Alliance for American Manufacturing (AAM) Offers Tax Reforms Proposals to Congressional Leadership.
Alliance for American Manufacturing (AAM) President Scott Paul has sent a letter to the leadership of both the Senate Finance Committee and the House Ways and Means Committee to offer some suggested fixes to the nation's corporate tax code.
As a labor-management partnership, AAM is uniquely positioned to offer constructive proposals that can help both the nation's manufacturers and their workers.
In his letter to Sens. Max Baucus (D-MT) and Orrin Hatch (R-UT), and Reps. Dave Camp (R-MI) and Sandy Levin (D-MI), Paul suggested that AAM can offer "forward-looking public policy proposals designed to overcome the hurdles that, all-too-often, limit action in Washington."
In a list of what to do, and what not to do, Paul focused on specific provisions in the current tax code that "bear special scrutiny in light of the benefits that they currently provide to manufacturers – the withdrawal of which could have profound negative effects on U.S. competitiveness."
Paul cited certain provisions in the tax code provide benefits that promote the development of new technologies and products, including: Section 199 Domestic Production Deduction; Accelerated Cost Recovery; Depletion Allowances; Net Operating Losses; Last-In, First-Out Accounting; Interest Cost Deductibility; Research & Development Tax Credit; Current Tax Treatment of Employee Health Care and Pension Contributions; Credit for Prior Year Minimum Tax.
Paul explained his concern:
As studies have shown, capital intensive industries and those that have invested vast sums in creating productive capacity and jobs here in the U.S. would find their actual tax payments substantially higher with this single-minded approach to eliminate tax expenditures in order to reduce the corporate tax rate. In a deficit-neutral approach, the result of this effort would increase the taxes paid by producers here in the U.S. while lowering the tax burden on many other entities which do not make the same kind of long-term comprehensive and costly investments in the U.S.
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