NAM Addresses Key Issues with Biden Tax Plan
Manufacturers Push Back on Harmful Tax Increases
The NAM is leading a campaign opposing the more
than $2 trillion in proposed tax increases
that are currently a part of the budget bill. By comparison, 2017 tax reform
reduced taxes by a net amount of approximately $1.4 trillion.
The impact on SMMs: Here are some of the provisions that could be
included in a final bill:
- The corporate tax rate
increases from 21% to 26.5% ($540 billion tax increase).
- Top individual income tax rate
increases from 37% to 39.6% ($170 billion tax increase).
- The 20% pass-through deduction
is essentially eliminated ($78 billion tax increase).
- A 3.8% Medicare surtax is
applied to business income greater than $400,000 (single)/$500,000
(married) ($252 billion tax increase).
- New 3% surtax on individuals
(including pass-throughs) with incomes greater than $5 million ($127
billion tax increase).
- Top capital gains tax rate
increases from 20% to 25% (but total top rate of 31.8% with surtaxes on
higher income taxpayers) ($123 billion tax increase).
- Estate tax exemption is reduced
from roughly $23 million for married couples down to $10 million ($54 billion
tax increase).
- New limits placed on Grantor
Trusts ($8 billion tax increase).
What the NAM is saying: “There’s no getting past the fact that this tax
plan adds up to fewer jobs for American workers,” said NAM Senior
Vice President of Policy and Government Relations Aric Newhouse in a statement.
“We know from experience that competitive tax rates spur job creation, higher
wages and investment in communities. That’s exactly what we saw after the 2017
Tax Cuts and Jobs Act as manufacturers kept their promises. 2018 was the best
year for manufacturing job creation in more than two decades. We also know from
rigorous economic analysis that reverting to archaic tax policies has the
opposite effect. A study of proposed
tax increases—including a 25% corporate rate—found that America would lose 1
million jobs in just the first two years.” Newhouse appeared on Fox
Business earlier this week to push back against these proposed increases.
What the NAM is doing: The NAM is sparing no effort to make sure we
defeat proposed tax hikes on manufacturers—but we need your help.
Already, the NAM team has a campaign underway in key lawmakers’ states and
districts highlighting how tax hikes put manufacturing jobs at risk.
How to get involved: Manufacturing leaders can get involved in a couple
of key ways:
- Register for
a special briefing on the NAM’s campaign against tax increases on
manufacturers on Wednesday, Sept. 22, at 1:30 p.m. EDT. The meeting will
include a legislative update and the opportunities to take action to
oppose tax hikes. The NAM will also share tools and resources to support
your advocacy.
- Join
hundreds of other small manufacturers and local, state and national
organizations in sending a powerful joint message to Congress in
opposition to tax hikes. You can also join other SMMs in sharing your
tax reform story, through Manufacturers United, on how manufacturers have
kept their promises to create jobs, increase wages and invest in their
facilities and communities.
Briefing for pass-throughs: The NAM’s Pass-Through Working Group will also be meeting on Sept. 22 at 4:00 p.m. EDT on the state of play on tax increase proposals affecting pass-throughs. The meeting will feature a briefing from an EY tax expert on Senate Finance Committee Chairman Ron Wyden’s (D-OR) 39-page draft bill that would make important changes to partnership tax rules (Subchapter K), specifically relating to partnership distributions, allocations and gain recognition rules. You can find a one-page summary of the draft bill here and click here for a section-by-section summary. These changes, which are the most significant ones in more than 30 years, are estimated to raise $172 billion over 10 years and are intended to help pay for the reconciliation bill. Click here to register.
NAM Urges Policymakers Not
to Raise Energy and Supply Chain Costs |
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