Association News

NAM Criticizes Proposed Rollback of Tax Cuts

By on

The National Association of Manufacturers cautions the federal government against rolling back tax reforms in response to the budget resolution introduced by the Biden administration.

“Budget resolutions are a statement of principles from the majority party and the beginning of a lengthy process. And while leaders may seek to achieve many laudable goals through this process, manufacturers have serious concerns that some of the proposals – chiefly, the possibility of rolling back job-creating tax reforms to meet the tax increase revenue projections – would be devastating for America’s manufacturing workers,” said NAM President and CEO Jay Timmons.

NAM noted how the manufacturing sector performed since the passage of the Tax Cuts and Jobs Act. In 2018, manufacturers added 263,000 new jobs, the best figure in 21 years; wages increased 3 percent and continued to grow by 2.8 percent in 2019 and 3 percent in 2020; manufacturing capital spending grew by 4.8 percent in 2018 and by 5.7 percent in 2019; and overall production grew 2.7 percent in 2018.

Additionally, NAM pointed to a tax study released earlier in the year that found 1 million jobs would be lost in just the first two years if proposed tax increases were implemented.

“Many Americans feel left behind today. Some feel left behind amid the pandemic-induced economic turmoil, others because they sensed the system didn’t work for them even before the pandemic. Lawmakers must continue working to lift up all Americans and build a true opportunity society. In the judgment of manufacturers in America, this resolution and the stated intentions of those who are drafting it do not achieve that worthy objective,” Timmons said.