Congress is considering two separate spending bills that could impact the composite panel industry. The first is a $1.1 trillion bi-partisan bill that would fund investments in American infrastructure, including roads, bridges and dams. It would be funded primarily through user fees and other pre-existing funding mechanisms.
The second bill targets investments in “social infrastructure,” that includes, expansions of Medicare and Medicaid, home health care services, childcare services, among other issues, and several programs to address climate change. This bill is valued at $3.5 trillion and currently includes more than $2.2 trillion in proposed tax increases to fund the new spending. The proposed tax increases would raise the federal corporate rate from 21% to 26.5% and capital gains from 20% to 25%, and eliminate the 20% investment tax reduction for pass-through businesses, such as S corporations effective for the 2022 tax year. These proposed tax changes would largely undo the 2017 tax reforms, which were designed to promote investments in U.S. businesses and employees, particularly manufacturers.
The debate in Washington on this legislation will come to a head over the next few weeks. CPA members have a few options to express concerns on these matters. The National Association of Manufacturers (NAM) is planning to send a letter to Congress in the coming week and is soliciting signatories, including from associations and individual companies. CPA is already a signatory to the NAM letter. Additionally, NAM has also developed an online resource center to support advocacy, including a number of resources that members may employ. See NAM Sign-on Letter and NAM Tax Action Center. More Info: Andy O’Hare