In addition to the six key industry areas that our policy committees focus on, the New England Council also advocates for broader economic policies that have an impact on a range of industries and affect businesses’ ability to compete in our 21st century global economy. For example, the Council often weighs in on tax policy and supports initiatives to minimize barriers to international trade.
The New England Council supports a fair and balanced U.S. international trade policy that promotes New England’s economy abroad. The New England Council has historically supported free trade as well as presidential Trade Promotion Authority. The future growth of New England’s economy, as it always has, depends on the ability to have access to foreign markets to sell the region’s products. In addition to fair and open markets, The New England Council is also committed to ensuring that the United States makes issues regarding labor, the environment, and intellectual property top priorities in any trade deal negotiated.
Colombia, Panama, and South Korea Free Trade Agreements
This fall, one of many items on Congress’ agenda as they return to session is the approval of pending free trade agreements with Colombia, Panama, and South Korea. The New England Council is urging Congress to pass all three agreements because of the potential positive impact on the New England economy. In letters sent to each member of the New England Congressional delegation this week, the Council stresses the significant economic impact of exports to these three nations in the six New England states, and the potential for job creation if exports are increased. The letters provided each member of the delegation with data on economic impact and jobs specific to their state and Congressional district.
Click here to read a press release on the Council’s support for the agreements.
(Source: The Trade Partnership, Washington DC, from the U.S. Bureau of the Census and the U.S.Department of Agriculture)
Click below to view state-specific data in sample letters sent to members of the New England delegation specific to each state:
New England has a rich history as home to a thriving manufacturing industry. While traditional manufacturing has been on the decline in the region in recent years, there is great potential for economic growth in the so-called “advanced manufacturing” sector. Advanced manufacturing is that which harnesses significant training and well-honed skills to develop highly specialized products in industries such as aerospace, life sciences, medical devices, semi-conductors and nano-technology. As home to both educational institutions and industry leaders, New England’s clusters of innovative research are an important economic driver.
In January 2010, the New England Council partnered with council member Deloitte Consulting, LLP, to release a report titled “Advanced Manufacturing in Networked World: Prospects for Resurgence in New England.” The report debunks the myth that manufacturing is a dying industry, and highlights the significant potential for the creation of high-paying jobs in this industry in New England. The report also highlights positive examples of efforts that are currently underway to increase manufacturing innovation and productivity in the region, and calls on policymakers to support and invest in this industry.
In May 2011, the Council joined with Congressman David Cicilline (D-RI) to announce his “Make it in America” Block Grant legislation. The bill would provide small-to medium-sized manufacturers with the resources they need to retool and retrofit their operations, and train their workforce in order to transition to the manufacturing of clean energy, high-technology, and advanced products. The Council also supports legislation to develop a National Manufacturing Strategy, a bill co-sponsored by several members of the New England delegation.
Capital Gains and Dividends Tax Rates
As the Bush tax cuts were about to expire at the end of 2010, the New England Council identified two specific tax cuts that, if extended, had the potential to spur economic growth and job creation. The Council supported extending the existing tax rates on capital gains and dividends, in order to encourage investment in companies that in turn grow, create jobs, and drive the economy. The Council also noted that higher tax rates on dividends will have a significant impact on seniors, as seniors are far more likely than any other investor group to own stocks which pay dividends.
Research & Development Tax Credit
Strong federal Research & Development (R&D) funding is a cornerstone of scientific advancement and innovation and is a primary reason why the United States remains a leader in technological advancement. New England is home to some of the most innovative high-tech companies in the world, and it is important that the United States maintain a tax policy that encourages these companies to grow and thrive. The New England Council has long supported making the R&D tax credit permanent. The R&D tax credit helps fuel economic growth, augments private investment and allows business to plan long-term projects knowing that the tax credit is available.
Bonus Depreciation
The Internal Revenue Code allows businesses to recover the cost of capital expenditures over time according to a depreciation schedule. In both 2008 and 2009, Congress temporarily allowed businesses to recover the costs of capital expenditures made during those years faster than the ordinary depreciation schedule would allow by initially deducting 50% (increased from 30%) of the cost of depreciable property acquired during those two years for use in the United States. In 2010, as Congress considered legislation to extend that tax relief for an additional year, the New England Council advocated in favor of the extension. The extension was later passed as part of the Small Business Jobs Act and was signed into law by President Barack Obama in September 2010.
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