WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded new legislation introduced by U.S. Representatives Debbie Dingell (D-MI-06) and Ro Khanna (D-CA-17) that aims to boost U.S. manufacturing and support American workers by incentivizing and rewarding consumers for buying goods made in the U.S. through a refundable tax credit.
CPA strongly supports changes in federal tax policy to boost U.S. manufacturing and create good-paying jobs. This includes provisions in the Inflation Reduction Act (IRA) that boost U.S. domestic solar manufacturing, as well as electric vehicle and battery production.
“We applaud Representatives Dingell and Khanna for utilizing federal tax policy to support American workers and boost U.S. manufacturing through a refundable consumer tax credit,” said Michael Stumo, CEO of CPA. “For too long, federal tax and trade policy incentivized the offshoring of production and good-paying manufacturing jobs to countries like China. This has resulted in the loss of millions of American jobs and the closure of countless factories, hitting communities in every single state in the U.S. As lawmakers continue to consider policies to reverse this harm, we urge Congress to support legislation like the Made in the USA Tax Credit Act.”
Last year, CPA published a comprehensive economic analysis of 927 U.S. cities and towns that shows that job loss in manufacturing due to China imports since 2001 has affected almost every community in the U.S., including towns and cities in all 50 states. The trade deficit with China, also known as the “China Shock”, has cost the U.S. 3.4 million manufacturing jobs since 2001.
“The American consumer needs to recognize the connection between buying U.S.-made products and creating jobs and prosperity in the U.S.,” said CPA Chief Economist Jeff Ferry. “A Made in U.S.A. tax credit will help consumers make that connection and move us towards more U.S. manufacturing revenue, jobs, and greater prosperity and equality.”
Specifically, the Made in the USA Tax Credit Act would:
- Create a refundable tax credit of up to $2,500 ($5,000 for couples filing jointly) for purchases of products meeting the Federal Trade Commission’s “Made in the USA” standard.
- Adjust the maximum amount of the credit with inflation each year.
- Exclude luxury goods, tobacco products, firearms, vehicles, fuel, services, food and non-depreciable property from qualifying for this tax credit.
- Apply to any individual (other than dependents) making less than $125,000 and with less than $20,000 in investment income or couples filing jointly making less than $250,000 and with less than $40,000 in investment income.
- Set aside funds for inclusive IRS outreach activities to inform consumers and businesses in underserved communities about this tax credit and educate them on what goods qualify.
Related:
- CPA Applauds Provisions in Inflation Reduction Act that Boost U.S. Domestic Solar Manufacturing, Reduce Tax Benefits for Offshoring Profits and Production
- CPA Model Shows Manufacturing Tax Credits Boost U.S. Economy By 6.3%, Create 11 Million Jobs
- Tariffs and Tax Credits Driving a New Manufacturing Boom
###
