AMT urges Congress to ease tax burdens on U.S. manufacturing.

Press Release Summary:



AMT President Bob Simpson noted that Congress and Administration lowered tax burdens on businesses earlier this year by including 2 provisions in first economic stimulus package intended to spur capital investment: 50% bonus depreciation for new equipment purchases and greater expensing under Section 179 for smaller businesses. Given continuing deterioration of economy, Simpson stated that these provisions need to be extended for at least another year, if not permanently.



Original Press Release:



Technology Producers to Congress: Reduce Business Taxes, Extend Bonus Depreciation to Give Relief to Economy



AMT - The Association For Manufacturing Technology is urging Congress to ease tax burdens on American manufacturing in its effort to strengthen the American economy - including extending the temporary expensing provisions that Congress offered businesses that expire at the end of the year.

AMT President Bob Simpson noted that Congress and the Administration lowered tax burdens on businesses earlier this year by including two provisions in the first economic stimulus package intended to spur capital investment: 50 percent bonus depreciation for new equipment purchases and greater expensing under Section 179 for smaller businesses.

"These provisions have helped many of our businesses buy and sell equipment essential for their operations," Simpson said. "But they were only one-year offerings. Given the continuing deterioration of our economy, these provisions need to be extended for at least another year, if not permanently. In addition, the federal tax rates that all businesses pay - either as S Corporations subject to the individual tax rates or C Corporations subject to the far-too-high corporate tax rate - need to be lowered."

"The United States has the second highest federal corporate tax rate - at 35 percent - among industrialized countries," Simpson noted. "That hinders our ability to compete domestically against imports and abroad."

Simpson pointed to a new study by the Manufacturers Alliance/MAPI that indicates that U.S. manufacturers have been successful in recent years at containing internal costs, such as employee benefits, pollution abatement and natural gas prices, compared to their foreign competitors. But the high cost of the federal tax system has worsened and continues to plague American manufacturers.

"Manufacturing is the backbone of our economy," said Simpson. "We cannot put people back to work and get this economy going again if high taxes and other costs of doing business continue to sap manufacturers' ability to compete."

Noting, too, that his industry is dependent on both domestic and global business, Simpson warned that continued high tax burdens will only end up driving some American businesses abroad, where they can produce products at less cost, or worse, out of business altogether.

AMT - The Association For Manufacturing Technology represents more than 400 companies that produce machine tools and other technologies essential to manufacturing.

"If we are to move our economy toward a 'green' economy while trying to put more people back to work, we have to ensure that American manufacturers have the resources they need to do that," said Simpson. "And that won't be possible if those industries are saddled with one of the highest corporate tax rates in the world.

"Congress and the Administration have said they want to promote policies that help American workers secure loans and spend money," Simpson added. "But if people aren't employed, they don't spend. Historically, any tax relief to businesses is good for business and for the consumer, because it helps put people back on the payrolls and money back into their pockets to spend."

All Topics