The National Association of Manufacturers (NAM) has recently launched the Manufacturing Wins campaign. With many aspects of the 2017 Tax Cuts and Jobs Act set to expire at the end of 2025, NAM is concerned that tax increases will hinder manufacturers, especially small and medium businesses. The Manufacturing Wins program is designed to inform government officials about the importance of pro-growth tax policies to the manufacturing industry and how raising taxes could impact growth throughout the economy. According to NAM, if the 2017 tax reform is not preserved, then the manufacturing industry will be unable to create new jobs, expand as quickly, and continue to innovate.
NAM has identified eight key areas that have been or will be affected by changing tax laws. These include
- Pass-through deduction, which offered a 20% deduction for small manufacturers
- Corporate tax rates, which fell from 35% to 21%
- Individual tax rates, which saw decreased income taxes for most Americans
- Research and development, which allowed manufactures to fully deduct R&D expenses in the year incurred
- Full expensing, which permitted manufacturers to immediately expense 100% of the cost of capital equipment purchases
- Interest deductibility, which enabled manufacturers to deduct interest on business loans on earnings before interest, tax, depreciation and amortization (EBITDA).
- Estate tax, which harms family-owned businesses
- International tax, which made it more cost effective for manufacturers to locate their headquarters, assets and intellectual property in the U.S.
What people are saying
In a recent quote, NAM Small and Medium Manufacturers Group Chair Courtney Silver, president and owner of precision machining company Ketchie, said, “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.”
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.”
NAM in the news
NAM files lawsuit to block OSHA’s finalized “walkaround” rule
The NAM believes that this change fails to advance OSHA’s mission of ensuring workplace safety, goes beyond the department’s authority, and violates businesses’ rights.
NAM and Make UK partner to support manufacturing in the U.S. and U. K.
According to NAM, this MOU will serve as a roadmap that will outline both organizations’ goals and objectives.
NAM releases the results of its Q1 2023 Manufacturers’ Outlook Survey
The survey, which was conducted from February 21 to March 7, 2023, included an array of topics from tax and permitting to trade policies.