NAM Study Shows Importance Of Extending 2017 U.S. Tax Cuts
A new report released by the National Association of Manufacturers found the U.S. economy will face significant headwinds if Congress and the White House do not extend expiring provisions of the Tax Cuts and Jobs Act (TCJA). The study was conducted in partnership with EY.
Specifically, letting the provisions end at the end of 2025 would:
- Put nearly six million U.S. jobs at risk;
- Reduce U.S. employee wages by nearly $540 billion; and
- Wipe out approximately $1.1 trillion from the U.S. economy.
The manufacturing industry would bear the brunt of this economic damage, according to the study. For example, more than 1.1 million manufacturing jobs and $126 billion in manufacturing worker wages are on the line if Congress does not preserve critical pro-manufacturing policies from the TCJA.
As NAM, the Metals Service Center Institute, and other allies have argued ever since these tax cuts were put into place in 2017, by lowering both the corporate and individual tax rates, and instituting a deduction for pass-through businesses — along with numerous other pro-manufacturing and pro-metals provisions — the TCJA made U.S. businesses more competitive with their international counterparts. (Keep in mind: prior to the TCJA, the U.S. corporate tax rate was 35 percent while the worldwide average was 23 percent.)
Along with an uncompetitive international tax regime that disincentivizes investment in the U.S., if Congress does not act this year, industrial metals companies and the wider manufacturing industry will face higher taxes on pass-through businesses and family-owned firms and increased costs for research and development, capital equipment purchases, and business loans.
Read more about expiring TCJA provisions at this link. Read the full National Association of Manufacturers report at this link.
Interested in how your region would be affected if Congress allows the TCJA to expire? Visit this link to learn more.