Proposed Tax Changes to Cost Up to 1 Million U.S. Jobs
Tens of billions in American economic investment at risk with GILTI changes
Washington, D.C. – The National Association of Manufacturers released a study on the damaging effects of proposed changes by the administration to the Global Intangible Low-Taxed Income regime under consideration. The analysis, prepared by EY’s Quantitative Economics and Statistics (QUEST) group, finds that the proposed rate increase, expansion of amounts subject to tax and changes to the method of calculation would have a destructive effect on U.S. employment and economic growth.
“Policymakers should want the next manufacturing dollar spent right here in America. But these proposed tax changes would reduce investment and lead to job losses in the United States, harming manufacturers and manufacturing workers,” said NAM President and CEO Jay Timmons. “In a global economy, U.S. and foreign business activity is interconnected, and we should be doing everything we can to level the playing field, not tilt it against manufacturers in America who are leading our post-pandemic recovery.”
Key findings on the reduction in U.S. jobs and investment:
- The proposed changes to GILTI would reduce domestic employment of globally engaged U.S. firms by between 500,000 and 1 million lost jobs.
- The proposed changes to GILTI would reduce domestic investment of globally engaged U.S. firms by between $10 billion and $20 billion.
Read “Estimated impacts of proposed changes to GILTI provision on US domestic economic activity” here.
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 12.3 million men and women, contributes $2.35 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.