​Bold tax reform is making its way through Congress thanks to the efforts of manufacturers like you making their voices heard.
 
Following last week’s 24-16 vote of approval from the House Ways & Means Committee, a House floor vote on tax reform is imminent this week. Last week, manufacturers let committee members know that tax reform was a priority, but now every member of the House needs to hear that same message reinforced.

The Washington Examiner (7/17, Weaver) reports that “Reps. Mike Kelly (R-PA) and Ron Kind (D-WA), with Sens. Chris Coons (D-DE) and Pat Roberts (R-KS) have introduced the Invent and Manufacture in America Act, a bill that would give a tax credit to companies that not only conduct research and development, but also manufacture products resulting from that R&D as well.” The article quotes Rep. Kelly saying, “I’m from the private sector. What we’ve found that works best: If you want to do something, you usually incentivize any good behavior.” Rep. Kelly emphasized the importance of tax reform to manufacturing, saying, “So, we’re looking at the loss of jobs we’ve had – manufacturing jobs, the number of manufacturing plants have closed, and when you ask them why is it that you’ve closed ... why did you choose to actually assemble it someplace else, it’s usually because of a more favorable tax situation.” ​

Gov. Eric Greitens has signed a bill that forbids the State of Missouri from collecting sales tax on delivery fees. The law is a response to a 2015 Missouri Supreme Court ruling, Alberici Constructors Inc. v. Director of Revenue, that allowed the taxation of delivery fees charged to bring a crane to a construction worksite. This ruling opened the door to additional taxes on delivery fees.

Prior to the court ruling, Missouri allowed separately stated shipping/delivery fees to be exempt from the tax base. However, after the court ruling, the Missouri Department of Revenue sent out notification to corporate taxpayers that if delivery is intended to be part of the sale of a product, the charge would be subject to Missouri sales tax, even when separately stated.

The Missouri Chamber of Commerce and Industry led the push to stop this tax grab, working with Sen. Will Kraus, a Republican from Lee’s Summit, to advance Senate Bill 16. The bill was passed by the legislature and signed into law by Gov. Greitens on July 5.

Source: mochamber.com

The Hill (7/7, Jagoda) reported that “the Treasury Department on Friday identified eight tax regulations that it plans to suggest changes to, following a review that was directed by President Trump.” The Hill added, “Among the rules the Treasury plans to propose reforms to are regulations the Obama administration issued relating to offshore tax deals and the estate tax, which have been opposed by GOP lawmakers and business groups.”
The Trump Administration had ordered the department “to issue a report that identifies regulations that impose an ‘undue financial burden’ on taxpayers, add ‘undue complexity’ to tax laws or increase or exceed the IRS’s statutory authority.”

Dow Jones Newswires (7/7, Rubin, Subscription Publication) reported that “a rule limiting the tax benefits of intercompany loans was among the Obama administration’s most controversial and tax experts had expected it to appear on Treasury’s target list.” The article quoted a department statement saying, “Treasury intends to propose reforms – potentially ranging from streamlining problematic rule provisions to full repeal – to mitigate the burdens of these regulations in a final report submitted to the president.”

In a column for Shopfloor (7/7), NAM Vice President for Tax and Domestic Economic Policy Dorothy Coleman wrote that the list of possible changes to tax regulations includes “four regulation projects of specific concern to manufacturers: Sec. 385 debt-equity rules, proposed rules on valuing minority interests in family-owned businesses, rules for calculating gains and losses on currency exchanges and regulations allowing contractors hired by the Internal Revenue Service (IRS) to fully participate in summons interviews and receive summoned documents.” In urging the repeal or withdrawal of the proposals, Coleman stated that “manufacturers applaud Treasury for acting decisively to begin to address the onerous, costly and unnecessary burden these tax regulations impose on manufacturers.” ​

Source: NAM.org

Updated May 19 with Gov. Eric Greitens' plans to campaign for the legislation  — Missouri lawmakers will return to Jefferson City next week to consider legislation aimed at boosting the chances that the Noranda aluminum smelter plant will reopen and that a new steel plant will be built.

Gov. Eric Greitens is holding four rallies Saturday to promote legislation he says will help both southeast Missouri projects. The session will begin at 4 p.m. Monday.

Greitens' rallies include one at the Noranda site in New Madrid, as well as others in Poplar Bluff, Dexter and Sikeston.

"The people want action, and they want results," the governor said in a statement. "We’re headed to southeast Missouri to fight for these jobs with the people. Together, we’re sending a message to the politicians in Jefferson City: No more excuses. We demand results. We’re encouraging everyone to come out and join us so that we can win these jobs.”

Greitens wants the General Assembly to approve a bill, which died during the last week of the regular session, that would allow the state’s Public Service Commission to negotiate lower utility rates for the two projects. Ameren, which would provide the electrical power, says it has no objections to the idea. the utility previously has argued that lower rates for commercial projects means higher rates for other consumers.
"Some career politicians failed to do their jobs and then went home. That’s wrong," Greitens said in his special-session announcement on Thursday. "We’re cancelling their summer vacations and calling a special session to get this done."

The House voted 148-2 for an amendment by Republican Rep. Don Rone of Portageville that authorizes the PSC to pursue the matter, but the Senate failed to act. 
Rone said other states were seeking to woo the proposed steel plant, proposed to be constructed near New Madrid, in the southeast corner of the state, and that Missouri needed to act fast. In an emotional floor speech, he told lawmakers that the two projects could provide 500 jobs to an area hard hit by the Noranda plant closing last year.

In an interview with St. Louis Public Radio on Thursday, Rone said he was grateful that Greitens called a special session. He said the aluminum plant and the steel plant could bring hundreds of high-paying jobs to a region of the state that's struggled with poverty.
“For the people of the Bootheel: From Cape Girardeau to Arkansas and from Poplar Bluff to the River, those people now have hope,” Rone said. 

Noranda had been southeast Missouri’s largest source of jobs — at its peak employing about 900 people. It had closed because of the decline in aluminum prices. Noranda also had been the state’s largest consumer of electrical power, needing on a typical day as much power as the entire city of Springfield, according to Ameren.

Some critics of Rone's proposal worry that lowering the electricity rate for some businesses could cause electricity bills to go up elsewhere.

State Sen. Doug Libla, a Republican who represents much of southeast Missouri, says he doesn't object to lower rates for the projects. But Libla contends that Rone's proposal is too broad and would curb the PSC's oversight powers over Ameren and other utilities. Libla also says there are other types of incentives available to attract industry that don't involve utility rates.

“They have attached a lot of anti-consumer legislation to it. So that’s what I’m opposed to," Libla said.

And Rep. Nick Schroer, R-O'Fallon, said while he's heartened by the possibility of more jobs coming to the Bootheel, he wants to make sure Rone's bill doesn't hurt consumers.
“So I want to make sure that before I push the red or green button on Monday or whenever we deal with this that it is going to be the right thing for that part of the state but for all Missourians,” Schroer said.

Rone said his bill also provides the opportunity for Ameren to upgrade its electrical grid. He said that could ultimately cause rates to go down if Ameren is spending less money on fixing faulty equipment. 

Source: St. Louis Public Radio