Yesterday, we posted some examples of what companies are telling their Senators and Representatives about how GSP expiration impacts them. Here are several more examples to inspire any companies out there that haven’t let their Member of Congress know about why GSP renewal is so important!
Workers laid off and can’t plan for the future: “We’re a small family owned food importer and distributor that used to employ 9 and now employs only 7 as a direct result of this issue. GSP countries are a main resource for many of our products, and our company has so far spent almost $40 thousand in unnecessary taxes. It puts an obvious strain on our cash flow, eats up a big chunk of our company’s annual income, and the worst part – leaves us in a state of limbo as we try to price our items for resale and compete with larger food distributors.”
Reduced profitability, competitiveness prevent further employment growth: “In 20 years, we have gone from just 5 employees to 12 direct employees plus 15 outside sales reps. These are high paying jobs with good benefits – we pay an average salary of over $50,000 per year including 100% of the medical insurance premiums for our employees and we have a 401(k) with matching funds. The expiration of the GSP program has severely hampered our profitability, our competitiveness and our ability to create further employment here. My company is paying, on average, almost $100,000 per month in new import duties, which comes directly out of our pockets and our employees’ pockets and therefore out of our local economy.”
Increased taxes divert resources from other priorities: “We are a small, family owned company that was founded in 1940. Since 1963, we have evolved from a small trading company to an international import, sales and marketing company. Still being a small company with 37 employees, a large tax increase is detrimental to our growth. The money currently being taken in the duty rates could be put towards raises, bonuses, new offices, or new personnel for extra help.”
Imports taxes add to cash-flow problems for start-up manufacturers: “We are a start-up manufacturing company that has used GSP as a way to lower our cost to the consumer in the US in a tight economy, compete against our multi-billion dollar competitors and Chinese importers, and to employ New Yorkers in meaningful jobs. As of this date we have paid $225,000 in unnecessary taxes that would offset cash flow issues of our young company (financing, especially banks, is extremely difficult for under $10MM companies). Without this relief in the near future we certainly see no new hiring and in fact will likely contract the size of our company. Knowing the number of US companies dependent on our little company (warehouse, trucking, shipping, design, advertising, PR, etc) multiplied by the 580+ other companies effected gives a sense of the impact of this legislation.”