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