Tax

As part of its “Manufacturing Wins” campaign to preserve pro-manufacturing tax provisions, the NAM hosted a roundtable this week with Reps. Carol Miller (R-WV) and David Kustoff (R-TN)—respectively the chair and a member of the Ways and Means Committee Supply Chain Tax Team.

Preparing for 2025: The Supply Chain Tax Team has jurisdiction over the corporate income tax rate. Tax reform reduced the corporate rate to 21%, spurring the creation of thousands of new manufacturing jobs—and the NAM is working with Congress to ensure the U.S. maintains a competitive corporate rate as policymakers debate next year’s “tax Armageddon.” 

Understanding the benefits: Rep. Miller emphasized that the dollars saved due to tax reform’s lower corporate rate have supported job creation, higher wages and the flourishing of local communities.

• As a business owner herself, she said she believes it’s important for members of Congress in charge of tax policy to understand the risks businesses take, the communities they support and the certainty they need to be successful.

Measuring the impact: Rep. Kustoff emphasized the importance of real-world data on the benefits of the lower corporate tax rate—from the number of jobs created to the work businesses have done to provide their employees with bonuses and higher wages.

• According to Rep. Kustoff, real-world metrics are important for educating policymakers about the need for action, as crucial, pro-manufacturing tax provisions are set to expire at the end of 2025.

Recognizing the ripples: The discussion also touched on the wider impact of tax increases on global supply chains and the broader U.S. economy.

• Participants noted that a higher corporate income tax rate’s ripple effects would hurt companies throughout the economy—even when those companies are pass-throughs and not explicitly affected by the corporate income tax rate.
• That’s because these small businesses often sell to and partner with larger corporations that would have less capital available under a higher corporate rate.

Our take: “Prior to 2017 tax reform, the U.S. had the highest corporate tax rate among the more than three dozen countries in the Organisation for Economic Cooperation and Development and the third highest in the entire world,” said NAM Vice President of Economic Policy Charles Crain.

• “That put manufacturers in America at an alarming disadvantage. A competitive tax rate helps business compete in the global economy, leads to job creation, investments and purchases of new equipment and allows manufacturers to give back to their communities.”
• “If Congress were to raise the corporate rate, it would force America to take a step back on the global stage—at a time when other countries around the world are implementing more competitive tax agendas.”

Rep. Randy Feenstra (R-IA), the vice chair of the House Ways and Means Committee’s Rural America Tax Team, is working to shield family businesses across America from damaging tax burdens by targeting the estate tax for repeal.

As part of the NAM’s “Manufacturing Wins” campaign, which aims to protect pro-manufacturing provisions from 2017 tax reform set to expire in 2025, the NAM spoke with Rep. Feenstra about his work and why it matters to manufacturers. 

Nixing the tax: Tax reform doubled the valuation threshold under which family-owned businesses’ assets are exempt from the estate tax. While Rep. Feenstra is working to prevent that increased threshold from expiring, he has a bigger goal in sight: repealing the estate tax altogether.

• Feenstra is the sponsor of the Death Tax Repeal Act, which “makes the simple recognition that death should not be a taxable event,” he told us.
• “When a family is grieving, the federal government sends a multimillion-dollar tax bill as condolences. This is simply wrong.”

Listening to owners: Rep. Feenstra and his colleagues on the tax team have spoken to family businesses across the country, including manufacturers. These conversations have made it clear that “we still have a lot of work to do to provide relief from what can be a devastating setback for multigenerational family businesses,” he said.

• “Repealing this tax is going to be one of my top priorities in 2025, and I’m proud to have the support of 170 of my colleagues,” he added.

Persecuting small business: As Rep. Feenstra explains, the estate tax often threatens to destroy small manufacturers, whose value is often tied up in illiquid assets like equipment and facilities.

