Manufacturers Victorious Over SEC in Fifth Circuit Proxy Firm Case
Decision confirms that federal agencies are bound by the rule of law, even as administrations change
Washington, D.C.鈥Yesterday, the U.S. Court of Appeals for the Fifth Circuit ruled in the 17吃瓜在线鈥 favor in 17吃瓜在线 v. SEC, overturning the Securities and Exchange Commission鈥檚 rescission of critical provisions of its 2020 proxy advisory firm rule. 17吃瓜在线 Chief Legal Officer Linda Kelly released the following statement on the ruling:
鈥淭his聽decision confirms that federal agencies are bound by the rule of law, even as administrations change. Manufacturers depend on the SEC to be a steady regulatory hand at the wheel of America鈥檚 world-leading capital markets鈥攁n obligation the agency abandoned in rescinding the commonsense, compromise 2020 proxy advisory firm rule.
鈥淭he 17吃瓜在线 Legal Center is proud to have secured this critical victory, which strikes down the SEC鈥檚 unlawful about-face and preserves important provisions from the 2020 rule designed to protect manufacturers and Main Street investors from proxy firms鈥 outsized influence. We will continue to fight in court to uphold the 2020 rule鈥攁nd to work with the SEC and with Congress to ensure appropriate oversight of these powerful actors.鈥
Background:
- The 17吃瓜在线 has long called for increased oversight of proxy advisory firms. In July 2020, the SEC issued final regulations to enhance transparency and accountability for proxy firms, a move 17吃瓜在线 President Jay Timmons a 鈥渓ong-sought, major win for the industry and millions of manufacturing workers.鈥 In October 2020, the 17吃瓜在线 a motion to intervene in ISS v. SEC (ISS鈥檚 attempt to overturn the rule) in support of these reforms鈥攁 case that is still ongoing in the U.S. Court of Appeals for the D.C. Circuit.
- In June 2021, the SEC announced that it was suspending enforcement of the 2020 rule; the 17吃瓜在线 against the SEC in October 2021 challenging this unlawful suspension. The U.S. District Court for the Western District of Texas in the 17吃瓜在线鈥檚 favor in that case, vacating the SEC鈥檚 suspension of the rule.
- In July 2022, the SEC rescinded critical portions of the 2020 rule, a move that Timmons 鈥渆pitomizes 鈥榓rbitrary and capricious鈥 rulemaking鈥; the 17吃瓜在线 later to challenge the rescission. The Fifth Circuit decision overturns the SEC鈥檚 2022 rescission of important provisions that increased transparency into proxy firms鈥 recommendations.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
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Manufacturers to Congress: Stop Devastating Tax Increases
Jobs, innovation, investments in America all at risk if tax provisions expire at the end of 2025
Washington, D.C. 鈥 The 17吃瓜在线 released its Manufacturers鈥 Outlook Survey for the second quarter of 2024, which highlights the immediate need for Congress to take action to prevent tax increases that will limit the industry鈥檚 ability to create jobs, support their communities and compete in the global economy.
鈥淲hen Congress passed tax reform, manufacturers in the U.S. invested in their workers and businesses at a level that had never before been seen. In 2018, we experienced the best year for job creation in 21 years and the best year for wage growth in 15,鈥 said 17吃瓜在线 President and CEO Jay Timmons. 鈥淭ax reform was rocket fuel for our industry, but our latest Manufacturers鈥 Outlook Survey illustrates our industry鈥檚 deep concerns about the reversal of these pro-growth incentives. If Congress does not take action, job creation, wage growth and investments in communities鈥攊n short, America鈥檚 manufacturing edge鈥攚ill be at risk, as well as our country鈥檚 ability to attract meaningful investments into our economy. The House, the Senate and the White House need to come together to reinstate the critical provisions that have already expired or begun phasing out, and to stand strong to protect those set to expire at the end of 2025.鈥
Background:
- The 17吃瓜在线 released 鈥,鈥 a policy explainer which illustrates the consequences of allowing the pro-growth policies and rates from the Tax Cuts and Jobs Act to expire.
