The National Association of Manufacturers (NAM) has expressed approval for the recent actions taken by Chairman Jason Smith and the House Ways and Means Committee. The committee's decision to preserve and extend the 2017 tax reforms introduced during President Trump's administration is seen as a significant move towards maintaining a competitive tax environment that benefits manufacturers.
NAM President and CEO Jay Timmons said, "Chairman Smith and the Ways and Means Committee are delivering what manufacturers in America have called for and what our industry needs to compete and win." He emphasized that the 2017 tax reforms were instrumental in promoting job growth, higher wages, and community investments. Timmons highlighted that this bill aligns with a vision of achieving a 15% effective tax rate for manufacturers, a goal discussed with President Trump in 2016.
Timmons noted that for the majority of manufacturers organized as pass-through businesses, this legislation offers more than just policy changes. It provides opportunities for growth by enabling equipment purchases, workforce expansion, pay increases, and operational enhancements with greater certainty. The bill aims to enhance competitiveness by increasing and making permanent the pass-through deduction.
The proposed legislation reflects NAM's comprehensive tax priorities aimed at fostering manufacturing growth in the United States. It includes measures to support small business job creation by making permanent the pass-through deduction, protecting family-owned manufacturers from estate taxes, and maintaining pro-growth tax rates established under the Tax Cuts and Jobs Act (TCJA). Additionally, it seeks to preserve the 21% corporate tax rate and TCJA’s international tax provisions while reviving immediate R&D expensing, full expensing for capital equipment purchases, and setting a pro-growth standard for interest deductibility.
Timmons warned of potential risks if these policies are not preserved: "The stakes are clear: failing to preserve these policies will put nearly 6 million American jobs at risk." He urged Congress to act on the Ways and Means bill to ensure these pro-growth tax provisions become permanent.
Timmons will join Chairman Smith at an event in January to discuss results from NAM’s recent tax study alongside House Speaker Mike Johnson, House Majority Leader Steve Scalise, and Senate Finance Committee Chairman Mike Crapo.
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