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Manufacturers: Tax Hikes in President’s Budget Hurt Competitiveness

In a press release, the National Association of Manufacturers (4/11) Vice President of Tax and Domestic Economic Policy Dorothy Coleman issued a statement in response to the release of the President’s budget for fiscal year 2014. “Over the past five years, manufacturers have weathered difficult economic times, succeeding in the face of slow growth and serious fiscal challenges. We have offered a Growth Agenda that calls for pro-growth, pro-jobs reforms to set our country on the right path toward fiscal responsibility and renewed global competitiveness.” Coleman said, “The budget process offers an opportunity to reset our priorities and make a commitment to growing the economy. Unfortunately, despite a few positive points, the President’s budget falls short of that goal.” She also said, “The President’s budget is based in the misguided assumption that tax increases can solve our fiscal problems. In fact, a $580 billion tax increase will only fuel the headwinds manufacturers face, making them even less competitive and threatening economic growth and US jobs.”

The AP (4/11) reports, “Mixing modest curbs on spending with tax increases reviled by Republicans, President Barack Obama proposed a $3.8 trillion budget Wednesday that would raise taxes on smokers and wealthy Americans and trim Social Security benefits for millions.”

McClatchy (4/11, Clark) reports, “Obama cast his 2014 proposal as a “fiscally responsible blueprint for middle-class jobs and growth,” mixing increases in spending on manufacturing, research and construction with tax hikes for the rich and a slowdown in the growth of entitlements. His proposal includes $1 billion to open 15 ‘manufacturing innovation institutes’; $50 billion for upgrades to roads, bridges and other infrastructure; plus money for 100,000 science and math teachers.”Bloomberg News (4/11, Rubin) reports, “For the first time, Obama set aside some business tax increases to pay for a future corporate rate cut and in the process showed how difficult the effort would be. The $95 billion reserve – funded largely with tax increases on US companies’ foreign earnings – would cover a rate reduction of about one percentage point, not the seven points sought by Obama or the 10 favored by House Republicans.”

The New York Times (4/11, Calmes, Subscription Publication), the Washington Post (4/11, Ehrenfreund), Politico (4/11, Epstein, Samuelsohn) and other media sources also cover the story.

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