Wednesday, April 26, 2017

Ohio Economy Can Benefit From Manufacturing-Focused Tax Reform

Federal tax reform is buzzing on Capitol Hill.  The shape it takes is still to be seen, but one thing is clear for Ohioans.  Reform that benefits U.S. manufacturing is reform that will benefit all of Ohio’s economy.

With the U.S. continuing to lead the world in manufacturing production and our GDP competitors seeing a decline in working-age population, the opportunity to grow manufacturing in the U.S. is strong right now.  Experts have said that the Midwest and Ohio are poised to take advantage of that growth and outpace the rest of the U.S. in GDP growth.

From my position working on the front lines of industrial development, I see our strongest manufacturers are those which have an international perspective and seek to compete globally.  Plus, international companies are, increasingly, looking at investment in the U.S.  They are getting the message: Make it here to sell it here.

However, export-driven U.S. companies are paying taxes both in the U.S. and abroad.  Their foreign competitors often do not.  It’s as if there was a penalty for “Made in America” products. 

Leveling the playing field with fair trade and fair tax policies should be a part of tax reform.  A new analysis from the Tax Foundation shows that the “Brady Blueprint” tax reform proposal would create more than 64,000 new full time jobs in the state of Ohio alone.

The American Made Coalition is an advocate for tax reform that includes some notable members with a strong Ohio presence.  Boeing, GE, and United Technologies are a part of an aerospace supply chain in Ohio that supports more than 2% of our state's Gross Domestic Product. Ohio is Boeing’s #1 supplier state.  Thus, Ohioans’ jobs, more than those of any other state, are dependent on the success of exports by Boeing and GE.

Ohio has an opportunity to grow its manufacturing base.   Now’s the time.  Good policy can take our economy from good to great.


This column also has been submitted as an op-ed to The Advocate and Columbus Business First.

No comments:

Post a Comment