Manufacturers know firsthand the frustrations in dealing with the United States’ antiquated, flawed, and ultimately uncompetitive tax system. While it’s good news that President Obama is focusing on tax issues, solutions that pick winners and losers and increases the tax burden on businesses don’t benefit manufacturers. Tax reform must account for the nearly 70 percent of manufacturers pay taxes at the individual rate. Failing to include these important players in our job creation engine undermines the very point of tax reform – increased growth and competitiveness.
Within the President’s proposal, there are strong building blocks toward the growth American’s have been seeking since the recession. Investments in infrastructure, education, and innovation are fundamental to improving competitiveness and delivering the next generation workforce that will lead the global economy. If we don’t provide for those investments we will find our nation falling behind our global competitors.
In a letter to Senators Max Baucus (D-MT) and Orrin Hatch (R-UT), the leaders of the Senate Finance Committee, manufacturers laid out our top priorities for tax reform. These include a lower corporate tax rate, which the President rightly acknowledges is holding U.S. competitiveness back, a lower rate for small manufacturers (critical to job creation and economic growth), a globally competitive international tax system and provisions that incentivizes R&D and investment.
These priorities are the fundamentals of successful tax reform centered around economic growth and competitiveness. We look forward to working with the Administration to achieve a positive tax climate that fosters global competitiveness for all manufacturers in the U.S.
Aric Newhouse is the Senior Vice President for Policy and Government Relations for the National Association of Manufacturers