Steel Institute Sends Letter to House Tax-Writing Committee, Expresses Concern About Draft Proposal

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For Immediate Release
March 31, 2014

WASHINGTON, D.C. – The American Iron and Steel Institute (AISI) today told the chairman of the House Ways and Means Committee that steelmakers are “very concerned” that the tax “discussion draft” released by Chairman Dave Camp (R-MI) last month weakens or eliminates many pro-investment provisions in the tax code that are important to the steel industry and the manufacturing sector.

“The cumulative effect of many of the proposals put forth will ultimately raise the effective tax rate on U.S. manufacturers by repealing longstanding tax provisions utilized by capital intensive industries, and will increase the overall cost of capital” said Thomas J. Gibson, president and CEO of AISI, in a letter to Chairman Camp this afternoon. The full AISI letter can be viewed here.

The letter also cited the Joint Committee on Taxation’s statement that the proposal would raise the cost of capital for domestic firms and reduce the incentive for investment in domestic capital stock.

“A robust American manufacturing sector – which includes a strong and vibrant steel industry is critical to ensuring a healthy domestic economy. Tax policy should incentivize investment in domestic manufacturing facilities and equipment,” Gibson concluded.

Contact: Lisa Harrison
202.452.7115 / lharrison@steel.org

Click here for a PDF version of this release.

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 22 member companies, including integrated and electric furnace steelmakers, and approximately 125 associate members who are suppliers to or customers of the steel industry. AISI’s member companies represent over three quarters of both U.S. and North American steel capacity. For more news about steel and its applications, view AISI’s website at www.steel.org.