Taxes
Message to Congress - Develop policy that incentivizes companies to manufacture in America and not increase taxes on small business owners.
Tax Reform Should Not Decrease the Global Competitiveness of Manufacturing in America
U.S. businesses, particularly small and medium sized, face significant tax burdens that place them at a competitive disadvantage globally. Small businesses provide roughly 75% of net new jobs, represent more than 99% of all employers and generate more than 50% of America’s private sector output. Despite the vital role they play in the U.S. economy, small businesses face a heavy tax burden.
An increase in the income tax rates is not a tax increase on the “rich” but an increase on small businesses, many of whom are family-owned companies passed down through several generations. By increasing taxes on these small business owners, the companies will have fewer funds available to reinvest into their operations, will lack the resources to hire new workers, and will reduce their global competitiveness.
Congress should update the tax code to reward businesses for manufacturing in America, while correcting sections of federal revenue law that discourage expanding U.S. operations. Washington should act now to reduce the corporate tax rate to make businesses more globally competitive.
To stimulate manufacturing in America, Congress should:
- Reduce the corporate tax rate to globally equitable levels.
- Recognize that 70% of manufacturers are Subchapter S, LLPs, LLCs and other partnerships, therefore, increasing the upper individual tax bracket rates is really a tax increase on small manufacturers.
- Simplify, expand, and make the R&D Tax Credit permanent.
- Repeal or reduce the estate tax, or at the very least exempt estates up to $5m/individual, $10m/couple and tax anything above at a 35% rate.
- Renew bonus depreciation through at least 2010.