Manufacturers continue to face regulatory requirements that are costly and burdensome. SEC rulemaking stemming from the Dodd-Frank Act is a prime example. The pay ratio and conflict minerals requirements are just a couple of the onerous elements facing manufacturers in recent years. Read More
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
This morning, NAM President and CEO Jay Timmons provided a read on U.S. manufacturing on CNBC’s “Squawk Box” and discussed what manufacturers need to hear from presidential candidates.
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.”
A State of Manufacturing Tour guest blog post by Jim Roche, president of the Business & Industry Association, New Hampshire’s statewide Chamber of Commerce
Today, the National Association of Manufacturers (NAM) kicked off its 2016 State of Manufacturing Tour in New Hampshire—and with good reason! New Hampshire is a hotbed of innovative manufacturing and home to the first-in-the-nation presidential primary less than two weeks from now.
Here at the Business & Industry Association (BIA) of New Hampshire, the NAM’s official affiliate in the Granite State, we fight every day for policies that support our manufacturers—our state’s most important job creators. We push state legislators, the governor, our congressional delegation and regulators for public policy and commonsense solutions that are friendly to job creators and promote prosperity for New Hampshire businesses.
At today’s stop, the NAM laid out several key public policies that will help put manufacturing in America on solid ground, including important ideas like fixing our outdated tax code and upgrading old infrastructure to take us toward a more modern economy.
Today’s tour also highlighted the many ways manufacturers are changing our lives for the better. Manufacturing has grown well beyond the outdated images of mill and textile work, particularly in New England. Today, manufacturing leads in electronics, fabricated metals, machinery and technology. And manufacturing is connecting people across continents. The sector offers outstanding jobs and careers for nearly 68,000 New Hampshire workers. New Hampshire’s manufacturers export almost $4 billion of goods around the world every year, bringing new wealth and economic activity into our state’s economy.
As we move deeper into this important election season, manufacturing voters are asking candidates hard questions about how they will help America compete to win in a global economy. No matter the outcome of the election, we need policies that support today’s diverse and dynamic manufacturers. When manufacturing succeeds, we’re all better off.
On Saturday, a letter to the editor from National Association of Manufacturers (NAM) Vice President of Government Relations Joe Trauger ran in The Washington Post highlighting manufacturers’ concerns with the employee benefits tax, commonly called the “Cadillac tax.” This 40 percent tax on employee benefits is a major issue for manufacturers as rising health care costs remain a top concern.
“The recent ‘Cadillac tax’ editorial missed the mark regarding the so-called virtues of the Affordable Care Act’s tax on employee benefits. To suggest that doing away with on-site clinics, flexible spending accounts and other benefits is good policy and will reduce health-care spending is misguided. Manufacturers have identified health-care expenditures as one of their top business challenges. The ACA has done nothing to mitigate those concerns. Most manufacturers will tell you that coverage is more expensive as a result of the law.”
Last week, the NAM released a new study looking at this costly tax. NAM’s SVP of Communications Erin Streeter and SVP of Policy and Government Affairs Aric Newhouse discussed the impacts of the tax in our ShopTalk video series and the action congress is debating to provide relief. As soon as this week, Congress could once again be voting on a delay of this costly tax.
Senate Finance Committee Chairman Orrin Hatch (R-UT) this afternoon sent a strongly worded letter to IRS Commission John Koskinen asking him to “immediately halt” the practice of using private attorneys to carry out taxpayer examinations including taking sworn testimony from taxpayers. In May of 2014, the IRS retained the global litigation firm of Quinn Emanuel on a $2.2 million contract to assist in the income tax audit and investigation of a corporate taxpayer, including the conduct of sworn interviews. Shortly after retaining the firm, Treasury and IRS issued a temporary regulation allowing third party contractors to take compulsory, sworn testimony in connection with an IRS investigation. According to the IRS, the temporary regulation—issued without a notice and comment period—represented a “clarification” of existing law.
The Finance Committee Chairman doesn’t agree with the IRS’ assessment, noting that the temporary regulation represents “an unprecedented expansion of the role of outside contractors in the examination process.” Moreover, according to Senator Hatch, the IRS’ hiring of a private law firm to conduct a taxpayer exam: appears to violate federal law and the express will of Congress; removes taxpayer protections by allowing the performance of inherently governmental functions by private contractors; and calls into question the IRS’s use of its limited resources.
As the NAM’s Chief Economist, Chad Moutray, pointed out in his blog “The U.S. Economy Stagnated in the First Quarter” on yesterday’s dismal GDP numbers, there are “a number of headwinds in the economy which have negatively impacted manufacturing activity. These challenges include weaknesses abroad, a strong U.S. dollar, lower crude oil prices, a West Coast ports slowdown, bad weather in some regions of the country and a still-cautious consumer.” As Dr. Moutray pointed out, a significant “challenge for manufacturers was the fact that consumer spending on goods was up only 0.2 percent. Businesses also spent dramatically less on nonresidential structures, with equipment spending slowing to a crawl.” Read More
While death and taxes are two facts of modern life, death by taxes may soon be less of a worry for small and medium-sized family-owned manufacturers. During last week’s budget “Vote-a-rama,” where hundreds of amendments were offered and considered, Senator John Thune (R-SD) proposed S. AMDT. 607 to reintroduce his plan to repeal the “death tax.” This macabre term is given to the burdensome estate tax on an owner’s right to transfer property at his/her death. Read More
One of NAM’s goals is to make the United States the best place to manufacture and attract foreign direct investment. There are many things policy makers can do to help achieve this goal, including creating a favorable tax climate. On the flip side, there are a number of ways policy makers can make this goal even harder to achieve, for example by imposing costly, unnecessary, anti-competitive rules and regulations. A case in point is legislation—the Truth in Settlements Act—introduced by Sen. Elizabeth Warren (D-MA) and Rep. Matt Cartwright (D-PA) and several other bills that aim to change the tax treatment of fines and penalties. Read More