If it’s summer in Washington DC then apparently it must be time for a tax fight, except this time we already know what lays beyond the clouds on the horizon – a steep cliff, one which the economy could fall off of if our nation’s leaders don’t agree to a different path. As anticipated, the car we are all riding in just picked up speed toward that cliff earlier today when the President in a White House speech advocated for increasing marginal tax rates on some Americans.
This proposal comes despite the mounting evidence that this is the wrong approach – one which will hurt small businesses and our fragile economic recovery. According to the Congressional Joint Committee on Taxation in a report last month, allowing marginal rates to go up to the pre-2001 levels on those taxpayers in the top two brackets would result in tax increases on nearly 53 percent of all flow-through business income.
As the President stated in his remarks earlier today, “the folks who create most new jobs in America are America’s small business owners.” With nearly 70 percent of manufacturers organized as a flow-through business, these proposed tax hikes will very likely have a dampening effect on the growth and strength of the manufacturing sector. In fact, 64 percent of manufacturers have cited a negative business climate and uncertainty as their chief concern in planning for the future.
Instead of supporting tax increases on business owners, the NAM supports the proposal to be considered by the U.S. House later this month which would extend today’s lower tax rates for one year and enact a mechanism for Congress to use an expedited path to consider comprehensive tax reform during 2013. Manufacturers have long called for comprehensive tax reform with the goal of a permanent, simplified and competitive tax code. Knowing that cliff is coming up fast, now is the time for the White House and Congress agree to extend current law for another year and chart the course toward tax reform for once and for all.
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.
Latest posts by Carolyn Lee (see all)
- STEPping Up to Advance Women in the Workforce - October 24, 2017
- More to Offer: Manufacturing Careers - September 11, 2017
- IRS Hearing Day on Family-Owned Business Estate Tax Regs - December 1, 2016