Timmons Defends Tax Reform and Advocates Investment Incentives
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When leading members of Congress are asked what organizations were decisive in passing landmark tax reform in 2017, the NAM is often one of the first organizations named. So, when a powerful Senate committee decides to explore issues related to taxes and competitiveness of U.S. manufacturers, the NAM gets the call.
NAM President and CEO Jay Timmons testified before the Senate Committee on Finance on Tuesday to push forward a post-partisan consensus on a number of key manufacturing priorities. A few highlights are below, and you can read the full testimony here.
Pandemic response: “Today, one year after health restrictions began, the light at the end of the tunnel is growing brighter by the second—thanks to the innovation of pharmaceutical manufacturers. Their heroic work, combined with the previous administration’s Operation Warp Speed and this Congress and this administration’s focus on and investment in vaccine distribution, is now saving about 2 million American lives every single day.”
Supply chains: Timmons also spoke about the need to strengthen supply chains and touted the NAM’s supply chain policy recommendations, calling out three in particular:
- The need for predictability and stability in the tax code. Timmons spoke about the benefits of tax reform for manufacturers, reinforced how the industry has kept its promise after the historic law was passed and asked Congress to protect the benefits the law provided.
- The need for a tax code that supports innovation—specifically by preserving manufacturers’ ability to invest in research and development.
- The need to recognize that “policies that are successful in growing manufacturing will require significant capital expenditures by the small and medium-sized firms that are the backbone of our domestic supply chain.”
Challenges ahead: Timmons called out two proposed changes to the tax code that would make it more difficult for those businesses to invest:
- “More stringent limitations on interest deductions and the phase out of immediate expensing will take effect in the years ahead. If not reversed, these changes will make it hard to grow manufacturing.”
Manufacturers speak: In addition to Timmons, Intel Corporation Executive Vice President and Chief Financial Officer George S. Davis and Ford Motor Company Vice President of Global Commodity Purchasing and Supplier Technical Assistance Jonathan Jennings also testified at the hearing.
Questions to consider: Timmons closed by asking a series of questions about whether America would meet its moment—including by ensuring competitive tax rates, investing in infrastructure, developing trade agreements that protect American workers and enacting comprehensive immigration reform that offers a path to citizenship for undocumented immigrants.
His response: “If the answer to those questions is ‘yes,’ if we tackle these fundamental issues, then I’m certain that this Next World that we are building in the aftermath of the pandemic will be built by American workers in American factories, restoring American leadership in the world.”
Manufacturers Unveil Competitiveness Agenda Ahead of Midterm Elections
“Competing to Win” offers a path for bringing the country together around policies, shared values and a unified purpose
Washington, D.C. – Ahead of the midterm elections, the National Association of Manufacturers released its policy roadmap, “Competing to Win,” a comprehensive blueprint featuring immediate solutions for bolstering manufacturers’ competitiveness. It is also a roadmap for policymakers on the laws and regulations needed to strengthen the manufacturing industry in the months and years ahead.
With the country facing rising prices, snarled supply chains and geopolitical turmoil, manufacturers are outlining an actionable competitiveness agenda that Americans across the political spectrum can support. “Competing to Win” includes the policies manufacturers in America will need in place to continue driving the country forward.
“‘Competing to Win’ offers a path for bringing our country together around policies, shared values and a unified purpose,” said NAM President and CEO Jay Timmons. “The NAM is putting forward a plan filled with ideas that policymakers could pursue immediately, including solutions to urgent problems, such as energy security, immigration reform, supply chain disruptions, the ongoing workforce shortage and more. Manufacturers have shown incredible resilience through difficult times, employing more workers now than before the pandemic, but continued resilience is not guaranteed without the policies that are critical to the state of manufacturing in America.”
The NAM and its members will leverage “Competing to Win” to shape policy debates ahead of the midterm elections, in the remainder of the 117th Congress and at the start of the 118th Congress—including in direct engagement with lawmakers, for grassroots activity, across traditional and digital media and through events in key states and districts as we did following the initial rollout of the roadmap in 2016.
The document focuses on 12 areas of action, and all policies are rooted in the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.
Learn more about how manufacturers are leading and about the industry’s competitiveness agenda at nam.org/competing-to-win.
The National Association of Manufacturers 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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org