Doing Nothing Costs Us Something

Manufacturers’ Study Shows Cost of Inaction on Tax Reform

Washington, D.C., January 15, 2015 – The delay by Washington lawmakers in overhauling the nation’s tax code is holding back the economic benefits of enacting a series of pro-growth tax policies, according to a new study commissioned by the National Association of Manufacturers (NAM) and conducted by economists at the University of Tennessee and the University of Kansas.

A Missed Opportunity Tax Study CoverThe analysis focuses on the macroeconomic impact of five policy changes: a maximum corporate tax rate of 25 percent; a globally competitive international tax system; full expensing for capital equipment; enhanced and permanent research and development incentives; and parallel changes for non-corporate pass-through businesses. According to the study, this five-pronged strategy over 10 years would:

  • Increase GDP by more than $12 trillion relative to Congressional Budget Office projections;
  • Increase investment by more than $3.3 trillion; and
  • Add more than 6.5 million jobs to the U.S. economy.

“This study confirms what manufacturers learned the hard way—uncertainty caused by political gridlock takes a toll on the economy,” said NAM President and CEO Jay Timmons. “Comprehensive tax reform for manufacturers of all sizes is essential to unleashing the economic power of manufacturing and making the United States the best place in the world to manufacture. Our outdated and uncompetitive tax system is holding us back from competing with nations that have adopted pro-growth systems.”

For more information on the study, visit www.nam.org/taxstudy.

 

-NAM-  

  The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12 million men and women, contributes $2.09 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.