Bipartisan Members Introduce American Manufacturing Competitiveness Act of 2016
WASHINGTON, D.C. – Today, House Ways and Means Chairman Kevin Brady (R-TX), Ranking Member Sander Levin (D-MI), Trade Subcommittee Chairman Dave Reichert (R-WA), Trade Subcommittee Ranking Member Charles B. Rangel (D-NY) and 15 additional members of Congress introduced the American Manufacturing Competitiveness Act of 2016. This bipartisan bill creates an open and transparent process for the House to consider manufacturing tax cuts through the Miscellaneous Tariff Bill (MTB). The new process will help American manufacturers compete in the global market while also upholding the House earmark rules.
Representatives Tiberi (R-OH), Blumenauer (D-OR), Reed (R-NY), Pascrell (D-NJ), Renacci (R-OH), Davis (D-IL), Walker (R-NC), Clyburn (D-SC), Mulvaney (R-SC), Doyle (D-PA), McClintock (R-CA), Bishop (D-GA), Rokita (R-IN), Courtney (D-CT), and Blum (R-IA) are original cosponsors of the bill.
“This bipartisan bill will empower American manufacturers to compete around the world, create new jobs at home, and grow our economy. We’ve also made sure that the new process strictly upholds our earmark ban and that the American people are involved in every step along the way. I appreciate my colleagues’ support and leadership during this process and look forward to moving this bill through our committee very soon,” said Chairman Brady.
“The MTB is a critical tool that supports American manufacturers and workers, and I’m pleased that we’re finally moving forward with this legislation. This bipartisan bill codifies a process for MTBs that will provide our manufacturers the support they need to be competitive. As global conditions in many manufacturing industries continue to toughen, Congress must pass this commonsense legislation,” said Ranking Member Levin.
“Since the last MTB expired in 2012, American companies have faced an annual $748 million tax hike on manufacturing in the United States. This has resulted in a $1.8 billion loss to the U.S. economy, hurting our consumers and making us less competitive. Our bill creates a new process for consideration of manufacturing tax cuts that will lower costs and create more jobs at home while fully complying with our strong ban against earmarks,” said Subcommittee Chairman Reichert.
“This bill creates a new process for the consideration of MTBs that the entire Congress can support and builds on the transparency demonstrated during previous approvals of MTB legislation. In doing so, I expect this bill to receive the bipartisan support that the MTB has always had, and for good reason – the MTB provides much-needed assistance to our domestic manufacturers,” said Subcommittee Ranking Member Rangel.
Background on the 3-Step MTB Process:
First, the new process would begin exclusively through petitions made by local U.S. businesses to the independent, non-partisan International Trade Commission (ITC). After the ITC receives petitions from the business community, an independent panel would receive comments from the public and the Administration and conduct its analysis.
Second, the ITC would issue a public report to Congress with its analysis and recommendations regarding products that meet the MTB standards, including that there is no domestic production.
Third, the Ways and Means Committee would examine the ITC’s recommendations and draft a MTB proposal. While the Committee can exclude products from its final proposal, it cannot add products that were not recommended by the ITC. As required by House rules, Ways and Means would certify that there are no spending earmarks and would publish a list of any Limited Tariff Benefits (LTB). Congress would then consider the MTB within existing rules.
For more details on the new MTB process, click here.