Post: Jan. 24, 2019
E.J. Mc Mahon, founder and research director for the Empire Center describes Gov. Cuomo’s budget as “largely a stay-the-course affair—for better and worse.”
The official financial plan numbers call for a fiscal year 2020 State Operating Fund budget of slightly more than $102 billion—within the governor’s self-imposed 2 percent spending cap over the current year’s projected $100 billion.
Adjusting for various planned and proposed accounting changes, the apples-to-apples spending increase appears at first glance to be more like 3 percent (see explanation below). However, even with adjustments, it is more restrained than some members of the new Democratic legislative majorities would prefer.
The budget includes a striking new fiscal yellow flag: a sharp decline in personal income tax receipts, now expected to fall $500 million below mid-year projections. The budget narrative says the drop-off “appeared abruptly” at the end of December and has continued through early January, “a period that is typically marked by a relatively heavy flow of PIT receipts compared to the rest of the fiscal year.”
So what’s going on? The governor’s financial plan narrative cited “increasing [financial market] volatility in the second half of 2018 [during which major stock indexes dropped 10 percent], driven in part by rising interest rates, trade tensions, and instability in government institutions at home and abroad.” It also pointed to “behavioral changes by individual taxpayers and firms” in response to the new federal tax law and its cap on state and local tax (SALT) deductions.
Read more in the article by EJ McMahon, from The NY Torch, a public policy blog, (to read full article click here) McMahon was the keynote speaker at The Council of Industry’s Annual Luncheon and touched on some of the points discussed here in his address to our members.
Post: Jan. 17, 2019
January’s Empire State Manufacturing Survey results are showing slight growth, which is a promising start to 2019! Similar to last month though, growth is increasing at a much slower pace than previously.
Business activity grew slightly in New York State, according to firms responding to the January 2019 Empire State Manufacturing Survey. The headline general business conditions index fell eight points to 3.9, its lowest level in well over a year. New orders increased at a slower pace than in recent months, while shipments continued to climb significantly. Delivery times were slightly shorter, and inventories declined. Labor market indicators pointed to a modest increase in employment and hours worked. The prices paid index moved lower for a second consecutive month, indicating some slowing in input price increases, and the prices received index held steady.
We ended 2018 on a high note and responding manufacturers are still remaining fairly optimistic about the six-month outlook.
Read the full report for a more detailed look at the results.
Post: Dec. 21, 2018
For the last 20 years the National Association of Manufacturers (NAM) has conducted the Manufacturers’ Outlook Survey with the help of their over 14,000 large and small manufacturing members. The survey is conducted once a quarter to gain insight on manufacturers’ economic outlook, hiring and investment decisions, and business concerns. This year manufacturers reported record breaking optimism.
In the fourth quarter of 2018 there were 539 manufacturing companies who responded to the survey, which was conducted from November 28th to December 12th. The amount of responses from small, medium and large sized manufactures was nearly even, with a slight majority coming from medium sized companies.
The average percentage of respondents that were positive about their own company’s outlook was 92.4% in 2018, an all-time high. Manufacturers are also predicting positive growth rates in sales (4.3 percent), production (4.3 percent), capital investments (2.6 percent) and full-time employment (2.2 percent) over the next 12 months. Manufacturers are very optimistic about business conditions overall, which is likely influenced by their expectation of pro-growth policies like tax reform and regulatory certainty. You can view the full survey results here.
It was no surprise that the major concern of manufacturers was the inability to attract and retain a quality workforce. In the fourth quarter 68.2 percent of companies reported that this was their top concern. Other top concerns included the increasing cost of raw materials and trade uncertainties. According to government data there are now 522,000 open manufacturing jobs in America, which some manufacturers reported as the reason for turning down new business opportunities this year.
If this workforce crisis isn’t resolved the United States is on track to have as many as 2.4 million manufacturing jobs unfilled by 2028. This challenge will continue to have an impact on manufacturing companies in the years to come. For now we are optimistically looking forward to 2019 and all of the growth that is to come.
Read the full article here.
Post: Dec. 18, 2018
The Council of Industry and Marist College’s Bureau of Economic Research and School of Management along with Ethan Allen Workforce Solutions have compiled and analyzed the results from the 2018 Annual Wage and Benefits survey of Hudson Valley manufacturing companies. Twenty-five companies participated in the survey this year with a combined total of 2,869 reported employees.