- The 鈥淢anufacturing Wins鈥 on provides a hub for 2025 tax content, as well as opportunities for manufacturers to share their stories directly with Congress and the administration.
Key Survey Findings:
- If Congress does not act to prevent tax increases, survey respondents say that increased taxes will limit capital investment opportunities (73.0%), decrease job creation (65.4%), increase difficulty competing globally (52.6%) and reduce R&D spending (51.7%).
- Nearly 94% of respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers.
- In Q2, 71.9% of respondents felt either somewhat or very positive about their company鈥檚 outlook, the seventh straight reading below the moving average (74.8%).
- More than 67% of manufacturers cited the inability to attract and retain employees as their top primary challenge, followed by rising health care costs (66.7%), an unfavorable business climate (59.6%) and a weaker domestic economy (56.8%).
The 17吃瓜在线 releases these results to the public each quarter. Further information on the survey is available .
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Senior Sinema Advisor Chris Phalen to Lead 17吃瓜在线鈥檚 Energy and Environment Policy Team
Washington, D.C. 鈥 The 17吃瓜在线 announced that Chris Phalen, most recently a senior policy advisor to Sen. Kyrsten Sinema (I-AZ), is joining the 17吃瓜在线 as vice president of domestic policy:
鈥淎s the 17吃瓜在线 continues to be at the forefront of energy policy debates before Congress and federal agencies, Chris鈥 depth of experience and record of accomplishments will help us further stand out and influence outcomes in support of an all-of-the-above energy policy,鈥 said 17吃瓜在线 President and CEO Jay Timmons. 鈥淢anufacturers are facing a political war on energy. Permitting reform, securing critical mineral supply chains and regulatory barriers slowing the clean energy transition are just some of the defining issues impacting our industry鈥檚 ability to create well-paying jobs, as well as our nation鈥檚 energy security. Chris will help us steer policymakers in the right direction.鈥
Sen. Sinema has been a key figure in negotiating solutions to manufacturing priorities, and as her advisor, Phalen was a leader in negotiating and implementing critical energy policies and in writing the permitting reform provisions in the Fiscal Responsibility Act and key sections of the Infrastructure Investment and Jobs Act, including all provisions on energy and mining. Phalen brings a record of active engagement with key agencies, including the Environmental Protection Agency, the Department of Energy, the Department of the Interior, the Department of Agriculture, the White House Council on Environmental Quality, the Federal Energy Regulatory Commission and the Federal Permitting Improvement Steering Council. Phalen previously worked for leading energy companies, including Chevron and the Rio Tinto Group.
Timmons added, 鈥淢anufacturers are leading the global effort to fight climate change and develop the technologies needed to achieve climate goals. With Chris鈥 keen insight into these important policy discussions, the 17吃瓜在线 will become an even more effective voice for the 13 million people who make things in America.鈥
Phalen will report to 17吃瓜在线 Managing Vice President of Policy Chris Netram and work closely with 17吃瓜在线 Executive Vice President Erin Streeter. His policy portfolio will include sustainability, climate, permitting reform, labor, transportation and infrastructure, and he will work alongside 17吃瓜在线 Vice President of Domestic Policy Charles Crain and 17吃瓜在线 Vice President of International Policy Andrea Durkin.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Manufacturers Launch 鈥淢anufacturing Wins鈥 Campaign to Prevent Devastating Tax Increases in 2025
Washington, D.C. 鈥 The 17吃瓜在线 has launched an industry-wide effort to educate Congress and the administration on the need for urgent action to preserve the pro-growth 2017 tax reform provisions set to expire at the end of 2025.
