AEM President Dennis Slater issued the following statement in response to the tax reform framework released on Wednesday by members of Congress:
AEM members support a simpler tax code that provides relief to both conventional corporations and “pass-through” businesses, a designation which includes a number of equipment manufacturers and their customers.
The unified tax reform framework released today by leaders in Congress goes great lengths toward meeting AEM members’ goals. Equipment manufacturers currently suffer from a tax code that puts U.S. manufacturers at a disadvantage versus our global competitors. Our industry stands with those in Congress who propose commonsense, permanent tax relief that will renew America’s manufacturing strength.
The current debate over tax reform is a moment of truth for our elected leaders. We will work in the coming months to encourage members of Congress in both parties to deliver on their pledge to advance pro-growth tax reform that supports manufacturing in America.
President Trump on Wednesday unveiled details of his plans on tax reform, which included tax cuts for both individuals and businesses.
The proposal calls for reducing the corporate tax rate to 20 percent from 35 percent, and it also aims to collapse individual tax brackets from seven to three, with tax rates of 12 percent, 25 percent and 35 percent. In addition, a new tax rate for what's known as "pass-through" businesses -- partnerships and sole proprietorships -- would be taxed at a rate of 25 percent, as opposed to the individual rate of the owners. In addition, elimination of the state and local tax deduction, as well as some business deductions and most itemized deductions was proposed.