High Taxes Stifle Our Recovery
Randy Wolken, President & CEO
Our economic recovery continues. Now is the time to aid all industries in growing and building back. As a global industry, manufacturing is particularly affected by taxes that make US manufacturers less competitive. Congress is actively considering a nearly $2 trillion budget reconciliation legislation that includes a tax on so-called “book income.”
We agree with Chris Netram, the National Association of Manufacturers Vice President of Tax and Domestic Economic Policy, when he states: “Manufacturers continue to stand in firm opposition against targeting our industry with new taxes to pay for the reconciliation bill. The ‘book tax’ will hit manufacturers harder than other sectors because expanding our operations requires much larger investments in capital equipment than other industries. This new tax doesn’t account for incentives for machinery and equipment purchases and will stifle investment in our communities and factories. If Congress adopts this policy, the result will be fewer opportunities in towns and cities across the country. Regardless of intent, these taxes will harm our industry’s ability to drive our economic recovery.”
The tax reforms of 2017 assisted manufacturers in achieving the best year for manufacturing job creation in more than two decades—and wages, benefits, and investments surged. Rather than rolling that back or targeting manufacturers with new taxes, Congress must keep our tax code competitive. When US manufacturers have a competitive opportunity, they can grow and produce more family-supporting, high-tech jobs. This is needed more than ever as we build back our communities and our local economies. Please take the time to reach out to your congressional representatives to ask them to oppose the “book income” tax and other taxes that harm our ability to grow. For assistance with this, please contact MACNY’s Director of Government Relations & Communications, Tiffany Latino-Gerlock, at [email protected].
Here in New York, we continue to advocate for manufacturing tax parity. In 2014, New York became one of the best tax environments for C Corporation manufacturing. It spurred expansion and made our state more attractive to new businesses. Unfortunately, C Corporation manufacturers make up only 25% of our state’s manufacturing jobs. The rest of the manufactures still pay one of the highest tax rates in the country. It’s time to give all manufacturers this same opportunity to grow here in New York State. MACNY’s Tax Parity for all Manufacturers’ legislation, introduced in the State Assembly and Senate in prior legislative sessions, is the best way to help manufacturing grow and prosper in our communities. Please join our advocacy effort by sending a letter to Governor Hochul supporting this vital legislation. To learn more about our ongoing efforts, and to participate in the sign-on letter campaign, please contact Tiffany Latino-Gerlock at [email protected].
We have so much opportunity to make our state and nation stronger than ever. To do so, we need to recapture growth in manufacturing and technology. We have learned how vital our national and economic security is to make our medicines, semiconductor chips, and other critical products. Join me in telling your friends, neighbors, and elected officials at all levels that policies that support manufacturers are more critical than ever. As individuals in this sector, you have first-hand knowledge of the vitality of this sector and its importance.