Emerson’s CEO, David Farr, Outlines Tax Policy Requirements

This week, David Farr, chairman and CEO of Emerson and chair of the board of the National Association of Manufacturers (NAM) gave a speech at The Economic Club of New York about tax policy.

Among his remarks, Farr outlined these reform measures: “First, we must cut the federal corporate tax rate to 15 percent and lower the tax rate for the two-thirds of manufacturers that pay taxes at individual tax rates as pass-through entities. It is backward and unfair to saddle them with marginal tax rates of up to 44 percent on these small business owners! …

“Second, we have to stop punishing global U.S. companies when they reinvest overseas earnings back into the United States. … Since Emerson is headquartered in St. Louis, we pay taxes on overseas earnings brought back home while our foreign competitors do not—another negative competitive issue for global U.S. companies. …

“Third, we need a robust capital cost-recovery system. … Faster capital expensing lowers the after-tax cost and increases the number of profitable projects a firm can undertake—more U.S.A. investment normally translates into more jobs.

“Finally, manufacturers will be looking for strong research and development incentives in any tax package—both R&D deductions and a strengthened R&D credit.

“So, that is the straightforward and smart tax and pro-growth reform manufacturers want and that America deserves: a fair corporate tax rate, fair rates for small business, a territorial tax system, a robust capital cost-recovery system and consistent long-term-focused R&D incentives.”