• “People often don’t realize that businesses over many generations can accumulate assets that can put them over the asset threshold, but that doesn’t mean these businesses have a lot of cash on hand,” he explained. “So, when they’re hit with millions in new taxes, that can sink an already cash-strapped business.”
• “Fortunately, because of the doubling of exemption amount, far fewer businesses face that threat,” he added. However, “As long as any family business does face that threat, we still have work to do.”

If tax reform expires… Rep. Feenstra warns that if tax reform’s estate tax changes expire, many additional smaller businesses will suffer.

• “A lot more people would be hit by the death tax, and the people who are hit would be paying a much higher tax,” he said.
• “These are small family businesses we are talking about, and if the current exemption amount is allowed to return to half its current value, that means the size of the businesses getting hit are much smaller than they are today.”

The last word: “As we go into 2025, we need to be focused on policies that support growth and help [family-owned] businesses succeed, not create costly obstacles for them to overcome,” Rep. Feenstra concluded. 

Learn more: You can read our full Q&A with Rep. Feenstra here and learn more about the NAM’s “Manufacturing Wins” tax campaign at NAM.org/MfgWins.

The NAM recently interviewed Rep. Randy Feenstra (R-IA), the vice chair of the House Ways and Means Committee’s Rural America Tax Team, about the estate tax and why he’s working with colleagues on Capitol Hill to repeal it.

NAM: Rep. Feenstra, Congress is facing a “Tax Armageddon” next year, as crucial provisions from 2017’s Tax Cuts and Jobs Act are set to expire. As a member of the Ways and Means Committee, what is your focus moving into next year’s debate? 

Rep. Feenstra: One of those crucial provisions from the Tax Cuts and Jobs Act that is set to expire is the doubling of the estate tax exemption amount, which currently sits at $13.6 million in 2024. After 2025, it will return to half that amount, adjusted for inflation. That change in the Tax Cuts and Jobs Act was another important step toward full repeal of the estate tax, which my Death Tax Repeal Act would do. The bill makes the simple recognition that death should not be a taxable event. When a family is grieving, the federal government sends a multimillion-dollar tax bill as condolences. This is simply wrong.

I’m proud to co-chair the Rural America Tax Team, which has dug into this issue of the “death tax” and the impact it is having on family businesses across the country. As the tax team has spoken to family businesses and estate tax experts from across the country, it’s become increasingly clear that we still have a lot of work to do to provide relief from what can be a devastating setback for multigenerational family businesses. Repealing this tax is going to be one of my top priorities in 2025, and I’m proud to have the support of 170 of my colleagues. 

NAM: The estate tax is imposed on family-owned businesses when ownership of the business passes to the next generation following the death of an owner. As you mentioned, the TCJA doubled the exemption threshold, excluding more assets from taxation and thus reducing the burden of the estate tax on businesses. Why is this important and what is Congress doing to preserve this higher threshold? 

Rep. Feenstra: Over the years, various bills have taken steps toward providing relief for taxpayers hit by the death tax. The Tax Cuts and Jobs Act was one of the largest expansions of that relief, significantly reducing the number of family businesses hit by the tax and reducing the tax burden for those businesses that still are. People often don’t realize that businesses over many generations can accumulate assets that can put them over the asset threshold, but that doesn’t mean these businesses have a lot of cash on hand. So when they’re hit with millions in new taxes, that can sink an already cash-strapped business. Fortunately, because of the doubling of the exemption amount, far fewer businesses face that threat. As long as any family business does face that threat, we still have work to do. 

NAM: At the end of 2025, the estate tax is scheduled to be reduced by half, subjecting more of family-owned manufacturers’ assets to taxation and increasing their estate tax liability. As the Ways and Means Committee and tax teams continue meeting with businesses around the country, what are you hearing on the impact this change would have? 

