The NAM pushed back aggressively after the U.S. Senate passed reconciliation legislation Sunday, voicing continued opposition to proposed tax increases and anti-innovation policies included in the bill. NAM President and CEO Jay Timmons appeared on CNBC yesterday to discuss the legislation and its impact on manufacturing.
The big picture: With its large price tag of more than $700 billion and new tax policies that impact investment and innovation, the NAM believes the bill will harm the state of American manufacturing—especially in an economy battling supply chain issues and high inflation rates.
- “The NAM remains staunchly opposed to [this legislation],” said Timmons. “It increases taxes on manufacturers in America, undermining our competitiveness while we are facing harsh economic headwinds, such as supply chain disruptions and the highest rate of inflation in decades.”
An NAM victory: While the NAM achieved a significant victory by working with Sen. Kyrsten Sinema (D-AZ) to ensure some harmful taxes would be stripped from the final legislation, remaining provisions of the bill would damage the manufacturing industry’s ability to succeed and thrive.
- “We appreciate that the ‘book tax’ has been revised to reflect the importance of job-creating investments in machinery and equipment,” said Timmons. “But that is insufficient. These new taxes will still deliver a blow to our industry’s ability to raise wages, hire workers and invest in our communities.”
- “In addition, the proposed direct negotiations over prescription drugs are a form of price setting and antithetical to the open marketplace of the Medicare Part D program. Pursuing price control policies could threaten future innovation and cures.”
Break it up: The NAM also argued that the “desirable” components of this bill should be pursued separately.
- “Any desirable elements of this bill can and should be pursued as standalone legislation,” said Timmons. “As a whole, the bill simply does not position our industry or our country for future growth or global economic leadership and competitiveness, so we urge all lawmakers to stand with us and reject it.”
On the ground: State business organizations also pushed back against the bill. Arizona Chamber of Commerce & Industry President and CEO Danny Seiden argued that the bill would impact American businesses and health care access for patients negatively.
- “Hitting businesses with a complicated and onerous new ‘book tax’ and imposing government drug price controls that limit access to new cures and therapies will only harm patients and undermine U.S. competitiveness,” said Seiden.
The bottom line: “This legislation will stifle manufacturing investment in America, undermining the very businesses that saved humanity during a pandemic and kept our economy afloat during the worst period of economic uncertainty in our lifetimes,” Timmons tweeted.