Simplified tax code helps small manufacturers

NTMA member Sam Griffith testifies before House committee looking at tax system overhaul


In testimony April 10 before the U.S. House Committee on Small Business, a manufacturer and member of the National Tooling and Machining Association called for a simplified tax code that benefitted small businesses.

Sam Griffith, president and CEO of National Jet Company in LaVale, Md., said the nation needed “a reformed tax code that encourages manufacturing in America and helps our small businesses compete globally in the 21st century.”  Griffith, an NTMA member, testified before a hearing on “Small Business Tax Reform: Growth Through Simplicity.”

In 1992, Griffith purchased National Jet, a precision micro drilling technology company serving the aerospace, automotive, electrical, medical, and textile industries.  National Jet is structured as a subchapter S Corporation, meaning all income flows into Griffith’s personal tax return.  The company has 24 employees and has added two new employees in the last four months.

“The National Tooling and Machining Association and I wholeheartedly support tax reform that includes real reform for both C Corporations and pass-through companies, which make up the majority of small businesses in this country,” Griffith told the committee. “We desperately need lower rates, simplification of rules and elimination of the sunset provisions in the tax code to allow us to compete globally. It is very difficult to plan into the future when there is such uncertainty in the tax code. No one likes a moving target, and for the last 10 years it has been a nightmare to plan.

“We recognize that policymakers face many difficult decisions ahead in reforming the tax code,” Griffith added. “You will have to decide which deductions and credits you will eliminate or keep in place. However, to remain globally competitive, small businesses use several credits and deductions to free up resources to reinvest back in our business.  While each year is different, in 2010, National Jet Company reinvested 137% of our net income into the company and in 2011 we reinvested 112% back into the company.

“Our greatest concern is a seeming obsession with corporate-only tax reform—a path which leaves America’s small businesses and 81% of U.S. manufacturers behind. I believe we must develop a reformed tax code which encourages manufacturing in America and helps our small businesses compete globally in the 21st Century. We have a stake in this great country and we want our voice heard.”

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.