The National Association of Manufacturers on Tuesday launched an industry-wide effort to educate Congress and the president on the need for urgent action to preserve pro-growth 2017 tax reform provisions set to expire at the end of 2025.
NAM’s Manufacturing Wins campaign seeks to convince policymakers what’s at stake if the tax reforms sunset and notes the benefits – increased job creation, capital spending and manufacturing output – that have all come from the 2017 Tax Cuts and Jobs Act.
“The transformative impact of 2017 tax reform cannot be overstated,” NAM President & CEO Jay Timmons said Tuesday. “Tax reform was rocket fuel, igniting a resurgence in the manufacturing sector. It put into place competitive policies that fueled record job creation, wage growth, capital investment and innovation.
“However, if Congress does not act, next year’s expiration of these powerful force multipliers will undo much of the progress made by our industry and America,” Timmons said. “Manufacturers are putting a stake in the ground and warning policymakers to stand up against any tax increases on the people who make things in America.”
NAM submitted a letter Tuesday to House Ways and Means Committee Chair Jason Smith (R-MO) and Ranking Member Richard Neal (D-MA) and Senate Finance Committee Chair Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) outlining manufacturers’ tax priorities for 2025.
The Manufacturing Wins campaign also includes an online document, What’s at Stake: Manufacturers Face Devastating Tax Increases in 2025, which details the pro-growth policies from the Tax Cuts and Jobs Act and explains why allowing them to expire would damage the manufacturing economy.
The “Manufacturing Wins” issue page on NAM’s website also provides a hub for 2025 tax content as well as opportunities for manufacturers to share their stories directly with Congress and the administration.
Courtney Silver, the president and owner of Ketchie and the chair of NAM’s Small and Medium Manufacturers Group, said that if Congress fails to act before the end of 2025, “manufacturers will be competing with one hand tied behind our back.”
“Manufacturers across the country promised to take tax reform’s pro-growth provisions and ensure they had a direct positive impact on American lives,” Silver said. “We kept our promises. We created jobs, we purchased equipment, and we gave back to our communities. I urge Congress to build on the promise of tax reform to enable manufacturers to do even more.”
A recent NAM survey found that if Congress fails to act before the end of 2025 to prevent manufacturing tax increases, 73% of manufacturers would be forced to limit capital investments, 65% would have to reduce job creation and 52% would spend less on R&D, among other damaging impacts.
Additionally, 93% of pass-through manufacturers said that the loss of the pass-through deduction, which ensures a level-playing field for small businesses that pay tax at individual tax rates, would harm their ability to grow, create jobs and invest in their business.
