Manufacturing Sector Still Lagging - FOX Nightly Scoreboard
Monday, August 2, 2011
Drew Greenblatt, President of Marlin Steel Wire, Michael Di Marino, President of Linda Tool and Anthony Cappo, Principal Engineer at Opticology Inc - FBN's markets experts discuss whether the debt deal will help revive the struggling manufacturing sector.
America's Nightly Scoreboard
FOX Business News: >>
Three small businesses who navigate through this tough period:
Michael Di Marino is President of Linda Tool,
Anthony Cappo is Principal Engineer at
at Opticology Inc. and Drew Greenblatt, friend of Scoreboard is
President of Marlin Steel Wire, he, of course earlier this year,
presented Congress with his own game plan for how to turn things around.
Gentlemen, great to have you here again, you are American heroes, at
least in our mind here at Scoreboard.
Drew, we know that there are no new taxes in this bill, however,
the bill didn't deal with Obama-care and already, your
healthcare costs have gone up because a lot of insurance companies are
trying to get in their increases before Obama-care might prevent
them from doing that, so, what about you? I mean, are you given some
sense of certainty about the future because of this bill?
DREW GREENBLATT >>
I think what we need to do is shock-and-awe right now.
I think what we have to do is do a massive tax-cut to
get people fired-up again. Right now we have a general malaise
going on throughout the American factories and American
economy in general. I think that's because people are worn
down by watching this kabuki-dance of what's going on in Washington
and they're on the front pages of our newspapers over and over again
and we're being distracted from the important things like
innovating, hiring people, taking a chance and this will go on
happening while it's so unsettled.
FOX Business News: >>
Drew, you say we need a major tax deduction right now. A major
tax cut of some kind, but the President would answer, look, I've already
had a lot of little tax credits and so forth that were meant
to spur the small businesses in particular. How would you
answer him Drew?
DREW GREENBLATT >>
John Kennedy, a famous Democrat, cut taxes. He cut taxes
and you know what happened? The economy went up. The economy
surged. You know what else happened? Revenue went up.
Isn't that the point? If we get more revenue.
FOX Business News: >>
If we cut tax rates, then the actual revenue will increase as a
result of more economic activity.
DREW GREENBLATT >>
Precisely.
FOX Business News: >>
Drew, you presented a proposal to Congress where you outlined
specific measures that you thought should be implemented or
should be goals for this country if we want to
increase manufacturing.
We should make it easier, the Congress should make it easier to
headquarter a company here, to do a company's research and development
here and to manufacture goods and export products here.
Have any of those goals, are we any closer to those goals right
now as a result of what happened in DC?
DREW GREENBLATT >>
Absolutely not. No. We need to charge ahead and that's not
going to happen if we continue these same policies. We have
to have less regulations. We have to have lower taxes. Right
now our taxes are twice what they are in Canada. We compete with
Canadian with Canadian factories, so it's an unfair fight.
Our taxes are higher than other countries like France or Germany.
The only way we're going to be competitive is if we make it a
level playing field. That's what I was saying before about
shock and awe, that's what we need right now. If we could
lower our tax rates below Canada for example. Get down
to 15%, you would see such an excitement out there with
American factories. They would take chances. You can do it
for a year or two, you have to do it as a permanent change
so people can plan. So people can know what they're going to do.
The only people who will hate this idea are tax accountants, the
only people who will hate this are tax lawyers.
FOX Business News: >>
It's time for shock-and-awe, it's time for something truly radical.
Drew Greenblatt, Anthony Cappo, Michael Di Marino, we
have to leave it at that. Gentlemen, thank you for doing
what you do. We appreciate you coming.
