SOCMA: Obama's State of the Union Address Falls Short on Past Promises

WASHINGTON, Jan. 25, 2012 /PRNewswire-USNewswire/ -- Recognizing that most of his domestic priorities have little chance of being approved, the Society of Chemical Manufacturers and Affiliates said President Obama's State of the Union address sounded more like a campaign speech than a legislative wish list. His theme, "a blueprint for an economy that is built to last," offered few clues of what batch chemical manufacturers could expect moving forward.

SOCMA is pleased, however, that the president mentioned the importance of manufacturing. The association shares his passion for renewing America's robust manufacturing capability, but numerous concerns remain on how we arrive there.

• Taxes.  Last year, Obama felt strongly about making the research and development tax credit permanent. However, the tax credit has not been made permanent, nor has it been renewed, leaving many companies in limbo. In the 1980s, the U.S. had the best R&D tax credit in the world and is now ranked 17th behind countries like Canada and China.

• Regulations. Obama last year instructed agencies to review regulations to streamline or eliminate them so burdens would be reduced on manufacturing. Little to nothing has been done. Meanwhile, the chemical industry is staring down numerous regulations threatening its ability to compete. The EPA's Boiler MACT rule and its proposal to weaken our industry's competitiveness in developing new chemicals by forcing them to reveal confidential business information are prime examples.

• Trade. Last year, Obama won Congressional approval for free trade agreements (FTA) with South Korea, Colombia, and Panama.  However, he waited months to submit the FTAs to Congress, delaying approval. Last week, Obama said he plans to consolidate trade agencies which will likely diminish America's trade effectiveness since part of his plan is to fold the Small Business Administration (SBA) and U.S. Trade Representative (USTR) into the Commerce Department. This change, if it occurs, will create confusion and is bad for chemical manufacturers, many of which benefit from an independent SBA and USTR.

About SOCMA

SOCMA is the only U.S. based trade association dedicated solely to the batch, custom and specialty chemical industry. Since 1921, we have represented a diverse membership of small, medium and large chemical companies, making us the leading authority on this sector.

Contact:
Christine Sanchez
Sr. Manager, Public Relations & Media
(202) 721-4182
[email protected]

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Bill Allmond
http://www.profnetconnect.com/billallmond

SOURCE Society of Chemical Manufacturers and Affiliates

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