As Congress and the Administration continue to make progress on negotiations to invest in our nation’s failing infrastructure, the National Association of Manufacturers released a new study detailing the short- and long-term damage to the American economy if the corporate tax rate were raised to 25%, the top marginal tax rate were increased, the 20% pass-through deduction were repealed, certain expensing provisions were eliminated and more. In April, the NAM released a study on the harmful impacts of rolling back key provisions of the 2017 tax law including raising the corporate tax rate to 28%.
The negative consequences would include:
Jobs lost over two years.
Average jobs lost each year over the next decade.
Loss in GDP over first two years.
The conclusion of this study is inescapable—following through with tax hikes that give other countries a clear advantage will mean far fewer jobs created in America.
LEARN MORE: Dynamic Estimates of the Macroeconomic Effects of Tax Rate Increases and Other Tax Policy Changes
The NAM partnered with Rice University economists John W. Diamond and George R. Zodrow to conduct the study. Their economic modeling is widely respected and is regularly used in analyses conducted by the U.S. Department of Treasury and the Joint Committee on Taxation.