The Plastics Industry Association (PLASTICS) said it supports the budget bill passed by the U.S. House of Representatives in late May that is now being debated in the U.S. Senate. It is likely to pass, with some modifications.
PLASTICS President and CEO Matt Seaholm endorsed the bill because it restores full expensing for research and development; extends 100 percent bonus depreciation for capital equipment purchases; preserves the 21 percent corporate tax rate; enhances the Section 199A pass-through deduction that provides tax relief to small and medium-sized businesses; increases Section 179 expensing thresholds; and protects interest deductibility rules.
“It delivers the certainty and resources companies need to drive and secure future growth, reinforcing America as a dominant manufacturing leader,” Seaholm said in a news release.
The National Association of Manufacturers (NAM) lauded H.R.1, also known as the “One Big Beautiful Bill Act,” for most of the same reasons.
“This is a pivotal moment,” said NAM President and CEO Jay Timmons. “It’s time to double down on policies that encourage manufacturers to invest and create jobs in America and keep our industry strong and our nation competitive on the world stage.”
He said manufacturers must urge the Senate to maintain the pro-manufacturing policies in the House bill to ensure the final package supports manufacturing investment in the U.S.
That sounds like a call to action.
At this writing, it appears that opposition in the Senate is going to center on immigration policies; an estimated $2.3 trillion the bill could add to the federal debt; and cuts to food assistance, Biden-era clean energy programs and Medicaid that could end health care for 8 million people.
All this is playing out while the president’s trade policies of on-again, off-again tariffs create chaos for the plastics industry, as well as world trade.
The challenge for the plastics industry is to influence the Senate to keep the good provisions of the tax bill (see Paragraph 2 above) while tinkering with the rest.
You can argue that adding to the already staggering national debt is bad; that gutting clean energy programs and eliminating assistance to the electric vehicle industry hurt the plastics industry; that throwing people off medical insurance costs everyone in the long run; or that the wealthy do not need more tax breaks.
Another danger is the Senate will fail to pass a budget bill, or that it will contain so many changes that it cannot be reconciled with the House’s bill. That could exacerbate many of the problems the country already faces, including leading to a downgrade of our credit rating and roiling the stock market.
It is time to urge your Senators that beyond the headline-grabbing issues, there are more mundane issues that are critical to manufacturing. The U.S. Senate has a webpage, at www.senate.gov/senators/senators-contact.htm, that tells you how to identify your senators and gives you their postal addresses and telephone numbers, as well as links to web contact forms. Reach out to them.
PLASTICS, NAM and other trade groups will be lobbying senators, but your voice as a business leader in their state can carry weight.
Can the U.S. maintain world leadership in manufacturing? That question is yet to be answered. But losing the provisions of the House tax bill that can boost manufacturing is going in the wrong direction.
Spell opportunity with a K
Every few months, a processor, machinery manufacturer or recycler mentions a successful business opportunity that came from attending a K Show. The most recent was a U.S. compounder who told me about meeting his future business partner there.
Please consider attending. The www.k-online.com website has everything you need to know. Accommodations are still available. International airline fares appear to be coming down. Don’t let the current economy or uncertainties about trade and tariffs stop you. We will have those figured out by October.
Clarence “Big House” Gaines, who coached basketball at Winston-Salem State University in North Carolina for 47 years, famously said, “Opportunity often knocks, but it has never been known to pick the lock.”
Here is an opportunity to unlock the door.
Ron Shinn, editor
Ron Shinn | Editor
Editor Ron Shinn is a co-founder of Plastics Machinery & Manufacturing and has been covering the plastics industry for more than 35 years. He leads the editorial team, directs coverage and sets the editorial calendar. He also writes features, including the Talking Points column and On the Factory Floor, and covers recycling and sustainability for PMM and Plastics Recycling.
