https://www.industryweek.com/the-economy/legislation/article/21247766/proposed-book-tax-puts-burden-on-manufacturers IndustryWeek Magazine Subscription eNewsletter Subscription * Log In * Register * Search IW Intelligence Talent Technology & IIoT Operations Leadership Supply Chain The Economy TopicsIW IntelligenceSemiconductorsTalentTechnology & IIoTOperations LeadershipSupply ChainThe EconomyInfluencers ResourcesMember BenefitsManufacturing ProductsIndustryWeek Best Plants AwardsIW US 50 BestIW US 500Supply Chain InitiativeIW Best Practices ReportsWebinarsWhite PapersManufacturing & Technology Event Safety Leadership ConferenceMagazine SubscriptioneNewsletter SubscriptionContact UsAdvertiseContributors' GuidelinesPrivacy & Cookie PolicyTerms of Service https://www.facebook.com/pages/IndustryWeek/91310488418 https://www.linkedin.com/company/industry-week https://twitter.com/IndustryWeek https://www.youtube.com/user/industryweek Manufacturing Tax Burden * The Economy * Legislation Proposed 'Book Tax' Puts Burden on Manufacturers Aug. 1, 2022 The provision is estimated to raise $313 billion, and the Joint Committee on Taxation finds that manufacturers would be responsible for paying nearly half of it. Chad Moutray * * * * * * The proposed "book tax" in the Senate's reconciliation bill "would overwhelmingly hit U.S. manufacturers," according to a new analysis by the Joint Committee on Taxation, Congress's non-partisan tax scorekeeper. What's Going On The reconciliation bill, the outline of which was released Wednesday by Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WVA), proposes a 15% minimum corporate levy, or "book tax," on certain companies. The provision is estimated to raise $313 billion, and JCT finds that manufacturers would be responsible for paying nearly half of it. (Table: Joint Committee on Taxation analysis) What It Means The impact would be swift and devastating to manufacturers and the economy as a whole, according to my own analysis of the bill's effects on the manufacturing sector. Including direct, indirect and induced effects, in 2023 alone the impact would include: * A real GDP reduction of $68.45 billion * 218,108 fewer workers in the overall economy * A labor-income decrease of $17.11 billion Targeting Manufacturers "'This is a domestic manufacturing tax, plain and simple,'" Senate Finance Committee Ranking Member Mike Crapo (R-ID), who asked for the JCT analysis, said in a statement. * "Despite Democrats' claims, the book minimum tax does not close tax loopholes. Treatment of capital investments, like those made by American manufacturers, differ for book and tax purposes--for good reason," according to a press release from Senate Finance Republicans. * "Congress intentionally designed tax depreciation rules to support domestic investment. Democrats' tax on U.S. manufacturing would eliminate that benefit." Chad Moutray is chief economist, National Association of Manufacturers. This article originally appeared on the NAM website. It is used with permission. 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