percent of American manufacturers file as S-corporations or some other pass thru-entity and will be significantly impacted by these higher rates. Americans want jobs, and this bill will only hinder job creation and economic growth.
Manufacturers strongly support many of the provisions in the Senate amendment, including the renewal of business “extenders” such as the R&D credit, “look-through” rules and deferral for active financing. These incentives encourage energy efficiency and alternative sources of energy. We also support the repeal of the health care law’s 1099 reporting provision. But attaching these important proposals to tax increases that will impact many manufacturers is not acceptable.
We will continue to work with Congress and the Administration to find a path forward on extending all the current tax rates.”