AEM’s tax policy agenda is centered around a number of issues of particular importance to equipment manufacturers, including the corporate tax rate, bonus depreciation and Sec. 179 expensing, the estate tax, agriculture equipment depreciation, the R&D tax credit and specific provisions of the international tax code. At the same time, AEM actively assesses the prospects for an overhaul of our nation’s tax system, which with extremely high rates, a host of temporary provisions and out-of-date international rules, has created an uncertain environment that undermines equipment manufacturers’ ability to compete and success in the global marketplace.
In June House Republicans released their highly anticipated tax reform blueprint that calls for cutting taxes for corporations, passthrough businesses, and most individuals; adopting a territorial system for taxing foreign-source income of U.S. multinationals; and moving the U.S. toward a cash-flow tax system without adopting an explicit consumption levy such as a national sales tax or value-added tax. President-elect Trump, Speaker Ryan and Chairman Brady have all indicated that comprehensive tax reform is top policy priority next year.
AEM believes that comprehensive tax reform is essential to unleashing the economic power of equipment manufacturing, and making the United States the best place in the world to manufacture and attract foreign direct investment. While AEM is a strong advocate for comprehensive reform of our current tax code, it is essential that any such effort results in a balanced, fiscally responsible plan that allows equipment manufacturers in the United States to prosper, grow and create jobs that enhance their global competitiveness.