ThomasNet News Logo
Sign Up | Log In | ThomasNet Home | Promote Your Business

NAM raises concerns about proposed business tax.

Print | 
Email |  Comment   Share  
April 13, 2007 - To avoid making it more difficult for manufacturers to compete in global marketplace, National Association of Manufacturers urged House Tax-writers to avoid imposing new taxes. Objections were also raised to proposed limits on non-qualified deferred compensation plans, which are used by manufacturers to align worker and management interests. Keeping securities laws and tax code linked facilitates administration of salary deduction allowances and compensation disclosures.

NAM Raises Concerns About Proposed Business Tax

(Archive News Story - Products mentioned in this Archive News Story may or may not be available from the manufacturer.)

National Association Of Manufacturers (NAM)
1331-T Pennsylvania Ave. N.W.
Washington, DC, 20004

Press release date: March 14, 2007

Provisions are a Solution in Search of a Problem

WASHINGTON, D.C., March 14, 2007 - In testimony today before the House Ways and Means Committee, a representative of the National Association of Manufacturers urged House tax-writers to avoid imposing new taxes on manufacturers, making it more difficult for them to compete in the global marketplace.

At the hearing-which focused on revenue-raisers in the Senate-passed minimum wage bill-Ken Petrini, vice president of taxes at Air Products and Chemicals, Inc and chairman of the NAM's Tax and Budget Policy Committee warned of the potential impact of "overly broad" provisions "that threaten to ensnare transactions and expenses well beyond their intended scope."

Noting that manufacturers currently face some of the highest legal costs in the world, Petrini told the Committee that "proposals to eliminate tax deductions for punitive damages and settlements of potential violations of law will only increase the cost of doing business in the United States. American consumers and businesses would lose if the provisions on punitive damages and settlements are adopted."

Petrini also raised objections to new proposed limits on nonqualified deferred compensation plans, which are used by manufacturers to align worker and management interests. "The proposal, which is not targeted at any abuse of deferred compensation, is a solution in search of a problem that would effectively eliminate the ability of employees to use deferred compensation as a retention tool," he said.

Turning to another Senate proposal that would de-link securities law from the tax code with regard to the deduction and disclosure of executive compensation, Petrini noted that "this change would create unintended ambiguities in the law because of the different definitions used by the SEC and IRS. Keeping the securities laws and the tax code linked will allow for easier administration of salary deduction allowances and compensation disclosures.

"NAM members strongly believe that tax relief will go a long way to ensure continued economic growth," Petrini said. "In contrast, revenue raisers, like the ones discussed today, will negate much of the positive impact of tax relief."

The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM's award-winning web site at for more information about manufacturing and the economy.

CONTACTS: J.P. FIELDER (202) 637-3089; DOROTHY COLEMAN (202) 637-3077

Print | 
Email |  Comment   Share  
Contacts: View detailed contact information.


Post a comment about this story

(your e-mail address will not be posted)
Comment title:
To submit comment, enter the security code shown below and press 'Post Comment'.

 See related product stories
More .....
 See more product news in:
| Featured Manufacturing Jobs
 Other News from this company:
NACD and Associquim Sign Memorandum of Understanding
Good News on ACA Implementation - Kind of
Participate in Manufacturing Day - Mark Your Calendars for October 4!
Business Group Praises Bipartisan Introduction of Bill Preventing Costly and Unnecessary Regulation of Main Street Risk Management
Manufacturers Win in Fight Against NLRB Overreach
More ....
 Tools for you
Watch Company 
View Company Profile
Company web site
More news from this company
E-mail this story to a friend
Save Story
Search for suppliers of
Trade Associations

Home  |  My ThomasNet News®  |  Industry Market Trends®  |  Submit Release  |  Advertise  |  Contact News  |  About Us
Brought to you by        Browse ThomasNet Directory

Copyright © 2014 Thomas Publishing Company. All Rights Reserved.
Terms of Use - Privacy Policy

Error close

Please enter a valid email address