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.
Strong Cost-Recovery System Clears a Pathway to Robust Growth
Proposed Rules on R&D, Advertising and Energy Production Could Slow Investment
Washington, D.C., 11/21/13 - National Association of Manufacturers (NAM) Vice President of Tax and Domestic Economic Policy Dorothy Coleman issued a statement in response to Senate Finance Committee Chairman Max Baucus’ (D-MT) release today of a staff discussion draft cost recovery and accounting proposal.
“A strong capital cost recovery system is among the most significant aspects of the tax code for manufacturers, and it is critical to creating an atmosphere for robust growth. Manufacturers know firsthand that capital investment—including product development, new machinery acquisition and publicity for their products—offers the most direct path to economic growth, job creation and competitiveness. We appreciate Chairman Baucus’ effort to simplify the current system and the opportunity to weigh in on his proposal.
As with all aspects of reform, it is essential that manufacturers do not face an increased tax burden. Unfortunately, the draft released today, which includes repeal and/or modification of some key pro-investment tax policies, makes higher taxes a very real possibility for some manufacturers. This would be bad news for an already ailing economy and could reduce manufacturers’ ability to invest, innovate and grow their businesses.
We are committed to working with congressional tax writers to ensure that a strong cost recovery system remains in place.”