Federal Tax Benefits for Manufacturing: Current Law, Legislative Proposals, and Issues for the 112th Congress

[Excerpt] The ongoing debate over whether the manufacturing sector deserves targeted government assistance continues in the 112th Congress. Numerous bills have been introduced to provide new or enhanced federal support for manufacturing companies. Some of the proposals would do so by using tax preferences to bolster their competitiveness and encourage increased domestic production and job creation in manufacturing. These initiatives are attracting attention at a time when Congress is considering options for reforming the federal tax system as a key element of a broader plan to eliminate or substantially lower projected federal budget deficits. To critics of the current federal income tax, proposals for new or enhanced tax benefits for manufacturing underscore what they regard as a critical problem with the system: it is laden with special benefits that reduce effective tax rates and act in the same manner as federal spending, except that the spending is not subject to the scrutiny and oversight built into the appropriations and authorization processes. To provide helpful background information for the congressional debate over whether manufacturing deserves targeted federal support, this report addresses a key component of that support: tax benefits. More specifically, it summarizes the main federal tax preferences under current law from which manufacturing firms derive significant benefits, identifies the bills in the 112th Congress that would enhance those preferences benefits and how they would affect manufacturers, and discusses the arguments for and against additional targeted support for the manufacturing sector and their implications for federal policy. To broaden the context for the current policy debate over federal support for manufacturing, the report also provides a brief overview of federal non-tax support for manufacturing. It will be updated as warranted by changes in tax law or congressional action

Optimum Utilization of Positioning Data in SDS III

A new, computerized hydrographic data acquisition and processing system, Shipboard Data System III (SDS III), is being designed and built for use by the National Ocean Service. An integrated positioning and navigation system is a critical element of this development. Design features include the ability to benefit from time-deskewed multiple lines of position from mixed sensor types (both electronic and manual), difficult geometries, and the use of auxiliary speed and heading data in the application of advanced filtering and smoothing techniques for reduction of random measurement noise and recognition of bias errors. Results are highly accurate, stable, and robust. Measurement noise can be reduced by as much as a factor of three without adding significant biases, even on turns, while retaining actual random vessel motions. Operations can continue during complete losses of positioning data for limited but significant periods of time, including during maneuvers

Appropriations for the Treasury Department and Internal Revenue Service in FY2006: Issues for Congress

This report examines the President’s budget request for the Treasury Department and the Internal Revenue Service (IRS) in FY2006, some of the key policy issues it raises, and congressional action on the request

The Internal Revenue Service's Use of Private Debt Collection Agencies: Current Status and Issues for Congress

Under the American Jobs Creation Act of 2004 (AJCA, P.L. 108-357), the Internal Revenue Service (IRS) has acquired for the second time in its history the legal authority to hire private debt collection agencies (PCAs) to assist in the collection of certain individual tax debt. The grant of authority grew out of a proposal made by the Bush Administration in its budget request for the IRS in both FY2004 and FY2005. This report focuses on IRS’s current plan for hiring PCAs to collect delinquent individual taxes and the policy issues it raises. It begins with an examination of the scope of IRS’s authority to use PCAs under the AJCA and concludes with a discussion of the main issues for Congress as it oversees IRS’s efforts to implement and manage the private tax debt collection initiative. The report will be updated to reflect significant legislative action and new developments related to the initiativ

114th Congress

This report examines the current status, legislative history, and main economic effects (including their efficacy as an economic stimulus tool) of the Section 179 and bonus depreciation allowances. It concludes with a discussion of the key policy issues facing the 114th Congress as it considers what to do with the allowances that expired at the end of 2014

108th Congress

This report examines the economic arguments for and against small business tax subsidies in the context of current congressional proposals to expand them. It begins with a brief description of current federal tax subsidies for small firms, moves on to consider the principal economic arguments for and against these subsidies, and concludes with a discussion of proposals in the 108th Congress to expand small business tax subsidies and their likely economic effects

Distribution of Small Business Ownership and Income by Individual Tax Rates and Selected Policy Issues

This report examines how small business owners may be affected by tax increases by exploring what is known about the share of small business owners and of small business income that is subject to the top two marginal income tax rates