Washington, DC – The National Tooling and Machining Association and Precision Metalforming Association today strongly endorsed House Ways and Means Committee Chairman Dave Camp’s efforts to overhaul the tax code. Prolonged uncertainty over the federal tax code is one of the central challenges currently facing manufacturers in the United States.
The proposal released today by Chairman Camp, which includes a 25% tax rate and the permanent extension of the R&D Tax Credit, marks a major development in an effort by Congress to update outdated provisions, add clarity and create a more stable framework to the U.S. tax code over the long term.
“An overhaul of our tax code is long overdue and Chairman Camp deserves a lot of credit for having the leadership and courage to take on this important issue,” said PMA President Bill Gaskin. “This is more than just about lowering rates – it is about simplifying the code, making it globally competitive, and creating certainty around provisions that are important for small businesses seeking to invest in the future of their companies.”
A recent member survey conducted by the NTMA and PMA showed that 74% of member companies currently have job openings and are looking to expand their businesses, yet many are holding back on investing in new equipment due to the uncertainty surrounding expired tax provisions. The same survey showed that 65% of members are structured as pass-throughs under the federal tax code, paying taxes at much higher individual rates.
“Small and medium sized manufacturers are the foundation of our economy but have long been burdened by a tax code that provides a disincentive to manufacture in America, inhibiting both job creation and business growth,” said NTMA President Dave Tilstone. “This proposal sends a strong message that we need tax reform for all manufacturers and not just C-Corporations as proposed by some in Washington.”
“How can a small manufacturer plan for the coming year when, for example, they do not know whether Congress will extend the Research and Development Tax Credit?” continued Tilstone. “You can’t expect a small business to invest half a million dollars in equipment if they don’t know whether they will be able to expense it the following year because lawmakers allowed a tax provision to lapse. We need a globally competitive and stable tax code that allows businesses to plan well into the future.”
About One Voice: The National Tooling and Machining Association’s (NTMA) and the Precision Metalforming Association’s (PMA) combined “One Voice” federal government advocacy program represents nearly 3,000 metalworking companies and is designed to promote U.S. government policies that will ensure a strong manufacturing sector in the United States. For additional information, please visit www.metalformingadvocate.org.