A bipartisan package of key tax incentives important to manufactures has been in limbo since early this year as Congress drags its feet in extending these temporary “extenders.” Like a yo-yo, these on again, off again nature of these tax provisions undermines the goal of these incentives to drive competitiveness, innovation and job growth. For example, with deferral for active financing on hold, U.S. manufacturers that provide financing for overseas sellers are penalized with a tax that their foreign competitors do not incur. And this makes it more difficult for them to provide competitive financing for potential customers. Moreover, unlike our competitors, our country has been without an R&D incentive for almost three months. This is not news to other countries. In fact, just two days ago Canada ran a half page, full color ad in the Washington Post bragging that its “…R&D incentives are among the most generous in the world.”
These and other temporary tax provisions help manufacturers invest, grow and retain U.S. jobs. During an exchange last week on the floor of the Senate between the Democrat and Republican leadership of the Senate and the Finance Committee, there was rare, bipartisan agreement that the now expired tax extenders are causing uncertainty to individual and business taxpayers and should be renewed sooner rather than later. We couldn’t agree more. While we wait for comprehensive tax reform, Congress should renew quickly the bipartisan-supported tax extenders that benefit manufacturers, their customers and their supply chains while spurring growth in the economy and jobs. Restoring tax certainty will go a long way to boosting our fragile economic recovery.
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