Sexy Tariffs
Always a sexy read ...
The name isn’t sexy. That’s why it is a surprise that the Miscellaneous Tariff Bill is getting attention. MTBs are bills introduced periodically in the Congress to tweak U.S. customs duties, and specifically to legislate duty reductions or suspensions on goods that are needed by American factories, but are not produced in the United States. In other words, we are talking cutting tariffs on non-competing products that are necessary to support jobs and profits in many U.S. industries. Doesn’t sound controversial, does it? But there are those in Congress who hurl the epithet of “earmark” at these tariff cuts. They tend to be in the party that is out of power.
The problem is that Congress hasn’t passed a Miscellaneous Tariff Bill since 2006 – and that means that the reductions or suspensions for about 600 non-competing predicts, mostly raw materials or chemicals for industrial use, expired at the end of 2009. The expirations immediately raised costs for many U.S. factories, helping to stall their recovery from the recession and hindering their ability to rehire laid-off workers. There is an MTB working its way slowly through the House and the Senate that would restore many of the 2006 tariff suspensions, but the Republican leadership seem intent on making sure these “earmarks” don’t go through. According to one study, the House version of the MTB would stimulate approximately 90,000 jobs and boost U.S. production by $4.6 billion. I have often questioned the Obama Administration’s commitment to job creation, but this time I have to charge the Republicans with keeping 90,000 Americans unemployed.
The Minneapolis-St. Paul Star-Tribune recently noticed the importance of the Miscellaneous Tariff Bill in an editorial that argued the MTB is necessary for the future of Minnesota companies such as Target, 3M and Honeywell – and the jobs such companies supply to the local economy.
“… it’s common sense that politicians back up grand talk about job growth by supporting policies that actually help the companies that do the hiring. Unfortunately, common sense seems in short supply when it comes to … the Miscellaneous Tariff Bill , which helps keep manufacturing jobs in the United States. … in previous years … it garnered broad bipartisan support. But this year, its routine passage is jeopardized primarily because Republicans have recently redefined the term “earmark,” political slang for directing appropriations to favored programs or projects.”
The National Association of Manufacturers sent a letter in early May to Congressional leaders, pressing for passage of the MTB. It was signed by 130 companies and industry associations, including many of the largest manufacturers in the country.
