U.S. House Could Vote On Budget, Tax Reconciliation This Week So Act Now

The U.S. House and Senate were not in session last week, but will return this week for a flurry of business before the U.S. Thanksgiving holiday. U.S. House Speaker Nancy Pelosi (D-Calif.) has pledged that her chamber will vote on the Build Back Better budget reconciliation. As Connecting the Dots has reported previously, this piece of legislation contains nearly $2 trillion over the next 10 years and $1.5 trillion in new taxes. The tax changes would impact corporations, businesses with international operations, and pass-throughs.

According to the nonpartisan, nonprofit Tax Policy Center, the legislation also would raise taxes on the middle class — including many families who work in the industrial metals sector. Specifically:

• 20 to 30 percent of middle-income households would see higher taxes in 2022;
• 27 percent of taxpayers with annual incomes between $75,000 and $100,000 would see a tax increase; and
• 19 percent of taxpayers who earn between $50,000 and $75,000 every year would see a tax increase.

The nonpartisan Tax Foundation offers its own analysis of the multiple tax provisions in the bill here.

There are other concerns about the impact the legislation would have on the industrial metals community’s ability to business. In a letter to members of Congress, the U.S. Chamber of Commerce outlined several questions that the business community has about the impact the legislation would have on the U.S. economy and its workers. These include:

• What is the impact on near-term inflation given that so much of the spending and tax cuts will occur in the next two to five years?
• What is the impact on workforce participation given the large amounts of transfer payments that are not connected to work?
• What is the true cost of the bill if you do not include the arbitrary sunsets of tax and spending provisions that are clearly intended to be permanent?

MSCI encourages its member company leaders and employees to call or write to their members of Congress asking that they oppose these tax hikes. Please mention that:

• Raising taxes will put well-paying industrial metals jobs in the United States at risk;
• The industrial metals sector is essential and is powering our recovery, but raising taxes will make it less competitive; and
• Nearly 94 percent of manufacturers have said that higher taxes would be harmful to their businesses.

Individuals also can use this link from the National Association of Manufacturers to make their voices heard.