Rep. Feenstra: Two things: A lot more people would be hit by the death tax, and the people who are hit would be paying a much higher tax. These are small family businesses we are talking about, and if the current exemption amount is allowed to return to half its current value, that means the size of the businesses getting hit are much smaller than they are today. People often think of farms, and that’s certainly true, but as you know, manufacturers are hit, family-owned restaurants, auto dealers, you name it. As we go into 2025, we need to be focused on policies that support growth and help these businesses succeed, not create costly obstacles for them to overcome. If the exemption amount falls to its pre–Tax Cuts and Jobs Act level, that’s a lot of new businesses that are going to be hit by this tax.

Congresswoman Lori Chavez-DeRemer (R-OR) visited Miles Fiberglass & Composites in Clackamas, Oregon, for a roundtable discussion with local manufacturers and other business leaders on the critical need to protect manufacturing-friendly tax policies. Moderated by Miles Fiberglass President and owner and NAM board member Lori Miles-Olund and attended by representatives of the NAM and Oregon Business & Industry, the discussion centered on the importance of preserving the 2017 Tax Cuts and Jobs Act, which has been a lifeline for small manufacturers. 

Stimulating growth: “The 2017 Tax Cuts and Jobs Act freed up capital for us to hire more people, invest in new equipment and increase wages,” said Miles-Olund. “It’s essential for manufacturers like us to have a pro-growth tax code that allows us to stay competitive and innovate.”

• The 2017 reforms lowered the corporate tax rate and provided a 20% pass-through deduction for small businesses, boosting their growth for the past seven years.
• However, with key provisions set to expire in 2025, many manufacturers are concerned about the harm to their businesses if Congress fails to act.

A looming threat: Rep. Chavez-DeRemer addressed the impending expiration of these tax provisions, saying, “We cannot afford to return to a tax system that punishes manufacturers for investing in the U.S.”

• She also highlighted the economic ripple effects of tax hikes, noting that when manufacturers are forced to scale back investments, it affects not just their operations but also their suppliers and communities.
• OBI President and CEO Angela Wilhelms echoed these concerns. “Preserving these tax reforms is essential to ensuring that Oregon businesses remain competitive on a global stage,” she said.

Empowering women: Rep. Chavez-DeRemer also discussed the importance of empowering women in the manufacturing sector. She praised Miles Fiberglass’ efforts to recruit more women, adding that legislation like the National Apprenticeship Act can help open doors for women and close the skills gap in manufacturing. 

The last word: “We need policies that allow manufacturers to thrive,” Rep. Chavez-DeRemer said. “Congress must prioritize protecting jobs, ensuring economic stability and keeping American manufacturing competitive.”

If you want to add your voice to the fight for tax reform, or host legislators for a facility visit, check out the NAM’s “Manufacturing Wins” campaign.  

Passing on the family business can also mean passing on a big tax bill, and family-owned manufacturers are speaking out to keep those bills from getting any bigger. 

What’s happening: As part of its “Manufacturing Wins” campaign to preserve 2017 tax reform, the NAM is calling on Congress to secure the law’s changes to the estate tax.

• Tax reform increased the estate tax exemption threshold, which protects some of a family-owned business’s assets from the tax.
• The threshold is set to be slashed in half at the end of 2025, subjecting more of family-owned manufacturers’ assets to taxation and making it harder for them to pass their business on to the next generation.

Protecting physical assets: Manufacturers constantly invest in physical assets like facilities and machinery to stay competitive, making the estate tax especially damaging.

• “We’re not a liquid company,” said Tom Tredway, president of Erie Molded Packaging in Pennsylvania. “Almost every penny we earn is poured back into our business so we can grow and compete. The increased estate tax exemption threshold is set to expire at the end of 2025, which will threaten my ability to pass the business on to my children.”
• “The estate tax doesn’t just hurt family businesses—it hurts the workers,” added Scott Livingston, president and CEO of HORST Engineering in East Hartford, Connecticut. “It also hurts our customers and the communities that we serve.”

Preserving company values: For Click Bond, a family-owned adhesives manufacturer in Carson City, Nevada, paying a higher estate tax bill could mean compromising the business’s vision and values.

