Information from Council of Manufacturing Associations
NAM Study: Tax Provisions’ Expiration Will Cost U.S. Jobs, Wages, GDP: Allowing crucial pro-manufacturing tax provisions to expire will be devastating for the U.S. economy, according to a landmark EY study released last week by the NAM.
What’s going on: “Pro-growth tax policies from President Trump’s 2017 tax reforms were rocket fuel for manufacturers and made the U.S. economy more competitive on a global scale,” NAM President and CEO Jay Timmons said.
But in 2022, key provisions began to expire—and additional tax reform measures are scheduled to sunset at the end of this year. If Congress doesn’t preserve these pro-growth policies, the U.S. economy will face dire consequences:
- Nearly 6 million jobs will be put at risk.
- Approximately $540 billion in employee compensation will be lost.
- U.S. GDP will be reduced by $1.1 trillion.
Manufacturing impact: The manufacturing industry will bear the brunt of this economic damage, according to the study.
- 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 Tax Cuts and Jobs Act.
The onus is on Congress: “It is the responsibility of Congress to act quickly so we can protect Americans’ livelihoods, prevent wage decreases and avoid the largest tax hike in history,” said House Speaker Mike Johnson (R-LA). Critical players: The U.S. economy relies heavily on manufacturers, which in turn rely on competitive tax policy—and that makes these provisions’ renewal crucial, said Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and NAM Board Chair Kathy Wengel.
- “[M]anufacturers—both large and small—drive innovation, create opportunity and strengthen communities across the country. ... Maintaining competitive tax policy is essential to sustaining this momentum.”
CMA Advocacy: You can find template social posts here and a social graphic summarizing the study results here. You can also find both state-based and national graphics in a ZIP folder available here. Thank you to our members who have taken initial steps to amplify the NAM’s tax study this week. Let us know of any activity we can help magnify.
- American Forest & Paper Association: The National Association of Manufacturers (NAM) released a study analyzing the economic impact should current Tax Cuts and Jobs Act policies expire. They found 6 million jobs are at risk as well as a $1.1 trillion GDP loss. We’re urging Congress and President-elect Trump’s administration to act quickly to extend these key tax policies before they expire and build upon the good work they achieved in 2017.
- International Sign Association: Pro-manufacturing Trump Tax Reforms are set to expire at the end of 2025, and the stakes for manufacturers are high. With new data released by @ShopFloorNAM showing 6 million jobs at risk, Congress must act to support manufacturers. #ManufacturingWins
- Metal Service Center Institute: Pro-manufacturing tax reforms are set to expire at the end of 2025, & the stakes for manufacturers & metals companies are high. With new data released by @ShopFloorNAM showing 6 million jobs at risk, Congress must act. #ManufacturingWins when #MetalMatters
Resources for CMA Members: To help your association and member companies to engage Congress, see some of the below tools that we have available for you:
- The national summary of the study’s findings, as well as custom one-pagers with state and district data relevant to individual congressional offices. The state documents can be downloaded from the ZIP folder available here.
- What’s At Stake, a collection of short, straightforward explainers designed to educate policymakers on the pro-growth tax provisions Congress must preserve in order to protect the 6 million American jobs at stake in 2025.
