A Wisconsin Congressman wants to create new incentives to help strengthen U.S. manufacturing businesses, and encourage them to keep jobs in America.
U.S. Rep. Ron Kind (D-WI) has introduced what he calls the “Rebuilding American Manufacturing Act.” The legislation calls for reducing federal tax rates as a way to incentivize companies to keep manufacturing jobs in the country, and to encourage those already moved abroad to return here. The Wisconsin Democrat argues “if we could reduce the rate, so it’s at a more competitive level internationally, there’s less incentive for companies to move overseas.”
If passed, Kind says the legislation would make it advantageous for manufacturers to stay in the U.S., and also for others to move back to here. “It’s a reduction in federal tax rates to make it more competitive for domestic manufacturers to keep those businesses in Wisconsin and in the United States rather than having to move product lines overseas. If we could reduce the rate so it’s at a more competitive level internationally, there’s less incentive then for companies to move overseas.”
Kind says the Rebuilding American Manufacturing Act creates a new section of the tax code to promote American manufacturing by reducing the effective tax rate of domestic manufacturers to 20 percent. This will provide important benefits to firms that are investing and hiring domestically, and those firms can then use the savings to continue investments in innovation and growth here at home.
He says there are many reasons manufacturers should strongly consider staying in America or moving back to America. “We have very strong intellectual property protections, we have a higher skilled labor force to tap into, we have better commerce, and transportation systems. We have better protection of intellectual property.”
Kind says 16% of our Wisconsin private workforce is involved in the manufacturing sector, which is well above the national average of 9%. He says investing in American manufacturing is critical to remaining competitive in a global economy. “If we get the policy aligned with certain advantages, this could be a new renaissance for U.S. Manufacturing.”