Senator Susan Collins today introduced legislation aimed
at reinvigorating the manufacturing sector, boosting the level of domestic
manufacturing, and preventing the further loss of manufacturing jobs.
“Few states have been hit harder by the loss of manufacturing jobs
than my home state of Maine,” said Senator Collins. “According to the National
Association of Manufacturers, Maine has lost 22,000 manufacturing jobs –
nearly 28% of our total – since the beginning of this decade. These jobs once
provided lifelong employment to Mainers in towns like Millinocket, Wilton,
Waterville, Fort Kent, Dexter, Westbrook, and Sanford.”
The National Association of Manufacturers reports that American
manufacturers face “structural costs” that make it 31% more expensive to
manufacture goods in the US than overseas. To alleviate the unfair trade
disadvantage suffered by American manufacturers, Senator Collins’ introduced
Growing Our Manufacturing Employment Act, known as “GoME.” GoME will help to
lessen the 31% cost differential that American manufacturers face by providing
a jobs tax credit for manufacturers that employ displaced workers who are
receiving benefits under the Trade Adjustment Act or Alternative Trade
Adjustment Act. The credit helps manufacturers that are looking for a way to
compete with low-cost foreign competition by giving them a tax credit of up to
31% for each eligible employee a company hires. The result is a lower cost
for increased production, making the American company more competitive with
foreign manufacturers.
The legislation is designed to ensure that only companies that are
helping to build America’s manufacturing base benefit from the jobs credit.
Companies that move jobs offshore will see their benefits reduced, and
companies that choose to “invert” their corporate structure to avoid US taxes
will not be eligible for the credit at all.
GoME also includes a five-year extension of the research and development
tax credits that are scheduled to sunset at the end of this year.
“I believe a healthy manufacturing base is essential to our
nation’s future. Not only is manufacturing a key source of skilled, high-
paying jobs, but also it is crucial to our economic and national security that
we have the ability to manufacture the goods we need right here in this
country,” said Senator Collins. “I am hopeful that, working together on this
and other proposals, we can take the important steps needed to strengthen
American manufacturers, preserve our manufacturing capacity, and most of all,
help to ensure that hard-working Americans have the jobs they need and
deserve.”
Senator Collins pointed out that the credits proposed under GoME would
have helped Maine companies like Moosehead Manufacturing, which closed its
doors last week, forcing 120 skilled workers out of their jobs.
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