Our nation’s tax system, with extremely high rates, a host of temporary provisions and out-of-date international rules, has created an uncertain environment that consistently undermines manufacturers’ ability to compete and succeed in the global marketplace.
Manufacturers believe that comprehensive tax reform is essential to unleashing the economic power of manufacturing and making the United States the best place in the world to manufacture and attract foreign direct investment.
There are things policy makers can do to create a tax climate that encourages innovation and spurs investment, job creation and economic growth. Key ingredients for comprehensive tax reform plan include:
- A Lower Corporate Tax Rate;
- Lower Tax Rates for Small and Medium-Sized Manufacturers;
- A Strong, Permanent and Competitive R&D Incentive;
- A Modern International Tax System; and
- A Robust Capital Cost-Recovery System.
While the NAM is a strong advocate for comprehensive reform of our current tax code, until policymakers can agree on a reform plan, we need to keep our current tax system in place. Piecemeal changes to longstanding rules will inject more uncertainty into business planning, making U.S. companies even less competitive.
Manufacturers are concerned about the impact of historically-high levels of the federal deficit and the debt on the overall U.S. economy. In addition to comprehensive reform of our tax code, the NAM supports efforts to rein in federal spending. While policy makers must focus on reforming entitlement spending, which includes Social Security and Medicare, they also need to consider cuts to discretionary spending, which accounts for about 35 percent of total federal spending.
At the same time, NAM recognizes that some federal spending is necessary and indeed critical to our national’s overall economic and national security.
The NAM is leading the charge for substantive, thoughtful reforms that will lift manufacturers in the United States and our overall economy to greater heights.
- Capital Cost Recovery
- Employee Benefits and Retirement Security
- International Tax
- Federal Spending (Including: Defense Manufacturing, Debt Ceiling, Deficit Reduction, Entitlement Reform)
- Small Business Tax
- State Tax
- Tax Rates and Base Broadeners
- Tax Reform