NAM Applauds Introduction of Bills Protecting Family-Owned Businesses

By | Shopfloor Policy, Taxation | No Comments

The National Association of Manufacturers (NAM) applauds the leadership of Rep. Warren Davidson (R-OH) and Sen. Marco Rubio (R-FL) in introducing legislation to prevent the finalization of proposed regulations affecting the transfer of minority interests in a family-owned business. Since these proposed regulations were released in August, there has been a growing concern among small manufacturers about the potential harmful impact of these proposals on the continuity and succession planning of family-owned enterprises. Thousands of manufacturers across the United States are family-owned businesses. These businesses, often in their second and third generation, are at the heart of the manufacturing supply chain and are a critical piece of the economy.”

The proposed regulations purport to address what Treasury believes to be abusive tax planning. In reality however, as more than 3,800 family-owned businesses and trade associations representing these businesses expressed in an NAM-led letter sent to Treasury last week, “the proposed guidance is one of the most sweeping changes to estate tax policies in the last 25 years and would be detrimental to active enterprises and family-owned businesses that employ millions of workers throughout the nation.” While most taxpayers applaud efforts to target abuses in the tax system, if the proposed regulations are not corrected, they have the potential to threaten “the ability of families to pass businesses on to the next generation of owners.” Manufacturers applaud the leadership of these members in introducing this legislation and will continue to work to protect family-owned manufacturers so that they can continue to compete and succeed.

Ohio Companies to Treasury: 385 Regulations Negatively Impact Business

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A group of nearly 50 Ohio companies, including a number of manufacturers, sent a letter to Treasury today about the negative impact the proposed Section 385 regulations are already having on businesses. In the letter, the Ohio companies warned that the regulations, if finalized in their current form, would “significantly impede the ability of our businesses to invest and create jobs in Ohio.”

The letter echoes sentiments the National Association of Manufacturers (NAM) has shared with the Treasury Department in meetings, testimony and comment letters about the uncertainty, costs and compliance challenges posed by these proposed debt/equity rules. The NAM has also taken this message to Capitol Hill, where manufacturers continue to brief congressional staff on the serious strain these regulations would have on manufacturers’ corporate finance operations, if the rules are not withdrawn or, at a minimum, significantly modified. Read More

House Committee Approves Bill to Repeal Pay Ratio, Conflict Minerals

By | Policy Experts, Shopfloor Policy, Taxation, Trade | No Comments

Blog co-authored with Ken Monahan, director of international trade policy.

More than six years since Congress approved the Dodd-Frank Wall Street Reform and Consumer Protection Act, the House Financial Services Committee on Tuesday took a step to modify or repeal various provisions from that law. The Financial CHOICE Act (H.R. 5983), approved by the committee, specifically addresses some of the provisions that manufacturers have been raising concerns with for years, including the pay ratio and conflict minerals requirements. Read More

Congress Increases Pressure Against Treasury’s Section 385 Regulations

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The National Association of Manufacturers (NAM) has been front and center in the effort to push back on Treasury’s Section 385 debt/equity proposed regulations, leading the business community in writing to Treasury and Congress, educating members of Congress and their staff with more than 70 meetings and hosting fly-ins to bring corporate treasurers and tax executives from manufacturing companies to Washington to meet with Treasury, the administration and Congress. Now, the leaders of the House and Senate tax-writing committees are echoing many of the business community’s concerns in letters to Treasury Secretary Jacob Lew today. Read More

Manufacturers Ask SEC Not to Add to the Disclosure Burden

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In April, the Securities and Exchange Commission (SEC) put out a concept release on modernizing certain disclosure requirements in Regulation S-K, basically the guiding document for the disclosures that public companies must file in their periodic reports. The National Association of Manufacturers (NAM) took the opportunity to comment on the release, raising strong concerns with existing disclosures and also recommending against additional disclosures that add to the compliance burden without providing any additional benefits to investors. Read More

Section 385: From Debt to Equity—Listen to NAM’s Latest Tax Podcast

By | General, Shopfloor Main, Shopfloor Policy, Taxation | No Comments

Though released as part of a package designed to curb cross-border mergers, the Treasury’s broad regulations do little to stop this activity. Instead, these efforts will have a significant negative impact on manufacturers in the United States while stifling investments, job creation and economic growth.

In this week’s Shopfloor podcast, National Association of Manufacturers (NAM) Vice President of Tax and Domestic Economic Policy Dorothy Coleman and NAM Senior Director of Tax Policy Carolyn Lee discuss the implications of these regulations.

Manufacturers Encouraged by Legislation on Proxy Advisory Firms

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The National Association of Manufacturers (NAM) has long believed that a public company’s board of directors is best positioned to responsibly oversee the effective operation and management of a company to maximize performance of the organization and provide long-term value to shareholders. Shareholders also have the means to communicate effectively with management through the current proxy process, annual meetings and other communications to ensure the smooth functioning of the business. However, there is another party that is becoming increasingly involved in the proxy process and companies’ overall corporate governance: proxy advisory firms. Read More

Tax and Regulatory Burdens Still Top of Manufacturers’ Minds

By | Shopfloor Main, Shopfloor Policy, Taxation | No Comments

Earlier today, the National Association of Manufacturers (NAM) released the results of its second quarter 2016 Manufacturers’ Outlook Survey, showing an uptick in overall sentiment. In this survey, 61.7 percent of manufacturers expressed positivity about their own company’s outlook, up from 56.6 percent in March. This marks the most optimistic manufacturers have been since December 2015.

However, NAM Chief Economist Chad Moutray said, “While this survey offers a bit of optimism for manufacturers, there is still a dramatic need for improvement before our sector can regain its footing. This survey, coupled with the latest jobs report, should serve as a stark reminder to Congress that policy priorities, including market-opening trade agreements and comprehensive tax reform as well as addressing regulatory barriers, are top of manufacturers’ minds. If lawmakers in Washington take action on these and other items, they could help reverse the pain manufacturers are experiencing, expanding job opportunities and strengthening the broader economy as a result.” Read More