PIA's Michael Makin Endorses House Republican Tax Plan (Includes Video)
On Nov. 2, Congress launched an ambitious, game-changing tax reform plan that would provide many positive jolts for the printing and packaging industry. Printing Industries of America (PIA) member companies, their employees and industry stakeholders would benefit in particular from:
- Lowering of the corporate rate to 20 percent, and, most importantly, lowering of S-Corp or “pass through” tax rate to 25 percent. The vast majority of PIA members would be filing at this new, proposed 25 percent rate
- Immediate and full expensing of capital equipment
- Doubling of the estate or “death” tax exemption to $10 million with eventual full repeal in six years. This new exemption rate would remove the current estate tax planning burden and succession challenges for 99 percent of the hundreds of family-owned printing companies
- Protecting the ability of small businesses to write off interests on business loans
- Elimination of the Alternative Minimum Tax (AMT)
PIA is mindful that all the “goodies” in the tax bill released by the House Ways & Means Committee must be paid for in some way. One proposed revenue raiser previously considered that could threaten the very survival of PIA’s member companies is drastically reducing the 100-year-old tax treatment of the deduction of advertising. Fortunately, Congress left the advertising deduction untouched in this legislation; however, some still wish to see this deduction drastically reduced or even eliminated.
PIA urges tax writers and all representatives and senators to oppose changing the current advertising deduction. Doing so would do considerable harm to the very small printing companies this bill is seeking to help.
Clearly, the legislation introduced last week is a positive step for print. However, there are many details that must be examined to ensure the policy highlights outlined by House Republicans are actually workable and beneficial to America’s printing and packaging industry. PIA will continue to dive deeply into the analysis of the tax bill and advocate changes or improvements to the legislation on behalf of its members.
For more information, visit www.printing.org.
The preceding press release was provided by a company unaffiliated with Print+Promo. The views expressed within do not directly reflect the thoughts or opinions of the staff of Print+Promo.