Last night, the Senate rejected efforts to begin debate on the “American Jobs Act” (S. 1660), which includes a so-called “millionaires surtax,” a new permanent tax on taxpayers with income over $1 million, including many small manufacturers.
In the lead up to the vote, NAM Senior Vice President for Policy and Government Relations Aric Newhouse sent a letter to the Senate expressing Manufacturers’ opposition to the surtax, which would amount to over $450 billion in new taxes. Newhouse noted that Manufacturers are particularly concerned that the proposal would impose an anti-growth surtax on top of an already out of date tax code:
“Now, more than ever, is the time for tax reform to promote, jobs, growth, jobs and competitiveness that will make the United States the best country in the world to manufacture products.” He added that such a significant change to our nation’s tax policy – especially one which would raise nearly a half of a trillion dollars – “should not be considered as a rifle-shot effort to address a specific need for revenue.”
Moreover, this surtax could not come at a worse time for the almost 70 percent of manufacturers that pay taxes at individual rates. As pointed out by Sen. Marco Rubio (FL) in a statement on the bill “if the 2001 tax relief expires as scheduled in 2013, this new tax surcharge would push the top marginal tax rate to nearly 50 percent when accounting for the new 3.8% Medicare tax on unearned income in the Patient Protection and Affordable Care Act. It would also sharply increase taxes on capital gains and dividends investment, hurting small businesses and investors.”
Manufacturers are again calling upon Congress to undertake a comprehensive review of our nation’s tax laws and reform both individual and corporate tax code with the ultimate goal of creating a tax code that is both pro-growth and pro-job creation.
Carolyn Lee is senior director of tax policy, National Association of Manufacturers.
In her role, Carolyn leads the Institute’s workforce efforts to close the skills gap and inspire all Americans to enter the U.S. manufacturing workforce, focusing on women, youth, and veterans. Carolyn steers the Institute’s initiatives and programs to educate the public on manufacturing careers, improve the quality of manufacturing education, engage, develop and retain key members of the workforce, and identify and document best practices. In addition, Carolyn drives the agenda for the Center for Manufacturing Research, which partners with leading consulting firms in the country. The Institute studies the critical issues facing manufacturing and then applies that research to develop and identify solutions that are implemented by companies, schools, governments, and organizations across the country.
Prior to joining the Institute, Carolyn was Senior Director of Tax Policy at the NAM beginning in 2011, where she was responsible for key portions of the NAM’s tax portfolio representing the manufacturing community on Capitol Hill and in the business community and working closely with the NAM membership. She served as the Director of Legislative and Government Affairs at the Telecommunications Industry Association, Manager of State and Federal Government Affairs for 3M Company, and in various positions on Capitol Hill including as Legislative Director for former U.S. Senator Olympia Snowe (R-ME), and as a senior legislative staff member for former U.S. Rep. Sue Kelly (R-NY).
Carolyn is a graduate of Gettysburg College in Gettysburg, Pennsylvania graduating with a B.A. in Political Science. She resides in Northern Virginia with her husband and three children.
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