On President Obama’s Budget

By February 26, 2009Economy, Taxation

The National Association of Manufacturers just released a statement from NAM President and CEO John Engler on President Obama’s proposed FY2010 executive budget:

At a time when our country is mired in a severe recession, suffering from rising job losses and a financial system in turmoil, the high taxes and anti-investment provisions proposed in the Administration’s budget plan will stifle our economy’s ability to recover, grow and create jobs. As a strong supporter of the recently-enacted legislation to stimulate economic recovery and growth, we are extremely concerned that the Administration’s proposed budget will take us in exactly the wrong direction.

The NAM acknowledges and appreciates the President’s budget recommendation to promote innovation and job creation by making the Research and Development Tax Credit permanent and providing important tax relief to struggling companies of all sizes.

At the same time, the benefits of these pro-growth tax provisions and those contained in the recently enacted stimulus legislation are dwarfed by major, job-destroying tax increases on thousands of manufacturers of all sizes across all industry sectors.

The NAM supported the temporary stimulus legislation because the targeted government investment and tax relief in the plan will jump start the economy. But it makes no sense to jump start one minute, slam on the brakes the next and then head full-speed into reverse. That’s what today’s budget proposal means for jobs and growth. Not only would it destroy jobs and impair the recovery, it would further devastate 401k accounts, pensions and other retirement funds.

We are not prepared to give up on our nation’s economic recovery and growth or on the ability of businesses to create quality jobs for American workers. To succeed, though, we need an environment that promotes investment and job creation. The answer is not to impose a massive tax increase on job-creating businesses that will slow down our economic recovery and severely damage the ability of employers to hire new workers.

We recognize that today’s budget blueprint is the first step in a long process. We will continue to review the details of the plan in the coming days. The manufacturing economy and our 12 million-plus workers and their families have much to lose if the budget plan as released today is enacted into law.

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