Pres. Obama Raises Hopes in Iowa; Fails to Wow

The president and CEO of Vermeer Corporation in Pella, IA, Mary Andringa, was hopeful before President Obama spoke about manufacturing. She hoped that the President would talk about the regulatory burden and high corporate tax rate that is plaguing not only the manufacturing industry, but other industries as well:

“There’s actually a lot of thing I think that can be done,” she said. “There’s a lot of burden on businesses with all the regulations right now. Sometimes I think it’s unintended consequences.”

According to the Des Moines Register:

“She gave the example of the Environmental Protection Agency’s standards for engines on heavy equipment. Engineers at Vermeer are spending more than half their time designing new, larger engines into existing products. The cost of the new engine for one piece of construction equipment inflates the cost of the product by 15 to 20 percent, she said.”

American’s know that the EPA does more harm than good, and that they don’t take job destruction into consideration when creating their regulations. Andringa continued:

“That’s a lot in an economic time when our customers are not able to pay those extra prices,” she said. “Wouldn’t it be better for our company and certainly for our country to have those engineers working on more innovative things?”

Businesses across the country are burdened with regulations (many from the EPA) that cause hiring and expansion to stall. A couple weeks ago, White House Chief of Staff William Daley heard the complaints of hundreds of executives:

“One by one, exasperated executives stood to air their grievances on environmental regulations and stalled free-trade deals. And Daley, the former banker tasked with building ties with industry, found himself looking for the right balance between empathy and defending his boss.”

Daley responded:

“Sometimes you can’t defend the indefensible,” he said.

The Governor of Iowa, Terry Branstad, feels the same way. He thought the President failed to touch on key issues facing his state while he visited:

“It was a positive speech, but he didn’t really address the substance of the issues I’m concerned about,” he said. “I was disappointed the president didn’t address free trade which is important to our manufacturing, he didn’t address the tax and regulatory changes. The corporate income tax in this country puts us at a competitive disadvantage.”

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