Ryan, Harris Tout Tax Reforms in Dixon Valve Visit

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Dixon Valve CEO Dick Goodall, at right, introduces House Speaker Paul Ryan (L) and Rep. Andy Harris to employees

Chestertown received a rare visit of a national political figure Thursday, Oct. 5 when Paul Ryan, Speaker of the U.S. House of Representatives, came to town to promote the Republican Party’s tax reform proposals.

Accompanying Ryan on his visit to Dixon Valve and Coupling was Rep. Andy Harris, whose district includes the Eastern Shore. In the two-hour visit, Ryan and Harris toured the factory floor, had a question-and-answer session with workers, and met with management. At the conclusion of the visit, Ryan briefly took questions from members of the press.

Ryan and Harris talk to Dixon Valve workers during a plant tour

Dick Goodall, CEO of Dixon Valve, introduced the visitors, said he was really pleased to have Ryan and Harris. He said the visit was “a good opportunity, because we’re all invested in this country,” including all the things that happen in Washington. He told the assembled employees to ask questions freely – “I know you won’t hold back,” he said before turning the microphone over to Harris.

Harris, who introduced Paul, said he noticed several new pieces of equipment in the factory since his last visit, about four years ago. He said that was a good sign, because business needs to grow and progress to keep up with foreign competition. He said the two things most businesses worry about are regulations and the tax rate. He said he and Paul had just cast votes on the budget for next year, which would include a tax plan to improve the prospects for business.

Paul thanked Harris for being a leader on both taxes and health care. He said the two congressmen were here because they want the country to prosper in the face of global competition. “We need to be ahead of the global competition if we want good jobs, good futures that pay us well,” he said. He said Dixon is in competition with Chinese companies that make the same products, but while China taxes its businesses “at no higher than 25 percent,” Dixon faces taxes of 35 percent – not counting state taxes that raise the rate even higher. “That’s the story of America,” he said, Overseas, taxes can be as low as 12.5 percent, as in Ireland. He said the U.S. tax code was last reformed in 1986, while other countries have adjusted their rates many times since then. “This is messed up and we’ve got to fix it,” he said.

House Sp[eaker Paul Ryan

Paul also said the Republicans want to make it possible for companies to write off equipment purchases the year they make them, rather than waiting to recoup the expenses. With these incentives, he said, American companies will be encouraged to keep their operations in this country instead of moving them overseas.

Finally, he said, the tax code is so complicated that nobody without an accountant to help them navigate it can benefit from its various provisions. He said the GOP plan would allow most workers to fill out their tax forms “on a postcard,” while retaining “good middle-class incentives” like credits for home owners or saving for kids’ college education.  By doing so, “w know we can be a more prosperous country,” he said.

During the question-and-answer session, a young Dixon Valve employee asked how long it would take for the benefits of the GOP tax plan to take effect. “I’m 20 years old, and I’d like to move out of my parents’ house,” he said.

“Don’t worry – there is a future,” Ryan said. Congress will lower individual tax rates as well as business rates, he said. He said the plan will remove the marriage penalty and make it easier to save money to raise a family. He said American businesses have to pay higher wages and provide more benefits than Chinese companies. “The very least we can do is lower their tax costs” so they can hire more workers and pay them more, he said.

Ryan also talked about educational reforms to give young people the skills they need to operate the kind of advanced machinery in plants like Dixon Valve. He said House Republicans have passed bills to give workers the skills they need in the modern workforce. He also said the nation needs to reduce the cost of higher education.

After the employee Q&A session, Paul met with Dixon management and with the head of the American Association of Manufacturers to discuss how tax reform would help them.

During the press session, Ryan was asked about a report by the Institute on Taxation and Economic Policy that said 30.5 percent of Maryland taxpayers would face an immediate tax increase under the GOP proposal, the highest percentage in the nation. The report said the increase would arise from the proposal’s elimination of a deduction for state and local taxes. Ryan said he hadn’t seen the report, but he said its analysis is likely to be slanted due to the Institute’s liberal bias. He said increasing the standard deduction and eliminating loopholes would benefit most middle-class taxpayers.

Ryan was also asked if Congress is contemplating a ban on the “bump stock,” an attachment that allows the AK-47 rifle to fire on full automatic, as in the recent mass shooting in Las Vegas. He said he had never heard of the attachment before news of the shooting broke, but he said fully automatic weapons have been outlawed for many years. The bump stock appears to be a way to dodge that prohibition, he said. He said regulations should catch up with that development, and that more research would be needed “to find out how this happened in the first place.”

Protesters hold signs outside Dion Valve

Across High Street, outside the Dixon Valve plant, a group of protesters – about 60 at its peak – held signs and chanted slogans. The total number of protesters was somewhat higher  as people came and went over a three-hour period.  The first protester arrived before 1:00 pm while the last ones went after the press conference ended and Ryan’s caravan with police escort left at about 4:15 pm.  At the height of the demonstration, around 2-3 pm, there were several groups representing various organizations such as Indivisible.  Many cars honked and their occupants waved energetically in support of the demonstration. Four or five students from the Washington College Republican Club were also present, though it is unknown if they were there in protest, in support, or just out of curiosity.  There were no disturbances. Two police officers were present and directed traffic.

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Letters to Editor

  1. Deirdre LaMotte says:

    This so-called tax reform is for dishonest political cowards. The plan is filled with massive giveaways to the rich and would add even more to the dept. How pathetic that the GOP deal is
    “We will support your bigotry if you support our tax cuts for the rich”. Oh, and Ryan knew nothing about the “bump stock” that enabled the Las Vegas shooter to turn 80% of his
    cache into automatic weapons? Sorry, but it is his job to know about this. He consistently votes against any sensible gun control legislation and has no idea what is legal or not???
    Pathetic …both he and Harris are horrid men who need to go.

  2. Tom Steele says:

    “Dixon faces taxes of 35 percent – not counting state taxes that raise the rate even higher.”

    Only if they have a really bad accountant – 35% is the NOMINAL tax rate, the rate you’d pay if you had zero deductions. Virtually no business of any size actually pays that rate. And how exactly is a corporate tax cut going to help that young man move out of his parents’ house? Unless Dixon turns around and puts whatever money they get from a tax cut into their workers’ wages, the workers won’t see a dime.

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