The National Association of Manufacturers (NAM) is releasing in-depth “Competing to Win” policy papers to equip Congress and the Trump administration with blueprints for delivering on manufacturers’ priorities. Today’s release is the second in the series and focuses on tax. For more on the NAM’s “12 Days of Transition,” follow @ShopfloorNAM.
If there is one single issue that could have the greatest positive impact on manufacturing overall, tax reform is likely that issue.
As it stands today, our tax code is dragging down manufacturers and holding us back. We have the highest corporate tax rate in the world, and some small manufacturers that are structured as S-corporations and file as individuals pay tax rates greater than 40 percent, which is absurd.
Our goal needs to be making the United States the most attractive place to manufacture and invest, and we will make great strides in that direction through pro-growth tax reform.
In the NAM’s “Competing to Win” agenda, released in early 2016 and now updated with in-depth policy blueprints, we lay out very clearly the problems and solutions for our elected officials, and we have shared this with President-elect Donald Trump’s transition team.
For manufacturers, a tax reform plan must include:
- Reduced tax rates on corporate and pass-through business income;
- A robust capital cost-recovery system;
- Strong research and development incentives; and
- Modern, competitive international tax rules.
A study released by the NAM in January 2015, titled A Missed Opportunity: The Economic Cost of Delaying Pro-Growth Tax Reform, found that comprehensive tax reform that includes this multipronged pro-growth tax package would substantially grow the economy and result in increased jobs and investment. Over a 10-year period, this pro-growth tax reform plan would:
- Increase GDP by more than $12 trillion relative to Congressional Budget Office projections;
- Increase investment by more than $3.3 trillion; and
- Add more than 6.5 million jobs to the U.S. economy.
Our outdated system is taking a toll on our economy. Just look at recent years’ slow growth, static investment and an employment rate that does not match our growth potential. Manufacturers stand ready to be the solution in generating economic growth that we have not seen in a very long time. We are not just identifying the problems, we are being the solution. After all, when manufacturing succeeds, America succeeds.
To view the blueprint, click here.
This blog is part of the NAM’s “12 Days of Transition” series, an effort to provide the presidential transition team and other Washington policymakers with a roadmap to bolster manufacturing in the United States. Read the other blogs in the series here.