On November 20, 2024, the National Association of Manufacturers (NAM) emphasized the critical importance of preserving the international tax system established by the 2017 Tax Cuts and Jobs Act. This legislation, which reduced the corporate tax rate from 35% to 21% and introduced provisions like the Foreign-Derived Intangible Income (FDII) deduction and the Global Intangible Low-Taxed Income (GILTI) regime, is set to undergo significant changes after 2025. Such alterations could lead to increased taxes for manufacturers, jeopardizing their competitiveness in the global market [ef084e48].
In light of these potential changes, NAM has called on Congress to maintain the current tax structure to support U.S. manufacturing and economic growth. This advocacy aligns with the association's recent seven-figure ad campaign urging reforms to pharmacy benefit managers (PBMs) to alleviate rising healthcare costs, which 78% of small manufacturers identified as a significant operational challenge [241f196c].
The urgency of these issues is compounded by the recent electoral victory of President-elect Donald Trump, who secured enough electoral votes on November 5, 2024, and the Republican Party's gain of a 53-47 majority in the Senate. This political shift presents an opportunity for manufacturers to push for favorable policies [ef084e48].
Additionally, NAM hosted the 2024 Manufacturing Legal Summit on November 12-13, 2024, where legal challenges facing the manufacturing sector were discussed, including the recent National Labor Relations Board (NLRB) decision that overturned a 40-year precedent regarding unionization threats [ef084e48].
Senator Maggie Hassan has also advocated for the immediate restoration of R&D expensing as a priority for 2025, further highlighting the need for legislative support in fostering innovation and growth within the manufacturing industry [ef084e48].
As the manufacturing sector navigates these complex challenges, the NAM's proactive stance on tax reform and healthcare policy underscores the critical need for a supportive legislative environment to ensure the industry's sustainability and competitiveness in the years to come [241f196c][ef084e48].
