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Policy and Legal

Policy and Legal

SMM Chair: Extend Pro-Growth Tax Policy, Prioritize Permitting and Regulatory Reform

By 17吃瓜在线 News Room

To lift much of the burden on manufacturers in the U.S., Congress must reinstate pro-growth tax measures, enact commonsense regulatory reforms and undertake comprehensive permitting reform. That was the main message of Click Bond CEO and 17吃瓜在线 Small and Medium Manufacturers Group Chair Karl Hutter to legislators yesterday on Capitol Hill.

What鈥檚 going on: 鈥淎merican businesses now shoulder a staggering $3 trillion annually in regulatory costs鈥攄isproportionately impacting manufacturers,鈥 Hutter the House Committee on Small Business at Wednesday鈥檚 hearing.

  • 鈥淯nfortunately, small companies get hit twice鈥攚ith unworkable regulations that apply to them [and again with] compliance and reporting requirements that larger firms are forced to pass down. Fortunately, Congress and the Trump administration have the opportunity to reverse course.鈥 听

Rocket fuel for manufacturing: The 2017 Tax Cuts and Jobs Act 鈥渨as rocket fuel for Click Bond,鈥 said Hutter鈥攚hose Carson City, Nevada鈥揵ased family business makes adhesive-bonded fasteners used by the U.S. military, commercial aviation industry and NASA.

  • 鈥淭he new 21% corporate tax rate allowed us to raise wages for production employees, invest in capital equipment, strengthen our employee tuition support program and accelerate the timeline for constructing a new facility. The new 20% pass-through deduction likewise empowered our suppliers and partners to reinvest in their businesses, readying them to support our growth.鈥澨

Changes for the worse: But growth was halted in 2022 and 2023, when provisions from the TCJA began to expire. : More pro-growth tax measures are due to expire at the end of this year鈥攗nless Congress intervenes.

  • 鈥淚t is now more expensive for Click Bond to conduct R&D, the lifeblood of both our product and process innovation,鈥 according to Hutter. 鈥淚t鈥檚 more expensive for us to purchase capital equipment, the tools that will unleash the productivity of our team. And it鈥檚 more expensive for us to finance job-creating investments such as that state-of-the-art, sustainable manufacturing facility.鈥澨

Ill effects: According to a recent released by the 17吃瓜在线, nearly 6 million American jobs and more than $1 trillion of U.S. GDP will be at risk if Congress fails to act by the end of this year to preserve TCJA鈥檚 pro-manufacturing provisions.

What should be done: Manufacturers everywhere are struggling under the weight of both these provisions鈥 expiration and needless, out-of-date government requirements, Hutter went on. To fix these problems, he said, Congress should:

  • Unwind 鈥渙utdated chemicals reporting requirements that force us to look backward in time and deep into our supply chain鈥;
  • Stop unnecessary permitting roadblocks by the Environmental Protection Agency at the state and local levels;
  • Roll back expensive energy and labor mandates;
  • Undertake 鈥渃omprehensive permitting reform鈥; and
  • the pro-manufacturing tax provisions scheduled to sunset at the end of 2025 and bring back already expired provisions that boosted the sector and the U.S. economy as a whole.

The final say: 鈥淐ongress has a critical opportunity to right-size the regulatory landscape, put an end to permitting delays and protect manufacturers from devastating tax increases,鈥 Hutter concluded. 鈥淚 encourage you to seize [it] 鈥 because when manufacturing wins, America wins.鈥

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