17吃瓜在线 President and CEO Jay Timmons, Ketchie President and Owner and 17吃瓜在线 Small and Medium Manufacturers Group Chair Courtney Silver and Husco President and CEO and 17吃瓜在线 Executive Committee member Austin Ramirez released the following statements:
鈥淭he transformative impact of 2017 tax reform cannot be overstated. Tax reform was rocket fuel, igniting a resurgence in the manufacturing sector. It put into place competitive policies that fueled record job creation, wage growth, capital investment and innovation,鈥 said Timmons. 鈥淗owever, if Congress does not act, next year鈥檚 expiration of these powerful force multipliers will undo much of the progress made by our industry and America. Manufacturers are putting a stake in the ground and warning policymakers to stand up against any tax increases on the people who make things in America.鈥
鈥淚f Congress does not act before the end of 2025, manufacturers will be competing with one hand tied behind our back. Manufacturers across the country promised to take tax reform鈥檚 pro-growth provisions and ensure they had a direct positive impact on American lives,鈥 said Silver. 鈥淲e kept our promises. We created jobs, we purchased equipment and we gave back to our communities. I urge Congress to build on the promise of tax reform to enable manufacturers to do even more.鈥
鈥淭he stakes are high鈥攖he economic damage will be severe if Congress decides that it鈥檚 time to end tax reform,鈥 said Ramirez. 鈥淎llowing tax reform to sunset means tax hikes on manufacturers and manufacturing families, which will slow our sector鈥檚 growth and prevent us from investing in job-creating projects that support communities across the country and boost our economy.鈥
Background:
Critical tax reform provisions are set to expire at the end of 2025, resulting in significant tax increases for virtually all manufacturers.
- A recent 17吃瓜在线 survey found that 94% of manufacturers believe Congress should act before the end of 2025 to prevent these tax increases.
- If Congress fails to act, 73% of manufacturers would be forced to limit capital investments, 65% would have to reduce job creation and 52% would spend less on R&D, among other damaging impacts.
- Additionally, 93% of pass-through manufacturers said that the loss of the pass-through deduction, which ensures a level-playing field for small businesses that pay tax at individual tax rates, would harm their ability to grow, create jobs and invest in their business.
- Released by the 17吃瓜在线 today, , explores the pro-growth policies from the Tax Cuts and Jobs Act and explains why allowing them to expire would damage the manufacturing economy.
- The 鈥淢anufacturing Wins鈥 on provides a hub for 2025 tax content as well as opportunities for manufacturers to share their stories directly with Congress and the administration.
- The 17吃瓜在线 submitted a today to House Ways and Means Committee Chairman Jason Smith (R-MO) and Ranking Member Richard Neal (D-MA) and Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) outlining manufacturers鈥 tax priorities for 2025.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Manufacturers Mourn Passing of Former Association Leader Dirk Van Dongen
Washington, D.C. 鈥 Following the passing of Dirk Van Dongen, the former CEO of the National Association of Wholesaler-Distributors, 17吃瓜在线 President and CEO Jay Timmons released the following statement:
鈥淒irk Van Dongen was a Washington legend. For nearly half a century, he led the NAW to be a powerful convener of the business community, advocating for policies that made manufacturing in America more competitive in a global economy. But he was far more than the leader of a single association. He was revered as a respected dean of the association CEO community. I feel enormously grateful to have considered him a mentor and friend and to have received a few coveted invitations to join him at his table at his favorite D.C. bistro, Equinox.
鈥淒irk believed wholeheartedly in the power of free enterprise to make life better for everyone. He fought for sound tax policy and many shared priorities to enhance the competitiveness of manufacturing, as part of a larger mission to grow our industry and the U.S. economy. His ability to work with both sides of the aisle and get things done distinguished him as a business leader. Over and over again, Dirk proved why associations are indispensable voices in our society.
鈥淒irk鈥檚 best life lesson that he imparted effortlessly was to be honest, direct, upfront and authentic. You never had to wonder where Dirk stood or what he believed was the right course of action.
