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: Current Tax System Will Make U.S. a Global Bystander
Investment and Growth Flow to the Best Business Environment
Washington, DC, 02/22/12 - National Association of Manufacturers (NAM) President and CEO Jay Timmons issued the following statement in response to President Obama’s tax policy announcement:
“Manufacturers, who have long called for tax policies that make us more competitive and able to create jobs, appreciate President Obama’s focus on tax reform today. It’s not a moment too soon. On April 1, if the U.S. maintains its current course, we will become the home to the highest corporate tax rate in the industrialized world. This designation serves to undermine job creation and cede competitiveness to nations that are all too eager to offer lower tax rates and take away our position as a global economic leader.
It’s a simple rule of economics – investment and growth will flow to the best business environment. Imposing a complex tax system with high, uncompetitive tax rates on the backs of manufacturers in the U.S. will greatly slow economic growth and will bring nascent job growth screeching to a halt.
Manufacturers have repeatedly told Washington they need a simplified, pro-growth tax system in order to flourish. The President suggests some changes that will help, but many of the proposals completely miss the mark and would make U.S. businesses less competitive. In addition, the two-thirds of manufacturers who file as individuals will receive no relief from the current burdensome tax system. There is a long way to go to address the 20 percent cost disadvantage that manufacturers face every day.
Manufacturers will closely review this new proposal from the White House because this is a critical time for the nearly 12 million men and women who make up the manufacturing workforce. We need action to reduce our corporate rate, reform our international tax rules, lower rates for small businesses and enact pro-growth, pro-jobs changes to our tax system. Otherwise, we will resign ourselves to the role of bystander in the global economy.”