Wage Trends
2018 wage increases among participating companies averaged 3.1% for the management group, 2.9% for the professional group, 3.2% for the administrative/clerical group, 2.7% for the technical group, 3.2% for the manufacturing/production group, and 3.4% for the sales group. These were in line with the pay increases observed nationally, which came in at 3.1%.
Planned increases for 2019 are 2.9% for the management group, 2.7% for the professional group, 2.8% for the administrative/clerical group, 2.7% for the technical group, 2.7% for the manufacturing/production group, and 2.8% for the sales group. Nationally, pay increases for 2019 are projected to be 3.2%.
Hiring Plans
72% of respondents indicated that they are looking to do new hiring in 2019, and the vast majority (96%) indicated that they are not looking to reduce their workforce in 2019. Most new hires made in 2018 were in the manufacturing and technical groups. Approximately 35% of respondents indicated that they had positions that went unfilled in 2018. Among the positions that were reportedly difficult to fill are: Machinist Positions, Assembler, Entry Level Production, Converting Operator, Machine Operator, CNC/Manual Machinist, Industrial Maintenance Mechanic, and Sales/Product Development.
“Hiring – especially for skilled workers is an ongoing challenge for our members and these survey results confirm that fact,” said Johnnieanne Hansen, Director of Workforce Development for the Council of Industry. “We are hopeful that several initiatives we have undertaken in the past year, including our Collaborative Recruiting Program (www.HVMfgJobs.com) and our Apprentice Program will have a positive impact in 2019. We’re working to help our members find and train the workers they need.”
Hudson Valley Manufacturers are working with the Council of Industry on several initiatives to address the challenge of finding quality candidates to fill open positions. 52% of respondents reported that they utilize the Council of Industry’s Collaborative Recruiting Effort. 48% of respondents do not. This initiative was put in place to help our members who are struggling to fill the previously mentioned positions.
Health Coverage
All participating companies reported providing health care coverage for their employees, and that employee health care premiums are paid on a pre-tax basis. 21 respondents provide Dental Coverage, 20 provide a Vision/Optical Plan, and 21 provide an HSA or HRA.
Council of Industry President Harold King says, “The survey results confirm that manufacturing jobs in the region continue to provide good wages and benefits. We also see some upward pressure on wages most likely resulting from a tight labor market.”
The Council of Industry has been the manufacturer’s association of the Hudson Valley since 1910. Our membership includes manufacturers and businesses related to the manufacturing industry throughout Southeastern New York. We are a privately funded not-for-profit organization, whose mission is to promote the success of our member firms and their employees, and through them contribute to the success of the Hudson Valley Community. We provide access to training, networking opportunities, advocacy and discounts of products and services for our members.
This is the tenth wage and salary survey since a resumption of the collaboration between the Council of Industry of Southeastern New York and Marist College’s Bureau of Economic Research (BER) and the School of Management, and the fifth year that it is being co-sponsored by Ethan Allen Workforce Solutions.
Post:
The results from the last Empire State Manufacturing Survey of 2018 are in! New York Manufacturers are remaining optimistic about 2019 but they are slightly more tempered than in November.
Business activity grew at a slower pace than in recent months in New York State, according to firms responding to the December 2018 Empire State Manufacturing Survey. The headline general business conditions index fell twelve points to 10.9. New orders increased modestly, while shipments continued to climb significantly. Delivery times lengthened slightly, and inventories moved higher. The employment index rose twelve points to 26.1, indicating that employment grew strongly, and hours worked increased modestly. The prices paid index, while still elevated, moved down five points, and the prices received index held steady. Looking ahead, firms remained fairly optimistic about the six-month outlook.
Each January the survey goes through revisions to prepare for the upcoming year. All data undergoes a benchmark revision in December to reflect new seasonal factors. The diffusion indexes are each tested for seasonality and adjusted accordingly if patterns are found.
2019 will most definitely be an interesting year for the manufacturing industry. The exponential growth in technology and innovation will undoubtably have an impact on the industry. We look forward to finding out what’s in store.
Read the full report for a more detailed look at the results.
Post: Dec. 12, 2018
We’re officially in the fourth Industrial Revolution, also referred to as Manufacturing 4.0. This new era of manufacturing is bringing a lot of technological innovation and advancements, bridging the gap between the physical and digital environments. These advancements are happening through IIoT, the Industrial Internet of Things, which connects machines and devices across various industries including the manufacturing industry.
By 2020 experts predict that spending on IoT will increase to $890 billion in the manufacturing sector, and IIoT will add $14.2 trillion to the global economy overall. This hyper-growth will result in some major changes throughout the manufacturing industry. To keep up with these changes many manufacturers are implementing IIoT initiatives to achieve this digital transformation.
