Keys To Strengthening U.S. Manufacturing

Keys To Strengthening U.S. Manufacturing

Aug 11, 2017

By Jay Moon, Executive Director of the Mississippi Manufacturer’s Association Delta Business Journal Manufacturing in the United States is poised for a renaissance not seen at any other time in recent history. The past decade has seen new investments in automation and efficiencies that have significantly increased industrial productivity. Added to these rapid technological advancements, new proposals by the Trump administration promise to make U.S. based manufacturing more globally competitive. These proposals, if enacted, will once again position American’s industrial sector as the driving force of our economy. The three broad categories of reform—regulatory relief, tax adjustment and infrastructure investment—individually and collectively, will position America’s manufacturing base to remain globally competitive. After years of increasingly onerous, and expensive, regulations being forced on business and industry by unelected bureaucrats in Washington, Congress and the Trump administration have begun to rescind or drastically scale back these mandates. According to a recent study by the National Association of Manufacturers (NAM), “Since 2009, 637 major new regulations—defined as having an annual effect on the economy of at least $100 million—have been issued through October 2016.” Considering that manufacturers were the frequent target of these regulations, each new rule translated into increased compliance costs that put our companies at a major disadvantage with their global competitors. By removing these barriers to success, our nation’s manufacturers can begin to operate under a regulatory process that is both fair and scientifically based. Similarly, our current tax system puts American manufacturers at a competitive disadvantage. We have the highest corporate tax rate among developed countries. When this rate is combined with state taxes, manufacturers face an aggregate tax burden that can reach 40 percent or higher. In addition to a high tax rate on profitability, manufacturers have to contend with dozens of additional taxes at the federal, state and local levels that impact their bottom line. Fortunately, leadership in Congress is focused on advancing pro-growth, pro-competitive tax reform policies that will strengthen our economy, create jobs and promote investment in America. This comprehensive approach to tax reform, which has not happened since the mid-1980s, will be the catalyst to allow U.S. companies to compete effectively in the 21st century world economy. Equally as...

Press Release: CPA Supports President Trump’s Executive…

Press Release: CPA Supports President Trump’s Executive…

Jan 24, 2017

Press Release: CPA Supports President Trump’s Executive Order to Withdraw US from TPP The Coalition for a Prosperous America Washington~In his first day of office, President Trump signed an executive order to withdraw the US from Trans-Pacific Partnership (TPP) negotiations. “It’s a great thing for the American worker, what we just did,” said President Trump while signing order. This executive order fulfills a campaign promise to rewrite America’s trade policy during his first days as president. CPA supports the executive order and applauds President Trump for holding true to his campaign promises. “President Trump’s fulfillment of his campaign promise to withdraw from the TPP shows he is serious about trade reform,” said Michael Stumo, CEO of CPA. “We look forward to working with the administration to balance trade, grow our manufacturing and agricultural supply chains and protect our sovereignty.” “This is very good news as a first step on a long road for bringing jobs in the factory and the farm back to the USA,” said Brian O’Shaughnessy, CPA Chief Co-Chair and Co-Chair for Mfg. “The TPP has no language to offset currency manipulation, border adjustable tariffs and extends the power of foreign tribunals to force our country to change our laws to conform to their wishes.” “TPP would be a ‘more of the same’ in a long line failed trade deals,” said Dan DiMicco, CPA Board of Director. “Trump is right to withdraw and it should not be resurrected.” CPA and other organizations have drafted a document listing 13 principles that should be included in all future trade agreements: Balanced Trade:Trade agreements must contribute to a national goal of achieving a manageable balance of trade over time. National Trade, Economic and Security Strategy:Trade agreements must strive to optimize value added supply sustained growth Reciprocity:Trade agreements must ensure that foreign country policies and practices as well as their tariff and non-tariff barriers provide fully reciprocal access for U.S. goods and services. The agreements must provide that no new barriers or subsidies outside the scope of the agreement nullify or impair the concessions bargained for. State Owned Commercial Enterprises:Trade agreements must encourage the transformation of state owned and state controlled commercial enterprises (SOEs) to private sector...

