After we blogged yesterday about how a change in U.S. tax law helped us add three workers by enabling faster depreciation of our latest robot acquisition, someone asked for some visual affirmation. So here it is:
Tom, Edrick, Liston and the TruLaser 1030
Marlin Steel hired Tom Gamble, Edrick Smith and Liston Clise because they’re skillful workers, but also because the tax savings under changes in Section 179 of the tax code after purchasing equipment like the TruLaser 1030 helped provide the resources to do it. Tom performs our MIG (metal inert gas) welding. Liston does setup and operations for the press brake that bends sheet metal. And Edrick performs setup on our CNC Robot that bends and welds steel wire used to construct our mesh baskets and other products. We mentioned that to the outgoing Treasury Secretary Tim Geithner when he visited our Baltimore facility last spring. Congress upheld that tax-law change in Section 179 when it passed the “fiscal cliff” bill two weeks ago. We hope to be able to count on Congress in the coming months and beyond — as much as we do Tom, Edrick, Liston and the TruLaser.
Dr. Marshal Greenblatt of Marlin Steel and U.S. Treasury Secretary Timothy Geithner
When we heard the news that President Obama is expected today to name his replacement for U.S. Treasury Secretary Timothy F. Geithner, we recalled the day last spring when Mr. Geithner visited our factory in Baltimore. He was pleased that we were growing in a bad economy and exporting to 36 nations in contrast to the grim picture of American manufacturing losing out to cut-rate competitors overseas. But he got particularly enthused when Dr. Marshal “Mickey” Greenblatt, a member of the board of directors at Marlin Steel, showed him the powerful sheet-metal laser cutter that Marlin had recently purchased.
“He was fairly cool and collected, but he became very animated when I described how a change in the depreciation rule allowed us to quickly invest in the new robot equipment. The change reduced the depreciation period on the purchase from five years to one so our tax bill went down. That probably enabled us to hire three workers, I told him. He jumped up on the balls of his feet very excitedly and said, ‘That was my idea. That was my idea.’”