Taxes, Tariffs & Trade
“NAFEM opposes President Trump’s plan to impose steep tariffs of 25 percent on imported steel and 10 percent on imported aluminum.
To better understand the economic and business implications of the new tax act, NAFEM spoke with two leaders at the National Association of Manufacturing (NAM). Chad Moutray is NAM’s chief economist and Chris Netram is vice president of tax and domestic economic policy. Both are located at NAM headquarters in Washington, D.C.
Prospects of defeating the misnamed “Employee Free Choice Act” have greatly improved recently, as two key senators who previously supported the bill – Arlen Specter (D-PA) and Blanche Lincoln (D-AR) – announced that they will no longer support it, at least in its present form.
The recent round of Geneva tariff reduction negotiation and the prospects of any generalize reduction of foreign tariffs on industrial products – including food preparation and serving equipment has failed, for now, under the auspices of the World Trade Organization (WTO).
Our efforts to get the Judiciary Committee to act on the “business activity” tax issue need member “grass-roots” support for the pending legislation. NAFEM needs to be able to cite specific member companies affected by these taxes – and also those who would like to help us head this off before they are affected – when talking with Congressional offices. Support is especially needed from members in Michigan – home to Judiciary Chairman Conyers – and from California, home to several Judiciary Committee members.
The chair and ranking minority member of the House Committee on Small Business have asked the House Judiciary Committee to take action on pending legislation to clarify that states cannot impose “business activity” taxes on firms that make sales in their states but have no office or other physical presence there. The letter to Judiciary Chairman John Conyers (D-MI), signed by both Congresswoman Nydia Velazquez (D-NY) chair of the Small Business Committee and Congressmen Steve Chabot (R-OH), ranking minority member, as a direct result of a hearing February 14 at which four small business representatives, including NAFEM Government Relations Committee Chairman David Rolston, CFSP, Hatco Corporation, Milwaukee, Wisc., outlined problems created for small manufacturers by these taxes.
With Government Relations Committee Chairman David Rolston, CFSP, president, Hatco Corporation, testifying at a recent Congressional hearing, NAFEM has placed itself at the center of a renewed effort to rein in the proliferation of taxes that many states are placing on firms that have sales in those states but no office or other physical presence.
Congressman Joe Knollenberg (R-MI) has reintroduced “The American Manufacturing Competitiveness Act” (H.R. 1127), legislation that gives users of industrial materials the right to participate effectively in hearings before the International Trade Commission (ITC) and the Department of Commerce (DOC) in trade cases, such as anti-dumping complaints against foreign producers exporting to the United States.