Washington, D.C. – Following the release of an analysis on the damaging effects of a proposed interest expense limitation under consideration by Congress, National Association of Manufacturers Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement.
“Manufacturers are already facing incredible economic headwinds due to increased input costs, labor shortages and strong inflationary pressures. This analysis shows that limiting tax deductions for interest on business loans disproportionately harm manufacturers at a perilous time—costing hundreds of thousands of jobs and billions of dollars in economic growth at a time when our industry is trying to drive our nation’s recovery.
“When Congress passed the Tax Cuts and Jobs Act, manufacturers raised wages, invested in U.S. operations and spurred growth. Congress should be considering proposals that double down on the TCJA’s winning record rather than considering tax increases that will sabotage our recovery.”
The analysis was prepared by EY’s Quantitative Economics and Statistics group.
The EBIT-based 163(j) and proposed163(n) interest expense limitations before market adjustments would cost:
- 623,000 Jobs
- $31.6 Billion in Employee Compensation Annually
- $60.1 billion in GDP Annually
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 12.7 million men and women, contributes $2.71 trillion to the U.S. economy annually 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.