Manufacturers intervene as Congress negotiates China competition bill
As Congress enters formal negotiations to find a compromise on the details of the legislation aimed at strengthening the country’s ability to compete with China, American manufacturers have given their opinions on the matter.
The National Manufacturers Association sent a letter to congressional leaders Thursday as dozens of lawmakers gathered for a “conference committee” to work out how to bridge the gap between the two separate bills from the chambers: the law US Innovation and Competition Senate and House Act. America COMPETES Act.
The trade association outlined ten priorities that began with praise for the $52 billion in semiconductor manufacturing subsidies included in the two pieces of legislation, and support for an additional $45 billion to create a program manufacturing safety and resilience, as proposed in House legislation to help facilitate supply. chain woes.
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Manufacturers also voiced support for the Ocean Shipping Reform Act aimed at increasing the efficiency of U.S. ports, and provisions that prevent counterfeiting of goods, writing that “counterfeiting, especially from China, is hitting manufacturers of all shapes and sizes, but is particularly devastating for small and medium-sized manufacturers struggling to protect their core products.”
NAM also called on Congress to reauthorize the miscellaneous tariff bill “with full retroactivity to January 1, 2021, and without the broad and arbitrary restrictions included in the America COMPETES Act for future cycles of MTB”. The organization said that since the law expired at the end of 2020, “manufacturers and other businesses have paid more than $500 million in tariffs, or $1.3 million a day, on goods that are not available in the United States, adding inflationary measures and anti-competitive costs.”
The makers also called on lawmakers to reverse a recent tax code change that now requires research and development costs to be amortized over a period of years rather than deducted immediately as the code allowed from 1954 until this year.
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“This harmful change in the tax treatment of R&D expenditures comes at a time of increasingly fierce global competition for research dollars,” NAM wrote. “Because of this tax change, the United States is now only one of two developed countries to impose a depreciation requirement (the other being Belgium). Meanwhile, China, which has no making no secret of its intention to become the world leader in advanced manufacturing, has increased its super deduction for R&D expenses to an additional 100% of qualifying R&D expenses on top of the R&D expenses actually incurred.”
The final point of the letter called on participants to remove provisions from the House bill that would help unions’ ability to organize, saying “manufacturers strongly oppose the labor and card control provisions included in the America COMPETES Act”.
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The letter asserted that “implementing rash labor and card verification provisions would upend decades of labor precedent with an anti-competitive, undemocratic process that abolishes the secret ballot and eliminates proper oversight.”
Tyler Olson of FOX Business and Reuters contributed to this report.