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With Election Day past, now act on manufacturing strategy
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11/03/10 10:19 AM ET
Manufacturing and manufacturing jobs proved to be powerful and prominent issues in this year’s campaigns.
Candidates from across the political spectrum campaigned on creating and preserving high-paying manufacturing jobs. House Democrats developed a “Make it in America” legislative agenda that was featured in their campaigns, and President Obama visited factories to defend his Administration’s economic record while making further proposals to boost business and investment.
Republicans countered by calling for policies to unleash the private sector, keep federal taxes under control and reduce government’s burden on business.
Even before the final votes are counted, it is clear that voters want Congress to act aggressively to support a competitive manufacturing sector in the United States.
The National Association of Manufacturers (NAM) laid out a strategy for that action in June, our “Manufacturing Strategy for Jobs and a Competitive America.” The strategy proposes a comprehensive approach that Congress and the Obama Administration must pursue for manufacturing in the United States to succeed in the face of global competition.
The need for action has become even clearer as the campaigns moved from summer to fall to Election Day. For example, the NAM’s strategy emphasizes the global disadvantage the United States has inflicted upon itself by having the second-highest corporate tax rate among industrialized nations.
Yet now the “leader,” Japan, is set to improve its competitive position by lowering its corporate tax rate. Its newly elected prime minster, Naito Kan, has proposed cutting the corporate tax rate gradually from 40 percent to around 25 percent, the average level among other major economies.
Here in Washington, not only has Congress ignored the issue of tax competition, it has even failed to extend the 2001 and 2003 tax rates, threatening a major tax increase next year on small businesses and individuals.
The NAM’s Strategy calls for policies to encourage innovation. Yet Congress failed to re-enact the lapsed Research and Development Tax Credit, one of the most powerful tools available to encourage investment and create jobs.
Our Strategy warns against Congress surrendering its policy-making authority to regulatory agencies.
Yet the Senate voted down the Congressional Review Act rejection of the Environmental Protection Agency’s greenhouse gas regulations. The EPA marches on with its goal of expanding regulations and their economic burdens on industry in such areas as ozone emissions, industrial boiler emissions, and coal ash.
Indeed, a new Heritage Foundation study reports that the Executive Branch enacted an unprecedented 43 major new regulations in the just-finished fiscal year: “And based on reports from government regulators themselves, the total cost of these rules topped $26.5 billion, far more than any other year for which records are available.”
Our manufacturing strategy emphasized the need to open markets to U.S. exports and called for enactment of the pending free trade agreements.
But Congress sat up in the bleachers watching as the European Union enacted a free-trade agreement with Korea, and Canada completed its agreement with Colombia. Our competitors in Europe, Asia, the Pacific Rim and Latin America are negotiating scores of trade agreements that put the United States at a disadvantage.
On taxes, trade and ever-expanding regulation, the 111th Congress has failed to pursue a pro-growth, pro-manufacturing agenda. On the jobs agenda, the hallmark of this Congress has been inaction.
On Tuesday, America’s voters clearly expressed their dissatisfaction with Congress’ approach toward jobs, the economy and government. At the same time, the voters identified manufacturing and manufacturing jobs as a priority.
So now, it’s up to Congress to act. In June, the NAM issued its “Manufacturing Strategy for Jobs and a Competitive America” as both a policy guide and call to action. The policy recommendations remain critically important, the call to action ever more pressing.
John Engler is president and CEO of the National Association of Manufacturers.
Candidates from across the political spectrum campaigned on creating and preserving high-paying manufacturing jobs. House Democrats developed a “Make it in America” legislative agenda that was featured in their campaigns, and President Obama visited factories to defend his Administration’s economic record while making further proposals to boost business and investment.
Republicans countered by calling for policies to unleash the private sector, keep federal taxes under control and reduce government’s burden on business.
Even before the final votes are counted, it is clear that voters want Congress to act aggressively to support a competitive manufacturing sector in the United States.
The National Association of Manufacturers (NAM) laid out a strategy for that action in June, our “Manufacturing Strategy for Jobs and a Competitive America.” The strategy proposes a comprehensive approach that Congress and the Obama Administration must pursue for manufacturing in the United States to succeed in the face of global competition.
The need for action has become even clearer as the campaigns moved from summer to fall to Election Day. For example, the NAM’s strategy emphasizes the global disadvantage the United States has inflicted upon itself by having the second-highest corporate tax rate among industrialized nations.
Yet now the “leader,” Japan, is set to improve its competitive position by lowering its corporate tax rate. Its newly elected prime minster, Naito Kan, has proposed cutting the corporate tax rate gradually from 40 percent to around 25 percent, the average level among other major economies.
Here in Washington, not only has Congress ignored the issue of tax competition, it has even failed to extend the 2001 and 2003 tax rates, threatening a major tax increase next year on small businesses and individuals.
The NAM’s Strategy calls for policies to encourage innovation. Yet Congress failed to re-enact the lapsed Research and Development Tax Credit, one of the most powerful tools available to encourage investment and create jobs.
Our Strategy warns against Congress surrendering its policy-making authority to regulatory agencies.
Yet the Senate voted down the Congressional Review Act rejection of the Environmental Protection Agency’s greenhouse gas regulations. The EPA marches on with its goal of expanding regulations and their economic burdens on industry in such areas as ozone emissions, industrial boiler emissions, and coal ash.
Indeed, a new Heritage Foundation study reports that the Executive Branch enacted an unprecedented 43 major new regulations in the just-finished fiscal year: “And based on reports from government regulators themselves, the total cost of these rules topped $26.5 billion, far more than any other year for which records are available.”
Our manufacturing strategy emphasized the need to open markets to U.S. exports and called for enactment of the pending free trade agreements.
But Congress sat up in the bleachers watching as the European Union enacted a free-trade agreement with Korea, and Canada completed its agreement with Colombia. Our competitors in Europe, Asia, the Pacific Rim and Latin America are negotiating scores of trade agreements that put the United States at a disadvantage.
On taxes, trade and ever-expanding regulation, the 111th Congress has failed to pursue a pro-growth, pro-manufacturing agenda. On the jobs agenda, the hallmark of this Congress has been inaction.
On Tuesday, America’s voters clearly expressed their dissatisfaction with Congress’ approach toward jobs, the economy and government. At the same time, the voters identified manufacturing and manufacturing jobs as a priority.
So now, it’s up to Congress to act. In June, the NAM issued its “Manufacturing Strategy for Jobs and a Competitive America” as both a policy guide and call to action. The policy recommendations remain critically important, the call to action ever more pressing.
John Engler is president and CEO of the National Association of Manufacturers.
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