The Sconi

During a time when manufacturers are already struggling with an impending recession amid inflation and supply-chain disruptions, they are about to be overwhelmed by the Left's book minimum tax proposal, according to new analysis results from the nonpartisan Joint Committee on Taxation (JCT).

The analysis suggests that half of the $313 billion book minimum tax increase would be borne by manufacturers across the country and in Wisconsin.

“The JCT confirmed what we have been saying for over a year: this fundamentally flawed proposal, which has not been properly vetted by either Congressional tax-writing committee, risks severely harming American manufacturers, exacerbating supply-chain disruptions, and ultimately costing U.S. jobs and investment," said U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho). “This is a domestic manufacturing tax, plain and simple. Now is not the time to resurrect a harmful policy that would overwhelmingly hit American manufacturers and supply chains, as well as undercut critical research and development and investment in emerging technologies.”

The Democrats’ latest tax-and-spend bill places a 15% minimum tax on corporations. If it becomes law, the proposal would raise companies’ tax bills until they reach that minimum rate. According to the JCT analysis, 49.7% of the book minimum tax would be endured by the manufacturing industry. 

The plan would affect approximately 150 companies annually and raise about $313 billion over a decade. The committee estimates nearly half of the revenue would come from manufacturers, according to the U.S. Senate Committee on Finance. 

The U.S. Senate Committee on Finance suggests that despite Democrats' claims, the book minimum tax does not close tax loopholes. Tax depreciation rules were intentionally designed by Congress to support domestic investment, the committee says. The Democrats’ tax on U.S. manufacturers would eliminate that benefit.

The minimum-tax proposal is part of an agreement reached last week by Senate Majority Leader Chuck Schumer (D.- NY) and Sen. Joe Manchin (D-WV.), the Wall Street Journal reports. The bill, which Schumer is trying to get all 50 members of the Senate Democratic caucus to back, raises money for healthcare spending and climate-change initiatives.           

According to Industry Select, the top 10 manufacturing companies in Wisconsin are Kohler, Co., Ashley Furniture Industries, Inc., Mercury Marine, Rockwell Automation, Inc. and Greenheck Fan Corp.  The top manufacturers are primarily located in Milwaukee, Green Bay, Madison and Appleton.