Bipartisan Bill Will Help Businesses Grow, Create Jobs, Boost Economy
WASHINGTON, DC— Representatives Rosa DeLauro (D-CT) and Adam Kinzinger (R-IL) introduced the bipartisan Manufacturing Reinvestment Account Act today, which would provide America’s manufacturing businesses with greater opportunities to grow and compete in today’s global economy.
“If we want an economy that can be a winner in the global marketplace, we must return to an America that prizes and supports domestic manufacturing,” DeLauro said. We need to stop being a nation that simply buys things, and return to being a nation that builds things. The Manufacturing Reinvestment Account Act would enable America’s manufacturers to reinvest more of their profit back into their businesses, getting a bigger return on their hard-earned dollars. This bipartisan legislation supports our manufacturers, and creates and sustains jobs for hardworking Americans.”
“The Manufacturing Reinvestment Account Act is a win for American manufactures and the communities their workers call home,” said Kinzinger. “By allowing U.S. manufacturers to reinvest more of their money back into their businesses, this bipartisan bill would bolster manufacturing here at home and the good jobs that come with it.”
The legislation would enable manufacturers to open a manufacturing reinvestment account (MRA), similar to an individual retirement account (IRA) in a community bank. They would be able to make annual pre-tax contributions of up to $500,000 into these accounts, for a period of seven years. Funds withdrawn from the account could be invested in machinery, facilities and job training.
For example, if a manufacturer contributes $500,000 annually and the account earns interest at five percent, with a low 15 percent tax rate on amounts distributed from the MRA, after seven years the manufacturer would have approximately $3.6 million to reinvest in their business. That amount is about $1 million more than had the same amount initially been invested in a taxable account.