The American Foundry Society is warning lawmakers that U.S. metalcasters will be harmed by a new federal spending package that would significantly hike the tax burden on businesses and stifle the nation’s economic recovery.
House committees finished marking up the Biden Administration’s social spending package on Sept. 15, advancing $2.1 trillion in tax increases and a variety of new mandates to pay for the plans. Several obstacles remain for passage. These proposals will adversely affect metalcasters of all sizes, as well as their suppliers and customers. A summary of these tax changes can be found here.
AFS has reached out to Congressional lawmakers and signed onto coalition letters highlighting our opposition and key concerns with the sweeping tax increases proposed in the $3.5 trillion budget reconciliation bill. These tax increases could derail the country’s ongoing economic recovery, suppress capital investment, and stunt wage growth.
“Amid the ongoing pandemic, inflation, supply chain challenges, and workforce shortages, increased taxes and new mandates will harm U.S. metalcasters and their employees, and stall our nation’s economic recovery,” said AFS CEO Doug Kurkul.
Some of the House tax increases and new mandates approved at committee level include:
- Curtailing the Small Business Deduction (Section 199A)
- Raising the top corporate tax rate from 21% to 26.5%
- Increasing the effective top capital gains rate from 23.8% to 28.8%
- Imposing a new 3% surtax that includes business income
- Raising the income tax rate on individuals from 37% to 39.6%
- Creating a new 3.8% net investment income tax on active pass-through business income
- Producing a new federal paid family and medical leave program – up to 12 weeks of paid family leave per year for all workers with benefits paid by the Treasury Department
- Increasing OSHA fines by a factor of 10, to as high as $700,000 for a maximum penalty, and National Labor Relations Act violations of $50,000-$100,000
Key Senate committees are working on their legislative proposals and revenue-raising options for inclusion in their budget reconciliation legislation. The Senate would likely take whatever passes the House, change it, and send it back to the House. It is likely that the timeframe will be pushed into October.
Take action! Tell your lawmakers: “No mandates or tax increases on metalcasters.” Congress needs to hear from metalcasters that it is not the time to pursue policies that will hurt competitiveness, and specifically, how these tax increases and new mandates will harm your business, employees, and customers. A sample email message can be downloaded here.