In presenting the Republican tax reform proposal today, House Speaker Paul Ryan (R-Wis.) made the case that the legislation was a boon for middle-class families. A family of four would save $1182 a year under the GOP plan, he stressed repeatedly. According to Plastics Industry Association (PLASTICS; Washington, DC) President and CEO William Carteaux, it also benefits the plastics industry.
|William Carteaux, President and CEO of the Plastics Industry Association.
Carteaux issued a statement today in which he praised provisions in the Tax Cut and Jobs Act that would “help the new manufacturing economy, and assist our members in their effort to continue to succeed, grow and create jobs.” A reduction in the corporate tax rate from the current 35% to 20% and preservation of the research and development (R&D) tax credit are among the parts of the tax reform package that Carteaux found especially appealing.
“Earlier this year during the 2017 Plastics Industry Fly-In, men and women from around the country who depend on America’s plastics manufacturing industry came to Washington to advocate for measures that would help create jobs and make their industry more globally competitive,” said Carteaux. “Among those priorities were a lower corporate tax rate, immediate expensing of capital investments and the preservation of the research and development tax credit.” He also singled out “treatment for S corps” as a positive development.
Most businesses, and the vast majority of small businesses, are taxed as S corporations, or partnerships, explains conservative think tank the Heritage Foundation. The GOP tax proposal would reduce the tax rate these businesses pay from as much as 40% to 25%. There are a number of rules attached to the proposal that complicate the law but that are necessary to prevent higher-income salaries from being “passed through” and taxed at a lower rate, adds the organization on its website.
In his statement, Carteaux drew attention to the proposal's preservation of the R&D tax credit, which he called “critical” for the industry, and the ability to use 529 education savings for apprenticeship programs, “a concept that we discussed with policymakers at our Fly-In. Allowing families to use post-secondary education savings for good-paying, quality career options in the manufacturing sector will help address the industry workforce needs and help provide career options for those who may not best be served by four-year university degree programs," said Carteaux.
“We look forward to continuing our work with the administration and bipartisan leadership in Congress as this important tax package moves forward in the coming weeks,” he concluded.
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