1. New President Obama What’s Next? Paul Freedenberg AMT Vice President – Government Relations Pat McGibbon AMT Vice President – Strategic Information & Research

2. Key Players in the Obama Administration President Chief of Staff Secretary of Treasury Barack Obama Rahm Emanuel Timothy Geithner Secretary of Health and Human Services Tom Daschle Vice President Secretary of State Secretary of Defense Joe Biden Hillary Rodham Clinton Robert Gates Secretary of Commerce United States Trade Representative Ron Kirk ??? 2 AMT 2009 Regional Meetings

3. The 111 th Congress House 255D – 177R Speaker Minority Leader Chairman Ways & Means Nancy Pelosi (D-CA) John Boehner (R-OH) Charles Rangel (D-NY) Senate 58D – 41R Close to a Filibuster Proof Majority! Majority Leader GOP Leader Chairman Finance Harry Reid (D-NV) Mitch McConnell (R-KY) Max Baucus (D-MT) 3 AMT 2009 Regional Meetings

4. Economic Stimulus Legislation Could approach $1.3 trillion About 2/3 of that amount will be spending programs: Infrastructure Aid to states Energy About 1/3 will be tax cuts 4 AMT 2009 Regional Meetings

5. Key tax changes discussed by President-Elect Obama Temporary Business Tax Incentives – Likely Section 179 Small Business Expensing 50% Bonus Depreciation Corporate Tax Rate – Possible – Lower rate from 35% to 28% Individual Federal Income Tax Rates – Possible – Raise top two rates – 33% would increase to 36% and 35% up to 39.6% Capital Gains Rates – Possible – Increase rate to 20% from 15% Federal Death Tax – Likely – Freeze rate at 2009 level – 45%, with a $3.5 Million exemption per spouse – Rate freeze avoids complete repeal of tax in 2010 5 AMT 2009 Regional Meetings

6. Key tax changes discussed by President-Elect Obama R&D Tax Credit – Possible – Make it permanent Extended in 2008, but expires at the end of 2009. Congress has continually renewed this credit. Obama intends to make it permanent. Advanced Technology Vehicles Purchase Incentive – Likely Job Creation Tax Credit – Possible Eliminate income tax on low/medium income seniors – Likely Healthcare mandate – Possible Windfall Profit Tax on energy companies – Possible 6 AMT 2009 Regional Meetings

7. Federal Assistance for the Auto Industry Rescue legislation failed in Congress President announced $17.4 billion to automakers from TARP Immediate $13.4 billion in short-term loans issued Additional $4 billion disbursed in February Car companies must prove long-term business plan viability by 3/31/09 or pay back loans immediately (certain bankruptcy) 7 AMT 2009 Regional Meetings

8. Federal Assistance for the Auto Industry Treasury will decide on case-by-case basis whether companies connected to auto industry should receive emergency aid from bailout pool Will consider “the importance of the institution to production by, or financing of, the American automotive industry,” and whether a major disruption of the companies’ operations would likely hurt employment and the national economy President-Elect Obama may propose additional support which should include stakeholders throughout the auto industry supply chain 8 AMT 2009 Regional Meetings

9. Federal Manufacturing Technology Policy Bright spot in 2009 Traditionally, Democrats more willing to fund government R&D programs Obama supports doubling MEP funding and adequate resources for TIP (formerly ATP) Obama proposes new programs to promote development of “Green” technologies AMT will continue to assist members in obtaining federal grants for specific R&D projects 9 AMT 2009 Regional Meetings

10. Employee Healthcare Costs Members’ annual costs for employee health care coverage increased roughly 7% AMT will be playing defense on proposals to increase mandates on employers Obama proposes a “play or pay” mandate Unclear how quickly the new President and Congress will move on broad legislation 10 AMT 2009 Regional Meetings

11. “Card Check” Union Organizing Legislation Favored by unions seeking to reverse flagging membership Would replace current secret ballot system Employer might not even know of vote until after the fact Bill could add an additional 60 million unionized U.S. jobs Passed the House: business community helped defeat in Senate in ‘08 Will pass the House in 09; Senate will determine bill’s fate Obama supports and has pledged to sign bill AMT is part of the Coalition for a Democratic Workplace 11 AMT 2009 Regional Meetings

12. MACHINE TOOLPAC Raised $83,400 in 2007-08 election cycle Distributed $68,500 to pro-manufacturing candidates We need your approval! Granting approval DOES NOT require you to contribute Companies giving approval receive a U.S. House Mace letter opener as our gift You can sign, give approval and contribute online: www.AMTonline.org/TOOLPAC 12 AMT 2009 Regional Meetings

13. Highlights of AMT’s Legislative Activities to Date Successfully lobbied for Bonus Depreciation/Sec. 179 in the 2008 Economic Stimulus Package – continuing effort to extend provisions in 2009 Stimulus Lobbied for inclusion of all tiers of the automotive supply chain in restructuring plans Helped defeat “Card Check” Legislation in 2008 – Continuing to lobby in opposition in 2009 Continuing to promote AMT Government Relations priorities to members of the 111th Congress through emails, press releases, direct lobbying, grassroots, etc. 13 AMT 2009 Regional Meetings

14. What does the CHANGE mean to your business? Stimulus package TARP Longer term Tax Changes Labor Green 14 AMT 2009 Regional Meetings

15. What will be the impact? Cabinet Changes 15 AMT 2009 Regional Meetings

16. Key Players in the Obama Administration President Chief of Staff Secretary of Treasury Barack Obama Rahm Emanuel Timothy Geithner Secretary of Health and Human Services Tom Daschle Vice President Secretary of State Secretary of Defense Joe Biden Hillary Rodham Clinton Robert Gates Secretary of Commerce United States Trade Representative Ron Kirk ??? 16 AMT 2009 Regional Meetings

17. USTR Xavier Becerra refusal Second Choice – Ron Kirk Mayor Lawyer 17 AMT 2009 Regional Meetings

18. Export Controls Defense Michèle Flournoy Shift Change State Larger role 18 AMT 2009 Regional Meetings

19. What’s Likely Exports Controls Defense easier Tougher State ( Human Rights) Trade Progress slowed More about getting out of deals than new ones Protectionist leanings 19 AMT 2009 Regional Meetings

20. Test 20 AMT 2009 Regional Meetings

21. Good Stuff Energy – A Green Administration Wind Power Nuclear Alternative fuels Medical Equipment Off Highway Aerospace (another 18 months) Marginal Mfg 21 AMT 2009 Regional Meetings

22. 22 AMT 2009 Regional Meetings