Below are four actions you can consider as a manufacturer when planning for this new era of manufacturing:
Examine your unique business requirements – by examining and understanding your unique business and technology requirements you can develop a successful IIoT strategy. You should consider the fundamentals of your hardware, if the hardware can support new software and services, and whether or not new services need to be provided by an outside party. When taking all of this into account you can make more informed and intelligent plans.
Understand your business priorities and challenges – examine your company’s top priorities for your digital initiatives and identify any obstacles. Limit the focus to more meaningful objectives rather than just revenue.
Make the build versus buy decision – consider whether your company’s digital initiatives can be achieved internally, or if you will need support from an outside industry specialist. Carefully examine whether the company has the in-house resources to achieve these new digital initiatives internally. Simply speaking with an industry specialist could provide important insight and help answer any questions.
Plan for an ecosystem – Manufacturing 4.0 is here to stay and technological advancements aren’t slowing down. Updating your digital strategy is important, but it will likely need to be done repeatedly as the industry continues to advance. Companies need to plan for that, this isn’t a one-and-done project. Plan to continually evolve with the industry.
Understanding these four key steps will help guide you on your journey to digital transformation as a manufacturer. The best way to keep up in this fourth Industrial Revolution is to properly execute your new IIoT initiatives.
For more advice to consider when planning for this new era of manufacturing read the full article here.
Post: Dec. 6, 2018
By Steven E. Howell, CPA, DABFA – Client Service Partner, and Davide DiGenova, CPA – Tax Partner
RBT CPAs, LLP, a Council of Industry Associate Member
“A provision of the TCJA might benefit Council of Industry member firms organized as pass through entities. This provision “199A,” provides for a deduction of as much as 20% for business activates conducted by these firms.”
On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by the President of the United States. Many of these tax law changes will apply to individual and business taxpayers commencing with their 2018 federal income tax filings. One of the key provisions of the TCJA provides the ability for taxpayers to receive a deduction for Qualified Business Income, which for simplicity purposes can be referred to as “net income”, generated by a trade or business that is conducted within a partnership, S corporation, or sole proprietorship. One might refer to this deduction as the 20% deduction or, more technically, the 199A deduction.
The amount of the 20% deduction allowed will be based on the taxpayer’s individual taxable income less income which has a preferred federal tax rate such as preferred dividends. This amount will be referred to as “adjusted taxable income”. The 20% deduction allowed in a given year will be limited to the lesser of 20% of the adjusted taxable income or 20% of the qualified business income that flows through to the taxpayer.
Determining whether a taxpayer will qualify for the 20% deduction and to what extent this deduction will be allowed is more complicated than its name may suggest. In order to understand this 20% deduction, one must first understand what types of businesses and income thresholds will disqualify a taxpayer from taking this deduction. The first threshold that must be reviewed is whether the trade or business being conducted is considered a specified service trade or business (SSTB) or if such trade or business is a business of providing services as an employee (generally, referred to as changing from an employee to an independent contractor in order to benefit from this deduction when the taxpayer is truly an employee). A SSTB is any trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial or brokerage services, investing and investment management, trading, dealing in securities, and where the principal asset is the reputation or skill of one or more employees or owners (generally referred to as an endorsement). The second threshold that must be met is that the trade or business being operated is conducted within a partnership, S corporation, or sole proprietorship. This deduction will not apply to trades or business conducted within a C corporation. The third threshold is whether taxable income exceeds $157,500 for a single income tax filer ($315,000 married filing joint).
Once the three basic thresholds have been analyzed, one can begin to determine the amount of the 20% deduction that will be allowed. If a taxpayer conducts a trade or business which generates net income and a taxpayer’s taxable income does not exceed $157,500 ($315,000 married filing joint), regardless as to whether such trade or business is a SSTB, the taxpayer will be allowed a 20% deduction for that specific trade or business.
If a taxpayer’s taxable income exceeds the $157,500 ($315,000 married filing joint) but doesn’t exceed $207,500 ($415,000 married filing joint), then there needs to be an analysis done as to the type of trade or business that the taxpayer is operating. A taxpayer who operates a SSTB and exceeds the lower threshold but not the higher threshold, will begin to lose the 20% deduction based on an income limitation and a wage limitation phase-in. If the taxpayer doesn’t operate a SSTB, the 20% deduction will be reduced by a wage limitation phase-in only.
