Pittsburgh, PA--Printing Industries of America is hailing the tax reform plan outlined by President Trump today as a pro-growth game changer for its member companies and the printing and packaging industry at large.
President & CEO Michael Makin today released the following statement:
"For years, PIA has called upon Congress to enact tax reform that will boost domestic manufacturing industries, including printing, by addressing tax burdens faced by small and mid-sized companies. The tax reform framework unveiled by President Trump today answers this call in many ways.
Specifically, the tax reform plan aligns with PIA's tax reform advocacy agenda in the following ways:
- Lower Tax Rate on S-Corps and Pass-Through Companies: The plan calls for a top rate of 25% for small businesses and, importantly, urges Congress to include provisions to prevent high-worth taxpayers from attempting to re-characterize individual income to unfairly take advantage of this small business tax reform.
- Full and Immediate Expensing: The plan calls for an unprecedented expansion of full expensing of capital investments, which will further unleash innovation in the printing industry through the purchase of cutting-edge presses and equipment.
- Repeal of the Estate Tax: The plan would encourage the value and economic stability of family-owned printing companies by repealing the estate tax and generation-skipping tax.
- Preservation of the R&D Tax Credit: The plan would preserve this important credit to ensure vendors, suppliers, and printers are able to develop and promote new technologies.
- Simplification of the Tax Code: The plan attempts to simplify the tax structure for both individual and corporate taxpayers.
The tax reform effort now begins in earnest in Congress as the Senate Finance and House Ways & Means Committees draft detailed legislation. PIA recognizes that difficult choices will need to be made by the tax-writing committees regarding business tax credits and deductions not specifically outlined in the framework released today. Notably, PIA will be closely monitoring any attempts to eliminate or reduce the deduction of the cost of advertising as an ordinary business expense and will work with the over 100 bipartisan U.S. Representatives who earlier this year sent a letter to the House leadership urging preservation of this deduction.
PIA recognizes this tax reform plan as a bold, once-in-a-generation effort. We stand ready to assist the White House and lawmakers from both sides of the political aisle as they seek to enact meaningful, comprehensive tax reform that will spur economic growth and innovation in the printing and packaging industries."
Printing Industries of America will continue to monitor the progress of the tax reform and will provide more in-depth analysis as the plan advances.