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PMPA Press Release: PMPA Applauds Release of Tax Reform Framework

Sep 28, 2017
For Immediate Release
Contact: Miles Free
mfree@pmpa.org

September 27, 2017

PMPA Applauds Release of Tax Reform Framework

Washington, D.C. – The Precision Machined Products Association (PMPA) today applauded President and leaders on Capitol Hill for the release of a long awaited framework to significantly overhaul the tax code. U.S. businesses, particularly small and medium-sized, face significant tax burdens that place them at a competitive disadvantage globally. PMPA has long believed that Washington must act on comprehensive reform for all businesses, regardless of their size and structure.

The U.S. corporate tax rate is now among the highest in the industrialized world and double digits over Germany and China. Meanwhile, government data shows that 81% of manufacturing companies are pass-through entities who pay taxes through their owners often at the increased individual rates up to 39.6% - even higher than a C-Corporation. Real comprehensive tax reform for both C-Corporations and Pass-throughs with business expensing will generate manufacturing output, increase employment, and generate more federal revenues through increased business activity.

“Federal tax policy has the single largest impact on our industry’s global competitiveness of any other factor,” said Mr. Bernie Nagle, Executive Director of PMPA. “We support efforts to advance comprehensive tax reform and ask that as negotiators move forward, they maintain a focus on small businesses, particularly pass-throughs, who are creating jobs but can do more if they send less to Washington. We need long term policies that help manufacturers invest, produce, and compete in the United States and across the globe. But we need it for C-Corporations and pass-throughs.” added Mr. Nagle.

Manufacturers need tax reform that incentivizes production in the U.S. by making businesses more competitive. Real comprehensive tax reform for both C-Corporations and Pass-throughs will increase manufacturing output, increase employment, and ultimately generate more federal revenues through increased business activity.

“Our members need Congress to act quickly, every opportunity wasted, is another customer manufacturers lose and an employee they don’t hire due to an uncompetitive and unrealistic tax code,” Mr. Nagle concluded.

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The Precision Machined Products Association (PMPA) is a national trade association representing over 440 member companies involved in the production of highly engineered, precision machined components used in advanced automotive, aerospace, electrical, construction, and medical technologies PMPA’s members include metal producers, machining and manufacturing companies, machine tool builders, and producers of tooling, software and accessories, and metalworking fluids. The precision machining industry is best described by NAICS code 332721, and accounts for over 99,400 jobs with payrolls of $5.1 billion and shipments of over $18.4 billion. The mission of the PMPA is to provide the information, resources and networking opportunities to advance and sustain its members while advocating for manufacturing throughout the United States.