When a taxpayer’s taxable income exceeds the $207,500 ($415,000 married filing joint), the taxpayer will be disqualified from taking a 20% deduction on the net income generated by a specific trade or business that is considered a SSTB. However, if a taxpayer doesn’t operate a SSTB, the 20% deduction will equal the lesser of 20% of the net income generated by the trade or business or the greater of 50% of wages paid by the trade or business or 25% of wages paid plus 2.5% of the unadjusted basis of assets held by the trade or business (excluding land).
As was mentioned earlier, the 20% deduction is a complex area of the TCJA. It would be worthwhile to consult with your tax advisor as to whether you will qualify for this deduction. The Internal Revenue Service issued proposed regulations during mid-August of 2018 which has provided additional guidance and has answered many questions for tax practitioners, but there are still areas which need additional clarification.
Post: Dec. 5, 2018
By E.J. McMahon, Founder and Research Director, The Empire Center for Public Policy
New York State’s budget outlook for fiscal 2020 is improving, according to the FY 2019 Mid-Year Update issued today by Governor Cuomo’s Division of the Budget (DOB).
The Mid-Year Update—released 10 days past the Oct. 30 statutory deadline—pegs the budget gap at $3.070 billion for the fiscal year that starts next April 1. That’s down from $4.027 billion as of the end of the first fiscal quarter.
Assuming Cuomo sticks by his pledge to hold annual State Operating Funds budget growth to 2 percent, the state’s projected net revenue shortfall has been cut nearly in half, to $402 million from the previously projected $780 million. And if the 2 percent limit is maintained through FY 2022, the remaining gaps for the following two years would fall to $998 million and $316 million, respectively.
The significant partial gap-closing since the First Quarter Update can be traced primarily to two factors: a $303 million increase in projected miscellaneous receipts and federal grants, and a $579 million decrease in projected disbursements, which in turn stems mainly from reduction in projected debt service.
Notably, DOB hasn’t changed any of its first-quarter projections of state tax receipts—although state Comptroller Thomas DiNapoli’s office this week estimated that taxes will fall short of Cuomo’s previous projections by $116 million in fiscal 2019 and $383 million in fiscal 2020. If DiNapoli turns out to be correct, the gaps will be larger than Cuomo now expects.
An embarrassment of riches
The new numbers cast more doubt on the need to fully extend the state’s temporary higher “millionaire tax” rate, which now raises about $4.5 billion a year.
That tax, boosting the state’s top personal income tax rate from its permanent-law level of 6.85 percent to 8.82 percent, is Cuomo’s twice-extended version of a slightly higher set of temporary surtaxes first enacted under Governor David Paterson to help close budget shortfalls in 2009-10.
The Mid-Year Update, like all DOB financial plans, assumes no change to current state law—which would mean the higher millionaire tax rate expires as scheduled on Dec. 31, 2019, three-quarters of the way through the 2020 fiscal year.
Based on current revenues, this means the gaps projected on the “Adherence to 2% Spending Benchmark” bottom line of the financial plan could be closed with extended millionaire tax rates of roughly 7 percent to 7.5 percent through Dec. 31, 2021. The natural next step in such a phase-down would be to eliminate the tax entirely and revert to the permanent law top rate of 6.85 percent in 2022.
Balancing the budget with no millionaire tax after 2019 would require holding spending growth to 1.6 percent in FY 2020, and slightly below 2 percent in the following two years.
The only way Cuomo could actually spend the entire $4.5 billion raised by the millionaire tax would be to (a) invent a new category of off-budget disbursement, or (b) cut some other tax. In previous years, he’s chosen “b”—other temporary tax cuts, most recently in the form of a temporary “property tax relief credit.”
Then again, New York City Mayor Bill de Blasio, Assembly Democrats, and—last but not least—leading members of the newly elected state Senate Democratic Majority favor raising the millionaire tax even higher, in part to to generate more money for the Metropolitan Transportation Authority (MTA) and city subways.
Proponents of boosting the millionaire tax ignore the impact of the new federal tax law capping state and local tax (SALT) deductions, which has boosted New York’s effective marginal income tax rate to an all-time high.
Cuomo’s next financial update is due with the first Executive Budget of his third term, next February 1. In the meantime, he’s approaching another deadline that he has gotten into the habit of casually ignoring: Nov. 15, when representatives of the governor, comptroller and legislative leaders are required to meet publicly “for the purpose of jointly reviewing available financial information to facilitate timely adoption of a budget for the next fiscal year.”
