Manufacturing Execs See Promise in Tax Plan

Cutting corporate taxes would help the manufacturing sector more than others, which is why it made sense last week for President Trump to discuss his tax reform plan with the National Association of Manufacturers.

One of the principles of Trump’s tax plan is to bring the 35 percent corporate tax rate down to 20 percent. Tony Bennett, president of the Texas Association of Manufacturers, said that for the majority of U.S. manufacturers, which file taxes as sole proprietors or S corporations, their tax rate will be capped at 25 percent.

“Manufacturing jobs are known to be at the core of any robust economy,” Bennett said. “Anything that the federal government can do on the corporate tax rate would probably be one of the most tremendous things they can do to stimulate the economy.”

Think of this example: When a manufacturing plant opens, it’s not only creating jobs at the facility but adding opportunities for its suppliers.

Those suppliers may bolster their presence near the plant to reduce logistical costs, which also contributes to the local economy. Between two and six indirect jobs are created for every direct manufacturing job added to the economy, Bennett said.   Source: Dallas Business Journal