Category

Taxation

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

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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

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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

NAM Fights Back Against Calls for New SEC Disclosure Requirements

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The disclosures that public companies must file with the Securities and Exchange Commission (SEC) are lengthy and burdensome, often overwhelming to both issuers and their shareholders. In recent years, policymakers have added to the information overload. For example, the Dodd-Frank Act enacted in 2010 mandates new “pay ratio,” “pay v. performance,” “clawback” and “conflict minerals” disclosure requirements, all of which are costly to prepare but do not provide investors with any useful information. Read More

Business Community Raises Serious Concerns About Treasury’s Debt-Equity Rules

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The NAM today joined 23 other business organizations in sending a letter to Treasury Secretary Lew outlining the severe impact of recent debt-equity rules proposed by Treasury on global and domestic businesses of all sizes throughout the U.S. economy.

The far-reaching and unexpected proposal released by Treasury April 4 gives the government broad authority to recast related party debt as equity, imposing new taxes on businesses and threatening legitimate and well-established business practices, from corporate reorganizations to day-to-day cash management. While the proposal was released as part of a package of guidance designed to curb cross-border mergers, these extremely broad regulations have nothing to do with this activity and will have a significant negative impact on a wide range of global and domestic manufacturers in the United States. Read More

NAM Applauds Sen. Portman’s Leadership on IRS Overreach

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Manufacturers applaud Sen. Rob Portman’s (R-OH) leadership in introducing legislation to roll back recent aggressive IRS audit practices. The bill, S. 2809, would prevent the IRS from denying cooperative taxpayers access to the IRS Appeals Office in order to seek an independent review of the examination. In addition, the bill would limit the use of designated summonses to cases where a taxpayer is not cooperating with the IRS. The bill also would prevent the IRS from unilaterally extending the statute of limitations on an audit. Finally, manufacturers are pleased that the legislation would prevent the IRS from hiring outside law firms to assist in an audit and investigation of a corporate taxpayer. This practice has already been questioned by at least one court. Beyond the concerns about potential conflicts of interest that this practice raises, the fact that the IRS would outsource this inherently governmental function and expose confidential tax information to an outside entity is a real concern to manufacturers. The NAM urges Congress to take up this bill and put an end to these abuses once and for all.