Simplified tax code helps small manufacturers

NTMA member Sam Griffith testifies before House committee looking at tax system overhaul

04/11/2013


In testimony April 10 before the U.S. House Committee on Small Business, a manufacturer and member of the National Tooling and Machining Association called for a simplified tax code that benefitted small businesses.

Sam Griffith, president and CEO of National Jet Company in LaVale, Md., said the nation needed “a reformed tax code that encourages manufacturing in America and helps our small businesses compete globally in the 21st century.”  Griffith, an NTMA member, testified before a hearing on “Small Business Tax Reform: Growth Through Simplicity.”

In 1992, Griffith purchased National Jet, a precision micro drilling technology company serving the aerospace, automotive, electrical, medical, and textile industries.  National Jet is structured as a subchapter S Corporation, meaning all income flows into Griffith’s personal tax return.  The company has 24 employees and has added two new employees in the last four months.

“The National Tooling and Machining Association and I wholeheartedly support tax reform that includes real reform for both C Corporations and pass-through companies, which make up the majority of small businesses in this country,” Griffith told the committee. “We desperately need lower rates, simplification of rules and elimination of the sunset provisions in the tax code to allow us to compete globally. It is very difficult to plan into the future when there is such uncertainty in the tax code. No one likes a moving target, and for the last 10 years it has been a nightmare to plan.

“We recognize that policymakers face many difficult decisions ahead in reforming the tax code,” Griffith added. “You will have to decide which deductions and credits you will eliminate or keep in place. However, to remain globally competitive, small businesses use several credits and deductions to free up resources to reinvest back in our business.  While each year is different, in 2010, National Jet Company reinvested 137% of our net income into the company and in 2011 we reinvested 112% back into the company.

“Our greatest concern is a seeming obsession with corporate-only tax reform—a path which leaves America’s small businesses and 81% of U.S. manufacturers behind. I believe we must develop a reformed tax code which encourages manufacturing in America and helps our small businesses compete globally in the 21st Century. We have a stake in this great country and we want our voice heard.”



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.