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Manufacturers join Congresswoman Rosa DeLauro
at press conference announcing the
MRA - Manufacturing Reinvestment Account Act of 2010 (H.R. 110) |
BREAKING NEWS:
HFM has been featured in the news a lot lately. Click here to go to the links section and read all of the press.
Blumenthal and Lieberman Urge Senate Colleagues to Co-Sponsor MRA Bill
Read the full letter here.
Senator Richard Blumenthal Backs MRA Bill. Read all of the details here.
The MRA Bill was re-introduced by Rosa DeLauro in the 112th Congress. The bill is now called H.R. 110. Click here for all the details.
August 6, 2010, Milford, CT, Congresswoman Rosa DeLauro publically SUPPORTS the MRA - Manufacturing Reinvestment Account Act of 2010 . The Manufacturing Reinvestment Account Act 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.
*The new bill, H.R. 110, has raised annual contributions amounts up to $500,000 and extended the time frame for reinvestment up to 7 years.
Manufacturing Reinvestment Account Act (H.R. 110) Sponsors:
Rep. Rosa DeLauro sponsored the bill in the House of Representatives along with 10 additional Representatives Co-Sponsors. MRA is also endorsed by Manufacturing companies and Business Associations.
Click HERE for a Complete List of Sponsors.
Overview of Manufacturing Reinvestment Account Act (H.R. 110)
Scope: This bill will provide a stimulus and incentive for small business, as defined as 1- 500 US employees and manufacturing within the United States, to help overcome the fear and uncertainty of global economic conditions and to make capital investment in machinery, equipment, infrastructure and cutting edge green technology. It is believed that free enterprise, entrepreneurial innovation and a can-do spirit will put our country back on a better path.
Purpose: The purpose of the bill is to induce risk takers in the manufacturing sector here in the United States to grow their companies, retain and increase their workforce and satisfy the need to receive a fair “return on risk”. The current tax code for small business imposes taxes on savings, investment and working capital at the marginal rate of 40% or more. This is a huge barrier for promoting economic growth in the United States.
Vision: It is our vision that entrepreneurs and successful small business owners will seize this opportunity and thereby help retain and grow manufacturing employment opportunities within their communities and our nation at large.
Core elements:
- profitable business as defined above would be allowed to save earned income, pre-tax, in a government qualified savings account.
- income from earnings would be deposited in a community bank qualified by the US government, thereby growing banks cash assets and ability to lend within the community.
- savings would grow tax free.
- profits saved in this account would be earmarked for the expressed purpose as defined above.
- money in plan must be invested within 60 months of deposit.
- savings not invested within 60 months would be taxed at appropriate rate and incur a penalty.
Summary: Our country has prospered from millions of creative ideas by innovative people who had a dream, attracted capital investment and took the calculated risk to achieve their goals. Entrepreneurs and free enterprise has been and always will be the economic engine for our country. The government has an important role to play and that is to create the best environment possible for the private sector to succeed.
We need your support!
To Track the MRA Bill: Please Click Here.
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