U.S. Rep. Ron Kind, member of the tax-writing House Ways and Means Committee, today supported the bipartisan American Manufacturing Competitiveness Act, H.R. 5865, legislation that requires the development of a national strategy to revitalize American manufacturing and create good-paying middle class jobs.
"Ensuring the success of American manufacturing is critical to remaining competitive in a global economy," said Rep. Kind. "Manufacturing spurs innovation. If we continue to invest in domestic manufacturing, we will see the research and development we need to maintain American competitiveness. In a nation as great as ours, we must have the ability to invent, create, build and grow things."
The American Manufacturing Competitiveness Act would require a federal board comprised of manufacturing experts, appointed by House and Senate leaders and the President, to conduct in-depth analysis of the nation's manufacturing sector, government policy, and efforts by our global competitors to determine how best to make the United States an ideal location for establishing and maintaining manufacturing operations. Based on this analysis, the board will issue a draft national competitiveness strategy, which will ultimately be approved by the President. The first strategy is due by April 2014.
In an effort to encourage manufacturing and grow the economy, Kind introduced legislation earlier this year, the Rebuilding American Manufacturing Act, H.R. 5795, which reduces the effective tax rate for domestic manufacturers to 20 percent. The bill creates a new section of the tax Code that provides a significantly lower tax rate for domestic manufacturers, providing important benefits to firms that are investing and hiring here in the United States. These firms can then use the savings to continue investments in innovation and growth.
"Reducing the effective tax rate gives our manufacturers greater opportunity to succeed globally," said Rep. Kind. "It will help them keep facilities in the Unites States, produce American goods, hire American workers, and continue to grow and innovate. This is a commonsense investment in America's future."