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Outlook Survey: Failure to Stop Tax Hikes Will Devastate Industry

If Congress doesn’t stop impending tax increases, manufacturers and the larger U.S. economy will feel the pinch—and badly, according to findings from the NAM’s Q2 2024 Outlook Survey, out today.

What’s going on: The survey of manufacturers, conducted this quarter from May 14 to June 3, spotlights the criticality of Congress moving now to “prevent tax increases that will limit the industry’s ability to create jobs, support their communities and compete in the global economy.”

  • The tax hikes would come in the form of the expiration of pro-growth tax provisions scheduled for the end of 2025.
  • Earlier this month, the NAM launched its “Manufacturing Wins” campaign to extend the provisions, which NAM President and CEO Jay Timmons has called “rocket fuel” for the manufacturing sector.

Key findings: The chief takeaways of the most recent Outlook survey include:

  • Some 73% of manufacturers say congressional failure to stop the tax increases will limit their capital investment opportunities.
  • Almost 94% agree that Congress should move to prevent the increases before the end of next year.
  • Approximately 71.9% feel positive or somewhat positive about their companies’ futures, the seventh consecutive reading to come in under the moving average of 74.8%.

The last word: “If Congress does not take action, job creation, wage growth and investments in communities—in short, America’s manufacturing edge—will be at risk, as well as our country’s ability to attract meaningful investments into our economy,” Timmons said.

  • “The House, the Senate and the White House need to come together to reinstate the critical provisions that have already expired or begun phasing out, and to stand strong to protect those set to expire at the end of 2025.”
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