DeLauro, Kinzinger Introduce Bill to Reinvest in US Manufacturing

Bipartisan Bill Will Help Businesses Grow, CreateJobs, Boost Economy

WASHINGTON, DC— Representatives Rosa DeLauro (D-CT) and AdamKinzinger (R-IL) introduced the bipartisan Manufacturing ReinvestmentAccount Act today, which would provide America's manufacturing businesseswith greater opportunities to grow and compete in today's global economy.

"If we want an economy that can be a winner in the globalmarketplace, we must return to an America that prizes and supports domesticmanufacturing," DeLauro said. We need to stop being a nation that simplybuys things, and return to being a nation that builds things. The ManufacturingReinvestment Account Act would enable America's manufacturers to reinvestmore of their profit back into their businesses, getting a bigger return ontheir hard-earned dollars. This bipartisan legislation supports ourmanufacturers, and creates and sustains jobs for hardworking Americans."

"The Manufacturing Reinvestment Account Act is a winfor American manufactures and the communities their workers call home," said Kinzinger."By allowing U.S. manufacturers to reinvest more of their money back into theirbusinesses, this bipartisan bill would bolster manufacturing here at home andthe good jobs that come with it."

The legislation would enable manufacturers to open amanufacturing reinvestment account (MRA), similar to an individual retirementaccount (IRA) in a community bank. They would be able to make annual pre-taxcontributions of up to $500,000 into these accounts, for a period of sevenyears. Funds withdrawn from the account could be invested in machinery, facilitiesand job training.

For example, if a manufacturer contributes $500,000 annuallyand the account earns interest at five percent, with a low 15 percent tax rateon amounts distributed from the MRA, after seven years the manufacturer wouldhave approximately $3.6 million to reinvest in their business. That amount isabout $1 million more than had the same amount initially been invested in ataxable account.