On Sunday the Chillicothe Gazette in Ohio ran an op-ed (“Manufacturing changes my family — and world — for the better“)  from National Association of Manufacturers President and CEO Jay Timmons about what manufacturing has meant to his family and what the future holds for manufacturing in the United States. 

Here is a brief excerpt from the op-ed:

During the Great Depression, my grandfather waited in line for six months for a job at the Mead paper mill. For proud Americans of my grandfather’s generation, a manufacturing job represented a promise of security, a better quality of life and a path to the middle class.

As the years passed, the growth of once-vibrant manufacturing cities slowed, in part because of the changing global economy and emerging competitors abroad. And although manufacturing means jobs — exceptionally good-paying jobs — policy-makers in our nation’s capital, Republican and Democrats alike, failed to respond.

So, as a result of Washington’s neglect and misguided policy choices, it is now 18 percent more expensive to manufacture a product in the United States than in any other country. That figure doesn’t include the cost of labor.

Now more than ever manufacturers need pro-growth policies from Washington that will enable them to create jobs and compete globally. This is why the NAM will contiue to advocate for the policies outlined in the Manufacturing Strategy for Jobs and a Competitive America to boost the competitiveness of manufacturers in the U.S.

The House on Tuesday passed H.R. 1586, which supporters called the Education Jobs and Medicaid Assistance Act, by a vote of 247-161. The text of the bill is available in The Congressional Record starting at page H6604.

The National Association of Manufacturers did not take a position on additional federal spending for the states in the bill, but in a “Key Vote” letter objected to the tax increases the legislation imposes on U.S. corporations with foreign earnings.

Rep. Bob Goodlatte (R-VA) and Rep. Dave Camp (R-MI) cited the NAM’s letter in their floor remarks, and we thank them. Goodlatte’s remarks start at page H6611, and Rep. Camp’s begin on age H6615. Rep. Camp is Ranking Member of the tax-writing House Ways & Means Committee, and his comments noted not just the NAM’s arguments, but also the larger competitive point that U.S. corporate tax rates will soon be the highest in the world. In addition, Congress is raising taxes on manufacturers in the U.S. on an ad hoc basis, never holding a committee hearing to discuss in public the broader context. Camp:

These tax increases are a mistake, and, as I noted during the debate 2 weeks ago, most of these have never been the subject of any committee hearing or markup. It is possible that, upon review, some of these provisions might make sense if packaged with other changes to address the fact that our corporate tax rate is soon to be the highest among all industrialized nations. Our international tax system is deeply flawed, and our tax code is increasingly putting our companies and their employees at a tremendous competitive disadvantage.

Unfortunately, the canard about greedy corporations using “tax loopholes to ship American jobs overseas” has become a standard talking point in Congress and political campaigns. Committee hearings to examine the U.S. tax structure and competitiveness might help dispell the myths and encourage substantive debate.

Until those hearings are scheduled, we refer readers to page 5 of the NAM’s “Manufacturing Strategy for Jobs and a Competitive America,” for a broad overview of how tax policy affects U.S. competitiveness and a summary of the NAM’s recommendations.

And we append Rep. Camp’s remarks, which were a substantive, measured critique of H.R. 1586 and Congressional action on tax policy.

Mr. CAMP. Madam Speaker, last Friday we learned the unemployment rate is still at 9 1/2 percent, and it would be much higher if the official calculations also looked at the fast-growing number of Americans who have become so discouraged that they have given up looking for work. So while Congress should be here trying to find ways to get

Americans back to work, we’re here instead to complete action on another extension of stimulus that will also do nothing to reduce the unemployment rate in this country. In fact, this bill and the tax increases in it will hurt job creation. (continue reading…)

The National Association of Manufacturers today published an open letter to Congress in The Hill. Here is the text:

A Manufacturing Strategy for Jobs and a Competitive America

An open letter to Congress

Speaker of the House Nancy Pelosi has declared that the U.S. House of Representatives will dedicate itself to a manufacturing plan, and the National Association of Manufacturers (NAM) welcomes the focus on this critical sector of the U.S. economy. We urge House members to use this opportunity for a substantive discussion of what it takes for manufacturers in the United States to succeed in the global marketplace. The NAM believes such deliberations will lead to one inevitable conclusion: The United States must develop and enact a comprehensive manufacturing strategy.

The hard truth is that manufacturers in the United States are too often at a disadvantage. Governments of other countries craft consistent policies to support their industries, and their officials stand by manufacturers as they compete around the world. In America, regulations, taxes and government mandates pile up one after another, making the country a less attractive place to do business.

In Europe, Asia and South America, policymakers think strategically about manufacturing. It is time the United States does the same.

The NAM recently released a call to action that embraces this vision—a “Manufacturing Strategy for Jobs and a Competitive America.” The Strategy proposes three goals:

• The United States will be the best country in the world to headquarter a company.
• The United States will be the best country in the world to innovate, performing the bulk of a company’s global research and development.
• The United States will be a great place to manufacture, both to meet the needs of the American market and serve as an export platform for the world. (continue reading…)