Manufacturers urge tax reform.
Press Release Summary:
NAM President and CEO Jay Timmons issued statement in response to President Obama's tax policy announcement. On April 1, if U.S. maintains current course, it will become home to highest corporate tax rate in industrialized world, serving to undermine job creation and cede competitiveness to nations that are eager to offer lower tax rates. Manufacturers need action to reduce corporate rate, reform international tax rules, lower rates for small businesses, and enact pro-jobs changes to tax system.
Original Press Release:
Manufacturers: Current Tax System Will Make U.S. a Global Bystander
Investment and Growth Flow to the Best Business Environment
Washington, D.C., - National Association of Manufacturers (NAM) President and CEO Jay Timmons issued the following statement in response to President Obama's tax policy announcement:
"Manufacturers, who have long called for tax policies that make us more competitive and able to create jobs, appreciate President Obama's focus on tax reform today. It's not a moment too soon. On April 1, if the U.S. maintains its current course, we will become the home to the highest corporate tax rate in the industrialized world. This designation serves to undermine job creation and cede competitiveness to nations that are all too eager to offer lower tax rates and take away our position as a global economic leader.
It's a simple rule of economics - investment and growth will flow to the best business environment. Imposing a complex tax system with high, uncompetitive tax rates on the backs of manufacturers in the U.S. will greatly slow economic growth and will bring nascent job growth screeching to a halt.
Manufacturers have repeatedly told Washington they need a simplified, pro-growth tax system in order to flourish. The President suggests some changes that will help, but many of the proposals completely miss the mark and would make U.S. businesses less competitive. In addition, the two-thirds of manufacturers who file as individuals will receive no relief from the current burdensome tax system. There is a long way to go to address the 20 percent cost disadvantage that manufacturers face every day.
Manufacturers will closely review this new proposal from the White House because this is a critical time for the nearly 12 million men and women who make up the manufacturing workforce. We need action to reduce our corporate rate, reform our international tax rules, lower rates for small businesses and enact pro-growth, pro-jobs changes to our tax system. Otherwise, we will resign ourselves to the role of bystander in the global economy."
The National Association of Manufacturers is the largest manufacturing association in the United States, representing manufacturers in every industrial sector and in all 50 states. Manufacturing has a presence in every single congressional district providing good, high-paying jobs. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
