What it is: Included in the Build Back Better framework, the book tax imposes a 15% minimum tax on the financial statement—or book income—of corporations with over $1 billion in profits. The provision would be effective for tax years beginning after Dec. 31, 2022. What NAM is saying: “Employing more than 12 million people who make things in America, paying employees nearly 24% more than the average for all businesses and having the largest economic impact of any major sector, the manufacturing industry has been helping to lead the economic recovery,” said NAM Vice President of Tax and Domestic Economic Policy Chris Netram. “However, imposing a book tax would not only undermine the recovery but also make it harder for the next manufacturing dollar to be spent in America, negatively impacting growth in family-supporting American manufacturing jobs.”
What we’re doing: The NAM is urging Congress to oppose the inclusion of a book tax in reconciliation legislation.
Supply woes persist: “Supply chain disruptions, logistics challenges, workforce shortage and soaring costs have dampened demand. Indices for the backlog of orders (down from 64.8 to 63.6), supplier delivery times (up from 73.4 to 75.6) and customer inventories (unchanged at 31.7) were consistent with still-significant supply chain problems in the sector.”
Production stays steady: “Meanwhile, production growth (down from 59.4 to 59.3) was little changed, with exports (up from 53.4 to 54.6) improving and imports (down from 54.9 to 49.1) declining.”