This Tax Increase Will Not Help Create Manufacturing Jobs

By September 27, 2010Economy, Taxation

The Wall Street Journal today points out the ironic title of the Creating American Jobs and Ending Offshoring Act (S. 3816), slated for a procedural vote in the Senate tomorrow.  Masquerading as a way to “insource” jobs back into the United States, the bill introduced on Sept. 21 by Sen. Richard Durbin (D-IL) would make U.S. companies less competitive and actually could lead to a loss of U.S. jobs.

The real culprit here is the U.S. corporate tax rate, currently ranked No. 2 among developed nations and much higher than most of our competitors. The NAM’s Manufacturing Strategy for Jobs and a Competitive America encourages law makers to support policies to ensure that the United States will be the best country in the world to headquarter a company, to innovate and perform global R&D and to manufacture, both for the American market and as an export platform for the world.

To this end, the National Association of Manufacturers supports a national tax climate that does not place U.S. manufacturers at a competitive disadvantage in the global marketplace. Unfortunately, the tax increases in S. 3816 do just the opposite. With “jobs” a key theme in political campaigns around the country, it’s hard to understand why the Senate tomorrow will vote on a bill that would be a job-killer when instead lowering the corporate tax rate could create more than 2 million jobs by 2019.

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Dorothy Coleman

Dorothy Coleman

Dorothy Coleman is vice president of tax and domestic economic policy at the National Association of Manufacturers (NAM). Ms. Coleman is responsible for providing NAM members with important information related to tax issues and representing the NAM’s position to Congress, the Administration and the media. An NAM spokesperson for tax policy issues, she coordinates membership coalitions; prepares testimony, reports and analyses; and responds to media inquiries. Before taking over as vice president of the tax policy department, she served as director of tax policy from April 1998 to April 2000.
Dorothy Coleman

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