News View

PMPA's 10 Principles for Tax Reform

Nov 16, 2017

Below is a list of ten PMPA Tax Reform Principles, as compiled by The Franklin Partnership, PMPA’s retained lobbyists in Washington DC.  The list is consistent with what they’ve discussed in the past and fits into several of the areas currently under consideration and of concern to PMPA members, and they believe that Congress will include most of these principles in whatever they determine to be the final bill.

PMPA’s 10 Principles for Tax Reform

PMPA is one of the leading voices right now in Washington, D.C. lobbying on the tax plans making their way through the U.S. House and Senate. PMPA’s team is on the ground actively working with those who are directly drafting the bills and making changes every day. The House is on schedule to pass its legislation this week as the Senate Finance Committee finalizes its bill in the next few days. The hope is for the full Senate to consider their measure the week following Thanksgiving. This schedule leaves both chambers all of December to reconcile their differences, a timeline still thought of as ambitious given the challenges ahead.

As the bill moved through the House Ways and Means Committee, it became clear any substantive changes made focused more on securing the minimal votes needed to pass than what Congress may include in any final measure sent to the White House. Sources indicate that most of the substantive work will occur behind the scenes in December during which PMPA’s lobbying team will continue to press lawmakers to pass a tax plan that improves the global competitiveness of the precision machining industry. While PMPA has a diverse group of members ranging in size, scope and location, it has developed Ten Key Principles for Tax Reform, including:

·         Simplify the code making as many provisions permanent as possible;

·         Create a globally competitive tax structure with reasonable rates;

·         Develop taxation policy that does not encourage additional government spending;

·         Reduce income tax rates for C-Corporations and Pass-throughs;

·         Set comparable rates for pass-through manufacturers to those of C-Corps;

·         Do not disrupt existing compensation plans for manufacturing executives and retirees;

·         Allow for 100% business expensing;

·         Expand investment incentives in equipment;

·         Permit small manufacturers to deduct interest on business loans;

·         Maintain and enhance the Research & Development Tax Credit;

If you have any questions, please contact Miles Free at PMPA – mfree@pmpa.org