Tuesday, September 20, 2011

How President Obama's Proposed "American Jobs Act" will help manufacturing

In addition to the proposed  $50 billion investment in infrastructure, the plan could result in thousands of manufacturing jobs – upwards of 1 million, according to some estimates. And since we know every manufacturing job pays on average 10-50 percent more than service sector jobs and supports five more jobs in a community, the ripple effect could be huge. 

The jobs plan is also a good reason to push other parts of our agenda, including the creation and implementation of a coordinated manufacturing policy that would:

•        Establish a national infrastructure bank to leverage capital for large-scale transportation and energy projects.
•        Reshape the tax code in a revenue neutral way to provide incentives for job creation and investment. Research and Development tax credits should help firms that not only   innovate in America but also make their products here.
•        Lower tax rates for manufacturing activity in America and eliminate tax shelters for hedge funds or financial transactions that have no real value.
•        Consistent with our international obligations, apply "Buy America" domestic content provisions to all federal spending to ensure that American workers and businesses get the first shot at procurement contracts.
•        Shift some education investment to rebuilding our vocational and technical skills program, which would address looming shortages in the manufacturing sector.
•        Refocus the trade agenda by giving American businesses new tools to counter China's currency manipulation, industrial subsidies, intellectual property theft and barriers to market access.
•        Condition new federal loan guarantees for energy projects on the utilization of domestic supply chains for construction.

Focusing on manufacturing not only helps solve the need for jobs, but also will lower our trade deficit, which will make it easier for America to pay its bills.

We simply cannot continue to allow Congress to do nothing to address our jobs crisis! 

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