NAM Official comments on proposed tax relief compromise.
Press Release Summary:
Agreement between President Obama and Congressional Republicans on tax relief includes provisions such as tax relief for small businesses, 100% expensing, estate tax reform, preferential tax rates for investment income, and R&D tax credit. In response, NAM's John Engler said R&D credit and other business extenders are key to manufacturers' competitiveness and ability to create jobs. Engler also said 100% expensing provision will encourage investment and create demand for machinery and equipment.
Original Press Release:
Proposed Compromise on Tax Relief Is a Positive Step for Jobs and Economy
Framework Includes Many Key Provisions Important To Manufacturers Ability to Create Jobs and Compete
WASHINGTON, D.C. - The National Association of Manufacturers (NAM) President and CEO John Engler issued a statement today on the agreement reached between President Obama and congressional Republicans on tax relief:
"Manufacturers commend the President and congressional leaders for the economic agreement announced yesterday. It includes many important provisions for manufacturers, including tax relief for small businesses, 100-percent expensing, estate tax reform, preferential tax rates for investment income, the R&D tax credit and other business extenders.
With an unemployment rate hovering around 10 percent, now is not the time to raise taxes on small businesses who are the job creators. Businesses need certainty to invest, create jobs and compete in the global economy. The NAM has long supported efforts to repeal or significantly reform the estate tax, and manufacturers support the 35-percent rate and the $5-million exemption. The lower tax rates on capital gains and dividends will boost capital investment and economic growth. Similarly, the R&D credit and other business extenders are key to manufacturers' competitiveness and ability to create jobs. In addition, the 100-percent expensing provision will create a positive ripple effect in the economy by encouraging investment and creating demand for machinery and equipment. And, while we support the two-year extension of these important provisions, manufacturers do not agree with those who argue that tax relief for small businesses should be temporary. We believe this tax relief should be made permanent to encourage investment and long-term growth.
Manufacturers will continue to work with Congress and the Administration to advance legislation that will extend critical tax relief, stimulate our economy and create jobs as quickly as possible."
