The Tax Reduction and Reform Act (H.R. 3970), sponsored by Rep. Charles Rangel, would be harmful to U.S. businesses and result in job losses, according to a report from the Manufacturers Alliance/MAPI.
Economic Consultant Jeremy Leonard says that the tax increases on non-corporate firms associated with repeal of the Alternative Minimum Tax (AMT) and corporate base broadening would offset reduction in the statutory federal corporate tax rate from 35 to 30.5 percent. The new system would be counter-productive and impose a significant tax increase on manufacturers — as much as $100 billion over the next 10 years.
Using macroeconomic simulations to measure potential effects of the bill, MAPI projects the loss of 4.9 million jobs and over $300 billion in output over 10 years. Manufacturers would lose $130 billion in output and 446,000 jobs.
Source: Manufacturing.Net
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