Manufacturers: Tax Increases Would Poison Economic Growth09/19/11 - National Association of Manufacturers (NAM) President and CEO Jay Timmons released a statement following President Obama’s announcement that he’ll pursue a plan to increase taxes:
“President Obama’s call for tax increases on small businesses, individuals and investors is a poison pill for our economy. The bottom line is that manufacturers need policies that enable them to hire more workers, make capital investments and expand their businesses. More than 70 percent of manufacturers operate as S-corporations and pay income tax at the individual rate, so higher taxes on these job creators would be a devastating blow. The President’s proposal is short-sighted; we should not attempt to solve our nation’s fiscal ills on the backs of businesses striving to expand and add jobs.
Manufacturers remain concerned about our nation’s economic future and are encouraged by policymakers’ willingness to make tough choices on our federal deficit. Rather than raising taxes and punishing job creators we believe federal revenue gained from economic growth and good tax policy will help decrease future projected federal deficits. As policymakers review all factors contributing to the deficit, entitlement programs should be a part of the discussion.
That said, we welcome a debate on taxes because U.S. manufacturers face higher corporate tax burdens than our competitors in other countries. Lowering the corporate tax rate would eliminate some of the uncertainty job creators currently face, offering a more predictable and consistent tax code needed for long-term planning and investments. A rate of 25 percent or lower would provide manufacturers with more resources to expand operations and create jobs.
Manufacturers support a solution that will address our nation’s fiscal concerns and also create an environment that encourages U.S. manufacturing and broad economic growth and creation of jobs in America.”