DeLauro Calls for Reinvestment in Manufacturing
Reintroduces bipartisan legislation to help businesses prosper, create jobs, and boost our economy
Washington, DC— Congresswoman Rosa DeLauro (CT-3) introduced the bipartisan Manufacturing Reinvestment Account Act today, a bill that would provide America’s manufacturing businesses with greater opportunities to grow and compete in today’s global economy.
The legislation would provide manufacturers with the option of establishing a manufacturing reinvestment account (MRA), similar to an individual retirement account (IRA), at a local community bank, and to make annual pre-tax contributions into these accounts of up to $500,000 over a period of seven years. Funds then distributed from the account can be used to invest in machinery, facilities and job training thereby providing a bigger return on the dollar and allowing manufacturers to develop their businesses and boost our economy. For example, if a manufacturer contributes $500,000 annually and the account earns interest at five percent, with a low 15% tax rate on amounts distributed from the MRA, after 7 years the manufacturer would have approximately $3.6 million to reinvest in the business.
“If we want our nation to continue to be successful and competitive in the global marketplace, we must return to an outlook in America that prizes and supports domestic manufacturing. I believe that we need to move away from being a nation that simply buys things, and return to a nation that builds things right here. The Manufacturing Reinvestment Account Act does this, enabling America’s manufacturers to invest in their business and get a bigger return on their hard-earned dollars. I worked with local manufacturers in my district to write this bill, listening and learning from them and addressing their concerns. In today’s tough economy, our businesses need our support and our focus must be on creating and sustaining jobs for hardworking Americans — that is why I introduced this legislation on the first day of the new Congress.”