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With critical tax policies set to expire next year, the NAM yesterday hosted congressional leaders who are tasked with finding solutions to keep a pro-manufacturing tax code intact.

The background: The 2017 tax reforms were rocket fuel for manufacturers in America, helping businesses across the country—particularly small manufacturers— create jobs and raise wages, strengthen production, purchase new equipment and reinvest in their communities.  Yet many of those policies are slated expire at the end of 2025—creating a “tax cliff” that would be devastating to manufacturers nationwide.

• The House Ways and Means Committee has established a set of 10 “tax teams” to focus on various areas of the economy that will be affected by the expiration of tax reform—including one that will focus exclusively on manufacturing.

The event: As part of Manufacturing Wins (the NAM’s 2025 tax campaign) the NAM hosted the Manufacturing Tax Team for a roundtable discussion with manufacturers on the issues the sector will face in 2025. Manufacturers were joined by Rep. Vern Buchanan (R-FL), who chairs the group, as well as Manufacturing Tax Team members Reps. Claudia Tenney (R-NY) and Nicole Malliotakis (R-NY).

The conversation: Participants in the event discussed a range of topics, including:

• The importance of 2017 tax reform to American manufacturing and the need for pro-growth tax policies for the U.S. to remain globally competitive;
• The benefits of the pass-through deduction and the decrease in the top individual income tax rate for small manufacturers across the country; and
• The need to preserve the 21% corporate tax rate to protect the manufacturing supply chain and the importance of tax incentives that reduce the cost of job-creating investments.

The takeaway: “Our country is facing a tax cliff next year unlike anything we’ve seen,” said Rep. Buchanan. “It was great to be with the NAM and the manufacturing community this morning as we kick off the work of the Manufacturing Tax Team. Now is the time for Congress to roll up our sleeves and preserve and build on the pro-growth, pro-manufacturing policies that made up 2017 tax reform.”

Our work: “Congress must act before the end of 2025 to prevent devastating tax increases,” said NAM Vice President of Domestic Policy Charles Crain. “Manufacturers are working closely with lawmakers, on the Manufacturing Tax Team and throughout Congress, to prevent these devastating tax increases, bolster manufacturing across the country and support the economic stability and growth of local communities.”