The Texas Association of Manufacturers (TAM) expressed support for like-kind exchanges in an April 27, 2015 letter sent to U.S. Senator John Cornyn. TAM President Richard A. (Tony) Bennett urged Sen. Cornyn to support the retention of Section 1031 in the law’s present form, highlighting that Section 1031 provides a powerful engine to the U.S. Economy and that like-kind exchanges promote transactional activity resulting in job creation and taxable income that fuels other businesses. TAM asks the Senator to oppose the proposals to eliminate like-kind exchanges.
TAM represents over 450 large and small companies from every manufacturing sector, employing more than 894,000 Texans. Texas manufacturers contributed $211 billion to the Texas economy in 2012 and one-third of all corporate taxes collected by state and local governments. Manufactured goods account for 94.6 percent of all Texas exports and Texas has held the distinction as the #1 exporting state in the U.S. for several consecutive years.