By Jay Heflin - 07/29/10 04:01 PM EDT
“More than half of all manufacturing employees work for U.S. multinationals,” she told The Hill. “So imposing a tax increase on them is not going to help job creation.”
Jay Timmons, NAM’s Executive Vice President, explained this in a letter sent today to lawmakers.
“An estimated 22 million people in the United States — more than 19 percent of the private sector workforce and 53 percent of all manufacturing employees — are employed by companies with operations overseas,” Timmons stated. “Manufacturers feel strongly that imposing $11.5 billion tax increases on these companies as proposed by [the bill] will jeopardize the jobs of American manufacturing employees and stifle our fragile economy.”
NAM argues many of the bill’s tax increases have been mischaracterized as closing tax loopholes when they actually help to grow the economy.
“We are disappointed that many of the bill’s proposed tax increases have not been adequately scrutinized during congressional hearings,” the letter states. “In many cases, taxpayers have relied on these longstanding tax provisions in structuring their businesses. Changing the rules without fair and adequate hearings will cost in term of jobs, investment and manufacturers’ ability to compete overseas.”
Timmons writes that his organization does support the extension of Build America Bonds and lifting the state volume cap for private activity bonds for waste and water infrastructure, but not at the cost of ending tax provisions used by firms with operations worldwide.
“[Our] support for these provisions is heavily outweighed by the significant costs imposed on manufacturers by the bill’s tax increases,” the letter states. “Manufacturers urge your opposition to the bill.”