• “We may have become a family business by happenstance, but we remain one by strategy,” said CEO Karl Hutter. “With reduced lifetime estate tax exemptions, family businesses will face the threat of having to liquidate, divest or take in outside capital that may not align with their strategy or values simply to create liquidity to pay a tax bill.”
• “The estate tax rips financial resources from productive organizations,” said Dave True of the 76-year-old True Companies in Casper, Wyoming. “These financial resources are critical to small companies and the families they support.”

Saving livelihoods: For some families, the estate tax threatens to turn a death in the family into the death of the business.

• “When I lost my husband to brain cancer, not only did I have to worry about keeping the business afloat, but I also had to worry about a looming tax bill that might have forced us to halt production altogether,” said Courtney Silver, president and owner of Ketchie, Inc. in Concord, North Carolina.
• Silver, who chairs the NAM’s Small and Medium Manufacturers Group, continued: “If not for the federal estate tax exemption being increased in 2017, Ketchie might not be here today.”

The last word: Lori Miles-Olund, the third-generation owner and president of Miles Fiberglass & Composites, Inc. in Clackamas, Oregon, put it simply: “Congress must preserve the increased estate tax exemption to protect family-owned businesses like ours from potential insolvency when the owner passes away.” 

Congress should preserve tax reform’s changes to the estate tax, protecting family-owned manufacturers from tax increases scheduled for the end of 2025, according to a new explainer published by the NAM as part of its “Manufacturing Wins” tax campaign.

The background: In 2017, tax reform doubled the value of assets that could be exempt from the estate tax, a levy imposed on family businesses upon the death of their owners, when proprietorship passes to the next generation.

What’s going on: This valuation threshold is scheduled to be cut in half at the end of 2025, subjecting more assets of family-owned manufacturers to taxation and increasing these companies’ tax liability.

Why it’s important: A bigger tax burden would threaten the continued existence of family-owned companies and make it more difficult to pass family businesses on to the next generation.

• These firms could be forced to liquidate operation-critical assets, such as facilities and equipment, in order to pay the estate tax.
• An increased estate tax bill could mean that family-owned manufacturers are forced to take on debt, limit operations, reduce employee headcount or close entirely following the death of a loved one.

What else is at risk: Some legislators have floated the idea of repealing or limiting stepped-up basis, which stops a business owner’s heirs from being forced to pay capital gains taxes on asset appreciation that took place while the owner was alive.

What must be done: “Congress must preserve tax reform’s increased estate tax exemption threshold and maintain stepped-up basis,” said NAM Vice President of Domestic Policy Charles Crain.

• “Protecting family-owned manufacturers from the estate tax will prevent these small businesses from incurring costly and damaging tax bills that threaten their viability following the death of a loved one.”

Manufacturers are counting on Congress to preserve tax reforms that acted as “a shot in the arm” but are now at risk of expiring, Sukup Manufacturing Co. President and CEO Steve Sukup told the House Ways and Means Committee recently.

What’s going on: The committee held a field hearing at the Iowa State Fair in Des Moines last month to hear from local companies about the impact of the 2017 Tax Cuts and Jobs Act on their businesses.

• At Sukup—the world’s largest family-owned and -operated maker of grain storage, drying and handling equipment—tax reform is credited as the single biggest driver of growth in recent years.
• “Sukup has grown over the past several decades, but nothing compares to when the Tax Cuts and Jobs Act was signed into law,” Sukup told committee members. “For example, thanks to the lowering of the corporate rate to 21%, Sukup grew our workforce by a third, adding roughly 200 well-paying manufacturing jobs to our community.”

A business boon: The 61-year-old company was able to make several key investments thanks to tax reform.

