Congressman Brady seeks tax reform input at Kongsberg Automotive town hall

Congressman Kevin Brady is proposing national tax reform plan that could affect local businesses.

Brady, R-The Woodlands, who toured the Kongsberg Automotive Plant in Willis Thursday, presented the employees with the proposed tax code "built for growth" during a town hall meeting there.

Brady the House Ways and Means Committee Chairman and leader of the Tax Reform Task Force, sought the employees' input on the plan he says would reduce and simplify taxes for businesses and families to the point it could be filed on a postcard. Among the changes, the plan would eliminate certain taxes on businesses, as well as "the death tax," and would allow companies to write off new equipment. The goal is to help businesses invest in themselves, grow jobs at home and put more money into Americans' pockets, according to Brady.

If the proposal passes, the reform could affect companies such as KA Willis, which manufactures a range of products that include pedals, heavy-duty cables, controls, conduit and core. It also serves over 250 customers, which includes some of the most recognized names within the construction and agriculture industries, according to Plant Manager Chris Farnsworth.

While its headquarters is in Sweden, the international company brings about 140 jobs to Willis and its population of about 6,000 people.

"When KA Willis invests in new buildings, new equipment, new technology, new computers – mainstream jobs grow," Brady said. "So when you invest $140,000 into that new sale (referring to a production line purchased for throttle pedals designed by the KA Willis engineer team), you grow jobs. This happens all across America."

The comprehensive plan aims to encourage businesses to thrive competitively within the United States instead of moving and investing "trillions" overseas, Brady said.

"We are going to take taxes off our Made in America, Made in Texas products that we are selling around the world and put it on imports coming into America," Brady said. "That levels the playing field. That means in the future, your products will compete based on price, quality and service - things you are good at - rather than the tax code, so America will no longer be at a disadvantage for our Made in America products."

Willis City Manager Hector Forestier attended the town hall and said the city is working with KA on a project that would allow the company to bring in an additional 70 engineering and "highly technical jobs" to the area, Forestier said.

"It's interesting Congressman Brady decided to go and talk about tax reform with a company that is an overseas company," Forestier said. "The fact that they are willing to work over here, they see importance of having highly technical employees, and hopefully we will get more of those with the changes on the tax reform."

The plan would be realistic for the company, employees and families in Willis, he said.

"Not only in Willis but all throughout Montgomery County," Forestier said, "a lot of the employees work within the Willis ZIP code area. The fewer taxes they have to pay, the more they can probably afford to pay employees or create more jobs."

Following his presentation, Brady asked the employees, who mostly nodded in agreement with the changes – including for "busting up" the IRS into a more service-oriented small-claims court – for their input.

Manufacturing Engineer Steve Starr inquired about the tax reform conversation that has been "talked about for three decades" during the town hall meeting. Brady responded in agreement that it is time for action and said the committee is seeking feedback from the community on the proposal until the end of the year.

A final proposal will be brought to the House in mid-2017, Brady said.

"Tax reform is something you hear from a politician; it's a very quick comment while they are trying to get elected for a position," Starr said. "It looks like they've put a lot of work into actually coming up with a plan that's a little more grassroots; and they are asking people to get on the website and express their opinion. They are bringing the voter and community into it and asking what's the best way to do it."

For more information and to share input, visit https://waysandmeans.house.gov/taxreform/.