Key Issue Update From National Association of Manufacturers
MTI is partnered with the National Association of Manufacturers through the Council of Manufacturing Associations. The following are key issues being worked on by NAM:
Manufacturers Continue the Fight Against Regulatory Burdens: The regulatory onslaught from government agencies is upon us—the NAM team and CMA partners are actively engaged on more than 90 new or expanded regulations. The latest example is NAM Vice President of Energy and Resources Policy Brandon Farris testifying on the need for project streamlining reforms and the removal of onerous federal regulations to ensure that transportation infrastructure projects are completed in an efficient manner and that the supply chain is not further damaged. See below for highlights from his testimony:
“Manufacturers depend on access to reliable and affordable energy to expand, which is why we support reforms that would foster transparent, streamlined, and timely federal regulatory processes for the siting, permitting and licensing of energy delivery infrastructure of all types. … manufacturers do not believe that expanded domestic energy production, strong environmental protections and a thriving economy are mutually exclusive goals. Permitting reform can help achieve these goals in tandem.”
“The Environmental Protection Agency is taking an aggressive approach toward tightening regulations in several environmental statutes. Unfortunately, these proposed regulatory changes are not based on the best available science, often setting standards at or below limits of detection, making compliance technically infeasible… If instead we make the process more predictable and consolidate the many complex layers of review, the U.S. can continue to build on its strong record of environmental stewardship by boosting domestic manufacturing, which is environmentally cleaner than our international competitors.”
EPA Power Plant Proposal Poses Challenges: Rules proposed by the Biden administration last week to cut greenhouse gas emissions from power plants will cost consumers and manufacturers hundreds of billions of dollars. Under draft rules issued by the EPA, “utilities would begin phasing in … lower air-pollution targets in 2030 and have until 2042 to fully comply with the proposed standards.”
The Clean Power Plan 2.0, as it’s being billed, also aims to cut emissions of particulate matter, nitrogen oxides and sulfur dioxide from coal-fired plants. The proposed rules, whose implementation costs EPA officials have not provided, will raise the utility bill of the average household 2% by 2030, according to the agency—and will require many power plants to purchase and install “costly carbon-capture systems.” This proposed regulation will prove unfeasible. With nearly 60% of our nation’s energy generated from natural gas and coal, this will either require deployment of still nascent technologies at an impractical pace or force those plants to shut down entirely. CMA member, the Edison Electric Institute highlights that carbon emissions from the U.S. power sector are now as low as they were in 1984, while electricity use has climbed 73 percent since then. Read more here.
Bill Introduced Protecting Pass-Through Deduction: On Thursday, Sen. Steve Daines (R-MT) introduced the Main Street Tax Certainty Act, a bill that makes permanent the 20% pass-through business tax deduction for small businesses. Without congressional action, the tax deduction will expire at the end of 2025. Small and medium manufacturers, often organized as pass-through entities, are the backbone of the American supply chain. Section 199A allows pass-throughs to deduct 20% of their qualified business income, enhancing the ability of small firms to reinvest in their businesses and their workers and increasing the resilience of manufacturers in America. The reintroduction of the Main Street Tax Certainty Act will make permanent this crucial tax provision for small businesses as they continue to lead our economic recovery.
Manufacturers Urge Congress to Ensure FTC Fully Supports INFORM Consumers Act: Manufacturers urged House and Senate leaders to ensure the Federal Trade Commission supports full implementation and enforcement of the INFORM Consumers Act, which protects consumers from counterfeit products. Counterfeit products threaten the health and safety of Americans. The inclusion of the INFORM Consumers Act—which requires online marketplaces to verify annually the identity of high-volume sellers, collect basic identification information and provide it to eligible consumers— is a necessary addition in the Consolidated Appropriations Act of 2023. The legislation was signed into law on Dec. 29, 2022, and provides that the INFORM Consumers Act will take effect 180 days after enactment. While the statute provides the FTC with authority to enforce this important anti-counterfeiting measure, manufacturers are concerned that the agency has not taken steps to enforce the rules as of June 27, 2023. The lack of guidance could delay meaningful implementation of these policies beyond the 180-day period mandated by Congress. Read the NAM’s letter to the Committee on Commerce, Science, and Transportation here.
Senator Barrasso Reintroduces Bill to Repeal Book Minimum Tax: On Monday, Senator John Barrasso (R-Wyo.) reintroduced the Book Minimum Tax Repeal Act(S. 1559) to repeal the corporate alternative minimum tax (CAMT) enacted as part of the Inflation Reduction Act. The CAMT imposes a 15% minimum tax on the adjusted financial statement income of large corporations with an average annual financial income exceeding $1 billion. The money raised through this tax is being used to fund many of the provisions in the IRA. Senator Barrasso’s proposed bill repeals the CAMT, allowing the Internal Revenue Code to be applied and administered as if the minimum tax had not been enacted. NAM Managing Vice President of Tax & Domestic Economic Policy Chris Netram “urge[s] Congress to pass this important legislation” that “will help ensure that the next manufacturing dollar is spent in America and enable the growth of family-supporting manufacturing jobs.” The bill is co-sponsored by nine Republican Senators. Read Senator Barrasso’s news release on the proposed legislation here.
Author Unknown, for the National Association of Manufacturers (NAM)