• Among these is Sukup’s Safe T Homes, quick-assembly houses made from the company’s grain bins and created after the 2010 earthquake in Haiti to provide people with much-needed shelter. One of the homes was on display at the fairgrounds.
• Another undertaking made possible by tax reform was the world’s largest free-span grain bin, two corn storage containers made for an ethanol plant in Mason City, Iowa. Each bin has a record-breaking capacity of 2.2 million bushels.
• Tax reform’s accelerated depreciation schedule allowed the business to go “from roughly $5 million in capital spending to almost $15 million,” Sukup told committee members.

What’s in jeopardy: The expiration of key tax provisions in 2022 and 2023—with more tax increases scheduled for the end of next year—has made it far more difficult for Sukup to put money back into the business.

• For example, tax reform’s pro-growth interest deductibility standard expired in 2022, making debt financing more expensive. “An accountant once told me, if you don’t have debt, that means you’re not coming up with new ideas,” Sukup said. “Many manufacturers like us borrow funds to finance essential long-term investments,” which are now more costly.
• Sukup is also monitoring looming changes to the estate tax. He called on Congress to protect family-owned manufacturers from the estate tax “so that I can ensure the third and fourth generations of Sukups can continue in our family business.”

Keep it going: Sukup ended his testimony by reiterating the advantages tax reform brought to his business and emphasizing the need for Congress to preserve tax reform in full.

• “Because of these policies, we’ve been able to not only maintain our business, but to provide a great living, health benefits and soon expanded child care for our employees and the community—even as we aid those in need around the globe,” he concluded.
• “I urge you to help us keep that growth streak going. Maintaining the 21% corporate rate, as well as the tax provisions I just described, is so important to manufacturers everywhere.”

Rep. Earl L. “Buddy” Carter (R-GA), a staunch advocate for health care reform and a community pharmacist by profession, visited RYAM’s manufacturing facility in Jesup, Georgia, in August to discuss manufacturers’ health care and tax policy priorities.

During the visit, Rep. Carter emphasized the critical need for pharmacy benefit manager reform as well as tax policies that support manufacturers’ growth and competitiveness.

The visit: Clay Bethea, RYAM’s Jesup plant general manager and vice president of U.S. wood procurement, led Rep. Carter on a tour of the cellulose specialties manufacturer’s facility, where he observed how pulp is dried and finished into sheets and rolls. Bethea highlighted the significant challenges the company faces due to rising costs in health care, particularly those driven by PBMs, and the looming expiration of key tax provisions in 2025.

• “We are proud to be a part of this community, creating jobs and driving economic growth,” Bethea said. “However, the rising costs of health care, particularly due to PBMs, and the uncertainty around critical tax provisions like R&D expensing and accelerated depreciation, are growing concerns for both our business and our employees. Reforming PBMs and maintaining tax policies that allow us to invest for the future are crucial to our ability to remain competitive globally.”

PBM reform: Rep. Carter has long been vocal about the need to hold PBMs accountable for their role in inflating health care costs.

• “PBMs have become powerful middlemen, often driving up drug prices while squeezing independent pharmacies out of the market,” Rep. Carter said during the tour. “It’s time for Congress to bring transparency and fairness back to the system.”
• Carter has introduced and supported several pieces of legislation designed to reform PBM practices, including a bill aimed at delinking PBM compensation from drug prices, improving PBM payments to pharmacies and increasing transparency.

Tax challenges: In addition to health care, Rep. Carter addressed the pressing issue of preserving tax reform.

• “The expiration of accelerated depreciation, R&D expensing and favorable tax rates could significantly hamper the manufacturing industry’s ability to grow and remain competitive globally,” Rep. Carter warned.
• “These tax provisions have been crucial for manufacturers like RYAM, enabling them to make significant investments in their operations and workforce. Losing them would not only impact these companies’ ability to innovate but also jeopardize jobs and economic growth in communities across the country.”

NAM in action: The NAM has long advocated for both PBM reform and the preservation of essential tax policies that drive the manufacturing industry.

