Budget Compromise a Mixed Bag for Manufacturers
Agreement Represents a Positive Step Toward Stability but Concerns with Pension Premium Increases Remain
National Association of Manufacturers (NAM) Vice President of Tax and Domestic Economic Policy Dorothy Coleman issued this statement regarding the bipartisan budget agreement reached by House Budget Committee Chairman Paul Ryan (R-WI) and Senate Budget Committee Chairman Patty Murray (D-WA):
“The bipartisan budget plan is an important step toward installing badly needed stability in Washington. Addressing the debt and deficit issues facing the United States is critical to maintaining our competitiveness in the global economy, and we’re pleased to see that compromise has prevailed. In particular, manufacturers will benefit from negotiators’ efforts to come together on a budget agreement that offers some relief to the tens of thousands of manufacturers affected by the arbitrary sequester spending cuts.
Unfortunately, this deal also comes at a cost for manufacturers in the form of increases in required premium payments to the Pension Benefit Guaranty Corporation by companies that sponsor pension plans. Manufacturers bear this burden more than any other industry, and it amounts to an $8 billion tax increase on these companies.”
Click here to read the NAM letter to members of Congress on the budget agreement.