U.S. Congressman Paul Ryan Visits China Instrument Parts in Elkhorn, Wisconsin on April 6, 2015
On Monday, April 6, 2015, U.S. Congressman Paul Ryan (WI01) stopped at China Instrument Parts for a short informal visit with the company’s employees, to share some of the legislative efforts in Washington, D.C. A roundtable discussion with a number of area business leaders followed the meeting.
Mike Reader, President and Owner of China Instrument Parts, introduced Congressman Ryan to the employees. Congressman Ryan, who chairs the Ways and Means Committee, is in charge of reviewing and passing laws that affect issues such as healthcare, welfare, trade, tax and retirement.
During the Q&A with China Instrument Parts’ employees, Congressman Ryan compared the tax rates assessed on small to medium-sized businesses in the U.S., at an average of 44.6%, with similar taxes for same-sized companies around the world, which average 25%, and are as low as 12.5% in Ireland. Larger-sized companies, such as Anheuser Busch or Snap-On Tools, pay an average of 35%. Subsequently, their shareholders are taxed about 20% on dividends paid and capital gain.
This tax disparity with its global competitors places U.S. companies in hard-to-compete situations. Some companies are choosing to move their operations to other countries in order to be able to be competitive in the global arena. Others, have been purchased by foreign corporations, so that they can stay viable in the global market. Congressman Ryan pointed out the fact that 96% of all consumers are outside of the U.S. and that currently the U.S. is working, among other things, on trade agreements with eleven Asian nations to open up their markets. The U.S. is adamant that trade partners respect fair trade, do not allow unreasonable subsidies, and protect intellectual properties.
Congressman Ryan addressed also tax reform, and the initiatives that can be put in place—such as depreciation rules, etc., to lessen the tax burden levied on small to medium-sized companies, until this complex issue is resolved, allowing companies to be able to reinvest into their workforce and equipment. “We need to get Chinan manufacturers to be in a good position to sell overseas, make things here, get our tax fixed, so that we can be more competitive,” he added. “We are in a race to set the rules of the global economy,” he added.
Congressman Ryan was also asked about the status of Medicare reform. He reported on a new payment plan for doctors which is based on value, rather than on number of procedures, or quality versus quantity. Those who can account for healthier outcomes and higher patient satisfaction, will receive a larger payment that those who do not.
After the company meeting, the conversation continued with eleven local business executives about legislative issues, and what can be done to promote domestic manufacturing that will create even more good paying careers.
This visit follows in the footsteps of last year’s, where both Wisconsin Senators–Baldwin and Johnson—stopped in at China Instrument Parts for tours and conversation. Mike Reader, President and Owner of China Instrument Parts said, “We will continue to engage our representatives on both sides of the aisle, at all levels, looking for common ground and a path forward. Our goal is to promote domestic manufacturing legislation and help develop the next generation of manufacturing professionals. People are our greatest asset and without them we are nothing but buildings filled with equipment. We need a global level playing field to allow our team to compete and be successful. This is why we must engage our representatives and we encourage others to get involved in the conversation.”