• “PBMs are a significant driver of the rising costs of health care, and reform is essential to ensure that manufacturers can provide affordable benefits to their workers,” said NAM Vice President of Domestic Policy Charles Crain.
• “Congress also needs to act with urgency to prevent devastating tax increases scheduled for next year that will impact manufacturers across the country.”

The state-level view: Lloyd Avram, president and CEO of the Georgia Association of Manufacturers, echoed Rep. Carter’s concerns.

• “Manufacturers across Georgia are facing unsustainable health care expenses, and the uncertainty surrounding federal tax provisions only adds to the challenges,” Avram said. “Action on PBM reform and tax policy is essential to helping our industry remain competitive and continue providing good jobs in our communities.”

The bottom line: “Reducing health care costs and increasing transparency in the PBM system are crucial steps in lowering the overall cost of doing business in the U.S.,” said Rep. Carter. “However, to truly compete in the global economy, it’s important that we preserve the policies that have empowered manufacturers to innovate, expand and sustain jobs. Otherwise, the U.S. risks becoming a less attractive place for manufacturing investment, ultimately threatening our economic leadership on the world stage.”

Rep. Dusty Johnson (R-SD) recently visited Smurfit Westrock’s facility in Sioux Falls, South Dakota, to speak with local business leaders and NAM representatives about the importance of maintaining pro-growth tax policies for manufacturers.

The tour: Smurfit Westrock Plant General Manager Gerald Loftin led Rep. Johnson through their state-of-the-art packaging facility, showcasing the company’s innovative solutions and highlighting its role as a major employer in the community, supporting local jobs and economic growth. Smurfit Westrock, a global leader in sustainable paper and packaging, operates in 40 countries with more than 500 packaging converting operations and 63 paper mills.

• “Smurfit Westrock’s success directly benefits the community, providing employment and contributing to the local economy,” Loftin said. “We are proud to be a part of this region and to support the growth and well-being of the area.” 

The threat: NAM Vice President of Domestic Policy Charles Crain addressed the risks posed by expiring tax provisions. “Tax reform was rocket fuel for the manufacturing sector,” Crain explained. “It led directly to record levels of both job creation and wage growth in the years following the bill being signed into law.”

• Crain also emphasized the importance of preserving tax reform in full. “Essential tax reform provisions have already begun to expire—for example, full expensing, which has been crucial for our industry’s ability to invest in new equipment and expand operations, started phasing down last year,” Crain said. “Even more devastating changes are scheduled for 2025, the combination of which will significantly hamper manufacturers’ capacity to modernize and grow, directly impacting competitiveness and job creation.”

Calling on Congress: “Manufacturers are grateful to Rep. Johnson for supporting legislation earlier this year that would have revived immediate R&D expensing, a pro-growth interest deductibility standard and full expensing for capital investments,” Crain said. “We are looking to Congress for leadership and swift action as we work to prevent the harmful tax increases in store next year.”

Listening to manufacturers: Rep. Johnson emphasized his strong support for extending key tax provisions.

• “After seeing firsthand how these tax measures have benefited Smurfit Westrock and hearing about the negative impacts of their expiration, I’m more convinced than ever that we need to act swiftly to extend them,” he said.
• “Full expensing, R&D expensing and competitive tax rates are vital for the continued growth and innovation of our manufacturing sector. I’m committed to working with my colleagues in Congress to ensure we preserve these pro-growth policies before they expire, supporting jobs and economic development here in South Dakota and across the nation.” 

The bottom line: “Extending the 2017 tax reform is not just a priority, it’s a necessity for maintaining America’s competitive edge in manufacturing,” Rep. Johnson concluded.

Get involved: Manufacturers interested in sharing their perspectives on tax reform with congressional leaders or hosting facility tours for U.S. legislators can find more information through the NAM’s “Manufacturing Wins” campaign.

Washington, D.C. Today, Steve Sukup, President and CEO, Sukup Manufacturing Co., testified before the House Ways and Means Committee during a field hearing titled, “The Success of Pro-Growth, Pro-Worker Tax Policy in the American Midwest.”

