Issue Position: Jobs And The Economy
Issue Position
Getting the economy working for the middle class and small businesses again is one of Congresswoman DeLauro's priorities. DeLauro recognizes the need to create and save jobs across the country and at home in Connecticut. To do this she believes we need to:
# Invest further in our infrastructure to create more, real American jobs and revitalize our economy.
# Close the loopholes in our tax code that reward companies for sending our jobs overseas. Domestic manufacturing is vitally important to our state and our nation, and in order to continue to be a prosperous nation with a broad-based middle-class, things need to be built in America again.
# Ensure small businesses get tax relief that spurs investment and access to the credit, including Small Business Administration loans, they need to hire again creating, more jobs in Connecticut and across the country. Small businesses are the engine of the economy and a vital component of any meaningful economic recovery.
National Infrastructure Development Bank Act
According to the American Society of Civil Engineers, the current condition of the infrastructure in the United States earns a grade point average of D and an estimated $2.2 trillion investment is needed over the next 5 years to meet adequate conditions. Every $1 billion in federal funds invested in infrastructure creates or sustains approximately 47,500 jobs and $6.2 billion in economic activity. Investing in our nation's infrastructure-roads, bridges, highways, transit, housing, water systems, energy grids, broadband and so on-is therefore critical to moving our economy from recovery to long-term growth, keeping the United States competitive globally and improving our way of life.
The National Infrastructure Development Bank Act would establish a National Infrastructure Development Bank, modeled after the European Investment Bank, which would leverage private sector dollars to invest in transportation, environmental, energy and telecommunications infrastructure projects. The Bank would objectively consider the economic, environmental, social benefits and costs of infrastructure projects, as well as other specific criteria, and fund projects of significance. The Bank would provide investment opportunities that would supplement current federal programs creating jobs, spurring economic growth and rebuilding an infrastructure system for the 21st century.
The bank concept is endorsed by the American Council of Engineering Companies, American Society of Civil Engineers, Associated General Contractors of America, Building and Construction Trades Department (AFL-CIO), Building America's Future, Campaign for America's Future, Construction Management Association of America, National Construction Alliance II, National Governors Association, PolicyLink, Service Employees International Union, Third Way, Transportation for America and the U.S. Chamber of Commerce.
Manufacturing Reinvestment Account Act
Manufacturing and the ability to build and produce is critical to job creation and economic growth. Connecticut's 3rd District is home to some of the most innovative manufacturers, small, medium and large, building critical products in the realms of defense, energy, transportation and beyond. Given the tools to succeed, these companies can compete with anyone.
Congresswoman DeLauro introduced the Manufacturing Reinvestment Account Act which would allow manufacturing firms to establish a manufacturing reinvestment account (MRA), similar to an individual retirement account (IRA), in a community bank and to make annual contributions of up to $250,000 that may be held in the MRA for up to 5 years. Amounts distributed from the MRA are effectively taxed at a low 15% rate and may be used to purchase equipment and facilities or for job training.
If a manufacturing business invested $250,000 a year for 5 years in an MRA bearing a 5 percent interest rate, it would have an estimated after-tax balance of approximately $1,232,181 to invest in equipment, facilities, and job training at the end of the investment period. That amount would represent approximately $336,945 more than had the same amount initially been invested in a taxable account.
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