ICYMI: Timmons & Shay: Retail and Manufacturing United in Support of Tax Reform

Excerpts from The Hill

By: NAM President and CEO Jay Timmons and NRF President and CEO Matthew Shay

November 29, 2017

“In the coming days and weeks, our elected leaders in Washington, D.C. have the chance to do something bold to improve the lives of all Americans, dramatically boost job creation and raise take-home pay for working families.

“First, we believe tax reform should include a bold reduction in the country’s corporate tax rate. At 35 percent, U.S. corporations face the highest statutory tax rate among the advanced economies in which they compete. To stay competitive, we need to get down to at least the 20 percent rate that is being considered, or closer to the 15 percent that was originally proposed.

“Our high corporate tax rate has also suppressed the wages of U.S. workers. According to research by the National Retail Federation (NRF), our corporate tax code costs the average U.S. worker $4,690 in lost wages.

“Second, we must reduce taxes for small businesses, many of which are organized as entities like partnerships, LLCs and S corporations. Small businesses employ more than half the workers in the U.S. Our tax code needs to reflect the critical role small businesses play in our country’s economy, as well as their need to compete on an international scale.

“Third, lawmakers should modernize our international tax rules. Most advanced economies have adopted a ‘territorial’ system, and the U.S. should do the same so that American companies are not double taxed when they bring home money earned overseas.

“So far, the legislation proposed in Congress would help achieve these goals. In addition, the plans include incentives for productive, job-creating investments in new plants and equipment. The plans also include middle-class tax cuts, which help working families and spur the growth of our economy.

“A 2015 study from the National Association of Manufacturers (NAM) showed that a comprehensive tax reform package along these lines would add more than $12 trillion in U.S. GDP, create more than 6.5 million jobs and increase investment by more than $3.3 trillion over a 10-year period. 

“Let’s set aside our differences and seize this opportunity to pass the tax reform our economy desperately needs …”

-NAM-


The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12 million men and women, contributes $2.17 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org..

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