Jan. 16 (Bloomberg) -- The Bush administration will propose today cutting taxes and regulations for manufacturers, who have shed 2.6 million jobs since President George W. Bush took office, according to a summary of the proposals.
Commerce Secretary Donald Evans will release the full report on manufacturing in Cleveland this morning after touring a factory of Lincoln Electric Holdings Inc., the world's largest maker of welding equipment, the Commerce Department said.
``The most recent recession hit U.S. manufacturers and their workers hardest,'' the report summary said. ``Today, as the overall U.S. economy expands strongly, much of the manufacturing sector continues to operate well below its previous peak.''
Bush has been criticized by Democratic presidential candidates who say his administration hasn't done enough to block imports from China and prevent manufacturers from relocating factories to Mexico or China.
The National Association of Manufacturers, which represents 14,000 manufacturers including 3M Co. and General Electric Co., praised the Bush administration for pledging to make current tax cuts permanent, reduce the complexity of the tax code, lower the regulatory burden and curb asbestos and medical liability lawsuits.
``This is the first time in modern history that an administration has made manufacturing in America a top national priority,'' Jerry Jasinowski, president of the group, said in a statement. Manufacturers' top impediments are ``regulations, excessive litigation, taxes, health care, and rising energy costs.''
In addition to proposing ways to cut each of those burdens, the Commerce Department proposes setting up a new presidential council that will coordinate ways to help protect factory jobs. Evans will lead that group.
Jasinowski pledged that his group would continue to press to curb the trade deficit with China, which likely exceeded $120 billion last year.
The U.S. trade deficit has averaged more than $41 billion a month since December 2002, unexpectedly shrinking in November to $38 billion as the dollar's 15 percent drop against a basket of currencies helped exports climb to a three-year high. The trade gap in November was the narrowest in 13 months, the Commerce Department reported in Washington earlier this week.
The World Trade Organization said today the U.S. trade deficit might ``give rise to protectionist sentiment'' in the U.S.
