Manufacturing Wins

Tax reform in 2017 led to unprecedented levels of manufacturing job creation, wage growth and capital investment. But our progress is at risk: devastating tax increases are scheduled for the end of 2025. Manufacturers need Congress to preserve tax reform in its entirety so we can hire more workers, increase wages, expand facilities and invest for the future.

Key Facts

94%
of manufacturers agree that Congress should act before the end of 2025 to prevent tax hikes on manufacturers
93%
of small manufacturers agree that the loss of the pass-through deduction will impact their ability to grow, create jobs and invest in their business
73%
of manufacturers agree tax increases will limit capital investment opportunities
65%
of manufacturers agree tax increases will decrease job creation

The figures above were collected in the NAM’s 2024 First Quarter Manufacturers’ Outlook Survey.

 

Fighting for Tomorrow

Pro-growth tax policies from the 2017 tax reforms, which were rocket fuel for manufacturers, are set to expire at the end of 2025. Since the Tax Cuts and Jobs Act was signed into law, manufacturers have kept their promises to raise wages, hire workers and invest in their communities. But looming tax hikes have put manufacturers on a path of uncertainty, hindering their ability to innovate with new equipment and technology, fund research and development, invest in their workforce and remain competitive on both domestic and global fronts.

When manufacturing grows, the economy grows. Millions of American workers are depending on the manufacturing sector to continue driving America forward. By preventing pro-growth tax policies from expiring in 2025, Congress will preserve a competitive tax system that spurs job growth across our communities, secures the U.S. as a global leader in innovation and reinforces America’s competitiveness on the world stage.

2025 will be nothing short of a tax reckoning as Congress decides how to end the tax reform story. Allowing tax reform to sunset will undermine much of the progress we’ve made since 2017. At Husco, tax hikes will slow our growth and prevent us from investing in job-creating projects that support our community and our economy.
— Austin Ramirez, President & CEO of Husco International
Ketchie will be directly harmed by the loss of the pass-through deduction, the increase in our tax rates, and the reduced protection from the estate tax. If Congress doesn’t act now and in 2025, manufacturers will be competing with one hand tied behind our back for the foreseeable future.
— Courtney Silver,
President and Owner, Ketchie, Inc. Chair, the NAM Small and Medium Manufacturers Group

What’s at Stake

Much is at stake for manufacturers and manufacturing families. Below are critical policy recommendations that Congress and the President should act on to prevent damaging tax increases from stunting manufacturing job creation, growth and innovation

READ MORE: “WHAT’S AT STAKE”

  1. 1
    Pass-Through Deduction: Protect the 20% deduction that has allowed small businesses organized as pass-throughs to compete on a level playing field
  2. 2
    Corporate Tax Rate: Preserve the 21% corporate tax rate, which has stimulated economic activity here at home and has bolstered America’s competitiveness on the world stage
  3. 3
    Individual Tax Rates: Prevent damaging tax hikes on manufacturing families and pass-through manufacturers that pay tax at individual rates
  4. 4
    Research and Development: Restore immediate R&D expensing and preserve America’s leadership in R&D and innovation
  1. 5
    Full Expensing: Preserve the ability for manufacturers to immediately expense 100% of the cost of capital equipment purchases
  2. 6
    Interest Deductibility: Support manufacturers’ efforts to get job-creating projects off the ground by returning the U.S. to an EBITDA standard for interest deductibility
  3. 7
    Estate Tax: Preserve tax reform’s increased exemption threshold or eliminate the estate tax altogether
  4. 8
    International Tax: Prevent tax increases on globally engaged manufacturers

Share Your Voice

By sharing our voices, manufacturers play a vital role in advocating for a tax environment that fosters a competitive landscape for manufacturers to thrive and contribute to our economic prosperity. We encourage you to share with us your thoughts on why fighting for pro-growth tax provisions is critical for manufacturing’s competitiveness. In doing so, you’re helping to equip the NAM with our most powerful advocacy tool: the manufacturing voice.

“Tax reform’s small business relief provisions were clearly helpful. Their investments meant more business for us and our employees. It made it easier to invest for the future and to weather some of the recent challenges. Keeping the tax code competitive—and making more improvements—is just so important for manufacturers’ future.”

—Lisa Winton, CEO and Co-Owner, Winton Machine Company