On January 15, 2025, the National Association of Manufacturers (NAM) and GOP leaders issued a strong statement emphasizing the critical need to preserve key provisions from the 2017 Tax Cuts and Jobs Act (TCJA) to protect the U.S. economy. A recent NAM study revealed that failing to maintain these tax measures could jeopardize nearly 6 million jobs, result in a loss of approximately $540 billion in employee wages, and decrease U.S. GDP by $1.1 trillion [2d0a4f55].
The urgency of this situation was further underscored on January 16, 2025, when Courtney Silver, president of Ketchie, a family-owned manufacturing business, testified before Congress. She advocated for the preservation of pro-manufacturing policies from the TCJA, warning that without congressional action, over 1 million manufacturing jobs could be at risk [8db76621]. Silver highlighted that tax reforms had previously allowed her company to invest over $1 million and create jobs in 2018 and 2019, but growth stalled in 2022 due to expiring tax measures, impacting the entire supply chain [8db76621].
NAM President Jay Timmons emphasized the success of the TCJA in boosting jobs and wages, noting that the tax reforms had previously spurred significant growth in the manufacturing sector, with capital spending growth of 4.5% and 5.7% in 2018 and 2019, respectively [2d0a4f55][a30d18d2]. House Ways and Means Committee Chairman Jason Smith echoed this sentiment, stressing the importance of extending the Trump tax cuts to ensure economic stability [2d0a4f55].
Manufacturers are particularly concerned about the negative impact of expiring tax provisions on their businesses. Silver's testimony highlighted the potential loss of more than $540 billion in wages for American workers and a decline in U.S. GDP by over $1 trillion if these tax measures are not upheld [8db76621]. Additionally, House Majority Leader Steve Scalise and Senate Finance Committee Chairman Mike Crapo advocated for restoring tax provisions to maintain America's competitive edge in the global market, with Crapo specifically calling for permanent tax cuts [2d0a4f55][a30d18d2].
This call for action comes on the heels of a January 14, 2025, NAM report that warned of significant economic risks if pro-manufacturing tax policies are not upheld. The report indicated that nearly 6 million jobs could be at risk, along with a $284 billion decline in manufacturing GDP and a $126 billion reduction in worker compensation [517d08a8]. Timmons reiterated the need for immediate legislative action to safeguard the manufacturing sector, which is vital for the U.S. economy [517d08a8].
As lawmakers grapple with these pressing issues, the implications for job security and economic stability in the manufacturing sector are becoming increasingly pronounced, underscoring the importance of proactive tax policy measures. House Speaker Mike Johnson also stressed the responsibility of Congress to act quickly, particularly for small manufacturers who are especially vulnerable to tax increases [a30d18d2].