East Idaho Times

Senator Mike Crapo, the U.S. Senate Finance Committee Ranking Member, highlighted the importance of tax policies and domestic manufacturing during a hearing titled “American Made: Growing U.S. Manufacturing Through the Tax Code.”

President Biden's tax proposals were a focal point of discussion, with Crapo expressing concerns about the potential impact on American manufacturers. Quoting Biden, Crapo remarked, "During last Thursday’s State of the Union address, using ‘fair share’ rhetoric, President Biden laid out his plans for making American manufacturers more competitive: tax them more."

Crapo criticized Biden's proposed corporate tax rate increase, stating that it would leave the U.S. with one of the highest rates globally. He emphasized the significance of tax rates on investment decisions, echoing former President Obama’s economic advisor, Jason Furman, who said, "taxes actually do matter."

The Senator highlighted the positive outcomes of the Tax Cuts and Jobs Act (TCJA) of 2017, which led to significant growth in the manufacturing sector. He underscored the importance of a competitive tax system in driving investment and job creation, referencing the success of past pro-growth policies.

Crapo also emphasized the need for stability in tax policy to support strong manufacturing in the United States, urging the protection and expansion of pro-growth tax policies. Additionally, he discussed bipartisan efforts to strengthen the domestic semiconductor supply chain, citing the Advanced Manufacturing Investment Credit (AMIC) as a successful initiative.

In conclusion, Senator Crapo called for continued support for domestic manufacturing, particularly in addressing challenges such as the global semiconductor shortage and supply chain issues. He urged Congress to scrutinize proposed legislation to ensure it effectively promotes American competitiveness and national security.

The hearing provided a platform for discussions on critical issues impacting the manufacturing sector, with Senator Crapo advocating for policies that foster growth and innovation in domestic industries.