State of the Union's Focus on Manufacturing

'No American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas ... every multinational should have to pay a basic minimum tax.'

By SCOTT PAUL, Executive Director, Alliance for American Manufacturing (AAM)

SCOTT PAULComments on the State of the Union:

SCOTT PAUL/AAM: "Strengthening American manufacturing and growing manufacturing jobs will lay a solid foundation for a new middle class and economic security for the next generation. We commend President Obama for focusing on manufacturing in a way no president has for 25 years or more."

The President said: "Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs." 

SCOTT PAUL/AAM: "A speech alone won't change policy, but it can lay the groundwork. We look forward to working with the White House as it cracks down on China's cheating, which is stealing jobs and jeopardizing our economic future."

The President said: "Tonight, I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trade practices in countries like China." 

SCOTT PAUL/AAM: "Congress can and should pass key legislation right away, starting with a major investment in infrastructure and a bipartisan bill to stop China's currency manipulation. Congress should also work to pass a package of pro-American manufacturing tax incentives for innovation, insourcing, training, and domestic capital investments."

The President said: "We should start with our tax code. Right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it. So let’s change it. First, if you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it. That money should be used to cover moving expenses for companies like Master Lock that decide to bring jobs home.

“Second, no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here."

SCOTT PAUL/AAM: "Both parties should recognize the economic importance of manufacturing, as well its political appeal to voters of all stripes. Voters rightly understand why manufacturing must be central to a real recovery, and know we can't afford to cede global leadership to China."

Manufacturing in America: A hot topic during the State of the Union, here’s what you need to know.

Read our recent letter to President Obama ahead of the State of the Union.

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