Post: Oct. 31, 2018
E.J McMahon takes a look at the economic recovery in New York State, specifically how upstate vs. downstate has fared. Mc Mahon is the Empire Center’s founder and research director and will be the keynote speaker at our upcoming Annual Luncheon & Member / Associate Member Expo on November 30th at the Grandview in Poughkeepsie.
New York’s Uneven Economic Recovery
Post: Oct. 24, 2018
Job openings hit a record in August while the total number of hires also reached a record number. Of those job openings, manufacturers are creating a historic number of new jobs. Unfortunately, the manufacturing industry faces a workforce crisis that could leave millions of lucrative jobs unfilled in the years to come. The number of unfilled manufacturing jobs is projected to continue to grow in the coming years, which could have a dampening effect on both manufacturing in the United States and broader economic growth in our country. Below are links to two articles that explore this topic in more depth.
From NAM (National Association of Manufacturers):
There Are Still 488,000 Unfilled Manufacturing Jobs in the U.S. Manufacturers Are Working to Fix It.
From CNBC:
Another great sign for the economy: Job openings hit an all-time high in August
Post: Oct. 16, 2018
Each month the Council of Industry writes a blog post discussing the results of the Empire State Manufacturing Survey, and since the start of 2018 each post has reported consistent growth for the industry. This month is no exception to that trend. Business activity grew strongly this month and the headline general business conditions index rose two points to 21.1, which suggests faster growth than in September. New orders and shipments also spiked considerably. Additionally, this month saw a slight increase in employment levels; a positive sign for many manufacturing companies that are struggling to find skilled workers to fill their open positions. Employment is expected to increase in the months to come as well. Predictions for the future also remain positive. New York State’s manufacturers are anticipating continued growth throughout the next six months. Look for our post next month with the results of the November survey to see if this upward trend continues!
Read the full report for a more detailed look at the results.
Post: Sep. 21, 2018
The results for the September 2018 Empire State Manufacturing Survey are in, and once again firms are reporting solid growth. The industry has remained relatively steady throughout recent years, and firms are remaining optimistic about their six-month outlook. The survey indicates that new orders and shipments are up, and the labor market pointed to an increase in employment levels.
The headline general business conditions index showed ongoing strength, but moved down seven points to 19.0, pointing to a slower pace of growth than last month. New orders and shipments grew moderately. Delivery times continued to lengthen, and inventories moved higher. Labor market indicators pointed to an increase in employment levels and longer workweeks. Price indexes were little changed and remained elevated, suggesting ongoing significant increases in both input prices and selling prices. Looking ahead, firms remained fairly optimistic about the six-month outlook.
Read the full report for a more detailed look at the results.
Post: Aug. 20, 2018
The August 2018 results for the Empire State Manufacturing Survey once again indicate robust growth. Results have been overwhelmingly positive since the start of 2018. This is great news for Manufacturers in the Hudson Valley, and the optimistic projections for the future imply more good news is on the way.
Business activity remained robust in New York State, according to firms responding to the August 2018 Empire State Manufacturing Survey. The headline general business conditions index climbed three points to 25.6. New orders and shipments grew strongly, and firms reported an increase in unfilled orders. Delivery times continued to lengthen, and inventories held steady. Labor market indicators pointed to solid gains in employment and longer workweeks. Price indexes were little changed and remained elevated, indicating ongoing significant price increases. Looking ahead, firms stepped up their capital spending plans and were fairly optimistic about the six-month outlook.
Read the full report for more!
Post: Jul. 20, 2018
Each month the Federal Reserve Bank of New York distributes the Empire State Manufacturing Survey to about 200 manufacturing companies throughout New York State to analyze industry performance. Around 100 of the 200 companies contacted complete the questionnaire, which asks them to report on specific performance indicators and offer their projections for the upcoming months. The respondents are from diverse sectors of the manufacturing industry, providing an unbiased and accurate pool of feedback. Since the start of 2016 these surveys have generated consistently positive results.
The July 2018 results indicate that business activity continues to grow at a steady pace throughout the state. Labor market indicators point to sturdy growth, and the prices received index signals continued moderate increases in selling prices. The headline general business conditions index also still remains at a high level. These results are promising, and the positive forecasts coming from these companies suggest that robust growth is likely in store for the near future.
You can see the full report with survey results here.