Below please find his remarks as prepared for delivery:

Good morning Chairman Smith and to all the members joining us this morning.

Thank you for the opportunity to appear before you today at this important hearing. It’s a very special time for our community, and we are grateful to host you today.

My name is Steve Sukup, and I’m President and CEO of Sukup Manufacturing.  We are located just up Interstate 35 in Sheffield, and I am proud to say that Sukup Manufacturing is the largest family-owned and operated manufacturer of grain storage, drying, and handling equipment.

For over sixty years, Sukup has been a critical part of the U.S. food supply chain here in the heartland. Our company is located in Congressman Feenstra’s district, and I’d like to thank him for being here today.

The tax reform bill of 2017 was a shot in the arm for manufacturers across our sector. Sukup has grown over the past several decades, but nothing compares to when the Tax Cuts and Jobs Act was signed into law.

For example, thanks to the lowering of the corporate rate to 21%, Sukup grew our workforce by a third, adding roughly 200 well-paying manufacturing jobs to our community.

The key to Sukup’s success has not only been our culture, but our dedication to creating and pushing our industry forward. Sukup has held over 100 U.S. patents. We are pioneering ways to make grain storage and drying more safe, profitable, and efficient for farmers and ranchers across the country.

This is largely made possible by our massive investments in research and development. In the years following tax reform, Sukup increased our R&D investment by several million dollars, with 95% of that money going towards engineering and staff wages, bringing well-paying jobs to Iowa.

One of these critical R&D investments is our Safe T Homes®. When a catastrophic earthquake struck Haiti in 2010, Sukup’s Safety Manager wanted to develop an efficient, quick-assembly home from one of our grain bins to provide relief. I encouraged him to build a prototype, and today, our Safe T Homes®, as you saw on the fair ground today, are changing lives worldwide.

We also developed the world’s largest 2.2-million-bushel bin for ethanol plants. That is big enough to house a Boeing 767, but yes, the landing is difficult.

Unfortunately, after being part of our tax code for seventy years, the expiration of immediate R&D expensing has made it harder for us to invest in the technologies and products of the future. Congress should reinstate the immediate expensing of R&D so manufacturers like Sukup can continue to innovate.

Following the passage of the 2017 tax law, Sukup went from roughly $5 million in capital spending to almost $15 million, thanks to 100% accelerated depreciation. This allowed us to fund new equipment purchases and fulfill our mission of providing Sukup employees with reliable, safe, and efficient equipment.

Unfortunately, full expensing began to expire in 2023. We believe that was a mistake, as it is common sense that our tax code should encourage investments that leads to growth.

Many manufacturing teams, including our company, would benefit from seeing this provision restored, and Congress should do so immediately.

An accountant once told me, if you don’t have debt, that means you’re not coming up with new ideas. Many manufacturers like us borrow funds to finance essential long-term investments.

Tax reform made it less expensive to take out business loans, which manufacturers use to invest and grow their operations. Unfortunately, this pro-growth standard expired in 2022 as well, making debt financing much more expensive.

We are also counting on you to preserve tax reform’s sensible changes to the estate tax, so that I can ensure the third and fourth generations of Sukups can continue in our family business.

Discussing tax policy before Congress is something of tradition in our family. About 20 years ago, my father Eugene Sukup testified before the Senate Finance Committee, along with Warren Buffett.

Since then, thanks to tax reform, we have had an incredible growth streak in our business, and every one of our employees and customers has benefited. I urge you to help us keep that growth streak going. Maintaining the 21% corporate rate, as well as the tax provisions I just described, is so important to manufacturers everywhere.

Because of these policies, we’ve been able to not only maintain our business, but to provide a great living, health benefits, and soon expanded childcare for our employees and the community—even as we aid those in need around the globe.

Again, thank you for being here today, and thank you for looking at ways to keep Sukup Manufacturing a rural Iowa success story.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.