Manufacturers are urging Congress to move forward as soon as possible with the bipartisan Miscellaneous Tariff Bill (MTB) to support jobs and enhance our competitiveness. Failure to pass an MTB will result in a tax increase on manufacturers in the United States.
The legislation gives manufacturers in the U.S. relief on duties for imported inputs necessary to manufacture products but are not available domestically. The MTB process is extremely transparent. All of the benefits companies receive are disclosed throughout the process.
On Friday a group of 65 House freshman members sent a letter to Speaker Boehner voicing their support for the MTB.
The MTB has been an important tool for making American manufacturing more competitive for 30 years by suspending import taxes on necessary manufacturing inputs not available in this country. Given the fragile state of our economic recovery, the MTB remains critical to expanding manufacturing employment. In other words, it’s a jobs bill. The MTB has been estimated to support 90,000 American jobs, increase U.S. production by $4.6 billion and expand U.S. GDP by $3.5 billion.
The fiscally conservative members who signed onto the letter state how the MTB is cleary not an earmark.
Over the past two years, there has been paralysis on moving forward on the MTB over whether or not MTB provisions are prohibited as “limited tariff benefits” under House rules. As fiscal conservatives, we appreciate these concerns. However, we believe it is an error to view duty suspension bills in that manner. Unlike spending earmarks, as they are sometimes erroneously characterized, a duty suspension included in the MTB is available to any U.S. manufacturer – including small businesses – importing the covered product because it is not available domestically. Downstream producers, distribution service providers, and consumers benefit as well from the tax reductions.
Manufacturers have been leading our economic recovery and look to continue to lead the way when it comes to job creation and economic growth. The MTB can help make manufacturers more competitive and support jobs.