August 17, 2022 3:54pm
From the Desk of the CEO: August 2022
It’s hard to believe we are already halfway through the third quarter of 2022. I know there is a degree of uncertainty related to the trajectory of our economy and what it means for you and your business. With talks of an impending recession, it’s more important than ever that our local, state, and federal leaders pass policies that will spur continued innovation and address long overdue challenges. GLI’s advocacy team has made great progress on this front in 2022. We worked with partners to pass state tax reform that will lower and eventually eliminate the state income tax, and we are pursuing changes to the local land development code to provide more certainty and fewer barriers to development.
There has been a recent flurry of activity at the federal level that I wanted to update you on. Last week, President Biden signed the CHIPS and Science Act that was passed with bi-partisan support by both the U.S. House and Senate in late July. The legislation was a focal point of our D.C. Fly-In, and among several things, it will allocate more than $250 billion towards domestic semiconductor manufacturing and scientific research. We are optimistic this legislation will help address a two-year shortage of chips that has caused major disruptions in the supply chain for many of our signature and growing industries. In addition to funding, it will also establish 20 “regional technology hubs” that link research universities and private industry in order to create centers for technology innovation. We are working with the tech transfer offices of both the University of Louisville and University of Kentucky on a coordinated regional response to establish a hub anchored in advanced manufacturing. I look forward to sharing more information and updates on that process in the coming months.
While the CHIPS Act provides promising solutions to some of our biggest challenges as a region, Congress also passed the $700 billion Inflation Reduction Act which was signed by President Biden earlier this week. Despite the elimination of many harmful provisions in previous versions of this bill, GLI is opposed to the significant new tax increases and unprecedented price controls that would undermine economic growth. Funding for provisions of this bill comes from several sources but specifically will raise the minimum corporate tax to 15 percent which will punish innovation and discourage companies from capital investment. While supportive of some provisions of the bill, GLI was opposed to the tax implications and signed onto a joint letter with the U.S. Chamber of Commerce voicing our concerns.
We will continue monitoring and weighing in on federal issues as they arise and advocating for priorities laid out in our 2022-2023 Federal Agenda. Thank you for trusting GLI to be the voice of your business at City Hall, the State Capitol, and Capitol Hill.
President and CEO, Greater Louisville Inc.