National Association of Manufacturers (NAM) President and CEO Jay Timmons released this statement on President Obama’s proposed budget for fiscal year 2016:
“If the President is serious about helping manufacturers sustain their resurgence in the United States, this outrageous budget proposal is a bad place to start. The Administration’s overall ‘tax-and-spend approach’ would make U.S. businesses less competitive, further complicating our tax code and stifling our economy while compounding our nation’s long-term fiscal problems.
Coupling increased spending with punitive and, in many cases, retroactive tax increases on manufacturers—from large global companies, to the energy industry, to small, family-owned businesses—is exactly the wrong way to go.
Manufacturers are strong advocates of comprehensive tax reform that simplifies the tax code, makes us more competitive and promotes economic growth and job creation. In fact, an NAM study released in January finds that over a 10-year period, a pro-growth tax reform plan would increase GDP by more than $12.0 trillion relative to Congressional Budget Office projections, increase investment by more than $3.3 trillion and add more than 6.5 million jobs to the U.S. economy.
While the President does acknowledge that lower corporate tax rates and a permanent research and development (R&D) incentive should be part of overall tax reform, his plan falls far short in improving our current system.
In particular, the NAM strongly opposes the Administration’s proposed changes in the international tax arena, which include a minimum 19 percent tax on all international income and a mandatory repatriation of overseas income.”
Over the next three weeks, the NAM will be promoting its pro-growth manufacturing agenda during the 2015 State of Manufacturing Tour. To follow the tour, click here.