Wisconsin auto manufacturer warns Biden's tax regulation plan will be a 'huge barrier to innovation'
Millions of Americans could face steeper tax bills if the Biden administration is re-elected
Husco CEO testifies to Congress in support of the 2017 Tax Cuts and Jobs Act
‘Fox & Friends Weekend’ co-host Pete Hegseth tours Husco headquarters in Wisconsin to discuss some of the challenges that American manufacturers are facing.
Family-owned auto parts manufacturer Husco is preparing for the worst if President Biden is re-elected in 2024.
Company President and CEO Austin Ramirez recently testified before Congress ahead of their plan to allow Trump-era tax cuts to expire, touting the importance of the nearly terminated policy.
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"Only by preserving the Tax Cuts and Jobs Act can Congress ensure that uniquely American stories like Husco remain possible," Ramirez said during congressional testimony this past April.
The matter is likely to be a source of contention during the general election, particularly with Trump pledging to make the tax cuts permanent if he is elected in November.
Husco CEO Austin Ramirez is pictured alongside an image of President Biden. Ramirez is in favor of the Trump-era Tax Cuts and Jobs Act being re-upped, a policy that the Biden administration said they would let expire if re-elected in 2024. (Fox News / Fox News)
The expiration of the tax law on December 31, 2025 will mean many Americans will be forced to pay more in taxes unless certain provisions are extended or made permanent. While President Biden has not yet released a blueprint for how to address the upcoming tax cliff, he called for a number of tax hikes in his fiscal 2025 budget proposal.
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"Taxes are a huge part. We've got to have competitive taxes. In the U.S., we've got the most regressive tax regime in the world relative to R&D," Ramirez told Fox News' Pete Hegseth.
The Husco CEO gave Hegseth a behind-the-scenes look into the company's manufacturing headquarters in Waukesha, Wisconsin, as the Republican National Convention got underway in nearby Milwaukee.
The U.S.'s federal research and development (R&D) tax credit grants companies a reduction in tax liability for select domestic expenses.
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"R&D and innovation is how we grow this economy, how we grow Husco. Today in the U.S., we get to expense 20% of our R&D expenses in China. They get to expense 200% of their R&D expenses. That creates a huge barrier to innovation and growth in a thriving American economy."
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Ramirez continued, arguing that renewing the tax cut policy would "absolutely" be beneficial to his business.
"Tax cuts create more liquidity for us to invest in equipment and people in our community and doing all the things we need to do to grow," the company CEO argued.
Husco CEO Austin Ramirez is seen testifying before Congress to share the crucial impact the 2017 Tax Cuts and Jobs Act has had on his manufacturing company earlier this April. (Fox News / Fox News)
He concluded by sharing some of Husco's groundbreaking community service, an opportunity that was granted through the U.S.'s tax policy.
"Husco is a private, family-owned company. We committed to donating at least 10% of our pretax profits every year back to community causes," he explained.
"Education is just foundational to the American Dream."
"The biggest project we've done here is we built a school on the south side of Milwaukee, serving predominantly minority, low-income kids," he told Hegseth. "We started the school about seven years ago. We're now the number one ranked and largest K-12 school in the state of Wisconsin. We're going to launch a second campus within five years. Our schools will be educating almost 5% of the kids in Milwaukee."
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FOX Business' Megan Henney contributed to this report.
