Capital Briefing: November 13, 2015

Capital Briefing

#Manufacturing Tweet of the Week

Details: Martha Sprague, (202) 637-3083.



This Week in Washington

Administration Rejects Keystone XL.
After seven long years of hurdles and delays, TransCanada Corporation’s permit application to build the Keystone XL pipeline received an outright rejection last Friday. The NAM has repeatedly called for approval of the pipeline, a strong component of an “all-of-the-above” energy strategy. In response to the rejection, the NAM issued a joint statement with the Laborers’ International Union of North America (LIUNA).

“Proving politics is more important to this White House than American jobs, President Obama today killed the opportunity to create thousands of long-term jobs and advance North American energy security,” the NAM and LIUNA said in the statement. “After years of holding this project hostage by delaying a decision on the Keystone XL pipeline, the President turned his back on hardworking Americans, who overwhelmingly support the pipeline. Manufacturers, all workers and all Americans deserve far better than to be treated so poorly.”

For the past seven years, the Obama Administration continually raised the bar for approval—and the project’s sponsors cleared it every time. The Keystone XL project would have been the most state-of-the-art pipeline ever constructed, creating thousands of jobs. The State Department found, several times over, that the pipeline would pose no material environmental risks.

For manufacturers, the rejection of the Keystone XL pipeline is a tough pill to swallow. The Administration declared a privately funded infrastructure project capable of creating $3.4 billion in GDP not to be in the nation’s interest. It is difficult to view the United States as “open for business” when such an opportunity is rejected.

It is time for Congress to take action to override the Administration’s rejection and build this job-creating pipeline.

Details: Ross Eisenberg, (202) 637-3173.

Hot Topic

NAM Members Push for Tax Extenders.
The NAM is urging members and manufacturing supporters to contact their elected leaders with messages supporting the renewal of temporary, pro-growth federal tax provisions that expired at the end of 2014.

This package of more than 50 provisions, known collectively as “tax extenders,” includes important investment incentives, such as bonus depreciation and enhanced Section 179 expensing; the research and development (R&D) credit; and several pro-competitiveness international provisions, including the look-through rule for controlled foreign corporations and deferral for active financing income.

Take action through the NAM’s advocacy portal to quickly and easily send your members of Congress the message that Washington should pass extenders legislation that would revive, extend and, in some cases, make permanent these expired tax provisions.

Our nation needs tax policy that ensures domestic manufacturing and job growth are as strong as possible. Passing extenders legislation will provide a bridge of certainty and predictability for manufacturers and help our nation’s job creators innovate and compete in a global economy.

For more information on the NAM’s efforts to pass such legislation, visit our tax extenders webpage.

Details: Christina Crooks, (202) 637-3076.

Tax, Technology and Domestic Economic Policy

NAM Highlights Concerns with BEPS, Need for International Tax Reform.
In a November 10 panel discussion hosted by the Bipartisan Policy Center, NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman and a panel of experts, including representatives from the Organisation for Economic Co-operation and Development (OECD), discussed key international tax issues, in particular the Base Erosion and Profit Shifting (BEPS) project recommendations recently released by the OECD.

In her comments, Coleman said it is hard to see the benefit to the United States of the BEPS recommendations. Rather, the OECD’s focus on global profit shifting highlights the critical need for a comprehensive overhaul of the U.S. tax system to reflect the global marketplace of the 21st century. In particular, she said that policymakers in the United States should focus on the underlying problems of the U.S. business tax system—the high business tax rates and the double tax burden faced by U.S. global manufacturers and other U.S. multinationals because of our outdated worldwide tax system. Coleman also said that manufacturers are concerned with the BEPS country-by-country and master file information sharing and reporting proposals, which would impose substantial and unnecessary compliance costs on companies and, in some cases, force disclosure of sensitive, confidential U.S. taxpayer information.

Consequently, the NAM is urging Congress to exercise its full oversight authority and thoroughly vet the BEPS proposals and assess their potential impact on American businesses and the U.S. economy before allowing them to be implemented. Moreover, if some of the recommendations are implemented, Congress and the Treasury Department should do all they can to ensure U.S. companies are not forced to disclose sensitive, proprietary business information directly to foreign countries. Moving forward, Coleman said policymakers should focus on creating a more favorable tax climate in the United States to make U.S. companies more competitive and attract foreign direct investment.

