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NAM today launched an industry-wide campaign to educate lawmakers, candidates and the Biden administration about the urgent need for action to preserve pro-growth tax policies that expire at the end of next year.

What’s up: Important reforms of the Tax Cuts and Jobs Act of 2017 expire at the end of 2025. NAM’s Manufacturing Wins campaign aims to ensure that Congress retains the 2017 tax reform in its entirety to avoid significant economic harm to the manufacturing sector and the overall economy.

What is at stake: If they don’t, virtually all manufacturers will face devastating tax increases in late 2025 that will cost manufacturing jobs, slow growth and hamper innovation. Small manufacturers, often organized as pass-through businesses and paying taxes at the individual rate, face higher income taxes and the loss of the 20 percent pass-through deduction for businesses provided by tax reform.

  • For family-run manufacturers, there will be changes to inheritance tax that will mean a larger portion of their assets will be subject to tax upon the death of a loved one.
  • Investment in manufacturing growth will continue to be delayed unless measures are taken to restore prompt R&D spending, accelerated depreciation for capital goods purchases, and a growth-enhancing interest deductibility standard.

Learn more: What’s at Stake: Manufacturers Face Devastating Tax Hikes in 2025 examines the tax provisions up for debate next year—and highlights NAM’s policy proposals to Congress to prevent devastating tax hikes.

Manufacturers at risk: A recent National Association of America (NAM) survey found that if Congress fails to prevent the 2025 deadlines from expiring, 73% of manufacturers would be forced to limit their investments, create 65% fewer jobs, and spend 52% less on research and development. In addition, 93% of manufacturers with the pass-through deduction said that losing the pass-through deduction would impact their ability to grow, create jobs, and invest in their business.

  • About 94% of manufacturers believe Congress should act before the end of 2025 to prevent these tax increases.

The last word: “Manufacturers across the country have pledged to embrace the growth-promoting provisions of tax reform and ensure they have a direct, positive impact on the lives of Americans,” said Courtney Silver, chair of the NAM Small and Medium Manufacturers Group and president and owner of precision machining company Ketchie.

  • Silver has repeatedly stated that these tax priorities are critical to the success of small and medium-sized manufacturing companies in the United States.
  • “We have kept our promises. We have created jobs, we have bought equipment and we have given back to our communities. I call on Congress to follow through on the promise of tax reform to enable manufacturers to do even more.”

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