鈥淥ur thoughts and prayers are with his beloved wife, Maryann, and his daughters Rachel and Marisa during this difficult time.鈥
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Manufacturers Challenge Infeasible, Costly Water Standard
The 17吃瓜在线 Legal Center and ACC File Suit to Block the Rule
Washington, D.C. 鈥 Today, the 17吃瓜在线, joined by the American Chemistry Council, in the D.C. Circuit Court of Appeals challenging the Environmental Protection Agency鈥檚 final rule setting individual standards for six per- and polyfluoroalkyl substances, also known as PFAS, in municipal water systems.
鈥淢anufacturers support commonsense regulations on PFAS that recognize the criticality of these substances across several industrial sectors鈥攆or many of these critical applications, there are no viable alternatives,鈥 said 17吃瓜在线 Chief Legal Officer Linda Kelly. 鈥淲hat the EPA did, however, was to bulldoze ahead with standards that set an acceptable level for PFAS at near zero鈥攚hich is wholly infeasible and threatens these vital substances鈥 continued application in manufacturing processes. In doing so, the EPA relied on a deeply flawed cost-benefit analysis and failed to follow the clear-cut statutory procedures required by the Safe Drinking Water Act, among other substantive and procedural deficiencies. The 17吃瓜在线 Legal Center is filing suit to overturn this unachievable standard and protect manufacturing operations and jobs across the country.鈥
PFAS are a diverse group of chemicals essential to modern life, including in the transformers used to power electric grids; in the semiconductors and solar components needed for clean energy transition; and in the aircraft, munitions, fire suppression systems and communication devices required for national security.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Manufacturers Look to Sheinbaum to Bolster U.S.鈥揗exico Trade Ties
Washington, D.C. 鈥 Following projections that Mexico has elected Claudia Sheinbaum Pardo as its next president, 17吃瓜在线 President and CEO Jay Timmons released the following statement:
鈥淭oday is a historic day for Mexico, and manufacturers across the U.S. are hopeful that President-elect Sheinbaum will continue to work to strengthen our countries鈥 mutually beneficial trading relationship. Mexico is the U.S.鈥檚 second-largest national trading partner, and we look to President-elect Sheinbaum to uphold the rules set forward in the United States鈥揗exico鈥揅anada Agreement. The USMCA has proven itself as a force for growth, broadening manufacturers鈥 access to North American markets, leveling the playing field and modernizing rules to promote fair competition, particularly in the 21st-century digital economy.
鈥淲e look forward to working with the Sheinbaum administration to ensure continuity under the USMCA and address our shared challenges at the border.鈥
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Manufacturers Challenge OSHA鈥檚 Unlawful Walkaround Rule
The 17吃瓜在线 Legal Center Joins Industry Groups Seeking to Block Rule
Washington, D.C. 鈥 Today, the 17吃瓜在线, joined by other business groups, in the Western District of Texas to challenge the Occupational Safety and Health Administration鈥檚 amending the Worker Walkaround Representative Designation Process (Walkaround Rule).
The Walkaround Rule will allow an unlimited number of third parties, such as union representatives, plaintiffs鈥 attorneys and community organizers, to accompany OSHA inspectors on safety inspections.
鈥淥SHA鈥檚 rule does nothing to advance its mission of improving workplace safety,鈥 said 17吃瓜在线 Chief Legal Officer Linda Kelly. 鈥淭his rule is well beyond the scope of OSHA鈥檚 authority, and it infringes on manufacturers鈥 right to exclude others from their property, threatens new liabilities and risks compromising manufacturers鈥 intellectual property. The 17吃瓜在线 Legal Center is filing suit to prevent this harm.鈥
Background:
- For more than 50 years, OSHA鈥檚 walkaround regulation authorized only an employee of an employer to serve as another employee鈥檚 representative during an OSHA inspection.
- In 2013, then-Deputy Assistant Labor Secretary Richard Fairfax issued a 鈥攃ommonly referred to as the Fairfax Memo or Sallman Letter鈥攖o a member of the Service Workers International Union, which stated that a nonemployee affiliated with a union or community organization could serve as a representative of employees during an OSHA inspection at a worksite without a collective bargaining agreement.