Details: Dorothy Coleman, (202) 637-3077.

Manufacturers' Center for Legal Action

NAM Victory in Conflict Minerals Case Stands.
In August, a federal appeals court issued a decision rejecting a Securities and Exchange Commission (SEC) requirement that manufacturers disclose whether products containing certain elements are “conflict free” or undeterminable. The rule arose from the Dodd-Frank law requiring disclosures relating to elements mined in or around conflict zones in the Democratic Republic of the Congo (DRC). This week, the same court rejected an attempt by Amnesty International and the SEC to secure a rehearing in the case before all the judges. This is good news; no judge wanted to revisit the previous ruling, which held that the government-mandated speech was unconstitutional. It is still possible that those parties could ask the Supreme Court to review the case, but it is expected that the case will return to federal district court to consider other remaining issues.

Details: Quentin Riegel, (202) 637-3058 and Ken Monahan, (202) 637-3078.

Manufacturing in Action

The three-part Manufacturing Executive Leadership Program recently brought together more than a dozen manufacturing leaders in Washington, D.C. During the first part of the program,
the class visited Capitol Hill for a behind-the-scenes look at what to expect if they are ever asked to testify before a congressional committee. Participants heard from House Minority Whip Steny Hoyer (D-MD) (at right) and House Manufacturing Caucus Co-Chair Tom Reed (R-NY).

Photo by David Bohrer/National Association of Manufacturers

Get Involved

Download the NAM Advocacy App.
Whether you are visiting a shop floor, meeting with customers across the country or traveling on the other side of the globe, the NAM has developed a tool to help you quickly take action on important issues that affect your company.

The MFGWorks app is available in the Apple App Store and Google Play Store for all Apple and Android devices. Receive real-time alerts as action occurs on legislation, quickly and easily contact your members of Congress to voice your opinion and connect with the NAM through our social media networks and publications, all from the palm of your hand.

As an NAM member, you are the most effective advocate for the manufacturing agenda with your elected officials, and we want to make it as easy as possible for you to weigh in with your legislators. Please take a moment to download the MFGWorks app and share it with your coworkers, family and friends.

Details: Leann Paradise, (202) 637-3049.

Upcoming Events

Save the Date: Cargo Logistics America Expo & Conference December 2–3.
The NAM is a supporting partner of the Cargo Logistics America (CLA) Expo & Conference, December 2–3, in San Diego, Calif.

We invite you to see the entire supply chain—all major transportation modes and all cargo types—under one roof. If your company has a supply chain that runs through America, you will want to attend CLA 2015.

Featured keynote speakers will include Marlin Steel Wire Products LLC President and Owner and NAM Executive Committee member Drew Greenblatt. NAM Director of Technology and Domestic Economic Policy Brian Raymond will lead a discussion with panelists from Intel Corporation, AT&T and Ryder System, Inc. about how the Internet of Things impacts logistics and presents opportunities for further innovation. For more information, e-mail info@cargologisticsamerica.com.

Details: Chrys Kefalas, (202) 637-3082.

The Week Ahead

Senate Hearings:
WEDNESDAY – The Environment and Public Works Committee holds a hearing on the international climate negotiations. THURSDAY – The Energy and Natural Resources Committee holds a hearing on the Well Control Rule and other regulations related to offshore oil and gas production.

Details: Rick Limardo, (202) 637-3198.

House Hearings:
WEDNESDAY – The Budget Committee holds a hearing on if biennial budgeting fits in a rewrite of the budget process. The Science, Space and Technology Committee holds a hearing on the Administration’s commitments to the International Climate Treaty.

Details: Laura Ringdahl Siegrist, (202) 637-3038.

Economic Reports:
Next week, there will be several reports gauging the health of the current manufacturing economy. Most importantly, new manufacturing production data for October will be released on Tuesday; we will be looking for an improvement after the measure has declined in three of the past four months. The latest manufacturing survey data from the Kansas City, New York and Philadelphia Federal Reserve Banks will be released, providing some regional analysis of the sector. Each recorded softness in prior months on headwinds in the global economy and from lower crude oil prices. Other numbers to watch next week include new figures for consumer prices, housing starts and permits, leading indicators and state employment.

Details: Chad Moutray, (202) 637-3148.

Questions or Comments?

Contact Christine Grimaldi at cgrimaldi@nam.org

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