Monday, December 6, 2010

Help Us Pass the MRA Bill in Congress

· Extend the Bush era tax cuts for 2 years for incomes up to $1million dollars

· Pass MRA now

MRA is a perfect offset for smaller manufacturing companies that are the backbone for the U.S. supply chain and who face the prospect of a 39.6% tax rate reset. The majority of companies in this category have less than 500 employees.

Profit should not be a dirty word. Most business models are built to throw off 4-8% pre-tax profit. Not an unreasonable margin for a company with a headcount of 50 employees and $5,000,000 in sales. The current upper 35% marginal rate confiscates earned income and cash flow that could be better deployed and re-invested. Business owners understand how to grow their companies. We do not need the government to compete with us for our working capital.

New cutting edge capital equipment can easily cost $200-700,000. Debt service at this level makes for a lot of sleepless nights particularly during wild swings in the economy and government regulation uncertainty.

As companies win back global market share, payrolls will eventually grow and some business owners may commit to expand their manufacturing footprint. New brick and mortar projects are the perfect answer for cities and communities facing tepid local free market investment.

MRA is a smart, optional, re-investment strategy to help boost U.S. manufacturing sector competitiveness in the global marketplace.

Over time, if we are patient, disciplined and focused, re-investment will lead our economic recovery.

Let’s get this passed in the new congress. Seize this moment in history.

-Hugh F. McCann Jr.

Sunday, January 10, 2010

Healthcare costs will creep up, forever, because of normal economic inflation trends and new technological breakthroughs.

No one wants to remain sick or die. There is no way to “bend the cost curve” over the longer term. We should in fact embrace this growing demand, and through Smarter Tax Policy, pursue Universal Health Care for all, (with deductibles), and strive for the expansion of this sector.

This IS an economic engine and should be exploited!

An across the board national consumption tax will capture dollars which we can then redeploy back into the healthcare industry. This will drive demand, R&D, job growth and national economic prosperity. The demographics are ripe and the simple reality is we can not export our sick and aging population.
Attempting to conjure up ways to control a natural, national trend will be an exercise in futility. Instead, embrace this growing (business) sector and create new jobs.
Think about it!

Please visit this website to learn more about how we can grow our economy for the longer term.
We need a focused, disciplined, consistent and patient vision for our country. It starts with Smarter Tax Policy.

Happier New Year,

Hugh F. McCann Jr.

We require a disciplined, focused, patient, consistent and Smarter Tax Policy for the Industrial Sector.

Demand will remain anemic globally because people do not have any money. WE must prevent any further erosion to our manufacturing base to save jobs and then we must pursue policies to grab global market share through LEAN operational initiatives. HFMJR2010 is a path for reinvestment into our industrial base.

This is the best way to ensure that we SAVE and GROW jobs.
As the global demand increases we must grow our exports and to do that we must make world class products at a lower unit cost. Efficient capital equipment, lower energy costs and a healthy investment climate, with fair return on risk, will jumpstart our economy.
If businesses improve their global market share and profits, job growth will follow.

How to save and create new jobs: Industrial Sector Capital Re-Investment Policy

If we buy a new machine from a company in Ohio, CA, or NH, that is a good thing. If we stave off our current reality of losing market share (manufacturing jobs) to countries like China…that would be awesome. It has been said that every automotive manufacturing job creates 9 other jobs.
I believe this to be true. Conversely, lose a manufacturing job and things tumble out of control with additional ancillary job loss.

The neat thing about cutting edge capital equipment is it is the best way to become more efficient, productive and lower unit cost. With lower unit cost we will compete more favorably with China and garner greater market share = job growth! If we get busier making widgets, we will require more UPS and Federal Express pickups…..and so it goes.

Hugh F. McCann Jr.