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.”
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
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Read more: 2015 Salary Survey