Rep. Ron Kind (D-WI) recently introduced The Rebuilding American Manufacturing Act (H.R. 2940) to bolster the American manufacturing sector by lowering the effective tax rate for domestic manufacturers to 20 percent.
"We need to make investments in American manufacturing to ensure that we remain competitive in today's economy," said Rep. Kind. "Reducing the effective tax rate will be a great boost for American workers and our manufacturers that are competing in the 21st Century market. It will help them keep facilities here in the United States and employ American workers making high-quality products. This is a commonsense investment in America's future."
According to the Bureau of Labor Statistics, over 1 million workers are employed by domestic manufacturers. Long the backbone of state and national economy, the manufacturing industry provides stable, good-paying jobs and offers a gateway to the middle class.
Rep. Kind's bill places a high priority on supporting the stable jobs and sustainable wages the manufacturing sector offers. As a strong proponent of comprehensive tax reform, Rep. Kind has been committed to removing barriers to growth and simplifying the tax code in order to increase U.S. competitiveness and foster the creation of sustainable American jobs.
The Rebuilding American Manufacturing Act is a concrete step in this direction. It creates a new section of the tax code that provides a significantly lower tax rate for domestic manufacturers. This will provide important benefits to firms that are investing and hiring domestically, and those firms can then use the savings to continue investments in innovation and growth here at home.
"This Act helps level the playing field where taxes are concerned, putting us in a better position to bring good-paying manufacturing jobs back to our shores," continued Rep. Kind. "Lower tax rates on this activity will help increase our competiveness as the center of world-class manufacturing."