Manufacturers Oppose Tax Increases on Business12/02/10 - The National Association of Manufacturers (NAM) Executive Vice President Jay Timmons issued the following statement today on the Middle Class Tax Relief Act of 2010 (HR 4853):
Manufacturers oppose the Middle Class Tax Relief Act of 2010 because it would result in a tax increase for many manufacturers. The tax relief enacted in 2001 and 2003 played a key role in stimulating our economy as it repealed the estate tax and lowered both the individual tax rates and tax rates on investment.
Unfortunately, the House bill being voted on today does not include this critical relief. As a result, in January 2011 many manufacturers will see a top tax rate of nearly 40 percent, a 164 percent increase in the dividend tax and the return of a 55 percent estate tax on family-held companies.
Over 70 percent of American manufacturers file as S-corporations or some other pass thru-entity and will be significantly impacted by these higher rates. Americans want jobs, and this bill will only hinder job creation and economic growth.
Manufacturers strongly support extending the 2001 and 2003 tax rates for all taxpayers. According to the non-partisan Congressional Budget Office, fully extending the 2001 and 2003 tax cuts would add between 600,000 and 1.4 million jobs in 2011 and between 900,000 and 2.7 million jobs in 2012.
We will continue to work with Congress and the Administration to find a path forward on extending all the current tax rates.