Grand Canyon Times

A recent study by the National Association of Manufacturers (NAM) highlights potential economic consequences if tax reform measures from the 2017 Tax Cuts and Jobs Act are not renewed. The study suggests that nearly six million jobs could be at risk, with an estimated $540 billion in employee wages potentially lost, and a projected decrease in U.S. GDP by $1.1 trillion.

Grace Appelbe, Executive Director of the Arizona Manufacturers Council, said, "The 2017 tax bill was like rocket fuel for American manufacturers. Letting any of the bill’s pro-growth reforms expire risks real harm to the sector that is driving job growth for the U.S. economy."

The manufacturing industry could face significant challenges if Congress does not act. According to the study, over one million manufacturing jobs and $126 billion in wages for manufacturing workers are at risk. This could result in a GDP loss of $284 billion within the industry.

NAM President and CEO Jay Timmons emphasized the urgency of action: "The time to act is now. Millions of American workers are depending on the manufacturing sector to continue driving America forward." He noted that pro-growth tax policies from 2017 were beneficial for manufacturers and made the U.S. economy more competitive globally.

Several provisions are set to expire, including individual income tax rates and brackets, estate tax exemption, and pass-through deductions for smaller businesses. Courtney Silver, outgoing chair of NAM's Small and Medium Manufacturers Group, expressed concern about these changes: "Small manufacturers are disproportionately impacted by tax increases," she said.

The expensing reforms under TCJA allowed businesses to expense machinery and equipment costs immediately rather than over several years, spurring large capital investments.

NAM represents manufacturers across all sectors in every state in the U.S., advocating for policies that support growth and competitiveness.