Press Releases

Washington, D.C. – As Congress continues to debate a reconciliation bill that could roll back the economic benefits of tax reform and cost America millions of jobs, the National Association of Manufacturers announced a seven-figure national ad campaign highlighting the legislation’s devastating impact on manufacturers, even as the industry helps the nation recover from the COVID-19 pandemic.

“Following the passage of the Tax Cuts and Jobs Act in 2017, manufacturers kept their promise to hire more workers, increase wages and invest here in America,” said NAM President and CEO Jay Timmons. “Returning to archaic tax policies on small and large businesses puts all those gains in jeopardy. That’s not how you build an opportunity economy. Leaders in Congress should be focused on policies that keep our sector strong—like the bipartisan infrastructure bill—not tax increases that will cost us American manufacturing jobs.”

Background:

Manufacturing growth following the enactment of 2017 tax reform:

• In 2018, manufacturers added 263,000 new jobs. That was the best year for job creation in manufacturing in 21 years. (U.S. Bureau of Labor Statistics)
• In 2018, manufacturing wages increased 3.0% and continued going up—by 2.8% in 2019 and 3.0% in 2020. Those were the fastest rates of annual growth since 2003. (U.S. Bureau of Labor Statistics)
• Manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively. (U.S. Census Bureau)
• Overall, manufacturing production grew 2.7% in 2018, with December 2018 being the best month for manufacturing output since May 2008. (Federal Reserve Board)

An NAM-commissioned study shows that raising taxes on manufacturers, including an increased business rate of 25%, would cost the following:

• 1 million jobs and $107 billion in GDP lost in the first two years
• 500,000 jobs lost on average each year over the next decade

NAM Q3 Manufacturers’ Outlook Survey:

• Nearly 94% of manufacturers said that higher taxes would be harmful to their businesses.
• Roughly 90% of respondents said that their company would find it more difficult to expand their workforce, invest in new equipment or expand facilities if the tax burden on income from manufacturing activities increased.
• Nearly 91% said that higher taxes would also make it more difficult to raise employee wages.

To learn more, visit nam.org/savejobs.

-NAM-

The National Association of Manufacturers 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 12.4 million men and women, contributes $2.52 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 58% 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org