A new bill in Congress seeks to provide tax breaks for U.S. manufacturers.
H.R. 2970, commonly known as the Rebuilding American Manufacturing Act of 2015, was introduced in the House of Representatives earlier this month by Wisconsin Rep. Ron Kind (D) in the hopes of strengthening the domestic manufacturing industry and keeping companies from relocating abroad.
Kind told WSAU that, if passed, the bill would incentivize U.S. manufacturers to stay in the country, as well as providing additional benefits for companies that move their business back to the states.
"It's a reduction in federal tax rates to make it more competitive for domestic manufacturers to keep those businesses in … the United States rather than having to move product lines overseas," Kind said. "If we could reduce the rate so it's at a more competitive level internationally, there's less incentive then for companies to move overseas."
The legislation would create a new tax code for manufacturers by reducing their effective tax rate to 20 percent. WSAU reports that this would benefit businesses that are looking to invest and hire domestically, as they can use their savings to bolster their investments.
Kind claims that these tax breaks, combined with stronger intellectual property protections, commerce, transportation systems and a highly skilled workforce will make manufacturing in America an attractive venture for businesses.
"If we get the policy aligned with certain advantages, this could be a new renaissance for U.S. Manufacturing," he said.
A similar measure was also proposed in the Senate in 2013 by Iowa Sen. Tom Harkin (D), which requires the President to develop a comprehensive national manufacturing strategy. That act is currently in the Senate's Commerce, Science and Transportation Committee awaiting further debate.