The $2.3 Trillion Reason to Reform the Tax Code

The $2.3 Trillion Reason to Reform the Tax Code

Apr 15, 2015

By Drew Greenblatt, Marlin Steel, Inc. It is time to urge Washington to reform our tax code to let companies bring home cash they earned and already paid taxes on so they can invest back home. Friday, GE announced a massive restructuring to focus on manufacturing and divest itself its finance arm, GE Capital. Part of the transaction is bringing home $36 billion dollars stuck in overseas banks back to the USA incurring a new $6 billion tax on money that was already taxed overseas. Ouch–$6 billion tax bills hurt. GE has postponed bringing this money home for years because of this extra tax. Stryker and Ebay recently bit the bullet and paid stiff taxes to bring home money. Here is the problem, GE like the other 999 largest US companies are not bringing their cash hordes home that amount to over $2.3 trillion because it will get hit with an outrageous 35% levy. This is over 9% of their assets are sitting overseas that is not put to its highest and best use. We are the only industrialized country that does this. This shortsighted tax hurts Americans bad. This unique tax causes a series of big problems for Americans because our companies don’t bring home money and they let it sit in overseas banks. We want our companies using this cash now investing in their factories. Our manufacturing would be more successful with the latest tools and resilient for future economic shocks. Ready for a painful grimace–our tax system encourages our companies to actually invest in foreign plants and companies rather than taking a 35% penalty to bring it home. We want US corporate titans encouraged to invest here and not overseas. Americans will be the biggest beneficiaries of this money coming home since companies will invest in their local factories so they are more competitive or create new product lines. Some skeptics say the companies will use the money for share buybacks or dividends. Cash used to pay dividends helps fund pension funds (owners of domestic company stock) and sweeps through our economy to find more productive uses (vs sitting in a foreign bank). It is time to urge Washington to reform...

5 Issues Facing Small Businesses in 2013

By: Joyce Rosenberg, Associated Press, NBCNews.com In 2013, small business owners will contend with many of the same issues that made it hard to run their companies over the last 12 months. They’re also heading into the new year with a lot of uncertainty. It’s unlikely that negotiations in Congress will resolve all of lawmakers’ disagreements over tax and budget issues that affect small businesses. And there are still many questions about the implications of the health care law for small companies. That points to continued caution — and perhaps slow hiring — among the nation’s small companies. “Uncertainty is the bane of every small business,” says Scott Shane, a professor of entrepreneurship at Case Western Reserve University’s Weatherhead School of Management in Cleveland. “Their only rational response is to pull in their horns and slow down.” Small businesses aren’t likely to get much encouragement from the economy. It’s expected to grow by no more than 3 percent in 2013, according to the Federal Reserve. That’s a moderate pace, better than the 1.7 percent that the economy grew during the first three quarters of 2012. But it’s also far from robust. Here’s a look at some of the issues facing small businesses in the coming year: Taxes Lawmakers are still haggling over what’s called the fiscal cliff, the combination of billions of dollars in tax increases and budget cuts. Even if Congress reaches an agreement, small business owners won’t have the certainty they need, according to Todd McCracken, president of the National Small Business Association, a group that lobbies on behalf of small companies. “It almost surely won’t be comprehensive enough that we won’t be revisiting it next year,” McCracken says. He’s concerned that there’ll be another fiscal cliff in six months — which would mean more negotiations and more uncertainty. Many small business owners are worried about their personal tax rates. Sole proprietors, partners and owners of what are called S corporations, all report the income from their businesses on their individual Form 1040 returns. That means their companies are in effect taxed at personal rates, which can be higher than corporate rates. One of the most important tax provisions for small businesses,...

US Manufacturing Shrinks to Lowest Level Since July 2009 on Fears of Higher Taxes

By: Associated Press, The Washington Post U.S. manufacturing shrank in November to its weakest level since July 2009, one month after the Great Recession ended. Worries about automatic tax increases in the New Year cut demand for factory orders and manufacturing jobs. The Institute for Supply Management said Monday that its index of manufacturing conditions fell to a reading of 49.5. That’s down from 51.7 in October. Readings above 50 signal growth, while readings below indicate contraction. Manufacturing grew in October for only the second time since May. The ISM is a trade group of purchasing managers. A gauge of new orders dropped to its lowest level since August, a sign that production could slow in the coming months. Manufacturers also sharply reduced their stockpiles, indicating companies expect weaker demand. “Today’s report suggests that the manufacturing sector is likely to remain a weak point in the recovery for a few months yet,” Jeremy Lawson, an economist at BNP Paribas, said in a note to clients. Stocks declined after the survey was released, giving up early gains. The Dow Jones industrial average was down 12 points in midday trading. Broader indexes rose only slightly. The weak manufacturing survey overshadowed other positives economic reports. Greater home building boosted U.S. construction spending in October by the most in five months. Manufacturing activity in China grew in November for the second straight month. And U.S. auto sales rebounded last month after Superstorm Sandy held sales back in October. U.S. manufacturers are concerned about the “fiscal cliff,” the ISM survey noted. That’s the name for sharp tax increases and government spending cuts that will take effect in January if Congress and the Obama administration fail to strike a budget deal before then. Worries about the fiscal cliff have led many companies to pull back this year on purchases of machinery and equipment, which signal investment plans. The decline could slow economic growth and hold back hiring in the October-December quarter. A measure of hiring in the ISM survey fell to 48.4, the lowest reading since September 2009. Companies “are just backing off and not making any moves until things clear up a bit,” Bradley Holcomb, chairman of the ISM’s...