NAM: US Manufacturers Encourage Congress To Address Potential 2025 Tax Increases
Jobs, innovation, investments in America all at risk if tax provisions expire at the end of 2025
The National Association of Manufacturers released its Manufacturers’ Outlook Survey for the second quarter of 2024, which highlights the immediate need for Congress to take action to prevent tax increases that will limit the industry’s ability to create jobs, support their communities and compete in the global economy.
“When Congress passed tax reform, manufacturers in the U.S. invested in their workers and businesses at a level that had never before been seen. In 2018, we experienced the best year for job creation in 21 years and the best year for wage growth in 15,” says NAM President and CEO Jay Timmons. “Tax reform was rocket fuel for our industry, but our latest Manufacturers’ Outlook Survey illustrates our industry’s deep concerns about the reversal of these pro-growth incentives. If Congress does not take action, job creation, wage growth and investments in communities—in short, America’s manufacturing edge—will be at risk, as well as our country’s ability to attract meaningful investments into our economy. The House, the Senate and the White House need to come together to reinstate the critical provisions that have already expired or begun phasing out, and to stand strong to protect those set to expire at the end of 2025.”
Background:
- The NAM released “What’s At Stake: Manufacturers Face Damaging Tax Increases in 2025,” a policy explainer which illustrates the consequences of allowing the pro-growth policies and rates from the Tax Cuts and Jobs Act to expire.
- The “Manufacturing Wins” issue page on NAM.org provides a hub for 2025 tax content, as well as opportunities for manufacturers to share their stories directly with Congress and the administration.
Key Survey Findings:
- If Congress does not act to prevent tax increases, survey respondents say that increased taxes will limit capital investment opportunities (73.0%), decrease job creation (65.4%), increase difficulty competing globally (52.6%) and reduce R&D spending (51.7%).
- Nearly 94% of respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers.
- In Q2, 71.9% of respondents felt either somewhat or very positive about their company’s outlook, the seventh straight reading below the moving average (74.8%).
- More than 67% of manufacturers cited the inability to attract and retain employees as their top primary challenge, followed by rising health care costs (66.7%), an unfavorable business climate (59.6%) and a weaker domestic economy (56.8%).
The NAM releases these results to the public each quarter. Further information on the survey is available here.
