It is abundantly clear to manufacturers in the United States that our current tax code has to go—it’s complicated and arcane, holds back economic growth and makes us less competitive. While we’re working hard to get lawmakers to update and improve our nation’s tax system, Treasury Secretary Jack Lew, with a stroke of a pen, managed to make a bad system significantly worse. Read More
In recent months, the NAM criticized some of the recommendations coming out of the Base Erosion and Profit Shifting (BEPS) plan spearheaded by the Organisation for Economic Co-operation and Development, particularly new information disclosure rules that will force companies to disclose sensitive business information and impose additional and unnecessary compliance burdens on them. Read More
On Tuesday, the NAM partnered with member company PPG, a world leader in coatings, and K&L Gates law firm to discuss the outlook for tax reform and recent developments in the international tax arena surrounding the implementation of the Organisation for Economic Co-operation and Development’s Base Erosion and Profit Shifting (BEPS) project. Attending the forum at the K&L Gates Conference Center in Pittsburgh were members of the area business community and representatives from the Pennsylvania senatorial delegation. Read More
NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman was profiled by CQ Weekly as one of Capitol Hill’s top “influencers” for her advocacy on behalf of manufacturers for comprehensive tax reform. The profile highlights Coleman’s work as an advocate on behalf of manufacturers for a comprehensive tax overhaul that includes “lowering the 35 percent corporate rate and cuts taxes for small companies whose owners pay individual income tax rates on business income.”
According to the article, the conversation on tax reform is heating up as House Speaker Paul Ryan (R-WI) begins to map out a plan for a major tax overhaul in the next year. Coleman is listed among five tax policy experts who will “help guide the debate.”
Unfortunately, the House Committee on Oversight and Government Reform Committee is scheduled to consider the Senate-passed Truth in Settlements Act (S. 1109) on March 1. S. 1109 requires federal agencies to publicly post information on their websites about settlement agreements greater than $1 million and indicate whether the settlement payments are tax deductible. The NAM objected to this bill prior to its passage in the Senate and continues to be concerned about the negative impact this legislation may have on manufacturers. Read More
In a statement submitted to the House Ways and Means Committee for today’s hearing on the Global Tax Environment in 2016 and Implications for International Tax Reform, the NAM highlighted concerns about some of the recent tax policy developments in Europe that will have a negative impact on U.S. manufacturers. Read More
During a panel discussion today hosted by the American Action Forum, National Association of Manufacturers (NAM) Vice President of Tax and Domestic Economic Policy Dorothy Coleman warned that recent recommendations coming out of the Base Erosion and Profit Shifting (BEPS) project, spearheaded by the G-20 and the Organisation for Economic Co-operation and Development (OECD), could undermine the competitiveness of U.S. manufacturers and threaten the confidentiality of their most sensitive business information. The event, titled “Evaluating the BEPS Initiative: Who Wins, Who Loses and What Matters Most,” examined the potential impact of the OECD’s BEPS plan and featured keynote remarks from House Ways and Means member Charles Boustany (R-LA).
For years, manufacturers sponsoring traditional defined benefit (DB) pension plans have faced higher taxes in the form of premiums paid to the Pension Benefit Guaranty Corporation (PBGC), the agency insuring these plan. While Congress sets these premiums, the Administration has, for several years now, requested to increase these premiums as part of its annual budget proposal. That is, until the fiscal year 2017 budget proposal was released, which states that “the Administration believes additional increases in single-employer premiums are unwise at this time and would unnecessarily create further disincentives to maintaining” DB plans. Read More
Recent reports that the European Union is working on legislation to require global companies to publically disclose tax and other financial information is raising red flags for U.S. manufacturers that operate in European countries. The latest information disclosure proposal—coming on the heels of the new information requirements in the Base Erosion and Profit Shifting (BEPS) plan finalized late last year by the Organisation for Economic Co-operation and Development (OECD)— would impose additional compliance costs on companies and force disclosure of sensitive taxpayer information, creating a whole new set of unnecessary business challenges for global companies. Read More
The disclosure burden facing public companies is already overwhelming. For example, corporate proxy statements for annual meetings now average between 60 and 80 pages, up from 30 pages a decade ago.
Companies are required to disclose everything from financial performance to executive compensation in these statements, thanks in large part to the Dodd-Frank Act enacted in 2010. The NAM submitted comments to the SEC last year on three of these new disclosures: the “pay ratio” rule and the proposed “pay versus performance” and “clawback” rules. Each proposal is expected to create additional costs and burdens for public manufacturing companies and add to the length of proxy statements without providing any significant benefit to shareholders. Read More