Earlier this morning, the House of Representatives passed a $2 trillion spending bill designed to overhaul health care, education, climate, immigration and tax laws, according to The Wall Street Journal (subscription).
What’s in it: “The sprawling bill calls for creating a universal prekindergarten program, capping child-care costs for many families, negotiating lower prescription drug prices and expanding tax credits for reducing carbon emissions, among other programs. In addition to expanding tax enforcement efforts at the Internal Revenue Service, the legislation raises taxes on some corporations and very high-income Americans.”
What’s next: The bill will still face a vote in the Senate, where it will need to gain the support of 50 senators plus Vice President Kamala Harris under the rules of reconciliation. The timeline for that process is not yet clear.
What we’re saying: “This bill, regardless of its intentions, is paid for by taxes that will hit manufacturers harder than other industries,” said NAM President and CEO Jay Timmons. “We oppose this legislation that would stifle our ability to expand our operations, hire more workers and raise wages and benefits. This comes at a time when Americans are counting on manufacturers to lead our recovery and respond to supply chain challenges. The ‘book tax’ in particular harms manufacturers more than others because it increases the cost of machinery and equipment purchases, which are central to manufacturers’ operations and our ability to create and support American jobs. The tax reforms of 2017 gave manufacturers the tools to invest in our people and our communities, making 2018 the best year for manufacturing job creation in more than two decades. We should build on that progress—not return to archaic tax policies or target manufacturers with new taxes.”
More: “We also strongly oppose the new provisions on drug pricing that will slow down pharmaceutical manufacturers’ capability to further accelerate the type of innovation that helped us fight back against COVID-19,” said Timmons. “Congress should not be putting future cures at risk. Manufacturers call on senators to oppose this bill.”
Related: The Congressional Budget Office yesterday released its estimate, concluding that “enacting this legislation would result in a net increase in the deficit totaling $367 billion over the 2022–2031 period, not counting any additional revenue that may be generated by additional funding for tax enforcement,” reports Fox Business.