Tiberi and Neal Introduce Jobs Bill to Boost Manufacturing in U.S.
Congressman Pat Tiberi (R-OH) and Congressman Richard E. Neal (D-MA) introduced legislation March 2 that clarifies the appropriate application of the Section 199 domestic manufacturing deduction (DMD) to contract manufacturing. Under current Treasury Department regulations, the DMD is unevenly applied to U.S. companies who utilize contract manufacturing arrangements, which is contrary to Congress’s original intent to incentivize American manufacturing. Tiberi and Neal’s legislation would level the playing field for non-vertically integrated manufacturers who employ U.S. workers so that they can spur needed investment and create jobs.
“As we work to rewrite our tax code in the Ways and Means Committee, a key priority is to ensure that we support our manufacturers’ ability to invest and make products here at home,” said Rep. Tiberi. “This bill clarifies Congressional intent and levels the playing field for manufacturers, no matter how their domestic supply chain is structured. This is a common sense fix to a regulatory overreach that is needed to create good-paying American jobs in my own district and across the country.”
“Investing in our nation’s manufacturers helps provide good-paying jobs for hardworking Americans and supports local communities across the country,” said Rep. Neal. “Working with my colleague, Congressman Tiberi, on the Ways and Means Committee, we put together a bill that would help provide manufacturers a fair and level playing field so we can create even more products right here at home in America.”
Tiberi Statement on President Trump’s First Joint Address to Congress
Congressman Pat Tiberi released the following statement after President Donald Trump’s first address to a joint session of Congress (Feb. 28): “As Republicans, we have long believed that people, not the federal bureaucracy, should be put first. I am encouraged by President Donald Trump’s commitment to putting patients at the center of our health care system, to reforming the tax code so that families can save more of their hard-earned dollars, and to reining in federal regulations to return power to our local communities. These solutions reflect the ideas that we ran on to provide relief from Obamacare’s broken promises and unleash economic growth nationwide. “Our agenda is bold because Americans demanded change and a better way. The House has already made progress by passing over a dozen jobs bills to stop harmful regulations, and the wheels are in motion to repeal Obamacare and replace it with a plan that gives people more affordable choices and increased access to the care they need. As the health subcommittee chairman, I hope Democrats join us in this effort because as the President said, Obamacare is collapsing. We must move forward with reforms that protect our constituents from a failing system. “President Trump’s speech tonight was inspirational and it struck the right tone. America’s future is bright, and we want to empower people who make it so. That is an optimistic vision everyone can come together on.”
Bipartisan Bill Unveiled to Fight Poverty
For U.S. Rep. Pat Tiberi (R-Ohio), the decision was simple: either he got bipartisan support for his bill or his bill would be pointless.
That’s what makes Tiberi — and all lawmakers sponsoring the Investing in Opportunity Act — so unique. Their insistence upon consensus in an age of polarization almost sounds old-fashioned, considering our modern political climate.
But the bill has a very big goal: revitalizing the pockets of America that have seen little to no economic resurgence since the Great Recession. To accomplish that, Tiberi said he and his colleagues needed all the consensus they could get.
That’s why liberal U.S. Sen. Cory Booker (D-N.J.) and Rep. Ron Kind (D-Wis.) hopped onboard with the effort: because even though incentivizing private enterprises to boost economic investment in economically distressed communities doesn’t completely jibe with the Democratic Party’s preference for government intervention, it is nevertheless an idea worth trying.
This is not the first time that members of both parties have come together recently for the sake of fighting poverty.
Just last week, in a panel moderated by Opportunity Lives’ own Carrie Sheffield, Booker sat alongside Sen. Tim Scott (R-S.C.) in a rare display of bipartisan unity. Both senators, despite their party differences, agreed that Washington must work diligently toward sparking innovation and opportunity for the millions of overlooked youth in America today.
“Restoring the American Dream isn’t going to be easy,” Booker said. “By focusing on closing skills gaps and providing apprenticeship opportunities, we can equip younger workers with the on-the-job skills they need to find a good-paying job in today’s knowledge-based economy.”
And when most of the loudest voices on the Left are screaming for total gridlock in Washington, such efforts are laudable.
“One of the things I historically knew, but certainly learned form my time in watching the Democrats in how they passed the Affordable Care Act, is that if you don’t historically have bipartisan buy-in, it’s much more difficult to sustain and have longterm support for a program,” Tiberi said in a recent episode of OppCast.
Tiberi’s bill would level the playing field for investment opportunities. Right now, investors have little reason or incentive to put their money in economically distressed communities. Absent incentives, the communities continue on a downward trend, and the wealth gap yawns ever wider.
The Investing in Opportunity Act would provide three solutions to the incentive problem.
First, the law would establish “Opportunity Zones” where investors would be incentivized to deploy capital in new and small businesses in economically distressed areas all across our country.
Second, it would be easier for investors to roll existing capital into “Opportunity Funds” that could be invested in early-stage businesses.
And third, the law would encourage long-term investor commitments by eliminating capital gains for certain types of investments.
With so much money not being invested, so many opportunities not being seized, it becomes clear why this bill, unlike so many others, has support across both sides of the aisle: it makes logical sense.
Still, with an increasing number of extreme voices in both parties shunning compromise, such an even-keeled bill may not survive the tumult.
“But we have to try,” Tiberi said, “and we’ll keep on trying no matter what.”
Evan Smith is a Staff Writer for Opportunity Lives. You can follow him on Twitter @Evansmithreport.
Tiberi Introduces Bill to Bring Investment to Distressed Communities
Congressmen Pat Tiberi (R-OH) and Ron Kind (D-WI) and Senators Tim Scott (R-SC) and Cory Booker (D-NJ) introduced the Investing in Opportunity Act on Feb. 2. This bipartisan bill will incentivize investment in economically distressed communities in every state. By encouraging the creation of geographically-targeted funds, the bill creates new channels for investment in small businesses, supporting entrepreneurs, developing blighted properties, investing in local infrastructure projects, and other activities to create new opportunities for local residents.
The group issued the following joint statement:
“Too many American communities have been left behind by widening geographic disparities and increasingly uneven economic growth. We come from different parties and regions, but share the common conviction that all Americans should have access to economic opportunity regardless of their zip code. The Investing in Opportunity Act will unlock new private investment for communities where millions of Americans face the crisis of closing business, lack of access to capital, and declining entrepreneurship. American ingenuity has never failed us, and with this bill, we will dramatically expand the resources to restore economic opportunity, job growth, and prosperity for those who need it most.”
The Great Recession brought an unprecedented collapse in new business formation throughout large parts of the country—one that continues to this day. Since 2010, five metro areas alone produced the same net increase in businesses as the rest of the country combined, as most metro and rural areas are now seeing more businesses close than open. New policy solutions are required to reverse these trends. We need broader access to investor capital to match the broad distribution of America’s most precious resource: human capital.
U.S. investors have trillions of dollars of capital that could be put to use in restoring hope and opportunity in forgotten communities throughout the country. The Investing in Opportunity Act would encourage investors of all types to move their capital off the sidelines and reinvest it in places that need it most.
The Investing in Opportunity Act facilitates private investment in the following ways:
· Removes barriers to investment through a temporary capital gains deferral in exchange for reinvesting them in distressed communities
· Provides a new way for investors across the nation to pool resources through newly-created “Opportunity Funds,” established specifically for making investments in distressed communities
· Concentrates capital by establishing “Opportunity Zones,” geographically targeted low-income areas that will be designated by governors
· Encourages investors to make long-term commitments to these communities by tying incentives to longevity
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