MSCI Asks U.S. Lawmakers Not To Raise Taxes On Businesses, Families

On October 13, the Metals Service Center Institute (MSCI) joined the National Association of Manufacturers (NAM) and more than 450 other manufacturing organizations from all 50 states in sending a letter to U.S. House and Senate leaders asking that they not raise taxes on U.S. businesses and families. As Connecting the Dots has reported, the White House and Democrats in Congress have proposed more than $2 trillion in new taxes as part of their fiscal year 2022 budget reconciliation.

The NAM/MSCI letter, which is available here, said the proposals under consideration would make it harder for manufacturers to continue this growth because:

• Higher individual and corporate tax rates would reduce capital that small manufacturers could reinvest in their firms;
• Changes to the international tax system would negatively impact globally-engaged companies by undermining their ability to successfully compete in foreign markets and thus directly harming U.S. job creation and investment;
• Limits on deductions (such as deductions for income earned by pass-through entities and interest on business loans) would make it more difficult to fund new equipment purchases; and
• Proposals to tax the transfer of firms to the next generation of manufacturing leaders — such as repealing stepped-up basis, taxing unrealized capital gains at death, increasing capital gains taxes, and expanding the reach of the estate tax — would harm family-owned businesses.

Also last week: with a broad cross-section of financial and business interests, MSCI signed a letter authored by the Consumer Bankers Association that asked House and Senate leaders to oppose the proposed new tax information reporting regime supported by the U.S. Department of Treasury.

As Connecting the Dots has explained before, this proposal would require providers of financial services to track and submit to the Internal Revenue Service information on the inflows and outflows of every account above a de minimis threshold of $600 during the year.

The letter, available here, said, “Lawmakers must fully understand the breadth of taxpayers who would be receiving a new form from their financial institution — almost every American who has a bank or credit union account and has gross inflow and outflow of at least $600.” As a reminder, individual member company leaders and employees who want to make their voices heard on these issues can use NAM’s Action Page, available here, to do so.