Reconciliation Bill Puts Tax Target on Manufacturers
Washington, D.C. – Following the vote on the Build Back Better Act in the U.S. House of Representatives, National Association of Manufacturers President and CEO Jay Timmons released this statement:
“This bill, regardless of its intentions, is paid for by taxes that will hit manufacturers harder than other industries. We oppose this legislation that would stifle our ability to expand our operations, hire more workers and raise wages and benefits. This comes at a time when Americans are counting on manufacturers to lead our recovery and respond to supply chain challenges. The ‘book tax’ in particular harms manufacturers more than others because it increases the cost of machinery and equipment purchases, which are central to manufacturers’ operations and our ability to create and support American jobs. The tax reforms of 2017 gave manufacturers the tools to invest in our people and our communities, making 2018 the best year for manufacturing job creation in more than two decades. We should build on that progress—not return to archaic tax policies or target manufacturers with new taxes.
“We also strongly oppose the new provisions on drug pricing that will slow down pharmaceutical manufacturers’ capability to further accelerate the type of innovation that helped us fight back against COVID-19. Congress should not be putting future cures at risk. Manufacturers call on senators to oppose this bill.”
Background on 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.
- 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.
- Manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively.
- Overall, manufacturing production grew 2.7% in 2018, with December 2018 being the best month for manufacturing output since May 2008.
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 12.5 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.