America’s manufacturing workers are at a competitive disadvantage in the global economy because of the nation’s trade, dollar and tax policies. Returning U.S. manufacturing capacity to its former levels is essential because manufacturing fuels research and development, which enables the United States to be a leader in innovation.
What’s needed are “highroad” industrial development policies—increased access to capital investment, technical assistance and workforce training incentives—that modernize and expand the nation’s manufacturing industries, while preserving and creating good manufacturing jobs. Key measures include:
- Fair trade policies that reduce the U.S. trade deficit, protect U.S. trade laws and require inclusion of enforceable workers’ rights and environmental standards in trade agreements.
- Revised tax laws that eliminate incentives for corporations to move production overseas and punish those that do; opposition to reform of the Foreign Sales Corporation (FSC) tax that would encourage shifting manufacturing jobs overseas; replacing FSC with tax incentives that help American manufacturers create U.S. jobs and help workers cope with retiree health care and pension costs.
- Legislation that penalizes companies that incorporate overseas to avoid taxes and denies government contracts to these companies.
- Strengthening the manufacturing base for national defense and homeland security through procurement reform, enhanced “Buy American” requirements, an updated assessment of critical defense manufacturing capabilities and limits to “offsets” that drain critical technology and good jobs.