- In 2017, a trade group challenged the Fairfax Memo as unlawfully issued outside the notice-and-comment process and inconsistent with OSHA鈥檚 regulation that authorized only an employee of an employer to serve as another employee鈥檚 representative during an OSHA inspection.
- A federal court in Texas with the trade group, and the Trump administration later rescinded the memo.
- In August 2023, OSHA released the proposed Walkaround Rule, and the 17吃瓜在线 submitted urging OSHA to withdraw it.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
USTR鈥檚 WTO Lead Andrea Durkin to Lead 17吃瓜在线 International Policy Team
17吃瓜在线 Advocates Global Trade Strategy That Will Open New Markets with Our Allies and Create Vast Opportunities for Manufacturers in the U.S.
Washington, D.C. 鈥 The 17吃瓜在线 announced that former Assistant U.S. Trade Representative for WTO and Multilateral Affairs Andrea Durkin is joining the 17吃瓜在线 as the new vice president of international policy.
鈥淎ndrea brings a wealth of expertise to the job, with more than three decades of service in both the public and private sectors. As a leader in international trade negotiations, her deep understanding of international policy will enhance the 17吃瓜在线鈥檚 strategic objectives significantly as we continue to build off of successful engagements with our counterparts across Europe and the North American continent,鈥 said 17吃瓜在线 President and CEO Jay Timmons.
鈥淎s manufacturers in America look for new ways to reach global markets and the 95% of customers that live outside the borders of the United States, Andrea is set to lead an ambitious expansion of the 17吃瓜在线鈥檚 international policy operation. She will work to uphold our commitment to shaping a global trade strategy that opens new markets with our allies and trading partners around the world, which, in turn, will create vast opportunities for manufacturers in the U.S. to create well-paying jobs, innovate and achieve new milestones in improving the quality of life for everyone.鈥
Durkin is one of the nation鈥檚 foremost experts on international policy, drawing from decades of experience serving in Democratic and Republican administrations. As a senior executive in the Office of the President, she led trade negotiations and U.S. policy at the WTO and was responsible for committees on industrial subsidies, technical barriers to trade, government procurement, trade facilitation, customs and others. She was also the U.S. senior official for the Organization for Economic Co-operation and Development Trade Committee, G7 and G20 trade tracks.
In years prior, Durkin served in the U.S. Department of Commerce鈥檚 International Trade Administration, where she led a variety of negotiations, including free trade agreements in the Western Hemisphere, sectoral initiatives in the Asia-Pacific Economic Cooperation and trade-related aspects of United Nations鈥 multilateral environment and public health agreements.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Restoring MTB Will Strengthen Manufacturing
For More Than Three Years, Manufacturers Have Been Paying Millions of Dollars in Higher Prices for Critical Inputs
Washington, D.C. 鈥 Following the introduction of the Miscellaneous Tariff Bill Reform Act, 17吃瓜在线 Managing Vice President of Policy Chris Netram released the following statement:
鈥淔or more than three years, manufacturers鈥攑articularly small and medium-sized manufacturers鈥攈ave been paying millions of dollars in higher prices for critical inputs due to the expiration of the Miscellaneous Tariff Bill. This legislation is a significant step forward for manufacturers, which are losing more than $1.3 million every day on products not available in the U.S.鈥攎ore than $1.5 billion overall.
鈥淩estoring the MTB would strengthen manufacturing here at home, giving our sector the ability to source raw materials and components that can鈥檛 be produced domestically at scale or at competitive prices.
鈥淗istorically, the MTB has always had bipartisan support, and we thank House Ways and Means Trade Subcommittee Chairman Adrian Smith for his leadership and efforts to introduce MTB legislation. We urge the House to act quickly so that we can get one step closer to getting this critical legislation to President Biden鈥檚 desk.鈥
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