“So we have a huge opportunity, at this moment, to bring manufacturing back. But we have to seize it. Tonight, my message to business leaders is simple: Ask yourselves what you can do to bring jobs back to your country, and your country will do everything we can to help you succeed.” – Obama’s 2012 State of the Union
President Obama is not wrong that America has an opportunity to grow its manufacturing base, but if we follow his prescription of higher taxes (especially on investment), empowering unions, and more regulation than it will be a lost opportunity.
But don’t take our word for it. Here’s the National Association of Manufacturer’s recent letter to President Obama following the announcement of the so-called American Jobs Act – a plan eerily similar to the vague outline laid out in his State of the Union:
“President Obama’s call for tax increases on small businesses, individuals and investors is a poison pill for our economy. The bottom line is that manufacturers need policies that enable them to hire more workers, make capital investments and expand their businesses. More than 70 percent of manufacturers operate as S-corporations and pay income tax at the individual rate, so higher taxes on these job creators would be a devastating blow. The President’s proposal is short-sighted; we should not attempt to solve our nation’s fiscal ills on the backs of businesses striving to expand and add jobs.”