What They Are Saying: Manufacturing organizations encourage deregulation, lower taxes
Washington, April 30, 2021
WASHINGTON, D.C. - Yesterday, the House Small Business Subcommittee on Economic Growth, Tax, and Capital Access held a remote hearing titled “Supply Chain Resiliency and the Role of Small Manufacturers.” To add to the hardships from COVID-19, small manufacturers continue to face challenges to meet their labor needs. In response, the Committee's witnesses, manufacturing associations, and small business owners submitted letters for the record on the importance of deregulation, lowering taxes, and leveraging purchasing power for our nation's manufacturers.
David Taylor, President and CEO of Pennsylvania Manufacturers' Association: "Of course, to get people into the workforce, they first have to want to work. This is one of the problems of the current moment because of Congress’ policy of subsidizing state unemployment compensation payments. The federal government was correct to respond to the needs of our citizens caused by the economic shutdown triggered by the pandemic. Many people are still dealing with both the health crisis and the economic consequences of the shutdown. The impulse to be generous is understandable, but, regrettably, the federal taxpayer subsidy to state unemployment benefits is keeping many employees out of the workforce."
Wes Hampp, Founder and Managing Partner, Holleway Capital Partners (Overland Park, KS): "Congress should write tax policies that encourage, not discourage, long-term investing in America’s small businesses and small manufacturers. Doubling the capital gains rate for anyone with an annual income over a million dollars would be a major setback for entrepreneurs or those that are considering starting a small business, particularly a manufacturer. Small business owners build their small business over years (and in some cases the majority of their lifetime), and they typically get to sell that investment once. When they sell their business, they take the money and either retire or start a new business."
Carlos Ruiz, Owner of HT Metals (Tucson, AZ), Member of Job Creators Network: "It’s been so challenging to find qualified workers to fill open positions at HT Metals that I’ve been exploring using a temporary work agency. But this can’t go on forever. Not only is the labor significantly more expensive, but the job candidates rarely have the right skills and experience to effectively get the job done. Pile-on the threat posed by higher taxes and more regulations that will spike the cost of everyday operations and small businesses face a scary future. Components included in the two 'infrastructure' packages that the Biden administration has unveiled are of particular concern."
Guy Berkebile, Owner and Founder of Guy Chemical (Somerset, PA), Member of Job Creators Network: "Proposed tax hikes from the Biden administration would reverse the gains small businesses experienced as a result of the Tax Cuts and Jobs Act—making pandemic recovery even more challenging. With the financial savings from the tax relief following its passage in 2017, Guy Chemical was able to build a new laboratory that was five-times larger than our previous one, invest in new chemical compounding equipment, and purchase new packaging lines... The extension of expanded unemployment benefits and other policies that incentivize staying home, rather than showing up to work will continue to be another challenge for small businesses. Small businesses can’t effectively provide consumers with goods and services while operating on a skeleton staff."
Scott N. Paul, President of Alliance for American Manufacturing: "Americans are rightly concerned that years of tax and trade policies that encourage outsourcing, coupled with a failure to invest in our domestic manufacturing base, have brought into clear view our inability to protect the health and safety of Americans during a time of national crisis. Focusing on supply chain challenges and constraints with a bias towards a continued reliance on imports is the wrong approach. Now is the time to break the vicious cycle of implementing policies that reward imports over domestic production. Both our economic and national security are at stake. We must be better prepared for the next crisis, and that requires taking bold action, starting right away."
The Texas Association of Manufacturers: "Our highest priorities include measures that will aid in the Texas recovery, but are also applicable to the rest of the country: strengthening economic tools to attract new investment, providing pandemic liability protections for all businesses (and especially our essential manufacturers), securing stable funding streams for high-quality workforce training programs that provide an exceptional rate of return for the economy, and defending a reasonable regulatory structure that allows all manufacturers to operate freely in our marketplace."
Cato Institute: "During the COVID-19 pandemic, state and federal governments temporarily suspended hundreds of regulations to boost domestic production, investment, and adjustment during the national emergency, revealing in the process that these “never needed” regulations discouraged economic growth and dynamism while providing little, if any, public benefit."