Post: Jul. 10, 2018
By Guest Blogger Elisha Tropper
As manufacturers across America seek to recruit a higher-skilled workforce, the messaging to those entering the job market typically runs something along the lines of “this is not your father’s manufacturing anymore.” Certainly, this is accurate, as modern manufacturing no longer stresses the dark and dirty repetitive manual activities along Henry Ford-style production lines but substantially revolves around designing, engineering, implementing, and continuously improving the advancing automation, robotics, and interconnectivity that are its defining features. Across the country, manufacturers and politicians have stressed the need for trade schools and apprenticeship programs to facilitate the education and skills development of those who wish to pursue a career in manufacturing.
However, the industry would do itself a bigger service by introducing manufacturing education earlier and more frequently throughout the educational paths trod by its desired workers, from middle school birds-eye surveys to more detailed high-school and college level courses. Effectively educating the workers of tomorrow about manufacturing prior to their selection of career fields would certainly impact their decisions and grow the pool of potential manufacturing professionals. As important, mainstreaming a substantial overview and understanding of modern manufacturing to those who will ultimately pursue other careers will benefit not only the students but the industry itself.
It is not stretch to state that having a decent understanding of manufacturing is essential for success in many non-manufacturing business and related fields. For example, private equity and venture capital professionals, stock portfolio managers, business reporters, and those who trade or advise on investments in manufacturing companies or industries are far better equipped to effectively analyze their subjects with even a basic understanding of the field. Accountants, lawyers, government workers, and other professions which service the sector would certainly benefit from knowing the fundamentals of manufacturing. And obviously, even a most basic 101-type education would serve any student considering a career in a manufacturing-related field such as:
- math or the physical sciences (engineering, research, chemistry, etc.)
- computers (programming, data management, etc.)
- business (logistics, supply chain management, entrepreneurship, etc.)
- social sciences (economics, urban planning, industrial psychology, etc.)
The manufacturing sector would itself reap significant rewards from these educational activities. Most obviously, providing an effective introduction of the industry to students at an early stage and continued reinforcement throughout their educational journey will inevitably result in a greater number of students electing to pursue a career in manufacturing. And perhaps of equal significance, even those students who choose other fields will better understand manufacturing, its challenges and issues, and its importance to society. A generation of Americans with such an education would certainly provide improved professional support to the industry and more consistent manufacturing-friendly public policy.
Elisha Tropper is the CEO of Cambridge Security Seals, a Pomona, New York-based manufacturer of tamper-evident security devices.
Post: Apr. 25, 2014
The National Association of Manufacturers is a leader in the tax reform effort to create a national tax climate that promotes manufacturing in America and enhances the global competitiveness of manufacturers in the United States. Manufacturers are calling on lawmakers on both sides of the aisle to work together on tax reform.
The NAM recently drew attention to the significance of tax reform to Americans with new poll findings that show likely voters want policymakers to work together to enact a simpler, fairer tax code. The poll shows American taxpayers are taking a big-picture look at tax reform, offering strong support for pro-growth policies, even if their personal tax burden is unaffected.
Key findings of the NAM poll include the following:
- Nearly 73 percent of those polled support comprehensive reform to make the tax code simpler and fairer, even if their personal tax burden remains the same.
- An overwhelming majority—85 percent—believe it is important that Congress and the President put aside partisanship to enact comprehensive tax reform.
“Among the American people, tax reform bridges the partisan divide—and voters want Congress and the Administration to move beyond the gridlock to fix our broken, uncompetitive tax code,” said NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman.
Coleman discussed how tax reform is a key decision point for voters in the NAM’s A Manufacturing Minute video. The Business Journals and Politico Morning Energy (subscription required) featured news coverage of the survey.
While House Ways and Means Committee Chairman Dave Camp’s (R-MI) impending retirement casts some doubt on the future of his signature tax reform proposal unveiled in February, tax reform is far from dead. Indeed, since Chairman Camp’s discussion draft is the most detailed tax overhaul plan coming out of Washington in a long time, there is a good chance that many of the provisions in the Tax Reform Act of 2014 will form the basis of a tax reform plan in the future.
At the same time, tax reform continues to be a major issue for businesses. In a recent NAM/IndustryWeek survey, two-thirds of respondents said that tax reform should be a top priority for policymakers. Clearly, there are a number of reasons why tax reform will not go away, including the current complexity of the U.S. tax system, the fact that the United States has the highest tax rate among other Organisation for Economic Co-operation and Development (OECD) nations, the uncompetitive U.S. international tax system and the increasing number of temporary “extenders” in the code.
The NAM has formed an ad hoc tax reform working group to take a closer look at Chairman Camp’s proposal, with the goal of submitting comments on the draft later this year. For further information or to join the ad hoc working group, please contact Coleman below.
To learn more about the new NAM poll findings, click here.
